ACCOUNTS - Final Accounts

An analysis of turnover by class of business is as follows:

BOWES STREET APARTMENTS LIMITED - Company Information

Caseware UK (AP4) 2021.0.152 2021.0.152 0truetruetruetruetrue2021-01-01falseNo description of principal activity0true 11249494 2021-01-01 2021-12-31 11249494 2020-01-01 2020-12-31 11249494 2021-12-31 11249494 2020-12-31 11249494 2020-01-01 11249494 c:Director1 2021-01-01 2021-12-31 11249494 c:Director2 2021-01-01 2021-12-31 11249494 c:Director3 2021-01-01 2021-12-31 11249494 c:RegisteredOffice 2021-01-01 2021-12-31 11249494 d:FreeholdInvestmentProperty 2021-01-01 2021-12-31 11249494 d:FreeholdInvestmentProperty 2021-12-31 11249494 d:FreeholdInvestmentProperty 2020-12-31 11249494 d:FreeholdInvestmentProperty 2 2021-01-01 2021-12-31 11249494 d:CurrentFinancialInstruments 2021-12-31 11249494 d:CurrentFinancialInstruments 2020-12-31 11249494 d:CurrentFinancialInstruments d:WithinOneYear 2021-12-31 11249494 d:CurrentFinancialInstruments d:WithinOneYear 2020-12-31 11249494 d:ReportableOperatingSegment1 2021-01-01 2021-12-31 11249494 d:ReportableOperatingSegment1 2020-01-01 2020-12-31 11249494 d:ShareCapital 2021-12-31 11249494 d:ShareCapital 2020-12-31 11249494 d:ShareCapital 2020-01-01 11249494 d:RetainedEarningsAccumulatedLosses 2021-01-01 2021-12-31 11249494 d:RetainedEarningsAccumulatedLosses 2021-12-31 11249494 d:RetainedEarningsAccumulatedLosses 2020-01-01 2020-12-31 11249494 d:RetainedEarningsAccumulatedLosses 2020-12-31 11249494 d:RetainedEarningsAccumulatedLosses 2020-01-01 11249494 d:AcceleratedTaxDepreciationDeferredTax 2021-12-31 11249494 d:AcceleratedTaxDepreciationDeferredTax 2020-12-31 11249494 d:TaxLossesCarry-forwardsDeferredTax 2021-12-31 11249494 d:TaxLossesCarry-forwardsDeferredTax 2020-12-31 11249494 d:OtherDeferredTax 2021-12-31 11249494 d:OtherDeferredTax 2020-12-31 11249494 c:OrdinaryShareClass1 2021-01-01 2021-12-31 11249494 c:OrdinaryShareClass1 2021-12-31 11249494 c:OrdinaryShareClass1 2020-12-31 11249494 c:FRS101 2021-01-01 2021-12-31 11249494 c:Audited 2021-01-01 2021-12-31 11249494 c:FullAccounts 2021-01-01 2021-12-31 11249494 c:PrivateLimitedCompanyLtd 2021-01-01 2021-12-31 11249494 d:FinancialLiabilitiesAmortisedCost 2021-01-01 2021-12-31 11249494 2 2021-01-01 2021-12-31 11249494 d:WithinOneYear 2021-12-31 11249494 d:WithinOneYear 2020-12-31 11249494 d:BetweenOneTwoYears 2021-12-31 11249494 d:BetweenOneTwoYears 2020-12-31 iso4217:GBP xbrli:shares xbrli:pure

Registered number: 11249494

Bowes Street Apartments Limited

Directors' Report and Financial Statements

For the year ended 31 December 2021

Bowes Street Apartments Limited

Company Information

Directors	N K Rawlings
	J D Thomas
	A Pratt


Registered number	11249494


Registered office	1a The Mailbox
	1 Exchange Street
	Stockport
	Cheshire
	SK3 OGA


Independent auditors	Hurst Accountants Limited
	Chartered Accountants & Statutory Auditors
	Lancashire Gate
	21 Tiviot Dale
	Stockport
	Cheshire
	SK1 1TD

Bowes Street Apartments Limited

Contents

	Page
Directors' report	1 - 2
Independent auditors' report	3 - 6
Statement of comprehensive income	7
Balance sheet	8
Statement of changes in equity	9
Notes to the financial statements	10 - 21

Bowes Street Apartments Limited

Directors' Report

For the year ended 31 December 2021

The directors present their report and the financial statements for the year ended 31 December 2021.

