TREVOR_OSBORNE_LIMITED - Accounts

In order to assist you to fulfil your duties under the Companies Act 2006, we have prepared for your approval the financial statements of Trevor Osborne Limited for the year ended 30 September 2022 set out on pages to 13 from the company’s accounting records and from information and explanations you have given us.

This report is made solely to the Board of Directors of Trevor Osborne Limited, as a body, in accordance with the terms of our engagement letter. Our work has been undertaken solely to prepare for your approval the financial statements of Trevor Osborne Limited and state those matters that we have agreed to state to the Board of Directors of Trevor Osborne Limited, as a body, in this report. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than Trevor Osborne Limited and its Board of Directors as a body, for our work or for this report.

It is your duty to ensure that Trevor Osborne 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 loss of Trevor Osborne Limited. You consider that Trevor Osborne Limited 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 financial statements of Trevor Osborne Limited. 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 financial statements.

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 2022 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 profit for the year was £1,930,856 (2021 - £1,322,969 loss).

For the financial year ended 30 September 2022 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.

In the application of the group’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

Trevor Osborne Limited (“the company”) is a private limited company domiciled and incorporated in England and Wales. The registered office is .

The group consists of Trevor Osborne 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 group financial statements consist of the financial statements of the parent company Trevor Osborne Limited together with all entities controlled by the parent company (its subsidiaries) and the group’s share of its interests in joint ventures and associates.

All financial statements are made up to 30 September 2022. 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.

Investments in joint ventures and associates are carried in the group balance sheet at cost plus post-acquisition changes in the group’s share of the net assets of the entity, less any impairment in value. The carrying values of investments in joint ventures and associates include acquired goodwill.

If the group’s share of losses in a joint venture or associate equals or exceeds its investment in the joint venture or associate, the group does not recognise further losses unless it has incurred obligations to do so or has made payments on behalf of the joint venture or associate.

Unrealised gains arising from transactions with joint ventures and associates are eliminated to the extent of the group’s interest in the entity.

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.

Property rented to a group entity 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.

Rentals payable under operating leases, including any lease incentives received, are charged to income on a straight line basis over the term of the relevant lease.

Government grants are recognised at the fair value of the asset received or receivable when there is reasonable assurance that the grant conditions will be met and the grants will be received.

A grant that specifies performance conditions is recognised in income when the performance conditions are met. Where a grant does not specify performance conditions it is recognised in income when the proceeds are received or receivable. A grant received before the recognition criteria are satisfied is recognised as a liability.

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 2022 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 £32,267,502 (2021 - £32,579,075) and a carrying amount at historical cost of £19,880,512 (2021 - £17,779,205).

The cost of investment properties includes £43,860 (2021 - £43,860) of capitalised interest.

Details of the company's subsidiaries at 30 September 2022 are as follows:

Registered offices

(1) Rectory Lodge, Combe Hay, Bath, England, BA2 7EG

(2) Lakeside Offices The Old Cattle Market, Coronation Park, Helston, Cornwall, TR13 0SR

Details of joint ventures at 30 September 2022 are as follows:

Registered offices

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

(2) 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 £20,974,891 (2020 - £19,452,997). An amount of £12,347,273 (2020 - £9,266,738) 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 £8,627,618 (2020 - £10,186,259).

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 2022 amounted to £806,977 (2021 - £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.

The ultimate controlling party is the director T Osborne by virtue of his shareholding.