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REGISTERED NUMBER:
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CHERRY GARDEN PROPERTIES LIMITED |
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UNAUDITED FINANCIAL STATEMENTS |
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FOR THE YEAR ENDED 31 MARCH 2019 |
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REGISTERED NUMBER:
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CHERRY GARDEN PROPERTIES LIMITED |
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UNAUDITED FINANCIAL STATEMENTS |
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FOR THE YEAR ENDED 31 MARCH 2019 |
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CHERRY GARDEN PROPERTIES LIMITED (REGISTERED NUMBER: 02258544) |
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CONTENTS OF THE FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 31 MARCH 2019 |
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Company Information | 1 |
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Balance Sheet | 2 |
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Notes to the Financial Statements | 4 |
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Chartered Accountants' Report | 13 |
CHERRY GARDEN PROPERTIES LIMITED |
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COMPANY INFORMATION |
FOR THE YEAR ENDED 31 MARCH 2019 |
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DIRECTOR: |
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REGISTERED OFFICE: |
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REGISTERED NUMBER: |
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ACCOUNTANTS: |
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Langdon House |
Langdon Road |
SA1 Swansea Waterfront |
Swansea |
SA1 8QY |
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SOLICITORS: |
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Venture Court |
Waterside Business Park |
Valley Way |
SA6 8AH |
CHERRY GARDEN PROPERTIES LIMITED (REGISTERED NUMBER: 02258544) |
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BALANCE SHEET |
31 MARCH 2019 |
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2019 | 2018 |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Intangible assets | 4 |
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Tangible assets | 5 |
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Investments | 6 |
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CURRENT ASSETS |
Stocks |
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Debtors | 7 |
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Cash at bank and in hand |
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CREDITORS |
Amounts falling due within one year | 8 |
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NET CURRENT (LIABILITIES)/ASSETS | ( |
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TOTAL ASSETS LESS CURRENT
LIABILITIES |
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CREDITORS |
Amounts falling due after more than one
year |
9 |
( |
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( |
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PROVISIONS FOR LIABILITIES | ( |
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NET ASSETS |
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CAPITAL AND RESERVES |
Called up share capital |
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Revaluation reserve | 12 |
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Retained earnings |
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SHAREHOLDERS' FUNDS |
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The director acknowledges his responsibilities for: |
(a) |
ensuring that the company keeps accounting records which comply with Sections 386 and 387 of the
Companies Act 2006 and |
(b) |
preparing financial statements which give a true and fair view of the state of affairs of the company as at
the end of each financial year and of its profit or loss for each financial year in accordance with the requirements of Sections 394 and 395 and which otherwise comply with the requirements of the Companies Act 2006 relating to financial statements, so far as applicable to the company. |
CHERRY GARDEN PROPERTIES LIMITED (REGISTERED NUMBER: 02258544) |
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BALANCE SHEET - continued |
31 MARCH 2019 |
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In accordance with Section 444 of the Companies Act 2006, the Income Statement has not been delivered. |
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The financial statements were approved by the director on
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CHERRY GARDEN PROPERTIES LIMITED (REGISTERED NUMBER: 02258544) |
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NOTES TO THE FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 31 MARCH 2019 |
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1. | STATUTORY INFORMATION |
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Cherry Garden Properties Limited is a
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Wales. The company's registered number and registered office address can be found on the Company |
Information page. |
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2. | ACCOUNTING POLICIES |
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Basis of preparing the financial statements |
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Turnover |
The turnover shown in the profit and loss account represents amounts invoiced during the year for the |
provision of care, residential and nursing home resources. |
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Revenue from the sale of services is recognised when the amount of revenue can be measured |
reliably and it is probable that the economic benefits associated with the transaction will flow to the |
entity. |
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Goodwill |
Goodwill amortisation is calculated so as to write off the cost of an asset, net of anticipated disposal |
proceeds, over the useful economic life of that asset as follows: |
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Goodwill - 10 years straight line |
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Tangible assets |
If there is an indication that there has been a significant change in depreciation rate or residual value of |
an asset, the depreciation of that asset is revised prospectively to reflect the new expectations. |
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An amount equal to the excess of the annual depreciation charge on revalued assets over the notional |
historical cost depreciation charge on those assets is transferred annually from the revaluation reserve |
to the profit and loss reserve. |
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Following the revaluation of the properties on transition to FRS 102, the Directors have performed a |
review of freehold properties and therefore to reflect more accurately the useful life of the assets opted |
to change its policy. Depreciation will now be 50 years straight line from the 1st April 2014. |
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Intangible assets |
Intangible assets are initially measured at cost. After initial recognition, intangible assets are measured |
at cost less any accumulated amortisation and any accumulated impairment losses. |
CHERRY GARDEN PROPERTIES LIMITED (REGISTERED NUMBER: 02258544) |
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NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 MARCH 2019 |
