A & A SELF STORAGE LIMITED
UNAUDITED FILLETED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 29 FEBRUARY 2020
PAGES FOR FILING WITH REGISTRAR
Company Registration No. 03107220 (England and Wales)
Alan Cooper Saunders Angel
Chartered Accountants
Kenton House
666 Kenton Road
Harrow, Middlesex
HA3 9QN
A & A SELF STORAGE LIMITED
COMPANY INFORMATION
Directors
Esther Adler
Percy Adler
Susan Fabre
Secretary
Esther Adler
Company number
03107220
Registered office
Kenton House
666 Kenton Road
Harrow, Middlesex
HA3 9QN
Accountants
Alan Cooper Saunders Angel
Chartered Accountants
Kenton House
666 Kenton Road
Harrow, Middlesex
HA3 9QN
A & A SELF STORAGE LIMITED
CONTENTS
Page
Balance sheet
1
Notes to the financial statements
2 - 7
A & A SELF STORAGE LIMITED
BALANCE SHEET
AS AT
29 FEBRUARY 2020
29 February 2020
- 1 -
2020
2019
Notes
£
£
£
£
Fixed assets
Tangible assets
4
433,212
304,167
Current assets
Debtors
5
5,297,666
5,806,380
Cash at bank and in hand
870,792
500,946
6,168,458
6,307,326
Creditors: amounts falling due within one year
6
(249,634)
(498,713)
Net current assets
5,918,824
5,808,613
Total assets less current liabilities
6,352,036
6,112,780
Provisions for liabilities
7
(76,986)
(51,976)
Net assets
6,275,050
6,060,804
Capital and reserves
Called up share capital
2
2
Profit and loss reserves
6,275,048
6,060,802
Shareholders funds
6,275,050
6,060,804
The directors of the company have elected not to include a copy of the profit and loss account within the financial statements.
true
For the financial year ended 29 February 2020 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.
The directors acknowledge their responsibilities for complying with the requirements of the Companies Act 2006 with respect to accounting records and the preparation of financial statements.
T
he members have not required the company to obtain an audit of its financial statements for the year in question in accordance with section 476
.
These financial statements have been prepared and delivered in accordance with the provisions
relating
to companies subject to the small companies' regime
within Part 15 of the Companies Act 2006.
The financial statements were approved by the board of directors and authorised for issue on 8 February 2021 and are signed on its behalf by:
Esther Adler
Percy Adler
Susan Fabre
Director
Director
Director
Company Registration No. 03107220
A & A SELF STORAGE LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 29 FEBRUARY 2020
- 2 -
1
Accounting policies
Company information
A & A Self Storage Limited
(company number: 03107220)
is a
private
company
limited by shares
incorporated in England and Wales.
The registered office is
Kenton House, 666 Kenton Road, Harrow, Middlesex, HA3 9QN.
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. The principal accounting policies adopted are set out below.
1.2
Going concern
Irrespective of the problems that may have been caused by the current Covid-19 pandemic, as set out in the Directors' Report, the Directors believe that the company is experiencing good levels of sales and profitability, and that it is well placed to manage its business risks successfully. the Directors are confident that this will continue and that the company's business will not be greatly affected. Where further resources are required the Directors are prepared to provide these.
true
Although the company's business model may have been affected in the subsequent period to 28 February 2021, during the current Covid-19 pandemic, the Directors consider this to be short term and are confident in improving the company's business, as the measures imposed by the Government to combat the virus are reversed and/or relaxed and the threat of Covid-19 subsides.
Accordingly at the time of approving the financial statements, the Directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Thus the Directors continue to adopt the going concern basis of accounting in preparing the financial statements.
1.3
Turnover
Turnover 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.
Revenue from the sale of goods is recognised when goods are delivered and legal title has passed.
1.4
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.
A & A SELF STORAGE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 29 FEBRUARY 2020
1
Accounting policies
(Continued)
- 3 -
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:
Land and buildings Leasehold
Plant and machinery
10% on cost
Fixtures, fittings & equipment
25% on cost
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
.
Long leasehold property is amortised over the term of the lease of 20 years.
1.5
Impairment of fixed assets
At each reporting
period
end date, the
company
reviews the carrying amounts of its tangible
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.
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.
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 profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.
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)
in
prior years. A reversal of an impairment loss is recognised immediately in profit or 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 increase.
1.6
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.
A & A SELF STORAGE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 29 FEBRUARY 2020
1
Accounting policies
(Continued)
- 4 -
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.
1.7
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.
1.8
Retirement benefits
The company operated a defined contribution pension scheme, under auto enrolment regulations, and the pension charge represents the amounts payable by the company to the fund in respect of the year.
1.9
Leases
Rentals payable under operating leases
, where substantially all of the benefits are risks of ownership remain with the lessor
are charged to
profit and loss account on a straight line basis.
