PG Developments (South West) Limited - Period Ending 2019-12-31

PG Developments (South West) Limited - Period Ending 2019-12-31


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Registration number: 03758032

PG Developments (South West) Limited

Annual Report and Unaudited Financial Statements

for the Year Ended 31 December 2019

 

PG Developments (South West) Limited

Contents

Balance Sheet

1 to 2

Notes to the Financial Statements

3 to 12

 

PG Developments (South West) Limited

(Registration number: 03758032)
Balance Sheet as at 31 December 2019

Note

2019
£

2018
£

Fixed assets

 

Tangible assets

4

387,874

799,453

Investments

5

2

2

 

387,876

799,455

Current assets

 

Stocks

6

645,237

19,578

Debtors

7

621,993

562,954

Cash at bank and in hand

 

21,682

255

 

1,288,912

582,787

Creditors: Amounts falling due within one year

8

(440,847)

(197,522)

Net current assets

 

848,065

385,265

Total assets less current liabilities

 

1,235,941

1,184,720

Creditors: Amounts falling due after more than one year

8

(1,159,711)

(1,008,456)

Provisions for liabilities

-

(12,140)

Net assets

 

76,230

164,124

Capital and reserves

 

Called up share capital

4

4

Revaluation reserve

-

158,352

Profit and loss account

76,226

5,768

Total equity

 

76,230

164,124

For the financial year ending 31 December 2019 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.

Directors' responsibilities:

The members have not required the company to obtain an audit of its accounts for the year in question in accordance with section 476; and

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

 

PG Developments (South West) Limited

(Registration number: 03758032)
Balance Sheet as at 31 December 2019

These financial statements have been prepared in accordance with the special provisions relating to companies subject to the small companies regime within Part 15 of the Companies Act 2006.

These financial statements have been delivered in accordance with the provisions applicable to companies subject to the small companies regime and the option not to file the Profit and Loss Account has been taken.

Approved and authorised by the Board on 24 March 2021 and signed on its behalf by:
 

Mrs F Bradley
Company secretary and director

 

PG Developments (South West) Limited

Notes to the Financial Statements for the Year Ended 31 December 2019

1

General information

The company is a private company limited by share capital, incorporated in England and Wales.

The address of its registered office is:
Number One Bristol
Office 1
Lewins Mead
Bristol
BS1 2NJ

These financial statements were authorised for issue by the Board on 24 March 2021.

2

Accounting policies

Summary of significant accounting policies and key accounting estimates

The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.

Statement of compliance

These financial statements have been prepared in accordance with Financial Reporting Standard 102 Section 1A - 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' and the Companies Act 2006.

Basis of preparation

These financial statements have been prepared using the historical cost convention except that as disclosed in the accounting policies certain items are shown at fair value.

Going concern

In light of the Coronavirus pandemic, which has affected the global economy since the balance sheet date, the directors have reviewed the financial position of the company and assessed the likely future impacts on its financial position. The directors consider that the company has adequate resources to carry on in business and pay its debts as they fall due for the next twelve months from the date the accounts have been signed. The accounts have therefore been prepared on a going concern basis.

Revenue recognition

Turnover comprises the fair value of the consideration received or receivable for the sale of goods and provision of services in the ordinary course of the company’s activities. Turnover is shown net of sales/value added tax, returns, rebates and discounts.

The company recognises revenue when:
The amount of revenue can be reliably measured;
it is probable that future economic benefits will flow to the entity;
and specific criteria have been met for each of the company's activities.

Tax

The tax expense for the period comprises deferred tax. Tax is recognised in profit or loss, except that a change attributable to an item of income or expense recognised as other comprehensive income is also recognised directly in other comprehensive income.

 

PG Developments (South West) Limited

Notes to the Financial Statements for the Year Ended 31 December 2019

The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the reporting date in the countries where the company operates and generates taxable income.

Deferred tax is recognised in respect of all timing differences between taxable profits and profits reported in the financial statements.

Unrelieved tax losses and other deferred tax assets are recognised when it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits.

Deferred tax is measured using the tax rates and laws that have been enacted or substantively enacted by the reporting date and that are expected to apply to the reversal of the timing difference, except for revalued land and investment property where the tax rate that applies to the sale of the asset is used.

Tangible assets

Tangible assets are stated in the balance sheet at cost, less any subsequent accumulated depreciation and subsequent accumulated impairment losses.

The cost of tangible assets includes directly attributable incremental costs incurred in their acquisition and installation.

Depreciation

Depreciation is charged so as to write off the cost of assets, other than land and properties under construction over their estimated useful lives, as follows:

Asset class

Depreciation method and rate

Long leasehold property

Nil

Investment properties

Nil

Fixtures, fittings and equipment

25% reducing balance and 25% straight line

Motor vehicles

20% reducing balance and 20% straight line

Investment property

Investment property is carried at fair value, derived from the current market prices for comparable real estate determined annually by external valuers. The valuers use observable market prices, adjusted if necessary for any difference in the nature, location or condition of the specific asset. Changes in fair value are recognised in profit or loss.

