ACCOUNTS - Final Accounts preparation

CHASE (COCKFOSTERS) LIMITED - Company Information

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Registered number: 12359364

CHASE (COCKFOSTERS) LIMITED

FINANCIAL STATEMENTS

FOR THE PERIOD ENDED 31 MAY 2020

CHASE (COCKFOSTERS) LIMITED

REGISTERED NUMBER: 12359364

BALANCE SHEET

AS AT 31 MAY 2020

		2020
Note		£


Current assets
Stocks	4	400,336
Debtors: amounts falling due within one year	5	3,400,000
Cash at bank and in hand	6	100
		3,800,436
Creditors: amounts falling due within one year	7	(3,800,336)
Net current assets			100
Total assets less current liabilities			100

Net assets			100

Capital and reserves
Called up share capital	8	100
		100

The financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies regime and in accordance with the provisions of FRS 102 Section 1A - small entities.

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

The Company has opted not to file the statement of comprehensive income in accordance with provisions applicable to companies subject to the small companies' regime.

The financial statements were approved and authorised for issue by the board and were signed on its behalf by:

................................................

G J Barton

Director

Date: 24 February 2021

The notes on pages 2 to 6 form part of these financial statements.

Page 1

CHASE (COCKFOSTERS) LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE PERIOD ENDED 31 MAY 2020

1.	General information

Chase (Cockfosters) Limited is a private company limited by shares, incorporated in England and Wales. Its registered office is Jasmine House, 8 Parkway, Welwyn Garden City, Hertfordshire, Hertfordshire, AL8 6HG. The principal activity of the company is the development of building projects.
The company was incorporated on 11 December 2019 and has prepared financial statements for the period 11 December 2019 to 31 May 2020.

2.Accounting policies

2.1

Basis of preparation of financial statements

The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Section 1A of Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and the Companies Act 2006.

The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires management to exercise judgment in applying the Company's accounting policies.
The financial statements have been prepared in £ sterling, the functional currency, rounded to the
nearest £1.
The following principal accounting policies have been applied:

2.2

Going concern

The company had net assets of £100 at the balance sheet date. The financial statements have been prepared on a going concern basis as the ultimate parent company, Wilson Properties (London) Ltd, has indicated its willingness and ability to support the company for at least 12 months from the date of approval of the financial statements.
Following the COVID-19 pandemic, the directors have considered the annual budget, future cash flow forecasts and other relevant information in forming their assessment of the going concern assumption.
The COVID-19 pandemic and the ensuing economic shutdown has not had a significant impact on the company’s operations. In response to the COVID-19 pandemic, the directors have performed a robust analysis of forecast future cash flows taking into account the potential impact on the business of possible future scenarios arising from the impact of COVID-19. This analysis also considers the effectiveness of available measures to assist in mitigating the impact.
Based on these assessments and having regard to the resources available to the entity, the directors have concluded that there is no material uncertainty and that they can continue to adopt the going concern basis in preparing the accounts.

Page 2

CHASE (COCKFOSTERS) LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE PERIOD ENDED 31 MAY 2020

2.Accounting policies (continued)

2.3

Revenue

Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Company and the revenue can be reliably measured. Revenue is measured as the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. The following criteria must also be met before revenue is recognised:

Sale of goods

Revenue from the sale of goods is recognised when all of the following conditions are satisfied:

∙the Company has transferred the significant risks and rewards of ownership to the buyer;

∙the Company retains neither continuing managerial involvement to the degree usually associated with ownership nor effective control over the goods sold;

∙the amount of revenue can be measured reliably;

∙it is probable that the Company will receive the consideration due under the transaction; and

∙the costs incurred or to be incurred in respect of the transaction can be measured reliably.

Rendering of services

Revenue from a contract to provide services is recognised in the period in which the services are provided in accordance with the stage of completion of the contract when all of the following conditions are satisfied:

∙the amount of revenue can be measured reliably;

∙it is probable that the Company will receive the consideration due under the contract;

∙the stage of completion of the contract at the end of the reporting period can be measured reliably; and

∙the costs incurred and the costs to complete the contract can be measured reliably.

2.4

Stocks (properties under construction)

Property developments in progress are valued at the lower of cost and estimated net realisable value and are included in current assets. Cost includes any legal fees relating to the completion of the purchase. Sales of development properties are recognised at the date of completion.
Where market conditions are such that a decision is undertaken to hold properties temporarily and to mitigate the cost of holding the property through lettings, such properties are retained as stock as long as the letting is considered merely incidental to the property trading and development activities.

At each balance sheet date, stocks are assessed for impairment. If stock is impaired, the carrying amount is reduced to its selling price less costs to complete and sell. The impairment loss is recognised immediately in profit or loss.

