ESTATES AND LETS 2 LLP
ANNUAL REPORT AND UNAUDITED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2019
PAGES FOR FILING WITH REGISTRAR
Limited Liability Partnership Registration No. OC343900 (England and Wales)
ESTATES AND LETS 2 LLP
CONTENTS
Page
Balance sheet
1 - 2
Notes to the financial statements
3 - 8
ESTATES AND LETS 2 LLP
BALANCE SHEET
AS AT 31 MARCH 2019
31 March 2019
- 1 -
2019
2018
Notes
£
£
£
£
Fixed assets
Tangible assets
4
184,239
245,494
Investment properties
5
7,626,700
7,626,700
Investments
4,139,700
4,263,597
11,950,639
12,135,791
Current assets
Debtors
6
13,279,117
10,429,932
Investments
7
1,006,264
982,043
Cash at bank and in hand
276,123
5,443,622
14,561,504
16,855,597
Creditors: amounts falling due within one year
8
(5,712,928)
(5,519,419)
Net current assets
8,848,576
11,336,178
Total assets less current liabilities
20,799,215
23,471,969
Creditors: amounts falling due after more than one year
9
(7,115,117)
(10,840,731)
Net assets attributable to members
13,684,098
12,631,238
Represented by:
Loans and other debts due to members within one year
10
Amounts due in respect of profits
400,244
259,154
Other amounts
9,279,246
8,362,742
9,679,490
8,621,896
Members' other interests
10
Other reserves classified as equity
4,004,608
4,009,342
13,684,098
12,631,238
Total members' interests
10
Loans and other debts due to members
9,679,490
8,621,896
Members' other interests
4,004,608
4,009,342
13,684,098
12,631,238
T
he members of the
limited liability partnership
have elected not to include a copy of the profit and loss account within the financial statements.
ESTATES AND LETS 2 LLP
BALANCE SHEET (CONTINUED)
AS AT 31 MARCH 2019
31 March 2019
- 2 -
For the financial year ended 31 March 2019 the
limited liability partnership
was entitled to exemption from audit under section 477 of the Companies Act 2006
(as applied by the Limited Liability Partnerships (Accounts and Audit) (Application of Companies Act 2006) Regulations 2008) relating to small limited liability partnerships.
The members acknowledge their responsibilities for complying with the requirements of the Act (as applied to limited liability partnerships) with respect to accounting records and the preparation of accounts.
These financial statements have been prepared and delivered in accordance with the provisions applicable to limited liability partnerships subject to the small limited liability partnerships regime.
The financial statements were approved by the members and authorised for issue on 19 June 2020 and are signed on their behalf by:
19 June 2020
Michael Docker
Designated member
Limited Liability Partnership Registration No. OC343900
ESTATES AND LETS 2 LLP
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2019
- 3 -
1
Accounting policies
Limited liability partnership information
Estates and Lets 2 LLP is a limited liability partnership incorporated in England and Wales. The registered office is 166 College Road, Harrow, Middlesex, HA1 1RA.
The limited liability partnership's principal activities are disclosed in the Members' Report.
1.1
Accounting convention
These financial statements have been prepared in accordance with the Statement of Recommended Practice "Accounting by Limited Liability Partnerships" issued in January 2017, together 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 limited liability partnership.
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 investment properties and certain financial instruments at fair value. The principal accounting policies adopted are set out below.
1.2
Turnover
Turnover represents rents receivable during the year.
1.3
Tangible fixed assets
Tangible fixed assets
are measured at cost, 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:
Motor vehicles
20% straight line and 20% reducing balance
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 recognised in the profit and loss account.
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 at the reporting end date. The surplus or deficit on revaluation is recognised in
profit or loss
.
1.5
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
a
ny impairment
losses or reversals of impairment losses are recognised immediately in profit or loss.
ESTATES AND LETS 2 LLP
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2019
1
Accounting policies
(Continued)
- 4 -
1.6
Financial instruments
The limited liability partnership 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 limited liability partnership's statement of financial position when the limited liability partnership becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset and 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 measured at transaction price including transaction costs.
Financial assets classified as receivable within one year are not amortised.
Basic financial liabilities
Basic financial liabilities, including creditors and bank loans, are
recognised at transaction price.
Financial liabilities classified as payable within one year are not amortised.
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.
2
Employees
The average number of persons (excluding members) employed by the partnership during the year was 0 (2018 - 0
).
