SAMUEL_LEEDS_LIMITED - Accounts

The directors of the company have elected not to include a copy of the profit and loss account within the financial statements.true

For the financial year ended 31 July 2020 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.

The directors acknowledge their responsibilities for complying with the requirements of the Companies Act 2006 with respect to accounting records and the preparation of financial statements.

The members have not required the company to obtain an audit of its financial statements for the year in question in accordance with section 476.

These financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime.

Samuel Leeds Limited is a private company limited by shares incorporated in England and Wales. The registered office is Kings Head House, 15 London End, Beaconsfield, Buckinghamshire, England, HP9 2HN.

These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of 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 show a true and fair view.

The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.

The financial statements have been prepared under the historical cost convention, modified to include the revaluation of freehold properties and to include investment properties and certain financial instruments at fair value. The principal accounting policies adopted are set out below.

During the year, the UK economy went into recession due to the effect of the Covid-19 pandemic. As a result the company was unable to run courses that customers could attend from March 2020 onwards leading to a drop off in sales and a consequential impact to cashflow. The trading was also impacted by other operational issues and costs associated with this which is being addressed and is factored into the cash requirements of the business on an ongoing basis. The company obtained additional loan finance during the year making use of the government furlough and bounceback loan scheme, deferred tax liabilities due and cut costs where appropriate in order to assist with the cashflow challenges. Additionally, the business flexed its business model such that courses and material were provided online, and this linked with the UK government’s support in the property sector, continued to stimulate demand for the company’s products ensuring that the company continued to generate sales.true

Therefore, at the time of approving the financial statements , the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future such that the directors continue to adopt the going concern basis of accounting in preparing the financial statements.

Turnover is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business, and is shown net of VAT and other sales related taxes. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.

Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer (usually on dispatch of the goods), the amount of revenue can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the entity and the costs incurred or to be incurred in respect of the transaction can be measured reliably.

Revenue from training courses are recognised on the date the courses take place.

Revenue from memberships are recognised over the length of the membership period.

Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.

Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is credited or charged to profit or loss.

Investment property, which is property held to earn rentals and/or for capital appreciation, is initially recognised at cost, which includes the purchase cost and any directly attributable expenditure. Subsequently it is measured at fair value at the reporting end date. Changes in fair value are recognised in profit or loss.

The cumulative revaluation surplus relating to investment properties is voluntarily transferred to a non-distributable profit reserve from the profit and loss reserve net of any deferred tax provision on the gain. Upon realisation of the gain, the surplus relating to the profit is transferred back to the profit and loss reserve.

At each reporting period end date, the company reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.

Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.

If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.

Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.

Financial instruments are recognised in the company's balance sheet when the company becomes party to the contractual provisions of the instrument.

Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.

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.

Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

Equity instruments issued by the company are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.

The tax expense represents the sum of the tax currently payable and deferred tax.

The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.

Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leases asset are consumed.

Government grants are recognised at the fair value of the asset received or receivable when there is reasonable assurance that the grant conditions will be met and the grants will be received.

A grant that specifies performance conditions is recognised in income when the performance conditions are met. Where a grant does not specify performance conditions it is recognised in income when the proceeds are received or receivable. A grant received before the recognition criteria are satisfied is recognised as a liability.

During the year, the group received £205,055 under the government backed Coronavirus Job Retention Scheme (CJRS), following the outbreak of Covid-19 during the year. This amount has been recognised as other operating income.

The average monthly number of persons (including directors) employed by the company during the year was:

Their aggregate remuneration comprised:

The fair value of the investment property has been arrived at on the basis of a valuation carried by the directors. The valuation was made on an fair value basis by reference to market evidence of transaction prices for similar properties.

Included within bank loans, is a loan of £344,654 secured against the property contained in fixed assets and by a personal guarantee by a director. The loan accrued 1.55% interest per month. This loan was due to be fully repaid in July 2021 at the reporting date but subsequent to the year end the repayment date has been extended to July 2022.

Included within bank loans, is a loan of £50,000. The loan accrued 2.5% interest per annum. The loan will be paid in instalments and will be fully paid in May 2026.

Included within other loans, is a loan of £48,000 from a related party. The loan accrued 2.5% interest per annum .The loan will be paid in instalments and will be fully paid in May 2026.

Included within other loans, is a loan of £430,133. The loan accrued 10% interest per annum .The loan will be paid in instalments and will be fully paid in August 2021.

The following are the major deferred tax liabilities and assets recognised by the company and movements thereon:

At the year end date, Pension liabilities totalling £3,903 (2019 - £2,167) were outstanding.

At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, as follows:

The company made loans totalling £1,010,224 (2019 - £873,998) to companies under common control. These loans are interest free and repayable on demand.

During the year, a company under common control was charged at management fee of £199,027 by the company.

The company was loaned £74,775 (2019 - £60,538) from companies under common control. These loans are interest free and repayable on demand.

The company was loaned £48,000 (2019 - £60,538) from a company under common control. This loan accrues 2.5% interest per annum and is payable over 6 years.

The company was loaned £20,000 (2019 - £Nil) from a relative of the director. This loan is interest free and repayable on demand.

During the year, a company under common control invoiced the company £Nil (2019: £12,650) for consultancy services.

The company was loaned £381,572 (2019 - Owed by its director £306,392) by a director by way of a directors loan. Interest totalling £1,172 (2019 - £8,025) was received on this balance whilst the director was still in debt to the company.

The company loaned a director £49,839 (2019 - £Nil) by way of a directors loan, subsequent to their appointment. Interest totalling £1,417 (2019 - £1,496) was charged on this balance. The loan was repayable on demand.

The ultimate controlling party was Mr S Leeds by virtue of his controlling ownership of the company's share capital.