Amalgamated (Industrial Park) Limited
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Statement of Directors' Responsibilities |
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The directors are responsible for preparing the report and accounts in accordance with applicable law and regulations. |
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Company law requires the directors to prepare accounts for each financial year. Under that law the directors have elected to prepare the accounts in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the accounts unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these accounts, the directors are required to: |
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select suitable accounting policies and then apply them consistently; |
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make judgements and estimates that are reasonable and prudent; |
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prepare the accounts on the going concern basis unless it is inappropriate to presume that the company will continue in business. |
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The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company's transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the accounts comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. |
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Amalgamated (Industrial Park) Limited
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Independent auditors' report |
to the shareholders of Amalgamated (Industrial Park) Limited |
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We have audited the accounts of Amalgamated (Industrial Park) Limited for the year ended 31 May 2016 which comprise the Profit and Loss Account, the Balance Sheet and the related notes. The financial reporting framework that has been applied in their preparation is applicable law and the Financial Reporting Standard For Smaller Entities (effective January 2015) (United Kingdom Generally Accepted Accounting Practice applicable to Smaller Entities). |
This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in an auditors' report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's members as a body, for our audit work, for this report, or for the opinions we have formed. |
Respective responsibilities of directors and auditors |
As explained more fully in the Statement of Directors' Responsibilities, the directors are responsible for the preparation of the accounts and for being satisfied that they give a true and fair view. Our responsibility is to audit and express an opinion on the accounts in accordance with applicable law and International Standards on Auditing (UK and Ireland). Those standards require us to comply with the Auditing Practices Board's (APB's) Ethical Standards for Auditors. |
Scope of the audit of the accounts |
A description of the scope of an audit of financial statements is provided on the APB’s website at www.frc.org.uk/apb/scope/private.cfm |
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Opinion on other matters prescribed by the Companies Act 2006 |
In our opinion the information given in the Directors' Report for the financial year for which the accounts are prepared is consistent with the accounts. |
Matters on which we are required to report by exception |
We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion: |
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adequate accounting records have not been kept; or |
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the accounts are not in agreement with the accounting records and returns; or |
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certain disclosures of directors’ remuneration specified by law are not made; or |
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we have not received all the information and explanations we require for our audit; or |
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the directors were not entitled to prepare the accounts and the directors' report in accordance with the small companies regime. |
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Roy A Warren
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(Senior Statutory Auditor) |
5-6 George Street
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for and on behalf of |
Warren Clare
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St Albans
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Accountants and Statutory Auditors |
Hertfordshire
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24 November 2016
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AL3 4ER
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Amalgamated (Industrial Park) Limited
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Notes to the Accounts |
for the year ended 31 May 2016
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1 |
Accounting policies |
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Basis of preparation |
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The accounts have been prepared under the historical cost convention and in accordance with the Financial Reporting Standard for Smaller Entities (effective January 2015).
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Turnover |
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Turnover represents the value, net of value added tax and discounts, of rental income and service charges receivable in the year.
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Investment Properties |
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Investment Properties are valued by the directors on the basis of a multiple of net rental income. No account has been taken of expenses of realisation nor for any taxation that may arise in the event of a disposal |
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The company's property is held for long term investment. In accordance with the Financial Reporting Standard for Smaller Entities (effective January 2015): |
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(i) the property is revalued annually and the aggregate surplus or deficit is transferred to a revaluation reserve; and |
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(ii) no depreciation is provided in respect of the property as the directors consider that to depreciate it would not give a true and fair view. This is a departure from the requirements of the Companies Act 2006 which requires all properties to be depreciated. |
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Depreciation is only one among payments reflected in the annual valuation of properties and accordingly the amount of depreciation which might otherwise have been charged cannot be separately identified or quantified. The directors consider that this policy results in the financial statements giving a true and fair view. |
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Depreciation |
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Depreciation has been provided at the following rates in order to write off the assets over their estimated useful lives. |
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Plant and machinery |
20% reducing balance
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Motor vehicles |
25% reducing balance
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Deferred taxation |
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Full provision is made for deferred taxation resulting from timing differences between the recognition of gains and losses in the accounts and their recognition for tax purposes. Deferred taxation is calculated on an un-discounted basis at the tax rates which are expected to apply in the periods when the timing differences will reverse. |
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2 |
Operating profit |
2016 |
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2015 |
£ |
£ |
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This is stated after charging: |
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Depreciation of owned fixed assets |
12,492 |
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8,179 |
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Auditors' remuneration |
4,000 |
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4,500 |
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3 |
Interest payable |
2016 |
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2015 |
£ |
£ |
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On bank loans and overdrafts |
73,710 |
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90,264 |
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On loans from group undertakings |
