Company registration number 03597131 (England and Wales)
VERNON INVESTMENTS LIMITED
UNAUDITED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2022
PAGES FOR FILING WITH REGISTRAR
VERNON INVESTMENTS LIMITED
CONTENTS
Page
Balance sheet
1
Notes to the financial statements
2 - 5
VERNON INVESTMENTS LIMITED
BALANCE SHEET
AS AT 31 MARCH 2022
31 March 2022
- 1 -
2022
2021
Notes
£
£
£
£
Fixed assets
Tangible assets
4
7,945
9,418
Investment properties
5
5,947,363
8,197,363
5,955,308
8,206,781
Current assets
Debtors
6
187,516
132,897
Cash at bank and in hand
236,316
12,899
423,832
145,796
Creditors: amounts falling due within one year
7
(799,140)
(742,995)
Net current liabilities
(375,308)
(597,199)
Total assets less current liabilities
5,580,000
7,609,582
Creditors: amounts falling due after more than one year
8
(4,006,857)
(5,343,478)
Provisions for liabilities
(136,429)
(355,851)
Net assets
1,436,714
1,910,253
Capital and reserves
Called up share capital
100
100
Revaluation reserve
9
880,948
2,225,706
Profit and loss reserves
555,666
(315,553)
Total equity
1,436,714
1,910,253
The director of the company has elected not to include a copy of the profit and loss account within the financial statements.
true
For the financial year ended 31 March 2022 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.
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.
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 31 March 2023 and are signed on its behalf by:
S Turner-Dauncey
Director
Company Registration No. 03597131
VERNON INVESTMENTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2022
- 2 -
1
Accounting policies
Company information
Vernon Investments Limited is a
private
company
limited by shares
incorporated in
England and Wales
.
The registered office is
24 Victoria Park, Dover, Kent, CT16 1QS.
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.
1.2
Turnover
Turnover represents rental income from investment properties, which is recognised on an accruals basis, with any outstanding rental income at the year end included within trade debtors. Any rent received which relates to future periods is included as deferred income.
1.3
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:
Fixtures, fittings & equipment
15% net book value
Motor vehicles
25% net book value
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
.
1.4
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.
1.5
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.
VERNON INVESTMENTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2022
1
Accounting policies
(Continued)
- 3 -
1.6
Employee benefits
The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or
fixed assets
.
The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.
Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.
2
Judgements and key sources of estimation uncertainty
In the application of the company’s accounting policies, the director is required to make judgements, estimates and assumptions about the carrying amount 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 that are considered to be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.
3
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2022
2021
Number
Number
Total
1
1
4
Tangible fixed assets
Fixtures, fittings & equipment
Motor vehicles
Total
£
£
£
Cost
At 1 April 2021 and 31 March 2022
79,260
1,500
80,760
Depreciation and impairment
At 1 April 2021
69,913
1,429
71,342
Depreciation charged in the year
1,402
71
1,473
At 31 March 2022
71,315
1,500
72,815
Carrying amount
At 31 March 2022
7,945
7,945
At 31 March 2021
9,347
71
9,418
VERNON INVESTMENTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2022
- 4 -
5
Investment property
2022
£
Fair value
At 1 April 2021
8,197,363
Disposals
(2,270,240)
Revaluations
20,240
At 31 March 2022
5,947,363
Investment property comprises a number of rental properties. The fair value of the investment properties has been arrived at on the basis of a valuation carried out at 31 March 2022 by the Directors. The valuation was made on an open market value basis by reference to market evidence of transaction prices for similar properties. The historic cost of the properties is £4,950,229 (2021 £5,615,808).
6
Debtors
2022
2021
Amounts falling due within one year:
£
£
Trade debtors
22,515
36,045
Other debtors
165,001
96,852
187,516
132,897
7
Creditors: amounts falling due within one year
2022
2021
£
£
Bank loans and overdrafts
32,723
Trade creditors
6,746
11,716
Other taxation and social security
209,077
23,756
Other creditors
583,317
674,800
799,140
742,995
8
Creditors: amounts falling due after more than one year
2022
2021
£
£
Bank loans and overdrafts
4,006,857
5,343,478
The mortgages above are secured by charges over the investment properties.
VERNON INVESTMENTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2022
- 5 -
9
Revaluation reserve
2022
2021
£
£
At the beginning of the year
2,225,706
2,198,748
Transfer to retained earnings
(1,344,758)
26,958
At the end of the year
880,948
2,225,706
11
Directors' transactions
There is a balance due from the director, S Turner-Dauncey, at the year end of £124,529 (2021 - £90,434). The balance is interest free and is repayable on demand.