Company Registration No. 01647795 (England and Wales)
LINVICK LIMITED
FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 30 APRIL 2020
PAGES FOR FILING WITH REGISTRAR
LINVICK LIMITED
CONTENTS
Page
Balance sheet
1
Statement of changes in equity
2
Notes to the financial statements
3 - 7
LINVICK LIMITED
BALANCE SHEET
AS AT
30 APRIL 2020
30 April 2020
- 1 -
2020
2019
Notes
£
£
£
£
Fixed assets
Tangible assets
3
5,062,969
1,328,384
Current assets
Stocks
31,897
71,099
Debtors
4
70,899
67,424
Cash at bank and in hand
146,568
200
249,364
138,723
Creditors: amounts falling due within one year
5
(1,248,609)
(1,332,715)
Net current liabilities
(999,245)
(1,193,992)
Total assets less current liabilities
4,063,724
134,392
Provisions for liabilities
(602,014)
(11,846)
Net assets
3,461,710
122,546
Capital and reserves
Called up share capital
100
100
Revaluation reserve
3,153,247
-
Capital contribution reserve
50,427
-
Profit and loss reserves
257,936
122,446
Total equity
3,461,710
122,546
The director of the company has elected not to include a copy of the profit and loss account within the financial statements.
true
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 April 2021 and are signed on its behalf by:
S R Sejpal
Director
Company Registration No. 01647795
LINVICK LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE PERIOD ENDED 30 APRIL 2020
- 2 -
Share capital
Revaluation reserve
Capital contribution reserve
Profit and loss reserves
Total
£
£
£
£
£
Balance at 1 October 2018
100
-
-
613,934
614,034
Period ended 19 December 2019:
Loss and total comprehensive income for the period
-
-
-
(491,488)
(491,488)
Balance at 19 December 2019
100
-
-
122,446
122,546
Period ended 30 April 2020:
Profit for the period
-
-
-
121,668
121,668
Other comprehensive income:
Revaluation of tangible fixed assets
-
3,756,752
-
-
3,756,752
Tax relating to other comprehensive income
-
(589,683)
-
-
(589,683)
Total comprehensive income for the period
-
3,167,069
-
121,668
3,288,737
Transfers
-
(13,822)
-
13,822
-
Other movements
-
-
50,427
-
50,427
Balance at 30 April 2020
100
3,153,247
50,427
257,936
3,461,710
LINVICK LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 30 APRIL 2020
- 3 -
1
Accounting policies
Company information
Linvick Limited is a
private
company
limited by shares
incorporated in England and Wales.
The registered office is
The Hollies, Chorleywood Road, Rickmansworth, England, WD3 4ER.
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 the revaluation of freehold properties and certain financial instruments at fair value. The principal accounting policies adopted are set out below.
1.2
Going concern
The company has net current liabilities of £9
true
99,245
after taking into account an amount, included in amounts owed to group undertakings, of £
981,096
owed to the immediate parent company. The immediate and ultimate parent undertakings have confirmed that they will continue to provide financial support to the company for as long as this is necessary.
The director has considered the effect of the Covid-19 outbreak. The outbreak has caused some disruption to the company’s business to date, through reduced fuel sales as a direct result of travel restrictions imposed by the government. The director considers it unlikely that a prolonged outbreak will cause significant disruption. The site remains fully functional at this time, precautions have been put in place to ensure health and safety is being maintained during this period in accordance with government guidelines. Accordingly, at the time of approving the financial statements, the director has a reasonable expectation that the company has adequate resources to continue in operation for the foreseeable future due to the continued support of its immediate and ultimate parent undertakings. Thus the director continues to adopt the going concern basis of accounting in preparing the financial statements.
1.3
Reporting period
The accounting reference date was shortened from 19 December 2020 to 30 April 2020 for group reporting purposes. The comparative figures are for the period from 1 October 2018 to 19 December 2019.
1.4
Turnover
Turnover is recognised at the fair value of the consideration received or receivable for goods provided in the normal course of business
, and
is shown net of VAT and other sales related taxes
.
Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer
,
the amount of revenue can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the entity and the costs incurred or to be incurred in respect of the transaction can be measured reliably.
1.5
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.
