Company Registration No. 06842255 (England and Wales)
ORCHARDS OF LONDON LIMITED
UNAUDITED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2017
PAGES FOR FILING WITH REGISTRAR
ORCHARDS OF LONDON LIMITED
COMPANY INFORMATION
Directors
P Connolly
D Diggins
L Doherty
Secretary
D Diggins
Company number
06842255
Registered office
82 High Street
Acton
W3 6QX
Accountants
Goldblatts
171-173 Gray's Inn Road
London
WC1X 8UE
ORCHARDS OF LONDON LIMITED
CONTENTS
Page
Balance sheet
1 - 2
Notes to the financial statements
3 - 7
ORCHARDS OF LONDON LIMITED
BALANCE SHEET
AS AT
31 DECEMBER 2017
31 December 2017
- 1 -
2017
2016
Notes
£
£
£
£
Fixed assets
Tangible assets
3
56,871
76,963
Current assets
Debtors
4
113,030
74,869
Cash at bank and in hand
690,255
779,446
803,285
854,315
Creditors: amounts falling due within one year
5
(423,201)
(603,733)
Net current assets
380,084
250,582
Total assets less current liabilities
436,955
327,545
Provisions for liabilities
(7,720)
-
Net assets
429,235
327,545
Capital and reserves
Called up share capital
6
13
13
Share premium account
249,998
249,998
Profit and loss reserves
179,224
77,534
Total equity
429,235
327,545
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 2017 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.
T
he directors acknowledge their responsibilities for complying with the requirements of the Act 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.
ORCHARDS OF LONDON LIMITED
BALANCE SHEET (CONTINUED)
AS AT
31 DECEMBER 2017
31 December 2017
- 2 -
The financial statements were approved by the board of directors and authorised for issue on 13 April 2018 and are signed on its behalf by:
P Connolly
Director
Company Registration No. 06842255
ORCHARDS OF LONDON LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2017
- 3 -
1
Accounting policies
Company information
Orchards of London Limited is a
private
company
limited by shares
incorporated in England and Wales.
The registered office is
82 High Street, Acton, W3 6QX.
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
Turnover
Turnover is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business
, and
is shown net of VAT and other sales related taxes
.
The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.
Commission on property sales is recognised on completion. Commission on lettings and associated income is recognised on inception of the tenancy agreement.
1.3
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:
Land and buildings - Short leasehold
Over the period of the lease - 12 and 15 years
Fixtures, fittings & equipment
20% reducing balance
Computer equipment
33% reducing balance
Motor vehicles
25% reducing balance
The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and
is credited or charged to profit or loss
.
1.4
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.
ORCHARDS OF LONDON LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2017
1
Accounting policies
(Continued)
- 4 -
1.5
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.
1.6
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.
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.
1.7
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.
1.8
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
1.9
Leases
Rentals payable under operating leases,
including
any lease incentives received, are charged to income on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the lease asset are consumed.
Rental income from operating leases is recognised on a straight line basis over the term of the relevant lease. Initial direct costs incurred in negotiating and arranging an operating lease are added to the carrying amount of the leased asset and recognised on a straight line basis over the lease term.
ORCHARDS OF LONDON LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2017
1
Accounting policies
(Continued)
- 5 -
1.10
Software development costs
Software development expenditure is written off to the profit and loss account in the year in which it is incurred unless the directors are satisfied as to the technical, commercial and financial viability of individual projects. In this situation, the expenditure is deferred and amortised over the period during which the company is expected to benefit.
2
Employees
The average monthly number of persons (including directors) employed by the company during the year was 25 (2016 - 33).
3
Tangible fixed assets
Land and buildings
Plant and machinery etc
Total
£
£
£
Cost
At 1 January 2017
22,351
142,732
165,083
Disposals
-
(18,000)
(18,000)
At 31 December 2017
22,351
124,732
147,083
Depreciation and impairment
At 1 January 2017
4,609
83,511
88,120
Depreciation charged in the year
1,498
11,734
13,232
Eliminated in respect of disposals
-
(11,140)
(11,140)
At 31 December 2017
6,107
84,105
90,212
Carrying amount
At 31 December 2017
16,244
40,627
56,871
At 31 December 2016
17,742
59,221
76,963
4
Debtors
2017
2016
Amounts falling due within one year:
£
£
Trade debtors
27,051
7,175
Other debtors
85,979
67,694
113,030
74,869
ORCHARDS OF LONDON LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2017
- 6 -
5
Creditors: amounts falling due within one year
2017
2016
£
£
Bank loans and overdrafts
2,656
17,712
Trade creditors
65,894
125,880
Other taxation and social security
90,858
109,775
Other creditors
263,793
350,366
423,201
603,733
The bank overdraft is secured by
unsecured personal guarantees of directors, P Connolly and J Murphy (see Note 9).
6
Called up share capital
2017
2016
£
£
Ordinary share capital
Issued and fully paid
13 Ordinary shares of £1 each
13
13
13
13
The company has one class of ordinary shares which carry no right to fixed income.
7
Operating lease commitments
Lessee
At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, as follows:
2017
2016
£
£
1,029,096
1,132,671
Lessor
At the reporting end date the company had contracted with tenants for the following minimum lease payments:
2017
2016
£
£
10,000
-
ORCHARDS OF LONDON LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2017
- 7 -
8
Related party transactions
Remuneration of key management personnel
The remuneration of key management personnel is as follows.
2017
2016
£
£
Aggregate compensation
184,920
192,671
Transactions with related parties
The following amounts were outstanding at the reporting end date:
2017
2016
Amounts owed to related parties
£
£
Key management personnel
2,300
4,489
The amounts outstanding are unsecured
,
interest-free, repayable on demand and will be settled in cash.
Included above is an amount due to a director in the sum of £0 (2016: £2,838) in respect his director's loan account. The loan is interest-free, unsecured and repayable on demand.
9
Directors' transactions
Dividends totalling £125,000 (2016 - £36,000) were paid in the year in respect of shares held by the company's directors.
Loans
have been granted by the company to its directors as follows:
Description
% Rate
Opening balance
Amounts advanced
Interest charged
Amounts repaid
Closing balance
£
£
£
£
£
Director's loan
3.00
(2,388)
112,758
286
(84,803)
25,853
Director's loan
3.00
19,551
52,743
413
(61,100)
11,607
17,163
165,501
699
(145,903)
37,460
The loans were unsecured and repayable on demand. The maximum amounts outstanding during the year on the above loans were £25,853 and £28,523 respectively.
The company has entered into guarantees for its directors as follows:
Two directors, have provided unsecured personal guarantees to the company's bankers, up to a maximum of £20,000 in connection with a bank overdraft facility.