ACCOUNTS - Final Accounts

OPERATING PROFIT

Operating profit for the year is shown after charging:

AREA ESTATES LIMITED - Company Information

Registered number: 4730589

AREA ESTATES LIMITED

ANNUAL REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30 APRIL 2021


AREA ESTATES LIMITED

COMPANY INFORMATION

DIRECTORS	Mark Pears CBE
	Sir Trevor Pears CMG
	David Pears
	WPG Registrars Limited


COMPANY SECRETARY	William Bennett


REGISTERED NUMBER	4730589


REGISTERED OFFICE	Ground Floor
	30 City Road
	London
	EC1Y 2AB


INDEPENDENT AUDITORS	Arram Berlyn Gardner LLP
	Chartered Accountants & Statutory Auditor
	Ground Floor
	30 City Road
	London EC1Y 2AB


AREA ESTATES LIMITED

CONTENTS

	Page
Strategic Report	1
Directors' Report	2 - 3
Independent Auditors' Report	4 - 7
Statement of Comprehensive Income	8
Statement of Financial Position	9
Statement of Changes in Equity	10
Notes to the Financial Statements	11 - 18


AREA ESTATES LIMITED

STRATEGIC REPORT

FOR THE YEAR ENDED 30 APRIL 2021

INTRODUCTION

The directors present their report and the financial statements for the year ended 30 April 2021.

BUSINESS REVIEW

The market for property continues to prove challenging making it difficult to buy large number of properties at appropriate prices. However the directors will continue to make acquisitions of good quality properties where opportunities arise. Covid-19 has not impacted on the business.
At the year end the book value of stock was £165,451,803 (2020 - £148,561,079).

PRINCIPAL RISKS AND UNCERTAINTIES

The principal risk for the company is a significant fall in the value of properties owned which would reduce dealing profits.

FINANCIAL KEY PERFORMANCE INDICATORS

The Company's key performance indicators during the year were as follows:
Turnover £12,701,169 2020 - £16,190,778
Operating profit £ 3,958,949 2020 - £5,539,602
Loss after tax £ 3,978,133 2020 - £2,116,672
Equity shareholders' deficit £(9,916,879) 2020 - £(5,938,746)

This report was approved by the board on 25 November 2021 and signed on its behalf.

David Pears

Director

Page 1


AREA ESTATES LIMITED

DIRECTORS' REPORT

FOR THE YEAR ENDED 30 APRIL 2021

The directors present their report and the financial statements for the year ended 30 April 2021.

DIRECTORS' RESPONSIBILITIES STATEMENT

The directors are responsible for preparing the Strategic Report, 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 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland'. 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 for the Company's financial statements and then apply them consistently;

∙make judgments and accounting estimates that are reasonable and prudent;

∙state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements;

∙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.

PRINCIPAL ACTIVITY

The principal activity of the Company is property dealing.

RESULTS AND DIVIDENDS

The loss for the year, after taxation, amounted to £3,978,133 (2020 -loss £2,116,672).

The Company did not pay a dividend in the year under review.

DIRECTORS

The directors who served during the year were:

Mark Pears CBE

Sir Trevor Pears CMG

David Pears

WPG Registrars Limited

Page 2


AREA ESTATES LIMITED

DIRECTORS' REPORT (CONTINUED)

FOR THE YEAR ENDED 30 APRIL 2021

FUTURE DEVELOPMENTS

The directors consider the Company is well positioned for business in the future.

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.

This report was approved by the board on 25 November 2021 and signed on its behalf.

William Bennett

Secretary

Page 3


AREA ESTATES LIMITED

INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF AREA ESTATES LIMITED

OPINION

We have audited the financial statements of Area Estates Limited (the 'Company') for the year ended 30 April 2021, which comprise the Statement of Comprehensive Income, the Statement of Financial Position, 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 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland' (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 30 April 2021 and of its loss 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 4


AREA ESTATES LIMITED

INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF AREA ESTATES LIMITED (CONTINUED)

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

∙the Strategic Report and the Directors' Report have 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 Strategic Report or 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.

