DUNWARD_PROPERTIES_LIMITE - Accounts


Company Registration No. 04126074 (England and Wales)
DUNWARD PROPERTIES LIMITED
UNAUDITED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2018
PAGES FOR FILING WITH REGISTRAR
DUNWARD PROPERTIES LIMITED
CONTENTS
Page
Balance sheet
1 - 2
Statement of changes in equity
3
Notes to the financial statements
4 - 10
DUNWARD PROPERTIES LIMITED
BALANCE SHEET
AS AT 31 DECEMBER 2018
31 December 2018
- 1 -
2018
2017
Notes
£
£
£
£
Fixed assets
Tangible assets
3
6,782
4,837
Investment properties
4
16,183,203
14,270,763
Investments
5
1,300
1,300
16,191,285
14,276,900
Current assets
Stocks
1,950,652
1,818,242
Debtors
6
4,934,704
6,296,759
Cash at bank and in hand
849,263
510,111
7,734,619
8,625,112
Creditors: amounts falling due within one year
7
(10,573,370)
(7,308,563)
Net current (liabilities)/assets
(2,838,751)
1,316,549
Total assets less current liabilities
13,352,534
15,593,449
Creditors: amounts falling due after more than one year
8
(6,414,057)
(8,818,259)
Provisions for liabilities
(457,251)
(391,477)
Net assets
6,481,226
6,383,713
Capital and reserves
Called up share capital
9
1,000
1,000
Investment property revaluation reserve
3,016,514
3,092,187
Profit and loss reserves
3,463,712
3,290,526
Total equity
6,481,226
6,383,713

The director of the company has elected not to include a copy of the profit and loss account within the financial statements.true

For the financial year ended 31 December 2018 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.

The director acknowledges his responsibilities for complying with the requirements of the Companies Act 2006 with respect to accounting records and the preparation of financial statements.

The 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.

DUNWARD PROPERTIES LIMITED
BALANCE SHEET (CONTINUED)
AS AT 31 DECEMBER 2018
31 December 2018
- 2 -
The financial statements were approved and signed by the director and authorised for issue on 24 May 2019
Mr D Watson
Director
Company Registration No. 04126074
DUNWARD PROPERTIES LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2018
- 3 -
Share capital
Investment property revaluation reserve
Profit and loss reserves
Total
Notes
£
£
£
£
Balance at 1 January 2017
1,000
2,783,567
2,935,585
5,720,152
Year ended 31 December 2017:
Profit and total comprehensive income for the year
-
-
868,561
868,561
Dividends
-
-
(205,000)
(205,000)
Fair value gains, net of deferred tax
-
503,558
(503,558)
-
Fair value gains realised on sale
-
(194,938)
194,938
-
Balance at 31 December 2017
1,000
3,092,187
3,290,526
6,383,713
Year ended 31 December 2018:
Profit and total comprehensive income for the year
-
-
329,513
329,513
Dividends
-
-
(232,000)
(232,000)
Fair value losses, net of deferred tax
-
(75,673)
75,673
-
Balance at 31 December 2018
1,000
3,016,514
3,463,712
6,481,226
DUNWARD PROPERTIES LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2018
- 4 -
1
Accounting policies
Company information

Dunward Properties Limited is a private company limited by shares incorporated in England and Wales. The registered office is Langford Hall Barn, Witham Road, Langford, Maldon, Essex, CM9 4ST.

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 amounts 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 freehold properties and to include investment properties and certain financial instruments at fair value. The principal accounting policies adopted are set out below.

The company has taken advantage of the exemption under section 399 of the Companies Act 2006 not to prepare consolidated accounts, on the basis that the group of which this is the parent qualifies as a small group. The financial statements present information about the company as an individual entity and not about its group.

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.

 

When cash inflows are deferred and represent a financing arrangement, the fair value of the consideration is the present value of the future receipts. The difference between the fair value of the consideration and the nominal amount received is recognised as interest income.

Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer, the amount of revenue can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the entity and the costs incurred or to be incurred in respect of the transaction can be measured reliably.

Rental income in respect of Investment Properties is recognised on a time basis and by reference to the lease terms.

 

Dividend income from investments is recognised when the shareholder's right to receive payment has been established.

 

Interest income is recognised when it is probable that the economic benefits will flow to the company and the amount of revenue can be measured reliably. Interest income is accrued on a time basis, by reference to the principal outstanding and the effective interest rate applicable.

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.

DUNWARD PROPERTIES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2018
1
Accounting policies
(Continued)
- 5 -

Depreciation is provided at rates calculated to write off the cost or valuation less estimated residual value of each asset over its expected useful life, as follows:

Plant and machinery
25% reducing balance
Fixtures, fittings & equipment
25% reducing balance

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 at the reporting end date. The surplus or deficit on revaluation is recognised in the profit and loss account.

1.5
Fixed asset investments

Interests in subsidiaries, associates and jointly controlled entities 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.

