Company registration number 07612384 (England and Wales)
DOMINION PROPERTIES AND INVESTMENTS LIMITED
FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023
PAGES FOR FILING WITH REGISTRAR
DOMINION PROPERTIES AND INVESTMENTS LIMITED
CONTENTS
Page
Balance sheet
1
Notes to the financial statements
2 - 7
DOMINION PROPERTIES AND INVESTMENTS LIMITED
BALANCE SHEET
AS AT 31 MARCH 2023
31 March 2023
- 1 -
2023
2022
as restated
Notes
£
£
£
£
Fixed assets
Investment property
4
2,000,000
1,553,182
Current assets
Debtors
5
976,549
849,693
Cash at bank and in hand
48,765
64,365
1,025,314
914,058
Creditors: amounts falling due within one year
6
(29,282)
(26,899)
Net current assets
996,032
887,159
Total assets less current liabilities
2,996,032
2,440,341
Provisions for liabilities
(223,410)
(111,705)
Net assets
2,772,622
2,328,636
Capital and reserves
Called up share capital
1,800,000
1,800,000
Profit and loss reserves
972,622
528,636
Total equity
2,772,622
2,328,636
The director of the company has elected not to include a copy of the profit and loss account within the financial statements.true
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 and signed by the director and authorised for issue on 16 February 2024
Mr C Simms
Director
Company Registration No. 07612384
DOMINION PROPERTIES AND INVESTMENTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023
- 2 -
1
Accounting policies
Company information
Dominion Properties and Investments Limited is a private company limited by shares incorporated in England and Wales. The registered office is Market House, 10 Market Walk, Saffron Walden, Essex, CB10 1JZ.
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.
This company is a qualifying entity for the purposes of FRS 102, being a member of a group where the parent of that group prepares publicly available consolidated financial statements, including this company, which are intended to give a true and fair view of the assets, liabilities, financial position and profit or loss of the group. The company has therefore taken advantage of exemptions from the following disclosure requirements:
Section 7 ‘Statement of Cash Flows’: Presentation of a statement of cash flow and related notes and disclosures;
Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instrument Issues: Interest income/expense and net gains/losses for financial instruments not measured at fair value; basis of determining fair values; details of collateral, loan defaults or breaches, details of hedges, hedging fair value changes recognised in profit or loss and in other comprehensive income;
Section 33 ‘Related Party Disclosures’: Compensation for key management personnel.
The financial statements of the company are consolidated in the financial statements of Saentis Limited. These consolidated financial statements are available from its registered office, Market House, 10 Market Walk, Saffron Walden, Essex, England, CB10 1JZ.
1.2
Turnover
Turnover is recognised at the fair value of the consideration received or receivable for services provided in the normal course of business, and is shown net of VAT and any discounts.
1.3
Investment properties
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. Changes in fair value are recognised in profit or loss.
Property rented to a group entity is accounted for at fair value with changes in fair value recognised in profit or loss.
1.4
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.
DOMINION PROPERTIES AND INVESTMENTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
1
Accounting policies
(Continued)
- 3 -
1.5
Financial instruments
The company only has financial assets assets and financial liabilities of a kind that qualify as basic financial instruments. Basic financial instruments are initially recognised at transaction value and subsequently measured at their settlement value. The company has no bank loans or other more complex financial instruments that require measurement at amortised cost using the effective interest method.
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.
1.6
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.
1.7
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.
DOMINION PROPERTIES AND INVESTMENTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
1
Accounting policies
(Continued)
- 4 -
1.8
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.
The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.
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
Judgements and key sources of estimation uncertainty
In the application of the company’s accounting policies, the director is 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.
Other key sources of estimation uncertainty
Investment properties are professionally valued annually using a yield methodology. This uses market rental values capitalised at a market capitalisation rate but there is an inevitable degree of judgement involved in that the property is unique and value can only ultimately be reliably tested in the market itself. Key inputs into the valuation were:-
- annual rent per square foot of £8.27 - £12.00. A rate of £10.00 per square foot was utilised.
- capital value based on a yield of 9%.
3
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2023
2022
Number
Number
Total
1
1
4
Investment property
2023
£
Fair value
At 1 April 2022
(as restated)
1,553,182
Revaluations
446,818
At 31 March 2023
2,000,000
DOMINION PROPERTIES AND INVESTMENTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
4
Investment property
(Continued)
- 5 -
The investment property is valued annually on 31 March at fair value determined by an independent, professionally qualified RICS valuer. The valuation was undertaken in accordance with the Royal Institution of Chartered Surveyors' Appraisal and Valuation Manual. Details on the assumptions made and the key sources of estimation uncertainty are given in note 2.
The surplus on revaluation of investment property arising of £446,818 has been credited to the profit and loss for the year.
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
1,106,363
1,106,363
Accumulated depreciation
-
-
Carrying amount
1,106,363
1,106,363
5
Debtors
2023
2022
Amounts falling due within one year:
£
£
Trade debtors
294,053
144,000
Amounts owed by group undertakings
680,000
680,000
Other debtors
2,496
2,127
976,549
826,127
Deferred tax asset
23,566
976,549
849,693
6
Creditors: amounts falling due within one year
2023
2022
£
£
Trade creditors
112
Corporation tax
1,275
Other taxation and social security
24,912
23,904
Other creditors
2,983
2,995
29,282
26,899
DOMINION PROPERTIES AND INVESTMENTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 6 -
7
Related party transactions
The company is exempt from disclosing transactions entered into between wholly owned members of the same group.
An amount of £822 (2022: £822) was owed at the year end by Povami Limited, a company which is under the control of the director, Mr C Simms. No interest was charged on this loan.
8
Ultimate controllling party
The immediate controlling party is Saentis Limited, a company registered in England and Wales. Saentis Limited is the smallest and largest group for which consolidated financial statements including Dominion Properties and Investments Limited are prepared. The consolidated financial statements of Saentis Limited are available from its registered office Market House, 10 Market Walk, Saffron Walden, Essex, United Kingdom, CB10 1JZ.
The ultimate controlling party is Mr C Simms by virtue of his shareholding in Saentis Limited.
9
Prior period adjustment
A prior period adjustment has been made in respect of the revaluation of investment property held. This has arisen as a result of a professional third party valuation, with the increase in value being apportioned equally over 2 years for 31 March 2022 and 31 March 2023 respectively. The deferred tax calculated on the revalued amount has also been adjusted for.
Reconciliation of changes in equity
1 April
31 March
2021
2022
£
£
Adjustments to prior year
Revaluation of investment property
-
446,819
Deferred tax on revaluation
-
(111,705)
Total adjustments
-
335,114
Equity as previously reported
1,805,885
1,993,522
Equity as adjusted
1,805,885
2,328,636
Analysis of the effect upon equity
Profit and loss reserves
-
335,114
DOMINION PROPERTIES AND INVESTMENTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
9
Prior period adjustment
(Continued)
- 7 -
Reconciliation of changes in profit for the previous financial period
2022
£
Adjustments to prior year
Revaluation of investment property
446,819
Deferred tax on revaluation
(111,705)
Total adjustments
335,114
Profit as previously reported
140,684
Profit as adjusted
475,798
10
Audit report information
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.
Senior Statutory Auditor:
James Robert Marchant FCCA
Statutory Auditor:
MRT Accountants Limited