Aequus Land Ltd - Period Ending 2019-03-31

Registration number: 06613088

Aequus Land Ltd

Annual Report and Unaudited Financial Statements

for the Year Ended 31 March 2019

evirtualFD (Birmingham) Ltd
8th Floor, Newater House
11 Newhall Street
Birmingham
West Midlands
B3 3NY

Aequus Land Ltd

Contents

Company Information	1
Accountants' Report	2
Balance Sheet	3 to 4
Notes to the Financial Statements	5 to 13

Aequus Land Ltd

Company Information

Directors

Mr S A M Corner Mr L Turner

Company secretary

Mr L M Turner

Registered office

8th Floor, Newater House 11 Newhall Street Birmingham West Midlands B3 3NY

Accountants

evirtualFD (Birmingham) Ltd 8th Floor, Newater House 11 Newhall Street Birmingham West Midlands B3 3NY

Page 1

Accountants' Report to the Board of Directors on the Preparation of the Unaudited Statutory Accounts of
Aequus Land Ltd
for the Year Ended 31 March 2019

In order to assist you to fulfil your duties under the Companies Act 2006, we have prepared for your approval the accounts of Aequus Land Ltd for the year ended 31 March 2019 as set out on pages 3 to 13 from the company's accounting records and from information and explanations you have given us.

It is your duty to ensure that Aequus Land Ltd has kept adequate accounting records and to prepare statutory accounts that give a true and fair view of the assets, liabilities, financial position and profit of Aequus Land Ltd. You consider that Aequus Land Ltd is exempt from the statutory audit requirement for the year.

We have not been instructed to carry out an audit or a review of the accounts of Aequus Land Ltd. For this reason, we have not verified the accuracy or completeness of the accounting records or information and explanations you have given to us and we do not, therefore, express any opinion on the statutory accounts.

......................................

evirtualFD (Birmingham) Ltd
8th Floor, Newater House
11 Newhall Street
Birmingham
West Midlands
B3 3NY

30 December 2019

Page 2

Aequus Land Ltd

(Registration number: 06613088)
Balance Sheet as at 31 March 2019

	Note	2019 £	2018 £
Fixed assets
Tangible assets	3	20,763	22,600
Investment property	4	2,963,032	2,963,032
Investments	5	2,397,574	1,466,850
		5,381,369	4,452,482
Current assets
Debtors	6	579,595	213,251
Cash at bank and in hand		1,383,282	2,439,418
		1,962,877	2,652,669
Creditors: Amounts falling due within one year	7	(377,798)	(109,541)
Net current assets		1,585,079	2,543,128
Total assets less current liabilities		6,966,448	6,995,610
Creditors: Amounts falling due after more than one year	7	(6,446,153)	(6,684,306)
Net assets		520,295	311,304
Capital and reserves
Called up share capital		100	100
Profit and loss account		520,195	311,204
Total equity		520,295	311,304

For the financial year ending 31 March 2019 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.

Directors' responsibilities:

•	The members have not required the company to obtain an audit of its accounts for the year in question in accordance with section 476; and
•	The directors acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and the preparation of accounts.

These financial statements have been prepared in accordance with the special provisions relating to companies subject to the small companies regime within Part 15 of the Companies Act 2006.

These financial statements have been delivered in accordance with the provisions applicable to companies subject to the small companies regime and the option not to file the Profit and Loss Account has been taken.

The notes on pages 5 to 13 form an integral part of these financial statements.

Page 3

Aequus Land Ltd

(Registration number: 06613088)
Balance Sheet as at 31 March 2019

Approved and authorised by the Board on 30 December 2019 and signed on its behalf by:
 

.........................................

Mr S A M Corner

Director

The notes on pages 5 to 13 form an integral part of these financial statements.

Page 4

Aequus Land Ltd

Notes to the Financial Statements for the Year Ended 31 March 2019

1	General information

The company is a private company limited by share capital incorporated in England.

The address of its registered office is:
8th Floor, Newater House
11 Newhall Street
Birmingham
West Midlands
B3 3NY

These financial statements were authorised for issue by the Board on 30 December 2019.

2	Accounting policies

Summary of significant accounting policies and key accounting estimates

The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.

Statement of compliance

These financial statements have been prepared in accordance with Financial Reporting Standard 102 including Section 1A - 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' and the Companies Act 2006.

Basis of preparation

These financial statements have been prepared using the historical cost convention except that as disclosed in the accounting policies certain items are shown at fair value.

Tangible assets

Tangible assets are stated in the statement of financial position at cost, less any subsequent accumulated depreciation and subsequent accumulated impairment losses.

The cost of tangible assets includes directly attributable incremental costs incurred in their acquisition and installation.

Depreciation

Depreciation is charged so as to write off the cost of assets, other than land and properties under construction over their estimated useful lives, as follows:

Asset class	Depreciation method and rate
Motor vehicles	25% reducing balance
Plant and machinery	15% reducing balance
Office equipment	15% reducing balance

Investment property

Investment property is carried at fair value, derived from the current market prices for comparable real estate determined annually by external valuers. The valuers use observable market prices, adjusted if necessary for any difference in the nature, location or condition of the specific asset. Changes in fair value are recognised in profit or loss.

