Company Registration No. 01292368 (England and Wales)
RHAL FARMS LIMITED
UNAUDITED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2018
PAGES FOR FILING WITH REGISTRAR
RHAL FARMS LIMITED
CONTENTS
Page
Balance sheet
1 - 2
Notes to the financial statements
3 - 7
RHAL FARMS LIMITED
BALANCE SHEET
AS AT
31 DECEMBER 2018
31 December 2018
- 1 -
2018
2017
Notes
£
£
£
£
Fixed assets
Investment properties
2
6,259,301
5,831,667
Investments
3
-
300,000
6,259,301
6,131,667
Current assets
Debtors
4
184,792
177,503
Cash at bank and in hand
637,759
22,096
822,551
199,599
Creditors: amounts falling due within one year
5
(702,180)
(263,172)
Net current assets/(liabilities)
120,371
(63,573)
Total assets less current liabilities
6,379,672
6,068,094
Creditors: amounts falling due after more than one year
6
(178,316)
(607,156)
Provisions for liabilities
(261,290)
(203,346)
Net assets
5,940,066
5,257,592
Capital and reserves
Called up share capital
7
10,000
10,000
Profit and loss reserves
5,930,066
5,247,592
Total equity
5,940,066
5,257,592
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 2018 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.
RHAL FARMS LIMITED
BALANCE SHEET (CONTINUED)
AS AT
31 DECEMBER 2018
31 December 2018
- 2 -
The financial statements were approved by the board of directors and authorised for issue on 5 August 2019 and are signed on its behalf by:
R H Bosomworth
Director
Company Registration No. 01292368
RHAL FARMS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2018
- 3 -
1
Accounting policies
Company information
RHAL Farms Limited is a
private
company
limited by shares
incorporated in England and Wales.
The registered office is
Marderby Hall, Felixkirk, Thirsk, North Yorkshire, YO7 2DR.
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 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 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
Turnover
Turnover represents
rents received for the company's investment properties, and are recognised when recoverable. No properties possess an option to tax and therefore rent is received gross.
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.
1.4
Fixed asset investments
Fixed asset investments
, including investments in
unquoted
equity instruments which are not subsidiaries, associates or joint ventures, 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
where
fair values cannot be measured reliably
and the investments
are measured at cost less impairment.
1.5
Financial instruments
F
inancial 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.
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.
RHAL FARMS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2018
1
Accounting policies
(Continued)
- 4 -
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 and bank loans
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.
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.
1.6
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.
1.7
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.
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.
RHAL FARMS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2018
- 5 -
2
Investment property
2018
£
Fair value
At 1 January 2018
5,831,666
Additions
22,372
Disposals
(25,000)
Revaluations
430,263
At 31 December 2018
6,259,301
Investment property comprises land and buildings held by the company. The fair value of the investment property has been arrived at on the basis of a valuation carried out at the balance sheet date by the director. The valuation was made on an open market value basis by reference to market evidence of transaction prices for similar properties.
3
Fixed asset investments
2018
2017
£
£
Investments
300,000
Movements in fixed asset investments
Investments other than loans
£
Cost or valuation
At 1 January 2018
300,000
Disposals
(300,000)
At 31 December 2018
-
Carrying amount
At 31 December 2018
-
At 31 December 2017
300,000
4
Debtors
2018
2017
Amounts falling due within one year:
£
£
Other debtors
184,792
177,503
RHAL FARMS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2018
- 6 -
5
Creditors: amounts falling due within one year
2018
2017
£
£
Bank loans and overdrafts
429,182
28,538
Trade creditors
-
23,450
Taxation and social security
64,920
15,802
Other creditors
208,078
195,382
702,180
263,172
The bank loan is secured by a fixed legal charge over investment property owned by the company.
6
Creditors: amounts falling due after more than one year
2018
2017
£
£
Bank loans and overdrafts
178,316
607,156
The bank loan is secured by a fixed legal charge over investment property owned by the company.
Creditors which fall due after five years are as follows:
2018
2017
£
£
Payable by instalments
54,859
86,421
7
Called up share capital
2018
2017
£
£
Ordinary share capital
Issued and fully paid
10,000 Ordinary of £1 each
10,000
10,000
8
Financial commitments, guarantees and contingent liabilities
The company has given a cross guarantee in favour of the bank to secure the liability to the bank of Leafshaw Limited, a company in which R H Bosomworth is a director. At 31 December 2018 the total liability of Leafshaw Limited to the bank was £450,000 (2017 - £450,000).
RHAL FARMS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2018
- 7 -
9
Related party transactions
Transactions with related parties
The following amounts were outstanding at the reporting end date:
The company owed B Bosomworth & Sons, a partnership in which R H Bosomworth is a partner, £186,838 (2017 - £174,909).