Company registration number 09420378 (England and Wales)
Glentrool Land (Sherburn2) Limited
Unaudited financial statements
For The Year Ended 31 March 2023
Pages For Filing With Registrar
GLENTROOL LAND (SHERBURN2) LIMITED
CONTENTS
Page
Balance sheet
1 - 2
Notes to the financial statements
3 - 8
GLENTROOL LAND (SHERBURN2) LIMITED
BALANCE SHEET
AS AT
31 MARCH 2023
31 March 2023
- 1 -
2023
2022
Notes
£
£
£
£
Fixed assets
Investment properties
5
4,130,000
4,130,000
Investments
6
1,100
1,100
4,131,100
4,131,100
Current assets
Stocks
8
20,663,219
30,264,577
Debtors falling due after one year
9
603,682
881,399
Debtors falling due within one year
9
346,469
97,360
Cash at bank and in hand
14,705
131,615
21,628,075
31,374,951
Creditors: amounts falling due within one year
10
(4,367,676)
(9,875,846)
Net current assets
17,260,399
21,499,105
Total assets less current liabilities
21,391,499
25,630,205
Creditors: amounts falling due after more than one year
11
(25,784,836)
(31,493,590)
Provisions for liabilities
(1,013,000)
(1,013,000)
Net liabilities
(5,406,337)
(6,876,385)
Capital and reserves
Called up share capital
1,000
1,000
Profit and loss reserves
(5,407,337)
(6,877,385)
Total equity
(5,406,337)
(6,876,385)
GLENTROOL LAND (SHERBURN2) LIMITED
BALANCE SHEET (CONTINUED)
AS AT
31 MARCH 2023
31 March 2023
- 2 -
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 2023 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.
The member has 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.
The financial statements were approved by the board of directors and authorised for issue on 30 November 2023 and are signed on its behalf by:
Ms K A Pannu
Director
Company Registration No. 09420378
GLENTROOL LAND (SHERBURN2) LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023
- 3 -
1
Accounting policies
Company information
The company Glentrool Land (Sherburn2) Limited is a private company limited by shares incorporated in England and Wales. The registered office is 8 Wells Promenade, Ilkley, LS29 9LF.
1.1
Accounting convention
These financial statements have been prepared in accordance with 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 amounts in these financial statements are rounded to the nearest £1.
The financial statements have been prepared under the historical cost convention, modified to include the revaluation of investment properties and certain financial instruments at fair value. The principal accounting policies adopted are set out below.
The ultimate parent company is Glentrool Land and Estates Limited. The registered office of Glentrool Land and Estates Limited is 8 Wells Promenade, Ilkley, LS29 9LF. The group comprises a small group and as such is exempt from preparing group accounts.
1.2
Going concern
The financial statements are prepared on the going concern basis as the company is planning to undertake developments on its work in progress in the near future, and as it retains the support of its ultimate parent company, Glentrool Land and Estates Limited.true
1.3
Turnover
Turnover is recognised at the fair value of the consideration received or receivable for 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.
Rental income is recognised on a straight line basis across the period of the rental contract, with revenues accrued or deferred as appropriate to match revenues to this straight line accruals basis.
In the case of long term contracts, turnover reflects the contract activity during the year and represents a proportion of total contract value consistent with the actual stage of completion of the work. Where losses are anticipated on a contract, this loss is provided for in full from the point at which the loss is first anticipated, and unwound as the loss is recognised.
1.4
Intangible fixed assets - goodwill
Goodwill represents the excess of the cost of acquisition of unincorporated businesses over the fair value of net assets acquired. It is initially recognised as an asset at cost and is subsequently measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is considered to have a finite useful life and is amortised on a systematic basis over its expected life.
1.5
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 at the reporting end date. Changes in fair value are recognised in profit or loss.
GLENTROOL LAND (SHERBURN2) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
1
Accounting policies
(Continued)
- 4 -
1.6
Fixed asset investments
Interests in subsidiaries are initially measured at cost and subsequently measured at cost less any accumulated impairment losses. The investments are assessed for impairment at each reporting date and any impairment losses or reversals of impairment losses are recognised immediately in profit or loss.