Investments

Investments in equity shares which are publicly traded or where the fair value can be measured reliably are initially measured at fair value, with changes in fair value recognised in profit or loss. Investments in equity shares which are not publicly traded and where fair value cannot be measured reliably are measured at cost less impairment.

Interest income on debt securities, where applicable, is recognised in income using the effective interest method. Dividends on equity securities are recognised in income when receivable.

Cash and cash equivalents

Cash and cash equivalents comprise cash on hand and call deposits, and other short-term highly liquid investments that are readily convertible to a known amount of cash and are subject to an insignificant risk of change in value.

 

PG Developments (South West) Limited

Notes to the Financial Statements for the Year Ended 31 December 2019

Trade debtors

Trade debtors are amounts due from customers for merchandise sold or services performed in the ordinary course of business.

Trade debtors are recognised initially at the transaction price. They are subsequently measured at amortised cost using the effective interest method, less provision for impairment. A provision for the impairment of trade debtors is established when there is objective evidence that the company will not be able to collect all amounts due according to the original terms of the receivables.

Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost is determined using the first-in, first-out (FIFO) method.

The cost of finished goods and work in progress comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the inventories to their present location and condition. At each reporting date, stocks are assessed for impairment. If stocks are 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.

Trade creditors

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Accounts payable are classified as current liabilities if the company does not have an unconditional right, at the end of the reporting period, to defer settlement of the creditor for at least twelve months after the reporting date. If there is an unconditional right to defer settlement for at least twelve months after the reporting date, they are presented as non-current liabilities.

Trade creditors are recognised initially at the transaction price and subsequently measured at amortised cost using the effective interest method.

Borrowings

Interest-bearing borrowings are initially recorded at fair value, net of transaction costs. Interest-bearing borrowings are subsequently carried at amortised cost, with the difference between the proceeds, net of transaction costs, and the amount due on redemption being recognised as a charge to the Profit and Loss Account over the period of the relevant borrowing.

Interest expense is recognised on the basis of the effective interest method and is included in interest payable and similar charges.

Borrowings are classified as current liabilities unless the company has an unconditional right to defer settlement of the liability for at least twelve months after the reporting date.

 

PG Developments (South West) Limited

Notes to the Financial Statements for the Year Ended 31 December 2019

Leases

Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessee.

Assets held under finance leases are recognised at the lower of their fair value at inception of the lease and the present value of the minimum lease payments. These assets are depreciated on a straight-line basis over the shorter of the useful life of the asset and the lease term. The corresponding liability to the lessor is included in the Balance Sheet as a finance lease obligation.

Lease payments are apportioned between finance costs in the Profit and Loss Account and reduction of the lease obligation so as to achieve a constant periodic rate of interest on the remaining balance of the liability.

Share capital

Ordinary shares are classified as equity. Equity instruments are measured at the fair value of the cash or other resources received or receivable, net of the direct costs of issuing the equity instruments. If payment is deferred and the time value of money is material, the initial measurement is on a present value basis.

Dividends

Dividend distribution to the company’s shareholders is recognised as a liability in the financial statements in the reporting period in which the dividends are declared.

Defined contribution pension obligation

A defined contribution plan is a pension plan under which fixed contributions are paid into a pension fund and the company has no legal or constructive obligation to pay further contributions even if the fund does not hold sufficient assets to pay all employees the benefits relating to employee service in the current and prior periods.

Contributions to defined contribution plans are recognised as employee benefit expense when they are due. If contribution payments exceed the contribution due for service, the excess is recognised as a prepayment.

3

Staff numbers

The average number of persons employed by the company (including directors) during the year was 19 (2018 - 20).

 

PG Developments (South West) Limited

Notes to the Financial Statements for the Year Ended 31 December 2019

4

Tangible assets

Land and buildings
£

Furniture, fittings and equipment
 £

Motor vehicles
 £

Total
£

Cost or valuation

At 1 January 2019

385,521

485,187

23,791

894,499

Disposals

(385,521)

-

(8,255)

(393,776)

At 31 December 2019

-

485,187

15,536

500,723

Depreciation

At 1 January 2019

35,521

43,880

15,645

95,046

Charge for the year

-

58,384

3,195

61,579

Eliminated on disposal

(35,521)

-

(8,255)

(43,776)

At 31 December 2019

-

102,264

10,585

112,849

Carrying amount

At 31 December 2019

-

382,923

4,951

387,874

At 31 December 2018

350,000

441,307

8,146

799,453

Included within the net book value of land and buildings above is £Nil (2018 - £350,000) in respect of long leasehold land and buildings.
 

Revaluation

The fair value of the company's land and buildings was revalued on 31 December 2019. An independent valuer was not involved.
Had this class of asset been measured on a historical cost basis, the carrying amount would have been £Nil (2018 - £183,635).

