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REGISTERED NUMBER:
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AUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2018 |
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WA CAPITAL INVESTMENTS LIMITED |
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REGISTERED NUMBER:
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AUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2018 |
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FOR |
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WA CAPITAL INVESTMENTS LIMITED |
WA CAPITAL INVESTMENTS LIMITED (REGISTERED NUMBER: 08868065) |
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CONTENTS OF THE FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 30 JUNE 2018 |
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Page |
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Company Information | 1 |
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Balance Sheet | 2 |
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Notes to the Financial Statements | 3 |
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WA CAPITAL INVESTMENTS LIMITED |
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COMPANY INFORMATION |
FOR THE YEAR ENDED 30 JUNE 2018 |
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DIRECTORS: |
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REGISTERED OFFICE: |
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REGISTERED NUMBER: |
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INDEPENDENT AUDITORS : |
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Statutory Auditor, Chartered Accountants |
St Nicholas House |
Park Row |
Nottingham |
NG1 6FQ |
WA CAPITAL INVESTMENTS LIMITED (REGISTERED NUMBER: 08868065) |
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BALANCE SHEET |
30 JUNE 2018 |
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30/6/18 | 30/6/17 |
Notes | £ | £ |
FIXED ASSETS |
Investments | 5 |
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CURRENT ASSETS |
Debtors | 6 |
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Cash at bank |
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CREDITORS |
Amounts falling due within one year | 7 |
( |
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( |
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NET CURRENT LIABILITIES |
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TOTAL ASSETS LESS CURRENT
LIABILITIES |
( |
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( |
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CREDITORS |
Amounts falling due after more than
one year |
8 |
( |
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NET LIABILITIES |
( |
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( |
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CAPITAL AND RESERVES |
Called up share capital |
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Retained earnings |
( |
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( |
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( |
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In accordance with Section 444 of the Companies Act 2006, the Profit and loss account has not been delivered. |
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The financial statements were approved by the Board of Directors on
signed on its behalf by: |
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WA CAPITAL INVESTMENTS LIMITED (REGISTERED NUMBER: 08868065) |
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NOTES TO THE FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 30 JUNE 2018 |
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1. | STATUTORY INFORMATION |
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WA Capital Investments Limited is a
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England and Wales. The company's registered number and registered office address can be |
found on the Company Information page. |
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The presentation currency of the financial statements is the Pound Sterling (£). |
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2. | ACCOUNTING POLICIES |
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Basis of preparing the financial statements |
These financial statements were prepared in accordance with applicable United Kingdom |
accounting standards, including Financial Reporting Standard 102 The Financial Reporting |
Standard applicable in the UK and Republic of Ireland ("FRS 102") as issued in August |
2014, and with the Companies Act 2006 (as applicable to companies subject to the small |
companies' regime). The changes to FRS 102 issued in September 2015 effective for |
periods beginning on or after 1 January 2016 have been adopted and therefore, as a small |
company the financial statements have been prepared under section 1A the small entities |
regime of FRS 102. |
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The financial statements have been prepared on the going concern basis, notwithstanding |
net current liabilities of £185,086,059 (FY17 £154,165,669) and net liabilities of £93,286,859 |
(FY17 45,895,669) and a current year loss of £47,390,390 (FY17 £45,895,670). The |
directors are of the opinion that the company has adequate resources to continue in |
operational existence for the foreseeable future. In the company's financial covenant |
calculation, the indebtedness excludes any intercompany loan. The company's banker holds |
the company's share portfolio plus cash as collateral against the lending. The Directors are |
confident that there is sufficient margin between the current value of the shares and the |
price at which the bank facility would be recalled. On this basis they continue to adopt the |
going concern basis of accounting in preparing the annual financial statements. |
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Financial Reporting Standard 102 - reduced disclosure exemptions |
The Company has taken advantage of the following disclosure exemptions in preparing |
these financial statements, as permitted by FRS 102 "The Financial Reporting Standard |
applicable in the UK and Republic of Ireland". |
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- the requirement of Section 7 Statement of Cash Flows; |
