Staton Young (Residential) Limited - Period Ending 2017-05-31

Registration number: 07292288

Staton Young (Residential) Limited

Annual Report and Unaudited Financial Statements

for the Year Ended 31 May 2017

Staton Young (Residential) Limited

Contents

Company Information	1
Accountants' Report	2
Balance Sheet	3 to 4
Notes to the Financial Statements	5 to 12

Staton Young (Residential) Limited

Company Information

Directors

M L Brough R L Brough

Registered office

Derwent Business Centre Clarke Street Derby DE1 2BU

Bankers

Svenska Handelsbanken AB 4 Pinnacle Way Pride Park Derby DE24 8ZS

Accountants

Ashgates Corporate Services Limited 5 Prospect Place Millennium Way Pride Park Derby DE24 8HG

Page 1

Chartered Certified Accountants' Report to the Board of Directors on the Preparation of the Unaudited Statutory Accounts of
Staton Young (Residential) Limited
for the Year Ended 31 May 2017

In order to assist you to fulfil your duties under the Companies Act 2006, we have prepared for your approval the accounts of Staton Young (Residential) Limited for the year ended 31 May 2017 as set out on pages 3 to 12 from the company's accounting records and from information and explanations you have given us.

As a practising member firm of the Association of Chartered Certified Accountants, we are subject to its ethical and other professional requirements which are detailed at http://www.accaglobal.com/en/
member/professional-standards/rules-standards/acca-rulebook.html.

This report is made solely to the Board of Directors of Staton Young (Residential) Limited, as a body, in accordance with the terms of our engagement letter. Our work has been undertaken solely to prepare for your approval the accounts of Staton Young (Residential) Limited and state those matters that we have agreed to state to the Board of Directors of Staton Young (Residential) Limited, as a body, in this report in accordance with the requirements of the Association of Chartered Certified Accountants as detailed at http://www.accaglobal.com/content/dam/ACCA_Global/Technical/fact/
technical-factsheet-163.pdf. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than Staton Young (Residential) Limited and its Board of Directors as a body for our work or for this report.

It is your duty to ensure that Staton Young (Residential) Limited has kept adequate accounting records and to prepare statutory accounts that give a true and fair view of the assets, liabilities, financial position and profit of Staton Young (Residential) Limited. You consider that Staton Young (Residential) Limited is exempt from the statutory audit requirement for the year.

We have not been instructed to carry out an audit or a review of the accounts of Staton Young (Residential) Limited. For this reason, we have not verified the accuracy or completeness of the accounting records or information and explanations you have given to us and we do not, therefore, express any opinion on the statutory accounts.

.......................................................

Ashgates Corporate Services Limited
5 Prospect Place
Millennium Way
Pride Park
Derby
DE24 8HG

4 December 2017

Page 2

Staton Young (Residential) Limited

(Registration number: 07292288)
Balance Sheet as at 31 May 2017

	Note	31 May 2017 £	31 May 2016 £
Fixed assets
Tangible assets	5	4,337	53,658
Investment property	6	2,867,500	2,867,500
		2,871,837	2,921,158
Current assets
Debtors	7	2,239,185	2,429,198
Cash at bank and in hand		831	3,024
		2,240,016	2,432,222
Creditors: Amounts falling due within one year	8	(1,100,550)	(1,312,928)
Net current assets		1,139,466	1,119,294
Total assets less current liabilities		4,011,303	4,040,452
Creditors: Amounts falling due after more than one year	8	(1,496,700)	(1,389,233)
Provisions for liabilities		(95,852)	(114,160)
Net assets		2,418,751	2,537,059
Capital and reserves
Called up share capital	10	100	100
Fair value reserve		602,794	599,029
Profit and loss account		1,815,857	1,937,930
Total equity		2,418,751	2,537,059

The notes on pages 5 to 12 form an integral part of these financial statements.

Page 3

Staton Young (Residential) Limited

(Registration number: 07292288)
Balance Sheet as at 31 May 2017

For the financial year ending 31 May 2017 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 and 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 4 December 2017 and signed on its behalf by:
 

.........................................

M L Brough

Director

The notes on pages 5 to 12 form an integral part of these financial statements.

Page 4

Staton Young (Residential) Limited

Notes to the Financial Statements for the Year Ended 31 May 2017

1	General information

The company is a private company limited by share capital incorporated in England and Wales.

The address of the registered office is given in the company information on page 1 of the financial statements.

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 that as disclosed in the accounting policies certain items are shown at fair value.

The financial statements are presented in Sterling (£).

Revenue recognition

Turnover comprises the fair value of the consideration received or receivable for the sale of goods and provision of services in the ordinary course of the company’s activities. Turnover is shown net of sales/value added tax, returns, rebates and discounts.

The company recognises revenue when:
The amount of revenue can be reliably measured;
it is probable that future economic benefits will flow to the entity;
and specific criteria have been met for each of the company's activities.

Other grants

Grants are recognised at the fair value of the asset received or receivable when there is reasonable assurance that the company will comply with conditions attaching to them and the grants will be received using the accrual model.

Tax

The tax expense for the period comprises current and deferred tax. Tax is recognised in profit or loss, except that a change attributable to an item of income or expense recognised as other comprehensive income is also recognised directly in other comprehensive income.

The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the reporting date in the countries where the company operates and generates taxable income.

Page 5

Staton Young (Residential) Limited

Notes to the Financial Statements for the Year Ended 31 May 2017

Deferred income tax is recognised on temporary differences arising between the tax bases of assets and liabilities and their carrying amounts in the financial statements and on unused tax losses or tax credits in the company. Deferred income tax is determined using tax rates and laws that have been enacted or substantively enacted by the reporting date.

The carrying amount of deferred tax assets are reviewed at each reporting date and a valuation allowance is set up against deferred tax assets so that the net carrying amount equals the highest amount that is more likely than not to be recovered based on current or future taxable profit.

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
Motor vehicles	25% reducing balance basis
Plant, machinery and equipment	25% reducing balance basis

Investment property

Investment property is carried at fair value, derived from the current market prices for comparable real estate determined annually by the directors and in conjunction with work carried out by external valuers. The valuers use observable market prices, adjusted if necessary for any difference in the nature, location or condition of the specific asset. Changes in fair value are recognised in profit or loss.

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.

Page 6

Staton Young (Residential) Limited

Notes to the Financial Statements for the Year Ended 31 May 2017

Leases

Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessee.

Assets held under finance leases are recognised at the lower of their fair value at inception of the lease and the present value of the minimum lease payments. These assets are depreciated on a straight-line basis over the shorter of the useful life of the asset and the lease term. The corresponding liability to the lessor is included in the Balance Sheet as a finance lease obligation.

Lease payments are apportioned between finance costs in the Profit and Loss Account and reduction of the lease obligation so as to achieve a constant periodic rate of interest on the remaining balance of the liability.

3	Staff numbers

The average number of persons employed by the company (including directors) during the year, was 3 (2016 - 3).

4	Exceptional items

	31 May 2017 £	31 May 2016 £
Exceptional administrative expenses	-	89,885
(Profit) on disposal of investment property	-	(397,305)
	-	(307,420)

 

The exceptional administration costs relate to input tax repayable following a review of the previous year submitted returns.

Page 7

Staton Young (Residential) Limited

Notes to the Financial Statements for the Year Ended 31 May 2017

5	Tangible assets

	Motor vehicles  £	Plant, machinery and equipment £	Total £
Cost or valuation
At 1 June 2016	64,213	8,618	72,831
Disposals	(64,213)	-	(64,213)
At 31 May 2017	-	8,618	8,618
Depreciation
At 1 June 2016	16,338	2,835	19,173
Charge for the period	-	1,446	1,446
Eliminated on disposal	(16,338)	-	(16,338)
At 31 May 2017	-	4,281	4,281
Carrying amount
At 31 May 2017	-	4,337	4,337
At 31 May 2016	47,875	5,783	53,658

Page 8

Staton Young (Residential) Limited

Notes to the Financial Statements for the Year Ended 31 May 2017

6	Investment properties

	Total £
At 1 June 2016	2,867,500
Additions	39,964
Fair value adjustments	(39,964)
At 31 May 2017	2,867,500

The fair values of the investment properties were reviewed by the directors at 31 May 2017. The fair values have been determined by carrying out a review of the property and investment yields in the area. These properties were valued at £2,867,500 (2016 - £2,867,500).

The directors valuations are further supported by independent valuations carried out on the investment property in August 2015. The valuations were carried out in accordance with RICS and has been considered by the directors in establishing their fair values as at 31 May 2017.

7

Debtors

	Note	31 May 2017 £	31 May 2016 £
Trade debtors		8,139	34,551
Amounts owed by group undertakings	12	2,166,276	2,090,797
Other debtors		64,770	303,850
		2,239,185	2,429,198

8

Creditors

	Note	31 May 2017 £	31 May 2016 £
Due within one year
Loans and borrowings	9	109,823	115,322
Trade creditors		3,192	40,945
Amounts owed to group undertakings	12	771,904	838,644
Taxation and social security		30,679	114,880
Corporation tax		108,390	108,892
Other creditors		76,562	94,245
		1,100,550	1,312,928
Due after one year
Loans and borrowings	9	1,496,700	1,389,233

Page 9

Staton Young (Residential) Limited

Notes to the Financial Statements for the Year Ended 31 May 2017

9	Loans and borrowings

	31 May 2017 £	31 May 2016 £
Current loans and borrowings
Bank borrowings	83,150	89,084
Bank overdrafts	26,673	18,210
Finance lease liabilities	-	8,028
	109,823	115,322

	31 May 2017 £	31 May 2016 £
Non-current loans and borrowings
Bank borrowings	1,496,700	1,347,613
Finance lease liabilities	-	41,620
	1,496,700	1,389,233

Secured borrowings

Bank borrowings are denominated in sterling (£) with a nominal interest rate of 2.95% above LIBOR the final instalment is due on 9 May 2020. The carrying amount at year end is £1,579,850 (2016 - £1,436,698). Liabilities in respect of bank borrowings and overdrafts are secured by a first legal charge over the company's properties, a debenture over the company's whole assets and undertaking and an unlimited inter company composite guarantee between the company and it's related companies. The carrying amounts at the year end were £1,606,523 (2016 - £1,454,907).

The finance lease liabilities are secured against the assets which it relates to. The carrying amounts at the year end were £nil (2016 - £49,648).
 

10	Share capital

Allotted, called up and fully paid shares

	31 May 2017		31 May 2016
	No.	£	No.	£
Ordinary shares of £1 each	100	100	100	100

Page 10

Staton Young (Residential) Limited

Notes to the Financial Statements for the Year Ended 31 May 2017

11	Financial commitments, guarantees and contingencies

The company has entered into cross guarantees and debentures with its bankers to secure the liabilities of other related companies. The contingent liability as at 31 May 2017 is £3,011,673 (2016 - £1,649,569). The future outcome is dependent on the performance of individual companies concerned. However the directors do not expect any liability to crystallise.

12	Related party transactions

Transactions with directors

During the year the following advances were made to directors:

2017	At 1 June 2016 £	Advances to directors £	Repayments by director £	At 31 May 2017 £
Interest free loans repayable on demand	(145,143)	(181,936)	327,079	-

2016	At 1 January 2015 £	Advances to directors £	Repayments by director £	At 31 May 2016 £
Interest free loans repayable on demand	56,000	(283,343)	82,200	(145,143)

Summary of transactions with other related parties

The company has taken advantage of the exemption under FRS102 Section 1A in respect of disclosing transactions with other members of the group.
 

13	Transition to FRS 102

The financial statements are the company's first financial statements that comply with FRS102. The date of the transition to FRS102 was 1 January 2015.

Deferred tax:
Under previous GAAP, the company did not make adjustments for deferred tax on revalued non-current asset. Under FRS102 the company is required to recognise the deferred tax. On transition this has meant a reduction in the opening fair value reserve balance of £185,891 in respect of deferred tax liabilities. For the period ended 31 May 2016 a reduction in the deferred tax liability of £71,254 was recognised in the fair value reserve.

Investment properties:
Under FRS102, investment properties are to be recorded at fair value at each reporting date with changes in such value being recognised in the profit and loss account. Under previous UK GAAP these changes were recorded in the Statement of Total Recognised Gains and Losses.

Page 11

Staton Young (Residential) Limited

Notes to the Financial Statements for the Year Ended 31 May 2017

Balance Sheet at 1 January 2015
 

	As originally reported £	Reclassification £	Remeasurement £	As restated £
Capital and reserves
Called up share capital	100	-	-	100
Revaluation reserve	1,543,690	(1,543,690)	-	-
Fair value reserve	-	1,543,690	(185,891)	1,357,799
Profit and loss account	(5,658)	-	-	(5,658)
Total equity	1,538,132	-	(185,891)	1,352,241

Balance Sheet at 31 May 2016
 

	As originally reported £	Reclassification £	Remeasurement £	As restated £
Capital and reserves
Called up share capital	100	-	-	100
Revaluation reserve	713,666	(713,666)	-	-
Fair value reserve	-	713,666	(114,637)	599,029
Profit and loss account	1,937,930	-	-	1,937,930
Total equity	2,651,696	-	(114,637)	2,537,059

Profit and Loss Account for the period from 1 January 2015 to 31 May 2016
 

		£
As previously reported		648,945
Movement on revaluation of investment properties		531,419
Movement on deferred tax		71,254
As reported under FRS102		1,251,618

Page 12