Snape & Son (Bilston) Limited
Unaudited Financial Statements
For Filing with Registrar
For the year ended 31 March 2018
Company Registration No. 00274385 (England and Wales)
Snape & Son (Bilston) Limited
Company Information
Directors
E B Farrar
E G C Snape
R Milner
Company number
00274385
Registered office
Charlotte Building
17 Gresse Street
London
W1T 1QL
Accountants
Kingston Smith LLP
17 Gresse Street
London
W1T 1QL
Business address
Charlotte Building
17 Gresse Street
London
W1T 1QL
Snape & Son (Bilston) Limited
Contents
Page
Balance sheet
1 - 2
Statement of changes in equity
3
Notes to the financial statements
4 - 8
Snape & Son (Bilston) Limited
Balance Sheet
As at 31 March 2018
Page 1
2018
2017
Notes
£
£
£
£
Fixed assets
Investment properties
5
1,050,000
975,000
Current assets
Debtors
8
-
16,022
Cash at bank and in hand
30,196
11,465
30,196
27,487
Creditors: amounts falling due within one year
9
(86,836)
(83,940)
Net current liabilities
(56,640)
(56,453)
Total assets less current liabilities
993,360
918,547
Creditors: amounts falling due after more than one year
10
(618,738)
(662,351)
Provisions for liabilities
(71,244)
(58,494)
Net assets
303,378
197,702
Capital and reserves
Called up share capital
11
5,000
5,000
Profit and loss reserves
298,378
192,702
Total equity
303,378
197,702
The directors of the company have elected not to include a copy of the profit and loss account within the financial statements.
true
For the financial year ended 31 March 2018 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.
T
he directors acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and the preparation of financial statements.
T
he members have not required the company to obtain an audit of its financial statements for the year in question in accordance with section 476
.
These financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies' regime.
Snape & Son (Bilston) Limited
Balance Sheet (Continued)
As at 31 March 2018
Page 2
The financial statements were approved by the board of directors and authorised for issue on 20 November 2018 and are signed on its behalf by:
E G C Snape
Director
Company Registration No. 00274385
Snape & Son (Bilston) Limited
Statement of Changes in Equity
For the year ended 31 March 2018
Page 3
Share capital
Profit and loss reserves
Total
£
£
£
Balance at 1 April 2016
5,000
105,504
110,504
Year ended 31 March 2017:
Profit and total comprehensive income for the year
-
87,198
87,198
Balance at 31 March 2017
5,000
192,702
197,702
Year ended 31 March 2018:
Profit and total comprehensive income for the year
-
105,676
105,676
Balance at 31 March 2018
5,000
298,378
303,378
Snape & Son (Bilston) Limited
Notes to the Financial Statements
For the year ended 31 March 2018
Page 4
1
Accounting policies
Company information
Snape & Son (Bilston) Limited is a
private
company
limited by shares
incorporated in England and Wales.
The registered office is
Charlotte Building, 17 Gresse Street, London, W1T 1QL.
1.1
Accounting convention
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 requirements of the Companies Act 2006 as applicable to companies subject to the small companies regime.
The financial statements are prepared in
sterling
, which is the functional currency of the company.
Monetary a
mounts
in these financial statements are
rounded to the nearest pound.
The financial statements have been prepared under the historical cost convention, modified to include the revaluation of freehold properties and to include investment properties and certain financial instruments at fair value. The principal accounting policies adopted are set out below.
1.2
Turnover
Turnover is recognised at the fair value of the
rent receivable from investment property
provided in the normal course of business
, and
is shown net of VAT and other sales related taxes
.
The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.
When cash inflows are deferred and represent a financing arrangement, the fair value of the consideration is the present value of the future receipts. The difference between the fair value of the consideration and the nominal amount received is recognised as interest income.
1.3
Investment properties
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 a
t
the reporting end date.
The surplus or deficit on revaluation is recognised in the profit and loss account.
Where fair value cannot be achieved without undue cost or effort, investment property is accounted for as tangible fixed assets.
1.4
Cash and cash equivalents
Cash at bank and in hand
are basic financial assets
and
include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.
1.5
Financial instruments
The company 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 company's balance sheet when the company becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset
, with
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.
Snape & Son (Bilston) Limited
Notes to the Financial Statements (Continued)
For the year ended 31 March 2018
1
Accounting policies
(Continued)
Page 5
Basic financial assets
Basic financial assets, which include 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.
Other financial assets
Other financial assets, including
fixed asset
investments are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.