LINVICK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 30 APRIL 2020
1
Accounting policies
(Continued)
- 4 -
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:
Freehold land
nil
Building
2% straight line
Plant and equipment
20% & 25% reducing balance
Fixtures and fittings
15% reducing balance
Freehold land is not depreciated.
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
.
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.
1.7
Stocks
The stock figure per the accounts is comprised of wet stock, i.e. fuel.
Wet stock is valued using the first-in first-out method.
At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.
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.
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.
LINVICK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 30 APRIL 2020
1
Accounting policies
(Continued)
- 5 -
Basic financial liabilities
Basic financial liabilities, including creditors, bank loans
and
loans from
fellow group companies, 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.
Changes in the fair value of derivatives that are designated and qualify as fair value hedges are recognised in profit or loss immediately, together with any changes in the fair value of the hedged asset or liability that are attributable to the hedged risk.
1.9
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.
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.
1.10
Capital contribution reserve
The capital contribution reserve relates to the difference between the loan repayment on the 19 December 2019 and the loan creditor at 17 December 2019 following the acquisition of the company.
1.11
Business rates holidays received are set off against the applicable rate expense for the period covered by the holiday.
LINVICK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 30 APRIL 2020
- 6 -
2
Employees
The average monthly number of persons (including directors) employed by the company during the period was:
2020
2019
Number
Number
Total
-
26
3
Tangible fixed assets
Land and buildings
Plant and machinery etc
Total
£
£
£
Cost or valuation
At 20 December 2019
1,495,475
478,792
1,974,267
Additions
-
8,566
8,566
Revaluation
3,504,525
-
3,504,525
At 30 April 2020
5,000,000
487,358
5,487,358
Depreciation and impairment
At 20 December 2019
252,227
393,656
645,883
Depreciation charged in the period
25,038
5,695
30,733
Revaluation
(252,227)
-
(252,227)
At 30 April 2020
25,038
399,351
424,389
Carrying amount
At 30 April 2020
4,974,962
88,007
5,062,969
At 19 December 2019
1,243,248
85,136
1,328,384
The freehold land and building was valued in January 2020 by Knight Frank, a firm of independent valuers, on a market value
basis. This gave rise to an increase in valuation of £3,504,525, from £1,495,475 to £5,000,000.
Land and buildings are carried at valuation.
If land and buildings were measured using the cost model, the carrying amounts
would
have been approximately £1,232,032 (2019: £1,243,248), being cost £1,495,475 (2019: £1,495,475) and depreciation £263,443 (2020: £252,227).
4
Debtors
2020
2019
Amounts falling due within one year:
£
£
Trade debtors
19,456
35,208
Amounts owed by group undertakings
39,320
-
Other debtors
12,123
32,216
70,899
67,424
LINVICK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 30 APRIL 2020
4
Debtors
(Continued)
- 7 -
5
Creditors: amounts falling due within one year
2020
2019
£
£
Bank loans and overdrafts
-
1,106,286
Trade creditors
135,306
153,272
Amounts owed to group undertakings
993,508
-
Corporation tax
72,654
37,009
Other taxation and social security
39,708
22,155
Other creditors
7,433
13,993
1,248,609
1,332,715
6
Audit report information
As the income statement has been omitted from the filing copy of the financial statements
,
the following information in relation to the audit report on the statutory financial statements is provided in accordance with s444(5B) of the Companies Act 2006
:
The auditor's report was unqualified.
The senior statutory auditor was Darshna Choudhury.
The auditor was HW Fisher LLP.
7
Financial commitments, guarantees and contingent liabilities
There is a fixed and floating charge over the company's freehold land and building in favour of the lender to the immediate parent company.
8
Parent company
The ultimate parent undertaking is Platinum Retail Limited, a company incorporated in the United Kingdom, whose registered office address is The Hollies, Chorleywood Road, Rickmansworth, Hertfordshire, WD3 4ER.
The immediate parent undertaking is J Bros (Investments) Limited, a company incorporated in the United Kingdom, whose registered office address is Apollo House Isis Way, Minerva Business Park, Lynch Wood, Peterborough, England, PE2 6QR.
The ultimate controlling party is S R Sejpal.
The results of the company are included in the consolidated accounts of Platinum Retail Limited, which are publicly available from Companies House.