Company registration number 03343951 (England and Wales)
E & L ASSOCIATES (CLACTON) LIMITED
UNAUDITED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 APRIL 2023
PAGES FOR FILING WITH REGISTRAR
Richard Anthony
Chartered Accountants and Registered Auditors
E & L ASSOCIATES (CLACTON) LIMITED
CONTENTS
Page
Balance sheet
1 - 2
Notes to the financial statements
3 - 7
E & L ASSOCIATES (CLACTON) LIMITED
BALANCE SHEET
AS AT
30 APRIL 2023
30 April 2023
- 1 -
2023
2022
Notes
£
£
£
£
Fixed assets
Tangible assets
4
268,547
Investment property
5
2,287,126
1,878,802
Investments
6
2,000
2,000
2,289,126
2,149,349
Current assets
Stocks
273,213
-
Debtors
7
136,709
100,598
Cash at bank and in hand
108,682
40,156
518,604
140,754
Creditors: amounts falling due within one year
8
(197,581)
(388,091)
Net current assets/(liabilities)
321,023
(247,337)
Total assets less current liabilities
2,610,149
1,902,012
Creditors: amounts falling due after more than one year
9
(1,526,864)
(855,983)
Provisions for liabilities
(62,739)
(62,739)
Net assets
1,020,546
983,290
Capital and reserves
Called up share capital
10
10,000
10,000
Other reserves
267,466
267,466
Profit and loss reserves
743,080
705,824
Total equity
1,020,546
983,290
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 30 April 2023 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.
E & L ASSOCIATES (CLACTON) LIMITED
BALANCE SHEET (CONTINUED)
AS AT
30 APRIL 2023
30 April 2023
- 2 -
The financial statements were approved by the board of directors and authorised for issue on 4 October 2023 and are signed on its behalf by:
Mr L Swift
Director
Company registration number 03343951 (England and Wales)
E & L ASSOCIATES (CLACTON) LIMITED
BALANCE SHEET (CONTINUED)
AS AT 30 APRIL 2023
30 April 2023
- 3 -
1
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.
2
Accounting policies
Company information
E & L Associates (Clacton) Limited is a private company limited by shares incorporated in England and Wales. The registered office is 2nd Floor Gadd House, Arcadia Avenue, London, N3 2JU.
2.1
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.
The company has taken advantage of the exemption under section 399 of the Companies Act 2006 not to prepare consolidated accounts, on the basis that the group of which this is the parent qualifies as a small group. The financial statements present information about the company as an individual entity and not about its group.
2.2
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
Nil
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.
E & L ASSOCIATES (CLACTON) LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 APRIL 2023
2
Accounting policies
(Continued)
- 4 -
2.3
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. The surplus or deficit on revaluation is recognised in the profit and loss account.
Where fair value cannot be achieved without undue cost or effort, investment property is accounted for as tangible fixed assets.
2.4
Fixed asset investments
Interests in subsidiaries are initially measured at cost and subsequently measured at cost less any accumulated impairment losses. The investments are assessed for impairment at each reporting date and any impairment losses or reversals of impairment losses are recognised immediately in profit or loss.
2.5
Impairment of fixed assets
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.
2.6
Stocks
Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition.
2.7
Financial instruments
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.
2.8
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.
E & L ASSOCIATES (CLACTON) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2023
2
Accounting policies
(Continued)
- 5 -
2.9
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.
2.10
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
2.11
Foreign exchange
Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation in the period are included in profit or loss.
3
Employees
The average monthly number of persons (including directors) employed by the company during the year was 4 (2022 - 4).
2023
2022
Number
Number
Total
4
4
4
Tangible fixed assets
Land and buildings Freehold
£
Cost
At 1 May 2022
268,547
Transfers
(268,547)
At 30 April 2023
Depreciation and impairment
At 1 May 2022 and 30 April 2023
Carrying amount
At 30 April 2023
At 30 April 2022
268,547
E & L ASSOCIATES (CLACTON) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2023
- 6 -
5
Investment property
2023
£
Fair value
At 1 May 2022
1,878,802
Additions
139,777
Transfers
268,547
At 30 April 2023
2,287,126
Investment property comprises of twelve properties located in Clacton on Sea. The fair value of the investment property has been arrived at on the basis of a valuation carried out by the local estate agents in the previous years, who are not connected with the company. The valuation was made on an open market value basis by reference to market evidence of transaction prices for similar properties.
6
Fixed asset investments
2023
2022
£
£
Shares in group undertakings and participating interests
2,000
2,000
7
Debtors
2023
2022
Amounts falling due within one year:
£
£
Trade debtors
1,487
Amounts owed by group undertakings
114,197
Other debtors
21,025
100,598
136,709
100,598
8
Creditors: amounts falling due within one year
2023
2022
£
£
Bank loans and overdrafts
10,000
13,274
Trade creditors
10,719
50
Amounts owed to group undertakings and undertakings in which the company has a participating interest
157,112
284,252
Taxation and social security
987
Other creditors
18,763
90,515
197,581
388,091
E & L ASSOCIATES (CLACTON) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2023
- 7 -
9
Creditors: amounts falling due after more than one year
2023
2022
£
£
Bank loans and overdrafts
1,146,151
855,983
Other creditors
380,713
1,526,864
855,983
The company took out a Handelsbanken loan of £700,000 on the 5 August 2020 for a period of three years with interest charged at 2.25% above Bank's Base Rate payable quarterly. The loan shall be repayable in full on the Maturity Date. Handelsbanken holds number of debentures and securities including first charge over the properties owned by the company.
On the 10 May 2021, the company took up a loan of £125,000 secured on the investment property, Young Close. The loan shall be repayable in full on the Maturity date with interest charged quarterly.
The company took out an additional loan of £300,000 from Handelsbanken on the 5 December 2022 and a Pension Fund loan of £380,713 was taken out on the 22 February 2023 with interest charged at 1% above Base rate.
As for the Bounce back loan, the company continues to make monthly repayments inclusive of interest charged.
10
Called up share capital
2023
2022
£
£
Ordinary share capital
Issued and fully paid
10,000 Ordinary shares of £1 each
10,000
10,000
11
Related party transactions
As at the balance sheet date, an amount of 114,197 (2022: £259,403 owed to) was due from E & L Property Finance Limiited and an amount of £24,850 (2022: £24,850) was due to E & L Finance Limited. Both companies are wholly owned subsidiaries of this company.
At the balance sheet, an amount of £21,024 was owed by A Swift Escape Ltd, a company in which L Swift is a director.
12
Directors' transactions
At the balance sheet date, an amount of £7,858 (2022 : £68,315) was owed to both the directors B A Swift and P A Swift.