ACCOUNTS - Final Accounts preparation

ACCOUNTS - Final Accounts preparation

LENNOX ESTATES (SPRING COURT) LIMITED - Company Information

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Registered number: 11616900










LENNOX ESTATES (SPRING COURT) LIMITED










DIRECTORS' REPORT AND FINANCIAL STATEMENTS

FOR THE PERIOD ENDED 31 DECEMBER 2019
 
LENNOX ESTATES (SPRING COURT) LIMITED
 
 
COMPANY INFORMATION


Directors
W J Cane 
A M Gilford 
J A Gurney 
W K D Laxton 
Sir J A Mactaggart Bt. 




Registered number
11616900



Registered office
2 Babmaes Street

London

SW1Y 6HD




Independent auditors
Haysmacintyre LLP

10 Queen Street Place

London

EC4R 1AG




 
LENNOX ESTATES (SPRING COURT) LIMITED
 

CONTENTS



Page
Directors' Report
1 - 2
Independent Auditors' Report
3 - 5
Statement of Comprehensive Income
6
Statement of Financial Position
7
Notes to the Financial Statements
8 - 12

 
LENNOX ESTATES (SPRING COURT) LIMITED
 
 
 
DIRECTORS' REPORT
FOR THE PERIOD ENDED 31 DECEMBER 2019

The directors present their report and the financial statements for the period from incorporation on 11 October 2018 to 31 December 2019.

Directors' responsibilities statement

The directors are responsible for preparing the Directors' Report 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 applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland'. 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 for the Company's financial statements and then apply them consistently;

∙make judgments 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 to 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.

Directors

The directors who served during the period were:

W J Cane 
A M Gilford 
J A Gurney 
W K D Laxton 
Sir J A Mactaggart Bt. 

Disclosure of information to auditors

Each of the persons who are directors at the time when this Directors' Report is approved has confirmed that:
 
∙so far as the director is aware, there is no relevant audit information of which the Company's auditors are unaware, and

∙the director has taken all the steps that ought to have been taken as a director in order to be aware of any relevant audit information and to establish that the Company's auditors are aware of that information.

Page 1
 
LENNOX ESTATES (SPRING COURT) LIMITED
 
 
 
DIRECTORS' REPORT (CONTINUED)
FOR THE PERIOD ENDED 31 DECEMBER 2019

Post balance sheet events

Since the year end, Covid-19 was declared a global pandemic. This represented a non-adjusting post balance sheet event for the purposes of these financial statements as set out in note 11. Prior to the date of approval of these financial statements, the directors have taken the decision to cease the trade of the Company and liquidate it within the next twelve months.The impact of these factors on the going concern basis of preparation of these financial statements is set out in the accounting policies, per note 2.2.  

Auditors

The auditors, Haysmacintyre LLP, will be proposed for reappointment in accordance with section 485 of the Companies Act 2006.

Small companies note

In preparing this report, the directors have taken advantage of the small companies exemptions provided by section 415A of the Companies Act 2006.

This report was approved by the board on 9 October 2020 and signed on its behalf.
 





W K D Laxton
Director

Page 2
 
LENNOX ESTATES (SPRING COURT) LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF LENNOX ESTATES (SPRING COURT) LIMITED
 

Opinion


We have audited the financial statements of Lennox Estates (Spring Court) Limited (the 'Company') for the period ended 31 December 2019, which comprise the Statement of Comprehensive Income, the Statement of Financial Position and the related notes, 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 loss for the period 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 United Kingdom, including the Financial Reporting Council'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.


Emphasis of matter - financial statements prepared on a basis other than going concern


We draw attention to note 2.2 in the financial statements, which explains that the Company has exchanged on all its remaining stock of developed properties and as a result the directors have taken the decision to liquidate the Company following completion of the sale. Accordingly the financial statements have been prepared on a basis other than going concern. 
Our opinion is not modified in respect of this matter.


Other information


The directors are responsible for the other information. The other information comprises the information included in the Annual Report, other than the financial statements and our Auditors' Report 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.


Page 3
 
LENNOX ESTATES (SPRING COURT) LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF LENNOX ESTATES (SPRING COURT) LIMITED (CONTINUED)


We have nothing to report in this regard.


Opinion 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 Directors' Report for the financial period for which the financial statements are prepared is consistent with the financial statements; and

∙the Directors' Report 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 Directors' Report.


We have nothing to report in respect of the following matters in relation to which 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 prepare the financial statements in accordance with the small companies regime and take advantage of the small companies' exemptions in preparing the Directors' Report and from the requirement to prepare a Strategic Report.



