Badnell Properties Limited - Accounts to registrar (filleted) - small 17.3

REGISTERED NUMBER: 00684553 (England and Wales)

BADNELL PROPERTIES LIMITED

UNAUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2017

Page

Company Information

1

Balance Sheet

2

Notes to the Financial Statements

4

DIRECTORS:

A I R Grant

L F Grant

SECRETARY:

M J Grant

REGISTERED OFFICE:

Pioneer Works

Malvern Road

Maidenhead

Berkshire

SL6 7RD

REGISTERED NUMBER:

00684553 (England and Wales)

FIXED ASSETS

Tangible assets

5

1,618

1,137

Investments

6

1,007,648

936,260

Investment property

7

15,691,423

14,235,998

16,700,689

15,173,395

CURRENT ASSETS

Debtors

8

358,341

361,410

Cash at bank and in hand

745,836

1,243,102

1,104,177

1,604,512

CREDITORS

Amounts falling due within one year

9

(352,810

)

(322,338

)

NET CURRENT ASSETS

751,367

1,282,174

TOTAL ASSETS LESS CURRENT LIABILITIES

17,452,056

16,455,569

PROVISIONS FOR LIABILITIES

(263,469

)

(121,233

)

NET ASSETS

17,188,587

16,334,336

CAPITAL AND RESERVES

Called up share capital

100

100

Revaluation reserve

11

4,406,069

4,110,603

Retained earnings

11

12,782,418

12,223,633

SHAREHOLDERS' FUNDS

17,188,587

16,334,336

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

The members have not required the company to obtain an audit of its financial statements for the year ended 31 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 5 December 2017 and were signed on its behalf by:

A I R Grant - Director

1.	STATUTORY INFORMATION

Badnell Properties 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.	STATEMENT OF COMPLIANCE

These financial statements have been prepared in accordance with the provisions of Section 1A "Small

Entities" of the 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.

3.	ACCOUNTING POLICIES

Basis of preparing the financial statements

The financial statements are presented in sterling (£) which is also the functional currency for the

company.

The company transitioned from previously extant UK GAAP to FRS 102 Section 1A as at 1 April 2016.

An explanation of how transition to FRS 102 Section 1A has affected the reported financial position

and financial performance is given within the notes.

Turnover

Rental income

Turnover represents rental income achieved in the year and is recognised on an accruals basis, net of

value added tax.

Depreciation

Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life.

Fixtures and fittings

-

20% on cost

Investment properties are not depreciated and leasehold investment properties are not amortised

where the unexpired term is over twenty years. This policy represents a departure from statutory

accounting principles, which require depreciation to be provided on all fixed assets. The directors

consider that this policy is necessary in order that the financial statements may give a true and fair

view because current values and changes in current values are of prime importance rather than the

calculation of systematic annual depreciation.

Depreciation is only one of many factors reflected in the valuation and the amount which might

otherwise have been shown cannot be separately identified or quantified.

Taxation

Current tax is recognised for the amount of income tax payable in respect of the taxable profit for the

current or past reporting periods using tax rates that have been enacted or substantively enacted by

the reporting date.

Deferred tax is recognised in respect of all timing differences at the reporting date. Unrelieved tax

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

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

Deferred tax is calculated using tax rates that have been enacted or substantively enacted by the

reporting date that are expected to apply to the reversal of the timing difference.

Financial instruments

Financial instruments are classified and accounted for, according to the substance of the contractual

arrangement, as either 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.

Investment property

The company's properties are held for long term investment and are included in the Balance Sheet at

their fair values. The fair value is reviewed annually, with reference to open market values, by the

directors of the company. Surpluses or deficits on revaluation of such properties are credited or

debited to the Income Statement.

Fixed asset investments

Fixed asset investments comprise a mixture of listed and unlisted investments. Listed investments are

at fair carried at their fair value at the balance sheet date, with changes in fair value recognised in the

profit or loss Fair value comprises the quoted market value of the security at the balance sheet date.

Unlisted investments are carried at cost less impairment.

Pension costs and other post-retirement benefits

The company operates a defined contribution pension scheme. Contributions payable to the

company's pension scheme are charged to profit or loss in the period to which they relate.

Trade and other receivables

Trade and other receivables are measured at transaction price less any impairment unless the

arrangement constitutes a financing transaction in which case the transaction is measured at the

present value of the future receipts discounted at the prevailing market rate of interest . Loans are

initially measured at fair value and are subsequently measured at amortised cost using the effective

interest method less any impairment.

Trade and other payables

Trade and other payables are measured at their transaction price unless the arrangement constitutes a

financing transaction in which case the transaction is measured at present value of future payments

discounted at the prevailing market rate of interest. Other financial liabilities are initially measured at

fair value net of their transaction costs. They are subsequently measured at amortised cost using the

effective interest method.

Cash and cash equivalents

Cash and cash equivalents in the balance sheet comprise cash at banks and in hand.

Significant judgements and estimates

The preparation of the financial statements required directors to make judgements, estimate and

assumptions about the carrying values of assets and liabilities that are not readily apparent from other

sources. The estimates and underlying assumptions are based on historical experience and other

factors that are considered to be relevant. Actual results may differ from these estimates. The key

judgements that have a significant effect on the mounts recognised in the financial statements are:

Valuation of investment property

The company's investment properties are measured at fair value. The valuation was carried out by A I

R Grant, one of the directors, who is considered to be appropriately qualified and experienced to

provide a reliable valuation.

4.	EMPLOYEES AND DIRECTORS

The average number of employees during the year was 5 (2016 - 4 ) .

