Company Registration No. 01660897 (England and Wales)
SOMERSTOWN MANAGEMENT COMPANY LIMITED
FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2019
PAGES FOR FILING WITH REGISTRAR
SOMERSTOWN MANAGEMENT COMPANY LIMITED
CONTENTS
Page
Balance sheet
1
Statement of changes in equity
2
Notes to the financial statements
3 - 6
SOMERSTOWN MANAGEMENT COMPANY LIMITED
BALANCE SHEET
AS AT 30 SEPTEMBER 2019
30 September 2019
- 1 -
2019
2018
Notes
£
£
£
£
Current assets
Debtors
3
21,544
16,406
Cash at bank and in hand
237,783
287,389
259,327
303,795
Creditors: amounts falling due within one year
4
(18,994)
(18,553)
Net current assets
240,333
285,242
Capital and reserves
Called up share capital
5
152
152
Reserves
240,181
285,090
Total equity
240,333
285,242
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 9 December 2019 and are signed on its behalf by:
Ms A Bullen
Director
Company Registration No. 01660897
SOMERSTOWN MANAGEMENT COMPANY LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 SEPTEMBER 2019
- 2 -
Share
capital
- - - Flats reserves - - -
- - Estate reserves - -
Total
Service
Future
Roof
Future
Service
charge
major
maintenance
major
charge
account
maintenance
maintenance
account
£
£
£
£
£
£
£
Balance at 1 October 2017
152
12,228
29,541
112,446
47,386
63,586
265,339
Year ended 30 September 2018:
Transfers to/(from) reserves
-
2,476
34,700
6,000
11,700
(499)
54,377
Net interest added
-
-
41
44
65
-
150
Expenditure funded from reserves
-
-
(3,160)
(16,486)
(14,978)
-
(34,624)
Balance at 30 September 2018
152
14,704
61,122
102,004
44,173
63,087
285,242
Year ended 30 September 2019:
Transfers to/(from) reserves
-
(5,236)
42,860
6,000
11,700
(520)
54,804
Net interest added
-
-
-
36
-
-
36
Expenditure funded from reserves
-
-
(64,965)
-
(34,784)
-
(99,749)
Balance at 30 September 2019
152
9,468
39,017
108,040
21,089
62,567
240,333
SOMERSTOWN MANAGEMENT COMPANY LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2019
- 3 -
1
Accounting policies
Company information
Somerstown Management Company Limited is a
private
company
limited by shares
incorporated in England and Wales.
The registered office is
Piper House, 4 Dukes Court, Bognor Road, Chichester, West Sussex, PO19 8FX.
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
Going concern
A
true
t the time of approving the financial statements
,
t
he directors have a reasonable expectation that the
company
has adequate resources to continue in operational existence for the foreseeable future. Thus
t
he directors continue to adopt the going concern basis of accounting in preparing the financial statements.
1.3
Turnover
Turnover represents total contributions receivable from the members to cover expenses incurred by the company in complying with its covenants and obligations to maintain and managed the flats and estate at Somerstown, Chichester.
1.4
Cash at bank and in hand
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.
1.5
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.
SOMERSTOWN MANAGEMENT COMPANY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2019
1
Accounting policies
(Continued)
- 4 -
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.
1.6
Equity instruments
Equity instruments issued by the company are recorded at the proceeds received, net of direct issue costs.
1.7
Taxation
The company is liable to Corporation tax on its investment income only.
2
Service charge bank accounts
Service charge money was held in interest bearing bank accounts as follows:
- Lloyds Bank Plc, Chichester under the name Somerstown Management Company Limited
account number 33991360
- Barclays Bank Plc, Chichester in trust, under the title Stride and Son Limited re Somerstown Savings
account number 23609081
3
Debtors
2019
2018
Amounts falling due within one year:
£
£
Service charge arrears
9,268
3,856
Other debtors
12,276
12,550
21,544
16,406
SOMERSTOWN MANAGEMENT COMPANY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2019
- 5 -
4
Creditors: amounts falling due within one year
2019
2018
£
£
Corporation tax
111
73
Other creditors
18,883
18,480
18,994
18,553
5
Called up share capital
2019
2018
£
£
Ordinary share capital
Issued and fully paid
152 Ordinary of £1 each
152
152
6
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 Claire Norwood BSc FCA ATII.
The auditor was Jones Avens Limited.
7
Designated reserves
Estate Service Charge Account
The estate service charge account represents the unexpended sums collected in respect of the Somerstown Estate service charge.
Estate Future Major Maintenance Reserve
Sums have been designated for the future major maintenance of the Somerstown Estate, this includes the previous wall and roadway reserve.
Flats Roof Replacement Reserve
Sums have been set aside for the repair and replacement of the flats roofs, these sums are held in a separate designated deposit account.
Flats Future Major Maintenance Reserve
Sums have been designated for the future major maintenance of the flats, this includes the previous painting fund.
Flat Service Charge Account
The flat service charge account represents the unexpended sums collected in respect of the flats service charge.
SOMERSTOWN MANAGEMENT COMPANY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2019
- 6 -
8
Control
Each owner of a property within the Somerstown Estate holds one share in the company and the company is controlled by its members.
9
Related party transactions
The directors are all members of the company and also owners of the properties managed by the company. As such they are required to pay estate charges of £336 (2018 - £330) and, if owners of a flat, a flat service charge of £960 (2018 - £945) in line with all other owners. No directors had any material outstanding balances at the year end.
10
Non-audit services provided by auditor
In common with many businesses of our size and nature we use our auditor to prepare and submit returns to the tax authorities and assist with the preparation of the financial statements
.