Harlequin Estates Limited - Accounts to registrar (filleted) - small 18.2

REGISTERED NUMBER: 07475318 (England and Wales)

HARLEQUIN ESTATES LIMITED

FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 NOVEMBER 2018

Page

Company Information

1

Balance Sheet

2

Notes to the Financial Statements

3

DIRECTORS:

P I Parkhouse

W Sutcliffe

SECRETARY:

Kerry Secretarial Services Ltd

REGISTERED OFFICE:

c/o Cox Costello & Horne

Fourth & Fifth Floor

14-15 Lower Grosvenor Place

London

SW1W 0EX

REGISTERED NUMBER:

07475318 (England and Wales)

SENIOR STATUTORY AUDITOR:

Michael F Cox FCA

AUDITORS:

Cox Costello & Horne

Chartered Accountants and Statutory Auditors

4th & 5th Floor

14-15 Lower Grosvenor Place

London

SW1W 0EX

FIXED ASSETS

Tangible assets

4

1,700,500

2,431,600

Investments

5

100,100

301,100

Investment property

6

800,000

-

2,600,600

2,732,700

CURRENT ASSETS

Debtors

7

241,487

20,319

Cash at bank

8,382

24,348

249,869

44,667

CREDITORS

Amounts falling due within one year

8

990,407

1,003,479

NET CURRENT LIABILITIES

(740,538

)

(958,812

)

TOTAL ASSETS LESS CURRENT LIABILITIES

1,860,062

1,773,888

CREDITORS

Amounts falling due after more than one year

9

(1,392,702

)

(1,416,854

)

PROVISIONS FOR LIABILITIES

(46,482

)

(11,900

)

NET ASSETS

420,878

345,134

CAPITAL AND RESERVES

Called up share capital

100,000

100,000

Fair value reserve

11

136,078

93,560

Retained earnings

184,800

151,574

SHAREHOLDERS' FUNDS

420,878

345,134

The financial statements have been prepared and delivered in accordance with the provisions of Part 15 of the Companies Act 2006 relating to small companies.

In accordance with Section 444 of the Companies Act 2006, the Profit and loss account has not been delivered.

The financial statements were approved by the Board of Directors on 30 August 2019 and were signed on its behalf by:

P I Parkhouse - Director

1.	STATUTORY INFORMATION

Harlequin Estates Limited is a private company, limited by shares , registered in England and Wales. The

company's registered number and registered office address can be found on the Company Information page.

2.	ACCOUNTING POLICIES

Basis of preparing the financial statements

These financial statements have been prepared in accordance with Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" including the provisions of Section 1A "Small Entities" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention as modified by the revaluation of certain assets.

Going concern

The company meets its day-to-day working capital requirements through its bank & loan facilities and support

from group companies. After making enquiries, 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.

Preparation of consolidated financial statements

The financial statements contain information about Harlequin Estates Limited as an individual company and do

not contain consolidated financial information as the parent of a group. The company is exempt under Section

399(2A) of the Companies Act 2006 from the requirements to prepare consolidated financial statements.

Turnover

Turnover comprises revenue recognised by the company in respect of services supplied. Turnover includes

rental income and service and management charges from properties. Turnover is measured as the fair value of

the consideration received or receivable.

Rental income from operating leases is recognised on a straight-line basis over the lease term. When the

company provides incentives to its tenants, the cost of incentives is recognised over the lease term, on a

straight-line basis, as a reduction of rental income.

Service and management charges are recognised in the accounting period in which the services are rendered.

The following criteria must also be met before revenue is recognised:

Rendering of services

Revenue from a contract to provide services is recognised in the period in which the services are provided in

accordance with the stage of completion of the contract when all of the following conditions are satisfied:

- the amount of revenue can be measured reliably;

- it is probable that the company will receive the consideration due under the contract;

- the stage of completion of the contract at the end of the reporting period can be measured reliably; and

- the costs incurred and the costs to complete the contract can be measured reliably.

Tangible fixed assets

Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life.

