Hitchin Arcade Limited 31/03/2020 iXBRL

HITCHIN ARCADE LIMITED - Company Information

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Company registration number: 00639050

Hitchin Arcade Limited

Unaudited filleted financial statements

31 March 2020

Hitchin Arcade Limited

Contents

Directors and other information

Accountant's report

Statement of financial position

Notes to the financial statements

Hitchin Arcade Limited

Directors and other information


	Directors	Mr M W Seaman-Hill
		Mr J J Hill


	Secretary	Mr J J Hill


	Company number	00639050


	Registered office	First Floor Offices
		99 Bancroft
		Hitchin
		Hertfordshire
		SG5 1NQ


	Accountant	Hicks and Company
		Chartered Accountants
		First Floor
		99 Bancroft
		Hitchin
		Hertfordshire
		SG5 1NQ




	Bankers	HSBC
		1 Market Place
		Hitchin
		Hertfordshire
		SG5 1DR

Hitchin Arcade Limited

Chartered accountant's report to the board of directors on the preparation of the

unaudited statutory financial statements of Hitchin Arcade Limited

Year ended 31 March 2020

In order to assist you to fulfil your duties under the Companies Act 2006, I have prepared for your approval the financial statements of Hitchin Arcade Limited for the year ended 31 March 2020 which comprise the statement of financial position and related notes from the company's accounting records and from information and explanations you have given me.

As a practising member of the Institute of Chartered Accountants in England and Wales (ICAEW), I am subject to its ethical and other professional requirements which are detailed at http://www.icaew.com /en/members/regulations-standards-and-guidance/.

This report is made solely to the board of directors of Hitchin Arcade Limited, as a body, in accordance with the terms of my engagement letter. My work has been undertaken solely to prepare for your approval the financial statements of Hitchin Arcade Limited and state those matters that we have agreed to state to the board of directors of Hitchin Arcade Limited as a body, in this report in accordance with ICAEW Technical Release 07/16 AAF. To the fullest extent permitted by law, I do not accept or assume responsibility to anyone other than Hitchin Arcade Limited and its board of directors as a body for my work or for this report.

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

I have not been instructed to carry out an audit or a review of the financial statements of Hitchin Arcade Limited. For this reason, I have not verified the accuracy or completeness of the accounting records or information and explanations you have given to me and I do not, therefore, express any opinion on the statutory financial statements.

Hicks and Company

Chartered Accountants

First Floor

99 Bancroft

Hitchin

Hertfordshire

SG5 1NQ

15 February 2021

Hitchin Arcade Limited

Statement of financial position

31 March 2020

		2020		2019
	Note	£	£	£	£

Fixed assets
Tangible assets	5	2,957,324		2,957,654
Investments	6	55,108		55,108
		_______		_______
			3,012,432		3,012,762

Current assets
Debtors	7	76,779		89,567
Cash at bank and in hand		81,464		67,218
		_______		_______
		158,243		156,785
Creditors: amounts falling due
within one year	8	( 133,505)		( 127,873)
		_______		_______
Net current assets			24,738		28,912
			_______		_______
Total assets less current liabilities			3,037,170		3,041,674

Creditors: amounts falling due
after more than one year	9		( 300,000)		( 330,000)

Provisions for liabilities			( 75,509)		( 75,572)

			_______		_______
Net assets			2,661,661		2,636,102
			_______		_______

Capital and reserves
Called up share capital			8		8
Fair value reserve			1,965,561		1,965,561
Profit and loss account			696,092		670,533
			_______		_______
Shareholders funds			2,661,661		2,636,102
			_______		_______

For the year ending 31 March 2020 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 financial statements for the year in question in accordance with section 476;

- The directors acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and the preparation of financial statements.

These financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies' regime and in accordance with Section 1A of FRS 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'.

In accordance with section 444 of the Companies Act 2006, the statement of income and retained earnings has not been delivered.

These financial statements were approved by the board of directors and authorised for issue on 15 February 2021 , and are signed on behalf of the board by:

Mr M W Seaman-Hill

Director

Company registration number: 00639050

Hitchin Arcade Limited

Notes to the financial statements

Year ended 31 March 2020

1. General information

The company is a private company limited by shares, registered in England & Wales. The address of the registered office is First Floor Offices, 99 Bancroft, Hitchin, Hertfordshire, SG5 1NQ.

2. Statement of compliance

These financial statements have been prepared in compliance with the provisions of FRS 102, Section 1A, 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'. The Triennial review 2017 amendments to the standard have been early adopted.

3. Accounting policies

Basis of preparation

The financial statements have been prepared on the historical cost basis, as modified by the revaluation of certain financial assets and liabilities and investment properties measured at fair value through profit or loss.

The financial statements are prepared in sterling, which is the functional currency of the entity.

