Arima Leisure Limited - Accounts to registrar (filleted) - small 18.2

REGISTERED NUMBER: 03094386 (England and Wales)

Unaudited Financial Statements

for the Year Ended 31 October 2019

for

ARIMA LEISURE LIMITED

Page

Company Information

1

Balance Sheet

2

Notes to the Financial Statements

4

Director:

Mr L A Kyriacou

Secretary:

Mrs T Kyriacou

Registered office:

907 Green Lanes

Winchmore Hill

London

N21 2QP

Registered number:

03094386 (England and Wales)

Accountants:

Haines Watts

Chartered Accountants

305 Regents Park Road

Finchley

London

N3 1DP

Fixed assets

Tangible assets

4

1,574

2,117

Investments

5

100

100

Investment property

6

11,961,530

11,955,362

11,963,204

11,957,579

Current assets

Debtors

7

1,356,467

1,481,592

Prepayments and accrued income

4,081

377

Cash at bank

2,031,744

1,097,823

3,392,292

2,579,792

Creditors

Amounts falling due within one year

8

4,296,856

3,840,698

Net current liabilities

(904,564

)

(1,260,906

)

Total assets less current liabilities

11,058,640

10,696,673

Creditors

Amounts falling due after more than one year

9

(3,755,290

)

(3,781,147

)

Provisions for liabilities

(546,623

)

(612,207

)

Net assets

6,756,727

6,303,319

Capital and reserves

Called up share capital

11

2

2

Other reserves

5,010,095

471,032

Retained earnings

1,746,630

5,832,285

Shareholders' funds

6,756,727

6,303,319

The company is entitled to exemption from audit under Section 477 of the Companies Act 2006 for the year ended 31 October 2019.

The members have not required the company to obtain an audit of its financial statements for the year ended 31 October 2019 in accordance with Section 476 of the Companies Act 2006.

The director acknowledges his responsibilities for:

(a)	ensuring that the company keeps accounting records which comply with Sections 386 and 387 of the Companies Act 2006 and

(b)

preparing financial statements which give a true and fair view of the state of affairs of the company as at the end of each financial year and of its profit or loss for each financial year in accordance with the requirements of Sections 394 and 395 and which otherwise comply with the requirements of the Companies Act 2006 relating to financial statements, so far as applicable to the company.

The financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime.

In accordance with Section 444 of the Companies Act 2006, the Profit and Loss Account has not been delivered.

The financial statements were approved by the director and authorised for issue on 24 April 2020 and were signed by:

Mr L A Kyriacou - Director

1.	Statutory information

Arima Leisure 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.

The presentation currency of the financial statements is the Pound Sterling (£).

2.	Accounting policies

Basis of preparing the financial statements

These financial statements have been prepared in accordance with Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" including the provisions of Section 1A "Small Entities" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention as modified by the revaluation of certain assets.

The company has net current liabilities of £904,564 (2018: £1,260,907) and relies on the support of its director

to ensure it meets its liabilities as they fall due. On this basis, the director considers it appropriate to prepare

the financial statements on the going concern basis. The financial statements do not include any adjustments

that would result from a withdrawal of this support by the director.

Preparation of consolidated financial statements

The financial statements contain information about Arima Leisure Limited as an individual company and do

not contain consolidated financial information as the parent of a group. The company is exempt under Section

399(2A) of the Companies Act 2006 from the requirements to prepare consolidated financial statements.

Key source of estimation, uncertainty and judgement

The preparation of financial statements in conformity with generally accepted accounting practice requires

management to make estimates and judgement that affect the reported amounts of assets and liabilities as well

as the disclosure of contingent assets and liabilities at the balance sheet date and the reported amounts of

revenues and expenses during the reporting period.

There is estimation uncertainty in calculating depreciation. A full line by line review of fixed assets is carried

out by management regularly. Whilst every attempt is made to ensure that the depreciation policy is as accurate

as possible, there remains a risk that the policy does not match the useful life of the assets.

There is estimation uncertainty in calculating deferred tax. A full line by line review of deferred tax is carried

out by management regularly. Whilst every attempt is made to ensure that the deferred tax is accurate as

possible, there remains a risk that the provisions do not match the actual tax liability when asset is disposed

off.

There is estimation uncertainty in calculating bad debt provisions. A full line by line review of trade debtors is

carried out at the end of each month. Whilst every attempt is made to ensure that the bad debt provisions are as

accurate as possible, there remains a risk that the provisions do not match the level of debts which ultimately

prove to be uncollectable.

Turnover

Turnover is measured at the fair value of the consideration received or receivable, excluding discounts, rebates,

value added tax and other sales taxes.

Tangible fixed assets

Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life or, if held under a finance lease, over the lease term, whichever is the shorter.

Plant and machinery

-

25% on reducing balance

Computer equipment

-

25% on cost

Investment property

Investment properties are included in the balance sheet at their open market value and the aggregate surplus or

deficit is recognised in the profit and loss account. No depreciation is provided.

