Company Registration No. 05210903 (England and Wales)
D & J SIMONS & ARTS LIMITED
FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 OCTOBER 2019
PAGES FOR FILING WITH REGISTRAR
D & J SIMONS & ARTS LIMITED
CONTENTS
Page
Balance sheet
1
Notes to the financial statements
2 - 7
D & J SIMONS & ARTS LIMITED
BALANCE SHEET
AS AT
31 OCTOBER 2019
31 October 2019
- 1 -
2019
2018
Notes
£
£
£
£
Fixed assets
Tangible assets
3
2,038
9,712
Investment properties
4
50,111,742
24,056,346
Investments
5
110
110
50,113,890
24,066,168
Current assets
Debtors
7
98,445
11,166
Cash at bank and in hand
35,518
65,037
133,963
76,203
Creditors: amounts falling due within one year
8
(48,111,051)
(22,794,103)
Net current liabilities
(47,977,088)
(22,717,900)
Total assets less current liabilities
2,136,802
1,348,268
Provisions for liabilities
Deferred tax liability
9
833,498
747,842
(833,498)
(747,842)
Net assets
1,303,304
600,426
Capital and reserves
Called up share capital
10
480
480
Investment property reserve
1,397,887
757,502
Profit and loss reserves
(95,063)
(157,556)
Total equity
1,303,304
600,426
The directors of the company have elected not to include a copy of the profit and loss account within the financial statements.
true
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 17 November 2020 and are signed on its behalf by:
H I Simons
Director
Company Registration No. 05210903
D & J SIMONS & ARTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 OCTOBER 2019
- 2 -
1
Accounting policies
Company information
D & J Simons & Arts Limited is a
private
company
limited by shares
incorporated in England and Wales.
The registered office is
124-150 Hackney Road, London, E2 7QS.
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 investment properties. The principal accounting policies adopted are set out below.
1.2
Going concern
As stated in note
true
12
, the directors have considered the effect of the Covid-19 outbreak
, which has not caused
a significant disruption to the company’s business
. The directors
are confident that the
company can continue as a going concern for a period of at least twelve months from the date of
approval of these financial statements. The directors have a reasonable expectation that the
company has adequate resources to continue in operation for the foreseeable future.
1.3
Turnover
Turnover is recognised at the fair value of the
income
received or receivable
in respect of the company's investment activities. Turnover
is shown net of VAT.
Rent receivable is recognised on an accruals basis. Rental income is stated net of the cost of any lease incentives given, including rent-free periods, which are spread on straight-line basis over the term of the relevant lease.
1.4
Tangible fixed assets
Tangible fixed assets
are measured at cost, net of depreciation and any impairment losses.
Depreciation is recognised so as to write off the cost of assets less their residual values over their useful lives on the following bases:
Fixtures, fittings & equipment
25% straight line
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
.
1.5
Investment properties
Investment properties, which are properties held to earn rentals and/or for capital appreciation, are initially recognised at cost, which includes the purchase cost and any directly attributable expenditure. Subsequently, except for investment properties in the course of construction, investment properties are measured at fair value at the reporting end date. The surplus or deficit on revaluation is recognised in profit or loss and is subsequently transferred within equity to the investment property reserve together with the associated deferred tax.
Where the fair value of investment properties in the course of construction cannot be determined reliably, they are stated at the aggregate of: their predevelopment values, this company’s share of the construction costs to date; and an estimate of this company’s accumulated interest due to date on borrowings used to fund the development.
D & J SIMONS & ARTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2019
1
Accounting policies
(Continued)
- 3 -
1.6
Fixed asset investments
Interests in subsidiaries
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.
1.7
Impairment of fixed assets
At each reporting
period
end date, the
company
reviews the carrying amounts of its tangible and intangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any).
An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.
1.8
Cash at bank and in hand
Cash and cash equivalents
are basic financial assets
and
include cash in hand
and
deposits held at call with banks
.
1.9
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.
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.
Impairment of financial assets
Financial assets
are assessed for indicators of impairment at each reporting end date.
Any impairment loss is recognised in profit or loss.
Classification of financial liabilities
Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into.
Basic financial liabilities
Basic financial liabilities, including creditors and loans from
fellow group companies, 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 receipts 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.
1.10
Equity instruments
Equity instruments issued by the company are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.
1.11
Taxation
The tax expense represents the sum of the tax currently payable and deferred tax.
D & J SIMONS & ARTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2019
1
Accounting policies
(Continued)
- 4 -
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.
Deferred tax
Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are 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. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.
1.12
Employee benefits
The costs of short-term employee benefits are recognised as a liability and an expense.
The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.
1.13
Investment property reserve
The investment property reserve comprises fair value uplift on the company's investment properties net of the associated deferred tax. Any movement in the fair value of the investment properties and/or the deferred tax associated with it during the year is transferred from the profit and loss account into this reserve. The investment property reserve is non-distributable.
