Mantle (Saffron) Limited - Accounts to registrar - small 16.3

REGISTERED NUMBER: 05752770 (England and Wales)

Unaudited Financial Statements

for the Year Ended 30 June 2016

for

Mantle (Saffron) Limited

Page

Company Information

1

Balance Sheet

2

Notes to the Financial Statements

4

Chartered Accountants' Report

8

DIRECTORS:

G E Baker

J A Baker

M J Chandler

REGISTERED OFFICE:

The Priory

Thremhall Park

Start Hill

Bishop's Stortford

Hertfordshire

CM22 7WE

REGISTERED NUMBER:

05752770 (England and Wales)

ACCOUNTANTS:

Lanham and Company Limited

Chartered Accountants

9 Great Chesterford Court

London Road

Great Chesterford

Essex

CB10 1PF

FIXED ASSETS

Investment property

3

2,690,000

2,690,000

CURRENT ASSETS

Debtors

4

411,486

415,952

Cash at bank

176,044

103,778

587,530

519,730

CREDITORS

Amounts falling due within one year

5

657,177

662,380

NET CURRENT LIABILITIES

(69,647

)

(142,650

)

TOTAL ASSETS LESS CURRENT LIABILITIES

2,620,353

2,547,350

CREDITORS

Amounts falling due after more than one year

6

(1,665,208

)

(1,696,260

)

PROVISIONS FOR LIABILITIES

8

(142,000

)

(136,214

)

NET ASSETS

813,145

714,876

CAPITAL AND RESERVES

Called up share capital

200

200

Fair value reserve

773,000

766,000

Retained earnings

39,945

(51,324

)

SHAREHOLDERS' FUNDS

813,145

714,876

The company is entitled to exemption from audit under Section 477 of the Companies Act 2006 for the year ended 30 June 2016.

The members have not required the company to obtain an audit of its financial statements for the year ended 30 June 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 and delivered in accordance with the provisions of Part 15 of the Companies Act 2006 relating to small companies.

In accordance with Section 444 of the Companies Act 2006, the Statement of Comprehensive Income has not been delivered.

The financial statements were approved by the Board of Directors on 28 August 2017 and were signed on its behalf by:

J A Baker - Director

1.	STATUTORY INFORMATION

Mantle (Saffron) 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.

Related party exemption

The company has taken advantage of exemption, under the terms of Financial Reporting Standard 102 'The

Financial Reporting Standard applicable in the UK and Republic of Ireland', not to disclose related party

transactions with wholly owned subsidiaries within the group.

Revenue recognition

Revenue is measured at the fair value of the consideration received or receivable net of VAT and trade discounts.

Revenue from operating leases is recognised on a straight-line basis over the lease term. The aggregate cost of

any lease incentives provided is recognised as a reduction to the revenue recognised on a straight-line basis.

Investment property

Investment properties for which fair value can be measured reliably without undue cost or effort are measured at

fair value at each reporting date and changes in fair value are recognised in profit or loss.

In order to ascertain the fair value at each reporting date, investment properties have been valued using an open

market valuation on a freehold basis subject to the existing tenancies. Revaluations are conducted annually by the

directors.

Tax

Current tax represents the amount of tax payable or receivable in respect of the taxable profit or loss for the

current or past reporting periods. It is measured at the amount expected to be paid or recovered using tax rates

and laws that have been enacted or substantively enacted by the balance sheet date.

Deferred tax represents the future tax consequences of transaction and events recognised in the financial

statements of current and previous periods. It is recognised in respect of all timing differences that have

originated but not reversed by the balance sheet date. Timing differences are differences between taxable profits

and total comprehensive income as stated in the financial statements that arise from the inclusion of income and

expenses in tax assessments in periods different from those in which they are recognised in the financial

statements. 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

balance sheet date that are expected to apply to the reversal of timing differences. Deferred tax on revalued

non-depreciable tangible fixed assets and investment properties is measured using the rates and allowances that

apply to the sale of the asset.

Debtors and creditors receivable / payable within one year

Debtors and creditors with no stated interest rate and receivable or payable within one year are recorded at

transaction price. Any losses arising from impairment are recognised in the profit and loss account in other

administrative expenses.

Cash and cash equivalents

Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice

of not more than 24 hours. Cash equivalents are highly liquid investments that mature in no more than three

months from the date of acquisition and that are readily convertible to known amounts of cash with insignificant

risk of change in value.

Loans and borrowings

Loans and borrowings are initially recognised at the transaction price including transaction costs. Subsequently,

they are measured at amortised cost using the effective interest rate method, less impairment. If an arrangement

constitutes a finance transaction it is measure at present value.

3.	INVESTMENT PROPERTY

Total

£

FAIR VALUE

At 1 July 2015

and 30 June 2016

2,690,000

NET BOOK VALUE

At 30 June 2016

2,690,000

At 30 June 2015

2,690,000

The last independent valuation was dated 10 February 2014 and was made by Jones Lang Lasalle. The directors

do not consider that the fair value at 30 June 2016 had changed significantly from this valuation.

4.