Financial instruments

Financial assets and financial liabilities are recognised in the balance sheet when the company becomes a party

to the contractual provisions of the instrument.

Trade and other debtors and creditors are classified as basic financial instruments and measured at initial

recognition at transaction price. Debtors and creditors are subsequently measured at amortised cost using the

effective interest rate method. A provision is established when there is objective evidence that the company will

not be able to collect all amounts due.

Cash and cash equivalents are classified as basic financial instruments and comprise cash in hand and at bank

and bank overdrafts which are integral part of the company’s cash management.

Financial liabilities and equity instruments issued by the company are classified in accordance with the

substance of the contractual arrangements entered into and the definitions of a financial liability and an equity

instrument. An equity instrument is any contract that evidences a residual interest in the assets of the company

after deducting all of its liabilities. Equity instruments issued by the company are recorded at the proceeds

received, net of direct issue costs.

Taxation

Taxation for the year comprises current and deferred tax. Tax is recognised in the Profit and Loss Account,

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 tax

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.

Hire purchase and leasing commitments

Assets obtained under hire purchase contracts or finance leases are capitalised in the balance sheet. Those

held under hire purchase contracts are depreciated over their estimated useful lives. Those held under finance

leases are depreciated over their estimated useful lives or the lease term, whichever is the shorter.

The interest element of these obligations is charged to profit or loss over the relevant period. The capital

element of the future payments is treated as a liability.

3.	Employees and directors

The average number of employees during the year was 1 (2018 - 1 ) .

4.	Tangible fixed assets

Plant and

Computer

machinery

equipment

Totals

£

£

£

Cost

At 1 November 2018

and 31 October 2019

27,057

2,738

29,795

Depreciation

At 1 November 2018

25,110

2,568

27,678

Charge for year

487

56

543

At 31 October 2019

25,597

2,624

28,221

Net book value

At 31 October 2019

1,460

114

1,574

At 31 October 2018

1,947

170

2,117

Fixed assets, included in the above, which are held under hire purchase contracts or finance leases are as

follows:

Plant and

machinery

£

Cost

At 1 November 2018

and 31 October 2019

27,057

Depreciation

At 1 November 2018

24,461

Charge for year

487

At 31 October 2019

24,948

Net book value

At 31 October 2019

2,109

At 31 October 2018

2,596

5.	Fixed asset investments

Other

investments

£

Cost

At 1 November 2018

and 31 October 2019

100

Net book value

At 31 October 2019

100

At 31 October 2018

100

6.	Investment property

Total

£

Fair value

At 1 November 2018

11,955,362

Additions

6,168

At 31 October 2019

11,961,530

Net book value

At 31 October 2019

11,961,530

At 31 October 2018

11,955,362

Fair value at 31 October 2019 is represented by:

£

Valuation in 2002

250,000

Valuation in 2003

25,000

Valuation in 2004

78,611

Valuation in 2005

38,158

Valuation in 2006

177,184

Valuation in 2007

70,000

Valuation in 2011

(87,948

)

Valuation in 2015

333,903

Valuation in 2017

4,294,922

Cost

6,781,700

11,961,530

Investment property has been valued on an open market basis by the company director on 31 October 2019.

7.

Debtors: amounts falling due within one year

2019

2018

£

£

Other debtors

1,356,467

1,481,592

8.

Creditors: amounts falling due within one year

2019

2018

£

£

Bank loans and overdrafts

29,052

29,052

Trade creditors

-

234

Taxation and social security

111,562

69,234

Other creditors

4,156,242

3,742,178

4,296,856

3,840,698

9.

Creditors: amounts falling due after more than one year

2019

2018

£

£

Bank loans

3,755,290

3,781,147

10.	Secured debts

The following secured debts are included within creditors:

2019

2018

£

£

Bank loans

3,784,342

3,810,199

The company's bankers have secured the company bank loans and overdrafts by way of 1st legal charges over

all the freehold properties owned by the company. In addition, the director of the company has provided the

company bankers with unlimited personal guarantees in respect of the company bank loans and overdrafts.

11.	Called up share capital

Allotted, issued and fully paid:

Number:

Class:

Nominal

2019

2018

value:

£

£

2

Ordinary

£1

2

2

12.	Director's advances, credits and guarantees

The following advances and credits to a director subsisted during the years ended 31 October 2019 and

31 October 2018:

2019

2018

£

£

Mr L A Kyriacou

Balance outstanding at start of year

1,037,072

43,999

Amounts advanced

-

1,043,073

Amounts repaid

(219,375

)

(50,000

)

Amounts written off

-

-

Amounts waived

-

-

Balance outstanding at end of year

817,697

1,037,072

The director's loan from the company was repaid within nine months of the company year end date.

13.	Related party disclosures

Included above in Other creditors is an amount of £4,108,077 (2018 : £3,683,172) owed to a related company.

Both the companies are related by virtue of having common directors and shareholders.