Company Registration No. 05383046 (England and Wales)
SGCO 46 LIMITED
UNAUDITED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2017
PAGES FOR FILING WITH REGISTRAR
SGCO 46 LIMITED
COMPANY INFORMATION
Director
M S Butterworth
Secretary
A Imiolek
Company number
05383046
Registered office
145 Lapwing Lane
Didsbury
Manchester
M20 6US
Accountants
M J Goldman (Chartered Accountants)
Hollinwood Business Centre
Albert Street
Oldham
Lancashire
OL8 3QL
SGCO 46 LIMITED
CONTENTS
Page
Balance sheet
1 - 2
Notes to the financial statements
3 - 7
SGCO 46 LIMITED
BALANCE SHEET
AS AT
31 MARCH 2017
31 March 2017
- 1 -
2017
2016
Notes
£
£
£
£
Fixed assets
Tangible assets
2
5,477
2,802
Investment properties
3
1,495,000
1,495,000
1,500,477
1,497,802
Current assets
Debtors
4
37,011
11,788
Creditors: amounts falling due within one year
5
(197,317)
(213,670)
Net current liabilities
(160,306)
(201,882)
Total assets less current liabilities
1,340,171
1,295,920
Creditors: amounts falling due after more than one year
6
(945,685)
(933,581)
Provisions for liabilities
(59,131)
(62,243)
Net assets
335,355
300,096
Capital and reserves
Called up share capital
7
1
1
Non-distributable reserve
252,082
248,970
Profit and loss reserves
83,272
51,125
Total equity
335,355
300,096
SGCO 46 LIMITED
BALANCE SHEET (CONTINUED)
AS AT
31 MARCH 2017
31 March 2017
- 2 -
The director 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 31 March 2017 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.
T
he director acknowledges his responsibilities for complying with the requirements of the Act with respect to accounting records and the preparation of financial statements.
T
he member has 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 and signed by the director and authorised for issue on 22 December 2017
M S Butterworth
Director
Company Registration No. 05383046
SGCO 46 LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2017
- 3 -
1
Accounting policies
Company information
SGCO 46 Limited is a
private
company
limited by shares
incorporated in England and Wales.
The registered office is
145 Lapwing Lane, Didsbury, Manchester, M20 6US.
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 have been prepared under the historical cost convention, except for modification to a fair value basis where specified in the accounting policies below.
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 March 2017
are the
first
financial statements of SGCO 46 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 April 2015. An explanation of how transition to FRS 102 has affected the reported financial position and financial performance is given in note 9.
1.2
Turnover
Turnover is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business
, and
is shown net of VAT and other sales related taxes
.
The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.
Revenue in respect to rent from investment properties is recognised on a straight-line basis over the term of the associated lease.
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:
Plant and machinery
20% straight line
Fixtures, fittings & equipment
20% 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
.
1.4
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.
The surplus or deficit on revaluation is recognised in the profit and loss account.
SGCO 46 LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2017
1
Accounting policies
(Continued)
- 4 -
1.5
Impairment of fixed assets
At each reporting
period
end date, the
company
reviews the carrying amounts of its tangible
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). Where it is not possible to estimate the recoverable amount of an individual asset, the company
estimates the recoverable amount of the cash-generating unit to which the asset belongs.
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.
Basic financial assets, which include debtors and cash, together with basic financial liabilities, including creditors, are initially recognised at transaction cost and not amortised as they are either receivable or payable within one year.
Creditors payable after one year constitutes a commercial business loan with a market rate of interest being applied. This is recognised in full.
1.7
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.
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.
The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset when the
company
has a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.
SGCO 46 LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2017
- 5 -
2
Tangible fixed assets
Plant and machinery etc
£
Cost
At 1 April 2016
4,152
Additions
3,886
At 31 March 2017
8,038
Depreciation and impairment
At 1 April 2016
1,350
Depreciation charged in the year
1,211
At 31 March 2017
2,561
Carrying amount
At 31 March 2017
5,477
At 31 March 2016
2,802
The company's bank loans were secured by charges against the company's investment properties. As at the 31 March 2017, the total value of secured loans was £951,738 (2016, £963,843).
3
Investment property
2017
£
Fair value
At 1 April 2016 and 31 March 2017
1,495,000
The valuations of investment properties were made on the 31 March 2017 by the directors, on an open market basis. No depreciation is provided in respect of these properties.
If investment properties were stated on a historical basis rather than a fair value basis, the properties would have been included at an original cost of £1,183,787.
4
Debtors
2017
2016
Amounts falling due within one year:
£
£
Trade debtors
528
557
Other debtors
36,483
11,231
37,011
11,788
SGCO 46 LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2017
- 6 -
5
Creditors: amounts falling due within one year
2017
2016
£
£
Bank loans and overdrafts
6,052
30,262
Trade creditors
188
912
Taxation and social security
7,457
2,348
Other creditors
183,620
180,148
197,317
213,670
6
Creditors: amounts falling due after more than one year
2017
2016
£
£
Bank loans and overdrafts
945,685
933,581
During the prior year, Tracekarn Limited (the company's parent company) entered into a new financing arrangement. Cross guarantees were also entered into between Tracekarn Limited, SCGO 46 Limited and Butterworths Developers Limited in respect of this facility.
7
Called up share capital
2017
2016
£
£
Ordinary share capital
Issued and fully paid
1 Ordinary share of £1 each
1
1
1
1
8
Related party transactions
Transactions with related parties
As at the 31 March 2017, Tracekarn Limited, the company's parent company, owed the company £27,673 (2016, creditor £1,479).
SGCO 46 LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2017
- 7 -
9
Reconciliations on adoption of FRS 102
Reconciliation of equity
1 April
31 March
2015
2016
Notes
£
£
Equity as reported under previous UK GAAP
109,458
362,339
Adjustments arising from transition to FRS 102:
Fair value movements
1
(13,243)
(62,243)
Equity reported under FRS 102
96,215
300,096
Reconciliation of profit for the financial period
2016
Notes
£
Profit as reported under previous UK GAAP
7,881
Adjustments arising from transition to FRS 102:
Fair value movements
1
196,000
Profit reported under FRS 102
203,881
Notes to reconciliations on adoption of FRS 102
1. Investment property
Prior to applying FRS 102 and in line with UK GAAP at the time, the company treated any revaluations on investment properties as an increase or decrease to the revaluation reserve
.
FRS 102 requires that any movement on investment property valuations are recognised as a pre-taxation item, on the face of the profit and loss account. The revalued amount in respect of these properties has therefore been transferred to the profit and loss account on transition to FRS 102.
In addition, prior to FRS 102, the company did not have to provide for deferred taxation in respect of investment properties carried at fair value. FRS 102 requires the recognition of deferred taxation on the difference between each property's fair value and its base cost for taxation purposes.
The date of the above to take effect is the date of transition, 1 March 2015.