Armstrong Brooks Plc - Period Ending 2014-08-31

Registration number: 02272990

Armstrong Brooks Plc
 
  Directors' Report and Consolidated Financial Statements
 
  for the Year Ended 31 August 2014
 

Hallidays
Statutory Auditor
Riverside House
Kings Reach Business Park
Yew Street
Stockport
Stockport
SK4 2HD

Armstrong Brooks Plc
Contents

Company Information 1

Strategic Report 2

Directors' Report 3

Statement of Directors' Responsibilities 4

Independent Auditor's Report 5 to 6

Consolidated Profit and Loss Account 7

Consolidated Balance Sheet 8

Balance Sheet 9

Consolidated Cash Flow Statement 10

Notes to the Financial Statements 11 to 22

Armstrong Brooks Plc
Company Information

Directors

Mr R Cory Cheshire Secretarial Services Limited

Registered office

Hallidays Riverside House Yew Street Stockport SK4 2HD

Auditors

Hallidays Statutory Auditor Riverside House Kings Reach Business Park Yew Street Stockport Stockport SK4 2HD

Page 1

Armstrong Brooks Plc
Strategic Report for the Year Ended 31 August 2014

The directors present their strategic report for the year ended 31 August 2014.

Business review

Fair review of the business

The directors regard the level of business and the year end financial position to be satisfactory and anticipate that the current level of trade will continue for the foreseeable future.

The group's key financial and other performance indicators during the year were as follows:

	Unit	2014	2013
Rental income		1,327,281	1,201,812
Bank interest receivable		110	157
Stock		14,260,572	10,326,992

In view of the size and nature of the business, which is operated as a property trader/dealer in the commercial/industrial sectors, inter-firm comparisons are difficult to achieve. The key performance indicators in the group are therefore necessarily financially driven.

Principal risks and uncertainties

The business is managed to ensure protection against the inherent risks in the property market by applying conservative capital gearing measures and seeking to maximise the return on total capital employed. The maintenance of strong group liquidity has ensured a prudent margin of protection and reduced vulnerability without compromising profitability.

Rigorous adherence to these measures has successfully protected the business from the potentially damaging impact of the property market crash, which started in 2007, and continued vigilance along these lines should likewise hold good for the foreseeable future.

Approved by the Board on 25 February 2015 and signed on its behalf by:

 Mr R Cory
 Director

Page 2

Armstrong Brooks Plc
Directors' Report for the Year Ended 31 August 2014

The directors present their report and the consolidated financial statements for the year ended 31 August 2014.

Directors of the company

The directors who held office during the year were as follows:

Mr R Cory

Mr P Sanderson (resigned 6 January 2015)

The following director was appointed after the year end:

Cheshire Secretarial Services Limited (appointed 4 November 2014)

Financial instruments

Objectives and policies

The financial risk management objective of the group is to ensure that it's portfolio of properties provides a commercially adequate rental stream in the short term whilst looking for oppurtunities to sell its existing trading properties or purchase new trading properties in order to generate profits on disposal. This objective is achieved by ensuring that suitable properties are held in key sites. We have considered it prudent to reflect the depressed market conditions by reducing the carrying value of properties within stock.

Price risk, credit risk, liquidity risk and cash flow risk

The company's strategy is to conduct its affairs in such a manner that treats its customers and suppliers fairly whilst maintaining performance, delivering shareholder value and protecting the company's reputation through the prudent management of the risks inherent in the business.

Disclosure of information to the auditor

Each director has taken steps that they ought to have taken as a director in order to make themselves aware of any relevant audit information and to establish that the group's auditor is aware of that information. The directors confirm that there is no relevant information that they know of and which they know the auditor is unaware of.

Reappointment of auditors

The auditors Hallidays are deemed to be reappointed under section 487(2) of the Companies Act 2006.

