Company registration number 02363622 (England and Wales)
ROYAL DOCKS MANAGEMENT AUTHORITY LIMITED
FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023
PAGES FOR FILING WITH REGISTRAR
ROYAL DOCKS MANAGEMENT AUTHORITY LIMITED
CONTENTS
Page
Balance sheet
1
Notes to the financial statements
2 - 6
ROYAL DOCKS MANAGEMENT AUTHORITY LIMITED
BALANCE SHEET
AS AT
31 MARCH 2023
31 March 2023
- 1 -
2023
2022
Notes
£
£
£
£
Fixed assets
Tangible assets
6
75,569
78,486
Current assets
Debtors
7
4,799,389
244,334
Cash at bank and in hand
2,200,863
2,352,122
7,000,252
2,596,456
Creditors: amounts falling due within one year
8
(6,816,707)
(2,326,787)
Net current assets
183,545
269,669
Total assets less current liabilities
259,114
348,155
Provisions for liabilities
(111,910)
(200,951)
Net assets
147,204
147,204
Capital and reserves
Called up share capital
9
1,000
1,000
Other reserves
146,204
146,204
Total equity
147,204
147,204
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 14 July 2023 and are signed on its behalf by:
D Miles
Director
Company Registration No. 02363622
ROYAL DOCKS MANAGEMENT AUTHORITY LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023
- 2 -
1
Accounting policies
Company information
Royal Docks Management Authority Limited is a private company limited by shares incorporated in England and Wales. The registered office is Pierhead, King George V Lock, Fishguard Way, London, E16 2RG.
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 presented in sterling, which is the functional currency of the company. Monetary amounts 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
Turnover
Service charges are accounted for on a receivable basis and are charged according to budgeted expenditure for the accounting period, approved by the board. Under-recovery of service charges is recorded as debtors and over-recovery of service charges is shown as creditors.
Other rental income is also accounted for on a receivable basis and charged according to the contractually agreed rate over the accounting period.
Revenue from mooring fees, whether incurred directly by clients or recharged to tenants responsible for the building projects undertaken at the docks, is recognised at the point the fees are incurred.
The company also recognises revenue from a number of other sources, such as events, hospitality, dock access charges and vessel maintenance. Other revenue is accounted for on a receivable basis.
1.3
Tangible fixed assets
Tangible fixed assets are measured at cost, net of depreciation and any impairment losses.
Depreciation is recognised so as to write off the cost of assets less their residual values over their useful lives on the following bases:
Plant and machinery
25% on a straight line basis
Fixtures, fittings & equipment
33% on a straight line basis
Computer equipment
33% on a straight line basis
Motor vehicles
25% on a straight line basis
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.
1.4
Financial instruments
The company has elected to apply the provisions of Section 11 ”Basic Financial Instruments” 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.
ROYAL DOCKS MANAGEMENT AUTHORITY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
1
Accounting policies
(Continued)
- 3 -
Basic financial assets
Short term debtors and cash and bank balances are measured at transaction price less any provision for impairment.
Basic financial liabilities
Short term creditors are measured at transaction price.
1.5
Taxation
The tax expense represents the sum of the tax currently payable.
Current tax
The company is a non-profit making organisation and therefore the company is not subject to Corporation Tax on the surplus or deficit arising from mutual trading for its members. Corporation Tax is only applicable to profits or losses arising on commercial activities and on investment income. 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.
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.
1.6
Provisions
Provisions are recognised when the company has a legal or constructive present obligation as a result of a past event, it is probable that the company will be required to settle that obligation and a reliable estimate can be made of the amount of the obligation.
The amount recognised as a provision is the best estimate of the consideration required to settle the present obligation at the reporting end date, taking into account the risks and uncertainties surrounding the obligation.
1.7
Employee benefits
The costs of short-term employee benefits are recognised as a liability and an expense. The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.
1.8
Retirement benefits
The company operates a defined contribution scheme for the benefit of its employees. Contributions payable are charged to the profit and loss account in the year they are payable.
1.9
This represents allocations of excess service charges and other activities towards the future cost of repairs and maintenance.
ROYAL DOCKS MANAGEMENT AUTHORITY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 4 -
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.
Critical judgements
The following judgements (apart from those involving estimates) have had the most significant effect on amounts recognised in the financial statements.
Split of expenditure recognised against mutual trading and commercial income
The split of expenditure between mutual trading and commercial income requires judgement regarding the most appropriate allocation of expenditure. At each year end the directors allocate expenditure primarily based on the proportion of turnover that relates to commercial activities. Expenses that are deemed to be wholly in respect of mutual trading or wholly in respect of commercial activities are allocated as such and not split on this basis.
3
Exceptional income
During the year £3,828,124 of revenue of exceptional size or incidence was recorded, relating to a one off contribution towards the company’s service charges and asset repair programme as described in the Water Management Lease arising from an agreement with its major shareholder.
4
Operating loss
During the year the company recharged insurance costs of £98,649 (2022 - £98,649) to leaseholders. The recharges have been offset against insurance costs as the directors believe these to be a cost reimbursement and reduction of cost rather than being a component of turnover.
The directors are of the opinion that the above accounting treatment reflects the true substance of the transactions and so departure from the general requirements of the Companies Act 2006 not to set off income against expenditure is required to reflect a true and fair view.
5
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2023
2022
Number
Number
Total
15
16
ROYAL DOCKS MANAGEMENT AUTHORITY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 5 -
6
Tangible fixed assets
Plant and machinery etc
£
Cost
At 1 April 2022
420,068
Additions
41,177
At 31 March 2023
461,245
Depreciation and impairment
At 1 April 2022
341,582
Depreciation charged in the year
44,094
At 31 March 2023
385,676
Carrying amount
At 31 March 2023
75,569
At 31 March 2022
78,486
7
Debtors
2023
2022
Amounts falling due within one year:
£
£
Trade debtors
4,769,268
210,756
Corporation tax recoverable
23,082
20,772
Other debtors
7,039
12,806
4,799,389
244,334
8
Creditors: amounts falling due within one year
2023
2022
£
£
Trade creditors
227,957
436,884
Taxation and social security
822,711
40,696
Other creditors
5,766,039
1,849,207
6,816,707
2,326,787
A contingent liability arises in respect of the requirement to refurbish the King George V Lock and additional assets in accordance with the lease provisions. The cost of such refurbishment is not yet agreed, but is anticipated to be in the region of £5,000,000 over the next 9 years for the King George V lock and in the region of £5,000,000 for additional assets over the same period.
Included within other creditors is a surplus of £5,363,847 (2022 - £1,553,919) available for set-off against this and other future expenditure.
ROYAL DOCKS MANAGEMENT AUTHORITY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 6 -
9
Called up share capital
2023
2022
2023
2022
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
999
999
999
999
Special share of £1 each
1
1
1
1
1,000
1,000
1,000
1,000
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.
Senior Statutory Auditor:
Adam Stronach
Statutory Auditor:
Harwood Hutton Limited