CHARTERS_ESTATE_AGENTS_LI - 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 March 2021 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.

Charters Estate Agents Limited is a private company limited by shares incorporated in England and Wales. The registered office is Athenia House, 10-14 Andover Road, Winchester, Hampshire, United Kingdom, SO23 7BS.

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.

These financial statements are prepared on the going concern basis. The directors have a reasonable expectation that the company will continue in operational existence for the foreseeable future, and this is unchanged when considering the Covid-19 pandemic.

Revenue is measured at the fair value of the consideration received or receivable and represents amounts receivable for services provided in the normal course of business, net of discounts (if any) and VAT. Revenue is generated from the Company’s operations which are wholly based in the UK.

Revenue is recognised as follows for the following sales revenue streams:

Commission earned on residential property sales is recognised at a point in time upon the exchange of contracts for such sales.

Commission for property lettings occur when the Company satisfies its performance obligations at the point the letting is secured and recognises initial lettings commission at this point.

Goodwill represents the excess of the cost of acquisition of unincorporated businesses over the fair value of net assets acquired. It is initially recognised as an asset at cost and is subsequently measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is considered to have a finite useful life and is amortised on a systematic basis over its expected life, which is 10 years.

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.

Interests in subsidiaries are initially measured at cost and subsequently measured at cost less any accumulated impairment losses. The investments are assessed for impairment at each reporting date and any impairment losses or reversals of impairment losses are recognised immediately in profit or loss.

A subsidiary is an entity controlled by the company. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.

At each reporting period end date, the company reviews the carrying amounts of its tangible and intangible 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.

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.

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 and loans from fellow group companies, 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.

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.

The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.

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

The parent company participates in a share-based payment arrangement granted to certain employees of its subsidiaries. The company has not elected to recognise and measure its share-based payment expense on the basis of a reasonable allocation of the expense as the shares are considered to have an immaterial fair value at the reporting date.

Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessees. All other leases are classified as operating leases.

Assets held under finance leases are recognised as assets at the lower of the assets fair value at the date of inception and the present value of the minimum lease payments. The related liability is included in the balance sheet as a finance lease obligation. Lease payments are treated as consisting of capital and interest elements. The interest is charged to profit or loss so as to produce a constant periodic rate of interest on the remaining balance of the liability.

Rental income from operating leases is recognised on a straight line basis over the term of the relevant lease. Initial direct costs incurred in negotiating and arranging an operating lease are added to the carrying amount of the leased asset and recognised on a straight line basis over the lease term.

Government grants are recognised when there is reasonable assurance that the grants will be received.

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

Goodwill additions relate to the residual value of the investment in Charles Powell Estate Agents Limited where the underlying trade and assets have been transferred from that entity into the company. The resulting goodwill is being amortised over 10 years.

Details of the company's subsidiaries at 31 March 2021 are as follows:

The parent company has a share option scheme for certain employees of Charters Estate Agents Limited at the board's discretion. Options are vested on award and are exercisable at a price of £0.01 upon an exit event.

Details of the number of shares options and the weighted average exercise price of share options during the year are as follows:

The options outstanding at 31 March 2021 had an exercise price of £0.01, and a remaining contractual life of 10 years.

The options can only be exercised in the event of a business sale, and provided certain value conditions are met. As a result it is considered that the fair value of the share options as at 31 March 2021 is immaterial and therefore no fair value adjustments have been recognised.

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

Dividends totalling £152,187 (2020 - £599,109) were paid in the year in respect of shares held by the company's directors.

During the year CEAL Holdings Limited acquired the entire issued share capital of Charters Estate Agents Limited to become its parent company and ultimate controlling party.

Charters Financial Services Limited (formerly Trinity Rose Private Finance Limited)

At the year end the company was owed £665 (2020: £908) by Charters Financial Services Limited.

Wykeham Homes Limited (formerly GRE Holdings Limited)

At the year end the company was owed £3,025 (2020: £2,470) by Wykeham Homes Limited.

Bishops Independent Estate Agents Limited

At the year the company owed £300 (2020: £13,961) to Bishops Independent Estate Agents Limited.

Trinity Rose Limited

At the year the company was owed £3,911 (2020: £15,990) by Trinity Rose Limited.

CEAL Holdings Limited

At the year end the company was owed £500,000 (2020: £nil) by CEAL Holdings Limited.

Charles Powell Estate Agents Limited

At the year end the company owed £243,845 (2020: £nil) to Charles Powell Estate Agents Limited.

During the year the company acquired the share capital in Charles Powell Estate Agents Limited, at which point becoming the parent company. During the year the trade and assets of Charles Powell Estate Agents Limited were hived up into the company.