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Registered number: 02492795
Caxtons Commercial Limited
Unaudited
Financial statements
Information for filing with the registrar
For the Year Ended 30 June 2020
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Caxtons Commercial Limited
Chartered Accountants' Report to the Board of Directors on the preparation of the Unaudited Statutory Financial Statements of Caxtons Commercial Limited for the Year Ended 30 June 2020
In order to assist you to fulfil your duties under the Companies Act 2006, we have prepared for your approval the financial statements of Caxtons Commercial Limited for the year ended 30 June 2020 which comprise the Balance Sheet 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 at https://www.icaew.com/regulation.
This report is made solely to the Board of Directors of Caxtons Commercial Limited, as a body, in accordance with the terms of our engagement letter dated 19 November 2018. Our work has been undertaken solely to prepare for your approval the financial statements of Caxtons Commercial Limited and state those matters that we have agreed to state to the Board of Directors of Caxtons Commercial Limited, as a body, in this report in accordance with ICAEW Technical Release TECH07/16AAF. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than Caxtons Commercial Limited and its Board of Directors, as a body, for our work or for this report.
It is your duty to ensure that Caxtons Commercial 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 profit of Caxtons Commercial Limited. You consider that Caxtons Commercial Limited is exempt from the statutory audit requirement for the year.
We have not been instructed to carry out an audit or review of the financial statements of Caxtons Commercial 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.
Kreston Reeves LLP
Chartered Accountants
37 St Margaret's Street
Canterbury
Kent
CT1 2TU
16 December 2020
Page 1
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Caxtons Commercial Limited
Registered number: 02492795
Balance Sheet
As at 30 June 2020
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Debtors: amounts falling due within one year
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Creditors: amounts falling due within one year
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Total assets less current liabilities
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Creditors: amounts falling due after more than one year
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Provisions for liabilities
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Capital redemption reserve
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Page 2
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Caxtons Commercial Limited
Registered number: 02492795
Balance Sheet (continued)
As at 30 June 2020
The directors consider that the company is entitled to exemption from audit under section 477 of the Companies Act 2006 and members have not required the company to obtain an audit for the year in question in accordance with section 476 of the Companies Act 2006.
The directors acknowledge their responsibilities for complying with the requirements of the Companies Act 2006 with respect to accounting records and the preparation of financial statements.
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 have been delivered in accordance with the provisions applicable to companies subject to the small companies regime.
The company has opted not to file the statement of comprehensive income in accordance with provisions applicable to companies subject to the small companies' regime.
The financial statements were approved and authorised for issue by the board and were signed on its behalf by:
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Caxtons Commercial Limited
Notes to the Financial Statements
For the Year Ended 30 June 2020
Caxtons Commercial Limited is a private company limited by shares which was incorporated in England and Wales.
The company's registered office is James Pilcher House, 49-50 Windmill Street, Gravesend, Kent, DA12 1BG.
The financial statements are presented in pound sterling, and rounded to the nearest pound.
2.Accounting policies
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Basis of preparation of financial statements
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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 preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires management to exercise judgment in applying the company's accounting policies.
The following principal accounting policies have been applied:
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 is measured as the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. The following criteria must also be met before revenue is recognised:
Rendering of services
Revenue from a contract to provide services is recognised in the period in which the services are provided in accordance with the stage of completion of the contract when all of the following conditions are satisfied:
∙the amount of revenue can be measured reliably;
∙it is probable that the company will receive the consideration due under the contract;
∙the stage of completion of the contract at the end of the reporting period can be measured reliably; and
∙the costs incurred and the costs to complete the contract can be measured reliably.
Page 4
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Caxtons Commercial Limited
Notes to the Financial Statements
For the Year Ended 30 June 2020
2.Accounting policies (continued)
Goodwill
Goodwill represents the difference between amounts paid on the cost of a business combination and the acquirer’s interest in the fair value of its identifiable assets and liabilities of the acquiree at the date of acquisition. Subsequent to initial recognition, goodwill is measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is amortised on a straight line basis to the Statement of Comprehensive Income over its useful economic life.