5.	TANGIBLE FIXED ASSETS

Fixtures

and

fittings

£

COST

At 1 April 2016

10,402

Additions

1,089

At 31 March 2017

11,491

DEPRECIATION

At 1 April 2016

9,265

Charge for year

608

At 31 March 2017

9,873

NET BOOK VALUE

At 31 March 2017

1,618

At 31 March 2016

1,137

6.	FIXED ASSET INVESTMENTS

Listed

Unlisted

investments

investments

Totals

£

£

£

COST OR VALUATION

At 1 April 2016

541,260

395,000

936,260

Revaluations

71,388

-

71,388

At 31 March 2017

612,648

395,000

1,007,648

NET BOOK VALUE

At 31 March 2017

612,648

395,000

1,007,648

At 31 March 2016

541,260

395,000

936,260

Cost or valuation at 31 March 2017 is represented by:

Listed

Unlisted

investments

investments

Totals

£

£

£

Valuation in 2017

112,648

-

112,648

Cost

500,000

395,000

895,000

612,648

395,000

1,007,648

A deferred tax charge of £13,564 at the Corporation Tax rate of 17% has been recognised in the

current year on the unrealised valuation gains.

No provision for depreciation or impairment has been recognised.

7.	INVESTMENT PROPERTY

Total

£

FAIR VALUE

At 1 April 2016

14,235,998

Additions

1,089,111

Revaluations

366,314

At 31 March 2017

15,691,423

NET BOOK VALUE

At 31 March 2017

15,691,423

At 31 March 2016

14,235,998

Fair value at 31 March 2017 is represented by:

£

Valuation in 2017

4,561,890

Cost

11,129,533

15,691,423

Investment properties were valued at an open market basis on 31 March 2017 by the director, A I R

Grant.

A deferred tax charge of £128,672 at the Corporation Tax rate of 17% has been recognised in the

current year on the unrealised valuation gains.

8.

DEBTORS

2017

2016

£

£

Amounts falling due within one year:

Trade debtors

100,722

109,939

Other debtors

226,477

215,129

327,199

325,068

Amounts falling due after more than one year:

Other debtors

31,142

36,342

Aggregate amounts

358,341

361,410

9.

CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2017

2016

£

£

Trade creditors

66,015

22,916

Taxation and social security

177,173

181,387

Other creditors

109,622

118,035

352,810

322,338

10.	FINANCIAL INSTRUMENTS

2017

2016

Note

£

£

Financial assets at fair value through profit or loss

- Listed investments

7

612,648

541,260

- Investment property

8

15,691,423

4,235,998

16,304,071

4,777,258

Income and net gains attributable to the above assets:

- Gains on listed investments

7

71,388

3,291

- Rental income

1,182,705

1,085,370

- Gains on investment properties

8

366,314

1,042,500

1,620,407

2,131,161

11.

RESERVES

Retained

Revaluation

earnings

reserve

Totals

£

£

£

At 1 April 2016

12,223,633

4,110,603

16,334,236

Profit for the year

866,251

866,251

Dividends

(12,000

)

(12,000

)

Transfer between reserves

(295,466

)

295,466

-

At 31 March 2017

12,782,418

4,406,069

17,188,487

The transfer between reserve is made up of the following items:

£

Current year revaluation on investment properties

366,314

Current year revaluation on listed investments

71,388

Deferred tax movement on investment properties and listed investments

(142,236

)

295,466

12.	CAPITAL COMMITMENTS

At the year end the company estimates that capital commitments of £8,000 (2016 - £245,000) exist in

relation property repairs due to take place after the year end but agreed to take place. In the previous

year the amount related to building works on an existing site and purchase of new property.

13.	DIRECTORS' ADVANCES, CREDITS AND GUARANTEES

Included in other debtors is an amount of £60,000 (2016 - £60,000) due from the director A I R Grant.

The loan accrues interest at the official rate in accordance with guidance issued by HM Revenue and

Customs and is repayable on demand. Interest of £3,845 (2016 - £3,732) accrued on the loan during

the year.

Included in other debtors is £70,272 (2016 - £66,426) of accrued interest which is due from A I R

Grant.

The maximum total balance owed including interest during the year was £130,272 (2016 - £126,426).

14.	ULTIMATE CONTROLLING PARTY

The ultimate controlling party is A I R Grant, director and majority shareholder.

15.	FIRST YEAR ADOPTION

The company transitioned to FRS 102 from previously extant UK GAAP as at 1 April 2015. The impact

from the transition is set out in the following tables. The following were the only changes in accounting

policies arising from the transition to FRS 102:

Investment property revaluations

Under the FRSSE, market value adjustments on investment properties were presented through the

statement of recognised gains and losses and credited to the revaluation reserve. Under FRS 102, all

such market value adjustments are included in the income statement.

To assist with the monitoring of distributable and non-distributable reserves, the directors have chosen

to continue to disclose the revaluation movements in a separate reserve. To do this, an annual

transfer is made between retained earnings and the revaluation reserve.

Listed investments

Under the FRSSE, listed investments were recognised at cost in the balance sheet. Under FRS 102,

the listed investments must be carried at their fair value at the balance sheet date. All market value

adjustments are included in the income statement.

Deferred tax

Under the FRSSE, deferred tax was not provided for on the market value adjustments on the

investment property portfolio. Under FRS 102, deferred tax must be provided on all market value

adjustments and recognised through the income statement. On transition, a deferred tax provision

was recognised on the market value adjustments for both the investment property portfolio and listed

investments.

As with the market value adjustments themselves, the movement on the deferred tax provision will be

transferred annually between retained earnings and the revaluation reserve.