Fortdene Limited - Accounts to registrar (filleted) - small 18.2
Fortdene Limited - Accounts to registrar (filleted) - small 18.2
| REGISTERED NUMBER: |
| FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MAY 2020 |
| FOR |
| FORTDENE LIMITED |
| FORTDENE LIMITED (REGISTERED NUMBER: 03043871) |
| CONTENTS OF THE FINANCIAL STATEMENTS |
| for the year ended 31 May 2020 |
| Page |
| Company Information | 1 |
| Statement of Financial Position | 2 |
| Notes to the Financial Statements | 3 |
| FORTDENE LIMITED |
| COMPANY INFORMATION |
| for the year ended 31 May 2020 |
| DIRECTORS: |
| REGISTERED OFFICE: |
| REGISTERED NUMBER: |
| AUDITORS: |
| Century House |
| Wargrave Road |
| Henley-on-Thames |
| RG9 2LT |
| FORTDENE LIMITED (REGISTERED NUMBER: 03043871) |
| STATEMENT OF FINANCIAL POSITION |
| 31 May 2020 |
| 2020 | 2019 |
| Notes | £ | £ | £ | £ |
| FIXED ASSETS |
| Investments | 4 |
| Investment property | 5 |
| CURRENT ASSETS |
| Debtors | 6 |
| Cash at bank |
| CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
7 |
| NET CURRENT LIABILITIES | ( |
) | ( |
) |
| TOTAL ASSETS LESS CURRENT LIABILITIES |
| CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR |
8 |
( |
) |
( |
) |
| PROVISIONS FOR LIABILITIES | 10 | ( |
) | ( |
) |
| NET ASSETS |
| CAPITAL AND RESERVES |
| Called up share capital | 11 |
| Fair value reserve | 12 | ( |
) | ( |
) |
| Retained earnings |
| SHAREHOLDERS' FUNDS |
| 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 |
| FORTDENE LIMITED (REGISTERED NUMBER: 03043871) |
| NOTES TO THE FINANCIAL STATEMENTS |
| for the year ended 31 May 2020 |
| 1. | Statutory information |
| Fortdene Limited is a |
| The presentation currency of the financial statements is the Pound Sterling (£). |
| 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 as modified to include investment properties at fair value. |
| Preparation of consolidated financial statements |
| The financial statements contain information about Fortdene Limited as an individual company and do not contain consolidated financial information as the parent of a group. The company is exempt under Section 399(2A) of the Companies Act 2006 from the requirements to prepare consolidated financial statements. |
| Related party exemption |
| The company has taken advantage of the exemption, under the terms of Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland', not to disclose related party transactions with wholly owned subsidiaries within the group. |
| Significant judgements |
| In applying the company's accounting policies the directors are required to make judgements in determining the carrying amounts of assets and liabilities. |
| The only critical judgement made by the directors was in assessing the market value of the investment properties. |
| Turnover |
| Turnover represents operating lease income from investment properties which is recognised in profit or loss on a straight line basis over the lease term. Lease incentives are spread over the lease term. |
| Investments in subsidiaries |
| Investments in subsidiary undertakings are recognised at cost. |
| Investment property |
| Investment properties are initially measured at cost which comprises the purchase price and any directly attributable expenditure. Investment properties for which fair value can be measured reliably without undue cost or effort are remeasured at fair value at each reporting date with changes in fair value recognised in profit or loss. |
| Fair value is determined by the directors by reference to reports procured from independent qualified valuers who use the investment method of valuation. This approach involves applying market-derived capitalisation yields to current and market-derived future income streams with appropriate adjustments for income voids arising from vacancies or rent-free periods. These capitalisation yields and future income streams are derived from comparable property and leasing transactions and are considered to be key inputs in the valuation. Where such reports are not available the directors prepare the valuation internally using the same methodology. |
| FORTDENE LIMITED (REGISTERED NUMBER: 03043871) |
| NOTES TO THE FINANCIAL STATEMENTS - continued |
| for the year ended 31 May 2020 |
| 2. | Accounting policies - continued |
| Financial instruments |
| Financial instruments are recognised when the company becomes party to the contractual provisions of the financial instrument. The company holds only basic financial instruments which comprise cash and cash equivalents, trade and other debtors, trade and other creditors and loans. |
| Cash and cash equivalents - these include cash in hand and deposits held with banks. |