Directors' responsibilities statement

The directors are responsible for preparing the Directors' Report and the financial statements in accordance with applicable law and regulations.

Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including Financial Reporting Standard 101 ‘Reduced Disclosure Framework’. Under company law the directors must not approve the financial statements unless they are 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 directors are 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 directors are 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 to enable them to ensure that the financial statements comply with the Companies Act 2006. They are 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.

Directors

The directors who served during the year were:

N K Rawlings

J D Thomas

A Pratt

Disclosure of information to auditors

Each of the persons who are directors at the time when this Directors' Report is approved has confirmed that:

∙so far as the director is aware, there is no relevant audit information of which the Company's auditors are unaware, and

∙the director has taken all the steps that ought to have been taken as a director in order to be aware of any relevant audit information and to establish that the Company's auditors are aware of that information.

Auditors

The auditors, Hurst Accountants Limited, were appointed in the year and will be proposed for reappointment in accordance with section 485 of the Companies Act 2006.

Small companies note

In preparing this report, the directors have taken advantage of the small companies exemptions provided by section 415A of the Companies Act 2006.

Page 1

Bowes Street Apartments Limited

Directors' Report (continued)

For the year ended 31 December 2021

This report was approved by the board and signed on its behalf.

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

N K Rawlings

Director

Date: 15 September 2022

Page 2

Bowes Street Apartments Limited

Independent Auditors' Report to the Members of Bowes Street Apartments Limited

Opinion

We have audited the financial statements of Bowes Street Apartments Limited (the 'Company') for the year ended 31 December 2021, which comprise the Statement of Comprehensive Income, the Balance Sheet, the Statement of Changes in Equity and the related notes, 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 101 ‘Reduced Disclosure Framework’ (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 31 December 2021 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 United Kingdom, including the Financial Reporting Council'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

In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the Company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.

Other information

The other information comprises the information included in the Annual Report other than the financial statements and our Auditors' Report thereon. The directors are responsible for the other information contained within the Annual Report. 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. 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 course of 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 this gives rise to a material misstatement in the financial statements themselves. 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.

Page 3

Bowes Street Apartments Limited

Independent Auditors' Report to the Members of Bowes Street Apartments Limited (continued)

Opinion 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 Directors' Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and

∙the Directors' Report has 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 Directors' Report.

We have nothing to report in respect of the following matters in relation to which 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 directors' remuneration specified by law are not made; or

∙we have not received all the information and explanations we require for our audit; or

∙the directors were not entitled to prepare the financial statements in accordance with the small companies regime and take advantage of the small companies' exemptions in preparing the Directors' Report and from the requirement to prepare a Strategic Report.

Responsibilities of directors

As explained more fully in the Directors' Responsibilities Statement set out on page 1, the directors are 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 directors determine is 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 directors are 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 directors either intend to liquidate the Company or to cease operations, or have no realistic alternative but to do so.

Page 4

Bowes Street Apartments Limited

Independent Auditors' Report to the Members of Bowes Street Apartments Limited (continued)

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 an Auditors' Report 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.

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

Identifying and assessing potential risks related to irregularities
In identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, we considered the following:
• The nature of the industry and sector in which the company operates; the control environment and business performance including key drivers for directors' remuneration, bonus levels and performance targets.
• The outcome of enquiries of local management and parent company management, including whether management was aware of any instances of non-compliance with laws and regulations, and whether management had knowledge of any actual, suspected, or alleged fraud.
• Supporting documentation relating to the Company's policies and procedures for:
- Identifying, evaluating, and complying with laws and regulations
- Detecting and responding to the risks of fraud
• The internal controls established to mitigate risks related to fraud or non-compliance with laws and regulations.
• The outcome of discussions amongst the engagement team regarding how and where fraud might occur in the financial statements and any potential indicators of fraud.
• The legal and regulatory framework in which the Company operates, particularly those laws and regulations which have a direct effect on the financial statements, such as the Companies Act 2006, pensions and tax legislation, or which had a fundamental effect on the operations of the Company, including General Data Protection requirements, and Anti-bribery and Corruption.
Audit response to risks identified
Our procedures to respond to the risks identified included the following:
• Reviewing the financial statements disclosures and testing to supporting documentation to assess compliance with the provisions of those relevant laws and regulations which have a direct effect on the financial statements.
• Discussions with management, including consideration of known or suspected instances of non-compliance with laws and regulations and fraud.
• Evaluation and testing of the operating effectiveness of management’s controls designed to prevent and detect irregularities.
• Enquiring of management about any actual and potential litigation and claims.
• Performing analytical procedures to identify any unusual or unexpected relationships which may indicate risks of material misstatement due to fraud.

