Bailey Holdings Limited - Period Ending 2020-01-31

Bailey Holdings Limited

Contents

Company Information	1
Balance Sheet	2 to 3
Notes to the Financial Statements	4 to 11
Accountants' Report	12

Bailey Holdings Limited

Company Information

Directors

K M Bailey M G Bailey

Registered office

Venayr Goonearl Scorrier Redruth Cornwall TR16 5EB

Accountants

Francis Clark LLP Lowin House Tregolls Road Truro Cornwall TR1 2NA

Bailey Holdings Limited

Balance Sheet

31 January 2020

	Note	2020 £	2019 £
Fixed assets
Tangible assets	4	121,953	147,441
Investment property	5	8,027,118	4,826,942
Investments	6	1	1
		8,149,072	4,974,384
Current assets
Debtors	7	38,000	52,349
Cash at bank and in hand		53,495	40,621
		91,495	92,970
Creditors: Amounts falling due within one year	8	(495,057)	(422,680)
Net current liabilities		(403,562)	(329,710)
Total assets less current liabilities		7,745,510	4,644,674
Creditors: Amounts falling due after more than one year	8	(2,610,671)	(2,210,827)
Provisions for liabilities		(311,828)	(40,484)
Net assets		4,823,011	2,393,363
Capital and reserves
Called up share capital	10	2	2
Other reserves		2,786,633	702,170
Profit and loss account		2,036,376	1,691,191
Total equity		4,823,011	2,393,363

Bailey Holdings Limited

Balance Sheet

31 January 2020

For the financial year ending 31 January 2020 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 and delivered in accordance with the special provisions relating to companies subject to the small companies regime within Part 15 of the Companies Act 2006 and the option not to file the Profit and Loss Account has been taken.

Approved and authorised by the Board on 2 November 2020 and signed on its behalf by:
 

......................................... M G Bailey Director

Company Registration Number: 06010084

Bailey Holdings Limited

Notes to the Financial Statements

Year Ended 31 January 2020

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:
Venayr Goonearl
Scorrier
Redruth
Cornwall
TR16 5EB

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 - 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' and the Companies Act 2006 as applicable to companies subject to the small companies regime. The disclosure requirements of Section 1A of FRS102 have been applied other than where additional disclosure is required to show a true and fair view.

The functional and presentational currency for the company is pounds sterling, with values rounded to the nearest pound.

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.

Group accounts not prepared

Bailey Holdings Limited has claimed exemption from the requirement to prepare consolidated financial statements on the basis that it is the parent of a small group.

Bailey Holdings Limited

Notes to the Financial Statements

Year Ended 31 January 2020

Going concern

At the balance sheet date, the company had net current liabilities of £403,562 (2019 - net current liabilities of £329,710), and net assets of £4,823,011 (2019 - £2,393,363).

In preparing and approving these financial statements the directors have given due consideration to going concern risks, and in particular the impact of the Coronavirus pandemic. The pandemic has led to widespread, profound economic shocks which have impacted a number of sectors and tenants of Bailey Holdings Limited. Whilst recognising that there can be no certainty the directors are satisfied that the going concern basis of preparation remains appropriate and that the impact of the pandemic is not considered to be an adjusting post balance sheet event.

Since the balance sheet date management have worked with their tenants and rental collections continue to be strong.

After due consideration of these factors the Directors are satisfied that the company will be able to operate within their available facilities and continue as a going concern for the foreseeable future – being a period no less than 12 months from the date of approval of these financial statements.

Revenue recognition

Turnover represents rent and hire charges received by the company.

Turnover is recognised when the company fulfils its contractual obligations to customers by supplying goods and services and excludes value added tax.

Interest receivable is recognised on an accruals basis.

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 corporation 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.

Deferred tax is recognised on all timing differences at the balance sheet date unless indicated below. Timing differences are differences between taxable profits and the results as stated in the profit and loss account and other comprehensive income. Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the reporting date.

The carrying amount of deferred tax assets are reviewed at each reporting date and a valuation allowance is set up against deferred tax assets so that the net carrying amount equals the highest amount that is more likely than not to be recovered based on current or future taxable profit.

Bailey Holdings Limited

Notes to the Financial Statements

Year Ended 31 January 2020

Tangible assets

Tangible assets are stated in the balance sheet at cost, less any subsequent accumulated depreciation and subsequent accumulated impairment losses.

The cost of tangible assets includes directly attributable incremental costs incurred in their acquisition and installation.

Depreciation

Depreciation is charged so as to write off the cost of assets, other than land and properties under construction over their estimated useful lives, as follows:

Asset class	Depreciation method and rate
Plant and machinery	10% - 20% straight line

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.

Investments

Investments at the balance sheet date relate to shareholdings in a subsidiary undertaking and is stated at cost.

Financial instruments

Classification
The company holds the following financial instruments:

• Short term trade and other debtors and creditors;
• Bank loans; and
• Cash and bank balances.

All financial instruments are classified as basic.

 Recognition and measurement
The company has chosen to apply the recognition and measurement principles in FRS102.

Financial instruments are recognised when the company becomes party to the contractual provisions of the instrument and derecognised when in the case of assets, the contractual rights to cash flows from the assets expire or substantially all the risks and rewards of ownership are transferred to another party, or in the case of liabilities, when the company’s obligations are discharged, expire or are cancelled.

Except for bank loans, such instruments are initially measured at transaction price, including transaction costs, and are subsequently carried at the undiscounted amount of the cash or other consideration expected to be paid or received, after taking account of impairment adjustments.

Bank loans are initially measured at transaction price, including transaction costs, and are subsequently carried at amortised cost using the effective interest method.


