Company Registration No. 06230183 (England and Wales)
ZAG ESTATES LIMITED
UNAUDITED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2018
PAGES FOR FILING WITH REGISTRAR
ZAG ESTATES LIMITED
CONTENTS
Page
Balance sheet
1 - 2
Notes to the financial statements
3 - 8
ZAG ESTATES LIMITED
BALANCE SHEET
AS AT
31 MARCH 2018
31 March 2018
- 1 -
2018
2017
Notes
£
£
£
£
Fixed assets
Tangible assets
3
29,092
34,226
Investment properties
4
1,125,000
1,305,531
1,154,092
1,339,757
Current assets
Debtors
6
34,789
174,087
Investments
7
1,201,275
187,701
Cash at bank and in hand
954,705
35,222
2,190,769
397,010
Creditors: amounts falling due within one year
8
(22,247)
(22,197)
Net current assets
2,168,522
374,813
Total assets less current liabilities
3,322,614
1,714,570
Capital and reserves
Called up share capital
9
2,355,568
1,679,995
Share premium account
294,433
25,006
Profit and loss reserves
672,613
9,569
Total equity
3,322,614
1,714,570
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 31 March 2018 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 applicable to companies subject to the small companies' regime.
ZAG ESTATES LIMITED
BALANCE SHEET (CONTINUED)
AS AT
31 MARCH 2018
31 March 2018
- 2 -
The financial statements were approved by the board of directors and authorised for issue on 24 October 2018 and are signed on its behalf by:
Mrs Z A Hall
Director
Company Registration No. 06230183
ZAG ESTATES LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2018
- 3 -
1
Accounting policies
Company information
ZAG Estates Limited is a
private
company
limited by shares
incorporated in England and Wales.
The registered office is
Bracklands, Hazel Grove, Hindhead, Surrey, GU26 6BJ.
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.
These financial statements for the year ended 31 March 2018
are the
first
financial statements of ZAG Estates Limited prepared in accordance with FRS 102, The Financial Reporting Standard applicable in the UK and Republic of Ireland. The date of transition to FRS 102 was 1 April 2016. An explanation of how transition to FRS 102 has affected the reported financial position and financial performance is given in note 12.
The reason for the change on transition to FRS 102 is that the focus of the company has changed to an investment company.
1.2
Turnover
Turnover is recognised at the fair value of
rental income receivable, and
is shown net of VAT and other sales related taxes
. The interest, dividend income and capital gains that arise from the investments held are recognised in the profit and loss on the date at which the right to receive payment is established.
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:
Plant and machinery
15% on the reducing balance method
Website
33.33% on the straight line method
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 initially recognised at cost, which includes the purchase cost and any directly attributable expenditure
. Subsequently it is measured
at fair value a
t
the reporting end date.
The surplus or deficit on revaluation is recognised in profit or loss.
Where fair value cannot be achieved without undue cost or effort, investment property is accounted for as tangible fixed assets.
ZAG ESTATES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2018
1
Accounting policies
(Continued)
- 4 -
Gains and losses arising from changes in the fair value of the investment property are included in profit and loss for the period in which they arise.
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.
1.6
Current asset investments
Listed investments are measured at fair value with changes recognised in profit or loss if the shares are publicly traded or their fair value can otherwise be measured reliably.
1.7
Cash at bank and in hand
Cash at bank and in hand
are basic financial assets
and
include cash in hand, deposits held at call with banks
and
other short-term liquid investments with original maturities of three months or less
.
1.8
Debtors and creditors receivable/payable within one year
Debtors and creditors with no stated interest rate and receivable or payable within one year are recorded at transaction price. Any losses arising from impairment are recognised in the profit and loss account in other administrative expenses.
1.9
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.
2
Employees
The average monthly number of persons (including directors) employed by the company during the year was 2 (2017 - 2).