RESPONSIBILITIES OF DIRECTORS

As explained more fully in the Directors' Responsibilities Statement set out on page 2, 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 5


AREA ESTATES LIMITED

INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF AREA ESTATES 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.

The extent to which the audit was considered capable of detecting irregularities including fraud

Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was as follows:

∙the engagement partner ensured that the engagement team collectively had the appropriate competence, capabilities and skills to identify or recognise non-compliance with applicable laws and regulations;

∙we identified the laws and regulations applicable to the company through discussions with directors and other management, and from our commercial knowledge and experience of the property sector;

∙we focused on specific laws and regulations which we considered may have a direct material effect on the financial statements or the operations of the company including, but not limited to, the Companies Act 2006, and taxation legislation.

∙we assessed the extent of compliance with the laws and regulations identified above through making enquiries of management and inspecting correspondence; and

∙identified laws and regulations were communicated within the audit team regularly and the team remained alert to instances of non-compliance throughout the audit.

We assessed the susceptibility of the company’s financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by:

∙understanding the business model as part of the control and business environment;

∙considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations and;

∙making enquiries of management as to where they considered there was susceptibility to fraud, their knowledge of actual, suspected and alleged fraud.

To address the risk of fraud through management bias and override of controls, we:

∙performed analytical procedures to identify any unusual or unexpected relationships;

∙tested journal entries to identify unusual transactions;

∙assessed whether judgements and assumptions made in determining the accounting estimates were indicative of potential bias; and

∙investigated the rationale behind significant or unusual transactions.

Through these procedures, we did not identify any material actual or suspected incidents of fraud.

Page 6


AREA ESTATES LIMITED

INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF AREA ESTATES LIMITED (CONTINUED)

In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to:

∙agreeing financial statement disclosures to underlying supporting documentation;

∙enquiring of management as to actual and potential litigation and claims;

∙reviewing correspondence and enquiring with the company of actual and potential non-compliance with laws and regulations; and

∙reading the minutes of meetings of those charged with governance.

There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the directors and other management and the inspection of regulatory and legal correspondence, if any.

Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion. Our audit procedures are designed to detect material misstatement. We are not responsible for preventing non-compliance or fraud and cannot be expected to detect non-compliance with all laws and regulations.

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.

Ian Hughes (ACA) (Senior Statutory Auditor)

for and on behalf of

Arram Berlyn Gardner LLP

Chartered Accountants

Statutory Auditor

Ground Floor

30 City Road

London EC1Y 2AB

26 November 2021

Page 7


AREA ESTATES LIMITED

STATEMENT OF COMPREHENSIVE INCOME

FOR THE YEAR ENDED 30 APRIL 2021


	2021	2020
Note	£	£

Turnover	3	12,701,169	16,190,778
Cost of sales	3	(6,680,334)	(9,657,403)
GROSS PROFIT	3	6,020,835	6,533,375
Administrative expenses		(1,899,806)	(993,773)
Other operating expense	4	(162,080)	-
OPERATING PROFIT	5	3,958,949	5,539,602
Interest receivable and similar income	7	76,326	69,184
Interest payable and similar charges	8	(8,013,408)	(7,725,458)
LOSS ON ORDINARY ACTIVITIES BEFORE TAXATION		(3,978,133)	(2,116,672)
Taxation on loss on ordinary activities	9	-	-
LOSS FOR THE YEAR		(3,978,133)	(2,116,672)


TOTAL COMPREHENSIVE INCOME FOR THE YEAR		(3,978,133)	(2,116,672)

The notes on pages 11 to 18 form part of these financial statements.

