Company registration number 00325053 (England and Wales)
DEARDS SERVICES LIMITED
FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024
PAGES FOR FILING WITH REGISTRAR
DEARDS SERVICES LIMITED
CONTENTS
Page
Statement of financial position
1
Notes to the financial statements
2 - 8
DEARDS SERVICES LIMITED
STATEMENT OF FINANCIAL POSITION
AS AT
31 MARCH 2024
31 March 2024
- 1 -
2024
2023
as restated
Notes
£
£
£
£
Fixed assets
Investment property
4
33,944,449
31,851,173
Current assets
Debtors
5
273,789
352,997
Cash at bank and in hand
63,858
227,587
337,647
580,584
Creditors: amounts falling due within one year
6
(312,210)
(366,971)
Net current assets
25,437
213,613
Total assets less current liabilities
33,969,886
32,064,786
Provisions for liabilities
(6,886,615)
(6,323,355)
Net assets
27,083,271
25,741,431
Capital and reserves
Called up share capital
688,700
688,700
Revaluation reserve
8
25,245,318
23,213,302
Other reserves
8
41,834
41,834
Profit and loss reserves
8
1,107,419
1,797,595
Total equity
27,083,271
25,741,431

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

The directors of the company have elected not to include a copy of the income statement within the financial statements.true

The financial statements were approved by the board of directors and authorised for issue on 25 October 2024 and are signed on its behalf by:
Nicholas Scarfe BSc (Hons)
Director
Company registration number 00325053 (England and Wales)
DEARDS SERVICES LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024
- 2 -
1
Accounting policies
Company information

Deards Services Limited is a private company limited by shares incorporated in England and Wales. The registered office is Plantagenet House, 4 Plantagenet Road, New Barnet, EN5 5JQ.

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

The financial statements have been prepared on a going concern basis.true

 

The value of investment properties is strong and occupancy remains high with future lease payments due under non-cancellable leases with tenants far exceeding operating costs.

 

The board has reviewed detailed cashflow forecasts for a period of at least 12 months from approval of these financial statements, and taking into account the current economic climate and reasonably possible downsides, the Company will have sufficient funds to meets its liabilities as they fall due. Therefore the directors consider the going concern basis to be appropriate.

1.3
Turnover

Turnover represents rents receivable from tenants and is recognised in the period to which it relates on a straight line basis over the term of the relevant lease.

1.4
Investment property

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
Cash and cash equivalents

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.

 

There are restrictions over the use of cash balances amounting to £28,887 as at the year end which are held within the cash and bank in hand of £63,858. These are repayable to third parties in relation to tenant deposits.

 

DEARDS SERVICES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
1
Accounting policies
(Continued)
- 3 -
1.6
Financial instruments

Financial liabilities and equity are classified according to the substance of the financial instrument’s contractual obligations, rather than its legal form.

 

The company’s cash at bank and in hand, trade and other debtors, trade and other creditors and bank overdrafts are measured initially at the transaction price, including transaction costs, and subsequently at amortised cost using the effective interest method. Debt instruments that are payable or receivable within one year are measured at the undiscounted amount of the cash or other consideration expected to be paid or received.

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.

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.

DEARDS SERVICES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
1
Accounting policies
(Continued)
- 4 -
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.

1.7
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.

1.8
Taxation

The tax expense for the year comprises current and deferred tax. Tax is recognised in the statement of comprehensive income, 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.

Current tax

The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the reporting date in the countries where the company operates and generates income.

Deferred tax

Deferred tax balances are recognised in respect of all timing differences that have originated but not reversed by the statement of financial position date, except that:

 

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 reporting date.

DEARDS SERVICES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
1
Accounting policies
(Continued)
- 5 -
1.9
Leases

All leases where assets are leased to a third party are treated as operating leases. Their annual rentals are credited to the statement of comprehensive income on a straight line basis over the term of the lease.

 

Incentive payments to new tenants to occupy the company's investment properties are treated as a reduction in revenue and initially recorded as prepayments. The payments are charged to profit or loss over the term of the lease. Where such prepayments relate to investment properties, the properties are carried at open market value less the amount of the unamortised incentive.

 

The company has taken advantage of the optional exemption available on transition to FRS 102 which allows lease incentives on leases entered into before the date of transition to the standard 1 April 2014 to continue to be charged over the period to the first market rent review rather than the term of the lease.

2
Judgements and key sources of estimation uncertainty

In the application of the company’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

 

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

 

The following judgements and estimates have had the most significant effect on amounts recognised in the financial statements:

 

Classification of leases

Judgements are made as to whether leases entered into the company are operating or finance. These decisions depend on an assessment of whether the risks and rewards of ownership have been transferred from the lessor to the lease on a lease by lease basis. All property leases have been determined as operating leases.

 

Valuation of investment property

The market value of investment property is estimated annually by the directors and is 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.

3
Employees
2024
2023
Number
Number
Total
-
0
-
0
DEARDS SERVICES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 6 -
4
Investment property
2024
£
Fair value
At 1 April 2023
31,851,173
Disposals
(502,000)
Revaluations
2,595,276
At 31 March 2024
33,944,449

The fair value of the investment property as at 31 March 2024 has been determined by the directors. The valuations have been made by reference to market data on rental yields for similar properties.

 

All of the Company's investment properties are held for use in operating leases, which produces 100% of the Company's turnover.

 

The historical cost of investment property is £2,636,307 (2023: £2,732,307).

5
Debtors
2024
2023
Amounts falling due within one year:
£
£
Trade debtors
13,207
69,063
Amounts owed by group undertakings
20,000
20,028
Prepayments and accrued income
240,582
263,906
273,789
352,997

Amounts owed by group are interest free and repayable on demand.

6
Creditors: amounts falling due within one year
2024
2023
£
£
Corporation tax
121,226
170,622
Other creditors
190,984
196,349
312,210
366,971
7
Deferred taxation

The following are the major deferred tax liabilities and assets recognised by the company and movements thereon:

Liabilities
Liabilities
2024
2023
Balances:
£
£
Investment property
6,886,615
6,323,355
DEARDS SERVICES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
7
Deferred taxation
(Continued)
- 7 -
2024
Movements in the year:
£
Liability at 1 April 2023
6,323,355
Charge to profit or loss
563,260
Liability at 31 March 2024
6,886,615
8
Reserves
Revaluation reserve

The revaluation reserve represents accumulated gains and losses in respect of changes in the valuation of investment property, which is recognised at fair value, and deferred tax thereon. The reserve is not distributable under the Companies Act 2006. The change in fair value and deferred tax thereon is initially recognised in the profit and loss account but then transferred to the revaluation reserve in order to keep a record of non-distributable reserves.

 

During the year a gain of £2,032,016 (2023: £977,307 loss as re-stated) was transferred from retained earnings to the revaluation reserve.

Other reserve

The other reserve is a capital redemption reserve, which is non-distributable.

9
Audit report information

As the income statement has been omitted from the filing copy of the financial statements, the following information in relation to the audit report on the statutory financial statements is provided in accordance with s444(5B) of the Companies Act 2006:

The auditor's report was unqualified.

Senior Statutory Auditor:
Barry Gostling
Statutory Auditor:
Ensors Accountants LLP
Date of audit report:
29 October 2024
10
Operating lease commitments
Lessor

At the reporting end date the company had contracted with tenants for the following minimum lease payments:

2024
2023
£
£
Within one year
1,932,591
1,684,891
Between two and five years
7,661,623
6,701,812
In over five years
22,111,671
22,593,153
31,705,885
30,979,856
DEARDS SERVICES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 8 -
11
Related party transactions
Transactions with related parties

The Company has taken exemption within FRS 102 from disclosing transactions with wholly owned group

companies.

12
Prior period adjustment
Reconciliation of changes in equity
1 April
31 March
2022
2023
£
£
Adjustments to prior year
Investment Property Valuation
2,749,129
499,520
Deferred Tax
(687,282)
(124,880)
Total adjustments
2,061,847
374,640
Equity as previously reported
24,605,787
25,366,791
Equity as adjusted
26,667,634
25,741,431
Analysis of the effect upon equity
Revaluation reserve
2,061,847
374,640
Reconciliation of changes in profit for the previous financial period
2023
£
Adjustments to prior year
Investment Property Valuation
(2,249,609)
Deferred Tax
562,402
Total adjustments
(1,687,207)
Profit as previously reported
2,048,504
Profit as adjusted
361,297
Notes to reconciliation
Investment property valuation

Investment property valuations have been re-stated to apply a market yield approach to the specific properties held by the entity, rather than using a blended yield determined across the wider group.

Deferred tax

The deferred tax liability has been re-stated to take into account the changes in investment property valuations.

2024-03-312023-04-01false29 October 2024CCH SoftwareCCH Accounts Production 2024.210No description of principal activityThis audit opinion is unqualifiedNicholas Scarfe BSc (Hons)Behnaz Latifi BA (Hons), FMAATNicholas Scarfe BSc (Hons)falsefalse003250532023-04-012024-03-31003250532024-03-31003250532023-03-3100325053core:CurrentFinancialInstrumentscore:WithinOneYear2024-03-3100325053core:CurrentFinancialInstrumentscore:WithinOneYear2023-03-3100325053core:CurrentFinancialInstruments2024-03-3100325053core:CurrentFinancialInstruments2023-03-3100325053core:ShareCapital2024-03-3100325053core:ShareCapital2023-03-3100325053core:RevaluationReserve2024-03-3100325053core:RevaluationReserve2023-03-3100325053core:OtherMiscellaneousReserve2024-03-3100325053core:OtherMiscellaneousReserve2023-03-3100325053core:RetainedEarningsAccumulatedLosses2024-03-3100325053core:RetainedEarningsAccumulatedLosses2023-03-3100325053bus:CompanySecretaryDirector12023-04-012024-03-31003250532022-04-012023-03-31003250532023-03-3100325053core:WithinOneYear2024-03-3100325053core:WithinOneYear2023-03-3100325053core:BetweenTwoFiveYears2024-03-3100325053core:BetweenTwoFiveYears2023-03-3100325053core:MoreThanFiveYears2024-03-3100325053core:MoreThanFiveYears2023-03-3100325053bus:PrivateLimitedCompanyLtd2023-04-012024-03-3100325053bus:SmallCompaniesRegimeForAccounts2023-04-012024-03-3100325053bus:FRS1022023-04-012024-03-3100325053bus:Audited2023-04-012024-03-3100325053bus:Director12023-04-012024-03-3100325053bus:Director22023-04-012024-03-3100325053bus:CompanySecretary12023-04-012024-03-3100325053bus:FullAccounts2023-04-012024-03-31xbrli:purexbrli:sharesiso4217:GBP