Company registration number 00557467 (England and Wales)
FOLLIS INVESTMENTS LIMITED
UNAUDITED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024
PAGES FOR FILING WITH REGISTRAR
FOLLIS INVESTMENTS LIMITED
CONTENTS
Page
Balance sheet
1 - 2
Notes to the financial statements
3 - 8
FOLLIS INVESTMENTS LIMITED
BALANCE SHEET
- 1 -
2024
2023
as restated
Notes
£
£
£
£
Fixed assets
Tangible assets
4
291
364
Investment property
5
9,601,675
9,433,888
9,601,966
9,434,252
Current assets
Debtors
6
219,210
104,103
Cash at bank and in hand
47,250
50,246
266,460
154,349
Creditors: amounts falling due within one year
7
(2,092,652)
(2,333,499)
Net current liabilities
(1,826,192)
(2,179,150)
Total assets less current liabilities
7,775,774
7,255,102
Creditors: amounts falling due after more than one year
8
(1,344,654)
(889,654)
Provisions for liabilities
(1,016,039)
(974,092)
Net assets
5,415,081
5,391,356
Capital and reserves
Called up share capital
100
100
Share premium account
77,400
77,400
Revaluation reserve
3,953,750
3,827,910
Other reserves
4,901
4,901
Profit and loss reserves
1,378,930
1,481,045
Total equity
5,415,081
5,391,356
FOLLIS INVESTMENTS LIMITED
BALANCE SHEET (CONTINUED)
- 2 -
For the financial year ended 30 June 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 year in question in accordance with section 476.
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.
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 profit and loss account within the financial statements.true
The financial statements were approved by the board of directors and authorised for issue on 9 January 2025 and are signed on its behalf by:
C E Diment
Director
Company registration number 00557467 (England and Wales)
FOLLIS INVESTMENTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024
- 3 -
1
Accounting policies
Company information
Follis Investments Limited is a private company limited by shares incorporated in England and Wales. The registered office is Market House, 10 Market Walk, Saffron Walden, Essex, CB10 1JZ.
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 the revaluation of freehold properties and to include investment properties and certain financial instruments at fair value. The principal accounting policies adopted are set out below.
The Company, and the Group headed by it, qualify as small as set out in section 383 of the Companies Act 2006 and the parent and Group are considered eligible for the exemption to prepare consolidated accounts.
1.2
Turnover
Turnover is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business, and is shown net of VAT and other sales related taxes. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.
When cash inflows are deferred and represent a financing arrangement, the fair value of the consideration is the present value of the future receipts. The difference between the fair value of the consideration and the nominal amount received is recognised as interest income.
Revenue from contracts for the provision of professional services is recognised by reference to the stage of completion when the stage of completion, costs incurred and costs to complete can be estimated reliably. The stage of completion is calculated by comparing costs incurred, mainly in relation to contractual hourly staff rates and materials, as a proportion of total costs. Where the outcome cannot be estimated reliably, revenue is recognised only to the extent of the expenses recognised that it is probable will be recovered.
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
20% 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.
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.
FOLLIS INVESTMENTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
1
Accounting policies
(Continued)
- 4 -
1.5
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.
1.6
Financial instruments
The company only has financial assets and financial liabilities of a kind that qualify as basic financial instruments. Basic financial instruments are initially recognised at transaction value and subsequently measured at their settlement value. The company has no bank loans or other more complex financial instruments that require measurement at amortised cost using the effective interest method.
Debtors
Short term debtors are measured at transaction price, less any impairment. Loans receivable are
measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method, less any impairment.
Creditors
Short term creditors are measured at the transaction price. Other financial liabilities, including bank loans, are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method.
1.7
Taxation
The tax expense for the year comprises current and deferred tax. Tax is recognised in profit or loss except that a charge attributable to an item of income and expense recognised as other comprehensive income or to an item recognised directly in equity is also recognised in other comprehensive income or directly in equity respectively.
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 balance sheet 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 Balance sheet date, except that:
The recognition of deferred tax assets is limited to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits; and
Any deferred tax balances are reversed if and when all conditions for retaining associated tax allowances have been met.
Deferred tax balances are not recognised in respect of permanent differences except in respect of business combinations, when deferred tax is recognised on the differences between the fair values of assets acquired and the future tax deductions available for them and the differences between the fair values of liabilities acquired and the amount that will be assessed for tax. Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the balance sheet date.
