REGISTERED NUMBER: |
FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MAY 2024 |
FOR |
FORTDENE LIMITED |
REGISTERED NUMBER: |
FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MAY 2024 |
FOR |
FORTDENE LIMITED |
FORTDENE LIMITED (REGISTERED NUMBER: 03043871) |
CONTENTS OF THE FINANCIAL STATEMENTS |
for the year ended 31 May 2024 |
Page |
Company Information | 1 |
Statement of Financial Position | 2 |
Notes to the Financial Statements | 4 |
FORTDENE LIMITED |
COMPANY INFORMATION |
for the year ended 31 May 2024 |
DIRECTORS: |
REGISTERED OFFICE: |
REGISTERED NUMBER: |
FORTDENE LIMITED (REGISTERED NUMBER: 03043871) |
STATEMENT OF FINANCIAL POSITION |
31 May 2024 |
2024 | 2023 |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Investment property | 4 |
CURRENT ASSETS |
Debtors | 5 |
Cash at bank |
CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
6 |
NET CURRENT LIABILITIES | ( |
) | ( |
) |
TOTAL ASSETS LESS CURRENT LIABILITIES |
CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR |
7 |
( |
) |
PROVISIONS FOR LIABILITIES | 9 | ( |
) | ( |
) |
NET ASSETS |
CAPITAL AND RESERVES |
Called up share capital | 10 |
Fair value reserve | 11 | ( |
) | ( |
) |
Retained earnings |
SHAREHOLDERS' FUNDS |
The directors acknowledge their responsibilities for: |
(a) | ensuring that the company keeps accounting records which comply with Sections 386 and 387 of the Companies Act 2006 and |
(b) | preparing financial statements which give a true and fair view of the state of affairs of the company as at the end of each financial year and of its profit or loss for each financial year in accordance with the requirements of Sections 394 and 395 and which otherwise comply with the requirements of the Companies Act 2006 relating to financial statements, so far as applicable to the company. |
FORTDENE LIMITED (REGISTERED NUMBER: 03043871) |
STATEMENT OF FINANCIAL POSITION - continued |
31 May 2024 |
The financial statements were approved by the Board of Directors and authorised for issue on |
FORTDENE LIMITED (REGISTERED NUMBER: 03043871) |
NOTES TO THE FINANCIAL STATEMENTS |
for the year ended 31 May 2024 |
1. | Statutory information |
Fortdene Limited is a |
The presentation currency of the financial statements is the Pound Sterling (£). |
2. | Accounting policies |
Basis of preparing the financial statements |
These financial statements have been prepared in accordance with the provisions of Section 1A ''Small Entities'' of Financial Reporting Standard 102 ''The Financial Reporting Standard applicable in the UK and Republic of Ireland'' and the Companies Act 2006. The financial statements have been prepared under the historical cost convention as modified to include investment properties at fair value. |
Related party exemption |
The company has taken advantage of the exemption, under the terms of Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland', not to disclose related party transactions with wholly owned subsidiaries within the group. |
Significant judgements |
In applying the company's accounting policies the directors are required to make judgements in determining the carrying amounts of assets and liabilities. |
The critical judgements made by the directors relate to assessing: |
the market value of the investment properties, |
the recoverability of certain trade and other debtors. |
Turnover |
Turnover represents operating lease income from investment properties which is recognised in profit or loss on a straight line basis over the lease term. Lease incentives are spread over the lease term. |
Investment property |
Investment properties are initially measured at cost which comprises the purchase price and any directly attributable expenditure. Investment properties for which fair value can be measured reliably without undue cost or effort are remeasured at fair value at each reporting date with changes in fair value recognised in profit or loss. |
Fair value is determined by the directors by reference to reports procured from independent qualified valuers who use the investment method of valuation. This approach involves applying market-derived capitalisation yields to current and market-derived future income streams with appropriate adjustments for income voids arising from vacancies or rent-free periods. These capitalisation yields and future income streams are derived from comparable property and leasing transactions and are considered to be key inputs in the valuation. Where such reports are not available the directors prepare the valuation internally using the same methodology. |
FORTDENE LIMITED (REGISTERED NUMBER: 03043871) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
for the year ended 31 May 2024 |
2. | Accounting policies - continued |
Financial instruments |
Financial instruments are recognised when the company becomes party to the contractual provisions of the financial instrument. The company holds only basic financial instruments which comprise cash and cash equivalents, trade and other debtors, trade and other creditors and loans. |
Cash and cash equivalents - these include cash in hand and deposits held with banks. |
Trade and other debtors - these are initially recognised at the transaction price and are subsequently measured at amortised cost using the effective interest method, less any provision for impairment. Amounts that are receivable within one year are measured at the undiscounted amount expected to be receivable, net of any impairment. |
Trade and other creditors and loans - these are initially measured at the transaction price and are subsequently measured at amortised cost using the effective interest method. Amounts that are payable within one year are measured at the undiscounted amount expected to be payable. |
Taxation |
Taxation for the year comprises current and deferred tax. Tax is recognised in the Income Statement. |
