Oak Property Investments Limited - Period Ending 2017-10-31
Oak Property Investments Limited - Period Ending 2017-10-31
Registration number:
Oak Property Investments Limited
for the Year Ended 31 October 2017
Oak Property Investments Limited
Contents
Company Information |
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Balance Sheet |
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Notes to the Financial Statements |
Oak Property Investments Limited
Company Information
Director |
RJH Whittaker |
Company secretary |
DM Bingham |
Registered office |
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Accountants |
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Page 1 |
Oak Property Investments Limited
(Registration number: 03733566)
Balance Sheet as at 31 October 2017
Note |
2017 |
2016 |
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Fixed assets |
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Intangible assets |
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Tangible assets |
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Investment properties |
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Current assets |
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Stocks |
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Debtors |
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Cash at bank and in hand |
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Creditors: Amounts falling due within one year |
( |
( |
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Net current liabilities |
( |
( |
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Total assets less current liabilities |
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Creditors: Amounts falling due after more than one year |
( |
( |
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Provisions for liabilities |
( |
( |
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Net assets |
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Capital and reserves |
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Called up share capital |
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Revaluation reserve |
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Profit and loss account |
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Total equity |
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Page 2 |
Oak Property Investments Limited
(Registration number: 03733566)
Balance Sheet as at 31 October 2017
For the financial year ending 31 October 2017 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.
Director's responsibilities:
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The director acknowledges his 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.
Approved and authorised by the
.........................................
RJH Whittaker
Director
Page 3 |
Oak Property Investments Limited
Notes to the Financial Statements for the Year Ended 31 October 2017
General information |
The company is a private company limited by share capital, incorporated in England and Wales.
The address of its registered office is:
These financial statements were authorised for issue by the
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.
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.
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.
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, except for revalued land and investment property where the tax rate that applies to the sale of the asset is used.
Page 4 |
Oak Property Investments Limited
Notes to the Financial Statements for the Year Ended 31 October 2017
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 |
Land and buildings |
Nil |
Leasehold properties |
Straight line over the life of the lease |
Fixtures, fittings and equipment |
20% straight line |
Investment properties
Goodwill
Goodwill arising on the acquisition of an entity represents the excess of the cost of acquisition over the company’s interest in the net fair value of the identifiable assets, liabilities and contingent liabilities of the entity recognised at the date of acquisition. Goodwill is initially recognised as an asset at cost and is subsequently measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is held in the currency of the acquired entity and revalued to the closing rate at each reporting period date. Goodwill is amortised over its useful life, which shall not exceed ten years if a reliable estimate of the useful life cannot be made.
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 |
Goodwill |
Straight line over estimated useful economical life of 5 years |
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 merchandise sold or 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.
Page 5 |
Oak Property Investments Limited
Notes to the Financial Statements for the Year Ended 31 October 2017
Stocks
Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost is determined using the first-in, first-out (FIFO) method.
The cost of finished goods and work in progress comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the inventories to their present location and condition. At each reporting date, stocks are assessed for impairment. If stocks are impaired, the carrying amount is reduced to its selling price less costs to complete and sell; the impairment loss is recognised immediately in profit or loss.
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.
Provisions
Provisions are recognised when the company has an obligation at the reporting date as a result of a past event, it is probable that the company will be required to settle that obligation and a reliable estimate can be made of the amount of the obligation.
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.
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.
Page 6 |
Oak Property Investments Limited
Notes to the Financial Statements for the Year Ended 31 October 2017
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.
Defined contribution pension obligation
A defined contribution plan is a pension plan under which fixed contributions are paid into a pension fund and the company has no legal or constructive obligation to pay further contributions even if the fund does not hold sufficient assets to pay all employees the benefits relating to employee service in the current and prior periods.
Contributions to defined contribution plans are recognised as employee benefit expense when they are due. If contribution payments exceed the contribution due for service, the excess is recognised as a prepayment.
