Burley Louth Limited - Period Ending 2023-09-30

Burley Louth Limited

Contents

Company Information	1
Balance Sheet	2
Notes to the Unaudited Financial Statements	3 to 8

Burley Louth Limited

Company Information

Directors

R Guo Y J Chow T J Masamha

Registered office

115 Louth Road Holton-Le-Clay Grimsby DN36 5AD

Accountants

Hazlewoods LLP Staverton Court Staverton Cheltenham GL51 0UX

Burley Louth Limited

(Registration number: 12866673)
Balance Sheet as at 30 September 2023

	Note	2023 £	2022 £
Fixed assets
Tangible assets	4	242,306	247,366
Investments	5	1,143,945	1,143,595
		1,386,251	1,390,961
Creditors: Amounts falling due within one year	6	(711,718)	(608,278)
Total assets less current liabilities		674,533	782,683
Creditors: Amounts falling due after more than one year	6	(794,521)	(837,593)
Deferred tax liabilities	8	(1,872)	-
Net liabilities		(121,860)	(54,910)
Capital and reserves
Called up share capital		10	10
Profit and loss account		(121,870)	(54,920)
Shareholders' deficit		(121,860)	(54,910)

For the financial year ending 30 September 2023 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 in accordance with the special provisions relating to companies subject to the small companies regime within Part 15 of the Companies Act 2006.

These financial statements have been 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 19 June 2024 and signed on its behalf by:
 

T J Masamha
Director

Burley Louth Limited

Notes to the Unaudited Financial Statements for the Year Ended 30 September 2023

1

General information

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

The address of its registered office is:
115 Louth Road
Holton-Le-Clay
Grimsby
DN36 5AD
England

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 smaller entities - 'The Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland' and the Companies Act 2006 (as applicable to companies subject to the small companies' regime).

Basis of preparation

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

The presentational currency of the financial statements is Pounds Sterling, being the functional currency of the primary economic environment in which the company operates. Monetary amounts in these financial statements are rounded to the nearest Pound.

Going concern

After reviewing the company's forecasts and projections, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. The company is reliant on the continued support of Wesleyan Bank, via a loan of £885,318, and through related parties, via loans of £558,927. The company therefore continues to adopt the going concern basis in preparing its financial statements.

Critical accounting judgements and 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 that are considered to be relevant. Actual results may differ from these estimates.

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 if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods.
 

Judgements

No significant judgements have been made by management in preparing these financial statements.

Key sources of estimation uncertainty

No key sources of estimation uncertainty have been identified by management in preparing these financial statements other than those detailed in these accounting policies.

Burley Louth Limited

Notes to the Unaudited Financial Statements for the Year Ended 30 September 2023

Tangible assets

Tangible assets are stated in the statement of financial position 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
Freehold property	2% straight line

Business combinations

Business combinations are accounted for using the purchase method. The consideration for each acquisition is measured at the aggregate of the fair values at acquisition date of assets given, liabilities incurred or assumed, and equity instruments issued by the group in exchange for control of the acquired, plus any costs directly attributable to the business combination. When a business combination agreement provides for an adjustment to the cost of the combination contingent on future events, the group includes the estimated amount of that adjustment in the cost of the combination at the acquiisition date if the adjustment is probable and can be measured reliably.

Investments

Investments in equity shares which are publicly traded or where the fair value can be measured reliably are initially measured at fair value, with changes in fair value recognised in profit or loss. Investments in equity shares which are not publicly traded and where fair value cannot be measured reliably are measured at cost less impairment.

Cash and cash equivalents

Cash and cash equivalents comprise cash on hand and call deposits, and other short-term highly liquid investments that are readily convertible to a known amount of cash and are subject to an insignificant risk of change in value.

Trade creditors

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Accounts payable are classified as current liabilities if the company does not have an unconditional right, at the end of the reporting period, to defer settlement of the creditor for at least twelve months after the reporting date. If there is an unconditional right to defer settlement for at least twelve months after the reporting date, they are presented as non-current liabilities.

Trade creditors are recognised initially at the transaction price and all are repayable within one year and hence are included at the undiscounted amount of cash expected to be paid.

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.

Leases

Leases in which substantially all the risks and rewards of ownership are retained by the lessor are classified as operating leases. Payments made under operating leases are charged to profit or loss on a straight-line basis over the period of the lease.

Burley Louth Limited

Notes to the Unaudited Financial Statements for the Year Ended 30 September 2023

Share capital

Ordinary shares are classified as equity. Equity instruments are measured at the fair value of the cash or other resources received or receivable, net of the direct costs of issuing the equity instruments. If payment is deferred and the time value of money is material, the initial measurement is on a present value basis.

