Company registration number 04766614 (England and Wales)
W. J. & R. DANCE LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024
W. J. & R. DANCE LIMITED
COMPANY INFORMATION
Directors
Mr R Dance
Mrs K L Dance
Secretary
Mr R Dance
Company number
04766614
Registered office
Brackenridge
Sway Road
Brockenhurst
Hampshire
United Kingdom
SO42 7RX
Auditor
Azets Audit Services
Carnac Place
Cams Hall Estate
Fareham
Hampshire
United Kingdom
PO16 8UY
W. J. & R. DANCE LIMITED
CONTENTS
Page
Strategic report
1
Directors' report
2 - 3
Independent auditor's report
4 - 6
Statement of comprehensive income
7
Balance sheet
8
Statement of changes in equity
9
Statement of cash flows
10
Notes to the financial statements
11 - 23
W. J. & R. DANCE LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 MARCH 2024
- 1 -
The directors present the strategic report for the year ended 31 March 2024.
Review of the business
The major change in focus for the company operations away from Convenience Store operations continued with the acquisition of further freehold Convenience Store properties.
The new focus of the business is to acquire commercial property freeholds, specialising in Convenience Stores where the company knowledge base is at its best.
There were three freeholds purchased during the year.
Principal risks and uncertainties
As with any commercial property acquisitions, the major risks revolve around tenants defaulting on the rent. To alleviate this risk as far as possible, there has been a purchasing strategy to buy well-positioned properties on longer leases with tenants that have strong covenants.
The two main tenants so far are The Co-operative Group and Tesco Ltd representing good covenants and hence a reliable income stream.
Key performance indicators
The company has established a good relationship with all the tenants occupying the properties and all rents have been paid in full and on time.
The rental yield on the properties averages at 6% across the portfolio and the average lease has at least 8 years to run, which should see a stable income stream.
Overall, the company remains in a favourable position to move forward in its new form.
Mr R Dance
Director
28 November 2024
W. J. & R. DANCE LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 MARCH 2024
- 2 -
The directors present their annual report and financial statements for the year ended 31 March 2024.
Principal activities
The principal activity of the company continued to be investment in commercial properties.
Results and dividends
The results for the year are set out on page 7.
Ordinary dividends were paid amounting to £114,000. The directors do not recommend payment of a final dividend.
Directors
The directors who held office during the year and up to the date of signature of the financial statements were as follows:
Mr R Dance
Mrs K L Dance
Auditor
In accordance with the company's articles, a resolution proposing that Azets Audit Services be reappointed as auditor of the company will be put at a General Meeting.
Statement of directors' responsibilities
The directors are responsible for preparing the annual report and the financial statements in accordance with applicable law and regulations.
Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to:
select suitable accounting policies and then apply them consistently;
make judgements and accounting estimates that are reasonable and prudent;
prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.
The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company’s transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
Strategic report
The company has chosen in accordance with Companies Act 2006, s. 414C(11) to set out in the company's strategic report information required by Large and Medium-sized Companies and Groups (Accounts and Reports) Regulations 2008, Sch. 7 to be contained in the directors' report. It has done so in respect of financial risk management and future developments.
Statement of disclosure to auditor
So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the company’s auditor is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the company’s auditor is aware of that information.
W. J. & R. DANCE LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 3 -
On behalf of the board
Mr R Dance
Director
28 November 2024
W. J. & R. DANCE LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF W. J. & R. DANCE LIMITED
- 4 -
Opinion
We have audited the financial statements of W. J. & R. Dance Limited (the 'company') for the year ended 31 March 2024 which comprise the statement of comprehensive income, the balance sheet, the statement of changes in equity, the statement of cash flows and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).
In our opinion the financial statements:
give a true and fair view of the state of the company's affairs as at 31 March 2024 and of its profit for the year then ended;
have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
have been prepared in accordance with the requirements of the Companies Act 2006.
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Conclusions relating to going concern
In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.
Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.
The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The directors are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of our audit:
the information given in the strategic report and the directors' report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
the strategic report and the directors' report have been prepared in accordance with applicable legal requirements.
W. J. & R. DANCE LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF W. J. & R. DANCE LIMITED
- 5 -
Matters on which we are required to report by exception
In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the directors' report.
