Staton Young (Residential) Limited - Period Ending 2018-05-31

Registration number: 07292288

Staton Young (Residential) Limited

Annual Report and Unaudited Financial Statements

for the Year Ended 31 May 2018

Staton Young (Residential) Limited

Contents

Company Information	1
Accountants' Report	2
Balance Sheet	3 to 4
Notes to the Financial Statements	5 to 11

Staton Young (Residential) Limited

Company Information

Directors

R L Brough M L Brough

Registered office

Derwent Business Centre Clarke Street Derby DE1 2BU

Bankers

Svenska Handelsbanken AB 4 Pinnacle Way Pride Park Derby DE24 8ZS

Accountants

Ashgates Corporate Services Limited 5 Prospect Place Millennium Way Pride Park Derby DE24 8HG

Page 1

Chartered Certified Accountants' Report to the Board of Directors on the Preparation of the Unaudited Statutory Accounts of
Staton Young (Residential) Limited
for the Year Ended 31 May 2018

In order to assist you to fulfil your duties under the Companies Act 2006, we have prepared for your approval the accounts of Staton Young (Residential) Limited for the year ended 31 May 2018 as set out on pages 3 to 11 from the company's accounting records and from information and explanations you have given us.

As a practising member firm of the Association of Chartered Certified Accountants, we are subject to its ethical and other professional requirements which are detailed at http://www.accaglobal.com/en/
member/professional-standards/rules-standards/acca-rulebook.html.

This report is made solely to the Board of Directors of Staton Young (Residential) Limited, as a body, in accordance with the terms of our engagement letter. Our work has been undertaken solely to prepare for your approval the accounts of Staton Young (Residential) Limited and state those matters that we have agreed to state to the Board of Directors of Staton Young (Residential) Limited, as a body, in this report in accordance with the requirements of the Association of Chartered Certified Accountants as detailed at http://www.accaglobal.com/content/dam/ACCA_Global/Technical/fact/
technical-factsheet-163.pdf. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than Staton Young (Residential) Limited and its Board of Directors as a body for our work or for this report.

It is your duty to ensure that Staton Young (Residential) Limited has kept adequate accounting records and to prepare statutory accounts that give a true and fair view of the assets, liabilities, financial position and loss of Staton Young (Residential) Limited. You consider that Staton Young (Residential) Limited is exempt from the statutory audit requirement for the year.

We have not been instructed to carry out an audit or a review of the accounts of Staton Young (Residential) Limited. For this reason, we have not verified the accuracy or completeness of the accounting records or information and explanations you have given to us and we do not, therefore, express any opinion on the statutory accounts.

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

Ashgates Corporate Services Limited
5 Prospect Place
Millennium Way
Pride Park
Derby
DE24 8HG

18 December 2018

Page 2

Staton Young (Residential) Limited

(Registration number: 07292288)
Balance Sheet as at 31 May 2018

	Note	2018 £	2017 £
Fixed assets
Tangible assets	4	3,253	4,337
Investment property	5	2,955,500	2,867,500
		2,958,753	2,871,837
Current assets
Debtors	6	2,110,922	2,239,185
Cash at bank and in hand		5,527	831
		2,116,449	2,240,016
Creditors: Amounts falling due within one year	7	(1,608,496)	(1,100,550)
Net current assets		507,953	1,139,466
Total assets less current liabilities		3,466,706	4,011,303
Creditors: Amounts falling due after more than one year	7	(1,505,043)	(1,496,700)
Provisions for liabilities		(75,783)	(95,852)
Net assets		1,885,880	2,418,751
Capital and reserves
Called up share capital	9	100	100
Fair value reserve		343,864	602,794
Profit and loss account		1,541,916	1,815,857
Total equity		1,885,880	2,418,751

The notes on pages 5 to 11 form an integral part of these financial statements.

Page 3

Staton Young (Residential) Limited

(Registration number: 07292288)
Balance Sheet as at 31 May 2018

For the financial year ending 31 May 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 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 Board on 18 December 2018 and signed on its behalf by:
 

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

M L Brough

Director

The notes on pages 5 to 11 form an integral part of these financial statements.

Page 4

Staton Young (Residential) Limited

Notes to the Financial Statements for the Year Ended 31 May 2018

1	General information

The company is a private company limited by share capital incorporated in England and Wales.

The address of the registered office is given in the company information on page 1 of the financial statements.

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 financial statements are presented in Sterling (£) and rounded to the nearest £1.

Going concern

The financial statements have been prepared on a going concern basis.

Page 5

Staton Young (Residential) Limited

Notes to the Financial Statements for the Year Ended 31 May 2018

Key sources of estimation uncertainty

In the application of 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 considered to be relevant. Actual results may differ from these estimates.

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

The estimates and assumptions which have risk of causing material adjustment to the carrying amount of assets and liabilities are set out below:

Valuation of investment properties
These valuations rely on a number of estimations and assumptions being made in relation to market conditions and developments.