 

Bailey Holdings Limited

Notes to the Financial Statements

Year Ended 31 January 2020

Critical judgements and estimation uncertainty

In applying the company’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amounts of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical
experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods.

The following areas are where the Directors have applied judgement in the preparation of the financial statements:

Valuation of investment properties
As described within the accounting policies, the investment properties are held at the balance sheet date at their market value. The director has applied his professional knowledge of the sector, coupled with discussions with other professionals in evaluating opportunities in order to derive market values.

3	Staff numbers

The average number of persons employed by the company (excluding directors) during the year, was 0 (2019 - 0).

4	Tangible assets

	Plant and machinery  £	Total £
Cost or valuation
At 1 February 2019	259,314	259,314
At 31 January 2020	259,314	259,314
Depreciation
At 1 February 2019	111,873	111,873
Charge for the year	25,488	25,488
At 31 January 2020	137,361	137,361
Carrying amount
At 31 January 2020	121,953	121,953
At 31 January 2019	147,441	147,441

Bailey Holdings Limited

Notes to the Financial Statements

Year Ended 31 January 2020

5	Investment properties

	2020 £
At 1 February	4,826,942
Additions	841,595
Fair value adjustments	2,358,581
At 31 January	8,027,118

The investment property are subject to a Directors valuation. The fair value movement in the current year is based on observable movements in open market value.

6	Investments

	2020 £	2019 £
Investments in subsidiaries	1	1

Subsidiaries	£
Cost or valuation
At 1 February 2019 and 31 January 2020	1
Carrying amount
At 31 January 2020	1
At 31 January 2019	1

Details of undertakings

Details of the investments (including principal place of business of unincorporated entities) in which the company holds 20% or more of the nominal value of any class of share capital are as follows:

Undertaking	Registered office	Holding	Proportion of voting rights and shares held
			2020	2019
Subsidiary undertakings
Trebletime Limited	Venayr Goonearl, Scorrier, Redruth, Cornwall, TR16 5EB.	Ordinary	100%	100%
	England and Wales

The principal activity of Trebletime Limited is that of a dormant company.

Bailey Holdings Limited

Notes to the Financial Statements

Year Ended 31 January 2020

7

Debtors

	2020  £	2019  £
Trade debtors	18,670	46,064
Other debtors	19,330	6,285
	38,000	52,349

8

Creditors

Creditors: amounts falling due within one year

	Note	2020 £	2019  £
Due within one year
Loans and borrowings	9	272,931	192,573
Trade creditors		5,906	7,040
Corporation tax		83,744	105,586
Social security and other taxes		30,332	35,398
Other creditors		12,373	7,843
Accrued expenses		89,771	74,240
		495,057	422,680

Creditors: amounts falling due after more than one year

	Note	2020 £	2019 £
Due after one year
Loans and borrowings	9	2,610,671	2,210,827

Bailey Holdings Limited

Notes to the Financial Statements

Year Ended 31 January 2020

9	Loans and borrowings

	2020 £	2019 £
Current loans and borrowings
Bank borrowings	272,931	192,573

	2020 £	2019 £
Loans and borrowings due after one year
Bank borrowings	2,161,178	1,761,681
Other borrowings	449,493	449,146
	2,610,671	2,210,827

The bank loan is secured by a first legal charge over the investment property, a debenture over the other assets, a guarantee for £1.6m provided by RR Transport Limited, a connected undertaking, and a joint guarantee of £100k provided by MG Bailey and K Bailey, Directors.

The hire purchase obligations are secured against the assets to which they relate.

Included in the loans and borrowings is £868,992 (2018 - £1,016,150) which is due in more than five years.

Borrowings due after five years

The bank loan due in more than five years is subject to quarterly instalments, and attracts interest at 1.79% above the bank base rate.

10	Share capital

Allotted, called up and fully paid shares

	2020		2019
	No.	£	No.	£
Ordinary share capital of £1 each	2	2	2	2

Bailey Holdings Limited

Notes to the Financial Statements

Year Ended 31 January 2020

11	Related party transactions

Transactions with directors

The Directors are related parties by virtue of their ownership in the company.

The Directors have provided security of £100,000 in relation to debts due from the company to its bankers.

The Directors had a loan with the company in the year. This loan was unsecured and repayable on demand.

At the balance sheet date the amount due from the Directors was £5,985 (2019 - £nil) further to advances of £5,985 (2019 - £5,985) and repayments of £nil (2019 - £5,985).

Chartered Accountants' Report to the Board of Directors on the Preparation of the Unaudited Statutory Accounts of
Bailey Holdings Limited

Year Ended 31 January 2020

In order to assist you to fulfil your duties under the Companies Act 2006, we have prepared for your approval the accounts of Bailey Holdings Limited for the year ended 31 January 2020 as set out on pages 2 to 11 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 (ICAEW), we are subject to its ethical and other professional requirements which are detailed at
http://www.icaew.com/en/membership/regulations-standards-and-guidance/.

This report is made solely to the Board of Directors of Bailey Holdings Limited, as a body, in accordance with the terms of our engagement letter. Our work has been undertaken solely to prepare for your approval the accounts of Bailey Holdings Limited and state those matters that we have agreed to state to the Board of Directors of Bailey Holdings Limited, as a body, in this report in accordance with ICAEW Technical Release 07/16 AAF. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than Bailey Holdings Limited and its Board of Directors as a body for our work or for this report.

It is your duty to ensure that Bailey Holdings Limited has kept adequate accounting records and to prepare statutory accounts that give a true and fair view of the assets, liabilities, financial position and profit of Bailey Holdings Limited. You consider that Bailey Holdings Limited 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 accounts of Bailey Holdings Limited. 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 accounts.

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

Francis Clark LLP
Lowin House
Tregolls Road
Truro
Cornwall
TR1 2NA

2 November 2020