Suitcrown Limited - Accounts to registrar (filleted) - small 18.2

REGISTERED NUMBER: 01567721 (England and Wales)

UNAUDITED FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30 JUNE 2020

FOR

SUITCROWN LIMITED

Page

Company Information

1

Accountants' Report

2

Statement of Financial Position

3

to

4

Notes to the Financial Statements

5

to

9

DIRECTORS:

Mr J D Codling

Mrs S E Codling

SECRETARY:

Mrs S E Codling

REGISTERED OFFICE:

57 London Road

High Wycombe

Buckinghamshire

HP11 1BS

REGISTERED NUMBER:

01567721 (England and Wales)

ACCOUNTANTS:

Seymour Taylor Audit Limited

57 London Road

High Wycombe

Buckinghamshire

HP11 1BS

BANKERS:

Lloyds Bank plc

79 High Street

Chesham

Buckinghamshire

HP5 1DE

The following reproduces the text of the report prepared for the directors in respect of the company's annual unaudited financial statements. In accordance with the Companies Act 2006, the company is only required to file a Statement of Financial Position. Readers are cautioned that the Income statement and certain other primary statements and the Report of the Directors are not required to be filed with the Registrar of Companies.

In order to assist you to fulfil your duties under the Companies Act 2006, we have prepared for your approval the financial statements of Suitcrown Limited for the year ended 30 June 2020 which comprise the Income statement, Statement of Financial Position, Statement of Changes in Equity and the related notes 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 within the ICAEW's regulations and guidance at http://www.icaew.com/en/membership/regulations-standards-and-guidance.

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

It is your duty to ensure that Suitcrown Limited 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 loss of Suitcrown Limited. You consider that Suitcrown 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 financial statements of Suitcrown 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 financial statements.

Seymour Taylor Audit Limited

57 London Road

High Wycombe

Buckinghamshire

HP11 1BS

18 December 2020

FIXED ASSETS

Investment property

4

1,916,775

2,094,097

CURRENT ASSETS

Debtors

5

11,475

3,088

Investments

6

24,250

27,500

Cash at bank

36,761

47,427

72,486

78,015

CREDITORS

Amounts falling due within one year

7

87,138

80,103

NET CURRENT LIABILITIES

(14,652

)

(2,088

)

TOTAL ASSETS LESS CURRENT LIABILITIES

1,902,123

2,092,009

PROVISIONS FOR LIABILITIES

8

73,314

95,862

NET ASSETS

1,828,809

1,996,147

CAPITAL AND RESERVES

Called up share capital

9

384,755

384,755

Share premium

12,000

12,000

Fair value reserve

10

1,007,403

1,165,427

Retained earnings

424,651

433,965

SHAREHOLDERS' FUNDS

1,828,809

1,996,147

The company is entitled to exemption from audit under Section 477 of the Companies Act 2006 for the year ended 30 June 2020.

The members have not required the company to obtain an audit of its financial statements for the year ended 30 June 2020 in accordance with Section 476 of the Companies Act 2006.

The directors acknowledge their 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 Income statement has not been delivered.

The financial statements were approved by the Board of Directors and authorised for issue on 18 December 2020 and were signed on its behalf by:

Mr J D Codling - Director

1.	STATUTORY INFORMATION

Suitcrown Limited is a private company limited by shares and incorporated in England and Wales. The address of the company's registered office is 57 London Road, High Wycombe, Buckinghamshire, HP11 1BS. The principal place of business is Grubbins, Grubbins Lane, Speen, Princes Risborough, Bucks, HP27 0SE. The registered number is 01567721.

The presentation currency of these financial statements is Sterling (£), being the currency of the primary economic market in which the entity operates (its functional currency). All amounts in these financial statements have been rounded to the nearest pound unless stated otherwise.

The significant accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all years presented unless otherwise stated.

2.	ACCOUNTING POLICIES

Basis of preparing the financial statements

These financial statements have been prepared in accordance with the provisions of Section 1A "Small Entities" of Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" and the Companies Act 2006.

The financial statements have been prepared under the historical cost convention, modified to include certain items at fair value.

In light of the rapid global spread of the Coronavirus "COVID-19" in early 2020, the directors have reviewed and assessed the potential impact on the company over the next twelve months including the company's supply chains and capital resources. Following this, the directors consider there to be little impact on the company's ability to act as a going concern.

Although at the statement of financial position date the company had net current liabilities amounting to £14,652 (2019: £2,088), the company had significant net assets and is able to rely on the support of its directors. Based on information available at the date of approval and the directors' confirmation of continued support, the company continues to adopt the going concern basis in preparing these financial statements.

Turnover

Turnover represents the amount of rental income and recharged expenses accruing within the financial year, excluding value added tax.

Leasing incentives

The company from time to time provides incentives to enter into new lease agreements. These incentives may take the form of an initial period of the lease being rent free or at a reduced rent. In accordance with the standard accounting treatment for lease incentives, the rent free period or reduction in rent is allocated on a straight line basis over the full lease term or, where a lease commenced prior to the date of transition to Section 1A of FRS 102, up to the rent review date.

Investment property

Investment properties are properties which are held either to earn rental income or for capital appreciation or for both.

Investment properties are measured at cost upon initial recognition. The initial cost of the property comprises of its purchase price and any directly attributable expenditure.

Subsequently, where the fair value can be measured reliably, investment property is measured at fair value at each reporting date with changes in fair value recognised in the income statement in the period that they arise. No depreciation is provided in respect of investment properties applying the fair value model.