Responsibilities of directors
 

As explained more fully in the Directors' Responsibilities Statement on page 1, 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 is 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.


Page 4
 
LENNOX ESTATES (SPRING COURT) LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF LENNOX ESTATES (SPRING COURT) LIMITED (CONTINUED)


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 an Auditors' Report 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 Auditors' Report.


Use of our report
 

This report is made solely to the Company's members 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 an Auditors' Report 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 for our audit work, for this report, or for the opinions we have formed.





Christopher Cork (Senior Statutory Auditor)
  
for and on behalf of
Haysmacintyre LLP
 
Statutory Auditors
  
10 Queen Street Place
London
EC4R 1AG

9 October 2020
Page 5
 
LENNOX ESTATES (SPRING COURT) LIMITED
 
 
STATEMENT OF COMPREHENSIVE INCOME
FOR THE PERIOD ENDED 31 DECEMBER 2019

2019
£

  

Turnover
  
43,745

Gross profit
  
43,745

Administrative expenses
  
(58,549)

Impairment losses
  
(563,919)

Operating loss
  
(578,723)

Interest receivable and similar income
  
8

Interest payable and expenses
  
(50,679)

Loss before tax
  
(629,394)

Tax on (loss)
  
-

Loss for the financial period
  
(629,394)

There was no other comprehensive income for 2019 (2018:£NIL).

The notes on pages 8 to 12 form part of these financial statements.

Page 6
 
LENNOX ESTATES (SPRING COURT) LIMITED
REGISTERED NUMBER: 11616900

STATEMENT OF FINANCIAL POSITION
AS AT 31 DECEMBER 2019

2019
Note
£

  

Current assets
  

Stocks
 5 
2,011,000

Debtors: amounts falling due within one year
 6 
1,845

Cash at bank and in hand
 7 
4,282

  
2,017,127

Creditors: amounts falling due within one year
 8 
(2,646,420)

Net current (liabilities)/assets
  
 
 
(629,293)

Total assets less current liabilities
  
(629,293)

  

Net (liabilities)/assets
  
(629,293)


Capital and reserves
  

Called up share capital 
 9 
101

Profit and loss account
  
(629,394)

  
(629,293)


The financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies regime and in accordance with the provisions of FRS 102 Section 1A - small entities.

The financial statements were approved and authorised for issue by the board and were signed on its behalf on 9 October 2020.




W K D Laxton
Director

The notes on pages 8 to 12 form part of these financial statements.

Page 7
 
LENNOX ESTATES (SPRING COURT) LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 DECEMBER 2019

1.


General information

Lennox Estates (Spring Court) Limited is a private company, limited by shares, registered in England and Wales. Its registered and trading address is 2 Babmaes Street, London, SW1Y 6HD.

2.Accounting policies

 
2.1

Basis of preparation of financial statements

The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Section 1A of Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and the Companies Act 2006.
The presentation currency of these financial statements is sterling. All amounts in the financial statements have been rounded to the nearest £1.

The following principal accounting policies have been applied:

 
2.2

Basis of preparation - other than going concern

The financial statements for the Company have been prepared on a basis other than that of a going concern. The Company recorded a loss after tax for the financial year of £629,394 and had net liabilities of £629,293 at the balance sheet date. 
In October 2020, the Company exchanged on all its remaining stock of developed properties and as a result the directors have taken the decision to liquidate the Company following completion of the sale. The financial statements have therefore been prepared on a basis other than that of going concern. No adjustment has been made to the carrying value of the Company's assets and liabilities as a result of this change in the basis of preparation of the financial statements. The financial statements do not include any provision for the future costs of terminating the business of the Company except to the extent that such costs were not committed to the balance sheet date.

 
2.3

Revenue

Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Company and the revenue can be reliably measured. Revenue comprises of income recognised by the company in respect of rent charged during the year, exclusive of Value Added Tax and trade discounts. Rental income is recognised on a straight line basis over the term of the lease. Amounts invoiced in advance are deferred accordingly and recognised in the period to which they relate.

 
2.4

Interest income

Interest income is recognised in the Statement of Comprehensive Income using the effective interest method.

 
2.5

Finance costs

Finance costs are charged to the Statement of Comprehensive Income over the term of the debt using the effective interest method so that the amount charged is at a constant rate on the carrying amount. Issue costs are initially recognised as a reduction in the proceeds of the associated capital instrument.

