GAINWAY_LIMITED - Accounts

The director presents his report and financial statements for the year ended 30 June 2016.

The director is responsible for preparing the financial statements in accordance with applicable law and regulations.

Company law requires the director to prepare financial statements for each financial year. Under that law the director has elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). The financial statements are required by law to give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing those financial statements, the director is required to:
- select suitable accounting policies and then apply them consistently;
- make judgements and estimates that are reasonable and prudent;
- prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.

The director is responsible for keeping adequate accounting records that disclose with reasonable accuracy at any time the financial position of the company and enable him to ensure that the financial statements comply with the Companies Act 2006. He is also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

This report has been prepared in accordance with the special provisions relating to small companies within Part 15 of the Companies Act 2006.

The company had net current liabilities of £243,502 at 30 June 2016. The company meets its day to day working capital requirements through the support of the ultimate parent company, Abbeyclone Limited. It is therefore considered appropriate to prepare the accounts on a going concern basis.

Investment properties are included in the balance sheet at their open market value. Depreciation is provided only on those investment properties which are leasehold and where the unexpired lease term is less than 20 years.

Although this accounting policy is in accordance with the Financial Reporting Standard for Smaller Entities (effective April 2008), it is a departure from the general requirement of the Companies Act 2006 for all tangible assets to be depreciated. In the opinion of the director compliance with the standard is necessary for the financial statements to give a true and fair view. Depreciation or amortisation is only one of many factors reflected in the annual valuation and the amount of this which might otherwise have been charged cannot be separately identified or quantified.

All inter-company loan account balances are written off at the end of each accounting period.

Deferred taxation is provided at appropriate rates on all timing differences using the liability method only to the extent that, in the opinion of the director, there is a reasonable probability that a liability or asset will crystallise in the foreseeable future.

The valuations of investment properties were made as at 30 June 2016 on an open market basis by G T Lever, a director of the company, in consultation with CNC Property Fund Management Limited, a firm regulated by RICS. No depreciation is provided in respect of these properties.

On a historical cost basis these would have been included at an original cost of £1,329,198 (2015: £1,329,198).

The company has guaranteed the rental payments in the lease of its former subsidiary undertaking, Bed Station Limited. The lease is for ten years from 01 June 2016 and the total rent payable throughout the duration of the lease is £1,344,216. At 30 June 2016 the rent remaining to be paid amounts to £1,335,049.  The company is up to date on the rent instalments.

The investment property is used as security (first legal charge) to support other debts due to Sunningdale Investments Limited, a company registered in Jersey by other companies associated with the director, G T Lever.

At 30 June 2016 the company was committed to making the following payments under non-cancellable operating leases in the year to 30 June 2017:

The ultimate parent company is Abbeyclone Limited, a company registered in England and Wales, which owns 100% of the issued share capital of the company.  The ultimate parent company's financial statements are available by writing to 1st floor office, 189-193 Earls Court Road, London, SW5 9AN.

Rent and insurance of £178,650 (2015: £172,781) was charged from Golden Lion (Harley Street) Limited, an associated company, in accordance with the lease terms.

At 30 June 2016 all inter-company balances with the parent company were written off.

The credit charged to the profit and loss account is £152,000 (2015: credit £85,000) and relates to Abbeyclone Limited, the parent company.