Cumbrae Properties (1963) Limited
Unaudited Financial Statements
For the year ended 31 December 2021
For Filing with Registrar
Company Registration No. 00752917 (England and Wales)
Cumbrae Properties (1963) Limited
Contents
Page
Balance sheet
1 - 2
Notes to the financial statements
3 - 13
Cumbrae Properties (1963) Limited
Balance Sheet
As at 31 December 2021
Page 1
2021
2020
as restated
Notes
£
£
£
£
Fixed assets
Tangible assets
4
44,970
70,432
Investment properties
5
67,044,235
66,855,818
67,089,205
66,926,250
Current assets
Debtors
6
1,140,404
979,868
Cash at bank and in hand
5,767,210
3,218,381
6,907,614
4,198,249
Creditors: amounts falling due within one year
7
(31,889,978)
(6,504,324)
Net current liabilities
(24,982,364)
(2,306,075)
Total assets less current liabilities
42,106,841
64,620,175
Creditors: amounts falling due after more than one year
8
(22,600,000)
Provisions for liabilities
9
(3,016,959)
(2,297,727)
Net assets
39,089,882
39,722,448
Capital and reserves
Called up share capital
10
24,752
24,752
Share premium account
2,305,991
2,305,991
Revaluation reserve
11
9,017,150
9,738,522
Capital redemption reserve
6,681
6,681
Profit and loss reserves
27,735,308
27,646,502
Total equity
39,089,882
39,722,448
Cumbrae Properties (1963) Limited
Balance Sheet (Continued)
As at 31 December 2021
Page 2
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 December 2021 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.
The directors acknowledge their responsibilities for complying with the requirements of the Companies Act 2006 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.
The financial statements were approved by the board of directors and authorised for issue on 27 September 2022 and are signed on its behalf by:
Mr S H Jenkins
Director
Company Registration No. 00752917
Cumbrae Properties (1963) Limited
Notes to the Financial Statements
For the year ended 31 December 2021
Page 3
1
Accounting policies
Company information
Cumbrae Properties (1963) Limited is a
private
company
limited by shares
incorporated in
England and Wales
.
The registered office is
146-148 Clerkenwell Road, 2nd Floor, London, United Kingdom, EC1R 5DG.
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 £.
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.
1.2
Going concern
At the time of approving the financial statements , the directors have a reasonable expectation that the
true
company has adequate resources to continue in operational existence for the foreseeable future. Thus the
directors continue to adopt the going concern basis of accounting in preparing the financial statements.
1.3
Turnover
Turnover is recognised at the fair value of the consideration received or receivable for goods and services 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.
1.4
Tangible fixed assets
Tangible fixed assets
are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.
Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:
Plant and equipment
20% reducing balance
Property alterations
10% straight line
Works of art
No depreciation charged
The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and
is credited or charged to profit or loss
.
Cumbrae Properties (1963) Limited
Notes to the Financial Statements (Continued)
For the year ended 31 December 2021
1
Accounting policies
(Continued)
Page 4
1.5
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.
1.6
Impairment of fixed assets
At each reporting
period
end date, the
company
reviews the carrying amounts of its tangible
assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the
company
estimates the recoverable amount of the cash-generating unit to which the asset belongs.
Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.
If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in
profit
or
loss
, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.
Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit)
in
prior years. A reversal of an impairment loss is recognised immediately in
profit
or
loss
, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.
1.7
Cash and cash equivalents
Cash and cash equivalents
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.
1.8
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.
Cumbrae Properties (1963) Limited
Notes to the Financial Statements (Continued)
For the year ended 31 December 2021
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.
Classification of financial liabilities
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 company after deducting all of its liabilities.
Basic financial liabilities
Basic financial liabilities, including
creditors
, bank loans, loans from
fellow group companies and preference shares that are classified as debt, 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
paymen
ts 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. A
m
ounts 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.
1.9
Equity instruments
Equity instruments issued by the company are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.
1.10
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.