Page 5

Aequus Land Ltd

Notes to the Financial Statements for the Year Ended 31 March 2019

Business combinations

Business combinations are accounted for using the purchase method. The consideration for each acquisition is measured at the aggregate of the fair values at acquisition date of assets given, liabilities incurred or assumed, and equity instruments issued by the group in exchange for control of the acquired, plus any costs directly attributable to the business combination. When a business combination agreement provides for an adjustment to the cost of the combination contingent on future events, the group includes the estimated amount of that adjustment in the cost of the combination at the acquisition date if the adjustment is probable and can be measured reliably.

Investments

Investments in equity shares which are publicly traded or where the fair value can be measured reliably are initially measured at fair value, with changes in fair value recognised in profit or loss. Investments in equity shares which are not publicly traded and where fair value cannot be measured reliably are measured at cost less impairment.


Interest income on debt securities, where applicable, is recognised in income using the effective interest method. Dividends on equity securities are recognised in income when receivable.

Cash and cash equivalents

Cash and cash equivalents comprise cash on hand and call deposits, and other short-term highly liquid investments that are readily convertible to a known amount of cash and are subject to an insignificant risk of change in value.

Trade debtors

Trade debtors are amounts due from customers for merchandise sold or services performed in the ordinary course of business.

Trade debtors are recognised initially at the transaction price. They are subsequently measured at amortised cost using the effective interest method, less provision for impairment. A provision for the impairment of trade debtors is established when there is objective evidence that the company will not be able to collect all amounts due according to the original terms of the receivables.

Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost is determined using the first-in, first-out (FIFO) method.

The cost of finished goods and work in progress comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the inventories to their present location and condition. At each reporting date, stocks are assessed for impairment. If stocks are impaired, the carrying amount is reduced to its selling price less costs to complete and sell; the impairment loss is recognised immediately in profit or loss.

Page 6

Aequus Land Ltd

Notes to the Financial Statements for the Year Ended 31 March 2019

Trade creditors

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Accounts payable are classified as current liabilities if the company does not have an unconditional right, at the end of the reporting period, to defer settlement of the creditor for at least twelve months after the reporting date. If there is an unconditional right to defer settlement for at least twelve months after the reporting date, they are presented as non-current liabilities.

Trade creditors are recognised initially at the transaction price and subsequently measured at amortised cost using the effective interest method.

Borrowings

Interest-bearing borrowings are initially recorded at fair value, net of transaction costs. Interest-bearing borrowings are subsequently carried at amortised cost, with the difference between the proceeds, net of transaction costs, and the amount due on redemption being recognised as a charge to the Profit and Loss Account over the period of the relevant borrowing.

Interest expense is recognised on the basis of the effective interest method and is included in interest payable and similar charges.

Borrowings are classified as current liabilities unless the company has an unconditional right to defer settlement of the liability for at least twelve months after the reporting date.

Share capital

Ordinary shares are classified as equity. Equity instruments are measured at the fair value of the cash or other resources received or receivable, net of the direct costs of issuing the equity instruments. If payment is deferred and the time value of money is material, the initial measurement is on a present value basis.

Page 7

Aequus Land Ltd

Notes to the Financial Statements for the Year Ended 31 March 2019

3	Tangible assets

	Furniture, fittings and equipment  £	Motor vehicles  £	Other property, plant and equipment  £	Total £
Cost or valuation
At 1 April 2018	7,595	26,413	13,683	47,691
Additions	3,139	-	-	3,139
At 31 March 2019	10,734	26,413	13,683	50,830
Depreciation
At 1 April 2018	2,883	15,270	6,938	25,091
Charge for the year	1,178	2,786	1,012	4,976
At 31 March 2019	4,061	18,056	7,950	30,067
Carrying amount
At 31 March 2019	6,673	8,357	5,733	20,763
At 31 March 2018	4,712	11,143	6,745	22,600

4	Investment properties

	2019 £
At 1 April	2,963,032

There has been no valuation of investment property by an independent valuer. The fair value of the property therefore remains as at the 31 March 2018.

