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Registration number: 12462270

Smithfest Holdings Limited

Unaudited Financial Statements

for the Year Ended 28 February 2023

Brebners
Chartered Accountants
130 Shaftesbury Avenue
London
W1D 5AR

 

Smithfest Holdings Limited

Contents

Company Information

1

Statement of Financial Position

2 to 3

Notes to the Unaudited Financial Statements

4 to 8

 

Smithfest Holdings Limited

Company Information

Directors

C Smith

K R Lewis

M L Smith

S R Smith

Registered office

130 Shaftesbury Avenue
2nd Floor
London
W1D 5EU

Accountants

Brebners
Chartered Accountants
130 Shaftesbury Avenue
London
W1D 5AR

 

Smithfest Holdings Limited

Statement of Financial Position as at 28 February 2023

Note

2023
£

2022
£

Fixed assets

 

Investment property

4

-

347,996

Other financial assets

5

8,915,672

9,466,104

 

8,915,672

9,814,100

Current assets

 

Debtors

6

62,979

-

Cash at bank and in hand

 

201,939

174,354

 

264,918

174,354

Creditors: Amounts falling due within one year

7

(7,972,457)

(8,696,637)

Net current liabilities

 

(7,707,539)

(8,522,283)

Total assets less current liabilities

 

1,208,133

1,291,817

Provisions for liabilities

9

(178,269)

(239,265)

Net assets

 

1,029,864

1,052,552

Capital and reserves

 

Called up share capital

100

100

Retained earnings

1,029,764

1,052,452

Shareholders' funds

 

1,029,864

1,052,552

For the financial year ending 28 February 2023 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 accounts for the year in question in accordance with section 476; and

The directors acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and the preparation of accounts.

 

Smithfest Holdings Limited

Statement of Financial Position as at 28 February 2023

These financial statements have been prepared in accordance with the special provisions relating to companies subject to the small companies regime within Part 15 of the Companies Act 2006 and in accordance with FRS 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'.

These financial statements have been delivered in accordance with the provisions applicable to companies subject to the small companies regime and the option not to file the Statement of Income and Retained Earnings has been taken.

Approved and authorised by the Board on 23 November 2023 and signed on its behalf by:
 

.........................................

S R Smith

Director

Company registration number: 12462270

 

Smithfest Holdings Limited

Notes to the Unaudited Financial Statements for the Year Ended 28 February 2023

1

General information

The company is a private company limited by share capital, incorporated in England and Wales.

The address of its registered office is:
130 Shaftesbury Avenue
2nd Floor
London
W1D 5EU

The principal activity of the company is that of an investment company, holding both investment property and quoted investments.

2

Accounting policies

Statement of compliance

These financial statements have been prepared in accordance with Financial Reporting Standard 102 Section 1A - 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' and the Companies Act 2006.

Basis of preparation

These financial statements have been prepared using the historical cost convention except any items disclosed in the accounting policies as being shown at fair value and are presented in sterling, which is the functional currency of the entity.

Going concern

The company has made a loss for the year ended 28 February 2023 but had net assets at that date of £1,029,864, including cash at bank amounting to £201,939.

The directors have considered the potential effect on the global investment markets for factors which could affect these markets and the directors believe that the investment portfolio is appropriately structured to cope with any market fluctuations caused by economic and worldwide uncertainties. Whilst there is no certainty as to whether current or future events will impact investment markets, the directors' view is that any impact will be manageable. The company's affairs are simplistic with expenses controllable. At 28 February the company was funded by loans from the directors of £4,905,955. The directors have confirmed that they will continue to support the company and will not call for repayment of their loans until such a time as the company has sufficient working capital.

On the basis of the above, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Accordingly, the director continues to adopt the going concern basis in preparing the financial statements.

 

Smithfest Holdings Limited

Notes to the Unaudited Financial Statements for the Year Ended 28 February 2023

Revenue recognition

Turnover comprises the fair value of the consideration received or receivable for the rents charged to tenants of the investment property on a time apportioned basis and dividends received in the ordinary course of the company's activities. Turnover is shown net of value added tax, returns, rebates and discounts.

The company recognises revenue when the amount of revenue can be reliably measured, it is probable that future economic benefits will flow to the entity and specific criteria have been met for each of the company's activities.

The company recognises rental income in the period to which it relates. The company recognises dividend income in the period that the dividend was declared.

Foreign currency transactions and balances

Transactions in foreign currencies are initially recorded at the functional currency rate prevailing at the date of the transaction. Monetary assets and liabilities denominated in foreign currencies are retranslated into the respective functional currency of the entity at the rates prevailing on the reporting period date. Non-monetary items carried at fair value that are denominated in foreign currencies are retranslated at the rate on the date when the fair value is re-measured.

