Lettergold Asset Management Limited - Period Ending 2017-09-30

Registration number: 02194905

Lettergold Asset Management Limited

Annual Report and Unaudited Financial Statements

for the Year Ended 30 September 2017

Lettergold Asset Management Limited

Contents

Company Information	1
Balance Sheet	2 to 3
Notes to the Financial Statements	4 to 12

Lettergold Asset Management Limited

Company Information

Directors

AR Drummond BA Drummond

Company secretary

BA Drummond

Registered office

Unit 4 Hammond Close Newmarket Suffolk CB8 0AZ

Accountants

Jacobs Allen Limited Chartered Accountants and Chartered Tax Advisers 59 Abbeygate Street Bury St Edmunds Suffolk IP33 1LB

Page 1

Lettergold Asset Management Limited

(Registration number: 02194905)
Balance Sheet as at 30 September 2017

	Note	2017 £	(As restated) 2016 £
Fixed assets
Intangible assets	3	-	123
Tangible assets	4	595,513	589,930
		595,513	590,053
Current assets
Debtors	5	78,032	154,593
Cash at bank and in hand		473	473
		78,505	155,066
Creditors: Amounts falling due within one year	6	(270,502)	(207,022)
Net current liabilities		(191,997)	(51,956)
Total assets less current liabilities		403,516	538,097
Creditors: Amounts falling due after more than one year	6	(121,609)	(142,489)
Provisions for liabilities		(55,320)	(58,241)
Net assets		226,587	337,367
Capital and reserves
Called up share capital		30,200	30,200
Share premium reserve		29,134	29,134
Revaluation reserve		26,615	26,615
Profit and loss account		140,638	251,418
Total equity		226,587	337,367

For the financial year ending 30 September 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 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.

The notes on pages 4 to 12 form an integral part of these financial statements.

Page 2

Lettergold Asset Management Limited

(Registration number: 02194905)
Balance Sheet as at 30 September 2017

Approved and authorised by the Board on 8 June 2018 and signed on its behalf by:
 

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

AR Drummond

Director

The notes on pages 4 to 12 form an integral part of these financial statements.

Page 3

Lettergold Asset Management Limited

Notes to the Financial Statements for the Year Ended 30 September 2017

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:
Unit 4
Hammond Close
Newmarket
Suffolk
CB8 0AZ
United Kingdom

These financial statements were authorised for issue by the Board on 8 June 2018.

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.

Going concern

The balance sheet shows net current liabilities of £191,997 (2017 - £51,956). The creditors due with one year include an amount of £189,119 due to a company under common control and the directors have indicated their willingness to continue to support the company. In view of this the financial statements have been prepared on a going concern basis.

Revenue recognition

Turnover comprises the fair value of the consideration received or receivable for the 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.

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 4

Lettergold Asset Management Limited

Notes to the Financial Statements for the Year Ended 30 September 2017

Deferred tax is recognised in respect of all timing differences between taxable profits and profits reported in the financial statements.

Unrelieved tax losses and other deferred tax assets are recognised when it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits.

Deferred tax is measured using the tax rates and laws that have been enacted or substantively enacted by the reporting date and that are expected to apply to the reversal of the timing difference.

Tangible assets

Tangible assets are stated in the statement of financial position at cost or valuation, 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 or valuation of assets, other than land and properties under construction over their estimated useful lives, as follows:

Asset class	Depreciation method and rate
Land and buildings	Depreciation is charged to write off the cost/fair value of the assets less their residual values
Plant and equipment	5% - 25% reducing balance
Motor vehicles	25% reducing balance
Furniture, fittings and equipment	15% reducing balance

Intangible assets

Separately acquired trademarks,patents and licences are shown at historical cost.

Trademarks, patents, licences and customer-related intangible assets have a finite useful life and are carried at cost less accumulated amortisation and any accumulated impairment losses.

Amortisation

Amortisation is provided on intangible assets so as to write off the cost, less any estimated residual value, over their useful life as follows:

Asset class	Amortisation method and rate
Trademarks, patents and licences	10% straight line

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.

Trade debtors

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

Trade debtors are recognised initially at the transaction price. They are subsequently measured at amortised cost using the effective interest method, less provision for impairment. 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 receivables.

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Lettergold Asset Management Limited

Notes to the Financial Statements for the Year Ended 30 September 2017

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 subsequently measured at amortised cost using the effective interest method.

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.

Leases

Leases in which substantially all the risks and rewards of ownership are retained by the lessor are classified as operating leases. Payments made under operating leases are charged to profit or loss on a straight-line basis over the period of the lease. 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 useful life of the asset. 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.

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.

Page 6

Lettergold Asset Management Limited

Notes to the Financial Statements for the Year Ended 30 September 2017

3	Intangible assets

	Trademarks, patents and licenses  £	Total £
Cost or valuation
At 1 October 2016	42,537	42,537
At 30 September 2017	42,537	42,537
Amortisation
At 1 October 2016	42,414	42,414
Amortisation charge	123	123
At 30 September 2017	42,537	42,537
Carrying amount
At 30 September 2017	-	-
At 30 September 2016	123	123

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Lettergold Asset Management Limited

Notes to the Financial Statements for the Year Ended 30 September 2017

4	Tangible assets

	Land and buildings £	Furniture, fittings and equipment  £	Motor vehicles  £	Other property, plant and equipment  £	Total £
Cost or valuation
At 1 October 2016 (as restated)	212,709	42,364	110,844	811,019	1,176,936
Additions	-	7,238	25,750	27,300	60,288
Disposals	-	(28,331)	-	(62,308)	(90,639)
At 30 September 2017	212,709	21,271	136,594	776,011	1,146,585
Depreciation
At 1 October 2016 (as restated)	-	34,767	78,286	473,953	587,006
Charge for the year	-	2,238	12,444	35,646	50,328
Eliminated on disposal	-	(25,951)	-	(60,311)	(86,262)
At 30 September 2017	-	11,054	90,730	449,288	551,072
Carrying amount
At 30 September 2017 (as restated)	212,709	10,217	45,864	326,723	595,513
At 30 September 2016	212,709	7,597	32,558	337,066	589,930

Included within the net book value of land and buildings above is £212,709 (2016 - £212,709) in respect of freehold land and buildings.
 

