Company registration number 09420257 (England and Wales)
JOVO INVESTMENTS LIMITED
UNAUDITED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2023
PAGES FOR FILING WITH REGISTRAR
JOVO INVESTMENTS LIMITED
CONTENTS
Page
Statement of financial position
1 - 2
Notes to the financial statements
3 - 9
JOVO INVESTMENTS LIMITED
STATEMENT OF FINANCIAL POSITION
AS AT 30 JUNE 2023
30 June 2023
- 1 -
2023
2022
Notes
£
£
£
£
Non-current assets
Property, plant and equipment
3
45,555
87,642
Investment property
4
5,600,000
5,600,000
Investments
5
3
3
5,645,558
5,687,645
Current assets
Trade and other receivables falling due after more than one year
6
1,101,460
1,129,774
Trade and other receivables falling due within one year
6
9,268
8,580
Cash and cash equivalents
187,449
115,764
1,298,177
1,254,118
Current liabilities
7
(151,575)
(210,372)
Net current assets
1,146,602
1,043,746
Total assets less current liabilities
6,792,160
6,731,391
Non-current liabilities
8
(1,485,710)
(1,485,710)
Provisions for liabilities
(705,161)
(712,902)
Net assets
4,601,289
4,532,779
Equity
Called up share capital
3
3
Retained earnings
10
4,601,286
4,532,776
Total equity
4,601,289
4,532,779
The directors of the company have elected not to include a copy of the income statement within the financial statements.true
For the financial year ended 30 June 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.
JOVO INVESTMENTS LIMITED
STATEMENT OF FINANCIAL POSITION (CONTINUED)
AS AT 30 JUNE 2023
30 June 2023
- 2 -
The financial statements were approved by the board of directors and authorised for issue on 28 March 2024 and are signed on its behalf by:
Mr G Gojkovic
Director
Company registration number 09420257 (England and Wales)
JOVO INVESTMENTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2023
- 3 -
1
Accounting policies
Company information
Jovo Investments Limited ("The Company") holds residential properties for their rental yield and capital growth.
The Company is a private company limited by shares incorporated in England and Wales. The registered office is 18 Hyde Gardens, Eastbourne, East Sussex, BN21 4PT.
Statement of compliance
The individual financial statements of Jovo Investments Limited have been prepared in compliance with United Kingdom Accounting Standards, including Financial Reporting Standard 102, "The financial Reporting Standard applicable in the United Kingdom and the Republic of Ireland" ("FRS 102") and the Companies Act 2006.
1.1
Accounting convention
The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.
Basis of Preparation
These financial statements are prepared on a going concern basis, under the historical cost convention, as modified by the revaluation of land and buildings and to include investment properties and certain financial assets and liabilities measured at fair value through profit or loss.
Exemption for qualifying entities under FRS102
FRS 102 allows a qualifying entity certain disclosure exemptions. The company has taken advantage of the exemptions, under FRS 102 paragraph 1.12(b), from preparing a statement of cash flows and the non-disclosure of key management personnel compensation, on the basis that it is a qualifying entity and includes the company's cash flows and key management personnel compensation in the consolidated financial statements.
1.2
Going concern
Atruet the time of approving the financial statements, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.
1.3
Revenue
Revenue 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.
Revenue in relation to rental income is recognised at the fair value of the consideration received or receivable and represents the amount receivable for property lease rentals, net of discounts.
The company recognises revenue in relation to rental income on a straight line basis over the term of the lease.
1.4
Property, plant and equipment
Property, plant and equipment are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.
JOVO INVESTMENTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2023
1
Accounting policies
(Continued)
- 4 -
Assets in the course of construction are not depreciated.
Plant and machinery
5 years straight line
Fixtures, fittings & equipment
20% reducing balance
1.5
Investment properties
Investment property, which is property held to earn rentals and/or for capital appreciation, is measured using the fair value model and stated at its fair value as the reporting end date. The surplus or deficit on revaluation is recognised in the income statement.
1.6
Non-current investments
Interests in subsidiaries, associates and jointly controlled entities are initially measured at cost and subsequently measured at cost less any accumulated impairment losses. The investments are assessed for impairment at each reporting date and any impairment losses or reversals of impairment losses are recognised immediately in profit or loss.
A subsidiary is an entity controlled by the company. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.
1.7
Impairment of non-current 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.
1.8
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.
