Ravensdale Property Services Limited is a private company limited by shares incorporated in England and Wales. The registered office is Distribution House, Chemical Lane East, Stoke on Trent, Staffordshire, ST6 4FB.
The financial statements cover the company as an individual entity and are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.
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.
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, including creditors, bank loans and loans from fellow group companies, 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.
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.
Related party exemption
The company has taken advantage of exemption, under the terms of Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland', not to disclose related party transactions with wholly owned subsidiaries within the group.
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 estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are as follows.
The investment property is measured using the fair value model and as such requires significant estimation from the directors. The valuation of the investment property has been based on the values of similar properties that have previously sold and are for sale, taking account of geographical location and expected market value per square foot of the site.
Investment property comprises of land and buildings. The investment property was purchased on 13 May 2021 and as at the year end, total costs on the land and buildings amounted to £8,552,682 (2022 - £4,742,048). The directors are of the view that there is no material difference between the cost and the fair value of the investment property held at 30th April 2023.
Bank overdrafts and loans are secured by the following:
A first legal change over the freehold land and buildings at Chemical Lane, Stoke-on-Trent, ST6 4PB.
An omnibus guarantee and set off agreement dated 29th March 2018 together with such other security as the bank may from time to time hold in respect of debts and liabilities of any guarantor to the bank.
An unlimited debenture dated 1st August 2016.
As the income statement has been omitted from the filing copy of the financial statements, the following information in relation to the audit report on the statutory financial statements is provided in accordance with s444(5B) of the Companies Act 2006:
The auditor's report was unqualified.
Amounts contracted for but not provided in the financial statements:
During the prior year, the company had committed to the development of the new investment property. The development of this property was complete at 30 April 2023.
Browns Commercial Holdings Limited is regarded by the directors as being the company's ultimate parent company.
Copies of Browns Commercial Holdings Limited accounts can be obtained from Distribution House, Chemical Lane East, Stoke-On-Trent, ST6 4FB.
The ultimate controlling party is D A Brown by virtue of his majority shareholding in Browns Commercial Holdings Limited.