Clarion Developments Limited - Accounts to registrar (filleted) - small 22.3

REGISTERED NUMBER: 02912364 (England and Wales)

UNAUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022

FOR

CLARION DEVELOPMENTS LIMITED

Page

Company Information

1

Balance Sheet

2

Notes to the Financial Statements

4

DIRECTORS:

J M T Howell

T A Howell

SECRETARY:

Mrs P M Cameron

REGISTERED OFFICE:

Argent House

5 Goldington Road

Bedford

Bedfordshire

MK40 3JY

REGISTERED NUMBER:

02912364 (England and Wales)

ACCOUNTANTS:

Rawlinson Pryde Limited

Chartered Accountants

Argent House

5 Goldington Road

Bedford

Bedfordshire

MK40 3JY

FIXED ASSETS

Tangible assets

4

440

-

Investment property

5

1,460,939

971,450

1,461,379

971,450

CURRENT ASSETS

Debtors

6

27,894

32,875

Investments

7

465,409

458,994

Cash at bank

165,252

45,677

658,555

537,546

CREDITORS

Amounts falling due within one year

8

705,138

392,056

NET CURRENT (LIABILITIES)/ASSETS

(46,583

)

145,490

TOTAL ASSETS LESS CURRENT LIABILITIES

1,414,796

1,116,940

CREDITORS

Amounts falling due after more than one year

9

(186,758

)

(88,806

)

PROVISIONS FOR LIABILITIES

(4,055

)

-

NET ASSETS

1,223,983

1,028,134

CAPITAL AND RESERVES

Called up share capital

2

2

Fair value reserve

11

15,721

(45,029

)

Retained earnings

1,208,260

1,073,161

SHAREHOLDERS' FUNDS

1,223,983

1,028,134

The company is entitled to exemption from audit under Section 477 of the Companies Act 2006 for the year ended 31 March 2022.

The members have not required the company to obtain an audit of its financial statements for the year ended 31 March 2022 in accordance with Section 476 of the Companies Act 2006.

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.

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 Income Statement has not been delivered.

The financial statements were approved by the Board of Directors and authorised for issue on 23 December 2022 and were signed on its behalf by:

J M T Howell - Director

1.	STATUTORY INFORMATION

Clarion Developments Limited is a private company, limited by shares , registered in England and Wales. The company's registered number and registered office address can be found on the Company Information page.

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 Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" including the provisions of Section 1A "Small Entities" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention as modified by the revaluation of certain assets.

Turnover

Turnover is represented by:

Investment income - Rents receivable:

Turnover represents net invoiced rental income, excluding value added tax where appropriate. Rents receivable under operating leases are credited to the profit and loss account over the length of the lease. Rentals received in advance by the company that are attributable to later periods are deferred and included in creditors, (deferred income), and are credited to the profit and loss account in those later periods.

Tangible fixed assets

All categories of tangible fixed assets, other than investment properties, are carried at depreciated historical cost. Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life.

Fixtures and fittings - 25.0% on cost

Computer Equipment - 33.3% on cost

Investment property

Investment property is shown at most recent valuation. Investment property for which fair value can be measured reliably without undue cost or effort is measured at fair value at each reporting date. Any aggregate surplus or deficit arising from changes in fair value is recognised in the profit or loss in the period in which they arise. Deferred tax is provided on these gains at the rate expected to apply when the property is sold.

Investment property is subject to periodic valuation by the directors or by independent chartered surveyors, determined on the fair value basis using the market approach: based on market transactions involving identical or similar assets.

Financial instruments

Financial instruments are classified and accounted for according to the substance of the contractual arrangement, as either financial assets, financial liabilities or equity. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all liabilities.

Debtors and creditors with no stated interest rate and receivable and payable within one year are recorded at transaction price. Any losses arising from impairment are recognised in the profit or loss in other administrative expenses.

Taxation

Taxation for the year comprises current and deferred tax. Tax is recognised in the Income Statement, 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 balance sheet date.

Deferred tax

Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet 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.

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 currencies

Assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the balance sheet date. Transactions in foreign currencies are translated into sterling at the rate of exchange ruling at the date of transaction. Exchange differences are taken into account in arriving at the operating result.

Investments

Investments are recognised initially at cost which is normally the transaction price (but excludes any transaction costs, where the investment is subsequently measured at fair value through profit and loss). Subsequently, they are measured at fair value through profit or loss except for those investments that are not publicly traded and whose fair value cannot otherwise be measured reliably which are recognised at cost less impairment until a reliable measure of fair value becomes available.

If a reliable measure of fair value is no longer available, the equity instrument’s fair value on the last date the instrument was reliably measurable is treated as the cost of the instrument.

