Staton Young (Residential) Limited - Period Ending 2021-05-31

Staton Young (Residential) Limited

Contents

Company Information	1
Accountants' Report	2
Balance Sheet	3 to 4
Notes to the Financial Statements	5 to 10

Staton Young (Residential) Limited

Company Information

Directors

R L Brough M L Brough

Registered office

Derwent Business Centre Clarke Street Derby Derbyshire DE1 2BU

Bankers

National Westminster Plc Bede House 11 Western Boulevard Leicester LE2 7EJ

Accountants

Ashgates Corporate Services Limited 5 Prospect Place Millennium Way Pride Park Derby DE24 8HG

Chartered Certified Accountants' Report to the Board of Directors on the Preparation of the Unaudited Statutory Accounts of
Staton Young (Residential) Limited
for the Year Ended 31 May 2021

In order to assist you to fulfil your duties under the Companies Act 2006, we have prepared for your approval the accounts of Staton Young (Residential) Limited for the year ended 31 May 2021 as set out on pages 3 to 10 from the company's accounting records and from information and explanations you have given us.

As a practising member firm of the Association of Chartered Certified Accountants, we are subject to its ethical and other professional requirements which are detailed at http://www.accaglobal.com/en/
member/professional-standards/rules-standards/acca-rulebook.html.

This report is made solely to the Board of Directors of Staton Young (Residential) Limited, as a body, in accordance with the terms of our engagement letter. Our work has been undertaken solely to prepare for your approval the accounts of Staton Young (Residential) Limited and state those matters that we have agreed to state to the Board of Directors of Staton Young (Residential) Limited, as a body, in this report in accordance with the requirements of the Association of Chartered Certified Accountants as detailed at http://www.accaglobal.com/content/dam/ACCA_Global/Technical/fact/
technical-factsheet-163.pdf. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than Staton Young (Residential) Limited and its Board of Directors as a body for our work or for this report.

It is your duty to ensure that Staton Young (Residential) Limited has kept adequate accounting records and to prepare statutory accounts that give a true and fair view of the assets, liabilities, financial position and profit of Staton Young (Residential) Limited. You consider that Staton Young (Residential) Limited is exempt from the statutory audit requirement for the year.

We have not been instructed to carry out an audit or a review of the accounts of Staton Young (Residential) Limited. For this reason, we have not verified the accuracy or completeness of the accounting records or information and explanations you have given to us and we do not, therefore, express any opinion on the statutory accounts.

Ashgates Corporate Services Limited
5 Prospect Place
Millennium Way
Pride Park
Derby
DE24 8HG

27 October 2021

Staton Young (Residential) Limited

(Registration number: 07292288)
Balance Sheet as at 31 May 2021

	Note	2021 £	2020 £
Fixed assets
Tangible assets	4	1,372	1,829
Investment property	5	2,525,000	1,735,500
		2,526,372	1,737,329
Current assets
Debtors	6	476,696	869,297
Cash at bank and in hand		43,242	3
		519,938	869,300
Creditors: Amounts falling due within one year	7	(130,822)	(224,482)
Net current assets		389,116	644,818
Total assets less current liabilities		2,915,488	2,382,147
Creditors: Amounts falling due after more than one year	7	(1,104,136)	(703,652)
Provisions for liabilities		(171,931)	(103,264)
Net assets		1,639,421	1,575,231
Capital and reserves
Called up share capital	9	100	100
Revaluation reserve		847,415	550,494
Profit and loss account		791,906	1,024,637
Total equity		1,639,421	1,575,231

Staton Young (Residential) Limited

(Registration number: 07292288)
Balance Sheet as at 31 May 2021

For the financial year ending 31 May 2021 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.

Directors' responsibilities:

•	The members have not required the company to obtain an audit of its accounts for the year in question in accordance with section 476; and
•	The directors acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and the preparation of accounts.

These financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime and the option not to file the Profit and Loss Account has been taken.

Approved and authorised by the Board on 27 October 2021 and signed on its behalf by:
 

......................................... M L Brough Director

Staton Young (Residential) Limited

Notes to the Financial Statements for the Year Ended 31 May 2021

1	General information

The company is a private company limited by share capital, incorporated in England and Wales.

