PLANTATION_INVESTMENTS_LI - Accounts

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

For the financial year ended 30 April 2022 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.

The director acknowledges his 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.

Plantation Investments Limited is a private company limited by shares incorporated in England and Wales. The registered office is The Copper Room, Deva City Office Park, Trinity Way, Manchester, M3 7BG.

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.

Having taken into consideration the impact of the interruption to the company following the Covid-19 coronavirus pandemic, the director has prepared revised financial projections and cash flows forecasts. Whilst there remains significant uncertainty around the impact of the pandemic, at the time of approving the financial statements the director has a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Thus the director continues to adopt the going concern basis of accounting in preparing the financial statements.true

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.

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.

The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset when the company has a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.

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.

The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.

Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation in the period are included in profit or loss.

In the application of the company’s accounting policies, the director is required to make judgements, estimates and assumptions about the carrying amount 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 where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

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

Preference dividends in arrears total £95,458 (2021 - £72,000). The payment date for these arrears was 1 August 2017 (£18,000) 1 August 2018 (£18,000) 1 August 2019 (£18,000) 1 August 2020 (£18,000) and 1 August 2021 (£23,458). See Note 7 for further information pertaining to the preference dividends in issue.

Investment property comprises Plantation Industrial Estate, Whitelands Road, Ashton-under-Lyne, OL6 6UZ. The fair value of the investment property has been assessed by a director of the company who has been involved in property investment and development for a period in excess of 40 years. In assessing fair values the director has had regard to mortgage valuations conducted and has assessed yield profiles of similar property be it location, covenant strength or length of lease, having regard to the rent review due on 16 March 2021, where the rent has increased post year end to £262,500 per annum.

On 1 August 2016 the company issued 450,000 Cumulative Preference £1 shares at par.

On 16 November 2021 the company issued 300,000 Cumulative Preference £1 shares at par.

Preference shares are not entitled to any voting rights. Each preference share is entitled to a cumulative preferential dividend at a rate of 4% per annum on the capital paid up on each cumulative redeemable preference share in preference to the ordinary shares. The capital paid up on each cumulative redeemable preference share and any dividend in arrears on any cumulative redeemable preference share is paid in priority to the ordinary shares in a distribution arising from a winding up of the Company. The cumulative redeemable preference shares are liable to be redeemed at any time at the option of the Company.

The bounce back loan of £50,000 is repayable over 10 years at a fixed interest rate of 2.5%.

Accruals include an administration and management charge of £50,000 (2021: £50,000) due for the year to Carrwood Estates Limited.

The following amounts were outstanding at the reporting end date:

Amounts due to related parties consists of £30 (2021: £30) owed to Foregate Investments Limited, £Nil (2021: £Nil) owed to St. George Estates Limited and £2,921,132 (2021: £2,837,287) owed to Water Lane Investments Limited.

The following amounts were outstanding at the reporting end date:

Amounts due from related parties consists of £53,153 (2021: £108,603) owed by Carrwood Estates Limited, £312,844 (2021: £13,044) owed by Pinelarch Limited, £564,242 (2021: £534,192) owed by Shirmax Limited, £59,240 (2021: £32,665) owed by St. George Estates Limited and £46,219 (2021: £32,717) owed by St. George Estates (Management) Limited.

Mr A. Gradel is a director of the above companies and is a shareholder in Carrwood Estates Limited, Pinelarch Limited and St. George Estates Limited. Mrs L. Gradel is a director of and is a shareholder in Carrwood Estates Limited.

The ultimate parent undertaking is Carrwood Estates Limited, a company registered in England and Wales.

In the opinion of the directors there is no ultimate controlling party.