Area Residential Limited - Accounts to registrar (filleted) - small 18.2

REGISTERED NUMBER: 08578850 (England and Wales)

UNAUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021

FOR

AREA RESIDENTIAL LIMITED

Page

Company Information

1

Balance Sheet

2

Notes to the Financial Statements

3

DIRECTOR:

C R Ritchie

SECRETARY:

R J Baskott

REGISTERED OFFICE:

The Old Casino

28 Fourth Avenue

Hove

East Sussex

BN3 2PJ

REGISTERED NUMBER:

08578850 (England and Wales)

ACCOUNTANTS:

Cardens Accountants LLP

The Old Casino

28 Fourth Avenue

Hove

East Sussex

BN3 2PJ

FIXED ASSETS

Investment property

3

529,000

514,000

CURRENT ASSETS

Stocks

4

215,769

210,243

Debtors

5

593,879

613,434

Cash at bank

192,877

7,763

1,002,525

831,440

CREDITORS

Amounts falling due within one year

6

677,522

487,207

NET CURRENT ASSETS

325,003

344,233

TOTAL ASSETS LESS CURRENT LIABILITIES

854,003

858,233

CREDITORS

Amounts falling due after more than one year

7

374,644

370,325

NET ASSETS

479,359

487,908

CAPITAL AND RESERVES

Called up share capital

100

100

Retained earnings

479,259

487,808

479,359

487,908

The company is entitled to exemption from audit under Section 477 of the Companies Act 2006 for the year ended 31 March 2021.

The members have not required the company to obtain an audit of its financial statements for the year ended 31 March 2021 in accordance with Section 476 of the Companies Act 2006.

The director acknowledges his 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 director and authorised for issue on 23 October 2021 and were signed by:

C R Ritchie - Director

1.	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.

Investment property

Investment property is shown at most recent valuation. Any aggregate surplus or deficit arising from changes in fair value is recognised in profit or loss.

Stocks

Stocks are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items.

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.

2.	EMPLOYEES AND DIRECTORS

The average number of employees during the year was NIL (2020 - NIL).

3.	INVESTMENT PROPERTY

Total

£

FAIR VALUE

At 1 April 2020

514,000

Revaluations

15,000

At 31 March 2021

529,000

NET BOOK VALUE

At 31 March 2021

529,000

At 31 March 2020

514,000

Fair value at 31 March 2021 is represented by:

£

Valuation in 2021

15,000

Valuation in 2019

363,650

Cost

150,350

529,000

4.

STOCKS

2021

2020

£

£

Stocks

215,769

210,243

5.

DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2021

2020

£

£

Trade debtors

-

572

Amounts owed by group undertakings

590,153

611,500

Other debtors

3,306

1,362

VAT

420

-

593,879

613,434

6.

CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2021

2020

£

£

Trade creditors

2,419

386

Amounts owed to group undertakings

336,569

347,584

Other creditors

336,684

118,644

Directors' loan accounts

-

18,943

Accrued expenses

1,850

1,650

677,522

487,207

7.

CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR

2021

2020

£

£

Bank loans more 5 yr by instal

374,644

370,325

Amounts falling due in more than five years:

Repayable by instalments

Bank loans more 5 yr by instal

374,644

370,325

8.	DIRECTOR'S ADVANCES, CREDITS AND GUARANTEES

During the year, C R Ritchie decreased his loan to the company. As at 31 March 2021, the company owed him £nil (2020: £18,943). This balance represented the maximum amount outstanding during the year and the loan is interest free and repayable on demand.

9.	POST BALANCE SHEET EVENTS

Before the balance sheet date and the approval of these accounts an outbreak of the COVID-19 virus occurred causing a global pandemic recognised by the World Health Organisation (WHO).

The effect of UK Government measures to limit the spread of the virus have been widespread, urging people to remain at home wherever possible, including to work from home if available and to undertake "social distancing" measures. Part of the government action has been to order businesses where people gather socially to close temporarily.

In respect of the current COVID 19 situation the Company has reviewed its business and has been relatively unaffected by this and therefore have made no adjustments to the accounts.

We expect the situation not to have an impact on the Company's ability to continue as a going concern. The director continues to monitor the situation as it rapidly changes and will react to further developments.

10.	ULTIMATE CONTROLLING PARTY

The controlling party is Area Developments Limited.

The ultimate controlling party is C R Ritchie.

This was by virtue of his 60% holding of the issued share capital of Area Developments Limited.