Company Registration No. 00655497 (England and Wales)
SIDNEY SMITH CHELSEA LIMITED
UNAUDITED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JANUARY 2019
PAGES FOR FILING WITH REGISTRAR
SIDNEY SMITH CHELSEA LIMITED
CONTENTS
Page
Statement of financial position
1 - 2
Notes to the financial statements
3 - 8
SIDNEY SMITH CHELSEA LIMITED
STATEMENT OF FINANCIAL POSITION
AS AT
31 JANUARY 2019
31 January 2019
- 1 -
2019
2018
Notes
£
£
£
£
Fixed assets
Investment properties
4
27,080,000
18,612,512
Investments
5
4,015
4,015
27,084,015
18,616,527
Current assets
Debtors
6
727,936
1,520,606
Cash at bank and in hand
232,189
247,914
960,125
1,768,520
Creditors: amounts falling due within one year
7
(4,613,693)
(6,007,642)
Net current liabilities
(3,653,568)
(4,239,122)
Total assets less current liabilities
23,430,447
14,377,405
Creditors: amounts falling due after more than one year
8
(434,081)
-
Provisions for liabilities
9
(3,292,204)
(1,726,807)
Net assets
19,704,162
12,650,598
Capital and reserves
Called up share capital
10
1,000
1,000
Share premium account
104,300
104,300
Investment property revaluation reserve
18,038,525
11,569,832
Profit and loss reserves
1,560,337
975,466
Total equity
19,704,162
12,650,598
The directors of the company have elected not to include a copy of the income statement within the financial statements.true
For the financial year ended 31 January 2019 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.
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.
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.
SIDNEY SMITH CHELSEA LIMITED
STATEMENT OF FINANCIAL POSITION (CONTINUED)
AS AT
31 JANUARY 2019
31 January 2019
- 2 -
The financial statements were approved by the board of directors and authorised for issue on 23 October 2019 and are signed on its behalf by:
J Smith
N Smith
Director
Director
Company Registration No. 00655497
SIDNEY SMITH CHELSEA LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JANUARY 2019
- 3 -
1
Accounting policies
Company information
Sidney Smith Chelsea Limited is a private company limited by shares and is incorporated and domiciled in England. The principal place of business is 38-42 Kings Road, London SW3 4UD.
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 investment properties 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
Going concern
The financial statements have been prepared on a going concern basis even though at the Balance Sheet date the Company's current liabilities exceeded its current assets by £true3,653,568.
The Directors consider the going concern basis to be appropriate because, in their opinion, the Company will continue to obtain sufficient funding to enable it to pay its debts as they fall due. If the Company were unable to obtain this funding, it would be unable to continue trading and adjustments would have to be made to reduce the value of assets to their realisable amount and to provide for any further liabilities which might arise.
1.3
Turnover
Turnover represents rents receivable from letting of investment properties. Rents receivable from tenants are measured at fair value and is recognised in the period to which it arises on an accrual basis and in accordance with the terms of the lease.
1.4
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.
Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:
Fixtures, fittings & equipment
50% straight line
Computer equipment
50% straight line
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.
SIDNEY SMITH CHELSEA LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2019
1
Accounting policies
(Continued)
- 4 -
1.5
Investment properties
Investment property, which is property held to earn rentals and/or for capital appreciation, is measured using the fair value model and stated at its fair value as the reporting end date. The surplus or deficit on revaluation is recognised in the income statement.
Where fair value cannot be achieved without undue cost or effort, investment property is accounted for as tangible fixed assets.
The fair value model is determined by the directors with the benefit of professional 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.
1.6
Fixed asset investments
Interests in subsidiaries 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.
1.7
Cash at bank and in hand
Cash at bank and in hand are basic financial assets and include cash in hand.
1.8
Financial instruments
The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the company's statement of financial position 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.
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.
SIDNEY SMITH CHELSEA LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2019
1
Accounting policies
(Continued)
- 5 -
Basic financial liabilities
Basic financial liabilities, including creditors 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.
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts 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.
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.
Changes in the fair value of derivatives that are designated and qualify as fair value hedges are recognised in profit or loss immediately, together with any changes in the fair value of the hedged asset or liability that are attributable to the hedged risk.
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 income statement 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 income statement, 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.
SIDNEY SMITH CHELSEA LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2019
1
Accounting policies
(Continued)
- 6 -
1.11
Employee benefits
The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.
The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.
Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.
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 11 (2018 - 11).
