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Registered number: |
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Balance Sheet | |||||||
as at |
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Notes | 2017 | 2016 | |||||
£ | £ | ||||||
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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Provisions for liabilities | 8 | - | ( |
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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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Fair value reserve | - |
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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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First time adoption of FRS102 | ||||||||
These are Swansea Jewellers Limited's first financial statements to comply with FRS102. The date of transition to FRS102 is 1 July 2015. In preparing the accounts, the directors have considered whether in applying the accounting policies required by FRS 102 the restatement of comparative items was required. Note 13 to the financial statements describes the differences between the retained earnings and deferred tax provision presented in the opening balance sheet on the date of transition (ie at 1 Julyl 2015). It also describes all the required changes in accounting policies made on first-time adoption of FRS 102. |
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Revenue recognition | ||||||||
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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 | 2017 | 2016 | |||||
£ | £ | |||||||
Fair value | ||||||||
At 1 July 2016 | 5,494,000 | 5,494,000 | ||||||
Change in fair value | (706,500) | - | ||||||
At 30 June 2017 | 4,787,500 | 5,494,000 | ||||||
Investment property | 2017 | 2016 | ||||||
£ | £ | |||||||
Historical cost | 5,157,360 | 5,157,360 | ||||||
Cumulative depreciation based on historical cost | - | - | ||||||
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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 | 2017 | 2016 | |||||
£ | £ | |||||||
Trade debtors |
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5 | Creditors: amounts falling due within one year | 2017 | 2016 | |||||
£ | £ | |||||||
Bank loans and overdrafts |
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Spencer Morgan Limited |
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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 | 2017 | 2016 | |||||
£ | £ | |||||||
Bank loans |
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7 | Loans | 2017 | 2016 | |||||
£ | £ | |||||||
Creditors include: | ||||||||
Instalments falling due for payment after more than five years | 828,558 | 1,221,445 | ||||||
Secured bank loans | 2,426,611 | 2,712,360 | ||||||
The National Westminster Bank Plc bank loan is repayable in monthly instalments of £1,768 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 | Deferred tax | 2017 | 2016 | |||||
£ | £ | |||||||
At 1 July 2016 |
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Movement in deferred tax arising on fair value adjustments | ( |
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At 30 June 2017 | - |
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9 | Loans from directors | |||||||
Description and conditions | B/fwd | Advanced to company | Repaid | C/fwd | ||||
£ | £ | £ | £ | |||||
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87,760 | 106,000 | (100,000) | 93,760 | |||||
10 | Related party transactions | 2017 | 2016 | |||||
£ | £ | |||||||
Spencer Morgan Limited | ||||||||
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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: | 562,311 | 515,333 | ||||||
The directors received no remuneration during the year. | ||||||||
The directors received dividends during the year in the aggregate amount of £40,000 in respect of their shareholdings in the company. | ||||||||
11 | Controlling party | |||||||
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12 | Other information | |||||||
Swansea Jewellers Limited is a private company limited by shares and incorporated in England. Its registered office is: | ||||||||
247 Oxford Street | ||||||||
Swansea | ||||||||
SA1 3BL | ||||||||
13 | Transition to FRS 102 | |||||||
The company has adopted FRS 102 for the first time in these financial statements for the year ended 30 June 2017. The reconciliations below highlight the key impacts on the retained earnings. | ||||||||
Reconciliation of retained earnings from previous UK accounting standards to FRS 102. | ||||||||
Fair value reserve | 01/07/2015 | |||||||
£ | ||||||||
Fair value reserves as previously reported | 336,640 | |||||||
Adjustments: | ||||||||
Prior year adjustment | (60,595) | |||||||
Fair value reserve in accordance with FRS 102 | 276,045 | |||||||
Deferred tax provision | 01/07/2015 | |||||||
£ | ||||||||
Deferred tax provision as previously reported | - | |||||||
Adjustments: | ||||||||
Prior year adjustment | 60,595 | |||||||
Deferred tax provision in accordance with FRS 102 | 60,595 | |||||||
The adjustments are: | ||||||||
Under UK accounting standards investment properties were valued at market value and a provision for deferred tax was not required on any changes in market value. Under FRS102 investment properties must be measured at fair value and changes in fair value recognised in the profit and loss account. Deferred tax must be provided on these gains at the rate expected to apply when the property is sold. The prior year adjustment gives effect to the requirements of FRS102 at the transition date. |