Shaw Corporation Ltd |
Notes to the Accounts |
for the year ended 31 March 2023 |
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1 |
Accounting policies |
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Basis of preparation |
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The accounts have been prepared under the historical cost convention and in accordance with FRS 102, The Financial Reporting Standard applicable in the UK and Republic of Ireland (as applied to small entities by section 1A of the standard). |
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Turnover |
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Turnover is measured at the fair value of the consideration received or receivable, net of discounts and value added taxes. Turnover includes revenue earned from the sale of goods and from the rendering of services. Turnover from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have transferred to the buyer. Turnover from the rendering of services is recognised by reference to the stage of completion of the contract. The stage of completion of a contract is measured by comparing the costs incurred for work performed to date to the total estimated contract costs. |
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Tangible fixed assets |
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Tangible fixed assets are measured at cost less accumulative depreciation and any accumulative impairment losses. Depreciation is provided on all tangible fixed assets, other than freehold land, at rates calculated to write off the cost, less estimated residual value, of each asset evenly over its expected useful life, as follows: |
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Office equipment |
25% reducing balance |
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Motor vehicles |
25% reducing balance |
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Long leasehold property |
Periodic re-valuation |
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Investments |
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Investments in subsidiaries, associates and joint ventures are measured at cost less any accumulated impairment losses. Listed investments are measured at fair value. Unlisted investments are measured at fair value unless the value cannot be measured reliably, in which case they are measured at cost less any accumulated impairment losses. Changes in fair value are included in the profit and loss account. |
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Work in progress |
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Where the substance of the contract is that the contractual obligations are performed gradually over time, revenue is recognised as contract services progresses to reflect the partial performance of our contractual obligation. The amount of the revenue included reflects the accrual of the right to consideration as contract services progress. |
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Debtors |
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Short term debtors are measured at transaction price (which is usually the invoice price), less any impairment losses for bad and doubtful debts. Loans and other financial assets are initially recognised at transaction price including any transaction costs and subsequently measured at amortised cost determined using the effective interest method, less any impairment losses for bad and doubtful debts. |
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Creditors |
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Short term creditors are measured at transaction price (which is usually the invoice price). Loans and other financial liabilities are initially recognised at transaction price net of any transaction costs and subsequently measured at amortised cost determined using the effective interest method. |
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Taxation |
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A current tax liability is recognised for the tax payable on the taxable profit of the current and past periods. A current tax asset is recognised in respect of a tax loss that can be carried back to recover tax paid in a previous period. Deferred tax is recognised in respect of all timing differences between the recognition of income and expenses in the financial statements and their inclusion in tax assessments. 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. Deferred tax is measured using the tax rates and laws that have been enacted or substantively enacted by the reporting date and that are expected to apply to the reversal of the timing difference, except for revalued land and investment property where the tax rate that applies to the sale of the asset is used. Current and deferred tax assets and liabilities are not discounted. |
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Provisions |
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Provisions (ie liabilities of uncertain timing or amount) are recognised when there is an obligation at the reporting date as a result of a past event, it is probable that economic benefit will be transferred to settle the obligation and the amount of the obligation can be estimated reliably. |
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2 |
Taxation |
2023 |
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2022 |
£ |
£ |
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Analysis of charge in period |
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Current tax: |
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UK corporation tax (recoverable on losses) on profits |
(30,906) |
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82,124 |
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Deferred tax: |
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Origination and reversal of timing differences |
(6,050) |
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(3,795) |
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Prior year adjustment |
(103) |
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18 |
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(37,059) |
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78,347 |
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Factors affecting tax charge for period |
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The differences between the tax assessed for the period and the standard rate of corporation tax are explained as follows: |
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2023 |
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2022 |
£ |
£ |
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Loss on ordinary activities before tax |
(176,156) |
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405,109 |
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Standard rate of corporation tax in the UK |
19.00% |
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19.00% |
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£ |
£ |
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Profit (loss) on ordinary activities multiplied by the standard rate of corporation tax |
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(33,470) |
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76,971 |
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Effects of: |
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Expenses not deductible for tax purposes |
2,564 |
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5,153 |
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Current tax (recoverable) charge for period |
(30,906) |
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82,124 |
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3 |
Employees |
2023 |
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2022 |
Number |
Number |
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Average number of persons employed (including Directors) by the company |
