Arena Farnborough Limited - Period Ending 2019-06-30

Copy for Companies House

Registration number: 09235522

Arena Farnborough Limited

Annual Report and Unaudited Financial Statements

for the Year Ended 30 June 2019

Arena Farnborough Limited

Contents

Company Information	1
Balance Sheet	2 to 3
Notes to the Financial Statements	4 to 9

Arena Farnborough Limited

Company Information

Directors

J M Spolnik P S Wilson S E Domanska

Registered office

118 Old Milton Road New Milton Hampshire BH25 6EB

Page 1

Arena Farnborough Limited

(Registration number: 09235522)
Balance Sheet as at 30 June 2019

	Note	2019 £	2018 £
Fixed assets
Investment property	3	13,080,812	12,700,000
Creditors: Amounts falling due within one year	5	(5,942,724)	(6,018,594)
Total assets less current liabilities		7,138,088	6,681,406
Creditors: Amounts falling due after more than one year	5	(1,591,444)	(1,222,016)
Provisions for liabilities		(792,956)	(792,956)
Net assets		4,753,688	4,666,434
Capital and reserves
Called up share capital		1	1
Investment property revaluation reserve		4,506,336	4,506,336
Profit and loss account		247,351	160,097
Total equity		4,753,688	4,666,434

The notes on pages 4 to 9 form an integral part of these financial statements.

Page 2

Arena Farnborough Limited

(Registration number: 09235522)
Balance Sheet as at 30 June 2019 (continued)

For the financial year ending 30 June 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 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 24 June 2020 and signed on its behalf by:
 

.........................................

P S Wilson
Director

The notes on pages 4 to 9 form an integral part of these financial statements.

Page 3

Arena Farnborough Limited

Notes to the Financial Statements for the Year Ended 30 June 2019

1	General information

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

The address of its registered office is:
118 Old Milton Road
New Milton
Hampshire
BH25 6EB
England

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 company's functional and presentational currency is pound sterling.

Going concern

The financial statements have been prepared on a going concern basis despite the excess of liabilities over assets at the balance sheet date. The directors have indicated their willingness to continue to support the company for the foreseeable future.

Turnover

Turnover represents rents receivable, which are credited to revenue in the accounting period in which they are receivable.

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.

Page 4

Arena Farnborough Limited

Notes to the Financial Statements for the Year Ended 30 June 2019 (continued)

2	Accounting policies (continued)

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.

Depreciation

Asset class	Depreciation method and rate
Land	Not depreciated

Investment property

Investment property is carried at fair value, derived from the current market prices for comparable real estate determined annually 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, which have been disclosed as a separate component of shareholders' funds, the Investment Property Revaluation Reserve.

Hire purchase and leasing

Assets held under finance leases, which are leases where substantially all the risks and rewards of ownership of the asset have passed to the company, are capitalised in the balance sheet as tangible fixed assets and are depreciated over the shorter of the lease term and their useful lives. The capital elements of future obligations under the leases are included as liabilities in the balance sheet. The interest element of the rental obligation is charged to the profit and loss account over the period of the lease and represents a constant proportion of the balance of capital repayments outstanding. Assets held under hire purchase agreements are capitalised as tangible fixed assets and are depreciated over the shorter of the lease term and their useful lives. The capital element of future finance payments is included within creditors. Finance charges are allocated to accounting periods over the length of the contract and represent a constant proportion of the balance of capital repayments outstanding.

Share capital

Ordinary shares are classified as equity. 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. If payment is deferred and the time value of money is material, the initial measurement is on a present value basis.

Page 5

Arena Farnborough Limited

Notes to the Financial Statements for the Year Ended 30 June 2019 (continued)

3	Investment properties

Investment properties

	Investment properties £
Cost or valuation
At 1 July 2018	12,700,000
Additions	380,812
At 30 June 2019	13,080,812
Carrying amount
At 30 June 2019	13,080,812
At 30 June 2018	12,700,000

Impairment of investment property

The amount of impairment loss included in profit or loss is £Nil (2018 - £564,822).

