Company Registration No. 04786470 (England and Wales)
ABITO LIMITED
FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2020
PAGES FOR FILING WITH REGISTRAR
ABITO LIMITED
CONTENTS
Page
Balance sheet
1
Notes to the financial statements
2 - 7
ABITO LIMITED
BALANCE SHEET
AS AT
31 MARCH 2020
31 March 2020
- 1 -
2020
2019
Notes
£
£
£
£
Fixed assets
Investments
3
265
265
Current assets
Stocks
4,434,729
4,639,309
Debtors
5
97,123
77,047
Cash at bank and in hand
892,247
910,872
5,424,099
5,627,228
Creditors: amounts falling due within one year
6
(2,705,520)
(2,736,219)
Net current assets
2,718,579
2,891,009
Total assets less current liabilities
2,718,844
2,891,274
Creditors: amounts falling due after more than one year
7
(553,169)
(785,328)
Provisions for liabilities
(205,000)
-
Net assets
1,960,675
2,105,946
Capital and reserves
Called up share capital
8
3,771,900
3,771,900
Profit and loss reserves
(1,811,225)
(1,665,954)
Total equity
1,960,675
2,105,946
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 March 2021 and are signed on its behalf by:
P Vickers
Director
Company Registration No. 04786470
ABITO LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2020
- 2 -
1
Accounting policies
Company information
Abito Limited is a
private
company
limited by shares
incorporated in England and Wales.
The registered office is
c/o Infinity Asset Management LLP, 4 Clippers Quay, Salford, M50 3BL.
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. The principal accounting policies adopted are set out below.
1.2
Going concern
At the time of approving the financial statements , the directors have a reasonable expectation that the
company has adequate resources to continue in operational existence for the foreseeable future. The
directors do not believe that Covid-19 will have a material affect on the company's operations and
results in the future. Thus the directors continue to adopt the going concern basis of accounting in
preparing the financial statements.
1.3
Turnover
Sales of apartments are shown as turnover where legal completions have occurred before the balance sheet date. Turnover excludes value added tax and other sales taxes. Turnover is derived entirely from activities in the United Kingdom.
Rental income arising on the properties held as stock is shown in other operating income.
1.4
Fixed asset investments
Interests in subsidiaries, associates and jointly controlled entities are initially measured at cost and subsequently measured at cost less any accumulated impairment losses.
The investments are assessed for impairment at each reporting date
and
any
impairment
losses or reversals of impairment losses are recognised immediately in profit or loss.
A subsidiary is an entity controlled by the company
. Control is
the power to govern the financial and operating policies of
the
entity so as to obtain benefits from its activities.
An associate is an entity, being neither a subsidiary nor a joint venture, in which the company holds a long-term interest and where the company has significant influence. The company considers that it has significant influence where it has the power to participate in the financial and operating decisions of the associate.
Entities in which the company has a long term interest and shares control under a contractual arrangement are classified as jointly controlled entities
.
ABITO LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2020
1
Accounting policies
(Continued)
- 3 -
1.5
Stocks
Stocks of apartments are held at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises the original building cost less any previous write downs.
At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.
1.6
Cash at bank and in hand
Cash and cash equivalents
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.
1.7
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.
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.
ABITO LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2020
1
Accounting policies
(Continued)
- 4 -
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.
Changes in the fair value of derivatives that are designated and qualify as fair value hedges are recognised in profit or loss immediately, together with any changes in the fair value of the hedged asset or liability that are attributable to the hedged risk.
1.9
Taxation
The tax expense represents
the tax currently payable.
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.
1.10
Provisions
Provisions are recognised when the
company
has a legal or constructive present obligation as a result of a past event, it is probable that the
company
will be required to settle that obligation and a reliable estimate can be made of the amount of the obligation.
The amount recognised as a provision is the best estimate of the consideration required to settle the present obligation at the reporting end date, taking into account the risks and uncertainties surrounding the obligation.
Where the effect of the time value of money is material, the amount expected to be required to settle the obligation is recognised at present value. When a provision i
s
measured at present value
,
the unwinding of the discount is recognised as a finance cost in profit or loss in the period
in which
it arises.
2
Employees
The average monthly number of persons (including directors) employed by the company during the year was 2
(2019: 2).
3
Fixed asset investments
2020
2019
£
£
Shares in group undertakings and participating interests
265
265
ABITO LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2020
3
Fixed asset investments
(Continued)
- 5 -
Movements in fixed asset investments
Shares in group undertakings
£
Cost or valuation
At 1 April 2019 & 31 March 2020
265
Carrying amount
At 31 March 2020
265
At 31 March 2019
265
4
Subsidiaries
Details of the company's subsidiaries at 31 March 2020 are as follows:
Name of undertaking
Registered
Nature of business
Class of
% Held
office
shares held
Direct
Indirect
Abito Management Company Greengate Limited
4 Clippers Quay, M50 3BL
Dormant
Ordinary Shares
100.00
0
The aggregate capital and reserves and the result for the year of the subsidiaries noted above was as follows:
Name of undertaking
Profit/(Loss)
Capital and Reserves
£
£
Abito Management Company Greengate Limited
265
5
Debtors
2020
2019
Amounts falling due within one year:
£
£
Trade debtors
23,324
32,189
Other debtors
73,799
44,858
97,123
77,047
ABITO LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2020
- 6 -
6
Creditors: amounts falling due within one year
2020
2019
£
£
Bank loans
113,625
113,625
Trade creditors
5,591
38,988
Amounts owed to group undertakings
2,524,077
2,524,077
Other creditors
62,227
59,529
2,705,520
2,736,219
7
Creditors: amounts falling due after more than one year
2020
2019
£
£
Bank loans and overdrafts
553,169
785,328
All long term creditors due and payable within 5 years. The long-term bank loans are secured by fixed and floating charges over the assets of the company including property held as stock.
8
Called up share capital
2020
2019
£
£
Ordinary share capital
Issued and fully paid
3,771,900 Ordinary Shares of £1 each
3,771,900
3,771,900
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 Alexander Kelly.
The auditor was MHA Moore and Smalley.
10
Contingent asset
Following the Grenfell Tower fire, the UK government enacted legislation regarding Fire Safety and External Walling Systems in high rise residential buildings. Where such systems are identified as being below current standards remedial works are required. The company has recognised a liability for the cost of the remedial work on the apartments it still owns of £205,000. The company, via the management company of the property, has registered with the Government Building Safety Fund and received pre-tender support funding. The company, via the management company of the property, has applied for funding to cover the full cost of the remedial works. The directors have been advised that the receipt of this funding is probable as the company meets all stated eligibility criteria.
ABITO LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2020
- 7 -
11
Related party transactions
The parent company, Levitt Abito Limited has provided the company with an unsecured, interest free loan. As at the year end £2,523,812 (2019: £2,523,812) was owed to Levitt Abito Limited.
12
Parent company
The company continues to be owned by Levitt Abito Limited, a joint venture between Infinity Number One Limited and Levitt UK Real Estate Limited. The ultimate controlling party is LevittSystems International Building Corporation.