Park Avenue Estates Limited Filleted accounts for Companies House (small and micro)

PARK AVENUE ESTATES LIMITED - Company Information

4 false false false false false false false false false true false false false false false false No description of principal activity 2021-01-01 Sage Accounts Production Advanced 2020 - FRS102_2019 2,412,000 285,887 285,887 2,412,000 2,126,113 xbrli:pure xbrli:shares iso4217:GBP 03290481 2021-01-01 2021-12-31 03290481 2021-12-31 03290481 2020-12-31 03290481 2020-01-01 2020-12-31 03290481 2020-12-31 03290481 core:FurnitureFittings 2021-01-01 2021-12-31 03290481 core:MotorVehicles 2021-01-01 2021-12-31 03290481 bus:Director1 2021-01-01 2021-12-31 03290481 bus:Director2 2021-01-01 2021-12-31 03290481 core:LandBuildings 2020-12-31 03290481 core:FurnitureFittings 2020-12-31 03290481 core:MotorVehicles 2020-12-31 03290481 core:LandBuildings 2021-12-31 03290481 core:FurnitureFittings 2021-12-31 03290481 core:MotorVehicles 2021-12-31 03290481 core:LandBuildings 2021-01-01 2021-12-31 03290481 core:AfterOneYear 2021-12-31 03290481 core:AfterOneYear 2020-12-31 03290481 core:WithinOneYear 2021-12-31 03290481 core:WithinOneYear 2020-12-31 03290481 core:ShareCapital 2021-12-31 03290481 core:ShareCapital 2020-12-31 03290481 core:RetainedEarningsAccumulatedLosses 2021-12-31 03290481 core:RetainedEarningsAccumulatedLosses 2020-12-31 03290481 core:CostValuation core:Non-currentFinancialInstruments 2021-12-31 03290481 core:Non-currentFinancialInstruments core:ProvisionsForImpairmentInvestments 2020-12-31 03290481 core:ImpairmentReversalProvisionsForImpairmentInvestments core:Non-currentFinancialInstruments 2021-12-31 03290481 core:Non-currentFinancialInstruments 2021-12-31 03290481 core:Non-currentFinancialInstruments 2020-12-31 03290481 core:LandBuildings 2020-12-31 03290481 core:FurnitureFittings 2020-12-31 03290481 core:MotorVehicles 2020-12-31 03290481 bus:SmallEntities 2021-01-01 2021-12-31 03290481 bus:AuditExemptWithAccountantsReport 2021-01-01 2021-12-31 03290481 bus:FullAccounts 2021-01-01 2021-12-31 03290481 bus:SmallCompaniesRegimeForAccounts 2021-01-01 2021-12-31 03290481 bus:PrivateLimitedCompanyLtd 2021-01-01 2021-12-31

COMPANY REGISTRATION NUMBER: 03290481

PARK AVENUE ESTATES LIMITED

FILLETED UNAUDITED FINANCIAL STATEMENTS

31 December 2021

PARK AVENUE ESTATES LIMITED

STATEMENT OF FINANCIAL POSITION

31 December 2021

	2021	2020
Note	£	£

Fixed assets

Tangible assets	5	57,242,951	57,863,792
Investments	6	2,412,000	2,126,113
		---------------	---------------
		59,654,951	59,989,905

Current assets

Debtors	7	15,994,889	14,059,862
Cash at bank and in hand		731,855	713,055
		---------------	---------------
		16,726,744	14,772,917

Creditors: amounts falling due within one year	8	8,215,716	6,594,911
		---------------	---------------
Net current assets		8,511,028	8,178,006
		---------------	---------------
Total assets less current liabilities		68,165,979	68,167,911

Creditors: amounts falling due after more than one year	9	23,718,423	24,000,000

Provisions

Taxation including deferred tax	5,097,272	5,191,348
	---------------	---------------
Net assets	39,350,284	38,976,563
	---------------	---------------

Capital and reserves

Called up share capital		100	100
Profit and loss account	10	39,350,184	38,976,463
		---------------	---------------
Shareholders funds		39,350,284	38,976,563
		---------------	---------------

These financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies' regime and in accordance with Section 1A of FRS 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'.

