Capsicum Leasing Limited - Accounts to registrar (filleted) - small 22.3

REGISTERED NUMBER: 07112783 (England and Wales)

Financial Statements

for the Period 1st November 2021 to 30th April 2022

for

CAPSICUM LEASING LIMITED

Page

Company Information

1

Statement of Financial Position

2

Notes to the Financial Statements

3

DIRECTOR:

G D Chilton

REGISTERED OFFICE:

Suffolk House

George Street

Croydon

Surrey

CR0 0YN

REGISTERED NUMBER:

07112783 (England and Wales)

SENIOR STATUTORY AUDITOR:

Patrick duCassé

AUDITORS:

Simpson Wreford & Partners

Chartered Accountants & Statutory Auditors

Suffolk House

George Street

Croydon

Surrey

CR0 0YN

FIXED ASSETS

Property, plant and equipment

4

1,575,690

1,628,159

Investments

5

56

56

1,575,746

1,628,215

CURRENT ASSETS

Debtors

6

6,049,971

6,003,782

Cash at bank

105

641

6,050,076

6,004,423

CREDITORS

Amounts falling due within one year

7

6,650,669

6,638,567

NET CURRENT LIABILITIES

(600,593

)

(634,144

)

TOTAL ASSETS LESS CURRENT LIABILITIES

975,153

994,071

CREDITORS

Amounts falling due after more than one year

8

(1,089,960

)

(1,157,004

)

PROVISIONS FOR LIABILITIES

10

(232,635

)

(237,093

)

NET LIABILITIES

(347,442

)

(400,026

)

CAPITAL AND RESERVES

Called up share capital

11

100

100

Retained earnings

(347,542

)

(400,126

)

SHAREHOLDERS' FUNDS

(347,442

)

(400,026

)

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 Statement of Comprehensive Income has not been delivered.

The financial statements were approved by the director and authorised for issue on 11th December 2022 and were signed by:

G D Chilton - Director

1.	STATUTORY INFORMATION

The principal activity of the company continued to be that of leasing freehold property, motorsport cars and equipment to fellow group companies.

The company is a private company limited by shares and is registered in England and Wales. The address of its registered office is Suffolk House, George Street, Croydon, CR0 0YN. The address of its principal place of business is 7 Coxbridge Business Park, Alton Road, Farnham, Surrey, GU10 5EH.

The company has adopted a shortened period to 30th April 2022.

2.	ACCOUNTING POLICIES

Basis of preparing the financial statements

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. The financial statements have been prepared under the historical cost convention.

The company is itself a subsidiary company and is exempt from the requirement to prepare group financial statements by virtue of section 400 of the Companies Act 2006. The financial statements therefore present information about the company as an individual undertaking and not about its group.

Financial Reporting Standard 102 - reduced disclosure exemptions

The company has taken advantage of the following disclosure exemptions in preparing these financial statements, as permitted by FRS 102 ''The Financial Reporting Standard applicable in the UK and Republic of Ireland'':

- the requirements of Section 4 Statement of Financial Position paragraph 4.12(a)(iv);

- the requirements of Section 7 Statement of Cash Flows;

- the requirement of Section 3 Financial Statement Presentation paragraph 3.17(d);

- the requirements of Section 11 Financial Instruments paragraphs 11.39 to 11.48(c);

- the requirements of Section 12 Other Financial Instruments paragraphs 12.26 to 12.29;

- the requirements of Section 33 Related Party Disclosures paragraph 33.7.

This information is included in the consolidated financial statements of Capsicum Motorsport Holdings Limited as at 30th April 2022, which may be obtained from the company's registered office.

Going Concern

The company has the continuing support of the owner, which will allow the company to be able to meet its liabilities as they fall due for a period of at least 12 months from the date the financial statements were authorised for issue. Accordingly, the director is satisfied that the financial statements should be prepared on the going concern basis.

Turnover

Turnover represents rental lease income, excluding value added tax. Where sales invoices are raised during the period for periods subsequent to the balance sheet date, appropriate amounts are removed from turnover and included as deferred income in current liabilities. Where sales invoices are raised subsequent to the balance sheet date for services rendered during the financial period, appropriate amounts are added to turnover and included as accrued income in current assets.

Tangible fixed assets

Tangible fixed assets under the cost model are stated at historical cost less accumulated depreciation and any accumulated impairment losses. Historical cost includes expenditure that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management.

At each reporting date the company assesses whether there is any indication of impairment. If such indication exists, the recoverable amount of the asset is determined, which is the higher of its fair value less costs to sell and its value in use. An impairment loss is recognised where the carrying amount exceeds the recoverable amount.

Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, on the following basis:

Freehold property

- 4% on cost

Motor racing cars

- at varying rates over the life of asset

Tractors and trailers

- at varying rates over the life of asset

Motor vehicles

- 33% on cost

The assets' residual value, useful lives and depreciation methods are reviewed and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.

Gains and losses on disposals are determined by comparing the proceeds with the carrying amounts and are recognised in the Statement of Comprehensive Income.

Financial instruments

The company only enters into basic financial instruments transactions that result in the recognition of financial assets and liabilities like trade and other accounts receivable and payable, loans from banks and other third parties and loans to related parties.

Financial assets that are measured at cost and amortised cost are assessed at the end of each reporting period for objective evidence of impairment. If objective evidence of impairment is found, an impairment loss is recognised in the Statement of Comprehensive Income.

For financial assets measured at cost less impairment, the impairment loss is measured at the difference between an asset's carrying amount and the best estimate of the recoverable amount, which is an approximation of the amount that the company would receive for the asset if it were to be sold at the Statement of Financial Position date.

