Company Registration No. 08276263 (England and Wales)
GLOBEGOLD LIMITED
UNAUDITED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2019
PAGES FOR FILING WITH REGISTRAR
GLOBEGOLD LIMITED
CONTENTS
Page
Balance sheet
1 - 2
Notes to the financial statements
4 - 11
GLOBEGOLD LIMITED
BALANCE SHEET
AS AT 31 MARCH 2019
31 March 2019
- 1 -
2019
2018
Notes
£
£
£
£
Fixed assets
Tangible assets
3
25,702
2,533,209
Investment properties
4
5,834,976
2,450,000
Investments
5
1
1
5,860,679
4,983,210
Current assets
Debtors
6
68,886
239,062
Cash at bank and in hand
337,813
142,038
406,699
381,100
Creditors: amounts falling due within one year
7
(4,824,486)
(4,084,911)
Net current liabilities
(4,417,787)
(3,703,811)
Total assets less current liabilities
1,442,892
1,279,399
Provisions for liabilities
8
(128,222)
(150,069)
Net assets
1,314,670
1,129,330
Capital and reserves
Called up share capital
9
100
100
Non-distributable profits reserve
10
754,536
882,758
Distributable profit and loss reserves
560,034
246,472
Total equity
1,314,670
1,129,330
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 March 2019 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.
GLOBEGOLD LIMITED
BALANCE SHEET (CONTINUED)
AS AT 31 MARCH 2019
31 March 2019
- 2 -
The financial statements were approved by the board of directors and authorised for issue on 10 October 2019 and are signed on its behalf by:
M J Harrison
Director
Company Registration No. 08276263
GLOBEGOLD LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 MARCH 2019
- 3 -
Share capital
Non-distri-butable profits
Profit and loss reserves
Total
£
£
£
£
Balance at 1 April 2017
100
-
1,042,052
1,042,152
Year ended 31 March 2018:
Profit and total comprehensive income for the year
-
-
87,178
87,178
Transfers
-
882,758
(882,758)
-
Balance at 31 March 2018
100
882,758
246,472
1,129,330
Year ended 31 March 2019:
Profit and total comprehensive income for the year
-
21,847
163,493
185,340
Transfers
-
(150,069)
150,069
-
Balance at 31 March 2019
100
754,536
560,034
1,314,670
GLOBEGOLD LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2019
- 4 -
1
Accounting policies
Company information
Globegold Limited is a
private
company
limited by shares
incorporated in England and Wales.
The registered office is
Westgate Chambers, 8a Elm Park Road, Pinner, Middlesex, HA5 3LA.
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
rental income
provided in the normal course of business
, and
is shown net of VAT
.
When cash inflows are deferred and represent a financing arrangement, the fair value of the consideration is the present value of the future receipts. The difference between the fair value of the consideration and the nominal amount received is recognised as interest income.
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:
Fixtures, fittings & equipment
25% per annum reducing balance
Property, plant and equipment
Not depreciated
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
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
Fixed asset investments
Unlisted investments are measured at cost of the investment including any transaction cost.
GLOBEGOLD LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2019
1
Accounting policies
(Continued)
- 5 -
1.6
Impairment of fixed assets
At each reporting
period
end date, the
company
reviews the carrying amounts of its tangible
assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company
estimates the recoverable amount of the cash-generating unit to which the asset belongs.
Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.
If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.
Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit)
in
prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.
1.7
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.
1.8
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.
GLOBEGOLD LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2019
1
Accounting policies
(Continued)
- 6 -
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.
1.9
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.
1.10
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.
1.11
Leases
Rentals payable under operating leases,
including
any lease incentives received, are charged to
profit or loss
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
s
asset are consumed.
GLOBEGOLD LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2019
- 7 -
2
Employees
The average monthly number of persons (including directors) employed by the company during the year was 4 (2018 - 4).
