Harleycrest Properties Limited - Period Ending 2020-06-30

Registration number: 03306934

Prepared for the registrar

Harleycrest Properties Limited

Annual Report and Unaudited Financial Statements

for the Year Ended 30 June 2020

Harleycrest Properties Limited

(Registration number: 03306934)
Balance Sheet as at 30 June 2020

	Note	2020  £	2019  £
Fixed assets
Tangible assets	4	960	1,206
Investment property	5	2,364,895	2,365,895
		2,365,855	2,367,101
Current assets
Debtors	6	20,424	2,289
Cash at bank and in hand		265,716	178,317
		286,140	180,606
Creditors: Amounts falling due within one year	7	(43,128)	(49,355)
Net current assets		243,012	131,251
Total assets less current liabilities		2,608,867	2,498,352
Creditors: Amounts falling due after more than one year	7	(226,287)	(201,116)
Deferred tax liabilities		(147,144)	(155,549)
Net assets		2,235,436	2,141,687
Capital and reserves
Called up share capital		315,202	315,202
Share premium reserve		488,331	488,331
Revaluation reserve		720,241	720,241
Profit and loss account		711,662	617,913
Total equity		2,235,436	2,141,687

For the financial year ending 30 June 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 in accordance with the special provisions relating to companies subject to the small companies regime within Part 15 of the Companies Act 2006.

These financial statements have been delivered in accordance with the provisions applicable to companies subject to the small companies regime and the option not to file the Profit and Loss Account has been taken.

Approved and authorised by the Board on 17 February 2021 and signed on its behalf by:
 

 

J R P Manser
Director

The notes on pages 2 to 6 form an integral part of these financial statements.
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Harleycrest Properties Limited

Notes to the Unaudited Financial Statements for the Year Ended 30 June 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:
542 London Road
Isleworth
Middlesex
TW7 4EP

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 Section 1A - 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' and the Companies Act 2006.

Basis of preparation

These financial statements have been prepared using the historical cost convention except for, where disclosed in these accounting policies, certain items that are shown at fair value.

The presentational currency of the financial statements is Pounds Sterling, being the functional currency of the primary economic environment in which the company operates. Monetary amounts in these financial statements are rounded to the nearest Pound.

Going concern

After reviewing the company's current forecasts and projections, together with the facilities available to the company, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. The company therefore continues to adopt the going concern basis in preparing its financial statements. This statement is made subject to all of the potential implications of the current COVID-19 outbreak on the company’s trade, employeees, customers, suppliers and the wider economy, as these are difficult to evaluate.

Revenue recognition

Turnover comprises the fair value of the rents received or receivable in respect of the investment properties in the ordinary course of the company’s activities. Turnover is shown net of sales/value added tax, returns, rebates and discounts and after eliminating sales within the company.

The company recognises revenue when:
The amount of revenue can be reliably measured;
it is probable that future economic benefits will flow to the entity;
and specific criteria have been met for each of the company's activities.

Government grants

Government grants are recognised based on the accrual model and are measured at the fair value of the asset received or receivable. Grants are classified as relating either to revenue or to assets. Grants relating to revenue are recognised in income over the period in which the related costs are recognised. Grants relating to assets are recognised over the expected useful life of the asset. Where part of a grant relating to an asset is deferred, it is recognised as deferred income.

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Harleycrest Properties Limited

Notes to the Unaudited Financial Statements for the Year Ended 30 June 2020

Tax

The tax expense for the period comprises current and deferred tax. Tax is recognised in the profit and loss account, except that a charge attributable to an item of income or expense recognised as other comprehensive income is also recognised directly in other comprehensive income.

The current 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 temporary differences arising between the tax bases of assets and liabilities and their carrying amounts in the financial statements and on unused tax losses or tax credits in the company. 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.

Tangible assets

Tangible assets are stated in the statement of financial position 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 & machinery	25% reducing balance
Computer equipment	25% reducing balance
Fixtures & fittings	15% reducing balance

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.

