Registered number:
03196141
H B SANDS HOLDINGS LIMITED
UNAUDITED
FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 DECEMBER 2019
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H B SANDS HOLDINGS LIMITED
REGISTERED NUMBER:
03196141
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STATEMENT OF FINANCIAL POSITION
AS AT
30 DECEMBER 2019
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Debtors: amounts falling due within one year
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Creditors: amounts falling due within one year
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Total assets less current liabilities
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Investment property reserve
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Page 1
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H B SANDS HOLDINGS LIMITED
REGISTERED NUMBER:
03196141
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STATEMENT OF FINANCIAL POSITION
(CONTINUED)
AS AT
30 DECEMBER 2019
The director considers that the Company is entitled to exemption from audit under section 477 of the Companies Act 2006 and members have not required the Company to obtain an audit for the year in question in accordance with section 476 of the Companies Act 2006.
The director acknowledges his responsibilities for complying with the requirements of the Companies Act 2006 with respect to accounting records and the preparation of financial statements.
The
financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies regime and in accordance with the provisions of FRS 102 Section 1A - small entities.
The financial statements have been delivered in accordance with the provisions applicable to companies subject to the small companies regime.
The Company has opted not to file the statement of income and retained earnings in accordance with provisions applicable to companies subject to the small companies' regime.
The financial statements were approved and authorised for issue by the board and were signed on its behalf on
26 August 2020
.
The notes on pages 3 to 12 form part of these financial statements.
Page 2
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H B SANDS HOLDINGS LIMITED
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 DECEMBER 2019
H B Sands Holdings Limited is a private company limited by shares and incorporated in England and Wales, registration number 03196141. The registered office is Sands House, Ingham, Stalham, Norfolk, NR12 9TA.
2.
Accounting policies
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Basis of preparation of financial statements
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The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Section 1A of
Financial Reporting Standard 102, the Financial Reporting Standard applicable in
the UK and the Republic of Ireland and the Companies Act 2006
.
The financial statements are presented in sterling which is the functional currency of the company and rounded to the nearest £.
The significant accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all years presented unless otherwise stated.
Turnover is recognised to the extent that it is probable that the economic benefits will flow to the Company and the turnover can be reliably measured. Turnover is measured as the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. The following criteria must also be met before turnover is recognised:
Rendering of services
Turnover from a contract to provide services is recognised in the period in which the services are provided in accordance with the stage of completion of the contract when all of the following conditions are satisfied:
∙
the amount of turnover can be measured reliably;
∙
it is probable that the Company will receive the consideration due under the contract;
∙
the stage of completion of the contract at the end of the reporting period can be measured reliably; and
∙
the costs incurred and the costs to complete the contract can be measured reliably.
Tangible fixed assets under the cost model, other than investment properties, are stated at historical cost less accumulated depreciation 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.
Page 3
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H B SANDS HOLDINGS LIMITED
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 DECEMBER 2019
2.
Accounting policies (continued)
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Tangible fixed assets (continued)
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Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, on a reducing balance basis.
Depreciation is provided on the following basis:
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15% - 25% reducing balance
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The assets' residual values, useful lives and depreciation 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 amount and are recognised in profit or loss.
Investment property is carried at fair value determined annually by the director and derived from the current market rents and investment property yields for comparable real estate, adjusted if necessary for any difference in the nature, location or condition of the specific asset. No depreciation is provided. Changes in fair value are recognised in the Income statement.
Investments in unlisted Company shares, whose market value can be reliably determined, are remeasured to market value at each balance sheet date. Gains and losses on remeasurement are recognised in the Statement of income and retained earnings for the period. Where market value cannot be reliably determined, such investments are stated at historic cost less impairment.
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.
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Cash and cash equivalents
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Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours. Cash equivalents are highly liquid investments that mature in no more than three months from the date of acquisition and that are readily convertible to known amounts of cash with insignificant risk of change in value.
The Company only enters into basic financial instrument transactions that result in the recognition of financial assets and liabilities like trade and other debtors and creditors, loans from banks and other third parties, loans to related parties and investments in non-puttable ordinary shares.
Page 4
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H B SANDS HOLDINGS LIMITED
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 DECEMBER 2019
2.
Accounting policies (continued)
Short term 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.
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Foreign currency translation
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Functional and presentation currency
The Company's functional and presentational currency is GBP.
Transactions and balances
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 was 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 profit or loss except when deferred in other comprehensive income as qualifying cash flow hedges.
Foreign exchange gains and losses that relate to borrowings and cash and cash equivalents are presented in the Statement of income and retained earnings within 'finance income or costs'. All other foreign exchange gains and losses are presented in profit or loss within 'other operating income'.
Finance costs are charged to profit or loss over the term of the debt using the effective interest method so that the amount charged is at a constant rate on the carrying amount. Issue costs are initially recognised as a reduction in the proceeds of the associated capital instrument.
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Operating leases: the Company as lessee
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Rentals paid under operating leases are charged to profit or loss on a straight line basis over the lease term.
Page 5
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H B SANDS HOLDINGS LIMITED
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 DECEMBER 2019
2.
Accounting policies (continued)
The Company is a member of two multi-employer plans - a directors scheme and an employees scheme. Where it is not possible for the Company to obtain sufficient information to enable it to account for the plans as a defined benefit plan, it accounts for the plans as defined contribution plans.
Where the contributions are not expected to be settled wholly within twelve months, the liability is measured at the present value of the contributions payable using a suitable discount rate. The unwinding of the discount is recognised as a finance cost in profit or loss in the period in which it arises.
Interest income is recognised in profit or loss using the effective interest method.
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Provisions for liabilities
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Provisions are made where an event has taken place that gives the Company a legal or constructive obligation that probably requires settlement by a transfer of economic benefit, and a reliable estimate can be made of the amount of the obligation.
