Sigma PRS Investment (Beam Park V&W) Ltd - Limited company accounts 23.1

REGISTERED NUMBER: 12206506 (England and Wales)

Report of the Directors and

Unaudited Financial Statements for the Year Ended 31 December 2022

for

Sigma PRS Investments

(Beam Park V&W) Limited

Page

Company information

1

Report of the directors

2

Statement of comprehensive income

4

Balance sheet

5

Statement of changes in equity

7

Notes to the financial statements

8

DIRECTORS:

P A Shacalis

J N Patel

M S McGill

SECRETARY:

Sigma Capital Property Ltd

REGISTERED OFFICE:

Floor 3, 1 St. Ann Street

Manchester

M2 7LR

REGISTERED NUMBER:

12206506 (England and Wales)

The directors present their report with the financial statements of the company for the year ended 31 December 2022.

PRINCIPAL ACTIVITY

The principal activity of the Company is the investment in property for the private rental sector. The company owns and manages 80 residential homes which are let to tenants on shorthold assured tenancies.

DIRECTORS

P A Shacalis has held office during the whole of the period from 1 January 2022 to the date of this report.

Other changes in directors holding office are as follows:

J N Patel and M S McGill were appointed as directors after 31 December 2022 but prior to the date of this report.

M D Briselden and Ms N Raghavan ceased to be directors after 31 December 2022 but prior to the date of this report.

RESULTS AND DIVIDENDS

The profit for the period is £2,399,488 (2021: £583,261). The directors do not recommend the payment of a dividend for the period ended 31 December 2022.

STATEMENT OF DIRECTORS' RESPONSIBILITIES

The directors are responsible for preparing the Report of the directors 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 United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). 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 and then apply them consistently;

-	make judgements and accounting estimates that are reasonable and prudent;

-	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 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.

This report has been prepared in accordance with the provisions of Part 15 of the Companies Act 2006 relating to small companies.

ON BEHALF OF THE BOARD:

M S McGill - Director

28 September 2023

TURNOVER

1,159,946

335,950

Cost of sales

139,570

86,376

GROSS PROFIT

1,020,376

249,574

Administrative expenses

374,454

36,969

OPERATING PROFIT

645,922

212,605

Interest receivable and similar income

305

-

646,227

212,605

Gain/loss on revaluation of investment property

3,000,000

843,623

3,646,227

1,056,228

Interest payable and similar expenses

3

494,984

137,143

PROFIT BEFORE TAXATION

4

3,151,243

919,085

Tax on profit

5

750,000

335,824

PROFIT FOR THE FINANCIAL YEAR

2,401,243

583,261

OTHER COMPREHENSIVE INCOME

-

-

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

2,401,243

583,261

FIXED ASSETS

Tangible assets

6

146,555

189,918

Investment property

7

26,400,000

23,400,000

26,546,555

23,589,918

CURRENT ASSETS

Debtors

8

384,882

153,435

Cash at bank

157,217

181,202

542,099

334,637

CREDITORS

Amounts falling due within one year

9

7,465,092

7,605,222

NET CURRENT LIABILITIES

(6,922,993

)

(7,270,585

)

TOTAL ASSETS LESS CURRENT LIABILITIES

19,623,562

16,319,333

CREDITORS

Amounts falling due after more than one year

10

(13,568,861

)

(13,415,875

)

PROVISIONS FOR LIABILITIES

12

(1,458,356

)

(708,356

)

NET ASSETS

4,596,345

2,195,102

CAPITAL AND RESERVES

Called up share capital

13

100

100

Retained earnings

14

4,596,245

2,195,002

SHAREHOLDERS' FUNDS

4,596,345

2,195,102

The company is entitled to exemption from audit under Section 477 of the Companies Act 2006 for the year ended 31 December 2022.

The members have not required the company to obtain an audit of its financial statements for the year ended 31 December 2022 in accordance with Section 476 of the Companies Act 2006.

The directors acknowledge their responsibilities for:

(a)	ensuring that the company keeps accounting records which comply with Sections 386 and 387 of the Companies Act 2006 and

(b)

preparing financial statements which give a true and fair view of the state of affairs of the company as at the end of each financial year and of its profit or loss for each financial year in accordance with the requirements of Sections 394 and 395 and which otherwise comply with the requirements of the Companies Act 2006 relating to financial statements, so far as applicable to the company.