Approved by the Board on 25 February 2015 and signed on its behalf by:

 Mr R Cory
 Director

Page 3

Armstrong Brooks Plc
Statement of Directors' Responsibilities

The directors are responsible for preparing the Directors' Report and the financial statements in accordance with applicable law and regulations.
Company law requires the

directors

to prepare financial statements for each financial year. Under that law the

directors have

elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the

directors

must not approve the financial statements unless

they are

satisfied that they give a true and fair view of the state of affairs of the

group and the

company and of the profit or loss of the

group

for that period. In preparing these financial statements, the

directors are

required to:
•
select suitable accounting policies and apply them consistently;
•
make judgements and accounting estimates that are reasonable and prudent
;
•
state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; and
•
prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.
The

directors are

responsible for keeping adequate accounting records that are sufficient to show and explain the

group's and the

company's transactions and disclose with reasonable accuracy at any time the financial position of the

group and the

company and enable

them

to ensure that the financial statements comply with the Companies Act 2006.

They are

also responsible for safeguarding the assets of the

group and the

company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Page 4

Independent Auditor's Report to the Members of
Armstrong Brooks Plc

We have audited the financial statements of Armstrong Brooks Plc for the year ended 31 August 2014, set out on pages 7 to 22. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

This report is made solely to the company’s members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company’s members those matters we are required to state to them in an auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company’s members as a body, for our audit work, for this report, or for the opinions we have formed.

Respective responsibilities of directors and auditor

As explained more fully in the Statement of Directors' Responsibilities (set out on page 4), the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view. Our responsibility is to audit and express an opinion on the financial statements in accordance with applicable law and International Standards on Auditing (UK and Ireland). Those standards require us to comply with the Auditing Practices Board’s (APB’s) Ethical Standards for Auditors.

Scope of the audit of the financial statements

An audit involves obtaining evidence about the amounts and disclosures in the financial statements sufficient to give reasonable assurance that the financial statements are free from material misstatement, whether caused by fraud or error. This includes an assessment of: whether the accounting policies are appropriate to the group's and parent company’s circumstances and have been consistently applied and adequately disclosed; the reasonableness of significant accounting estimates made by the directors; and the overall presentation of the financial statements. In addition, we read all the financial and non-financial information in the Annual Reportand Consolidated Financial Statements to identify material inconsistencies with the audited financial statements and to identify any information that is apparently materially incorrect based on, or materially inconsistent with, the knowledge acquired by us in the course of performing the audit. If we become aware of any apparent material misstatements or inconsistencies we consider the implications for our report.

Opinion on financial statements

In our opinion the financial statements:
•
give a true and fair view of the state of the group's and of the parent company's affairs as at

31 August 2014

and of the group's

profit

for the

year

then ended;
•
have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice
; and
•
have been prepared in accordance with the requirements of the Companies Act 2006.

Opinion on other matter prescribed by the Companies Act 2006

In our opinion the information given in the Directors' Report for the financial year for which the financial statements are prepared is consistent with the financial statements.

Page 5

Independent Auditor's Report to the Members of
Armstrong Brooks Plc
 
 ......... continued

Matters on which we are required to report by exception

We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion:

•	adequate accounting records have not been kept by the parent company, or returns adequate for our audit have not been received from branches not visited by us; or
•	the parent company financial statements are not in agreement with the accounting records and returns; or
•	certain disclosures of directors’ remuneration specified by law are not made; or
•	we have not received all the information and explanations we require for our audit.

 
 
 
  Anna Bennett (Senior Statutory Auditor) For and on behalf of Hallidays , Statutory Auditor
 
  Riverside House
  Kings Reach Business Park
  Yew Street
  Stockport
  Stockport
  SK4 2HD

25 February 2015

Page 6

Armstrong Brooks Plc
Consolidated Profit and Loss Account for the Year Ended 31 August 2014

		Note			2014						2013 £
	£			£
Turnover
Discontinued operations								1,700,000			-
Group turnover								1,700,000			-
Cost of sales		2						(961,502)			(504)
Gross profit/(loss)								738,498			(504)
Administrative expenses		2						(365,094)			(245,395)
Other operating income		2						1,339,801			1,206,784
Operating profit/(loss)		3
Continuing operations								500,075			960,885
Discontinued operations								1,213,130			-
Group operating profit								1,713,205			960,885
Other interest receivable and similar income		7						2,873			13,293
Interest payable and similar charges		8						(164,451)			(145,419)
Profit on ordinary activities before taxation								1,551,627			828,759
Tax on profit on ordinary activities		9						(332,226)			(195,668)
Profit for the financial year attributable to members of the parent company		17						1,219,401			633,091

The group has no recognised gains or losses for the year other than the results above.

