LUSTRUM_RETAIL_LIMITED - 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 August 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.

Lustrum Retail Limited is a private company limited by shares incorporated in England and Wales. The registered office is 17 Alvaston Business Park, Middlewich Road, Nantwich, Cheshire, CW5 6PF. The business address is 4th Floor, Steam Mill Business Centre, Steam Mill Street, Chester, CH3 5AN.

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.

Turnover represents rental and other related income and is recognised at the fair value of the consideration received or receivable, net of VAT.

Investment property, which is property held to earn rentals and/or for capital appreciation, is initially recognised at cost, which includes the purchase cost (lease premiums) 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.

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.

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.

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.

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

The investment property was valued on an open market basis, as at 31 August 2021 by the directors of the company.

The investment property is held under a lease which includes an annual commitment for ground rent of £17,500 for 250 years from 2020.

The bank loans are secured by a fixed charge over the investment property and floating charges over the assets of the company.

Included in other creditors is a loan from a related party of £634,100 (2020 - £438,312), which is secured by way of a fixed charge over the property.

The bank loans are secured by a fixed charge over the investment property and floating charges over the assets of the company.

In the previous year the company re-classified its 1,350 Ordinary £1 shares into two classes:

• 1,080 Ordinary A £1 shares with all rights attached

• 270 Ordinary B £1 shares with no voting rights

Non-distributable reserves represents the fair value increase of the investment property above its original cost less the associated deferred tax liability. During the year the fair value increase was £766.597 (2020 - decrease of £250,915) and there was an increase in the deferred tax liability of £145,653 (2020 - decrease £47,674).

During the year the company entered into the following transactions with related parties:

The following amounts were outstanding at the reporting end date: