Sherbourne Roden Limited - Period Ending 2018-08-31

Registration number: 10910820

Sherbourne Roden Limited

Annual Report and Unaudited Financial Statements

for the Period from 11 August 2017 to 31 August 2018

Sherbourne Roden Limited

(Registration number: 10910820)
Balance Sheet as at 31 August 2018

	Note	31 August 2018  £
Current assets
Stocks	3	3,733,557
Debtors	4	5,017
Cash at bank and in hand		109,979
		3,848,553
Creditors: Amounts falling due within one year	5	(341,749)
Total assets less current liabilities		3,506,804
Creditors: Amounts falling due after more than one year	5	(2,717,035)
Net assets		789,769
Capital and reserves
Called up share capital	7	961
Share premium reserve		799,822
Profit and loss account		(11,014)
Total equity		789,769

For the financial period ending 31 August 2018 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.

Directors' responsibilities:

•	The members have not required the company to obtain an audit of its accounts for the period in question in accordance with section 476; and
•	The directors acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and the preparation of accounts.

These financial statements have been prepared in accordance with the special provisions relating to companies subject to the small companies regime within Part 15 of the Companies Act 2006.

These financial statements have been delivered in accordance with the provisions applicable to companies subject to the small companies regime and the option not to file the Profit and Loss Account has been taken.

Approved and authorised by the Board on 9 May 2019 and signed on its behalf by:
 

B J O'Grady
Director

The notes on pages 2 to 6 form an integral part of these financial statements.
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Sherbourne Roden Limited

Notes to the Financial Statements for the Period from 11 August 2017 to 31 August 2018

1

General information

The company is a private company limited by share capital, incorporated in England and Wales.

The address of its registered office is:
15 Hertford Court
Hertford Road
Marlborough
United Kingdom
SN8 4AW

2

Accounting policies

Summary of significant accounting policies and key accounting estimates

The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.

Statement of compliance

These financial statements have been prepared in accordance with Financial Reporting Standard 102 Section 1A - 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' and the Companies Act 2006.

Basis of preparation

These financial statements have been prepared using the historical cost convention except for, where disclosed in these accounting policies, certain items that are shown at fair value.

The presentational currency of the financial statements is Pounds Sterling, being the functional currency of the primary economic environment in which the company operates. Monetary amounts in these financial statements are rounded to the nearest Pound.

Going concern

After reviewing the company's forecasts and projections, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. The company therefore continues to adopt the going concern basis in preparing its financial statements.

Critical accounting judgements and key sources of estimation uncertainty
In the application of the company’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amounts of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods.
 

Judgements

At each reporting date a judgement is made concerning the impairment of stock. Stock is assessed for impairment and if stocks are impaired, the carrying amount is reduced to its selling price less costs to complete and sell; the impairment loss is recognised immediately in the profit or loss.

Key sources of estimation uncertainty

No key sources of estimation uncertainty have been identified by management in preparing these financial statements other than those detailed in these accounting policies.

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Sherbourne Roden Limited

Notes to the Financial Statements for the Period from 11 August 2017 to 31 August 2018

Tax

The current tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the reporting date in the countries where the company operates and generates taxable income.

Deferred tax is recognised on temporary differences arising between the tax bases of assets and liabilities and their carrying amounts in the financial statements and on unused tax losses or tax credits in the company. Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the reporting date.

Cash and cash equivalents

Cash and cash equivalents comprise cash on hand and call deposits, and other short-term highly liquid investments that are readily convertible to a known amount of cash and are subject to an insignificant risk of change in value.

Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that hav ebeen incurred in bringing the stocks to their present location and condition, including interest costs.

At each reporting date, stocks are assessed for impairment. If stocks are impaired, the carrying amount is reduced to its selling price less costs to complete and sell; the impairment loss is recognised immediately in profit or loss.

Trade creditors

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Accounts payable are classified as current liabilities if the company does not have an unconditional right, at the end of the reporting period, to defer settlement of the creditor for at least twelve months after the reporting date. If there is an unconditional right to defer settlement for at least twelve months after the reporting date, they are presented as non-current liabilities.

Trade creditors are recognised initially at the transaction price and all are repayable within one year and hence are included at the undiscounted amount of cash expected to be paid.

Borrowings

Interest-bearing borrowings are initially recorded at fair value, net of transaction costs. Interest-bearing borrowings are subsequently carried at amortised cost, with the difference between the proceeds, net of transaction costs, and the amount due on redemption being recognised as a charge to the Profit and Loss Account over the period of the relevant borrowing.

Interest expense is recognised on the basis of the effective interest method and is included in interest payable and similar charges.

Borrowings are classified as current liabilities unless the company has an unconditional right to defer settlement of the liability for at least twelve months after the reporting date.

Share capital

Ordinary shares are classified as equity. Equity instruments are measured at the fair value of the cash or other resources received or receivable, net of the direct costs of issuing the equity instruments. If payment is deferred and the time value of money is material, the initial measurement is on a present value basis.

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Sherbourne Roden Limited

Notes to the Financial Statements for the Period from 11 August 2017 to 31 August 2018

Financial instruments

Classification
Financial instruments are classified and accounted for according to the substance of the contractual arrangement, as financial assets, financial liabilities or equity instruments. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities. Where shares are issued, any component that creates a financial liability of the company is presented as a liability on the balance sheet. The corresponding dividends relating to the liability component are charged as interest expenses in the profit and loss account.

 Recognition and measurement
All financial assets and liabilities are initially measured at transaction price (including transaction costs), except for those financial assets classified as at fair value through profit or loss, which are initially measured at fair value (which is normally the transaction price excluding transaction costs), unless the arrangement constitutes a financing transaction. If an arrangement constitutes a financing transaction, the financial asset or financial liability is measured at the present value of the future payments discounted at a market rate of interest for a similar debt instrument.

 Impairment
Assets, other than those measured at fair value, are assessed for indicators of impairment at each balance sheet date. If there is objective evidence of impairment, an impairment loss is recognised in profit or loss as described below.

A non financial asset is impaired where there is objective evidence that, as a result of one or more events that occurred after initial recognition, the estimated recoverable value of the asset has been reduced. The recoverable amount of an asset is the higher of its fair value less costs to sell and its value in use.

For financial assets carried at amortised cost, the amount of an impairment is the difference between the asset’s carrying amount and the present value of estimated future cash flows, discounted at the financial asset’s original effective interest rate.

For financial assets carried at cost less impairment, the impairment loss is the difference between the asset’s carrying amount and the best estimate of the amount that would be received for the asset if it were to be sold at the reporting date.

Where indicators exist for a decrease in impairment loss, and the decrease can be related objectively to an event occurring after the impairment was recognised, the prior impairment loss is tested to determine reversal. An impairment loss is reversed on an individual impaired financial asset to the extent that the revised recoverable value does not lead to a revised carrying amount higher than the carrying value had no impairment been recognised.
 

3

Stocks

	31 August 2018  £
Work in progress	3,733,557

Included within Work in Progress is capitalised interest of £210,872.
 

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Sherbourne Roden Limited

Notes to the Financial Statements for the Period from 11 August 2017 to 31 August 2018

4

Debtors

	31 August 2018  £
Other debtors	5,017
	5,017

5

Creditors

	31 August 2018  £
Due within one year
Trade creditors	340,489
Other creditors	1,260
	341,749
Due after one year
Loans and borrowings	2,717,035

6

Loans and borrowings

	2018 £
Non-current loans and borrowings
Bank borrowings	1,574,305
Other borrowings	1,142,730
	2,717,035

Bank borrowings are secured by a fixed floating charge over the assets of the company.

Other borrowings are unsecured.
 

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Sherbourne Roden Limited

Notes to the Financial Statements for the Period from 11 August 2017 to 31 August 2018

7

Share capital

Allotted, called up and fully paid shares

	31 August 2018
	No.	£
Ordinary A shares of £0.10 each	1,922	192
Ordinary B shares of £0.10 each	7,688	769
	9,610	961

Upon incorporation 1,000 Ordinary A shares were issued at par value having an aggregate nominal value of £100. These were subsequently redesignated as Ordinary B shares.

During the period 500 Ordinary A shares having an aggregate nominal value of £50 were allotted for an aggregate consideration of £250,000.

During the period 7,833 Ordinary B shares having an aggregate nominal value of £783 were allotted for an aggregate consideration of £783. Subsequently 145 of these shares were redesignated as Ordinary A shares.

During the period 1,277 Ordinary A shares having a aggregated nominal value of £128 were allotted for an aggregate consideration of £550,000.
 

8

Related party transactions

Summary of transactions with other related parties

During the period the company was advanced funds by a director in the form of a shareholder's loan. As at 31 August 2018, the company owed £250,000 to the director. Interest was charged at 10% per annum and there are no fixed repayment terms.

During the period the company made purchases from companies under common control of £329,052. As at 31 August 2018, the company owed £316,484 to those companies under common control.

During the period the company acquired property from a company under common control of £2,900,000. As at 31 August 2018, the company owed £192,730 to that company under common control.
 

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