Company Registration No. 10177102 (England and Wales)
CORE STAUNTON LIMITED
UNAUDITED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2023
PAGES FOR FILING WITH REGISTRAR
CORE STAUNTON LIMITED
CONTENTS
Page
Balance sheet
1 - 2
Notes to the financial statements
3 - 9
CORE STAUNTON LIMITED
BALANCE SHEET
AS AT
31 MAY 2023
31 May 2023
- 1 -
2023
2022
as restated
Notes
£
£
£
£
Fixed assets
Tangible assets
4
32,433
38,157
Investment property
5
16,925,000
15,370,000
16,957,433
15,408,157
Current assets
Debtors
6
192,168
266,799
Cash at bank and in hand
149,468
769,497
341,636
1,036,296
Creditors: amounts falling due within one year
7
(4,493,290)
(845,630)
Net current (liabilities)/assets
(4,151,654)
190,666
Total assets less current liabilities
12,805,779
15,598,823
Creditors: amounts falling due after more than one year
8
(7,368,641)
(11,211,723)
Provisions for liabilities
(1,279,990)
(971,976)
Net assets
4,157,148
3,415,124
Capital and reserves
Called up share capital
800
800
Revaluation reserve
3,728,634
2,799,183
Profit and loss reserves
427,714
615,141
Total equity
4,157,148
3,415,124

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 May 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.

CORE STAUNTON LIMITED
BALANCE SHEET (CONTINUED)
AS AT
31 MAY 2023
31 May 2023
- 2 -
The financial statements were approved by the board of directors and authorised for issue on 23 February 2024 and are signed on its behalf by:
Mr VH Bennett
Director
Company registration number 10177102 (England and Wales)
CORE STAUNTON LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2023
- 3 -
1
Accounting policies
Company information

Core Staunton Limited is a private company limited by shares incorporated in England and Wales. The registered office is St Johns Chambers, Love Street, Chester, CH1 1QN.

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.

These financial statements for the year ended 31 May 2023 are the first financial statements of Core Staunton Limited prepared in accordance with FRS 102, The Financial Reporting Standard applicable in the UK and Republic of Ireland. The date of transition to FRS 102 was 1 June 2021. An explanation of how transition to FRS 102 has affected the reported financial position and financial performance is given in note 11.

1.2
Turnover

Turnover is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business, and is shown net of VAT and other sales related taxes. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.

 

When cash inflows are deferred and represent a financing arrangement, the fair value of the consideration is the present value of the future receipts. The difference between the fair value of the consideration and the nominal amount received is recognised as interest income.

Rental income from letting of the company's investment properties is recognised on a straight line basis over the lease term.

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.

Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

Plant and equipment
15% reducing balance

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is credited or charged to profit or loss.

1.4
Investment property

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.

CORE STAUNTON LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2023
1
Accounting policies
(Continued)
- 4 -
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). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.

Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.

 

If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.

Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.

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.

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.

CORE STAUNTON LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2023
1
Accounting policies
(Continued)
- 5 -
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. 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.

 

The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset when the company has a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.

1.10
Leases

Rental income from operating leases is recognised on a straight line basis over the term of the relevant lease. Initial direct costs incurred in negotiating and arranging an operating lease are added to the carrying amount of the leased asset and recognised on a straight line basis over the lease term.

CORE STAUNTON LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2023
- 6 -
2
Judgements and key sources of estimation uncertainty

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.

3
Employees

The average monthly number of persons (including directors) employed by the company during the year was:

2023
2022
Number
Number
Total
4
4
4
Tangible fixed assets
Plant and machinery etc
£
Cost
At 1 June 2022 and 31 May 2023
50,581
Depreciation and impairment
At 1 June 2022
12,424
Depreciation charged in the year
5,724
At 31 May 2023
18,148
Carrying amount
At 31 May 2023
32,433
At 31 May 2022
38,157
5
Investment property
2023
£
Fair value
At 1 June 2022
15,370,000
Additions
317,535
Revaluations
1,237,465
At 31 May 2023
16,925,000
CORE STAUNTON LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2023
5
Investment property
(Continued)
- 7 -

The Directors of the company have arrived at the valuation on an open market value basis by reference to market evidence of transaction prices for similar properties.

6
Debtors
2023
2022
Amounts falling due within one year:
£
£
Trade debtors
-
0
590
Other debtors
192,168
266,209
192,168
266,799
7
Creditors: amounts falling due within one year
2023
2022
£
£
Bank loans
2,792,500
-
0
Trade creditors
10,390
43,379
Corporation tax
108,715
40,501
Other taxation and social security
53,757
29,132
Other creditors
1,527,928
732,618
4,493,290
845,630
8
Creditors: amounts falling due after more than one year
2023
2022
£
£
Bank loans and overdrafts
4,382,500
6,000,000
Other creditors
2,986,141
5,211,723
7,368,641
11,211,723
9
Loans and overdrafts
2023
2022
£
£
Bank loans
7,175,000
6,000,000
Payable within one year
2,792,500
-
0
Payable after one year
4,382,500
6,000,000

The bank loans are secured by fixed charges over the company's portfolio of investment properties.

CORE STAUNTON LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2023
- 8 -
10
Related party transactions
Transactions with related parties

The company's directors and shareholders have provided the company with unsecured interest free loans. The amount outstanding at 31 May 2023 was £4,333,000 (2022: £5,830,000). Of this amount, £1,355,581 is repayable on demand (2022: £627,000) and £2,977,419 (2022: £5,203,000) is repayable at the discretion of the company.

11
Reconciliations on adoption of FRS 102

In the year ended 31 May 2023 the company transitioned from FRS 105 to FRS 102. The impact of transition on the amounts previously reported is set out below.

Reconciliation of equity
1 June
31 May
2021
2022
Notes
£
£
Equity as reported under previous UK GAAP
373,515
615,941
Adjustments arising from transition to FRS 102:
Fair value gains
1
2,317,199
3,771,159
Deferred tax
2
(591,010)
(971,976)
Equity reported under FRS 102
2,099,704
3,415,124
Notes to reconciliations on adoption of FRS 102
1 Investment properties

Under FRS 105, investment properties are reported at cost less depreciation and impairment. Under FRS 102, investment properties must be reported at fair value with changes in fair value recognised in profit and loss.

2 Deferred tax

Under FRS 105, there is no recognition of deferred tax whereas under FRS 102, it is a requirement to account for deferred tax.

3 Revaluation Reserve

As set out in notes 1 and 2 above, under FRS 102 fair value gains on the revaluation of investment property are recognised in profit and loss and deferred tax must be recognised. As these gains and associated deferred tax provisions are not part of distributable reserves, a separate revaluation reserve has been created to ringfence the non-distributable element of retained earnings.

12
Prior period adjustment

As part of the FRS 102 transition exercise, the terms and conditions of loans from directors / shareholders were reviewed and it was confirmed that, in substance, certain elements of these loans are repayable at the discretion of the company. As such, these discretionary elements should have been presented as falling due after more than one year in previous accounts. Accordingly, a prior year adjustment (as apposed to a transition adjustment) has been made to restate the 2022 comparatives to show £5,203,000 out of the total loans of £5,830,000 as falling due after more than one year.

CORE STAUNTON LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2023
12
Prior period adjustment
(Continued)
- 9 -
Reconciliation of changes in equity
The prior period adjustments do not give rise to any effect upon equity.
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