Company registration number 09497381 (England and Wales)
TURN LIMITED
UNAUDITED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023
PAGES FOR FILING WITH REGISTRAR
TURN LIMITED
CONTENTS
Page
Balance sheet
1 - 2
Notes to the financial statements
3 - 9
TURN LIMITED
BALANCE SHEET
AS AT
31 MARCH 2023
31 March 2023
- 1 -
2023
2022
as restated
Notes
£
£
£
£
Fixed assets
Tangible assets
5
149,701
160,720
Investment properties
6
1,445,000
1,550,529
Investments
7
100
100
1,594,801
1,711,349
Current assets
Debtors
9
1,229,214
49,071
Cash at bank and in hand
3,379
3,424
1,232,593
52,495
Creditors: amounts falling due within one year
10
(829,583)
(829,867)
Net current assets/(liabilities)
403,010
(777,372)
Total assets less current liabilities
1,997,811
933,977
Creditors: amounts falling due after more than one year
11
(630,254)
(1,266,783)
Net assets/(liabilities)
1,367,557
(332,806)
Capital and reserves
Called up share capital
12
2
2
Profit and loss reserves
1,367,555
(332,808)
Total equity
1,367,557
(332,806)
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 March 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.
TURN LIMITED
BALANCE SHEET (CONTINUED)
AS AT
31 MARCH 2023
31 March 2023
- 2 -
The financial statements were approved by the board of directors and authorised for issue on 14 October 2024 and are signed on its behalf by:
M Lee
Director
Company Registration No. 09497381
TURN LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023
- 3 -
1
Accounting policies
Company information
Turn Limited is a private company limited by shares incorporated in England and Wales. The registered office is 2 Leman Street, London, United Kingdom, E1W 9US.
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. The principal accounting policies adopted are set out below.
1.2
Turnover
Revenue represents rental income from investment properties. Rental income from investment property leased out under operating is recognised on a straight-line basis over the term of the lease.
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:
Fixtures and fittings
25% Straight line
Computers
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 properties
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.
1.5
Fixed asset 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.
An associate is an entity, being neither a subsidiary nor a joint venture, in which the company holds a long-term interest and where the company has significant influence. The company considers that it has significant influence where it has the power to participate in the financial and operating decisions of the associate.
TURN LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
1
Accounting policies
(Continued)
- 4 -
Entities in which the company has a long term interest and shares control under a contractual arrangement are classified as jointly controlled entities.
1.6
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.
1.7
Cash at bank and in hand
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.
1.8
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.
TURN LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
1
Accounting policies
(Continued)
- 5 -
Impairment of financial assets
Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.
Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.
If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.
Derecognition of financial assets
Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the company transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.
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.
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.
Derecognition of financial liabilities
Financial liabilities are derecognised when the company’s contractual obligations expire or are discharged or cancelled.
1.9
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.
TURN LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
1
Accounting policies
(Continued)
- 6 -
1.10
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 fixed 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.
2
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2023
2022
Number
Number
Total
1
1
3
Interest receivable and similar income
2023
2022
£
£
Interest receivable and similar income includes the following:
Income from other fixed asset investments
1,217,590
4
Fair value gains
2023
2022
£
£
Fair value gains/(losses)
Gain on investment properties
551,881
-
TURN LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 7 -
5
Tangible fixed assets
Plant and machinery etc
£
Cost
At 1 April 2022
254,833
Additions
46,967
At 31 March 2023
301,800
Depreciation and impairment
At 1 April 2022
94,113
Depreciation charged in the year
57,986
At 31 March 2023
152,099
Carrying amount
At 31 March 2023
149,701
At 31 March 2022
160,720
6
Investment property
2023
£
Fair value
At 1 April 2022
1,550,529
Disposals
(1,875,000)
Revaluations
1,769,471
At 31 March 2023
1,445,000
Investment properties comprises of 252 Archway road, 17B Brecknock road and 26B Caedmon road.
During the year, 252 Archway road was sub-divided into Flat B,C and D which were leased to Turn Holdings Limited. Part of 252 Archway road which is a commercial unit is held by Turn Limited and the valuation for the commercial unit was £555,000.
During the year, 17B Brecknock road was revalued at £480,000.
During the year, 26B Caedmon road was revalued at £410,000.
7
Fixed asset investments
2023
2022
£
£
Shares in group undertakings and participating interests
100
100
TURN LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 8 -
8
Subsidiaries
Details of the company's subsidiaries at 31 March 2023 are as follows:
Name of undertaking
Registered office
Class of
% Held
shares held
Direct
Turn Holdings Limited
United Kingdom
Ordinary
100.00
9
Debtors
2023
2022
Amounts falling due within one year:
£
£
Trade debtors
1,510
Amounts owed by group undertakings
1,223,454
Other debtors
4,250
49,071
1,229,214
49,071
10
Creditors: amounts falling due within one year
2023
2022
£
£
as restated
Bank loans
2,200
Other creditors
827,383
829,867
829,583
829,867
11
Creditors: amounts falling due after more than one year
2023
2022
£
£
Bank loans and overdrafts
630,254
1,266,783
TURN LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
11
Creditors: amounts falling due after more than one year
(Continued)
- 9 -
On 20 December 2018 the company entered into a mortgage agreement with Paragon Bank PLC on Flat 26B, Caedmon Road, London N7 6DH. It is secured by a fixed charge, interest on which is charged at 3.79% per annum. The remaining term of the loan is 20 years 7 months.
On 02 August 2019 the company entered into a mortgage agreement with The Mortgage Works (UK) PLC on Flat 17B, Brecknock Road, London N7 0BL. It is secured by a fixed charge, interest on which is charged at 3.49% per annum. The remaining term of the loan is 16 years 3 months.
On 20 July 2022 the company entered into a mortgage agreement with Fleet Mortgages Limited on 252 Archway Road, London N6 5AX. It is secured by a fixed charge, interest on which is charged at 3.19% per annum. The term of the loan is 25 years.
Post yearend, on 12 January 2024 the company entered into a mortgage agreement with Lendinvest Security Trustees Limited on 252 Archway Road, London N6 5AX. It is secured by a fixed charge, interest on which is charged at 1.10% per month. The term of the loan is 12 months.
Post yearend, on 12 January 2024 the company entered into a mortgage agreement with Lendinvest Security Trustees Limited on 173, 175, 177, 179 and 181 Stoke Newington Church Street, London N16 0UL. It is secured by a fixed charge, interest on which is charged at 1.05% per month. The term of the loan is 12 months.
12
Called up share capital
2023
2022
2023
2022
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
2
2
2
2
13
Related party transactions
At the year end, the company owed £817,593 (2022 - £826,166) to the directors of the company, in respect of interest free loans which are repayable on demand.
At the year end the company was owed £1,223,454 by Turn Holdings Limited, the subsidiary company, in respect of an interest free loan which is repayable on demand.
14
Prior period adjustment
Prior period adjustments are made up of the following adjustments:
(1) Adjustment of the bank balance against Directors' loan account
An adjustment of £3,424 was made to include business bank account.
The previously recognised “Directors loan account” was £822,742 and “Bank” was £Nil as at 31 March 2022.
After the adjustments the balance of Directors' loan account is £826,166 and Bank £3,424 respectively.
There is no impact to profit & loss or reserves.