Sean Lawson Land Limited - Period Ending 2020-09-30

Sean Lawson Land Limited

Contents

Balance Sheet	1
Notes to the Unaudited Financial Statements	2 to 8

Sean Lawson Land Limited

(Registration number: 04342519)
Balance Sheet as at 30 September 2020

	Note	2020 £	2019 £
Fixed assets
Intangible assets	4	13,667	15,667
Tangible assets	5	7,374,852	7,285,376
		7,388,519	7,301,043
Current assets
Stocks	6	94,925	104,216
Debtors	7	86,125	83,034
Cash at bank and in hand		609,082	386,954
		790,132	574,204
Creditors: Amounts falling due within one year	8	(2,825,880)	(837,800)
Net current liabilities		(2,035,748)	(263,596)
Total assets less current liabilities		5,352,771	7,037,447
Creditors: Amounts falling due after more than one year	8	(1,568,005)	(3,596,788)
Provisions for liabilities		(167,167)	(142,003)
Net assets		3,617,599	3,298,656
Capital and reserves
Called up share capital	9	100	100
Revaluation reserve		1,451,910	1,357,100
Profit and loss account		2,165,589	1,941,456
Shareholders' funds		3,617,599	3,298,656

For the financial year ending 30 September 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 28 April 2021 and signed on its behalf by:
 

.........................................

S Lawson
Director

Sean Lawson Land Limited

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

1	General information

The company is a private company limited by share capital incorporated in United Kingdom and the company registration number is 04342519.

The address of its registered office is:
26 South St Mary's Gate
Grimsby
N E Lincs
DN31 1LW

The principal place of business is:
87-91 Eastgate
Louth
Lincolnshire
LN11 9PL

These financial statements were authorised for issue by the Board on 28 April 2021.

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 that as disclosed in the accounting policies certain items are shown at fair value.

The financial statements have been prepared to the nearest whole pound.

The financial statements have been prepared in sterling and are rounded to the nearest pound.

Going concern

The financial statements have been prepared on a going concern basis.Specifically in connection with the current economic climate, the directors have considered the impact of COVID-19 on the business and they are satisfied that the company has sufficient financial headroom to continue trading for at least the next twelve months. For this reason the financial statements have been prepared on a going concern basis.

Revenue recognition

Turnover comprises the fair value of the consideration received or receivable for the sale of goods and provision of services in the ordinary course of the company’s activities. Turnover is shown net of sales/value added tax, returns, rebates and discounts.

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.

Sean Lawson Land Limited

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

Foreign currency transactions and balances

Transactions in foreign currencies are initially recorded at the functional currency rate prevailing at the date of the transaction. Monetary assets and liabilities denominated in foreign currencies are retranslated into the respective functional currency of the entity at the rates prevailing on the reporting period date. Non-monetary items carried at fair value that are denominated in foreign currencies are retranslated at the rate on the date when the fair value is re-measured.

Non-monetary items measured in terms of historical cost in a foreign currency are not retranslated.

Tax

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

The current income 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 income 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 income 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
Fixtures and fittings	25% straight line
Motor vehicles	15% reducing balance

Investment property

The company's properties are held for long-term investment. Investment properties are accounted for in accordance with FRS102 1A as follows.

No depreciation is provided in respect of the investment properties and they are revalued when necessary. The surplus or deficit on revaluation is transferred to the fair value reserve unless a deficit below original cost, or it's reversal on an individual property is expected to be permanent, in which case it is recognised in the profit and loss account for the year.

This treatment may be a departure from the requirements of the Companies Act concerning the depreciation of fixed assets. However, these properties are not held for consumption but for investment and the directors consider that systematic annual depreciation would be inappropriate. The accounting policy adopted is therefore necessary for the financial statements to give a true and fair view. Depreciation or amortisation is only one of the many factors reflected in the annual valuation and the amount which might otherwise have been shown cannot be separately identified or quantified.

Sean Lawson Land Limited

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

Goodwill

Goodwill arising on the acquisition of an entity represents the excess of the cost of acquisition over the company’s interest in the net fair value of the identifiable assets, liabilities and contingent liabilities of the entity recognised at the date of acquisition. Goodwill is initially recognised as an asset at cost and is subsequently measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is held in the currency of the acquired entity and revalued to the closing rate at each reporting period date. Goodwill is amortised over its useful life, which shall not exceed ten years if a reliable estimate of the useful life cannot be made.

Amortisation

Amortisation is provided on intangible assets so as to write off the cost, less any estimated residual value, over their useful life as follows:

Asset class	Amortisation method and rate
Luck of Louth Goodwill	Straight line over 10 years

Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost is determined using the first-in, first-out (FIFO) method.

The cost of finished goods and work in progress comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the inventories to their present location and condition. At each reporting date, stocks are assessed for impairment. If stocks are impaired, the carrying amount is reduced to its selling price less costs to complete and sell; the impairment loss is recognised immediately 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 are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessee.

