Schemelocal_Limited - Accounts

The directors of the company have elected not to include a copy of the profit and loss account within the financial statements.true

For the financial year ended 31 October 2017 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.

The directors acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and the preparation of financial statements.

The members have not required the company to obtain an audit of its financial statements for the year in question in accordance with section 476.

These financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies' regime.

Schemelocal Limited is a private company limited by shares incorporated in England and Wales. The registered office is 55 Loudoun Road, St John's Wood, London, NW8 0DL.

These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006 as applicable to companies subject to the small companies regime. The disclosure requirements of section 1A of FRS 102 have been applied other than where additional disclosure is required to show a true and fair view.

The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.

The financial statements have been prepared under the historical cost convention, modified to include the revaluation of freehold properties and to include investment properties and certain financial instruments at fair value. The principal accounting policies adopted are set out below.

These financial statements for the year ended 31 October 2017 are the first financial statements of Schemelocal Limited prepared in accordance with FRS 102, The Financial Reporting Standard applicable in the UK and Republic of Ireland. The date of transition to FRS 102 was 1 November 2015. An explanation of how transition to FRS 102 has affected the reported financial position and financial performance is given in note 11.

Turnover represents amounts receivable for rent.

Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.

Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is credited or charged to profit or loss.

Investment property, which is property held to earn rentals and/or for capital appreciation, is initially recognised at cost, which includes the purchase cost and any directly attributable expenditure. Subsequently it is measured at fair value at the reporting end date. The surplus or deficit on revaluation is recognised in the profit and loss account.

Where fair value cannot be achieved without undue cost or effort, investment property is accounted for as tangible fixed assets.

Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.

Financial instruments are recognised in the company's balance sheet when the company becomes party to the contractual provisions of the instrument.

Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised. Financial assets classified as receivable within one year are not amortised.

Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.

Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

Equity instruments issued by the company are recorded at the proceeds received, net of direct issue costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.

The tax expense represents the sum of the tax currently payable and deferred tax.

The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.

Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised 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 calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity.

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

Investment properties which are freehold and long leasehold were valued on an open market basis at 31 October 2017 by the directors.

On an historical cost basis these would have been included at an original cost of £1,332,337 (2016: £1,324,186). Such properties are not depreciated.

The company invested £850,000 in Rowark Investments LLP. During the year end 31 March 2017, Rowark Investments LLP made a profit of £11,072 and Schemelocal Limited's share of profit was £1,772.

The directors have valued the investment in Rowark Investments LLP by taking account of :

• The initial investment of £850,000 ;

• Its share of the cumulative losses to 31 March 2017 and ;

• Its share of the increase in property portfolio revaluation as at 31 March 2017.

The directors consider the value of investment in Rowark Investments LLP is therefore fairly stated.

The Bank loan are secured by 1st Legal charge over the freehold properties of the company. The directors have also provided personal guarantees for £53,000 to NatWest Plc.

M J Grieg is a director and shareholder of Paramount Lettings Limited, fees charged by Paramount Lettings Limited to the company during the year amounted to £36,056 (2016: £30,968). The balance payable at the year end was £nil (2016: £nil).

The company has a loan from J A Rose, a director and shareholder of the company. The amount outstanding at the year end date was £150,000 (2016: £120,000). J A Rose has waived his right to interest due this year on this loan.

Mr R Pathman, Mr M J Greig and Schemelocal Limited are members of Rowark Investments LLP. The company had invested £850,000 in Rowark Investments LLP, the value of this investment at the year is £960,000. During the year, the company provided a loan facility to Rowark Investment LLP. At the year end the balance outstanding from Rowark Investments LLP was £212,500 (2016: £212,500).

The controlling party, which has remained unchanged from the previous year, was the directors by virtue of their 100% shareholding in the company.

Deferred tax on revalued investment properties has been recognised under FRS 102 in the profit and loss account.

Revaluation of investment properties under fair value has been recognised under FRS 102 in the profit and loss account.