Esteban Investments Limited - Period Ending 2022-05-31

Esteban Investments Limited

Contents

Company Information	1
Balance Sheet	2
Notes to the Financial Statements	3 to 7

Esteban Investments Limited

Company Information

Directors

M W Griffiths J S Lansdown

Company secretary

G T Marshall

Registered office

Ashton Gate Stadium Ashton Road Bristol BS3 2EJ

Auditors

PKF Francis Clark Statutory Auditor Ground Floor Blackbrook Gate 1 Blackbrook Business Park Taunton Somerset TA1 2PX

Esteban Investments Limited

Balance Sheet

31 May 2022

	Note	2022 £	2021 £
Fixed assets
Investment property	6	15,309,015	15,009,860
Current assets
Stocks	7	11,269,315	11,082,555
Debtors	8	88,655	42,191
Cash at bank and in hand		317,138	44,806
		11,675,108	11,169,552
Creditors: Amounts falling due within one year	9	(22,407,033)	(22,626,956)
Net current liabilities		(10,731,925)	(11,457,404)
Total assets less current liabilities		4,577,090	3,552,456
Deferred income	11	(46,320)	(65,785)
Net assets		4,530,770	3,486,671
Capital and reserves
Called up share capital		100	100
Profit and loss account		4,530,670	3,486,571
Shareholders' funds		4,530,770	3,486,671

These financial statements have been prepared and delivered in accordance with the special provisions relating to companies subject to the small companies regime within Part 15 of the Companies Act 2006 and the option not to file the Profit and Loss Account has been taken.

Approved and authorised by the Board on 24 March 2023 and signed on its behalf by:
 

......................................... M W Griffiths Director

Company Registration Number: 08721972

Esteban Investments Limited

Notes to the Financial Statements

Year Ended 31 May 2022

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:
Ashton Gate Stadium
Ashton Road
Bristol
BS3 2EJ

These financial statements were authorised for issue by the Board on 24 March 2023.

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 - 'The Financial Reporting Standard applicable in the UK and Republic of Ireland', including Section 1A, and the Companies Act 2006. There are no material departures from FRS 102.

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

Notwithstanding the net current liabilities of £10,731,925 (2021 - £11,457,404) at the year end, the directors are satisfied that the going concern basis of preparation remains appropriate. Included within creditors due within one year is £21,429,271 (2021 - £21,429,271) due to the immediate parent company. The directors have obtained confirmation from the parent company that it is their intention not to call in this loan in the short term. Having considered all necessary factors and made all necessary enquiries (including in respect of the immediate parent company) the directors are satisfied that the company will continue to meet its liabilities as they fall due and will continue to trade for the foreseeable future, being no less than twelve months from the date of approval of these financial statements.

In forming their opinion as to the going concern status the directors have also considered the uncertain economic environment and inflationary pressures, especially in the UK construction sector. The directors are satisfied that, whilst there can be no certainty as to the specific implications for each property or project, there are no material uncertainties in respect of the going concern status of the company.

Esteban Investments Limited

Notes to the Financial Statements

Year Ended 31 May 2022

Key accounting judgements and sources of estimation uncertainty

In the application of the company's accounting policies management is required to make judgements, estimates and assumptions about the carrying values of assets and liabilities that are not readily apparent from other sources. The estimates and underlying 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 account estimates are recognised in the period in which the estimate is revised if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods.

The key judgement which has a significant effect on the financial statements is in respect of going concern, as described in the accounting policy above.

The key estimates that have a significant effect on the amounts recognised in the financial statements are:

Investment properties - as described within the accounting policies, investment properties are held at the balance sheet date at their current market value. The directors have made estimates surrounding the current and expected future rental yields and have considered both the condition of the properties and independent surveyor reports prepared for alternative purposes, in order to assess the current market value. In the opinion of the directors the market value as at 31 May 2022 remains equivalent to the historic cost of these assets. The carrying amount is £15,309,015 (2021 - £15,009,860).

Stock of development land for resale - as described within the accounting policies, stock of development land for resale is carried at the lower of cost and net realisable value, which required estimation as to the recoverable value of the asset. The directors use their knowledge of the market and the position of the land in order to assess the recoverable value. The carrying amount is £11,269,315 (2021 - £11,082,555).

