Station Road Properties (St Neots) Ltd - Limited company accounts 20.1

REGISTERED NUMBER: 00937578 (England and Wales)

Report of the Directors and

Financial Statements for the Year Ended 31 December 2019

for

Station Road Properties (St Neots)

Limited

Page

Company Information

1

Report of the Directors

2

Report of the Independent Auditors

4

Statement of Comprehensive Income

7

Balance Sheet

8

Statement of Changes in Equity

9

Cash Flow Statement

10

Notes to the Cash Flow Statement

11

Notes to the Financial Statements

12

DIRECTORS:

G M Dale

J J M Ham

SECRETARY:

J J M Ham

REGISTERED OFFICE:

Brigham House

93 High Street

Biggleswade

Bedfordshire

SG18 0LD

REGISTERED NUMBER:

00937578 (England and Wales)

AUDITORS:

George Hay Partnership LLP

Chartered Accountants

and Statutory Auditor

Unit 1B

Focus 4

Fourth Avenue

Letchworth

Hertfordshire

SG6 2TU

The directors present their report with the financial statements of the company for the year ended 31 December 2019.

PRINCIPAL ACTIVITY

The principal activity of the company was that of property rental.

DIRECTORS

The directors shown below have held office during the whole of the period from 1 January 2019 to the date of this

report.

G M Dale

J J M Ham

FINANCIAL INSTRUMENTS

The financial risk management objectives are to ensure sufficient working capital for the company. This is

achieved by careful management of cash balances and, where necessary, the use of bank overdraft facilities.

STATEMENT OF DIRECTORS' RESPONSIBILITIES

The directors are responsible for preparing the Report of the Directors and the financial statements in accordance

with applicable law and regulations.

Company law requires the directors to prepare financial statements for each financial year. Under that law the

directors have elected to prepare the financial statements in accordance with United Kingdom Generally

Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law

the directors must not approve the financial statements unless they are satisfied that they give a true and fair view

of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these

financial statements, the directors are required to:

-	select suitable accounting policies and then apply them consistently;

-	make judgements and accounting estimates that are reasonable and prudent;

-	prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the

company's transactions and disclose with reasonable accuracy at any time the financial position of the company

and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also

responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention

and detection of fraud and other irregularities.

STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS

So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the

Companies Act 2006) of which the company's auditors are unaware, and each director has taken all the steps

that he ought to have taken as a director in order to make himself aware of any relevant audit information and to

establish that the company's auditors are aware of that information.

AUDITORS

The auditors, George Hay Partnership LLP, will be proposed for re-appointment at the forthcoming Annual

General Meeting.

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:

G M Dale - Director

7 April 2020

Opinion

We have audited the financial statements of Station Road Properties (St Neots) Limited (the 'company') for the

year ended 31 December 2019 which comprise the Statement of Comprehensive Income, Balance Sheet,

Statement of Changes in Equity, Cash Flow Statement and Notes to the Cash Flow Statement, Notes to the

Financial Statements, including a summary of significant accounting policies. The financial reporting framework

that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including

Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'

(United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

-	give a true and fair view of the state of the company's affairs as at 31 December 2019 and of its profit for the year then ended;

-	have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and

-	have been prepared in accordance with the requirements of the Companies Act 2006.

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable

law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit

of the financial statements section of our report. We are independent of the company in accordance with the

ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC's

Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our

opinion.

Conclusions relating to going concern

We have nothing to report in respect of the following matters in relation to which the ISAs (UK) require us to

report to you where:

-	the directors' use of the going concern basis of accounting in the preparation of the financial statements is not appropriate; or

-

the directors have not disclosed in the financial statements any identified material uncertainties that may cast significant doubt about the company's ability to continue to adopt the going concern basis of accounting for a period of at least twelve months from the date when the financial statements are authorised for issue.

Other information

The directors are responsible for the other information. The other information comprises the information in the

Report of the Directors, but does not include the financial statements and our Report of the Auditors thereon.

Our opinion on the financial statements does not cover the other information and, except to the extent otherwise

explicitly stated in our report, we do not express any form of assurance conclusion thereon.

In connection with our audit of the financial statements, our responsibility is to read the other information and, in

doing so, consider whether the other information is materially inconsistent with the financial statements or our

knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material

inconsistencies or apparent material misstatements, we are required to determine whether there is a material

misstatement in the financial statements or a material misstatement of the other information. If, based on the

work we have performed, we conclude that there is a material misstatement of this other information, we are

required to report that fact. We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of the audit:

-	the information given in the Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and

-	the Report of the Directors has been prepared in accordance with applicable legal requirements.

