Company Registration No. 08973575 (England and Wales)
Cygnus Estates Limited
Unaudited Financial Statements
For The Year Ended 30 April 2017
CYGNUS ESTATES LIMITED
Cygnus Estates Limited
COMPANY INFORMATION
Directors
Ms J E McGivern
Mr R W M Gleeson
Mr J B Sunley
Mr D K Crossland
Company number
08973575
Registered office
Unit 1 President Buildings
Saville Street East
Sheffield
South Yorkshire
S4 7UQ
Accountants
Garbutt & Elliott LLP
Arabesque House
Monks Cross Drive
York
YO32 9GW
CYGNUS ESTATES LIMITED
Cygnus Estates Limited
CONTENTS
Page
Balance sheet
1
Notes to the financial statements
2 - 5
CYGNUS ESTATES LIMITED
Cygnus Estates Limited
BALANCE SHEET
AS AT
30 APRIL 2017
30 April 2017
- 1 -
2017
2016
Notes
£
£
£
£
Current assets
Stocks
11,496,294
8,818,005
Debtors
3
1,347
9,391
Cash at bank and in hand
66,825
2,360
11,564,466
8,829,756
Creditors: amounts falling due within one year
4
(56,330)
(77,023)
Net current assets
11,508,136
8,752,733
Creditors: amounts falling due after more than one year
5
(11,866,929)
(8,754,632)
Net liabilities
(358,793)
(1,899)
Capital and reserves
Called up share capital
326
326
Profit and loss reserves
(359,119)
(2,225)
Total equity
(358,793)
(1,899)
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 April 2017 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.
T
he directors acknowledge their responsibilities for complying with the requirements of the Act 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 22 January 2018 and are signed on its behalf by:
Ms J E McGivern
Director
Company Registration No. 08973575
CYGNUS ESTATES LIMITED
Cygnus Estates Limited
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 APRIL 2017
- 2 -
1
Accounting policies
Company information
Cygnus Estates Limited is a
private
company
limited by shares
incorporated in England and Wales.
The registered office is
Unit 1 President Buildings, Saville Street East, Sheffield, South Yorkshire, S4 7UQ.
1.1
Accounting convention
These financial statements have been prepared in accordance with “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 £
1
.
The financial statements have been prepared under the historical cost convention, modified to include certain financial instruments at fair value. The principal accounting policies adopted are set out below.
These financial statements for the year ended 30 April 2017
are the
first
financial statements of Cygnus Estates 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 May 2015. The reported financial position and financial performance for the previous period are not affected by the transition to FRS 102.
1.2
Going concern
As at the year end the company has completed the development of a property and had begun looking at commercial options to realise the value of the property. However, as at the year end no income was derived from the property despite costs being incurred following completion of the development. The directors are confident that the company retains the support of its external financing providers, and accordingly as a
t the time of approving the financial statements
,
t
he directors have a reasonable expectation that the
company
has adequate resources to continue in operational existence for the foreseeable future. Thus
t
he directors continue to adopt the going concern basis of accounting in preparing the financial statements.
1.3
Stocks
Stocks represent work in progress of a development property, where the cost includes all directly attributable expenses of acquisition, planning, and construction, together with financing costs incurred throughout the life of the development. The carrying value of the development property is the lower of cost and net realisable value, with the latter representing estimated selling price less anticipated future costs to complete.
At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.
1.4
Cash at bank and in hand
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.
CYGNUS ESTATES LIMITED
Cygnus Estates Limited
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2017
1
Accounting policies
(Continued)
- 3 -
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.
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.
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, other than those
held
at
fair value through profit and loss
, are assessed for indicators of impairment at each reporting end date.
Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected.
If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.
If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.
Derecognition of financial assets
Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when
the company
transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.
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.
CYGNUS ESTATES LIMITED
Cygnus Estates Limited
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2017
1
Accounting policies
(Continued)
- 4 -
Basic financial liabilities
Basic financial liabilities, including creditors, bank loans
and
loans from
related
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
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.
Derecognition of financial liabilities
Financial liabilities are derecognised when the company’s contractual obligations
expire or are discharged or cancelled.
1.6
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.
2
Employees
The average monthly number of persons (including directors) employed by the company during the year was 4 (2016 - 4).
3
Debtors
2017
2016
Amounts falling due within one year:
£
£
Other debtors
1,347
9,391
4
Creditors: amounts falling due within one year
2017
2016
£
£
Trade creditors
24,421
75,898
Other creditors
31,909
1,125
56,330
77,023
CYGNUS ESTATES LIMITED
Cygnus Estates Limited
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2017
- 5 -
5
Creditors: amounts falling due after more than one year
2017
2016
£
£
Other creditors
11,866,929
8,754,632
Included within other creditors are amounts payable of £6,982,644 (2016 - £4,673,114) that are secured against property under development which is held within work in progress.