Capsicum Leasing Limited - Accounts to registrar (filleted) - small 18.2

REGISTERED NUMBER: 07112783 (England and Wales)

Financial Statements

for the Year Ended 31st October 2017

for

CAPSICUM LEASING LIMITED

Page

Company Information

1

Statement of Financial Position

2

Notes to the Financial Statements

3

DIRECTORS:

G D Chilton

R W Swallow

REGISTERED OFFICE:

Suffolk House

George Street

Croydon

Surrey

CR0 0YN

REGISTERED NUMBER:

07112783 (England and Wales)

AUDITORS:

Simpson Wreford & Partners

Chartered Accountants & Statutory Auditors

Suffolk House

George Street

Croydon

Surrey

CR0 0YN

FIXED ASSETS

Property, plant and equipment

4

2,543,796

2,828,386

Investments

5

56

56

2,543,852

2,828,442

CURRENT ASSETS

Debtors

6

6,691,070

6,528,217

Cash at bank

19,809

9,358

6,710,879

6,537,575

CREDITORS

Amounts falling due within one year

7

6,614,893

6,690,130

NET CURRENT ASSETS/(LIABILITIES)

95,986

(152,555

)

TOTAL ASSETS LESS CURRENT LIABILITIES

2,639,838

2,675,887

CREDITORS

Amounts falling due after more than one year

8

(1,658,321

)

(1,718,443

)

PROVISIONS FOR LIABILITIES

10

(335,898

)

(47,505

)

NET ASSETS

645,619

909,939

CAPITAL AND RESERVES

Called up share capital

100

100

Retained earnings

645,519

909,839

SHAREHOLDERS' FUNDS

645,619

909,939

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 24th July 2018 and were signed on its behalf by:

R W Swallow - Director

1.	STATUTORY INFORMATION

The principal activity of the company continued to be that of leasing freehold property, motor sport cars and

equipment to fellow group companies.

The company is a private company limited by shares and is registered in England and Wales. The address of its

registered office is Suffolk House, George Street, Croydon, Surrey, CR0 0YN. The address of its principal place

of business is 7 Coxbridge Business Park, Alton Road, Farnham, Surrey, GU10 5EH.

2.	ACCOUNTING POLICIES

Basis of preparing the financial statements

These financial statements have been prepared in accordance with 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.

The company is itself a subsidiary company and is exempt from the requirement to prepare group financial

statements by virtue of section 400 of the Companies Act 2006. The financial statements therefore present

information about the company as an individual undertaking and not about its group.

Financial Reporting Standard 102 - reduced disclosure exemptions

The company has taken advantage of the following disclosure exemptions in preparing these financial

statements, as permitted by FRS 102 ''The Financial Reporting Standard applicable in the UK and Republic of

Ireland'':

- the requirements of Section 4 Statement of Financial Position paragraph 4.12(a)(iv);

- the requirements of Section 7 Statement of Cash Flows;

- the requirement of Section 3 Financial Statement Presentation paragraph 3.17(d);

- the requirements of Section 11 Financial Instruments paragraphs 11.39 to 11.48(c);

- the requirements of Section 12 Other Financial Instruments paragraphs 12.26 to 12.29;

- the requirements of Section 33 Related Party Disclosures paragraph 33.7.

This information is included in the consolidated financial statements of Capsicum Motorsport Holdings Limited

as at 31st October 2017, which may be obtained from the company's registered office.

Going concern

The accounts have been drawn up on a going concern basis as the beneficial owner of the group has indicated

his intention to continue providing financial support to the company and the group by way of loans.

Turnover

Turnover represents lease and sponsorship income, excluding value added tax. Where sales invoices are raised

during the year for periods subsequent to the balance sheet date, appropriate amounts are removed from

turnover and included as deferred income in current liabilities. Where sales invoices are raised subsequent to

the balance sheet date for services rendered during the financial year, appropriate amounts are added to

turnover and included as accrued income in current assets.

Tangible fixed assets

Tangible fixed assets under the cost model are stated at historical cost less accumulated deprecation and any

accumulated impairment losses. Historical cost includes expenditure that is directly attributable to bringing

the asset to the location and condition necessary for it to be capable of operating in the manner intended by

management.