Page 5

Bowes Street Apartments Limited

Independent Auditors' Report to the Members of Bowes Street Apartments Limited (continued)

We have also considered the risk of fraud through management override of controls by:
• Testing the appropriateness of journal entries and other adjustments.
• Challenging assumptions made by management in their significant accounting estimates, and assessing whether the judgements made in making accounting estimates are indicative of a potential bias; and
• Evaluating the business rationale of any significant transactions that are unusual or outside the normal course of business.
We also communicated relevant identified laws and regulations and potential fraud risks to all engagement team members and remained alert to any indications of fraud or non-compliance with laws and regulations throughout the audit.
There are inherent limitations in the audit procedures described above, and the further removed non-compliance with laws and regulations are from the events and transactions reflected in the financial statements, the less likely we would become aware of them. Also, the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentations, or through collusion.

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 Auditors' Report.

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 an Auditors' Report 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.

Anthony Woodings (senior statutory auditor)

for and on behalf of

Hurst Accountants Limited

Chartered Accountants

Statutory Auditors

Lancashire Gate

21 Tiviot Dale

Stockport

Cheshire

SK1 1TD

15 September 2022

Page 6

Bowes Street Apartments Limited

Statement of Comprehensive Income

For the year ended 31 December 2021

	2021	2020
Note	£	£


Turnover	4	922,100	703,719
Administrative expenses		(298,942)	(329,543)
Operating profit		623,158	374,176
Revaluation of investment property	9	905,399	2,183,606
Interest receivable and similar income		8	-
Interest payable and similar expenses	7	(592,257)	(638,821)
Profit before tax		936,308	1,918,961
Tax on profit	8	(409,364)	(277,095)
Profit for the financial year		526,944	1,641,866

There was no other comprehensive income for 2021 (2020:£NIL).

The notes on pages 10 to 21 form part of these financial statements.

Page 7

Bowes Street Apartments Limited

Registered number: 11249494

Balance Sheet

As at 31 December 2021

		2021		2020
Note		£		£


Fixed assets
Investment property	9		15,900,000		15,000,000
Current assets
Debtors: amounts falling due within one year	10	664,520		409,588
Cash at bank and in hand	11	12,666		662
		677,186		410,250
Creditors: amounts falling due within one year	12	(14,182,585)		(13,951,957)
Net current liabilities			(13,505,399)		(13,541,707)
Total assets less current liabilities			2,394,601		1,458,293

Provisions for liabilities
Deferred taxation	15		(686,459)		(277,095)

Net assets			1,708,142		1,181,198

Capital and reserves
Called up share capital	16	1	1
Profit and loss account	17	1,708,141	1,181,197
		1,708,142	1,181,198

The Company's financial statements have been prepared in accordance with the provisions applicable to entities 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:

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

N K Rawlings

Director

Date: 15 September 2022

The notes on pages 10 to 21 form part of these financial statements.

Page 8

Bowes Street Apartments Limited

Statement of Changes in Equity

For the year ended 31 December 2021

	Called up share capital	Profit and loss account	Total equity
	£	£	£
At 1 January 2020	1	(460,669)	(460,668)
Comprehensive income for the year
Profit for the year	-	1,641,866	1,641,866

At 1 January 2021	1	1,181,197	1,181,198
Comprehensive income for the year
Profit for the year	-	526,944	526,944
At 31 December 2021	1	1,708,141	1,708,142

The notes on pages 10 to 21 form part of these financial statements.

Page 9

Bowes Street Apartments Limited

Notes to the Financial Statements

For the year ended 31 December 2021

1.	General information

Bowe Street Apartments Limited is a private company limited by share capital incorporated in England and Wales. The company's registered number 11249494. The address of its registered office is 1a The Mailbox, 1 Exchange Street, Stockport, England, SK3 0GA.
The presentation currency of the financial statements is the Pound Sterling (£). The principal activity of the company is that of the construction and subsequent letting of residential property.

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 Financial Reporting Standard 101 'Reduced Disclosure Framework' and the Companies Act 2006.

Information on the impact of first-time adoption of FRS 101 is given in note 21.

The preparation of financial statements in compliance with FRS 101 requires the use of certain critical accounting estimates. It also requires management to exercise judgement in applying the Company's accounting policies (see note 3).

First time application of FRS 101

In the current year the Company has adopted FRS 101. In previous years the financial statements were prepared in accordance with FRS 102.