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the company and its environment obtained in the course of the

audit, we have not identified material misstatements in the Report of the Directors.

We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report

to you if, in our opinion:

-	adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or

-	the financial statements are not in agreement with the accounting records and returns; or

-	certain disclosures of directors' remuneration specified by law are not made; or

-	we have not received all the information and explanations we require for our audit; or

-	the directors were not entitled to take advantage of the small companies' exemption from the requirement to prepare a Strategic Report or in preparing the Report of the Directors.

Responsibilities of directors

As explained more fully in the Statement of Directors' Responsibilities set out on page two, the directors are

responsible for the preparation of the financial statements and for being satisfied that they give a true and fair

view, and for such internal control as the directors determine necessary to enable the preparation of financial

statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the directors are responsible for assessing the company's ability to continue

as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis

of accounting unless the directors either intend to liquidate the company or to cease operations, or have no

realistic alternative but to do so.

Auditors' responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free

from material misstatement, whether due to fraud or error, and to issue a Report of the Auditors that includes our

opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in

accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise

from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be

expected to influence the economic decisions of users taken on the basis of these financial statements.

A further description of our responsibilities for the audit of the financial statements is located on the Financial

Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report

of the Auditors.

Use of our report

This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the

Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members

those matters we are required to state to them in a Report of the Auditors and for no other purpose. To the fullest

extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the

company's members as a body, for our audit work, for this report, or for the opinions we have formed.

M Williams ACA FCCA (Senior Statutory Auditor)

for and on behalf of George Hay Partnership LLP

Chartered Accountants

and Statutory Auditor

Unit 1B

Focus 4

Fourth Avenue

Letchworth

Hertfordshire

SG6 2TU

7 April 2020

TURNOVER

3

275,000

275,000

Administrative expenses

31,734

56,546

243,266

218,454

Other operating income

4,205

-

OPERATING PROFIT

5

247,471

218,454

Interest payable and similar expenses

6

107

-

PROFIT BEFORE TAXATION

247,364

218,454

Tax on profit

7

49,309

19,785

PROFIT FOR THE FINANCIAL YEAR

198,055

198,669

OTHER COMPREHENSIVE INCOME

-

-

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

198,055

198,669

FIXED ASSETS

Tangible assets

8

3,118,364

3,050,000

CURRENT ASSETS

Debtors

9

85,305

82,500

Cash at bank

1,235,519

1,083,611

1,320,824

1,166,111

CREDITORS

Amounts falling due within one year

10

126,489

111,498

NET CURRENT ASSETS

1,194,335

1,054,613

TOTAL ASSETS LESS CURRENT LIABILITIES

4,312,699

4,104,613

PROVISIONS FOR LIABILITIES

12

12,531

2,500

NET ASSETS

4,300,168

4,102,113

CAPITAL AND RESERVES

Called up share capital

13

1,000

1,000

Other reserves

14

2,155,538

2,155,538

Capital reserves

14

6,056

6,056

Retained earnings

14

2,137,574

1,939,519

SHAREHOLDERS' FUNDS

4,300,168

4,102,113

The financial statements were approved by the Board of Directors and authorised for issue on 7 April 2020 and were signed on its behalf by:

G M Dale - Director

Called up

share

Retained

Other

Capital

Total

capital

earnings

reserves

reserves

equity

£

£

£

£

£

Balance at 1 January 2018

1,000

1,740,850

2,155,538

6,056

3,903,444

Changes in equity

Total comprehensive income

-

198,669

-

-

198,669

Balance at 31 December 2018

1,000

1,939,519

2,155,538

6,056

4,102,113

Changes in equity

Total comprehensive income

-

198,055

-

-

198,055

Balance at 31 December 2019

1,000

2,137,574

2,155,538

6,056

4,300,168

Cash flows from operating activities

Cash generated from operations

1

247,370

45,979

Interest paid

(107

)

-

Tax paid

(23,393

)

-

Net cash from operating activities

223,870

45,979

Cash flows from investing activities

Purchase of tangible fixed assets

(71,962

)

-

Net cash from investing activities

(71,962

)

-

Cash flows from financing activities

Amounts to / from group undertakings

-

(43,427

)

Net cash from financing activities

-

(43,427

)

