LOBO_INVESTMENTS_LIMITED - Accounts

The directors of the company have elected not to include a copy of the profit and loss account within the financial statements.true

For the financial year ended 28 February 2017 the company was entitled to exemption from audit under section 477 of the Companies Act 2006.

The directors acknowledge their responsibilities for complying with the requirements of the Act 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.

LOBO INVESTMENTS LIMITED is a private company limited by shares incorporated in England and Wales. The registered office is 1 Queens Parade, Brownlow Road, London, N11 2DN.

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 £.

These financial statements for the year ended 28 February 2017 are the first financial statements of LOBO INVESTMENTS LIMITED prepared in accordance with FRS 102, The Financial Reporting Standard applicable in the UK and Republic of Ireland. The date of transition to FRS 102 was 1 March 2015. An explanation of how transition to FRS 102 has affected the reported financial position and financial performance is given in note 12.

Rental income is recognised on a straight line basis over the term of the relevant lease.

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

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:

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. The surplus or deficit on revaluation is recognised in the profit and loss account.

At each reporting period end date, the company reviews the carrying amounts of its 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).

Impairment tests on current assets investment have been carried out and any impairment losses have been recognised in the profit and loss account.

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 balance sheet when the company becomes party to the contractual provisions of the instrument.

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.

Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs.

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.

Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.

Basic financial liabilities, including creditors, bank loans and loans from fellow group companies are initially recognised at transaction price.

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.

Equity instruments issued by the company are recorded at the proceeds received, net of direct issue 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 profit and loss account 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. Deferred tax is charged or credited in the profit and loss account, 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.

Rentals payable under operating leases, including any lease incentives received, are charged to income 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 lease asset are consumed.

The fair value of the investment properties have been arrived at on the basis of a valuation carried out on 26 August 2016 by Anderson Wilde & Harris Chartered Surveyors, who are not connected with the company. The valuation was made on an open market value basis by reference to market evidence of transaction prices for similar properties.

Other creditors include an amount of £1,930,055 (2016: £1,980,609) due to Lobo Seafood Limited, a company indirectly controlled by Mr A and Mrs C Lobo.

The following are the major deferred tax liabilities and assets recognised by the company and movements thereon:

At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, as follows:

During the year, rental income totalling £20,000 (2016: £107,905) was received at market rate from Lobo Seafood Limited, a company controlled indirectly by Mr A and Mrs C Lobo. In comparison to the previous year, when most of the properties owned by the company were rented out to Lobo Seafood Limited, this year only one property was rented to the company hence the reduction in rental income.

Lobo Investments Limited has given guarantees to the bank in respect of the facilities granted to Lobo Seafood Limited, which as at 28 February 2017 were £1,680,674 (2016: £337,683).

Other debtors (note 8) include an amount of £12,624 (2016: £25,620) due by Taylor Bridge (UK) Limited, a company in which Dr Cheryl Rita Taylor is also a director and shareholder. No interest is charged on the outstanding balance. In addition, during the year, Taylor Bridge (UK) Limited charged the company £17,760 (2016: £23,115) for managing the property at 322 Brixton road.

Also included in other debtors is £27,716 (2016: £nil) owed by Lobo Investment (UK) Limited, a company controlled by Keith Xavier Lobo.

The company was controlled throughout the current and previous year by its directors by virtue of the fact that between them, they own all the company's issued share capital.

For all periods up to and including the year ended 28 February 2016, the company prepared its financial statements in accordance with previously extant United Kingdom Generally Accepted Accounting Practice (''UK GAAP''). These financial statements for the year ended 28 February 2017 are the first the company has prepared in accordance with FRS 102 ''The Financial Reporting Standard applicable in the UK and Republic of Ireland''.

Under previous UK GAAP, revaluation gains and losses on investment properties were recorded in the revaluation reserve account. FRS 102 requires revaluation gains and losses on investment properties to be recorded in the income statement. Therefore a gain of £791,014 in 2016 has been recorded in the 2016 profit & loss reserves. This adjustment has no impact on net assets.

Under FRS 102, deferred tax is required to be provided for on the revaluation of investment properties. This resulted in a reduction in the net assets of £158,203.