Pearglen Limited - Accounts to registrar (filleted) - small 22.3

REGISTERED NUMBER: 04095132 (England and Wales)

Financial Statements

for the Year Ended 31 March 2022

for

PEARGLEN LIMITED

Page

Company Information

1

Balance Sheet

2

Notes to the Financial Statements

3

Directors:

S A Glover

R A Osborn

Registered office:

69-73 Theobalds Road

London

WC1X 8TA

Registered number:

04095132 (England and Wales)

Auditors:

Haines Watts

Chartered Accountants

Statutory Auditor

Aissela

46 High Street

Esher

Surrey

KT10 9QY

Current assets

Stocks

3,312,915

3,689,561

Debtors

5

1,526,195

140,507

Cash at bank

3,698,676

5,237

8,537,786

3,835,305

Creditors

Amounts falling due within one year

6

3,684,448

1,234,959

Net current assets

4,853,338

2,600,346

Total assets less current liabilities

4,853,338

2,600,346

Capital and reserves

Called up share capital

8

200

200

Retained earnings

4,853,138

2,600,146

Shareholders' funds

4,853,338

2,600,346

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

In accordance with Section 444 of the Companies Act 2006, the Profit and Loss Account has not been delivered.

The financial statements were approved by the Board of Directors and authorised for issue on 12 December 2022 and were signed on its behalf by:

R A Osborn - Director

1.	Statutory information

Pearglen Limited is a private company, limited by shares , registered in England and Wales. The company's registered number and registered office address can be found on the Company Information page.

The presentation currency of the financial statements is the Pound Sterling (£).

2.	Accounting policies

Basis of preparing the financial statements

These financial statements have been prepared in accordance with Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" including the provisions of Section 1A "Small Entities" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention.

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

Going concern

Due to intercompany balances and cross guarantees for lending with the Consero Group, the company's going concern is linked to the Group's going concern. The Group is near completion on its largest current project with units currently being sold, generating cash in the Group to fund current cash and operating requirements. However, in the long term the Group has net liabilities of £13.76m. The repayment of all long term debt is reliant on the performance of current and future projects generating sufficient profits. Given the current economic climate, there is some uncertainty as to whether this will be achieved and as a result there is uncertainty over the long term ability of the group to meet all of its long term obligations without further investment or refinancing.

However, the directors believe that the company has adequate resources to continue in operational existence for the foreseeable future. Therefore, the directors continue to adopt the going concern basis of accounting in preparing the annual financial statements.

Key source of estimation, uncertainty and judgement

The preparation of financial statements in conformity with generally accepted accounting practice requires management to make estimates and judgement that affect the reported amounts of assets and liabilities as well as the disclosure of contingent assets and liabilities at the balance sheet date and the reported amounts of revenues and expenses during the reporting period.

a) Stock

There is estimation uncertainty in relation to stock impairment. Management estimate future costs to be incurred for the site and the predicted sales price of each unit.

b) Cost of sales

There is estimation uncertainty relating to the calculation of cost of sales. At the point of sale of each unit, management calculate the cost of sale as a proportion of the total cost of the project.

Turnover

Turnover is measured at the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes.

Stocks

Work in progress is valued at the lower of cost and net realisable value.

Cost included all direct expenditure and an appropriate proportion of fixed and variable overheads

Financial instruments

Financial assets and financial liabilities are recognised in the balance sheet when the company becomes a party to the contractual provisions of the instrument.

Trade and other debtors and creditors are classified as basic financial instruments and measured at initial recognition at transaction price. Debtors and creditors are subsequently measured at amortised cost using the effective interest rate method. A provision is established when there is objective evidence that the company will not be able to collect all amounts due.

Cash and cash equivalents are classified as basic financial instruments and comprise cash in hand and at bank and bank overdrafts.

Financial liabilities and equity instruments issued by the company are classified in accordance with the substance of the contractual arrangements entered into and the definitions of a financial liability and an equity instrument. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities. Equity instruments issued by the company are recorded at the proceeds received, net of direct issue costs.

Taxation

Taxation for the year comprises current and deferred tax. Tax is recognised in the Profit and Loss Account, except to the extent that it relates to items recognised in other comprehensive income or directly in equity.

Current or deferred taxation assets and liabilities are not discounted.

Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date.

Deferred tax

Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date.

Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference.

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

3.	Employees and directors

The average number of employees during the year was NIL (2021 - NIL).

4.	Fixed asset investments

Other

investments

£

Cost

At 1 April 2021

and 31 March 2022

10,199

Provisions

At 1 April 2021

and 31 March 2022

10,199

Net book value

At 31 March 2022

-

At 31 March 2021

-

5.

Debtors: amounts falling due within one year

2022

2021

£

£

Amounts owed by group undertakings

962,768

-

Other debtors

563,427

140,507

1,526,195

140,507

6.

Creditors: amounts falling due within one year

2022

2021

£

£

Trade creditors

103,998

30,649

Amounts owed to group undertakings

1,996,807

1,052,427

Other creditors

1,583,643

151,883

3,684,448

1,234,959

7.	Secured debts

The property held in stock is subject of a fixed and floating charge in respect of a secured debt in relation to the company's parent entity.

8.	Called up share capital

Allotted, issued and fully paid:

Number:

Class:

Nominal

2022

2021

value:

£

£

200

Ordinary

1

200

200

9.	Disclosure under Section 444(5B) of the Companies Act 2006

The Report of the Auditors was unqualified.

Paul Hodgett BA (Hons) FCA (Senior Statutory Auditor)

for and on behalf of Haines Watts

10.	Related party disclosures

At the period end date the company owed £1,993,927 (2021: £1,052,427) to its parent company. The loan is interest free and repayable on demand.

At the period end date the company owed £1,939 (2021: £1,939) to the parent of the group. The loan is interest free and repayable on demand.

At the period end date the company was owed £959,888 (2021: £Nil) by fellow subsidiaries of the group. The loans are interest free and repayable on demand.

11.	Ultimate controlling party