Parc Eirin Development Company Limited - Accounts to registrar (filleted) - small 23.1.2
Parc Eirin Development Company Limited - Accounts to registrar (filleted) - small 23.1.2
| REGISTERED NUMBER: |
| Parc Eirin Development Company Limited |
| Audited Financial Statements for the Year Ended 31 March 2023 |
| Parc Eirin Development Company Limited (Registered number: 08741560) |
| Contents of the Financial Statements |
| for the Year Ended 31 March 2023 |
| Page |
| Company Information | 1 |
| Balance Sheet | 2 |
| Notes to the Financial Statements | 3 |
| Parc Eirin Development Company Limited |
| Company Information |
| for the Year Ended 31 March 2023 |
| Directors: |
| Registered office: |
| Registered number: |
| Auditors: |
| 7 Neptune Court |
| Vanguard Way |
| Cardiff |
| CF24 5PJ |
| Parc Eirin Development Company Limited (Registered number: 08741560) |
| Balance Sheet |
| 31 March 2023 |
| 2023 | 2022 |
| Notes | £ | £ |
| Current assets |
| Stocks |
| Debtors | 4 |
| Cash at bank |
| Creditors |
| Amounts falling due within one year | 5 | ( |
) | ( |
) |
| Net current assets |
| Total assets less current liabilities |
| Creditors |
| Amounts falling due after more than one year | 6 | ( |
) | ( |
) |
| Net liabilities | ( |
) | ( |
) |
| Capital and reserves |
| Called up share capital | 8 |
| Retained earnings | 9 | ( |
) | ( |
) |
| Shareholders' funds | ( |
) | ( |
) |
| In accordance with Section 444 of the Companies Act 2006, the Profit and Loss has not been delivered. |
| The financial statements were approved by the Board of Directors and authorised for issue on |
| Parc Eirin Development Company Limited (Registered number: 08741560) |
| Notes to the Financial Statements |
| for the Year Ended 31 March 2023 |
| 1. | Statutory information |
| Parc Eirin Development Company Limited is a |
| 2. | Accounting policies |
| Basis of preparing the financial statements |
| Related party exemption |
| The company has taken advantage of exemption, under the terms of Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland', not to disclose related party transactions with wholly owned subsidiaries within the group. |
| Work in progress |
| Work in progress is valued at the lower of cost and estimated selling prices less costs to complete and sell. Impairment in work in progress is considered at each year end and cost reduced if required. |
| Taxation |
| Taxation for the year comprises current and deferred tax. Tax is recognised in the Profit and Loss, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. |
| Current or deferred taxation assets and liabilities are not discounted. |
| Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date. |
| Deferred tax |
| Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date. |
| Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference. |
| Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. |
| Going concern |
| The Board is aware that due to the nature of the development project where a significantly large amount of cost is expended ahead of earning any revenue income, the company will report accounting losses until revenue income is generated. The long-term projections show that the scheme will generate a surplus when completed. The Board also receives cash flow projections and updates on funding agreements (short term and long term) as part of periodic financial reporting package. |
| In the unlikely event that the Board considers the scheme to be undeliverable, then the company has the option to sell the residual land to Pobl at an agreed price which will enable the repayment of the WG loan. |
| As with any such project, there is some level of material uncertainty, but the directors are confident that should the project fail to go ahead, the Company will be able to meet its liabilities as they fall due. |
| Based on the above, the Directors consider that the Company is financially viable and can meet its liabilities as they fall due and therefore these financial statements have been prepared on a going concern basis. |
| Parc Eirin Development Company Limited (Registered number: 08741560) |
| Notes to the Financial Statements - continued |
| for the Year Ended 31 March 2023 |
| 2. | Accounting policies - continued |
| Financial instruments |
| Financial instruments are recognised on the company's balance sheet when the company becomes party to the contractual provision of the instrument. |
| Financial assets and liabilities are offset and 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 |
| Basic financial assets, which include debtors and cash and bank balance, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective rate of interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised. |
