Tees Valley Ventures Limited
ANNUAL REPORT AND UNAUDITED FINANCIAL STATEMENTS
for the year ended
31 December 2018
Company Registration No. 5612759
DIRECTORS
Robert Wadsworth
Trevor Cartner
REGISTERED OFFICE
Unit 3, First Floor
Woodside Mews
Woodside Court
Leeds
LS16 6QE
Tees Valley Ventures Limited
BALANCE SHEET
As at 31 December 2018
Notes
2018
£
2017
£
CURRENT ASSETS
Stocks
2
3,824,000
4,445,000
Debtors
3
15,533
2,063
Cash at bank and in hand
301,587
22,799
4,141,120
4,469,862
CREDITORS: Amounts falling due within one year
4
(16,883,402)
(16,767,330)
NET CURRENT LIABILITIES
(12,742,282)
(12,297,468)
TOTAL ASSETS LESS CURRENT LIABILITIES
(12,742,282)
(12,297,468)
CAPITAL AND RESERVES
Called up share capital
5
2,000
2,000
Profit and loss account
(12,744,282)
(12,299,468)
SHAREHOLDERS' DEFICIT
(12,742,282)
(12,297,468)
For the financial year ending 31 December 2018 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.
Director's responsibilities;
The members have not required the company to obtain an audit of its accounts for the year in question in accordance with section 476 of the Companies Act 2006,
The directors acknowledge their responsibilities for complying with the requirements of the Companies Act 2006 with respect to accounting records and the preparation of accounts
These accounts have been prepared in accordance with the provisions applicable to companies subject to the small companies regime.
These financial statements were approved by the board of directors on 30 July 2019 and were signed on its behalf by:
Robert Wadsworth
Director
Tees Valley Ventures Limited
NOTES TO THE FINANCIAL STATEMENTS
for the year ended 31 December 2018
1.
ACCOUNTING POLICIES
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 amounts 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.
TURNOVER
Turnover represents the income derived from property development and management undertaken during the period, and is net of any applicable Value Added Tax.
CASH AT BANK AND IN HAND
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.
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 and loans from fellow group companies, 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.
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.
Tees Valley Ventures Limited
NOTES TO THE FINANCIAL STATEMENTS
for the year ended 31 December 2018
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.
GOING CONCERN
The company incurred a loss for the year of £444,814 (2017: £503,518) and at the balance sheet date had a shareholders' deficit of £12,742,282 (2017: £12,297,468).
The company relies on the continued support of its shareholders who at the balance sheet date had made loans to the company amounting to £13,497,539. The shareholders have indicated their intentions to continue supporting the company.
The ability of the company to continue trading in the longer term is dependent on a recovery of the market value of the company's development property and/or the ability of the company to agree satisfactory terms with its lenders (including the shareholders) with regard to the repayment of their loans. This indicates the existence of conditions which could cast significant doubt on the company's ability, in the longer term, to continue as a going concern. These financial statements do not include any adjustments that would result if the company was unable to continue as a going concern.
WORK IN PROGRESS/PROPERTY STOCKS
Properties in the course of development are included under stocks in the balance sheet at the lower of cost or net realisable value.
Cost includes cost of acquisition and development to date, including directly attributable fees and expenses. All finance costs relating to properties in the course of development are expensed.
Property transactions are recognised on legal completion. Properties are transferred between categories at the estimated market value on the transfer date.
Tees Valley Ventures Limited
NOTES TO THE FINANCIAL STATEMENTS
for the year ended 31 December 2018
2
STOCKS
2018
£
2017
£
Land and property held for sale and development
3,824,000
4,445,000
3
DEBTORS:
2018
£
2017
£
Trade debtors
1,753
-
Prepayments and accrued income
13,780
2,063
15,533
2,063
4
CREDITORS: Amounts falling due within one year
2018
£
2017
£
Trade creditors
33,342
837
Other creditors including taxation and social security
132,749
60,299
Amounts owed to shareholders
13,497,539
13,185,723
Amounts owed to related parties
3,219,772
3,520,471
16,883,402
16,767,330
5
SHARE CAPITAL
2018
£
2017
£
Allotted, issued and fully paid:
1,000 A ordinary share of £1 each
1,000
1,000
1,000 B ordinary share of £1 each
1,000
1,000
2,000
2,000
6
RELATED PARTY TRANSACTIONS
Balance at 31 December
Transactions
in year
Name
Relationship
Description
2018
£
2017
£
2018
£
2017
£
Aquila Developments Limited
Shareholder
Loan account
10,364,112
10,134,979
52,189
(3,500,000)
Loan interest
176,944
368,919
Helios Property Holdings Ltd
Shareholder
Loan account
Loan interest
3,133,427
3,050,744
20,000
62,683
-
54,541
Goulandris Brothers Limited
Related party
Loan account Loan interest
3,219,772
3,520,471
(394,481)
93,782
3,500,000
20,471
Tees Valley Ventures Limited
NOTES TO THE FINANCIAL STATEMENTS
for the year ended 31 December 2018
7
CONTROL
The company is owned equally by Helios Property Holdings Limited and Aquila Developments Limited. Neither party has overall control.
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