The following principal accounting policies have been applied:

2.2

Financial reporting standard 101 - reduced disclosure exemptions

The company's results are contained within the consolidated financial statements of GH BTR Finance Limited and GH BTR Holdings Limited, which can be obtained from Companies House.

The company has taken advantage of the following disclosure exemptions under FRS 101:

∙the requirements of IFRS 7 Financial Instruments: Disclosures

∙the requirements of paragraphs 91-99 of IFRS 13 Fair Value Measurement

∙the requirements of IAS 7 Statement of Cash Flows

∙the requirements of paragraphs 30 and 31 of IAS 8 Accounting Policies, Changes in Accounting Estimates and Errors

∙the requirements in IAS 24 Related Party Disclosures to disclose related party transactions entered into between two or more members of a group, provided that any subsidiary which is a party to the transaction is wholly owned by such a member

2.3

Going concern

The financial statements have been prepared on a going concern basis. The company's immediate and ultimate parent have committed to providing additional support where necessary to enable the company to meet its debts as they fall due.

Page 10

Bowes Street Apartments Limited

Notes to the Financial Statements

For the year ended 31 December 2021

2.Accounting policies (continued)

2.4

Impact of new international reporting standards, amendments and interpretations

There have been no new reporting standards issued that have had an impact on the company's comparative balance sheet and profit and loss.

2.5

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:
Revenue represents income from property rental and is recognised in the period it relates to.

2.6

Interest income

Interest income is recognised in profit or loss using the effective interest method.

2.7

Finance costs

Finance costs are charged to profit or loss over the term of the debt using the effective interest method so that the amount charged is at a constant rate on the carrying amount. Issue costs are initially recognised as a reduction in the proceeds of the associated capital instrument.

2.8

Borrowing costs

All borrowing costs are recognised in profit or loss in the year in which they are incurred.

Page 11

Bowes Street Apartments Limited

Notes to the Financial Statements

For the year ended 31 December 2021

2.Accounting policies (continued)

2.9

Current and deferred taxation

The tax expense for the year comprises current and deferred tax. Tax is recognised in profit or loss except that a charge attributable to an item of income and expense recognised as other comprehensive income or to an item recognised directly in equity is also recognised in other comprehensive income or directly in equity respectively.

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

Deferred tax balances are recognised in respect of all timing differences that have originated but not reversed by the Balance Sheet date, except that:

∙The recognition of deferred tax assets is limited to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits; and

∙Any deferred tax balances are reversed if and when all conditions for retaining associated tax allowances have been met.

Deferred tax balances are not recognised in respect of permanent differences except in respect of business combinations, when deferred tax is recognised on the differences between the fair values of assets acquired and the future tax deductions available for them and the differences between the fair values of liabilities acquired and the amount that will be assessed for tax. Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the balance sheet date.

2.10

Investment property

Investment property under construction is valued at cost, until either the fair value can be reliably determined, or when construction is complete, whichever event happens first.
Once a valuation for the property is obtained, the property is valued at fair value through profit and loss. No depreciation is provided.

2.11

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.

2.12

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.

Page 12

Bowes Street Apartments Limited

Notes to the Financial Statements

For the year ended 31 December 2021

2.Accounting policies (continued)

2.13

Creditors

Creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers.

Creditors are recognised initially at fair value and subsequently measured at amortised cost using the effective interest method.

2.14

Provisions for liabilities

Provisions are made where an event has taken place that gives the Company a legal or constructive obligation that probably requires settlement by a transfer of economic benefit, and a reliable estimate can be made of the amount of the obligation.
Provisions are charged as an expense to profit or loss in the year that the Company becomes aware of the obligation, and are measured at the best estimate at the Balance Sheet date of the expenditure required to settle the obligation, taking into account relevant risks and uncertainties.
When payments are eventually made, they are charged to the provision carried in the Balance Sheet.

Page 13

Bowes Street Apartments Limited

Notes to the Financial Statements

For the year ended 31 December 2021

2.Accounting policies (continued)

2.15

Financial instruments

The Company recognises financial instruments when it becomes a party to the contractual arrangements of the instrument. Financial instruments are de-recognised when they are discharged or when the contractual terms expire. The Company's accounting policies in respect of financial instruments transactions are explained below:

Financial assets and financial liabilities are initially measured at fair value.

Financial assets

All recognised financial assets are subsequently measured in their entirety at either fair value or amortised cost, depending on the classification of the financial assets.

