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COMPANY REGISTRATION NUMBER: 01149209
R H DAVIES (SOUTHERN) LIMITED
FILLETED UNAUDITED FINANCIAL STATEMENTS
30 November 2022
R H DAVIES (SOUTHERN) LIMITED
STATEMENT OF FINANCIAL POSITION
30 November 2022
2022
2021
Note
£
£
£
Fixed assets
Tangible assets
4
4,372,853
3,283,237
Investments
5
12,185
17,831
-------------
-------------
4,385,038
3,301,068
Current assets
Debtors
6
1,130,870
1,464,521
Cash at bank and in hand
447,282
304,054
-------------
-------------
1,578,152
1,768,575
Creditors: amounts falling due within one year
7
1,099,762
1,705,925
-------------
-------------
Net current assets
478,390
62,650
-------------
-------------
Total assets less current liabilities
4,863,428
3,363,718
Creditors: amounts falling due after more than one year
8
199,618
232,064
Provisions
Taxation including deferred tax
402,637
154,503
-------------
-------------
Net assets
4,261,173
2,977,151
-------------
-------------
R H DAVIES (SOUTHERN) LIMITED
STATEMENT OF FINANCIAL POSITION (continued)
30 November 2022
2022
2021
Note
£
£
£
Capital and reserves
Called up share capital
62,500
62,500
Other reserves
9
1,801,428
956,861
Profit and loss account
9
2,397,245
1,957,790
-------------
-------------
Shareholders funds
4,261,173
2,977,151
-------------
-------------
These financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies' regime and in accordance with Section 1A of FRS 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'.
In accordance with section 444 of the Companies Act 2006, the statement of comprehensive income has not been delivered.
For the year ending 30 November 2022 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.
Directors' responsibilities:
- 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 ;
- The directors acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and the preparation of financial statements .
These financial statements were approved by the board of directors and authorised for issue on 23 November 2023 , and are signed on behalf of the board by:
C D M Dilks
Director
Company registration number: 01149209
R H DAVIES (SOUTHERN) LIMITED
NOTES TO THE FINANCIAL STATEMENTS
YEAR ENDED 30 NOVEMBER 2022
1. General information
The company is a private company limited by shares, registered in England and Wales. The address of the registered office is 168 Church Road, Hove, East Sussex, BN3 2DL.
2. Statement of compliance
These financial statements have been prepared in compliance with Section 1A of FRS 102, 'The Financial Reporting Standard applicable in the UK and the Republic of Ireland'.
3. Accounting policies
Basis of preparation
The financial statements have been prepared on the historical cost basis, as modified by the revaluation of certain financial assets and liabilities and investment properties measured at fair value through profit or loss.
The financial statements are prepared in sterling, which is the functional currency of the entity.
Going concern
No material uncertainties that may cast significant doubt about the ability of the company to continue as a going concern have been identified by the directors.
Judgements and key sources of estimation uncertainty
The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the amounts reported. These estimates and judgements are continually reviewed and are based on experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. Significant judgements The judgements (apart from those involving estimations) that management has made in the process of applying the entity's accounting policies and that have the most significant effect on the amounts recognised in the financial statements are as follows: ~ Investment property valuations.
Revenue recognition
Turnover is measured at the fair value of the consideration received or receivable and represents amounts receivable for services rendered, stated net of discounts and of Value Added Tax.
Income tax
The taxation expense represents the aggregate amount of current and deferred tax recognised in the reporting period. Tax is recognised in profit or loss, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. In this case, tax is recognised in other comprehensive income or directly in equity, respectively. Current tax is recognised on taxable profit for the current and past periods. Current tax is measured at the amounts of tax expected to pay or recover using the tax rates and laws that have been enacted or substantively enacted at the reporting date.
Deferred tax is recognised in respect of all timing differences at the reporting date. Unrelieved tax losses and other 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. Deferred tax is measured using the tax rates and laws that have been enacted or substantively enacted by the reporting date that are expected to apply to the reversal of the timing difference.