Page 8

Aequus Land Ltd

Notes to the Financial Statements for the Year Ended 31 March 2019

5	Investments

	2019 £	2018 £
Investments in subsidiaries	2,378,994	1,448,270
Investments in associates	18,580	18,580
	2,397,574	1,466,850

Subsidiaries	£
Cost or valuation
At 1 April 2018	1,448,270
Additions	1,688,199
At 31 March 2019	3,136,469
Provision
Provision	757,475
Carrying amount
At 31 March 2019	2,378,994
At 31 March 2018	1,448,270

Details of undertakings

Details of the investments (including principal place of business of unincorporated entities) in which the company holds 20% or more of the nominal value of any class of share capital are as follows:

Undertaking	Registered office	Holding	Proportion of voting rights and shares held
			2019	2018
Subsidiary undertakings
Maximus Strategic Land Limited	Estate Office, Thorngrove Sinton Green Worcester WR2 6NP	Ordinary	60%	66.67%
	England
Avenbury Estates Limited	8th Floor Newater House 11 Newhall Street Birmingham B3 3NY	Ordinary	50%	50%
	England
Aequus Land (Dorrington) Limited	44 Sandford Avenue, Church Stretton, Shropshire, SY6 6BH	Ordinary £1 Shares	100%	100%
	England and Wales

Page 9

Aequus Land Ltd

Notes to the Financial Statements for the Year Ended 31 March 2019

Undertaking	Registered office	Holding	Proportion of voting rights and shares held
Swanglen Limited	11 Newhall Street, Birmingham, B3 3NY	Ordinary £1 shares	100%	0%
	England & Wales
Templechain Limited	Newater House, 11 Newhall Street, Birmingham, B3 3NY	Ordinary £1 shares	100%	0%
	England & Wales

Associates
Mortr Limited	110 Majestic Way Telford Shropshire TF4 3SA	Ordinary £1 shares	20%	20%
	England

The principal activity of Maximus Strategic Land Limited is buying and selling of own real estate.

The principal activity of Avenbury Estates Limited is buying and selling of own real estate.

The principal activity of Aequus Land (Dorrington) Limited is buying and selling of own real estate.

The principal activity of Swanglen Limited is a dormant company which was dissolved after the year end.

The principal activity of Templechain Limited is buying and selling of own real estate.

The principal activity of Mortr Limited is software development

6

Debtors

	Note	2019 £	2018 £
Trade debtors		82,078	35,963
Amounts owed by group undertakings and undertakings in which the company has a participating interest	10	497,517	177,288
Total current trade and other debtors		579,595	213,251

Page 10

Aequus Land Ltd

Notes to the Financial Statements for the Year Ended 31 March 2019

7

Creditors

	Note	2019 £	2018 £
Due within one year
Bank loans and overdrafts	8	280,000	-
Trade creditors		8,692	20,095
Taxation and social security		861	4,794
Other creditors		88,245	84,652
		377,798	109,541
Due after one year
Loans and borrowings	8	6,446,153	6,684,306

Included in the above are loan notes repayable as follows;

	2019 £	2018 £
After more than five years not by instalments	750,000	-

8	Loans and borrowings

	2019 £	2018 £
Non-current loans and borrowings
Bank borrowings	1,643,756	1,713,339
Other borrowings	4,802,397	4,970,967
	6,446,153	6,684,306

	2019 £	2018 £
Current loans and borrowings
Bank borrowings	40,000	-
Other borrowings	240,000	-
	280,000	-

Page 11

Aequus Land Ltd

Notes to the Financial Statements for the Year Ended 31 March 2019

Bank borrowings

A first bank loan is denominated in sterling with a nominal interest rate of 2.39% fixed., and the final instalment is due on 22 June 2020. The carrying amount at year end is £643,756 (2018 - £673,339). The loan is secured on the investment property owned by the Company.

A second bank loan is denominated in sterling with a nominal interest rate of 2.25% above LIBOR., and the final instalment is due on 5 May 2021. The carrying amount at year end is £1,040,000 (2018 - £1,040,000). The loan is secured by a first priority legal charge over the Company's investment property.

Other borrowings
Director's loan with a carrying amount of £4,292,397 (2018 - £4,970,697) is denominated in sterling with a nominal interest rate of 0%. There is no fixed repayment date but this will not be repaid within the next year and is therefore shown as being due after one year on the accounts.

Included in the loans and borrowings are the following amounts due after more than five years:

Borrowings due after five years

An amount of £750,000 relates to loan notes with a maturity date of 14 August 2028. The loan notes are unsecured and do not attract interest.

9	Financial commitments, guarantees and contingencies

The total amount of guarantees not included in the balance sheet is £845,000 (2018 - £Nil). The Company has entered into a joint and severable cross guarantee with a subsidiary, which matures in January 2020. The Directors believe that this will either be settled or the terms renegotiated at this time with no actual liability to the Company.

10	Related party transactions

Summary of transactions with other related parties

An outstanding loan brought forward of £122,000 made to a pension fund in which a director is a beneficiary. The loan attracts interest at 6% per annum and is unsecured, being repayable upon demand.
A further loan of £20,229 (2018 - £55,288) made to a property development Company in which a Director is a 50% shareholder. The loan is unsecured and interest free, being repayable upon demand.
A loan of £300,000 made to a company in which a Director is a beneficial shareholder and exercises control. The loan has been provided on an unsecured and interest free basis, being repayable upon demand.

 

Page 12

Aequus Land Ltd

Notes to the Financial Statements for the Year Ended 31 March 2019

Loans to related parties

2019	Other related parties £
At start of period	177,288
Advanced	320,229
At end of period	497,517

2018	Other related parties £
Advanced	177,288

Page 13