Financial instruments

Classification
Financial instruments are classified and accounted for according to the substance of the contractual arrangement, as 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. Where shares are issued, any component that creates a financial liability of the company is presented as a liability on the balance sheet. The corresponding dividends relating to the liability component are charged as interest expenses in the profit and loss account.

 Recognition and measurement
All financial assets and liabilities are initially measured at transaction price (including transaction costs), except for those financial assets classified as at fair value through profit or loss, which are initially measured at fair value (which is normally the transaction price excluding transaction costs), unless the arrangement constitutes a financing transaction. If an arrangement constitutes a financing transaction, the financial asset or financial liability is measured at the present value of the future payments discounted at a market rate of interest for a similar debt instrument.

 Impairment
Assets, other than those measured at fair value, are assessed for indicators of impairment at each balance sheet date. If there is objective evidence of impairment, an impairment loss is recognised in profit or loss as described below.

A non financial asset is impaired where there is objective evidence that, as a result of one or more events that occurred after initial recognition, the estimated recoverable value of the asset has been reduced. The recoverable amount of an asset is the higher of its fair value less costs to sell and its value in use.

3

Staff numbers

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

	2023  No.	2022  No.
Average number of employees	3	3

Burley Louth Limited

Notes to the Unaudited Financial Statements for the Year Ended 30 September 2023

4

Tangible assets

	Land and buildings £	Total £
Cost
At 1 October 2022	253,022	253,022
At 30 September 2023	253,022	253,022
Depreciation
At 1 October 2022	5,656	5,656
Charge for the year	5,060	5,060
At 30 September 2023	10,716	10,716
Carrying amount
At 30 September 2023	242,306	242,306
At 30 September 2022	247,366	247,366

Included within the net book value of land and buildings above is £242,306 (2022 - £247,366) in respect of freehold land and buildings. This property includes a residential flat above the trading pharmacy, which is available for rental by a third party on commercial terms. This has been treated as freehold property and not investment property.
 

5

Investments

	2023 £	2022 £
Investments in subsidiaries	1,143,945	1,143,595

Subsidiaries	£
Cost
At 1 October 2022	1,143,595
Additions	350
At 30 September 2023	1,143,945
Carrying amount
At 30 September 2023	1,143,945
At 30 September 2022	1,143,595

Burley Louth Limited

Notes to the Unaudited Financial Statements for the Year Ended 30 September 2023

6

Creditors

	Note	2023  £	2022  £
Due within one year
Loans and borrowings	7	151,417	131,511
Amounts due to related parties	9	558,927	475,483
Accrued expenses		1,374	1,284
		711,718	608,278

	Note	2023 £	2022 £
Due after one year
Loans and borrowings	7	794,521	837,593

7

Loans and borrowings

	Note	2023 £	2022 £
Current loans and borrowings
Bank borrowings		90,797	70,891
Other borrowings	9	60,620	60,620
		151,417	131,511

	2023 £	2022 £
Non-current loans and borrowings
Bank borrowings	794,521	837,593

Included in the loans and borrowings are the following amounts due after more than five years:

Borrowings due after five years

	2023 £	2022 £
After more than five years by instalments	431,330	554,028

The bank loan is secured over the assets of the company.

Burley Louth Limited

Notes to the Unaudited Financial Statements for the Year Ended 30 September 2023

8

Deferred tax

Deferred tax assets and liabilities

2023	Liability £
Capital allowances in excess of depreciation	1,872
	1,872

2022	Liability £
Capital allowances in excess of depreciation	-
	-

9

Related party transactions

Summary of transactions with key management

Key management personnel are considered to be the directors of the company.

At the balance sheet date the company owed the directors £60,620 (2022 - £60,620). There are no fixed repayment terms and no interest is charged on the loan.
 

Summary of transactions with all subsidiaries

T.A. Burley Limited
(Subsidiary)
At the balance sheet date, the company owed T.A. Burley Limited £500,845 (2022 - £299,992). There are no fixed repayment terms and no interest is charged on the loan.
 

Summary of transactions with other related parties

Morrill Investments Limited
(Rui Guo and Yee Jiun Chow are directors of Morrill Investments Limited)
At the balance sheet date, the company owed Morrill Investments Limited £58,082 (2022 - £58,082). There are no fixed repayment terms and no interest is charged on the loan.

Meds UK Limited
(Tapiwanashe Masamha is a director of Meds UK Limited)
At the balance sheet date, the company owed Meds UK Limited £nil (2022 - £117,409). There are no fixed repayment terms and no interest is charged on the loan.