Suitcrown Limited - Accounts to registrar (filleted) - small 22.3

REGISTERED NUMBER: 01567721 (England and Wales)

UNAUDITED FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30 JUNE 2022

FOR

SUITCROWN LIMITED

Page

Company Information

1

Accountants' Report

2

Statement of Financial Position

3

to

4

Notes to the Financial Statements

5

to

9

DIRECTORS:

Mr J D Codling

Mrs S E Codling

Mr F W Johnston

SECRETARY:

Mrs S E Codling

REGISTERED OFFICE:

57 London Road

High Wycombe

Buckinghamshire

HP11 1BS

REGISTERED NUMBER:

01567721 (England and Wales)

ACCOUNTANTS:

Seymour Taylor Limited

57 London Road

High Wycombe

Buckinghamshire

HP11 1BS

BANKERS:

Lloyds Bank plc

79 High Street

Chesham

Buckinghamshire

HP5 1DE

The following reproduces the text of the report prepared for the directors in respect of the company's annual unaudited financial statements. In accordance with the Companies Act 2006, the company is only required to file a Statement of Financial Position. Readers are cautioned that the Income statement and certain other primary statements and the Report of the Directors are not required to be filed with the Registrar of Companies.

In order to assist you to fulfil your duties under the Companies Act 2006, we have prepared for your approval the financial statements of Suitcrown Limited for the year ended 30 June 2022 which comprise the Income Statement, Statement of Financial Position, Statement of Changes in Equity and the related notes from the company's accounting records and from information and explanations you have given us.

As a practising member firm of the Institute of Chartered Accountants in England and Wales (ICAEW), we are subject to its ethical and other professional requirements which are detailed within the ICAEW's regulations and guidance at http://www.icaew.com/en/membership/regulations-standards-and-guidance.

This report is made solely to the Board of Directors of Suitcrown Limited, as a body, in accordance with our terms of engagement. Our work has been undertaken solely to prepare for your approval the financial statements of Suitcrown Limited and state those matters that we have agreed to state to the Board of Directors of Suitcrown Limited, as a body, in this report in accordance with ICAEW Technical Release 07/16AAF. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than Suitcrown Limited and its Board of Directors, as a body, for our work or for this report.

It is your duty to ensure that Suitcrown Limited has kept adequate accounting records and to prepare statutory financial statements that give a true and fair view of the assets, liabilities, financial position and profit of Suitcrown Limited. You consider that Suitcrown 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 financial statements of Suitcrown 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 financial statements.

Seymour Taylor Limited

57 London Road

High Wycombe

Buckinghamshire

HP11 1BS

22 December 2022

FIXED ASSETS

Tangible assets

4

622

830

Investment property

5

2,040,050

1,940,050

2,040,672

1,940,880

CURRENT ASSETS

Debtors

6

5,706

8,570

Cash at bank

33,865

38,471

39,571

47,041

CREDITORS

Amounts falling due within one year

7

77,436

73,091

NET CURRENT LIABILITIES

(37,865

)

(26,050

)

TOTAL ASSETS LESS CURRENT LIABILITIES

2,002,807

1,914,830

PROVISIONS FOR LIABILITIES

8

127,284

77,736

NET ASSETS

1,875,523

1,837,094

CAPITAL AND RESERVES

Called up share capital

9

384,755

384,755

Share premium

12,000

12,000

Fair value reserve

10

1,077,214

1,026,762

Retained earnings

401,554

413,577

SHAREHOLDERS' FUNDS

1,875,523

1,837,094

The company is entitled to exemption from audit under Section 477 of the Companies Act 2006 for the year ended 30 June 2022.

The members have not required the company to obtain an audit of its financial statements for the year ended 30 June 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 22 December 2022 and were signed on its behalf by:

Mr J D Codling - Director

1.	STATUTORY INFORMATION

Suitcrown Limited is a private company limited by shares and incorporated in England and Wales. The address of the company's registered office is 57 London Road, High Wycombe, Buckinghamshire, HP11 1BS. The principal place of business is Grubbins, Grubbins Lane, Speen, Princes Risborough, Bucks, HP27 0SE. The registered number is 01567721.

The presentation currency of these financial statements is Sterling (£), being the currency of the primary economic market in which the entity operates (its functional currency). All amounts in these financial statements have been rounded to the nearest pound unless stated otherwise.

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

2.	ACCOUNTING POLICIES

Basis of preparing the financial statements

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

The financial statements have been prepared under the historical cost convention, modified to include certain items at fair value.

Going concern

Given the spread of the Coronavirus "COVID-19", the directors have reviewed and assessed the potential impact on the company over the next twelve months including the company's supply chains and capital resources. Following this, the directors consider there to be little impact on the company's ability to act as a going concern.

Although at the statement of financial position date the company had net current liabilities amounting to £37,865 (2021: £26,050), the company had significant net assets and is able to rely on the support of its directors. Based on information available at the date of approval and the directors' confirmation of continued support, the company continues to adopt the going concern basis in preparing these financial statements.

Turnover

Turnover represents the amount of rental income and recharged expenses accruing within the financial year, excluding value added tax.

Leasing incentives

The company from time to time provides incentives to enter into new lease agreements. These incentives may take the form of an initial period of the lease being rent free or at a reduced rent. In accordance with the standard accounting treatment for lease incentives, the rent free period or reduction in rent is allocated on a straight line basis over the full lease term or, where a lease commenced prior to the date of transition to Section 1A of FRS 102, up to the rent review date.

Tangible fixed assets

Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life.

Computer equipment

-

straight line - 25%

Investment property

Investment properties are properties which are held either to earn rental income or for capital appreciation or for both.