The notes on pages 11 to 22 form an integral part of these financial statements.
Page 7

Armstrong Brooks Plc
Consolidated Balance Sheet at 31 August 2014

		Note			2014						2013
	£			£			£			£
Fixed assets
Tangible fixed assets		10						5,148						5,259
Other investments		11						17,764						17,764
								22,912						23,023
Current assets
Stocks		12			14,260,573						10,326,992
Debtors		13			162,812						498,197
Cash at bank and in hand					288,675						327,567
					14,712,060						11,152,756
Creditors: Amounts falling due within one year		14			(1,593,075)						(1,933,246)
Net current assets								13,118,985						9,219,510
Total assets less current liabilities								13,141,897						9,242,533
Creditors: Amounts falling due after more than one year		15						(8,725,610)						(6,045,647)
Net assets								4,416,287						3,196,886
Capital and reserves
Called up share capital		16			1,787,500						1,787,500
Capital redemption reserve		17			142,129						142,129
Profit and loss account		17			2,486,658						1,267,257
Shareholders' funds		18						4,416,287						3,196,886

Approved and authorised for issue by the Board on 25 February 2015 and signed on its behalf by:

 Mr R Cory
 Director

The notes on pages 11 to 22 form an integral part of these financial statements.
Page 8

Armstrong Brooks Plc
(Registration number: 02272990)
Balance Sheet at 31 August 2014

		Note			2014 £			2013 £
Fixed assets
Tangible fixed assets		10			5,148			5,259
Investments		11			597,764			597,764
					602,912			603,023
Current assets
Debtors		13			11,820,438			9,349,982
Cash at bank and in hand					288,675			327,567
					12,109,113			9,677,549
Creditors: Amounts falling due within one year		14			(1,087,271)			(1,470,513)
Net current assets					11,021,842			8,207,036
Total assets less current liabilities					11,624,754			8,810,059
Creditors: Amounts falling due after more than one year		15			(8,725,611)			(6,045,647)
Net assets					2,899,143			2,764,412
Capital and reserves
Called up share capital		16			1,787,500			1,787,500
Profit and loss account		17			1,111,643			976,912
Shareholders' funds		18			2,899,143			2,764,412

Approved and authorised for issue by the Board on 25 February 2015 and signed on its behalf by:

 Mr R Cory
 Director

The notes on pages 11 to 22 form an integral part of these financial statements.
Page 9

Armstrong Brooks Plc
Consolidated Cash Flow Statement for the Year Ended 31 August 2014

Reconciliation of operating profit to net cash flow from operating activities

		2014 £			2013 £
Operating profit		1,713,205			960,885
Depreciation, amortisation and impairment charges		1,716			1,505
Increase in stocks		(3,933,581)			-
Decrease/(increase) in debtors		357,752			(420,158)
Increase/(decrease) in creditors		2,490,559			(570,519)
Net cash inflow/(outflow) from operating activities		629,651			(28,287)

Cash flow statement

Reconciliation of net cash flow to movement in net debt

		Note			2014 £			2013 £
(Decrease)/increase in cash					(38,892)			138,988
Cash outflow from repayment of loans					318,983			(433,779)
Change in net debt resulting from cash flows					280,091			(294,791)
Movement in net debt					280,091			(294,791)
Net debt at 1 September					(876,905)			(582,114)
Net debt at 31 August					(596,814)			(876,905)

The notes on pages 11 to 22 form an integral part of these financial statements.
Page 10

Armstrong Brooks Plc
Notes to the Financial Statements for the Year Ended 31 August 2014
......... continued

1	Accounting policies

Basis of preparation

The financial statements have been prepared under the historical cost convention and in accordance with applicable accounting standards.

Basis of consolidation

The consolidated financial statements incorporate the financial statements of the company and all group undertakings. These are adjusted, where appropriate, to conform to group accounting policies. Acquisitions are accounted for under the acquisition method and goodwill on consolidation is capitalised and written off over an appropriate period of time from the year of aquisition. The results of companies acquired or disposed of are included in the profit and loss account after or up to the date that control passes respectively. As a consolidated profit and loss account is published, a separate profit and loss account for the partent company is omitted from the group financial statements by virtue of section 230 of the Companies Act 1985.

