Investors In Lincoln Limited - Limited company accounts 18.2

REGISTERED NUMBER: 02631079 (England and Wales)

Report of the Directors and

Audited Financial Statements

for the Year Ended 31 March 2019

for

Investors In Lincoln Limited

Page

Company Information

1

Report of the Directors

3

Report of the Independent Auditors

5

Income Statement

8

Balance Sheet

9

Cash Flow Statement

10

Notes to the Cash Flow Statement

11

Notes to the Financial Statements

12

DIRECTORS:

Mr I E Extance

Mr S A Beardsley

Mr D C Chambers

Mr K W Darwin

Mr C J Davie

Mrs B M Dowle

Mr S M Galjaard

Mr W R Harrison

Mr C E N Howard

Mr L Hughes

Mr C S Jackson

Mr D T Jackson

Mr I G Jackson

Mr S Jackson

Mr M J M Jolly

Mr R M Jolly

Mr H F F Kok

Mr K J Laidler

Mr J C Latham

Miss U F R Lidbetter

Mr J W Lockwood

Mr P N P McSorley

Mr R J A Metcalf

Mr N M Murray

Mr P V Osborne

Mr R B Parker

Mr A Stevenson

Revd C L Wilson

Mrs N S Warboys

SECRETARY:

Mr D G Rossington

REGISTERED OFFICE:

Greetwell Place

Lime Kilm Way

LINCOLN

LN2 4US

REGISTERED NUMBER:

02631079 (England and Wales)

AUDITORS:

Nicholsons

Statutory Auditors

Newland House

The Point

Weaver Road

LINCOLN

Lincolnshire

LN6 3QN

BANKERS:

Lloyds Bank

High Street

LINCOLN

Lincolnshire

LN5 7AP

The directors present their report with the financial statements of the company for the year ended 31 March 2019.

DIRECTORS

The directors shown below have held office during the whole of the period from 1 April 2018 to the

date of this report.

Mr I E Extance

Mr D C Chambers

Mr K W Darwin

Mr C J Davie

Mrs B M Dowle

Mr S M Galjaard

Mr W R Harrison

Mr C E N Howard

Mr L Hughes

Mr C S Jackson

Mr D T Jackson

Mr I G Jackson

Mr S Jackson

Mr M J M Jolly

Mr R M Jolly

Mr H F F Kok

Mr K J Laidler

Mr J C Latham

Miss U F R Lidbetter

Mr J W Lockwood

Mr P N P McSorley

Mr R J A Metcalf

Mr N M Murray

Mr P V Osborne

Mr R B Parker

Mr A Stevenson

Revd C L Wilson

Mrs N S Warboys

Other changes in directors holding office are as follows:

Mrs H R Atkins - appointed 18 July 2018

Mr S A Beardsley - appointed 18 August 2018

Mrs M E Padgham , Mrs H R Atkins and Mr M J Phipps ceased to be directors after 31 March 2019 but prior to the date of this report.

STATEMENT OF DIRECTORS' RESPONSIBILITIES

The directors are responsible for preparing the Report of the Directors 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 company and of

the profit or loss of the company for that period. In preparing these financial statements, the

directors are required to:

-	select suitable accounting policies and then apply them consistently;

-	make judgements and accounting estimates that are reasonable and prudent;

The directors are responsible for keeping adequate accounting records that are sufficient to show

and explain the company's transactions and disclose with reasonable accuracy at any time the

financial position of 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

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

other irregularities.

STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS

So far as the directors are aware, there is no relevant audit information (as defined by Section 418

of the Companies Act 2006) of which the company's auditors are unaware, and each director has

taken all the steps that he or she ought to have taken as a director in order to make himself or

herself aware of any relevant audit information and to establish that the company's auditors are

aware of that information.

AUDITORS

The auditors, Nicholsons, will be proposed for re-appointment at the forthcoming Annual General

Meeting.

This report has been prepared in accordance with the provisions of Part 15 of the Companies Act

2006 relating to small companies.

ON BEHALF OF THE BOARD:

Mr D G Rossington - Secretary

11 December 2019

Opinion

We have audited the financial statements of Investors In Lincoln Limited (the 'company') for the

year ended 31 March 2019 which comprise the Income Statement, Balance Sheet, Cash Flow

Statement and Notes to the Cash Flow Statement, Notes to the Financial Statements, including a

summary of significant accounting policies. The financial reporting framework that has been

applied in their preparation is applicable law and United Kingdom Accounting Standards, including

Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and

Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

-	give a true and fair view of the state of the company's affairs as at 31 March 2019 and of its 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.

