Registration number:
Handston Properties Limited
for the Year Ended 31 December 2017
Handston Properties Limited
Contents
Balance Sheet |
|
Notes to the Financial Statements |
Handston Properties Limited
(Registration number: 3409778)
Balance Sheet as at 31 December 2017
Note |
2017 |
2016 |
|
Fixed assets |
|||
Investment property |
- |
|
|
Current assets |
|||
Debtors |
|
|
|
Cash at bank and in hand |
- |
|
|
|
|
||
Creditors: Amounts falling due within one year |
( |
( |
|
Net current assets/(liabilities) |
|
( |
|
Total assets less current liabilities |
|
|
|
Creditors: Amounts falling due after more than one year |
- |
( |
|
Net assets |
|
|
|
Capital and reserves |
|||
Called up share capital |
|
|
|
Profit and loss account |
- |
|
|
Total equity |
|
|
For the financial year ending 31 December 2017 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.
Director's responsibilities:
• |
|
• |
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
.........................................
GC Hands
Director
Page 1 |
Handston Properties Limited
Notes to the Financial Statements for the Year Ended 31 December 2017
General information |
The company is a private company limited by share capital, incorporated in England.
The address of its registered office is:
England
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.
Going concern
The financial statements have been prepared on a going concern basis.
Revenue recognition
Turnover comprises the fair value of the consideration received or receivable for the letting of investment properties, 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 and after eliminating sales within the company.
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 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.
Page 2 |
Handston Properties Limited
Notes to the Financial Statements for the Year Ended 31 December 2017
Deferred tax is recognised in respect of all timing differences at the reporting date, except as otherwise indicated.
Deferred tax assets are only 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.
If and when all conditions for retaining tax allowances for the cost of a fixed asset have been met, the deferred tax is reversed. Deferred tax is calculated using the tax rates and laws that that have been enacted or substantively enacted by the reporting date that are expected to apply to the reversal of the timing difference.
Depreciation
Asset class |
Depreciation method and rate |
Plant |
25% pa. straight line basis |
Commercial motor vehicles |
25% pa. straight line basis |
Investment property
provided on these gains at the rate expected to apply when the property is sold.
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.
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.
Page 3 |
Handston Properties Limited
Notes to the Financial Statements for the Year Ended 31 December 2017
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.
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.
Investment properties |
2017 |
|
At 1 January |
|
Disposals |
( |
At 31 December |
- |
The director will normally apply HMRC capital indexation allowance to the period since the last independent valuation or cost if later.
However with a combination of knowledge of current market conditions and the statement made on 6 December 2016 by the Bank of England the director has decided not to apply this enhancement subsequent to independent valuation or cost.
The statement by the Bank of England is referred to below:
"The Bank of England has warned of a risk of further losses in the UK's commercial real estate sector. A risk of further adjustment in the sector has been highlighted by the Bank's Financial Policy Committee and this could create knock-on risks for the financial system. The risk to the broader financial system could be exacerbated by the reliance on inflows of foreign capital, while the Bank says valuations appear to be 'stretched' for some parts of the sector. Foreign investors are also vulnerable to exchange rate fluctuations. Following the Brexit vote, the Bank says there was a sharp decline in commercial property activity, with a 27% drop in third quarter transactions compared to the previous year. Open-ended funds have been put under pressure as a result of the slowdown. The Bank says the ability to access credit could be weakened by another financial crisis if the value of property used as collateral declines."
However there has been a grant of planning permission on land at Forest Business Centre, Fawley, Hampshire. Accordingly the value of this property is increased by £250,000 and thereby reflects its current fair value.
Valuation of all properties was carried out by Cowling & West, Chartered Surveyors, and dated 10 January 2010
Debtors |
Note |
2017 |
2016 |
|
Trade debtors |
- |
|
|
Amounts owed by group undertakings and undertakings in which the company has a participating interest |
|
- |
|
|
|
Page 4 |
Handston Properties Limited
Notes to the Financial Statements for the Year Ended 31 December 2017
Creditors |
Creditors: amounts falling due within one year
Note |
2017 |
2016 |
|
Due within one year |
|||
Bank loans and overdrafts |
|
|
|
Taxation and social security |
|
|
|
Accruals and deferred income |
- |
|
|
Other creditors |
|
- |
|
|
|
Creditors: amounts falling due after more than one year
Note |
2017 |
2016 |
|
Due after one year |
|||
Loans and borrowings |
- |
|
2017 |
2016 |
|
Due after more than five years |
||
After more than five years by instalments |
- |
|
- |
- |
Share capital |
Allotted, called up and fully paid shares
2017 |
2016 |
|||
No. |
£ |
No. |
£ |
|
|
|
200 |
|
200 |
Loans and borrowings |
2017 |
2016 |
|
Non-current loans and borrowings |
||
Bank borrowings |
- |
|
Page 5 |
Handston Properties Limited
Notes to the Financial Statements for the Year Ended 31 December 2017
2017 |
2016 |
|
Current loans and borrowings |
||
Bank borrowings |
- |
|
Bank overdrafts |
|
- |
|
|
Bank borrowings
The company freehold investment properties are pledged as security for all bank borrowing. |
Included in the loans and borrowings are the following amounts due after more than five years:
Bank loans and overdrafts after five years
Repayable by monthly instalments until 2 February 2025 at base rate plus 1.5%
Dividends |
Final dividends paid
2017 |
2016 |
|||
Final dividend of £Nil per each |
- |
- |
||
Interim dividends paid
2017 |
2016 |
|||
Interim dividend of £
|
|
- |
||
Related party transactions |
Summary of transactions with entities with joint control or significant interest
Loans were made interest free and repayable upon demand
Loans to related parties
2017 |
Parent |
Advanced |
|
Page 6 |
Handston Properties Limited
Notes to the Financial Statements for the Year Ended 31 December 2017
Terms of loans to related parties
Loans from related parties
2016 |
Entities with joint control or significant influence |
At start of period |
|
Advanced |
|
Repaid |
( |
At end of period |
- |
Terms of loans from related parties
Parent and ultimate parent undertaking |
The company's immediate parent is
Page 7 |