Cumbrae Properties (1963) Limited
Notes to the Financial Statements (Continued)
For the year ended 31 December 2021
1
Accounting policies
(Continued)
Page 6
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.
The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the
profit and loss account
, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset when the
company
has a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.
1.11
Employee benefits
The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or
fixed assets
.
The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.
Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.
1.12
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
1.13
Leases
Rentals payable under operating leases,
including
any lease incentives received, are charged to
profit or loss
on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the lease
s
asset are consumed.
1.14
Foreign exchange
Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation
in the period
are included in profit or loss.
Cumbrae Properties (1963) Limited
Notes to the Financial Statements (Continued)
For the year ended 31 December 2021
Page 7
2
Judgements and key sources of estimation uncertainty
In the application of the company’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.
Critical judgements
The following judgements (apart from those involving estimates) have had the most significant
effect on amounts recognised in the financial statements.
Investment Properties
The revaluation of investment properties has had the most significant effect on the financial statements.
The company holds its investment properties at fair value. In order to arrive at this value, the company
considers various factors including, the reports prepared by independent valuation experts, the location and
condition of the properties, the occupancy rates, an appraisal of the current market environment and recent
market transactions involving similar assets.
The estimates and underlying assumptions are reviewed on an ongoing basis.
3
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2021
2020
Number
Number
Total
3
3
Cumbrae Properties (1963) Limited
Notes to the Financial Statements (Continued)
For the year ended 31 December 2021
Page 8
4
Tangible fixed assets
Plant and equipment
Property alterations
Works of art
Total
£
£
£
£
Cost
At 1 January 2021
156,146
28,025
29,229
213,400
Additions
307
307
Disposals
(75,747)
(75,747)
At 31 December 2021
80,706
28,025
29,229
137,960
Depreciation and impairment
At 1 January 2021
114,943
28,025
142,968
Depreciation charged in the year
8,183
8,183
Eliminated in respect of disposals
(58,161)
(58,161)
At 31 December 2021
64,965
28,025
92,990
Carrying amount
At 31 December 2021
15,741
29,229
44,970
At 31 December 2020
41,203
29,229
70,432
5
Investment property
2021
£
Fair value
At 1 January 2021
66,855,818
Additions
188,417
At 31 December 2021
67,044,235
The directors have reviewed the valuation of the investment properties. In valuing the properties the directors had due
regard to reports prepared by qualified surveyors and general market trends. Account is also taken of
factors specific to individual properties.
6
Debtors
2021
2020
Amounts falling due within one year:
£
£
Trade debtors
509,814
571,525
Other debtors
555,301
342,313
Prepayments and accrued income
75,289
66,030
1,140,404
979,868
Cumbrae Properties (1963) Limited
Notes to the Financial Statements (Continued)
For the year ended 31 December 2021
Page 9
7
Creditors: amounts falling due within one year
2021
2020
£
£
Other borrowings
25,000,000
Trade creditors
143,875
79,524
Corporation tax
224,657
54,704
Other taxation and social security
83,260
57,414
Other creditors
5,562,700
5,484,372
Accruals and deferred income
875,486
828,310
31,889,978
6,504,324
8
Creditors: amounts falling due after more than one year
2021
2020
£
£
Bank loans and overdrafts
22,600,000
The long-term bank loans bear interest at market linked rates. Security is held over a number of properties together with a floating charge over assets of the company.