Other intangible assets
Intangible assets are initially recognised at cost. After recognition, under the cost model, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses.
All intangible assets are considered to have a finite useful life. If a reliable estimate of the useful life cannot be made, the useful life shall not exceed ten years.
Tangible fixed assets under the cost model are stated at historical cost less accumulated depreciation and any accumulated impairment losses. Historical cost includes expenditure that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management.
Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, using the straight-line method.
Depreciation is provided on the following basis:
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Short leasehold and improvements
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Over the length of the lease
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Computer and office equipment
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20% and 25% straight line
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The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.
Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in profit or loss.
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.
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Cash and cash equivalents
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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.
Page 5
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Caxtons Commercial Limited
Notes to the Financial Statements
For the Year Ended 30 June 2020
2.Accounting policies (continued)
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, loans to related parties and investments in ordinary shares.
Debt instruments (other than those wholly repayable or receivable within one year), including loans and other accounts receivable and payable, are initially measured at present value of the future cash flows and subsequently at amortised cost using the effective interest method. Debt instruments that are payable or receivable within one year, typically trade debtors and creditors, are measured, initially and subsequently, at the undiscounted amount of the cash or other consideration expected to be paid or received. However, if the arrangements of a short-term instrument constitute a financing transaction, like the payment of a trade debt deferred beyond normal business terms or in case of an out-right short-term loan that is not at market rate, the financial asset or liability is measured, initially at the present value of future cash flows discounted at a market rate of interest for a similar debt instrument and subsequently at amortised cost, unless it qualifies as a loan from a director in the case of a small company, or a public benefit entity concessionary loan.
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.
Grants are accounted under the accruals model as permitted by FRS 102. Grants relating to expenditure on tangible fixed assets are credited to profit or loss at the same rate as the depreciation on the assets to which the grant relates. The deferred element of grants is included in creditors as deferred income.
Grants of a revenue nature are recognised in the Statement of Comprehensive Income in the same period as the related expenditure.
Finance costs are charged to profit or loss 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.
Equity dividends are recognised when they become legally payable. Interim equity dividends are recognised when paid. Final equity dividends are recognised when approved by the shareholders at an annual general meeting.
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Operating leases: the company as lessee
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Rentals paid under operating leases are charged to profit or loss on a straight line basis over the lease term.
Page 6
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Caxtons Commercial Limited
Notes to the Financial Statements
For the Year Ended 30 June 2020
2.Accounting policies (continued)
Defined contribution pension plan
The company operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the company pays fixed contributions into a separate entity. Once the contributions have been paid the company has no further payment obligations.
The contributions are recognised as an expense in profit or loss when they fall due. Amounts not paid are shown in accruals as a liability in the Balance Sheet. The assets of the plan are held separately from the company in independently administered funds.
Interest income is recognised in profit or loss using the effective interest method.
All borrowing costs are recognised in profit or loss in the year in which they are incurred.
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Provisions for liabilities
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Provisions are made where an event has taken place that gives the company a legal or constructive obligation that probably requires settlement by a transfer of economic benefit, and a reliable estimate can be made of the amount of the obligation.
Provisions are charged as an expense to profit or loss in the year that the company becomes aware of the obligation, and are measured at the best estimate at the Balance Sheet date of the expenditure required to settle the obligation, taking into account relevant risks and uncertainties.
When payments are eventually made, they are charged to the provision carried in the Balance Sheet.
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Current and deferred taxation
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The tax expense for the year comprises current and deferred tax. Tax is recognised in profit or loss 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 balance sheet date in the countries where the company operates and generates income.
Deferred tax balances are recognised in respect of all timing differences that have originated but not reversed by the Balance Sheet date, except that:
∙The recognition of deferred tax assets is limited to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits; and
∙Any deferred tax balances are reversed if and when all conditions for retaining associated tax allowances have been met.
