Safehomehodge Limited - Accounts to registrar (filleted) - small 18.1

REGISTERED NUMBER: 05328145 (England and Wales)

SAFEHOMEHODGE LIMITED

UNAUDITED FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 JULY 2017

Page

Company Information

1

Balance Sheet

2

Notes to the Financial Statements

3

to

7

DIRECTOR:

G C Payne

SECRETARY:

G C Payne

REGISTERED OFFICE:

6 Rhydypenau Close

Cardiff

CF14 0NF

REGISTERED NUMBER:

05328145 (England and Wales)

ACCOUNTANTS:

Gerald Thomas

Chartered Accountants

3 New Mill Court

Swansea Enterprise Park

Swansea

SA7 9FG

FIXED ASSETS

Tangible assets

4

577,035

1,024,781

Investments

5

2

5

577,037

1,024,786

CURRENT ASSETS

Debtors

6

27,820

35,471

CREDITORS

Amounts falling due within one year

7

4,203,236

5,072,860

NET CURRENT LIABILITIES

(4,175,416

)

(5,037,389

)

TOTAL ASSETS LESS CURRENT LIABILITIES

(3,598,379

)

(4,012,603

)

CAPITAL AND RESERVES

Called up share capital

100

100

Fair value reserve

9

-

60,603

Retained earnings

(3,598,479

)

(4,073,306

)

SHAREHOLDERS' FUNDS

(3,598,379

)

(4,012,603

)

The company is entitled to exemption from audit under Section 477 of the Companies Act 2006 for the year ended 31 July 2017.

The members have not required the company to obtain an audit of its financial statements for the year ended 31 July 2017 in accordance with Section 476 of the Companies Act 2006.

The director acknowledges his 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 Income Statement has not been delivered.

The financial statements were approved by the director on 16 April 2018 and were signed by:

G C Payne - Director

1.	STATUTORY INFORMATION

Safehomehodge 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.

The presentation currency of the financial statements is the Pound Sterling (£).

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.

First year adoption of Financial Reporting Standard 102 ( FRS 102) Section 1A

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

Reporting Standard 102 Section 1A small entities (FRS 102 1A) issued by the Financial Reporting

Council. The following disclosures are required in the year of transition. The last financial statements

under the previous Financial Reporting Standard for Smaller Entities (effective January 2015) (under

UK GAAP for Smaller Entities) were for the year ended 31 July 2016 and the date of transition to FRS

102 1A was therefore 01 August 2015. No adjustments have been made as a result of the transition.

Preparation of consolidated financial statements

The financial statements contain information about Safehomehodge Limited as an individual company

and do not contain consolidated financial information as the parent of a group. The company has taken

the option under Section 398 of the Companies Act 2006 not to prepare consolidated financial

statements.

Turnover

Turnover represents amounts derived from the rental and insurance income which fall within the

company's ordinary activities after deduction of value added tax.

Revenue recognition

Revenue relating to rental and insurance income is recognised evenly over the period to which it

relates.

Where payments are received from tenants in advance, the amounts are recorded as deferred income

and included as part of Creditors due within one year.

Tangible fixed assets

The company's freehold and long leasehold buildings are treated as investment properties, as defined

by the Financial Reporting Standard 102 Section 1A "Small Entities" accordingly, they are not

depreciated. Investment properties for which fair value can be measured reliably without undue cost or

effort on an on-going basis are measured at fair value annually, with the change recognised in the

income statement. Surpluses or deficits on revaluation are then transferred from Retained Earnings to

a separate non-distributable reserve.

Investments in subsidiaries

Investments in subsidiary undertakings are recognised at cost.

Financial instruments

Basic financial assets, which include trade and other debtors and cash and bank balances, are initially

measured at transaction price 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.

Basic financial liabilities, including trade and other creditors and bank loans, 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 receipts discounted at a market rate of

interest.

Taxation

Taxation for the year comprises current and deferred tax. Tax is recognised in the Income Statement,

except to the extent that it relates to items recognised in other comprehensive income or directly in

equity.