2
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2020
2019
Number
Number
Total
11
10
3
Taxation
2020
2019
£
£
Current tax
UK corporation tax on profits for the current period
25,618
78,488
A & A SELF STORAGE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 29 FEBRUARY 2020
3
Taxation
2020
2019
£
£
(Continued)
- 5 -
Deferred tax
Origination and reversal of timing differences
25,010
47,463
Total tax charge
50,628
125,951
4
Tangible fixed assets
Land and buildings
Plant and machinery etc
Total
£
£
£
Cost
At 1 March 2019
15,696
1,697,018
1,712,714
Additions
-
187,642
187,642
At 29 February 2020
15,696
1,884,660
1,900,356
Depreciation and impairment
At 1 March 2019
785
1,407,761
1,408,546
Depreciation charged in the year
785
57,813
58,598
At 29 February 2020
1,570
1,465,574
1,467,144
Carrying amount
At 29 February 2020
14,126
419,086
433,212
At 28 February 2019
14,911
289,256
304,167
5
Debtors
2020
2019
Amounts falling due within one year:
£
£
Trade debtors
133,182
100,948
Corporation tax recoverable
200,917
85,018
Other debtors
4,614,374
5,331,007
Prepayments and accrued income
349,193
289,407
5,297,666
5,806,380
A & A SELF STORAGE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 29 FEBRUARY 2020
5
Debtors
(Continued)
- 6 -
Other debtors include £3,799,051 (2019: £4,649,051) due from Central Link Properties Limited, an associated concern. In addition, a further £437,221 (2019: £385,221) is due from Fortnum Developments Limited, another associated concern.
Prepayments
include the sum of £
268,215
(2019: £
235,744
)
pertaining to
professional fees and other costs incurred in respect of
a
proposed redevelopment of
one of
the company's self storage sites. A firm decision on whether to proceed with the redevelopment had not been made by 2
9
February
2020
,
since
this is
subject to planning
criteria. C
onsequently costs incurred have been deferred.
6
Creditors: amounts falling due within one year
2020
2019
£
£
Trade creditors
87,860
369,693
Corporation tax
-
26,138
Other taxation and social security
75,324
16,295
Other creditors
86,450
86,587
249,634
498,713
7
Deferred taxation
The following are the major deferred tax liabilities and assets recognised by the company and movements thereon:
Liabilities
Liabilities
2020
2019
Balances:
£
£
Accelerated capital allowances
76,986
51,976
2020
Movements in the year:
£
Liability at 1 March 2019
51,976
Charge to profit or loss
25,010
Liability at 29 February 2020
76,986
Deferred Tax of £11,000 is expected to reverse in the next year as accelerated capital allowances reduce.
A & A SELF STORAGE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 29 FEBRUARY 2020
- 7 -
8
Operating lease commitments
Lessee
At the reporting end date the company had outstanding commitments for future minimum lease payments under annual informal agreements, granted to the company by the directors, amounting to £274,100 (2019: £194,000).
In addition, the company also had an outstanding commitment for future minimum lease payments, under a 20 year formal agreement granted to the company in April 2019 by the London Borough of Camden, amounting to £157,500 per annum (2019: £Nil).
9
Events after the reporting date
Like most businesses it is likely that the activities of the company may have been impacted by the recent and rapid development of the Coronavirus disease (Covid-19) outbreak, and the measures introduced by the Government to reduce its spread. The Directors' have implemented all of the recommendations announced by the Government and National Health Service and are taking all necessary measures and precautions to combat the threat posed to the company's business model and remain confident of being able to manage and minimise the risk and that the company's business will not be greatly affected. Where further resources are required the Directors' are prepared to provide these.
The financial effect of the current crisis on the overall business activities cannot be estimated with reasonable certainty at this stage, due to the pace at which the outbreak expands and the high level of uncertainties arising from the inability to reliably predict the outcome.
No other matters or circumstances have arisen since the end of the financial year which significantly affected or may significantly affect the operations of the company, the results of those operations or the state of affairs of the company in financial years subsequent to the financial year ended 29 February 2020.
10
Directors' transactions
The company occupies three properties, which by the balance sheet date were owned solely by one director that holds a participating interest in the company's issued share capital. An annual rent of £114,100, £28,000 and £132,000 was charged to the company under informal agreements commencing 6 April 2019.
At the balance sheet date, the company was owed by its directors £292,654 (2019: £261,594). The directors' current account balance bears a commercial rate of interest at 2.75% per annum. Interest of £8,392 was charged by the company in the period to 29 February 2020. The directors' loans are unsecured and are repayable on demand. The balance is included in other debtors.
The directors of the company had no other material transactions with the company during the year, other than directors' emoluments as disclosed in the notes.