Sterling Credit Guarantee Company Limited is a private company limited by shares incorporated in England and Wales. The registered office is Number One, Vicarage Lane, London, England, E15 4HF.
The financial statements are prepared under the historical cost convention.
The company made a profit of £Nil (2015: Loss of £4) during the year ended 31 December 2016 and at that date its liabilities exceeded its assets by £92,128 (2015: £92,128). The company is, therefore, dependent on the continued financial support of the holding company.
The financial statements have been prepared on a going concern basis which assumes that the company will continue in operational existence for the foreseeable future. The validity of this assumption depends upon the continued financial support, to which the holding company is not legally committed but which the directors believe will be provided by the holding company.
On this basis, the directors believe it is appropriate for the financial statements to be prepared on a going concern basis.
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.
These financial statements for the year ended 31 December 2016 are the first financial statements of Sterling Credit Guarantee Company Limited prepared in accordance with FRS 102, The Financial Reporting Standard applicable in the UK and Republic of Ireland. The date of transition to FRS 102 was 1 January 2015. The reported financial position and financial performance for the previous period are not affected by the transition to FRS 102.
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.
An associate is an entity, being neither a subsidiary nor a joint venture, in which the company holds a long-term interest and where the company has significant influence. The company considers that it has significant influence where it has the power to participate in the financial and operating decisions of the associate.
Entities in which the company has a long term interest and shares control under a contractual arrangement are classified as jointly controlled entities .
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.
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, 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.
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.
As at 31 December 2016, the company held 375 Ordinary Shares of £0.01 each in the following companies, all registered in England and Wales. This represents 3.75% of the issued share capital of each company.
Enigma II Marine Limited
Enigma Recoveries Limited
Shantaram Consolidation Limited
C J Emson is a director or member of the following companies and partnerships:
Sterling Corporate Services Limited
The Sterling Credit Group Limited
Sterling Industrial Finance Limited
Robert Fraser & Partners LLP
As at 31 December 2016, the company owed Sterling Corporate Services Limited the sum of £200,125 (2015: £200,125) and this is included in trade creditors.
Other debtors includes amounts owed to the following related parties:
The Sterling Credit Group Limited - £4,980 (2015: £4,980)
Sterling Industrial Finance Limited - £20,371 (2015: £20,371)
Robert Fraser & Partners LLP - £41,000 (2015: £41,000)
The immediate parent undertaking is Robert Fraser Asset Management Limited and it's ultimate parent undertaking is Emson and Dudley Limited, Both companies are registered in England and Wales.
The accounts for the immediate and ultimate holding companies are available from 1 Vicarage Lane, Stratford, London E15 4HF and Companies House.