- the requirement of Section 33 Related Party Disclosure paragraph 33.7; |
- key management personnel compensation; |
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Significant judgements and estimates |
The Directors are continually evaluating estimates and judgements based on historical |
experience and other factors, including expectation of future events that are believed to be |
reasonable under the circumstances. The resulting accounting estimates will, by definition, |
seldom equal the related actual results. |
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The Directors consider that there are no critical accounting judgements in applying the |
Company's accounting policies. |
WA CAPITAL INVESTMENTS LIMITED (REGISTERED NUMBER: 08868065) |
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NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 30 JUNE 2018 |
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2. | ACCOUNTING POLICIES - continued |
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Financial risk management |
The company uses financial instruments, comprising loans, cash and other liquid resources |
and various other items such as trade debtors, creditors and finance arrangements that arise |
directly from its operations. The main purpose of these financial instruments is to raise |
finance for its operations. The main issues arising from the company's financial instruments |
are liquidity risk and interest rate risk. The directors review and agree policies for managing |
each of these risks and they are summarised below. The policies have remained unchanged |
from the previous period. |
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Liquidity risk |
The company seeks to manage financial risk by ensuring sufficient liquidity is available to |
meet foreseeable needs by negotiating adequate facilities from the Company's bankers and |
other lenders as well as its parent company WA Capital Limited. |
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Interest rate risk |
The company finances its operations through a mixture of intercompany loans and bank |
borrowings. The company regularly reviews its exposure to interest rate fluctuations. |
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Financial Instruments |
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. |
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Financial instruments are recognised in the balance sheet when the company becomes party |
to the contractual provisions of the instrument. |
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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. |
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Other financial assets |
Other financial assets, including investments in equity instruments and derivatives, are |
initially measured at fair value, which is normally the transaction price. Such assets are |
subsequently carried at fair value and the changes in fair value are recognised in profit or |
loss, except that investments in equity instruments that are not publicly traded and whose |
fair values cannot be measured reliably are measured at cost less impairment. |
WA CAPITAL INVESTMENTS LIMITED (REGISTERED NUMBER: 08868065) |
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NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 30 JUNE 2018 |
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2. | ACCOUNTING POLICIES - continued |
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Impairment of financial assets |
Financial assets, other than those held at fair value through profit and loss, are assessed for |
indicators of impairment at each reporting end date. Financial assets are impaired where |
there is objective evidence that, as a result of one or more events that occurred after the |
initial recognition of the financial asset, the estimated future cash flows have been affected. |
If an asset is impaired, the impairment loss is the difference between the carrying amount |
and the present value of the estimated cash flows discounted at the asset's original effective |
interest rate. The impairment loss is recognised in profit or loss. |
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If there is a decrease in the impairment loss arising from an event occurring after the |
impairment was recognised, the impairment is reversed. The reversal is such that the current |
carrying amount does not exceed what the carrying amount would have been, had the |
impairment not previously been recognised. The impairment reversal is recognised in profit |
or loss. |
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Derecognition of financial assets |
Financial assets are derecognised only when the contractual rights to the cash flows from |
the asset expire or are settled, or when the company transfers the financial asset and |
substantially all the risks and rewards of ownership to another entity, or if some significant |
risks and rewards of ownership are retained but control of the asset has transferred to |
another party that is able to sell the asset in its entirety to an unrelated third party. |
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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. |
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Basic financial liabilities |
Basic financial liabilities, including creditors, bank loans, loans from fellow group companies, |
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 |
receipts 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. |
Amounts 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. |
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Other financial liabilities |
Derivatives, including interest rate swaps and forward foreign exchange contracts, are not |
basic financial instruments. Derivatives are initially recognised at fair value on the date a |
derivative contract is entered into and are subsequently re-measured at their fair value. |
Changes in the fair value of derivatives are recognised in profit or loss. Debt instruments that |
do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured at fair |
value through profit or loss. |
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Derecognition of financial liabilities |
Financial liabilities are derecognised when the company's contractual obligations expire or |