In accordance with section 444 of the Companies Act 2006, the statement of income and retained earnings has not been delivered.

For the year ending 31 December 2021 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 financial statements for the year in question in accordance with section 476 ;

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

PARK AVENUE ESTATES LIMITED

STATEMENT OF FINANCIAL POSITION (continued)

31 December 2021

These financial statements were approved by the board of directors and authorised for issue on 13 September 2022 , and are signed on behalf of the board by:

Mr F Sobhanpanah	Mr G Hamza
Director	Director

Company registration number: 03290481

PARK AVENUE ESTATES LIMITED

NOTES TO THE FINANCIAL STATEMENTS

YEAR ENDED 31 DECEMBER 2021

1. General information

The company is a private company limited by shares, registered in England and Wales. The address of the registered office is 99 Western Road, Hove, BN3 1FA.

2. Statement of compliance

These financial statements have been prepared in compliance with Section 1A of FRS 102, 'The Financial Reporting Standard applicable in the UK and the Republic of Ireland'.

3. Accounting policies

Basis of preparation

The financial statements have been prepared on the historical cost basis, as modified by the revaluation of certain financial assets and liabilities and investment properties measured at fair value through profit or loss. The financial statements are prepared in sterling, which is the functional currency of the entity. No material uncertainties related to conditions that may cast doubt about the ability of the company to continue as a going concern have been identified by the directors.

Going concern

The COVID-19 pandemic continues to have a minimal impact on the company's finances after the year end. The directors have confirmed that in their opinion, with the continuing support of the company's bankers, the pandemic will not affect the company's ability to continue in business as a going concern for the foreseeable future.

Consolidation

The company has taken advantage of the option not to prepare consolidated financial statements contained in Section 398 of the Companies Act 2006 on the basis that the company and its subsidiary undertakings comprise a small group.

Judgements and key sources of estimation uncertainty

The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the amounts reported. These estimates and judgements are continually reviewed and are based on experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. Significant judgements The judgements (apart from those involving estimations) that management has made in the process of applying the entity's accounting policies and that have the most significant effect on the amounts recognised in the financial statements are as follows: - investment property valuations

Revenue recognition

Turnover represents amounts invoiced, net of value added tax, derived from the company's principal activity. Rental income is recognised over the term of the lease on a straight-line basis. The aggregate cost of incentives is deducted from the rental income and allocated to the profit and loss account over the lease term or to the next review date, whichever is shorter. Sales income and asset management fees are recognised when the financial risks and rewards are transferred.

Income tax

The taxation expense represents the aggregate amount of current and deferred tax recognised in the reporting period. Tax is recognised in profit or loss, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. In this case, tax is recognised in other comprehensive income or directly in equity, respectively. Current tax is recognised on taxable profit for the current and past periods. Current tax is measured at the amounts of tax expected to pay or recover using the tax rates and laws that have been enacted or substantively enacted at the reporting date.

Deferred tax is recognised in respect of all timing differences at the reporting date. Unrelieved tax losses and other deferred tax assets are recognised to the extent that 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 that are expected to apply to the reversal of the timing difference.

Foreign currencies

Foreign currency transactions are initially recorded in the functional currency, by applying the spot exchange rate as at the date of the transaction. Monetary assets and liabilities denominated in foreign currencies are translated at the exchange rate ruling at the reporting date, with any gains or losses being taken to the profit and loss account.

Tangible assets

Tangible assets are initially recorded at cost, and subsequently stated at cost less any accumulated depreciation and impairment losses. Any tangible assets carried at revalued amounts are recorded at the fair value at the date of revaluation less any subsequent accumulated depreciation and subsequent accumulated impairment losses. An increase in the carrying amount of an asset as a result of a revaluation, is recognised in other comprehensive income and accumulated in equity, except to the extent it reverses a revaluation decrease of the same asset previously recognised in profit or loss. A decrease in the carrying amount of an asset as a result of revaluation, is recognised in other comprehensive income to the extent of any previously recognised revaluation increase accumulated in equity in respect of that asset. Where a revaluation decrease exceeds the accumulated revaluation gains accumulated in equity in respect of that asset, the excess shall be recognised in profit or loss.