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2. | ACCOUNTING POLICIES - continued |
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Tangible fixed assets |
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Freehold property | - |
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Improvements to property | - |
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Fixtures and fittings | - |
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Motor vehicles | - |
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Useful economic lives of tangible assets |
The annual depreciation charges for tangible assets is sensitive to changes in the estimated useful |
economic lives and residual values of the assets. The useful economic lives and residual values are |
reassessed annually. They are amended when necessary to reflect current estimates, based on |
technological advancement, future investments, economic utilisation and the physical condition of the |
assets. See above the useful economic lives for each class of assets. |
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Impairment of fixed assets |
At each reporting end date, the company reviews the carrying amounts of its tangible and intangible |
assets to determine whether there is any indication that those assets have suffered an impairment |
loss. If any such indication exists, the recoverable amount of the asset is estimated in order to |
determine the extent of the impairment loss (if any). Where it is not possible to estimate the |
recoverable amount of an individual asset, the company estimates the recoverable amount of the |
cash-generating unit to which the asset belongs. |
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Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value |
in use, the estimated future cash flows are discounted to their present value using a pre-tax discount |
rate that reflects current market assessments of the time value of money and the risks specific to the |
asset for which the estimates of future cash flows have not been adjusted. |
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If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying |
amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable |
amount. An impairment loss is recognised immediately in the profit and loss, unless the relevant asset |
is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a |
revaluation decrease. |
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Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have |
ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset |
(or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the |
increased carrying amount does not exceed the carrying amount that would have been determined had |
no impairment loss been recognised for the asset (or cash-generating unit) prior years. A reversal of |
an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried in at |
a revalued amount, in which case th reversal of the impairment loss is treated as a revaluation |
increase. |
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Investments in subsidiaries |
Investments in subsidiary undertakings are recognised at cost. |
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Stocks |
Stocks are valued at the lower of cost and net realisable value, after making due allowance for |
obsolete and slow moving items. |
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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. |
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CHERRY GARDEN PROPERTIES LIMITED (REGISTERED NUMBER: 02258544) |
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NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 MARCH 2019 |
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2. | ACCOUNTING POLICIES - continued |
Taxation |
Taxation for the year comprises current and deferred tax. Tax is recognised in the Income Statement, |
except to the extent that it relates to items recognised in other comprehensive income or directly in |
equity. |
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Current or deferred taxation assets and liabilities are not discounted. |
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Current tax is recognised at the amount of tax payable using the tax rates and laws that have been |
enacted or substantively enacted by the balance sheet date. |
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Taxation |
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at |
the balance sheet date. |
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Timing differences arise from the inclusion of income and expenses in tax assessments in periods |
different from those in which they are recognised in financial statements. Deferred tax is measured |
using tax rates and laws that have been enacted or substantively enacted by the year end and that are |
expected to apply to the reversal of the timing difference. |
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Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable |
that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. |
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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. |
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Financial instruments are recognised in the company's statement of financial position when the |
company becomes party to the contractual provisions of the instrument. |
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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. |
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Basic financial assets |
Basic financial assets, which include trade and other receivables 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. |
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Trade debtors, loans and other receivables that have fixed or determinable payments that are not |
quoted in an active market are classified as 'loans and receivables'. Loans and receivables are |
measured at amortise cost using the effective interest method, less any impairment. |
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Interest is recognised by applying the effective interest rate, except for short-term receivables when the |
recognition of interest would be immaterial. The effective interest method is a method of calculating |
the amortised cost of debt instrument and of allocating the interest income over the relevant period. |
The effective interest rate is the rate that exactly discounts estimated future cash receipts through the |
expected life of the debt instrument to the net carrying amount on initial recognition. |
CHERRY GARDEN PROPERTIES LIMITED (REGISTERED NUMBER: 02258544) |
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NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 MARCH 2019 |
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2. | ACCOUNTING POLICIES - continued |
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Financial instruments |
Derecognition of financial assets |
Financial assets are derecognised only when the contractual rights to the cash flows from the asset |
expire or are settled, or when the company transfers the financial asset and substantially all the risks |
and rewards of ownership to another entity, or if some significant risks and rewards of ownership are |
retained but control of the asset has transferred to another party that is able to sell the asset in its |
entirety to an unrelated third party. |