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

The financial statements were approved by the Board of Directors and authorised for issue on 28 September 2023 and were signed on its behalf by:

M S McGill - Director

Called up

share

Retained

Total

capital

earnings

equity

£

£

£

Balance at 1 October 2020

-

1,611,741

1,611,741

Changes in equity

Issue of share capital

100

-

100

Total comprehensive income

-

583,261

583,261

Balance at 31 December 2021

100

2,195,002

2,195,102

Changes in equity

Total comprehensive income

-

2,401,243

2,401,243

Balance at 31 December 2022

100

4,596,245

4,596,345

1.	STATUTORY INFORMATION

Sigma PRS Investments (Beam Park V&W) Limited is a private company, limited by shares , registered in England and Wales. The company's registered number and registered office address can be found on the Company Information page.

2.	ACCOUNTING POLICIES

Basis of preparation

These financial statements have been prepared in accordance with Financial Reporting Standard 101 "Reduced Disclosure Framework" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention as modified by the revaluation of certain assets.

The company has taken advantage of the following disclosure exemptions in preparing these financial statements, as permitted by FRS 101 "Reduced Disclosure Framework":

•

the requirements of IFRS 7 Financial Instruments: Disclosures;

•

the requirements of IAS 7 Statement of Cash Flows;

•

the requirements of paragraphs 17 and 18A of IAS 24 Related Party Disclosures;

•

the requirements in IAS 24 Related Party Disclosures to disclose related party transactions entered into between two or more members of a group.

Critical accounting judgements and key estimation uncertainties

Estimates and judgements are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.

Actual results may differ from these estimates and judgements.

Critical Accounting estimates and assumptions:

(i) Fair value of investment property

The matters taken into account when assessing the fair value of investment property are detailed in the accounting policy on investment property.

Turnover

Rental income from investment property is accounted for under an accruals basis.

Tangible fixed assets

Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life.

Fixtures and fittings

-

33% on cost

Investment property

Investment property, including that which is being constructed for future use as investment property, is measured initially at its cost including related transaction costs. After initial recognition, investment property is carried at fair value. The investment properties are valued by CBRE who are qualified valuation experts and hold a recognised and relevant professional qualification. The valuation basis of market value conforms to international valuation standards. The valuation is based on market evidence of investment yields, expected gross to net income rates and actual and expected rental values. Gains or losses arising from arising from changes in the fair value of the investment property are included in profit from operations in the income statement of the period in which they arise.

Taxation

Tax on the profit or loss for the period comprises current tax and deferred tax. Current tax is the expected tax payable or receivable on the taxable income or loss for the period, using tax rates enacted or substantively enacted at the balance sheet date, and any adjustments to tax payable in respect of previous years.

Deferred tax is recognised in respect of all material timing differences that have originated but not reversed at the balance sheet date where transactions or events have occurred at the date that will result in an obligation to pay more, or a right to pay less or to receive more tax with the following exceptions:

1) The recognition of deferred tax assets is limited to the extent that the Company anticipates making sufficient taxable profits in the future to absorb the reversal of the underlying timing differences.

2) Deferred tax is measured on an undiscounted basis at the tax rates that are expected to apply in the periods in which timing differences reverse, based on tax rates and laws enacted or substantively enacted at the balance sheet date.

Deferred tax is provided on temporary differences between the carrying amounts of assets and liabilities for reporting purposes and the amounts used for taxation purposes. The amount of deferred tax provided is based on the expected manner of realisation or settlement of the carrying amount of assets and liabilities, using tax rates enacted or substantively enacted at the balance sheet date.

A deferred tax asset is recognised only to the extent that it is probable that future taxable profits will be available against which the temporary differences can be utilised.

Impairment

When there is an indication of impairment, the company reviews the carrying value of its assets to determine whether those assets have suffered an impairment loss. The recoverable amount of the asset is estimated in order to determine the extent of the impairment loss. Where it is not possible to determine the recoverable amount of an individual asset the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.