Current or deferred taxation assets and liabilities are not discounted. |
Current tax is recognised at the amount of tax payable using the tax rates and laws that that have been enacted or substantively enacted by the statement of financial position date. |
Deferred tax |
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the statement of financial position date. |
Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference. Deferred tax on investment properties held at fair value is measured using the rates and allowances that would apply to the sale of the assets. |
Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. |
Going concern |
The company owns a portfolio of commercial properties tenanted by quality tenants and financed in the main by bank loans repayable by instalments. As a result of its investment in property, the company has net current liabilities of £1,806,987 (2023 - £4,535,067). Of this balance £1,571,086 (2023 - £1,790,886) is due to Prestigic Holdings Limited who has confirmed that it will continue to support the company and will not require repayment of these funds to the detriment of the company's creditors in the foreseeable future. |
Projections indicate that the rental income from the remaining properties is sufficient to meet the repayments due on the loan from the Trustees of the Prestigic Holdings Limited Retirement Benefit Scheme, the Santander loan and the group's overhead expenditure. |
As a consequence the directors believe that the company is well placed to manage its business risks successfully. The directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Thus they continue to adopt the going concern basis of accounting in preparing the annual financial statements. |
FORTDENE LIMITED (REGISTERED NUMBER: 03043871) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
for the year ended 31 May 2024 |
3. | Employees and directors |
The average number of employees during the year was |
4. | Investment property |
Total |
£ |
Fair value |
At 1 June 2023 |
Disposals | ( |
) |
Revaluations | (906,500 | ) |
At 31 May 2024 |
Net book value |
At 31 May 2024 |
At 31 May 2023 |
The investment properties held at 31 May 2024 were valued as at that date at £7,820,000 (2023 - £9,997,576). The properties were valued by Adrian Goldsmith, a director, on an open market value basis. |
The original cost of the properties was £11,954,439 (2023 - £13,512,941). |
Fair value at 31 May 2024 is represented by: |
£ |
Valuation in 2015 | (19,289 | ) |
Valuation in 2016 | 74,118 |
Valuation in 2017 | 573,158 |
Valuation in 2018 | (488,064 | ) |
Valuation in 2019 | (667,952 | ) |
Valuation in 2020 | (594,309 | ) |
Valuation in 2021 | (1,561,555 | ) |
Valuation in 2022 | 278,500 |
Valuation in 2023 | (1,109,972 | ) |
Valuation in 2024 | (619,074 | ) |
Cost | 11,954,439 |
7,820,000 |
5. | Debtors: amounts falling due within one year |
2024 | 2023 |
£ | £ |
Trade debtors |
Other debtors |
VAT recoverable |
Prepayments and accrued income |
FORTDENE LIMITED (REGISTERED NUMBER: 03043871) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
for the year ended 31 May 2024 |
6. | Creditors: amounts falling due within one year |
2024 | 2023 |
£ | £ |
Bank loans |
Other loans |
Trade creditors |
Corporation tax |
Other creditors |
Amounts owed to group undertakings | 1,571,086 | 1,790,886 |
Accruals and deferred income |
The amounts owed to group undertakings are unsecured and have no fixed repayment terms. |
The Other loans relate to a loan from the Trustees of the Prestigic Holdings Retirement Benefit Scheme. |
7. | Creditors: amounts falling due after more than one year |
2024 | 2023 |
£ | £ |
Bank loans - amounts falling |
due within one to two years | 60,000 | - |
Bank loans - amounts falling |
due within two to five years | 314,065 | - |
Other loans - amounts falling |
due within one to two years |
Other loans - amounts falling |
due within two to five years |
8. | Secured debts |
The following secured debts are included within creditors: |
2024 | 2023 |
£ | £ |
Bank loans |
Other loans |
The bank and other loans are secured by way of fixed charges over the company's investment properties and by floating charges over all of the company's assets. |
The bank loans are secured by way of a fixed charge over several of the company's investment properties in favour of Santander UK PLC dated 28 September 2017. |
The other loans are secured by way of a fixed charge over Bohunt Manor, Liphook in favour of the Trustees of the Prestigic Holdings Limited Retirement Benefit Scheme dated 28 September 2023. |
FORTDENE LIMITED (REGISTERED NUMBER: 03043871) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
for the year ended 31 May 2024 |
9. | Provisions for liabilities |
2024 | 2023 |
£ | £ |
Deferred tax | 163,877 | 223,701 |
Deferred |
tax |
£ |
Balance at 1 June 2023 |
Transfer to profit and loss | (59,824 | ) |
account |
Balance at 31 May 2024 |
The provision represents tax on accelerated capital allowances. |
10. | Called up share capital |
Allotted, issued and fully paid: |
Number: | Class: | Nominal | 2024 | 2023 |
value: | £ | £ |
Ordinary | £1 | 200 | 200 |
11. | Reserves |
Fair |
value |
reserve |
£ |
At 1 June 2023 | ( |
) |
Fair value revision during year | (906,500 | ) |
Fair value surplus realised | 287,426 |
At 31 May 2024 | ( |
) |
12. | Contingent liabilities |
The company is included in a group registration for VAT purposes and is therefore jointly and severally liable for all other group companies' unpaid debts in this connection, amounting to £32,623 (2023 - £43,852) at 31 May 2024. |
13. | Ultimate controlling party |
Throughout the year the company was controlled by its holding company, Prestigic Holdings Limited of 30 Macaulay Road, London, SW4 0QX, the ultimate owner is Adrian Goldsmith. |