Company Registration No. 01990062 (England and Wales)
Helmsley Securities Limited
Financial Statements
For The Year Ended 30 September 2019
HELMSLEY SECURITIES LIMITED
Helmsley Securities Limited
COMPANY INFORMATION
Directors
Mr W J G Reeves
Mr R J M Peak
Mrs S A Jones
Mr M R J Reeves
Mr E B A Harrowsmith
(Appointed 9 April 2019)
Secretary
Mr R J M Peak
Company number
01990062
Registered office
Colenso House
1 Omega Monks Cross Drive
Huntington
York
YO32 9GZ
Auditor
Garbutt & Elliott Audit Limited
Triune Court
Monks Cross Drive
York
YO32 9GZ
HELMSLEY SECURITIES LIMITED
Helmsley Securities Limited
CONTENTS
Page
Balance sheet
1
Notes to the financial statements
2 - 7
HELMSLEY SECURITIES LIMITED
Helmsley Securities Limited
BALANCE SHEET
AS AT
30 SEPTEMBER 2019
30 September 2019
- 1 -
2019
2018
Notes
£
£
£
£
Fixed assets
Investment properties
3
116,000
116,000
Investments
4
1,270,000
1,892,312
1,386,000
2,008,312
Current assets
Stocks
811,441
1,500,131
Debtors
5
301,975
476,634
Cash at bank and in hand
355,274
442,458
1,468,690
2,419,223
Creditors: amounts falling due within one year
6
(2,124,965)
(3,436,170)
Net current liabilities
(656,275)
(1,016,947)
Total assets less current liabilities
729,725
991,365
Capital and reserves
Called up share capital
2
2
Profit and loss reserves
729,723
991,363
Total equity
729,725
991,365
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 21 February 2020 and are signed on its behalf by:
Mr R J M Peak
Director
Company Registration No. 01990062
HELMSLEY SECURITIES LIMITED
Helmsley Securities Limited
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2019
- 2 -
1
Accounting policies
Company information
Helmsley Securities Limited is a
private
company
limited by shares
incorporated in England and Wales.
The registered office is
Colenso House, 1 Omega Monks Cross Drive, Huntington, York, YO32 9GZ.
1.1
Accounting convention
These financial statements have been prepared in accordance with “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 £
1
.
The financial statements have been prepared under the historical cost convention, modified to include investment properties and certain financial instruments at fair value. The principal accounting policies adopted are set out below.
The ultimate parent company is Colenso Holdings Limited. The registered office of Colenso Holdings Limited is Colenso House, 1 Omega Monks Cross Drive, Huntington, York, YO32 9GZ. The company and its parent comprise a small group and as such are exempt from preparing group accounts.
1.2
Going concern
A
true
t the time of approving the financial statements
,
t
he directors have a reasonable expectation that the
company
has adequate resources to continue in operational existence for the foreseeable future. Thus
t
he directors continue to adopt the going concern basis of accounting in preparing the financial statements.
1.3
Turnover
Turnover is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business
, and
is shown net of VAT and other sales related taxes
.
The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.
Property sales are included upon exchange and fees receivable are recognised per the terms of the individual agreements. The company's share of profit from partnership property developments is included as per the individual partnership accounts.
1.4
Investment properties
Investment property, which is property held to earn rentals and/or for capital appreciation, is initially recognised at cost, which includes the purchase cost and any directly attributable expenditure
. Subsequently it is measured
at fair value a
t
the reporting end date.
Changes in fair value are recognised in profit or loss.
Where fair value cannot be achieved without undue cost or effort, investment property is accounted for as tangible fixed assets.
1.5
Fixed asset investments
Interests in subsidiaries, associates and jointly controlled entities are initially measured at cost and subsequently measured at cost less any accumulated impairment losses.
The investments are assessed for impairment at each reporting date
and
any
impairment
losses or reversals of impairment losses are recognised immediately in profit or loss.
A subsidiary is an entity controlled by the company
. Control is
the power to govern the financial and operating policies of
the
entity so as to obtain benefits from its activities.
HELMSLEY SECURITIES LIMITED
Helmsley Securities Limited
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2019
1
Accounting policies
(Continued)
- 3 -
An associate is an entity, being neither a subsidiary nor a joint venture, in which the company holds a long-term interest and where the company has significant influence. The company considers that it has significant influence where it has the power to participate in the financial and operating decisions of the associate.
Entities in which the company has a long term interest and shares control under a contractual arrangement are classified as jointly controlled entities
.
1.6
Stocks
Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost
is included as per contractors' valuation certificates plus associated expenses.
