AVANTON_RICHMOND_DEVELOPM - Accounts

The directors of the company have elected not to include a copy of the profit and loss account within the financial statements.true

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

Avanton Richmond Developments Limited is a private company limited by shares incorporated in England and Wales. The registered office is , Ground Floor Office South, 51 Welbeck St, London, United Kingdom, W1G 9HL.

These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006 as applicable to companies subject to the small companies regime. The disclosure requirements of section 1A of FRS 102 have been applied other than where additional disclosure is required to show a true and fair view.

The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.

The financial statements have been prepared under the historical cost convention and certain financial instruments at fair value. The principal accounting policies adopted are set out below.

At the year end the company had a deficit of £18,169,647 (2021: £11,383,848) on the balance sheet. The company has entered into an agreement to sell the development in its entirety with a long stop date to 21 December 2025 in order for certain conditions of sale to be met in full. The company have financed the investment in the development through a number of loans totalling £70,184,463 (2021: £62,691,349) (inclusive of accrued interest). The directors are focused on ensuring these conditions are met before the long stop date and are therefore confident that the sale of the development will be completed. true

Until such time, the company has financial support from the majority shareholder. The majority shareholder has confirmed they will not seek repayment of loans owed by the company and will provide the necessary financial support for a period of at least 12 months from the date of approval of these financial statements, so as not to impact the company's ability to meet its liabilities as they fall due.

Accordingly at the time of approving these financial statements, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition. This also includes finance costs and interest capitalised.

At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.

The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.

Financial instruments are recognised in the company's balance sheet when the company becomes party to the contractual provisions of the instrument.

Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally 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.

Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.

Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.

Basic financial liabilities, including creditors and loans from shareholders, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

Equity instruments issued by the company are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.

Rental income recognised within other operating income from operating leases is recognised on a straight line basis over the term of the relevant lease. Initial direct costs incurred in negotiating and arranging an operating lease are added to the carrying amount of the leased asset and recognised on a straight line basis over the lease term.

In the application of the company’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

The following judgements (apart from those involving estimates) have had the most significant effect on amounts recognised in the financial statements.

As at the year end stock comprises costs associated with purchasing and bringing the development to its current state. Post year end the company has entered into an agreement to sell the development in its entirety at a price in excess of its current cost, however this is subject to full planning permission being granted. Planning permission remains under consideration and is being reviewed in early 2022. Although there is no guarantee that permission will be granted, the Directors are confident that such permission will be obtained. On this basis the directors believe the current value of stock in these financial statements is materially accurate.

There were no persons (including directors) employed by the company during the current or previous year.

Included within interest payable are amounts payable to the company's main shareholder totalling £6,968,586 (2021: £5,937,257).

Included within amounts due to related parties are loans totalling £34,215,340 (2021: £31,849,586) which bear interest at a rate of 7.5% per annum. These amounts are due to the ultimate controlling parent company. These amounts are considered repayable on demand and are secured by both fixed and floating charges over the assets of the company.

Also included in amounts owed to related parties are two other loans totalling £35,969,123 (2021: £30,841,763). Both loans began to bear interest after a period of twelve months of the loan being drawn down, at a rate of 13.50% per annum. These amounts are due to a shareholder and the immediate parent company. The amounts are also considered to be repayable on demand.

As the income statement has been omitted from the filing copy of the financial statements, the following information in relation to the audit report on the statutory financial statements is provided in accordance with s444(5B) of the Companies Act 2006:

The auditor's report was unqualified.

The controlling party and ultimate parent company is Intermediate Capital Group Plc, a company incorporated in the United Kingdom and registered in England and Wales. This is also the parent undertaking of the smallest and largest group which includes the Company and for which consolidated financial statements are prepared. Copies of the financial statements of Intermediate Capital Group Plc are obtainable from Procession House, 55 Ludgate Hill, London EC4M 7JW and from the Group website at www.icgam.com.