| Trade and other debtors - these are initially recognised at the transaction price and are subsequently measured at amortised cost using the effective interest method, less any provision for impairment. Amounts that are receivable within one year are measured at the undiscounted amount expected to be receivable, net of any impairment. |
| Trade and other creditors and loans - these are initially measured at the transaction price and are subsequently measured at amortised cost using the effective interest method. Amounts that are payable within one year are measured at the undiscounted amount expected to be payable. |
| Taxation |
| Taxation for the year comprises current and deferred tax. Tax is recognised in the Income Statement. |
| 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 that have been enacted or substantively enacted by the statement of financial position date. |
| Deferred tax |
| Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the statement of financial position 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 year end and that are expected to apply to the reversal of the timing difference. Deferred tax on investment properties held at fair value is measured using the rates and allowances that would apply to the sale of the assets. |
| 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. |
| FORTDENE LIMITED (REGISTERED NUMBER: 03043871) |
| NOTES TO THE FINANCIAL STATEMENTS - continued |
| for the year ended 31 May 2020 |
| 2. | Accounting policies - continued |
| Going concern |
| The company owns a portfolio of commercial properties tenanted by quality tenants and financed in the main by bank loans repayable by instalments. The £2,693,357 (2019 - £3,169,459) owed to group undertakings is due to Prestigic Holdings Limited who has confirmed that it will continue to support the company and will not require repayment of these funds in the foreseeable future. |
| The coronavirus pandemic of 2020 and 2021 has affected the company's ability to collect all of the rents due. Arrangements have been made with certain tenants to waive rents in the short term and where these arrangements affect rents due prior to 31 May 2020 appropriate adjustments have been made in these financial statements. Currently all tenants are now paying their rent as it falls due. The total amount waived was £85,250. |
| It is likely that the pandemic may have adversely affected property values in certain sectors but the directors are confident that the portfolio is relatively robust. |
| In February 2021 the company disposed of a property in Salisbury for net proceeds of £2,046,884, which was in excess of the valuation at 31 May 2020. In accordance with the terms of the loan facility agreement £1,550,000 of these proceeds were used to reduce the loan from Santander UK PLC. |
| The remaining loan from Santander UK PLC, which was due for repayment in March 2021 was refinanced with Santander UK PLC for a further two years to May 2023. |
| As a consequence the directors believe that the company is well placed to manage its business risks successfully. The directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Thus they continue to adopt the going concern basis of accounting in preparing the annual financial statements. |
| 3. | Employees and directors |
| The average number of employees during the year was |
| 4. | Fixed asset investments |
| Shares in |
| group |
| undertakings |
| £ |
| Cost |
| At 1 June 2019 |
| and 31 May 2020 |
| Net book value |
| At 31 May 2020 |
| At 31 May 2019 |
| FORTDENE LIMITED (REGISTERED NUMBER: 03043871) |
| NOTES TO THE FINANCIAL STATEMENTS - continued |
| for the year ended 31 May 2020 |
| 5. | Investment property |
| Total |
| £ |
| Fair value |
| At 1 June 2019 |
| Additions |
| Revaluations | (594,309 | ) |
| At 31 May 2020 |
| Net book value |
| At 31 May 2020 |
| At 31 May 2019 |
| The investment properties held at 31 May 2020 were valued as at that date at £14,079,250 (2019 - £14,653,000). The properties were valued by Adrian Goldsmith, a director, on an open market value basis. |
| The original cost of the properties was £15,201,588 (2019 - £15,181,029). |
| Fair value at 31 May 2020 is represented by: |
| £ |
| Valuation in 2011 | 623,429 |
| Valuation in 2012 | (1,621,320 | ) |
| Valuation in 2013 | 601,585 |
| Valuation in 2014 | 202,510 |
| Valuation in 2015 | 174,507 |
| Valuation in 2016 | 74,118 |
| Valuation in 2017 | 573,158 |
| Valuation in 2018 | (488,064 | ) |
| Valuation in 2019 | (667,952 | ) |
| Valuation in 2020 | (594,309 | ) |
| Cost | 15,201,588 |
| 14,079,250 |