FOLLIS INVESTMENTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
1
Accounting policies
(Continued)
- 5 -
1.8
Provisions
Provisions are made where an event has taken place that gives the Company a legal or constructive obligation that probably requires settlement by a transfer of economic benefit, and a reliable estimate can be made of the amount of the obligation.
Provisions are charged as an expense to profit or loss in the year that the Company becomes aware of the obligation, and are measured at the best estimate at the Balance sheet date of the expenditure required to settle the obligation, taking into account relevant risks and uncertainties.
When payments are eventually made, they are charged to the provision carried in the Balance sheet.
1.9
Equity dividends are recognised when they become legally payable. Interim equity dividends are recognised when paid. Final equity dividends are recognised when approved by the shareholders at an annual general meeting.
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.
3
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2024
2023
Number
Number
Total
FOLLIS INVESTMENTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 6 -
4
Tangible fixed assets
Fixtures and fittings
£
Cost
At 1 July 2023 and 30 June 2024
1,422
Depreciation and impairment
At 1 July 2023
1,058
Depreciation charged in the year
73
At 30 June 2024
1,131
Carrying amount
At 30 June 2024
291
At 30 June 2023
364
5
Investment property
2024
£
Fair value
At 1 July 2023
9,433,888
Revaluations
167,787
At 30 June 2024
9,601,675
The fair value of the investment properties has been arrived at on the basis of either valuations carried out by third party advisors and agreed by directors as at June 2024, or by the directors on an open market value for existing use basis.
If the investment properties were stated stated on a historical cost basis rather than a fair value basis, the historical costs included would have been:
2023: £4,631,887
2024: £4,631,887
6
Debtors
2024
2023
Amounts falling due within one year:
£
£
Trade debtors
2,715
2,818
Amounts owed by group undertakings
120,750
Other debtors
49,600
56,800
Prepayments and accrued income
46,145
44,485
219,210
104,103
FOLLIS INVESTMENTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 7 -
7
Creditors: amounts falling due within one year
2024
2023
£
£
Trade creditors
14,343
10,354
Amounts owed to group undertakings
1,993,313
2,268,545
Corporation tax
35,290
8
Other creditors
33,168
35,533
Accruals and deferred income
16,538
19,059
2,092,652
2,333,499
8
Creditors: amounts falling due after more than one year
2024
2023
£
£
Bank loans and overdrafts
1,344,654
889,654
9
Related party transactions
The company is exempt from disclosing transactions entered into between wholly owned members of the same group.
During the year the company continued to be provided a loan by the ultimate parent company, Cityshape Investments Limited. The loan is interest free and repayable on demand. The balance owed as at the year-end amounted to £45,176 (2023: £320,000).
During the year, the company provided Cityshape Investments Limited with a separate interest bearing loan. Interest was charged on the loan at a rate of 4% per annum, amounting to £1,138. The balance owed as at the year-end to the company amounted to £120,750 (2023: £Nil).
10
Parent company
Throughout the current and preceding years, the immediate parent undertaking was Maxfield & Sons Limited, a company registered in England and Wales.
The ultimate parent undertaking is Cityshape Investments Limited, a company registered in England and Wales.
FOLLIS INVESTMENTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 8 -
11
Prior period adjustment
Reconciliation of changes in equity
1 July
30 June
2022
2023
£
£
Adjustments to prior year
Tax on profit
(59,988)
(71,276)
Equity as previously reported
5,480,426
5,462,632
Equity as adjusted
5,420,438
5,391,356
Analysis of the effect upon equity
Revaluation reserve
(26,522)
(71,276)
Profit and loss reserves
(33,466)
-
(59,988)
(71,276)
Reconciliation of changes in profit for the previous financial period
2023
£
Adjustments to prior year
Tax on profit
(11,288)
Profit as previously reported
203,566
Profit as adjusted
192,278
Notes to reconciliation
A prior period adjustment has been made to provisions for liabilities. This adjustment reflects a more accurate calculation of deferred taxation. This adjustment is based on knowledge available prior to the 2022 balance sheet date. The adjustment noted results in an increase in the deferred tax liability of £71,276 as at 30 June 2023, a decrease in profit of £11,288 against tax on profit as at 30 June 2023, a decrease in revaluation reserve of £26,522 as at 30 June 2022 and a decrease in profit and loss reserves of £33,466 as at 30 June 2022,
The above adjustment also reflects an amendment to the transfer of reserves between profit and loss reserves and revaluation reserves to correctly reflect the split.