3
Information in relation to members
2019
2018
Number
Number
Average number of members during the year
5
5
ESTATES AND LETS 2 LLP
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2019
- 5 -
4
Tangible fixed assets
Plant and machinery etc
£
Cost
At 1 April 2018
316,566
Additions
207,712
Disposals
(207,712)
At 31 March 2019
316,566
Depreciation and impairment
At 1 April 2018
71,072
Depreciation charged in the year
61,255
At 31 March 2019
132,327
Carrying amount
At 31 March 2019
184,239
At 31 March 2018
245,494
The net carrying value of tangible fixed assets includes the following in respect of assets held under finance leases or hire purchase contracts:
2019
2018
£
£
Motor vehicles
180,918
241,224
Depreciation charged for the period in respect of leased assets
60,306
60,306
5
Investment property
2019
£
Fair value
At 1 April 2018 and 31 March 2019
7,626,700
In the opinion of the members the fair value of the investment properties, as at the balance sheet date, is not materially different from the carrying value stated above.
ESTATES AND LETS 2 LLP
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2019
- 6 -
6
Debtors
2019
2018
Amounts falling due within one year:
£
£
Other debtors
13,279,117
10,429,932
7
Current asset investments
2019
2018
£
£
Other investments
1,006,264
982,043
The above investments are measured at fair value.
8
Creditors: amounts falling due within one year
2019
2018
£
£
Trade creditors
41
-
Taxation and social security
-
1,065
Other creditors
5,712,887
5,518,354
5,712,928
5,519,419
9
Creditors: amounts falling due after more than one year
2019
2018
£
£
Bank loans and overdrafts
7,080,000
10,676,842
Other creditors
35,117
163,889
7,115,117
10,840,731
The bank loans are secured on some of the company's investment properties, properties held by Michael and Michele Docker personally and also properties held by Sotherby LLP, a limited liability partnership in which Michael and Michele Docker are members.
ESTATES AND LETS 2 LLP
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2019
- 7 -
10
Reconciliation of Members' Interests
EQUITY
DEBT
TOTAL
Members' other interests
Loans and other debts due to members less any amounts due from members in debtors
MEMBERS'
INTERESTS
Other reserves
Other amounts
Total
Total
2019
£
£
£
£
Amounts due to members
8,621,896
Members' interests at 1 April 2018
4,009,342
8,621,896
8,621,896
12,631,238
Profit for the financial year available for discretionary division among members
395,510
-
-
395,510
Members' interests after profit for the year
4,404,852
8,621,896
8,621,896
13,026,748
Allocation of profit for the financial year
(400,244)
400,244
400,244
-
Introduced by members
-
2,530,454
2,530,454
2,530,454
Repayment of debt (including members' capital classified as a liability)
-
(1,873,104)
(1,873,104)
(1,873,104)
Members' interests at 31 March 2019
4,004,608
9,679,490
9,679,490
13,684,098
ESTATES AND LETS 2 LLP
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2019
- 8 -
11
Related party transactions
Included within debtors are the following amounts due from entities in which Estates and Lets 2 LLP holds a participating interest:
-
Castle 2011 Limited - £1,070,080 (2018: £100,832)
-
Coalville Limited - £11,990 (2018: £19,765)
-
Galemore 2 Limited - £38,000 (2018: £52,872)
-
Scimitar House Limited - £1,012,939 (2018: £834,473)
-
Scimitar House (Holdings) Limited - £1,000,000 (2018: £Nil)
-
Sentidale Limited - £66,330 (2018: £68,146)
Included within debtors are the following amounts due from entities in which Mr and Mrs Docker have a participating interest:
-
Gracewood Construction Limited - £440,000 (2018: £335,000)
-
Ski Time Limited - £923 (2018: £923)
-
Carlton House (Chelmsford) Ltd - £359,448
Included within debtors are amounts due from the following
limited liability partnership
s
in which Mr and Mrs Docker are members
:
-
Estates and Lets 3 LLP - £20,443 (2018: £70,443)
-
Sotherby LLP - £8,639,782 (2018: £8,911,521)
Included within creditors are amounts due to the following entities in which Mr and Mrs Docker have a participating interest
-
75 Barking Road Limited - £7,303 (2018: £7,303)
-
Charterhouse Ilford Limited - £5,307,920 (2018: £5,480,538)
-
Gracewood Construction Limited - £121,890 (2018: £nil)
During the period, loan interest and related finance costs amounting to £128,261 (2018: £219,366) were recharged to Sotherby LLP.
The investment properties are managed by Estates and Lets Limited, a managing agent company which is controlled by Michael and Michele Docker. During the year £45,377 (2018: £45,068) was charged by Estates and Lets Limited in respect of letting and management fees in the normal course of its trade. Included within debtors at the balance sheet date is an amount of £16,605 (2018: £19,077) due from Estates and Lets Limited.