Staff numbers |
The average number of persons employed by the company (including the director) during the year, was
Page 7 |
Oak Property Investments Limited
Notes to the Financial Statements for the Year Ended 31 October 2017
Intangible assets |
Goodwill |
Total |
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Cost or valuation |
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At 1 November 2016 |
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At 31 October 2017 |
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Amortisation |
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At 1 November 2016 |
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Amortisation charge |
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At 31 October 2017 |
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Carrying amount |
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At 31 October 2017 |
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At 31 October 2016 |
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Tangible assets |
Land and buildings |
Furniture, fittings and equipment |
Total |
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Cost or valuation |
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At 1 November 2016 |
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Additions |
- |
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Disposals |
- |
( |
( |
At 31 October 2017 |
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Depreciation |
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At 1 November 2016 |
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Charge for the year |
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Eliminated on disposal |
- |
( |
( |
At 31 October 2017 |
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Carrying amount |
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At 31 October 2017 |
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At 31 October 2016 |
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Included within the net book value of land and buildings above is £1,105,000 (2016 - £1,105,000) in respect of freehold land and buildings and £11,946 (2016 - £14,473) in respect of short leasehold land and buildings.
Page 8 |
Oak Property Investments Limited
Notes to the Financial Statements for the Year Ended 31 October 2017
Investment properties |
2017 |
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At 1 November 2016 |
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Disposals |
( |
At 31 October 2017 |
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All properties were revalued by the director. The basis of this valuation was by using the traditional investment valuation methodology.
Stocks |
2017 |
2016 |
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Other inventories |
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Debtors |
2017 |
2016 |
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Trade debtors |
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Prepayments |
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Other debtors |
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Creditors |
Creditors: amounts falling due within one year
2017 |
2016 |
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Bank borrowings and obligations under hire purchase contracts |
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Trade creditors |
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Taxation and social security |
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Accruals and deferred income |
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Other creditors |
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Creditors include bank loans and overdrafts and net obligations under hire purchase contracts which are secured of £836,775 (2016 - £129,666).
Page 9 |
Oak Property Investments Limited
Notes to the Financial Statements for the Year Ended 31 October 2017
Creditors: amounts falling due after more than one year
Note |
2017 |
2016 |
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Bank borrowings and obligations under hire purchase contracts |
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Creditors include bank loans and overdrafts and net obligations under hire purchase contracts which are secured of £1,987,866 (2016 - £2,924,341).
Creditors include bank loans repayable by instalments of £81,399 (2016 - £110,652) due after more than five years.
Creditors include bank loans not repayable by instalments of £833,793 (2016 - £1,024,052) due after more than five years.
Share capital |
Allotted, called up and fully paid shares
2017 |
2016 |
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No. |
£ |
No. |
£ |
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Ordinary A shares of £1 each |
100 |
100 |
100 |
100 |
Ordinary B shares of £1 each |
10 |
10 |
10 |
10 |
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Related party transactions |
Summary of transactions with other related parties
During the year the company had a loan due to the director's father. The total amount of interest charged was £5,821 (2016 - £6,146).
At the balance sheet date the amount due was £150,000 (2016 - £150,000).
Page 10 |
Oak Property Investments Limited
Notes to the Financial Statements for the Year Ended 31 October 2017
Transition to FRS 102 |
Consequently an additional prepayment of £3,000 at 1 November 2015 has been made to reflect this with a corresponding reduction in corporation tax of £600. The provision at 31 October 2016 had remained the same so there was no charge to the profit and loss in the year ended 31 October 2016.
Prior to the adoption of FRS 102 property held for investment was included in Freehold land and buildings. FRS 102 requires investment properties to be shown separately.
Prior to the adoption of FRS 102 revaluation of investment went through the Statement of Total Recognised Gains and Losses. FRS 102 requires the revaluation to be shown in the Profit and Loss Account.
