Company Registration No. 03014555 (England and Wales)
36 BEDFORD ROW LIMITED
UNAUDITED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 28 FEBRUARY 2017
PAGES FOR FILING WITH REGISTRAR
36 BEDFORD ROW LIMITED
COMPANY INFORMATION
Directors
A Bojarski
G E Gibbs
W J H Harbage QC
P L Infield
D R F O'Dair
M R Taylor
(Appointed 21 January 2017)
K L Tompkins
R C Wilson QC
K Barry
(Appointed 31 March 2017)
Company number
03014555
Registered office
36 Bedford Row
London
WC1R 4JH
Accountants
Moore Stephens
Rutland House
Minerva Business Park
Lynch Wood
Peterborough
PE2 6PZ
36 BEDFORD ROW LIMITED
CONTENTS
Page
Balance sheet
1 - 2
Notes to the financial statements
3 - 9
36 BEDFORD ROW LIMITED
BALANCE SHEET
AS AT
28 FEBRUARY 2017
28 February 2017
- 1 -
2017
2016
as restated
Notes
£
£
£
£
Fixed assets
Tangible assets
4
56,993
53,064
Current assets
Debtors
5
114,514
176,059
Cash at bank and in hand
210,867
15,820
325,381
191,879
Creditors: amounts falling due within one year
6
(335,289)
(337,873)
Net current liabilities
(9,908)
(145,994)
Total assets less current liabilities
47,085
(92,930)
Creditors: amounts falling due after more than one year
7
(33,500)
(30,000)
Net assets/(liabilities)
13,585
(122,930)
Capital and reserves
Called up share capital
8
103
103
Profit and loss reserves
13,482
(123,033)
Total equity
13,585
(122,930)
The directors of the company have elected not to include a copy of the profit and loss account within the financial statements.true
For the financial year ended 28 February 2017 the company 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 Act 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 and delivered in accordance with the provisions applicable to companies subject to the small companies' regime.
36 BEDFORD ROW LIMITED
BALANCE SHEET (CONTINUED)
AS AT
28 FEBRUARY 2017
28 February 2017
- 2 -
The financial statements were approved by the board of directors and authorised for issue on 13 October 2017 and are signed on its behalf by:
R C Wilson QC
Director
Company Registration No. 03014555
36 BEDFORD ROW LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 28 FEBRUARY 2017
- 3 -
1
Accounting policies
Company information
36 Bedford Row Limited is a private company limited by shares incorporated in England and Wales. The registered office is 36 Bedford Row, London, WC1R 4JH.
1.1
Accounting convention
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. The principal accounting policies adopted are set out below.
These financial statements for the year ended 28 February 2017 are the first financial statements of 36 Bedford Row Limited prepared in accordance with FRS 102, The Financial Reporting Standard applicable in the UK and Republic of Ireland. The date of transition to FRS 102 was 1 March 2015. The reported financial position and financial performance for the previous period are not affected by the transition to FRS 102.
1.2
Turnover
Turnover is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business, and is shown net of VAT and other sales related taxes. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.
When cash inflows are deferred and represent a financing arrangement, the fair value of the consideration is the present value of the future receipts. The difference between the fair value of the consideration and the nominal amount received is recognised as interest income.
Income is recognised in the period in which it is received, as is customary in this sector.
1.3
Tangible fixed assets
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:
Land and buildings Leasehold
over the unexpired term of the lease (to 31 December 2018)
Plant and machinery
33% per annum, reducing balance
Fixtures, fittings & equipment
15% per annum, reducing balance
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 credited or charged to profit or loss.
36 BEDFORD ROW LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 28 FEBRUARY 2017
1
Accounting policies
(Continued)
- 4 -
1.4
Impairment of fixed assets
At each reporting period end date, the company 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). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.
Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.
If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.
Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.
1.5
Cash at bank and in hand
Cash at bank and in hand are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.
1.6
Financial instruments
The company 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 company's balance sheet when the company becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
Basic financial assets
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 using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.
Classification of financial liabilities
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 company after deducting all of its liabilities.
36 BEDFORD ROW LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 28 FEBRUARY 2017
1
Accounting policies
(Continued)
- 5 -
Basic financial liabilities
Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.
Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.
1.7
Equity instruments
Equity instruments issued by the company are recorded at the proceeds received, net of direct issue costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.
1.8
Derivatives
Derivatives are initially recognised at fair value at the date a derivative contract is entered into and are subsequently remeasured to fair value at each reporting end date. The resulting gain or loss is recognised in profit or loss immediately unless the derivative is designated and effective as a hedging instrument, in which event the timing of the recognition in profit or loss depends on the nature of the hedge relationship.
A derivative with a positive fair value is recognised as a financial asset, whereas a derivative with a negative fair value is recognised as a financial liability.
