Chard Properties (UK) Limited - Limited company accounts 16.3

REGISTERED NUMBER: 05458539 (England and Wales)

REPORT OF THE DIRECTORS AND

UNAUDITED FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MAY 2016

FOR

CHARD PROPERTIES (UK) LIMITED

Page

Company Information

1

Report of the Directors

2

Income Statement

3

Other Comprehensive Income

4

Statement of Financial Position

5

Statement of Changes in Equity

7

Notes to the Financial Statements

8

Reconciliation of Equity

14

Reconciliation of Profit

16

DIRECTORS:

A S Chard

Mrs N K Chard

SECRETARY:

B Chard

REGISTERED OFFICE:

58-78 High Street

Southall

Middlesex

UB1 5DB

REGISTERED NUMBER:

05458539 (England and Wales)

ACCOUNTANTS:

Dawn & Co.

Chartered Certified Accountants

35A High Street

Ruislip

Middlesex

HA4 7AU

The directors present their report with the financial statements of the company for the year ended 31 May 2016.

PRINCIPAL ACTIVITIES

The principal activities of the company in the year under review were those of Furniture Retailer and Property Investment.

The company opened another showroom during the year and the additional revenues and costs are reflected in the profit

and loss accounts.

REVIEW OF BUSINESS

During the year the directors opened another showroom to bolster the flagging sales.But so far the results have been

disappointing.If there is no marked increase in the sales in the near future,the directors will reconsider their

decision to expand trading activities.

DIRECTORS

The directors shown below have held office during the whole of the period from 1 June 2015 to the date of this report.

A S Chard

Mrs N K Chard

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:

A S Chard - Director

24 October 2016

TURNOVER

931,260

678,572

Cost of sales

510,570

325,700

GROSS PROFIT

420,690

352,872

Administrative expenses

739,920

567,654

(319,230

)

(214,782

)

Other operating income

407,680

424,616

OPERATING PROFIT

4

88,450

209,834

Interest receivable and similar income

1,086

3,450

89,536

213,284

Interest payable and similar expenses

103,876

110,091

(LOSS)/PROFIT BEFORE TAXATION

(14,340

)

103,193

Tax on (loss)/profit

5

(33

)

72,656

(LOSS)/PROFIT FOR THE FINANCIAL YEAR

(14,307

)

30,537

(LOSS)/PROFIT FOR THE YEAR

(14,307

)

30,537

OTHER COMPREHENSIVE INCOME

Total comprehensive income

4,189,729

-

Income tax relating to other comprehensive income

(837,946

)

-

OTHER COMPREHENSIVE INCOME FOR THE YEAR, NET OF INCOME TAX

3,351,783

-

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

3,337,476

30,537

FIXED ASSETS

Intangible assets

6

-

-

Tangible assets

7

5,843,191

1,645,314

5,843,191

1,645,314

CURRENT ASSETS

Stocks

357,936

260,519

Debtors

8

98,405

22,359

Cash at bank and in hand

619,048

929,962

1,075,389

1,212,840

CREDITORS

Amounts falling due within one year

9

185,872

177,227

NET CURRENT ASSETS

889,517

1,035,613

TOTAL ASSETS LESS CURRENT LIABILITIES

6,732,708

2,680,927

CREDITORS

Amounts falling due after more than one year

10

(2,111,359

)

(2,155,000

)

PROVISIONS FOR LIABILITIES

(837,946

)

-

NET ASSETS

3,783,403

525,927

CAPITAL AND RESERVES

Called up share capital

2,580

2,580

Retained earnings

11

3,780,823

523,347

SHAREHOLDERS' FUNDS

3,783,403

525,927

The company is entitled to exemption from audit under Section 477 of the Companies Act 2006 for the year ended 31 May 2016.

The members have not required the company to obtain an audit of its financial statements for the year ended 31 May 2016 in accordance with Section 476 of the Companies Act 2006.

