AAIM Lagonda Purchaser Ltd is a private company limited by shares incorporated in England and Wales. The registered office is 22 Westminster Palace Gardens, Artillery Row, London, SW1P 1RR.
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 company has taken advantage of the exemption under section 399 of the Companies Act 2006 not to prepare consolidated accounts , on the basis that the group of which this is the parent qualifies as a small group . The financial statements present information about the company as an individual entity and not about its group .
The company has long term funding in place comprising unsecured subordinated loan note funding which is not ultimately repayable until 2031, and a loan of £1,000,000 which is due for repayment in January 2021. The Directors have a reasonable expectation that sufficient working capital and loan facilities will be available to the company in order to allow it to continue in operational existence for the foreseeable future.
The interest payable on the loan due in 2021 is unhedged. The interest payable on the unsecured subordinated loan notes is fixed at 1% and if unpaid, is accrued through the period of the debt instrument.
The asset cover covenant is tested on an annual basis by reference to the most recent formal valuation. As the company has disposed of its investment properties both the asset cover covenant and the interest cover covenant have been waived by the lender as at 31st December 2017.
After making enquiries the Directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Accordingly they continue to adopt the going concern basis in preparing the financial statements.
Goodwill represents the excess of the cost of acquisition of unincorporated businesses over the fair value of net assets acquired. It is initially recognised as an asset at cost and is subsequently measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is considered to have a finite useful life and is amortised on a systematic basis over its expected life.
For the purposes of impairment testing, goodwill is allocated to the cash-generating units expected to benefit from the acquisition. Cash-generating units to which goodwill has been allocated are tested for impairment at least annually, or more frequently when there is an indication that the unit may be impaired. If the recoverable amount of the cash-generating unit is less than the carrying amount of the unit, the impairment loss is allocated first to reduce the carrying amount of any goodwill allocated to the unit and then to the other assets of the unit pro-rata on the basis of the carrying amount of each asset in the unit.
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.
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, 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.
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.
Investments
Investments are shown at their market value after accounting for impairment.
The average monthly number of persons (including directors) employed by the company during the year was 0 (2016 - 0)
In the previous year the company wrote off the full value (£43,617) of an investment in Artillery Investments S.A.R.L., a company under common control. This was purchased from its parent company, No reportable transactions occurred in the 2017 year.
The immediate parent company is DPK Real Estate Services Ltd a company incorporated in Great Britain who's registered office is 22 Westminster Palace Gardens, Artillery Row, London, SW1P 1RR. DPK Real Estate Services Ltd is part of a small group who's main controlling entity is DPK Real Estate LLP, a limited liability partnership incorporated in Great Britain with the same registered office as its parent.
The ultimate controlling party is David Maxwell by virtue of his holding in DPK Real Estate LLP.