Company registration number 01373692 (England and Wales)
LAWN IMPERIAL LIMITED
UNAUDITED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 OCTOBER 2021
PAGES FOR FILING WITH REGISTRAR
LAWN IMPERIAL LIMITED
CONTENTS
Page
Balance sheet
1 - 2
Notes to the financial statements
3 - 7
LAWN IMPERIAL LIMITED
BALANCE SHEET
AS AT
31 OCTOBER 2021
31 October 2021
page 1
2021
2020
Notes
£
£
£
£
Fixed assets
Tangible assets
4
2,838,218
2,838,929
Current assets
Debtors
5
382,650
441,604
Cash at bank and in hand
1,199,763
1,290,629
1,582,413
1,732,233
Creditors: amounts falling due within one year
6
(228,151)
(368,373)
Net current assets
1,354,262
1,363,860
Total assets less current liabilities
4,192,480
4,202,789
Creditors: amounts falling due after more than one year
7
(1,090,144)
(1,177,307)
Provisions for liabilities
(985)
(1,120)
Net assets
3,101,351
3,024,362
Capital and reserves
Called up share capital
50
50
Capital redemption reserve
15,368
15,368
Profit and loss reserves
3,085,933
3,008,944
Total equity
3,101,351
3,024,362
The director of the company has elected not to include a copy of the profit and loss account within the financial statements.true
For the financial year ended 31 October 2021 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.
The director acknowledges his responsibilities for complying with the requirements of the Companies Act 2006 with respect to accounting records and the preparation of financial statements.
The member has 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.
LAWN IMPERIAL LIMITED
BALANCE SHEET (CONTINUED)
AS AT
31 OCTOBER 2021
31 October 2021
page 2
The financial statements were approved and signed by the director and authorised for issue on 6 September 2022
P.V. Dade
Director
Company Registration No. 01373692
LAWN IMPERIAL LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 OCTOBER 2021
page 3
1
Accounting policies
Company information
Lawn Imperial Limited is a private company limited by shares incorporated in England and Wales. The registered office is Ground Floor, 1 - 7 Station Road, Crawley, West Sussex, RH10 1HT.
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, modified to include the revaluation of freehold properties and to include investment properties and certain financial instruments at fair value. The principal accounting policies adopted are set out below.
1.2
Turnover
Turnover represents amounts receivable for the rental of commercial property and is recognised in accordance with periods of occupation.
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 Freehold
No depreciation provided
Plant and machinery
33.3% reducing balance
Fixtures, fittings & equipment
10% reducing balance
No depreciation is provided in respect of freehold land and buildings. The freehold land and buildings are carried in the accounts at historic cost. This is a departure from the general requirement of the Companies Act 2006 for all tangible assets to be depreciated, however, the director is of the opinion that the departure is necessary in order to give a true and fair view as the resulting charge would be immaterial due both to the length of the remaining useful economic life of the assets and the fact that the estimated residual value of the assets is not materially different from the carrying amounts. In the opinion of the director the freehold properties are worth in excess of their carrying value.
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.
1.4
Fixed asset investments
Fixed asset investments are initially measured at transaction price excluding transaction costs, and are subsequently measured at fair value at each reporting date. Changes in fair value are recognised in profit or loss. Transaction costs are expensed to profit or loss as incurred.
LAWN IMPERIAL LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2021
1
Accounting policies
(Continued)
page 4
1.5
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.
1.6
Cash at bank and in hand
Cash and cash equivalents 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.
1.7
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.
Basic financial liabilities
Basic financial liabilities, including 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 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.
LAWN IMPERIAL LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2021
1
Accounting policies
(Continued)
page 5
1.8
Equity instruments
Equity instruments issued by the company are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.
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.
2
Judgements and key sources of estimation uncertainty
In the application of the company’s accounting policies, the director is 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.
3
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2021
2020
Number
Number
Total
1
LAWN IMPERIAL LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2021
page 6
4
Tangible fixed assets
Land and buildings
Plant and machinery etc
Total
£
£
£
Cost
At 1 November 2020 and 31 October 2021
2,833,037
70,419
2,903,456
Depreciation and impairment
At 1 November 2020
64,527
64,527
Depreciation charged in the year
711
711
At 31 October 2021
65,238
65,238
Carrying amount
At 31 October 2021
2,833,037
5,181
2,838,218
At 31 October 2020
2,833,037
5,892
2,838,929
5
Debtors
2021
2020
Amounts falling due within one year:
£
£
Trade debtors
25,473
52,278
Other debtors
357,177
389,326
382,650
441,604
6
Creditors: amounts falling due within one year
2021
2020
£
£
Bank loans
93,759
91,276
Trade creditors
2,005
Taxation and social security
18,620
178,308
Other creditors
115,772
96,784
228,151
368,373
The bank loan and overdraft facility are secured on the freehold land and buildings of the company.
LAWN IMPERIAL LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2021
page 7
7
Creditors: amounts falling due after more than one year
2021
2020
£
£
Bank loans and overdrafts
1,008,883
1,096,046
Other creditors
81,261
81,261
1,090,144
1,177,307
The bank loan and overdraft facility are secured on the freehold land and buildings of the company. The bank loan is due to be repaid within 5 years.
8
Related party transactions
During the year the company entered into the following transactions with related parties:
During the year the company paid for expenses totalling £nil (2020 £18,373) on behalf of Provincial & Country Estates Limited, a company under common control. Provincial & Country Estates Limited repaid £nil (2020: £nil) during the year in respect of these expenses. No interest is paid on this loan and the loan is repayable on demand. At 31 October 2021 Provincial & Country Estates Limited owed the company £293,539 (2020: £293,539).
During a previous year, the company secretary made a loan of £130,023 to the company. No interest was paid on this loan during the year. At the balance sheet date £81,261 (2020: £81,261) was outstanding to the company secretary.
At the balance sheet date the director owed the company £37,265 (2020: £65,643). The loan is interest free and is repayable on demand.
9
Covid-19
During this last year the company has experienced a continued downturn in rental income due to the impact of Coronavirus (COVID-19). However, going forward, due to the strength of the rental market, the director is hopeful that rental income will return to normal for the coming year. No adjustments have therefore been made to any figures in the accounts as a result of the pandemic.