Borrowings

Interest-bearing borrowings are initially recorded at fair value, net of transaction costs. Interest-bearing borrowings are subsequently carried at amortised cost, with the difference between the proceeds, net of transaction costs, and the amount due on redemption being recognised as a charge to the Profit and Loss Account over the period of the relevant borrowing.

Interest expense is recognised on the basis of the effective interest method and is included in interest payable and similar charges.

Borrowings are classified as current liabilities unless the company has an unconditional right to defer settlement of the liability for at least twelve months after the reporting date.

Leases

Leases in which substantially all the risks and rewards of ownership are retained by the lessor are classified as operating leases. Payments made under operating leases are charged to profit or loss on a straight-line basis over the period of the lease.

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Harleycrest Properties Limited

Notes to the Unaudited Financial Statements for the Year Ended 30 June 2020

Share capital

Ordinary shares are classified as equity. Equity instruments are measured at the fair value of the cash or other resources received or receivable, net of the direct costs of issuing the equity instruments. If payment is deferred and the time value of money is material, the initial measurement is on a present value basis.

Dividends

Dividend distribution to the company’s shareholders is recognised as a liability in the financial statements in the reporting period in which the dividends are declared.

Financial instruments

Classification
Financial instruments are classified and accounted for according to the substance of the contractual arrangement, as 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. Where shares are issued, any component that creates a financial liability of the company is presented as a liability on the balance sheet. The corresponding dividends relating to the liability component are charged as interest expenses in the profit and loss account.

 Recognition and measurement
All financial assets and liabilities are initially measured at transaction price (including transaction costs), except for those financial assets classified as at fair value through profit or loss, which are initially measured at fair value (which is normally the transaction price excluding transaction costs), unless the arrangement constitutes a financing transaction. If an arrangement constitutes a financing transaction, the financial asset or financial liability is measured at the present value of the future payments discounted at a market rate of interest for a similar debt instrument.
 

3

Staff numbers

The average number of persons employed by the company (including directors) during the year, was as follows:

	2020  No.	2019  No.
Average number of employees	2	2

4

Tangible assets

	Furniture, fittings and equipment  £
Cost or valuation
At 1 July 2019	7,842
At 30 June 2020	7,842
Depreciation
At 1 July 2019	6,636
Charge for the year	246
At 30 June 2020	6,882
Carrying amount
At 30 June 2020	960
At 30 June 2019	1,206

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Harleycrest Properties Limited

Notes to the Unaudited Financial Statements for the Year Ended 30 June 2020

5

Investment properties

	£
At 1 July 2019	2,365,895
Disposals	(1,000)
At 30 June 2020	2,364,895

At 30 June 2020, the Investment properties were valued on an open market basis by the directors.

There has been no valuation of investment property by an independent valuer.

The historical cost of the investment properties is £1,590,451 (2019: £1,591,451).

6

Debtors

	Note	2020  £	2019  £
Amounts owed by related parties	9	19,252	-
Other debtors		-	1,000
Prepayments		1,172	1,289
		20,424	2,289

7

Creditors

	Note	2020  £	2019  £
Due within one year
Loans and borrowings	8	19,605	26,416
Accrued expenses		2,500	3,100
Corporation tax liability		21,023	19,839
		43,128	49,355

	Note	2020 £	2019 £
Due after one year
Loans and borrowings	8	188,287	201,116
Other non-current financial liabilities		38,000	-
		226,287	201,116

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Harleycrest Properties Limited

Notes to the Unaudited Financial Statements for the Year Ended 30 June 2020

8

Loans and borrowings

	Note	2020 £	2019 £
Current loans and borrowings
Bank borrowings		19,605	26,380
Other borrowings	9	-	36
		19,605	26,416

	2020 £	2019 £
Non-current loans and borrowings
Bank borrowings	188,287	201,116

The bank borrowings are secured on the investment properties.

9

Related party transactions

Summary of transactions with other related parties

At 30 June 2020 the company was owed £19,252 by (2019: owed £36 to) a director in the form of a director's loan account. No interest was charged on this balance and there are no fixed repayment terms.
 

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