Company Registration No. 04295900 (England and Wales)
LONDON ROAD INVESTMENTS LIMITED
UNAUDITED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 28 FEBRUARY 2019
PAGES FOR FILING WITH REGISTRAR
LONDON ROAD INVESTMENTS LIMITED
COMPANY INFORMATION
Directors
Mr Nigel Berney
Mr Guy Harman
Mr D I Lipfriend
Mr Ian Singleton
Mr R Swaine
Mr J Willoughby
Mr J Hoyle
Secretary
Mr R Swaine
Company number
04295900
Registered office
Enterprise House
Beesons Yard
Bury Lane
Rickmansworth
Hertfordshire
WD3 1DS
Bankers
Santander UK Plc
81/89 St Albans Road
Watford
Herts
WD17 1RG
LONDON ROAD INVESTMENTS LIMITED
CONTENTS
Page
Balance sheet
1
Notes to the financial statements
2 - 5
LONDON ROAD INVESTMENTS LIMITED
BALANCE SHEET
AS AT 28 FEBRUARY 2019
28 February 2019
- 1 -
2019
2018
Notes
£
£
£
£
Fixed tangible assets
Investment property
2
1,030,000
1,030,000
Current assets
Debtors
3
565,156
575,415
Cash at bank and in hand
8,927
8,936
574,083
584,351
Creditors: amounts falling due within one year
4
(34,058)
(32,368)
Net current assets
540,025
551,983
Total assets less current liabilities
1,570,025
1,581,983
Creditors: amounts falling due after more than one year
5
(489,106)
(516,797)
Provisions for liabilities
(166,953)
(162,652)
Net assets
913,966
902,534
Capital and reserves
Called up share capital
6
80
80
Fair value reserve
930,000
930,000
Profit and loss reserves
(16,114)
(27,546)
Total equity
913,966
902,534
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 28 February 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 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 6 June 2019 and are signed on its behalf by:
Mr Nigel Berney
Director
Company Registration No. 04295900
LONDON ROAD INVESTMENTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 28 FEBRUARY 2019
- 2 -
1
Accounting policies
Company information
London Road Investments Limited is a
private
company
limited by shares
incorporated in England and Wales.
The registered office is
at Enterprise House, Beesons Yard, Bury Lane, Rickmansworth, Hertfordshire WD3 1DS.
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
pound.
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
Turnover
Turnover represents amounts receivable for rental income net of VAT.
1.3
Investment property
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.
Where fair value cannot be achieved without undue cost or effort, investment property is accounted for as tangible fixed assets.
1.4
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.
1.5
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.
LONDON ROAD INVESTMENTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 28 FEBRUARY 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.
Impairment of financial assets
Financial assets, other than those
held
at
fair value through profit and loss
, are assessed for indicators of impairment at each reporting end date.
Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected.
If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.
If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.
Derecognition of financial assets
Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when
the company
transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.
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 bank 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
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.
Derecognition of financial liabilities
Financial liabilities are derecognised when the company’s contractual obligations
expire or are discharged or cancelled.
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.
LONDON ROAD INVESTMENTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 28 FEBRUARY 2019
1
Accounting policies (Continued)
- 4 -
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.
2
Investment property
2019
£
Fair value
At 1 March 2018 and 28 February 2019
1,030,000
If investment properties were stated on an historical cost basis rather than a fair value basis, the amounts would have been included as follows:
2019
2018
£
£
Cost
100,000
100,000
Accumulated depreciation
-
-
Carrying amount
100,000
100,000
3
Debtors
2019
2018
Amounts falling due within one year:
£
£
Other debtors
565,156
575,415
LONDON ROAD INVESTMENTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 28 FEBRUARY 2019
- 5 -
4
Creditors: amounts falling due within one year
2019
2018
£
£
Bank loan instalments
27,694
26,482
Corporation tax
3,694
3,262
Other taxation and social security
1,450
1,449
Other creditors
1,220
1,175
34,058
32,368
5
Creditors: amounts falling due after more than one year
2019
2018
£
£
Bank loan instalments
489,106
516,797
The bank loan is secured by a legal charge over investment property owned by the company.
6
Called up share capital
2019
2018
£
£
Ordinary share capital
Issued and fully paid
80 Ordinary shares of £1 each
80
80
7
Related party transactions
The company has continued to provide an interest free loan of £305,000 (2018: £305,000) to Nigel Lawrence Limited, a company in which N P Berney and G A Harman are directors and shareholders, and to D I Lipfriend who is a shareholder of Nigel Lawrence Limited. In the year the company received repayments amounting to £5,000 (2018: £5,000). The balance owed to the company as at 28 February 2019 amounts to £282,000 (2018: £287,000).
The company has continued to provide an interest free loan of £305,000 (2018: £305,000) to Belgrave Land Limited, a company in which R D Swaine, J J Willoughby and J F Hoyle are directors and shareholders. In the year the company received repayments amounting to £5,000 (2018: £5,000). The balance owed to the company as at 28 February 2019 amounts to £282,000 (2018: £287,000).