Company registration number 01501506 (England and Wales)
WEST DERBYSHIRE AUCTIONS LIMITED
UNAUDITED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023
PAGES FOR FILING WITH REGISTRAR
WEST DERBYSHIRE AUCTIONS LIMITED
CONTENTS
Page
Balance sheet
1 - 2
Notes to the financial statements
3 - 7
WEST DERBYSHIRE AUCTIONS LIMITED
BALANCE SHEET
AS AT
31 MARCH 2023
31 March 2023
- 1 -
2023
2022
Notes
£
£
£
£
Fixed assets
Tangible assets
3
85,260
85,490
Investment properties
4
2,330,000
2,330,000
Investments
5
115
115
2,415,375
2,415,605
Current assets
Debtors
6
4,634
4,078
Cash at bank and in hand
55,403
46,283
60,037
50,361
Creditors: amounts falling due within one year
7
(91,260)
(119,314)
Net current liabilities
(31,223)
(68,953)
Total assets less current liabilities
2,384,152
2,346,652
Creditors: amounts falling due after more than one year
8
(838,000)
(800,000)
Provisions for liabilities
9
(248,000)
(248,000)
Net assets
1,298,152
1,298,652
Capital and reserves
Called up share capital
10
100
100
Revaluation reserve
1,195,926
1,195,926
Profit and loss reserves
102,126
102,626
Total equity
1,298,152
1,298,652
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.
WEST DERBYSHIRE AUCTIONS LIMITED
BALANCE SHEET (CONTINUED)
AS AT
31 MARCH 2023
31 March 2023
- 2 -
The financial statements were approved by the board of directors and authorised for issue on 7 November 2023 and are signed on its behalf by:
L A Stout
Director
Company Registration No. 01501506
WEST DERBYSHIRE AUCTIONS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023
- 3 -
1
Accounting policies
Company information
West Derbyshire Auctions Limited is a private company limited by shares incorporated in England and Wales. The registered office is Heywood House, Main Road, Grindleford, Hope Valley, S32 2JN.
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 investment properties and certain financial instruments at fair value. The principal accounting policies adopted are set out below.
1.2
Turnover
Turnover is attributable to the principal activity and achieved in the United Kingdom
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.
Investment properties and freehold land are included in the balance sheet at their fair value.
Freehold land
Not depreciated
Plant and machinery
20% reducing balance
1.4
Investment properties
Investment property, 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.
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).
1.6
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.
WEST DERBYSHIRE AUCTIONS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
1
Accounting policies
(Continued)
- 4 -
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, 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.
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.
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. 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 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.
WEST DERBYSHIRE AUCTIONS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
1
Accounting policies
(Continued)
- 5 -
1.10
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.
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
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2023
2022
Number
Number
Total
2
3
Tangible fixed assets
Land and buildings
Plant and machinery
Total
£
£
£
Cost
At 1 April 2022 and 31 March 2023
84,338
1,800
86,138
Depreciation and impairment
At 1 April 2022
648
648
Depreciation charged in the year
230
230
At 31 March 2023
878
878
Carrying amount
At 31 March 2023
84,338
922
85,260
At 31 March 2022
84,338
1,152
85,490
4
Investment property
2023
£
Fair value
At 1 April 2022 and 31 March 2023
2,330,000
The fair value of the investment properties has been arrived at on the basis of valuations carried out at 9 April 2021 and 15 April 2021 by Kemsley LLP Property Consultants, 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. In the opinion of the directors this represents their open market value as at 31 March 2023.
On an historical cost basis these would have been included at an original cost of £909,174.
WEST DERBYSHIRE AUCTIONS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 6 -
5
Fixed asset investments
2023
2022
£
£
Investments
115
115
Movements in fixed asset investments
Investments other than loans
£
Cost or valuation
At 1 April 2022 & 31 March 2023
115
Carrying amount
At 31 March 2023
115
At 31 March 2022
115
6
Debtors
2023
2022
Amounts falling due within one year:
£
£
Other debtors
4,634
4,078
7
Creditors: amounts falling due within one year
2023
2022
£
£
Corporation tax
701
Other creditors
91,260
118,613
91,260
119,314
8
Creditors: amounts falling due after more than one year
2023
2022
£
£
Bank loans
200,000
800,000
Other creditors
638,000
838,000
800,000
The bank loans are secured on the investment properties.
WEST DERBYSHIRE AUCTIONS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 7 -
9
Provisions for liabilities
2023
2022
£
£
Deferred tax liabilities
248,000
248,000
10
Called up share capital
2023
2022
£
£
Issued and fully paid
100 Ordinary shares of £1 each
100
100
11
Related party transactions
Management fees of £Nil (2022: £4,000) were paid to the director of the company L A Stout and £Nil (2022: £9,000) to the director of the company J C Stout. At the year end the company owed Dutycourse Limited £638,000 (2022: £30,000), a company in which L A Stout is also a director.