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK))

and applicable law. Our responsibilities under those standards are further described in the

Auditors' responsibilities for the audit of the financial statements section of our report. We are

independent of the company in accordance with the ethical requirements that are relevant to our

audit of the financial statements in the UK, including the FRC's Ethical Standard, and we have

fulfilled our other ethical responsibilities in accordance with these requirements. We believe that

the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

We have nothing to report in respect of the following matters in relation to which the ISAs (UK)

require us to report to you where:

-	the directors' use of the going concern basis of accounting in the preparation of the financial statements is not appropriate; or

-

the directors have not disclosed in the financial statements any identified material uncertainties that may cast significant doubt about the company's ability to continue to adopt the going concern basis of accounting for a period of at least twelve months from the date when the financial statements are authorised for issue.

Other information

The directors are responsible for the other information. The other information comprises the

information in the Report of the Directors, but does not include the financial statements and our

Report of the Auditors thereon.

Our opinion on the financial statements does not cover the other information and, except to the

extent otherwise explicitly stated in our report, we do not express any form of assurance

conclusion thereon.

In connection with our audit of the financial statements, our responsibility is to read the other

information and, in doing so, consider whether the other information is materially inconsistent with

the financial statements or our knowledge obtained in the audit or otherwise appears to be

materially misstated. If we identify such material inconsistencies or apparent material

misstatements, we are required to determine whether there is a material misstatement in the

financial statements or a material misstatement of the other information. If, based on the work we

have performed, we conclude that there is a material misstatement of this other information, we

are required to report that fact. We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of the audit:

-	the information given in the Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and

-	the Report of the Directors has been prepared in accordance with applicable legal requirements.

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the company and its environment obtained in

the course of the audit, we have not identified material misstatements in the Report of the

Directors.

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, or returns adequate for our audit have not been received from branches not visited by us; or

-	the 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; or

-	the directors were not entitled to prepare the financial statements in accordance with the small companies regime and take advantage of the small companies' exemption from the requirement to prepare a Strategic Report or in preparing the Report of the Directors.

Responsibilities of directors

As explained more fully in the Statement of Directors' Responsibilities set out on page four, the

directors are responsible for the preparation of the financial statements and for being satisfied that

they give a true and fair view, and for such internal control as the directors determine necessary to

enable the preparation of financial statements that are free from material misstatement, whether

due to fraud or error.

In preparing the financial statements, the directors are responsible for assessing the company's

ability to continue as a going concern, disclosing, as applicable, matters related to going concern

and using the going concern basis of accounting unless the directors either intend to liquidate the

company or to cease operations, or have no realistic alternative but to do so.

Auditors' responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a

whole are free from material misstatement, whether due to fraud or error, and to issue a Report of

the Auditors that includes our opinion. Reasonable assurance is a high level of assurance, but is

not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material

misstatement when it exists. Misstatements can arise from fraud or error and are considered

material if, individually or in the aggregate, they could reasonably be expected to influence the

economic decisions of users taken on the basis of these financial statements.

A further description of our responsibilities for the audit of the financial statements is located on the

Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description

forms part of our Report of the Auditors.

Use of our report

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 a Report of the Auditors

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.

Joanne Brown (Senior Statutory Auditor)

for and on behalf of Nicholsons

Statutory Auditors

Newland House

The Point

Weaver Road

LINCOLN

Lincolnshire

LN6 3QN

12 December 2019

TURNOVER

537,541

514,191

Cost of sales

44,354

128,015

GROSS PROFIT

493,187

386,176

Administrative expenses

390,322

366,792

102,865

19,384

Other operating income

5,846

8,324

OPERATING PROFIT

108,711

27,708

Interest receivable and similar income

19,786

15,333

128,497

43,041

Interest payable and similar expenses

858

4,058

PROFIT BEFORE TAXATION

127,639

38,983

Tax on profit

4

50,875

3,219

PROFIT FOR THE FINANCIAL YEAR

76,764

35,764

FIXED ASSETS

Tangible assets

6

-

-

Investments

7

298,463

264,017

Investment property

8

4,190,000

3,700,578

4,488,463

3,964,595

CURRENT ASSETS

Debtors

9

203,602

-

Cash at bank

952,010

1,077,852

1,155,612

1,077,852

CREDITORS

Amounts falling due within one year

10

528,239

543,492

NET CURRENT ASSETS

627,373

534,360

TOTAL ASSETS LESS CURRENT LIABILITIES

5,115,836

4,498,955

PROVISIONS FOR LIABILITIES

(72,598

)

