Glen House Estates Limited - Accounts to registrar (filleted) - small 18.2

REGISTERED NUMBER: 00728574 (England and Wales)

Glen House Estates Limited

Audited Financial Statements for the Year Ended 30th September 2019

Page

Company Information

1

Balance Sheet

2

Notes to the Financial Statements

4

DIRECTORS:

G F C Mellstrom FCA

B R Mellstrom LLB

S C Mellstrom MRICS

SECRETARY:

W Munday

REGISTERED OFFICE:

Glen House

Glen Road

Grayshott

Hindhead

Surrey

GU26 6NF

REGISTERED NUMBER:

00728574 (England and Wales)

AUDITORS:

Sheen Stickland

Chartered Accountants

Statutory Auditors

4 High Street

Alton

Hampshire

GU34 1BU

FIXED ASSETS

Tangible assets

4

795,291

721,126

Investments

5

2,833

2,833

Investment property

6

100,100,681

95,995,000

100,898,805

96,718,959

CURRENT ASSETS

Debtors

7

1,489,283

1,304,148

Cash at bank and in hand

4,827,703

2,129,881

6,316,986

3,434,029

CREDITORS

Amounts falling due within one year

8

4,820,668

25,295,869

NET CURRENT ASSETS/(LIABILITIES)

1,496,318

(21,861,840

)

TOTAL ASSETS LESS CURRENT LIABILITIES

102,395,123

74,857,119

CREDITORS

Amounts falling due after more than one year

9

(45,358,250

)

(23,509,464

)

PROVISIONS FOR LIABILITIES

11

(1,762,254

)

(1,724,557

)

NET ASSETS

55,274,619

49,623,098

CAPITAL AND RESERVES

Called up share capital

12

2,004

2,004

Fair value reserve

13

32,854,173

29,640,271

Capital redemption reserve

13

230,372

230,372

Other reserves

13

789,083

789,083

Retained earnings

13

21,398,987

18,961,368

SHAREHOLDERS' FUNDS

55,274,619

49,623,098

The financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime.

In accordance with Section 444 of the Companies Act 2006, the Income Statement has not been delivered.

The financial statements were approved by the Board of Directors on 20th December 2019 and were signed on its behalf by:

G F C Mellstrom FCA - Director

B R Mellstrom LLB - Director

1.	STATEMENT OF COMPLIANCE

Glen House Estates Limited is a company limited by shares and is incorporated in England and

Wales, registration number 00728574. The registered office is Glen House, Glen Road, Grayshott,

Hindhead, Surrey GU26 6NF.

The financial statements are presented in sterling which is the functional currency of the company

and rounded to the nearest pound. The significant accounting policies applied in the preparation of

these financial statements are set out below. These policies have been consistently applied to all

years unless otherwise stated.

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" and the Companies

Act 2006. The financial statements have been prepared under historical cost convention as modified

by the revaluation of certain assets.

Preparation of consolidated financial statements

The financial statements contain information about Glen House 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.

Critical accounting judgements and key sources of estimation uncertainty

Estimates and judgements are continually evaluated and are based on historical experience and

other factors, including expectations of future events that are believed to be reasonable under the

circumstances. Estimates and underlying assumptions are reviewed on an ongoing basis.

(a) Provisions against receivables

Using information available up to the date the financial statements have been approved, the

Directors make judgments based on experience regarding the level of provision required to account

for potentially uncollectible receivables.

(b) Useful life of fixed assets

Tangible assets are depreciated over their useful lives taking into account residual values, where

appropriate.The useful lives of these assets are estimated based on historic experience and future

considerations and these are re-assessed annually.

(c) Valuation of Investment Properties

Investment properties are generally held at the most recent valuation. Where there has been no

formal valuation carried out at the balance sheet date, the directors will review the current stated

values to ensure they appear reasonable. If required the valuation of investment properties would

be held at management valuations, based on their knowledge of the market.

Turnover

Turnover represents the total rents receivable under operating leases for the year. Rents are

included net of VAT on properties where the option to tax has been exercised.

Tangible fixed assets

Freehold land and buildings are shown at the most recent valuation. Any aggregate surplus or deficit

arising from changes in market values is transferred to a revaluation reserve.

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

useful life.

Land and buildings - 2% on cost

Plant & machinery etc - 25% on reducing balance

Investment property

Investment property is shown at most recent valuation. Any aggregate surplus or deficit arising from

changes in fair value is recognised in the Profit and Loss.

Investment properties purchased in the year are stated at cost including stamp duty and other

purchase costs.

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 balance sheet date.

Deferred tax

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

at the balance sheet 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.

Deferred tax on the revaluation of investment properties is recognised in the Profit and Loss.

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.

Pensions

The company pays into private defined contribution pension scheme on behalf of the company's

employees. Contributions payable for the year are charged in the profit and loss account. A defined

contribution pension scheme is a pension scheme under which the company pays fixed

contributions into a separate entity.

Fixed asset investments

Unlisted investments are stated at cost less any provision for impairment.

Financial instruments

Financial assets and financial liabilities are recognised when Glen House becomes party to the

contractual provisions of the financial instrument.

Cash and cash equivalents

These comprise cash at bank.

Debtors

Debtors are stated at their nominal value and where balances become overdue interest is charged.

Appropriate allowances for estimated irrecoverable amounts are recognised in the Profit and Loss

account when there is objective evidence that the asset is impaired.

Creditors

Creditors are stated at their nominal value, the only creditors which are interest bearing relate to

the bank loans.

Hire purchase and leasing commitments

Rentals paid under operating leases are charged to profit or loss on a straight line basis over the

period of the lease.

No lease incentives have been received on any of the operating leases currently in place.