| Impairment of financial assets |
| Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting date. |
| Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after initial recognition of the financial asset, the estimated future cashflows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cashflows discounted at the assets original interest rate. The impairment loss is recognised in the income statement. |
| If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been had the impairment not previously been recognised. The impairment reversal is recognised in the income statement. |
| Derecognition of financial assets |
| Financial assets are derecognised only when the contractual rights to the cashflows from the asset expire or are settled, or when the group transfers the financial assets and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party. |
| Classification of financial liabilities |
| Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity is any contract that evidences a residual interest in the assets of the group after deducting all of its liabilities. |
| Basic financial liabilities |
| Basic financial liabilities including trade and other creditors are initially recognised at transaction price unless the arrangement constitutes a financing arrangement, 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 are method. |
| Trade creditors are obligations to pay for goods are 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 rate of interest method. |
| Derecognition of financial liabilities |
| Financial liabilities are derecognised when the company's contractual obligations expire or are discharged or cancelled. |
| Parc Eirin Development Company Limited (Registered number: 08741560) |
| Notes to the Financial Statements - continued |
| for the Year Ended 31 March 2023 |
| 3. | Employees and directors |
| The average number of employees during the year was |
| 4. | Debtors: amounts falling due within one year |
| 2023 | 2022 |
| £ | £ |
| Amounts owed by group undertakings |
| VAT |
| 5. | Creditors: amounts falling due within one year |
| 2023 | 2022 |
| £ | £ |
| Trade creditors |
| Amounts owed to group undertakings |
| Accrued expenses |
| 6. | Creditors: amounts falling due after more than one year |
| 2023 | 2022 |
| £ | £ |
| Other loans - 1-2 years | 1,193,404 | - |
| Other loans - 2-5 years | - | 1,160,822 |
| 7. | Secured debts |
| The following secured debts are included within creditors: |
| 2023 | 2022 |
| £ | £ |
| Other loans | 1,193,404 | 1,160,822 |
| The loan is from the Welsh Government and is dated 3 July 2020, this loan supersedes both the revised loan agreement dated 30 March 2017 and the original loan agreement dated 30 March 2013. The interest is calculated on a compound basis with reference to the European Reference rates together with a 1% margin. The interest rate together with the 1% margin increased from 1.66% to 4.52% as at 31 March 2023 (2022: 1.66%). |
| The repayment of the loan is set by the company reaching key milestone events. |
| The loan of £1 million plus accrued interest is due for repayment based on the earlier of several different key events but no earlier than 30 April 2024 and therefore this has been classified as falling due for repayment within 1 to 2 years. |
| The loan is secured on the Parc Eirin site and the cash balances within the company. |
| 8. | Called up share capital |
| Allotted and issued: |
| Number: | Class: | Nominal | 2023 | 2022 |
| value: | £ | £ |
| Ordinary shares | £1 | 100 | 100 |
| Parc Eirin Development Company Limited (Registered number: 08741560) |
| Notes to the Financial Statements - continued |
| for the Year Ended 31 March 2023 |
| 9. | Reserves |
| Retained |
| earnings |
| £ |
| At 1 April 2022 | ( |
) |
| Deficit for the year | ( |
) |
| At 31 March 2023 | ( |
) |
| 10. | Disclosure under Section 444(5B) of the Companies Act 2006 |
| The Report of the Auditors was unqualified. |
| for and on behalf of |
| Material uncertainty related to going concern |
| We draw attention to note 2, 'Going concern', in the financial statements. As at 31 March 2022, the company's total liabilities exceeded its total assets by £799,465. As stated in note 2, these events or conditions, along with other matters as set forth in note 2, 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. |
| 11. | Ultimate parent company |
| The ultimate parent company and controlling party is Tirion Group Limited, which prepares group financial statements incorporating the financial statements of the company. A copy of these can be obtained from the registered society's registered office at 7 Neptune Court, Vanguard Way, Cardiff, Wales, CF24 5PJ. |