Company Registration No. 05760390 (England and Wales)
HARLEY SCOTT RESIDENTIAL LIMITED
FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2019
PAGES FOR FILING WITH REGISTRAR
HARLEY SCOTT RESIDENTIAL LIMITED
CONTENTS
Page
Balance sheet
1
Notes to the financial statements
2 - 8
HARLEY SCOTT RESIDENTIAL LIMITED
BALANCE SHEET
AS AT
30 JUNE 2019
30 June 2019
- 1 -
2019
2018
as restated
Notes
£
£
£
£
Fixed assets
Intangible assets
3
-
15,059
Tangible assets
4
-
975
Investment properties
5
5,611,381
5,611,381
5,611,381
5,627,415
Current assets
Debtors
6
96,696
695,382
Creditors: amounts falling due within one year
7
(5,954,731)
(5,902,442)
Net current liabilities
(5,858,035)
(5,207,060)
Total assets less current liabilities
(246,654)
420,355
Creditors: amounts falling due after more than one year
8
(3,713,796)
(3,713,796)
Provisions for liabilities
(17,338,367)
(19,313,714)
Net liabilities
(21,298,817)
(22,607,155)
Capital and reserves
Called up share capital
100
100
Profit and loss reserves
(21,298,917)
(22,607,255)
Total equity
(21,298,817)
(22,607,155)
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 1 July 2020 and are signed on its behalf by:
Mr T S Whittaker
Director
Company Registration No. 05760390
HARLEY SCOTT RESIDENTIAL LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2019
- 2 -
1
Accounting policies
Company information
Harley Scott Residential Limited is a
private
company
limited by shares
incorporated in England and Wales.
The registered office is
Group First House, 12a Mead Way, Burnley, BB12 7NG.
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 freehold properties and to include investment properties and certain financial instruments at fair value. The principal accounting policies adopted are set out below.
The financial statements of the company are consolidated in the financial statements of Group First Global Limited. These consolidated financial statements are available from its register office Group First House, Mead Way, Padiham, Lancs, BB12 7NG.
1.2
Going concern
The company finances its operations by means of bank loans. The directors are not aware of any reason why the loans will not be maintained at their current levels.
true
The company is also reliant upon support provided to it by its parent company, Harley Scott Holdings Limited, and by other connected companies also under the control of one of the directors, Mr. T S Whittaker. The directors of the relevant companies have confirmed that the support will continue to be provided to the company, and that the company will not be required to repay monies due in the foreseeable future.
As a result of this the directors have continued to adopt the going concern basis in the preparation of the financial statements.
1.3
Turnover
Turnover represents amounts receivable for rental and service charges net of VAT and trade discounts.
1.4
Intangible fixed assets other than goodwill
Intangible assets acquired separately from a business are recognised at cost and are subsequently measured at cost less accumulated amortisation and accumulated impairment losses.
Intangible assets acquired on business combinations are recognised separately from goodwill at the acquisition date
where
it is probable that the expected future economic benefits that are attributable to the asset will flow to the entity and the
fair
value of the asset can be measured reliably.
Amortisation 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:
Software
Over 2 years
HARLEY SCOTT RESIDENTIAL LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2019
1
Accounting policies
(Continued)
- 3 -
1.5
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:
Computers
Over 2 years
1.6
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 a
t
the reporting end date.
Changes in fair value are 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.
1.7
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.
HARLEY SCOTT RESIDENTIAL LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2019
1
Accounting policies
(Continued)
- 4 -
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.
1.8
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.
1.9
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.
HARLEY SCOTT RESIDENTIAL LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2019
1
Accounting policies
(Continued)
- 5 -
FCA Provision
The FCA have reviewed the activities of the group entities airport car parking investment schemes and took the view that these were collective investment schemes. Only FCA authorised firms and individuals can operate or promote these schemes.
This entity is not authorised by FCA and is not permitted to provide regulated financial services.
As a result of discussion with the FCA, this entity has agreed to stop operating and promoting the original schemes. The entity is now offering the choice of:
-
getting their initial investment back (to original investors).
-
moving in to a new Lifetime Leaseback scheme (to original and new investors).
It was concluded that it is appropriate for a provision to be put in place the cover the cost of these transactions. This provision has been discounted to present value where necessary.
1.10
Employee benefits
The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.
The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.
Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.
2
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2019
2018
Number
Number
Total
-
-
HARLEY SCOTT RESIDENTIAL LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2019
- 6 -
3
Intangible fixed assets
Other
£
Cost
At 1 July 2018 and 30 June 2019
30,118
Amortisation and impairment
At 1 July 2018
15,059
Amortisation charged for the year
15,059
At 30 June 2019
30,118
Carrying amount
At 30 June 2019
-
At 30 June 2018
15,059
4
Tangible fixed assets
Plant and machinery etc
£
Cost
At 1 July 2018 and 30 June 2019
1,950
Depreciation and impairment
At 1 July 2018
975
Depreciation charged in the year
975
At 30 June 2019
1,950
Carrying amount
At 30 June 2019
-
At 30 June 2018
975
5
Investment property
2019
£
Fair value
At 1 July 2018 and 30 June 2019
5,611,381
The fair value of the investment properties of £5,611,381 (2018: £5,611,381) have been derived at through a valuation performed by a third party independent estate agent.
HARLEY SCOTT RESIDENTIAL LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2019
- 7 -
6
Debtors
2019
2018
Amounts falling due within one year:
£
£
Trade debtors
1,523
232,222
Amounts owed by group undertakings
-
1,600
Other debtors
38,567
461,560
40,090
695,382
2019
2018
Amounts falling due after more than one year:
£
£
Deferred tax asset
56,606
-
Total debtors
96,696
695,382
7
Creditors: amounts falling due within one year
2019
2018
£
£
Trade creditors
262,859
286,009
Amounts owed to group undertakings
4,859,232
4,859,231
Taxation and social security
5,242
5,242
Other creditors
827,398
751,960
5,954,731
5,902,442
The amounts held in provisions on the balance sheet includes an amount owed to other group companies.
8
Creditors: amounts falling due after more than one year
2019
2018
£
£
Bank loans and overdrafts
3,713,796
3,713,796
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 Jonathan Brodie ACA.
The auditor was Lopian Gross Barnett & Co.
HARLEY SCOTT RESIDENTIAL LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2019
- 8 -
10
Related party transactions
During the year there were no related party transactions outside the normal course of business.
11
Prior period adjustment
The prior period adjustment has arisen due to the fair value of the investment property being incorrectly stated in the prior period.