Provisions are charged as an expense to profit or loss in the year that the Company becomes aware of the obligation, and are measured at the best estimate at the Statement of financial position date of the expenditure required to settle the obligation, taking into account relevant risks and uncertainties.
When payments are eventually made, they are charged to the provision carried in the Statement of financial position.
Page 6
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H B SANDS HOLDINGS LIMITED
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 DECEMBER 2019
2.
Accounting policies (continued)
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Current and deferred taxation
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The tax expense for the year comprises current and deferred tax. Tax is recognised in profit or loss except that a charge attributable to an item of income and expense recognised as other comprehensive income or to an item recognised directly in equity is also recognised in other comprehensive income or directly in equity respectively.
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 income.
Deferred tax balances are recognised in respect of all timing differences that have originated but not reversed by the statement of financial position date, except that:
∙
The recognition of deferred tax assets is limited to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits; and
∙
Any deferred tax balances are reversed if and when all conditions for retaining associated tax allowances have been met.
Deferred tax balances are not recognised in respect of permanent differences except in respect of business combinations, when deferred tax is recognised on the differences between the fair values of assets acquired and the future tax deductions available for them and the differences between the fair values of liabilities acquired and the amount that will be assessed for tax. Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the reporting date.
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The average monthly number of employees, including directors, during the year was
1
(2018 -
1
)
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Page 7
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H B SANDS HOLDINGS LIMITED
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 DECEMBER 2019
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Charge for the year on owned assets
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Page 8
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H B SANDS HOLDINGS LIMITED
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 DECEMBER 2019
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Freehold investment property
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The 2019 valuations were made by the director, on an open market value for existing use basis.
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If the Investment properties had been accounted for under the historic cost accounting rules, the properties would have been measured as follows:
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Prepayments and accrued income
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Page 9
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H B SANDS HOLDINGS LIMITED
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 DECEMBER 2019
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Creditors: Amounts falling due within one year
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Other taxation and social security
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Accruals and deferred income
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Charged to profit or loss
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The deferred tax asset is made up as follows:
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Fixed asset timing differences
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Revaluation of investment properties
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Page 10
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H B SANDS HOLDINGS LIMITED
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 DECEMBER 2019
The group operates two pension schemes, which are multi-employer schemes, with some of the participating employees and companies operating outside of this group. The assets of these schemes are held separately from those of the company in independently administered funds.
a) Directors scheme:
This is a multi employer money purchase scheme for certain directors. Some of the participating companies operate outside of the group. Triennial actuarial valuations are undertaken in order to determine the contributions which would be required to fund target benefits. However the rules of the scheme limit the liability in respect of any member to whatever may be secured by contribution credits accrued to each individual member. The employers are not committed to pay the contribution rate disclosed by the actuarial valuation.
The pension contributions paid or accrued to this scheme during the year were £Nil (2018: £Nil).
b) Employees scheme:
This is a multi-employer scheme, some of the participating companies operate outside of this group. Prior to 1 July 2001, this scheme operated as a defined benefit arrangement for certain employees and certain directors. With effect from 1 July 2001, the retirement benefit section was closed to all new members and a new money purchase section was added to the existing trust. All members existing benefits were made deferred, based upon salary and service at 1 July 2001, and all future benefits now accrue within the money purchase section. No additional final salary benefits are accruing. The remaining liabilities in respect of the defined benefit scheme are for preserved pension for previous leavers and preserved pensions for those members yet to transfer their accrued entitlements.
The participating companies gave an undertaking to certain employees close to retirement that their pensions under the money purchase section would be no worse than that which they would have received if the defined benefit section had continued. The exact nature of the terms of these guarantees is unclear but have been included in the valuations provided by the actuary as being liabilities of the scheme.
The actuary has recommended that collectively the participating employers make contributions as follows:
£168,920 for the year commencing 1 January 2018. £173,566 per annum from 1 January 2019, increasing at 3.00% per annum with the first increase being applied on 1 January 2020, for a period of 7 years and 10 months from 1 January 2020 to 31 October 2027.
As the scheme is a multi-employer scheme, with certain participating companies outside of the group, the directors consider that the company is unable to identify its share of the underlying assets and liabilities on a consistent and reasonable basis. In accordance with FRS 102 the scheme is therefore accounted for as if it is a defined contribution scheme.
The latest actuarial valuation states that as at 31 December 2017 the assets of the scheme were valued at £2,583,000, the present value of the schemes liabilities were £4,181,000 and the overall deficit was £1,598,000.
Under an agreement with the other participating employers H B Sands Holdings Limited is obligated to fund fifty percent of the scheme liabilities and therefore contributions.
The share of contributions paid to the scheme by the company in the year amounted to £86,783 (2018: £84,460).
Page 11
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H B SANDS HOLDINGS LIMITED
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 DECEMBER 2019
10.
Pension commitments (continued)
The share of the net present value of the net liabilities of the scheme disclosed within the Statement of Financial Position at 30 December 2019 amounted to £680,641 (2018: £742,124).
The unwinding of the discount of the net present value of the net liabilities is shown within other finance costs in the Statement of Income and Retained Earnings and amounted to a debit of £25,300 (2018: credit of £18,227).
Given the current Coronavirus and global economic situation, post year end there has been a reduction in interest rates and investment values which will have a significant impact on the pension liability shown within the financial statements. The directors believe that this is a short term fluctuation which will recover over the term of the pension liability period. The next actuarial valuation at 31 December 2020 will be reflected in the financial statements in due course.
The company is controlled by A B Sands by virtue of the fact that he controls the majority of the ordinary shares in the ultimate holding company, Pedham Estates Limited.
Page 12
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