The address of the registered office is given in the company information on page 1 of the financial statements.

2	Accounting policies

Summary of significant accounting policies and key accounting estimates

The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.

Statement of compliance

These financial statements have been prepared in accordance with Financial Reporting Standard 102 Section 1A - 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' and the Companies Act 2006.

Basis of preparation

These financial statements have been prepared using the historical cost convention except that as disclosed in the accounting policies certain items are shown at fair value.

The financial statements are presented in Sterling (£) and rounded to the nearest £1.

Going concern

The emergence of the global pandemic known as Covid-19 has raised significant uncertainty throughout the UK economy. The Company is working closely with customers and suppliers to review their plans and expected activities in the coming months.

At the time of approving the accounts there is significant uncertainty over the projected income for the company because this pandemic is unprecedented so no one can accurately predict how the economy will react over the coming year. Consideration has been given to the risks of reduced turnover, slow payment or non-payment of debts, the value of other assets owned by the company.

The going concern of the business will be dependent on achieving minimum income projections. Based on the information available and using a reasonable range of assumptions, the business can continue as a going concern and the accounts have been prepared on this basis.

Staton Young (Residential) Limited

Notes to the Financial Statements for the Year Ended 31 May 2021

Key sources of estimation uncertainty

In the application of the company’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amounts 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 considered to be relevant. Actual results may differ from these estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to estimates are recognised in the period in which the estimate is revised, if the revision only affects that period, or in the period of revision and future period if the revision affects both the current and future periods.

The estimates and assumptions which have risk of causing material adjustment to the carrying amount of assets and liabilities are set out below:

Valuation of investment properties
These valuations rely on a number of estimations and assumptions being made in relation to market conditions and developments.

Impairment of debtors
On a periodic basis management makes an estimation of the recoverability of debtors. Management make such estimations taking into account their knowledge of the subsidiary companies in the group.

Revenue recognition

Turnover comprises the fair value of the consideration received or receivable for the sale of goods and provision of services in the ordinary course of the company’s activities. Turnover is shown net of sales/value added tax, returns, rebates and discounts.

The company recognises revenue when:
The amount of revenue can be reliably measured;
it is probable that future economic benefits will flow to the entity;
and specific criteria have been met for each of the company's activities.

Other grants

Grants are recognised at the fair value of the asset received or receivable when there is reasonable assurance that the company will comply with conditions attaching to them and the grants will be recognised using the accrual model.

Tax

The tax expense for the period comprises deferred tax. Tax is recognised in profit or loss, except that a change attributable to an item of income or expense recognised as other comprehensive income is also recognised directly in other comprehensive income.

The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the reporting date in the countries where the company operates and generates taxable income.

Deferred tax is recognised in respect of all timing differences between taxable profits and profits reported in the financial statements.

Unrelieved tax losses and other deferred tax assets are recognised when it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits.

Deferred tax is measured using the tax rates and laws that have been enacted or substantively enacted by the reporting date and that are expected to apply to the reversal of the timing difference.

Staton Young (Residential) Limited

Notes to the Financial Statements for the Year Ended 31 May 2021

Tangible assets

Tangible assets are stated in the balance sheet at cost, less any subsequent accumulated depreciation and subsequent accumulated impairment losses.

The cost of tangible assets includes directly attributable incremental costs incurred in their acquisition and installation.

Depreciation

Depreciation is charged so as to write off the cost of assets, other than land and properties under construction over their estimated useful lives, as follows:

Asset class	Depreciation method and rate
Plant, machinery and equipment	25% reducing balance basis

Investment property

Investment property is carried at fair value, derived from the current market prices for comparable real estate determined annually by the directors and in conjunction with work carried out by external valuers. The valuers use observable market prices, adjusted if necessary for any difference in the nature, location or condition of the specific asset. Changes in fair value are recognised in profit or loss.

Borrowings

Interest-bearing borrowings are initially recorded at fair value, net of transaction costs. Interest-bearing borrowings are subsequently carried at amortised cost, with the difference between the proceeds, net of transaction costs, and the amount due on redemption being recognised as a charge to the Profit and Loss Account over the period of the relevant borrowing.

