Company Registration No. 04190306 (England and Wales)
RWS PROPERTIES LIMITED
ANNUAL REPORT AND UNAUDITED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2019
RWS PROPERTIES LIMITED
COMPANY INFORMATION
Directors
S. Marco
R.P. Beaumont
Secretary
S. Marco
Company number
04190306
Registered office
34 Teignmouth Road
London
NW2 4HN
Accountants
HW Fisher
Acre House
11-15 William Road
London
NW1 3ER
United Kingdom
Business address
34 Teignmouth Road
London
NW2 4HN
Bankers
Royal Bank of Scotland
62-63 Threadneedle Street
London
EC2R 8LA
RWS PROPERTIES LIMITED
CONTENTS
Page
Directors' report
1
Chartered Accountants' report
2
Profit and loss account
3
Balance sheet
4 - 5
Statement of changes in equity
6
Notes to the financial statements
7 - 12
RWS PROPERTIES LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 AUGUST 2019
- 1 -
The directors present their report and financial statements for the year ended 31 August 2019.
Principal activities
The principal activity of the company
is the holding and managing of investment properties
Directors
The directors who held office during the year and up to the date of signature of the financial statements were as follows:
S. Marco
R.P. Beaumont
This report has been prepared in accordance with the provisions applicable to companies entitled to the small companies exemption.
On behalf of the board
S. Marco
Director
17 October 2019
RWS PROPERTIES LIMITED
CHARTERED ACCOUNTANTS' REPORT TO THE BOARD OF DIRECTORS ON THE PREPARATION OF THE UNAUDITED STATUTORY FINANCIAL STATEMENTS OF RWS PROPERTIES LIMITED FOR THE YEAR ENDED 31 AUGUST 2019
- 2 -
In order to assist you to fulfil your duties under the Companies Act 2006, we have prepared for your approval the financial statements of RWS Properties Limited for the year ended 31 August 2019 set out on pages 3 to 12 from the company’s accounting records and from information and explanations you have given us.
As a practising member firm of the Institute of Chartered Accountants in England and Wales (ICAEW), we are subject to its ethical and other professional requirements which are detailed at http://www.icaew.com/en/members/regulations-standards-and-guidance
.
This report is made solely to the Board of Directors of RWS Properties Limited, as a body, in accordance with the terms of our engagement letter dated 17 October 2018. Our work has been undertaken solely to prepare for your approval the financial statements of RWS Properties Limited
and state those matters that we have agreed to state to the Board of Directors of RWS Properties Limited, as a body, in this report in accordance with ICAEW Technical Release 07/16 AAF. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than RWS Properties Limited and its Board of Directors as a body, for
our work or for this report.
It is your duty to ensure that RWS Properties Limited has kept adequate accounting records and to prepare statutory financial statements that give a true and fair view of the assets,
liabilities, financial position and profit of RWS Properties Limited. You consider that RWS Properties Limited is exempt from the statutory audit
requirement for the year.
We have not been instructed to carry out an audit or a review of the financial statements of RWS Properties Limited. For this reason, we have not verified the accuracy or completeness of the
accounting records or information and explanations you have given to us and we do not, therefore, express any opinion on the statutory financial statements.
HW Fisher
Chartered Accountants
Acre House
11-15 William Road
London
NW1 3ER
United Kingdom
18 October 2019
RWS PROPERTIES LIMITED
PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 31 AUGUST 2019
- 3 -
2019
2018
Notes
£
£
Turnover
1,115,219
1,089,112
Cost of sales
(344,633)
(352,145)
Gross profit
770,586
736,967
Administrative expenses
(31,161)
(10,984)
Operating profit
739,425
725,983
Interest receivable and similar income
645
103
Interest payable and similar expenses
(38,186)
(44,839)
Fair value gains and losses on investment properties
6
(259,984)
(163,885)
Profit before taxation
441,900
517,362
Tax on profit
4
(102,729)
(61,422)
Profit for the financial year
339,171
455,940
RWS PROPERTIES LIMITED
BALANCE SHEET
AS AT
31 AUGUST 2019
31 August 2019
- 4 -
2019
2018
Notes
£
£
£
£
Fixed assets
Tangible assets
5
9,730
10,837
Investment properties
6
20,217,250
20,391,250
20,226,980
20,402,087
Current assets
Debtors
7
40,411
33,221
Cash at bank and in hand
219,544
218,545
259,955
251,766
Creditors: amounts falling due within one year
8
(440,812)
(1,451,901)
Net current liabilities
(180,857)
(1,200,135)
Total assets less current liabilities
20,046,123
19,201,952
Creditors: amounts falling due after more than one year
9
(1,000,000)
-
Provisions for liabilities
10
(2,010,000)
(2,025,000)
Net assets
17,036,123
17,176,952
Capital and reserves
Called up share capital
11
1,001
1,001
Share premium account
4,008,513
4,008,513
Equity reserve
326,926
326,926
Other reserves
12
11,081,640
11,326,624
Profit and loss reserves
1,618,043
1,513,888
Total equity
17,036,123
17,176,952
RWS PROPERTIES LIMITED
BALANCE SHEET (CONTINUED)
AS AT
31 AUGUST 2019
31 August 2019
- 5 -
For the financial year ended 31 August 2019 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 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 17 October 2019 and are signed on its behalf by:
S. Marco
Director
Company Registration No. 04190306
RWS PROPERTIES LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 AUGUST 2019
- 6 -
Share capital
Share premium account
Equity reserve
Other reserves
Profit and loss reserves
Total
Notes
£
£
£
£
£
£
Balance at 1 September 2017
1,001
4,008,513
326,926
11,430,509
1,420,063
17,187,012
Year ended 31 August 2018:
Profit and total comprehensive income for the year
-
-
-
-
455,940
455,940
Dividends
-
-
-
-
(466,000)
(466,000)
Transfers
-
-
-
(103,885)
103,885
-
Balance at 31 August 2018
1,001
4,008,513
326,926
11,326,624
1,513,888
17,176,952
Year ended 31 August 2019:
Profit and total comprehensive income for the year
-
-
-
-
339,171
339,171
Dividends
-
-
-
-
(480,000)
(480,000)
Transfers
-
-
-
(244,984)
244,984
-
Balance at 31 August 2019
1,001
4,008,513
326,926
11,081,640
1,618,043
17,036,123
RWS PROPERTIES LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2019
- 7 -
1
Accounting policies
Company information
RWS Properties Limited is a
private
company
limited by shares
incorporated in England and Wales.