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 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.
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 profit or loss.
1.6
Equity instruments
Equity instruments issued by the company 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 company.
1.7
Taxation
The tax expense represents the sum of the tax currently payable and deferred tax.
Current tax
The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The
company’s
liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.
Deferred tax
Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.
Snape & Son (Bilston) Limited
Notes to the Financial Statements (Continued)
For the year ended 31 March 2018
Page 6
2
Employees
The average number of employees during the period was
Nil
(201
7
:
Nil
)
Key management personnel include all directors of the company who together have authority and
responsibility for planning, directing and controlling the activities of the company.
3
Directors' remuneration
2018
2017
£
£
Remuneration paid to directors
1,500
3,000
4
Taxation
2018
2017
£
£
Deferred tax
Origination and reversal of timing differences
12,750
12,325
5
Investment property
2018
£
Fair value
At 1 April 2017
975,000
Revaluations
75,000
At 31 March 2018
1,050,000
The
investment property was assessed on behalf of the directors by the surveyor Andrew Oliver
MRICS on 2 June 2014. More recently, the director, Mr E B Farrar, qualified MRICS chartered
surveyor has valued the property
at fair value
as at the balance sheet date
.
The valuation was made on an open market value basis by reference to market evidence of transaction prices for similar properties.
6
Operating lease commitments
The company owns a investment property for rental purposes. Rental income earned during the year was £82,061 (2017: £66,876) (subject to review in accordance with the terms of the lease) and direct operating expenses arising on the properties in the period was £8,517 (2017: £8,500). All of the properties have committed tenants for the next 7 years. All operating lease contracts contain market review clauses in the event that the lessee exercises its option to renew. The lessee does not have an option to purchase the property at the expiry of the lease period.
Snape & Son (Bilston) Limited
Notes to the Financial Statements (Continued)
For the year ended 31 March 2018
Page 7
7
Financial instruments
2018
2017
£
£
Carrying amount of financial assets
Instruments measured at fair value through profit or loss
1,050,000
975,000
The financial asset measured at fair value through the profit and loss represents the investment property owned by the company for rental purposes.
8
Debtors
2018
2017
Amounts falling due within one year:
£
£
Trade debtors
-
16,000
Other debtors
-
22
-
16,022
9
Creditors: amounts falling due within one year
2018
2017
Notes
£
£
Deferred income
8,000
20,000
Other creditors
73,560
56,940
Accruals and deferred income
5,276
7,000
86,836
83,940
There are fixed and floating charges over the company's property held by a bank lender in respect of a balance of £62,061 (2017: £45,441) included with other creditors.
10
Creditors: amounts falling due after more than one year
2018
2017
£
£
Loans and overdrafts
375,926
261,062
Other creditors
242,812
401,289
618,738
662,351
There are fixed and floating charges over the company's property held by a bank lender in respect of a balance of £242,812 (2017: £389,395) included with other creditors.
Snape & Son (Bilston) Limited
Notes to the Financial Statements (Continued)
For the year ended 31 March 2018
Page 8
11
Called up share capital
2018
2017
£
£
Ordinary share capital
Issued and fully paid
2,500 Ordinary A Shares of £1 each
2,500
2,500
2,500 Ordinary B Shares of £1 each
2,500
2,500
5,000
5,000
12
Related party transactions
J W G Snape
Shareholder and relative of E G C Snape
At the balance sheet date the company owed J W G Snape £5,000 (2017: £5,000)
D B Farrar
A relative of director and shareholder E B Farrar
At the balance sheet date the company owed D B Farrar £1,500 (2017: £1,500).
E G C Snape
Director
During the year E G C Snape loaned the company £100,000 (2017: £Nil), was repaid £Nil (2017: £25,000) and charged the company loan interest £10,076 (2017: £6,732). At the balance sheet date the company owed E G C Snape £262,544 (2017: £149,662).
E B Farrar
Director
During the year E B Farrar charged the company loan interest £4,790 (2017: £4,593). At the balance sheet date the company owed Farrar, E B Farrar £118,381 (2017: £111,399).
J Milner
A relative of director
During the year J Milner loaned the company £Nil (2017: £Nil), was repaid £12,060 (2017: £Nil) and charged the company loan interest £165 (2017: £490).
At the balance sheet date the company owed J Milner £Nil (2017: £11,895).
13
Ultimate Controlling Party
The ultimate controlling party is
shared between
E B Farrar
and Ms C Barker by the
virtue
of
the
ir ownership in the
company's share
capital.