Interest expense is recognised on the basis of the effective interest method and is included in interest payable and similar charges.

Borrowings are classified as current liabilities unless the company has an unconditional right to defer settlement of the liability for at least twelve months after the reporting date.

3	Staff numbers

The average number of persons employed by the company (including directors) during the year, was 2 (2020 - 2).

Staton Young (Residential) Limited

Notes to the Financial Statements for the Year Ended 31 May 2021

4	Tangible assets

	Plant, machinery and equipment £	Total £
Cost or valuation
At 1 June 2020	8,618	8,618
At 31 May 2021	8,618	8,618
Depreciation
At 1 June 2020	6,789	6,789
Charge for the year	457	457
At 31 May 2021	7,246	7,246
Carrying amount
At 31 May 2021	1,372	1,372
At 31 May 2020	1,829	1,829

5	Investment properties

	Total £
At 1 June 2020	1,735,500
Additions	423,912
Fair value adjustments	365,588
At 31 May 2021	2,525,000

The fair values of the investment properties were reviewed by the directors at 31 May 2021. The fair values have been determined by carrying out a review of the property and investment yields in the area. These properties were valued at £2,525,000 (2020 - £1,735,500).

The directors valuations are further supported by independent valuations carried out on all of the investment properties in April 2021. The valuations were carried out in accordance with RICS and have been considered by the directors in establishing their fair values as at 31 May 2021.

6

Debtors

	Note	2021 £	2020 £
Trade debtors		4,821	320
Amounts owed by group undertakings	11	381,775	837,671
Other debtors		90,100	31,306
		476,696	869,297

Staton Young (Residential) Limited

Notes to the Financial Statements for the Year Ended 31 May 2021

7

Creditors

	Note	2021 £	2020 £
Due within one year
Loans and borrowings	8	45,864	130,739
Trade creditors		56,319	33,773
Amounts owed to group undertakings	11	-	6,739
Taxation and social security		12,260	12,259
Other creditors		16,379	40,972
		130,822	224,482

	Note	2021 £	2020 £
Due after one year
Loans and borrowings	8	1,104,136	703,652

8	Loans and borrowings

	2021 £	2020 £
Current loans and borrowings
Bank borrowings	45,864	102,065
Bank overdrafts	-	28,674
	45,864	130,739

	2021 £	2020 £
Non-current loans and borrowings
Bank borrowings	1,104,136	703,652

Secured borrowings

Liabilities in respect of bank borrowings and overdrafts are secured by a first legal charge over the company's properties, a debenture over the company's whole assets and undertaking and an unlimited inter company composite guarantee between the company and its related companies. The carrying amounts at the year end were £1,150,000 (2020 - £834,391).

Staton Young (Residential) Limited

Notes to the Financial Statements for the Year Ended 31 May 2021

9	Share capital

Allotted, called up and fully paid shares

	2021		2020
	No.	£	No.	£
Ordinary shares of £1 each	100	100	100	100

10	Financial commitments, guarantees and contingencies

Amounts not provided for in the balance sheet

Commitments
The total amount of financial commitments not included in the balance sheet in relation to operating leases is £31,678 (2020 - £40,394).
 

Contingent liabilities
The company had entered into cross guarantees and debentures with its bankers to secure the liabilities of other related companies. The contingent liability as at 31 May 2021 is £5,809,371 (2020 - £nil). The future outcome is dependent on the performance of individual companies concerned. However the directors do not expect any liability to crystallise.

11	Related party transactions

During the year the following advances were made to directors:

Transactions with directors

2021	Advances to directors £	Repayments by director £	At 31 May 2021 £
Interest free loans repayable on demand	(424,850)	424,850	-

2020	At 1 June 2019 £	Advances to directors £	Repayments by director £	At 31 May 2020 £
Interest free loans repayable on demand	-	(17,955)	17,955	-

Summary of transactions with other related parties

The company has taken advantage of the exemption under FRS102 Section 1A in respect of disclosing transactions with other members of the group.