The directors acknowledge their responsibilities for:

(a)	ensuring that the company keeps accounting records which comply with Sections 386 and 387 of the Companies Act 2006 and

(b)

preparing financial statements which give a true and fair view of the state of affairs of the company as at the end of each financial year and of its profit or loss for each financial year in accordance with the requirements of Sections 394 and 395 and which otherwise comply with the requirements of the Companies Act 2006 relating to financial statements, so far as applicable to the company.

The financial statements have been prepared in accordance with the provisions of Part 15 of the Companies Act 2006 relating to small companies.

The financial statements were approved by the Board of Directors on 24 October 2016 and were signed on its behalf by:

A S Chard - Director

Called up

share

Retained

Total

capital

earnings

equity

£

£

£

Balance at 1 June 2014

2,580

624,810

627,390

Changes in equity

Dividends

-

(132,000

)

(132,000

)

Total comprehensive income

-

30,537

30,537

Balance at 31 May 2015

2,580

523,347

525,927

Changes in equity

Dividends

-

(80,000

)

(80,000

)

Total comprehensive income

-

3,337,476

3,337,476

Balance at 31 May 2016

2,580

3,780,823

3,783,403

1.	STATUTORY INFORMATION

Chard Properties (UK) 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 the provisions of Section 1A "Small Entities" of Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention as modified by the revaluation of certain assets.

Turnover

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

value added tax and other sales taxes.

Goodwill

Goodwill, being the amount paid in connection with the acquisition of a business in 0, is being amortised evenly over its estimated useful life of nil years.

Tangible fixed assets

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

Freehold property

-

in accordance with the property

Fixtures and fittings

-

20% on reducing balance

Motor vehicles

-

25% on reducing balance

Computer equipment

-

25% on reducing balance

Stocks

Stocks are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow

moving items.

Deferred tax

Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the statement

of financial position date.

Tangible fixed assets

No depreciation is provided on investment properties because the current market value

exceeds the cost.

3.	EMPLOYEES AND DIRECTORS

The average number of employees during the year was 10 .

4.	OPERATING PROFIT

The operating profit is stated after charging:

31.5.16

31.5.15

£

£

Depreciation - owned assets

17,812

14,914

5.

TAXATION

Analysis of the tax (credit)/charge

The tax (credit)/charge on the loss for the year was as follows:

31.5.16

31.5.15

£

£

Current tax:

UK corporation tax

-

13,333

Under provision of tax

(33

)

59,323

Tax on (loss)/profit

(33

)

72,656

Tax on items charged to equity

31.5.16

31.5.15

£

£

Deferred tax

837,946

-

Tax effects relating to effects of other comprehensive income

31.5.16

Gross

Tax

Net

£

£

£

Total comprehensive income

4,189,729

(837,946

)

3,351,783

4,189,729

(837,946

)

3,351,783

6.	INTANGIBLE FIXED ASSETS

Goodwill

£

COST

At 1 June 2015

and 31 May 2016

160,000

AMORTISATION

At 1 June 2015

and 31 May 2016

160,000

NET BOOK VALUE

At 31 May 2016

-

At 31 May 2015

-

7.	TANGIBLE FIXED ASSETS

Improvements

Freehold

Short

to

property

leasehold

property

£

£

£

COST OR VALUATION

At 1 June 2015

1,595,962

8,499

171,608

Revaluations

4,189,729

-

-

At 31 May 2016

5,785,691

8,499

171,608

DEPRECIATION

At 1 June 2015

185,691

-

-

Charge for year

-

-

-

At 31 May 2016

185,691

-

-

NET BOOK VALUE

At 31 May 2016

5,600,000

8,499

171,608

At 31 May 2015

1,410,271

8,499

171,608

Fixtures

and

Motor

Computer

fittings

vehicles

equipment

Totals

£

£

£

£

COST OR VALUATION

At 1 June 2015

71,212

33,800

2,910

1,883,991

Additions

3,920

22,040

-

25,960

Revaluations

-

-

-

4,189,729

At 31 May 2016

75,132

55,840

2,910

6,099,680

DEPRECIATION

At 1 June 2015

26,890

23,930

2,166

238,677

Charge for year

9,648

7,978

186

17,812

At 31 May 2016

36,538

31,908

2,352

256,489

NET BOOK VALUE

At 31 May 2016

38,594

23,932

558

5,843,191

At 31 May 2015

44,322

9,870

744

1,645,314

Cost or valuation at 31 May 2016 is represented by:

Improvements

Freehold

Short

to

property

leasehold

property

£

£

£

Valuation in 2016

4,375,420

-

-

Cost

1,410,271

8,499

171,608

5,785,691

8,499

171,608

Fixtures

and

Motor

Computer

fittings

vehicles

equipment

Totals

£

£

£

£

Valuation in 2016

-

-

-

4,375,420

Cost

75,132

55,840

2,910

1,724,260

75,132

55,840

2,910

6,099,680

Properties were valued on a fair value basis on 31 May 2016 by the directors .

8.

DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

31.5.16

31.5.15

£

£

Trade debtors

188

-

Other debtors

98,217

22,359

98,405

22,359

9.

CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

31.5.16

31.5.15

£

£

Bank loans and overdrafts

64,609

54,964

Hire purchase contracts

5,166

-

Trade creditors

57,220

71,178

Taxation and social security

18,141

18,766

Other creditors

40,736

32,319

185,872

177,227

10.

CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR

31.5.16

31.5.15

£

£

Bank loans

2,095,000

2,155,000

Hire purchase contracts

16,359

-

2,111,359

2,155,000

Amounts falling due in more than five years:

Repayable by instalments

Bank loans more 5 yr by instal

2,095,000

2,155,000

11.

RESERVES

Retained

earnings

£

At 1 June 2015

523,347

Deficit for the year

(14,307

)

Dividends

(80,000

)

Profit & Loss Reserve

3,351,783

At 31 May 2016

3,780,823

12.	FIRST YEAR ADOPTION

Transitional relief

On transition to FRS 102, the company has taken advantage of the following transitional relief:

•

to measure fair value at date of transition to FRS 102 and use as deemed cost on an item of property, plant and equipment.

FIXED ASSETS

Tangible assets

1,561,746

-

1,561,746

CURRENT ASSETS

Stocks

198,480

-

198,480

Debtors

18,919

-

18,919

Cash at bank and in hand

1,348,817

-

1,348,817

1,566,216

-

1,566,216

CREDITORS

Amounts falling due within one year

(265,572

)

-

(265,572

)

NET CURRENT ASSETS

1,300,644

-

1,300,644

TOTAL ASSETS LESS CURRENT LIABILITIES

2,862,390

-

2,862,390

CREDITORS

Amounts falling due after more than one year

(2,235,000

)

-

(2,235,000

)

NET ASSETS

627,390

-

627,390

CAPITAL AND RESERVES

Called up share capital

2,580

-

2,580

Retained earnings

624,810

-

624,810

SHAREHOLDERS' FUNDS

627,390

-

627,390

FIXED ASSETS

Tangible assets

1,645,314

-

1,645,314

CURRENT ASSETS

Stocks

260,519

-

260,519

Debtors

22,359

-

22,359

Cash at bank and in hand

929,962

-

929,962

1,212,840

-

1,212,840

CREDITORS

Amounts falling due within one year

(177,227

)

-

(177,227

)

NET CURRENT ASSETS

1,035,613

-

1,035,613

TOTAL ASSETS LESS CURRENT LIABILITIES

2,680,927

-

2,680,927

CREDITORS

Amounts falling due after more than one year

(2,155,000

)

-

(2,155,000

)

NET ASSETS

525,927

-

525,927

CAPITAL AND RESERVES

Called up share capital

2,580

-

2,580

Retained earnings

523,347

-

523,347

SHAREHOLDERS' FUNDS

525,927

-

525,927