| Invergordon (H&I) Ltd |
| Notes to the Accounts |
| for the year ended 30 April 2019 |
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| 1 |
Accounting policies |
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Basis of preparation |
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The accounts have been prepared under the historical cost convention and in accordance with FRS 102, The Financial Reporting Standard applicable in the UK and Republic of Ireland (as applied to small entities by section 1A of the standard). |
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Turnover |
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Turnover is measured at the fair value of the consideration received or receivable, net of discounts and value added taxes. Turnover includes revenue earned from the sale of goods and from the rendering of services. Turnover from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have transferred to the buyer. Turnover from the rendering of services is recognised by reference to the stage of completion of the contract. The stage of completion of a contract is measured by comparing the costs incurred for work performed to date to the total estimated contract costs. |
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Going concern |
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The company made a net profit of £49,087 for the year ended 30th April 2019 however at that date its current liabilities exceeded its total assets by £140,666. The financial statements have been prepared on a going concern basis as it is the intention of the shareholders of the company to continue to support the company as and when required. The directors are confident that the secured loan will be renewed and extended in the near future and they believe the bank will allow the company to continue to trade. |
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Investments |
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Investments in subsidiaries, associates and joint ventures are measured at cost less any accumulated impairment losses. Listed investments are measured at fair value. Unlisted investments are measured at fair value unless the value cannot be measured reliably, in which case they are measured at cost less any accumulated impairment losses. Changes in fair value are included in the profit and loss account. |
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Debtors |
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Short term debtors are measured at transaction price (which is usually the invoice price), less any impairment losses for bad and doubtful debts. Loans and other financial assets are initially recognised at transaction price including any transaction costs and subsequently measured at amortised cost determined using the effective interest method, less any impairment losses for bad and doubtful debts. |
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Creditors |
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Short term creditors are measured at transaction price (which is usually the invoice price). Loans and other financial liabilities are initially recognised at transaction price net of any transaction costs and subsequently measured at amortised cost determined using the effective interest method. |
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Taxation |
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A current tax liability is recognised for the tax payable on the taxable profit of the current and past periods. A current tax asset is recognised in respect of a tax loss that can be carried back to recover tax paid in a previous period. Deferred tax is recognised in respect of all timing differences between the recognition of income and expenses in the financial statements and their inclusion in tax assessments. 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. Deferred tax is measured using the tax rates and laws that have been enacted or substantively enacted by the reporting date and that are expected to apply to the reversal of the timing difference, except for revalued land and investment property where the tax rate that applies to the sale of the asset is used. Current and deferred tax assets and liabilities are not discounted. |
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| 2 |
Investment property |
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Land and buildings |
| £ |
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Cost |
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At 1 May 2018 |
510,000 |
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At 30 April 2019 |
510,000 |
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Net book value |
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At 30 April 2019 |
510,000 |
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At 30 April 2018 |
510,000 |
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The property was revalued on 17th Nov 2017 by Jones Lang lasalle, a company specialising in real estate services and investment management, based on its then market value. The original cost of the property was £969,854.
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| 3 |
Debtors |
2019 |
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2018 |
| £ |
£ |
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Amounts owed by group undertakings and undertakings in which the company has a participating interest |
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75,599 |
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66,447 |
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Other debtors |
31,042 |
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30,156 |
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106,641 |
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96,603 |
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| 4 |
Creditors: amounts falling due within one year |
2019 |
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2018 |
| £ |
£ |
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Bank loans and overdrafts |
736,562 |
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770,586 |
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Prepaid rental income |
4,854 |
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4,854 |
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Trade creditors |
23 |
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23 |
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Taxation and social security costs |
13,351 |
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8,838 |
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Other creditors |
11,844 |
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12,055 |
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766,634 |
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796,356 |
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The loan is secured against the property.
The company is negotiating the renewal of the bank loan which has not been finalised at the date of approving the accounts. |
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| 5 |
Related party transactions |
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At the balance sheet date £75,599 (2018 £66,447) was due from Scalemount Ltd, the parent company. |
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| 6 |
Controlling party |
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There is no ultimate controlling party. The immediate parent company is Scalemount Ltd, a company incorporated in England and Wales. |
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| 7 |
Other information |
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Invergordon (H&I) Ltd is a private company limited by shares and incorporated in England. Its registered office is: |
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11 Upper Grosvenor Street |
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Mayfair |
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London |
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W1K 2ND |