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6 |
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6 |
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4 |
Tangible fixed assets |
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Long leasehold properties |
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Furniture, fittings and equipment |
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Total |
£ |
£ |
£ |
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Revaluation and cost |
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At 1 April 2022 |
6,454,381 |
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419,284 |
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6,873,665 |
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Additions |
25,745 |
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10,157 |
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35,902 |
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At 31 March 2023 |
6,480,126 |
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429,441 |
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6,909,567 |
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Depreciation |
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At 1 April 2022 |
- |
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387,443 |
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387,443 |
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Charge for the year |
- |
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10,500 |
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10,500 |
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At 31 March 2023 |
- |
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397,943 |
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397,943 |
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Net book value |
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At 31 March 2023 |
6,480,126 |
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31,498 |
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6,511,624 |
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At 31 March 2022 |
6,454,381 |
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31,841 |
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6,486,222 |
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The first long leasehold property is held at the professional valuation made for the purpose of, and close to the time of, the acquisition in October 2019. The Company, as Chartered Surveyors, have reviewed the valuation and concluded that there has been no impairment of the £6,250,000 valuation as at 31 March 2023 or at the time of approval of these accounts. The Directors will in due course consider whether an updated professional valuation is required for the Balance Sheet at 31 March 2024. The second leasehold property purchased during the year to 31 March 2022 is held at cost and Directors consider no impairment has arisen. |
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5 |
Investments |
Investments in |
subsidiary |
undertaking |
£ |
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Cost |
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Share in Shaw (CMN) Ltd |
1 |
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Loan to Shaw (CMN) Ltd |
1,315,003 |
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At 31 March 2023 |
1,315,004 |
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The company owns 100% of ordinary shares in Shaw (CMN) Limited, a company incorporated in England and Wales, Company no: 14073424. |
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Consolidated accounts have not been prepared as the Directors consider they would be of limited value to the Directors or Member. |
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Shaw(CMN) Limited |
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Balance sheet as at 31 March 2023 |
£ |
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Property in course of development |
1,301,043 |
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Debtors |
13,961 |
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Loan from Shaw Corporation Limited |
(1,315,003) |
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Net assets |
1 |
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Capital and reserves |
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Called up share capital |
1 |
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Shareholder's funds |
1 |
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6 |
Debtors |
2023 |
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2022 |
£ |
£ |
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Trade debtors |
10,000 |
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110,454 |
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Other debtors |
22,345 |
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13,500 |
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Corporation tax refund |
30,906 |
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63,251 |
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123,954 |
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7 |
Creditors: amounts falling due within one year |
2023 |
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2022 |
£ |
£ |
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Trade creditors |
18,295 |
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876 |
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Loan from related party |
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1,000,000 |
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- |
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Taxation and social security costs |
24,457 |
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216,838 |
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Other creditors |
57,778 |
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214,709 |
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1,100,530 |
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432,423 |
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8 |
Revaluation reserve |
2023 |
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2022 |
£ |
£ |
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At 1 April 2022 |
6,159,934 |
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6,159,934 |
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At 31 March 2023 |
6,159,934 |
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6,159,934 |
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9 |
Capital commitments |
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There were no capital commitments contracted at 31 March 2023 (2022-£0). |
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10 |
Related party transactions |
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C J Shaw is a director of Shaw Corporation (Gibraltar) Limited and Regent Enterprise Limited, to which direct costs and consultancy fees totalling £150,000 and £15,000 respectively were paid during the year to 31 March 2023 (2022: £550,000 and £375,00). During the year an unsecured loan for £1,000,000 was taken from Regent Enterprises Limited at an interest rate of 10% pa, repayable within 12 months. |
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11 |
Controlling party |
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The entire share capital of the company is owned by Shaw Corporation (Gibraltar) Limited, a Gibraltar incorporated company of which C J Shaw is the ultimate controlling party. |
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12 |
Other information |
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Shaw Corporation Ltd is a private company limited by shares and incorporated in England and Wales. Its registered office is: |
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42 Langham Street |
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London |
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W1W 7AT |