Prior to the adoption of FRS 102 deferred tax was only provided for capital allowances in excess of depreciation. FRS 102 requires all deferred tax on potential gains and losses to be recognised.
Consequently an additional deferred tax provision of £113,240 at 1 November 2015 has been made to reflect this. The provision at 31 October 2016 had decreased to £82,240 and the decrease in provision of £31,000 has been charged to profit and loss in the year ended 31 October 2016.
Page 11 |
Oak Property Investments Limited
Notes to the Financial Statements for the Year Ended 31 October 2017
Balance Sheet at 1 November 2015
As originally reported |
Reclassification |
Remeasurement |
As restated |
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Fixed assets |
||||
Intangible assets |
55,618 |
- |
- |
55,618 |
Tangible assets |
5,609,243 |
(4,295,000) |
- |
1,314,243 |
Investment property |
- |
4,295,000 |
- |
4,295,000 |
5,664,861 |
- |
- |
5,664,861 |
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Current assets |
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Stocks |
5,790 |
- |
- |
5,790 |
Debtors |
334,608 |
- |
3,000 |
337,608 |
Cash at bank and in hand |
740,051 |
- |
- |
740,051 |
1,080,449 |
- |
3,000 |
1,083,449 |
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Creditors: Amounts falling due within one year |
(1,623,243) |
- |
(600) |
(1,623,843) |
Net current (liabilities)/assets |
(542,794) |
- |
2,400 |
(540,394) |
Total assets less current liabilities |
5,122,067 |
- |
2,400 |
5,124,467 |
Creditors: Amounts falling due after more than one year |
(3,039,569) |
- |
- |
(3,039,569) |
Provisions for liabilities |
(133,635) |
- |
(113,240) |
(246,875) |
Net assets/(liabilities) |
1,948,863 |
- |
(110,840) |
1,838,023 |
Capital and reserves |
||||
Called up share capital |
(110) |
- |
- |
(110) |
Revaluation reserve |
(1,270,233) |
- |
113,240 |
(1,156,993) |
Profit and loss account |
(678,520) |
- |
(2,400) |
(680,920) |
Total equity |
(1,948,863) |
- |
110,840 |
(1,838,023) |
Page 12 |
Oak Property Investments Limited
Notes to the Financial Statements for the Year Ended 31 October 2017
Balance Sheet at 31 October 2016
As originally reported |
Reclassification |
Remeasurement |
As restated |
|
Fixed assets |
||||
Intangible assets |
39,590 |
- |
- |
39,590 |
Tangible assets |
5,772,454 |
(4,295,000) |
- |
1,477,454 |
Investment property |
- |
4,295,000 |
- |
4,295,000 |
5,812,044 |
- |
- |
5,812,044 |
|
Current assets |
||||
Stocks |
2,295 |
- |
- |
2,295 |
Debtors |
346,556 |
- |
3,000 |
349,556 |
Cash at bank and in hand |
730,758 |
- |
- |
730,758 |
1,079,609 |
- |
3,000 |
1,082,609 |
|
Creditors: Amounts falling due within one year |
(1,656,879) |
- |
(600) |
(1,657,479) |
Net current (liabilities)/assets |
(577,270) |
- |
2,400 |
(574,870) |
Total assets less current liabilities |
5,234,774 |
- |
2,400 |
5,237,174 |
Creditors: Amounts falling due after more than one year |
(2,924,341) |
- |
- |
(2,924,341) |
Provisions for liabilities |
(192,356) |
- |
(82,240) |
(274,596) |
Net assets/(liabilities) |
2,118,077 |
- |
(79,840) |
2,038,237 |
Capital and reserves |
||||
Called up share capital |
(110) |
- |
- |
(110) |
Revaluation reserve |
(1,267,643) |
- |
82,239 |
(1,185,404) |
Profit and loss account |
(850,324) |
- |
(2,399) |
(852,723) |
Total equity |
(2,118,077) |
- |
79,840 |
(2,038,237) |
Page 13 |