Company Registration No. 03483248 (England and Wales)
RAWDON INVESTMENTS LIMITED
UNAUDITED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2016
PAGES FOR FILING WITH REGISTRAR
RAWDON INVESTMENTS LIMITED
COMPANY INFORMATION
Director
Mr B R Scott
Company number
03483248
Registered office
Hyning Bank
High Biggins
Kirkby Lonsdale
Carnforth
LA6 2NP
Accountants
Moore and Smalley LLP
Richard House
9 Winckley Square
Preston
PR1 3HP
RAWDON INVESTMENTS LIMITED
CONTENTS
Page
Balance sheet
1 - 2
Notes to the financial statements
3 - 9
RAWDON INVESTMENTS LIMITED
BALANCE SHEET
AS AT
31 DECEMBER 2016
31 December 2016
- 1 -
2016
2015
as restated
Notes
£
£
£
£
Fixed assets
Investment properties
3
5,530,109
4,912,547
Current assets
Debtors
4
56,950
14,874
Cash at bank and in hand
279,943
1,907,968
336,893
1,922,842
Creditors: amounts falling due within one year
5
(1,842,108)
(2,806,316)
Net current liabilities
(1,505,215)
(883,474)
Total assets less current liabilities
4,024,894
4,029,073
Creditors: amounts falling due after more than one year
6
(2,141,705)
(2,024,422)
Provisions for liabilities
(112,788)
(96,248)
Net assets
1,770,401
1,908,403
Capital and reserves
Called up share capital
7
4
4
Profit and loss reserves
1,770,397
1,908,399
Total equity
1,770,401
1,908,403
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 December 2016 the company was entitled to exemption from audit under section 477 of the Companies Act 2006.
T
he director acknowledges his responsibilities for complying with the requirements of the Act 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
and in accordance with the provisions of FRS 102 Section 1A.
RAWDON INVESTMENTS LIMITED
BALANCE SHEET (CONTINUED)
AS AT
31 DECEMBER 2016
31 December 2016
- 2 -
The financial statements were approved and signed by the director and authorised for issue on 20 September 2017
Mr B R Scott
Director
Company Registration No. 03483248
RAWDON INVESTMENTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2016
- 3 -
1
Accounting policies
Company information
Rawdon Investments Limited is a
private
company
limited by shares
incorporated in England and Wales.
The registered office is
Hyning Bank, High Biggins, Kirkby Lonsdale, Carnforth, LA6 2NP.
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 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.
These financial statements for the year ended 31 December 2016
are the
first
financial statements of Rawdon Investments Limited prepared in accordance with FRS 102, The Financial Reporting Standard applicable in the UK and Republic of Ireland. The date of transition to FRS 102 was 1 January 2015. An explanation of how transition to FRS 102 has affected the reported financial position and financial performance is given in note 9.
1.2
Turnover
Turnover represents
rents received in the year.
1.3
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:
Computer equipment
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
.
1.4
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.
The surplus or deficit on revaluation is recognised in the profit and loss account.
Where fair value cannot be achieved without undue cost or effort, investment property is accounted for as tangible fixed assets.
RAWDON INVESTMENTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2016
1
Accounting policies
(Continued)
- 4 -
1.5
Cash and cash equivalents
Cash at bank and in hand
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.
1.6
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.
Other financial liabilities
All of the company's financial liabilities are basic financial liabilities.
1.7
Equity instruments
Equity instruments issued by the company are recorded at the proceeds received, net of direct issue costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.
RAWDON INVESTMENTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2016
1
Accounting policies
(Continued)
- 5 -
1.8
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.
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.
1.9
Investment properties are shown at their open market value. The surplus or deficit arising from the annual revaluation is transferred to the investment revaluation reserve unless a deficit, or its reversal, on an individual investment property is expected to be permanent, in which case it is recognised in the profit and loss account for the year.
RAWDON INVESTMENTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2016
- 6 -
2
Tangible fixed assets
Computer equipment
£
Cost
At 1 January 2016
2,293
Disposals
(2,293)
At 31 December 2016
-
Depreciation and impairment
At 1 January 2016
2,293
Eliminated in respect of disposals
(2,293)
At 31 December 2016
-
Carrying amount
At 31 December 2016
-
At 31 December 2015
-
3
Investment property
2016
£
Fair value
At 1 January 2016
4,912,546
Additions
470,074
Revaluations
147,489
At 31 December 2016
5,530,109
For investment properties under construction their fair value has been considered to be the costs incurred on the sites to date.