Page 8

Lettergold Asset Management Limited

Notes to the Financial Statements for the Year Ended 30 September 2017

Revaluation

The fair value of the company's land and buildings was revalued on 25 January 2013 by an independent valuer.
The property was valued at market value. The name and qualification of the independent valuer are Lacy Scott & Knight Chartered Surveyors. The company has applied the deemed cost provisions of FRS102 and used this valuation as the deemed cost of the land and buildings.
Had this class of asset been measured on a historical cost basis, the carrying amount would have been £186,093 (2016 - £186,093).

5

Debtors

	2017 £	2016 £
Trade debtors	6,235	102,499
Other debtors	71,797	52,094
	78,032	154,593

6

Creditors

Creditors: amounts falling due within one year

	Note	2017 £	2016 £
Due within one year
Bank loans and overdrafts	9	46,896	65,166
Trade creditors		149,394	121,423
Taxation and social security		14,292	14,755
Accruals and deferred income		3,000	3,000
Other creditors		56,920	2,678
		270,502	207,022

Creditors include bank loans and overdrafts and net obligations under finance lease and hire purchase contracts which are secured of £46,896 (2016 - £65,166). Bank borrowings of £14,470 (2016 - £16,229) are secured on freehold property owned by the company and finance lease and hire purchase contracts of £32,426 (2016 - £48,937) are secured against certain items of plant, equipment and motor vehicles.

Creditors: amounts falling due after more than one year

	Note	2017 £	2016 £
Due after one year
Loans and borrowings	9	121,609	142,489

Creditors include bank loans and overdrafts and net obligations under finance lease and hire purchase contracts which are secured of £121,609 (2016 - £142,489). Bank borrowings of £67,786 (2016 - £74,403) are secured on freehold property owned by the company and finance lease and hire purchase contracts of £53,823 (2016 - £68,086) are secured against certain items of plant, equipment and motor vehicles.

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Lettergold Asset Management Limited

Notes to the Financial Statements for the Year Ended 30 September 2017

Creditors include bank loans repayable by instalments of £36,507 (2016 - £45,078) due after more than five years.

7	Share capital

Allotted, called up and fully paid shares

	2017		2016
	No.	£	No.	£
Ordinary Shares of £1 each	30,000	30,000	30,000	30,000
Ordinary B Shares of £1 each	200	200	200	200
	30,200	30,200	30,200	30,200

8	Prior period adjustment

A prior year adjustment has been made in respect of an overstatement of the value of both tangible and intangible fixed assets. The net book value of tangible fixed assets has been reduced by £64,834 from £654,764 to £589,930 at 30 September 2016. The intangible fixed assets have been reduced by £9,069 from £9,192 to £123 at 30 September 2016. The overstatement of fixed assets values has required a reduction in the deferred tax provision of £20,129 from £78,370 to £58,241 at 30 September 2016. These adjustments have resulted in a reduction in the profit and loss account reserve of £53,775 from £305,193 to £251,418 at 30 September 2016. The adjustments relate to periods prior to 30 September 2015 and therefore fixed asset values and the deferred tax provision have been adjusted at 30 September 2015 and there is no alteration to the profit and loss account figures for the year ended 30 September 2016.

9	Loans and borrowings

	2017 £	2016 £
Non-current loans and borrowings
Bank borrowings	67,786	74,403
Finance lease liabilities	53,823	68,086
	121,609	142,489

Page 10

Lettergold Asset Management Limited

Notes to the Financial Statements for the Year Ended 30 September 2017

	2017 £	2016 £
Current loans and borrowings
Bank borrowings	6,616	6,243
Bank overdrafts	7,854	9,986
Finance lease liabilities	32,426	48,937
	46,896	65,166

10	Financial commitments, guarantees and contingencies

Amounts not provided for in the balance sheet

The total amount of financial commitments not included in the balance sheet is £1,201 (2016 - £3,603).

11	Related party transactions

Transactions with directors

2017	At 1 October 2016 £	Advances to directors £	Repayments by director £	At 30 September 2017 £
AR Drummond
Loan to the director on which interest was chargeable at 3% - 2.5% ( 2016 - 3%) per annum	-	105,728	(77,825)	27,903
BA Drummond
Loan to the director on which interest was charges at 2.75% (2016 - 3%)	33,737	44,531	(63,675)	14,593

2016	Advances to directors £	Repayments by director £	At 30 September 2016 £
AR Drummond
Loan to the director on which interest was chargeable at 3% - 2.5% ( 2016 - 3%) per annum	35,332	(35,332)	-
BA Drummond
Loan to the director on which interest was charges at 2.75% (2016 - 3%)	36,737	(3,000)	33,737

Page 11

Lettergold Asset Management Limited

Notes to the Financial Statements for the Year Ended 30 September 2017

12	Transition to FRS 102

This is the first year in which the financial statements have been prepared under FRS 102. The transition to FRS 102 has not involved any changes to the company’s accounting policies and has not therefore had any effects on its reported financial position and financial performance.

Page 12