Investment properties are measured at cost upon initial recognition. The initial cost of the property comprises of its purchase price and any directly attributable expenditure.

Subsequently, investment property is measured at fair value at each reporting date with changes in fair value recognised in profit or loss in the period that they arise. No depreciation is provided in respect of investment properties applying the fair value model.

Taxation

Tax on the profit or loss 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 directly in equity or other comprehensive income, in which case it is recognised directly in equity or other comprehensive income.

Current tax is the expected tax payable or receivable on the taxable income or loss for the year, using tax rates enacted or substantively enacted at the statement of financial position date, and any adjustment to tax payable in respect of previous years.

Deferred tax

Deferred tax is provided on timing differences which arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in the financial statements. Differences between accumulated depreciation and tax allowances for the cost of a fixed asset, if and when all conditions for retaining the tax allowances have been met, are not provided for. Deferred tax is not recognised on permanent differences arising because certain types of income or expense are non-taxable or are disallowable for tax or because certain tax charges or allowances are greater or smaller than the corresponding income or expense.

Deferred tax is measured at the tax rate that is expected to apply to the reversal of the related difference, using tax rates enacted or substantively enacted at the statement of financial position date. Deferred tax balances are not discounted.

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

Financial instruments

The company has applied the provisions of Section 11 "Basic Financial Instruments" and Section 12 "Other Financial Instrument Issues" of FRS 102 to its financial statements.

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

3.	EMPLOYEES AND DIRECTORS

The average number of employees during the year was 3 (2021 - 2 ) .

4.	TANGIBLE FIXED ASSETS

Computer

equipment

£

COST

At 1 July 2021

and 30 June 2022

830

DEPRECIATION

Charge for year

208

At 30 June 2022

208

NET BOOK VALUE

At 30 June 2022

622

At 30 June 2021

830

5.	INVESTMENT PROPERTY

Total

£

FAIR VALUE

At 1 July 2021

1,940,050

Revaluations

100,000

At 30 June 2022

2,040,050

NET BOOK VALUE

At 30 June 2022

2,040,050

At 30 June 2021

1,940,050

The directors instructed Keith Martindale FRICS of Stream Partners Limited to carry out an independent professional valuation of all properties at 30 June 2020. The professional valuation took into account the fall in rental values and investment yields across the commercial investment property sector and the fact that the future impact COVID-19 would have on open market conditions remained unknown.

The directors assessed the valuation of the properties as at 30 June 2022, giving due consideration to local property market movements, the existing use of each property and the interest received from potential tenants when a property has become vacant. The directors' valuation amounted to £2,040,050 as at 30 June 2022 and Keith Martindale FRICS of Stream Partners Limited endorsed the valuations of the directors.

In respect of the investment properties stated at valuation above, the comparable historical cost values, thus excluding all revaluations to date, are as follows:

2022

2021

£

£

Historical cost

835,552

835,552

6.

DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2022

2021

£

£

Trade debtors

5,206

7,875

Other debtors

-

695

Directors' current accounts

500

-

5,706

8,570

7.

CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2022

2021

£

£

Trade creditors

15

3,050

Corporation tax

16,916

16,331

Social security and other taxes

1,283

-

VAT

7,990

6,741

Other creditors

3,625

2,500

Directors' current accounts

-

785

Accruals and deferred income

47,607

43,684

77,436

73,091

8.	PROVISIONS FOR LIABILITIES

2022

2021

£

£

Deferred tax

Unrealised gains on investment properties

127,284

77,736

Deferred

tax

£

Balance at 1 July 2021

77,736

Provided during year

49,548

Balance at 30 June 2022

127,284

9.	CALLED UP SHARE CAPITAL

Allotted, issued and fully paid:

Number:

Class:

Nominal

2022

2021

value:

£

£

21,500

Ordinary A

£1

21,500

21,500

263,255

Ordinary B

£1

263,255

263,255

100,000

Preference

£1

100,000

100,000

384,755

384,755

The preference shares are entitled to a fixed cumulative preferential cash dividend of 5 pence per annum on each share payable in two equal instalments on 1 January and 1 July each year.

The 'A' and 'B' shares are entitled to dividends as follows:-

1) an amount of profits up to and equivalent to but not exceeding the preference dividend multiplied by the nominal value of each issued 'A' and 'B' share shall be distributed amongst the holders of the 'A' shares and the 'B' shares but on the basis that each 'A' share has a nominal value equivalent to 1.4 'B' shares.

2) the balance of any profits (if any) shall be distributed amongst all shareholders on the basis that each 'A' share represents 1.4 'B' shares and 1.4 preference shares.

If the preference dividend is not paid it will accumulate from the due date and shall be a debt due by the company and be payable in priority to any other dividend.

On the winding up of the company the assets, after the payments of the liabilities, will be applied as follows:-

1) any arrears or accruals of the preference dividends to the holders of the preference shares.

2) the balance of the assets will be distributed in proportion to the amounts paid up or credited as paid up as such shares on the basis that each 'A' share represents 1.4 'B' shares and 1.4 preference shares.

Every member holding 'A' shares has seven votes for each share and every member holding 'B' shares and preference shares shall have five votes for each share.

Save as above all 'A' shares, 'B' shares and cumulative preference shares shall rank pari passu in all respects.

10.

RESERVES

Fair value reserve

£

At 1 July 2021

1,026,762

Revaluation of investment properties

100,000

Deferred tax on revaluation of investment properties

(49,548

)

At 30 June 2022

1,077,214

The tax treatment of items included above is the recognition of the movement in the deferred tax liability which will be due on the sale of investment properties.