Company registration number SC152187 (Scotland)
GROVES-RAINES PROPERTIES LIMITED
UNAUDITED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2021
PAGES FOR FILING WITH REGISTRAR
GROVES-RAINES PROPERTIES LIMITED
CONTENTS
Page
Balance sheet
1 - 2
Notes to the financial statements
3 - 8
GROVES-RAINES PROPERTIES LIMITED
BALANCE SHEET
AS AT
31 AUGUST 2021
31 August 2021
- 1 -
2021
2020
Notes
£
£
£
£
Fixed assets
Tangible assets
3
7,125
11,160
Investment properties
4
2,500,000
2,500,000
2,507,125
2,511,160
Current assets
Debtors
5
71,538
103,705
Cash at bank and in hand
33,709
35,721
105,247
139,426
Creditors: amounts falling due within one year
6
(144,554)
(160,995)
Net current liabilities
(39,307)
(21,569)
Total assets less current liabilities
2,467,818
2,489,591
Creditors: amounts falling due after more than one year
7
(252,956)
(291,394)
Provisions for liabilities
(2,878)
Net assets
2,214,862
2,195,319
Capital and reserves
Called up share capital
34,002
34,002
Other reserve
8
309,686
309,686
Capital redemption reserve
8
71,600
71,600
Distributable profit and loss reserves
8
1,799,574
1,780,031
Total equity
2,214,862
2,195,319
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 August 2021 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.
GROVES-RAINES PROPERTIES LIMITED
BALANCE SHEET (CONTINUED)
AS AT
31 AUGUST 2021
31 August 2021
- 2 -
The financial statements were approved by the board of directors and authorised for issue on 29 August 2022 and are signed on its behalf by:
N R P Groves-Raines
Director
Company Registration No. SC152187
GROVES-RAINES PROPERTIES LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2021
- 3 -
1
Accounting policies
Company information
Groves-Raines Properties Limited is a
private
company
limited by shares
incorporated in
Scotland
.
The registered office is
1 Rutland Court, Edinburgh, United Kingdom, EH3 8EY.
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.
The company has taken advantage of the exemption under section
399
of the
Companies Act 2006 not to prepare consolidated accounts
, on the basis that the group of which this is the parent qualifies as a small group
. The
financial statements
present information about the company as an individual entity and not about its group
.
1.2
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.
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 equipment
25% on cost
Fixtures and fittings
20% on cost
Motor vehicles
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
.
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.
Changes in fair value are recognised in profit or loss.
GROVES-RAINES PROPERTIES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2021
1
Accounting policies
(Continued)
- 4 -
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
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.
1.7
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.
1.8
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
.
1.9
Leases
Rentals payable under operating leases,
including
any lease incentives received, are charged to
profit or loss
on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the lease
s
asset are consumed.
Rental income from operating leases is recognised on a straight line basis over the term of the relevant lease. Initial direct costs incurred in negotiating and arranging an operating lease are added to the carrying amount of the leased asset and recognised on a straight line basis over the lease term.
GROVES-RAINES PROPERTIES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2021
1
Accounting policies
(Continued)
- 5 -
1.10
Government grants
Government grants are recognised at the fair value of the asset receive
d
or receivable when there is reasonable assurance that the grant conditions will be met and the grants will be received.
A grant that specifies performance conditions is recognised in income when the performance conditions are met
. Where a
grant does not specify performance conditions
it
is recognised in income when the proceeds are received or receivable
. A grant received before the recognition criteria are satisfied is recognised as a liability.
1.11
Exemption from preparing consolidated financial statements
The company, and the group headed by it, qualify as small as set out in section 383 of the Companies Act 2006 and the parent and group are considered eligible for the exemption to prepare consolidated accounts.
1.12
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.
2
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2021
2020
Number
Number
Total
3
3
GROVES-RAINES PROPERTIES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2021
- 6 -
3
Tangible fixed assets
Plant and equipment
Fixtures and fittings
Motor vehicles
Total
£
£
£
£
Cost
At 1 September 2020
13,845
4,643
75,033
93,521
Disposals
(34,795)
(34,795)
At 31 August 2021
13,845
4,643
40,238
58,726
Depreciation and impairment
At 1 September 2020
3,461
3,867
75,033
82,361
Depreciation charged in the year
3,461
574
4,035
Eliminated in respect of disposals
(34,795)
(34,795)
At 31 August 2021
6,922
4,441
40,238
51,601
Carrying amount
At 31 August 2021
6,923
202
7,125
At 31 August 2020
10,384
776
11,160
The net carrying value of tangible fixed assets includes the following in respect of assets held under finance leases or hire purchase contracts.
2021
2020
£
£
Plant and equipment
6,923
10,384
6,923
10,384
4
Investment property
2021
£
Fair value
At 1 September 2020 and 31 August 2021
2,500,000
The property was revalued in 2020 by the directors on an open market value for existing use basis. The directors consider the valuation is still reflective of the market value at the statement of financial position date.
GROVES-RAINES PROPERTIES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2021
- 7 -
5
Debtors
2021
2020
Amounts falling due within one year:
£
£
Trade debtors
7,731
Corporation tax recoverable
6,383
Other debtors
55,372
85,594
Prepayments and accrued income
16,166
3,997
71,538
103,705
6
Creditors: amounts falling due within one year
2021
2020
£
£
Bank loans
33,793
30,976
Obligations under finance leases
4,645
19,456
Trade creditors
2,009
192
Corporation tax
4,851
Other taxation and social security
1,291
559
Other creditors
97,942
99,621
Accruals and deferred income
4,874
5,340
144,554
160,995
Santander UK PLC hold a floating charge over the general assets of the company and a legal security over the investment property owned by the company to the extent of the company's indebtedness to the bank.
Net obligations under finance lease and hire purchase contracts are secured on the assets held under contract.
Secured creditors at the year end total £38,438 (2020 - £50,432).
7
Creditors: amounts falling due after more than one year
2021
2020
£
£
Bank loans and overdrafts
252,956
286,749
Obligations under finance leases
4,645
252,956
291,394
Secured creditors at the year end total £252,956 (2020 - £291,394).
GROVES-RAINES PROPERTIES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2021
- 8 -
8
Reserves
Other reserves
The other reserve arises on changes in fair value of the investment property. Distributions from this reserve are not permitted as the balance does not represent a realised profit.
Profit and loss account
The profit and loss account includes current and prior year retained profits and dividends declared and paid.
Capital redemption reserve
The capital redemption reserve records the nominal value of shares repurchased by the company.
9
Operating lease commitments
At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, as follows:
2021
2020
£
£
3,814
11,443
10
Related party transactions
Included within other creditors is £627
(2020 - other debtors £732) due to Custom (Leith) Limited, a company with a director in common with Groves-Raines Properties Limited. Any balance due from Custom (Leith) Limited attracts interest at 6% per annum and is repayable on demand. The interest charge was suspended due to COVID-19.
Also included within other creditors is £83,535
(2020 - £94,525) due to two of the directors of the company. The loan is interest fee and repayable on demand.
Included within other debtors is a balance of £54,560
(2020 - £60,450) due from Groves-Raines Architects Studios Ltd which is a company also owned by the directors. The balance due from Groves-Raines Architects Studios Ltd is interest free and is repayable on demand.