Deferred tax balances are not recognised in respect of permanent differences except in respect of business combinations, when deferred tax is recognised on the differences between the fair values of assets acquired and the future tax deductions available for them and the differences between the fair values of liabilities acquired and the amount that will be assessed for tax. Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the balance sheet date.
Page 7
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Caxtons Commercial Limited
Notes to the Financial Statements
For the Year Ended 30 June 2020
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The average monthly number of employees, including directors, during the year was 100 (2019 - 100).
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Charge for the year on owned assets
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Page 8
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Caxtons Commercial Limited
Notes to the Financial Statements
For the Year Ended 30 June 2020
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S/Term Leasehold Property
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Computer and office equipment
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Charge for the year on owned assets
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Page 9
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Caxtons Commercial Limited
Notes to the Financial Statements
For the Year Ended 30 June 2020
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Prepayments and accrued income
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Amounts recoverable on long term contracts
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Creditors: Amounts falling due within one year
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Other taxation and social security
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Accruals and deferred income
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Analysis of the maturity of loans is given below:
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Amounts falling due within one year
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Amounts falling due 1-2 years
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Amounts falling due 2-5 years
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Page 10
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Caxtons Commercial Limited
Notes to the Financial Statements
For the Year Ended 30 June 2020
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Charged to the profit or loss
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The provision for deferred taxation is made up as follows:
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Accelerated capital allowances
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Allotted, called up and fully paid
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15,996 (2019 - 13,330) Ordinary shares of £1 each
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1 (2019 - ) Ordinary A shares share of £1
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1 (2019 - 1) Ordinary B shares share of £1
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1 (2019 - 1) Ordinary C shares share of £1
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1 (2019 - 1) Ordinary D shares share of £1
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1 (2019 - 1) Ordinary E shares share of £1
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1 (2019 - 1) Ordinary F shares share of £1
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On 1 July 2019 the company declared a bonus share issue of 533 ordinary £1 shares for every 2,666 ordinary shares held, at a subscription price of £1 per ordinary share payable in full by capitalisation of reserves at a total cost of £2,665.
On 1 July, by virtue of Ordinary Resolution, 1 Ordinary share of £1 was re-classified as 1 Ordinary A share of £1.
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On 1 July 2019, the company issued 2 ordinary £1 shares at a consideration of £73 per share.
The company contributed into personal pension funds for the directors. The company also operates defined contribution pension schemes for the staff. The assets of the schemes are held separately from those of the company in independently administered funds. The pension cost and charge represents contributions payable by the company to the schemes and amounted to £129,725 (2019: £108,267). Contributions totalling £14,943 (2019: £17,617) were payable to the fund at the balance sheet date.
Page 11
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Caxtons Commercial Limited
Notes to the Financial Statements
For the Year Ended 30 June 2020
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Related party transactions
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During the year ended 30 June 2020, the company incurred expenses for marketing and consultancy totalling £9,191 (£11,098 in the year to 30 June 2019) with Langton Business Services, a business under the control of R F Roser. At 30 June 2020, the amount owed to Langton Business Service was £228 (£NIL at 30 June 2019).
Mr N W Chatterton is a director and shareholder of The Gravesend & District Real Estate Company Limited. During the year ended 30 June 2020, the company received income and commission totalling £215,571 (£202,986 in the year to 30 June 2019) from this company. At 30 June 2020, the amount owed from The Gravesend & District Real Estate Company Limited was £59,943 (£86,357 at 30 June 2019).
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Post balance sheet events - Coronavirus pandemic
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After the balance sheet date there has been volatility and uncertainty arising from the Coronavirus pandemic which may impact on the value of the company's assets and trading. The directors have taken all reasonable steps to mitigate the impact and have a reasonable expectation that the company will continue to trade for the foreseeable future.
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