Company registration number 01712730 (England and Wales)
DEVON & CORNWALL SECURITIES LIMITED
FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 APRIL 2022
PAGES FOR FILING WITH REGISTRAR
DEVON & CORNWALL SECURITIES LIMITED
COMPANY INFORMATION
Directors
Mr D Sproull
Mr D M Sproull
Company number
01712730
Auditor
Phillips Frith LLP
9 Tregarne Terrace
St Austell
Cornwall
PL25 4DD
DEVON & CORNWALL SECURITIES LIMITED
CONTENTS
Page
Balance sheet
1
Notes to the financial statements
2 - 5
DEVON & CORNWALL SECURITIES LIMITED
BALANCE SHEET
AS AT
30 APRIL 2022
30 April 2022
- 1 -
2022
2021
Notes
£
£
£
£
Current assets
Loans to customers
4
25,534,438
27,114,901
Debtors
5
497,955
318,058
Cash at bank and in hand
3,357,695
2,013,682
29,390,088
29,446,641
Creditors: amounts falling due within one year
6
(24,120,484)
(23,884,279)
Net current assets
5,269,604
5,562,362
Creditors: amounts falling due after more than one year
7
(300,000)
(1,168,333)
Net assets
4,969,604
4,394,029
Capital and reserves
Called up share capital
9
100,000
100,000
Profit and loss reserves
4,869,604
4,294,029
Total equity
4,969,604
4,394,029
The directors of the company have 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 8 July 2022 and are signed on its behalf by:
Mr D Sproull
Director
Company Registration No. 01712730
DEVON & CORNWALL SECURITIES LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 APRIL 2022
- 2 -
1
Accounting policies
Company information
Devon & Cornwall Securities Limited is a
private
company
limited by shares
incorporated in
England and Wales
.
The registered office is
8 Fore Street, Camelford, Cornwall, PL32 9PG.
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. The principal accounting policies adopted are set out below.
1.2
Going concern
At the time of approving the financial statements, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.
1.3
Turnover
Turnover is measured at the fair value of the consideration received or receivable.
Turnover consists of the amount of interest, adjusted for accrued and deferred income, earned during the year on mortgage loans advanced, plus the amounts of fees
and
other trading income during the year.
1.4
Cash at bank and in hand
Cash at bank and in hand
are basic financial assets
and
include cash in hand, deposits held at call with banks
and
other short-term liquid investments with original maturities of three months or less
.
1.5
Financial instruments
Impairment of financial assets
Specific provisions are made against mortgage loans on a case by case basis. Anticipated losses take into account the current achievable market value of the security and amounts recoverable from third parties.
Classification of financial liabilities
Financial liabilities are classified according to the substance of the contractual arrangements entered into.
Basic financial liabilities, including
creditors
, bank loans, loans from
fellow group companies and preference shares 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.
Debtors and creditors receivable/payable within one year
Debtors and creditors with no stated interest rate and receivable or payable within one year are recorded at transaction price. Any losses arising from impairment are recognised in the profit and loss account in other administrative expenses.
1.6
Taxation
The tax expense represents the sum of the tax currently payable and deferred tax.
DEVON & CORNWALL SECURITIES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2022
1
Accounting policies
(Continued)
- 3 -
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.
1.7
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
1.8
Government grants
Government grants are recognised at the fair value of the asset receive
d
or receivable when there is reasonable assurance that the grant conditions will be met and the grants will be received.
A grant that specifies performance conditions is recognised in income when the performance conditions are met
. Where a
grant does not specify performance conditions
it
is recognised in income when the proceeds are received or receivable
. A grant received before the recognition criteria are satisfied is recognised as a liability.
2
Judgements and key sources of estimation uncertainty
In the application of the company’s accounting policies, the directors are 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.
Bad debt provisions
Outstanding loan capital and interest arrears are reviewed by the directors at the year end and provisions for any specific doubtful debts are included in the financial statements. Calculation of these provisions requires judgements to be made about the amount recoverable on each loan.
3
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2022
2021
Number
Number
Total
10
9
4
Loans to customers
The balance in the financial statements represents the capital sum due to the company in respect of loans advanced (which are generally secured by first mortgages on freehold property) to individuals and private limited companies, less a provision for doubtful debts.
DEVON & CORNWALL SECURITIES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2022
- 4 -
5
Debtors
2022
2021
Amounts falling due within one year:
£
£
Trade debtors
484,959
304,888
Other debtors
12,996
13,170
497,955
318,058
6
Creditors: amounts falling due within one year
2022
2021
£
£
Bank loans (secured)
17,800,208
16,722,813
Taxation and social security
155,306
189,756
Other creditors
6,164,970
6,971,710
24,120,484
23,884,279
The bank loan is secured by fixed and floating charges over the whole assets of the company.
7
Creditors: amounts falling due after more than one year
2022
2021
£
£
Bank loans and overdrafts
868,333
Other creditors
300,000
300,000
300,000
1,168,333
Long term other creditors comprise unsecured loan stock due for repayment in 2025.
8
Related party transactions
The company has benefited from security given by related parties in the form of deeds of postponement in respect of other creditors of £5,729,000.
The company was a wholly owned subsidiary of Devon & Cornwall Holdings Ltd and has taken advantage of the exemption under FRS102 Section 33 not to disclose group transactions.
9
Called up share capital
2022
2021
2022
2021
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
100,000
100,000
100,000
100,000
DEVON & CORNWALL SECURITIES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2022
- 5 -
10
Retirement benefit schemes
2022
2021
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
7,624
4,909
At the balance sheet date, unpaid contributions of £
1,835
(20
21
: £
927
) were due to the fund. These are included in other creditors.
11
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 Amy Sole and the auditor was Phillips Frith LLP.
12
Operating lease commitments
At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, as follows:
2022
2021
£
£
26,664
3,472
13
Parent company
The ultimate parent company was Devon & Cornwall Holdings Ltd, a company registered in England and Wales which holds 100% of the issued share capital of Devon & Cornwall Securities Limited.