Page 8


AREA ESTATES LIMITED REGISTERED NUMBER:4730589

STATEMENT OF FINANCIAL POSITION

AS AT 30 APRIL 2021

		2021		2020
Note		£		£

FIXED ASSETS
Investments	10		500		500
			500		500
CURRENT ASSETS
Stocks	11	165,451,803		148,561,079
Debtors: amounts falling due within one year	12	2,625,901		3,080,442
Cash at bank and in hand		202,266		68,831
		168,279,970		151,710,352
Creditors: amounts falling due within one year	13	(178,197,349)		(157,649,598)
NET CURRENT LIABILITIES			(9,917,379)		(5,939,246)
TOTAL ASSETS LESS CURRENT LIABILITIES			(9,916,879)		(5,938,746)

NET LIABILITIES			(9,916,879)		(5,938,746)

CAPITAL AND RESERVES
Called up share capital	14	999	999
Profit and loss account	15	(9,917,878)	(5,939,745)
EQUITY DEFICIT		(9,916,879)	(5,938,746)

The financial statements were approved and authorised for issue by the board and were signed on its behalf on 25 November 2021.

David Pears

Director

The notes on pages 11 to 18 form part of these financial statements.

Page 9


AREA ESTATES LIMITED

STATEMENT OF CHANGES IN EQUITY

FOR THE YEAR ENDED 30 APRIL 2021

	Share capital	Profit and loss account	Total equity
	£	£	£
At 1 May 2020	999	(5,939,745)	(5,938,746)
COMPREHENSIVE INCOME FOR THE YEAR
Loss for the year	-	(3,978,133)	(3,978,133)
TOTAL COMPREHENSIVE INCOME FOR THE YEAR	-	(3,978,133)	(3,978,133)
AT 30 APRIL 2021	999	(9,917,878)	(9,916,879)

The notes on pages 11 to 18 form part of these financial statements.

STATEMENT OF CHANGES IN EQUITY

FOR THE YEAR ENDED 30 APRIL 2020

	Share capital	Profit and loss account	Total equity
	£	£	£
At 1 May 2019	999	(3,823,073)	(3,822,074)
COMPREHENSIVE INCOME FOR THE YEAR
Loss for the year	-	(2,116,672)	(2,116,672)
TOTAL COMPREHENSIVE INCOME FOR THE YEAR	-	(2,116,672)	(2,116,672)
AT 30 APRIL 2020	999	(5,939,745)	(5,938,746)

The notes on pages 11 to 18 form part of these financial statements.

Page 10


AREA ESTATES LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30 APRIL 2021

1.	GENERAL INFORMATION

Area Estates Limited is a private company limited by shares incorporated in England and Wales.The registered office is Ground Floor, 30 City Road, London EC1Y 2AB. The principal place of business is Haskell House,152 West End Lane, London, NW6 1SD.

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 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and the Companies Act 2006.

The company's functional and presentational currency is GBP and rounded to the nearest £1.

The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires management to exercise judgment in applying the Company's accounting policies.

2.2

FINANCIAL REPORTING STANDARD 102 - REDUCED DISCLOSURE EXEMPTIONS

The company has taken advantage of the following disclosure exemptions in preparing these financial statements, as permitted by the FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland":

∙the requirements of Section 7 Statement of Cash Flows;

∙the requirements of Section 3 Financial Statement Presentation paragraph 3.17(d);

∙the requirements of Section 26 Share-based Payment paragraphs 26.18(b), 26.19 to 26.21 and 26.23.

This information is included in the consolidated financial statements of William Pears Group Limited as at 30 April 2021 and these financial statements may be obtained from Companies House.

2.3

JOINT VENTURES

Joint Ventures are held at cost less impairment. Losses are shown as a provision where certain obligations exists.

2.4

GOING CONCERN

The financial statements have been prepared on a going concern basis even though the company has net liabilities of £9,916,879 (2020 - £5,938,746).The validity of the going concern concept is dependent on the continuing support from creditors. The directors believe that the going concern concept is applicable as the company will be able to meet its debts as and when they fall due, as they are confident that the principal creditors will continue to provide support as required for a period of at least 12 months from the date of approval of the financial state.

Page 11


AREA ESTATES LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30 APRIL 2021

2.ACCOUNTING POLICIES (CONTINUED)

2.5

TURNOVER

Turnover 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. Turnover is measured as the fair value of the rents receivable and sales of property trading stock.

2.6

PROPERTY TRANSACTIONS

Purchases and sales of properties are included on the basis of completions occurring during the year.