Tangible assets
Tangible assets are initially recorded at cost, and subsequently stated at cost less any accumulated depreciation and impairment losses. Any tangible assets carried at revalued amounts are recorded at the fair value at the date of revaluation less any subsequent accumulated depreciation and subsequent accumulated impairment losses. An increase in the carrying amount of an asset as a result of a revaluation, is recognised in other comprehensive income and accumulated in equity, except to the extent it reverses a revaluation decrease of the same asset previously recognised in profit or loss. A decrease in the carrying amount of an asset as a result of revaluation, is recognised in other comprehensive income to the extent of any previously recognised revaluation increase accumulated in equity in respect of that asset. Where a a revaluation decrease exceeds the accumulated revaluation gains accumulated in equity in respect of that asset, the excess shall be recognised in profit or loss.
Depreciation
Depreciation is calculated so as to write off the cost or valuation of an asset, less its residual value, over the useful economic life of that asset as follows:
Plant and machinery
-
33% straight line
Fixtures, fittings and equipment
-
15% reducing balance
The company does not depreciate its investment properties and although this policy is in accordance with FRS 102, it is a departure from the Companies Act 2006 requirements for all tangible assets to be depreciated. In the opinion of the directors, compliance with the standard is necessary for the financial statements to give a true and fair view.
Investment property
Investment property is initially recorded at cost, which includes purchase price and any directly attributable expenditure. Investment property is revalued to its fair value at each reporting date and any changes in fair value are recognised in profit or loss.
Investments
Fixed asset investments are initially recorded at cost, and subsequently stated at cost less any accumulated impairment losses.
Listed investments are measured at fair value with changes in fair value being recognised in profit or loss.
Impairment of fixed assets
A review for indicators of impairment is carried out at each reporting date, with the recoverable amount being estimated where such indicators exist. Where the carrying value exceeds the recoverable amount, the asset is impaired accordingly. Prior impairments are also reviewed for possible reversal at each reporting date. For the purposes of impairment testing, when it is not possible to estimate the recoverable amount of an individual asset, an estimate is made of the recoverable amount of the cash-generating unit to which the asset belongs. The cash-generating unit is the smallest identifiable group of assets that includes the asset and generates cash inflows that largely independent of the cash inflows from other assets or groups of assets. For impairment testing of goodwill, the goodwill acquired in a business combination is, from the acquisition date, allocated to each of the cash-generating units that are expected to benefit from the synergies of the combination, irrespective of whether other assets or liabilities of the company are assigned to those units.
Provisions
Provisions are recognised when the entity has an obligation at the reporting date as a result of a past event, it is probable that the entity will be required to transfer economic benefits in settlement and the amount of the obligation can be estimated reliably. Provisions are recognised as a liability in the statement of financial position and the amount of the provision as an expense. Provisions are initially measured at the best estimate of the amount required to settle the obligation at the reporting date and subsequently reviewed at each reporting date and adjusted to reflect the current best estimate of the amount that would be required to settle the obligation. Any adjustments to the amounts previously recognised are recognised in profit or loss unless the provision was originally recognised as part of the cost of an asset. When a provision is measured at the present value of the amount expected to be required to settle the obligation, the unwinding of the discount is recognised as a finance cost in profit or loss in the period it arises.
Financial instruments
Financial instruments are classified and accounted for, according to the substance of the contractual arrangement, as either financial assets, financial liabilities or equity instruments. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.
4. Tangible assets
Land and buildings
Plant and machinery
Fixtures and fittings
Total
£
£
£
£
Cost or valuation
At 1 December 2021
3,250,657
8,379
107,556
3,366,592
Additions
941
941
Revaluations
1,093,703
1,093,703
-------------
-------
----------
-------------
At 30 November 2022
4,344,360
8,379
108,497
4,461,236
-------------
-------
----------
-------------
Depreciation
At 1 December 2021
8,379
74,976
83,355
Charge for the year
5,028
5,028
-------------
-------
----------
-------------
At 30 November 2022
8,379
80,004
88,383
-------------
-------
----------
-------------
Carrying amount
At 30 November 2022
4,344,360
28,493
4,372,853
-------------
-------
----------
-------------
At 30 November 2021
3,250,657
32,580
3,283,237
-------------
-------
----------
-------------
The investment properties have been valued at July 2022 by independent valuers, Michael Jones & Company, a firm of local estate agents and property valuers who have extensive knowledge and experience in the buying, selling and valuing of property in the location of the properties held by the company. The freehold reversionary interests were valued at July 2022 by independent valuers, Julian Wilkins & Co, a firm of Chartered Surveyors who are members of the Royal Institute of Chartered Surveyors (RICS) and have knowledge of the local property market in the location of freehold reversionary interests. Accordingly, in the directors opinion, the carrying value of the investment properties and freehold reversionary interests as at 30 November 2022 is not significantly different from the open market fair values of the investment properties and reversionary interests as at the date of the valuations.
