Company registration number:
09163806
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FOR THE YEAR ENDED
31 DECEMBER 2020
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BEST COMMERCIAL HOLDINGS LTD
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BEST COMMERCIAL HOLDINGS LTD
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COMPANY INFORMATION
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Chartered Accountants
&
Statutory Auditor
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BEST COMMERCIAL HOLDINGS LTD
REGISTERED NUMBER:
09163806
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STATEMENT OF FINANCIAL POSITION
AS AT
31 DECEMBER 2020
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2019 - Unaudited & Restated
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Debtors: amounts falling due within one year
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Creditors: amounts falling due within one year
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Total assets less current liabilities
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Creditors: amounts falling due after more than one year
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Provisions for liabilities
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BEST COMMERCIAL HOLDINGS LTD
REGISTERED NUMBER:
09163806
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STATEMENT OF FINANCIAL POSITION
(CONTINUED)
AS AT
31 DECEMBER 2020
The
financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies regime and in accordance with the provisions of FRS 102 Section 1A - small entities.
The financial statements have been delivered in accordance with the provisions applicable to companies subject to the small companies regime.
The Company has opted not to file the income statement in accordance with provisions applicable to companies subject to the small companies' regime.
The financial statements were approved and authorised for issue by the board and were signed on its behalf by
:
................................................
A. Best
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................................................
W. Hanif
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The notes on pages 4 to 11 form part of these financial statements.
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BEST COMMERCIAL HOLDINGS LTD
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STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED
31 DECEMBER 2020
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At 30 April 2019 (as restated)
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Comprehensive income for the period
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Surplus on revaluation of freehold property
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Total comprehensive income for the period
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Comprehensive income for the year
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Surplus on revaluation of freehold property
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Total comprehensive income for the year
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The notes on pages 4 to 11 form part of these financial statements.
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BEST COMMERCIAL HOLDINGS LTD
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2020
Best Commercial Holdings Ltd is a private company limited by shares, incorporated in England and Wales under the Companies Act 2006. The address of its registered office is disclosed on the company information page.
2.
Accounting policies
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Basis of preparation of financial statements
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The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Section 1A of
Financial Reporting Standard 102, the Financial Reporting Standard applicable in
the UK and the Republic of Ireland and the Companies Act 2006
.
The following principal accounting policies have been applied:
The prior period financial results are presented for an 8 month period (30 April 2019 to 31 December 2019), whereas the current financial results is for the 12 month period ended 31 December 2020 due to a group reorganisation in the prior period. The comparative amounts presented in the financial statements (including the related notes) are not entirely comparable.
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Exemption from preparing consolidated financial statements
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The
Company
, and the
Group
headed by it, qualify as small as set out in
section 383 of the Companies Act 2006
and the parent and
Group
are considered eligible for the exemption to prepare consolidated accounts.
Revenue represents amounts receivable from pitch fees, licence fees, interest on loans, rent received from properties, sales of mobile homes, commissions and utilities recharged net of VAT.
Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Company and the revenue can be reliably measured. Revenue is measured as the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. The following criteria must also be met before revenue is recognised:
Rendering of services
Revenue from a contract to provide services is recognised in the period in which the services are provided in accordance with the stage of completion of the contract when all of the following conditions are satisfied:
∙
the amount of revenue can be measured reliably;
∙
it is probable that the Company will receive the consideration due under the contract;
∙
the stage of completion of the contract at the end of the reporting period can be measured reliably; and
∙
the costs incurred and the costs to complete the contract can be measured reliably.
Finance costs are charged to income statement over the term of the debt using the effective interest method so that the amount charged is at a constant rate on the carrying amount.
All borrowing costs are recognised in profit or loss in the year in which they are incurred.
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BEST COMMERCIAL HOLDINGS LTD
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2020
2.
Accounting policies (continued)
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Current and deferred taxation
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The tax expense for the year comprises current and deferred tax. Tax is recognised in profit or loss except that a charge attributable to an item of income and expense recognised as other comprehensive income or to an item recognised directly in equity is also recognised in other comprehensive income or directly in equity respectively.
The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the reporting date in the countries where the Company operates and generates income.
Deferred tax balances are recognised in respect of all timing differences that have originated but not reversed by the Statement of Financial Position date, except that:
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The recognition of deferred tax assets is limited to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits; and
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Any deferred tax balances are reversed if and when all conditions for retaining associated tax allowances have been met.
Deferred tax balances are not recognised in respect of permanent differences. Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the reporting date.
Tangible fixed assets under the cost model are stated at historical cost less accumulated depreciation and any accumulated impairment losses. Historical cost includes expenditure that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management.
Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, using the straight-line method.
Depreciation is provided on the following basis:
The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.
Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in profit or loss.
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Revaluation of tangible fixed assets
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Individual freehold properties are carried at current year value at fair value at the date of the revaluation less any subsequent accumulated depreciation and subsequent accumulated impairment losses. Revaluations are undertaken with sufficient regularity to ensure the carrying amount does not differ materially from that which would be determined using fair value at the Statement of Financial Position date.
