Wring's Units Limited - Period Ending 2018-08-31

Registration number: 01758281

Wring's Units Limited

Annual Report and Financial Statements

for the Year Ended 31 August 2018

Wring's Units Limited

Contents

Balance Sheet	1
Notes to the Financial Statements	2 to 10

Wring's Units Limited

(Registration number: 01758281)
Balance Sheet as at 31 August 2018

	Note	2018 £	2017 £
Fixed assets
Tangible assets	5	347,649	346,779
Investment property	6	2,080,000	2,080,000
		2,427,649	2,426,779
Current assets
Debtors	7	180,182	289,178
Cash at bank and in hand		51,998	44,050
		232,180	333,228
Creditors: Amounts falling due within one year	8	(157,843)	(122,472)
Net current assets		74,337	210,756
Total assets less current liabilities		2,501,986	2,637,535
Creditors: Amounts falling due after more than one year	8	(207,647)	(280,734)
Provisions for liabilities		8,051	-
Net assets		2,302,390	2,356,801
Capital and reserves
Called up share capital		100	100
Revaluation reserve		577,286	577,286
Profit and loss account		1,725,004	1,779,415
Total equity		2,302,390	2,356,801

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 30 May 2019 and signed on its behalf by:
 

.........................................

J M Wring
Company secretary and director

The notes on pages 2 to 10 form an integral part of these financial statements.

Page 1

Wring's Units Limited

Notes to the Financial Statements for the Year Ended 31 August 2018

1	General information

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

The address of its registered office is:
Wring Group Building
Vale Lane
Bedminster
Bristol
BS3 5RU

These financial statements were authorised for issue by the Board on 30 May 2019.

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 that as disclosed in the accounting policies certain items are shown at fair value.

Name of parent of group
These financial statements are consolidated in the financial statements of Wring Group Limited. The financial statements of Wring Group Limited may be obtained from:

Vale Lane
Bedminster
Bristol
BS3 5RU.

Going concern

The company meets its day to day working capital requirement through its cash holdings. After making enquiries, the directors have a reasonable expectation that the company has adequate resources to continue to operate for the the foreseeable future. The directors have therefore adopted the going concern basis in preparing the financial statements.

Audit report

The Independent Auditor's Report was unqualified. The name of the Senior Statutory Auditor who signed the audit report on 30 May 2019 was Andrew J Jordan, who signed for and on behalf of Milsted Langdon LLP.

Page 2

Wring's Units Limited

Notes to the Financial Statements for the Year Ended 31 August 2018

Key sources of estimation uncertainty

In the application of the group's accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount 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 where the revision affects only that period, or in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

The directors have carried out a valuation of investment properties on an open market basis and based on similar properties in similar geographic locations. Further details are given in Note 6.

Revenue recognition

Turnover comprises the fair value of the consideration received or receivable for the rental of investment properties in the ordinary course of the company’s activities. Turnover is shown net of sales/value added tax, rebates and discounts.

The company recognises revenue when:
- The amount of revenue can be reliably measured,
- it is probable that future economic benefits will flow to the entity, and
- specific criteria have been met for each of the company's activities.

Foreign currency transactions and balances

Transactions in currencies other than the presentational currency of these financial statements are recorded at the prevailing exchange rate on the date of the transaction. At each reporting end date, assets and liabilities recorded in foreign currency are retranslated at the prevailing exchange rate on the reporting end date. Any gains or losses arising on retranslation are recognised in the proft and loss account.

Tax

The tax expense for the period comprises current and deferred tax. Tax is recognised in profit or loss, except that a change attributable to an item of income or expense recognised as other comprehensive income is also recognised directly in other comprehensive income.

The current income 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 in respect of all timing differences between taxable profits and profits reported in the financial statements.

Unrelieved tax losses and other deferred tax assets are recognised when it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits.

Deferred tax is measured using the tax rates and laws that have been enacted or substantively enacted by the reporting date and that are expected to apply to the reversal of the timing difference.

Current and deferred taxation assets and liabilities are not discounted.

Page 3

Wring's Units Limited

Notes to the Financial Statements for the Year Ended 31 August 2018

Tangible assets

Tangible assets are stated in the balance sheet at cost, less any subsequent accumulated depreciation and subsequent accumulated impairment losses.

The cost of tangible assets includes directly attributable incremental costs incurred in their acquisition and installation.

Depreciation

Depreciation is charged so as to write off the cost of assets, other than land and properties under construction over their estimated useful lives, as follows:

Asset class	Depreciation method and rate
Leasehold land and buildings	Over the term of the lease
Furniture, fittings and equipment	25% straight line

Investment property

Investment property is carried at fair value, derived from the current market prices for comparable real estate determined annually by the directors. The valuation uses observable market prices, adjusted if necessary for any difference in the nature, location or condition of the specific asset. Changes in fair value are recognised in profit or loss.

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.

Trade debtors

Trade debtors are amounts due from customers for services performed in the ordinary course of business.

