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Company Registration Number 11582575
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HRE (POTTERY LANE) LIMITED
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UNAUDITED
FINANCIAL STATEMENTS
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HRE (POTTERY LANE) LIMITED
REGISTERED NUMBER: 11582575
BALANCE SHEET
AS AT 31 DECEMBER 2020
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Debtors: amounts falling due within one year
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Creditors: amounts falling due within one year
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Total assets less current liabilities
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Creditors: amounts falling due after more than one year
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The financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies regime and in accordance with the provisions of FRS 102 Section 1A - small entities.
The financial statements have been delivered in accordance with the provisions applicable to companies subject to the small companies regime.
The Company has opted not to file the statement of comprehensive income in accordance with provisions applicable to companies subject to the small companies' regime.
The financial statements were approved and authorised for issue by the board and were signed on its behalf by:
The notes on pages 2 to 6 form part of these financial statements.
Page 1
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HRE (POTTERY LANE) LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2020
HRE (Pottery Lane) Limited is a private company limited by shares, incorporated in England and Wales. The registered office is Rotterdam House, 116 Quayside, Newcastle upon Tyne, NE1 3DY.
2.Accounting policies
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Basis of preparation of financial statements
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The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Section 1A of Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and the Companies Act 2006.
The following principal accounting policies have been applied:
At the balance sheet date the company has net liabilities of £27,121 following a loss for the year of £23,796. Post year end the development hasn’t progressed due to ownership changes and discussions with funders. The loan was due for repayment following completion of the residential units, however in the post year end period the loan is in breach of covenants and is due for repayment. The funders have temporarily extended their agreement until end of July 2023 while alternative financing is sought. The company has a new funding offer which will enable the previous loan to be repaid and for the development to proceed. Whilst the offer has been made completion still needs to take place, and with the original loan is falling due within 12 months, without the alternative funding progressing to completion the company would not be able to continue as a going concern.
The director is confident that this funding offer will progress to completion and the site will be developed. Should this current offer not proceed the director is confident that alternative funding would be sought or a further extention would be granted. The property itself could also be sold in its current form, if required, to settle liabilities. However, there is a material uncertainity linked to these scenarios.
In August 2021, the company was sold to a new parent company and at that time there was a debt forgiveness for all group liabilities owed.
The directors have confirmed the going concern basis is appropriate, a new offer is in place to refinance borrowings falling due and to enable the development to proceed.
Inventories are stated at the lower of cost and estimated selling price less cost to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and overheads that have been incurred in bringing the inventories to their present location and condition.
Inventories held for distribution at no or nominal consideration are measured at the lower of replacement cost and cost, adjusted where applicable for any loss of service potential.
Net realisable value is the estimated selling price less all estimated costs of completion and costs to be incurred in marketing, selling and distribution.
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.
Page 2
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HRE (POTTERY LANE) LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2020
2.Accounting policies (continued)
Short-term creditors are measured at the transaction price. Other financial liabilities, including bank loans, are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method.
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The Company has no employees other than the directors, who did not receive any remuneration (2019 - £NIL).
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The average monthly number of employees, excluding directors, during the year was 0 (2019 - 0).
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Prepayments and accrued income
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Page 3
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HRE (POTTERY LANE) LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2020
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Creditors: Amounts falling due within one year
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Amounts owed to group undertakings
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Accruals and deferred income
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Amounts owed to group undertakings have no repayment date and are repayable on demand bearing no interest.
Bank loans are not secured. Interest on this loan is payable monthly at a rate of 2.5%. The loan is repayable over 6 years with repayment commencing 12 months after drawdown.
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Creditors: Amounts falling due after more than one year
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The loan is secured against the development and accrues interest daily at a rate of 7%.
Bank loans are not secured. Interest on this loan is payable monthly at a rate of 2.5%. The loan is repayable over 6 years with repayment commencing 12 months after drawdown.
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Page 4
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HRE (POTTERY LANE) LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2020
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Analysis of the maturity of loans is given below:
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Amounts falling due within one year
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Amounts falling due 1-2 years
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Amounts falling due 2-5 years
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Amounts falling due after more than 5 years
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Allotted, called up and fully paid
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1 (2019 - 1) Ordinary Shares share of £1.00
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Related party transactions
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The company has taken advantage of the exemption as provided in paragraph 33.1A of FRS 102, from disclosing transactions with group companies as it is a wholly owned subsidiary and its results are included in the consolidated financial statements of another group Company which are available on request from High Street GRP Limited. There were no other related party transactions.
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Page 5
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HRE (POTTERY LANE) LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2020
The Company's immediate parent is All Saints Living Limited.
The Company's ultimate parent is High Street GRP Limited. High Street GRP Limited is incorporated in the UK.
Following a sale agreement in August 2021 the immediate parent has remained the same, however the ultimate parent is now Hadrian Real Estate plc.
The auditors' report on the financial statements for the year ended 31 December 2020 was qualified.
The qualification in the audit report was as follows:
Basis for qualified opinion
We were not appointed as auditor of the company until after 31 December 2020 and our appointment was made by the new shareholders following their purchase of the company in August 2021. With regards many of the transactions that arose in the period prior to the transfer of ownership, the new Directors are unable to support beyond the nominal ledger provided. As such, we have not been able to obtain confirmation from source documents in our testing. We were unable to satisfy ourselves by alternative means concerning the administrative expenses at the year end included in the statement of comprehensive income totalling £23,796, by using other procedures.
Additionally, we were unable to satisfy ourselves by alternative means concerning amounts owed to group undertakings of £672,636. Which we were unable to confirm by direct confirmation. These are reflected within the balance sheet under current liabilities.
Consequently we were unable to determine whether any adjustment to this balance was necessary.
Material uncertainty related to going concern
We draw attention to note 2.2 in the financial statements, which indicates that the company's ability to continue as a going concern is dependent on extensions from the existing funder while the new funding offer which in place progresses through legal completion.
As stated in note 2.2, these events or conditions, indicate that a material uncertainty exists that may cast significant doubt on the Company's ability to continue as a going concern. Our opinion is not modified in respect of this matter.
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. Our evaluation of the directors' assessment of the Company's ability to continue to adopt the going concern basis of accounting included the new funding offer which will enable the previous loan to be repaid and for the development to proceed.
The audit report was signed on 4 March 2023 by Joanna Gray (Senior Statutory Auditor) on behalf of Armstrong Watson Audit Limited.
Page 6
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