| BLACKWATER SECURITIES LIMITED |
| Notes to the Accounts |
| for the year ended 31 March 2022 |
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| 1 |
Accounting policies |
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Company information |
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Blackwater Securities Limited is a private company limited by shares incorporated in England and Wales. The registered office is Vyman House, 104 College Road, Harrow HA1 1BQ |
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| 1.1 |
Accounting convention |
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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. |
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The financial statements are prepared in sterling, which is the functional currency of the company. Monetary a mounts in these financial statements are rounded to the nearest £. |
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The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below. |
| 1.2 |
Going Concern |
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At the time of approving the financial statements, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements. |
| 1.3 |
Turnover |
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Turnover is recognised at the fair value of the consideration received or receivable for rent provided in the normal course of business, and is shown net of VAT and other sales related taxes. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates. |
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| 1.4 |
Tangible fixed assets |
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Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses. |
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Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases: |
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Equipment |
33% reducing balance |
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The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is credited or charged to profit or loss. |
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| 1.5 |
Investments |
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Investments in subsidiaries, associates and joint ventures are measured at cost less any accumulated impairment losses. Listed investments are measured at fair value. Unlisted investments are measured at fair value unless the value cannot be measured reliably, in which case they are measured at cost less any accumulated impairment losses. Changes in fair value are included in the profit and loss account. |
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Investment properties |
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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. |
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| 1.6 |
Impairment of fixed assets |
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At each reporting period end date, the company reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs |
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| 1.7 |
Cash Equivalents |
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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. |
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| 1.8 |
Financial instruments |
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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. |
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Financial instruments are recognised in the company's statement of financial position when the company becomes party to the contractual provisions of the instrument |
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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 |
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Basic financial assets |
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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. |
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Basic financial liabilities |
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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. |
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Debt instruments are subsequently carried at amortised cost, using the effective interest rate method. |
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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. |
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| 1.9 |
Equity instruments |
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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. |
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| 1.10 |
Taxation |
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The tax expense represents the sum of the tax currently payable and deferred tax. |
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Current tax |
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The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the income statement 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. |
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Deferred tax |
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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. |
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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 income statement, 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. |
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| 1.11 |
Employee benefits |
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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. |
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The cost of any unused holiday entitlement is recognised in the period in which the employee's services are received |
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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. |
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| 1.12 |
Leases |
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Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leases asset are consumed. |
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| 1.13 |
Government Grants |
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Government grants are recognised at the fair value of the asset received or receivable when there is reasonable assurance that the grant conditions will be met and the grants will be received. |
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A grant that specifies performance conditions is recognised in income when the performance conditions are met. Where a grant does not specify performance conditions it is recognised in income when the proceeds are received or receivable. A grant received before the recognition criteria are satisfied is recognised as a liability. |
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| 2.00 |
Judgements and key sources of estimation uncertainty |
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In the application of the company's accounting policies, the directors are 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. |
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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 |
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| 3 |
Employees |
2022 |
|
2021 |
| Number |
Number |
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Average number of persons employed by the company |
3 |
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3 |
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| 4 |
Tangible fixed assets |
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Plant and machinery etc |
| £ |
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Cost |
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At 1 April 2021 |
17,906 |
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At 31 March 2022 |
17,906 |
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Depreciation |
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At 1 April 2021 |
14,020 |
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Charge for the year |
1,282 |
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At 31 March 2022 |
15,302 |
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Net book value |
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At 31 March 2022 |
2,604 |
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At 31 March 2021 |
3,886 |
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| 5 |
Investment Property |
| Investments in |
| subsidiary |
| undertakings |
| £ |
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Cost |
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At 1 April 2021 |
10,591,730 |
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Additions |
50,000 |
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At 31 March 2022 |
10,641,730 |
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The valuation of the investment properties was made on 31 March 2021 by the directors on a open market basis. No Depreciation is provided in respect of these properties. |
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| 6 |
Debtors |
2022 |
|
2021 |
| £ |
£ |
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Trade debtors |
48,000 |
|
132,705 |
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Amounts owed by group undertakings and undertakings in which the company has a participating interest |
|
- |
|
40,000 |
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Prepayments and accrued income |
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|
- |
|
2,262 |
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Other debtors |
28,117 |
|
3,000 |
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76,117 |
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177,967 |
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| 7 |
Creditors: amounts falling due within one year |
2022 |
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2021 |
| £ |
£ |
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Non-equity preference shares |
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Bank loans and overdrafts |
- |
|
8,333 |
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VAT |
34,925 |
|
- |
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Trade creditors |
26,822 |
|
274 |
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Amounts owed to group undertakings and undertakings in which the company has a participating interest |
|
7,770,107 |
|
7,849,030 |
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Taxation and social security costs |
35,106 |
|
121,096 |
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Other creditors |
61,199 |
|
135,563 |
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7,928,159 |
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8,114,296 |
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| 8 |
Creditors: amounts falling due after one year |
2022 |
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2021 |
| £ |
£ |
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Bank loans |
41,667 |
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41,667 |
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| 9 |
Called up Share Capital |
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2022 |
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2021 |
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2022 |
|
2021 |
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Ordinary share capital |
Number |
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Number |
£ |
£ |
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Issued and Fully paid |
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Ordinary shares of £1 each |
2 |
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2 |
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2 |
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2 |
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| 10 |
Non-Distributable profits reserve |
2022 |
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2021 |
| £ |
£ |
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At 1 April 2021 |
1,609,723 |
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1,609,723 |
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At 31 March 2022 |
1,609,723 |
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1,609,723 |
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| 11 |
Operating lease commitments |
2022 |
|
2021 |
| £ |
£ |
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Total future minimum payments under non-cancellable operating leases |
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- |
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8,555,000 |
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| 12 |
Parent Company |
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The ultimate parent company is Newcroft Investments Limited, a company registered in England and Wales. |
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The company regards Allan Taylor as its ultimate controlling party by virtue of his interest in the share capital of Newcroft Investments Limited. |
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| 13 |
Other information |
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BLACKWATER SECURITIES LIMITED is a private company limited by shares and incorporated in England. Its registered office is: |
|
VYMAN HOUSE |
|
104 COLLEGE ROAD |
|
HARROW |
|
MIDDLESEX |
|
HA1 1BQ |