The registered office is
34 Teignmouth Road, London, NW2 4HN.
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 investment properties. The principal accounting policies adopted are set out below.
1.2
Turnover
Turnover represents rental income and service charges receivable.
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:
Fixtures, fittings & 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 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.
1.5
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
.
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.
RWS PROPERTIES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2019
1
Accounting policies
(Continued)
- 8 -
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 and loans
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 receipts 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.
1.7
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.
1.8
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.
RWS PROPERTIES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2019
1
Accounting policies
(Continued)
- 9 -
1.9
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
During the current and comparative year there were were 2 employees.
3
Directors' remuneration
2019
2018
£
£
Remuneration paid to directors
169,162
169,468
Unpaid fees at 31 August 2019, included in the total, amounted to £5,135 (2018: £8,773) for the two directors.
RWS PROPERTIES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2019
- 10 -
4
Taxation
2019
2018
£
£
Current tax
UK corporation tax on profits for the current period
117,729
121,422
Deferred tax
Origination and reversal of timing differences
(15,000)
(60,000)
Total tax charge
102,729
61,422
5
Tangible fixed assets
Furniture, fixture and fittings
£
Cost or valuation
At 1 September 2018
35,314
Additions
9,780
Disposals
(12,428)
At 31 August 2019
32,666
Depreciation and impairment
At 1 September 2018
24,477
Depreciation charged in the year
10,887
Eliminated in respect of disposals
(12,428)
At 31 August 2019
22,936
Carrying amount
At 31 August 2019
9,730
At 31 August 2018
10,837
RWS PROPERTIES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2019
- 11 -
6
Investment property
2019
£
Fair value
At 1 September 2018
20,391,250
Additions
85,984
Revaluations
(259,984)
At 31 August 2019
20,217,250
As at 31 August 2019 the properties were revalued by the directors on an open market basis.
If revalued freehold investment properties were stated on an historical cost basis rather than a fair value basis, the total amounts included would have been £7,125,608 (2018: £7,039,624).
7
Debtors
2019
2018
Amounts falling due within one year:
£
£
Trade debtors
26,767
24,563
Prepayments and accrued income
13,644
8,658
40,411
33,221
8
Creditors: amounts falling due within one year
2019
2018
Notes
£
£
Building society loan
-
1,000,000
Corporation tax
117,729
121,422
Other creditors
238,343
246,489
Accruals and deferred income
84,740
83,990
440,812
1,451,901
9
Creditors: amounts falling due after more than one year
2019
2018
£
£
Building society loan
1,000,000
-
The loan is secured by a charge on certain properties.
RWS PROPERTIES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2019
9
Creditors: amounts falling due after more than one year
(Continued)
- 12 -
10
Provisions for liabilities
2019
2018
£
£
Deferred tax liabilities
2,010,000
2,025,000
2,010,000
2,025,000
Deferred tax arises on the gain of the revaluation of the investment property at a rate of 17% (2018: 17%)
11
Called up share capital
2019
2018
£
£
Ordinary share capital
Issued and fully paid
10,000,000 Ordinary A Shares of 0.01p each
1,000
1,000
1 Ordinary B Share of £1
1
1
1,001
1,001
The trustees of the Rebecca Webber 1965 Settlement trust currently hold all the shares. Whilst the trustees have an interest in any of the A shares, the B share gives them exclusive voting rights. Once the trustees have no interest in any A shares, voting rights belong exclusively to the A shares and the holder of the B share has no right to vote.
12
Capital reserve
Profits arising on the disposal of properties, net of tax, are transferred each year to a capital reserve.
13
Related party transactions
Transactions with related parties
At 31 August 2019, £119,779 (2018: £119,779) was owed to a shareholder, in respect of funding provided. During the year, dividends of £480,000 (2018: £466,000) were paid to the shareholder.
During the year £34,830 (2018: £28,140) was charged by a company in which a director has an interest. Of these costs, £10,740 (2018: £10,446) have been capitalised as part of investment property additions.
14
Directors' transactions
The two directors rent a part of a property from the company at an open market rent. During the year, rent of £3,000 (2018: £3,000) was payable to the company.
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