SKILLCROWN_HOMES_(UK)_LLP - Accounts
SKILLCROWN_HOMES_(UK)_LLP - Accounts
The members of the limited liability partnership have elected not to include a copy of the income statement within the financial statements.
INTERESTS
2022
INTERESTS
2022
Skillcrown Homes (UK) LLP is a limited liability partnership incorporated in England and Wales. The registered office is Terrance House, 151 Hastings Road, Bromley, Kent, BR2 8NQ.
The limited liability partnership's principal activities are disclosed in the Members' Report.
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 Statement of Recommended Practice "Accounting by Limited Liability Partnerships" (published December 2018). 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 limited liability partnership. Monetary amounts in these financial statements are rounded to the nearest £.
The financial statements have been prepared under the historical cost convention, modified to include investment properties at fair value. The principal accounting policies adopted are set out below.
The members have prepared detailed cash flow forecasts for the partnership and its parent company (the “group”) covering the period to 31 January 2024. These forecasts show that the group will have adequate cash resources to enable it to pay its debts as they fall due for at least that period.
Accordingly, the members have, after careful consideration, concluded that it is appropriate to prepare these financial statements on the going concern basis as the partnership will be able to pay its debts as they fall due for a period of at least 12 months from the date of approval of these financial statements.
The financial year end of the company was changed from 31 January to 28 February. Accordingly, the current financial statements are prepared for 1 month from 1 February 2022 to 28 February 2022 and as a result, the comparative figures stated in the statement of comprehensive income, statement of financial position, reconciliation of member's interests and the related notes may not be comparable.
Turnover is measured at the fair value of the consideration received or receivable and represents amounts receivable for services provided in the normal course of business, net of discounts, VAT and other sales related taxes.
Turnover in respect of rental income is recognised over the period to which it relates.
Turnover in respect of car park income is recognised on receipt of income.
Members' participation rights are the rights of a member against the LLP that arise under the members' agreement (for example, in respect of amounts subscribed or otherwise contributed remuneration and profits).
Members' participation rights in the earnings or assets of the LLP are analysed between those that are, from the LLP's perspective, either a financial liability or equity, in accordance with section 22 of FRS 102. A member's participation rights including amounts subscribed or otherwise contributed by members, for example members' capital, are classed as liabilities unless the LLP has an unconditional right to refuse payment to members, in which case they are classified as equity.
Amounts subscribed or otherwise contributed by members, for example members' capital, are classed as equity if the LLP has an unconditional right to refuse payment to members. If the LLP does not have such an unconditional right, such amounts are classified as equity.
All amounts due to members that are classified as liabilities are presented within 'Loans and other debts due to members' and, where such an amount relates to current year profits, they are recognised within ‘Members' remuneration charged as an expense’ in arriving at the relevant year’s result. Undivided amounts that are classified as equity are shown within ‘Members' other interests’. Amounts recoverable from members are presented as debtors and shown as amounts due from members within members’ interests.
Where there exists an asset and liability component in respect of an individual member’s participation rights, they are presented on a gross basis unless the LLP has both a legally enforceable right to set off the recognised amounts, and it intends either to settle on a net basis or to settle and realise these amounts simultaneously, in which case they are presented net.
Profits are automatically divided as they arise, so the LLP does not have an unconditional right to refuse payment and the amounts arising that are due to members are in the nature of liabilities. They are therefore treated as an expense and presented as members remuneration charged as an expense in arriving at the result for the relevant year. To the extent that they remain unpaid at the period end, they are shown as liabilities.
Once an unavoidable obligation has been created in favour of members through allocation of profits or other means, any undrawn profits remaining at the reporting date are shown as ‘Loans and other debts due to members’ to the extent they exceed debts due from a specific member.
Investment property, which is property held to earn rentals and/or for capital appreciation, is initially recognised at cost, which includes the purchase cost and any directly attributable expenditure. Subsequently it is measured at fair value at the reporting end date. Changes in fair value are recognised in profit or loss.
Cash and cash equivalents are basic financial assets and include cash in hand and deposits held at call with banks.
The limited liability partnership 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 limited liability partnership's statement of financial position when the limited liability partnership becomes party to the contractual provisions 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, which include trade and other 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 assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.
Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows 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 cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.
Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the limited liability partnership transfers the financial asset 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.
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 limited liability partnership after deducting all of its liabilities.
Basic financial liabilities, including trade and other creditors (including accruals), bank loans and loans from related companies, 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.
Financial liabilities are derecognised when the limited liability partnership’s obligations expire or are discharged or cancelled.
Equity instruments issued by the limited liability partnership are recorded at the proceeds received, net of direct issue costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the limited liability partnership.
The average number of persons (excluding members) employed by the partnership during the period was:
Investment property comprises freehold buildings. The fair value of the investment property has been arrived at on the basis of a valuation carried out at 28 February 2022 by the members. The valuation was made on an open market value basis by reference to market evidence of transaction prices for similar properties.
The investment property is stated in the financial statements net of a rent free debtor which is included in other debtors in accordance with operating lease incentive accounting under FRS102.
Bank loans of £2,416,864 (31 January 2022: £2,290,971) are secured by a fixed and floating charge over the assets of the partnership.
Bank loans of £3,455,696 (31 January 2022: £3,641,752) are secured by a fixed and floating charge over the assets of the partnership.
In the event of a winding up the amounts included in "Loans and other debts due to members" will rank equally with unsecured creditors.
The LLP has provided guarantees totalling £5,814,000 (31 January 2022: £5,814,000) in respect of loans provided to Skillcrown Holdings Limited.
The partnership is included in a group registration for VAT purposes and is therefore jointly and severally liable for all other group companies' unpaid debts in this connection.
At the reporting end date the limited liability partnership had contracted with tenants for the following minimum lease payments:
During the period the limited liability partnership entered into the following transactions with related parties:
The following amounts were outstanding at the reporting end date and included in debtors:
The parent company of Skillcrown Homes (UK) LLP is Skillcrown Holdings (2018) Limited and its registered office is, Terrance House, 151 Hastings Road, Bromley, Kent, BR2 8NQ.
The ultimate controlling party is Y Osman by virtue of his shareholding in Skillcrown Holdings (2018) Limited.