Company Registration No. 00877662 (England and Wales)
AARON RADIATOR PROPERTY COMPANY LTD
UNAUDITED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2020
PAGES FOR FILING WITH REGISTRAR
AARON RADIATOR PROPERTY COMPANY LTD
CONTENTS
Page
Balance sheet
1
Notes to the financial statements
2 - 7
AARON RADIATOR PROPERTY COMPANY LTD
BALANCE SHEET
AS AT
30 JUNE 2020
30 June 2020
- 1 -
30 June
30 June
2020
2019
Notes
£
£
£
£
Fixed assets
Tangible assets
5
1,999
2,666
Investment properties
375,811
375,811
Investments
6
100
100
377,910
378,577
Current assets
Debtors
8
26,164
13,150
Cash at bank and in hand
773,468
811,820
799,632
824,970
Creditors: amounts falling due within one year
9
(3,233)
(5,733)
Net current assets
796,399
819,237
Total assets less current liabilities
1,174,309
1,197,814
Provisions for liabilities
(25,823)
(25,823)
Net assets
1,148,486
1,171,991
Capital and reserves
Called up share capital
100
100
Revaluation reserve
11
107,221
107,221
Profit and loss reserves
1,041,165
1,064,670
Total equity
1,148,486
1,171,991
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 30 June 2020 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 Companies Act 2006 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.
The financial statements were approved by the board of directors and authorised for issue on 11 March 2021 and are signed on its behalf by:
Mrs J K Stringer
Director
Company Registration No. 00877662
AARON RADIATOR PROPERTY COMPANY LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2020
- 2 -
1
Accounting policies
Company information
Aaron Radiator Property Company Ltd is a
private
company
limited by shares
incorporated in England and Wales.
The registered office is
54 Whitehorse Lane, London, SE25 6RQ.
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 £.
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.
The company has taken advantage of the exemption under section 400 of the
Companies Act 2006 not to prepare consolidated accounts. The financial statements present information about the company as an individual entity and not about its group
.
1.2
Tangible fixed assets
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:
Motor vehicles
25% reducing balance basis
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
.
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.
Changes in fair value are recognised in profit or loss.
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.
AARON RADIATOR PROPERTY COMPANY LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2020
1
Accounting policies
(Continued)
- 3 -
1.5
Cash at bank and in hand
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.
1.6
Financial instruments
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.
Financial assets and liabilities are offset
, with
the net amounts presented in the financial statements
,
when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
Basic financial assets
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 cost using the effective interest
method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest.
Financial assets classified as receivable within one year are not amortised.
Classification of financial liabilities
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
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
paymen
ts 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.
Trade creditors
are obligations to pay for goods or services that have been acquired
in the ordinary course of business from suppliers. A
m
ounts payable are classified as
current liabilities if payment is due within one year or less. If not, they are presented
as non-current liabilities. Trade creditors are recognised initially at transaction price
and subsequently measured at amortised cost using the effective interest method.
Changes in the fair value of derivatives that are designated and qualify as fair value hedges are recognised in profit or loss immediately, together with any changes in the fair value of the hedged asset or liability that are attributable to the hedged risk.
1.7
Taxation
The tax expense represents the sum of the tax currently payable and deferred tax.
AARON RADIATOR PROPERTY COMPANY LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2020
1
Accounting policies
(Continued)
- 4 -
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
Operating loss
2020
2019
Operating loss for the year is stated after charging:
£
£
Depreciation of owned tangible fixed assets
667
888
3
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2020
2019
Number
Number
Total
2
2
4
Taxation
2020
2019
£
£
Current tax
Adjustments in respect of prior periods
-
(35)
AARON RADIATOR PROPERTY COMPANY LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2020
- 5 -
5
Tangible fixed assets
Motor vehicles
£
Cost
At 1 July 2019 and 30 June 2020
7,813
Depreciation and impairment
At 1 July 2019
5,147
Depreciation charged in the year
667
At 30 June 2020
5,814
Carrying amount
At 30 June 2020
1,999
At 30 June 2019
2,666
6
Fixed asset investments
2020
2019
£
£
Shares in group undertakings and participating interests
100
100
Fixed asset investments not carried at market value
Investments in subsidiaries are valued at cost less any provision for diminution in value.
Movements in fixed asset investments
Shares in group undertakings
£
Cost or valuation
At 1 July 2019 & 30 June 2020
100
Carrying amount
At 30 June 2020
100
At 30 June 2019
100
AARON RADIATOR PROPERTY COMPANY LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2020
- 6 -
7
Subsidiaries
Details of the company's subsidiaries at 30 June 2020 are as follows:
Name of undertaking
Registered
Nature of business
Class of
% Held
office
shares held
Direct
Indirect
Aaron Radiator Company Ltd
UK
sale and repair of motor vehicle radiators
Ordinary
100.00
0
The aggregate capital and reserves and the result for the year of the subsidiaries noted above was as follows:
Name of undertaking
Profit/(Loss)
Capital and Reserves
£
£
Aaron Radiator Company Ltd
(11,306)
17,442
The investment in the subsidiary is valued at cost less any provision for diminution in value.
At 30 June 2020 the subsidiary owed the company £25,697 (2019 : £12,684)
8
Debtors
2020
2019
Amounts falling due within one year:
£
£
Amounts owed by group undertakings
25,697
12,684
Other debtors
467
466
26,164
13,150
9
Creditors: amounts falling due within one year
2020
2019
£
£
Other creditors
3,233
5,733
AARON RADIATOR PROPERTY COMPANY LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2020
- 7 -
10
Provisions for liabilities
2020
2019
£
£
Deferred tax liabilities
25,823
25,823
11
Revaluation reserve
2020
2019
£
£
At the beginning and end of the year
107,221
107,221
In recognising the sale of the property at Hornsey Road the revaluation reserve attributed to that property has been reversed totalling £387,546. The balance on the revaluation reserve is now solely attributable to the property at Whitehorse Lane used by the subsidiary Aaron Radiator Company Ltd.
12
Operating lease commitments
At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, as follows:
2020
2019
£
£
-
-
13
Related party transactions
The company owns a freehold property at Whitehorse Lane which is occupied by its wholly owned subsidiary Aaron Radiator Company Ltd. No commercial rent was paid during the year (2019 : £Nil) .
At the balance sheet date £25,697 (2019 :£12,684) was owed to the company by its subsidiary.(See note 8).
14
Directors' transactions
Dividends totalling £18,900 (2019 - £0) were paid in the year in respect of shares held by the company's directors.