Old Shoreham Road Ltd - Accounts to registrar (filleted) - small 18.2

REGISTERED NUMBER: 11814158 (England and Wales)

UNAUDITED FINANCIAL STATEMENTS

FOR THE PERIOD 7 FEBRUARY 2019 TO 27 FEBRUARY 2020

FOR

OLD SHOREHAM ROAD LTD

Page

Company Information

1

Balance Sheet

2

Notes to the Financial Statements

3

DIRECTOR:

E T Leone

REGISTERED OFFICE:

The Old Casino

28 Fourth Avenue

Hove

East Sussex

BN3 2PJ

REGISTERED NUMBER:

11814158 (England and Wales)

ACCOUNTANTS:

Cardens Accountants LLP

The Old Casino

28 Fourth Avenue

Hove

East Sussex

BN3 2PJ

CURRENT ASSETS

Stocks

3

1,077,803

Debtors

4

26,250

Cash at bank

808

1,104,861

CREDITORS

Amounts falling due within one year

5

59,322

NET CURRENT ASSETS

1,045,539

TOTAL ASSETS LESS CURRENT LIABILITIES

1,045,539

CAPITAL AND RESERVES

Called up share capital

1,101,000

Retained earnings

(55,461

)

1,045,539

The company is entitled to exemption from audit under Section 477 of the Companies Act 2006 for the period ended 27 February 2020.

The members have not required the company to obtain an audit of its financial statements for the period ended 27 February 2020 in accordance with Section 476 of the Companies Act 2006.

The director acknowledges his 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 director and authorised for issue on 5 May 2021 and were signed by:

E T Leone - Director

1.	ACCOUNTING POLICIES

Basis of preparing the financial statements

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" including the provisions of Section 1A "Small Entities" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention.

These financial statements have been prepared on the basis that the company will continue to be a going concern, please refer to the accounting basis note for further information.

If this assumption is not considered valid, then adjustments would need to be made to reduce the value of assets to their recoverable amount, to provide for any further liabilities that might arise and to reclassify fixed assets and long term liabilities as current assets and liabilities.

Stocks

Stocks are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items.

Taxation

Taxation for the period comprises current and deferred tax. Tax is recognised in the Income Statement, except to the extent that it relates to items recognised in other comprehensive income or directly in equity.

Current or deferred taxation assets and liabilities are not discounted.

Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date.

Deferred tax

Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date.

Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the period end and that are expected to apply to the reversal of the timing difference.

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

2.	EMPLOYEES AND DIRECTORS

The average number of employees during the period was NIL.

3.

STOCKS

£

Stocks

1,077,803

4.

DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

£

Amounts owed by group undertakings

26,250

5.

CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

£

Amounts owed to associates

51,284

Directors' loan accounts

5,038

Accrued expenses

3,000

59,322

6.	ACCOUNTING BASIS

As stated in the accounting policy note, these financial statements have been prepared on the basis that the company will continue to be a going concern.

The going concern basis has only been used on the basis that the ordinary share capital of the company will be sold to either the preference shareholders or a property developer. The director is in the process of sourcing and negotiating a buyer.

There is uncertainty over the going concern as the company will be liquidated if a buyer is not secured. This is due to the company not being able to secure the required finance to complete the project.

If the going concern is not deemed valid, the stock will need to be reclassified and revalued. A RICS valuation completed in February 2021 indicates an achievable value of £600,000 for the land and property held.

7.	DIRECTORS' ADVANCES, CREDITS AND GUARANTEES

During the period Mr E T Leone introduced a loan to the company. As at 28 February 2020 the company owed him £5,038. The balance includes a business mileage provision included at the HMRC approved rates, totalling £4,802.

This balance represented the maximum amount outstanding during the period and the loan is interest free and repayable on demand.

8.	RELATED PARTY DISCLOSURES

Leone Developments South East Ltd, the parent company, owned 100% by Mr E T Leone:

During the period, Leone Developments South East Ltd subscribed to 25,250 preference shares and 1,000,000 ordinary shares in the company. The outstanding balance of £26,250 owed to Old Shoreham Road Ltd is interest free and repayable on demand. As at the reporting date, the director intends to cancel the 25,250 unpaid preference shares.

Leone Developments Limited, owned 100% by Mr E T Leone:

During the period, Old Shoreham Road Ltd advanced Leone Developments Limited £200,000, of which £32,563 has been repaid. Leone Developments Limited was contracted as the principle contractor to undertake all principle contract duties on site, on behalf of Old Shoreham Road Limited, totalling £248,000. £128,621 of this is outstanding for payment at the balance sheet date. In addition recharges totalling £90,100 were made by Leone Developments Limited to the company, £48,600 relating to project management costs and £41,500 relating to administrative costs. All transactions were undertaken on a commercial arms length basis. The outstanding balance at the balance sheet date of £51,284 owed to Leone Developments Limited is interest free and repayable on demand.

9.	POST BALANCE SHEET EVENTS

After the balance sheet date but prior to the approval of these accounts an outbreak of the COVID-19 virus

occurred causing a global pandemic recognised by the World Health Organisation (WHO).

The effect of UK Government measures to limit the spread of the virus have been widespread, urging people to remain at home wherever possible, including to work from home if available and to undertake "social distancing" measures. Part of the government action has been to order businesses where people gather socially to close temporarily.

This has effected the company ability of sourcing external financing which will be required to complete the current development site.

The directors continue to monitor the situation as it rapidly changes and will react to further developments.

10.	ULTIMATE CONTROLLING PARTY

The controlling party is Leone Developments South East Ltd.

This was by virtue of their 100% holding of the issued ordinary share capital.