Tangible assets held at valuation
In respect of tangible assets held at valuation, the aggregate cost, depreciation and comparable carrying amount that would have been recognised if the assets had been carried under the historical cost model are as follows:
Freehold property
£
At 30 November 2022
Aggregate cost
2,147,104
Aggregate depreciation
-------------
Carrying value
2,147,104
-------------
At 30 November 2021
Aggregate cost
2,147,104
Aggregate depreciation
-------------
Carrying value
2,147,104
-------------
5. Investments
Shares in group undertakings
Shares in participating interests
Other unlisted investments
Total
£
£
£
£
Cost
At 1 December 2021
40,273
47,000
12,171
99,444
Disposals
( 45,000)
( 12,171)
( 57,171)
---------
---------
---------
---------
At 30 November 2022
40,273
2,000
42,273
---------
---------
---------
---------
Impairment
At 1 December 2021
30,088
45,000
6,525
81,613
Disposals
( 45,000)
( 6,525)
( 51,525)
---------
---------
---------
---------
At 30 November 2022
30,088
30,088
---------
---------
---------
---------
Carrying amount
At 30 November 2022
10,185
2,000
12,185
---------
---------
---------
---------
At 30 November 2021
10,185
2,000
5,646
17,831
---------
---------
---------
---------
6. Debtors
2022
2021
£
£
Trade debtors
23,948
11,940
Amounts owed by group undertakings and undertakings in which the company has a participating interest
400,000
716,375
Other debtors
706,922
736,206
-------------
-------------
1,130,870
1,464,521
-------------
-------------
7. Creditors: amounts falling due within one year
2022
2021
£
£
Bank loans and overdrafts
33,092
35,028
Trade creditors
9,347
( 3,378)
Amounts owed to group undertakings and undertakings in which the company has a participating interest
10,100
10,100
Corporation tax
90,411
25,030
Social security and other taxes
5,521
3,863
Other creditors
951,291
1,635,282
-------------
-------------
1,099,762
1,705,925
-------------
-------------
The bank loan is secured by a legal charge over specific freehold properties held by the company and a mortgage debenture incorporating a fixed and floating charge over all current and future assets of the company.
8. Creditors: amounts falling due after more than one year
2022
2021
£
£
Bank loans and overdrafts
199,618
232,064
----------
----------
Included within creditors: amounts falling due after more than one year is an amount of £45,175 (2021: £82,200) in respect of liabilities payable or repayable by instalments which fall due for payment after more than five years from the reporting date.
The bank loan is repayable by monthly installments. The interest rate on the bank loan is Base Rate plus 2.40% per annum.
9. Reserves
Other reserves (non-distributable) - This reserve is used to record changes in the fair value of investment properties, net of deferred tax. Profit and loss account - This reserve records retained earnings and accumulated losses.
10. Directors' advances, credits and guarantees
During the year the company made net advances/credits to the directors totalling £5,632. At the year end, the directors owed the company £4,749 (2021: the company owed the directors £883). The advances were made interest free and were payable on demand.
11. Related party transactions
As at 30 November 2022, Farncombe Limited, a company holding a participating interest in the Company, owed the Company £402,320 (2021: the company owed Farncombe Ltd £927,999). During the year, management charges of £60,000 (2021: £60,000) were charged to the Company by Farncombe Limited. Included within other creditors is £120,000 (2021: £120,000) for unpaid management charges. The company is exempt from disclosing related party transactions with other companies that are wholly owned.