Rhodes Asset Management Limited - Accounts to registrar (filleted) - small 18.2
Rhodes Asset Management Limited - Accounts to registrar (filleted) - small 18.2
| REGISTERED NUMBER: |
| Unaudited Financial Statements |
| for the Year Ended |
| 30 September 2021 |
| for |
| Rhodes Asset Management Limited |
| Rhodes Asset Management Limited (Registered number: 05835181) |
| Contents of the Financial Statements |
| for the Year Ended 30 September 2021 |
| Page |
| Balance Sheet | 1 |
| Notes to the Financial Statements | 3 |
| Rhodes Asset Management Limited (Registered number: 05835181) |
| Balance Sheet |
| 30 September 2021 |
| 2021 | 2020 |
| Notes | £ | £ | £ | £ |
| FIXED ASSETS |
| Intangible assets | 4 |
| Tangible assets | 5 |
| CURRENT ASSETS |
| Stocks |
| Debtors | 6 |
| Cash at bank and in hand |
| CREDITORS |
| Amounts falling due within one year | 7 |
| NET CURRENT ASSETS |
| TOTAL ASSETS LESS CURRENT LIABILITIES |
| CREDITORS |
| Amounts falling due after more than one year |
8 |
| NET ASSETS |
| CAPITAL AND RESERVES |
| Called up share capital | 10 |
| Retained earnings |
| The directors acknowledge their 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. |
| Rhodes Asset Management Limited (Registered number: 05835181) |
| Balance Sheet - continued |
| 30 September 2021 |
| In accordance with Section 444 of the Companies Act 2006, the Statement of Comprehensive Income has not been delivered. |
| The financial statements were approved by the Board of Directors and authorised for issue on |
| Rhodes Asset Management Limited (Registered number: 05835181) |
| Notes to the Financial Statements |
| for the Year Ended 30 September 2021 |
| 1. | STATUTORY INFORMATION |
| Rhodes Asset Management Limited is a |
| Registered number: |
| Registered office: |
| 2. | 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 UK and Republic of Ireland" and the Companies Act 2006 as applicable to companies subject to the small companies regime. The disclosure requirements of section 1A of FRS 102 have been applied other than where additional disclosure is required to give a true and fair view. |
| The financial statements have been prepared under the historical cost convention modified to include certain items at fair value. |
| Revenue |
| 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: |
| Sale of goods |
| Revenue from the sale of goods is recognised when all of the following conditions are satisfied: |
| - the Company has transferred the significant risks and rewards of ownership to the buyer; |
| - the Company retains neither continuing managerial involvement to the degree usually associated with ownership nor effective control over the goods sold; |
| - the amount of revenue can be measured reliably; |
| - it is probable that the Company will receive the consideration due under the transaction; and |
| - the costs incurred or to be incurred in respect of the transaction can be measured reliably. |
| 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. |
| Interest income |
| Interest income is recognised in the Statement of Comprehensive Income using the effective interest method. |
| Rhodes Asset Management Limited (Registered number: 05835181) |
| Notes to the Financial Statements - continued |
| for the Year Ended 30 September 2021 |
| 2. | ACCOUNTING POLICIES - continued |
| Finance costs |
| Finance costs are charged to the Statement of Comprehensive Income 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. |
| Borrowing costs |
| All borrowing costs are recognised in the Statement of Comprehensive Income in the year in which they are incurred. |
| Goodwill |
| Goodwill arising on the acquisition of subsidiary undertakings and businesses, representing any excess of fair value of the consideration given over the fair value of the identifiable assets and liabilities acquired, is capitalised and written off on a straight line basis to the Statement of Comprehensive Income over its useful economic life. |
| Tangible fixed assets |
| Tangible fixed assets are stated at purchase cost together with any incidental expenses of acquisition, net of depreciation and any provision for impairment. |
| Depreciation is provided on all tangible assets at rates calculated to write off the cost less estimated residual value of each asset on a reducing balance basis over its expected useful life. |
| Leasehold property improvements 10% straight line |
| Fixtures, fittings & office equipment 25% reducing balance |
| Residual value represents the estimated amount which would currently be obtained from disposal of an asset after deducting estimated costs of disposal, if the asset were already at an age and in the condition expected at the end of its estimated useful life. |
| The need for any fixed asset impairment write down is assessed by comparison of the carrying value of the assets against the higher of realisable value and value in use. |
| The gain or loss arising on the disposal of an asset is determined on the difference between the sale proceeds and the carrying value of the asset, and is recognised in the profit and loss account. |
| Investments |
| Investments in subsidiaries are measured at cost less impairment. |
| Where the value of other investments can be reliably measured they are measured at fair value through the profit and loss account. Where fair value cannot be measured reliably other investments are measured at cost less impairment. |
| Stocks |
| Stock represents land and property acquired for sale or for development and sale, together with the work in progress on this land and property. These assets are valued at the lower of cost and selling price less costs to sell which is equivalent to net realisable value. Cost for this purpose comprises the purchase cost of land and property, associated direct costs and costs of development. Interest is written off to the profit and loss account as incurred. |
| At each balance sheet date, stocks are assessed for impairment. If stock is 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. |
| Cash and cash equivalents |
| Rhodes Asset Management Limited (Registered number: 05835181) |
| Notes to the Financial Statements - continued |
| for the Year Ended 30 September 2021 |
| 2. | ACCOUNTING POLICIES - continued |
| Taxation |
| Current tax, including UK corporation tax is provided at amounts expected to be paid (or recovered) using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date. |
| Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date where transactions or events that result in an obligation to pay more tax in the future or a right to pay less tax in the future have occurred at the balance sheet date. Timing differences are differences between the company's taxable profits and its results as stated in the financial statements that arise from the inclusion of gains and losses in tax assessments in periods different from those in which they are recognised in the financial statements. |
| Deferred tax is measured using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date and are expected to apply to the reversal of the timing difference. Deferred tax relating to investment property is measured using tax rates and allowances that apply should the investment property be sold. |
| Financial instruments |
| Financial assets and financial liabilities are recognised when the company becomes a party to the contractual provisions of the instrument. |
| Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities. |
| 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 and 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. |
| The following assets and liabilities are classified as basic financial instruments - trade debtors, other debtors, cash and bank balances, trade creditors, other creditors and bank loans. |
| Trade debtors, other debtors, cash and bank balances, trade creditors and other creditors are measured at the amortised cost equivalent to the undiscounted amount of cash or other consideration expected to be paid or received. |
| Bank loans are initially measured at the present value of future payments, discounted at a market rate of interest and subsequently measured at amortised cost using the effective interest method. |
| Rhodes Asset Management Limited (Registered number: 05835181) |
| Notes to the Financial Statements - continued |
| for the Year Ended 30 September 2021 |
| 2. | ACCOUNTING POLICIES - continued |
| Impairment of assets |
| Assets are assessed for indicators of impairment at each balance sheet date. If there is objective evidence of impairment, an impairment loss is recognised in profit and loss as described below. |
| Non financial assets |
| An asset is impaired when there is objective evidence that, as a result of one or more events that occurred after initial recognition, the estimated recoverable value of the asset has been reduced. The recoverable amount of an asset is the higher of its fair value less costs to sell and its value in use. |
| Financial assets |
| For financial assets carried at cost less impairment, the impairment loss is the difference between the asset's carrying amount and the best estimate of the amount that would be received for the asset if it were sold at the reporting date. |
| Where indicators exist for a decrease in impairment loss, and the decrease can be related objectively to an event occurring after the impairment was recognised, the prior impairment loss is tested to determine reversal. An impairment loss is reversed on an individual impaired financial asset to the extent that the revised recoverable value does not lead to a revised carrying amount higher than the carrying value had impairment not been recognised. |
| Critical accounting judgements and sources of estimation uncertainty |
| In the application of the Company's accounting policies, management is required to make judgements, estimates and assumptions about the carrying values of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates. |
| The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods. |
| The critical judgements that the directors have made in applying the company's accounting policies and the key sources of estimation uncertainty that have had the most significant effect on the amounts recognised in the financial statements are described below: |
| Property stock |
| The directors makes an estimate of the net realisable value of property and property developments held in stock at each reporting date to compare to the carrying values of those properties and property developments to assess whether any provisions are required. The directors undertake a review of the properties at each reporting date to assess whether the net realisable value is sufficiently greater than original cost plus development costs incurred to date. When assessing the net realisable values, the directors consider current commercial and retail property market trends and rental yields. |
| 3. | EMPLOYEES AND DIRECTORS |
| The average number of employees during the year was |
| Rhodes Asset Management Limited (Registered number: 05835181) |
| Notes to the Financial Statements - continued |
| for the Year Ended 30 September 2021 |
| 4. | INTANGIBLE FIXED ASSETS |
| Goodwill |
| £ |
| COST |
| At 1 October 2020 |
| and 30 September 2021 |
| AMORTISATION |
| At 1 October 2020 |
| and 30 September 2021 |
| NET BOOK VALUE |
| At 30 September 2021 |
| At 30 September 2020 |
| 5. | TANGIBLE FIXED ASSETS |
| Plant and |
| Land and | machinery |
| buildings | etc | Totals |
| £ | £ | £ |
| COST |
| At 1 October 2020 |
| Additions |
| At 30 September 2021 |
| DEPRECIATION |
| At 1 October 2020 |
| Charge for year |
| At 30 September 2021 |
| NET BOOK VALUE |
| At 30 September 2021 |
| At 30 September 2020 |
| 6. | DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
| 2021 | 2020 |
| £ | £ |
| Trade debtors |
| Other debtors |
| 7. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
| 2021 | 2020 |
| £ | £ |
| Trade creditors |
| Taxation and social security |
| Other creditors |
| Rhodes Asset Management Limited (Registered number: 05835181) |
| Notes to the Financial Statements - continued |
| for the Year Ended 30 September 2021 |
| 8. | CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR |
| 2021 | 2020 |
| £ | £ |
| Bank loans |
| Other creditors |
| 9. | SECURED DEBTS |
| The following secured debts are included within creditors: |
| 2021 | 2020 |
| £ | £ |
| Bank loans |
| Bank borrowings are secured by a first legal charge over the properties held in stock and also a debenture over all of the assets of the company. |
| 10. | CALLED UP SHARE CAPITAL |
| 2020 | 2019 |
| £ | £ |
| Allotted, issued and fully paid | 200 | 200 |
| 11. | RELATED PARTY DISCLOSURES |
| The directors have advanced funds to Rhodes Asset Management Limited to assist with working capital and the funding of specific development projects and were owed £589,780 (2020 - £300,330) at the balance sheet date. |
| T Javed also has directorships and beneficial interests in other businesses where Rhodes Asset Management Limited has provided working capital assistance in the period to 30 September 2021. Amounts owed to Rhodes Asset Management Limited at the balance sheet date were as follows:- |
| Trinity One LLP £915,169 (2020 - £794,823) |
| Spokesman Clothing Limited £45,627 (2020 - £35,377) |