Company Registration No. 08709240 (England and Wales)
RFC BEARWOOD LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2020
RFC BEARWOOD LIMITED
COMPANY INFORMATION
Directors
N Howe
N Niruttinanon
X Hawken
Y Dai
Company number
08709240
Registered office
Madejski Stadium
Junction 11
M4
Reading
Berkshire
RG2 0FL
Auditor
Myers Clark
Egale 1
80 St Albans Road
Watford
Hertfordshire
WD17 1DL
RFC BEARWOOD LIMITED
CONTENTS
Page
Directors' report
1
Independent auditor's report
2 - 3
Profit and loss account
4
Balance sheet
5
Statement of cash flows
6
Notes to the financial statements
7 - 10
RFC BEARWOOD LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 30 JUNE 2020
- 1 -
The directors present their annual report and financial statements for the year ended 30 June 2020.
Directors
The directors who held office during the year and up to the date of signature of the financial statements were as follows:
N Howe
N Niruttinanon
X Hawken
Y Dai
Auditor
In accordance with the company's articles, a resolution proposing that Myers Clark be reappointed as auditor of the company will be put at a General Meeting.
Statement of directors' responsibilities
The directors are responsible for preparing the annual report and the financial statements in accordance with applicable law and regulations.
Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to:
-
select suitable accounting policies and then apply them consistently;
-
make judgements and accounting estimates that are reasonable and prudent;
-
prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.
The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company’s transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
Statement of disclosure to auditor
So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the company’s auditor is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the company’s auditor is aware of that information.
This report has been prepared in accordance with the provisions applicable to companies entitled to the small companies exemption.
On behalf of the board
N Howe
Director
24 December 2020
RFC BEARWOOD LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF RFC BEARWOOD LIMITED
- 2 -
Opinion
We have audited the financial statements of RFC Bearwood Limited (the 'company') for the year ended 30 June 2020 which comprise the profit and loss account, the balance sheet, the statement of cash flows and notes to the financial statements, including a summary of significant accounting policies.
The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including FRS 102
The Financial Reporting Standard applicable in the UK and Republic of Ireland
(United Kingdom Generally Accepted Accounting Practice).
In our opinion the financial statements:
-
give a true and fair view of the state of the company's affairs as at 30 June 2020 and of its loss for the year then ended;
-
have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
-
have been prepared in accordance with the requirements of the Companies Act 2006.
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the
Auditor's
responsibilities for the audit of the financial statements
section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard
, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Conclusions relating to going concern
We have nothing to report in respect of the following matters in relation to which the ISAs (UK) require us to report to you where:
-
the directors' use of the going concern basis of accounting in the preparation of the financial statements is not appropriate; or
-
the directors have not disclosed in the financial statements any identified material uncertainties that may cast significant doubt about the company’s ability to continue to adopt the going concern basis of accounting for a period of at least twelve months from the date when the financial statements are authorised for issue
.
The directors are responsible for the other information. The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report thereon. Our opinion on the
financial statements
does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.
In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of our audit
:
-
the information given in the directors' r
eport for the financial year for which the financial statements are prepared is consistent with the financial statements
; and
-
the directors' report has been prepared in accordance with applicable legal requirements.
RFC BEARWOOD LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF RFC BEARWOOD LIMITED
- 3 -
Matters on which we are required to report by exception
In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identifie
d
material misstatements in the directors'
r
eport
.
We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion:
-
adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
-
the financial statements are not in agreement with the accounting records and returns; or
-
certain disclosures of directors' remuneration specified by law are not made; or
-
we have not received all the information and explanations we require for our audit; or
-
the directors were not entitled to prepare the financial statements in accordance with the small companies regime and take advantage of the small companies' exemption in preparing the directors' report and take advantage of the small companies exemption from the requirement to prepare a strategic report.
Responsibilities of directors
As explained more fully in the directors'
r
esponsibilities
s
tatement, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.
In preparing the financial statements, the directors are responsible for assessing the company
'
s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.
Auditor's responsibilities for the audit of the financial statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
A further description of our responsibilities for the audit of the financial statements is located on the
Financial Reporting Council’s website at: http://www.frc.org.uk/auditorsresponsibilities
.
This description forms part of our auditor’s report.
This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's members, as a body, for our audit work, for this report, or for the opinions we have formed.