Revenue recognition

Turnover comprises the fair value of the rent and other income receivable in the ordinary course of the company’s activities. Turnover is shown net of value added tax, returns, rebates and discounts. Rents received in advance are deferred against the period to which they relate.

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.

Esteban Investments Limited

Notes to the Financial Statements

Year Ended 31 May 2022

Depreciation

Depreciation is provided on tangible fixed assets to write off the cost or valuation, less any estimated residual value, over their expected useful economic life as follows:

Asset class	Depreciation method and rate
Investment properties	Not depreciated
Plant and machinery	50% straight line

Investment property

Investment properties are carried at fair value, which is derived from the current market prices for comparable real estate and is assessed annually. The value is based on observable market prices, adjusted if necessary for any difference in the nature, location or condition of the specific asset. Changes in fair value are recognised in the profit and loss account.

No depreciation is provided in respect of investment properties. This treatment as regards the company's investment properties may be a departure from the requirements of the Companies Act concerning the depreciation of fixed assets. However, these properties are not held for consumption but for investment and the directors consider that systematic annual depreciation would be inappropriate. The accounting policy adopted is therefore necessary for the financial statements to give a true and fair view. Depreciation or amortisation is only one of many factors reflected in the annual valuation and the amount which might otherwise have been shown cannot be separately identified or quantified.

Stock

Stock of development land for resale is stated at the lower of cost and net realisable value, being estimated selling price less costs to complete and sell. At each reporting date, stock is assessed for impairment. Any impairment loss is recognised immediately in profit or loss.

Financial instruments

Classification
The company holds the following financial instruments:

• Short term trade and other debtors and creditors;
• Short term other borrowings; and
• Cash and bank balances.

All financial instruments are classified as basic.

 Recognition and measurement
The company has chosen to apply the recognition and measurement principles in FRS 102.

Financial instruments are recognised when the company becomes party to the contractual provisions of the instrument and derecognised when in the case of assets, the contractual rights to cash flows from the assets expire or substantially all the risks and rewards of ownership are transferred to another party, or in the case of liabilities, when the company’s obligations are discharged, expire or are cancelled.

Such instruments are initially measured at transaction price, including transaction costs, and are subsequently carried at the undiscounted amount of the cash or other consideration expected to be paid or received, after taking account of impairment adjustments.

 

Esteban Investments Limited

Notes to the Financial Statements

Year Ended 31 May 2022

3	Staff numbers

The average number of persons employed by the company (including directors) during the year, was 0 (2021 - 0).

4	Exceptional other operating income

Exceptional other operating of £904,000 (2021 - £nil) relates to compensation received in respect of a compulsory purchase order.

5	Tangible assets

	Plant and machinery £	Total £
Cost or valuation
At 1 June 2021	2	2
At 31 May 2022	2	2
Depreciation
At 1 June 2021	2	2
At 31 May 2022	2	2
Carrying amount
At 31 May 2022	-	-

6	Investment properties

	2022 £
At 1 June 2021	15,009,860
Additions	299,155
At 31 May 2022	15,309,015

At 31 May 2022 the directors deemed that the carrying value of the properties was equivalent to open market value and therefore no revaluation is necessary. Carrying value is historic cost at the date of acquisition.

7

Stock

	2022 £	2021 £
Stock of development land for sale	11,269,315	11,082,555

Esteban Investments Limited

Notes to the Financial Statements

Year Ended 31 May 2022

8

Debtors

	2022 £	2021 £
Trade debtors	79,628	22,140
Amounts due from group undertakings	-	66
Other debtors	8,754	19,594
Prepayments	273	391
	88,655	42,191

9

Creditors

	Note	2022  £	2021  £
Due within one year
Loans and borrowings	10	21,429,271	21,879,271
Trade creditors		56,545	204,140
Amounts due to group undertakings		910,918	540,044
Accrued expenses		10,299	3,501
		22,407,033	22,626,956

10	Loans and borrowings

	2022 £	2021 £
Current loans and borrowings
Other borrowings	21,429,271	21,879,271

11	Deferred income

	2022   £
At 1 June 2021	65,785
Released during the year	(65,785)
Received during the year	46,320
At 31 May 2022	46,320

12	Audit report

The Independent Auditors' Report was unqualified. The name of the Senior Statutory Auditor who signed the audit report was Nicholas Farrant BA MSc FCA, who signed for and on behalf of PKF Francis Clark on 29 March 2023.