At each reporting date the company assesses whether there is any indication of impairment. If such indiction

exists, the recoverable amount of the asset is determined which is the higher of it's fair value less costs to see

and its value in use. An impairment loss is recognised where the carrying amount exceeds the recoverable

amount.

Depreciation is charged so as to allocated the cost of assets less their residual value over their estimated useful

lives, on the following basis:

Freehold property

- 4% on cost

Motor racing cars

- at varying rates over the life of asset

Tractors and trailers

- at varying rates over the life of asset

Motor vehicles

- 33% on cost

The assets' residual value, useful lives and deprecation methods are reviewed, and adjusted prospectively if

appropriate, or if there is an indication of a significant change since the last reporting date.

Gains and losses on disposals are determined by comparing the proceeds with the carrying amounts and are

recognised in the statement of comprehensive income.

Financial instruments

The company only enters into basic financial instruments transactions that result in the recognition of financial

assets and liabilities like trade and other accounts receivable and payable, loans from banks and other third

parties and loans to related parties.

Financial assets that are measured at cost and amortised cost are assessed at the end of each reporting period

for objective evidence of impairment. If objective evidence of impairment is found, an impairment loss is

recognised in the statement of comprehensive income.

For financial assets measured at cost less impairment, the impairment loss is measured at the difference

between an asset's carrying amount and the best estimate of the recoverable amount, which is an

approximation of the amount that the company would receive for the asset if it were to be sold at the

statement of financial position date.

Taxation

Taxation for the year comprises current and deferred tax. Tax is recognised in the statement of comprehensive

income, except to the extent that it relates to items recognised in other comprehensive income or directly in

equity.

Current or deferred taxation assets and liabilities are not discounted.

Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or

substantively enacted by the statement of financial position date.

Deferred tax

Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the

statement of financial position date.

Timing differences arise from the inclusion of income and expenses in tax assessments in periods different

from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and

laws that have been enacted or substantively enacted by the year end and that are expected to apply to the

reversal of the timing difference.

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

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

Foreign currency translation

The company's functional and presentational currency is pound sterling.

Foreign currency transactions are translated into the functional currency using the spot exchange rates at the

dates of the transactions.

At each period end foreign currency monetary items are translated using the closing rate. Non-monetary items

measured at historical cost are translated using the exchange rate at the date of the transaction and

non-monetary items measured at fair value are measured using the exchange rate when fair value is

determined.

Foreign exchange gains and losses resulting from the settlement of transactions and from the translation at

period-end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognised

in administrative expenses within the statement of comprehensive income.

Debtors

Short term debtors are measured at transaction price, less any impairment. Loans receivable are measured

initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the

effective interest method, less any impairment.

Creditors

Short term trade creditors are measured at the transaction price. Other financial liabilities, including bank

loans, are measured initially at fair value, net of transaction costs, and are measured subsequently at

amortised cost using the effective interest method.

Cash and cash equivalents

Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on

notice of not more than 24 hours.

3.	EMPLOYEES AND DIRECTORS

The average number of employees during the year was 2 (2016 - 2 ) .

4.	PROPERTY, PLANT AND EQUIPMENT

Motor

Freehold

racing

Plant and

property

cars

machinery

£

£

£

COST

At 1st November 2016

2,015,543

1,477,128

16,000

Disposals

-

(22,000

)

-

At 31st October 2017

2,015,543

1,455,128

16,000

DEPRECIATION

At 1st November 2016

289,694

958,128

13,662

Charge for year

57,938

111,000

1,838

Eliminated on disposal

-

(22,000

)

-

At 31st October 2017

347,632

1,047,128

15,500

NET BOOK VALUE

At 31st October 2017

1,667,911

408,000

500

At 31st October 2016

1,725,849

519,000

2,338

Tractors

and

Motor

trailers

vehicles

Totals

£

£

£

COST

At 1st November 2016

852,625

64,155

4,425,451

Disposals

-

(16,500

)

(38,500

)

At 31st October 2017

852,625

47,655

4,386,951

DEPRECIATION

At 1st November 2016

277,926

57,655

1,597,065

Charge for year

110,814

3,000

284,590

Eliminated on disposal

-

(16,500

)

(38,500

)

At 31st October 2017

388,740

44,155

1,843,155

NET BOOK VALUE

At 31st October 2017

463,885

3,500

2,543,796

At 31st October 2016

574,699

6,500

2,828,386

5.	FIXED ASSET INVESTMENTS

Other

investments

£

COST

At 1st November 2016

and 31st October 2017

56

NET BOOK VALUE

At 31st October 2017

56

At 31st October 2016

56

6.

DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

31.10.17

31.10.16

£

£

Trade debtors

26,834

35,312

Amounts owed by group undertakings

6,664,236

6,492,905

6,691,070

6,528,217

7.

CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

31.10.17

31.10.16

£

£

Bank loans and overdrafts

116,549

168,000

Trade creditors

4,243

28,000

Amounts owed to group undertakings

172,263

172,268

VAT

4,470

617

Directors' loan accounts

6,299,367

6,299,367

Accruals and deferred income

18,001

21,878

6,614,893

6,690,130

Included within other creditors is a director's loan account of £6,299,367 (2016 - £6,299,367). The loan is

unsecured and interest-free and has no fixed repayment date.

8.

CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR

31.10.17

31.10.16

£

£

Bank loans - 1-2 years

118,843

168,000

Bank loans - 2-5 years

380,573

504,000

Bank loans more than 5 years

by instalments

1,158,905

1,046,443

1,658,321

1,718,443

31.10.17

31.10.16

£

£

Amounts falling due in more than five years:

Repayable by instalments

Bank loans more than 5 years

by instalments

1,158,905

1,046,443

1,158,905

1,046,443

9.	SECURED DEBTS

The following secured debts are included within creditors:

31.10.17

31.10.16

£

£

Bank Loan and overdraft

1,774,870

1,886,443

The bank borrowings are secured by fixed and floating charges on all assets held by the company.

10.	PROVISIONS FOR LIABILITIES

31.10.17

31.10.16

£

£

Deferred tax

335,898

47,505

Deferred

tax

£

Balance at 1st November 2016

47,505

Charge to Statement of Comprehensive Income during year

288,393

Balance at 31st October 2017

335,898

11.	AUDITORS' INFORMATION

The audit report provided to the members of Capsicum Leasing Limited on the financial statements for the

year ended 31 October 2017 was not qualified.

The audit report was signed by Deborah Wilkes (Senior Statutory Auditor) for and on behalf of Simpson

Wreford & Partners, Chartered Accountants and Statutory Auditor.

12.	DIRECTORS' ADVANCES, CREDITS AND GUARANTEES

G D Chilton, a director, continued to provide finance to the company during the year. The total balance owed

by the company at the year end was £6,299,367 (2016: £6,299,367). The loan is interest free and whilst

technically repayable on demand, the director has confirmed he will not seek repayment until the company is

in a position to do so.

13.	RELATED PARTY DISCLOSURES

No disclosure has been made of transactions with other wholly owned group companies in accordance with

FRS 102 Section 1A paragraph 1AC.35 as the company itself ia a wholly owned subsidiary of Capsicum

Motorsport Holdings Limited. Details of related party transactions not covered by this exemption are

described below:

During the year the company received rental income from Capsicum Grand Prix Limited of £37,147 (2016 -

£34,690), a company under common control. At the financial year end £Nil was owed to the company (2016 -

£Nil).

At the financial year end, the company owed Tomax Motorsport, an entity controlled and owned by G D

Chilton £Nil (2016: £28,000).

During the year additional working capital loans of £171,331 were made to sister company Capsicum

Motorsport Limited. At the financial year end the total amount due to the company was £5,579,945 (2016 -

£5,408,614).

At the financial year end, the amount due from sister company Capsicum Motorsport Simulation Limited was

£1,084,290 (2016 - 1,084,290).

14.	ULTIMATE CONTROLLING PARTY

The immediate and ultimate parent company is Capsicum Motorsport Holdings Limited, registered in England

and Wales.

The ultimate controlling party is G Chilton, who owns 100% of the ultimate parent company.

Capsicum Motorsport Holdings Limited prepares consolidated financial statements and copies can be obtained

from Suffolk House, George Street, Croydon, Surrey, CR0 0YN.