Depreciation

Depreciation is calculated so as to write off the cost or valuation of an asset, less its residual value, over the useful economic life of that asset as follows:

Fixtures and fittings	-	25% reducing balance
Motor vehicles	-	25% reducing balance

No depreciation has been provided on investment properties.

Investments

Fixed asset investments are initially recorded at cost, and subsequently stated at cost less any accumulated impairment losses.

Listed investments are measured at fair value with changes in fair value being recognised in profit or loss.

Impairment of fixed assets

A review for indicators of impairment is carried out at each reporting date, with the recoverable amount being estimated where such indicators exist. Where the carrying value exceeds the recoverable amount, the asset is impaired accordingly. Prior impairments are also reviewed for possible reversal at each reporting date. For the purposes of impairment testing, when it is not possible to estimate the recoverable amount of an individual asset, an estimate is made of the recoverable amount of the cash-generating unit to which the asset belongs. The cash-generating unit is the smallest identifiable group of assets that includes the asset and generates cash inflows that largely independent of the cash inflows from other assets or groups of assets. For impairment testing of goodwill, the goodwill acquired in a business combination is, from the acquisition date, allocated to each of the cash-generating units that are expected to benefit from the synergies of the combination, irrespective of whether other assets or liabilities of the company are assigned to those units.

Government grants

Government grants are recognised at the fair value of the asset received or receivable. Grants are not recognised until there is reasonable assurance that the company will comply with the conditions attaching to them and the grants will be received. Government grants are recognised using the accrual model and the performance model. Under the accrual model, government grants relating to revenue are recognised on a systematic basis over the periods in which the company recognises the related costs for which the grant is intended to compensate. Grants that are receivable as compensation for expenses or losses already incurred or for the purpose of giving immediate financial support to the entity with no future related costs are recognised in income in the period in which it becomes receivable. Grants relating to assets are recognised in income on a systematic basis over the expected useful life of the asset. Where part of a grant relating to an asset is deferred, it is recognised as deferred income and not deducted from the carrying amount of the asset. Under the performance model, where the grant does not impose specified future performance-related conditions on the recipient, it is recognised in income when the grant proceeds are received or receivable. Where the grant does impose specified future performance-related conditions on the recipient, it is recognised in income only when the performance-related conditions have been met. Where grants received are prior to satisfying the revenue recognition criteria, they are recognised as a liability.

Provisions

Provisions are recognised when the entity has an obligation at the reporting date as a result of a past event, it is probable that the entity will be required to transfer economic benefits in settlement and the amount of the obligation can be estimated reliably. Provisions are recognised as a liability in the statement of financial position and the amount of the provision as an expense. Provisions are initially measured at the best estimate of the amount required to settle the obligation at the reporting date and subsequently reviewed at each reporting date and adjusted to reflect the current best estimate of the amount that would be required to settle the obligation. Any adjustments to the amounts previously recognised are recognised in profit or loss unless the provision was originally recognised as part of the cost of an asset. When a provision is measured at the present value of the amount expected to be required to settle the obligation, the unwinding of the discount is recognised as a finance cost in profit or loss in the period it arises.

Financial instruments

A financial asset or a financial liability is recognised only when the entity becomes a party to the contractual provisions of the instrument. Basic financial instruments are initially recognised at the transaction price, unless the arrangement constitutes a financing transaction, where it is recognised at the present value of the future payments discounted at a market rate of interest for a similar debt instrument. Debt instruments are subsequently measured at amortised cost.

Defined contribution plans

Contributions to defined contribution plans are recognised as an expense in the period in which the related service is provided. Prepaid contributions are recognised as an asset to the extent that the prepayment will lead to a reduction in future payments or a cash refund. When contributions are not expected to be settled wholly within 12 months of the end of the reporting date in which the employees render the related service, the liability is measured on a discounted present value basis. The unwinding of the discount is recognised as a finance cost in profit or loss in the period in which it arises.

