London Properties & Regional Limited - Limited company accounts 20.1

REGISTERED NUMBER: 09112856 (England and Wales)

STRATEGIC REPORT,

REPORT OF THE DIRECTOR AND

FINANCIAL STATEMENTS

FOR THE YEAR ENDED 29 FEBRUARY 2020

FOR

LONDON PROPERTIES & REGIONAL LIMITED

Page

Company Information

1

Strategic Report

2

Report of the Director

3

Report of the Independent Auditors

5

Profit and Loss Account

7

Balance Sheet

8

Statement of Changes in Equity

9

Cash Flow Statement

10

Notes to the Financial Statements

11

DIRECTOR:

N Teitelbaum

REGISTERED OFFICE:

First Floor, Winston House

349 Regents Park Road

London

N3 1DH

REGISTERED NUMBER:

09112856 (England and Wales)

AUDITORS:

Melinek Fine LLP

Chartered Accountants

Statutory Auditors

First Floor, Winston House

349 Regents Park Road

London

N3 1DH

The director presents his strategic report for the year ended 29 February 2020.

PRINCIPAL ACTIVITY

The company's principal activity is trading in residential properties.

PRINCIPAL RISKS AND UNCERTAINTIES

The main risk for the company is a reduction in property values; if a property is held In stock for a long period this risk increases. In order to mitigate the risk, the company is continuously trading stock as mentioned below.

OUR STRATEGIC PRIORITIES

The company has two objectives:

- to deliver attractive returns;

- to uphold London Properties & Regional's reputation for integrity and reliability.

The company's primary financial objective is to maximise returns at acceptable levels of risk.

BUSINESS REVIEW

The results for the period and financial position of the company are as shown in the annexed financial statements.

The company has concentrated on trading property since it was incorporated. The properties are purchased with the intention of renovating them and then selling them. This ensures that the company is continuously trading stock and does not hold on to stock for a long period with the result of mitigating risk to the company.

As is evidenced by the results (see below), the above policy has worked well for the company and the company is showing a healthy gross profit.

COMPANY PERFORMANCE

2020 realised a turnover of £8.8m (2019: £34.99m). This represents a large decrease compared to the previous year due to reduced trade in the company. The gross profit margin decreased from 7.78% to 6.84%.

FINANCIAL POSITION

The company's shareholders funds now stand at £14.8m (2019: £14.3m). The growth has been driven by purchases and sales during the year.

FINANCIAL CAPACITY AND LIQUIDITY

The company is well positioned to take advantage of opportunities as they arise. The company's financial capacity stood at £63,374 which is cash at bank.

The director considers that there are no non-financial performance measurements relevant to the business.

ON BEHALF OF THE BOARD:

N Teitelbaum - Director

23 February 2021

The director presents his report with the financial statements of the company for the year ended 29 February 2020.

PRINCIPAL ACTIVITY

The principal activity of the company in the year under review was that of trading in residential properties.

DIVIDENDS

No dividends will be distributed for the year ended 29 February 2020.

DIRECTOR

N Teitelbaum held office during the whole of the period from 1 March 2019 to the date of this report.

FINANCIAL INSTRUMENTS

The Company's principal assets are other receivables. The Company's principal liabilities are other creditors.

Credit risk

The director monitors credit risk closely and considers that the current policies and procedures meet the objectives of managing exposure to credit risk. The Company has no significant concentrations of credit risk.

Currency risk

The Company was not exposed to currency risk during the period.

Liquidity risk

The Company was not exposed to liquidity risk during the period.

Interest rate risk

The Company has not hedged its interest rate exposure during the year.

STATEMENT OF DIRECTOR'S RESPONSIBILITIES

The director is responsible for preparing the Strategic Report, the Report of the Director and the financial statements in accordance with applicable law and regulations.

Company law requires the director to prepare financial statements for each financial year. Under that law the director has elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law), including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'. Under company law the director must not approve the financial statements unless he is satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these financial statements, the director is required to:

-	select suitable accounting policies and then apply them consistently;

-	make judgements and accounting estimates that are reasonable and prudent;

-	prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.

The director is responsible for keeping adequate accounting records that are sufficient to show and explain the company's transactions and disclose with reasonable accuracy at any time the financial position of the company and enable him to ensure that the financial statements comply with the Companies Act 2006. He is also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS

So far as the director is aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the company's auditors are unaware, and he has taken all the steps that he ought to have taken as a director in order to make himself aware of any relevant audit information and to establish that the company's auditors are aware of that information.

AUDITORS

The auditors, Melinek Fine LLP, will be proposed for re-appointment at the forthcoming Annual General Meeting.

ON BEHALF OF THE BOARD:

N Teitelbaum - Director

23 February 2021

Opinion

We have audited the financial statements of London Properties & Regional Limited (the 'company') for the year ended 29 February 2020 which comprise the Profit and Loss Account, Balance Sheet, Statement of Changes in Equity, Cash Flow Statement and Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

-	give a true and fair view of the state of the company's affairs as at 29 February 2020 and of its profit for the year then ended;

-	have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and

-	have been prepared in accordance with the requirements of the Companies Act 2006.