ZAG ESTATES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2018
- 5 -
3
Tangible fixed assets
Plant and machinery
Website
Total
£
£
£
Cost
At 1 April 2017 and 31 March 2018
87,118
760
87,878
Depreciation and impairment
At 1 April 2017
52,892
760
53,652
Depreciation charged in the year
5,134
-
5,134
At 31 March 2018
58,026
760
58,786
Carrying amount
At 31 March 2018
29,092
-
29,092
At 31 March 2017
34,226
-
34,226
4
Investment property
2018
£
Fair value
At 1 April 2017
1,305,531
Disposals
(600,000)
Revaluations
419,469
At 31 March 2018
1,125,000
Investment property comprises a farmhouse and cottages. The fair value of the investment property held at 31 March 2018 has been arrived at on the basis of a valuation carried out at 19 September 2018 by Mr M Bunt BSc MRICS FAAV of Kivells Limited, who is not connected with the company. The valuation was made on an open market value basis by reference to market evidence of transaction prices for similar properties. The valuation of all investment properties was considered by the directors at 31 March 2018 and they of the opinion that the valuation is reasonable.
If investment properties were stated on an historical cost basis rather than a fair value basis, the amounts would have been included as follows:
2018
2017
£
£
Cost
821,733
1,251,733
Accumulated depreciation
-
-
Carrying amount
821,733
1,251,733
ZAG ESTATES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2018
- 6 -
5
Financial instruments
2018
2017
£
£
Carrying amount of financial assets
Instruments measured at fair value through profit or loss
1,201,275
187,701
6
Debtors
2018
2017
Amounts falling due within one year:
£
£
Trade debtors
-
8,445
Other debtors
3,564
91,000
3,564
99,445
Deferred tax asset
31,225
74,642
34,789
174,087
7
Current asset investments
2018
2017
£
£
Listed investments
1,201,275
187,701
Listed investments are ordinary shares measured at fair value through profit and loss based on the quoted market price in an active market. The comparable amount on the historical cost basis would have been £1,194,181 (2017: £148,773).
8
Creditors: amounts falling due within one year
2018
2017
£
£
Trade creditors
1,091
1,878
Corporation tax
-
2,045
Other taxation and social security
3,004
-
Other creditors
18,152
18,274
22,247
22,197
9
Called up share capital
2018
2017
£
£
Ordinary share capital
Issued and fully paid
2,355,568 Ordinary shares of £1 each
2,355,568
1,679,995
2,355,568
1,679,995
ZAG ESTATES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2018
9
Called up share capital
(Continued)
- 7 -
During the year ended 31st March 2018, the company received £945,000 for 675,573 Ordinary £1 shares.
Reconciliation of movements during the year:
Number
At 1 April 2017
1,679,995
Issue of fully paid shares
675,573
At 31 March 2018
2,355,568
10
Controlling party
Throughout the year the parent company was Magnitude Holdings Limited, incorporated in the Channel Islands. Its registered office is No. 1 Seaton Place, St Helier, Jersey, Channel Islands. The directors have no connection with Magnitude Holdings Limited.
ZAG ESTATES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2018
- 8 -
11
Reconciliations on adoption of FRS 102
Reconciliation of equity
1 April
31 March
2016
2017
£
£
Equity as reported under previous UK GAAP
1,506,412
1,547,202
Adjustments arising from transition to FRS 102:
Investment property revaluation
53,798
53,798
Investment portfolio fair value
85,748
38,928
Deferred tax on investment property revaluation
44,518
47,956
Deferred tax on portfolio market value
(4,713)
(7,396)
Deferred tax on plant and equipment
(3,649)
(2,028)
Deferred tax on losses
42,420
36,110
Equity reported under FRS 102
1,724,534
1,714,570
Reconciliation of profit/(loss) for the financial period
2017
£
Profit as reported under previous UK GAAP
40,790
Adjustments arising from transition to FRS 102:
Investment portfolio fair value
(46,820)
Deferred tax on investment property revaluation
3,438
Deferred tax on portfolio market value
(2,683)
Deferred tax on plant and equipment
1,621
Deferred tax on losses
(6,310)
Loss reported under FRS 102
(9,964)