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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. |
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Basic financial liabilities |
Basic financial liabilities, including trade and other payable, bank loans, loans from fellow group |
companies, are initially recognised at transaction price unless the arrangement constitute a financial |
transaction, where the debt instrument is measured at the present value of the future receipts |
discounted at a market rate of interest. |
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Debt instruments are subsequently carried at amortised cost, using the effective interest rate method. |
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Trade payables are obligations to pay for goods or services that have been acquired in the ordinary |
course of business from suppliers. Accounts 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 payables are |
recognised initially at transaction price and subsequently measured at amortised cost using the |
effective interest method. |
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Financial liabilities and equity instruments are classified according to the substance of the contractual |
arrangements entered into. An enquiry instrument is any contract that evidences a residual interest in |
the assets of the company after deducting all of its liabilities. |
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Derecognition of financial liabilities |
Financial liabilities are derecognised when the company's contractual obligations expire or are |
discharged or cancelled. |
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Hire purchase and leasing commitments |
Rentals paid under operating leases are charged to profit or loss on a straight line basis over the |
period of the lease. |
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Pension costs and other post-retirement benefits |
The company operates a defined contribution pension scheme. Contributions payable to the |
company's pension scheme are charged to profit or loss in the period to which they relate. |
CHERRY GARDEN PROPERTIES LIMITED (REGISTERED NUMBER: 02258544) |
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NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 MARCH 2019 |
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2. | ACCOUNTING POLICIES - continued |
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Debtors |
Trade and other debtors are recognised at the settlement amount after any trade discount offered. |
Prepayments are valued at the amount prepaid net of any trade discounts due. |
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Creditors and provisions |
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Creditors and provisions are recognised where the company has a present obligation resulting from a |
past event that will probably result in the transfer of funds to a third party and the amount due to settle |
the obligation can be measured or estimated reliably. Creditors and provisions are normally recognised |
at their settlement amount after allowing for any trade discounts due. |
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Other Income |
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Other income is included in these accounts on an accruals basis, other income includes rental income, |
deposit account interest and a refund of bank interest and charges |
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Functional Currency |
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The financial statements are prepared in sterling, which is the functional currency of the company. |
Monetary amounts in these financial statements ae rounded to the nearest £. |
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Going concern |
The going concern assumption adopted is supported by forecasts which rely on ongoing support from |
the company's bankers. Withdrawal of support would cast significant doubt on the company's ability to |
continue as a going concern. With continued efforts in controlling costs along with higher occupancies |
and an increase in bed fees, the director is confident that the company will continue its profits in |
2019/20. |
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The director is of the opinion that the asset value of the company is strong and its continued |
repayment of the outstanding loan would put the company in an attractive position for continued |
support. The bank have also given an indication to the director of continued financial support. |
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3. | EMPLOYEES AND DIRECTORS |
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The average number of employees during the year was
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4. | INTANGIBLE FIXED ASSETS |
Goodwill |
£ |
COST |
At 1 April 2018 |
and 31 March 2019 |
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AMORTISATION |
At 1 April 2018 |
and 31 March 2019 |
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NET BOOK VALUE |
At 31 March 2019 |
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At 31 March 2018 |
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CHERRY GARDEN PROPERTIES LIMITED (REGISTERED NUMBER: 02258544) |
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NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 MARCH 2019 |
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5. | TANGIBLE FIXED ASSETS |
Improvements | Fixtures |
Freehold | to | and | Motor |
property | property | fittings | vehicles | Totals |
£ | £ | £ | £ | £ |
COST |
At 1 April 2018 |
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Additions |
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At 31 March 2019 |
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DEPRECIATION |
At 1 April 2018 |
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Charge for year |
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At 31 March 2019 |
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NET BOOK VALUE |
At 31 March 2019 |
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At 31 March 2018 |
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6. | FIXED ASSET INVESTMENTS |
Shares in |
group |
undertakings |
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COST |
At 1 April 2018 |
and 31 March 2019 |
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NET BOOK VALUE |
At 31 March 2019 |
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At 31 March 2018 |
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7. | DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
2019 | 2018 |
£ | £ |
Trade debtors |
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Amounts owed by group companies |
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Amounts owed from connected |
companies | 130,000 | 383,258 |
Prepayments and accrued income |
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A connected company is that under the common ownership of the director. |
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Included within debtors are amounts due to the company from group and connected companies |
amounting to £855,899 (2018 £560,874). These amounts are not expected to be received within the |
foreseeable future, and no provision has been made in these financial statements. |
CHERRY GARDEN PROPERTIES LIMITED (REGISTERED NUMBER: 02258544) |
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NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 MARCH 2019 |
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8. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