Impairment of financial assets

The Company always recognises lifetime ECL for trade receivables and amounts due on contracts with customers. The expected credit losses on these financial assets are estimated based on the Company's historical credit loss experience, adjusted for factors that are specific to the debtors, general economic conditions and an assessment of both the current as well as the forecast direction of conditions at the reporting date, including time value of money where appropriate. Lifetime ECL represents the expected credit losses that will result from all possible default events over the expected life of a financial instrument.

Financial liabilities

At amortised cost

Financial liabilities which are neither contingent consideration of an acquirer in a business combination, held for trading, nor designated as at fair value through profit or loss are subsequently measured at amortised cost using the effective interest method. This is a method of calculating the amortised cost of a financial liability and of allocating interest expense over the relevant period. The effective interest rate is the rate that exactly discounts estimated future cash payments through the expected life of the financial liability, or where appropriate a shorter period, to the amortised cost of a financial liability.

Page 14

Bowes Street Apartments Limited

Notes to the Financial Statements

For the year ended 31 December 2021

3.	Judgements in applying accounting policies and key sources of estimation uncertainty

Preparation of the financial statements requires management to make significant judgements, estimates and assumptions that affect the amount reported for assets and liabilities as at the balance sheet date. The nature of estimation means that the actual outcomes could differ from those estimates.
The items where judgements and estimation uncertainty may have the greatest impact on the financial statemetnts is summarised below:
Value of investment property
A valuation has been commissioned and completed by an external, independent, qualified valuer. This has been performed on an open market value basis.
The valuation provided, and included in the financial statements, is based on all relevant information available at the time, but events that are not known at the balance sheet date may transpire to cause the valuation of the property to be affected, which could either be related to the property itself, or the wider market.
During the year, an amount of £905,399 (2020: £2,183,606) was credited to the Statement of comprehensive income in respect of revaluations of investment property.
Impairment of investment property
Events during the year, and after the reporting date, are considered to determine whether any impairment of the property is required in the financial statements. Management have determined that £Nil (2020: £Nil) should be charged to the Statement of comprehensive income during the year in respect of impairments of investment property.
Bad and doubtful debts
Management have reviewed debts due from tenants that are in arrears, and have made appropriate provision where they believe recovery to be doubtful. At the year end, a provision of £24,275 (2020: £Nil) has been made in the financial statements.

	Rental Income	922,100	703,719

All turnover arose within the United Kingdom.

5.	Auditors' remuneration

	The Company has taken advantage of the exemption not to disclose amounts paid for non audit services as these are disclosed in the group accounts of the parent Company.
	Auditors remuneration is borne by an intermediate parent company, GH BTR Finance Limited, and the total fee is £35,000.

Page 15

Bowes Street Apartments Limited

Notes to the Financial Statements

For the year ended 31 December 2021

Employees

The Company has no employees other than the directors, who did not receive any remuneration (2020 - £NIL).

7.	Interest payable and similar expenses
		2021	2020
		£	£

Bank interest payable	8	-
Other loan interest payable	260,812	361,687
Loans from group undertakings	331,437	277,134
	592,257	638,821



Total current tax	-	-

	Deferred tax
	Origination and reversal of timing differences	409,364	277,095


	Taxation on profit on ordinary activities	409,364	277,095

Page 16

Bowes Street Apartments Limited

Notes to the Financial Statements

For the year ended 31 December 2021

8.Taxation (continued)

Profit on ordinary activities before tax

936,308

1,918,961

Profit on ordinary activities multiplied by standard rate of corporation tax in the UK of 19% (2020 - 19%)	177,899	364,603
Effects of:
Expenses not deductible for tax purposes, other than goodwill amortisation and impairment	(3,572)	-
Unrelieved tax losses carried forward	62,973	(72,110)
Other differences leading to an increase (decrease) in the tax charge	31,374	(15,398)
Change in deferred tax rates	140,690	-
Total tax charge for the year	409,364	277,095

Factors that may affect future tax charges

In March 2021 it was announced that the main rate of corporation tax would increase to 25% in the tax year commencing 1st April 2023 for companies where profits exceed £250,000. This will affect tax charges on profits made by the company in future years.

Page 17

Bowes Street Apartments Limited

Notes to the Financial Statements

For the year ended 31 December 2021

9.	Investment property

		Freehold investment property
		£
	Valuation
	At 1 January 2021	15,000,000
	Additions at cost	3,000
	Disposals	(8,399)
	Surplus on revaluation	905,399
	At 31 December 2021	15,900,000

The 2021 valuations were made by CBRE Limited, on an open market value for existing use basis.

