Company registration number 01786095 (England and Wales)
THE LITTLE GLOBE TRADING COMPANY LIMITED
ANNUAL REPORT AND UNAUDITED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023
PAGES FOR FILING WITH REGISTRAR
THE LITTLE GLOBE TRADING COMPANY LIMITED
CONTENTS
Page
Directors' report
1
Balance sheet
2
Notes to the financial statements
3 - 7
THE LITTLE GLOBE TRADING COMPANY LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 MARCH 2023
- 1 -
The directors present their annual report and financial statements for the year ended 31 March 2023.
Principal activities
The principal activity of the company continued to be that of a property investment company, where properties are held for the long term to produce income in the form of rental profit.
Directors
The directors who held office during the year and up to the date of signature of the financial statements were as follows:
A L Sherwood
D Sherwood
O E L Olorenshaw
D M Sherwood
(Appointed 22 July 2022)
Small companies exemption
This report has been prepared in accordance with the provisions applicable to companies entitled to the small companies exemption.
On behalf of the board
D Sherwood
Director
6 July 2023
THE LITTLE GLOBE TRADING COMPANY LIMITED
BALANCE SHEET
AS AT
31 MARCH 2023
31 March 2023
- 2 -
2023
2022
Notes
£
£
£
£
Fixed assets
Investment properties
5
3,502,499
3,467,821
Investments
6
2
2
3,502,501
3,467,823
Current assets
Debtors
8
38,378
26,995
Cash at bank and in hand
77,466
39,457
115,844
66,452
Creditors: amounts falling due within one year
9
(34,356)
(50,333)
Net current assets
81,488
16,119
Total assets less current liabilities
3,583,989
3,483,942
Provisions for liabilities
(692,454)
(519,676)
Net assets
2,891,535
2,964,266
Capital and reserves
Called up share capital
10
192
192
Profit and loss reserves
11
2,891,343
2,964,074
Total equity
2,891,535
2,964,266
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 March 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.
The financial statements were approved by the board of directors and authorised for issue on 6 July 2023 and are signed on its behalf by:
D Sherwood
Director
Company Registration No. 01786095
THE LITTLE GLOBE TRADING COMPANY LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023
- 3 -
1
Accounting policies
Company information
The Little Globe Trading Company Limited is a private company limited by shares incorporated in England and Wales. The registered office is The Little Globe, 153 Edward Street, Brighton, East Sussex, BN2 0JG.
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 comprises the fair value of the consideration received or receivable for rent and service charges in the ordinary course of the company's activities.
The company recognises revenue when the amount of revenue can be reliably measured, it is probable that future economic benefits will flow to the company and specific criteria have been met for each of the company's activities.
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:
Fixtures, fittings & equipment
25% straight line
1.4
Investment property
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.
1.5
Fixed asset investments
Interests in associates 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.
An associate is an entity, being neither a subsidiary nor a joint venture, in which the company holds a long-term interest and where the company has significant influence. The company considers that it has significant influence where it has the power to participate in the financial and operating decisions of the associate.
1.6
Financial instruments
The company has the following basic financial instruments.
THE LITTLE GLOBE TRADING COMPANY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
1
Accounting policies
(Continued)
- 4 -
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.
Basic financial liabilities
Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference shares 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.
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 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.
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.
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.
THE LITTLE GLOBE TRADING COMPANY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 5 -
3
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2023
2022
Number
Number
Total
2
1
4
Tangible fixed assets
Plant and machinery etc
£
Cost
At 1 April 2022 and 31 March 2023
6,236
Depreciation and impairment
At 1 April 2022 and 31 March 2023
6,236
Carrying amount
At 31 March 2023
At 31 March 2022
5
Investment property
2023
£
Fair value
At 1 April 2022
3,467,821
Revaluations
34,678
At 31 March 2023
3,502,499
The value of the investment properties at 31 March 2023 has been arrived at on a fair value basis by reference to the market evidence of transaction prices for similar properties by D Sherwood, a director of the company.
If investment properties were stated on an historical cost basis rather than a fair value basis, the amounts would have been included as follows:
2023
2022
£
£
Cost
275,392
275,392
Accumulated depreciation
(192,784)
(187,276)
Carrying amount
82,608
88,116
THE LITTLE GLOBE TRADING COMPANY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 6 -
6
Fixed asset investments
2023
2022
£
£
Investments in associates
2
2
7
Associates
Details of the company's associates at 31 March 2023 are as follows:
Name of undertaking
Registered office
Class of
% Held
shares held
Direct
Corkwood Services Ltd
Europa House, Goldstone Villas, Hove, East Sussex, BN3 3RQ
Ordinary £1
20.00
8
Debtors
2023
2022
Amounts falling due within one year:
£
£
Other debtors
38,378
26,995
9
Creditors: amounts falling due within one year
2023
2022
£
£
Trade creditors
29,749
Taxation and social security
32,376
18,604
Other creditors
1,980
1,980
34,356
50,333
10
Called up share capital
2023
2022
£
£
Ordinary share capital
Issued and fully paid
68 Ordinary shares of £1 each
68
68
Preference share capital
Issued and fully paid
124 Lifetime preference shares of £1 each
124
124
Total equity share capital
192
192
11
Profit and loss reserves
Included in the profit and loss account reserves are fair value revaluations of £2,534,653 (2022 : £2,672,753) which are not available for distribution to shareholders.
THE LITTLE GLOBE TRADING COMPANY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 7 -
12
Directors' transactions
Interest free loans have been granted by the company to its directors as follows:
Description
% Rate
Opening balance
Amounts advanced
Amounts repaid
Closing balance
£
£
£
£
Family loan account
-
26,995
38,378
(26,995)
38,378
26,995
38,378
(26,995)
38,378