Consolidation

The company has taken advantage of the option not to prepare consolidated financial statements contained in Section 398 of the Companies Act 2006 on the basis that the company and its subsidiary undertakings comprise a small group.

Turnover

Turnover represents rents receivable, car park income and costs recharged during the year excluding value added tax where appropriate.

Taxation

The taxation expense represents the aggregate amount of current and deferred tax recognised in the reporting period. Tax is recognised in the statement of comprehensive income, except to the extent that it relates to items recognised in other comprehensive income or directly in capital and reserves. In this case, tax is recognised in other comprehensive income or directly in capital and reserves, respectively. Current tax is recognised on taxable profit for the current and past periods. Current tax is measured at the amounts of tax expected to pay or recover using the tax rates and laws that have been enacted or substantively enacted at the reporting date.

Deferred tax is recognised in respect of all timing differences at the reporting date. Unrelieved tax losses and other 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 measured using the tax rates and laws that have been enacted or substantively enacted by the reporting date that are expected to apply to the reversal of the timing difference.

Tangible assets

tangible assets are initially recorded at cost, and are subsequently stated at cost less any accumulated depreciation and impairment losses. Any tangible assets carried at revalued amounts are recorded at the fair value at the date of revaluation less any subsequent accumulated depreciation and subsequent accumulated impairment losses. An increase in the carrying amount of an asset as a result of a revaluation, is recognised in other comprehensive income and accumulated in capital and reserves, except to the extent it reverses a revaluation decrease of the same asset previously recognised in profit or loss. A decrease in the carrying amount of an asset as a result of revaluation is recognised in other comprehensive income to the extent of any previously recognised revaluation increase accumulated in capital and reserves in respect of that asset. Where a revaluation decrease exceeds the accumulated revaluation gains accumulated in capital and reserves in respect of that asset, the excess shall be recognised in profit or loss.

Depreciation

Depreciation is calculated so as to write off the cost or valuation of an asset, less its residual value, over the useful economic life of that asset as follows:


Furniture and equipment	-	10 %	straight line

If there is an indication that there has been a significant change in depreciation rate, useful life or residual value of tangible assets, the depreciation is revised prospectively to reflect the new estimates.

Investment property

Investment property is measured initially at cost, which includes purchase price and any directly attributable expenditure. Investment property is revalued to its fair value at each reporting date and any changes in fair value are recognised in profit or loss.

Fixed asset investments

Fixed asset investments are initially recorded at cost, and subsequently stated at cost less any accumulated impairment losses. Listed investments are measured at fair value with changes in fair value being recognised in profit or loss.

Investments in subsidiaries

Investments in subsidiaries accounted for in accordance with the cost model are recorded at cost less any accumulated impairment losses. Dividends and other distributions received from the investment are recognised as income without regard to whether the distributions are from accumulated profits of the associate arising before or after the date of acquisition.

Impairment

A review for indicators of impairment is carried out at each reporting date, with the recoverable amount being estimated where such indicators exist. Where the carrying value exceeds the recoverable amount, the asset is impaired accordingly. Prior impairments are also reviewed for possible reversal at each reporting date. When it is not possible to estimate the recoverable amount of an individual asset, an estimate is made of the recoverable amount of the cash-generating unit to which the asset belongs. The cash-generating unit is the smallest identifiable group of assets that includes the asset and generates cash inflows that are largely independent of the cash inflows from other assets or groups of assets.

Provisions

Provisions are recognised when the entity has an obligation at the reporting date as a result of a past event; it is probable that the entity will be required to transfer economic benefits in settlement and the amount of the obligation can be estimated reliably. Provisions are recognised as a liability in the statement of financial position and the amount of the provision as an expense. Provisions are initially measured at the best estimate of the amount required to settle the obligation at the reporting date and subsequently reviewed at each reporting date and adjusted to reflect the current best estimate of the amount that would be required to settle the obligation. Any adjustments to the amounts previously recognised are recognised in profit or loss unless the provision was originally recognised as part of the cost of an asset. When a provision is measured at the present value of the amount expected to be required to settle the obligation, the unwinding of the discount is recognised in finance costs in profit or loss in the period it arises.

Financial instruments

A financial asset or a financial liability is recognised only when the entity becomes a party to the contractual provisions of the instrument. Basic financial instruments are initially recognised at the transaction price, unless the arrangement constitutes a financing transaction, where it is recognised at the present value of the future payments discounted at a market rate of interest for a similar debt instrument.Debt instruments are subsequently measured at amortised cost.

Defined contribution plans

Contributions to defined contribution plans are recognised as an expense in the period in which the related service is provided. Prepaid contributions are recognised as an asset to the extent that the prepayment will lead to a reduction in future payments or a cash refund. When contributions are not expected to be settled wholly within 12 months of the end of the reporting date in which the employees render the related service, the liability is measured on a discounted present value basis. The unwinding of the discount is recognised in finance costs in profit or loss in the period in which it arises.