Land and buildings

-

in accordance with the property

Plant and machinery etc

-

10% on cost

All assets are initially recognised at cost and subsequently carried at cost less accumulated depreciation. The

cost of an asset initially recognised includes its purchase price and any cost that is directly attributable to

bringing the asset to the location and condition necessary for it to be capable of operating in the manner

intended by management.

Investments in subsidiaries

Investments in subsidiary undertakings are recognised at cost.

Investment property

Investment property is held for long-term rental yields or for capital appreciation or both, and not held for the

social benefit or for use in the business. Investment property is measured at cost, including related transaction

costs, on initial recognition and subsequently at fair value as at the year end, with changes in fair value

recognised in profit and loss. Subsequent expenditure is capitalised to the asset's carrying value only when it is

probable that future economic benefits associated with the expenditure will flow to the company. All other repairs

and maintenance costs are expensed when incurred. Fair value is determined by either independent

professional third party valuers or company officers, such as the directors. Depreciation is not provided in

respect of the investment properties. Fair value of investment property reflects, among other things, rental

income from current leases and other assumptions market participants would make when pricing the property

under current market conditions.

Financial instruments

a) Debtors

Basic financial assets, including trade and other debtors, are initially recognised at transaction price, 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. Such assets are subsequently carried at amortised cost

using the effective interest method, less any impairment.

b) Creditors

Basic financial liabilities, including trade and other creditors, loans from third parties and loans from related

parties, 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. Such instruments are subsequently carried at amortised cost using the effective interest method, less

any impairment.

c) Cash at bank and in hand

Cash and cash equivalents are represented by cash in hand, deposits held at call with financial institutions, and

other short-term highly liquid investments that mature in no more than three months from the date of acquisition

and that are readily convertible to known amounts of cash with insignificant risk of change in value.

d) Interest income

Interest income is recognised in profit or loss using the effective interest method.

Taxation

The tax expense for the year comprises current and deferred tax.

Tax is recognised in profit or loss except that a change attributable to an item of income and expense recognised

as other comprehensive income or to an item recognised directly in equity is also recognised in other

comprehensive income or directly in equity respectively.

Deferred tax balances are recognised in respect of all timing differences that have originated but not reversed by

the balance sheet date, except that:

-

the recognition of deferred tax assets is limited to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits; and

-

any deferred tax balances are reversed if and when all conditions for retaining associated tax allowances have been met.

Both current and deferred tax is determined using tax rates and laws that have been enacted or substantively

enacted by the balance sheet date.

Pension costs

The company makes contributes into the personal retirement schemes of certain staff. Contributions by the

company and staff are determined by mutual agreement.

In the aforementioned schemes, staff contract directly with the pension company, and assets of those schemes

are held separately from those of the company. The company acts as agent in collecting and paying over staff

pension contributions. Once the contributions have been paid, the company as employer has no further

obligations.

The company's contributions are charged to the profit and loss account in the period to which they relate.

3.	EMPLOYEES AND DIRECTORS

The average number of employees during the year was 2 (2017 - 2 ) .

4.	TANGIBLE FIXED ASSETS

Plant and

Land and

machinery

buildings

etc

Totals

£

£

£

COST OR VALUATION

At 1 December 2017

2,390,700

85,000

2,475,700

Reclassification/transfer

(721,200

)

-

(721,200

)

At 30 November 2018

1,669,500

85,000

1,754,500

DEPRECIATION

At 1 December 2017

18,600

25,500

44,100

Charge for year

10,000

8,500

18,500

Eliminated on disposal

(8,600

)

-

(8,600

)

At 30 November 2018

20,000

34,000

54,000

NET BOOK VALUE

At 30 November 2018

1,649,500

51,000

1,700,500

At 30 November 2017

2,372,100

59,500

2,431,600

Included in cost or valuation of land and buildings is freehold land of £ 1,200,000 (2017 - £ 1,670,730 ) which is

not depreciated.

