Registered number: 00392850
Cannon Freeholds Ltd
Unaudited
Financial statements
Information for filing with the registrar
For the year ended 30 November 2023
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Cannon Freeholds Ltd
Registered number: 00392850
Balance sheet
As at 30 November 2023
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Debtors: amounts falling due within one year
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Creditors: amounts falling due within one year
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Total assets less current liabilities
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Creditors: amounts falling due after more than one year
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Provisions for liabilities
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Page 1
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Cannon Freeholds Ltd
Registered number: 00392850
Balance sheet (continued)
As at 30 November 2023
The directors consider that the Company is entitled to exemption from audit under section 477 of the Companies Act 2006 and members have not required the Company to obtain an audit for the year in question in accordance with section 476 of the Companies Act 2006.
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 financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies regime and in accordance with the provisions of FRS 102 Section 1A - small entities.
The financial statements have been delivered in accordance with the provisions applicable to companies subject to the small companies regime.
The Company has opted not to file the statement of comprehensive income in accordance with provisions applicable to companies subject to the small companies' regime.
The financial statements were approved and authorised for issue by the board and were signed on its behalf on 7 March 2024.
The notes on pages 4 to 12 form part of these financial statements.
Page 2
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Cannon Freeholds Ltd
Statement of changes in equity
For the year ended 30 November 2023
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Comprehensive income for the year
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Nominal value of shares purchased
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Total comprehensive income for the year
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Contributions by and distributions to owners
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Transfer to/from profit and loss account
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Comprehensive income for the year
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Total comprehensive income for the year
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Transfer to/from profit and loss account
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The notes on pages 4 to 12 form part of these financial statements.
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Page 3
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Cannon Freeholds Ltd
Notes to the financial statements
For the year ended 30 November 2023
The company is a private limited company, incorporated and domiciled in England and Wales. The principal place of business is the same as shown on company information page
2.Accounting policies
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Basis of preparation of financial statements
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The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Section 1A of Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and the Companies Act 2006.
The following principal accounting policies have been applied:
Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Company and the revenue can be reliably measured. Revenue is measured as the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. The following criteria must also be met before revenue is recognised:
Rendering of services
Revenue from a contract to provide services is recognised in the period in which the services are provided in accordance with the stage of completion of the contract when all of the following conditions are satisfied:
∙the amount of revenue can be measured reliably;
∙it is probable that the Company will receive the consideration due under the contract;
∙the stage of completion of the contract at the end of the reporting period can be measured reliably; and
∙the costs incurred and the costs to complete the contract can be measured reliably.
Interest income is recognised in profit or loss using the effective interest method.
Finance costs are charged to profit or loss over the term of the debt using the effective interest method so that the amount charged is at a constant rate on the carrying amount. Issue costs are initially recognised as a reduction in the proceeds of the associated capital instrument.
All borrowing costs are recognised in profit or loss in the year in which they are incurred.
Page 4
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Cannon Freeholds Ltd
Notes to the financial statements
For the year ended 30 November 2023
2.Accounting policies (continued)
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Current and deferred taxation
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The tax expense for the year comprises current and deferred tax. Tax is recognised in profit or loss except that a charge 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.
The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the balance sheet date in the countries where the Company operates and generates income.
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.
Deferred tax balances are not recognised in respect of permanent differences except in respect of business combinations, when deferred tax is recognised on the differences between the fair values of assets acquired and the future tax deductions available for them and the differences between the fair values of liabilities acquired and the amount that will be assessed for tax. Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the balance sheet date.
Tangible fixed assets under the cost model 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 location and 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:
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 profit or loss.
Investment property is carried at fair value determined annually by the directors 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 profit or loss.
Page 5
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Cannon Freeholds Ltd
Notes to the financial statements
For the year ended 30 November 2023
2.Accounting policies (continued)
Investments in listed company shares are remeasured to market value at each balance sheet date. Gains and losses on remeasurement are recognised in profit or loss for the period.
Short-term debtors are measured at transaction price, less any impairment. Loans receivable are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method, less any impairment.
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Cash and cash equivalents
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Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours. Cash equivalents are 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.
Short-term creditors are measured at the transaction price. Other financial liabilities, including bank loans, are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method.
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Provisions for liabilities
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Provisions are recognised when an event has taken place that gives rise to a legal or constructive obligation, a transfer of economic benefits is probable and a reliable estimate can be made.
Provisions are measured as the best estimate of the amount required to settle the obligation, taking into account the related risks and uncertainties.
Increases in provisions are generally charged as an expense to profit or loss.
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 ordinary shares.
Investments in non-derivative instruments that are equity to the issuer are measured:
- at fair value with changes recognised in the Statement of comprehensive income if the shares are publicly traded or their fair value can otherwise be measured reliably;
- at cost less impairment for all other investments.
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The average monthly number of employees, including directors, during the year was 2 (2022 - 2).
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Page 6
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Cannon Freeholds Ltd
Notes to the financial statements
For the year ended 30 November 2023
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Charge for the year on owned assets
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Page 7
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Cannon Freeholds Ltd
Notes to the financial statements
For the year ended 30 November 2023
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Freehold investment property
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Long term leasehold investment property
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The 2023 valuations were made by the directors, on an open market value for existing use basis.
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Prepayments and accrued income
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Cash and cash equivalents
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Page 8
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Cannon Freeholds Ltd
Notes to the financial statements
For the year ended 30 November 2023
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Creditors: Amounts falling due within one year
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Other taxation and social security
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Accruals and deferred income
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Creditors: Amounts falling due after more than one year
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The following liabilities were secured:
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Details of security provided:
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The bank loan is secured on 16 and 32 Ainger Road, London.
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The aggregate amount of liabilities repayable wholly or in part more than five years after the balance sheet date is:
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The loan is repayable by November 2033 in equal instalments attracting interest at 2.5% above bank base rate.
Page 9
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Cannon Freeholds Ltd
Notes to the financial statements
For the year ended 30 November 2023
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Analysis of the maturity of loans is given below:
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Amounts falling due within one year
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Amounts falling due 1-2 years
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Amounts falling due 2-5 years
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Amounts falling due after more than 5 years
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Page 10
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Cannon Freeholds Ltd
Notes to the financial statements
For the year ended 30 November 2023
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Charged to the profit or loss
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The provision for deferred taxation is made up as follows:
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Accelerated capital allowances
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Arising on the revaluation of assets
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Allotted, called up and fully paid
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9,480 (2022 - 9,480) A Ordinary Shares shares of £1.00 each
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1,800 (2022 - 1,800) B Ordinary Shares shares of £0.50 each
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Page 11
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Cannon Freeholds Ltd
Notes to the financial statements
For the year ended 30 November 2023
Non distributable reserve
The company has adopted a revaluation model for the measurement of its investment properties. This reserve is used to record increases in the fair value of investment properties, less any related provision for deferred tax.
Profit and loss account
The reserve comprises all current and prior period retained profits and losses after deducting any distributions made to the company's shareholders
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Related party transactions
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At the year end £Nil (2022: £Nil) was due to Bosquet Capital Limited, a company under common control. During the year fees were paid to Bosquet Capital Limited totalling £30,000 (2022: £28,500).
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The controlling party is Mrs J R Pearl and her family.
Page 12
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