THE_TREVOR_OSBORNE_PROPER - Accounts

The directors of the group have elected not to include a copy of the profit and loss account within the financial statements.

For the financial year ended 30 September 2018 the group was entitled to exemption from audit under section 477 of the 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.

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 in accordance with the provisions applicable to groups and companies subject to the small companies regime.

As permitted by s408 Companies Act 2006, the company has not presented its own profit and loss account and related notes. The company’s loss for the year was £3,249 (2017 - £1,758,799 profit).

For the financial year ended 30 September 2018 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 in accordance with the provisions applicable to companies subject to the small companies regime.

The Trevor Osborne Property Group Limited (“the company”) is a private limited company domiciled and incorporated in England and Wales. The registered office is Lynton House, 7-12 Tavistock Square, London, WC1H 9BQ.

The group consists of The Trevor Osborne Property Group Limited and all of its subsidiaries.

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.

In the parent company financial statements, investments in subsidiaries, joint ventures and associates are accounted for at cost less impairment.

The consolidated financial statements incorporate those of The Trevor Osborne Property Group Limited and all of its subsidiaries (ie entities that the group controls through its power to govern the financial and operating policies so as to obtain economic benefits). Subsidiaries acquired during the year are consolidated using the purchase method. Their results are incorporated from the date that control passes.

All financial statements are made up to 30 September 2018. Where necessary, adjustments are made to the financial statements of subsidiaries to bring the accounting policies used into line with those used by other members of the group.

All intra-group transactions, balances and unrealised gains on transactions between group companies are eliminated on consolidation. Unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred.

Entities in which the group holds an interest and which are jointly controlled by the group and one or more other venturers under a contractual arrangement are treated as joint ventures. In the group financial statements, joint ventures are accounted for using the equity method.

Turnover represents gross sales of completed property developments and rental income generated from the group's investment property portfolio. Revenue from property development sales is recognised on legal completion. Rental income is accrued evenly over the life of the rental agreement.

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:

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 recognised in the profit and loss account.

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.

Where fair value cannot be achieved without undue cost or effort, investment property is accounted for as tangible fixed assets.

Fixed asset investments are stated at cost less provision for diminution in value.

At each reporting period end date, the group reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any).

If the recoverable amount of an asset is estimated to be less than its carrying amount, the carrying amount of the asset is reduced to its recoverable amount.

Stocks on the balance sheet represent property developments in progress.

Properties held for development are valued at the lower of cost and net realisable value.

Cost comprises the cost of the land and buildings, development expenditure to date and an appropriate proportion of the finance charges. Properties and sites are treated as acquired on the date of completion of the contract to purchase.

Net realisable value is assessed with reference to the property's open market value at the balance sheet date less applicable selling costs.

Cash at bank and in hand are basic financial assets and include cash in hand, deposits held at call with banks and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

The group has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.

Financial instruments are recognised in the group's balance sheet when the group becomes party to the contractual provisions of the instrument.

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 less impairment.

Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the group transfers the financial asset and substantially all the risks and rewards of ownership to another entity.

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 group after deducting all of its liabilities.

Basic financial liabilities, including creditors, bank loans, loans from fellow group companies are initially recognised at transaction price and subsequently measured at amortised cost.

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers.

Financial liabilities are derecognised when the group's contractual obligations expire or are discharged or cancelled.

Equity instruments issued by the group are recorded at the proceeds received. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the group.

The tax expense represents the sum of the tax currently payable and deferred 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 group’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.

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.

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.

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.

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

The average monthly number of persons (including directors) employed by the group and company during the year was:

The fair value of the investment property class of fixed assets has been arrived at on the basis of valuations carried out at 30 September 2018 by T Osborne, a qualified surveyor, who is internal to the company. The valuations were made on an open market value basis by reference to market evidence of transaction prices for similar properties. This class of assets has a current value of £27,676,700 (2017 - £27,719,704) and a carrying amount at historical cost of £15,446,825 (2017 - £17,719,044).

The cost of investment properties includes £43,860 (2017 - £43,860) of capitalised interest.

Details of the company's subsidiaries at 30 September 2018 are as follows:

Registered offices

(1) Lynton House, 7 - 12 Tavistock Square, London WC1H 9BQ

Details of joint ventures at 30 September 2018 are as follows:

Registered offices

(1) Lynton House, 7 - 12 Tavistock Square, London WC1H 9BQ

(2) CP House, Otterspool Way, Watford WD25 8JJ

(3) 5th Floor, Edison House, 223 - 231 Old Marylebone Road, London NW1 5TH

A first fixed charge over the group's investment in 50% of the ordinary share capital of Buxton Crescent Hotel and Thermal Spa Company Limited is registered in favour of Derbyshire County Council. The charge was registered as continuing security in respect of loan facilities provided by Derbyshire County Council to Buxton Crescent Hotel and Thermal Spa Company Limited. These loan facilities represent part of the funding of the project to develop the Buxton Crescent Hotel and Spa property.

Bank loans are secured by charges over a number of the group's investment properties.

Non-distributable reserves included in consolidated group balance sheet

Total profit and loss reserves at the year end amounted to £25,795,364 (2017 - £24,475,296). An amount of £10,165,238 (2017 - £8,216,054) relating to unrealised gains arising from investment property fair value adjustments is included within the group's profit and loss reserves, in accordance with the requirements of FRS 102. This element of the group's profit and loss reserve relating to unrealised gains is not distributable. The total value of distributable reserves included within the group's profit and loss reserve at the year end amounted to £15,630,126 (2017 - £16,259,242).

Non-distributable reserves included in parent company balance sheet

Total profit and loss reserves at the year end amounted to £13,665,351 (2017 - £13,668,600). An amount of £nil (2017 - £349,209) relating to unrealised gains arising from investment property fair value adjustments is included within the company's profit and loss reserves, in accordance with the requirements of FRS 102. This element of the company's profit and loss reserve relating to unrealised gains is not distributable. The total value of distributable reserves included within the company's profit and loss reserve at the year end amounted to £13,665,351 (2017 - £13,319,391).

Goodwill

The cumulative amount of goodwill eliminated from group reserves that has arisen on the acquisition of undertakings still in the group at 30 September 2018 amounted to £806,977 (2017 - £806,977). This has been eliminated in previous years as a matter of accounting policy and will be charged or credited to the profit and loss account on subsequent disposal of the business to which it relates.

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

The following amounts were outstanding at the reporting end date:

The following amounts were outstanding at the reporting end date: