Company registration number 01576237 (England and Wales)
REARSBY LIMITED
UNAUDITED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
PAGES FOR FILING WITH REGISTRAR
REARSBY LIMITED
CONTENTS
Page
Balance sheet
1 - 2
Statement of changes in equity
3
Notes to the financial statements
4 - 8
REARSBY LIMITED
BALANCE SHEET
AS AT
31 DECEMBER 2023
31 December 2023
- 1 -
2023
2022
Notes
£
£
£
£
Fixed assets
Tangible assets
3
19,413
6,191
Investment property
4
6,900,000
6,900,000
6,919,413
6,906,191
Current assets
Debtors
5
342,063
258,106
Cash at bank and in hand
23,796
52,711
365,859
310,817
Creditors: amounts falling due within one year
6
(1,222,201)
(1,326,674)
Net current liabilities
(856,342)
(1,015,857)
Total assets less current liabilities
6,063,071
5,890,334
Creditors: amounts falling due after more than one year
7
(179,545)
(280,247)
Provisions for liabilities
(352,380)
(348,931)
Net assets
5,531,146
5,261,156
Capital and reserves
Called up share capital
8
121,200
121,200
Revaluation reserve
2,936,840
2,916,371
Profit and loss reserves
2,473,106
2,223,585
Total equity
5,531,146
5,261,156
The directors of the company have elected not to include a copy of the profit and loss account within the financial statements.
For the financial year ended 31 December 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.
REARSBY LIMITED
BALANCE SHEET (CONTINUED)
AS AT
31 DECEMBER 2023
31 December 2023
- 2 -
The financial statements were approved by the board of directors and authorised for issue on 16 July 2024 and are signed on its behalf by:
I F Vaughan
Director
Company registration number 01576237 (England and Wales)
REARSBY LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2023
- 3 -
Share capital
Revaluation reserve
Profit and loss reserves
Total
Notes
£
£
£
£
Balance at 1 January 2022
121,200
1,712,567
2,767,920
4,601,687
Year ended 31 December 2022:
Profit and total comprehensive income
-
-
1,259,469
1,259,469
Dividends
-
-
(600,000)
(600,000)
Investment property fair value gain
-
1,203,804
(1,203,804)
-
Balance at 31 December 2022
121,200
2,916,371
2,223,585
5,261,156
Year ended 31 December 2023:
Profit and total comprehensive income
-
-
269,990
269,990
Investment property fair value gain
-
20,469
(20,469)
-
Balance at 31 December 2023
121,200
2,936,840
2,473,106
5,531,146
REARSBY LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
- 4 -
1
Accounting policies
Company information
Rearsby Limited is a private company limited by shares incorporated in England and Wales. The registered office is Compton House, 6 Hazlemere Drive, Sutton Coldfield, West Midlands, B74 2RW.
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 investment properties at fair value. The principal accounting policies adopted are set out below.
1.2
Going concern
These financial statements are prepared on the going concern basis. The director has confirmed that he will continue to support the company for the foreseeble future, by providing it with sufficient working capital as and when required to enable the company to meet its ongoing liabilities as they fall due. It is confirmed that the director will not demand repayment of this loan until the financial circumstances of the company permits.true
1.3
Tangible fixed assets
Tangible fixed assets are initially measured at cost and subsequently measured at cost, net of depreciation and any impairment losses.
Depreciation is recognised so as to write off the cost of assets less their residual values over their useful lives on the following bases:
Plant and equipment
25% Straight line
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, 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.
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.
1.6
Cash and cash equivalents
Cash at bank and in hand are basic financial assets and include cash in hand, deposits held at call with banks, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.
REARSBY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 5 -
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.
Debtors and creditors with no stated interest rate and receivable or payable within one year are recorded at transaction price. Any losses arising from impairment are recognised in the profit and loss account in other administrative expenses.
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
Employee benefits
The costs of short-term employee benefits are recognised as a liability and an expense.
1.11
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
REARSBY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 6 -
1.12
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.
2
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2023
2022
Number
Number
Total
5
5
3
Tangible fixed assets
Plant and machinery etc
£
Cost
At 1 January 2023
194,439
Additions
3,955
Transfer from investment property
20,469
At 31 December 2023
218,863
Depreciation and impairment
At 1 January 2023
188,248
Depreciation charged in the year
11,202
At 31 December 2023
199,450
Carrying amount
At 31 December 2023
19,413
At 31 December 2022
6,191
4
Investment property
2023
£
Fair value
At 1 January 2023
6,900,000
Transfer to plant and equipment
(20,469)
Revaluations
20,469
At 31 December 2023
6,900,000
REARSBY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
4
Investment property
(Continued)
- 7 -
Investment property comprises of commercial units held at Rearsby Business Park, Gaddesby Lane, Rearsby, Leicester. The fair value of the investment property has been arrived at on the basis of a valuation carried out at 31 December 2022 by Innes England, who are not connected with the company. The director's have assessed the fair value at 31 December 2023 and consider that it remains appropriate.
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
3,889,927
3,910,396
Accumulated depreciation
(1,508,419)
(1,430,620)
Carrying amount
2,381,508
2,479,776
5
Debtors
2023
2022
Amounts falling due within one year:
£
£
Trade debtors
320,881
238,989
Prepayments and accrued income
21,182
19,117
342,063
258,106
6
Creditors: amounts falling due within one year
2023
2022
£
£
Bank loans
120,000
140,000
Trade creditors
69,277
80,683
Amounts owed to group undertakings
130,099
312,705
Corporation tax
77,158
65,923
Other taxation and social security
37,547
37,467
Other creditors
428,434
509,676
Accruals and deferred income
359,686
180,220
1,222,201
1,326,674
Bank loans are secured by a legal charge over Rearsby Business Park, Gaddesby Lane, Rearsby, Leicestershire LE7 4YH and its associated assets in favour of Svenska Handelsbanken.
REARSBY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 8 -
7
Creditors: amounts falling due after more than one year
2023
2022
Notes
£
£
Bank loans and overdrafts
179,545
280,247
Bank loans are secured by a legal charge over Rearsby Business Park, Gaddesby Lane, Rearsby, Leicestershire LE7 4YH and its associated assets in favour of Svenska Handelsbanken
8
Called up share capital
2023
2022
2023
2022
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of 1p each
120,000
120,000
1,200
1,200
Deferred shares of £1 each
120,000
120,000
120,000
120,000
240,000
240,000
121,200
121,200
9
Financial commitments, guarantees and contingent liabilities
The company has entered into an agreement to reward certain directors by reference to increases in the valuation of the investment property portfolio. However, the calculation of such a reward and/or the timing of when it may be settled, are dependent upon external factors which are currently uncertain.
10
Related party transactions
2023
2022
Amounts due to related parties
£
£
Key management personnel
464,408
438,779
Other related parties
71,168
71,168
Amounts due to key management personnel comprise of an interest free loan that is repayable on demand.
Amounts due to other related parties comprise of an interest free loan that is repayable on demand.
Other information
The company has taken advantage of the exemption under the terms of FRS102 not to disclose related
party transactions with wholly owned subsidiaries within the group.