2.7

STOCKS

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell.
At each reporting date, stocks are assessed for impairment. If stock is impaired, the carrying amount is reduced to its selling price less costs to complete and sell. The impairment loss is recognised immediately in income statement.
The Company's trading property is carried in the statement of financial position at the lower of cost and estimated selling price less costs to complete and sell. Provision is made to write down properties to fair value if this is below cost.
The valuation methodology described below determines the fair value of property.
Properties held in the residential and commercial portfolios were valued by the Managing Agents employed by the Company. These valuations were reviewed and approved by the directors.
For residential property, the Managing Agent's own qualified surveying team provided a vacant possession value and also recommend the discount to apply to the vacant possession valuations to establish the market value of each property. The discounts are established by tenancy type and are based on evidence.
Similarly, for Commercial property, the Managing Agent's own qualified surveyors recommend the yield to be applied to the Estimated Rental Value ("ERV") based on the type of property and location to establish the market value of each property.
All repairs, maintenance costs and renewals are written off as incurred.
Certain refurbishment costs which are part of major property refurbishment programmes may,depending on the nature of the works being undertaken, be capitalised in the Statement of financial position as part of property stock.

2.8

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.

2.9

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


AREA ESTATES LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30 APRIL 2021

2.ACCOUNTING POLICIES (CONTINUED)

2.10

FINANCIAL INSTRUMENTS

The Company only enters into basic financial instruments transactions that result in the recognition of financial assets and liabilities like trade and other debtors and creditors, and loans to/(from) related parties.

Debt instruments (other than those wholly repayable or receivable within one year), including loans and other accounts receivable and payable, are initially measured at present value of the future cash flows and subsequently at amortised cost using the effective interest method. Debt instruments that are payable or receivable within one year, typically trade debtors and creditors, are measured, initially and subsequently, at the undiscounted amount of the cash or other consideration expected to be paid or received. However, if the arrangements of a short-term instrument constitute a financing transaction, like the payment of a trade debt deferred beyond normal business terms or financed at a rate of interest that is not a market rate or in the case of an out-right short-term loan not at market rate, the financial asset or liability is measured, initially, at the present value of the future cash flow discounted at a market rate of interest for a similar debt instrument and subsequently at amortised cost.

Financial assets that are measured at cost and amortised cost are assessed at the end of each reporting period for objective evidence of impairment. If objective evidence of impairment is found, an impairment loss is recognised in the Statement of Comprehensive Income.

For financial assets measured at amortised cost, the impairment loss is measured as the difference between an asset's carrying amount and the present value of estimated cash flows discounted at the asset's original effective interest rate. If a financial asset has a variable interest rate, the discount rate for measuring any impairment loss is the current effective interest rate determined under the contract.

For financial assets measured at cost less impairment, the impairment loss is measured as the difference between an asset's carrying amount and best estimate of the recoverable amount, which is an approximation of the amount that the Company would receive for the asset if it were to be sold at the reporting date.

Financial assets and liabilities are offset and the net amount reported in the Statement of Financial Position when there is an enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

2.11

CREDITORS

Short term creditors are measured at the transaction price.

2.12

INTEREST INCOME

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

2.13

TAXATION

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 reporting date in the countries where the Company operates and generates income.

Page 13


AREA ESTATES LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30 APRIL 2021

TURNOVER

All turnover arose within the United Kingdom.

Turnover Cost of sales Gross profit/ (loss)

		2021	2020	2021	2020	2021	2020
		£	£	£	£	£	£


Sales of trading stock	1,627,217	5,945,025	(5,571,181)	(8,603,446)	(3,943,964)	(2,658,421)
Rental income	11,073,952	10,245,753	(1,109,153)	(1,053,957)	9,964,799	9,191,796
Total	12,701,169	16,190,778	(6,680,334)	(9,657,403)	6,020,835	6,533,375

Cost of sales of rental income comprises property outgoings.

4.	OTHER OPERATING EXPENSE
		2021	2020
		£	£

Share of losses	(162,080)	-
	(162,080)	-

	Fees payable to the Company's auditor and its associates for the audit of the Company's annual accounts	11,520	9,504
		11,520	9,504

During the year, no director received any emoluments (2020 - £NIL).
The directors are considered to be the key management personnel.

