Staton Young (Litchurch) Limited - Period Ending 2019-05-31

Registration number: 10204908

Staton Young (Litchurch) Limited

Annual Report and Unaudited Financial Statements

for the Year Ended 31 May 2019

Staton Young (Litchurch) Limited

Contents

Company Information	1
Accountants' Report	2
Balance Sheet	3 to 4
Notes to the Financial Statements	5 to 9

Staton Young (Litchurch) Limited

Company Information

Directors

M L Brough R L Brough

Registered office

Derwent Business Centre Clarke Street Derby DE1 2BU

Accountants

Ashgates Corporate Services Limited 5 Prospect Place Millennium Way Pride Park Derby DE24 8HG

Page 1

Chartered Certified Accountants' Report to the Board of Directors on the Preparation of the Unaudited Statutory Accounts of
Staton Young (Litchurch) Limited
for the Year Ended 31 May 2019

In order to assist you to fulfil your duties under the Companies Act 2006, we have prepared for your approval the accounts of Staton Young (Litchurch) Limited for the year ended 31 May 2019 as set out on pages 3 to 9 from the company's accounting records and from information and explanations you have given us.

As a practising member firm of the Association of Chartered Certified Accountants, we are subject to its ethical and other professional requirements which are detailed at http://www.accaglobal.com/en/
member/professional-standards/rules-standards/acca-rulebook.html.

This report is made solely to the Board of Directors of Staton Young (Litchurch) Limited, as a body, in accordance with the terms of our engagement letter. Our work has been undertaken solely to prepare for your approval the accounts of Staton Young (Litchurch) Limited and state those matters that we have agreed to state to the Board of Directors of Staton Young (Litchurch) Limited, as a body, in this report in accordance with the requirements of the Association of Chartered Certified Accountants as detailed at http://www.accaglobal.com/content/dam/ACCA_Global/Technical/fact/technical-factsheet-
163.pdf. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than Staton Young (Litchurch) Limited and its Board of Directors as a body for our work or for this report.

It is your duty to ensure that Staton Young (Litchurch) Limited has kept adequate accounting records and to prepare statutory accounts that give a true and fair view of the assets, liabilities, financial position and profit of Staton Young (Litchurch) Limited. You consider that Staton Young (Litchurch) Limited is exempt from the statutory audit requirement for the year.

We have not been instructed to carry out an audit or a review of the accounts of Staton Young (Litchurch) Limited. For this reason, we have not verified the accuracy or completeness of the accounting records or information and explanations you have given to us and we do not, therefore, express any opinion on the statutory accounts.

Ashgates Corporate Services Limited
5 Prospect Place
Millennium Way
Pride Park
Derby
DE24 8HG

23 February 2020

Page 2

Staton Young (Litchurch) Limited

(Registration number: 10204908)
Balance Sheet as at 31 May 2019

	Note	2019 £	2018 £
Fixed assets
Investment property	4	1,340,000	1,184,185
Current assets
Debtors	5	17,740	74,141
Cash at bank and in hand		37,484	27,234
		55,224	101,375
Creditors: Amounts falling due within one year	6	(431,957)	(614,025)
Net current liabilities		(376,733)	(512,650)
Total assets less current liabilities		963,267	671,535
Creditors: Amounts falling due after more than one year	6	(474,375)	(503,125)
Provisions for liabilities		(33,886)	(14,743)
Net assets		455,006	153,667
Capital and reserves
Called up share capital	8	100	100
Fair value reserve		136,785	-
Profit and loss account		318,121	153,567
Total equity		455,006	153,667

The notes on pages 5 to 9 form an integral part of these financial statements.

Page 3

Staton Young (Litchurch) Limited

(Registration number: 10204908)
Balance Sheet as at 31 May 2019

For the financial year ending 31 May 2019 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 year 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 and 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 23 February 2020 and signed on its behalf by:
 

 

M L Brough
Director

The notes on pages 5 to 9 form an integral part of these financial statements.

Page 4

Staton Young (Litchurch) Limited

Notes to the Financial Statements for the Year Ended 31 May 2019

1	General information

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

The address of the registered office is given in the company information on page 1 of the financial statements.

