ACCOUNTS - Final Accounts preparation

ACCOUNTS - Final Accounts preparation


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Registered number: 01022413









GORGATE LIMITED







UNAUDITED

FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30 SEPTEMBER 2018

 
GORGATE LIMITED
 
 
COMPANY INFORMATION


Directors
S R Cross 
Mrs S L Cross 
Mrs B R Begg 
T R Cross 




Company secretary
Mrs S L Cross



Registered number
01022413



Registered office
Winnington House
2 Woodberry Grove

North Finchley

London

N12 0DR




Accountants
MA Partners LLP
Chartered Accountants

7 The Close

Norwich

Norfolk

NR1 4DJ





 
GORGATE LIMITED
 

CONTENTS



Page
Accountants' Report
 
 
1
Balance Sheet
 
 
2 - 3
Notes to the Financial Statements
 
 
4 - 12


 
GORGATE LIMITED
 
 
  
CHARTERED ACCOUNTANTS' REPORT TO THE BOARD OF DIRECTORS ON THE PREPARATION OF THE UNAUDITED STATUTORY FINANCIAL STATEMENTS OF GORGATE LIMITED
FOR THE YEAR ENDED 30 SEPTEMBER 2018

In order to assist you to fulfil your duties under the Companies Act 2006, we have prepared for your approval the financial statements of Gorgate Limited for the year ended 30 September 2018 which comprise  the Balance Sheet and the related notes from the Company's accounting records and from information and explanations you have given us.

As a practising member firm of the Institute of Chartered Accountants in England and Wales (ICAEW)we are subject to its ethical and other professional requirements which are detailed at http://www.icaew.com/en/ members/regulations-standards-and-guidance/.

This report is made solely to the Board of Directors of Gorgate Limited, as a body, in accordance with the terms of our engagement letter dated 18 August 2016Our work has been undertaken solely to prepare for your approval the financial statements of Gorgate Limited and state those matters that we have agreed to state to the Board of Directors of Gorgate Limited, as a body, in this report in accordance with ICAEW Technical Release TECH07/16AAF. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than Gorgate Limited and its Board of Directors, as a body, for our work or for this report. 

It is your duty to ensure that Gorgate Limited has kept adequate accounting records and to prepare statutory financial statements that give a true and fair view of the assets, liabilities, financial position and profit of Gorgate Limited. You consider that Gorgate Limited is exempt from the statutory audit requirement for the year.

We have not been instructed to carry out an audit or review of the financial statements of Gorgate Limited. For this reason, we have not verified the accuracy or completeness of the accounting records or information and explanations you have given to us and we do not, therefore, express any opinion on the statutory financial statements.

  



MA Partners LLP
 
Chartered Accountants
  
7 The Close
Norwich
Norfolk
NR1 4DJ
18 April 2019
Page 1

 
GORGATE LIMITED
REGISTERED NUMBER: 01022413

BALANCE SHEET
AS AT 30 SEPTEMBER 2018

2018
2017
Note
£
£

Fixed assets
  

Intangible assets
 4 
6,000
8,000

Tangible Fixed Assets
 5 
7,763,483
7,783,496

Fixed Asset Investments
 6 
20
20

Investment Property
 7 
7,610,000
7,760,000

  
15,379,503
15,551,516

Current assets
  

Stocks
  
226,443
197,739

Debtors
 8 
1,143,582
897,820

Cash at bank and in hand
  
251,754
287,412

  
1,621,779
1,382,971

Creditors: amounts falling due within one year
 9 
(288,682)
(232,076)

Net current assets
  
 
 
1,333,097
 
 
1,150,895

Total assets less current liabilities
  
16,712,600
16,702,411

Creditors: amounts falling due after more than one year
 10 
(366,667)
(393,485)

Provisions for liabilities
  

Deferred tax
  
(1,233,533)
(1,345,070)

  
 
 
(1,233,533)
 
 
(1,345,070)

Net assets
  
15,112,400
14,963,856


Capital and reserves
  

Called up share capital 
  
1,000
1,000

Revaluation reserve
 12 
3,884,933
3,835,496

Fair value reserve
 12 
4,415,770
4,579,870

Profit and loss account
 12 
6,810,697
6,547,490

  
15,112,400
14,963,856


The directors consider that the Company is entitled to exemption from audit under section 477 of the Companies Act 2006 and members have not required the Company to obtain an audit for the year in question in accordance with section 476 of Companies Act 2006.

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.

Page 2

 
GORGATE LIMITED
REGISTERED NUMBER: 01022413
    
BALANCE SHEET (CONTINUED)
AS AT 30 SEPTEMBER 2018

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 profit and loss account 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 on 18 April 2019.




