Mountstephen Investments Limited - Limited company accounts 18.2

REGISTERED NUMBER: 02458613 (England and Wales)

Report of the Directors and

Unaudited Financial Statements

for the Year Ended 31 December 2018

for

Mountstephen Investments Limited

Page

Company Information

1

Report of the Directors

2

Income Statement

3

Other Comprehensive Income

4

Statement of Financial Position

5

Statement of Changes in Equity

7

Notes to the Financial Statements

8

DIRECTORS:

T R Ward

Dr H Ward

D Gibson

J G Ward

REGISTERED OFFICE:

16 St. Philips Road

Surbiton

Surrey

KT6 4DX

REGISTERED NUMBER:

02458613 (England and Wales)

ACCOUNTANTS:

Howard Lee, Fellows & Co

Chartered Accountants

92 Park Street

Camberley

Surrey

GU15 3NY

The directors present their report with the financial statements of the company for the year ended 31 December 2018.

PRINCIPAL ACTIVITY

The principal activity of the company is property investment and rental.

DIRECTORS

The directors shown below have held office during the whole of the period from 1 January 2018 to the date of this

report.

T R Ward

Dr H Ward

D Gibson

J G Ward

This report has been prepared in accordance with the provisions of Part 15 of the Companies Act 2006 relating to small

companies.

ON BEHALF OF THE BOARD:

T R Ward - Director

13 September 2019

TURNOVER

97,596

96,339

Administrative expenses

(18,616

)

(47,259

)

78,980

49,080

Other operating income and

similar items

(88,750

)

-

OPERATING (LOSS)/PROFIT

(9,770

)

49,080

Interest payable and similar expenses

(66,608

)

(62,783

)

LOSS BEFORE TAXATION

(76,378

)

(13,703

)

Tax on loss

(94,568

)

-

LOSS FOR THE FINANCIAL YEAR

(170,946

)

(13,703

)

LOSS FOR THE YEAR

(170,946

)

(13,703

)

OTHER COMPREHENSIVE INCOME

Fair value adjustments

-

(192,633

)

Income tax relating to other comprehensive income

-

-

OTHER COMPREHENSIVE INCOME FOR THE YEAR, NET OF INCOME TAX

-

(192,633

)

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

(170,946

)

(206,336

)

FIXED ASSETS

Investment property

4

2,331,882

2,331,882

CURRENT ASSETS

Debtors

5

568,792

827,234

Cash at bank

19,355

17,690

588,147

844,924

CREDITORS

Amounts falling due within one year

6

(109,256

)

(107,659

)

NET CURRENT ASSETS

478,891

737,265

TOTAL ASSETS LESS CURRENT LIABILITIES

2,810,773

3,069,147

CREDITORS

Amounts falling due after more than one year

7

(1,293,080

)

(1,380,508

)

NET ASSETS

1,517,693

1,688,639

CAPITAL AND RESERVES

Called up share capital

1,000,000

1,000,000

Non-distributable reserve

142,829

(259,867

)

Retained earnings

374,864

948,506

SHAREHOLDERS' FUNDS

1,517,693

1,688,639

The company is entitled to exemption from audit under Section 477 of the Companies Act 2006 for the year ended 31 December 2018.

The members have not required the company to obtain an audit of its financial statements for the year ended 31 December 2018 in accordance with Section 476 of the Companies Act 2006.

The directors acknowledge their responsibilities for:

(a)	ensuring that the company keeps accounting records which comply with Sections 386 and 387 of the Companies Act 2006 and

(b)

preparing financial statements which give a true and fair view of the state of affairs of the company as at the end of each financial year and of its profit or loss for each financial year in accordance with the requirements of Sections 394 and 395 and which otherwise comply with the requirements of the Companies Act 2006 relating to financial statements, so far as applicable to the company.

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

The financial statements were approved by the Board of Directors on 13 September 2019 and were signed on its behalf by:

T R Ward - Director

Dr H Ward - Director

Called up

share

Retained

Non-distributable

Total

capital

earnings

reserve

equity

£

£

£

£

Balance at 1 January 2017

1,000,000

962,209

(67,234

)

1,894,975

Changes in equity

Total comprehensive income

-

(13,703

)

(192,633

)

(206,336

)

Balance at 31 December 2017

1,000,000

948,506

(259,867

)

1,688,639

Changes in equity

Transfer fair value movements

-

(497,155

)

497,155

-

Deferred tax transfer

-

94,459

(94,459

)

-

Total comprehensive income

-

(170,946

)

-

(170,946

)

Balance at 31 December 2018

1,000,000

374,864

142,829

1,517,693

1.	STATUTORY INFORMATION

Mountstephen Investments 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.

The presentation currency of the financial statements is the Pound Sterling (£).

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, with the exception of certain investments which are held at fair value.

Turnover

Turnover comprises the fair value of the consideration received or receivable for the rental of properties and

provision of services in the ordinary course of the company's activities. Turnover is shown net of value added tax

and other sales taxes, 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.

Rent receivable is recognised on a straight line basis over the life of the relevant lease. Rent received in advance

of the period to which it relates is recorded as deferred income within creditors.

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 directors use 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 the

income statement.

Taxation

Taxation for the year comprises current and deferred tax. Tax is recognised in the income statement, except to

the extent that it relates to items recognised in other comprehensive income or directly in equity.

Current or deferred taxation assets and liabilities are not discounted.

Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or

substantively enacted by the statement of financial position date.

Deferred tax

Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the

statement of financial position date.

Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from

those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws

that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal

of the timing difference.

Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they

will be recovered against the reversal of deferred tax liabilities or other future taxable profits.

3.	EMPLOYEES AND DIRECTORS

The average number of employees during the year was 4 (2017 - 4 ) .

4.	INVESTMENT PROPERTY

Total

£

FAIR VALUE

At 1 January 2018

and 31 December 2018

2,331,882

NET BOOK VALUE

At 31 December 2018

2,331,882

At 31 December 2017

2,331,882

5.

DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2018

2017

£

£

Trade debtors

1,253

-

Amounts owed by group undertakings

567,539

732,666

Tax

-

109

Deferred tax asset

-

94,459

568,792

827,234

6.

CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2018

2017

£

£

Bank loans and overdrafts

87,230

84,183

VAT

3,444

11,249

Other creditors

1,799

3,327

Accruals and deferred income

16,783

8,900

109,256

107,659

7.

CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR

2018

2017

£

£

Bank loans - 1-5 years

455,628

366,221

Bank loans over 5 years

837,452

1,014,287

1,293,080

1,380,508

Amounts falling due in more than five years:

Repayable by instalments

Bank loans over 5 years

837,452

1,014,287

8.	SECURED DEBTS

The following secured debts are included within creditors:

2018

2017

£

£

Bank loans

1,380,310

1,464,691

All of the company's liabilities to its banks are secured via fixed and floating charges over the assets of the

company, and its future rental income.

9.	RELATED PARTY DISCLOSURES

Amounts owed by the company's parent Chellbrook Properties Limited totalled £567,539 (2017:£732,666). The

loan is not subject to a fixed repayment date or interest. The company's parent Chellbrook Properties Limited has

provided an unlimited guarantee on behalf of the company to Svenska Handelsbanken and this has been

reciprocated by the company in respect of loans taken by Chellbrook Properties Limited.

Parent company

The parent of the smallest group of which Mountstephen Investments Limited is a member which prepares

consolidated accounts is Chellbrook Properties Limited, a company registered at 16 St. Philips Road, Surbiton,

Surrey, KT6 4DX. Copies of its accounts are available from Companies House.