| 6. | Debtors: amounts falling due within one year |
| 2020 | 2019 |
| £ | £ |
| Trade debtors |
| Other debtors |
| Corporation tax recoverable |
| VAT recoverable |
| Prepayments and accrued income |
| FORTDENE LIMITED (REGISTERED NUMBER: 03043871) |
| NOTES TO THE FINANCIAL STATEMENTS - continued |
| for the year ended 31 May 2020 |
| 7. | Creditors: amounts falling due within one year |
| 2020 | 2019 |
| £ | £ |
| Bank loans |
| Other loans |
| Trade creditors |
| Corporation tax |
| Other creditors |
| Amounts owed to group undertakings |
| Amounts owed to related parties |
| Accruals and deferred income |
| The amounts owed to group undertakings are unsecured and have no fixed repayment terms. |
| 8. | Creditors: amounts falling due after more than one year |
| 2020 | 2019 |
| £ | £ |
| Bank loans - amounts falling |
| due within one to two years | 64,000 | 5,114,400 |
| Bank loans - amounts falling |
| due within two to five years | 1,706,000 | 1,770,000 |
| Other loans - amounts falling |
| due within one to two years | 74,815 | 71,001 |
| Other loans - amounts falling |
| due within two to five years | 243,238 | 230,835 |
| Other loans - amounts falling |
| due after more than five years | 354,687 | 444,525 |
| Amounts falling due in more than five years: |
| Repayable by instalments |
| Other loans - amounts falling |
| due after more than five years | 354,687 | 444,525 |
| 354,687 | 444,525 |
| FORTDENE LIMITED (REGISTERED NUMBER: 03043871) |
| NOTES TO THE FINANCIAL STATEMENTS - continued |
| for the year ended 31 May 2020 |
| 9. | Secured debts |
| The following secured debts are included within creditors: |
| 2020 | 2019 |
| £ | £ |
| Bank loans |
| Other loans |
| The bank and other loans are secured by way of fixed charges over the company's investment properties and by floating charges over all of the company's assets. |
| The bank loans are secured by way of a fixed charge over various of the company's investment properties in favour of: |
| Santander UK PLC 28 September 2017. |
| The other loans are secured by way of a fixed charge over various of the company's investment properties in favour of: |
| Yorkshire Building Society: |
| 10 June 2016 negative pledge over 3 Union Street, Swansea SA1 1PJ. |
| 17 March 2015 negative pledge over Unit A10 Riverview, Stockport SK4 3GN |
| 16 December 2013 negative pledge over 62 Commercial Street, Hereford HR1 2DJ. |
| Handelsbanken plc: |
| 13 February 2019 negative pledge over 6/7 The Square, Pangbourne. |
| 13 February 2019 negative pledge over Flats 1-3, 59-60 Dudley Street, Wolverhampton. |
| 13 February 2019 negative pledge over Bohunt Manor, Portsmouth Road, Liphook. |
| 15 February 2019 negative pledge over basement and ground floor, 69 High Street, Arbroath |
| 10. | Provisions for liabilities |
| 2020 | 2019 |
| £ | £ |
| Deferred tax | 201,363 | 97,543 |
| Deferred |
| tax |
| £ |
| Balance at 1 June 2019 |
| Transfer from profit and loss | 103,820 |
| account |
| Balance at 31 May 2020 |
| The provision represents tax on accelerated capital allowances and the estimated tax liability on the revaluation uplift on investment properties. |
| FORTDENE LIMITED (REGISTERED NUMBER: 03043871) |
| NOTES TO THE FINANCIAL STATEMENTS - continued |
| for the year ended 31 May 2020 |
| 11. | Called up share capital |
| Allotted, issued and fully paid: |
| Number: | Class: | Nominal | 2020 | 2019 |
| value: | £ | £ |
| Ordinary | £1 | 200 | 200 |
| 12. | Reserves |
| Fair |
| value |
| reserve |
| £ |
| At 1 June 2019 | ( |
) |
| Fair value revision during the year | (594,309 | ) |
| At 31 May 2020 | ( |
) |
| 13. | Disclosure under Section 444(5B) of the Companies Act 2006 |
| The Report of the Auditors was unqualified. |
| for and on behalf of |
| 14. | Contingent liabilities |
| The company is included in a group registration for VAT purposes and is therefore jointly and severally liable for all other group companies' unpaid debts in this connection, amounting to £103,656 (2019 - £119,570) at 31 May 2020. |
| 15. | Post balance sheet events |
| On 18 February 2021 the company disposed of a property in Salisbury for net proceeds of £2,046,884, which was in excess of the valuation at 31 May 2020. In accordance with the terms of the loan facility agreement £1,550,000 of these proceeds were used to reduce the loan from Santander UK PLC. |
| The remaining loan from Santander UK PLC was refinanced with Santander UK PLC for a further two years to 11 May 2023. |
| 16. | Ultimate controlling party |
| Throughout the year the company was controlled by its holding company Prestigic Holdings Limited, the ultimate owner is Adrian Goldsmith. |