Fair values are determined from market based evidence normally undertaken by professionally qualified valuers.
Revaluation gains and losses are recognised in other comprehensive income unless losses exceed the previously recognised gains or reflect a clear consumption of economic benefits, in which case the excess losses are recognised in profit or loss.
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BEST COMMERCIAL HOLDINGS LTD
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2020
2.
Accounting policies (continued)
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 at the reporting end date. The surplus or deficit on revaluation is recognised in profit or loss.
Investments in subsidiaries are measured at cost less accumulated impairment.
Stocks are stated at the lower of cost and net realisable value, being the estimated selling price less costs to complete and sell. Cost is based on the cost of purchase on a weighted average basis. Work in progress and finished goods include labour and attributable overheads.
At each reporting date, stocks are assessed for impairment. If stock is impaired, the carrying amount is reduced to its selling price less costs to complete and sell. The impairment loss is recognised immediately in profit or loss.
Short term debtors are measured at transaction price, less any impairment. Loans receivable are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method, less any impairment.
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Cash and cash equivalents
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Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours. Cash equivalents are highly liquid investments that mature in no more than three months from the date of acquisition and that are readily convertible to known amounts of cash with insignificant risk of change in value.
Short term creditors are measured at the transaction price. Other financial liabilities, including bank loans, are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method.
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Provisions for liabilities
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Provisions are made where an event has taken place that gives the Company a legal or constructive obligation that probably requires settlement by a transfer of economic benefit, and a reliable estimate can be made of the amount of the obligation.
Provisions are charged as an expense to profit or loss in the year that the Company becomes aware of the obligation, and are measured at the best estimate at the Statement of Financial Position date of the expenditure required to settle the obligation, taking into account relevant risks and uncertainties.
When payments are eventually made, they are charged to the provision carried in the Statement of Financial Position.
The Company only enters into basic financial instrument transactions that result in the recognition of financial
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BEST COMMERCIAL HOLDINGS LTD
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2020
2.
Accounting policies (continued)
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Financial instruments (continued)
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assets and liabilities like trade and other debtors and creditors, loans from banks and other third parties, loans to related parties and investments in ordinary shares.
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The average monthly number of employees during the year was
3
(2019 -
3
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At 1 January 2020 (as previously stated)
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At 1 January 2020 (as restated)
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At 31 December 2019 (as restated)
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During the year, some of the land and buildings with a carrying amount of £26,856,906 were revalued by an independent chartered surveyor, Avison Young. The valuation was made on open market value basis by reference to market evidence of transaction prices for similar properties.
In the opinion of the directors, the value of the remaining land and buildings is not materially different to the carrying value in the accounts as at the balance sheet date.
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BEST COMMERCIAL HOLDINGS LTD
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2020
4.
Tangible fixed assets (continued)
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If the land and buildings had not been included at valuation they would have been included under the historical cost convention as follows:
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Investments in subsidiary companies
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Freehold investment property
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The 2020 valuations were made by the directors, on an open market value for existing use basis.
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If the Investment properties had been accounted for under the historic cost accounting rules, the properties would have been measured as follows:
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BEST COMMERCIAL HOLDINGS LTD
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2020
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Prepayments and accrued income
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Creditors: Amounts falling due within one year
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Accruals and deferred income
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Included in other creditors are amounts owed to a director who has provided finance from a personal loan upon which security is provided. The assets upon which security has been given are not owned by the Company.
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Creditors: Amounts falling due after more than one year
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Secured loans
A fixed charge is held over the freehold property owned by the Company in respect of loans.
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BEST COMMERCIAL HOLDINGS LTD
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2020
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Charged to other comprehensive income
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The provision for deferred taxation is made up as follows:
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Valuation of freehold assets
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Allotted, called up and fully paid
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1
(2019 -
1
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Ordinary shares
share of £
1
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Revaluation reserve
This reserve records unrealised gains net of any subsequent losses on the revaluation of fixed assets.
Profit and loss account
This reserve records retained earnings and accumulated losses.
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BEST COMMERCIAL HOLDINGS LTD
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2020
The comparative figures have been restated for the following financial statement headings as a result of a correction to a prior period error on the fair value of tangible fixed assets:
Tangible fixed assets - the prior period asset carrying value was reduced by £1,250,000.
Deferred tax liability - the prior period liability was reduced by £237,500.
Revaluation reserve - the closing balance as at 31 December 2019 and opening position at 30 April 2019 on this reserve were reduced by £1,012,500.
The gains/losses adjusted only impact the revaluation reserve, and there is no effect on the profit and loss account in respect of the above adjustments.
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Related party transactions
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Included in other creditors at the balance sheet date is an amount of £6,432,316 (2019: £1,240,302) owed to companies under common control.
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The auditors' report on the financial statements for the year ended 31 December 2020 was unqualified.
The audit report was signed on
30 September 2021
by
Andrew Hookway FCA
(Senior statutory auditor) on behalf of
Menzies LLP
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