Company Registration No. 09119696 (England and Wales)
101 LONGREACH LIMITED
UNAUDITED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2018
PAGES FOR FILING WITH REGISTRAR
101 LONGREACH LIMITED
CONTENTS
Page
Balance sheet
1 - 2
Notes to the financial statements
3 - 7
101 LONGREACH LIMITED
BALANCE SHEET
AS AT
31 MARCH 2018
31 March 2018
- 1 -
2018
2017
Notes
£
£
£
£
Fixed assets
Investment properties
3
4,520,000
2,850,000
Current assets
Debtors
4
100
100
Cash at bank and in hand
45,087
37,750
45,187
37,850
Creditors: amounts falling due within one year
5
(316,155)
(300,631)
Net current liabilities
(270,968)
(262,781)
Total assets less current liabilities
4,249,032
2,587,219
Creditors: amounts falling due after more than one year
6
(2,030,513)
(2,135,904)
Provisions for liabilities
(154,471)
(19,753)
Net assets
2,064,048
431,562
Capital and reserves
Called up share capital
7
100
100
Other reserves
8
1,794,857
277,747
Profit and loss reserves
269,091
153,715
Total equity
2,064,048
431,562
The director of the company has elected not to include a copy of the profit and loss account within the financial statements.
true
For the financial year ended 31 March 2018 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.
T
he director acknowledges his 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.
101 LONGREACH LIMITED
BALANCE SHEET (CONTINUED)
AS AT
31 MARCH 2018
31 March 2018
- 2 -
The financial statements were approved and signed by the director and authorised for issue on 5 December 2018
P J McCarthy
Director
Company Registration No. 09119696
101 LONGREACH LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2018
- 3 -
1
Accounting policies
Company information
101 Longreach Limited is a
private
company
limited by shares
incorporated in England and Wales.
The registered office is
Thames House, Longreach Road, Barking, Essex, IG11 0JR.
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. The principal accounting policies adopted are set out below.
1.2
Going concern
The accounts have been prepared on a going concern basis despite net current liabilities of £
2
70
,9
68 (2017: £2
62
,
781
) as the shareholders and creditors have confirmed their continuing financial support and the director expects to receive income to meet obligations as and when they fall due.
1.3
Turnover
Turnover represents
rent and service charges receivable net of VAT.
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 investment properties whose fair value can be measured reliably without undue cost or effort on an on-going basis are measured at fair value. Gains and losses arising from changes in fair value of investment properties are included in the profit and loss account in the period in which they arise.
Investment properties whose fair value cannot be measured reliably without undue cost or effort on an on-going basis are accounted for as tangible fixed assets at cost less accumulated depreciation and accumulated impairment losses.
F
air value valuations are determined by the directors with the benefit of external professionals and available data on current market rents and rental yields for comparable local properties adjusted for any difference in nature, location or condition of the property.
1.5
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.
101 LONGREACH LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2018
1
Accounting policies
(Continued)
- 4 -
1.6
Financial instruments
The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ 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.
Other financial assets
Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, 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.
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 direct issue costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.
1.8
Taxation
The tax expense represents the sum of the tax currently payable and deferred tax.
101 LONGREACH LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2018
1
Accounting policies
(Continued)
- 5 -
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.
1.9
Joint Venture Arrangement not an Entity
The assets and liabilities of Joint Arrangements Not Entities are consolidated on a line by line basis in accordance with the percentage owned by the company.
1.10
Rental income from operating leases is recognised on a straight-line basis over the lease term.
2
Employees
The average monthly number of persons (including directors) employed by the company during the year was 1 (2017 - 1).
3
Investment property
2018
£
Fair value
At 1 April 2017
2,850,000
Revaluations
1,670,000
At 31 March 2018
4,520,000
Investment property comprises freehold property. The fair value of the investment property
is based on
a valuation carried out in
M
arch 2018 by Glenny LLP, a firm of Chartered Surveyors. The valuation was made on an open market value basis by reference to market evidence of transaction prices for similar properties.
101 LONGREACH LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2018
- 6 -
4
Debtors
2018
2017
Amounts falling due within one year:
£
£
Other debtors
100
100
5
Creditors: amounts falling due within one year
2018
2017
£
£
Bank loans and overdrafts
106,000
106,000
Trade creditors
1,333
-
Corporation tax
10,199
10,272
Other taxation and social security
8,280
8,148
Other creditors
190,343
176,211
316,155
300,631
Bank loans are secured on investment property and by a fixed and floating
charge
over the assets of the company.
6
Creditors: amounts falling due after more than one year
2018
2017
Notes
£
£
Bank loans and overdrafts
2,030,513
2,135,904
Bank loans are secured on investment property and by a fixed and floating charge over the assets of the company.
Amounts included above which fall due after five years are as follows:
Payable by instalments
1,606,513
1,711,905
7
Called up share capital
2018
2017
£
£
Ordinary share capital
Issued and not fully paid
100 Ordinary Shares of £1 each
100
100
100
100
8
Other reserves
101 LONGREACH LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2018
8
Other reserves
(Continued)
- 7 -
Fair value revaluation reserve
£
At 1 April 2016
-
Other movements
277,747
At 31 March 2017
277,747
Other movements
1,517,110
At 31 March 2018
1,794,857
Fair value revaluation reserve is net of deferred taxation.
9
Financial commitments, guarantees and contingent liabilities
The company and Saper Glass Industries Limited, the parent company, have provided cross guarantees for each others liabilities with the bank. At the year end, Saper Glass Industries Limited owed the bank £342,508
(2017: £332,007).
10
Operating lease commitments
Lessor
At the reporting end date the company had contracted with tenants for the following minimum lease payments:
2018
2017
£
£
371,169
545,565
11
Events after the reporting date
In May 2018, the company refinanced bank loans of £2,136,513 to £2,500,000 with Metro bank for a term of 10 years at
4.1% p.a
. Payments in the first year will be for interest only with capital repayments thereafter and a one off £1.6m payment at the end of the term.
It also provided its investment property as security to Metro Bank for Saper Glass Industries Limited's, the parent company's, overdraft facility.
12
Parent company
The ultimate parent company is
Saper
Glass Industries
Limited, a company registered in England and Wales.