Taxation

Taxation for the period comprises current and deferred tax. Tax is recognised in the Statement of Comprehensive Income, 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 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 the 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.

Foreign currency translation

The company's functional and presentational currency is pound sterling.

Foreign currency transactions are translated into the functional currency using the spot exchange rates at the dates of the transactions.

At each period end foreign currency monetary items are translated using the closing rate. Non-monetary items measured at historical cost are translated using the exchange rate at the date of the transaction and non-monetary items measured at fair value are measured using the exchange rate when fair value is determined.

Foreign exchange gains and losses resulting from the settlement of transactions and from the translation at period-end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognised in administrative expenses within the Statement of Comprehensive Income.

Debtors

Short term debtors are measured at transaction price, less any impairment. Loans receivable are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method, less any impairment.

Creditors

Short term trade creditors are measured at the transaction price. Other financial liabilities, including bank loans, are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method.

Cash and cash equivalents

Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours.

3.	EMPLOYEES AND DIRECTORS

The average number of employees during the period was NIL (2021 - NIL).

4.	PROPERTY, PLANT AND EQUIPMENT

Motor

Freehold

racing

Plant and

property

cars

machinery

£

£

£

COST

At 1st November 2021

and 30th April 2022

2,015,543

1,093,582

16,000

DEPRECIATION

At 1st November 2021

579,384

1,016,582

16,000

Charge for period

28,969

5,000

-

At 30th April 2022

608,353

1,021,582

16,000

NET BOOK VALUE

At 30th April 2022

1,407,190

72,000

-

At 31st October 2021

1,436,159

77,000

-

Tractors

and

Motor

trailers

vehicles

Totals

£

£

£

COST

At 1st November 2021

and 30th April 2022

813,625

47,655

3,986,405

DEPRECIATION

At 1st November 2021

698,625

47,655

2,358,246

Charge for period

18,500

-

52,469

At 30th April 2022

717,125

47,655

2,410,715

NET BOOK VALUE

At 30th April 2022

96,500

-

1,575,690

At 31st October 2021

115,000

-

1,628,159

5.	FIXED ASSET INVESTMENTS

Other

investments

£

COST

At 1st November 2021

and 30th April 2022

56

NET BOOK VALUE

At 30th April 2022

56

At 31st October 2021

56

6.

DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

30.4.22

31.10.21

£

£

Amounts owed by group undertakings

6,049,315

6,003,070

VAT

656

712

6,049,971

6,003,782

7.

CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

30.4.22

31.10.21

£

£

Bank loans and overdrafts

132,708

131,307

Trade creditors

3,946

7,388

Amounts owed to group undertakings

172,266

172,266

Tax

26,499

13,341

Directors' loan accounts

6,299,367

6,299,367

Accruals and deferred income

15,883

14,898

6,650,669

6,638,567

8.

CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR

30.4.22

31.10.21

£

£

Bank loans - 1-2 years

137,138

135,099

Bank loans - 2-5 years

436,953

430,456

Bank loans more than 5 years

by instalments

515,869

591,449

1,089,960

1,157,004

Amounts falling due in more than five years:

Repayable by instalments

Bank loans more than 5 years

by instalments

515,869

591,449

515,869

591,449

9.	SECURED DEBTS

The following secured debts are included within creditors:

30.4.22

31.10.21

£

£

Bank Loan and overdraft

1,222,668

1,288,311

The bank loan is repayable in instalments over 8 years from 30 April 2022. Interest is payable on the loans at 2.75% over base rate.

The bank borrowings are secured by fixed and floating charges on all assets held by the company.

10.	PROVISIONS FOR LIABILITIES

30.4.22

31.10.21

£

£

Deferred tax

232,635

237,093

Deferred

tax

£

Balance at 1st November 2021

237,093

Utilised during period

(4,458

)

Balance at 30th April 2022

232,635

11.	CALLED UP SHARE CAPITAL

Allotted, issued and fully paid:

Number:

Class:

Nominal

30.4.22

31.10.21

value:

£

£

100

Ordinary

£1

100

100

12.	AUDITORS' INFORMATION

The audit report provided to the members of Capsicum Leasing Limited on the financial statements for the year ended 30th April 2022 was not qualified.

The audit report was signed by Patrick duCassé (Senior Statutory Auditor) for and on behalf of Simpson Wreford & Partners, Chartered Accountants and Statutory Auditor.

13.	DIRECTOR'S ADVANCES, CREDITS AND GUARANTEES

G D Chilton, a director, continued to provide finance to the company during the period. The total balance owed by the company at the period end was £6,299,367 (2021: £6,299,367). The loan is interest free and whilst technically repayable on demand, the director has confirmed he will not seek repayment until the company is in a position to do so.

14.	RELATED PARTY DISCLOSURES

No disclosure has been made of transactions with other wholly owned group companies in accordance with FRS 102 Section 1A paragraph 1AC.35 as the company itself is a wholly owned subsidiary of Capsicum Motorsport Holdings Limited.

15.	ULTIMATE CONTROLLING PARTY

The immediate and ultimate parent company is Capsicum Motorsport Holdings Limited, registered in England and Wales. Its registered office address is Suffolk House, George Street, Croydon, CR0 0YN.

The ultimate controlling party is G D Chilton, who owns 100% of the ultimate parent company.

Capsicum Motorsport Holdings Limited prepares consolidated financial statements and copies can be obtained from Suffolk House, George Street, Croydon, CR0 0YN.