Contents of the Financial Statements

for the Period Ended 30 June 2019

Directors' report period ended 30 June 2019

The directors present their report with the financial statements of the company for the period ended 30 June 2019

Directors

The directors shown below have held office during the whole of the period from
1 July 2018 to 30 June 2019

The above report has been prepared in accordance with the special provisions in part 15 of the Companies Act 2006

This report was approved by the board of directors on
31 March 2020

And signed on behalf of the board by:
Name: Ocorian Secretaries (Jersey) Limited
Status: Secretary

Profit And Loss Account

for the Period Ended 30 June 2019

Balance sheet

As at 30 June 2019

The notes form part of these financial statements

Balance sheet statements

For the year ending 30 June 2019 the company was entitled to exemption under section 477 of the Companies Act 2006 relating to small companies.

The members have not required the company to obtain an audit in accordance with section 476 of the Companies Act 2006.

The directors acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and the preparation of accounts.

These accounts have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime.

The notes form part of these financial statements

Notes to the Financial Statements

for the Period Ended 30 June 2019

• 1. Accounting policies

  Basis of measurement and preparation

  These financial statements have been prepared in accordance with the provisions of Section 1A (Small Entities) of Financial Reporting Standard 102

  Other accounting policies

  Basis for preparation:These financial statements are prepared on a going concern basis, under the historical cost convention and inaccordance with applicable accounting standards adopted in the United Kingdom.A summary of the more important policies adopted in dealing with items that are considered material to theCompany are shown below:Property held for redevelopmentProperty held for redevelopment is accounted for as inventory and recorded at the lower of cost and net realisablevalue.Redevelopment costs, including construction costs and professional fees incurred in connection with thedevelopment of the property, are accounted for as inventory and recorded at the lower of cost and net realisablevalue.Revenue from the sale of property is recognised when the risks and rewards of the property have substantiallytransferred to the buyer, which is typically on the unconditional exchange of contracts.Financial instrumentsThe Company has chosen to adopt the Sections 11 and 12 of FRS 102 in respect of financial instruments.Financial assetsBasic financial assets, including loans receivable, debtors and prepayments and cash and cash equivalents, areinitially recognised at transaction price. Such assets are subsequently carried at amortised cost using the effectiveinterest method. At the end of each reporting period financial assets measured at amortised cost are assessed forobjective evidence of impairment.However where the arrangement constitutes a financing transaction, the transaction is measured at the presentvalue of the future receipts discounted at a market rate of interest.Financial assets are derecognised when (a) the contractual rights to the cash flows from the asset expire or aresettled, or (b) substantially all the risks and rewards of the ownership of the asset are transferred to another party or(c) control of the asset has been transferred to another party who has the practical ability to unilaterally sell theasset to an unrelated third party without imposing additional restrictions.Financial liabilitiesBasic financial liabilities, including loan notes and creditors and accruals, are initially recognised at transactionprice. Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.However where the arrangement constitutes a financing transaction, the debt instrument is measured at thepresent value of the future receipts discounted at a market rate of interest.Fees paid on the establishment of loan facilities are recognised as transaction costs of the loan to the extent that itis probable that some or all of the facility will be drawn down. In this case, the fee is deferred until the draw-downoccurs.Trade payables are obligations to pay for goods or services that have been acquired in the ordinary course ofbusiness from suppliers. Accounts payable are classified as current liabilities if payment is due within one year orless. If not, they are presented as non-current liabilities. Trade payables are recognised initially at transaction priceand subsequently measured at amortised cost using the effective interest method.Financial liabilities are derecognised when the liability is extinguished, that is when the contractual obligation isdischarged, cancelled or expires.OffsettingFinancial assets and liabilities are offset and the net amounts presented in the financial statements when there is alegally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or torealise the asset and settle the liability simultaneously.Rental incomeRental income is recognised on a straight line basis over the lease term, except where an alternative basisrepresents the timing of economic benefits to be derived from leases.Interest incomeBank interest is accounted for on an accruals basis.ExpensesExpenses are accounted for on an accruals basis.Going concernDespite the net deficit in shareholders' funds, the Company is dependent on the continued support of theNoteholder and their willingness to continue to defer the maturity date of the Loan Notes, as detailed in note 8, untilsuch time that the sale of the apartments in the property held for development has been completed. The Companyhas received a written confirmation from the ultimate controlling party confirming that they will continue to providesuch support.The directors therefore have a reasonable expectation that the Company has adequate resources to continue inoperational existence for the forseeable future. Accordingly, they continue to adopt the going concern basis inpreparing the financial statements.

Notes to the Financial Statements

for the Period Ended 30 June 2019

• 2. Employees

  	2019	2018
  Average number of employees during the period	0	0