3.	EMPLOYEES AND DIRECTORS

The average number of employees during the year was 10 (2018 - 11 ) .

4.	TANGIBLE FIXED ASSETS

Plant and

Land and

machinery

buildings

etc

Totals

£

£

£

COST OR VALUATION

At 1st October 2018

715,000

98,718

813,718

Additions

-

100,928

100,928

At 30th September 2019

715,000

199,646

914,646

DEPRECIATION

At 1st October 2018

-

92,592

92,592

Charge for year

-

26,763

26,763

At 30th September 2019

-

119,355

119,355

NET BOOK VALUE

At 30th September 2019

715,000

80,291

795,291

At 30th September 2018

715,000

6,126

721,126

Freehold land and buildings is held at the most recent valuation.

No depreciation is charged in respect of the freehold buildings as the directors consider that any

depreciation charge would be immaterial, as permitted by Financial Reporting Standard 102 in such

circumstances.This depreciation is considered immaterial as the residual value of the property is not

materially different from the carrying value.

Repairs and maintenance costs incurred on the general up keep of the property are charged to the

profit and loss account in the year in which they are incurred. An annual impairment review is

conducted.

The initial cost of freehold land and buildings was £471,000.

Cost or valuation at 30th September 2019 is represented by:

Land and Buildings

Plant and machinery etc

Totals

£

£

£

Valuation b/f

244,000

-

244,000

Cost

471,000

199,646

670,646

715,000

199,646

914,646

5.	FIXED ASSET INVESTMENTS

Shares in

group

undertakings

£

COST

At 1st October 2018

and 30th September 2019

2,833

NET BOOK VALUE

At 30th September 2019

2,833

At 30th September 2018

2,833

6.	INVESTMENT PROPERTY

Total

£

FAIR VALUE

At 1st October 2018

95,995,000

Additions

854,082

Revaluations

3,251,599

At 30th September 2019

100,100,681

NET BOOK VALUE

At 30th September 2019

100,100,681

At 30th September 2018

95,995,000

All of the land and buildings are held for use in operating leases.

Fair Value at 30th September 2019 is represented by:

£

Valuation b/f

21,560,938

Valuation 2017

4,649,014

Valuation 2018

4.690.889

Valuation 2019

3,251,599

Cost

65,948,241

100,100,681

If investment properties had not been revalued they would have been included at the following

historical cost:

2019

2018

£

£

Cost

65,948,241

65,094,159

Portfolios of properties were independently valued on an open market basis by Cushman &

Wakefield , Chartered Surveyors in March 2019.

One of the properties is held at the fair value as estimated by the directors, based on their

knowledge of the market.

7.

DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2019

2018

£

£

Trade debtors

1,177,181

1,094,950

Other debtors

312,102

209,198

1,489,283

1,304,148

8.

CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2019

2018

£

£

Bank loans and overdrafts

750,000

21,630,000

Trade creditors

394,602

323,344

Amounts owed to group undertakings

272,291

272,291

Taxation and social security

811,538

573,813

Other creditors

2,592,237

2,496,421

4,820,668

25,295,869

Bank loans due within one year in 2018 includes £20,880,000 loan that was due to be repaid by 23rd

June 2019, this loan was refinanced during the year and is now repayable in September 2023.

9.

CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR

2019

2018

£

£

Bank loans

45,358,250

23,509,464

10.	SECURED DEBTS

The following secured debts are included within creditors:

2019

2018

£

£

Bank loans

46,108,250

45,139,464

The loans and overdrafts are secured by charges on the company's investment properties.

Bank loans bear interest at varying rates above LIBOR. Of the total loans outstanding at the balance

sheet date, £20,880,000 matures in 2023 and £25,228,250 in 2020.

The loan of £25,228,250 is repayable in quarterly instalments until the maturity date of October

2020 when the remaining balance is repayable.The directors expect this loan to be renewed in 2020.

The loan of £20,880,000 is repayable in full on the maturity date, September 2023, with an

extension option of 1 year.

11.	PROVISIONS FOR LIABILITIES

2019

2018

£

£

Deferred tax

1,762,254

1,724,557

Deferred

tax

£

Balance at 1st October 2018

1,724,557

Revalued investment properties

37,697

Balance at 30th September 2019

1,762,254

The movement in deferred tax on the revaluation of investment properties has been transferred to

the fair value reserve.

12.	CALLED UP SHARE CAPITAL

Allotted, issued and fully paid:

Number:

Class:

Nominal

2019

2018

value:

£

£

2,004

Ordinary

£1

2,004

2,004

13.

RESERVES

Fair

Capital

Retained

value

redemption

Other

earnings

reserve

reserve

reserves

Totals

£

£

£

£

£

At 1st October 2018

18,961,368

29,640,271

230,372

789,083

49,621,094

Profit for the year

6,390,181

6,390,181

Dividends

(738,660

)

(738,660

)

Fair Value Transfer

(3,213,902

)

3,213,902

-

-

-

At 30th September 2019

21,398,987

32,854,173

230,372

789,083

55,272,615

A transfer is processed to reallocate the movement in the revaluation and deferred tax of

investment properties to the fair value reserve.

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

The Report of the Auditors was unqualified.

David Sanders FCA (Senior Statutory Auditor)

for and on behalf of Sheen Stickland

15.	CAPITAL COMMITMENTS

At the balance sheet date the company had capital commitments under contracts of £62,915 (2018:

£343,856).

16.	OTHER FINANCIAL COMMITMENTS

The companies minimum operating lease commitments as at 30th September 2019 were £9,749

(2018: £8,543).

17.	RELATED PARTY DISCLOSURES

A director of the company owes the company £nil (2018: £17,280), this balance was written off

during the year.