3
Tangible fixed assets
Fixtures, fittings & equipment
Property, plant and equipment
Total
£
£
£
Cost
At 1 April 2018
35,000
2,498,939
2,533,939
Transfers
-
(2,498,939)
(2,498,939)
At 31 March 2019
35,000
-
35,000
Depreciation and impairment
At 1 April 2018
730
-
730
Depreciation charged in the year
8,568
-
8,568
At 31 March 2019
9,298
-
9,298
Carrying amount
At 31 March 2019
25,702
-
25,702
At 31 March 2018
34,270
2,498,939
2,533,209
The property, plant and equipment of £2,498,939 in the previous year represent investment properties acquired and under refurbishment. Those were transferred to investment properties during the year after completion of the refurbishment.
4
Investment property
2019
£
Fair value
At 1 April 2018
2,450,000
Additions
886,037
Transfers
2,498,939
At 31 March 2019
5,834,976
Investment property comprises freehold and leasehold properties. The investment property fair value of £5,834,976 includes additions during the year of £886,037 and transfers from property, plant and equipment amounting to £2,498,939. In the opinion of the directors the fair value of the properties are equal to the market value.
GLOBEGOLD LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2019
4
Investment property
(Continued)
- 8 -
The investment properties are secured by way of a bank guarantee in respect of Careco UK Ltd, a company in which M J Harrison and W Harrison are directors.
The bank has a fixed and floating charge over the investment properties.
5
Fixed asset investments
2019
2018
£
£
Investments
1
1
The investment represents 33.3% shareholding in 32 High Street Limited, a UK registered company.
Movements in fixed asset investments
Investments other than loans
£
Cost or valuation
At 1 April 2018 & 31 March 2019
1
Carrying amount
At 31 March 2019
1
At 31 March 2018
1
6
Debtors
2019
2018
Amounts falling due within one year:
£
£
Trade debtors
35,800
54,024
Corporation tax recoverable
24,510
-
Other debtors
8,576
185,038
68,886
239,062
GLOBEGOLD LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2019
- 9 -
7
Creditors: amounts falling due within one year
2019
2018
£
£
Trade creditors
5,672
6,507
Corporation tax
31,879
-
Other taxation and social security
12,051
-
Other creditors
4,774,884
4,078,404
4,824,486
4,084,911
8
Deferred taxation
The following are the major deferred tax liabilities and assets recognised by the company and movements thereon:
Liabilities
Liabilities
2019
2018
Balances:
£
£
Investment property
128,222
150,069
2019
Movements in the year:
£
Liability at 1 April 2018
150,069
Credit to other comprehensive income
(21,847)
Liability at 31 March 2019
128,222
The deferred tax liability set out above relates to the fair value revaluation on the investment property and is not expected to reverse in the following year.
9
Called up share capital
2019
2018
£
£
Ordinary share capital
Issued and fully paid
100 Ordinary Shares of £1 each
100
100
GLOBEGOLD LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2019
- 10 -
10
Non-distributable profits reserve
2019
2018
£
£
At the beginning of the year
882,758
-
Non distributable profits in the year
21,847
-
Transfer of non-distributable profits relating to prior periods
(150,069)
882,758
At the end of the year
754,536
882,758
11
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:
2019
2018
£
£
54,896
68,620
GLOBEGOLD LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2019
- 11 -
12
Related party transactions
Careco (UK) Limited (a company in which M J Harrison and W Harrison are directors).
Rental income of £256,917 (2018: £165,000) was receivable from Careco UK Limited.
The balance due from the company at the year end was £35,800 (2018: £51,126) which is included within debtors.
Spacemaker Group Limited (a company in which M J Harrison and W Harrison are directors).
Loans advanced from the company during the year amounted to £735,283 (2018: £624,467).
The balance owed to the company at the year ended was £1,359,750 (2018: £624,467) and is included within other creditors. The loan is interest free and payable on demand.
2019-03-31
2018-04-01
false
10 October 2019
CCH Software
CCH Accounts Production 2019.301
No description of principal activity
M J Harrison
W Harrison
L Harrison
J Harrison
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