DENISTON_PROPERTIES_(HOVE - Accounts
DENISTON_PROPERTIES_(HOVE - Accounts
Company Registration No. 890822 (England and Wales)
FOR THE YEAR ENDED 30 SEPTEMBER 2014
COMPANY INFORMATION
Directors
Secretary
Company number
Registered office
Accountants
Business address
Sterling House
103b High Street
Crawley
West Sussex
RH10 1GE
Solicitors
Adams & Remers
Trinity House
213 High Street
Lewes
East Sussex
BN7 2NN
CONTENTS
Page
Directors' report
1
Accountants' report
2
Profit and loss account
3
Statement of total recognised gains and losses
4
Balance sheet
5
Notes to the financial statements
6 - 9
DIRECTORS' REPORT
FOR THE YEAR ENDED 30 SEPTEMBER 2014
- 1 -
The directors present their report and financial statements for the year ended 30 September 2014.
Principal activities
Directors
The following directors have held office since 1 October 2013:
This report has been prepared in accordance with the special provisions relating to small companies within Part 15 of the Companies Act 2006.
On behalf of the board
Director
CHARTERED ACCOUNTANTS' REPORT TO THE TO THE BOARD OF DIRECTORS ON THE PREPARATION OF THE UNAUDITED STATUTORY FINANCIAL STATEMENTS OF DENISTON PROPERTIES (HOVE) LTD FOR THE YEAR ENDED 30 SEPTEMBER 2014
- 2 -
In order to assist you to fulfil your duties under the Companies Act 2006, we have prepared for your approval the financial statements of Deniston Properties (Hove) Ltd for the year ended 30 September 2014 set out on pages 3 to 9 from the company's accounting records and from information and explanations you have given us.
As a practising member firm of the Institute of Chartered Accountants in England and Wales, we are subject to its ethical and other professional requirements which are detailed at icaew.com/regulations.
As a practising member firm of the Institute of Chartered Accountants in England and Wales, we are subject to its ethical and other professional requirements which are detailed at icaew.com/regulations.
This report is made solely to the Board of Directors of Deniston Properties (Hove) Ltd, as a body, in accordance with the terms of our engagement letter dated 12 December 2014. Our work has been undertaken solely to prepare for your approval the financial statements of Deniston Properties (Hove) Ltd and state those matters that we have agreed to state to the Board of Directors of Deniston Properties (Hove) Ltd, as a body, in this report in accordance with AAF 2/10 as detailed at icaew.com/compilation. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than Deniston Properties (Hove) Ltd and its Board of Directors as a body, for our work or for this report.
It is your duty to ensure that Deniston Properties (Hove) Ltd has kept adequate accounting records and to prepare statutory financial statements that give a true and fair view of the assets, liabilities, financial position and profit of Deniston Properties (Hove) Ltd. You consider that Deniston Properties (Hove) Ltd is exempt from the statutory audit requirement for the year.
We have not been instructed to carry out an audit or a review of the financial statements of Deniston Properties (Hove) Ltd. For this reason, we have not verified the accuracy or completeness of the accounting records or information and explanations you have given to us and we do not, therefore, express any opinion on the statutory financial statements.
Knill James
Chartered Accountants
PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 30 SEPTEMBER 2014
- 3 -
2014
2013
Notes
£
£
Turnover
Administrative expenses
(60,623 )
(93,546 )
Profit on ordinary activities before taxation
2
Tax on profit on ordinary activities
3
(14,420 )
(11,951 )
Profit for the year
9
STATEMENT OF TOTAL RECOGNISED GAINS AND LOSSES
FOR THE YEAR ENDED 30 SEPTEMBER 2014
- 4 -
2014
2013
Notes
£
£
Profit for the financial year
Unrealised surplus on revaluation of properties
Total recognised gains and losses relating to the year
BALANCE SHEET
AS AT
30 SEPTEMBER 2014
- 5 -
2014
2013
Notes
£
£
£
£
Fixed assets
Tangible assets
4 & 5
Current assets
Debtors
6
Cash at bank and in hand
Creditors: amounts falling due within one year
7
(85,841 )
(42,147 )
Net current assets
Total assets less current liabilities
Capital and reserves
Called up share capital
8
Revaluation reserve
9
Profit and loss account
9
Shareholders' funds
Directors' responsibilities:
-
-
Approved by the Board for issue on 21 April 2015
Director
Director
Company Registration No. 890822
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2014
- 6 -
1
Accounting policies
1.1
Accounting convention
1.2
Compliance with accounting standards
The financial statements are prepared in accordance with applicable United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), which have been applied consistently (except as otherwise stated).