81,145 |
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87,664 |
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154,855 |
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177,928 |
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4 |
Tangible fixed assets |
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Land and buildings |
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Plant and machinery etc |
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Total |
£ |
£ |
£ |
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Cost or valuation |
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At 1 June 2015 |
4,466,046 |
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300,447 |
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4,766,493 |
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Additions |
433,575 |
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28,383 |
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461,958 |
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At 31 May 2016 |
4,899,621 |
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328,830 |
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5,228,451 |
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Depreciation |
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At 1 June 2015 |
- |
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265,771 |
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265,771 |
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Charge for the year |
- |
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12,492 |
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12,492 |
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At 31 May 2016 |
- |
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278,263 |
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278,263 |
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Net book value |
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At 31 May 2016 |
4,899,621 |
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50,567 |
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4,950,188 |
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At 31 May 2015 |
4,466,046 |
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34,676 |
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4,500,722 |
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Freehold land and buildings: |
2016 |
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2015 |
£ |
£ |
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Historical cost |
2,780,542 |
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2,346,967 |
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5 |
Debtors |
2016 |
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2015 |
£ |
£ |
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Trade debtors |
24,952 |
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62,219 |
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Other debtors |
57,368 |
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122,536 |
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82,320 |
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184,755 |
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6 |
Creditors: amounts falling due within one year |
2016 |
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2015 |
£ |
£ |
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Bank loans and overdrafts |
293,780 |
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293,776 |
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Trade creditors |
97,005 |
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30,014 |
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Accruals and deferred income |
63,801 |
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58,046 |
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Other creditors |
- |
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38,518 |
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454,586 |
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420,354 |
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7 |
Creditors: amounts falling due after one year |
2016 |
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2015 |
£ |
£ |
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Bank loans |
2,236,567 |
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2,190,489 |
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Amounts owed to group undertakings and undertakings in which the company has a participating interest |
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1,358,419 |
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1,116,878 |
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3,594,986 |
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3,307,367 |
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Amounts owed to group undertakings are subject to interest charged at the rate of 6.75% on the average balance outstanding during the year. |
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8 |
Loans |
2016 |
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2015 |
£ |
£ |
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Creditors include: |
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Amounts falling due for payment after more than five years |
806,449 |
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1,468,880 |
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Secured bank loans |
2,530,347 |
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2,484,264 |
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9 |
Share capital |
Nominal |
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2016 |
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2016 |
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2015 |
value |
Number |
£ |
£ |
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Allotted, called up and fully paid: |
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Ordinary shares
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£1 each |
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2 |
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2 |
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2 |
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10 |
Revaluation reserve |
2016 |
£ |
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At 1 June 2015 |
2,119,079 |
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At 31 May 2016 |
2,119,079 |
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11 |
Profit and loss account |
2016 |
£ |
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At 1 June 2015 |
(1,152,207) |
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Profit for the year |
243,601 |
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At 31 May 2016 |
(908,606) |
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12 |
Related party transactions |
2016 |
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2015 |
£ |
£ |
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Amalgamated Builders (Holdings) Limited
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Parent undertaking to Amalgamated (Industrial Park) Limited
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Management charges of £110,000 were invoiced by Amalgamated Builders (Holdings) Limited to Amalgamated (Industrial Park) Limited in the years to 31 May 2016 and 31 May 2015
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Amount due from (to) the related party |
(1,358,419) |
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(1,116,878) |
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Edward J Frazier Limited
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Related by virtue of director's shareholding in both companies
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During the year the company paid for services to the value of £67,869 (2015: £105,028) from Edward J Frazier Limited. These services were provided on normal commercial terms.
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13 |
Ultimate controlling party |
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The company is a 100% subsidiary of Amalgamated Builders (Holdings) Limited, a company incorporated in the United Kingdom, which is also the ultimate holding company.
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Copies of the holding company's accounts can be obtained from Companies House. |
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The ultimate holding company is controlled by AE Frazier (67%) and EL Frazier (25%) both being directors of Amalgamated (Industrial Park) Limited. |