Page 14


AREA ESTATES LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30 APRIL 2021

EMPLOYEES

The average monthly number of employees, including the directors, during the year was as follows:

	2021	2020
	No.	No.

Directors	3	3

7.	INTEREST RECEIVABLE AND SIMILAR INCOME
		2021	2020
		£	£

Interest receivable from group companies	76,261	68,907
Other interest receivable	65	277
	76,326	69,184

8.	INTEREST PAYABLE AND SIMILAR CHARGES
		2021	2020
		£	£

Loans from group undertakings	8,013,339	7,725,458
Other interest payable	69	-
	8,013,408	7,725,458

Page 15


AREA ESTATES LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30 APRIL 2021



TOTAL CURRENT TAX	-	-

Loss on ordinary activities before tax

(3,978,133)

(2,116,672)

Loss on ordinary activities multiplied by standard rate of corporation tax in the UK of 19% (2020 - 19%)	(755,845)	(402,168)
EFFECTS OF:
Unrelieved tax losses carried forward	755,845	-
Group relief	-	402,168
TOTAL TAX CHARGE FOR THE YEAR	-	-

FACTORS THAT MAY AFFECT FUTURE TAX CHARGES

There were no factors that may affect future tax charges.

10.	FIXED ASSET INVESTMENTS

		Investment in joint ventures
		£
	COST OR VALUATION
	At 1 May 2020	500
	At 30 April 2021	500

	NET BOOK VALUE
	At 30 April 2021	500
	At 30 April 2020	500

Page 16


AREA ESTATES LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30 APRIL 2021

11.	STOCKS
		2021	2020
		£	£

Freehold and leasehold property	165,451,803	148,561,079
	165,451,803	148,561,079

12.

DEBTORS

					2021	2020
					£	£


Amounts owed by group undertakings	-	729,989
Other debtors	2,607,222	2,344,353
Prepayments and accrued income	18,679	6,100
	2,625,901	3,080,442

Amounts owed to group undertakings	172,603,977	153,538,670
Other taxation and social security	-	69,400
Other creditors	3,189,248	1,727,815
Accruals and deferred income	2,404,124	2,313,713
	178,197,349	157,649,598

14.	SHARE CAPITAL
		2021	2020
		£	£

ALLOTTED, CALLED UP AND FULLY PAID

999 Ordinary shares of £1.00 each	999	999

Page 17


AREA ESTATES LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30 APRIL 2021

15.

RESERVES

Profit & loss account

The profit and loss account includes all current and prior year retained profit and losses.

	Contracted for but not provided in these financial statements	308,144	540,000
		308,144	540,000

17.

RELATED PARTY TRANSACTIONS

The Company has taken advantage of the exemptions from disclosure available to subsidiary undertakings under section 33 of FRS102 in connection with intra group transactions.
The Company received estate agents services from a partnership in which the directors Mark Pears CBE Sir Trevor Pears CMG and David Pears have an interest, the cost of which amounted to £227,760 (2020 - £188,880).
At the year end a balance was owing to this partnership of £227,760 (2020 - £188,880).
During the year the Company received management services from CHP Management Limited, a company in which the directors Mark Pears CBE, Sir Trevor Pears CMG and David Pears have an interest, the cost of which amounted to £138,000 (2020 - £124,800).
At the year end a balance of £138,000 (2020 - £124,800) was owed to that company.

18.	CONTROLLING PARTY

The Company is a wholly owned subsidiary of The William Pears Group of Companies Limited. The company's ultimate holding company is William Pears Group Limited, a company incorporated in England. The registered office is Ground Floor, 30 City Road, London, EC1Y 2AB.

19.	BANKING ARRANGEMENTS

The Company, in common with certain family connected companies, participates in a group banking arrangement in respect of overdraft and loan facilities. Companies participating in this arrangement have a joint and several liability to the bank for the total group indebtedness. The total amount outstanding at 30 April 2021 was £Nil (2020 - £Nil). The directors do not consider that the bank will ever need recourse to this Company, each family connected company having ample resources to meet its own liabilities.

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