If the recoverable amount of an asset is estimated to be less than its carrying amount, the carrying amount of the asset is reduced to its recoverable amount. Impairment losses are recognised as an expense immediately.

Where an impairment subsequently reverses, the carrying amount of the asset (cash-generating unit) is increased to the revised estimate of its recoverable amount but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (cash-generating unit) in prior years.

Going concern

The directors have reviewed the trading prospects and projected cash flows of the business and on that basis the directors have a reasonable expectation that there are adequate resources to continue in operational existence for the foreseeable future. Thus they continue to adopt the going concern basis of accounting in preparing the annual financial statements.

3.

INTEREST PAYABLE AND SIMILAR EXPENSES

Period

1.10.20

Year Ended

to

31.12.22

31.12.21

£

£

Bank loan interest

434,533

137,143

Arrangement fees

60,451

-

494,984

137,143

4.	PROFIT BEFORE TAXATION

The only cost applicable to this note is depreciation which was £79,066 (2021: £nil).

5.

TAXATION

Analysis of tax expense

Period

1.10.20

Year Ended

to

31.12.22

31.12.21

£

£

Current tax:

Tax

-

5,530

Deferred tax

750,000

330,294

Total tax expense in statement of comprehensive income

750,000

335,824

6.	TANGIBLE FIXED ASSETS

Fixtures

and

fittings

£

COST

At 1 January 2022

205,766

Additions

35,703

At 31 December 2022

241,469

DEPRECIATION

At 1 January 2022

15,848

Charge for year

79,066

At 31 December 2022

94,914

NET BOOK VALUE

At 31 December 2022

146,555

At 31 December 2021

189,918

7.	INVESTMENT PROPERTY

Total

£

FAIR VALUE

At 1 January 2022

23,400,000

Revaluations

3,000,000

At 31 December 2022

26,400,000

NET BOOK VALUE

At 31 December 2022

26,400,000

At 31 December 2021

23,400,000

Fair value at 31 December 2022 is represented by:

£

Valuation in 2020

17,868,766

Valuation in 2021

5,531,234

Valuation in 2022

3,000,000

26,400,000

8.

DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2022

2021

£

£

Trade debtors

30,448

74,760

Other debtors

354,434

78,675

384,882

153,435

9.

CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2022

2021

£

£

Trade creditors

115,890

27,767

Amounts owed to group undertakings

7,129,116

7,220,400

Tax

5,530

5,530

Other creditors

40,193

242,283

Accrued expenses

174,363

109,242

7,465,092

7,605,222

10.

CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR

2022

2021

£

£

Bank loans (see note 11)

13,570,616

13,415,875

Other creditors

(1,755

)

-

13,568,861

13,415,875

11.

FINANCIAL LIABILITIES - BORROWINGS

In the current year there was a bank loan of £13,570,616 (2021: £13,415,875).

The bank loan is utilised to fund the Company’s investment in private rented sector property. The total facility is £13.6 million and interest is charged at commercial rates. The loan facility is secured on the company’s investment property.

12.	PROVISIONS FOR LIABILITIES

2022

2021

£

£

Deferred tax

1,458,356

708,356

Deferred

tax

£

Balance at 1 January 2022

708,356

Provided during year

750,000

Balance at 31 December 2022

1,458,356

The deferred tax liability relates to unrealised property revaluations.

13.	CALLED UP SHARE CAPITAL

Allotted and issued:

Number:

Class:

Nominal

2022

2021

value:

£

£

100

Ordinary Shares

£1

100

100

14.

RESERVES

Retained

earnings

£

At 1 January 2022

2,195,002

Profit for the year

2,401,243

At 31 December 2022

4,596,245

15.	ULTIMATE PARENT COMPANY

On the 17 September 2021, the entire share capital of the Company was acquired by London BTR Investments (NW) Holdings 2 Limited. On the 4 February 2022, the entire share capital of the Company was acquired by London BTR Investments (NW II) Holdings 2 Limited. The ultimate parent company and the ultimate controlling party of London BTR Investments (NW) Holdings 2 Limited and London BTR Investments (NW II) Holdings 2 Limited is London BTR Investments Limited, a company incorporated in England.