Paul Windmill (Senior Statutory Auditor)
for and on behalf of Myers Clark
24 December 2020
Chartered Accountants
Statutory Auditor
Egale 1
80 St Albans Road
Watford
Hertfordshire
WD17 1DL
RFC BEARWOOD LIMITED
PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 30 JUNE 2020
- 4 -
2020
2019
£
£
Administrative expenses
(5,000)
(3,000)
Profit on disposal of fixed assets
-
4,237,922
Amount written off loans
-
500,000
(Loss)/profit before taxation
(5,000)
4,734,922
Tax on (loss)/profit
-
-
(Loss)/profit for the financial year
(5,000)
4,734,922
RFC BEARWOOD LIMITED
BALANCE SHEET
AS AT
30 JUNE 2020
30 June 2020
- 5 -
2020
2019
Notes
£
£
£
£
Fixed assets
Tangible assets
2
39,814,289
28,671,217
Current assets
Debtors
3
377,931
823,870
Cash at bank and in hand
269,725
763,719
647,656
1,587,589
Creditors: amounts falling due within one year
4
(35,732,657)
(25,524,518)
Net current liabilities
(35,085,001)
(23,936,929)
Total assets less current liabilities
4,729,288
4,734,288
Capital and reserves
Called up share capital
5
1
1
Profit and loss reserves
4,729,287
4,734,287
Total equity
4,729,288
4,734,288
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 by the board of directors and authorised for issue on 24 December 2020 and are signed on its behalf by:
N Howe
Director
Company Registration No. 08709240
RFC BEARWOOD LIMITED
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 30 JUNE 2020
- 6 -
2020
2019
Notes
£
£
£
£
Cash flows from operating activities
Cash (absorbed by)/generated from operations
8
(1,269,553)
7,573,116
Investing activities
Purchase of tangible fixed assets
(11,143,072)
(16,278,369)
Net cash used in investing activities
(11,143,072)
(16,278,369)
Financing activities
Proceeds from borrowings
11,918,631
10,896,833
Repayment of bank loans
-
(1,550,000)
Net cash generated from financing activities
11,918,631
9,346,833
Net (decrease)/increase in cash and cash equivalents
(493,994)
641,580
Cash and cash equivalents at beginning of year
763,719
122,139
Cash and cash equivalents at end of year
269,725
763,719
RFC BEARWOOD LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2020
- 7 -
1
Accounting policies
Company information
RFC Bearwood Limited is a
private
company
limited by shares
incorporated in England and Wales.
The registered office is
Madejski Stadium, Junction 11, M4, Reading, Berkshire, RG2 0FL.
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
The financial statements have been drawn up on the basis that the company is a going concern. The validity of the going concern basis of accounting depends on the continuing support of the shareholders. The shareholders have confirmed that they will not seek repayment of their loans to the company unless the company's cash flow permits repayment to be made without jeopardising the company's ability to continue as a going concern and that they will provide additional support to the company if required.
true
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.
Tangible fixed assets
are stated at cost
and represent principally professional fees in connection with the acquisition and development of the property.
Land and buildings Freehold
Depreciation has not been provided as the project is ongoing.
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
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.
1.5
Cash and cash equivalents
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.
RFC BEARWOOD LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2020
1
Accounting policies
(Continued)
- 8 -
1.6
Financial instruments
The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the company's statement of financial position when the company becomes party to the contractual provisions of the instrument.
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.
Basic financial liabilities
Basic financial liabilities,
which include payables within one year are initially recognised at transactions price including transaction costs and are subsequently measured at the undiscounted amount of the cash or consideration expected to be paid.
1.7
Equity instruments
Equity instruments issued by the company are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.
1.8
Taxation
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.
2
Tangible fixed assets
Land and buildings
£
Cost
At 1 July 2019
28,671,217
Additions
11,143,072
At 30 June 2020
39,814,289
Depreciation and impairment
At 1 July 2019 and 30 June 2020
-
Carrying amount
At 30 June 2020
39,814,289
At 30 June 2019
28,671,217
RFC BEARWOOD LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2020
- 9 -
3
Debtors
2020
2019
Amounts falling due within one year:
£
£
Other debtors
377,931
823,870
4
Creditors: amounts falling due within one year
2020
2019
£
£
Trade creditors
2,046,101
3,695,332
Amounts owed to group undertakings
10,797,643
10,858,905
Other creditors
22,888,913
10,970,281
35,732,657
25,524,518
5
Called up share capital
2020
2019
£
£
Issued and fully paid
1 Ordinary share of £1 each
1
1
6
Related party transactions
The company has taken advantage of the exemption available in accordance with FRS 102, paragraph 33.1A not to disclose transactions entered into between two or more members of a group, as the company is a wholly owned subsidiary undertaking of the group to which it is party to the transactions.
The Company invoiced Prestige Fortune Asia Limited £
nil
(201
9
- £4,833,333 ) in respect of the disposal of the residential part of the land owned by the Company. Mr Yongge Dai is a director and the ultimate owner of Prestige Fortune Asia Limited.
7
Parent company
The immediate parent company is The Reading Football Club Limited, a company registered in England and Wales, and the ultimate parent company and controlling party is Great Shine International Limited, a company incorporated in Hong Kong. The ultimate controlling party is Mr Yongge Dai by virtue of his shareholding in Great Shine International Limited.
For the year ended 30 June 20
20
, Renhe Sports Management Company Limited, the immediate parent company of The Reading Football Club Limited and a company incorporated in England and Wales, prepares group financial statements and copies can be obtained from Madejski Stadium, Reading, RG2 0FL.
RFC BEARWOOD LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2020
- 10 -
8
Cash (absorbed by)/generated from operations
2020
2019
£
£
(Loss)/profit for the year after tax
(5,000)
4,734,922
Adjustments for:
Profit on disposal of fixed assets
-
(4,237,922)
Movements in working capital:
Decrease in debtors
445,939
3,319,136
(Decrease)/increase in creditors
(1,710,492)
3,756,980
Cash (absorbed by)/generated from operations
(1,269,553)
7,573,116
9
Analysis of changes in net debt
1 July 2019
Cash flows
30 June 2020
£
£
£
Cash at bank and in hand
763,719
(493,994)
269,725
Borrowings excluding overdrafts
(10,967,281)
(11,918,632)
(22,885,913)
(10,203,562)
(12,412,626)
(22,616,188)
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N Howe
N Niruttinanon
Y Dai
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