Mrs S L Cross
S R Cross
Director
Director

The notes on pages 4 to 12 form part of these financial statements.

Page 3

 
GORGATE LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2018

1.


General information

The Company is a private company limited by shares.  It is both incorporated and domiciled in England and Wales.  The address of its registered office is Winnington House, 2 Woodberry Grove, North Finchley, London.
The company's principal activities continue to be those of retail fish and chip shops, farming, property development and management.

2.Accounting policies

 
2.1

Basis of preparation of financial statements

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:

 
2.2

Revenue

Turnover comprises revenue recognised by the company in respect of goods and services supplied during the year, exclusive of Value Added Tax and trade discounts.
1. Shop revenue is recognised at the point of sale.
2. Property management rental income is recognised on an accruals basis.
3. Farm revenue is recognised when crops are supplied.

 
2.3

Borrowing costs

All borrowing costs are recognised in the Profit and Loss Account in the year in which they are incurred.

 
2.4

Pensions

Defined contribution pension plan

The Company operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the Company pays fixed contributions into a separate entity. Once the contributions have been paid the Company has no further payment obligations.

The contributions are recognised as an expense in the Profit and Loss Account when they fall due. Amounts not paid are shown in accruals as a liability in the Balance Sheet. The assets of the plan are held separately from the Company in independently administered funds.

Page 4

 
GORGATE LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2018

2.Accounting policies (continued)

 
2.5

Current and deferred taxation

The tax expense for the year comprises current and deferred tax. Tax is recognised in the Profit and Loss Account, 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 balance sheet 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 Balance Sheet date, except that:
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
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 except in respect of business combinations, when deferred tax is recognised on the differences between the fair values of assets acquired and the future tax deductions available for them and the differences between the fair values of liabilities acquired and the amount that will be assessed for tax. Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the balance sheet date.

 
2.6

Intangible assets

Intangible assets are initially recognised at cost. After recognition, under the cost model, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses.

All intangible assets are considered to have a finite useful life. If a reliable estimate of the useful life cannot be made, the useful life shall not exceed ten years.

 The estimated useful lives range as follows:

Basic payment scheme entitlements
-
5
years

 
2.7

Tangible fixed assets

Tangible fixed assets under the cost model, other than investment properties, 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.

Page 5

 
GORGATE LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2018

2.Accounting policies (continued)


2.7
Tangible fixed assets (continued)

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:

Buildings
-
2%-10% straight line
Plant and equipment
-
10%-20% straight line
Motor vehicles
-
25% straight line

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 the Profit and Loss Account.

 
2.8

Revaluation of tangible fixed assets

The Company has elected not to adopt a policy of revaluation of tangible fixed assets. The Company will retain the book value of land and buildings previously revalued at 30 September 2015 and will not update that valuation. 

 
2.9

Investment property

Investment property is carried at fair value determined annually by external valuers and derived from the current market rents and investment property yields for comparable real estate, adjusted if necessary for any difference in the nature, location or condition of the specific asset. No depreciation is provided. Changes in fair value are recognised in the Profit and Loss Account.

 
2.10

Valuation of investments

Investments in subsidiaries are measured at cost less accumulated impairment.

Investments in unlisted company shares, whose market value can be reliably determined, are remeasured to market value at each balance sheet date. Gains and losses on remeasurement are recognised in the Profit and Loss Account for the period. Where market value cannot be reliably determined, such investments are stated at historic cost less impairment.

 
2.11

Stocks

Stock is valued at the lower of cost and net realisable value. Cost is determined on a first in first out
basis. Net realisable value represents estimated selling price less costs to sell. Provision is made for
slow moving, obsolete or damaged stock where the net realisable value is less than cost.
Work in progress is valued at cost, based on expenses incurred to date including the purchase of
land, legal and professional fees and disbursements.

Page 6

 
GORGATE LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2018

2.Accounting policies (continued)

 
2.12

Debtors

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.

 
2.13

Cash and cash equivalents

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.

 
2.14

Creditors

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.

 
2.15

Provisions for liabilities

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 the Profit and Loss Account in the year that the Company becomes aware of the obligation, and are measured at the best estimate at the Balance Sheet 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 Balance Sheet.

 
2.16

Financial instruments

The Company only enters into basic financial instrument transactions that result in the recognition of financial assets and liabilities like trade and other debtors and creditors, loans from banks and other third parties and loans to related parties. 

