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REGISTERED NUMBER: 03620786 (England and Wales)












AUDITED FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 OCTOBER 2023

FOR

SHIELD PROPERTIES LIMITED

SHIELD PROPERTIES LIMITED (REGISTERED NUMBER: 03620786)

CONTENTS OF THE FINANCIAL STATEMENTS
for the year ended 31 October 2023










Page

Company Information 1

Balance Sheet 2

Notes to the Financial Statements 3


SHIELD PROPERTIES LIMITED

COMPANY INFORMATION
for the year ended 31 October 2023







DIRECTORS: C R F Shield
J Cooper





REGISTERED OFFICE: 365 Fosse Way
Syston
Leicestershire
LE7 1NL





REGISTERED NUMBER: 03620786 (England and Wales)





AUDITORS: Magma Audit LLP (part of the Dains Group)
Chartered Accountants
Statutory Auditor
Unit 2, Charnwood Edge Business Park
Syston Road
Leicestershire
LE7 4UZ

SHIELD PROPERTIES LIMITED (REGISTERED NUMBER: 03620786)

BALANCE SHEET
31 October 2023

2023 2022
Notes £    £   
FIXED ASSETS
Tangible assets 4 1,401,393 679,918
Investment property 5 20,066,000 20,066,000
21,467,393 20,745,918

CURRENT ASSETS
Stocks 738,685 174,930
Debtors 6 1,671,433 2,266,831
Cash at bank 228,121 211,692
2,638,239 2,653,453
CREDITORS
Amounts falling due within one year 7 (5,105,690 ) (4,383,244 )
NET CURRENT LIABILITIES (2,467,451 ) (1,729,791 )
TOTAL ASSETS LESS CURRENT
LIABILITIES

18,999,942

19,016,127

CREDITORS
Amounts falling due after more than one
year

8

(872,577

)

(1,429,643

)

PROVISIONS FOR LIABILITIES 10 (1,542,065 ) (1,542,065 )
NET ASSETS 16,585,300 16,044,419

CAPITAL AND RESERVES
Called up share capital 10,000 10,000
Share premium 4,067,078 4,067,078
Fair value reserve 8,539,439 8,539,439
Retained earnings 3,968,783 3,427,902
SHAREHOLDERS' FUNDS 16,585,300 16,044,419

The financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime.

In accordance with Section 444 of the Companies Act 2006, the Statement of Income and Retained Earnings has not been delivered.

The financial statements were approved by the Board of Directors and authorised for issue on 30 July 2024 and were signed on its behalf by:





C R F Shield - Director


SHIELD PROPERTIES LIMITED (REGISTERED NUMBER: 03620786)

NOTES TO THE FINANCIAL STATEMENTS
for the year ended 31 October 2023


1. STATUTORY INFORMATION

Shield Properties Limited is a private limited company, limited by shares, registered in England and Wales. Its registered office address is 365 Fosse Way, Syston, Leicestershire LE7 1NL and the registered number is 03620786.

2. ACCOUNTING POLICIES

Basis of preparing the financial statements
These financial statements have been prepared in accordance with Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" including the provisions of Section 1A "Small Entities" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention as modified by the revaluation of certain assets.

The company has not prepared group accounts on the basis that it qualifies as a small group.

The financial statements are prepared in sterling, which is the functional currency of the company, and rounded to the nearest £.

Going concern
The company had net current liabilities at the year end. Notwithstanding this, the directors believe that it is appropriate to adopt the going concern basis in the preparation of the financial statements. At 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.

Turnover
Turnover represents rents receivable.

Tangible fixed assets
Tangible fixed assets under the cost model, other than investment properties, are stated at historical cost less accumulated depreciation and any accumulated impairment losses. Historical cost includes expenditure that is directly attributable to bringing the asset to the condition necessary for it to be capable of operating in the manner intended by management.

Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, using the straight-line method.

Depreciation is provided on the following basis:

Assets in the course of constructionNil

The assets residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.

Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in the Statement of Comprehensive Income.

Investment property
The investment property is carried at fair value and derived from the current market rents and investment property yields for comparable real estate, adjusted if necessary for any difference in the nature, location or condition of the specific asset. No depreciation is provided. Changes in fair value are recognised in the Statement of Comprehensive Income.

Stocks
Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost is based on the cost of purchase on a first in, first out basis. Work in progress and finished goods include labour and attributable overheads.

At each balance sheet date, stocks are assessed for impairment. If stock is impaired, the carrying amount is reduced to its selling price less costs to complete and sell. The impairment loss is recognised immediately in profit or loss.

SHIELD PROPERTIES LIMITED (REGISTERED NUMBER: 03620786)

NOTES TO THE FINANCIAL STATEMENTS - continued
for the year ended 31 October 2023


2. ACCOUNTING POLICIES - continued

Financial instruments
The Company only enters into basic financial instrument transactions that result in the recognition of financial assets and liabilities like trade and other debtors and creditors, loans from banks and other third parties, loans to related parties and investments in non-puttable ordinary shares.

Financial assets that are measured at cost and amortised cost are assessed at the end of each reporting period for objective evidence of impairment. If objective evidence of impairment is found, an impairment loss is recognised in profit or loss.

Financial assets and liabilities are offset and the net amount reported in the Balance Sheet when there is an 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.

Debtors
Basic financial assets, including trade and other debtors, are initially recognised at transaction price, 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. Such assets are subsequently carried at amortised cost using the effective interest method, less any impairment.

Cash and cash equivalents
Cash and cash equivalents are represented by cash in hand, deposits held at call with financial institutions, and other short-term highly liquid investments that mature in no more than three months from the date of acquisition and that are readily convertible to known amounts of cash with insignificant risk of change in value.

Creditors
Basic financial liabilities, including trade and other creditors, loans from third parties and loans from related parties, 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. Such instruments are subsequently carried at amortised cost using the effective interest method, less any impairment.

Taxation
The tax expense for the year comprises current and deferred tax.

Tax is recognised in profit or loss except that a change attributable to an item of income and expense recognised as other comprehensive income or to an item recognised directly in equity is also recognised in other comprehensive income or directly in equity respectively.

Deferred tax balances are recognised in respect of all timing differences that have originated but not reversed by the Balance Sheet date, except that:
- The recognition of deferred tax assets is limited to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits; and
- Any deferred tax balances are reversed if and when all conditions for retaining associated tax allowances have been met.

Both current and deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the balance sheet date.

Borrowing costs
All borrowing costs are recognised in the Statement of Comprehensive Income in the year in which they are incurred.

Provisions for liabilities
Provisions are made where an event has taken place that gives the Company a legal or constructive obligation that probably requires settlement by a transfer of economic benefit, and a reliable estimate can be made of the amount of the obligation.

Provisions are charged as an expense to the Statement of Comprehensive Income in the year that the company becomes aware of the obligation, and are measured at the best estimate at the Balance Sheet date of the expenditure required to settle the obligation, taking into account relevant risks and uncertainties.

When payments are eventually made, they are charged to the provision carried in the Balance Sheet.

SHIELD PROPERTIES LIMITED (REGISTERED NUMBER: 03620786)

NOTES TO THE FINANCIAL STATEMENTS - continued
for the year ended 31 October 2023


3. EMPLOYEES AND DIRECTORS

The average number of employees during the year was NIL (2022 - NIL).

