Lothbury Estates Limited - Accounts to registrar - small 17.2

Unaudited Financial Statements for the Year Ended 31st March 2017

for

Lothbury Estates Limited

Page

Company Information

1

Balance Sheet

2

Notes to the Financial Statements

4

DIRECTORS:

N M Westmore

B W Hooke

SECRETARY:

N M Westmore

REGISTERED OFFICE:

111a Station Road

West Wickham

Kent

BR4 0PX

REGISTERED NUMBER:

00327097 (England and Wales)

ACCOUNTANTS:

Daniels & Co (Accountants) Limited

Chartered Accountants

111a Station Road

West Wickham

Kent

BR4 0PX

BANKERS:

National Westminster Bank PLC

Charing Cross Branch

Cavell House

2a Charing Cross Road

London

WC2H 0PD

SOLICITORS:

Fuglers Solicitors

70 Charlotte Street

London

W1T 4QG

FIXED ASSETS

Investment property

4

2,855,000

2,855,000

CURRENT ASSETS

Debtors

5

28,726

31,527

Cash at bank

145,507

117,441

174,233

148,968

CREDITORS

Amounts falling due within one year

6

79,076

75,753

NET CURRENT ASSETS

95,157

73,215

TOTAL ASSETS LESS CURRENT LIABILITIES

2,950,157

2,928,215

PROVISIONS FOR LIABILITIES

121,197

127,890

NET ASSETS

2,828,960

2,800,325

CAPITAL AND RESERVES

Called up share capital

29,060

29,060

Retained earnings

7

2,799,900

2,771,265

SHAREHOLDERS' FUNDS

2,828,960

2,800,325

The company is entitled to exemption from audit under Section 477 of the Companies Act 2006 for the year ended 31st March 2017.

The members have not required the company to obtain an audit of its financial statements for the year ended 31st March 2017 in accordance with Section 476 of the Companies Act 2006.

The directors acknowledge their responsibilities for:

(a)	ensuring that the company keeps accounting records which comply with Sections 386 and 387 of the Companies Act 2006 and

(b)

preparing financial statements which give a true and fair view of the state of affairs of the company as at the end of each financial year and of its profit or loss for each financial year in accordance with the requirements of Sections 394 and 395 and which otherwise comply with the requirements of the Companies Act 2006 relating to financial statements, so far as applicable to the company.

The financial statements have been prepared and delivered in accordance with the provisions of Part 15 of the Companies Act 2006 relating to small companies.

In accordance with Section 444 of the Companies Act 2006, the Income Statement has not been delivered.

The financial statements were approved by the Board of Directors on 10th October 2017 and were signed on its behalf by:

N M Westmore - Director

B W Hooke - Director

1.	STATUTORY INFORMATION

Lothbury Estates Limited is a private company, limited by shares , registered in England and Wales. The

company's registered number and registered office address can be found on the Company Information page.

2.	ACCOUNTING POLICIES

Basis of preparing the financial statements

These financial statements have been prepared in accordance with the provisions of Section 1A "Small Entities" of Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention as modified by the revaluation of certain assets.

Turnover

Turnover represents the total rental income receivable during the year derived from assets let under operating

leases. Income is recognised on a straight line basis of the lease term.

Where incentives. such as rent free periods, or periods of reduced rent, are given to tenants, the cost of these

incentives will be spread over the lease term on a straight line basis.This represents a change in accounting

policy. Previously such incentives were spread over the lesser of either, the lease term, or the period up to the

rent review date at which the rent is first expected to be adjusted to the prevailing market rate.

Under S35.10(p) of FRS 102, the company is permitted to recognise the cost associated with existing lease

incentives under its previous accounting policy.

Investment property

FRS 102 states that investment properties, whose fair value can be measure reliably without undue cost or effort

will be measured at fair value at each reporting date. Changes in fair value will be recognised in the Profit and

Loss account.