1.9
Taxation
The tax expense represents the sum of the tax currently payable and deferred tax.
Current 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 company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.
Deferred tax
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. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.
The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. 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, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset when the company has a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.
36 BEDFORD ROW LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 28 FEBRUARY 2017
1
Accounting policies
(Continued)
- 6 -
The company makes annual charges to the profit and loss account so that the cost of dilapidations incurred at the end of the lease are spread evenly over the period over which the company benefitted. This means that the dilapidations provision grows annually to equal the cost of the dilapidations at the end of the lease.
1.10
Employee benefits
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.
The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.
Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.
1.11
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
1.12
Leases
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 except where another more systematic basis is more representative of the time pattern in which economic benefits from the lease asset are consumed.
2
Judgements and key sources of estimation uncertainty
In the application of the company’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.
Key sources of estimation uncertainty
The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are as follows.
Dilapidation provision
An estimate was required to determine the cost of bringing good any dilapidations. The calculations considered the current state and future use of the property, and was a prudent estimate of the amount considered to be payable.
3
Employees
The average monthly number of persons (including directors) employed by the company during the year was 22 (2016 - 20).
36 BEDFORD ROW LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 28 FEBRUARY 2017
- 7 -
4
Tangible fixed assets
Land and buildings
Plant and machinery etc
Total
£
£
£
Cost
At 1 March 2016
61,536
160,713
222,249
Additions
11,426
21,870
33,296
At 28 February 2017
72,962
182,583
255,545
Depreciation and impairment
At 1 March 2016
19,605
149,580
169,185
Depreciation charged in the year
18,832
10,535
29,367
At 28 February 2017
38,437
160,115
198,552
Carrying amount
At 28 February 2017
34,525
22,468
56,993
At 29 February 2016
41,931
11,133
53,064
5
Debtors
2017
2016
Amounts falling due within one year:
£
£
Trade debtors
21,150
41,755
Other debtors
83,766
119,442
104,916
161,197
Deferred tax asset
9,598
14,862
114,514
176,059
6
Creditors: amounts falling due within one year
2017
2016
£
£
Bank loans and overdrafts
-
69,556
Trade creditors
130,086
141,582
Corporation tax
42,349
-
Other taxation and social security
106,549
76,003
Other creditors
56,305
50,732
335,289
337,873
36 BEDFORD ROW LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 28 FEBRUARY 2017
- 8 -
7
Creditors: amounts falling due after more than one year
2017
2016
£
£
Other creditors
33,500
30,000
8
Called up share capital
2017
2016
£
£
Ordinary share capital
Issued and fully paid
103 Ordinary shares of £1 each
103
103
103
103
9
Operating lease commitments
Lessee
At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, as follows:
2017
2016
£
£
273,912
412,346
10
Related party transactions
Remuneration of key management personnel
2017
2016
£
£
Aggregate compensation
500,605
479,840
Transactions with related parties
During the year the company entered into the following transactions with related parties:
Rent paid
2017
2016
£
£
Other related parties
136,340
106,054
36 BEDFORD ROW LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 28 FEBRUARY 2017
10
Related party transactions
(Continued)
- 9 -
The whole of the company's turnover is generated from barristers who are all shareholders in 36 Bedford Row Limited. At the year end the company owed its shareholders £1,363 (2016 £nil) and shareholders owed the company £7,408 (2016 £4,458) is respect of recoverable expenses.
At the year end key management personnel owed the company £3,224 (2016 £148).
11
Prior period adjustment
The directors have reconsidered the level of prepayments and accruals in the previous period have have identified understated prepayments of £28,737 and understated accruals of £4,000.
Expenditure and staff loans recoverable as at 29 February 2016 has also been reviewed by the directors and was considered to be overstated by £32,630.
The net position of the above adjustments was to increase losses by £7,893.
The directors have also reconsidered the presentation of funds held in trust. The funds and corresponding control account have been removed from the balance sheet at 28 February 2016; an adjustment of £236,252 was made to reduce cash held at bank and creditors. There was no effect on the profit and loss account regarding this adjustment.
Changes to the balance sheet
At 29 February 2016
As previously reported
Adjustment
As restated
£
£
£
Current assets
Debtors due within one year
179,952
(3,893)
176,059
Bank and cash
(49,836)
65,656
15,820
Creditors due within one year
Loans and overdrafts
166,696
(236,252)
(69,556)
Other creditors
(358,910)
166,596
(192,314)
Net assets
(115,037)
(7,893)
(122,930)
Capital and reserves
Profit and loss
(115,140)
(7,893)
(123,033)
Changes to the profit and loss account
Period ended 29 February 2016
As previously reported
Adjustment
As restated
£
£
£
Administrative expenses
(1,893,660)
(7,893)
(1,901,553)
Loss for the financial period
(58,405)
(7,893)
(66,298)
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