Company Registration No. 01732723 (England and Wales)
TWINGLOBE LIMITED
ANNUAL REPORT AND
FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024
TWINGLOBE LIMITED
COMPANY INFORMATION
Directors
Mr D Thakerar
Mr M Thakerar
Mr K Thakerar
Mr N Thakerar
Secretary
Mr M Thakerar
Company number
01732723
Registered office
18 Crescent West
Hadley Wood
Barnet
Hertfordshire
EN4 0EJ
Auditor
Morris Lane
31/33 Commercial Road
Poole
Dorset
BH14 0HU
TWINGLOBE LIMITED
CONTENTS
Page
Strategic report
1
Directors' report
2 - 3
Independent auditor's report
4 - 6
Statement of comprehensive income
7
Statement of financial position
8
Statement of changes in equity
9
Statement of cash flows
10
Notes to the financial statements
11 - 24
Non statutory information
Detailed trading, profit and loss account
TWINGLOBE LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 30 JUNE 2024
- 1 -
The directors present the strategic report for the year ended 30 June 2024.
Fair review of the business
During the year the company continued to lease freehold land and buildings to its subsidiary company, Twinglobe Care Limited from which it operates an 83-bed nursing home. Rental income is commensurate with the value of the underlying asset which is driven by the performance of the nursing home.
Operating profit for the year ended 30 June 2024 was £1,004,875 compared with £1,006,215 in the year ended 30 June 2023. Overall, the profit for the financial year was £1,755,881 in the year ended 30 June 2024 compared to £3,072,202 for the year ended 30 June 2023 with the prior year being higher mainly due to a fair value uplift in the investment property. Dividends totalling £900,000 (2023: £1,434,818) were paid to the parent company in the year ended 30 June 2024. Net assets as at 30 June 2024 increased to £12,899,154 from £12,043,273 as at 30 June 2023.
Principal risks and uncertainties
The principal risks and uncertainties facing the group are as follows:
Financial
The ratios of bank loans to current value and interest to EBITDA remain low. The bank loan is subject to various financial covenants and the directors continue to monitor these to ensure that they are complied with.
Operational
Operational risks regarding the activities of the company relate to maintenance of the freehold land and buildings. This is mitigated by regular inspections to ensure that all potential issues are identified at an early stage so that they can be rectified as soon as they are known.
The directors continually review risks and uncertainties throughout the period and believe that they have the management systems in place to deal with changing situations.
Development and performance
The directors regularly review the development and performance of Twinglobe Care Limited to ensure that there is no negative impact on the company. By undertaking these regular reviews, the directors can ensure that the underlying asset value is maintained and that any issues are addressed as soon as they arise.
Key Performance Indicators
The directors consider the main Key Performance Indicators to be operating profit and asset values, both of which are closely monitored by the directors and are in line with their expectations.
Mr D Thakerar
Director
20 February 2025
TWINGLOBE LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 30 JUNE 2024
- 2 -
The directors present their annual report and financial statements for the year ended 30 June 2024.
Principal activities
The principal activity of the company continued to be that of letting investment property.
Results and dividends
The results for the year are set out on page 7.
Ordinary dividends were paid amounting to £900,000. The directors do not recommend payment of a further 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 D Thakerar
Mr M Thakerar
Mr K Thakerar
Mr N Thakerar
Financial instruments
Investments of cash surpluses, borrowings and derivative instruments are made through banks and companies which must fulfil credit rating criteria approved by the Board.
All customers who wish to trade on credit terms are subject to credit verification procedures. Trade debtors are monitored on an ongoing basis and provision is made for doubtful debts where necessary.
Auditor
Morris Lane were appointed as auditor to the company and in accordance with section 485 of the Companies Act 2006, a resolution proposing that they be re-appointed 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.
TWINGLOBE LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 3 -
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.
On behalf of the board
Mr D Thakerar
Director
20 February 2025
TWINGLOBE LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF TWINGLOBE LIMITED
- 4 -
Opinion
We have audited the financial statements of Twinglobe Limited (the 'company') for the year ended 30 June 2024 which comprise the statement of comprehensive income, the statement of financial position, 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 FRS 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 30 June 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.