2
Employees
The average monthly number of persons (including directors) employed by the company during the year was 0 (2018 - 2
).
3
Tangible fixed assets
Fixtures, fittings & equipment
£
Cost
At 1 November 2018 and 31 October 2019
30,696
Depreciation and impairment
At 1 November 2018
20,984
Depreciation charged in the year
7,674
At 31 October 2019
28,658
Carrying amount
At 31 October 2019
2,038
At 31 October 2018
9,712
D & J SIMONS & ARTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2019
- 5 -
4
Investment properties
2019
£
At 1 November 2018
24,056,346
Additions
25,329,355
Revaluations
726,041
At 31 October 2019
50,111,742
Included within the total above are investment properties at fair value totalling £3,404,140 (2018: £2,678,099) that have been arrived at on the basis of a valuation carried out at the year-end by the directors. The valuation was made on an open market value basis by reference to rental yields.
The remaining investment properties are (with adjacent properties) now part of a major rebuilding project. At this stage in the development it is not possible to determine the fair value of the site, so the properties have been included in the financial statements at the aggregate of: their predevelopment values, this company’s share of the construction costs to date; and an estimate of this company’s accumulated interest due to date on borrowings used to fund the development.
If investment properties were stated on an historical cost basis rather than a fair value basis, the amounts would have been included as follows:
2019
2018
£
£
Cost
48,470,911
23,141,557
Accumulated depreciation
-
-
Carrying amount
48,470,911
23,141,557
5
Fixed asset investments
2019
2018
£
£
Investments
110
110
Movements in fixed asset investments
Shares in group undertakings
£
Cost or valuation
At 1 November 2018 & 31 October 2019
110
Carrying amount
At 31 October 2019
110
At 31 October 2018
110
D & J SIMONS & ARTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2019
- 6 -
6
Subsidiaries
Details of the company's subsidiaries at 31 October 2019 are as follows:
Name of undertaking
Registered
Nature of business
Class of
% Held
office key
shares held
Direct
Indirect
Vindex Properties (2) Limited
1
Property investment (as nominee)
Ordinary
55.00
0
Vindex Properties Limited
1
Property investment (as nominee)
Ordinary
55.00
0
Registered Office addresses:
1
124-150 Hackney Road, London, E2 7QS
7
Debtors
2019
2018
Amounts falling due within one year:
£
£
Trade debtors
56,283
-
Other debtors
312
886
Prepayments and accrued income
41,850
10,280
98,445
11,166
8
Creditors: amounts falling due within one year
2019
2018
£
£
Amounts owed to group undertakings
6,793,121
6,802,031
Other taxation and social security
-
6,670
Other creditors
41,268,358
15,967,328
Accruals and deferred income
49,572
18,074
48,111,051
22,794,103
9
Deferred taxation
Deferred tax assets and liabilities are offset where the company has a legally enforceable right to do so. The following is the analysis of the deferred tax balances (after offset) for financial reporting purposes:
Liabilities
Liabilities
2019
2018
Balances:
£
£
Investment properties
833,498
747,842
D & J SIMONS & ARTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2019
9
Deferred taxation
(Continued)
- 7 -
2019
Movements in the year:
£
Liability at 1 November 2018
747,842
Charge to profit or loss
85,656
Liability at 31 October 2019
833,498
10
Called up share capital
2019
2018
£
£
Ordinary share capital
Issued and fully paid
480 ordinary shares of £1 each
480
480
11
Financial commitments, guarantees and contingent liabilities
A major rebuilding project which is partly on land held by the company as beneficial owners, is being funded through a loan facility and the company has guaranteed all amounts under that facility. At 31 October 2019 the total amounts drawn down were £82,610,664 (2018:£39,838,191). The loans are secured on the property development itself and by a fixed charge over the company's investment in its subsidiary which is acting as the company’s agent for the development.
12
Events after the reporting date
The directors have considered the effect of the Covid-19 outbreak, that has been spreading throughout the world in 2020, on the company’s activities. This outbreak has not caused a significant disruption to the company’s overall business.
13
Parent company
D & J Simons & Sons Limited, a company incorporated in England and Wales whose registered office is 124-150 Hackney Road, London E2 7QS, is the parent undertaking of the smallest group that prepares group accounts and of which the company is a member.
14
Audit report information
As the
profit and loss account
has been omitted from the filing copy of the financial statements the following information in relation to the audit report on the statutory financial statements is provided in accordance with s444(5B) of the Companies Act 2006
:
The auditor's report was unqualified.
The senior statutory auditor was David Selwyn.
The auditor was HW Fisher.
2019-10-31
2018-11-01
false
25 November 2020
CCH Software
CCH Accounts Production 2020.200
No description of principal activity
This audit opinion is unqualified
H I Simons
D J Simons
A J Rabbow
A B Simons
R M Simons
A B Simons
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