Bluenotch Limited
Annual Report and Unaudited Financial Statements
For the year ended 31 July 2017
Company Registration No. 01124571 (England and Wales)
Bluenotch Limited
Company Information
Director
D. W. Dove
Company number
01124571
Registered office
Betchworth House
57-65 Station Road
Redhill
Surrey
RH1 1DL
Accountants
Kingston Smith LLP
Betchworth House
57-65 Station Road
Redhill
Surrey
RH1 1DL
Bluenotch Limited
Director's Report
For the year ended 31 July 2017
Page 1
The director presents his annual report and financial statements for the year ended 31 July 2017.
Principal activities
The principal activity of the company throughout the year was that of investment property ownership and rental.
Director
The director who held office during the year and up to the date of signature of the financial statements was as follows:
D. W. Dove
This report has been prepared in accordance with the provisions applicable to companies entitled to the small companies exemption.
On behalf of the board
D. W. Dove
Director
18 January 2018
Bluenotch Limited
Chartered Accountants' Report to the Director on the Preparation of the Unaudited Statutory Financial Statements of Bluenotch Limited for the year ended 31 July 2017
Page 2
In order to assist you to fulfil your duties under the Companies Act 2006, we have prepared for your approval the financial statements of Bluenotch Limited for the year ended 31 July 2017 which comprise the Profit And Loss Account, the Balance Sheet, the Statement of Changes in Equity and the related notes from the company’s accounting records and from information and explanations you have given us.
As a practising member firm of the
Institute of Chartered Accountants in England and Wales (ICAEW)
, we are subject to its ethical and other professional requirements which are detailed at
icaew.com/membershandbook
.
This report is made solely to the Board of Directors of Bluenotch Limited, as a body, in accordance with the terms of our engagement letter dated 19 April 2016. Our work has been undertaken solely to prepare for your approval the financial statements of Bluenotch Limited
and state those matters that we have agreed to state to the Board of Directors of Bluenotch Limited, as a body, in this report in accordance with ICAEW Technical Release 07/16 AAF. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than Bluenotch Limited and its Board of Directors as a body, for
our work or for this report.
It is your duty to ensure that Bluenotch Limited has kept adequate accounting records and to prepare statutory financial statements that give a true and fair view of the assets,
liabilities, financial position and profit of Bluenotch Limited. You consider that Bluenotch Limited is exempt from the statutory audit
requirement for the year.
We have not been instructed to carry out an audit or a review of the financial statements of Bluenotch Limited. For this reason, we have not verified the accuracy or completeness of the
accounting records or information and explanations you have given to us and we do not, therefore, express any opinion on the statutory financial statements.
Kingston Smith LLP
22 January 2018
Chartered Accountants
Betchworth House
57-65 Station Road
Redhill
Surrey
RH1 1DL
Bluenotch Limited
Profit and Loss Account
For the year ended 31 July 2017
Page 3
2017
2016
£
£
Turnover
316,659
317,717
Administrative expenses
(92,282)
(87,380)
Other operating income
35,529
47,514
Profit on disposal of investment property
99,058
16,058
Operating profit
358,964
293,909
Interest receivable and similar income
1,683
473
Interest payable and similar expenses
-
(231)
Increase in fair value of investment property
2,160,054
-
Profit before taxation
2,520,701
294,151
Taxation
4
(408,306)
(53,194)
Profit for the financial year
2,112,395
240,957
Bluenotch Limited
Balance Sheet
As at 31 July 2017
Page 4
2017
2016
Notes
£
£
£
£
Fixed assets
Tangible assets
5
4,708
6,277
Investment properties
6
6,619,000
4,658,946
6,623,708
4,665,223
Current assets
Debtors
7
46,128
44,618
Cash at bank and in hand
1,320,945
804,535
1,367,073
849,153
Creditors: amounts falling due within one year
8
(98,188)
(77,997)
Net current assets
1,268,885
771,156
Total assets less current liabilities
7,892,593
5,436,379
Provisions for liabilities
9
(511,226)
(167,407)
Net assets
7,381,367
5,268,972
Capital and reserves
Called up share capital
11
100
100
Revaluation reserve
3,002,811
1,245,581
Profit and loss reserves
4,378,456
4,023,291
Total equity
7,381,367
5,268,972
For the financial year ended 31 July 2017 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.
Director's responsibilities:
-
• The members have not required the company to obtain an audit of its financial statements for the year in question in accordance with section 476;
-
• The director acknowledges his responsibilities for complying with the requirements of the Act with respect to accounting records and the preparation of financial statements.
These financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies' regime.
