Company Registration No. NI047837 (Northern Ireland)
SARCON (NO. 155) LIMITED
FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2017
PAGES FOR FILING WITH REGISTRAR
SARCON (NO. 155) LIMITED
COMPANY INFORMATION
Directors
Mr G Knox
Mr P Elwood
Secretary
Mrs D Leonard
Company number
NI047837
Registered office
24-28 Duncrue Street
Belfast
Co. Antrim
Northern Ireland
BT3 9AR
Auditor
PKF-FPM Accountants Limited
1-3 Arthur Street
Belfast
Co. Antrim
BT1 4GA
Bankers
First Trust Bank Limited
4 Queens Square
Belfast
Co. Antrim
Northern Ireland
BT1 7DT
Solicitors
Carson McDowell
Murray House
4 Murray Street
Belfast
Co. Antrim
Northern Ireland
BT1 6DN
SARCON (NO. 155) LIMITED
CONTENTS
Page
Balance sheet
1
Notes to the financial statements
2 - 7
SARCON (NO. 155) LIMITED
BALANCE SHEET
AS AT
30 SEPTEMBER 2017
30 September 2017
- 1 -
2017
2016
Notes
£
£
£
£
Fixed assets
Investments
3
2,891,810
2,891,810
Current assets
Cash at bank and in hand
117
-
Creditors: amounts falling due within one year
4
(331,379)
(241,625)
Net current liabilities
(331,262)
(241,625)
Total assets less current liabilities
2,560,548
2,650,185
Creditors: amounts falling due after more than one year
5
(1,601,747)
(1,677,768)
Provisions for liabilities
(72,029)
(79,656)
Net assets
886,772
892,761
Capital and reserves
Called up share capital
6
157,500
157,500
Other reserves
142,500
142,500
Profit and loss reserves
586,772
592,761
Total equity
886,772
892,761
The directors of the company have elected not to include a copy of the profit and loss account within the financial statements.
true
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 16 May 2018 and are signed on its behalf by:
Mr G Knox
Mr P Elwood
Director
Director
Company Registration No. NI047837
SARCON (NO. 155) LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2017
- 2 -
1
Accounting policies
Company information
Sarcon (No. 155) Limited is a
private
company
limited by shares
incorporated in Northern Ireland.
The registered office is
24-28 Duncrue Street, Belfast, Co. Antrim, Northern Ireland, BT3 9AR.
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
or management fee income
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.
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
Fixed asset investments
Interests in subsidiaries, associates and jointly controlled entities 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.
An associate is an entity, being neither a subsidiary nor a joint venture, in which the company holds a long-term interest and where the company has significant influence. The company considers that it has significant influence where it has the power to participate in the financial and operating decisions of the associate.
Entities in which the company has a long term interest and shares control under a contractual arrangement are classified as jointly controlled entities
.
SARCON (NO. 155) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2017
1
Accounting policies
(Continued)
- 3 -
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.
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.
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.
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.
SARCON (NO. 155) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2017
1
Accounting policies
(Continued)
- 4 -
1.6
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.
1.7
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.
1.8
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.
1.9
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
SARCON (NO. 155) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2017
- 5 -
2
Employees
The average monthly number of persons (including directors) employed by the company during the year was 2 (2016 - 2).
3
Fixed asset investments
2017
2016
£
£
Investments
2,891,810
2,891,810
The 100% subsidiary owned undertakings, held by the company as at 30 September 2017 were:
IJK Timber Group Limited, a timber merchant, incorporated in England.
William Davidson (Timber) Limited, dormant, incorporated in N. Ireland.
Keizer Venesta Limited, dormant, incorporated in N. Ireland.
Irvin and Sellers Limited, dormant, incorporated in N. Ireland.
Northern Hardwood Limited, dormant, incorporated in N. Ireland.
All subsidiary undertakings above except for IJK Timber Group Limited, were held by IJK Timber Group Limited.
4
Creditors: amounts falling due within one year
2017
2016
£
£
Bank loans and overdrafts
163,956
163,956
Corporation tax
44,323
36,457
Other creditors
123,100
41,212
331,379
241,625
SARCON (NO. 155) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2017
- 6 -
5
Creditors: amounts falling due after more than one year
2017
2016
£
£
Bank loans and overdrafts
46,847
418,015
Amounts due to group undertakings
1,554,900
1,259,753
1,601,747
1,677,768
On 26 November 2014 the group entered into a £1,000,000 five year term loan facility. The term loan is repayable by monthly instalments of £13,663. Interest is charged at 3.5% per annum above the bank's managed LIBOR base rate which is currently 0.5%. The facility is secured by a mortgage debenture incorporating a fixed and floating charge over all assets present and future.
The amount owed to group undertakings of £1,554,900 (2016: £1,259,753) relates to an interest free loan issued by the company's subsidiary IJK Timber Group Limited, and is held at amortised cost in line with FRS 102.
6
Called up share capital
2017
2016
£
£
Ordinary share capital
Issued and fully paid
157,500 Ordinary shares of £1 each
157,500
157,500
157,500
157,500
7
Audit report information
As the income statement has been omitted from the filing copy of the financial statements the following information in relation to the audit report on the statutory financial statements is provided in accordance with s444(5B) of the Companies Act 2006
:
The auditor's report was unqualified.
The senior statutory auditor was Teresa Campbell.
The auditor was PKF-FPM Accountants Limited.
8
Financial commitments, guarantees and contingent liabilities
The company has given unlimited guarantees in favour of its bankers in support of its subsidiary undertaking IJK Timber Group Limited. At 30 September 2017 the amount drawn by the subsidiary was £nil (2016: £nil).
SARCON (NO. 155) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2017
- 7 -
9
Capital commitments
The company had no material capital commitments at the year-ended 30 September 2017.
10
Events after the reporting date
There have been no significant events affecting the company since the year-end.
11
Related party transactions
The balance due to IJK Timber Group Limited as at 30 September 2017 was £1,554,900 (2016: £1,259,753). This balance relates to an unsecured, interest free loan issued by the company's subsidiary IJK Timber Group Limited, and is held at amortised cost in line with FRS 102.
During the year the company received £778,119 from IJK Timber Group Limited and subsequently distributed £482,972 to IJK Timber Group Limited.