Bethnal Green Regeneration Limited - Accounts to registrar (filleted) - small 23.2.5

REGISTERED NUMBER: 11519292 (England and Wales)

Financial Statements

for the Year Ended 31 December 2022

for

BETHNAL GREEN REGENERATION LIMITED

Page

Company Information

1

Balance Sheet

2

Notes to the Financial Statements

3

Directors:

A L Dawson

G J Stewart

A J Quinn

Registered office:

7-12 Tavistock Square

London

WC1H 9LT

Registered number:

11519292 (England and Wales)

Auditors:

Cooper Parry Group Limited

Statutory Auditor

Aissela

46 High Street

Esher

Surrey

KT10 9QY

Current assets

Debtors

5

-

154

Cash at bank

332

3,659

332

3,813

Creditors

Amounts falling due within one year

6

3,452,310

901,525

Net current liabilities

(3,451,978

)

(897,712

)

Total assets less current liabilities

(3,451,978

)

(897,712

)

Creditors

Amounts falling due after more than one year

7

-

2,245,753

Net liabilities

(3,451,978

)

(3,143,465

)

Capital and reserves

Called up share capital

8

100

100

Retained earnings

(3,452,078

)

(3,143,565

)

Shareholders' funds

(3,451,978

)

(3,143,465

)

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

In accordance with Section 444 of the Companies Act 2006, the Profit and Loss Account has not been delivered.

The financial statements were approved by the Board of Directors and authorised for issue on 6 June 2024 and were signed on its behalf by:

G J Stewart - Director

A J Quinn - Director

1.	Statutory information

Bethnal Green Regeneration 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.

The presentation currency of the financial statements is the Pound Sterling (£).

2.	Accounting policies

Basis of preparing the financial statements

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 the provisions of Section 1A "Small Entities" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention.

Material uncertainty in relation to going concern

There is a balance sheet deficit of £3,451,978 (2021: £3,143,465) at the year-end which relates to an outstanding balance with a third party through an option agreement taken out in relation to the purchase of a building and an intercompany loan balance owed to a parent company. The intercompany loan balance was formally waived post year-end as part of a change in ownership (see post balance sheet event note).

The work-in-progress balance was impaired during the year to 31 December 2021 as an assessment in relation to the viability of the project determined that no further progress will be made on the project in its current form.

The directors recognise that there is material uncertainty related to the going concern of the company that casts significant doubt over the company's future until the issue around payment of the amount owed under the option agreement is resolved, although the directors believe this amount will not become payable as a new agreement is currently in the process of being negotiated and drafted. Additionally, the future direction and viability of the company needs to be considered, although the shareholder entities have confirmed they will continue to support the company for the foreseeable future. There are no additional accounting entries that are required as a result of the above and therefore the financial statements have been prepared on a going concern basis. This basis is considered appropriate by the directors.

Key source of estimation, uncertainty and judgement

The preparation of financial statements in conformity with generally accepted accounting practice requires management to make estimates and judgement that affect the reported amounts of assets and liabilities as well as the disclosure of contingent assets and liabilities at the balance sheet date and the reported amounts of revenues and expenses during the reporting period.

There were no significant estimates and judgements required in the preparation of these financial statements.

Stocks

Work-in-progress is initially recognised at cost and is held at the lower of this cost and its net realisable value. Net realisable value represents the estimated selling price less costs to complete.

Borrowing costs in respect of particular site developments are capitalised and included within work-in-progress.

The company undertakes developments on such terms that it cannot determine profit until the development is complete. Therefore, no attributable profit is taken on such uncompleted developments.

Financial instruments

Financial assets and financial liabilities are recognised in the balance sheet when the company becomes a party to the contractual provisions of the instrument.

Trade and other debtors and creditors are classified as basic financial instruments and measured at initial recognition at transaction price. A provision is established when there is objective evidence that the company will not be able to collect all amounts due.

Cash and cash equivalents are classified as basic financial instruments and comprise cash in hand and at bank and bank overdrafts.

Financial liabilities and equity instruments issued by the company are classified in accordance with the substance of the contractual arrangements entered into and the definitions of a financial liability and an equity instrument. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities. Equity instruments issued by the company are recorded at the proceeds received, net of direct issue costs.

Taxation

Taxation for the year comprises current and deferred tax. Tax is recognised in the Profit and Loss Account, 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.

Hire purchase and leasing commitments

Rentals paid under operating leases are charged to profit or loss on a straight line basis over the period of the lease.

3.	Employees and directors

The average number of employees during the year was NIL (2021 - NIL).

4.

Stocks

Work-in-progress of £3,099,528 was impaired at the year-end 31 December 2022. The impairment took place during the year to 31 December 2021.

5.

Debtors: amounts falling due within one year

2022

2021

£

£

VAT

-

154

6.

Creditors: amounts falling due within one year

2022

2021

£

£

Trade creditors

-

113

Other loans

2,003,847

-

Loan interest

546,191

-

Accruals and deferred income

902,272

901,412

3,452,310

901,525

7.

Creditors: amounts falling due after more than one year

2022

2021

£

£

Other loans - 2-5 years

-

2,000,000

Loan interest

-

245,753

-

2,245,753

8.	Called up share capital

Allotted, issued and fully paid:

Number:

Class:

Nominal

2022

2021

value:

£

£

100

Ordinary

1

100

100

9.	Disclosure under Section 444(5B) of the Companies Act 2006

The Report of the Auditors was unqualified.

Paul Hodgett (Senior Statutory Auditor)

for and on behalf of Cooper Parry Group Limited

10.	Related party disclosures

At the balance sheet date the company owed £2,003,847 (2021: £2,000,000) to a company with a participating interest. Included within creditors due within one year is £546,191 (2021: £245,753) accrued interest which is charged at a rate of 15% and compounded annually. The loan is unsecured.

11.	Post balance sheet events

After the year-end, the previous parent company who owned 51% of the share capital sold their shares to the other shareholding company who owned 49%. On the same day, the shareholder then sold 50% of the shares to a third party. After the transactions, the company is now owned by two corporate shareholders, each owning 50% of the shares.

Also after the year-end, the previous parent company who owned 51% of the shares waived their right and released the company's obligation to repay the loan balance outstanding, plus accrued interest. The total amount waived includes the other loans and loan interest balance included in note 6.

12.	Ultimate controlling party

Mace Finance Limited is regarded by the directors as being the company's ultimate parent company at 31 December 2022. These financial statements are available upon request from Companies House.

Mace Develop Limited is the immediate parent company with a 51% shareholding in the company at 31 December 2022.

Post year-end, there was a change in ownership whereby two corporate shareholders own 50% of the entity and there is no controlling parent entity, see post balance sheet event for further details.

The registered office address of both companies above at 31 December 2022 was 155 Moorgate, London, EC2M 6XB.