Company Registration No. 02921101 (England and Wales)
ADAM ESTATES LIMITED
UNAUDITED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2020
PAGES FOR FILING WITH REGISTRAR
ADAM ESTATES LIMITED
CONTENTS
Page
Balance sheet
1 - 2
Statement of changes in equity
3
Notes to the financial statements
4 - 8
ADAM ESTATES LIMITED
BALANCE SHEET
AS AT 31 MAY 2020
31 May 2020
- 1 -
2020
2019
Notes
£
£
£
£
Fixed assets
Tangible assets
3
8,039
7,323
Investment properties
4
4,867,900
4,922,600
4,875,939
4,929,923
Current assets
Debtors
5
140,453
62,597
Cash at bank and in hand
11,265
16,775
151,718
79,372
Creditors: amounts falling due within one year
6
(150,351)
(200,714)
Net current assets/(liabilities)
1,367
(121,342)
Total assets less current liabilities
4,877,306
4,808,581
Provisions for liabilities
7
(46,556)
(59,269)
Net assets
4,830,750
4,749,312
Capital and reserves
Called up share capital
8
4
4
Investment property reserve
1,876,545
1,965,640
Profit and loss reserves
2,954,201
2,783,668
Total equity
4,830,750
4,749,312
The directors of the company have elected not to include a copy of the profit and loss account within the financial statements.
true
For the financial year ended 31 May 2020 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.
The directors acknowledge their 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.
ADAM ESTATES LIMITED
BALANCE SHEET (CONTINUED)
AS AT 31 MAY 2020
31 May 2020
- 2 -
The financial statements were approved by the board of directors and authorised for issue on 23 February 2021 and are signed on its behalf by:
R P Farr
Director
Company Registration No. 02921101
ADAM ESTATES LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 MAY 2020
- 3 -
Share capital
Investment property reserve
Profit and loss reserves
Total
Notes
£
£
£
£
Balance at 1 June 2018
4
1,987,971
2,792,293
4,780,268
Year ended 31 May 2019:
Profit and total comprehensive income for the year
-
-
169,044
169,044
Dividends
-
-
(200,000)
(200,000)
Transfers
-
(22,331)
22,331
-
Balance at 31 May 2019
4
1,965,640
2,783,668
4,749,312
Year ended 31 May 2020:
Profit and total comprehensive income for the year
-
-
161,438
161,438
Dividends
-
-
(80,000)
(80,000)
Transfers
-
(89,095)
89,095
-
Balance at 31 May 2020
4
1,876,545
2,954,201
4,830,750
ADAM ESTATES LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2020
- 4 -
1
Accounting policies
Company information
Adam Estates Limited is a
private
company
limited by shares
incorporated in England and Wales.
The registered office is
Acre House, 11-15 William Road, London, NW1 3ER, United Kingdom.
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, modified to include investment properties at fair value. The principal accounting policies adopted are set out below.
1.2
Going concern
The directors have considered the effect of the Covid-19 outbreak, the outbreak has caused some disruption to the company’s business to date. The directors consider it is unlikely that a prolonged outbreak will cause significant disruption. Accordingly, at the time of approving the financial statements, the directors have a reasonable expectation that the company has adequate resources to continue in operation for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.
true
1.3
Turnover
Turnover represents rent and other amounts receivable from tenants, stated net of Value Added Tax.
1.4
Tangible fixed assets
Tangible fixed assets
are initially measured at cost and subsequently measured at cost, net of depreciation and any impairment losses.
Tangible fixed assets are stated at cost less depreciation. Depreciation is provided on all tangible fixed assets, at rates calculated to write off the cost less residual value of each asset over its expected useful life, as follows:
Plant and machinery
20% reducing balance
Fixtures, fittings & equipment
15% reducing balance
Computer equipment
33.33% straight line
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 at
the reporting end date. The gain or loss on valuation is recognised in profit or loss and is
subsequently transferred within
equity to the "investment property reserve" together with the associated deferred tax.
1.6
Cash and cash equivalents
Cash at bank and in hand
are basic financial assets
and
include cash in hand,
and
deposits held at call with banks.
ADAM ESTATES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2020
1
Accounting policies
(Continued)
- 5 -
1.7
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.
Basic financial liabilities
Basic financial liabilities, including creditors 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.
1.8
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.
1.9
Taxation
The tax expense represents the sum of the tax currently payable and deferred tax.
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.
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.
ADAM ESTATES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2020
1
Accounting policies
(Continued)
- 6 -
1.10
Employee benefits
The costs of short-term employee benefits are recognised as a liability and an expense.
1.11
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
1.12
Investment property reserve
The investment property reserve comprises the fair value uplift on the company's investment property net of the associated deferred tax. Any movement in the fair value of the investment property and/or the deferred tax associated with it during the year is transferred from the profit and loss account into this reserve as a reserve movement in the Statement of Changes in Equity. The reserve is non-distributable.
2
Employees
The average monthly number of persons (including directors) employed by the company during the year was 2 (2019 - 2
).
3
Tangible fixed assets
Plant and machinery
Fixtures, fittings & equipment
Computer equipment
Total
£
£
£
£
Cost
At 1 June 2019
2,583
23,468
1,207
27,258
Additions
-
-
2,084
2,084
At 31 May 2020
2,583
23,468
3,291
29,342
Depreciation and impairment
At 1 June 2019
1,738
18,163
34
19,935
Depreciation charged in the year
169
796
403
1,368
At 31 May 2020
1,907
18,959
437
21,303
Carrying amount
At 31 May 2020
676
4,509
2,854
8,039
At 31 May 2019
845
5,305
1,173
7,323
4
Investment property
2020
£
Fair value
At 1 June 2019
4,922,600
Additions
49,622
Net gains or losses through fair value adjustments
(104,322)
At 31 May 2020
4,867,900
ADAM ESTATES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2020
4
Investment property
(Continued)
- 7 -
The fair value of the investment property has been arrived at on the basis of a valuation carried out by
the directors,
t
he valuation was made on an open market value basis
.
If investment properties were stated on an historical cost basis rather than a fair value basis, the amounts would have been included as follows:
2020
2019
£
£
Cost
2,967,524
2,917,902
Carrying amount
2,967,524
2,917,902
5
Debtors
2020
2019
Amounts falling due within one year:
£
£
Trade debtors
101,614
8,973
Other debtors
33,437
47,592
Prepayments
5,402
6,032
140,453
62,597
6
Creditors: amounts falling due within one year
2020
2019
£
£
Trade creditors
-
1,488
Corporation tax
59,189
50,316
Other taxation and social security
20,054
1,726
Other creditors
20,595
100,113
Accruals and deferred income
50,513
47,071
150,351
200,714
ADAM ESTATES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2020
- 8 -
7
Deferred taxation
The following are the deferred tax liabilities recognised by the company and movements thereon:
Liabilities
Liabilities
2020
2019
Balances:
£
£
Accelerated capital allowances
22,725
20,211
Revaluations
23,831
39,058
46,556
59,269
8
Called up share capital
2020
2019
£
£
Ordinary share capital
Issued and fully paid
2 "A" Ordinary shares of £1 each
2
2
2 "B" Ordinary shares of £1 each
2
2
4
4