The financial statements were approved and signed by the director and authorised for issue on 18 January 2018
D. W. Dove
Director
Company Registration No. 01124571
Bluenotch Limited
Statement of Changes in Equity
For the year ended 31 July 2017
Page 5
Share capital
Revaluation reserve
Profit and loss reserves
Total
£
£
£
£
Balance at 1 August 2015
100
1,251,152
3,776,763
5,028,015
Year ended 31 July 2016:
Profit and total comprehensive income for the year
-
-
240,957
240,957
Transfer of movement on deferred tax provision
-
(5,571)
5,571
-
Balance at 31 July 2016
100
1,245,581
4,023,291
5,268,972
Year ended 31 July 2017:
Profit and total comprehensive income for the year
-
-
2,112,395
2,112,395
Transfer of unrealised fair value gains on investment property
-
2,168,430
(2,168,430)
-
Transfer of fair value gains on investment property disposals
-
(67,381)
67,381
-
Transfer of movement on deferred tax provision
-
(343,819)
343,819
-
Balance at 31 July 2017
100
3,002,811
4,378,456
7,381,367
Bluenotch Limited
Notes to the Financial Statements
For the year ended 31 July 2017
Page 6
1
Accounting policies
Company information
Bluenotch Limited is a
private
company
limited by shares
incorporated in England and Wales.
The registered office is
Betchworth House, 57-65 Station Road, Redhill, Surrey, RH1 1DL.
1.1
Accounting convention
These financial statements have been prepared in accordance with Section 1A of 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 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 pound.
The financial statements have been prepared under the historical cost convention, modified to include the revaluation of investment properties at fair value. The principal accounting policies adopted are set out below.
These financial statements for the year ended 31 July 2017
are the
first
financial statements of Bluenotch Limited prepared in accordance with
Section 1A of
FRS 102, The Financial Reporting Standard applicable in the UK and Republic of Ireland. The date of transition to FRS 102 was 1 August 2015. An explanation of how transition to FRS 102 has affected the reported financial position and financial performance is given in note 13.
1.2
Turnover
Turnover represents rent receivable
net of VAT
.
1.3
Tangible fixed assets
Tangible fixed assets
are initially measured at cost and subsequently measured at cost or valuation, 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:
Other fixed assets
25% per annum on 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 credited or charged to profit or loss
.
1.4
Investment properties
Investment property, which is property held to earn rentals and/or for capital appreciation, is measured using the fair value model and stated at its fair value a
t
the reporting end date.
The surplus or deficit on revaluation is recognised in the profit and loss account.
Although this accounting policy is in accordance with FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" ("FRS 102"), it is a departure from the general requirements of the Companies Act 2006 for all tangible fixed assets to be depreciated. In the opinion of the directors compliance with the standard is necessary for the financial statements to give a true and fair view. Depreciation or amortisation is only one of the many factors reflected in the annual valuation and the amount of this which might otherwise have been charged cannot be separately identified or quantified.
Bluenotch Limited
Notes to the Financial Statements (Continued)
For the year ended 31 July 2017
1
Accounting policies
(Continued)
Page 7
1.5
Cash and cash equivalents
Cash and cash equivalents 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.
1.6
Financial instruments
The company only has financial instruments classified as basic and measured at amortised cost. The company has no financial instruments that are classified as ‘other’ or financial instruments measured at fair value.
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.
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.
Bluenotch Limited
Notes to the Financial Statements (Continued)
For the year ended 31 July 2017
Page 8
2
Judgements and key sources of estimation uncertainty
In the application of the company’s accounting policies, the director is required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.
Critical judgements
The following judgements (apart from those involving estimates) have had the most significant
effect on amounts recognised in the financial statements.
Valuation of investment properties
The investment properties owned by the company have been revalued as at 31 July 2017 by the director on a fair value basis.
3
Employees
The average monthly number of persons (including directors) employed by the company during the year was 1 (2016: 1).
4
Taxation
2017
2016
£
£
Current tax
UK corporation tax on profits for the current period
64,487
47,623
Deferred tax
Deferred tax on unrealised fair value gains on investment property
343,819
5,571
Total tax charge
408,306
53,194
Bluenotch Limited
Notes to the Financial Statements (Continued)
For the year ended 31 July 2017
Page 9
5
Tangible fixed assets
Plant and machinery etc
£
Cost
At 1 August 2016 and 31 July 2017
26,449
Depreciation and impairment
At 1 August 2016
20,172
Depreciation charged in the year
1,569
At 31 July 2017
21,741
Carrying amount
At 31 July 2017
4,708
At 31 July 2016
6,277
6
Investment property
2017
£
Fair value
At 1 August 2016
4,658,946
Disposals
(200,000)
Revaluations
2,160,054
At 31 July 2017
6,619,000
The investment properties have been valued on an open market basis at 31 July 2017 by the director, and are stated at their valuation amount. The director is considered qualified to value investment properties held by the company due to his vast experience in the field, having worked in the property industry since the 1960's.
The historical cost of the properties included at valuation at the balance sheet date is £3,333,856 (2016: £3,466,475).