Investment property under construction has been valued at fair value.
Rental income of £922,100 (2020: £703,719) has been derived from the property during the year.
The company has pledged its investment property as security for loans granted to its parent company. The amount of loan outstanding at the balance sheet date was £20 million.
Gains and losses on revaluation are posted directly to comprehensive income. At the year end, an amount of £3,089,005 (2020: £2,183,606) was recognised in the profit and loss reserve in respect of property revaluations.

10.

Debtors

					2021	2020
					£	£


Trade debtors	214,295	180,550
Amounts owed by group undertakings	436,628	191,925
Prepayments and accrued income	13,597	37,113
	664,520	409,588

Amounts owed by group undertakings are unsecured, interest free and repayable on demand.

11.	Cash and cash equivalents
		2021	2020
		£	£

	Cash at bank and in hand	12,666	662

Page 18

Bowes Street Apartments Limited

Notes to the Financial Statements

For the year ended 31 December 2021

12.	Creditors: Amounts falling due within one year
		2021	2020
		£	£

Other loans	-	8,229,950
Trade creditors	14,595	17,059
Amounts owed to group undertakings	14,009,725	5,359,503
Other creditors	-	257,956
Accruals and deferred income	158,265	87,489
	14,182,585	13,951,957

The company incurred interest costs on amounts owed to group undertakings as disclosed in note 7. Amounts owed to group undertakings are unsecured and repayable on demand.

Amounts falling due within one year
Other loans	-	8,229,950

The company repaid its debt from Greater Manchester Combined authority and Tameside Borough Council in June 2021.

14.

Leases

	Company as a lessor
	The company has entered lease agreements as a lessor as a Lessor that are considered to be operating leases.

Operating leases
The following table summarises the undiscounted lease payments receivable after the reporting date.
	2021	2020
	£	£

Not later than one year	452,790	440,112
Between one and two years	8,710	1,706
Total undiscounted lease payments receivable	461,500	441,818

Page 19

Bowes Street Apartments Limited

Notes to the Financial Statements

For the year ended 31 December 2021

15.	Deferred taxation

	2021	2020
	£	£

At beginning of year	(277,095)	-
Charged to profit or loss	(409,364)	(277,095)
At end of year	(686,459)	(277,095)

The provision for deferred taxation is made up as follows:
	2021	2020
	£	£

Accelerated capital allowances	(14,365)	-
Tax losses carried forward	100,157	137,790
Surplus on revaluation	(772,251)	(414,885)
	(686,459)	(277,095)

Due to uncertainty about when the losses may be recovered, a deferred tax asset of £82,859 has not been recognised in these financial statements.

16.	Share capital
		2021	2020
		£	£

Allotted, called up and fully paid

1 (2020 - 1) Ordinary share of £1.00	1	1

17.

Reserves

Profit and loss account
Comprises the retained profits and losses for the period. Amount of £3,089,005 (2020: £2,183,606) net of deferred tax liabilities of £772,251 (2020: £414,885) are considered to be unrealised and therefore not distributable to shareholders.

18.	Contingent liabilities

The investment property of the company was one of several offered as security for a loan facility taken out by the company's immediate parent company with a third party. Security has been leveraged against the company formally by the lender. At the balance sheet date, the outstanding loan facility is £20 million.

Page 20

Bowes Street Apartments Limited

Notes to the Financial Statements

For the year ended 31 December 2021

19.	Related party transactions
	The company has not disclosed transactions with companies that are within a wholly owned group, as permitted under the provisions of FRS 101. Below is a summary of related party transactions and a brief description of the nature of the relationship.

		2021	2020
		£	£

Purchases from entity where common significant influence exists	(172,342)	(1,826,439)
Amounts owed to entity where common influence exists	-	(163,606)
Recharges from other group companies	(67,879)	-
Amounts owed to intermediate parent company	(8,194,541)	-

20.	Controlling party

The immediate parent company is Rise Homes Limited.
On 27 July 2021, a controlling stake in the share capital of Rise Homes Limited was acquired by GHBTR Finance Limited, a company registered in England and Wales. This company is controlled by the ultimate parent company, Gresham House (Nominees) Limited.
The smallest group within which the results of the company are consolidated is GH BTR Finance Limited. The largest group within which the results of the company are consolidated is GH BTR Holdings Limited.
The ultimate parent company is Gresham House (Nominees) Limited.

21.	First time adoption of FRS 101 The policies applied under the entity's previous accounting framework are not materially different to FRS 101 and have not impacted on equity or profit or loss.

Page 21