We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:
adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
the financial statements are not in agreement with the accounting records and returns; or
certain disclosures of remuneration specified by law are not made; or
we have not received all the information and explanations we require for our audit.
Responsibilities of directors
As explained more fully in the directors' responsibilities statement, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the directors are responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.
Auditor's responsibilities for the audit of the financial statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.
W. J. & R. DANCE LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF W. J. & R. DANCE LIMITED
- 6 -
Extent to which the audit was considered capable of detecting irregularities, including fraud
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above and on the Financial Reporting Council’s website, to detect material misstatements in respect of irregularities, including fraud.
We obtain and update our understanding of the entity, its activities, its control environment, and likely future developments, including in relation to the legal and regulatory framework applicable and how the entity is complying with that framework. Based on this understanding, we identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. This includes consideration of the risk of acts by the entity that were contrary to applicable laws and regulations, including fraud.
In response to the risk of irregularities and non-compliance with laws and regulations, including fraud, we designed procedures which included:
Enquiry of management and those charged with governance around actual and potential litigation and claims as well as actual, suspected and alleged fraud;
Reviewing minutes of meetings of those charged with governance;
Assessing the extent of compliance with the laws and regulations considered to have a direct material effect on the financial statements or the operations of the company through enquiry and inspection;
Reviewing financial statement disclosures and testing to supporting documentation to assess compliance with applicable laws and regulations;
Performing audit work over the risk of management bias and override of controls, including testing of journal entries using audit data analytics and other adjustments for appropriateness, evaluating the business rationale of significant transactions outside the normal course of business and reviewing accounting estimates for indicators of potential bias.
Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's members as a body, for our audit work, for this report, or for the opinions we have formed.
James Reilly ACCA
Senior Statutory Auditor
For and on behalf of Azets Audit Services
29 November 2024
Chartered Accountants
Statutory Auditor
Carnac Place
Cams Hall Estate
Fareham
Hampshire
United Kingdom
PO16 8UY
W. J. & R. DANCE LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 MARCH 2024
- 7 -
Year
Period
ended
ended
Continuing
Discontinued
31 March
Continuing
Discontinued
31 March
operations
operations
2024
operations
operations
2023
Notes
£
£
£
£
£
£
Turnover
3
293,125
6,524
299,649
-
7,881,493
7,881,493
Cost of sales
(37,662)
5,464
(32,198)
(5,759,519)
(5,759,519)
Gross profit
255,463
11,988
267,451
-
2,121,974
2,121,974
Administrative expenses
(211,236)
(4,144)
(215,380)
(43,156)
(1,706,313)
(1,749,469)
Other operating income
5,781
887
6,668
32,647
2,940
35,587
Operating profit
4
50,008
8,731
58,739
(10,509)
418,601
408,092
Interest receivable and similar income
7
79,923
79,923
18,965
284
19,249
Interest payable and similar expenses
8
(104)
(104)
Profit/(loss) on disposal of operations
- Food retail stores trade
-
-
-
-
4,685,234
4,685,234
Profit before taxation
129,931
8,731
138,662
8,456
5,104,015
5,112,471
Tax on profit
9
(31,743)
(2,183)
(33,926)
(1,607)
(846,520)
(848,127)
Profit for the financial year
98,188
6,548
104,736
6,849
4,257,495
4,264,344
The notes on pages 11 to 23 form part of these financial statements.