4. TANGIBLE FIXED ASSETS
Assets in
the
course of
construction
£   
COST
At 1 November 2022 679,918
Additions 721,475
At 31 October 2023 1,401,393
NET BOOK VALUE
At 31 October 2023 1,401,393
At 31 October 2022 679,918

5. INVESTMENT PROPERTY
Total
£   
COST OR VALUATION
At 1 November 2022
and 31 October 2023 20,066,000
NET BOOK VALUE
At 31 October 2023 20,066,000
At 31 October 2022 20,066,000

Cost or valuation at 31 October 2023 is represented by:
£   
Valuation in 2014 406,396
Valuation in 2017 4,406,435
Valuation in 2020 2,524,830
Valuation in 2021 1,194,833
Cost 11,533,506
20,066,000

The investment properties where valued by Savills in 2021 and have subsequently been valued by a director.

6. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
2023 2022
£    £   
Trade debtors 2,089 15,343
Amounts owed by participating interests 1,665,177 2,233,534
Other debtors - 746
VAT - 17,208
Prepayments 4,167 -
1,671,433 2,266,831

SHIELD PROPERTIES LIMITED (REGISTERED NUMBER: 03620786)

NOTES TO THE FINANCIAL STATEMENTS - continued
for the year ended 31 October 2023


7. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
2023 2022
£    £   
Bank loans and overdrafts 549,131 78,617
Trade creditors 85,040 60,118
Tax 207,206 103,155
VAT 13,882 -
Amounts owed to related party undertakings 4,157,875 4,044,255
Accruals and deferred income 92,556 97,099
5,105,690 4,383,244

8. CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR
2023 2022
£    £   
Bank loans - 1-2 years 872,577 1,429,643

9. SECURED DEBTS

The following secured debts are included within creditors:

2023 2022
£    £   
Bank loans 1,421,708 1,508,260

The bank loan has been guaranteed by Shield Engineering (Syston) Limited, a related party undertaking under common control. The guarantee was made to National Westminster Bank plc for £1.5 million.

10. PROVISIONS FOR LIABILITIES
2023 2022
£    £   
Deferred tax 1,542,065 1,542,065

Deferred
tax
£   
Balance at 1 November 2022 1,542,065
Balance at 31 October 2023 1,542,065

11. DISCLOSURE UNDER SECTION 444(5B) OF THE COMPANIES ACT 2006

The Report of the Auditors was unqualified.

Luke Turner FCA FCCA (Senior Statutory Auditor)
for and on behalf of Magma Audit LLP (part of the Dains Group)

12. OTHER FINANCIAL COMMITMENTS

The Company has given a guarantee to National Westminster Bank plc for a loan of £7.6 million (2022 - £7.6 million) to Shield Engineering (Syston) Limited, a related party undertaking under common control. The guarantee is secured on the Company's investment properties.

13. RELATED PARTY DISCLOSURES

The company has taken advantage of exemption, under the terms of Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland', not to disclose related party transactions with wholly owned subsidiaries within the group.

SHIELD PROPERTIES LIMITED (REGISTERED NUMBER: 03620786)

NOTES TO THE FINANCIAL STATEMENTS - continued
for the year ended 31 October 2023


13. RELATED PARTY DISCLOSURES - continued

During the year the company had transactions with the following related companies, all ultimately
controlled by C R F Shield.

2023 2022
£ £
Rent received from Shield Engineering (Syston) Limited 199,200 199,200
Amounts due from Shield Engineering (Syston) Limited 1,484,482 2,172,239
Rent received from Woolley GMC Engineering Limited 170,000 170,000
Amounts due to Woolley GMC Engineering Limited (350,000 ) (350,000 )
Amounts due from Burrows & Smith Limited 132,000 -
Amounts due to Burrows & Smith Limited (431,592 ) (424,616 )
Amounts due from C R Shield Holdings Limited 48,695 48,695
Amounts due to R A Shield Holdings Limited (3,297,509 ) (3,269,639 )
Amounts due from Shield Manufacturing Technologies Limited 78,775 -
Amounts due from Bridge Aluminium Limited - 19,500
Rent received from Bridge Aluminium Limited 78,000 78,000


14. ULTIMATE CONTROLLING PARTY

The company is a subsidiary of Shield Properties Holdings Limited, which is ultimately controlled by C R F Shield.