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

We have nothing to report in respect of the following matters in relation to which the ISAs (UK) require us to report to you where:

-	the director's use of the going concern basis of accounting in the preparation of the financial statements is not appropriate; or

-

the director has not disclosed in the financial statements any identified material uncertainties that may cast significant doubt about the company's ability to continue to adopt the going concern basis of accounting for a period of at least twelve months from the date when the financial statements are authorised for issue.

Other information

The director is responsible for the other information. The other information comprises the information in the Strategic Report and the Report of the Director, but does not include the financial statements and our Report of the Auditors thereon.

Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of the audit:

-	the information given in the Strategic Report and the Report of the Director for the financial year for which the financial statements are prepared is consistent with the financial statements; and

-	the Strategic Report and the Report of the Director have been prepared in accordance with applicable legal requirements.

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic Report or the Report of the Director.

We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion:

-	adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or

-	the financial statements are not in agreement with the accounting records and returns; or

-	certain disclosures of director's remuneration specified by law are not made; or

-	we have not received all the information and explanations we require for our audit.

Responsibilities of director

As explained more fully in the Statement of Director's Responsibilities set out on page three, the director is responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the director determines necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the director is responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the director either intends to liquidate the company or to cease operations, or has no realistic alternative but to do so.

Auditors' responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue a Report of the Auditors that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Auditors.

Use of our report

This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in a Report of the Auditors and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's members as a body, for our audit work, for this report, or for the opinions we have formed.

Aryeh Melinek (Senior Statutory Auditor)

for and on behalf of Melinek Fine LLP

Chartered Accountants

Statutory Auditors

First Floor, Winston House

349 Regents Park Road

London

N3 1DH

23 February 2021

TURNOVER

8,800,360

34,991,442

Cost of sales

8,198,793

32,270,176

GROSS PROFIT

601,567

2,721,266

Administrative expenses

219,556

222,029

382,011

2,499,237

Other operating income

150,140

85,567

OPERATING PROFIT

4

532,151

2,584,804

Interest receivable and similar income

1,206

7,177

533,357

2,591,981

Interest payable and similar expenses

5

-

676

PROFIT BEFORE TAXATION

533,357

2,591,305

Tax on profit

6

101,338

492,386

PROFIT FOR THE FINANCIAL YEAR

432,019

2,098,919

OTHER COMPREHENSIVE INCOME

-

TOTAL COMPREHENSIVE INCOME FOR
THE YEAR

432,019

2,098,919

CURRENT ASSETS

Stocks

7

1,974,034

5,068,882

Debtors

8

13,291,759

9,627,841

Cash at bank

63,374

102,819

15,329,167

14,799,542

CREDITORS

Amounts falling due within one year

9

575,077

477,471

NET CURRENT ASSETS

14,754,090

14,322,071

TOTAL ASSETS LESS CURRENT
LIABILITIES

14,754,090

14,322,071

CAPITAL AND RESERVES

Called up share capital

11

100

Profit and loss account

14,753,990

14,321,971

SHAREHOLDERS' FUNDS

14,754,090

14,322,071

The financial statements were approved and authorised for issue by the director and authorised for issue on 23 February 2021 and were signed by:

N Teitelbaum - Director

Called up

Profit

share

and loss

Total

capital

account

equity

£

Balance at 1 March 2018

100

12,223,052

12,223,152

Changes in equity

Total comprehensive income

-

2,098,919

Balance at 28 February 2019

100

14,321,971

14,322,071

Changes in equity

Total comprehensive income

-

432,019

Balance at 29 February 2020

100

14,753,990

14,754,090

Cash flows from operating activities

Cash generated from operations

12

(40,651

)

(3,853,325

)

Interest paid

-

(676

)

Tax paid

-

(699,125

)

Net cash from operating activities

(40,651

)

(4,553,126

)

Cash flows from investing activities

Interest received

1,206

7,177

Net cash from investing activities

1,206

7,177

Decrease in cash and cash equivalents

(39,445

)

(4,545,949

)

Cash and cash equivalents at beginning
of year

13

102,819

4,648,768

Cash and cash equivalents at end of
year

13

63,374

102,819

1.	STATUTORY INFORMATION

London Properties & Regional 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" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention.

Turnover

The whole of the turnover is attributable to the principal activity of the company, being the trading in residential properties in the United Kingdom. Turnover comprises proceeds from sales of residential properties.

Stocks

Stock represents residential properties bought with the intention of selling them. Stocks are valued at the lower of cost and estimated selling price less costs to complete and sell.

Financial instruments

The company only enters into basic financial instruments transactions that result in the recognition of financial assets and liabilities like trade and other debtors and creditors.

