Bailey Holdings Limited - Period Ending 2018-01-31

Bailey Holdings Limited

Annual Report and Unaudited Financial Statements
Year Ended 31 January 2018

Registration number: 06010084

Bailey Holdings Limited

Contents

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

Bailey Holdings Limited

Company Information

Directors

K M Bailey M G Bailey

Registered office

Venayr Goonearl Scorrier Redruth Cornwall TR16 5EB

Accountants

Francis Clark LLP Lowin House Tregolls Road Truro Cornwall TR1 2NA

Page 1

Bailey Holdings Limited

Balance Sheet

31 January 2018

	Note	2018 £	2017 £
Fixed assets
Tangible assets	4	230,929	391,394
Investment property	5	4,669,155	4,669,155
Investments	6	1	1
		4,900,085	5,060,550
Current assets
Debtors	7	27,301	19,436
Cash at bank and in hand		28,056	22,350
		55,357	41,786
Creditors: Amounts falling due within one year	8	(429,782)	(631,059)
Net current liabilities		(374,425)	(589,273)
Total assets less current liabilities		4,525,660	4,471,277
Creditors: Amounts falling due after more than one year	8	(2,499,171)	(2,698,697)
Provisions for liabilities		(49,495)	(90,461)
Net assets		1,976,994	1,682,119
Capital and reserves
Called up share capital		2	2
Other reserves		701,286	686,609
Profit and loss account		1,275,706	995,508
Total equity		1,976,994	1,682,119

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

Page 2

Bailey Holdings Limited

Balance Sheet

31 January 2018

For the financial year ending 31 January 2018 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 special provisions relating to companies subject to the small companies regime within Part 15 of the Companies Act 2006 and the option not to file the Profit and Loss Account has been taken.

Approved and authorised by the Board on 22 May 2018 and signed on its behalf by:
 

......................................... M G Bailey Director

Company Registration Number: 06010084

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

Page 3

Bailey Holdings Limited

Notes to the Financial Statements

Year Ended 31 January 2018

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:
Venayr Goonearl
Scorrier
Redruth
Cornwall
TR16 5EB

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 functional and presentational currency used in the financial statements is pounds sterling, being the primary currency of the country in which the company operates.

Group accounts not prepared

Bailey Holdings Limited has claimed exemption from the requirement to prepare consolidated financial statements on the basis that it is the parent of a small group.

Revenue recognition

Turnover represents rent and hire charges received by the company.

Turnover is recognised when the company fulfils its contractual obligations to customers by supplying goods and services and excludes value added tax.

Interest receivable is recognised on an accruals basis.

Page 4

Bailey Holdings Limited

Notes to the Financial Statements

Year Ended 31 January 2018

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 corporation 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.

Deferred tax is recognised on all timing differences at the balance sheet date unless indicated below. Timing differences are differences between taxable profits and the results as stated in the profit and loss account and other comprehensive income. Deferred 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
Plant and machinery	10% - 20% straight line
Motor vehicles	33% straight line

Investment property

Investment property is carried at fair value, derived from the current market prices for comparable real estate determined annually 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.

Investments

Investments at the balance sheet date relate to shareholdings in a subsidiary undertaking and is stated at cost.

Page 5

Bailey Holdings Limited

Notes to the Financial Statements

Year Ended 31 January 2018

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.

Financial instruments

Classification
The company holds the following financial instruments:

• Short term trade and other debtors and creditors;
• Bank loans; and
• Cash and bank balances.

All financial instruments are classified as basic.

 Recognition and measurement
The company has chosen to apply the recognition and measurement principles in FRS102.

Financial instruments are recognised when the company becomes party to the contractual provisions of the instrument and derecognised when in the case of assets, the contractual rights to cash flows from the assets expire or substantially all the risks and rewards of ownership are transferred to another party, or in the case of liabilities, when the company’s obligations are discharged, expire or are cancelled.

Except for bank loans, such instruments are initially measured at transaction price, including transaction costs, and are subsequently carried at the undiscounted amount of the cash or other consideration expected to be paid or received, after taking account of impairment adjustments.

Bank loans are initially measured at transaction price, including transaction costs, and are subsequently carried at amortised cost using the effective interest method.


 

Page 6

Bailey Holdings Limited

Notes to the Financial Statements

Year Ended 31 January 2018

Critical judgements and estimation uncertainty

In applying the company’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amounts of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical
experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods.

