Paul Securities Limited
Unaudited Financial Statements
For Filing with Registrar
For the year ended 31 July 2019
Company Registration No. 00721692 (England and Wales)
Paul Securities Limited
Company Information
Directors
P Crocker
H Crocker
L S Da Costa
E Crocker
Secretary
E Crocker
Company number
00721692
Registered office
Devonshire House
60 Goswell Road
London
EC1M 7AD
Accountants
Moore Kingston Smith LLP
Devonshire House
60 Goswell Road
London
EC1M 7AD
Business address
3rd Floor
44 Great Marlborough Street
London
W1F 7JL
Paul Securities Limited
Contents
Page
Balance sheet
1 - 2
Notes to the financial statements
3 - 7
Paul Securities Limited
Balance Sheet
As at 31 July 2019
Page 1
2019
2018
Notes
£
£
£
£
Fixed assets
Investment properties
3
-
13,056,001
Investments
4
-
80
-
13,056,081
Current assets
Stock
5
12,456,001
-
Debtors
6
6,583,947
6,277,648
Cash at bank and in hand
3,300,588
3,388,239
22,340,536
9,665,887
Creditors: amounts falling due within one year
7
(1,193,897)
(1,526,715)
Net current assets
21,146,639
8,139,172
Total assets less current liabilities
21,146,639
21,195,253
Provisions for liabilities
(1,843,939)
(1,906,520)
Net assets
19,302,700
19,288,733
Capital and reserves
Called up share capital
8
40
40
Profit and loss reserves
19,302,660
19,288,693
Total equity
19,302,700
19,288,733
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 July 2019 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.
T
he directors acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and the preparation of financial statements.
T
he 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.
Paul Securities Limited
Balance Sheet (Continued)
As at 31 July 2019
Page 2
The financial statements were approved by the board of directors and authorised for issue on 28 April 2020 and are signed on its behalf by:
P Crocker
H Crocker
Director
Director
Company Registration No. 00721692
Paul Securities Limited
Notes to the Financial Statements
For the year ended 31 July 2019
Page 3
1
Accounting policies
Company information
Paul Securities Limited is a
private
company
limited by shares
incorporated in England and Wales.
The registered office is
Devonshire House, 60 Goswell Road, London, EC1M 7AD.
1.1
Accounting convention
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 a
mounts
in these financial statements are
rounded to the nearest pound.
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.
1.2
Turnover
Turnover comprises loan arrangement fees and loan interest charged from providing finance to other entities and rent receivable on properties.
Revenue is recognised in the period to which the income relates.
1.3
Investment properties
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 a
t
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.
1.4
Fixed asset investments
Interests in subsidiaries, associates and jointly controlled entities are initially measured at cost and subsequently measured at cost less any accumulated impairment losses.
The investments are assessed for impairment at each reporting date
and
any
impairment
losses or reversals of impairment losses are recognised immediately in profit or loss.
A subsidiary is an entity controlled by the company
. Control is
the power to govern the financial and operating policies of
the
entity so as to obtain benefits from its activities.
1.5
Stock
Stock
is properties held for sale, previously held as investment properties in the prior year. These have been transferred to stock at fair value as at 1 August 2018.
1.6
Cash at bank and in hand
Cash at bank and in hand
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.
Paul Securities Limited
Notes to the Financial Statements (Continued)
For the year ended 31 July 2019
1
Accounting policies
(Continued)
Page 4
1.7
Financial instruments
Basic financial instruments are held at cost. The company has no other financial instruments or basic financial instruments measured at fair value.
1.8
Equity instruments
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.
1.9
Taxation
The tax expense represents the sum of the tax currently payable and deferred tax.
Current 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
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. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.
The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. 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. Deferred tax assets and liabilities are offset when the
company
has a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.
2
Employees
The average monthly number of persons (including directors) employed by the company during the year was 4 (2018 - 5).
3
Investment property
2019
£
Fair value
At 1 August 2018
13,056,001
Transfers
(13,056,001)
At 31 July 2019
-
Paul Securities Limited
Notes to the Financial Statements (Continued)
For the year ended 31 July 2019
3
Investment property
(Continued)
Page 5
The valuations were made by the directors, on an open market value for existing use basis.
If investment properties were stated on an historical cost basis rather than a fair value basis, the amounts would have been included as follows:
2019
2018
£
£
Cost
-
1,546,428
Accumulated depreciation
-
-
Carrying amount
-
1,546,428
4
Fixed asset investments
2019
2018
£
£
Investments
-
80
Movements in fixed asset investments
Shares in group undertakings
£
Cost or valuation
At 1 August 2018
80
Disposals
(80)
At 31 July 2019
-
Carrying amount
At 31 July 2019
-
At 31 July 2018
80
Paul Securities Limited
Notes to the Financial Statements (Continued)
For the year ended 31 July 2019
Page 6
5
Stock
2019
2018
£
£
Stock of properties held for sale
12,456,001
-
Having reviewed market conditions and development opportunities, in July 2015 the directors made the decision to realise all of the company’s properties into cash, and initially lend that cash out to other companies under common control for property development, investment and trading activities. Therefore, since July 2015 the company’s principal activity has changed from that of property investment for rental income and capital growth, to selling down its properties and trading as a finance company. Accordingly, the directors have reclassified all of the company’s properties, which are now held for sale
as trading stock
, from
investment property to stock at fair value as at 1 August 2018. If properties were held at historical cost basis rather than fair value, the amounts included in stock would have been £1,538,194.
6
Debtors
2019
2018
Amounts falling due within one year:
£
£
Trade debtors
9,160
10,058
Other debtors
6,574,787
6,267,590
6,583,947
6,277,648
7
Creditors: amounts falling due within one year
2019
2018
£
£
Trade creditors
18,543
4,650
Corporation tax
181,330
545,000
Other creditors
994,024
977,065
1,193,897
1,526,715
8
Called up share capital
2019
2018
£
£
Ordinary share capital
Issued and fully paid
40 Ordinary shares of £1 each
40
40
40
40
Paul Securities Limited
Notes to the Financial Statements (Continued)
For the year ended 31 July 2019
Page 7
9
Related party transactions
At the year end, the company owed £900
,
000 (2018: £900,000) to a director of the company which is included within other creditors
due within one year
. The balance is repayable on demand.
No interest is accruing on these balances.
At the year end, the company owed £
20,660
(2018: £
nil
) to
companies under common control
which is included within other creditors due within one year. The balance is repayable on demand.
No interest is accruing on these balances.
At the year end, the company was owed £
6,305,322
(2018:
£5,583,537
) by companies under common control which is included within other debtors. The balance is repayable on demand.
No interest is accruing on these balances.
During the year the company made available facilities totalling a maximum of £2,000,000 to a company under common control. At the balance sheet date, £nil of this facility had been drawn and was outstanding.