Company Registration No. 04177588 (England and Wales)
BATES FINANCE (SOUTHEND) LTD
UNAUDITED FINANCIAL STATEMENTS
FOR THE YEAR ENDED
31 DECEMBER 2021
31 December 2021
PAGES FOR FILING WITH REGISTRAR
BATES FINANCE (SOUTHEND) LTD
COMPANY INFORMATION
Directors
ES A Belcher
Mrs AC A Clifford
Mrs KV A Pring
Secretary
Mrs HA A Belcher
Company number
04177588
Registered office
Tunworth Old Rectory
Tunworth
Hampshire
RG25 2NB
Accountants
Rickard Luckin Limited
1st Floor
County House
100 New London Road
Chelmsford
Essex
CM2 0RG
BATES FINANCE (SOUTHEND) LTD
CONTENTS
Page
Balance sheet
1 - 2
Notes to the financial statements
3 - 7
BATES FINANCE (SOUTHEND) LTD
BALANCE SHEET
AS AT
31 DECEMBER 2021
31 December 2021
- 1 -
2021
2020
Notes
£
£
£
£
Fixed assets
Investment properties
5
2,502,732
4,394,797
Investments
6
7,826
7,826
2,510,558
4,402,623
Current assets
Debtors
7
1,591,629
1,543,647
Cash at bank and in hand
2,324,523
186,166
3,916,152
1,729,813
Creditors: amounts falling due within one year
8
(764,774)
(723,666)
Net current assets
3,151,378
1,006,147
Total assets less current liabilities
5,661,936
5,408,770
Provisions for liabilities
-
0
(7,300)
Net assets
5,661,936
5,401,470
Capital and reserves
Called up share capital
2
2
Profit and loss reserves
9
5,661,934
5,401,468
Total equity
5,661,936
5,401,470

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 31 December 2021 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.

The directors acknowledge their responsibilities for complying with the requirements of the Companies Act 2006 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.

BATES FINANCE (SOUTHEND) LTD
BALANCE SHEET (CONTINUED)
AS AT
31 DECEMBER 2021
31 December 2021
- 2 -
The financial statements were approved by the board of directors and authorised for issue on 12 August 2022 and are signed on its behalf by:
ES A Belcher
Director
Company Registration No. 04177588
BATES FINANCE (SOUTHEND) LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2021
- 3 -
1
Accounting policies
Company information

Bates Finance (Southend) Ltd is a private company limited by shares incorporated in England and Wales. The registered office is Tunworth Old Rectory, Tunworth, Hampshire, RG25 2NB.

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 investment properties and certain financial instruments at fair value. The principal accounting policies adopted are set out below.

1.2
Turnover
Turnover represents rental income received from investment properties.
1.3
Investment properties

Investment property, which is property held to earn rentals and/or for capital appreciation, is initially recognised at cost, which includes the purchase cost and any directly attributable expenditure. Subsequently it is measured at fair value at the reporting end date. Changes in fair value are recognised in profit or loss.

1.4
Fixed asset investments

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.

1.5
Cash and cash equivalents

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.

1.6
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.

BATES FINANCE (SOUTHEND) LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2021
1
Accounting policies
(Continued)
- 4 -
Derecognition of financial assets

Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the company transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.

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, bank loans and loans from fellow group companies 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.

Derecognition of financial liabilities

Financial liabilities are derecognised when the company’s contractual obligations expire or are discharged or cancelled.

1.7
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.

1.8
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 taxation is provided in full in respect of taxation deferred by timing differences between the treatment of certain items for taxation and accounting purposes.  The deferred tax balance has not been discounted.

Deferred tax assets are recognised to the extent that it is probable that future taxable profits will be available from which the reversal of the underlying timing differences can be utilised.  Deferred tax assets are not discounted.
BATES FINANCE (SOUTHEND) LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2021
1
Accounting policies
(Continued)
- 5 -
1.9
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.

1.10

Restatement of profit and loss account

The comparative results in the profit and loss account have been restated to correct the split of expenditure between cost of sales, administrative expenditure and fair value gains and losses on investment properties being reclassified as part of operating profit/(loss). The directors feel that this is necessary in order for the financial statements to show a true and fair view. The effect of these adjustments have been to increase cost of sales by £32,571, reduce administrative expenditure by £32,571 and to move the fair value loss on the revaluation of investment properties of £43,508 above the operating profit line resulting in operating profit reducing by this amount.

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.

Valuation of investment properties

The valuation of investment properties are based on judgmental estimates taking into account local market conditions. A review of the property values has been carried out by the directors as at the year end date.

3
Operating profit/(loss)
2021
2020
Operating profit/(loss) for the year is stated after charging/(crediting):
£
£
Fair value (gains)/losses on investment properties
(29,467)
43,508
4
Employees

The only employees in the company during the current and prior year are the directors.

BATES FINANCE (SOUTHEND) LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2021
- 6 -
5
Investment property
2021
£
Fair value
At 1 January 2021
4,394,797
Additions
128,468
Disposals
(2,050,000)
Revaluations
29,467
At 31 December 2021
2,502,732

The fair value of the investment properties have been arrived at on the basis of a valuation carried out by the directors. The valuations have been made on an open market value basis by reference to market evidence of transaction prices for similar properties. The directors have reviewed the valuations as at 31 December 2021 and concluded that there has been no further material change in these values.

6
Fixed asset investments
2021
2020
£
£
Investments
7,826
7,826
Movements in fixed asset investments
Investments other than loans
£
Cost or valuation
At 1 January 2021 & 31 December 2021
7,826
Carrying amount
At 31 December 2021
7,826
At 31 December 2020
7,826
7
Debtors
2021
2020
Amounts falling due within one year:
£
£
Trade debtors
22
-
0
Other debtors
1,591,607
1,543,647
1,591,629
1,543,647
BATES FINANCE (SOUTHEND) LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2021
- 7 -
8
Creditors: amounts falling due within one year
2021
2020
£
£
Trade creditors
41,364
8,668
Corporation tax
59,241
40,922
Other creditors
664,169
674,076
764,774
723,666
9
Profit and loss reserves

As at 31 December 2021, the company had distributable reserves of £5,532,467 (2020: £5,352,276).

10
Related party transactions

During the year the company undertook transactions with a company related by virtue of being under the common influence of a director. These transactions comprised the loan of monies by the related company to this company. The amount due to the related company as at 31 December 2021 was £607,612 (2020: £606,709).

 

As at the 31 December 2021 the total amount due to the directors of the company were £28,256 (2020: £28,256).

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