Cost or valuation at 30 November 2018 is represented by:

Plant and

Land and

machinery

buildings

etc

Totals

£

£

£

Cost

1,669,500

85,000

1,754,500

5.	FIXED ASSET INVESTMENTS

Shares in

group

undertakings

£

COST

At 1 December 2017

301,100

Disposals

(201,000

)

At 30 November 2018

100,100

NET BOOK VALUE

At 30 November 2018

100,100

At 30 November 2017

301,100

6.	INVESTMENT PROPERTY

Total

£

FAIR VALUE

Revaluations

78,800

Reclassification/transfer

721,200

At 30 November 2018

800,000

NET BOOK VALUE

At 30 November 2018

800,000

Fair value at 30 November 2018 is represented by:

£

Valuation in 2015

93,560

Valuation in 2018

97,400

Cost

609,040

800,000

7.

DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

30.11.18

30.11.17

£

£

Trade debtors

1,933

1,188

Other debtors

239,554

19,131

241,487

20,319

8.

CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

30.11.18

30.11.17

£

£

Bank loan

401,657

426,885

Trade creditors

6,926

12,161

Amounts owed to group undertaking

129,267

299,044

Taxation and social security

189,337

126,080

Other creditors

263,220

139,309

990,407

1,003,479

9.

CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR

30.11.18

30.11.17

£

£

Bank loan

1,071,086

1,138,360

Other creditors

321,616

278,494

1,392,702

1,416,854

Amounts falling due in more than five years:

Repayable by instalments

Bank loan more 5 yr by instal

1,071,086

1,138,360

10.	SECURED DEBTS

The following secured debts are included within creditors:

30.11.18

30.11.17

£

£

Bank loan

1,472,743

1,565,245

HSBC hold a legal mortgage over the freehold property known as Unit 1 11-12 Halifax Road, Cressex Business

Park, High Wycombe.

Lloyds Bank plc hold a legal charge over the freehold property known as Lacemaker House, 5-7 Chapel St.,,

Marlow

11.

RESERVES

Fair

value

reserve

£

At 1 December 2017

93,560

Fair value movement

42,518

At 30 November 2018

136,078

The fair value reserve comprises the movement on the revaluation of investment property and deferred tax

recognised thereon.

12.	DISCLOSURE UNDER SECTION 444(5B) OF THE COMPANIES ACT 2006

The Report of the Auditors was unqualified.

Michael F Cox FCA (Senior Statutory Auditor)

for and on behalf of Cox Costello & Horne

13.	RELATED PARTY DISCLOSURES

The company has taken advantage of exemption, under the terms of Financial Reporting Standard 102 'The

Financial Reporting Standard applicable in the UK and Republic of Ireland', not to disclose related party

transactions with wholly owned subsidiaries within the group.

BP Products Limited - company directors have an equity interest

During the reporting period, the company contracted services from related party totalling £60,000 (2017 -

£50,000). At the reporting date, amount due to related party was £110,000 (2017 - £50,000).

Chefskit Limited - company directors have an equity interest

At the reporting date, amount due from related party was £14,500 (2017 - £500 due to).

Harlequin Brickwork Limited - group company

At the reporting date, amount due to related party was £129,267 (2017 - £299,044).

Harlequin Brickwork Contracting Limited - company directors have an equity interest

During the reporting period, the company contracted services to related party totalling £16,000 (2017 - £nil).

At the reporting date, amount due to related party was £37,800 (2017 - £nil).

Harlequin Scaffolding Solutions Limited - company directors have an equity interest

During the reporting period, the company contracted services to related party totalling £7,500 (2017 - £nil).At the

reporting date, amount due from related party was £211,000 (2017 - £nil).

Jester Associates LLP - company directors have a members interest

At the reporting date, amount due to related party was £1,107 (2017 - £1,107).

PPEKIT Limited - company directors have an equity interest

At the reporting date, amount due to related party was £26,200 (2017 - £22,000).

Amounts outstanding are unsecured, attracts no interest, have no fixed terms of repayment and is considered

repayable on demand.

14.	ULTIMATE CONTROLLING PARTY

At the reporting date, in the opinion of the directors, there is no single ultimate controlling party. There has been

no change between the reporting date and date of approval of the financial statements.