Company Registration No. 06396474 (England and Wales)
CRYSTAL WHITE RESIDENTIAL LIMITED
UNAUDITED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2018
PAGES FOR FILING WITH REGISTRAR
CRYSTAL WHITE RESIDENTIAL LIMITED
CONTENTS
Page
Balance sheet
1 - 2
Statement of changes in equity
3
Notes to the financial statements
4 - 8
CRYSTAL WHITE RESIDENTIAL LIMITED
BALANCE SHEET
AS AT
31 DECEMBER 2018
31 December 2018
- 1 -
2018
2017
Notes
£
£
£
£
Fixed assets
Investment properties
2
4,769,320
7,562,872
Current assets
Debtors
3
1,891,835
753,791
Cash at bank and in hand
7,716
16,763
1,899,551
770,554
Creditors: amounts falling due within one year
4
(2,768,885)
(4,399,541)
Net current liabilities
(869,334)
(3,628,987)
Total assets less current liabilities
3,899,986
3,933,885
Provisions for liabilities
(288,220)
(338,000)
Net assets
3,611,766
3,595,885
Capital and reserves
Called up share capital
5
1
1
Non-distributable profits reserve
6
3,072,184
3,334,184
Distributable profit and loss reserves
539,581
261,700
Total equity
3,611,766
3,595,885
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 31 December 2018 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.
CRYSTAL WHITE RESIDENTIAL LIMITED
BALANCE SHEET (CONTINUED)
AS AT
31 DECEMBER 2018
31 December 2018
- 2 -
The financial statements were approved by the board of directors and authorised for issue on 25 September 2019 and are signed on its behalf by:
M Cook
Director
Company Registration No. 06396474
CRYSTAL WHITE RESIDENTIAL LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2018
- 3 -
Share capital
Non-distri-butable profits
Profit and loss reserves
Total
£
£
£
£
Balance at 1 January 2017
1
3,134,184
287,393
3,421,578
Year ended 31 December 2017:
Profit and total comprehensive income for the year
-
200,000
(25,693)
174,307
Balance at 31 December 2017
1
3,334,184
261,700
3,595,885
Year ended 31 December 2018:
Profit for the year
-
-
15,881
15,881
Other comprehensive income:
Fair value adjustments reclassified to profit or loss
-
(262,000)
262,000
-
Total comprehensive income for the year
-
(262,000)
277,881
15,881
Balance at 31 December 2018
1
3,072,184
539,581
3,611,766
CRYSTAL WHITE RESIDENTIAL LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2018
- 4 -
1
Accounting policies
Company information
Crystal White Residential Limited is a
private
company
limited by shares
incorporated in England and Wales.
The registered office is
8 Durweston Street, London, W1H 1EW.
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.
1.2
Going concern
Funding for long term investment property is through a facility granted to an associated company and is renewable annually. This funding is therefore disclosed in current liabilities.
The directors have a good working relationship with the principal bankers which has existed for many years, The current facility (renewed 30th June 2017) is for a term of three years. The directors are confident therefore that the financial support will continue for as long as it is required. The accounts therefore are prepared on the going concern basis.
1.3
Turnover
Turnover represents rent receivable and occasional sales of let property where the property or part of the property has been bought for trade rather than investment.
Revenue from the sale of
property
is recognised when the significant risks and rewards of ownership of the
property
have passed to the buyer, the amount of revenue can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the entity and the costs incurred or to be incurred in respect of the transaction can be measured reliably.
1.4
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.
1.5
Cash and cash equivalents
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.
CRYSTAL WHITE RESIDENTIAL LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2018
1
Accounting policies
(Continued)
- 5 -
1.6
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.
1.7
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.
1.8
Derivatives
Derivatives are initially recognised at fair value at the date a derivative contract is entered into and are subsequently remeasured to fair value at each reporting end date. The resulting gain or loss is recognised in profit or loss immediately unless the derivative is designated and effective as a hedging instrument, in which event the timing of the recognition in profit or loss depends on the nature of the hedge relationship.
A derivative with a positive fair value is recognised as a financial asset, whereas a derivative with a negative fair value is recognised as a financial liability.
1.9
Taxation
The tax expense represents the sum of the tax currently payable and deferred tax.
CRYSTAL WHITE RESIDENTIAL LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2018
1
Accounting policies
(Continued)
- 6 -
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 taxation is provided in full in respect of taxation deferred by timing differences between the treatment of certain items for taxation and accounting purposes. The deferred tax balance has not been discounted. Deferred tax is not provided on timing differences arising from the revaluation of fixed asset where there is no commitment to sell.
2
Investment property
2018
£
Fair value
At 1 January 2018
7,562,872
Additions
15,615
Disposals
(2,547,167)
Revaluations
(262,000)
At 31 December 2018
4,769,320
Investment property was valued on an open market basis on 31 December 2018 by Mr A Holmwood ARICS, a director of the company.
3
Debtors
2018
2017
Amounts falling due within one year:
£
£
Trade debtors
10,306
7,750
Other debtors
1,881,529
746,041
1,891,835
753,791
CRYSTAL WHITE RESIDENTIAL LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2018
- 7 -
4
Creditors: amounts falling due within one year
2018
2017
£
£
Trade creditors
2,906
2,617
Taxation and social security
13,866
-
Other creditors
2,752,113
4,396,924
2,768,885
4,399,541
The following secured debts are included within creditors:
Associated companies: £
2,733,668
(201
7
- £
4,371,344
)
This company and other companies under common ownership have agreed a corporate facility with their principal bank, the terms of which are that a facility is provided to Ernle Estates Limited, which in turn finances the property assets of commonly controlled companies. Principal finance for this company is therefore accounted for in the balance sheet within amounts owed to associated companies. The amount due is secured by a charge over the property stock.
5
Called up share capital
2018
2017
£
£
Ordinary share capital
Issued and fully paid
1 Ordinary share of £1 each
1
1
6
Non-distributable profits reserve
2018
2017
£
£
At the beginning of the year
3,334,184
3,134,184
Non distributable profits in the year
(262,000)
200,000
At the end of the year
3,072,184
3,334,184
This reserve is used to record increases in the fair value of investment property and decreases to the
extent that such decrease relates to an increase on the same asset.
7
Financial commitments, guarantees and contingent liabilities
The company is a party to a cross guarantee for bank facilities as described in note 4 above. At the balance sheet date the amount utilised under this agreement was £55.5m (31 December 2017 - £57.5m).
CRYSTAL WHITE RESIDENTIAL LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2018
- 8 -
8
Related party transactions
Intercompany balances existing at the balance sheet date between the company and companies associated with the directors are unsecured, repayable on demand and carry no interest.
Included in interest payable and similar charges is £
123,714
(201
7
: £
141,923)
in respect of interest and £
13,736 (
201
7
- £
17,474
) in respect of facility fees on the corporate loan through Ernle Estates Limited.
Included in administrative expenses is £30,000 (2017 - £nil) in respect of staff salaries and National Insurance incurred by staff employed by Ernle Estates Limited in respect of work performed for and on behalf of Crystal White Residential Limited
9
Parent company
The company is a wholly owned subsidiary of Triplecrown Holdings Limited, which company is incorporated in England. Copies of the accounts of Triplecrown Holdings Limited are available from Companies House.
Mr Mark Cook is the ultimate controlling party.