Current or deferred taxation assets and liabilities are not discounted.

Current tax

Current tax is recognised at the amount of tax payable using the tax rates and laws that have been

enacted or substantively enacted by the balance sheet date.

Deferred tax

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

the balance sheet date.

Timing differences arise from the inclusion of income and expenses in tax assessments in periods

different from those in which they are recognised in financial statements. Deferred tax is measured

using tax rates and laws that have been enacted or substantively enacted by the year end and that are

expected to apply to the reversal of the timing difference.

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.

Going concern

The company has made a profit in the year ended 31 July 2017 but has net current liabilities and net

liabilities at the balance sheet date. The company is dependent on the continued support of its loan

providers. The director considers that this support will continue for the foreseeable future, as the

company's loan providers seek a controlled sale of the company's investment properties, (over which

the company's loan providers have a first legal charge), in the next few years.

Subject to the continuing support of its loan providers, the director is satisfied that the company has

adequate resources to continue in operational for existence for the foreseeable future. Accordingly,

the director continues to adopt the going concern basis in preparing the financial statements.

If the company were unable to continue in operational existence for the foreseeable future,

adjustments would have to be made to reduce the balance sheet values of assets to their recoverable

amounts, to provide for future liabilities that might arise and to reclassify fixed assets as current

assets.

3.	EMPLOYEES AND DIRECTORS

The average number of employees during the year was 1 .

4.	TANGIBLE FIXED ASSETS

Investment

properties

£

COST

At 1 August 2016

1,024,781

Disposals

(447,746

)

At 31 July 2017

577,035

NET BOOK VALUE

At 31 July 2017

577,035

At 31 July 2016

1,024,781

The freehold and long leasehold properties are treated as investment properties and accordingly no

depreciation has been charged. The properties were valued by the director at the balance sheet date

at open market value on the basis of existing use.

The historical cost of the investment properties is £577,035 (2016 - £1,756,092).

5.	FIXED ASSET INVESTMENTS

Shares in

group

Other

undertakings

investments

Totals

£

£

£

COST

At 1 August 2016

1

4

5

Disposals

-

(3

)

(3

)

At 31 July 2017

1

1

2

NET BOOK VALUE

At 31 July 2017

1

1

2

At 31 July 2016

1

4

5

The fixed asset investments relate to investments in the following companies.

Name of the company

£

Percentage shareholding

North Wales Estates Ltd

1

100%

Memorial Buildings (Ruthin) Management Company Limited

1

100%

2

The above investments are shown at cost.

6.

DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2017

2016

£

£

Trade debtors

-

590

Other debtors

27,820

34,881

27,820

35,471

7.

CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2017

2016

£

£

Bank loans and overdrafts

3,716,707

4,088,267

Amounts owed to related parties

90,000

584,349

Other creditors

391,969

393,284

Accruals and deferred income

4,560

6,960

4,203,236

5,072,860

8.	SECURED DEBTS

The following secured debts are included within creditors:

2017

2016

£

£

Bank loans

3,169,867

3,541,427

Loan 1 is interest free and repayments are made upon sale of the company's investment properties,

from the proceeds of the sale.

Loan 2 is a non performing loan and therefore no interest is charged on this balance.

The bank loans are secured by a first legal mortgage over the company's freehold and long leasehold

investment properties, and a first floating charge over the company's remaining assets.

9.

RESERVES

Fair

value

reserve

£

At 1 August 2016

60,603

Transfer to profit and loss

reserve

(60,603

)

At 31 July 2017

-

10.	DIRECTOR'S ADVANCES, CREDITS AND GUARANTEES

During the year invoices of £7,646 (2016 - £7,013) in respect of consultancy costs were paid to G

Payne, director via Cromhouse Management.

11.	RELATED PARTY DISCLOSURES

During the year an amount of £494,349 owing to R J Hodge Limited was written off due to the

company being dissolved on 27 February 2018.