7
Debtors
2017
2016
Amounts falling due within one year:
£
£
Trade debtors
11,957
10,498
Other debtors
34,171
34,120
46,128
44,618
Bluenotch Limited
Notes to the Financial Statements (Continued)
For the year ended 31 July 2017
Page 10
8
Creditors: amounts falling due within one year
2017
2016
£
£
Trade creditors
14,117
14,117
Corporation tax
64,487
47,623
Other creditors
19,584
16,257
98,188
77,997
9
Provisions for liabilities
2017
2016
£
£
Deferred tax liabilities
10
511,226
167,407
511,226
167,407
10
Deferred taxation
Deferred tax assets and liabilities are offset where the company has a legally enforceable right to do so. The following is the analysis of the deferred tax balances (after offset) for financial reporting purposes:
Liabilities
Liabilities
2017
2016
Balances:
£
£
Investment property unrealised fair value gains
511,226
167,407
2017
Movements in the year:
£
Liability at 1 August 2016
167,407
Charge to profit or loss
343,819
Liability at 31 July 2017
511,226
11
Called up share capital
2017
2016
£
£
Ordinary share capital
Issued and fully paid
100 Ordinary shares of £1 each
100
100
Bluenotch Limited
Notes to the Financial Statements (Continued)
For the year ended 31 July 2017
Page 11
12
Related party transactions
The company paid secretarial fees of £14,
417
(201
6
: £14,000) to D.W.D. Property & Investment Co. Limited, a company under the control of D.W. Dove Esq., a shareholder and director.
At the year end the company was owed £
30
,
306
(201
6
: £
30
,
30
6) from Perimeter Properties Limited, a company under the control of D.W. Dove Esq.
13
Reconciliations on adoption of FRS 102
Reconciliation of equity
1 August 2015
31 July 2016
Notes
£
£
Equity as reported under previous UK GAAP
5,189,851
5,436,379
Adjustments arising from transition to FRS 102:
Deferred tax liability at date of transition
1
(161,836)
(161,836)
Deferred tax movement
1
-
(5,571)
Equity reported under FRS 102
5,028,015
5,268,972
Reconciliation of profit or loss
2016
Notes
£
Profit as reported under previous UK GAAP
246,528
Adjustments arising from transition to FRS 102:
Deferred tax movement
1
(5,571)
Profit reported under FRS 102
240,957
Notes to reconciliations on adoption of FRS 102
1. Deferred tax
In accordance with FRS 102, deferred tax on the revaluation surplus on investment properties has been recognised in the financial statements.
2017-07-31
2016-08-01
false
CCH Software
CCH Accounts Production 2017.300
01124571
2016-08-01
2017-07-31
01124571
bus:Director1
2016-08-01
2017-07-31
01124571
bus:RegisteredOffice
2016-08-01
2017-07-31
01124571
2017-07-31
01124571
2015-08-01
2016-07-31
01124571
1
2016-08-01
2017-07-31
01124571
1
2015-08-01
2016-07-31
01124571
2016-07-31
01124571
core:OtherPropertyPlantEquipment
2017-07-31
01124571
core:OtherPropertyPlantEquipment
2016-07-31
01124571
core:CurrentFinancialInstruments
2017-07-31
01124571
core:CurrentFinancialInstruments
2016-07-31
01124571
core:ShareCapital
2017-07-31
01124571
core:ShareCapital
2016-07-31
01124571
core:RevaluationReserve
2017-07-31
01124571
core:RevaluationReserve
2016-07-31
01124571
core:RetainedEarningsAccumulatedLosses
2017-07-31
01124571
core:RetainedEarningsAccumulatedLosses
2016-07-31
01124571
core:ShareCapital
core:RestatedAmount
2015-07-31
01124571
core:RevaluationReserve
core:RestatedAmount
2015-07-31
01124571
core:RetainedEarningsAccumulatedLosses
core:RestatedAmount
2015-07-31
01124571
core:RestatedAmount
2015-07-31
01124571
core:HedgingReserve
core:RestatedAmount
2015-07-31
01124571
core:CapitalRedemptionReserve
core:RestatedAmount
2015-07-31
01124571
core:RevaluationReserve
2015-08-01
2016-07-31
01124571
core:RevaluationReserve
2016-08-01
2017-07-31
01124571
core:MotorVehicles
2016-08-01
2017-07-31
01124571
core:UKTax
2016-08-01
2017-07-31
01124571
core:UKTax
2015-08-01
2016-07-31
01124571
core:OtherPropertyPlantEquipment
2016-07-31
01124571
core:OtherPropertyPlantEquipment
2016-08-01
2017-07-31
01124571
bus:PrivateLimitedCompanyLtd
2016-08-01
2017-07-31
01124571
bus:FRS102
2016-08-01
2017-07-31
01124571
bus:AuditExemptWithAccountantsReport
2016-08-01
2017-07-31
01124571
bus:FullAccounts
2016-08-01
2017-07-31
xbrli:pure
xbrli:shares
iso4217:GBP