The completed investment properties were last valued in July 2014 by C Walker MRICS and L Carter MRICS of Savills (UK) Limited, except for one property which was completed during the year ended 31 December 2015 and was valued in December 2015 by L Carter MRICS of Savills (UK) Limited, and one property completed during the current year which has been valued by the director. The value of these properties in the accounts at 31 December 2016 is the fair value as determined by the director.
RAWDON INVESTMENTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2016
- 7 -
4
Debtors
2016
2015
Amounts falling due within one year:
£
£
Corporation tax recoverable
7,797
-
Amounts owed by related parties
32,650
940
Other debtors
16,503
13,934
56,950
14,874
5
Creditors: amounts falling due within one year
2016
2015
£
£
Bank loans and overdrafts
172,485
141,144
Trade creditors
36,715
1,237
Amounts owed to parent company
1,435,403
1,608,703
Other taxation and social security
62,015
843,624
Other creditors
135,490
211,608
1,842,108
2,806,316
6
Creditors: amounts falling due after more than one year
2016
2015
£
£
Bank loans and overdrafts
2,141,705
2,024,422
7
Called up share capital
2016
2015
£
£
Ordinary share capital
Issued and fully paid
4 Ordinary shares of £1 each
4
4
4
4
RAWDON INVESTMENTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2016
- 8 -
8
Related party transactions
At the balance sheet date the company owed its parent company £1,435,203 (2015:£1,608,703). This balance is included within creditors.
At the balance sheet date the company was owed £23,745 (2015: £940) by a company under common control. This balance is included within debtors.
At the balance sheet date the company was owed £8,950 (2015: £ nil) by a joint venture undertaken by the directors of the company. This balance is included within debtors.
During the year the company paid management charges totalling £40,500 (2015: £9,500) to a partnership for which the directors are designated members. At 31 December 2016 £30,000 (2015: £Nil) was included in trade creditors in relation to these management charges.
The directors of the company have a loan account with the company against which personal expenditure and drawings may be charged. The loan account was in credit throughout the current and previous year and the balance at 31 December 2016 was £2,980 (2015: £2,493).
9
Reconciliations on adoption of FRS 102
Reconciliation of equity
1 January
31 December
2015
2015
Notes
£
£
Equity as reported under previous UK GAAP
1,207,696
1,560,686
Adjustments to prior year (note 10)
-
443,964
As restated
1,207,696
2,004,650
Adjustments arising from transition to FRS 102:
Deferred tax provision on investment property gains
1
(30,931)
(96,247)
Equity reported under FRS 102
1,176,765
1,908,403
Notes to reconciliations on adoption of FRS 102
1. Deferred taxation
Prior to applying FRS102, the company did not have to provide for deferred taxation in respect of investment properties carried at fair value. FRS102 requires the recognition of deferred taxation on the difference between each property's fair value and its base cost for taxation purposes.
As a consequence, a deferred taxation liability of £30,931 has been recognised at 1 January 2015, with the liability being increased by £65,316 in the year ended 31 December 2015.
RAWDON INVESTMENTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2016
9
Reconciliations on adoption of FRS 102
(Continued)
- 9 -
2. Investment properties
Prior to applying FRS102 and in line with UK GAAP at the time, the company treated any revaluations on investment properties as an increase or decrease to the revaluation reserve.
FRS102 requires that any movements on investment property valuations are recognised as a pre taxation item, on the face of the profit and loss account. The revaluation reserve of £356,291 in respect of these properties has therefore been transferred to the profit and loss account on transition to FRS102.
10
Prior period adjustment
A prior year adjustment has been posted to these accounts to revalue one of the investment properties held at 31 December 2015 in line with a formal valuation carried out on the property. This has resulted in an increase to the value of investment properties held at 31 December 2015 by £443,964 and profit and loss reserves have increased by the same amount.
Changes to the balance sheet
At 31 December 2015
Balances as restated before FRS 102 transition adjustments:
As previously reported
Adjustment
As restated
£
£
£
Fixed assets
Investment properties
4,468,583
443,964
4,912,547
Capital and reserves
Profit and loss
1,265,526
443,964
1,709,490
Changes to the profit and loss account
Period ended 31 December 2015
Balances as restated before FRS 102 transition adjustments:
As previously reported
Adjustment
As restated
£
£
£
Fair value gains and losses on investment properties
990,297
443,964
1,434,261
Profit for the financial period
850,490
443,964
1,294,454
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