Company Registration No. 05158255 (England and Wales)
Redington Estates Limited
Annual report and unaudited financial statements
For the year ended 30 September 2020
Pages for filing with registrar
REDINGTON ESTATES LIMITED
Redington Estates Limited
CONTENTS
Page
Balance sheet
1 - 2
Notes to the financial statements
3 - 8
REDINGTON ESTATES LIMITED
Redington Estates Limited
BALANCE SHEET
AS AT
30 SEPTEMBER 2020
30 September 2020
- 1 -
2020
2019
Notes
£
£
£
£
Fixed assets
Investment properties
3
27,500,000
21,800,000
Investments
4
78,381
78,382
27,578,381
21,878,382
Current assets
Debtors
5
2,264,680
2,576,462
Cash at bank and in hand
1,023,317
707,579
3,287,997
3,284,041
Creditors: amounts falling due within one year
6
(750,726)
(789,674)
Net current assets
2,537,271
2,494,367
Total assets less current liabilities
30,115,652
24,372,749
Creditors: amounts falling due after more than one year
7
(12,445,790)
(12,630,310)
Provisions for liabilities
(2,544,500)
(1,223,199)
Net assets
15,125,362
10,519,240
Capital and reserves
Called up share capital
8
300
300
Profit and loss reserves
12
15,125,062
10,518,940
Total equity
15,125,362
10,519,240
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 September 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.
REDINGTON ESTATES LIMITED
Redington Estates Limited
BALANCE SHEET (CONTINUED)
AS AT
30 SEPTEMBER 2020
30 September 2020
- 2 -
The financial statements were approved by the board of directors and authorised for issue on 28 June 2021 and are signed on its behalf by:
H M Soning
Director
Company Registration No. 05158255
REDINGTON ESTATES LIMITED
Redington Estates Limited
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2020
- 3 -
1
Accounting policies
Company information
Redington Estates Limited is a
private
company
limited by shares
incorporated in England and Wales.
The registered office is
55 Loudoun Road, St John's Wood, London, NW8 0DL.
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 amounts receivable for rent net of VAT.
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.
The surplus or deficit on revaluation is recognised in profit or loss.
Where fair value cannot be achieved without undue cost or effort, investment property is accounted for as tangible fixed assets.
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.
1.5
Cash and cash equivalents
Cash at bank and in hand
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.
REDINGTON ESTATES LIMITED
Redington Estates Limited
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2020
1
Accounting policies
(Continued)
- 4 -
Fair value measurement of financial instruments
Derivatives, including interest rate swaps and forward foreign exchange contracts,
are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are
s
ubsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in profit or loss in finance costs or finance income as appropriate, unless hedge accounting is applied and the hedge is a cash flow hedge.
Debt instruments that do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured at fair value through profit or loss. Debt instruments may be designated as
being measured at
fair value though profit or loss to eliminate or reduce an accounting mismatch or if the instruments are measured and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy.
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.
1.7
Equity instruments
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.
1.8
Taxation
The tax expense represents the sum of the tax currently payable and deferred tax.
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.
REDINGTON ESTATES LIMITED
Redington Estates Limited
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2020
1
Accounting policies
(Continued)
- 5 -
Deferred tax
Deferred taxation is provided in full in respect of taxation deferred by timing differences between the treatment of certain items for taxation and accounting purposes. The deferred tax balance has been discounted.
1.9
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.
1.10
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
1.11
Foreign exchange
Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation are included in the profit and loss account for the period.
1.12
The financial statements present information about the company as an individual undertaking and not about its group. The company and its subsidiary undertakings comprise a small sized group. The company has therefore taken advantage of the exemption provided by Section 399 of the Companies Act 2006 not to prepare group accounts.
2
Employees
The average monthly number of persons (including directors) employed by the company during the year was 3
(2019: 3).
3
Investment property
2020
£
Fair value
At 1 October 2019
21,800,000
Revaluations
5,700,000
At 30 September 2020
27,500,000
The valuation of the investment property was made as at 30 September 20
20
by the directors of the company on an open market basis. No depreciation is provided in respect of the property. On an historical basis the property would have been included at an original cost of £10,477,137 (201
9
: £10,477,137).
REDINGTON ESTATES LIMITED
Redington Estates Limited
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2020
- 6 -
4
Fixed asset investments
2020
2019
£
£
Investments
78,381
78,382
Movements in fixed asset investments
Shares in Group Undertaking
£
Cost or valuation
At 1 October 2019
78,382
Disposals
(1)
At 30 September 2020
78,381
Carrying amount
At 30 September 2020
78,381
At 30 September 2019
78,382
5
Debtors
2020
2019
Amounts falling due within one year:
£
£
Trade debtors
309,534
Amounts owed by group undertakings
700,824
680,961
Amounts owed by related parties
1,139,337
1,000,000
Other debtors
424,519
585,967
2,264,680
2,576,462
6
Creditors: amounts falling due within one year
2020
2019
£
£
Bank loans and overdrafts
184,520
184,520
Corporation tax
(21,822)
15,288
Other taxation and social security
144,361
105,759
Other creditors
443,667
484,107
750,726
789,674
REDINGTON ESTATES LIMITED
Redington Estates Limited
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2020
- 7 -
7
Creditors: amounts falling due after more than one year
2020
2019
£
£
Bank loans and overdrafts
12,445,790
12,630,310
The long-term loans are secured by fixed charges
amounting to £
12,630,310
(201
9
: £
12,814,830
).
8
Called up share capital
2020
2019
£
£
Ordinary share capital
Issued and fully paid
300 Ordinary shares of £1 each
300
300
300
300
9
Transactions with directors
As at 30 September 20
20
, an amount of £
550
(201
9
: £
100,450 was
owed
by
a director) was owed
to
a director.
The maximum amount by which the directors loan account was in deficit during the year was £17,898.
REDINGTON ESTATES LIMITED
Redington Estates Limited
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2020
- 8 -
10
Related party transactions
Included in debtors:
Amounts due from related undertakings:
Balance as at
Balance as at
01.10.2019
Movements
Write-off
30.09.2020
£
£
£
Newfresh Limited
670,744
(75,000)
-
595,744
Less: provision
(670,744)
75,000
-
(595,744)
James Andrew International Limited
1,715,000
313,337
-
2,028,337
Less: provision
(715,000)
(299,000)
-
(1,014,000)
SmartEd-iTORS Limited
496,000
-
(371,000)
125,000
Less: provision
(496,000)
496,000
-
-
1,000,000
510,337
(371,000)
1,139,337
The company has taken advantage of the exemption available in accordance with FRS 102 Section 33 'Related party disclosures' not to disclose transactions between two or more members of a group, as the company is a wholly owned subsidiary undertaking of the group to which it is party to the transactions.
During the year, management charges of £30,000 (201
9
: £30,000) were payable to James Andrew International Limited.
Included in other debtors are accrued interest balances due from related parties totalling £390,358 (2019: £416,568).
As at 30 September 20
20
, an amount of £
550
(201
9
: £
100,450 owed by a director
) was owed
to
a director.
One of the directors had a material interest in SmartEd-iTORS Limited and has a material interest in the other above entities.