W. J. & R. DANCE LIMITED
BALANCE SHEET
AS AT
31 MARCH 2024
31 March 2024
- 8 -
2024
2023
Notes
£
£
£
£
Fixed assets
Tangible assets
12
13,532
30,780
Investment property
13
5,183,364
2,278,385
5,196,896
2,309,165
Current assets
Debtors
14
687,868
2,108,664
Cash at bank and in hand
1,041,161
4,694,433
1,729,029
6,803,097
Creditors: amounts falling due within one year
15
(241,768)
(2,415,129)
Net current assets
1,487,261
4,387,968
Total assets less current liabilities
6,684,157
6,697,133
Provisions for liabilities
Deferred tax liability
16
3,383
7,095
(3,383)
(7,095)
Net assets
6,680,774
6,690,038
Capital and reserves
Called up share capital
18
100
100
Profit and loss reserves
6,680,674
6,689,938
Total equity
6,680,774
6,690,038
The financial statements were approved by the board of directors and authorised for issue on 28 November 2024 and are signed on its behalf by:
Mr R Dance
Director
Company Registration No. 04766614
W. J. & R. DANCE LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 MARCH 2024
- 9 -
Share capital
Profit and loss reserves
Total
Notes
£
£
£
Balance at 1 August 2022
100
2,575,594
2,575,694
Period ended 31 March 2023:
Profit and total comprehensive income for the period
-
4,264,344
4,264,344
Dividends
11
-
(150,000)
(150,000)
Balance at 31 March 2023
100
6,689,938
6,690,038
Year ended 31 March 2024:
Profit and total comprehensive income for the year
-
104,736
104,736
Dividends
11
-
(114,000)
(114,000)
Balance at 31 March 2024
100
6,680,674
6,680,774
W. J. & R. DANCE LIMITED
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 MARCH 2024
- 10 -
2024
2023
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from/(absorbed by) operations
24
620,873
(886,469)
Interest paid
(104)
Income taxes paid
(1,094,527)
(179)
Net cash outflow from operating activities
(473,654)
(886,752)
Investing activities
Proceeds from disposal of business
4,685,234
Purchase of tangible fixed assets
(18,064)
Proceeds from disposal of tangible fixed assets
11,750
254,325
Purchase of investment property
(2,904,979)
(2,278,385)
Loans to directors
(252,312)
-
Interest received
79,923
19,249
Net cash (used in)/generated from investing activities
(3,065,618)
2,662,359
Financing activities
Dividends paid
(114,000)
(150,000)
Net cash used in financing activities
(114,000)
(150,000)
Net (decrease)/increase in cash and cash equivalents
(3,653,272)
1,625,607
Cash and cash equivalents at beginning of year
4,694,433
3,068,826
Cash and cash equivalents at end of year
1,041,161
4,694,433
W. J. & R. DANCE LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024
- 11 -
1
Accounting policies
Company information
W. J. & R. Dance Limited is a private company limited by shares incorporated in England and Wales. The registered office is Brackenridge, Sway Road, Brockenhurst, Hampshire, United Kingdom, SO42 7RX.
1.1
Reporting period
The financial statements for the period to 31 March 2023 represent a shorter 8-month period. The financial year end was shortened so that it aligned with the disposal of the food retail stores trade. This means that the comparative amounts presented in the financial statements (including the related notes) are not entirely comparable.
1.2
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.
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 the revaluation of investment properties at fair value. The principal accounting policies adopted are set out below.
1.3
Going concern
Atruet 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.
1.4
Turnover
Turnover is recognised at the fair value of the consideration receivable for goods and services provided in the normal course of business, and is shown net of VAT. The fair value of consideration takes into account trade discounts and volume rebates.
Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer (usually on dispatch of the goods), the amount of revenue can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the entity and the costs incurred or to be incurred in respect of the transaction can be measured reliably.
Revenue from the rental of investment properties is recognised by reference to the period the rental income relates to.
1.5
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:
Plant and equipment
- 15% on reducing balance
Motor vehicles
- 25% on reducing balance
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.
W. J. & R. DANCE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
1
Accounting policies
(Continued)
- 12 -
1.6
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.
1.7
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.
1.8
Cash and cash equivalents
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.
1.9
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.
W. J. & R. DANCE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
1
Accounting policies
(Continued)
- 13 -
Other financial assets
Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.
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.
W. J. & R. DANCE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
1
Accounting policies
(Continued)
- 14 -
Other financial liabilities
Derivatives, including interest rate swaps and forward foreign exchange contracts, are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in profit or loss in finance costs or finance income as appropriate, unless hedge accounting is applied and the hedge is a cash flow hedge.
Debt instruments that do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured at fair value through profit or loss. Debt instruments may be designated as being measured at fair value through profit or loss to eliminate or reduce an accounting mismatch or if the instruments are measured and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy.
Derecognition of financial liabilities
Financial liabilities are derecognised when the company’s contractual obligations expire or are discharged or cancelled.
1.10
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.
1.11
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.
W. J. & R. DANCE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
1
Accounting policies
(Continued)
- 15 -
1.12
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.