The principal place of business is:
Litchurch Plaza
Litchurch Lane
Derby
DE24 8AA

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.

The financial statements are presented in Sterling (£) and rounded to the nearest £1.

Going concern

The financial statements have been prepared on a going concern basis.

Page 5

Staton Young (Litchurch) Limited

Notes to the Financial Statements for the Year Ended 31 May 2019

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 considered to be relevant. Actual results may differ from these estimates.

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

The estimates and assumptions which have risk of causing material adjustment to the carrying amount of assets and liabilities are set out below:

Valuation of investment properties
These valuations rely on a number of estimations and assumptions being made in relation to market conditions and developments.

Revenue recognition

Turnover represents the total invoice value, excluding value added tax, of sales made during the year. Rental and service income is recognised based on the period the charge relates to.

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.

Investment property

Investment property is carried at fair value, derived from the current market prices for comparable real estate determined annually by the directors and in conjunction with work carried out by external valuers. The valuers 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 profit or loss.

Page 6

Staton Young (Litchurch) Limited

Notes to the Financial Statements for the Year Ended 31 May 2019

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.

3	Staff numbers

The average number of persons employed by the company (including directors) during the year, was 4 (2018 - 4).

4	Investment properties

	2019 £
At 1 June	1,184,185
Fair value adjustments	155,815
At 31 May 2019	1,340,000

The fair values of the investment properties were reviewed by the directors at 31 May 2019. The fair values have been determined by carrying out a review of the property and investment yields in the area. The properties were valued at £1,340,000. The directors valuations are further supported by independent valuations carried out on investment properties on 6 December 2019. The valuations were carried out in accordance with RICS and have been considered by the directors in establishing their fair values as at 31 May 2019

5

Debtors

	Note	2019 £	2018 £
Trade debtors		2,334	100
Amounts owed by group undertakings	10	-	59,130
Other debtors		15,406	14,911
		17,740	74,141

Page 7

Staton Young (Litchurch) Limited

Notes to the Financial Statements for the Year Ended 31 May 2019

6

Creditors

Creditors: amounts falling due within one year

	Note	2019 £	2018 £
Due within one year
Loans and borrowings	7	28,750	28,750
Trade creditors		17,142	22,530
Amounts owed to group undertakings	10	309,600	521,071
Taxation and social security		45,417	25,752
Other creditors		31,048	15,922
		431,957	614,025
Due after one year
Loans and borrowings	7	474,375	503,125

7	Loans and borrowings

	2019 £	2018 £
Current loans and borrowings
Bank borrowings	28,750	28,750

	2019 £	2018 £
Non-current loans and borrowings
Bank borrowings	474,375	503,125

Secured borrowings

Liabilities in respect of bank borrowings are secured by a first legal charge over the company's properties, a debenture over the company's whole assets and undertaking and an unlimited inter company composite guarantee between the company and it's related companies. The carrying amounts at the year end were £503,125 (2018 - £531,875).

8	Share capital

Allotted, called up and fully paid shares

	2019		2018
	No.	£	No.	£
Ordinary shares of £1 each	100	100	100	100

Page 8

Staton Young (Litchurch) Limited

Notes to the Financial Statements for the Year Ended 31 May 2019

9	Financial commitments, guarantees and contingencies

Amounts not provided for in the balance sheet

The total amount of financial commitments in respect of operating leases not included in the balance sheet is £2,500 (2018 - £2,500).

The company has entered into cross guarantees and debentures with its bankers to secure the liabilities of other related companies. The contingent liability as at 31 May 2019 is £4,573,093 (2018 - £5,103,722). The future outcome is dependent on the performance of individual companies concerned. However the directors do not expect any liability to crystallise.

10	Related party transactions

Transactions with directors During the period the following advances were made to directors:

2019	At 1 June 2018 £	Advances to directors £	Repayments by director £	At 31 May 2019 £
Interest free loan repayable on demand	-	(32,533)	32,533	-

2018	At 1 June 2017 £	Advances to directors £	Repayments by director £	At 31 May 2018 £
Interest free loan repayable on demand	-	(12,859)	12,859	-

Summary of transactions with other related parties

The company has taken advantage of the exemption under FRS102 Section 1A in respect of disclosing transactions with other members of the group.
 

Page 9