Development stocks are interests in land and buildings in respect of which development has not been completed. Stock properties include minor participations in completed freehold property that are held on a short term basis. Joint venture developments stocks are the company's share of sites developed under joint arrangements with other companies.
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.
1.7
Cash and cash equivalents
Cash and cash equivalents
are basic financial assets
and
include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.
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.
HELMSLEY SECURITIES LIMITED
Helmsley Securities Limited
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2019
1
Accounting policies
(Continued)
- 4 -
Impairment of financial assets
Financial assets, other than those
held
at
fair value through profit and loss
, are assessed for indicators of impairment at each reporting end date.
Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected.
If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.
If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.
Derecognition of financial assets
Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when
the company
transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.
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.
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.
Derecognition of financial liabilities
Financial liabilities are derecognised when the company’s contractual obligations
expire or are discharged or cancelled.
1.9
Equity instruments
Equity instruments issued by the company are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.
1.10
Taxation
The tax expense represents the sum of the tax currently payable and deferred tax.
HELMSLEY SECURITIES LIMITED
Helmsley Securities Limited
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2019
1
Accounting policies
(Continued)
- 5 -
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.
1.11
Leases
Rental income from operating leases is recognised on a straight line basis over the term of the relevant lease. Initial direct costs incurred in negotiating and arranging an operating lease are added to the carrying amount of the leased asset and recognised on a straight line basis over the lease term.
1.12
The financial statements of the company include its share of the assets in joint operations, together with its share of the liabilities, revenues and expenses arising jointly or otherwise from those operations and its revenue derived from the sale of its share of output from the joint operation. All such amounts are measured in accordance with the terms of each arrangement, which are usually in proportion to the company's interest in the joint operation.
2
Employees
The average monthly number of persons (including directors) employed by the company during the year was 4 (2018 - 4
).
3
Investment property
2019
£
Fair value
At 1 October 2018 and 30 September 2019
116,000
The fair value of the investment properties has been arrived at from the acquisition cost paid by the company in 2017 and 2018. The acquisitions were from unconnected third parties and as such the cost is deemed to represent the fair value of the interest in the properties.
The directors do not believe that there has been a material change in the value of the investment properties.
HELMSLEY SECURITIES LIMITED
Helmsley Securities Limited
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2019
- 6 -
4
Fixed asset investments
2019
2018
£
£
Investments
1,270,000
1,892,312
Movements in fixed asset investments
Shares in group undertakings
Other investments other than loans
Total
£
£
£
Cost or valuation
At 1 October 2018 & 30 September 2019
1,720,000
172,312
1,892,312
Impairment
At 1 October 2018
-
-
-
Impairment losses
450,000
172,312
622,312
At 30 September 2019
450,000
172,312
622,312
Carrying amount
At 30 September 2019
1,270,000
-
1,270,000
At 30 September 2018
1,720,000
172,312
1,892,312
5
Debtors
2019
2018
Amounts falling due within one year:
£
£
Trade debtors
6,847
120,655
Other debtors
295,128
355,979
301,975
476,634
HELMSLEY SECURITIES LIMITED
Helmsley Securities Limited
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2019
- 7 -
6
Creditors: amounts falling due within one year
2019
2018
£
£
Trade creditors
101,238
67,727
Amounts owed to group undertakings
172,975
90,924
Taxation and social security
162,900
154,090
Other creditors
1,687,852
3,123,429
2,124,965
3,436,170
Included in other creditors is a £1,300,000 (2018 - £1,750,000) loan, received from an unconnected third party, which is secured on the properties held in the subsidiary company, Zipcrown Limited.
7
Financial commitments, guarantees and contingent liabilities
The company is party to an unlimited composite guarantee with Helmsley Acceptances Limited and Helmsley Group Limited amounting to £196,393 (2018 - £59,305).
8
Client accounts
At 30 September 201
9
, the company held funds in duly designated bank accounts for which no right of set off exists. These funds belong to clients which the company has no entitlement to therefore these balances are not included in the financial statements
9
Subsidiaries
Details of the company's subsidiaries at 30 September 2019 are as follows:
Name of undertaking
Registered office
Nature of business
Class of
% Held
shares held
Direct
Indirect
Zipcrown Limited
England and Wales
Investment properties
Ordinary
100.00
The registered office for Zipcrown Limited is Colenso House, 1 Omega Monks Cross Drive, Huntington, York, YO32 9GZ.
10
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 Martin Davey.
The auditor was Garbutt & Elliott Audit Limited.
The audit report was signed on 2 March 2020