Trade debtors are recognised initially at the transaction price. They are subsequently measured at amortised cost using the effective interest method, less provision for impairment. A provision for the impairment of trade debtors is established when there is objective evidence that the company will not be able to collect all amounts due according to the original terms of the receivables.

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 subsequently measured at amortised cost using the effective interest method.

Page 4

Wring's Units Limited

Notes to the Financial Statements for the Year Ended 31 August 2018

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.

Defined contribution pension obligation

A defined contribution plan is a pension plan under which fixed contributions are paid into a pension fund and the group has no legal or constructive obligation to pay further contributions even if the fund does not hold sufficient assets to pay all employees the benefits relating to employee service in the current and prior periods.

Contributions to defined contribution plans are recognised as employee benefit expense when they are due. If contribution payments exceed the contribution due for service, the excess is recognised as a prepayment.

Page 5

Wring's Units Limited

Notes to the Financial Statements for the Year Ended 31 August 2018

Financial instruments

Recognition and measurement
The group 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 group's profit and loss account when the group becomes party to the contractual provisions of the instrument. Financial assets and liabilities are offset and 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, 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.

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 group after deducting all of its 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 payments 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. Amounts 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.

 Impairment
Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date. Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate.

The impairment loss is recognised in profit or loss. If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.
 

3	Staff numbers

The average number of persons employed by the company (including directors) during the year, was 2 (2017 - 2).

Page 6

Wring's Units Limited

Notes to the Financial Statements for the Year Ended 31 August 2018

4	Auditors' remuneration

	2018 £	2017 £
Audit of the financial statements	4,000	4,000

 

5	Tangible assets

	Leasehold land and buildings £	Furniture, fittings and equipment  £	Total £
Cost or valuation
At 1 September 2017	343,670	33,761	377,431
Additions	-	9,916	9,916
At 31 August 2018	343,670	43,677	387,347
Depreciation
At 1 September 2017	12,066	18,586	30,652
Charge for the year	2,409	6,637	9,046
At 31 August 2018	14,475	25,223	39,698
Carrying amount
At 31 August 2018	329,195	18,454	347,649
At 31 August 2017	331,604	15,175	346,779

6	Investment properties

	2018 £
At 1 September	2,080,000

Investment properties are included in the balance sheet at their fair value as at 31 August 2018, as valued by the director, J M Wring. The valuation is on an open market basis, based on similar properties in similar geographic locations.

Page 7

Wring's Units Limited

Notes to the Financial Statements for the Year Ended 31 August 2018

7

Debtors

	2018 £	2017 £
Trade debtors	80	1,162
Amounts owed by group undertakings	169,408	279,049
Other debtors	455	455
Prepayments and accrued income	10,239	8,512
Total current trade and other debtors	180,182	289,178

8

Creditors

Creditors: amounts falling due within one year

	Note	2018 £	2017 £
Due within one year
Bank loans and overdrafts	10	72,831	72,468
Trade creditors		1,873	1,402
Taxation and social security		11,816	39,636
Accruals and deferred income		71,323	8,966
		157,843	122,472

Creditors include bank loans and overdrafts of which £72,831 (2017 - £72,468) is secured. Details of security in place is given in Note 10.

Creditors: amounts falling due after more than one year

	Note	2018 £	2017 £
Due after one year
Loans and borrowings	10	207,647	280,734

Creditors include bank loans and overdrafts of which £207,647 (2017 - £280,734) is secured. Details of security in place is given in Note 10.

9	Share capital

Allotted, called up and fully paid shares

	2018		2017
	No.	£	No.	£
Ordinary shares of £1 each	100	100	100	100

Page 8

Wring's Units Limited

Notes to the Financial Statements for the Year Ended 31 August 2018

10	Loans and borrowings

	2018 £	2017 £
Non-current loans and borrowings
Bank borrowings	207,647	280,734

	2018 £	2017 £
Current loans and borrowings
Bank borrowings	72,831	72,468

Bank borrowings are secured by legal charges over the freehold properties at Lockes Yard, Hope Cove and Vale Lane owned by the company. All assets of the company are secured by a fixed and floating charge registered on 14 July 2004.

11	Related party transactions

Key management personnel

All directors who have authority and responsibility for planning, directing and controlling the activities of the company are considered to be key management personnel.

Transactions with key management personnel in the year comprise of:

Directors' remuneration

The directors' remuneration for the year was as follows:

	2018 £	2017 £
Remuneration	166,500	46,250

Income and receivables from related parties

2018	Parent £
Sale of goods	200,000
Amounts receivable from related party	169,408

2017	Parent £
Sale of goods	200,000
Amounts receivable from related party	279,049

Page 9

Wring's Units Limited

Notes to the Financial Statements for the Year Ended 31 August 2018

12	Parent and ultimate parent undertaking

The company's immediate parent is Wring Group Limited, incorporated in England and Wales.

 The most senior parent entity producing publicly available financial statements is Wring Group Limited. These financial statements are available upon request from Vale Lane, Bedminster, Bristol, BS3 5RU.

 The ultimate controlling party is J E Wring Discretionary Settlement Trust.

Page 10