1.13
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
1.14
Leases
Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leases asset are consumed.
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.
1.15
Foreign exchange
Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation in the period are included in profit or loss.
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.
Critical judgements
The following judgements (apart from those involving estimates) have had the most significant effect on amounts recognised in the financial statements.
Investment properties
Investment properties shall be measured at their fair values at each reporting date, with changes in their fair values being recognised through the profit and loss account. Property valuations require judgements to be made by the directors, which are based on the expected market values of the properties and the rental yields being achieved. The directors believe that the fair values of the properties are not materially different to the initial costs of the properties and hence no adjustments have been made to the valuations.
W. J. & R. DANCE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 16 -
3
Turnover and other revenue
Turnover is attributable to the principal activity of the company, which was the operation of convenience stores until 29 March 2023 and, since this date, rental income arising from investment properties.
2024
2023
£
£
Turnover analysed by class of business
Income from convenience stores
6,524
7,881,493
Rental income from investment properties
293,125
-
299,649
7,881,493
2024
2023
£
£
Other revenue
Interest income
79,923
19,249
Rental income arising from investment properties
32,647
4
Operating profit
2024
2023
Operating profit for the year is stated after charging/(crediting):
£
£
Fees payable to the company's auditor for the audit of the company's financial statements
9,500
13,750
Depreciation of owned tangible fixed assets
9,354
47,066
(Profit)/loss on disposal of tangible fixed assets
(3,856)
22,202
Operating lease charges
36,446
103,142
5
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2024
2023
Number
Number
Directors
2
2
Management
-
7
Store staff
-
96
Total
2
105
W. J. & R. DANCE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
5
Employees
(Continued)
- 17 -
Their aggregate remuneration comprised:
2024
2023
£
£
Wages and salaries
21,050
918,972
Social security costs
-
49,482
Pension costs
120,000
92,948
141,050
1,061,402
The directors are the only employees of the company due to the nature and activity of the company.
6
Directors' remuneration
2024
2023
£
£
Remuneration for qualifying services
21,894
8,744
Company pension contributions to defined contribution schemes
120,000
80,112
141,894
88,856
The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 2 (2023 - 2).
7
Interest receivable and similar income
2024
2023
£
£
Interest income
Interest on bank deposits
69,642
11,839
Other interest income
10,281
7,410
Total income
79,923
19,249
2024
2023
Investment income includes the following:
£
£
Interest on financial assets not measured at fair value through profit or loss
69,642
11,839
8
Interest payable and similar expenses
2024
2023
£
£
Other finance costs:
Other interest
104
W. J. & R. DANCE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 18 -
9
Taxation
2024
2023
£
£
Current tax
UK corporation tax on profits for the current period
37,638
925,426
Adjustments in respect of prior periods
(13,281)
Total current tax
37,638
912,145
Deferred tax
Origination and reversal of timing differences
(3,712)
(64,018)
Total tax charge
33,926
848,127
As of 1 April 2023, the main rate of UK corporation tax increased from 19% to 25%.
The actual charge for the year can be reconciled to the expected charge for the year based on the profit or loss and the standard rate of tax as follows:
2024
2023
£
£
Profit before taxation
138,662
5,112,471
Expected tax charge based on the standard rate of corporation tax in the UK of 25.00% (2023: 19.00%)
34,666
971,369
Tax effect of expenses that are not deductible in determining taxable profit
667
570
Gains not taxable
(96,970)
Effect of change in corporation tax rate
(15,364)
Under/(over) provided in prior years
(13,281)
Tax at marginal rate
(1,407)
Effect of enhanced capital allowances
1,786
Under/(over) provided in current year
17
Taxation charge for the year
33,926
848,127
10
Discontinued operations
Food retail stores trade
In the prior year, the company entered into a sale agreement to dispose of the food retail stores trade. The disposal was effected in order to generate cash flow for the company's new investment commerical property business. The sale was completed on 29 March 2023.
A gain of £4,685,234 arose on the disposal, being the proceeds of the sale, less the carrying amount of the business assets and attributable goodwill.