Debt instruments (other than those wholly repayable or receivable within one year), including loans and other accounts receivable and payable, are initially measured at present value of the future cash flows and subsequently at amortised cost using the effective interest method. Debt instruments that are payable or receivable within one year, typically trade debtors and creditors, are measured, initially and subsequently, at the undiscounted amount of the cash or other consideration expected to be paid or received. However, if the arrangements of a short-term instrument constitute a financing transaction, like the payment of a trade debt deferred beyond normal business terms or financed at a rate of interest that is not a market rate or in the case of an out-right short-term loan not at market rate, the financial asset or liability is measured, initially, at the present value of the future cash flow discounted at a market rate of interest for a similar debt instrument and subsequently at amortised cost.

Page 7

 
GORGATE LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2018

3.


Employees

The average monthly number of employees, including directors, during the year was 27 (2017 - 30).


4.


Intangible assets




Entitlements

£



Cost


At 1 October 2017
10,000



At 30 September 2018

10,000



Amortisation


At 1 October 2017
2,000


Charge for the year
2,000



At 30 September 2018

4,000



Net book value



At 30 September 2018
6,000



At 30 September 2017
8,000

Page 8

 
GORGATE LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2018

5.


Tangible fixed assets





Freehold property
Plant & machinery
Motor vehicles
Total

£
£
£
£



Cost or valuation


At 1 October 2017
7,757,827
619,650
181,402
8,558,879


Additions
2,493
10,650
-
13,143


Disposals
-
(21,000)
-
(21,000)



At 30 September 2018

7,760,320
609,300
181,402
8,551,022



Depreciation


At 1 October 2017
35,468
611,460
128,455
775,383


Charge for the year on owned assets
1,172
7,478
24,506
33,156


Disposals
-
(21,000)
-
(21,000)



At 30 September 2018

36,640
597,938
152,961
787,539



Net book value



At 30 September 2018
7,723,680
11,362
28,441
7,763,483



At 30 September 2017
7,722,358
8,190
52,948
7,783,496


6.


Fixed asset investments





Unlisted investments

£



Cost or valuation


At 1 October 2017
20



At 30 September 2018
20




Page 9

 
GORGATE LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2018

7.


Investment property


Freehold investment property

£



Valuation


At 1 October 2017
7,760,000


Additions at cost
76,200


Surplus on revaluation
(226,200)



At 30 September 2018
7,610,000

The 2018 valuations were made by S R Cross, a director, on an open market value for existing use basis.





8.


Debtors

2018
2017
£
£

Due after more than one year

Deferred tax asset
8,939
7,622

8,939
7,622

Due within one year

Trade debtors
96,857
130,126

Amounts owed by group undertakings
876,260
547,885

Other debtors
123,506
183,401

Prepayments and accrued income
38,020
28,786

1,143,582
897,820



Page 10

 
GORGATE LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2018

9.


Creditors: Amounts falling due within one year

2018
2017
£
£

Bank loans
33,333
39,848

Trade creditors
133,211
67,146

Corporation tax
65,727
67,197

Other taxation and social security
20,195
24,770

Other creditors
16,217
14,395

Accruals and deferred income
19,999
18,720

288,682
232,076



10.


Creditors: Amounts falling due after more than one year

2018
2017
£
£

Bank loans
366,667
393,485

366,667
393,485


Bank loans are secured by legal charges over freehold investment properties.


11.


Deferred taxation




2018
2017


£

£






At beginning of year
(1,337,448)
(1,134,778)


Charged to profit or loss
112,854
(202,670)



At end of year
(1,224,594)
(1,337,448)

Page 11

 
GORGATE LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2018
 
11.Deferred taxation (continued)

The deferred tax balance is made up as follows:

2018
2017
£
£


Accelerated capital allowances
8,939
7,622

Revaluation of investment property
(500,409)
(562,509)

Revaluation of freehold property
(733,124)
(782,561)

(1,224,594)
(1,337,448)

Comprising:

Asset - due after one year
8,939
7,622

Liability
(1,233,533)
(1,345,070)

(1,224,594)
(1,337,448)



12.


Reserves

Fair value reserve
The fair value reserve represents the cumulative value of revaluations of the company's investment property to fair value, net of deferred tax. Deferred tax has been provided for on these fair value adjustments.

Revaluation reserve

The revaluation reserve represents the cumulative value of revaluations of the company's freehold property to fair value. Deferred tax has been provided for on these revaluations. 

Profit & loss account

The profit and loss account includes all current and prior period retained profits and losses.


13.


Transactions with directors

As at 1 October 2017 the company was owed by a director £71,848. During the year, advances were paid to a director of £NIL and repayments were received of £71,848.
As at 30 September 2018 the company was owed
 £NIL by a director.

Page 12