4. Employee numbers

The average number of persons employed by the company during the year amounted to 4 (2020: 4 ).

5. Tangible assets

	Land and buildings	Fixtures and fittings	Motor vehicles	Total
	£	£	£	£
Valuation
At 1 January 2021	57,778,655	99,272	164,398	58,042,325
Additions	5,444	–	–	5,444
Disposals	( 605,000)	–	–	( 605,000)
	---------------	---------	----------	---------------
At 31 December 2021	57,179,099	99,272	164,398	57,442,769
	---------------	---------	----------	---------------
Depreciation
At 1 January 2021	–	98,902	79,631	178,533
Charge for the year	–	93	21,192	21,285
	---------------	---------	----------	---------------
At 31 December 2021	–	98,995	100,823	199,818
	---------------	---------	----------	---------------
Carrying amount
At 31 December 2021	57,179,099	277	63,575	57,242,951
	---------------	---------	----------	---------------
At 31 December 2020	57,778,655	370	84,767	57,863,792
	---------------	---------	----------	---------------

Tangible assets held at valuation

The investment properties were valued by the directors on an open market value basis at 31 December 2021.

6. Investments

	Shares in group undertakings
	£
Cost
At 1 January 2021 and 31 December 2021	2,412,000
	-------------
Impairment
At 1 January 2021	285,887
Reversal of impairment losses	( 285,887)
	-------------
At 31 December 2021	–
	-------------

Carrying amount
At 31 December 2021	2,412,000
	-------------
At 31 December 2020	2,126,113
	-------------

The company owns 100% of the issued share capital of Ridgewood Estates Ltd, a company incorporated in England & Wales.

Aggregate capital and reserves

Ridgewood Estates Ltd - at 31/12/21 £2,460,747 (2020: £2,126,113)

Profit and (loss) for the year

Ridgewood Estates Ltd - 2021 £334,634 (2020: £249,709)

The company is exempt from preparing consolidated accounts and has not done so, therefore the accounts show information about the company as an individual entity.

7. Debtors

	2021	2020
	£	£
Amounts owed by group undertakings and undertakings in which the company has a participating interest	3,761,886	664,170
Other debtors	12,233,003	13,395,692
	---------------	---------------
	15,994,889	14,059,862
	---------------	---------------

8. Creditors: amounts falling due within one year

	2021	2020
	£	£
Corporation tax	81,793	205,481
Social security and other taxes	8,508	8,626
Other creditors	8,125,415	6,380,804
	-------------	-------------
	8,215,716	6,594,911
	-------------	-------------

9. Creditors: amounts falling due after more than one year

	2021	2020
	£	£
Bank loans and overdrafts	23,718,423	24,000,000
	---------------	---------------

10. Reserves

Profit and loss account - This reserve records retained earnings and accumulated losses (distributable), together with investment property revaluations and associated deferred tax (non-distributable). At 31 December 2021 the profit and loss account balance of £39,350,184 (2020: £38,976,463) represents distributable reserves of £8,255,522 (2020: £7,434,798) and non-distributable reserves of £31,094,662 (2020: £31,541,665).

11. Related party transactions

The company's subsidiary, Ridgewood Estates Ltd, owed the company £3,761,886 at 31 December 2021 (2020 £664,170). The company sold one of its properties to a Self-Invested Personal Pension (SIPP) in 2017, the trustees of which are also the directors of the company. The sales price of £750,000 was receivable in five stages, the first instalment of £125,000 was received in 2017 and the second, third and fourth instalments of £156,250 were received during the years ended 31 December 2018, 2019 and 2020. The final instalment totalling £156,250 was paid by the SIPP during the year ended 31 December 2021. During the year the company repaid £425,046 in respect of their agreed reimbursable share of interest paid by Harwood Properties Limited (2020: £396,133). The directors of the company, F Sobhanpanah and G Hamza, are also directors and shareholders in Harwood Properties Limited. Other debtors also includes amounts owed by companies under common control totalling £12,128,134 (2020 £13,090,291). Other creditors includes amounts owed to companies under common control totalling £7,857,230 (2020 £6,148,538).