PG Developments (South West) Limited - Period Ending 2020-12-31

PG Developments (South West) Limited - Period Ending 2020-12-31


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Registration number: 03758032

PG Developments (South West) Limited

Annual Report and Unaudited Financial Statements

for the Year Ended 31 December 2020

 

PG Developments (South West) Limited

Contents

Balance Sheet

1 to 2

Notes to the Financial Statements

3 to 11

 

PG Developments (South West) Limited

(Registration number: 03758032)
Balance Sheet as at 31 December 2020

Note

2020
£

2019
£

Fixed assets

 

Intangible assets

4

6,800

-

Tangible assets

5

328,687

387,874

Investments

6

2

2

 

335,489

387,876

Current assets

 

Stocks

7

70,000

645,237

Debtors

8

1,209,779

621,993

Cash at bank and in hand

 

77,161

21,682

 

1,356,940

1,288,912

Creditors: Amounts falling due within one year

9

(880,659)

(440,847)

Net current assets

 

476,281

848,065

Total assets less current liabilities

 

811,770

1,235,941

Creditors: Amounts falling due after more than one year

9

(626,338)

(1,159,711)

Net assets

 

185,432

76,230

Capital and reserves

 

Called up share capital

4

4

Profit and loss account

185,428

76,226

Total equity

 

185,432

76,230

For the financial year ending 31 December 2020 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 2020

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 16 September 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 2020

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 16 September 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.

Government grants

Government grants have been recognised on an accruals basis and have been recognised in the same period in which the related expense has been incurred.

 

PG Developments (South West) Limited

Notes to the Financial Statements for the Year Ended 31 December 2020

Tax

The tax expense for the period comprises current 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.

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

Fixtures, fittings and equipment

25% reducing balance and 25% straight line

Motor vehicles

20% reducing balance and 20% straight line

Amortisation

Amortisation is provided on intangible assets so as to write off the cost, less any estimated residual value, over their useful life as follows:

Asset class

Amortisation method and rate

Website development costs

20% straight line

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.

 

PG Developments (South West) Limited

Notes to the Financial Statements for the Year Ended 31 December 2020

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.

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 2020

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 22 (2019 - 19).

 

PG Developments (South West) Limited

Notes to the Financial Statements for the Year Ended 31 December 2020

4

Intangible assets

Internally generated software development costs
 £

Total
£

Cost or valuation

Additions

8,500

8,500

At 31 December 2020

8,500

8,500

Amortisation

Amortisation charge

1,700

1,700

At 31 December 2020

1,700

1,700

Carrying amount

At 31 December 2020

6,800

6,800

5

Tangible assets

Furniture, fittings and equipment
 £

Motor vehicles
 £

Total
£

Cost or valuation

At 1 January 2020

485,187

15,536

500,723

Additions

3,307

-

3,307

Disposals

(18,857)

-

(18,857)

At 31 December 2020

469,637

15,536

485,173

Depreciation

At 1 January 2020

102,264

10,585

112,849

Charge for the year

59,053

3,441

62,494

Eliminated on disposal

(18,857)

-

(18,857)

At 31 December 2020

142,460

14,026

156,486

Carrying amount

At 31 December 2020

327,177

1,510

328,687

At 31 December 2019

382,923

4,951

387,874

 

PG Developments (South West) Limited

Notes to the Financial Statements for the Year Ended 31 December 2020

6

Investments

2020
£

2019
£

Investments in subsidiaries

2

2

Subsidiaries

£

Cost or valuation

At 1 January 2020 and 31 December 2020

2

Carrying amount

At 31 December 2020

2

At 31 December 2019

2

7

Stocks

2020
£

2019
£

Work in progress

70,000

645,237

8

Debtors

Note

2020
£

2019
£

Trade debtors

 

11,702

18,799

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

12

734,289

262,957

Other debtors

 

437,017

309,149

Prepayments and accrued income

 

26,771

31,088

 

1,209,779

621,993

 

PG Developments (South West) Limited

Notes to the Financial Statements for the Year Ended 31 December 2020

9

Creditors

Creditors: amounts falling due within one year

Note

2020
£

2019
£

Due within one year

 

Bank loans and other finance liabilities

10

90,790

147,760

Trade creditors

 

75,171

36,952

Amounts owed to related parties

 

552,139

-

Taxation and social security

 

142,123

13,901

Other creditors

 

3,551

221,482

Accruals and deferred income

 

16,885

20,752

 

880,659

440,847

Creditors include bank loans and net obligations under finance leases which are secured of £217,128 (2019 - £429,309).

Creditors: amounts falling due after more than one year

Note

2020
£

2019
£

Due after one year

 

Loans and borrowings

10

626,338

1,159,711

2020
£

2019
£

Due after more than five years

After more than five years by instalments

-

59,670

-

-

 

PG Developments (South West) Limited

Notes to the Financial Statements for the Year Ended 31 December 2020

10

Loans and borrowings

2020
£

2019
£

Current loans and borrowings

Bank borrowings

-

15,663

HP and finance lease liabilities

90,790

132,097

90,790

147,760

2020
£

2019
£

Non-current loans and borrowings

Bank borrowings

-

91,408

Other borrowings

500,000

878,162

HP and finance lease liabilities

126,338

190,141

626,338

1,159,711

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 £Nil (2019 - £107,071).

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

11

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 £35,140 (2019 - £275,342). The company has given unlimited, multilateral guarantees against the bank debts of fellow group companies PG Properties Ltd and PG Enterprises Ltd.

12

Related party transactions

Summary of transactions with parent

PG Properties Ltd
 The parent has provided loans to the company.
 The loans are unsecured.
 

 

PG Developments (South West) Limited

Notes to the Financial Statements for the Year Ended 31 December 2020

Loans to related parties

2020

Other related parties
£

At start of period

262,957

Advanced

123,554

At end of period

386,511

2019

Other related parties
£

At start of period

288,999

Repaid

(26,042)

At end of period

262,957

Loans from related parties

2020

Parent
£

Other related parties
£

At start of period

878,162

218,569

Advanced

113,977

425,792

At end of period

992,139

644,361

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

Terms of loans from related parties

The company continued to receive a loan from its parent company throughout the year.
 The loans with other related parties are unsecured, interest free and repayable on demand.

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.
 

13

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.