Non-monetary items measured in terms of historical cost in a foreign currency are not retranslated.

Tax

The tax expense for the period comprises current and deferred tax. Tax is recognised in profit or loss, except that a charge attributable to an item of income or expense recognised as other comprehensive income is also recognised directly in other comprehensive income.

The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the reporting date in the countries where the company operates and generates taxable income.

Deferred tax is recognised in respect of all timing differences between taxable profits and profits reported in the financial statements.

Unrelieved tax losses and other deferred tax assets are recognised when 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.

Investment property

Investment properties are initially recorded at cost, which includes the purchase price and any directly attributable expenditure.

Investment properties are subsequently carried at fair value, derived from the current market prices for comparable real estate determined annually by external valuers or the directors ("the valuers"). The valuers use observable market prices, adjusted if necessary for any difference in nature, location or condition of the specific asset. Changes in fair value are recognised in profit or loss.

 

Smithfest Holdings Limited

Notes to the Unaudited Financial Statements for the Year Ended 28 February 2023

Investments

Investments in equity shares which are publicly traded or where the fair value can be measured reliably are initially measured at fair value, with changes in fair value recognised in profit or loss. Investments in equity shares which are not publicly traded and where fair value cannot be measured reliably at cost less impairment.

Interest income on debt securities, where applicable, is recognised in income using the effective interest method. Dividends on equity securities are recognised in income when receivable.

Cash and cash equivalents

Cash and cash equivalents comprise cash on hand and call deposits, and other short-term highly liquid investments that are readily convertible to a known amount of cash and are subject to an insignificant risk of change in value.

Borrowings

Interest-bearing borrowings are initially recorded at fair value, net of transaction costs. Interest-bearing borrowings are subsequently carried at amortised cost, with the difference between the proceeds, net of transaction costs, and the amount due on redemption being recognised as a charge to the income statement over the period of the relevant borrowing.

Interest expense is recognised on the basis of the effective interest method and is included in interest payable and similar charges.

Borrowings are classified as current liabilities unless the company has an unconditional right to defer settlement of the liability for at least twelve months after the reporting date.

Share capital

Ordinary shares are classified as equity. Equity instruments are measured at the fair value of the cash or other resources received or receivable, net of the direct costs of issuing the equity instruments. If payment is deferred and the time value of money is material, the initial measurement is on a present value basis.

Dividends

Dividend distribution to the company’s shareholders is recognised as a liability in the financial statements in the reporting period in which the dividends are declared.

3

Staff numbers

The average number of persons employed by the company during the year, was 0 (2022 - 0).

4

Investment properties

2023
£

At 1 March 2022

347,996

Disposals

(347,996)

At 28 February 2023

-

 

Smithfest Holdings Limited

Notes to the Unaudited Financial Statements for the Year Ended 28 February 2023

5

Investments

Quoted investments
£

Total
£

Non-current financial assets

Cost or valuation

At 1 March 2022

9,466,104

9,466,104

Additions

6,276,784

6,276,784

Fair value adjustments

(249,101)

(249,101)

Disposals

(6,578,115)

(6,578,115)

At 28 February 2023

8,915,672

8,915,672

Impairment

Carrying amount

At 28 February 2023

8,915,672

8,915,672

At 28 February 2022

9,466,104

9,466,104

6

Debtors

2023
£

2022
£

Other debtors

62,979

-

62,979

-

7

Creditors

2023
£

2022
£

Bank loans and overdrafts

3,037,092

3,013,130

Taxation and social security

9,397

42,875

Other creditors

4,925,968

5,640,632

7,972,457

8,696,637

8

Loans and borrowings

2023
£

2022
£

Current loans and borrowings

Bank overdrafts

3,037,092

3,013,130

 

Smithfest Holdings Limited

Notes to the Unaudited Financial Statements for the Year Ended 28 February 2023

9

Provisions for liabilities

Deferred tax
£

Total
£

At 1 March 2022

239,265

239,265

Increase (decrease) in existing provisions

(60,996)

(60,996)

At 28 February 2023

178,269

178,269

10

Transactions with directors

At 28 February 2023 an amount of £62,979 was due from a director (2022: £Nil). Advances of £62,979 were made in the year and repayments of £Nil were made. Interest has been charged at 2% per annum.

11

Non adjusting events after the financial period

Quoted investments are held at fair value at the year end and these could have declined materially post year end as a result of various factors that have impacted the global economy.

12

Reserves

Profit and loss account - This reserve records retained earnings and accumulated losses. Of the amounts standing to the credit of the profit and loss account an amount of £451,192 (2022: £639,296) is undistributable in accordance with Companies Act 2006.