Impairment of debtors:
On a periodic basis management makes an estimation of the recoverability of debtors. Management make such estimations taking into account their knowledge of the subsidiary companies in the group.

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.

Other grants

Grants are recognised at the fair value of the asset received or receivable when there is reasonable assurance that the company will comply with conditions attaching to them and the grants will be received using the accrual model.

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 income tax is recognised on temporary differences arising between the tax bases of assets and liabilities and their carrying amounts in the financial statements and on unused tax losses or tax credits in the company. Deferred income 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.

Page 6

Staton Young (Residential) Limited

Notes to the Financial Statements for the Year Ended 31 May 2018

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, machinery and equipment	25% reducing balance basis

Investment property

Investment property is carried at fair value, derived from the current market prices for comparable real estate determined annually by the directors and in conjunction with work carried out 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.

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.

3	Staff numbers

The average number of persons employed by the company (including directors) during the year, was 2 (2017 - 3).

Page 7

Staton Young (Residential) Limited

Notes to the Financial Statements for the Year Ended 31 May 2018

4	Tangible assets

	Plant, machinery and equipment £	Total £
Cost or valuation
At 1 June 2017	8,618	8,618
At 31 May 2018	8,618	8,618
Depreciation
At 1 June 2017	4,281	4,281
Charge for the year	1,084	1,084
At 31 May 2018	5,365	5,365
Carrying amount
At 31 May 2018	3,253	3,253
At 31 May 2017	4,337	4,337

Page 8

Staton Young (Residential) Limited

Notes to the Financial Statements for the Year Ended 31 May 2018

5	Investment properties

	Total £
At 1 June 2017	2,867,500
Additions	801,767
Disposals	(483,000)
Fair value adjustments	(230,767)
At 31 May 2018	2,955,500

The fair values of the investment properties were reviewed by the directors at 31 May 2018. The fair values have been determined by carrying out a review of the property and investment yields in the area. These properties were valued at £2,955,500 (2017 - £2,867,500).

The directors valuations are further supported by independent valuations carried out on the majority of the investment properties in August 2015. The valuations were carried out in accordance with RICS and has been considered by the directors in establishing their fair values as at 31 May 2018.

6

Debtors

	Note	2018 £	2017 £
Trade debtors		10,440	8,139
Amounts owed by group undertakings	11	2,029,065	2,166,276
Other debtors		71,417	64,770
		2,110,922	2,239,185

7

Creditors

	Note	2018 £	2017 £
Due within one year
Loans and borrowings	8	129,364	109,823
Trade creditors		12,239	3,192
Amounts owed to group undertakings	11	1,274,297	771,904
Taxation and social security		131,074	139,069
Other creditors		61,522	76,562
		1,608,496	1,100,550
Due after one year
Loans and borrowings	8	1,505,043	1,496,700

Page 9

Staton Young (Residential) Limited

Notes to the Financial Statements for the Year Ended 31 May 2018

8	Loans and borrowings

	2018 £	2017 £
Current loans and borrowings
Bank borrowings	102,065	83,150
Bank overdrafts	27,299	26,673
	129,364	109,823

	2018 £	2017 £
Non-current loans and borrowings
Bank borrowings	1,505,043	1,496,700

Secured borrowings

Liabilities in respect of bank borrowings and overdrafts are secured by a first legal charge over the company's properties, a debenture over the company's whole assets and undertaking and an unlimited inter company composite guarantee between the company and it's related companies. The carrying amounts at the year end were £1,634,407 (2017 - £1,606,523).

9	Share capital

Allotted, called up and fully paid shares

	2018		2017
	No.	£	No.	£
Ordinary shares of £1 each	100	100	100	100

10	Financial commitments, guarantees and contingencies

Commitments
The total amount of financial commitments not included in the balance sheet is £2,090 (2017 - £2,850).
 

Contingent liabilities
The company has entered into cross guarantees and debentures with its bankers to secure the liabilities of other related companies. The contingent liability as at 31 May 2018 is £3,973,956 (2017 - £3,011,673). The future outcome is dependent on the performance of individual companies concerned. However the directors do not expect any liability to crystallise.

Page 10

Staton Young (Residential) Limited

Notes to the Financial Statements for the Year Ended 31 May 2018

11	Related party transactions

Transactions with directors

During the year the following advances were made to directors:

2018	At 1 June 2017 £	Advances to directors £	Repayments by director £	At 31 May 2018 £
Interest free loans repayable on demand	-	(771,696)	771,696	-

2017	At 1 June 2016 £	Advances to directors £	Repayments by director £	At 31 May 2017 £
Interest free loans repayable on demand	(145,143)	(181,936)	327,079	-

Summary of transactions with other related parties

Partership in which both of the directors are partners
At the balance sheet date the amount due to this related party was £11,600 (2017 - nil).

The company has taken advantage of the exemption under FRS102 Section 1A in respect of disclosing transactions with other members of the group.

 

Page 11