Company Registration No. 03715967 (England and Wales)
GENTIAN (WARRINGTON) LIMITED
FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2019
PAGES FOR FILING WITH REGISTRAR
GENTIAN (WARRINGTON) LIMITED
CONTENTS
Page
Balance sheet
1
Notes to the financial statements
2 - 6
GENTIAN (WARRINGTON) LIMITED
BALANCE SHEET
AS AT
31 DECEMBER 2019
31 December 2019
- 1 -
2019
2018
Notes
£
£
£
£
Fixed assets
Investment properties
3
-
2,190,000
Current assets
Debtors
4
1
420,586
Cash at bank and in hand
-
1,000
1
421,586
Creditors: amounts falling due within one year
5
-
(325,257)
Net current assets
1
96,329
Total assets less current liabilities
1
2,286,329
Creditors: amounts falling due after more than one year
6
-
(2,013,301)
Net assets
1
273,028
Capital and reserves
Called up share capital
8
1
1
Investment property reserves
-
1,557,569
Profit and loss reserves
-
(1,284,542)
Total equity
1
273,028
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 30 June 2020 and are signed on its behalf by:
G Beazley-Long
Director
Company Registration No. 03715967
GENTIAN (WARRINGTON) LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2019
- 2 -
1
Accounting policies
Company information
Gentian (Warrington) 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 and certain financial instruments at fair value. The principal accounting policies adopted are set out below.
1.2
Going concern
A
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.
As stated in note 12, the directors have considered the effect of the Covid-19 outbreak, that has been spreading throughout the world in early 2020, on the company’s activities. In the directors' opinion, this event will not have a significant impact on the company’s activities and therefore has a reasonable expectation that the company will be able 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
Rental income represents rent receivable excluding VAT.
Recognition of rental income takes into account the terms of the lease including any lease incentives which are spread over the length of the lease.
1.4
Investment properties
Investment property, which is property held to earn rentals and/or for capital appreciation, is measured using the fair value model and stated at its fair value as the reporting end date.
The surplus or deficit on revaluation is recognised initially in the profit and loss account. The revaluation is then transferred from the profit and loss reserve to the investment property reserve. The investment property reserve is non-distributable.
1.5
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.
GENTIAN (WARRINGTON) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2019
1
Accounting policies
(Continued)
- 3 -
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.
1.6
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.
1.7
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.
GENTIAN (WARRINGTON) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2019
1
Accounting policies
(Continued)
- 4 -
Deferred tax is not recognised for investment properties that are measured at fair value that have a limited useful life and is held within a business model whose objective is to consume substantially all of the economic benefits embodied in the property over time.
1.8
Leases
Rentals payable under operating leases,
including
any lease incentives received, are charged to income on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the lease asset are consumed.
1.9
Leasehold premium
Short leasehold investment properties' improvement expenditure, including initial build expenditure, are included in
prepayments
and amortised over the period of the lease.
2
Employees
There were no employees during the year or in the previous year apart from the directors.
3
Investment property
2019
£
Fair value
At 1 January 2019
2,190,000
Transfers
(2,190,000)
At 31 December 2019
-
If investment properties were stated on an historical cost basis rather than a fair value basis, the value would have been £632,431 (2018:£632,431).
4
Debtors
2019
2018
Amounts falling due within one year:
£
£
Amounts owed by group undertakings
1
-
Prepayments and accrued income
-
34,476
1
34,476
Deferred tax asset (note 7)
-
6,267
1
40,743
GENTIAN (WARRINGTON) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2019
4
Debtors
(Continued)
- 5 -
2019
2018
Amounts falling due after more than one year:
£
£
Prepayments and accrued income
-
379,843
Total debtors
1
420,586
5
Creditors: amounts falling due within one year
2019
2018
£
£
Amounts owed to group undertakings
-
182,932
Corporation tax
-
28,500
Other taxation and social security
-
17,879
Accruals and deferred income
-
95,946
-
325,257
6
Creditors: amounts falling due after more than one year
2019
2018
£
£
Amounts due to group undertakings
-
1,982,124
Other creditors
-
31,177
-
2,013,301
7
Deferred taxation
The following are the major deferred tax liabilities and assets recognised by the company and movements thereon:
Assets
Assets
2019
2018
Balances:
£
£
Short term timing differences
-
6,267
GENTIAN (WARRINGTON) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2019
- 6 -
8
Called up share capital
2019
2018
£
£
Ordinary share capital
Issued and fully paid
1 Ordinary share of £1 each
1
1
1
1
9
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 Gary Miller.
The auditor was HW Fisher.
10
Operating lease commitments
Lessee
The company has total leasing commitments for future minimum lease payments under non-cancellable operating leases of £nil (2018: £933,776).
11
Parent company
The directors consider the ultimate controlling party to be the board of directors of Gentian Holdings Limited, the parent company.The registered office of Gentian Holdings Limited is: Acre House, 11-15 William Road, London, NW1 3ER.
Innisfree M&G PPP LP, a Limited Partnership with joint managers Innisfree Limited and M&G Investment Management Limited, owns 99.96% of the issued share capital of the parent company.
12
Post balance sheet events
The directors have considered the effect of the Covid-19 outbreak, that has been spreading throughout the world in early 2020, on the company’s activities. In the directors' opinion, this event will not have a significant impact on the company’s activities and therefore has a reasonable expectation that the company will be able to continue in operational existence for the foreseeable future.
13
Transfer of trade and assets
The trade and assets of the company were transferred to its parent company, Gentian Holdings Limited, on 31 October 2019, by way of
a
dividend.
No consideration was paid for t
he book value of the trade and assets at that date
which
amounted to £380,487.