TWINGLOBE LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF TWINGLOBE 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 and the directors' report.
We have nothing to report in respect of the following matters where 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.
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.
Identifying and assessing the risks of material misstatement due to irregularities, including fraud
We obtained an understanding of the legal and regulatory frameworks that are applicable to the company through discussion with the directors and from our general commercial experience. The identified laws and regulations were communicated to the audit team in order that they remained alert to any non-compliance throughout the audit.
The company is subject to laws and regulations which have a direct effect on the financial statements and the disclosures contained therein. These have been identified as: the financial reporting framework under which the company operates - Financial Reporting Standard 102; Statutory Instrument 2008/410 – The Large and Medium-sized Companies and Groups (Accounts and Reports) Regulations 2008; the Companies Act 2006 and taxation legislation including value added tax and corporation tax.
In addition to the above, the company is subject to other operational laws and regulations where non-compliance may have a material effect on the financial statements. Non-compliance of such laws and regulations may result in litigation or the imposition of fines which could have a material impact on amounts or disclosures in the financial statements. We have identified the following laws and regulations which are more likely to have significant effect as: compliance with health and safety laws and General Data Protection Regulation (GDPR).
In order to identify risks of material misstatement due to fraud, we assessed events and conditions where opportunities and incentives may exist within the company for fraud to occur. Our risk assessment procedures included enquiring of directors as to any instances of fraud, their procedures to identify fraud and by using analytical procedures to identify any unusual or unexpected relationships. We identified the greatest potential for fraud to be in relation to recognition of income and, as required by auditing standards, we are also required to perform specific procedures to respond to the risk of management override.
TWINGLOBE LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF TWINGLOBE LIMITED
- 6 -
The identified risks of material misstatement due to fraud were communicated to the audit team in order that they remained alert to any non-compliance throughout the audit.
Audit procedures designed to respond to the risks of material misstatement due to irregularities, including fraud
As a result of performing our risk assessments as detailed above, we planned and performed our audit so as to identify non-compliance with such laws and regulations, including fraud by undertaking the following:
Reviewing the disclosures contained within the financial statements and testing to supporting documentation in order to assess compliance with provisions of relevant laws and regulations described as having a direct effect on the financial statements.
Enquiring of the directors concerning actual and potential non-compliance of laws and regulations.
Performing analytical procedures to identify any unusual or unexpected relationships that may indicate risks of material misstatement due to fraud.
Revenue recognition was addressed by obtaining an understanding of relevant controls with regard to revenue recognition and undertaking substantive testing to ensure that revenue is recognised in line with the company’s accounting policy and in line with accounting standards.
The risk relating to management override of controls was addressed by testing the appropriateness of journal entries and other adjustments, assessing whether accounting estimates are indicative of potential bias and evaluating the business rationale of any significant transactions that are considered unusual or outside the normal course of business.
Due to the inherent limitations of an audit, there is an unavoidable risk that, despite properly planning and performing our audit in accordance with accounting standards, some material misstatements may not have been detected.
Auditing standards limit the audit procedures required to identify non-compliance with other operational laws and regulations to enquiry of directors and management and inspection of any correspondence. If a breach of operational regulations is not evident from relevant correspondence or disclosed to us, an audit is unlikely to detect that breach. In addition, the further removed non-compliance with laws and regulations is from the events and transactions included in the financial statements, the less likely the inherently limited procedures required by auditing standards would identify it.
In addition, the risk of not detecting material misstatement from due to fraud is higher than the risk of one not being detected through error as fraud may involve deliberate concealment through collusion, forgery, misrepresentations and intentional omissions.
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.
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.