2019 | 2018 |
£ | £ |
Bank loans and overdrafts (see note 10) |
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Trade creditors |
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Tax |
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Social security and other taxes |
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Other creditors |
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Amount owed to connected companies | 816,406 | 64,916 |
Accrued expenses |
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Bank loans and overdrafts are secured by a fixed and floating charge over the company's |
undertakings, property and assets. Bank loans are secured by a fixed charge over the freehold land |
and buildings of the company. |
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A connected company is that under the common ownership of the director. |
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9. |
CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE
YEAR |
2019 | 2018 |
£ | £ |
Bank loans (see note 10) |
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Amounts falling due in more than five years: |
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Repayable by instalments |
Bank loan | 843,787 | 1,167,715 |
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10. | LOANS |
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An analysis of the maturity of loans is given below: |
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2019 | 2018 |
£ | £ |
Amounts falling due within one year or on demand: |
Bank overdrafts |
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Bank loans |
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Amounts falling due between one and two years: |
Bank loans - 1-2 years |
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Amounts falling due between two and five years: |
Bank loans - 2-5 years |
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Amounts falling due in more than five years: |
CHERRY GARDEN PROPERTIES LIMITED (REGISTERED NUMBER: 02258544) |
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NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 MARCH 2019 |
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10. | LOANS - continued |
2019 | 2018 |
£ | £ |
Amounts falling due in more than five years: |
Repayable by instalments |
Bank loan | 843,787 | 1,167,715 |
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11. | SECURED DEBTS |
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The following secured debts are included within creditors: |
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2019 | 2018 |
£ | £ |
Bank overdraft |
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Bank loans |
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Bank loans and overdrafts due to Natwest Bank Plc are secured by way of a fixed and floating charge |
over the freehold properties, plant and machinery and fixtures and fittings now and in the future at the |
properties held within the company. |
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12. | RESERVES |
Revaluation |
reserve |
£ |
At 1 April 2018 |
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Transfer profit and loss | (20,288 | ) |
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At 31 March 2019 |
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The transfer between the profit and loss account and the revaluation reserve is in relation to the |
amount equal to the excess of the annual depreciation charge on revalued assets over the notional |
historical cost depreciation charge on those assets. |
CHERRY GARDEN PROPERTIES LIMITED (REGISTERED NUMBER: 02258544) |
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NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 MARCH 2019 |
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13. | RELATED PARTY DISCLOSURES |
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As at the balance sheet date the following balances to connected companies were included in these |
financial statements:- |
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Debtor balances | 2019 | 2018 |
Morgan Sinclair (Properties) Ltd | - | 253,259 |
Great Barr Estates Limited | 130,000 | 130,000 |
Dolphin Hotel Whitewalls Ltd | - | 177,615 |
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Creditor balances | 2019 | 2018 |
Ronceray Care Home Limited | 814,916 | 64,916 |
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Rent was charged to the company by Cherry Gardens Properties Ltd Executive Pension Scheme |
totalling £146,250 (2018 : £135,000) |
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Rent was paid to the director amounting to £122,000 (2018: £126,000). |
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14. | ULTIMATE CONTROLLING PARTY |
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Mr A S Nanji controls the company by virtue of owning 100% of the issued shares. |
CHARTERED ACCOUNTANTS' REPORT TO THE DIRECTOR |
ON THE UNAUDITED FINANCIAL STATEMENTS OF |
CHERRY GARDEN PROPERTIES LIMITED |
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The following reproduces the text of the report prepared for the director in respect of the company's |
annual unaudited financial statements. In accordance with the Companies Act 2006, the company is |
only required to file a Balance Sheet. Readers are cautioned that the Income Statement and certain |
other primary statements and the Report of the Director are not required to be filed with the Registrar |
of Companies. |
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In order to assist you to fulfil your duties under the Companies Act 2006, we have prepared for your approval |
the financial statements of Cherry Garden Properties Limited for the year ended 31 March 2019 which |
comprise the Income Statement, Balance Sheet and the related notes from the company's accounting |
records and from information and explanations you have given us. |
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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 within the ICAEW's regulations and guidance at http://www.icaew.com/en/membership/regulations-standards-and-guidance. |
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This report is made solely to the director of Cherry Garden Properties Limited in accordance with our terms of engagement. Our work has been undertaken solely to prepare for your approval the financial statements of Cherry Garden Properties Limited and state those matters that we have agreed to state to the director of Cherry Garden Properties Limited in this report in accordance with ICAEW Technical Release 07/16AAF. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than Cherry Garden Properties Limited and its director for our work or for this report. |
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It is your duty to ensure that Cherry Garden Properties 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 loss of Cherry Garden Properties Limited. You consider that Cherry Garden Properties Limited is exempt from the statutory audit requirement for the year. |
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We have not been instructed to carry out an audit or a review of the financial statements of Cherry Garden Properties 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. |
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Langdon House |
Langdon Road |
SA1 Swansea Waterfront |
Swansea |
SA1 8QY |
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