 

PG Developments (South West) Limited

Notes to the Financial Statements for the Year Ended 31 December 2019

5

Investments

2019
£

2018
£

Investments in subsidiaries

2

2

Subsidiaries

£

Cost or valuation

At 1 January 2019 and 31 December 2019

2

Carrying amount

At 31 December 2019

2

At 31 December 2018

2

6

Stocks

2019
£

2018
£

Work in progress

645,237

19,578

7

Debtors

Note

2019
£

2018
£

Trade debtors

 

18,799

31,062

Amounts owed by group undertakings and undertakings in which the company has a participating interest

11

262,957

288,999

Other debtors

 

309,149

234,427

Prepayments and accrued income

 

31,088

8,466

 

621,993

562,954

 

PG Developments (South West) Limited

Notes to the Financial Statements for the Year Ended 31 December 2019

8

Creditors

Creditors: amounts falling due within one year

Note

2019
£

2018
£

Due within one year

 

Bank loans and overdrafts

9

147,760

106,699

Trade creditors

 

36,952

39,827

Taxation and social security

 

13,901

8,945

Other creditors

 

221,482

7,526

Accruals and deferred income

 

20,752

34,525

 

440,847

197,522

Creditors include bank loans and net obligations under finance leases which are secured of £429,309 (2018 - £539,877).

Creditors: amounts falling due after more than one year

Note

2019
£

2018
£

Due after one year

 

Loans and borrowings

9

1,159,711

1,008,456

2019
£

2018
£

Due after more than five years

After more than five years by instalments

59,670

42,614

-

-

 

PG Developments (South West) Limited

Notes to the Financial Statements for the Year Ended 31 December 2019

9

Loans and borrowings

2019
£

2018
£

Current loans and borrowings

Bank borrowings

15,663

15,261

HP and finance lease liabilities

132,097

91,438

147,760

106,699

2019
£

2018
£

Non-current loans and borrowings

Bank borrowings

91,408

106,908

Other borrowings

878,162

575,277

HP and finance lease liabilities

190,141

326,271

1,159,711

1,008,456

Other borrowings

A building society loan is denominated in Sterling with a nominal interest rate of the society's LIBOR rate of 1.84%, and the final instalment is due on 26 June 2026. The carrying amount at year end is £107,071 (2018 - £122,169).

The loan is secured on freehold property owned by the company.

10

Financial commitments, guarantees and contingencies

Amounts not provided for in the balance sheet

The total amount of guarantees not included in the balance sheet is £275,342 (2018 - £711,457). The company has given unlimited, multilateral guarantees against the bank debts of fellow group companies PG Properties Ltd and PG Enterprises Ltd.

11

Related party transactions

Summary of transactions with parent

PG Properties Ltd
 The parent has provided loans to the company.
 The loans are unsecured and due after one year. Interest is charged at 6% pa. £878,162 (2018 - £575,277) is due after one year.
 

 

PG Developments (South West) Limited

Notes to the Financial Statements for the Year Ended 31 December 2019

Loans to related parties

2019

Other related parties
£

At start of period

288,999

Repaid

(26,042)

At end of period

262,957

2018

Other related parties
£

At start of period

472,858

Advanced

123,273

Impairment

(307,132)

At end of period

288,999

Loans from related parties

2019

Parent
£

Other related parties
£

At start of period

575,277

5,966

Advanced

302,885

212,603

At end of period

878,162

218,569

2018

Parent
£

Other related parties
£

At start of period

428,882

12,453

Advanced

146,395

-

Repaid

-

(6,487)

At end of period

575,277

5,966

Terms of loans from related parties

The company continued to receive a loan from its parent company throughout the year which bears interest at 6% pa and is due after one year.
 The loans with other related parties are unsecured, interest free and repayable on demand.

 

PG Developments (South West) Limited

Notes to the Financial Statements for the Year Ended 31 December 2019

Summary of transactions with other related parties

Oriel Buildings Management Company Ltd, Portland Mansions Management Company Ltd, Peregrine Management Services Ltd, Stockwood Chambers Management Company Ltd, PG Carriageworks Ltd, Perran Properties Ltd, PG Lewins Ltd, PG Newfoundland Ltd, PG Cadogan Ltd, Petrus Group Ltd, PG Enterprise Ltd, Grant Bradley Galleries Ltd
 Intercompany loans have been provided between the companies.
 

12

Parent and ultimate parent undertaking

The company's immediate parent is PG Properties Limited, incorporated in England and Wales.

 The ultimate controlling party is PG Properties Limited.

13

Non adjusting events after the financial period

Since the end of the company’s financial year, the spread of COVID-19 has caused far reaching disruption to the economy. To date, this has not had a significant impact on the company’s financial position. There have been no interruptions in rental incomes from tenants and the directors do not consider that the market values of properties has been adversely affected.

The directors have not found it necessary to seek additional sources of finance nor to take advantage of the mortgage payment holidays made available in response to the pandemic. The lock-down period has not presented any significant practical issues due to the nature of the company’s business.

The directors expect the economic conditions to remain uncertain for the immediate future but is confident that the company has adequate resources and access to potential further borrowings to be able to continue in operation and pay its debts as they fall due.

The directors have determined that these are non-adjusting subsequent events and, therefore, no adjustments have been made to the results and financial position for the year ended 31 December 2019. The duration and full impact of the pandemic remain unclear at this time and the directors are not able to reliably estimate any consequential financial effects on the current and future financial periods.