Increase in cash and cash equivalents

151,908

2,552

Cash and cash equivalents at beginning of year

2

1,083,611

1,081,059

Cash and cash equivalents at end of year

2

1,235,519

1,083,611

1.	RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS

2019

2018

£

£

Profit before taxation

247,364

218,454

Depreciation charges

3,598

-

Finance costs

107

-

251,069

218,454

(Increase)/decrease in trade and other debtors

(2,805

)

25,933

Decrease in trade and other creditors

(894

)

(198,408

)

Cash generated from operations

247,370

45,979

2.	CASH AND CASH EQUIVALENTS

The amounts disclosed on the Cash Flow Statement in respect of cash and cash equivalents are in

respect of these Balance Sheet amounts:

Year ended 31 December 2019

31.12.19

1.1.19

£

£

Cash and cash equivalents

1,235,519

1,083,611

Year ended 31 December 2018

31.12.18

1.1.18

£

£

Cash and cash equivalents

1,083,611

1,081,059

3.	ANALYSIS OF CHANGES IN NET FUNDS

At 1.1.19

Cash flow

At 31.12.19

£

£

£

Net cash

Cash at bank

1,083,611

151,908

1,235,519

1,083,611

151,908

1,235,519

Total

1,083,611

151,908

1,235,519

1.	STATUTORY INFORMATION

Station Road Properties (St Neots) 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.

2.	ACCOUNTING POLICIES

Basis of preparing the financial statements

The financial statements have been prepared under the historical cost convention as modified by the

revaluation of land and buildings and certain financial instruments measured at fair value in accordance

with the accounting policies set out below.

These financial statements have been prepared in compliance with FRS 102 The Financial Reporting

Standard applicable in the UK and Republic of Ireland and the Companies Act 2006.

In preparing the financial statements management develops estimates and judgements that affect the

reported amount of assets and liabilities, revenue and costs, and related disclosures of the financial

statements. Actual results may differ from estimates under different assumptions and conditions.

Financial Reporting Standard 102 - reduced disclosure exemptions

The company has taken advantage of the following disclosure exemption in preparing these financial

statements, as permitted by FRS 102 "The Financial Reporting Standard applicable in the UK and

Republic of Ireland":

•

the requirement of Section 33 Related Party Disclosures paragraph 33.7.

Related party exemption

The company has taken advantage of exemption, under the terms of Financial Reporting Standard 102

'The Financial Reporting Standard applicable in the UK and Republic of Ireland', not to disclose related

party transactions with wholly owned subsidiaries within the group.

Significant judgements and estimates

Valuation of Properties

Following management's instruction, in November 2015, all properties held by the company were

appraised by Bidwells LLP. Management accepted the valuation reported and, in accordance with the

accounting policy, revalued the properties held by the company accordingly. The directors have made an

internal assessment of all investment properties held as at 31 December 2019 and do not believe there

has been any movement in value since the last balance sheet date.

Turnover

Turnover is the amount derived from ordinary activities, and is measured at the fair value of the

consideration received or receivable. Revenue is reduced for estimated customer returns, rebates and

other similar allowances, and is stated net of VAT.

Revenue from the rental of investment properties is recognised evenly over the term of the lease.

Tangible fixed assets

Investment properties are measured at fair value at each reporting date with changes in fair value

recognised through the profit and loss account. no depreciation is charged on investment properties.

Any revaluation increase or decrease is credited or charged to the property revaluation reserve in 'other

reserves', Deferred tax is provided through the profit and loss accounts on any revaluation gains

recognised.

Plant and equipment are stated at cost less accumulated depreciation and accumulated impairment

losses.

Depreciation on plant and equipment is charged to profit or loss so as to write off their value, over their

estimated useful lives of 20 years on a straight line basis.

At each balance sheet date, the Company reviews the carrying amounts of its property, plant and

equipment to determine whether there is any indication that any items of property, plant and equipment

have suffered an impairment loss. If any such indication exists, the recoverable amount of an asset is

estimated in order to determine the extent of the impairment loss, if any. Where it is not possible to

estimate the recoverable amount of the asset, the Company estimates the recoverable amount of the

cash-generating unit to which the asset belongs.

If the recoverable amount of an asset is estimated to be less than its carrying amount, the carrying amount

of the asset is reduced to its recoverable amount. Impairment loss is recognised as an expense

immediately.

Where an impairment loss subsequently reverses, the carrying amount of the asset is increased to the

revised estimate of its recoverable amount, to the extent that the increased carrying amount does not

exceed the carrying amount that would have been determined (net of depreciation) had no impairment

loss been recognised for the asset in prior years. A reversal of an impairment loss is recognised as

income immediately.