W. J. & R. DANCE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 19 -
11
Dividends
2024
2023
£
£
Interim paid
114,000
150,000
12
Tangible fixed assets
Plant and equipment
Motor vehicles
Total
£
£
£
Cost
At 1 April 2023
1,458
72,300
73,758
Disposals
(23,509)
(23,509)
At 31 March 2024
1,458
48,791
50,249
Depreciation and impairment
At 1 April 2023
537
42,441
42,978
Depreciation charged in the year
167
9,187
9,354
Eliminated in respect of disposals
(15,615)
(15,615)
At 31 March 2024
704
36,013
36,717
Carrying amount
At 31 March 2024
754
12,778
13,532
At 31 March 2023
921
29,859
30,780
13
Investment property
2024
£
Fair value
At 1 April 2023
2,278,385
Additions through external acquisition
2,904,979
At 31 March 2024
5,183,364
Investment property comprises of two investment properties purchased in the prior year with 3 additional investment properties completed during the year. The fair value of the investment property has been arrived at on the basis of cost. The directors believe that the differences between the fair values and the costs of the investment properties are immaterial.
W. J. & R. DANCE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 20 -
14
Debtors
2024
2023
Amounts falling due within one year:
£
£
Trade debtors
1,668,239
Corporation tax recoverable
141,492
53,299
Other debtors
526,702
371,525
Prepayments and accrued income
19,674
15,601
687,868
2,108,664
15
Creditors: amounts falling due within one year
2024
2023
£
£
Trade creditors
7,276
1,013,610
Corporation tax
125,831
1,094,527
Other taxation and social security
13,367
16,217
Other creditors
2,024
3,199
Accruals and deferred income
93,270
287,576
241,768
2,415,129
16
Deferred taxation
The following are the major deferred tax liabilities and assets recognised by the company and movements thereon:
Liabilities
Liabilities
2024
2023
Balances:
£
£
Accelerated capital allowances
3,383
7,095
2024
Movements in the year:
£
Liability at 1 April 2023
7,095
Credit to profit or loss
(3,712)
Liability at 31 March 2024
3,383
The deferred tax liability set out above is expected to reverse over a number of years as accelerated capital allowances are absorbed.
W. J. & R. DANCE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 21 -
17
Retirement benefit schemes
2024
2023
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
120,000
92,948
The company operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the company in an independently administered fund.
18
Share capital
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
100
100
100
100
Shares rank equally for voting purposes. On a show of hands, each member shall have one vote and on a poll, each member shall have one vote per share. The voting rights are more particularly described in the Articles of Association. Each share ranks equally for any dividend declared as more particularly described in the Articles of Association.
19
Operating lease commitments
Lessee
Operating lease payments represent rentals payable by the company for a property which is subsequently sublet.
At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:
2024
2023
£
£
Within one year
47,538
Between two and five years
190,152
In over five years
25,397
263,087
At the reporting end date the total future minimum sublease payments expected to be received under non-cancellable subleases was £263,087.
Lessor
The operating leases represent leases of 5 commercial properties to third parties. The leases are negotiated over long-term periods and include a provision for five-yearly upward rent reviews according to prevailing market conditions.
W. J. & R. DANCE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
19
Operating lease commitments
(Continued)
- 22 -
At the reporting end date the company had contracted with tenants for the following minimum lease payments:
2024
2023
£
£
Within one year
357,674
Between two and five years
1,289,860
In over five years
1,296,332
2,943,866
20
Capital commitments
Amounts contracted for but not provided in the financial statements:
2024
2023
£
£
Acquisition of tangible fixed assets
-
847,173
21
Related party transactions
Remuneration of key management personnel
Key management includes only the directors and therefore key management compensation paid is disclosed in note 6.
Transactions with related parties
During the year the company entered into the following transactions with related parties:
Rent paid
2024
2023
£
£
Other related parties
-
48,493
22
Directors' transactions
Dividends totalling £114,000 (2023 - £150,000) were paid in the year in respect of shares held by the company's directors.
Description
% Rate
Opening balance
Amounts advanced
Interest charged
Amounts repaid
Closing balance
£
£
£
£
£
Directors' loan account
2.25
274,390
361,912
10,281
(119,881)
526,702
274,390
361,912
10,281
(119,881)
526,702
W. J. & R. DANCE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
22
Directors' transactions
(Continued)
- 23 -
Interest is charged on advances above £10,000 at the official HMRC rate of interest.