No profit and loss account is presented for the company as permitted by Section 408 of the Companies Act 2006. Its profit for the financial year was £134,731 (2013 - £126,249).

Turnover

Turnover represents amounts chargeable, net of value added tax, in respect of the sale of goods and services to customers.

Depreciation

Depreciation is calculated as to write off the cost of an asset, less its estimated residual value over the useful economic life of that asset as follows:

Asset class	Depreciation method and rate
Fixtures & fittings	- 25% written down value.
Motor vehicles	- 30% written down value.
Office equipment	- 25% writtem down value.

Fixed asset investments

All fixed assets are initially recorded at cost. Investments held as fixed asset investments are stated at cost less a provision for any permanent diminution in value.

Current asset investments

Investments held as current assets are stated at the lower of cost and net realisable value.

Stock

Stock relates to properties that are valued at the lower of cost and net realisable value.

Page 11

Armstrong Brooks Plc
Notes to the Financial Statements for the Year Ended 31 August 2014
......... continued

Deferred tax

Deferred tax is recognised is respect of all timing differences that have originated but not reversed at the balance sheet date where transactions or events have occured at that date that will result in an obligation to pay more, or a right to pay less or to receive more tax, with the following exceptions: Provision is made for tax on gians arising from the revaluation (and similar fair value adjustments) of fixed assets and gains on disposal of fixed assets that have been rolled over into replacement assets, only to the extent that, at the balance sheet date, there is a binding agreement to dispose of the assets concerned. However, no provision is made where, on the basis of all available evidence at the balance sheet date, it is more likely than not that the taxable gain will be rolled over into replacement assets and charged to tax only where the replacement asstes are sold. Deferred tax assets that are recognised only to the extent that the director considers that it is more likely than not that there will be suitable taxable profits from which the future reversal of the underlying timing differences can be deducted. Deferred tax is measured on an undiscounted basis at the tax rates that are expected to apply in the periods in which the timing differences reverse, based on tax rate and laws enacted or substantively enacted at the balance sheet date.

Financial instruments

Financial instruments are classified and accounted for, according to the substance of the contractual arrangement, as financial assets, financial liabilities or equity instruments. An equity instrument is any contract that evidences a residual interest in the assets of the group after deducting all of its liabilities.

Pensions

The company operates a defined contribution pension scheme for employees. The assets of the scheme are held separately from those of the company. The annual contributions payable are charged to the profit and loss account.

Page 12

Armstrong Brooks Plc
Notes to the Financial Statements for the Year Ended 31 August 2014
......... continued

2	Cost of sales and operating expenses

		2014 £			2013 £
Cost of sales
Continuing operations		529,503			504
Discontinued operations		431,999			-
		961,502			504
Administrative expenses
Continuing operations		239,973			245,395
Discontinued operations		125,121			-
		365,094			245,395
Other operating income
Continuing operations		1,269,551			1,206,784
Discontinued operations		70,250			-
		1,339,801			1,206,784

3	Operating profit

Operating profit is stated after charging:

		2014 £			2013 £
Depreciation of owned assets		1,716			1,505
Auditor's remuneration		19,500			19,500

4	Auditor's remuneration

		2014 £			2013 £
Audit of the financial statements		19,500			19,500

£17,000 (2013 - £17,000) of the fee for auditing the financial statements relates to the company.

 

5	Particulars of employees

The average number of persons employed by the group (including directors) during the year, analysed by category was as follows:

Page 13

Armstrong Brooks Plc
Notes to the Financial Statements for the Year Ended 31 August 2014
......... continued

		2014 No.			2013 No.
Administration and support		2			2

The aggregate payroll costs were as follows:

		2014 £			2013 £
Wages and salaries		36,185			35,069
Social security costs		1,847			2,761
		38,032			37,830

6	Directors' remuneration

The directors' remuneration for the year was as follows:

		2014 £			2013 £
Remuneration		12,000			12,000

7	Other interest receivable and similar income

		2014 £			2013 £
Bank interest receivable		110			158
Other interest receivable		2,763			13,135
Group interest receivable		2,873			13,293

8	Interest payable and similar charges

		2014 £			2013 £
Interest on bank borrowings		74,019			15,933
Interest on other loans		90,432			129,486
Group interest payable and similar charges		164,451			145,419

Page 14

Armstrong Brooks Plc
Notes to the Financial Statements for the Year Ended 31 August 2014
......... continued

9

Taxation

Tax on profit on ordinary activities

		2014 £			2013 £
Current tax
Corporation tax charge		344,000			198,000
Adjustments in respect of previous years		(11,774)			(2,332)
UK Corporation tax		332,226			195,668

Factors affecting current tax charge for the year

Tax on profit on ordinary activities for the year is lower than (2013 - higher than) the standard rate of corporation tax in the UK of 22.16% (2013 - 23.39%).