1.6
Impairment of fixed assets

Assets not measured at fair value are reviewed for indication that the asset may be impaired at each balance sheet date. If any such indication exists, the recoverable amount of the asset is estimated and compared to the carrying amount. Where the carrying amount exceeds its recoverable amount, an impairment loss is recognised in profit and loss.

1.7
Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition.

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.

1.8
Financial instruments

The company has only entered into financial instrument transactions which satisfy the definition of basic financial instruments as set out in FRS102 Section 11 ‘Basic 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.

DUNWARD PROPERTIES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2018
1
Accounting policies
(Continued)
- 6 -
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.

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.

Basic financial liabilities

Basic financial liabilities, including creditors, bank loans 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 payments 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.

1.9
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.

1.10
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.

1.11
Retirement benefits

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

DUNWARD PROPERTIES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2018
1
Accounting policies
(Continued)
- 7 -
1.12
Leases

Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leases asset are consumed.

2
Employees

The average monthly number of persons (including directors) employed by the company during the year was 2 (2017 - 2).

3
Tangible fixed assets
Plant and machinery etc
£
Cost
At 1 January 2018
16,573
Additions
3,586
At 31 December 2018
20,159
Depreciation and impairment
At 1 January 2018
11,736
Depreciation charged in the year
1,641
At 31 December 2018
13,377
Carrying amount
At 31 December 2018
6,782
At 31 December 2017
4,837
4
Investment property
2018
£
Fair value
At 1 January 2018
14,270,763
Additions
1,912,440
At 31 December 2018
16,183,203

The fair value of the investment property has been arrived at on the basis of a valuation carried out at 31 December 2018 by the director of the company. The valuation was made on an open market value basis by reference to market evidence of transaction prices for similar properties.

 

On an historical cost basis, the investment properties would have been included at an original cost of £12,668,252 (2017 - £10,755,812).

DUNWARD PROPERTIES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2018
- 8 -
5
Fixed asset investments
2018
2017
£
£
Investments (at cost)
1,300
1,300
Movements in fixed asset investments
Shares in group undertakings
£
Cost
At 1 January 2018 & 31 December 2018
1,300
Carrying amount
At 31 December 2018
1,300
At 31 December 2017
1,300
6
Debtors
2018
2017
Amounts falling due within one year:
£
£
Amounts owed by group undertakings
1,533,498
1,385,117
Other debtors
3,401,206
4,911,642
4,934,704
6,296,759
7
Creditors: amounts falling due within one year
2018
2017
£
£
Bank loans and overdrafts
6,423,270
1,985,498
Trade creditors
13
-
Amounts owed to group undertakings
2,087,612
1,481,402
Corporation tax
112,261
129,296
Other taxation and social security
180
16,767
Other creditors
1,950,034
3,695,600
10,573,370
7,308,563

The bank loans and overdrafts falling due within one year totalling £6,423,270 (2017 - £1,985,498) are secured by fixed legal charges over a number of the properties owned by the company (which are included in Investment Properties and Stock) and a personal guarantee provided by the director of the company.

DUNWARD PROPERTIES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2018
- 9 -
8
Creditors: amounts falling due after more than one year
2018
2017
£
£
Bank loans and overdrafts
5,946,672
8,319,225
Other creditors
467,385
499,034
6,414,057
8,818,259

The bank loans and overdrafts falling due after more than one year totalling £5,946,672 (2017 - £8,319,225) are secured by fixed legal charges over a number of the properties owned by the company (which are included in Investment Properties and Stock) and a personal guarantee provided by the director of the company.

Amounts included above which fall due after five years are as follows:
Payable by instalments
1,541,703
1,596,880
Payable other than by instalments
1,418,524
210,000
2,960,227
1,806,880
9
Called up share capital
2018
2017
£
£
Ordinary share capital
Issued and fully paid
1,000 Ordinary shares of £1 each
1,000
1,000
10
Financial commitments, guarantees and contingent liabilities

At 31 December 2018 Dunward Properties Limited had contracted to purchase leasehold property currently under development at a cost of £195,000.

 

Dunward Properties Limited has provided an unlimited guarantee in respect of a loan of £740,000 provided to its subsidiary company Dunward Investments Limited.

11
Related party transactions
Transactions with related parties

The company has taken advantage of the exemption provided in FRS 102 Section 1A from disclosing transactions with members of the same group that are wholly owned.

 

During the year the company entered into the following transactions with related parties:

DUNWARD PROPERTIES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2018
11
Related party transactions
(Continued)
- 10 -
Services received
2018
2017
£
£
Companies controlled by the director
6,760
3,994

The following amounts were outstanding at the reporting end date:

2018
2017
Amounts owed to related parties
£
£
Companies controlled by the director
709,387
2,746,901
Employer Funded Retirement Benefit Scheme
1,018,235
1,079,584
2016
2015
Amounts owed by related parties
£
£
Companies controlled by the director
3,020,664
4,768,572
12
Directors' transactions

Dividends totalling £232,000 (2017 - £205,000) were paid in the year in respect of shares held by the company's director and his spouse.

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