1.3
Turnover
1.4
Tangible fixed assets and depreciation
Fixtures, fittings & equipment
Investment properties are included in the balance sheet at their open market value. Depreciation is provided only on those investment properties which are leasehold and where the unexpired lease term is less than 20 years.
Although this accounting policy is in accordance with the Financial Reporting Standard for Smaller Entities (effective April 2008), it is a departure from the general requirement of the Companies Act 2006 for all tangible assets to be depreciated. In the opinion of the directors compliance with the standard is necessary for the financial statements to give a true and fair view. Depreciation or amortisation is only one of many factors reflected in the annual valuation and the amount of this which might otherwise have been charged cannot be separately identified or quantified.
Although this accounting policy is in accordance with the Financial Reporting Standard for Smaller Entities (effective April 2008), it is a departure from the general requirement of the Companies Act 2006 for all tangible assets to be depreciated. In the opinion of the directors compliance with the standard is necessary for the financial statements to give a true and fair view. Depreciation or amortisation is only one of many factors reflected in the annual valuation and the amount of this which might otherwise have been charged cannot be separately identified or quantified.
1.5
Deferred taxation
Deferred tax is provided in full in respect of taxation deferred by timing differences between the treatment of certain items for taxation and accounting purposes. The deferred tax balance has not been discounted.
No provision has been made for deferred tax on gains recognised on revaluing property to its market value. According to FRS19 a deferred tax liability is only required to be provided for if the "events causing the future reversal of a timing difference (such as a commitment to sell a revalued asset) have occurred before the end of the financial year. Without that past event the future 'liability' does not relate to the financial year or a previous financial year." As the company was not actively marketing the properties at the year end date, and there was no commitment to sell the revalued asset, there is no requirement for a deferred tax liability at the balance sheet date on the gains recognised on revaluing property to its market value.
No provision has been made for deferred tax on gains recognised on revaluing property to its market value. According to FRS19 a deferred tax liability is only required to be provided for if the "events causing the future reversal of a timing difference (such as a commitment to sell a revalued asset) have occurred before the end of the financial year. Without that past event the future 'liability' does not relate to the financial year or a previous financial year." As the company was not actively marketing the properties at the year end date, and there was no commitment to sell the revalued asset, there is no requirement for a deferred tax liability at the balance sheet date on the gains recognised on revaluing property to its market value.
2
Operating profit
2014
2013
£
£
Operating profit is stated after charging:
Depreciation of tangible assets
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2014
- 7 -
3
Taxation
2014
2013
£
£
Domestic current year tax
U.K. corporation tax
Total current tax
4
Tangible fixed assets
Plant and machinery etc
£
Cost or valuation
At 1 October 2013 & at 30 September 2014
Depreciation
At 1 October 2013
Charge for the year
At 30 September 2014
Net book value
At 30 September 2014
At 30 September 2013
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2014
- 8 -
5
Tangible fixed assets
Investment properties
£
Cost or valuation
At 1 October 2013
Additions
Revaluation
At 30 September 2014
Net book value
At 30 September 2014
At 30 September 2013
The properties were revalued as at 30 September 2014 by the Directors, on the basis of open market value for current use.
The historical cost of the company's freehold properties is £700,096 (2013 - £618,247).
The tax that would be payable if the company's investment properties were sold at the revalued amount at the balance sheet date is approximately £568,030 (2013 - £523,268).
6
Debtors
2014
2013
£
£
Trade debtors
Other debtors
7
Creditors: amounts falling due within one year
2014
2013
£
£
Trade creditors
Taxation and social security
Other creditors
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2014
- 9 -
8
Share capital
2014
2013
£
£
Allotted, called up and fully paid
9
Statement of movements on reserves
Revaluation reserve
Profit
and loss
account
and loss
account
£
£
Balance at 1 October 2013
Profit for the year
-
Revaluation during the year
-
Balance at 30 September 2014
10
Control
The ultimate controlling party are the executors of M R Corfield.
11
Related party relationships and transactions
Other transactions
During the year Stiles Harold Williams, of which D G Hadden is a director, provided management and valuation services of £31,954 (2013 - £29,429) of which £4,841(2013 - £2,100) was outstanding at the balance sheet date. At the balance sheet date the cash at bank of £280,221 (2013 - £240,033) was held on a client account by Stiles Harold Williams.
During the year Adams and Remers LLP Solicitors, of which R S H Illingworth is a designated member, provided legal services of £735 (2013 - £7,636) of which £nil (2013 - £nil) was outstanding at the balance sheet date.