Company registration number 05444073 (England and Wales)
Hollybank (Securities) Limited
Unaudited financial statements
For the period ended 31 March 2024
Hollybank (Securities) Limited
Contents
Page
Statement of financial position
1 - 2
Notes to the financial statements
3 - 7
Hollybank (Securities) Limited
Statement of financial position
As at 31 March 2024
31 March 2024
- 1 -
31 March 2024
31 July 2023
as restated
Notes
£
£
£
£
Fixed assets
Investment property
4
752,000
674,250
Investments
5
714,631
714,631
1,466,631
1,388,881
Current assets
Debtors
6
103,467
93,896
Cash at bank and in hand
33,708
16,680
137,175
110,576
Creditors: amounts falling due within one year
7
(1,146,055)
(1,140,755)
Net current liabilities
(1,008,880)
(1,030,179)
Total assets less current liabilities
457,751
358,702
Provisions for liabilities
(31,705)
(12,267)
Net assets
426,046
346,435
Capital and reserves
Called up share capital
8
100
100
Profit and loss reserves
425,946
346,335
Total equity
426,046
346,435
Hollybank (Securities) Limited
Statement of financial position (continued)
As at 31 March 2024
31 March 2024
- 2 -
For the financial period ended 31 March 2024 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.
The members have not required the company to obtain an audit of its financial statements for the period in question in accordance with section 476.
The director acknowledges his responsibilities for complying with the requirements of the Companies Act 2006 with respect to accounting records and the preparation of financial statements.
These financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime.
The director of the company has elected not to include a copy of the income statement within the financial statements.true
The financial statements were approved and signed by the director and authorised for issue on 4 December 2024
Mr P S Mitchell
Director
Company registration number 05444073 (England and Wales)
Hollybank (Securities) Limited
Notes to the financial statements
For the period ended 31 March 2024
- 3 -
1
Accounting policies
Company information
Hollybank (Securities) Limited is a private company limited by shares incorporated in England and Wales. The registered office is 5 Gledhow Lane, Oakwood, Leeds, LS8 1SD.
1.1
Reporting period
The current year financial statements cover an eight month period, as the reporting period was
shortened from 31 July to 31 March for ease of administration. Therefore the current period
amounts presented in the financial statements and notes are not directly comparable with the prior
period.
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 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 as modified by the revaluation of certain assets. The principal accounting policies adopted are set out below.
1.3
Going concern
The company has trade profitably in the current and preceding periods and has a positive cash position at the period end. The director has considered the current position and budgets of the company, and after making appropriate enquiries he has a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Thus, he continues to adopt the going concern basis of accounting in preparing the financial statements.true
1.4
Turnover
Rents receivable under operating leases are included within turnover on a straight-line basis over the lease term.
1.5
Investment property
Investment property is measured at cost on initial recognition. Thereafter, investment properties are measured at fair value at each reporting date. Changes in fair value are recognised in profit or loss for the reporting period.
1.6
Fixed asset investments
Investments in associated undertakings are recognised at cost less impairment.
1.7
Financial instruments
The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the company's statement of financial position 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.
Hollybank (Securities) Limited
Notes to the financial statements (continued)
For the period ended 31 March 2024
1
Accounting policies
(Continued)
- 4 -
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.
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.
1.8
Equity instruments
Equity instruments issued by the company are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.
1.9
Taxation
The tax expense represents the sum of the tax currently payable and deferred tax.
Current tax
The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the income statement 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.
Hollybank (Securities) Limited
Notes to the financial statements (continued)
For the period ended 31 March 2024
1
Accounting policies
(Continued)
- 5 -
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 income statement, 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.
2
Judgements and key sources of estimation uncertainty
In the application of the company’s accounting policies, the director is 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.
Key sources of estimation uncertainty
The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are as follows.
Valuation of investment property
Investment property is included on the balance sheet at fair value. The fair value is arrived at on the basis of valuations carried out by the directors.
3
Employees
The average number of employees during the year was NIL (2023 - NIL).
4
Investment property
2024
£
Fair value
At 1 August 2023 as restated
674,250
Revaluations
77,750
At 31 March 2024
752,000
Hollybank (Securities) Limited
Notes to the financial statements (continued)
For the period ended 31 March 2024
4
Investment property
(Continued)
- 6 -
Property valuations have been undertaken by the company using their best estimate of the fair value of the properties at the time the accounts were prepared.
This best estimate was based on, and referred, to the following considerations:-
- Knowledge of any relevant prices used in recent arm’s length market transactions for similar properties.
- An understanding of the special conditions pertinent to the properties and their location.
- A review of the impact of the prevailing economic climate.
The director believes that the resulting valuations reflect what the transaction price would have been on the measurement date in an arm’s length exchange motivated by normal business considerations.
5
Fixed asset investments
2024
2023
£
£
Shares in group undertakings and participating interests
714,631
714,631
6
Debtors
2024
2023
Amounts falling due within one year:
£
£
Other debtors
103,467
93,896
7
Creditors: amounts falling due within one year
2024
2023
£
£
Corporation tax
14,472
9,475
Other creditors
1,131,583
1,131,280
1,146,055
1,140,755
8
Called up share capital
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary A of £1 each
30
30
30
30
Ordinary B of £1 each
30
30
30
30
Ordinary C of £1 each
20
20
20
20
Ordinary D of £1 each
20
20
20
20
100
100
100
100
Hollybank (Securities) Limited
Notes to the financial statements (continued)
For the period ended 31 March 2024
- 7 -
9
Reserves
Included within Retained earnings is an amount of £138,198 (2023 as restated - £79,886) which relates to fair value revaluations of investment properties net of deferred tax. This amount is not distributable.
10
Related party disclosures
At the balance sheet date, there was a balance on the director's loan account due to the director of
£1,130,594 (2023 - £1,130,581).
11
Prior period adjustment
The prior year financial statements have been adjusted to correctly recognise the fair value of the investment properties as at 31 July 2023. The fair value of the properties has been increased by £77,750 and the deferred tax provision thereon has increased by £8,667. The net impact on profit and reserves is therefore an increase of £69,083.