A subsidiary is an entity controlled by the company. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.
1.7
Stocks
Stocks, representing commercial property developments, are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct expenditure on property, legal fees required in obtaining development status, and third party financing costs.
At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.
1.8
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.
1.9
Financial instruments
The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other 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.
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.
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.
GLENTROOL LAND (SHERBURN2) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
1
Accounting policies
(Continued)
- 5 -
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 and loans from fellow group companies 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 payments 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.
1.10
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.
1.11
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.
GLENTROOL LAND (SHERBURN2) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 6 -
2
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2023
2022
Number
Number
Total
5
4
3
Impairments
Included within cost of sales is an impairment expense of £nil (2022 - £3,921,307) relating to a specific provision for the recoverable value of land held within stock. The provision is associated with a sale completed on 17th November 2022.
4
Intangible fixed assets
Goodwill
£
Cost
At 1 April 2022 and 31 March 2023
3
Amortisation and impairment
At 1 April 2022 and 31 March 2023
3
Carrying amount
At 31 March 2023
At 31 March 2022
5
Investment property
2023
£
Fair value
At 1 April 2022 and 31 March 2023
4,130,000
Investment property comprises 14 acres of land. The land was valued at the year end by the directors and the fair value is deemed to be equal to the historic cost. Investment property is held as security against loans held by group company, Glentrool Estates Group Limited.
6
Fixed asset investments
2023
2022
£
£
Shares in group undertakings and participating interests
1,100
1,100
7
Subsidiaries
Details of the company's subsidiaries at 31 March 2023 are as follows:
GLENTROOL LAND (SHERBURN2) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
7
Subsidiaries
(Continued)
- 7 -
Name of undertaking
Registered office
Nature of business
Class of
% Held
shares held
Direct
Glentrool Development (No.2) Limited
England and Wales
Property development
Shares
100.00
Glentrool Development (No.1) Limited
England and Wales
Property development
Shares
100.00
The registered office of the above companies is the same as that of this company.
8
Stocks
2023
2022
£
£
Stocks
20,663,219
30,264,577
Stocks with a carrying amount of £20,614,331 (2022 - £30,227,076) have been pledged as security against the fixed charges of group debts as well as the floating charges held against the intercompany loan balance to Glentrool Land and Estates Limited, which is the ultimate parent company, as stated in note 11. The company is not allowed to pledge these assets as security for other borrowings or to sell them to another entity.
9
Debtors
2023
2022
Amounts falling due within one year:
£
£
Trade debtors
5,193
49,747
Other debtors
341,276
47,613
346,469
97,360
2023
2022
Amounts falling due after more than one year:
£
£
Other debtors
29,682
17,399
Deferred tax asset
574,000
864,000
603,682
881,399
Total debtors
950,151
978,759
GLENTROOL LAND (SHERBURN2) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 8 -
10
Creditors: amounts falling due within one year
2023
2022
£
£
Trade creditors
451,791
179,201
Amounts owed to group undertakings
3,876,827
9,665,385
Other creditors
39,058
31,260
4,367,676
9,875,846
Included in amounts due to group undertakings is £3,876,827 (2022 - £9,665,385) which is secured against the assets of the company as stated in notes 5 and 8.
11
Creditors: amounts falling due after more than one year
2023
2022
£
£
Amounts owed to group undertakings
25,784,836
31,493,590
Included in amounts due to group undertakings is £25,784,836 (2022 - £31,493,590) which is secured against the assets of the company as stated in notes 5 and 8.
12
Related party transactions
The company has taken advantage of the disclosure exemptions of Section 33.1A of FRS 102 which permit it to not present details of its transactions with members of the group headed by Glentrool Land And Estates Limited where relevant group companies are all wholly owned. Details of outstanding debtor and creditor balances as at the year end are given in notes 9, 10, and 11.
13
Events after the reporting date
The land held in investment property was transfered at fair value, £4.13m, to a group company Glentrool Estates Group Limited.