| Magnolia Capital Limited |
| Notes to the Accounts |
| for the year ended 30 September 2019 |
|
|
| 1 |
Accounting policies |
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Basis of preparation |
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The accounts have been prepared under the historical cost convention and in accordance with FRS 102, The Financial Reporting Standard applicable in the UK and Republic of Ireland (as applied to small entities by section 1A of the standard). |
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Turnover |
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Turnover is measured at the fair value of the consideration received or receivable, net of discounts and value added taxes. Turnover includes revenue earned from the sale of goods and from the rendering of services. Turnover from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have transferred to the buyer. Turnover from the rendering of services is recognised by reference to the stage of completion of the contract. The stage of completion of a contract is measured by comparing the costs incurred for work performed to date to the total estimated contract costs. |
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Investments |
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Investments in subsidiaries, associates and joint ventures are measured at cost less any accumulated impairment losses. Listed investments are measured at fair value. Unlisted investments are measured at fair value unless the value cannot be measured reliably, in which case they are measured at cost less any accumulated impairment losses. Changes in fair value are included in the profit and loss account. |
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Debtors |
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Short term debtors are measured at transaction price (which is usually the invoice price), less any impairment losses for bad and doubtful debts. Loans and other financial assets are initially recognised at transaction price including any transaction costs and subsequently measured at amortised cost determined using the effective interest method, less any impairment losses for bad and doubtful debts. |
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Creditors |
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Short term creditors are measured at transaction price (which is usually the invoice price). Loans and other financial liabilities are initially recognised at transaction price net of any transaction costs and subsequently measured at amortised cost determined using the effective interest method. |
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Taxation |
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A current tax liability is recognised for the tax payable on the taxable profit of the current and past periods. A current tax asset is recognised in respect of a tax loss that can be carried back to recover tax paid in a previous period. Deferred tax is recognised in respect of all timing differences between the recognition of income and expenses in the financial statements and their inclusion in tax assessments. 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. 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, except for revalued land and investment property where the tax rate that applies to the sale of the asset is used. Current and deferred tax assets and liabilities are not discounted. |
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Provisions |
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Provisions (ie liabilities of uncertain timing or amount) are recognised when there is an obligation at the reporting date as a result of a past event, it is probable that economic benefit will be transferred to settle the obligation and the amount of the obligation can be estimated reliably. |
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|
| 2 |
Investments |
|
| Other |
| investments |
| £ |
|
Cost |
|
At 1 October 2018 |
1,243,978 |
|
Additions |
238,750 |
|
|
At 30 September 2019 |
1,482,728 |
|
|
|
| 3 |
Debtors |
2019 |
|
2018 |
| £ |
£ |
|
|
Amounts owed by group undertakings and undertakings in which the company has a participating interest |
|
21,079 |
|
- |
|
Tax recoverable |
|
|
|
|
- |
|
9,810 |
|
Other debtors |
1,234,413 |
|
1,338,403 |
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|
|
|
|
1,255,492 |
|
1,348,213 |
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Debtors includes £780,000 due after more than one year. This amount is due as follows, with prior year comparative: |
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2019 |
|
2018 |
| £ |
£ |
|
Jonathan Horner (Father of Rupert Horner) |
300,000 |
|
300,000 |
|
Jennifer Horner (Mother of Rupert Horner) |
480,000 |
|
480,000 |
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These long term loans have been agreed wiith HMRC as loans that qualify for the exemption pursuant to S455 & S456 of CTA 2010. |
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Other debtors also include the following loans |
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|
2019 |
|
2018 |
| £ |
£ |
|
Chorlton Trust Limited |
- |
|
50,000 |
|
Lunas SA |
208,907 |
|
208,907 |
|
|
The directors of Chorlton Trust Limited are Jonathan and Jennifer Horner. Magnolia Capital owns 22% of Luna SA. Neither of these two loans are relevant loans in respect of S455 CTA 2010. |
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| 4 |
Creditors: amounts falling due within one year |
2019 |
|
2018 |
| £ |
£ |
|
|
Amounts owed to related companies |
|
308,903 |
|
407,928 |
|
Taxation and social security costs |
1,641 |
|
- |
|
Directors loan account |
196 |
|
6,668 |
|
Accruals |
23,090 |
|
22,506 |
|
|
|
|
|
|
333,830 |
|
437,102 |
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| 5 |
Related party transactions |
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The only related party transactions are the loans which are described in note 3 of these accounts. |
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| 6 |
Controlling party |
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The company is controlled by Mrs Horner, who own 71% of the issued shares. |
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| 7 |
Other information |
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Magnolia Capital Limited is a private company limited by shares and incorporated in England. Its registered office is: |
|
The Georgian House |
|
Nizels Lane |
|
Hildenborough |
|
Kent |
|
TN11 8NW |