Page 8
 
LENNOX ESTATES (SPRING COURT) LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 DECEMBER 2019

2.Accounting policies (continued)

 
2.6

Borrowing costs

All borrowing costs are recognised in the Statement of Comprehensive Income in the period in which they are incurred.

 
2.7

Taxation

Tax is recognised in the Statement of Comprehensive Income, except that a charge attributable to an item of income and expense recognised as other comprehensive income or to an item recognised directly in equity is also recognised in other comprehensive income or directly in equity respectively.

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 income.

 
2.8

Stocks

Trading stock of properties are stated at the lower of cost and net realisable value, being the estimated selling price less costs to complete and sell. Cost is based on the cost of purchase plus the attendant costs of developing the property to a saleable state. 

At each reporting date, stocks are assessed for impairment. If stock is impaired, the carrying amount is reduced to its selling price less costs to complete and sell. The impairment loss is recognised immediately in profit or loss. Property acquisitions and disposals are accounted for when legally binding contracts, which are irrevocable and unconditional, are exchanged.

 
2.9

Debtors

Short term debtors are measured at transaction price, less any impairment. Loans receivable are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method, less any impairment.

 
2.10

Cash and cash equivalents

Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours. Cash equivalents are highly liquid investments that mature in no more than three months from the date of acquisition and that are readily convertible to known amounts of cash with insignificant risk of change in value.

 
2.11

Creditors

Short term 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.

Page 9
 
LENNOX ESTATES (SPRING COURT) LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 DECEMBER 2019

2.Accounting policies (continued)

 
2.12

Financial instruments

The Company only enters into basic financial instrument transactions that result in the recognition of financial assets and liabilities like trade and other debtors and creditors, loans from banks and other third parties and loans to related parties.


3.


Judgments in applying accounting policies and key sources of estimation uncertainty

Estimates and judgements are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. Although these estimates are based on management's best knowledge of the amount, events or actions, actual results ultimately may differ from those estimates. The directors consider the valuation of stock to be a critical estimate and judgement applicable to the financial statements. 


4.


Employees

The average monthly number of employees, during the period was 0.


5.


Stocks

2019
£

Development properties
2,011,000

2,011,000


Capitalised borrowing costs totaling £128k have been included within stock. 
At the year end, an impairment loss of £564k was recognised against the carrying value of stock in the profit and loss. 


6.


Debtors

2019
£


Other debtors
1,845

1,845


Page 10
 
LENNOX ESTATES (SPRING COURT) LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 DECEMBER 2019

7.


Cash and cash equivalents

2019
£

Cash at bank and in hand
4,282

4,282



8.


Creditors: Amounts falling due within one year

2019
£

Bank loans
1,303,500

Amounts owed to group undertakings
1,338,670

Accruals and deferred income
4,250

2,646,420


The bank loan is secured on the property owned by the Company. Interest is charged on the loan at a fixed rate of 10% per annum and was due for repayment on 30 June 2020 and extended on a month by month rolling basis until the sale of the property.   


9.


Share capital

2019
£
Allotted, called up and fully paid


100 Ordinary A shares of £1.00 each
100
1 Ordinary B share of £1.00
1

101

On 11 October 2018 the Company issued 100 Ordinary A shares at £1 each and 1 Ordinary B share issued at £1. 


10.


Related party transactions

Lennox Estates (Spring Court) Limited is 95% owned by Western Heritable (Star) Limited. At the year end the Company owed £1,338,670 to Star.

Page 11
 
LENNOX ESTATES (SPRING COURT) LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 DECEMBER 2019

11.


Post balance sheet events

Since the year end, the Covid-19 pandemic has resulted in severe restrictions being imposed on business operations across all industries with a corresponding adverse impact on economic activity.
The emergence and spread of the virus took place in February and March 2020 which is why it is considered a non-adjusting event and therefore does not provide information about conditions that existed at the balance sheet date.
In October 2020, the Company exchanged on all its remaining stock of developed properties and as a result the directors have taken the decision to liquidate the Company following completion of the sale. The financial statements have therefore been prepared on a basis other than that of going concern.  
There were no other events subsequent to the reporting date and up to the date of signing that require disclosure in these financial statements.


12.


Controlling party

The immediate parent company is Western Heritable (Star) Limited and the ultimate parent company is Mactaggart Heritable Limited, both of which are registered in England and Wales. Mactaggart Heritable Limited produces consolidated financial statements that are available to the public, from Registrar of Companies at Companies House. 
There is no single ultimate controlling party.

Page 12