The following areas are where the Directors have applied judgement in the preparation of the financial statements:

Valuation of investment properties
As described within the accounting policies, the investment properties are held at the balance sheet date at their market value. The director has applied his professional knowledge of the sector, coupled with discussions with other professionals in evaluating opportunities in order to derive market values.

3	Staff numbers

The average number of persons employed by the company (including directors) during the year, was 0 (2017 - 0).

Page 7

Bailey Holdings Limited

Notes to the Financial Statements

Year Ended 31 January 2018

4	Tangible assets

	Motor vehicles  £	Other property, plant and equipment  £	Total £
Cost or valuation
At 1 February 2017	519,000	259,314	778,314
At 31 January 2018	519,000	259,314	778,314
Depreciation
At 1 February 2017	326,023	60,897	386,920
Charge for the year	134,977	25,488	160,465
At 31 January 2018	461,000	86,385	547,385
Carrying amount
At 31 January 2018	58,000	172,929	230,929
At 31 January 2017	192,977	198,417	391,394

5	Investment properties

	2018 £
At 1 February	4,669,155
At 31 January	4,669,155

The investment property are subject to a Directors valuation.

There has been no movement in the valuation in the current year.

Page 8

Bailey Holdings Limited

Notes to the Financial Statements

Year Ended 31 January 2018

6	Investments

	2018 £	2017 £
Investments in subsidiaries	1	1

Subsidiaries	£
Cost or valuation
At 1 February 2017 and 31 January 2017	1
Carrying amount
At 31 January 2018	1
At 31 January 2017	1

Details of undertakings

Details of the investments (including principal place of business of unincorporated entities) in which the company holds 20% or more of the nominal value of any class of share capital are as follows:

Undertaking	Registered office	Holding	Proportion of voting rights and shares held
			2018	2017
Subsidiary undertakings
Trebletime Limited	Venayr Goonearl, Scorrier, Redruth, Cornwall, TR16 5EB.	Ordinary	100%	100%
	England and Wales

The principal activity of Trebletime Limited is that of a dormant company.

Page 9

Bailey Holdings Limited

Notes to the Financial Statements

Year Ended 31 January 2018

7

Debtors

	2018  £	2017  £
Trade debtors	15,639	9,842
Other debtors	11,662	9,594
	27,301	19,436

8

Creditors

Creditors: amounts falling due within one year

	Note	2018  £	2017  £
Due within one year
Loans and borrowings	9	186,488	287,096
Trade creditors		1,908	1,477
Corporation tax		93,563	83,718
Social security and other taxes		29,859	3,467
Other creditors		51,353	190,258
Accrued expenses		66,611	65,043
		429,782	631,059
Due after one year
Loans and borrowings	9	2,499,171	2,698,697

Creditors: amounts falling due after more than one year

	Note	2018 £	2017 £
Due after one year
Loans and borrowings	9	2,499,171	2,698,697

	2018 £	2017 £
Due after more than five years
After more than five years by instalments	1,018,121	1,092,583

	-	-

Page 10

Bailey Holdings Limited

Notes to the Financial Statements

Year Ended 31 January 2018

9	Loans and borrowings

	2018 £	2017 £
Current loans and borrowings
Bank borrowings	186,488	160,268
Finance lease liabilities	-	126,828
	186,488	287,096

	2018 £	2017 £
Loans and borrowings due after one year
Bank borrowings	2,110,604	2,478,697
Other borrowings	388,567	220,000
	2,499,171	2,698,697

The bank loan is secured by a first legal charge over the investment property, a debenture over the other assets, a guarantee for £1.6m provided by RR Transport Limited, a connected undertaking, and a joint guarantee of £100k provided by MG Bailey and K Bailey, Directors.

The hire purchase obligations are secured against the assets to which they relate.

Included in the loans and borrowings are the following amounts due after more than five years:

Borrowings due after five years

The bank loan due in more than five years is subject to quarterly instalments, and attracts interest at 1.79% above the bank base rate.

10	Share capital

Allotted, called up and fully paid shares

	2018		2017
	No.	£	No.	£
Ordinary share capital of £1 each	2	2	2	2

Page 11

Bailey Holdings Limited

Notes to the Financial Statements

Year Ended 31 January 2018

11	Related party transactions

Transactions with directors

2018	At 1 February 2017 £	Advances to directors £	At 31 January 2018 £
M G Bailey
Loan account (interest free, repayable upon demand)	2,200	(5,985)	(3,785)

2017	At 1 February 2016 £	Advances to directors £	At 31 January 2017 £
M G Bailey
Loan account (interest free, repayable upon demand)	8,185	(5,985)	2,200

Page 12