are discharged or cancelled. |
WA CAPITAL INVESTMENTS LIMITED (REGISTERED NUMBER: 08868065) |
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NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 30 JUNE 2018 |
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2. | ACCOUNTING POLICIES - continued |
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Taxation |
Taxation for the year comprises current and deferred tax. Tax is recognised Profit and loss |
account, except to the extent that it relates to items recognised in other comprehensive |
income or directly in equity. |
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Current or deferred taxation assets and liabilities are not discounted. |
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Current tax is recognised at the amount of tax payable using the tax rates and laws that |
have been enacted or substantively enacted by the balance sheet date. |
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Deferred tax |
Deferred tax is recognised in respect of all timing differences that have originated but not |
reversed at the balance sheet date. |
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Timing differences arise from the inclusion of income and expenses in tax assessments in |
periods different from those in which they are recognised in financial statements. Deferred |
tax is measured using tax rates and laws that have been enacted or substantively enacted |
by the year end and that are expected to apply to the reversal of the timing difference. |
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Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it |
is probable that they will be recovered against the reversal of deferred tax liabilities or other |
future taxable profits. |
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Income recognition |
Dividends are accounted for when receivable by the company. Interest is accounted for as it |
falls due. |
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3. | EMPLOYEES AND DIRECTORS |
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The average number of employees during the year was NIL (2017 - NIL). |
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4. | AUDITORS' REMUNERATION |
30/6/18 | 30/6/17 |
£ | £ |
Fees payable to the company's auditors for the audit of the
company's financial statements |
3,000 |
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5. | FIXED ASSET INVESTMENTS |
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6. | DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
30/6/18 | 30/6/17 |
£ | £ |
Other debtors |
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WA CAPITAL INVESTMENTS LIMITED (REGISTERED NUMBER: 08868065) |
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NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 30 JUNE 2018 |
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7. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
30/6/18 | 30/6/17 |
£ | £ |
Bank loans and overdrafts (see note
9) |
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Amounts owed to group undertakings |
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Accruals and deferred income |
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In addition to the bank debt which has a security interest granted against the Investments |
held. The company has loans from its parent company, WA Capital Limited which are |
unsecured repayable on demand. |
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8. |
CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN
ONE YEAR |
30/6/18 | 30/6/17 |
£ | £ |
Bank loans (see note 9) |
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9. | LOANS |
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An analysis of the maturity of loans is given below: |
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30/6/18 | 30/6/17 |
£ | £ |
Amounts falling due within one year or on demand: |
Bank loans |
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Amounts falling due between one and two years: |
Bank loans |
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10. | DISCLOSURE UNDER SECTION 444(5B) OF THE COMPANIES ACT 2006 |
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The Auditors' Report was unqualified. |
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for and on behalf of
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11. | RELATED PARTY DISCLOSURES |
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The immediate and ultimate parent undertaking is WA Capital Limited, a company |
incorporated in England and Wales with registered address of Two Marlborough Court, |
Watermead Business Park, Syston, Leicestershire LE7 1AD. |
WA CAPITAL INVESTMENTS LIMITED (REGISTERED NUMBER: 08868065) |
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NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 30 JUNE 2018 |
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12. | FINANCIAL INSTRUMENTS |
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30/6/18 | 30/6/17 |
Notes | £ | £ |
Financial assets measured at fair value
through profit and loss |
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Listed investments | 9 | 181,800,000 | 108,270,000 |
Financial assets that are debt instruments
measured at amortised cost |
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Other debtors | 10 | - | 5,000 |
181,800,000 | 108,275,000 |
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Financial liabilities measured at amortised
cost |
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Amount owed to group undertakings | 11 | 204,212,135 | 103,969,606 |
Accruals | 11 | 74,806 | 43,773 |
Bank loans and overdrafts | 12 | 90,000,000 | 63,000,000 |
294,286,941 | 167,013,379 |
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Basis for determining fair value |
The listed investments are valued at their quoted closing price on the year end date. The |
listed investments valued at £181,800,000 form the collateral used for the bank margin loan |
facility in addition to the cash of £19,200,882 held at the year end. |
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13. | DEFERRED TAX |
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The company has not recognised a deferred tax asset on unrealised investment losses of |
£8,234,653 (2017: £688,684). |