(45,975

)

ACCRUALS AND DEFERRED INCOME

11

(373,808

)

(378,278

)

NET ASSETS

4,669,430

4,074,702

CAPITAL AND RESERVES

Called up share capital

224,000

224,000

Revaluation reserve

12

881,859

-

Capital redemption reserve

28,000

28,000

Capital reserve

1,127,535

1,127,535

Retained earnings

2,408,036

2,695,167

4,669,430

4,074,702

The financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies regime.

The financial statements were approved by the Board of Directors on 11 December 2019 and were signed on its behalf by:

Mr K W Darwin - Director

Cash flows from operating activities

Cash generated from operations

1

(130,086

)

29,015

Interest paid

(858

)

(4,058

)

Tax paid

(8,780

)

(173,850

)

Net cash from operating activities

(139,724

)

(148,893

)

Cash flows from investing activities

Purchase of fixed asset investments

(20,030

)

(10,030

)

Purchase of investment property

-

(11,093

)

Sale of investment property

28,542

-

Interest received

5,370

2,159

Net cash from investing activities

13,882

(18,964

)

Decrease in cash and cash equivalents

(125,842

)

(167,857

)

Cash and cash equivalents at beginning of year

2

1,077,852

1,245,709

Cash and cash equivalents at end of year

2

952,010

1,077,852

1.	RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS

31/3/19

31/3/18

as

restated

£

£

Profit before taxation

127,639

38,983

Depreciation charges

-

6,120

Government grants

(4,470

)

(4,399

)

Finance costs

858

4,058

Finance income

(19,786

)

(15,333

)

104,241

29,429

(Increase)/decrease in trade and other debtors

(203,602

)

8,989

Decrease in trade and other creditors

(30,725

)

(9,403

)

Cash generated from operations

(130,086

)

29,015

2.	CASH AND CASH EQUIVALENTS

The amounts disclosed on the Cash Flow Statement in respect of cash and cash equivalents

are in respect of these Balance Sheet amounts:

Year ended 31 March 2019

31.3.19

1.4.18

£

£

Cash and cash equivalents

952,010

1,077,852

Year ended 31 March 2018

31.3.18

1.4.17

as restated

£

£

Cash and cash equivalents

1,077,852

1,245,709

1.	STATUTORY INFORMATION

Investors In Lincoln Limited is a private company, limited by shares , registered in England

and Wales. The company's registered number and registered office address can be found

on the Company Information page.

2.	ACCOUNTING POLICIES

Basis of preparing the financial statements

These financial statements have been prepared in accordance with Financial Reporting

Standard 102 "the Financial Reporting Standard applicable in the UK and Republic of

Ireland" including provisions of Section 1S "Small Entities" and the Companies Act 2006.

The financial statements have been prepared under the historical cost convention unless

otherwise specified within these accounting policies.

Turnover

Turnover is measured at the fair value of the consideration received or receivable, excluding

discounts, rebates, value added tax and other sales taxes.

Tangible fixed assets

Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life.

Fixtures and fittings

-

5% on cost

Government grants

Government grants are recognised when it is reasonable to expect that the grant will be

received and that all related conditions will be met, usually on submission of a valid claim for

payment.

Government grants in respect of capital expenditure are credited to a deferred income

account and are released to the profit over the expected useful life of the relevant assets by

equal annual installments.

Grants of revenue nature are credited to income so as to match them with the expenditure to

which they relate.

Investment property

Investment property is shown at most recent valuation. Any aggregate surplus or deficit

arising from changes in fair value is recognised in profit or loss.

Financial instruments

Only basic financial instruments as defined in FRS 102 are held. Financial assets and

financial liabilities are recognised in the accounts only when the entity becomes party to the

contractual provisions of the instrument and their measurement basis is as follows

Financial assets - trade and other debtors are basic financial instruments and are debt

instruments measured at amortised cost. Prepayments are not financial instruments.

Cash at bank is classified as a basic financial instrument and is measured at transaction

price.