If a reliable measure of fair value can not be obtained for an item of investment property, the entity shall thereafter account for that item as a tangible fixed asset until a reliable measure of fair value becomes available.

Taxation

Tax on the profit or loss for the year comprises current and deferred tax. Tax is recognised in the income statement except to the extent that it relates to items recognised directly in equity or other comprehensive income, in which case it is recognised directly in equity or other comprehensive income.

Current tax is the expected tax payable or receivable on the taxable income or loss for the year, using tax rates enacted or substantively enacted at the statement of financial position date, and any adjustment to tax payable in respect of previous years.

Deferred tax

Deferred tax is provided on timing differences which arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in the financial statements. Differences between accumulated depreciation and tax allowances for the cost of a fixed asset, if and when all conditions for retaining the tax allowances have been met, are not provided for. Deferred tax is not recognised on permanent differences arising because certain types of income or expense are non-taxable or are disallowable for tax or because certain tax charges or allowances are greater or smaller than the corresponding income or expense.

Deferred tax is measured at the tax rate that is expected to apply to the reversal of the related difference, using tax rates enacted or substantively enacted at the statement of financial position date. Deferred tax balances are not discounted.

Unrelieved tax losses and other deferred tax assets are recognised only to the extent that is it probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits.

Financial instruments

The company has applied the provisions of Section 11 "Basic Financial Instruments" and Section 12 "Other Financial Instrument Issues" of FRS 102 to its financial statements.

Financial instruments are classified and accounted for, according to the substance of the contractual arrangement, as either financial assets, financial liabilities or equity instruments. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.

Investments

Listed investments are included in the statement of financial position at market value.

3.	EMPLOYEES AND DIRECTORS

The average number of employees during the year was 2 (2019 - 3 ) .

4.	INVESTMENT PROPERTY

Total

£

FAIR VALUE

At 1 July 2019

2,094,097

Revaluations

(177,322

)

At 30 June 2020

1,916,775

NET BOOK VALUE

At 30 June 2020

1,916,775

At 30 June 2019

2,094,097

The directors instructed Keith Martindale FRICS of Stream Partners Limited to carry out an independent professional valuation of all properties at 30 June 2020 and his total figure is reflected in the net book value at 30 June 2020 above. The professional valuation takes into account the fall in rental values and investment yields across the commercial investment property sector but the future impact COVID-19 will have on open market conditions remains unknown. The directors are hopeful, particularly in light of recent encouraging news surrounding COVID-19 vaccines, that this will be short term and that the property values will recover once businesses are able to resume normal trading.

In respect of the investment properties stated at valuation above, the comparable historical cost values, thus excluding all revaluations to date, are as follows:

2020

2019

£

£

Historical cost

835,552

835,552

5.

DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2020

2019

£

£

Trade debtors

11,475

3,088

6.	CURRENT ASSET INVESTMENTS

2020

2019

£

£

Listed investments

24,250

27,500

The fair value of listed investments is determined by reference to the quoted price for identical assets in an active market at the year end date.

7.

CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2020

2019

£

£

Trade creditors

8

160

Corporation tax

17,167

20,410

VAT

6,106

5,003

Other creditors

2,500

2,500

Directors' current accounts

20,000

-

Accruals and deferred income

41,357

52,030

87,138

80,103

8.	PROVISIONS FOR LIABILITIES

2020

2019

£

£

Deferred tax

Accelerated capital allowances

73,314

95,862

Deferred

tax

£

Balance at 1 July 2019

95,862

Credit to Income Statement during year

(22,548

)

Balance at 30 June 2020

73,314

9.	CALLED UP SHARE CAPITAL

Allotted, issued and fully paid:

Number:

Class:

Nominal

2020

2019

value:

£

£

21,500

Ordinary A

£1

21,500

21,500

263,255

Ordinary B

£1

263,255

263,255

100,000

Preference

£1

100,000

100,000

384,755

384,755

The preference shares are entitled to a fixed cumulative preferential cash dividend of 5 pence per annum on each share payable in two equal instalments on 1 January and 1 July each year.

The 'A' and 'B' shares are entitled to dividends as follows:-

1) an amount of profits up to and equivalent to but not exceeding the preference dividend multiplied by the nominal value of each issued 'A' and 'B' share shall be distributed amongst the holders of the 'A' shares and the 'B' shares but on the basis that each 'A' share has a nominal value equivalent to 1.4 'B' shares.

2) the balance of any profits (if any) shall be distributed amongst all shareholders on the basis that each 'A' share represents 1.4 'B' shares and 1.4 preference shares.

If the preference dividend is not paid it will accumulate from the due date and shall be a debt due by the company and be payable in priority to any other dividend.

On the winding up of the company the assets, after the payments of the liabilities, will be applied as follows:-

1) any arrears or accruals of the preference dividends to the holders of the preference shares.

2) the balance of the assets will be distributed in proportion to the amounts paid up or credited as paid up as such shares on the basis that each 'A' share represents 1.4 'B' shares and 1.4 preference shares.

Every member holding 'A' shares has seven votes for each share and every member holding 'B' shares and preference shares shall have five votes for each share.

Save as above all 'A' shares, 'B' shares and cumulative preference shares shall rank pari passu in all respects.

10.

RESERVES

Fair value reserve

£

At 1 July 2019

1,165,427

Revaluation of investment properties

(177,322

)

Revaluation of listed investments

(3,250

)

Deferred tax on revaluation of investment properties

22,426

Deferred tax on revaluation of listed investments

122

At 30 June 2020

1,007,403

The tax treatment of items included above is the recognition of the movement in the deferred tax liability which will be due on the sale of investment properties and listed investments.