Company Registration No. 01647795 (England and Wales)
LINVICK LIMITED
FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 APRIL 2021
PAGES FOR FILING WITH REGISTRAR
LINVICK LIMITED
CONTENTS
Page
Balance sheet
1
Statement of changes in equity
2
Notes to the financial statements
3 - 8
LINVICK LIMITED
BALANCE SHEET
AS AT
30 APRIL 2021
30 April 2021
- 1 -
2021
2020
Notes
£
£
£
£
Fixed assets
Tangible assets
4
4,975,407
5,062,969
Current assets
Stocks
37,252
31,897
Debtors
5
87,829
70,899
Cash at bank and in hand
371,483
146,568
496,564
249,364
Creditors: amounts falling due within one year
6
(1,121,195)
(1,248,609)
Net current liabilities
(624,631)
(999,245)
Total assets less current liabilities
4,350,776
4,063,724
Provisions for liabilities
(581,073)
(602,014)
Net assets
3,769,703
3,461,710
Capital and reserves
Called up share capital
100
100
Revaluation reserve
3,112,024
3,153,247
Capital contribution reserve
50,427
50,427
Profit and loss reserves
607,152
257,936
Total equity
3,769,703
3,461,710
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 and signed by the director and authorised for issue on 27 January 2022
S R Sejpal
Director
Company Registration No. 01647795
LINVICK LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 APRIL 2021
- 2 -
Share capital
Revaluation reserve
Capital contribution reserve
Profit and loss reserves
Total
£
£
£
£
£
Balance at 20 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
Year ended 30 April 2021:
Profit for the year
-
-
-
286,135
286,135
Other comprehensive income:
Tax relating to other comprehensive income
-
21,858
-
21,858
Total comprehensive income for the year
21,858
286,135
307,993
Transfers
-
(63,081)
-
63,081
-
Balance at 30 April 2021
100
3,112,024
50,427
607,152
3,769,703
LINVICK LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 APRIL 2021
- 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. The principal accounting policies adopted are set out below.
1.2
Going concern
The company has net current liabilities of £
true
624,631
after taking into account an amount, included in amounts owed to group undertakings, of £
792,027
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 continues to consider the effect of the Covid-19 pandemic. The pandemic caused some disruption to the company’s business, through reduced fuel sales as a direct result of travel restrictions imposed by the government, however, the site remained fully functional during the year. 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 comparative figures are for the period from 20 December 2019 to 30 April 2020. The current period figures are for the year ended 30 April 2021.
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.
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
LINVICK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2021
1
Accounting policies
(Continued)
- 4 -
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 YEAR ENDED 30 APRIL 2021
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.
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 YEAR ENDED 30 APRIL 2021
- 6 -
2
Judgements and key sources of estimation uncertainty
In the application of the company’s accounting policies, the director is 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.
Recoverability of intercompany debtor
Amounts owed from a group company are assessed for the recoverability of the balance. Given the profitable trading in this group company, the director believes the balance is recoverable.
Key sources of estimation uncertainty
The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are
as follows.
Valuation of property
The property held within tangible fixed assets was valued on a market basis by professional valuers in January 2020. There has been no formal valuation in the current year. The director believes the property's value remains in line with the formal valuation in January 2020. This is based upon a profits method, dictated by the trading history and fair maintainable trade of the properties and supplemented by the directors industry experience and economic factors.
Depreciation on freehold building
The company recognises depreciation at 2% straight line on its freehold building. The land value attributed to the company's land and building has been estimated at 10%, therefore depreciation is only charged on the remaining 90% which is the estimated cost of the building.
Deferred tax
Deferred tax is calculated at the expected future tax rate. Tax rates are subject to change and thus this estimate is subject to change in future periods.
3
Employees
There were no employees in the current year or prior period.
LINVICK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2021
- 7 -
4
Tangible fixed assets
Land and buildings
Plant and machinery etc
Total
£
£
£
Cost or valuation
At 1 May 2020
5,000,000
487,358
5,487,358
Additions
22,460
22,460
At 30 April 2021
5,000,000
509,818
5,509,818
Depreciation and impairment
At 1 May 2020
25,038
399,351
424,389
Depreciation charged in the year
90,000
20,022
110,022
At 30 April 2021
115,038
419,373
534,411
Carrying amount
At 30 April 2021
4,884,962
90,445
4,975,407
At 30 April 2020
4,974,962
88,007
5,062,969
The freehold land and building was valued in January 2020 by a firm of independent valuers, on a market value basis. The director does not consider there to be a material change to the valuation of freehold property as at 30 April 2021.
Land and buildings are carried at valuation.
If land and buildings were measured using the cost model, the carrying amounts
would
have been approximately £1,205,113 (2020: £1,232,032), being cost £1,495,475 (2020: £1,495,475) and depreciation £290,362 (2020: £263,443).
5
Debtors
2021
2020
Amounts falling due within one year:
£
£
Trade debtors
37,378
19,456
Amounts owed by group undertakings
49,880
39,320
Other debtors
571
12,123
87,829
70,899
LINVICK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2021
- 8 -
6
Creditors: amounts falling due within one year
2021
2020
£
£
Trade creditors
159,975
135,306
Amounts owed to group undertakings
833,449
993,508
Corporation tax
87,693
72,654
Other taxation and social security
31,149
39,708
Other creditors
8,929
7,433
1,121,195
1,248,609
7
Provisions for liabilities
2021
2020
£
£
Deferred tax liabilities
581,073
602,014
8
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.
9
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 company's bank, who is also the lender to the immediate parent company.
The company forms part of a composite guarantee with its parent company, J Bros (Investments) Limited and fellow subsidiary company, R. O'Leary Limited.
10
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 The Hollies, Chorleywood Road, Rickmansworth, England, WD3 4ER.
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.