9
Deferred taxation
The following are the major deferred tax liabilities and assets recognised by the company and movements thereon:
Liabilities
Liabilities
2021
2020
Balances:
£
£
Accelerated capital allowances
11,242
13,382
Revaluations
3,005,717
2,284,345
3,016,959
2,297,727
2021
Movements in the year:
£
Liability at 1 January 2021
2,297,727
Charge to profit or loss
719,232
Liability at 31 December 2021
3,016,959
Cumbrae Properties (1963) Limited
Notes to the Financial Statements (Continued)
For the year ended 31 December 2021
Page 10
10
Called up share capital
2021
2020
2021
2020
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
24,752
24,752
24,752
24,752
Cumbrae Properties (1963) Limited
Notes to the Financial Statements (Continued)
For the year ended 31 December 2021
Page 11
11
Revaluation reserve
2021
2020
£
£
At beginning of year
9,738,522
3,800,296
Revaluation surplus arising in the year
8,222,571
Deferred tax on revaluation of investment properties
(721,372)
(2,284,345)
At end of year
9,017,150
9,738,522
12
Operating lease commitments
Lessee
At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, as follows:
2021
2020
£
£
39,891
135,628
Lessor
At the reporting end date the company had contracted with tenants for the following minimum lease payments:
2021
2020
£
£
7,535,520
9,857,487
Cumbrae Properties (1963) Limited
Notes to the Financial Statements (Continued)
For the year ended 31 December 2021
Page 12
13
Related party transactions
The company rents premises to Bute Fabrics Limited, a company controlled by certain shareholders. The
rental due for the year ended 31 December 202
1
was £20,000 (20
20
: £20,000). At the year end Bute Fabrics Limited owed the company £169,479 (2020: £163,479) which is included in other debtors.
The company rents offices from Tallwood Limited, a company controlled by a shareholder, during the year
to 31 December 202
1
£
114
,
484
(20
20
: £13
2
,
378
) was paid in respect of rents and service charges for the
year.
During the year the company entered into transactions with key management £50,000 (20
20
: £
56
,
940
) for
the provision of professional services.
A connected company has advanced funds to the company. This loan bears
interest at a commercial rates and are unsecured. The balance outstanding on the loans at 31 December
2021 was £25,000,000 (2020: £nil).
The directors, shareholders and family members have advanced funds to the company. These loans bear interest at a commercial rates and are unsecured. The balance outstanding on the loans at 31 December 2021 was £4,685,584 (2020: £4,714,584).
14
Prior period adjustment
Changes to the balance sheet
As previously reported
Adjustment
As restated at 31 Dec 2020
£
£
£
Fixed assets
Tangible assets
327,531
(257,099)
70,432
Investment properties
66,522,187
333,631
66,855,818
Provisions for liabilities
Deferred tax
(199,500)
(2,098,227)
(2,297,727)
Net assets
41,744,143
(2,021,695)
39,722,448
Capital and reserves
Revaluation reserve
3,800,296
5,938,226
9,738,522
Profit and loss reserves
35,606,423
(7,959,921)
27,646,502
Total equity
41,744,143
(2,021,695)
39,722,448
Changes to the profit and loss account
As previously reported
Adjustment
As restated
Period ended 31 December 2020
£
£
£
Administrative expenses
(495,854)
15,970
(479,884)
Profit for the financial period
1,540,230
15,970
1,556,200
Cumbrae Properties (1963) Limited
Notes to the Financial Statements (Continued)
For the year ended 31 December 2021
14
Prior period adjustment
(Continued)
Page 13
Reconciliation of changes in equity
1 January
31 December
2020
2020
Notes
£
£
Adjustments to prior year
Property alterations
1
-
76,532
Deferred tax
2
-
(2,297,727)
Total adjustments
-
(2,221,195)
Equity as previously reported
40,703,917
41,744,143
Equity as adjusted
40,703,917
39,522,948
Warning! Does not agree to adjusted equity reported:
40,703,917
39,722,448
Analysis of the effect upon equity
Revaluation reserve
-
5,938,226
Profit and loss reserves
-
(7,959,921)
-
(2,021,695)
Reconciliation of changes in profit for the previous financial period
2020
Notes
£
Adjustments to prior year
Property alterations
1
15,970
Deferred tax
2
-
Profit as previously reported
1,540,230
Profit as adjusted
1,556,200
Notes to reconciliation
Property alterations
The prior year adjustment represents property alterations previously included in tangible fixed assets re-presented in investment properties as they relate to alterations completed on the investment properties.
Deferred tax
The prior year adjustment represents a deferred tax liability not previously recognised.
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