annington annual rep 2019-web - Page 77



Financial statements | Notes to the financial statements
29. CAPITAL COMMITMENTS AND CONTINGENCIES
ACCOUNTING POLICY
Capital commitments
Contractual obligations comprise obligations to purchase,
construct or develop investment property or for repairs,
maintenance or enhancements.
Contingent liabilities
Contingent liabilities comprise either a possible obligation
depending on whether some uncertain future event occurs,
or a present obligation where payment is not probable or
the amount cannot be measured reliably. Any such possible
obligations are disclosed but not recognised on the face of the
balance sheet.
Capital commitments
The Group has entered into construction contracts for the
development of its investment properties and has agreed to
make contributions to community infrastructure projects as part
of these developments. The total of the contracted costs to be
incurred in the future amounts to £27.0 million.
Contingent liabilities
As stated in Note 18, there is a contingent liability to allow for
the adoption of private utilities on sites that are currently base
dependent (dependent on the MoD) for their supply of water
and sewage treatment and where there have been no releases
of property from the MoD. This amounts to £134.4 million
(2018: £132.1 million).
In June 2018, Annington Limited, Annington Homes Limited,
Annington Rentals (Holdings) Limited and Annington Rentals
(No.4) Limited entered into an agreement with QBE Insurance
(Europe) Limited through which surety bonding facilities to the
value of £5.0 million are made available to the Group. Under
this agreement, the aforementioned entities act as guarantors
in respect of performance bonds given. A premium of 1.25%
per annum is payable on the face value of the surety provided.
In July 2018, a £0.6 million bond was issued against this facility.
Notes to the financial statements
Name of subsidiary undertakings
Principal activity
Annington Homes Limiteda
Intermediate group holding company
Annington Subsidiary Holdings Limited
Intermediate group holding company
Annington Property Limited
Property investment
Annington Management Limited
Management
Annington Receivables Limited
Income management
Annington Guarantee Limited
Dormant
Annington Nominees Limited
Residents property management
Annington Finance No. 1 plcc
Finance
Annington Finance No. 2 Limitedc
Finance
Annington Finance No. 4 plcc
Finance
Annington Finance No. 5 plcc
Finance
Annington Funding plc
Finance
Annington Developments (Holdings) Limited
Intermediate group holding company
Annington Developments Limited
Property investment
Information regarding key management personnel
Annington (DA) Investment Limited
Property investment
Details of payments to key management personnel are
disclosed in Note 6.
Annington Rentals (Holdings) Limitedd
Intermediate group holding company
Annington Rentals Limited
Property investment
Annington Rentals (No.2) Limited
Property investment
Annington Rentals (No.3) Limited
Property investment
Annington Rentals (No.4) Limited
Property investment
Annington Rentals (No. 5) Limited
Property investment
Annington Rentals (No. 6) Limited
Property investment
Annington Rentals (No. 7) Limited
Property investment
Annington Rentals (No. 8) Limited
Property investment
Annington Rentals Management Limited
Property investment
30. RELATED PARTY DISCLOSURES
Balances and transactions between the Company and its
subsidiaries, which are related parties, have been eliminated on
consolidation and are not disclosed in this note. Transactions
between the Group and other related parties are disclosed
below.
b
During the current year, the Group has had transactions
with joint ventures that include distributions and loans. In
addition, during the year ended 31 March 2019 Annington
Developments Limited received £7.4 million for an overage
payment from Countryside Annington (Mill Hill) Limited.
31. SUBSIDIARIES AND RELATED UNDERTAKINGS
ACCOUNTING POLICY
Subsidiaries are those entities controlled by the Group.
Control is assumed when the Group has the power to govern
the financial and operating policies of an entity, to benefit
from its activities. Consolidation of a subsidiary begins when
the Group obtains control over the subsidiary and ceases
when the Group loses control of the subsidiary. All intragroup
transactions, balances, income and expenses are eliminated on
consolidation.
The subsidiary undertakings of Annington Limited at 31
March 2019, which are wholly owned, incorporated in the
United Kingdom and included in the consolidated financial
statements, are shown below. The address of the registered
office for all subsidiary undertakings, with the exception of
Annington Nominees Limited and its undertakings, is 1 James
Street, London W1U 1DR.

a
The ordinary shares in this undertaking are directly owned by the Company.
The address of Annington Nominees Limited’s registered office is 1 Callaghan Square, Cardiff CF10 5BT. Annington Nominees
Limited owns one Class “A” share in each of the companies listed overleaf, all of which are property management companies.
Each company in the table below has issued one Class “A” share. Class “B” shares are allotted to homeowners on the relevant
sites. Class “A” shareholders are entitled to receive notices of, attend, speak and vote at general meetings of the company. The
Class “A” shareholder shall transfer its share to the purchaser of the last house on the site. Class “B” shareholders are not entitled
to receive notices of, attend, speak or vote at general meetings of the company until the Class “A” share is redesignated as a
Class “B” share. Where all Class “B” shares have been issued, the Class “A” share is converted to a Class “C” share, on ‘handover
of the company to resident control’. Class “C” shareholder is not entitled to receive notices of, attend, speak or vote at general
meetings of the company.
b
The results for each of these undertakings are not consolidated into these financial statements of Annington Limited as they are
not considered material for the purposes of giving a true and fair view to the consolidated results.
c
These companies are part of the old securitisation structure and entered into liquidation on 21 September 2018.
Through subsidiaries of Annington Rentals (Holdings) Limited, the Group holds a shareholding in two further companies, the
results of which are not consolidated into these financial statements of Annington Limited as they are not considered material for
the purposes of giving a true and fair view to the consolidated results.
d
Name of subsidiary undertaking
Beaumont Place Management Limited
Registered address: Vantage Point, 23 Mark Road,
Hemel Hempstead, Hertfordshire, HP2 7DN
76 | Annington Limited Annual Report & Accounts 2019
Holding %
70.00
Name of subsidiary undertaking
Elliott Place Management Company Ltd
Registered address: 31/33 College Road, Harrow,
England, HA1 2EJ
Holding %
25.00
Annington Limited Annual Report & Accounts 2019 | 77

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