23
Ultimate controlling party
The company is controlled by Mr R Dance.
24
Cash generated from/(absorbed by) operations
2024
2023
£
£
Profit for the year after tax
104,736
4,264,344
Adjustments for:
Taxation charged
33,926
848,127
Finance costs
104
Investment income
(79,923)
(19,249)
(Gain)/loss on disposal of tangible fixed assets
(3,856)
22,202
Gain on disposal of business
-
(4,685,234)
Depreciation and impairment of tangible fixed assets
9,354
47,066
Movements in working capital:
Decrease in stocks
438,119
Decrease/(increase) in debtors
1,761,301
(1,616,069)
Decrease in creditors
(1,204,665)
(185,879)
Cash generated from/(absorbed by) operations
620,873
(886,469)
25
Analysis of changes in net debt
2024
£
Opening net funds
Cash at bank and in hand
4,694,433
Changes in net debt arising from:
Cash flows of the entity
(3,653,272)
Closing net funds as analysed below
1,041,161
Closing net funds
Cash at bank and in hand
1,041,161
2024-03-312023-04-01falseCCH SoftwareCCH Accounts Production 2024.210Mrs K L DanceMrs K L DanceMr R Dancefalsefalse047666142023-04-012024-03-3104766614bus:CompanySecretaryDirector12023-04-012024-03-3104766614bus:Director12023-04-012024-03-3104766614bus:CompanySecretary12023-04-012024-03-3104766614bus:Director22023-04-012024-03-3104766614bus:RegisteredOffice2023-04-012024-03-31047666142024-03-3104766614core:ContinuingOperations2023-04-012024-03-3104766614core:DiscontinuedOperations2023-04-012024-03-3104766614core:ContinuingOperations2022-08-012023-03-3104766614core:DiscontinuedOperations2022-08-012023-03-31047666142022-08-012023-03-3104766614core:RetainedEarningsAccumulatedLosses2022-08-012023-03-3104766614core:RetainedEarningsAccumulatedLosses2023-04-012024-03-31047666142023-03-3104766614core:PlantMachinery2024-03-3104766614core:MotorVehicles2024-03-3104766614core:PlantMachinery2023-03-3104766614core:MotorVehicles2023-03-3104766614core:CurrentFinancialInstrumentscore:WithinOneYear2024-03-3104766614core:CurrentFinancialInstrumentscore:WithinOneYear2023-03-3104766614core:CurrentFinancialInstruments2024-03-3104766614core:CurrentFinancialInstruments2023-03-3104766614core:ShareCapital2024-03-3104766614core:ShareCapital2023-03-3104766614core:RetainedEarningsAccumulatedLosses2024-03-3104766614core:RetainedEarningsAccumulatedLosses2023-03-3104766614core:ShareCapital2022-07-3104766614core:RetainedEarningsAccumulatedLosses2022-07-310476661412023-04-012024-03-310476661412022-08-012023-03-31047666142023-03-31047666142022-07-3104766614core:PlantMachinery2023-04-012024-03-3104766614core:MotorVehicles2023-04-012024-03-3104766614core:UKTax2023-04-012024-03-3104766614core:UKTax2022-08-012023-03-310476661422023-04-012024-03-310476661422022-08-012023-03-310476661432023-04-012024-03-310476661432022-08-012023-03-310476661442023-04-012024-03-310476661442022-08-012023-03-310476661452023-04-012024-03-310476661452022-08-012023-03-3104766614core:PlantMachinery2023-03-3104766614core:MotorVehicles2023-03-3104766614core:WithinOneYear2024-03-3104766614core:WithinOneYear2023-03-3104766614core:BetweenTwoFiveYears2024-03-3104766614core:BetweenTwoFiveYears2023-03-3104766614core:MoreThanFiveYears2024-03-3104766614core:MoreThanFiveYears2023-03-3104766614bus:PrivateLimitedCompanyLtd2023-04-012024-03-3104766614bus:FRS1022023-04-012024-03-3104766614bus:Audited2023-04-012024-03-3104766614bus:FullAccounts2023-04-012024-03-31xbrli:purexbrli:sharesiso4217:GBP