The differences are reconciled below:

		2014 £			2013 £
Profit on ordinary activities before taxation		1,551,627			828,759
Corporation tax at standard rate		343,841			193,825
Capital allowances in excess of depreciation		(67)			(304)
Timing difference		(2,982)			(5,152)
Prior year (under) / over provision		(11,773)			(2,332)
Group relief		(1,779)			(1,527)
Rounding up of current years tax charge		4,986			11,158
Total current tax		332,226			195,668

Page 15

Armstrong Brooks Plc
Notes to the Financial Statements for the Year Ended 31 August 2014
......... continued

10	Tangible fixed assets

Group

		Fixtures and fittings £			Office equipment £			Total £
Cost or valuation
At 1 September 2013		27,131			30,726			57,857
Additions		-			1,605			1,605
At 31 August 2014		27,131			32,331			59,462
Depreciation
At 1 September 2013		26,831			25,767			52,598
Charge for the year		75			1,641			1,716
At 31 August 2014		26,906			27,408			54,314
Net book value
At 31 August 2014		225			4,923			5,148
At 31 August 2013		300			4,959			5,259

Company

		Fixtures and fittings £			Office equipment £			Total £
Cost or valuation
At 1 September 2013		27,131			30,726			57,857
Additions		-			1,605			1,605
At 31 August 2014		27,131			32,331			59,462
Depreciation
At 1 September 2013		26,831			25,767			52,598
Charge for the year		75			1,641			1,716
At 31 August 2014		26,906			27,408			54,314
Net book value
At 31 August 2014		225			4,923			5,148
At 31 August 2013		300			4,959			5,259

Page 16

Armstrong Brooks Plc
Notes to the Financial Statements for the Year Ended 31 August 2014
......... continued

11	Investments held as fixed assets

Group

Other investments

		Unlisted investments £			Total £
Cost
At 1 September 2013		17,764			17,764
At 31 August 2014		17,764			17,764
Net book value
At 31 August 2014		17,764			17,764

Company

		2014 £			2013 £
Shares in group undertakings and participating interests		580,000			580,000
Other investments		17,764			17,764
		597,764			597,764

Shares in group undertakings and participating interests

		Subsidiary undertakings £			Total £
Cost
At 1 September 2013		580,000			580,000
At 31 August 2014		580,000			580,000
Net book value
At 31 August 2014		580,000			580,000
At 31 August 2013		580,000			580,000

Page 17

Armstrong Brooks Plc
Notes to the Financial Statements for the Year Ended 31 August 2014
......... continued

Other investments

		Unlisted investments £			Total £
Cost
At 1 September 2013		17,764			17,764
At 31 August 2014		17,764			17,764
Net book value
At 31 August 2014		17,764			17,764
At 31 August 2013		17,764			17,764

Details of undertakings

Details of the investments in which the group holds 20% or more of the nominal value of any class of share capital are as follows:

Undertaking	Holding	Proportion of voting rights and shares held	Principal activity
Subsidiary undertakings
Trawden Forest Properties Limited	Ordinary shares	100%	Property development
Mersey Estates Limited	Ordinary shares	100%	Property development

12

Stocks

Group

Company

		2014 £			2013 £			2014 £			2013 £
Stocks		14,260,573			10,326,992			-			-

Page 18

Armstrong Brooks Plc
Notes to the Financial Statements for the Year Ended 31 August 2014
......... continued

13

Debtors

Group

Company

		2014 £			2013 £			2014 £			2013 £
Trade debtors		136,894			95,501			30,582			554
Amounts owed by group undertakings		-			-			11,778,892			9,046,889
Other debtors		25,918			180,318			10,964			176,318
Prepayments and accrued income		-			222,378			-			126,221
		162,812			498,197			11,820,438			9,349,982

