Xchange Development Company 2018 Limited - Accounts to registrar (filleted) - small 18.2

REGISTERED NUMBER: 11603845 (England and Wales)

UNAUDITED FINANCIAL STATEMENTS

FOR THE PERIOD 4TH OCTOBER 2018 TO 31ST OCTOBER 2019

FOR

XCHANGE DEVELOPMENT COMPANY 2018 LIMITED

Page

Company Information

1

Abridged Balance Sheet

2

Notes to the Financial Statements

4

DIRECTORS:

N K G Monks

M A Reilly

SECRETARY:

REGISTERED OFFICE:

103 Newland Road

Worthing

West Sussex

BN11 1LB

REGISTERED NUMBER:

11603845 (England and Wales)

ACCOUNTANTS:

Dalewood Limited

103 Newland Road

Worthing

West Sussex

BN11 1LB

FIXED ASSETS

Tangible assets

4

175,000

CURRENT ASSETS

Stocks

212,851

Debtors

11,611

Cash at bank

304,748

529,210

CREDITORS

Amounts falling due within one year

530,434

NET CURRENT LIABILITIES

(1,224

)

TOTAL ASSETS LESS CURRENT LIABILITIES

173,776

CREDITORS

Amounts falling due after more than one year

1,168,232

NET LIABILITIES

(994,456

)

CAPITAL AND RESERVES

Called up share capital

2

Retained earnings

(994,458

)

SHAREHOLDERS' FUNDS

(994,456

)

The company is entitled to exemption from audit under Section 477 of the Companies Act 2006 for the period ended 31st October 2019.

The members have not required the company to obtain an audit of its financial statements for the period ended 31st October 2019 in accordance with Section 476 of the Companies Act 2006.

The directors acknowledge their responsibilities for:

(a)	ensuring that the company keeps accounting records which comply with Sections 386 and 387 of the Companies Act 2006 and

(b)

preparing financial statements which give a true and fair view of the state of affairs of the company as at the end of each financial year and of its profit or loss for each financial year in accordance with the requirements of Sections 394 and 395 and which otherwise comply with the requirements of the Companies Act 2006 relating to financial statements, so far as applicable to the company.

The financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime.

All the members have consented to the preparation of an abridged Income Statement and an abridged Balance Sheet for the period ended 31st October 2019 in accordance with Section 444(2A) of the Companies Act 2006.

In accordance with Section 444 of the Companies Act 2006, the Income Statement has not been delivered.

The financial statements were approved by the Board of Directors and authorised for issue on 1st October 2020 and were signed on its behalf by:

N K G Monks - Director

M A Reilly - Director

1.	STATUTORY INFORMATION

Xchange Development Company 2018 Limited is a private company, limited by shares , registered in England

and Wales. The company's registered number and registered office address can be found on the Company

Information page.

2.	ACCOUNTING POLICIES

Basis of preparing the financial statements

These financial statements have been prepared in accordance with Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" including the provisions of Section 1A "Small Entities" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention as modified by the revaluation of certain assets.

As shown by the Balance sheet the company's assets are exceeded by its liabilities. However the company's

continued activities are supported by the Buyers and Investors. The Directors therefore consider that, in their

opinion it is appropriate for these accounts to be prepared on a going concern basis.

Significant judgements and estimates

The Company is developing a property in Bradford on behalf of initial buyers and or investors and new buyers of

the residential flats being developed within the property. Finance for the purchase of the lease and the financing

of the development so far has been from the Buyers/Investors. Revenue for the company will be recognised when

the development has been completed and the residential units are sold.

Tangible fixed assets

Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life.

Work in progress

Work in progress is valued at the lower of cost and net realisable value.

Cost is calculated using the first-in, first-out method and includes all purchase, transport, and handling costs in

bringing stocks to their present location and condition.

Taxation

Taxation for the period comprises current and deferred tax. Tax is recognised in the Income Statement, except to

the extent that it relates to items recognised in other comprehensive income or directly in equity.

Current or deferred taxation assets and liabilities are not discounted.

Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or

substantively enacted by the balance sheet date.

Deferred tax

Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance

sheet date.

Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from

those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that

have been enacted or substantively enacted by the period end and that are expected to apply to the reversal of the

timing difference.

Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they

will be recovered against the reversal of deferred tax liabilities or other future taxable profits.

3.	EMPLOYEES AND DIRECTORS

The average number of employees during the period was NIL.

4.	TANGIBLE FIXED ASSETS

Totals

£

COST OR VALUATION

Additions

1,168,232

Impairments

(993,232

)

At 31st October 2019

175,000

NET BOOK VALUE

At 31st October 2019

175,000

Cost or valuation at 31st October 2019 is represented by:

Totals

£

Valuation in 2019

175,000

If The Long Lease had not been revalued it would have been included at the following historical cost:

£

Cost

1,168,232

The Long Lease was valued on an open market basis basis on 24th April 2019 by Mark Brearley & Company .

At the time the valuation mentioned in these notes was carried out changes in UK Legislation were before the

Select Committee in Parliament. The valuation given is based on the special assumption that:

The Market Value of the long leasehold interest subject to leasehold apartment sales and on the assumption that

all remaining apartments are sold on a similar lease/basis and that the Sub-Committee Report and findings will

be enacted into UK law. It also was made on the assumption of a sale by private treaty within a marketing period

of 12 months..

5.	POST BALANCE SHEET EVENTS

After the Balance Sheet Date it was found that the previous development manager had transferred £150,000 of

client money to contractors where they had a personal connection. The current directors consider this to be a

considerable breach of trust and codes of conduct. They are currently engaged in seeking legal action to recover

this sum from the parties concerned. No further details are available at the date of these reports.