Debt instruments (other than those wholly repayable or receivable within one year), including loans and other accounts receivable and payable, are initially measured at present value of the future cash flows and subsequently at amortised cost using the effective interest method. Debt instruments that are payable or receivable within one year, typically trade payables or receivables, are measured at the undiscounted amount of the cash or other consideration expected to be paid or received. If the arrangements of a short-term instrument constitute a financing transaction, like the payment of a trade debt deferred beyond normal business terms or financed at a rate of interest that is not a market rate or in case of an out-right short-term loan not at market rate, the financial asset is measured, initially, at the present value of the future cash flows discounted at a market rate of interest for a similar debt instrument and subsequently at amortised costs.

Taxation

Taxation for the year comprises current and deferred tax. Tax is recognised in the Profit or Loss, 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 year 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.

Acquisitions and disposals of properties

Acquisitions and disposals of the properties are considered to take place at the date of legal completion, and are included in the Financial Statements accordingly, as this is deemed to be the point where the majority of risks and rewards of ownership vest.

3.	EMPLOYEES AND DIRECTORS

There were no staff costs for the year ended 29 February 2020 nor for the year ended 28 February 2019.

The average number of employees during the year was NIL (2019 - NIL).

2020

2019

£

Director's remuneration

-

4.	OPERATING PROFIT

The operating profit is stated after charging:

2020

2019

£

Auditors' remuneration

3,600

5.

INTEREST PAYABLE AND SIMILAR EXPENSES

2020

2019

£

Interest

-

676

6.

TAXATION

Analysis of the tax charge

The tax charge on the profit for the year was as follows:

2020

2019

£

Current tax:

UK corporation tax

101,338

492,386

Tax on profit

101,338

492,386

UK corporation tax has been charged at 19% .

Reconciliation of total tax charge included in profit and loss

The tax assessed for the year is the same as the standard rate of corporation tax in the UK.

2020

2019

£

Profit before tax

533,357

2,591,305

Profit multiplied by the standard rate of corporation tax in the UK of 19%
(2019 - 19%)

101,338

492,348

Effects of:

Expenses not deductible for tax purposes

-

38

tax rate during year

Total tax charge

101,338

492,386

7.

STOCKS

2020

2019

£

Stocks

1,974,034

5,068,882

8.

DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2020

2019

£

Other debtors

13,291,759

9,627,841

Short term debtors are measured at transaction price, less any impairment. Other debtors are measured at amortised cost.

Included within other debtors is £13,241,098 (2019: £9,120,290) of inter-company loans due from companies which the shareholder controls and £Nil (2019: £252,600) due from a charity in which the director is a trustee. These are payable on demand with no interest charged.

9.

CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2020

2019

£

Tax

564,860

463,522

Other Creditors

923

Accruals and deferred income

9,294

13,026

575,077

477,471

Short term creditors are measured at transaction price, less any impairment. Other creditors are measured at amortised cost.

10.	FINANCIAL INSTRUMENTS

2019

2018

£

Financial assets measured at amortised cost

9,627,841

3,668,562

Financial liabilities measured at amortised cost

923

5,612,083

Financial assets measured at amortised cost are comprised of other debtors.

Financial liabilities measured at amortised cost are comprised of other creditors of £923 (2019: £923) and accruals of £9,294 (2019: £13,026).

11.	CALLED UP SHARE CAPITAL

Allotted, issued and fully paid:

Number:

Class:

Nominal

2020

2019

value:

£

100

Ordinary

£1

100

12.	RECONCILIATION OF PROFIT FOR THE FINANCIAL YEAR TO CASH GENERATED FROM OPERATIONS

2020

2019

£

Profit for the financial year

432,019

2,098,919

Finance costs

-

676

Finance income

(1,206

)

(7,177

)

Taxation

101,338

492,386

532,151

2,584,804

Decrease in stocks

3,094,848

5,149,236

Increase in trade and other debtors

(3,663,918

)

(5,959,279

)

Decrease in trade and other creditors

(3,732

)

(5,628,086

)

Cash generated from operations

(40,651

)

(3,853,325

)

13.	CASH AND CASH EQUIVALENTS

The amounts disclosed on the Cash Flow Statement in respect of cash and cash equivalents are in respect of these Balance Sheet amounts:

Year ended 29 February 2020

29.2.20

1.3.19

£

Cash and cash equivalents

63,374

102,819

Year ended 28 February 2019

28.2.19

1.3.18

£

Cash and cash equivalents

102,819

4,648,768

14.	ANALYSIS OF CHANGES IN NET FUNDS

At 1.3.19

Cash flow

At 29.2.20

£

Net cash

Cash at bank

102,819

(39,445

)

63,374

102,819

(39,445

)

63,374

Total

102,819

(39,445

)

63,374

15.	FINANCIAL COMMITMENTS

Financial commitments at the year end of £Nil (2019: £838,510) related to properties that were exchanged prior to the 29 February 2020 but not completed until post year end.