NGU Homelettings Ltd - Period Ending 2016-12-31

Registration number: 06650596

NGU Homelettings Ltd

Annual Report and Unaudited Financial Statements

for the Year Ended 31 December 2016

NGU Homelettings Ltd

(Registration number: 06650596)
Balance Sheet as at 31 December 2016

	Note	2016  £	2015  £
Fixed assets
Tangible assets	4	42,223	55,197
Current assets
Debtors	5	39,447	107,698
Cash at bank and in hand		556,031	241,984
		595,478	349,682
Creditors: Amounts falling due within one year	6	(423,380)	(193,092)
Net current assets		172,098	156,590
Total assets less current liabilities		214,321	211,787
Deferred tax liabilities		(3,714)	(5,564)
Net assets		210,607	206,223
Capital and reserves
Called up share capital		103	103
Profit and loss account		210,504	206,120
Total equity		210,607	206,223

For the financial year ending 31 December 2016 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 1 September 2017 and signed on its behalf by:
 

N Fitzakerley

Director

C Fitzakerley

Director

The notes on pages 2 to 6 form an integral part of these financial statements.
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NGU Homelettings Ltd

Notes to the Financial Statements for the Year Ended 31 December 2016

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:
469-471 Durham Road
Lowfell
Gateshead
Tyne and Wear
NE9 5EX

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 - 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' and the Companies Act 2006.

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 Pound 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.

Judgements and estimation uncertainty

These financial statements do not contain any significant judgements or estimation uncertainty.

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
Computer equipment	33% on cost
Fixtures & fittings	15% on cost
Motor vehicles	25% reducing balance

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.

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NGU Homelettings Ltd

Notes to the Financial Statements for the Year Ended 31 December 2016

Trade debtors

Trade debtors are amounts due from customers for merchandise sold or services performed in the ordinary course of business.

Trade debtors are recognised initially at the transaction price. All trade debtors are repayable within one year and hence are included at the undiscounted cost of cash expected to be received. A provision for the impairment of trade debtors is established when there is objective evidence that the company will not be able to collect all amounts due according to the original terms of the debtors.

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.

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.

Dividends

Dividend distribution to the company’s shareholders is recognised as a liability in the financial statements in the reporting period in which the dividends are declared.

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NGU Homelettings Ltd

Notes to the Financial Statements for the Year Ended 31 December 2016

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.

The recoverable amount of goodwill is derived from measurement of the present value of the future cash flows of the cash-generating units ('CGUs') of which the goodwill is a part. Any impairment loss in respect of a CGU is allocated first to the goodwill attached to that CGU, and then to other assets within that CGU on a pro-rata basis.

Where indicators exist for a decrease in impairment loss, the prior impairment loss is tested to determine reversal. An impairment loss is reversed on an individual impaired asset to the extent that the revised recoverable value does not lead to a revised carrying amount higher than the carrying value had no impairment been recognised. Where a reversal of impairment occurs in respect of a CGU, the reversal is applied first to the assets (other than goodwill) of the CGU on a pro-rata basis and then to any goodwill allocated to that CGU.

For financial assets carried at amortised cost, the amount of an impairment is the difference between the asset’s carrying amount and the present value of estimated future cash flows, discounted at the financial asset’s original effective interest rate.

For financial assets carried at cost less impairment, the impairment loss is the difference between the asset’s carrying amount and the best estimate of the amount that would be received for the asset if it were to be sold at the reporting date.

Where indicators exist for a decrease in impairment loss, and the decrease can be related objectively to an event occurring after the impairment was recognised, the prior impairment loss is tested to determine reversal. An impairment loss is reversed on an individual impaired financial asset to the extent that the revised recoverable value does not lead to a revised carrying amount higher than the carrying value had no impairment been recognised.
 

3

Staff numbers

The average number of persons employed by the company in the year was 10 (2015 - 11).

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NGU Homelettings Ltd

Notes to the Financial Statements for the Year Ended 31 December 2016

4

Tangible assets

	Furniture, fittings and equipment  £	Motor vehicles  £	Total £
Cost
At 1 January 2016	97,888	61,136	159,024
Additions	8,619	-	8,619
Disposals	(24,024)	-	(24,024)
At 31 December 2016	82,483	61,136	143,619
Depreciation
At 1 January 2016	73,868	29,959	103,827
Charge for the year	14,633	6,960	21,593
Eliminated on disposal	(24,024)	-	(24,024)
At 31 December 2016	64,477	36,919	101,396
Carrying amount
At 31 December 2016	18,006	24,217	42,223
At 31 December 2015	24,020	31,177	55,197

5

Debtors

	2016  £	2015  £
Trade debtors	22,988	93,100
Other debtors	-	450
Prepayments	16,459	14,148
	39,447	107,698

6

Creditors

	Note	2016  £	2015  £
Due within one year
Loans and borrowings	7	49,152	60,000
Trade creditors		2,035	9,848
Amounts due to related parties	9	151,078	(63,819)
Social security and other taxes		9,459	24,610
Other creditors		184,545	158,749
Accrued expenses		4,585	2,400
Corporation tax liability		22,526	1,304
		423,380	193,092

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NGU Homelettings Ltd

Notes to the Financial Statements for the Year Ended 31 December 2016

7

Loans and borrowings

	2016 £	2015 £
Current loans and borrowings
Other borrowings	49,152	60,000

8

Financial commitments, guarantees and contingencies

The total amount of financial commitments not included in the balance sheet is £17,500 (2015 - £26,250).

9

Related party transactions

At 31 December 2016, the company owed £49,152 (2015: £60,000) to N Fitzakerley and C Fitzakerley in the form of a directors' loan account.

At 31 December 2016, the company owed £18,404 to (2015: was owed £100 by) NCF Holdings Limited, its immediate parent company.

At 31 December 2016, the company was owed £168,717 (2015: £63,719) by NGU Homesales Limited, a group company.

At 31 December 2016, the company owed £48,643 (2015: £nil) to NGU Property Refurbishments Limited, a group company.

At 31 December 2016, the company was owed £30,621 (2015: £nil) by John Alfred Limited, a company under common control.

At 31 December 2016, the company owed £329,265 (2015: £nil) to NGU Homebuyers, a partnership in which N Fitzakerley and C Fitzakerley are partners.

At 31 December 2016, the company was owed £45,896 (2015: £nil) by Never Give Up Escape Rooms Limited, a company under common control.

These loans are interest free with no fixed repayment terms.
 

10

Transition to FRS 102

This is the first period that the company has presented its financial statements under Financial Reporting Standard 102 (FRS 102) issued by the Financial Reporting Council. The last financial statements under previous UK GAAP were for the period from 1 January 2015 to 31 December 2015 and the date of transition to FRS 102 was therefore 1 January 2015. There are no transitional adjustments as a result of adopting FRS 102 for the first time.

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