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Registered number: |
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Balance Sheet | |||||||
as at |
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Notes | 2019 | 2018 | |||||
£ | £ | ||||||
Fixed assets | |||||||
Investment property | 3 |
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Current assets | |||||||
Debtors | 4 |
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Cash at bank and in hand |
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Creditors: amounts falling due within one year | 5 | ( |
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Net current liabilities | ( |
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Total assets less current liabilities |
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Creditors: amounts falling due after more than one year | 6 | ( |
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Net assets |
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Capital and reserves | |||||||
Called up share capital |
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Share premium |
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Revaluation reserve | 8 | ( |
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Profit and loss account |
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Shareholders' funds |
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Mr H S Morgan | |||||||
Director | |||||||
Approved by the board on |
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Notes to the Accounts | ||||||||
for the year ended |
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1 | Accounting policies | |||||||
Basis of preparation | ||||||||
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Revenue recognition | ||||||||
Rental income from investment property is recognised on a straight line basis over the term of the lease. Lease incentives granted are recognised as an integral part of the total rental income, over the term of the lease. | ||||||||
Investment property | ||||||||
Investment property is property held either to earn rental income or for capital appreciation or both, but not for sale in the ordinary course of business, use in the production or supply of goods or services or for administrative purposes. Investment property is initially measured at cost and subsequently at fair value with any change recognised in the profit and loss account. Deferred tax is provided on gains arising on revaluations at the rate expected to apply when the property is sold. | ||||||||
Debtors | ||||||||
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Creditors | ||||||||
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Taxation | ||||||||
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2 | Determination of fair value | |||||||
Investment property | ||||||||
The company's investment properties are valued annually by a director, Mr H S Morgan, who has considerable experience in the acquisition and management of investment properties. The fair values are based on market values, being the estimated amount for which a property could be exchanged on the date of the valuation between a willing buyer and a willing seller in an arm's length transaction after proper marketing wherein the parties had each acted knowledgeably. In the absence of current prices in an active market, the valuations are prepared by considering the estimated rental value of the property. A market yield is applied to the estimated rental value to arrive at the gross property valuation. When actual rents differ materially from the estimated rental value, adjustments are made to reflect actual returns. Valuations reflect, when appropriate, the type of the tenants actually in occupation or responsible for meeting lease commitments or likely to be in occupation after letting vacant accommodation, the allocation of maintenance and insurance obligations between the company and the lessee, and the remaining economic life of the property. When rent reviews or lease renewals are pending with anticipated reversionary increases, it is assumed that all notices, and when appropriate, counter-notices, have been served validly and within the appropriate time. |
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3 | Investment property | 2019 | 2018 | |||||
£ | £ | |||||||
Fair value | ||||||||
At 1 July 2018 | 4,787,500 | 4,787,500 | ||||||
Change in fair value | (287,500) | - | ||||||
At 30 June 2019 | 4,500,000 | 4,787,500 | ||||||
Investment property | 2019 | 2018 | ||||||
£ | £ | |||||||
Historical cost | 5,157,360 | 5,157,360 | ||||||
Cumulative depreciation based on historical cost | - | - | ||||||
5,157,360 | 5,157,360 | |||||||
Investment properties comprise a number of commercial properties that are leased to third parties. Each of the leases contains an initial non-cancellable period with periodic rent reviews. Subsequent renewals are negotiated with the lessee. | ||||||||
4 | Debtors | 2019 | 2018 | |||||
£ | £ | |||||||
Trade debtors |
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5 | Creditors: amounts falling due within one year | 2019 | 2018 | |||||
£ | £ | |||||||
Bank loans and overdrafts |
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Amounts owed to group undertakings and undertakings in which the company has a participating interest |
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Taxation and social security costs |
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Other creditors |
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6 | Creditors: amounts falling due after one year | 2019 | 2018 | |||||
£ | £ | |||||||
Bank loans |
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7 | Loans | 2019 | 2018 | |||||
£ | £ | |||||||
Creditors include: | ||||||||
Instalments falling due for payment after more than five years | 224,815 | 544,039 | ||||||
Secured bank loans | 1,853,635 | 2,154,662 | ||||||
The National Westminster Bank Plc bank loan is repayable in monthly instalments of £1,782 and is secured. The interest rate is 1.75% above the National Westminster Bank Plc base rate. |
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Legal charges over the freehold properties and a floating charge over the assets of the company; personal guarantees from the directors; an unlimited guarantee from Spencer Morgan Limited. | ||||||||
8 | Revaluation reserve | 2019 | 2018 | |||||
£ | £ | |||||||
Loss on revaluation of investment properties | ( |
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At 30 June 2019 | ( |
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9 | Related party transactions | 2019 | 2018 | |||||
£ | £ | |||||||
Transactions involving the directors | ||||||||
Spencer Morgan Limited | ||||||||
Spencer Morgan Limited is under the common control of the directors. | ||||||||
During the year the company received loans from Spencer Morgan Limited. The loans are interest free and repayable on demand. | ||||||||
At the year end the amounts owed to Spencer Morgan Limited were: | 760,311 | 615,311 | ||||||
Loans from directors | ||||||||
The directors, who are also the company's shareholders, have advanced funds to the company by way of interest free loans which are repayable on demand. The loans are included in other creditors | ||||||||
At the year end the amount due fto the directors amounted to: | 96,760 | 151,760 | ||||||
Remuneration | ||||||||
The directors received no remuneration during the year. | ||||||||
The directors received dividends during the year in the aggregate amount of £40,000 (2018 - £55,000) in respect of their shareholdings in the company. | ||||||||
10 | Controlling party | |||||||
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11 | Other information | |||||||
Swansea Jewellers Limited is a private company limited by shares and incorporated in Wales, Its registered office is: | ||||||||
247 Oxford Street | ||||||||
Swansea | ||||||||
SA1 3BL |