Taxation

Taxation for the year comprises current and deferred tax. Tax is recognised in the Statement of

Comprehensive Income, 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 taxation

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.

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.

Foreign currencies

The financial statements are presented in Sterling (GBP), which is also the functional currency of the

company.

Assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the

Balance sheet date Transactions in foreign currencies are translated into sterling at the rate of exchange

ruling at the date of transaction. Exchange differences are taken into account in arriving at the operating

result.

Financial instruments

Debtors

Short term debtors are measured at transaction price less impairment losses for bad and doubtful debts.

Creditors

Short term trade creditors are measured at the transaction price. Other financial liabilities, including bank

loans, are measured initially at fair value, net of transaction costs, and are measured subsequently at

amortised cost using the effective interest method unless the effect of discounting would be immaterial, in

which case these are stated at cost.

3.

TURNOVER

All of the company's turnover for 2019 and 2018 related to its principal activity of property rental and was

all generated in the UK.

4.	EMPLOYEES AND DIRECTORS

During the year the average number of employees, classified as management, was 1 (2018 - 1).

Total wages paid in the year amounted to £3,450 all of which related to directors remuneration, no wages

were paid in the prior year.

5.	OPERATING PROFIT

The operating profit is stated after charging/(crediting):

2019

2018

£

£

Depreciation - owned assets

3,598

-

Auditors remuneration

5,850

5,850

Auditors' remuneration for non audit work

1,200

1,825

Foreign exchange differences

-

693

Rent received under operating leases

(275,000

)

(275,000

)

6.

INTEREST PAYABLE AND SIMILAR EXPENSES

2019

2018

£

£

Other Interest Paid

107

-

7.

TAXATION

Analysis of the tax charge

The tax charge on the profit for the year was as follows:

2019

2018

£

£

Current tax:

UK corporation tax

35,877

19,785

Previously Underprovided

3,401

-

Total current tax

39,278

19,785

Deferred tax

10,031

-

Tax on profit

49,309

19,785

UK corporation tax has been charged at 19% (2018 - 19%).

Reconciliation of total tax charge included in profit and loss

The tax assessed for the year is higher than the standard rate of corporation tax in the UK. The difference

is explained below:

2019

2018

£

£

Profit before tax

247,364

218,454

Profit multiplied by the standard rate of corporation tax in the UK of 19% (2018 - 19%)

46,999

41,506

Effects of:

Expenses not deductible for tax purposes

1,692

-

Capital allowances in excess of depreciation

(12,814

)

(4,867

)

Utilisation of tax losses

-

(16,854

)

Adjustments to tax charge in respect of previous periods

3,401

-

Deferred tax movement - timing differences

10,031

-

Total tax charge

49,309

19,785

Deferred tax has been calculated at the rates at which it is expected to unwind.

The above changes to the rate of corporation tax will impact the amount of future cash tax payments to be

made by the company.

As at the balance sheet date the company had a potential deferred asset of circa £200,000 as a result of

historic trading losses being carried forward. The directors have not recognised this asset as the

probability of them being offset against future taxable profits of the same trade is remote.

8.	TANGIBLE FIXED ASSETS

Investment

Plant and

Property

machinery

Totals

£

£

£

COST OR VALUATION

At 1 January 2019

3,050,000

31,323

3,081,323

Additions

-

71,962

71,962

At 31 December 2019

3,050,000

103,285

3,153,285

DEPRECIATION

At 1 January 2019

-

31,323

31,323

Charge for year

-

3,598

3,598

At 31 December 2019

-

34,921

34,921

NET BOOK VALUE

At 31 December 2019

3,050,000

68,364

3,118,364

At 31 December 2018

3,050,000

-

3,050,000

Cost or valuation at 31 December 2019 is represented by:

Investment

Plant and

Property

machinery

Totals

£

£

£

Valuation in 2015

1,180,994

-

1,180,994

Cost

1,869,006

103,285

1,972,291

3,050,000

103,285

3,153,285

At the end of each reporting period the investment properties are restated to fair value based on an

assessment made by the directors. The last external valuation undertaken was during November 2015.

9.

DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2019

2018

£

£

Trade debtors

85,305

82,500

10.

CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2019

2018

£

£

Amounts owed to group undertakings

469

469

Tax

35,670

19,785

Sundry Creditors and Accruals

7,850

15,325

Taxation & Social Security

13,750

7,169

Accruals and deferred income

68,750

68,750

126,489

111,498