Company Registration No. 09903827 (England and Wales)
COMMERCIAL REGIONAL SPACE LIMITED
UNAUDITED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 OCTOBER 2018
PAGES FOR FILING WITH REGISTRAR
COMMERCIAL REGIONAL SPACE LIMITED
CONTENTS
Page
Balance sheet
1 - 2
Statement of changes in equity
3
Notes to the financial statements
4 - 9
COMMERCIAL REGIONAL SPACE LIMITED
BALANCE SHEET
AS AT
31 OCTOBER 2018
31 October 2018
- 1 -
2018
2017
Notes
£
£
£
£
Fixed assets
Investment properties
3
28,000,000
28,000,000
Investments
4
-
1
28,000,000
28,000,001
Current assets
Debtors
5
259,036
27,062
Cash at bank and in hand
545,383
565,779
804,419
592,841
Creditors: amounts falling due within one year
6
(1,143,113)
(914,895)
Net current liabilities
(338,694)
(322,054)
Total assets less current liabilities
27,661,306
27,677,947
Creditors: amounts falling due after more than one year
7
(15,930,047)
(16,271,186)
Net assets
11,731,259
11,406,761
Capital and reserves
Called up share capital
8
1
1
Revaluation reserve
10,975,133
10,975,133
Profit and loss reserves
756,125
431,627
Total equity
11,731,259
11,406,761
The director of the company has elected not to include a copy of the profit and loss account within the financial statements.
true
For the financial year ended 31 October 2018 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.
The director acknowledges his 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.
COMMERCIAL REGIONAL SPACE LIMITED
BALANCE SHEET (CONTINUED)
AS AT
31 OCTOBER 2018
31 October 2018
- 2 -
The financial statements were approved and signed by the director and authorised for issue on 28 June 2019
Mr S Patel
Director
Company Registration No. 09903827
COMMERCIAL REGIONAL SPACE LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 OCTOBER 2018
- 3 -
Share capital
Revaluation reserve
Profit and loss reserves
Total
£
£
£
£
Balance at 1 November 2016
1
7,975,133
264,906
8,240,040
Year ended 31 October 2017:
Profit for the year
-
-
3,166,721
3,166,721
Other comprehensive income:
Transfer between reserves
-
3,000,000
(3,000,000)
-
Total comprehensive income for the year
-
3,000,000
166,721
3,166,721
Balance at 31 October 2017
1
10,975,133
431,627
11,406,761
Year ended 31 October 2018:
Profit and total comprehensive income for the year
-
-
324,498
324,498
Balance at 31 October 2018
1
10,975,133
756,125
11,731,259
Retained earnings comprise of the Profit and loss reserve and the Revaluation reserve; the revaluation reserve is non-distributable.
COMMERCIAL REGIONAL SPACE LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 OCTOBER 2018
- 4 -
1
Accounting policies
Company information
Commercial Regional Space Limited is a
private
company
limited by shares
incorporated in England and Wales.
The registered office is
1st Floor, Adhan House, 52a Preston New Road, Blackburn, BB2 6AH.
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 investment properties at fair value. The principal accounting policies adopted are set out below.
1.2
Going concern
The company has long term bank funding in place. The director has confirmed that there is no reason to believe that the facilities will not continue to be provided for the foreseeable future and therefore the financial statements are prepared on the going concern basis.
1.3
Turnover
Turnover represents amounts receivable for
rents and other
services net of VAT and trade discounts.
Revenue from contracts for the provision of professional services is recognised by reference to the stage of completion when the stage of completion, costs incurred and costs to complete can be estimated reliably. The stage of completion is calculated by comparing costs incurred, mainly in relation to contractual hourly staff rates and materials, as a proportion of total costs. Where the outcome cannot be estimated reliably, revenue is recognised only to the extent of the expenses recognised that
it is probable will be
recover
ed
.
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.
1.5
Fixed asset investments
Interests in subsidiaries, associates and jointly controlled entities are initially measured at cost and subsequently measured at cost less any accumulated impairment losses.
The investments are assessed for impairment at each reporting date
and
any
impairment
losses or reversals of impairment losses are recognised immediately in profit or loss.
A subsidiary is an entity controlled by the company
. Control is
the power to govern the financial and operating policies of
the
entity so as to obtain benefits from its activities.
COMMERCIAL REGIONAL SPACE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2018
1
Accounting policies
(Continued)
- 5 -
An associate is an entity, being neither a subsidiary nor a joint venture, in which the company holds a long-term interest and where the company has significant influence. The company considers that it has significant influence where it has the power to participate in the financial and operating decisions of the associate.
Entities in which the company has a long term interest and shares control under a contractual arrangement are classified as jointly controlled entities
.
1.6
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, 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.
1.7
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.
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.
COMMERCIAL REGIONAL SPACE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2018
1
Accounting policies
(Continued)
- 6 -
1.8
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.
1.9
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.
In a departure from FRS102 the director has not provided for deferred tax which may arise based on the carrying value of properties when compared to their historical cost.
If certain properties were sold at their carrying values a corporation tax liability would arise on the difference between carrying value and indexed historical cost calculated at the corporation tax rates prevailing at the date of disposal.
1.10
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.
2
Employees
The average monthly number of persons (including directors) employed by the company during the year was 1 (2017 - 1).
3
Investment property
2018
£
Fair value
At 1 November 2017 and 31 October 2018
28,000,000
COMMERCIAL REGIONAL SPACE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2018
3
Investment property
(Continued)
- 7 -
The company's investment property is included at the directors' valuation of open market value as at 31 October 2018. The historical cost of the property is £17,024,867 (2017 - £17,024,867).
4
Fixed asset investments
2018
2017
£
£
Investments
-
1
Movements in fixed asset investments
Investments other than loans
£
Cost or valuation
At 1 November 2017
1
Disposals
(1)
At 31 October 2018
-
Carrying amount
At 31 October 2018
-
At 31 October 2017
1
5
Debtors
2018
2017
Amounts falling due within one year:
£
£
Trade debtors
38,293
27,061
Other debtors
220,743
1
259,036
27,062
6
Creditors: amounts falling due within one year
2018
2017
£
£
Trade creditors
637,719
462,220
Taxation and social security
253,797
180,071
Other creditors
251,597
272,604
1,143,113
914,895
COMMERCIAL REGIONAL SPACE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2018
- 8 -
7
Creditors: amounts falling due after more than one year
2018
2017
£
£
Bank loans and overdrafts
15,930,047
15,930,047
Other creditors
-
341,139
15,930,047
16,271,186
The bank loan is secured upon the company's investment property at Junction 7 Business Park, Clayton-Le-Moors, Accrington.
Other creditors relates to amounts due to connected companies.
8
Called up share capital
2018
2017
£
£
Ordinary share capital
Issued and not fully paid
1 Ordinary share of £1 each
1
1
COMMERCIAL REGIONAL SPACE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2018
- 9 -
9
Related party transactions
During the year the company operated a loan account with a company controlled by the director. At 31 October 2018, the company was owed £220,742 by (2017 - £341,139 owed to) that company.
During the year the company paid management charges of £nil (2017 - £548,500) to companies controlled by the director, and of £817.677 (2017 - £604,000) to companies controlled by the director's brother.
2018-10-31
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CCH Software
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No description of principal activity
28 June 2019
Mr S Patel
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