Rags Properties Limited - Period Ending 2019-03-30

Registration number: 09530079

Rags Properties Limited

Annual Report and Unaudited Financial Statements

for the Period from 1 April 2018 to 30 March 2019

Rags Properties Limited

Contents

Company Information	1
Balance Sheet	2
Notes to the Financial Statements	3 to 7

Rags Properties Limited

Company Information

Directors

Mr S B Bass Mr G D Ward Mr A W Price

Registered office

Whitehall Waterfront 2 Riverside Way Leeds West Yorkshire LS1 4EH

Page 1

Rags Properties Limited

(Registration number: 09530079)
Balance Sheet as at 30 March 2019

	Note	2019 £	2018 £
Fixed assets
Investment property	4	1,203,800	1,225,000
Current assets
Debtors	5	105,122	34,812
Creditors: Amounts falling due within one year	6	(97,328)	(97,066)
Net current assets/(liabilities)		7,794	(62,254)
Total assets less current liabilities		1,211,594	1,162,746
Creditors: Amounts falling due after more than one year	6	(717,627)	(752,783)
Provisions for liabilities - deferred tax		(44,824)	(49,516)
Net assets		449,143	360,447
Capital and reserves
Called up and fully paid share capital		4	4
Profit and loss account		449,139	360,443
Total equity		449,143	360,447

For the financial period ending 30 March 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 period 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 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 11 March 2020 and signed on its behalf by:
 

......................................... Mr G D Ward Director

The notes on pages 3 to 7 form an integral part of these financial statements.

Page 2

Rags Properties Limited

Notes to the Financial Statements for the Period from 1 April 2018 to 30 March 2019

1	General information

The Company is a private company limited by share capital incorporated in England and Wales. Details of the registered office are shown on page 1.

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.

Basis of preparation

These financial statements have been prepared on a going concern basis, using the historical cost convention and in accordance with FRS 102 Section 1A 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' and the Companies Act 2006.

Revenue recognition

Turnover comprises the market value of rents received or receivable for the provision of tenancy in the ordinary course of the company’s activities. Rents receivable is shown net of value added tax.

The company recognises rental income over the term of the lease on a straight line basis.

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.

Current income tax is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the reporting date.

Deferred tax is recognised on timing differences between taxable profits and profits reported in the financial statements. Deferred tax is recognised on all timing differences at the reporting date and is determined using tax rates and laws that have been enacted or substantively enacted by the reporting date.

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.

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 profit or loss.

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Rags Properties Limited

Notes to the Financial Statements for the Period from 1 April 2018 to 30 March 2019

2	Accounting policies (continued)

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 tenants in relation to unpaid rents.

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. Trade creditors are recognised initially at the transaction price and subsequently measured at amortised cost using the effective interest method.

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 profit or loss 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

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.

Dividends

Dividend distribution to the Company’s shareholders is recognised in the financial statements in the reporting period in which the dividends are paid.

Financial instruments

Financial instruments are classified and accounted for as financial assets, financial liabilities or equity instruments, according to the substance of the contractual arrangement. Equity instruments are those that entitle the holder to a residual interest in the Company's assets after deducting all of its liabilities.

Basic financial instruments are recognised at amortised cost, except for investments in non-convertible preference and non-puttable ordinary and preference shares, which are measured at fair value provided that this can be measured reliably. Derivative financial instruments are initially recorded at cost and thereafter at fair value with changes recognised in profit or loss.

Page 4

Rags Properties Limited

Notes to the Financial Statements for the Period from 1 April 2018 to 30 March 2019

3	Staff numbers

The average number of persons employed by the company (including directors) in the period, was 3 (2018 - 3).

4	Investment properties

	2019 £
At 1 April 2017 and 31 March 2018	1,225,000
Disposals	(15,000)
Fair value adjustments	(6,200)
At 30 March 2019	1,203,800

The fair value of the company's Investment Property was revalued on 16th July 2018 by an independent valuer. The name of the independent valuer was Knight Frank who valued the property at a Market Value of £1,203,800.

Had the class of asset been measured on a historical cost basis, the cost and carrying amount would have been £928,326 (2018 - £943,326).

5

Debtors

	2019 £	2018 £
Trade debtors	8,840	34,807
Other debtors	96,282	5
	105,122	34,812

Page 5

Rags Properties Limited

Notes to the Financial Statements for the Period from 1 April 2018 to 30 March 2019

6

Creditors

	Note	2019 £	2018 £
Due within one year
Loans and borrowings	7	58,300	58,300
Trade creditors		780	13,782
Taxation and social security		2,240	7,496
Other creditors		36,008	17,488
		97,328	97,066
Due after one year
Loans and borrowings	7	717,627	752,783

7	Loans and borrowings

	2019 £	2018 £
Current loans and borrowings
Bank borrowings	58,300	58,300

	2019 £	2018 £
Non-current loans and borrowings
Bank borrowings	717,627	752,783

Bank borrowings are secured by way of a legal charge over the investment property together with a personal guarantee totalling £165,000 from the directors.

Included in the loans and borrowings are amounts due after more than five years by instalments of £484,427 (2018 - £519,838).

Page 6

Rags Properties Limited

Notes to the Financial Statements for the Period from 1 April 2018 to 30 March 2019

8	Related party transactions

Milners Solicitors
(Business under common control)
During the year the Company received rental income from Milners Solicitors of £100,883 (2018 - £99,068).

At the balance sheet date the amount due from Milners Solicitors was £38,502 (2018 - £25,288).

Mr S B Bass
(Director and shareholder)
At the balance sheet date the amount due from Mr S B Bass was £1 (2018 - £1).

Mr G D Ward
(Director and shareholder)
At the balance sheet date the amount due from Mr G D Ward was £1 (2018 - £1).

Mr A W Price
(Director and shareholder)
At the balance sheet date the amount due from Mr A W Price was £49,976 (2018 - £1).

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