Alpha Stanway Finance Limited - Period Ending 2020-12-31

Alpha Stanway Finance Limited

(Registration number: 08121078)
Balance Sheet as at 31 December 2020

	Note	2020  £	2019  £
Fixed assets
Investments	4	4	4
Current assets
Debtors	5	27,353,040	27,207,482
Cash at bank and in hand		1,067,001	506,291
		28,420,041	27,713,773
Creditors: Amounts falling due within one year	6	(26,172,303)	(25,466,035)
Net current assets		2,247,738	2,247,738
Net assets		2,247,742	2,247,742
Capital and reserves
Called up share capital		2,112,005	2,112,005
Profit and loss account		135,737	135,737
Total equity		2,247,742	2,247,742

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.

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 December 2021 and signed on its behalf by:
 

 

M Knight-Adams
Director

Alpha Stanway Finance Limited

Notes to the Unaudited 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:
The Stables
Ballards Drive
Malvern
Worcestershire
WR13 6PP

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 for, where disclosed in these accounting policies, certain items that are shown at fair value.

The presentational currency of the financial statements is Pounds Sterling, being the functional currency of the primary economic environment in which the company operates. Monetary amounts in these financial statements are rounded to the nearest Pound.

Going concern

After reviewing the company's current forecasts and projections, together with the facilities available to the company, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. The company therefore continues to adopt the going concern basis in preparing its financial statements. This statement is made subject to all of the potential implications of the current COVID-19 outbreak on the company’s trade, employees, customers, suppliers and the wider economy, as these are difficult to evaluate.

Tax

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

The current 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.

Investments

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.

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.

Alpha Stanway Finance Limited

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

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 all are repayable within one year and hence are included at the undiscounted amount of cash expected to be paid.

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.

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.

Financial instruments

Classification
Financial instruments are classified and accounted for according to the substance of the contractual arrangement, as financial assets, financial liabilities or equity instruments. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities. Where shares are issued, any component that creates a financial liability of the company is presented as a liability on the balance sheet. The corresponding dividends relating to the liability component are charged as interest expenses in the profit and loss account.

 Recognition and measurement
All financial assets and liabilities are initially measured at transaction price (including transaction costs), except for those financial assets classified as at fair value through profit or loss, which are initially measured at fair value (which is normally the transaction price excluding transaction costs), unless the arrangement constitutes a financing transaction. If an arrangement constitutes a financing transaction, the financial asset or financial liability is measured at the present value of the future payments discounted at a market rate of interest for a similar debt instrument.

3

Staff numbers

The average number of persons employed by the company (including directors) during the year, was 2 (2019 - 2).

Alpha Stanway Finance Limited

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

4

Investments

	2020 £	2019 £
Investments in subsidiaries	4	4

Subsidiaries	£
Cost
At 1 January 2020	4
At 31 December 2020	4
Carrying amount
At 31 December 2020	4
At 31 December 2019	4

5

Debtors

	Note	2020  £	2019  £
Amounts owed by related parties	8	5,603,509	4,850,509
Other debtors		21,749,531	22,356,973
		27,353,040	27,207,482

6

Creditors

	Note	2020  £	2019  £
Due within one year
Loans and borrowings	7	16,543,012	16,543,000
Trade creditors		232	5,679
Social security and other taxes		1,063	1,469
Other creditors	8	3,842,028	3,851,694
Accrued expenses		3,250	7,051
Corporation tax liability		-	122,000
Dividends payable		5,782,718	4,935,142
		26,172,303	25,466,035

7

Loans and borrowings

	Note	2020 £	2019 £
Current loans and borrowings
Redeemable preference shares		16,543,000	16,543,000
Other borrowings	8	12	-
		16,543,012	16,543,000

Alpha Stanway Finance Limited

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

8

Related party transactions

Summary of transactions with other related parties

At 31 December 2020, the company owed £12 (2019: £nil) to a director. No interest was charged on this balance and there are no fixed repayment terms.

At 31 December 2020, the company owed £3,842,028 (2019: £3,825,897) to JMKA Investments 1LP, a partnership under common control. Interest of £31,131, was paid during the year, there are no fixed repayment terms.

The following companies are 100% subsidiaries of the company. At 31 December 2020, the company was owed the following amounts:

Alpha (Rugby) Limited - £1,507,000 (2019: £1,263,000)
Avenbury (Dudley) Limited - £3,402,521 (2019: £3,242,521)
Pembrokshire Living Limited - £693,988 (2019: £344,988)

No interest was charged on these balances and there are no fixed repayment terms.

The following entities are under common control. At 31 December 2020, the company was owed the following amounts:

Warwick Homes Limited - £1,061,529 (2019: £1,057,529)
Alpha (Stonecross) Limited - £250,578 (2019: £248,578)
St Martins Gate Lowesmoor Limited - £4,000 (2019: £3,500)
Baker Finance Limited - £2,600 (2019: £2,000)
Worcester Developments Limited - £nil (2019: £542,522)
Avenbury Ventures LLP - £61,000 (2019: £60,000)
Avenbury Stratford LLP - £3,500 (2019: £3,000)
Alpha Stanway Management Limited - £5,000 (2019: £nil)

No interest was charged on these balances and there are no fixed repayment terms.

Included in other debtors is £18,655,000 of fixed rate unsecured subordinated loan notes issued by JMKA Investments 1LP, a partnership under common control. The loan notes carry interest at 5.5% per annum.