4

Debtors

	2019 £	2018 £
Total current trade and other debtors	-	-

Page 6

Arena Farnborough Limited

Notes to the Financial Statements for the Year Ended 30 June 2019 (continued)

5

Creditors

Creditors: amounts falling due within one year

	Note	2019 £	2018 £
Due within one year
Finance lease liabilities		61	570
Amounts owed to group undertakings		5,942,663	6,018,023
Other creditors		-	1
		5,942,724	6,018,594
Due after one year
Finance lease liabilities		1,591,444	1,222,016

Creditors: amounts falling due after more than one year

	Note	2019 £	2018 £
Due after one year
Finance lease liabilities		1,591,444	1,222,016

6	Share capital

Allotted, called up and fully paid shares

	2019		2018
	No.	£	No.	£
Ordinary share of £1 each	1	1	1	1

7	Non adjusting events after the financial period

Since the year end, the Coronavirus (COVID-19) has emerged globally resulting in a significant impact on businesses worldwide. The directors are unable to evaluate the overall financial impact on the business at present. Hence the financial statements do not include any adjustments that might result from the outcome of this uncertainty. The directors are continuing to monitor, assess and act to the current changing environment in order to position the company to ensure its future success.

Page 7

Arena Farnborough Limited

Notes to the Financial Statements for the Year Ended 30 June 2019 (continued)

8	Transition to FRS 102

The company has adopted FRS102 Section 1A for the first time in the year ended 30 June 2019. The last financial statements, prepared under FRS105, were for the year ended 30 June 2018. The date of transition to FRS102 was 1 July 2017. The effect of this transition from previous financial reportng framework to FRS102 Section 1A is outlined below:

Investment properties and deferred tax

Gains and losses on investment properties are now shown within the profit or loss for the year and deferred tax is recognised as per the requirements of FRS102. We have disclosed the cumulative effect of these net unrealised gains as a separate component of shareholders' funds, the Investment Property Revaluation Reserve.

Balance Sheet at 1 July 2017
 

	As originally reported £	Reclassification £	Remeasurement £	As restated £
Fixed assets
Investment property	6,835,886	-	5,864,114	12,700,000
Creditors: Amounts falling due within one year	(5,580,577)	-	-	(5,580,577)
Total assets less current liabilities	1,255,309	-	5,864,114	7,119,423
Creditors: Amounts falling due after more than one year	(1,222,586)	-	-	(1,222,586)
Provisions for liabilities	-	-	(914,328)	(914,328)
Net assets	32,723	-	4,949,786	4,982,509
Capital and reserves
Called up share capital	1	-	-	1
Revaluation reserve	-	-	4,949,786	4,949,786
Profit and loss account	32,722	-	-	32,722
Total equity	32,723	-	4,949,786	4,982,509

Page 8

Arena Farnborough Limited

Notes to the Financial Statements for the Year Ended 30 June 2019 (continued)

8	Transition to FRS 102 (continued)

Balance Sheet at 30 June 2018
 

	As originally reported £	Reclassification £	Remeasurement £	As restated £
Fixed assets
Investment property	7,268,480	-	5,431,520	12,700,000
Creditors: Amounts falling due within one year	(6,018,594)	-	-	(6,018,594)
Total assets less current liabilities	1,249,886	-	5,431,520	6,681,406
Creditors: Amounts falling due after more than one year	(1,222,016)	-	-	(1,222,016)
Provisions for liabilities	-	-	(792,956)	(792,956)
Net assets	27,870	-	4,638,564	4,666,434
Capital and reserves
Called up share capital	1	-	-	1
Revaluation reserve	-	-	4,506,336	4,506,336
Profit and loss account	27,869	-	132,228	160,097
Total equity	27,870	-	4,638,564	4,666,434

Page 9