DEBTORS

30.6.16

30.6.15

£

£

Amounts falling due within one year:

Trade debtors

708

7,052

Amounts owed by associates

284,178

284,178

Other debtors

9,300

-

Prepayments and accrued income

17,300

24,722

311,486

315,952

Amounts falling due after more than one year:

Other debtors

100,000

100,000

Aggregate amounts

411,486

415,952

5.

CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

30.6.16

30.6.15

£

£

Bank loans and overdrafts

31,324

29,935

Trade creditors

977

11,761

Amounts owed to associates

537,918

537,918

Taxation

10,032

-

VAT

10,685

19,563

Other creditors

3,784

4,892

Accruals and deferred income

62,457

58,311

657,177

662,380

6.

CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR

30.6.16

30.6.15

£

£

Bank loans

1,665,208

1,696,260

7.	SECURED DEBTS

The following secured debts are included within creditors:

30.6.16

30.6.15

£

£

Bank loans

1,696,532

1,726,195

The bank loans are secured as follows:

A first legal charge dated 28 February 2014 over the company's investment property and adjoining land known

as Saffron Ground, Ditchmore Lane, Stevenage, Hertfordshire; and

A first, fixed and floating charge dated 28 February 2014 over all the assets of the company; and

An assignment of rents; and

A charge over a blocked cash deposit account for £400,000; and

A composite corporate guarantee from Mantle (Woodside) Limited for £1,761,500 plus interest and costs; and

A composite corporate guarantee from Mantle (Chelmsford) Limited for £1,761,500 plus interest and costs.

8.	PROVISIONS FOR LIABILITIES

30.6.16

30.6.15

£

£

Deferred tax

Tax losses carried forward

-

(12,786

)

Other timing differences

142,000

149,000

142,000

136,214

Deferred

tax

£

Balance at 1 July 2015

136,214

Charge to Statement of Comprehensive Income during year

5,786

Balance at 30 June 2016

142,000

9.	CONTINGENT LIABILITIES

A composite corporate guarantee of £2,288,000 plus interest and costs has been provided as security for the bank

loans of Mantle (Woodside) Limited.

A composite corporate guarantee of £1,868,750 plus interest and costs has been provided as security for the bank

loans of Mantle (Chelmsford) Limited.

10.	RELATED PARTY DISCLOSURES

During the year the company had interest free loans with other businesses under the same control or in which the

controlling parties have a participating interest. At the year end the balances owed to and by the company were

as follows:

30.6.16

30.6.15

£

£

Amounts owed by businesses under the same control

284,178

284,178

Amounts owed by businesses controlled by one or more of the joint controlling parties of Mantle (Saffron) Limited

9,300

-

Amounts owed to businesses under the same control

537,918

537,918

11.	FIRST YEAR ADOPTION

This is the first year that the company has presented its financial statements under Financial Reporting Standard

102 1A (FRS 102 1A). The following disclosures are required in the year of transition. The last financial

statements under previous UK GAAP were for the year ended 30 June 2015 and the date of transition to FRS

102 1A was therefore 1 July 2014. As a consequence of adopting FRS 102 1A the following accounting policies

have changed to comply with that standard.

Under previous UK GAAP movements in the fair value of investment properties were not accounted for through

the profit and loss account and were taken directly to a revaluation reserve. Under FRS 102 1A these movements

are now accounted for through the profit and loss and held in a fair value reserve as part of retained earnings.

Under previous UK GAAP deferred tax was only recognised on revaluation gains when there was an agreement

to sell a revalued asset. Under FRS 102 1A deferred tax is recognised on all revaluation gains through the profit

and loss and deducted from the fair value reserve as a reserve movement. As a result of this a provision for

deferred tax has been made.

Under previous UK GAAP a blocked cash deposit account used as security for a bank loan was treated as cash at

bank. Under FRS 102 1A this has been treated as a debtor falling due after more than one year.

The following reproduces the text of the report prepared for the directors and members in respect of the

company's annual unaudited financial statements. In accordance with the Companies Act 2006, the company is

only required to file a Balance Sheet. Readers are cautioned that the Statement of Comprehensive Income and

certain other primary statements and the Report of the Directors are not required to be filed with the Registrar

of Companies.

In order to assist you to fulfil your duties under the Companies Act 2006, we have prepared for your approval the

financial statements of Mantle (Saffron) Limited for the year ended 30 June 2016 which comprise the Statement of

Comprehensive Income, Balance Sheet, and the related notes from the company's accounting records and from

information and explanations you have given us.

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

This report is made solely to the Board of Directors of Mantle (Saffron) Limited, as a body, in accordance with our terms of engagement. Our work has been undertaken solely to prepare for your approval the financial statements of Mantle (Saffron) Limited and state those matters that we have agreed to state to the Board of Directors of Mantle (Saffron) Limited, as a body, in this report in accordance with ICAEW Technical Release 07/16AAF. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than Mantle (Saffron) Limited Board of Directors, as a body, for our work or for this report.

It is your duty to ensure that Mantle (Saffron) 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 Mantle (Saffron) Limited. You consider that Mantle (Saffron) 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 Mantle (Saffron) 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.

Lanham and Company Limited

Chartered Accountants

9 Great Chesterford Court

London Road

Great Chesterford

Essex

CB10 1PF

2 March 2017