1.9
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 statement of financial position 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 trade and other receivables 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.
JOVO INVESTMENTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2023
1
Accounting policies
(Continued)
- 5 -
Basic financial liabilities
Basic financial liabilities, including trade and other payables, 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 payables 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 payables are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.
1.10
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.
Changes in the fair value of derivatives that are designated and qualify as fair value hedges are recognised in profit or loss immediately, together with any changes in the fair value of the hedged asset or liability that are attributable to the hedged risk.
1.11
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 income statement 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 arises from timing difference that are differences between taxable profits and total comprehensive income as stated in the financial statements. These timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements.
Deferred tax is recognised on all timing differences at the reporting date except for certain exceptions. Unrelieved tax losses and other deferred tax assets are only 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 tax rates and laws that have been enacted or substantively enacted by the period end and that are expected to apply to the reversal of the timing difference.
JOVO INVESTMENTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2023
1
Accounting policies
(Continued)
- 6 -
1.12
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 non-current 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.
1.13
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
2
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2023
2022
Number
Number
Total
1
3
Property, plant and equipment
Plant and machinery etc
£
Cost
At 1 July 2022 and 30 June 2023
161,390
Depreciation and impairment
At 1 July 2022
73,748
Depreciation charged in the year
42,087
At 30 June 2023
115,835
Carrying amount
At 30 June 2023
45,555
At 30 June 2022
87,642
JOVO INVESTMENTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2023
- 7 -
4
Investment property
2023
£
Fair value
At 1 July 2022 and 30 June 2023
5,600,000
Investment property comprises of three residential properties. The fair value of the investment properties have been arrived at on the basis of valuations carried out by the Directors who have an appropriate understanding of the market. The valuations were made on an open market value basis by reference to market evidence of transaction prices for similar properties. The Directors do not consider that there has been any material movement in the valuations since 2019.
5
Fixed asset investments
2023
2022
£
£
Shares in group undertakings and participating interests
3
3
6
Trade and other receivables
2023
2022
Amounts falling due within one year:
£
£
Trade receivables
7,908
6,034
Other receivables
1,360
2,546
9,268
8,580
2023
2022
Amounts falling due after more than one year:
£
£
Amounts owed by group undertakings
1,101,460
1,129,774
Total debtors
1,110,728
1,138,354
7
Current liabilities
2023
2022
£
£
Trade payables
57,084
91,475
Corporation tax
11,646
Other payables
82,845
118,897
151,575
210,372
JOVO INVESTMENTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2023
- 8 -
8
Non-current liabilities
2023
2022
£
£
Bank loans and overdrafts
1,485,710
1,485,710
Amounts included in bank loans and overdrafts in the current year relate to two mortgages on the Investments Properties. These loans were drawn down in August 2019. The loans are repayable over 360 months, with the first 120 months being interest-only payments. Loan interest is charged at 4.23% & 4.43% per annum during the 5 year Fixed Rate Period. Following the expiry of the Fixed Rate Period, interest will be charged at 3-Month Term SONIA + 3.5093% & 3-Month Term SONIA + 3.7093% per annum.
9
Deferred taxation
Deferred tax assets and liabilities are offset where the company has a legally enforceable right to do so. The following is the analysis of the deferred tax balances (after offset) for financial reporting purposes:
Liabilities
Liabilities
2023
2022
Balances:
£
£
Accelerated capital allowances
(4,047)
3,694
Investment property
709,208
709,208
705,161
712,902
2023
Movements in the year:
£
Liability at 1 July 2022
712,902
Credit to profit or loss
(7,741)
Liability at 30 June 2023
705,161
10
Reserves
Retained earnings
Included within retained earnings are non-distributable profits of £3,420,907 (2022: £3,420,907) relating to the revaluation of the investment properties.
11
Related party transactions
The following amounts were outstanding at the reporting end date:
2023
2022
Amounts due from related parties
£
£
Entities with control, joint control or significant influence over the company
1,101,460
1,129,774
JOVO INVESTMENTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2023
11
Related party transactions
(Continued)
- 9 -
Amounts owed by related parties are from Jovo Limited which is the parent company. No interest has been charged.
Other information
The company has taken advantage of the exemption under paragraph 33.1A of FRS 102 not to disclose transactions entered into between two or more members of a group where the subsidiary which is party to the transaction is wholly owned by the other party.