Company Registration No. 02865680 (England and Wales)
MANUAL INVESTING LIMITED
UNAUDITED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 OCTOBER 2019
PAGES FOR FILING WITH REGISTRAR
MANUAL INVESTING LIMITED
CONTENTS
Page
Balance sheet
1 - 2
Notes to the financial statements
3 - 9
MANUAL INVESTING LIMITED
BALANCE SHEET
AS AT
31 OCTOBER 2019
31 October 2019
- 1 -
2019
2018
Notes
£
£
£
£
Fixed assets
Tangible assets
3
30,825
38,184
Investment properties
4
2,400,000
2,550,000
Investments
5
5,778,808
4,448,862
8,209,633
7,037,046
Current assets
Debtors
7
307,600
468,100
Cash at bank and in hand
15,454
21,668
323,054
489,768
Creditors: amounts falling due within one year
8
(5,738,483)
(5,012,694)
Net current liabilities
(5,415,429)
(4,522,926)
Total assets less current liabilities
2,794,204
2,514,120
Creditors: amounts falling due after more than one year
9
(306,667)
(365,951)
Provisions for liabilities
(59,337)
(30,742)
Net assets
2,428,200
2,117,427
Capital and reserves
Called up share capital
500
500
Share premium account
16,325
16,325
Capital redemption reserve
1,500
1,500
Profit and loss reserves
2,409,875
2,099,102
Total equity
2,428,200
2,117,427
MANUAL INVESTING LIMITED
BALANCE SHEET (CONTINUED)
AS AT
31 OCTOBER 2019
31 October 2019
- 2 -
The director of the company has elected not to include a copy of the profit and loss account within the financial statements.
true
For the financial year ended 31 October 2019 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.
The director acknowledges his responsibilities for complying with the requirements of the Companies Act 2006 with respect to accounting records and the preparation of financial statements.
T
he members have not required the company to obtain an audit of its financial statements for the year in question in accordance with section 476
.
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 29 July 2020
Mr R G Tizzard
Director
Company Registration No. 02865680
MANUAL INVESTING LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 OCTOBER 2019
- 3 -
1
Accounting policies
Company information
Manual Investing Limited is a
private
company
limited by shares
incorporated in England and Wales.
The registered office is
Barrow Hill House, Milborne Wick, Milborne Port, SHERBORNE, Dorset, DT9 4PP.
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 have been prepared with early application of
the
FRS 102 Triennial Review 2017 amendments in full.
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 and to include investment properties and certain financial instruments at fair value. The principal accounting policies adopted are set out below.
1.2
Going concern
In light of the current coronavirus pandemic, the director h
true
as
reviewed likely future developments and remain
s
of
the opinion that there is no reason to believe that the company will have to cease trading as a result of inadequate
financial resources, or any other foreseeable event, within a period of at least 12 months from the balance sheet
date.
1.3
Turnover
Turnover is recognised at the fair value of the
rent
received or receivable in
the normal course of business and is shown net of VAT and other sales related taxes
.
Revenue from the rental property, including revenue from service charges and other costs recharged to the tenant, is recognised over the period in which the tenant is occupying the property.
Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer
(usually on dispatch of the goods)
, 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.
1.4
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:
Fixtures, fittings & equipment
Straight line over 50 years
Office equipment
Straight line over 3 years
Motor vehicles
25% reducing balance
MANUAL INVESTING LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2019
1
Accounting policies
(Continued)
- 4 -
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
.
1.5
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.
The surplus or deficit on revaluation is recognised in profit or loss.
1.6
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.
1.7
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.
Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.
If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.
Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit)
in
prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.
1.8
Cash at bank and in hand
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.
MANUAL INVESTING LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2019
1
Accounting policies
(Continued)
- 5 -
1.9
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.
Basic financial liabilities
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.
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.
1.10
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.
Changes in the fair value of derivatives that are designated and qualify as fair value hedges are recognised in profit or loss immediately, together with any changes in the fair value of the hedged asset or liability that are attributable to the hedged risk.
1.11
Taxation
The tax expense represents the sum of the tax currently payable and deferred tax.
MANUAL INVESTING LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2019
1
Accounting policies
(Continued)
- 6 -
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.
1.12
Leases
Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessees. All other leases are classified as operating 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.
2
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2019
2018
Number
Number
Total
1
1
MANUAL INVESTING LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2019
- 7 -
3
Tangible fixed assets
Fixtures, fittings & equipment
Office equipment
Motor vehicles
Total
£
£
£
£
Cost
At 1 November 2018 and 31 October 2019
9,691
9,355
49,879
68,925
Depreciation and impairment
At 1 November 2018
356
8,563
21,822
30,741
Depreciation charged in the year
194
151
7,014
7,359
At 31 October 2019
550
8,714
28,836
38,100
Carrying amount
At 31 October 2019
9,141
641
21,043
30,825
At 31 October 2018
9,335
792
28,057
38,184
4
Investment properties
2019
£
Fair value
At 1 November 2018
2,550,000
Revaluations
(150,000)
At 31 October 2019
2,400,000
At 31 October 2019, the fair value of the properties in the financial statements was revised by the director based on his knowledge of the properties and documented trends in the local property market. During the year ended 31 October 2019, the revaluation in the year of £150,000 was debited to the profit and loss account (2018 - £175,000 credit).
5
Fixed asset investments
2019
2018
£
£
Investments
5,778,808
4,448,862
The directors consider that the carrying amounts of financial assets carried at amortised cost in the financial statements approximate to their fair values.
MANUAL INVESTING LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2019
5
Fixed asset investments
(Continued)
- 8 -
Movements in fixed asset investments
Shares in group undertakings
Other investments other than loans
Total
£
£
£
Cost or valuation
At 1 November 2018
15,936
4,432,926
4,448,862
Additions
-
1,515,173
1,515,173
Repayments
-
(39,368)
(39,368)
Disposals
-
(145,859)
(145,859)
At 31 October 2019
15,936
5,762,872
5,778,808
Carrying amount
At 31 October 2019
15,936
5,762,872
5,778,808
At 31 October 2018
15,936
4,432,926
4,448,862
6
Subsidiaries
Separate company financial statements are required to be prepared by law. The company is exempt from the requirement to prepare consolidated financial statements due to being subject to the small companies regime.
The investments in subsidiaries are all stated at cost.
Details of the company's subsidiaries at 31 October 2019 are as follows:
Name of undertaking
Registered office
Nature of business
Class of
% Held
shares held
Direct
TZZ Estates Limited
United Kingdom
Real estate buying and selling
£1 Ordinary
100.00
7
Debtors
2019
2018
Amounts falling due within one year:
£
£
Trade debtors
27,594
16,905
Other debtors
280,006
451,195
307,600
468,100
MANUAL INVESTING LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2019
- 9 -
8
Creditors: amounts falling due within one year
2019
2018
£
£
Bank loans and overdrafts
1,236,789
1,217,365
Corporation tax
120,933
-
Other taxation and social security
-
1,988
Other creditors
4,380,761
3,793,341
5,738,483
5,012,694
Within other creditors, the hire purchase liabilities of £33,117 (2018 - £4,694) are secured on the assets to which they relate. The bank loans and overdrafts of £1,236,789 (2018 - £1,217,365) are secured on the investment properties.
9
Creditors: amounts falling due after more than one year
2019
2018
£
£
Bank loans and overdrafts
306,667
333,333
Other creditors
-
32,618
306,667
365,951
The hire purchase liabilities of £Nil (2018 - £32,618) are secured on the assets to which they relate. The bank loans of £306,667 (2018 - £333,333) are secured on the investment properties.