14	Creditors: Amounts falling due within one year

Group

Company

		2014 £			2013 £			2014 £			2013 £
Trade creditors		50,783			51,362			13,808			27,204
Bank loans and overdrafts		885,489			1,204,472			885,489			1,204,472
Corporation tax		233,849			88,000			38,000			28,000
Other taxes and social security		68,285			58,752			68,285			57,055
Other creditors		26,247			55,017			1,271			72
Accruals and deferred income		306,055			475,643			80,418			153,710
Prepayments		22,367			-			-			-
		1,593,075			1,933,246			1,087,271			1,470,513

Creditors amounts falling due within one year includes the following liabilities, on which security has been given by the group/company:

Group

	2014 £	2013 £
Bank loans and overdrafts	3,240,970	101,580

The bank loans and overdraft are secured by way of an unlimited guarantee of all assets with specific debenture security from all three group companies and unlimited cross guarantees together with specific charge on the land and buildings held within Trawden Forest Properties Limited.

Page 19

Armstrong Brooks Plc
Notes to the Financial Statements for the Year Ended 31 August 2014
......... continued

15	Creditors: Amounts falling due after more than one year

Group

Company

		2014 £			2013 £			2014 £			2013 £
Other creditors		4,277,665			2,324,500			4,277,666			2,324,500
Directors' current accounts		4,447,945			3,721,147			4,447,945			3,721,147
		8,725,610			6,045,647			8,725,611			6,045,647

Creditors amounts falling due after more than one year includes the following liabilities, on which security has been given by the group/company:

Group

	2014 £	2013 £
MESA Loan	1,604,790	2,500,000

The loan from MESA pension fund is secured on the property (477 Alexandra Parade) owned by Trawden Forest Properties Limited.

Group

Company

		2014 £			2013 £			2014 £			2013 £
After more than five years not by instalments		324,500			324,500			324,500			324,500

16	Share capital

Allotted, called up and fully paid shares

	2014						2013
		No.			£			No.			£
Ordinary Fully Paid Shares of £0.25 each		7,100,002			1,775,001			7,100,002			1,775,001
Ordinary Partly Paid Shares of £0.62 each		199,998			123,999			199,998			123,999
		7,300,000			1,898,999			7,300,000			1,898,999

Page 20

Armstrong Brooks Plc
Notes to the Financial Statements for the Year Ended 31 August 2014
......... continued

17

Reserves

Group

		Capital redemption reserve £			Profit and loss account £			Total £
At 1 September 2013		142,129			1,267,257			1,409,386
Profit for the year		-			1,219,401			1,219,401
At 31 August 2014		142,129			2,486,658			2,628,787

Company

		Profit and loss account £			Total £
At 1 September 2013		976,912			976,912
Profit for the year		134,731			134,731
At 31 August 2014		1,111,643			1,111,643

18	Reconciliation of movement in shareholders' funds

Group

		2014 £			2013 £
Profit attributable to the members of the group		1,219,401			633,091
Net addition to shareholders' funds		1,219,401			633,091
Shareholders' funds at 1 September		3,196,886			2,563,795
Shareholders' funds at 31 August		4,416,287			3,196,886

Page 21

Armstrong Brooks Plc
Notes to the Financial Statements for the Year Ended 31 August 2014
......... continued

Company

		2014 £			2013 £
Profit attributable to the members of the company		134,731			126,249
Net addition to shareholders' funds		134,731			126,249
Shareholders' funds at 1 September		2,764,412			2,638,163
Shareholders' funds at 31 August		2,899,143			2,764,412

19	Related party transactions

Other related party transactions

During the year the company made the following related party transactions:

Mr R Cory (Sole shareholder) During the year ended 31st August 2012 Mersey Estates Self Administered Pension Fund, of which Mr R Cory is a Trustee, advanced to the company by way of a commercial loan £2,500,000 to enable the full repayment of all borrowings with the National Westminster Bank PLC. At the balance sheet date the amount due to Mr R Cory was £4,447,945 (2013 - £3,721,146).

The company has taken advantage of the exemption in FRS8 "Related Party Disclosures" from disclosing transactions with other members of the group.

20

Control

The company is controlled by the directors who own 100% of the called up share capital.

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