3
Tangible fixed assets
Plant and machinery etc
£
Cost
At 1 February 2018
6,738
Disposals
(1,726)
At 31 January 2019
5,012
Depreciation and impairment
At 1 February 2018
6,738
Eliminated in respect of disposals
(1,726)
At 31 January 2019
5,012
Carrying amount
At 31 January 2019
-
At 31 January 2018
-
SIDNEY SMITH CHELSEA LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2019
- 7 -
4
Investment property
2019
£
Fair value
At 1 February 2018
18,612,512
Additions
26,361
Revaluation
8,441,127
At 31 January 2019
27,080,000
Investment property comprises of freehold £26,000,000 (2018 - £17,262,512) and short leasehold £1,080,000 (2018 - £1,350,000).
On a historical cost basis the investment properties would have been included at an original cost of £5,749,271 (2018 - £5,722,910).
5
Fixed asset investments
2019
2018
£
£
Investments
4,015
4,015
Movements in fixed asset investments
Shares in group undertakings
£
Cost or valuation
At 1 February 2018 & 31 January 2019
4,015
Carrying amount
At 31 January 2019
4,015
At 31 January 2018
4,015
6
Debtors
2019
2018
Amounts falling due within one year:
£
£
Trade debtors
13,431
15,963
Amounts owed by group undertakings
-
750,000
Other debtors
714,505
754,643
727,936
1,520,606
Included in other debtors above is an amount of £434,041 relating to tenants deposits which are repayable after 1 year.
SIDNEY SMITH CHELSEA LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2019
- 8 -
7
Creditors: amounts falling due within one year
2019
2018
£
£
Trade creditors
35,276
12,002
Amounts owed to group undertakings
4,200,542
5,177,079
Corporation tax
176,276
190,379
Other taxation and social security
-
985
Other creditors
201,599
627,197
4,613,693
6,007,642
8
Creditors: amounts falling due after more than one year
2019
2018
£
£
Other creditors
434,081
-
9
Provisions for liabilities
2019
2018
£
£
Deferred tax liabilities
3,292,204
1,726,807
10
Called up share capital
2019
2018
£
£
Ordinary share capital
Issued and fully paid
10,000 Ordinary Shares of 10p each
1,000
1,000
11
Operating lease commitments
Lessee
At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, as follows:
2019
2018
£
£
35,667
39,667
12
Related party transactions
The company has taken advantage of the exemption available under section 1A C.35 of FRS 102 'Related party disclosures' whereby it has not disclosed transactions with the ultimate parent company or any wholly owned subsidiary of the group.
2019-01-312018-02-01false24 October 2019CCH SoftwareCCH Accounts Production 2019.301No description of principal activityJ SmithN SmithR Virasinghe006554972018-02-012019-01-31006554972019-01-31006554972018-01-3100655497core:CurrentFinancialInstrumentscore:WithinOneYear2019-01-3100655497core:CurrentFinancialInstrumentscore:WithinOneYear2018-01-3100655497core:CurrentFinancialInstruments2019-01-3100655497core:CurrentFinancialInstruments2018-01-3100655497core:Non-currentFinancialInstruments2019-01-3100655497core:ShareCapital2019-01-3100655497core:ShareCapital2018-01-3100655497core:SharePremium2019-01-3100655497core:SharePremium2018-01-3100655497core:RevaluationReserve2019-01-3100655497core:RevaluationReserve2018-01-3100655497core:RetainedEarningsAccumulatedLosses2019-01-3100655497core:RetainedEarningsAccumulatedLosses2018-01-3100655497bus:Director12018-02-012019-01-3100655497bus:Director22018-02-012019-01-3100655497core:FurnitureFittings2018-02-012019-01-3100655497core:ComputerEquipment2018-02-012019-01-3100655497core:OtherPropertyPlantEquipment2018-01-3100655497core:OtherPropertyPlantEquipment2019-01-3100655497core:OtherPropertyPlantEquipment2018-02-012019-01-31006554972018-01-3100655497core:WithinOneYear2019-01-3100655497core:WithinOneYear2018-01-3100655497bus:PrivateLimitedCompanyLtd2018-02-012019-01-3100655497bus:SmallCompaniesRegimeForAccounts2018-02-012019-01-3100655497bus:FRS1022018-02-012019-01-3100655497bus:AuditExemptWithAccountantsReport2018-02-012019-01-3100655497bus:CompanySecretary12018-02-012019-01-3100655497bus:FullAccounts2018-02-012019-01-31xbrli:purexbrli:sharesiso4217:GBP