4. Employee numbers

The average number of persons employed by the company during the year amounted to 3 (2019: 3 ).

5. Tangible assets

	Freehold investment property	Furniture and equipment	Total
	£	£	£
Cost/Valuation
At 1 April 2019 and 31 March 2020	2,956,117	15,523	2,971,640
	_______	_______	_______
Depreciation
At 1 April 2019	-	13,986	13,986
Charge for the year	-	330	330
	_______	_______	_______
At 31 March 2020	-	14,316	14,316
	_______	_______	_______
Carrying amount
At 31 March 2020	2,956,117	1,207	2,957,324
	_______	_______	_______
At 31 March 2019	2,956,117	1,537	2,957,654
	_______	_______	_______

Investment property

Included within the above is investment property measured at fair value as follows:

		£
	At 1 April 2019 and 31 March 2020	2,956,117
		_______

The freehold investment properties held by the company on 3rd July 2015 were professionally valued by Aitchison Raffety chartered surveyors. This was considered fair value by the directors and these properties remain included at those values on 31st March 2020. Subsequent to 3rd July 2015 further freehold investment properties were acquired by the company. These are held at cost which the directors consider to be the fair value at 31st March 2020. The valuations were made on an evidence basis for existing use . On 12th March 2020 the World Health Organisation announced the COVID-19 outbreak a pandemic. The COVID-19 crisis has created a great deal of uncertainty in the property market that is not reflected in the property valuations included in the financial statements. At the date of signing these financial statements, the directors cannot yet quantify what impact the pandemic will be on the fair value of the investment property. The directors will review the fair value of the investment property at the next statement of financial position date.

Tangible assets held at valuation

In respect of tangible assets held at valuation, the aggregate cost, depreciation and comparable carrying amount that would have been recognised if the assets had been carried under the historical cost model are as follows:


	Freehold investment property	Total
	£	£
At 31 March 2020
Aggregate cost	915,275	915,275
Aggregate depreciation	-	-
	_______	_______
Carrying amount	915,275	915,275
	_______	_______

At 31 March 2019
Aggregate cost	915,275	915,275
Aggregate depreciation	-	-
	_______	_______
Carrying amount	915,275	915,275
	_______	_______

6. Investments

	Shares in group undertaking	Loans to group undertaking	Total
	£	£	£
Cost
At 1 April 2019 and 31 March 2020	100	55,008	55,108
	_______	_______	_______
Impairment
At 1 April 2019 and 31 March 2020	-	-	-
	_______	_______	_______
Carrying amount
At 31 March 2020	100	55,008	55,108
	_______	_______	_______
At 31 March 2019	100	55,008	55,108
	_______	_______	_______

Shares in group undertaking: The total of the investment held by the company relates to the following subsidiary undertaking: Name of Company - Viabond Limited Country of Incorporation - England & Wales Holding - Ordinary Shares Proportion Held - 100% Nature of Business - Property Investor Extracts from the unaudited financial statements of the subsidiary undertaking at 31st March 2020 are as follows: Capital and reserves £123,833 Profit for the year after taxation £6,610

7. Debtors

	2020	2019
	£	£
Rent, insurance, car parking and recoverable expenses in arrears	9,078	66,727
Other debtors	67,701	22,840
	_______	_______
	76,779	89,567
	_______	_______

8. Creditors: amounts falling due within one year

	2020	2019
	£	£
Bank loan (secured)	30,000	30,000
Rent, insurance, car parking and recoverable expenses in advance	34,562	26,435
Corporation tax	12,051	5,620
Social security and other taxes	3,191	1,567
Other creditors	53,701	64,251
	_______	_______
	133,505	127,873
	_______	_______

9. Creditors: amounts falling due after more than one year

	2020	2019
	£	£
Bank loan (secured)	300,000	330,000
	_______	_______

10. Pension commitments

The company's annual commitment under the scheme is for contributions of £430 (2019: £295).Included in other creditors are amounts due to the pension scheme of £39 (2019: £25).

11. Related party transactions

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

	Transaction value		Balance owed by/(owed to)
	2020	2019	2020	2019
	£	£	£	£
Messrs John Shilcock - rent collection fees	24,256	23,312	( 969)	( 4,228)
Messrs John Shilcock - professional fees	720	4,080	-	-
Messrs John Shilcock - management fees	19,600	21,400	( 31,300)	( 27,800)
	_______	_______	_______	_______

At 31st March 2020 £55,102 (2019: £4,519) was owed to the company by Messrs John Shilcock, a partnership in with Mr M W Seaman-Hill and Mr J J Hill, directors of the company have an interest. The amount owed represents net rents collected by Messrs John Shilcock as managing agents, retained to cover future expenses. The amount is unsecured, interest free and repayable on demand.