Financial liabilities - trade creditors, accruals and other creditors are basic financial

instruments, and are measured at amortised cost. Where a financial liability constitutes a

financing transaction it is initially and subsequently measured at the present value of future

payments, discounted at a market rate of interest.

Taxation

Taxation for the year comprises current and deferred tax. Tax is recognised in the Income

Statement, except to the extent that it relates to items recognised in other comprehensive

income or directly in equity.

Current or deferred taxation assets and liabilities are not discounted.

Current tax is recognised at the amount of tax payable using the tax rates and laws that

have been enacted or substantively enacted by the balance sheet date.

Deferred tax

Deferred tax is recognised in respect of all timing differences that have originated but not

reversed at the balance sheet date.

Timing differences arise from the inclusion of income and expenses in tax assessments in

periods different from those in which they are recognised in financial statements. Deferred

tax is measured using tax rates and laws that have been enacted or substantively enacted

by the year end and that are expected to apply to the reversal of the timing difference.

Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it

is probable that they will be recovered against the reversal of deferred tax liabilities or other

future taxable profits.

Hire purchase and leasing commitments

Rentals paid under operating leases are charged to profit or loss on a straight line basis over

the period of the lease.

3.	EMPLOYEES AND DIRECTORS

The average number of employees during the year was 3 (2018 - 3 ) .

4.

TAXATION

Analysis of the tax charge

The tax charge on the profit for the year was as follows:

31/3/19

31/3/18

as

restated

£

£

Current tax:

UK corporation tax

24,252

3,219

Deferred tax

26,623

-

Tax on profit

50,875

3,219

UK corporation tax has been charged at 19% .

5.	PRIOR YEAR ADJUSTMENT

The prior year adjustment is to restate the managed workspace that was incorrectly

classified as a fixed asset, when in fact it should be classed as an investment property.

Whilst the effects of this change have not had an impact in terms of tax, an adjustment of

£285,616 has been recorded within reserves brought forward relating to depreciation which

had been charged incorrectly.

6.	TANGIBLE FIXED ASSETS

Fixtures

and

fittings

£

COST

At 1 April 2018

and 31 March 2019

424,943

DEPRECIATION

At 1 April 2018

and 31 March 2019

424,943

NET BOOK VALUE

At 31 March 2019

-

At 31 March 2018

-

7.	FIXED ASSET INVESTMENTS

Sinking

fund

Unlisted

investment

investments

Totals

£

£

£

COST

At 1 April 2018

263,017

1,000

264,017

Additions

10,030

10,000

20,030

Dividends received

14,416

-

14,416

At 31 March 2019

287,463

11,000

298,463

NET BOOK VALUE

At 31 March 2019

287,463

11,000

298,463

At 31 March 2018

263,017

1,000

264,017

The unlisted investment represents 1,000 £1 ordinary shares in Brayford Development

Company Limited, a company registered in England. Also included in unlisted investment is

£10,000 held in shares with Credit Union.

The sinking fund investment comprises sums paid to City of Lincoln Council to provide funds

to meet debenture payments as they fall due.

8.	INVESTMENT PROPERTY

Total

£

FAIR VALUE

At 1 April 2018

3,700,578

Disposals

(28,542

)

Revaluations

517,964

At 31 March 2019

4,190,000

NET BOOK VALUE

At 31 March 2019

4,190,000

At 31 March 2018

3,700,578

Fair value at 31 March 2019 is represented by:

£

Valuation in 2019

4,190,000

If Investment property had not been revalued it would have been included at the following

historical cost:

31/3/19

31/3/18

as

restated

£

£

Cost

3,308,142

-

Investment property was valued on an open market basis on 19 August 2019 by Banks, Long & Co

.

The valuation was a full valuation and was carried out in accordance with the RICS valuation

- Professional Standards January 2014 (the "Red Book"). The basis of preparation was

value in use.

9.

DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

31/3/19

31/3/18

as

restated

£

£

Other debtors

200,000

-

Prepayments

3,602

-

203,602

-

10.

CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

31/3/19

31/3/18

as

restated

£

£

Debentures

100,000

300,000

Tax

24,251

8,779

Social security and other taxes

12,628

11,395

Other creditors

78,178

72,380

Accruals and deferred income

313,182

150,938

528,239

543,492

11.	ACCRUALS AND DEFERRED INCOME

31/3/19

31/3/18

as

restated

£

£

Deferred government grants

373,808

378,278