Assets held under finance leases are recognised at the lower of their fair value at inception of the lease and the present value of the minimum lease payments. These assets are depreciated on a straight-line basis over the shorter of the useful life of the asset and the lease term. The corresponding liability to the lessor is included in the Balance Sheet as a finance lease obligation.

Lease payments are apportioned between finance costs in the Profit and Loss Account and reduction of the lease obligation so as to achieve a constant periodic rate of interest on the remaining balance of the liability.

3	Staff numbers

The average number of persons employed by the company (including directors) during the year, was 10 (2019 - 10).

Sean Lawson Land Limited

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

4	Intangible assets

	Goodwill  £	Total £
Cost or valuation
At 1 October 2019	17,667	17,667
At 30 September 2020	17,667	17,667
Amortisation
At 1 October 2019	2,000	2,000
Amortisation charge	2,000	2,000
At 30 September 2020	4,000	4,000
Carrying amount
At 30 September 2020	13,667	13,667
At 30 September 2019	15,667	15,667

5	Tangible assets

	Land and buildings £	Furniture, fittings and equipment  £	Motor vehicles  £	Total £
Cost or valuation
At 1 October 2019	7,237,168	23,572	47,550	7,308,290
Revaluations	117,049	-	-	117,049
Additions	-	12,500	-	12,500
Disposals	(27,236)	-	-	(27,236)
At 30 September 2020	7,326,981	36,072	47,550	7,410,603
Depreciation
At 1 October 2019	-	11,235	11,679	22,914
Charge for the year	-	7,456	5,381	12,837
At 30 September 2020	-	18,691	17,060	35,751
Carrying amount
At 30 September 2020	7,326,981	17,381	30,490	7,374,852
At 30 September 2019	7,237,168	12,337	35,871	7,285,376

Included within the net book value of land and buildings above is £7,326,981 (2019 - £7,237,168) in respect of freehold land and buildings.
 

Revaluation

The fair value of the company's Freehold investment properties was revalued on 30 September 2020. An independent valuer was not involved.
The properties have been valued at current market value.
Had this class of asset been measured on a historical cost basis, the carrying amount would have been £5,716,688 (2019 - £5,743,924).

Sean Lawson Land Limited

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

6

Stocks

	2020 £	2019 £
Other inventories	94,925	104,216

7

Debtors

	2020 £	2019 £
Trade debtors	83,134	67,169
Other debtors	-	15,865
Prepayments and accrued income	2,991	-
Total current trade and other debtors	86,125	83,034

8

Creditors

Creditors: amounts falling due within one year

	Note	2020 £	2019 £
Bank loans and overdrafts	10	2,121,533	206,162
Trade creditors		54,081	58,431
Taxation and social security		56,895	37,205
Other creditors		506,065	451,800
Accruals and deferred income		87,306	84,202
		2,825,880	837,800

Creditors include bank loans and overdrafts and net obligations under finance lease and hire purchase contracts which are secured of £2,121,533 (2019 - £212,695).

Creditors: amounts falling due after more than one year

	Note	2020 £	2019 £
Loans and borrowings	10	1,568,005	3,596,788

Creditors include bank loans and overdrafts and net obligations under finance lease and hire purchase contracts which are secured of £1,568,005 (2019 - £3,596,788).

Creditors include bank loans repayable by instalments of £nil (2019 - £1,928,250 )due after more than five years.

9	Share capital

Allotted, called up and fully paid shares

	2020		2019
	No.	£	No.	£
Ordinary of £1 each	100	100	100	100

Sean Lawson Land Limited

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

10	Loans and borrowings

	2020 £	2019 £
Non-current loans and borrowings
Bank borrowings	1,558,750	3,581,000
Hire purchase contracts	9,255	15,788
	1,568,005	3,596,788

	2020 £	2019 £
Current loans and borrowings
Bank borrowings	2,115,000	179,750
Bank overdrafts	-	19,879
Hire purchase contracts	6,533	6,533
Other borrowings	68,769	-
	2,190,302	206,162

11	Related party transactions

Transactions with directors

2020	At 1 October 2019 £	Advances to directors £	Repayments by director £	At 30 September 2020 £
S Lawson
Directors loan account	-	220,080	(288,849)	(68,769)

2019	At 1 October 2018 £	Repayments by director £	At 30 September 2019 £
S Lawson
Directors loan account	(25,131)	25,131	-

Summary of transactions with other related parties

D & W Property Investment Limited and Bellview Homes Limited. Sean Lawson was a director of D & W Property Investment Limited throughout the year, and was a director of Bellview Homes Limited until 26/04/2019.
 

 

Sean Lawson Land Limited

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

Loans from related parties

2020	Other related parties £	Total £
At start of period	367,313	367,313
Advanced	330,370	330,370
Repaid	(594,780)	(594,780)
At end of period	102,903	102,903

2019	Other related parties £	Total £
At start of period	323,729	323,729
Advanced	524,361	524,361
Repaid	(480,777)	(480,777)
At end of period	367,313	367,313

Terms of loans from related parties

The loan are repayable on demand. The loan from D & W Property Investment Limited is interest free. The loan from Bellview Homes Limited is subject to a commercial rate of interest.