Previously the surplus or deficit on revaluation was transferred to a separate revaluation reserve, where such

transfers are now recognised in the Profit and Loss account.This represents a change in accounting policy.

Valuation at 31st March 2017

The board of directors have decided not to revalue the company's investment property portfolio at 31st March

2017 and the investment properties will be stated at the last valuation undertaken which was at 31st March 2015.

This accounting treatment does not accord to the requirements of FRS 102.

Taxation

Taxation for the year comprises current and deferred tax. Tax is recognised in the Income Statement, except to

the extent that it relates to items recognised in other comprehensive income or directly in equity.

Current or deferred taxation assets and liabilities are not discounted.

Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or

substantively enacted by the balance sheet date.

Deferred tax

Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance

sheet date.

Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from

those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that

have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the

timing difference.

Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they

will be recovered against the reversal of deferred tax liabilities or other future taxable profits.

Deferred tax is now recognised on all timing differences, including those arising on revaluation. This represents a

change in accounting policy as timing differences on revaluations were previously declared by way of note, but

no provision was made for these liabilities.

3.	EMPLOYEES AND DIRECTORS

The average number of employees during the year was 3 .

4.	INVESTMENT PROPERTY

Total

£

FAIR VALUE

At 1st April 2016

and 31st March 2017

2,855,000

NET BOOK VALUE

At 31st March 2017

2,855,000

At 31st March 2016

2,855,000

Cost or valuation at 31st March 2017 is represented by:

£

Valuation in 2015

2,855,000

If investment properties had not been revalued they would have been included at the following historical cost:

2017

2016

£

£

Cost

1,425,002

1,425,002

Investment properties were valued on an open market basis on 31st March 2015 by the directors of Lothbury Estates Limited

.

Valuation at 31st March 2017

The director's have decided not to revalue the company's investment property portfolio at 31st March 2017 and

the investment properties will be stated at the last valuation undertaken which was at 31st March 2015. This

accounting treatment does not accord to the requirements of FRS 102.

Taxation

A provision for corporation tax has been made for capital gains tax that would become payable if the company

disposed of its investment properties at the valuation shown in these financial statements. If the properties were

disposed of at these values then the maximum potential liability is estimated to be £121,197 (2016: £127,890).

5.

DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2017

2016

£

£

Trade debtors

28,726

30,189

Other debtors

-

1,338

28,726

31,527

6.

CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2017

2016

£

£

Taxation and social security

28,283

27,499

Other creditors

50,793

48,254

79,076

75,753

7.

RESERVES

Retained

earnings

£

At 1st April 2016

2,771,265

Profit for the year

110,003

Dividends

(81,368

)

At 31st March 2017

2,799,900

Retained earnings represent a combination of "realised" profits and "unrealised" profits. Dividend distributions

are only permitted from realised retained earnings. The analysis of retained earnings between "realised" and

"unrealised" is considered to be as follows:

2017

2016

£

£

Realised earnings

1,466,622

1,444,680

Unrealised earnings

1,333,278

1,326,585

2,799,900

2,771,265

8.	RELATED PARTY DISCLOSURES

During the year, total dividends of £8 (2016 - £8) were paid to the directors .

9.	FIRST YEAR ADOPTION

On transition to FRS102 the company has recognised the following adjustments:

1. A provision for deferred taxation (previously disclosed by way of note) but now required to be provided in full

in relation to investment property revaluations. The amount of this adjustment was £131,182.

2. A recategorisation of "Revaluation Reserve" to be included within "Retained earnings".

£

Total capital and reserves recognised under Financial Reporting Standard for Smaller Entities (effective January 2015) as at 31st March 2015

2,905,345

Adjustment arising on transition to FRS102 (Section 1a)

(131,182

)

Amended opening capital and reserves at 1st April 2016

2,774,163

A subsequent adjustment to reflect the change in the deferred tax liability arising on revalued assets was made in

the year ended 31st March 2016. This adjustment was a reduction of £3,292 which was credited to the Profit and

Loss account.