2.5

Debtors

Short term debtors are measured at transaction price, less any impairment. Loans receivable are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method, less any impairment.

Page 3

CHASE (COCKFOSTERS) LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE PERIOD ENDED 31 MAY 2020

2.Accounting policies (continued)

2.6

Cash and cash equivalents

Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours. Cash equivalents are highly liquid investments that mature in no more than three months from the date of acquisition and that are readily convertible to known amounts of cash with insignificant risk of change in value.

2.7

Creditors

Short term creditors are measured at the transaction price. Other financial liabilities, including bank loans, are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method.

2.8

Financial instruments

The Company only enters into basic financial instrument transactions that result in the recognition of financial assets and liabilities like trade and other debtors and creditors, loans from banks and other third parties, loans to related parties and investments in ordinary shares.

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 debtors and creditors, are measured, initially and subsequently, at the undiscounted amount of the cash or other consideration expected to be paid or received. However, 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 in case of an out-right short-term loan that is not at market rate, the financial asset or liability is measured, initially at the present value of future cash flows discounted at a market rate of interest for a similar debt instrument and subsequently at amortised cost, unless it qualifies as a loan from a director in the case of a small company, or a public benefit entity concessionary loan.

Financial assets that are measured at cost and amortised cost are assessed at the end of each reporting period for objective evidence of impairment. If objective evidence of impairment is found, an impairment loss is recognised in the Statement of Comprehensive Income.

For financial assets measured at amortised cost, the impairment loss is measured as the difference between an asset's carrying amount and the present value of estimated cash flows discounted at the asset's original effective interest rate. If a financial asset has a variable interest rate, the discount rate for measuring any impairment loss is the current effective interest rate determined under the contract.

For financial assets measured at cost less impairment, the impairment loss is measured as the difference between an asset's carrying amount and best estimate of the recoverable amount, which is an approximation of the amount that the Company would receive for the asset if it were to be sold at the balance sheet date.

Financial assets and liabilities are offset and the net amount reported in the Balance Sheet when there is an enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

Page 4

CHASE (COCKFOSTERS) LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE PERIOD ENDED 31 MAY 2020

Employees

The average monthly number of employees, including directors, during the period was 3.

4.	Stocks (properties under construction)
		2020
		£

	Work in progress	400,336
		400,336

Debtors

					2020
					£


	Other debtors	3,400,000
		3,400,000

Included within other debtors is £3,400,000, relating to a deposit held in respect of the purchase of a plot of land. Post year end, legal completion of the purchase occurred. See note 10 for details.

6.	Cash and cash equivalents
		2020
		£

	Cash at bank and in hand	100
		100

7.	Creditors: Amounts falling due within one year
		2020
		£

	Amounts owed to group undertakings	3,400,000
	Other creditors	400,336
		3,800,336

Page 5

CHASE (COCKFOSTERS) LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE PERIOD ENDED 31 MAY 2020

8.	Share capital
		2020
		£

		Allotted, called up and fully paid

		100 Ordinary shares of £1.00 each	100

The company was incorporated on 11 December 2019 and 100 Ordinary shares of £1 each were allotted.

Related party transactions

In accordance with FRS 102 1AC.35, as a wholly owned subsidiary of Wilson Properties (London) Ltd, the company is exempt from the requirements to disclose transactions with other wholly owned members of the group.
During the period the company made purchases of £400,336 from Chase New Homes Limited, a company with common ownership. At the balance sheet date, the company owed £400,336 to Chase New Homes Limited. The amount is unsecured, interest free and repayable on demand.

10.	Post balance sheet events

During October 2020, the company legally completed on the purchase of a plot of land, of which a deposit had been paid during the year, included in other debtors. The total purchase price was £34,000,000.
A bank loan was secured after the year end in respect of this purchase. The bank loan is secured on this property and the assets of the company.

11.	Ultimate controlling party

Chase (Cockfosters) Limited was a wholly owned subsidiary of Chase Capital Acquisitions Limited to 16 September 2020. On that date the immediate parent company became Chase (Cockfosters) Holding Limited. The parent of the smallest and largest group for which consolidated financial statements are drawn up is Wilson Properties (London) Ltd, the ultimate parent undertaking and controlling party. The registered office of which is 8 Parkway, Welwyn Garden City, Hertfordshire, England, AL8 6HG.

12.	Auditors' information

The auditors' report on the financial statements for the period ended 31 May 2020 was unqualified.

The audit report was signed on 2 March 2021 by Brendan Sharkey FCA (Senior Statutory Auditor) on behalf of MHA MacIntyre Hudson.

Page 6