The_Gorhambury_Estates_Co - Accounts

The directors of the company have elected not to include a copy of the income statement within the financial statements.true

For the financial year ended 30 September 2022 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.

The Gorhambury Estates Company Limited is a private company limited by shares incorporated in England and Wales. The registered office is The Estate Office, Gorhambury, St Albans, Hertfordshire, AL3 6AH.

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 investment properties and certain financial instruments at fair value. The principal accounting policies adopted are set out below.

Admissions and location fee income is recognised at the fair value of consideration received or receivable in the normal course of business, and is shown net of VAT.

Rental income from operating leases is recognised in profit or loss on a straight line basis over the lease term.

Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.

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:

Freehold land is not depreciated.

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.

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.

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.

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell.

At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss.

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.

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.

Financial instruments are recognised in the company's statement of financial position when the company becomes party to the contractual provisions of the instrument.

Basic financial assets, which include debtors, 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.

Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.

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.

Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

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.

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.

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 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.

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.

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. Where items recognised in other comprehensive income or equity are chargeable to or deductible for tax purposes, the resulting current or deferred tax expense or income is presented in the same component of comprehensive income or equity as the transaction or other event that resulted in the tax expense or income. 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.

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.

The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.

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.

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.

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.

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.

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.

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

Investment property comprises both land and buildings that are held for the purposes of deriving a rental income and/or for capital appreciation purposes.

The fair value of the investment property has been arrived at on the basis of a valuation carried out as at 30 September 2020 by Strutt & Parker, Chartered Surveyors.

In the opinion of the directors, the prepared valuation is a reasonable approximation of the fair value of the investment property held at the balance sheet date.

On the historical cost basis, fixed asset investments would be stated at £1,938,629 (2021 - £3,097,392).

Each share is entitled to full voting, dividend and capital distribution rights.

At the reporting end date the company had contracted with tenants for the following minimum lease payments:

At the balance sheet date, £450,937 (2021 - £450,937) was due to the company's parent, Grimston Trust Limited. This balance is considered to be non-interest bearing and repayable on demand.

At the balance sheet date, £89,970 (2021 - £89,190) was due from Kingsbury Farms Limited and £12,991 (2021 - £4,317) was due from Roman Theatre Limited. Both companies are fellow subsidiaries of Grimston Trust Limited. Each balance is considered to be non-interest bearing and repayable on demand.

Patrick Beddows, a director of the company, is a partner with Strutt & Parker. There is an agency contract between the company and Strutt & Parker. Fees paid under the agency agreement and for other professional services provided by Strutt & Parker in the year amounted to £157,483 (2021 - £172,351).

During the year, establishment expenses considered to be personal expenditure of Lord Verulam, a director of the company, totalling £7,469 (2021 - £18,471) were charged to the current account of Lord Verulam. Lord Verulam transferred £nil (2021 - £24,500) to the company in respect to amounts charged to his current account.

At the balance sheet date, £3,508 was due to (2021 - £10,979) Lord Verulam.

Viscount Grimston, a director of the company, rented a flat at the mansion during the year. The total charge for services provided, rental and the reimbursement of personal expenditure for the financial year totalled £297,888 (2021 - £464,481).

During the year, costs of £7,089 (2021 - £9,725) were incurred in relation to the construction and maintenance of a swimming pool. These costs are considered to be personal expenditure and have therefore been charged to the current account of Viscount Grimston.

Viscount Grimston introduced funds of £749,968 (2021 - £757,971) in respect of amounts charged to his current account, and in order to fund ongoing projects.

At the balance sheet date, £1,207,060 (2021 - £762,069) was due to Viscount Grimston.

The parent company is Grimston Trust Limited, a company registered in England and Wales. The registered office of the parent company is The Estate Office, Gorhambury, St Albans, Hertfordshire, AL3 6AH.

There is no ultimate controlling party.