Operating leases

The company acts as a lessor, renting out investment properties to tenants. Rentals receivable under operating leases are credited to the profit and loss account over the lives of the leases. Rentals received in advance by the company that are attributable to later periods are deferred and included in creditors, (deferred income), and are credited to the profit and loss account in those later periods.

The gross cost of assets held for use in operating leases is included in investment property. There is no accumulated depreciation of these assets.

Borrowing costs

All borrowing costs are recognised in profit or loss in the period in which they are incurred.

Impairment

Assets not measured at fair value are reviewed for any indication that the asset may be impaired at each balance sheet date. If such indication exists, the recoverable amount of the asset, or the asset's cash generating unit, is estimated and compared to the carrying amount. Where the carrying amount exceeds its recoverable amount, an impairment loss is recognised in profit or loss unless the asset is carried at a revalued amount where the impairment loss is a revaluation decrease.

3.	EMPLOYEES AND DIRECTORS

The average number of employees during the year was 2 (2021 - 2 ) .

4.	TANGIBLE FIXED ASSETS

Fixtures

and

Computer

fittings

equipment

Totals

£

£

£

COST

At 1 April 2021

-

6,093

6,093

Additions

454

-

454

At 31 March 2022

454

6,093

6,547

DEPRECIATION

At 1 April 2021

-

6,093

6,093

Charge for year

14

-

14

At 31 March 2022

14

6,093

6,107

NET BOOK VALUE

At 31 March 2022

440

-

440

At 31 March 2021

-

-

-

5.	INVESTMENT PROPERTY

Total

£

FAIR VALUE

At 1 April 2021

971,450

Additions

444,489

Disposals

(30,000

)

Revaluations

75,000

At 31 March 2022

1,460,939

NET BOOK VALUE

At 31 March 2022

1,460,939

At 31 March 2021

971,450

Fair value at 31 March 2022 is represented by:

£

Valuation in 2017

40,000

Valuation in 2018

10,000

Valuation in 2019

15,000

Valuation in 2020

(190,000

)

Valuation in 2021

80,000

Valuation in 2022

70,000

Cost

1,435,939

1,460,939

If investment properties had not been revalued they would have been included at the following historical cost:

31.3.22

31.3.21

£

£

Cost

1,397,092

973,853

The investment properties were valued on an open market value basis on 31 March 2022 by J Howell FRICS, the Director .

6.

DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

31.3.22

31.3.21

£

£

Trade debtors

15,765

19,181

Tax

8,158

-

Deferred tax asset

Revaluations

-

10,195

Prepayments and accrued income

3,971

3,499

27,894

32,875

The company included the deferred tax asset arising from the net unrealised loss on the investment property revaluations of £nil (2021: £55,224).

7.	CURRENT ASSET INVESTMENTS

31.3.22

31.3.21

£

£

Unlisted investments

465,409

458,994

Included in the above:

Current assets investments to the value of £360,795 (2021: £317,665) have been fair valued by Connection Capital investment managers. As a result, a revaluation loss amounting to £29,386 (2021: Gain £7,820) has been recognised in the profit and loss account during the year.

Current assets investments to the value of £88,155 (2021: £111,046) have been fair valued by Interactive Investors investment managers. As a result, a revaluation gain amounting to £9,920 has been recognised in the profit and loss account during the year.

8.

CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

31.3.22

31.3.21

£

£

Bank loans and overdrafts

28,466

37,537

Other loans

65,000

-

Trade creditors

3,187

3,444

Tax

(108

)

29,016

VAT

1,261

1,181

Other creditors

27

-

Kirkstone Properties Limited

371,000

120,000

Director's current account

212,816

180,503

Deferred income

20,383

17,365

Accrued expenses

3,106

3,010

705,138

392,056

9.

CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR

31.3.22

31.3.21

£

£

Bank loans

186,758

88,806

10.	SECURED DEBTS

The following secured debts are included within creditors:

31.3.22

31.3.21

£

£

Bank loans

215,224

126,343

The bank loans are secured by mortgage charges and a debenture over the company's investment properties, together with additional charges over the other assets of the company in favour of National Westminster Bank plc and Shawbrook Bank Limited.

11.

RESERVES

Fair

value

reserve

£

At 1 April 2021

(45,029

)

Transfer between reserves

60,750

At 31 March 2022

15,721

12.	POST BALANCE SHEET EVENTS

On 1 April 2022, the company drew down a further loan of £156,098 from Shawbrook Bank Limited, to provide additional operational finance to the company. The loan is an eight-year interest only mortgage, comprising a five-year fixed interest rate period, before reverting to a variable interest rate period.