Michelle Pettifer (Senior Statutory Auditor)
For and on behalf of Morris Lane
21 February 2025
Chartered Accountants
Statutory Auditor
31/33 Commercial Road
Poole
Dorset
BH14 0HU
TWINGLOBE LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 30 JUNE 2024
- 7 -
2024
2023
Notes
£
£
Revenue
3
1,174,000
1,174,000
Administrative expenses
(169,125)
(167,785)
Operating profit
4
1,004,875
1,006,215
Investment income
1,459,265
1,392,474
Finance costs
7
(598,146)
(468,485)
Other gains and losses
8
-
2,674,283
Profit before taxation
1,865,994
4,604,487
Tax on profit
9
(110,113)
(1,532,285)
Profit for the financial year
1,755,881
3,072,202
The income statement has been prepared on the basis that all operations are continuing operations.
TWINGLOBE LIMITED
STATEMENT OF FINANCIAL POSITION
- 8 -
2024
2023
Notes
£
£
£
£
Non-current assets
Property, plant and equipment
11
28,695
29,204
Investment properties
12
22,674,283
22,674,283
Investments
13
100
100
22,703,078
22,703,587
Current assets
Trade and other receivables
16
1,309,373
1,309,832
Cash and cash equivalents
930,340
273,345
2,239,713
1,583,177
Current liabilities
17
(289,126)
(317,216)
Net current assets
1,950,587
1,265,961
Total assets less current liabilities
24,653,665
23,969,548
Non-current liabilities
18
(8,056,899)
(8,236,508)
Provisions for liabilities
Deferred tax liability
20
3,697,612
3,689,767
(3,697,612)
(3,689,767)
Net assets
12,899,154
12,043,273
Equity
Called up share capital
21
3
3
Fair value reserve
22
11,389,983
11,389,983
Retained earnings
23
1,509,168
653,287
Total equity
12,899,154
12,043,273
The financial statements were approved by the board of directors and authorised for issue on 20 February 2025 and are signed on its behalf by:
Mr D Thakerar
Director
Company Registration No. 01732723
TWINGLOBE LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 JUNE 2024
- 9 -
Share capital
Fair value reserve
Retained earnings
Total
Notes
£
£
£
£
Balance at 1 July 2022
3
10,000,848
405,038
10,405,889
Year ended 30 June 2023:
Profit and total comprehensive income for the year
-
1,389,135
1,683,067
3,072,202
Dividends
10
-
-
(1,434,818)
(1,434,818)
Balance at 30 June 2023
3
11,389,983
653,287
12,043,273
Year ended 30 June 2024:
Profit and total comprehensive income for the year
-
-
1,755,881
1,755,881
Dividends
10
-
-
(900,000)
(900,000)
Balance at 30 June 2024
3
11,389,983
1,509,168
12,899,154
TWINGLOBE LIMITED
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 30 JUNE 2024
- 10 -
2024
2023
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from (absorbed by) operations
26
1,031,464
(4,625,715)
Interest paid
(598,146)
(468,485)
Income taxes paid
(186,714)
(176,564)
Net cash inflow (outflow) from operating activities
246,604
(5,270,764)
Investing activities
Purchase of property, plant and equipment
(5,473)
Interest received
33,265
139,160
Dividends received
1,426,000
1,253,314
Net cash generated from (used in) investing activities
1,453,792
1,392,474
Financing activities
Proceeds of new bank loans
8,559,500
Repayment of bank loans
(143,401)
(3,028,355)
Dividends paid
(900,000)
(1,434,818)
Net cash generated from (used in) financing activities
(1,043,401)
4,096,327
Net increase in cash and cash equivalents
656,995
218,037
Cash and cash equivalents at beginning of year
273,345
55,308
Cash and cash equivalents at end of year
930,340
273,345
TWINGLOBE LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024
- 11 -
1
Accounting policies
Company information
Twinglobe Limited is a private company limited by shares incorporated in England and Wales. The registered office is 18 Crescent West, Hadley Wood, Barnet, Hertfordshire, EN4 0EJ.
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.
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 has taken advantage of the exemption under section 400 of the Companies Act 2006 not to prepare consolidated accounts. The financial statements present information about the company as an individual entity and not about its group.
Twinglobe Limited is a wholly owned subsidiary of Twinglobe Holdings 3 Limited and the results of Twinglobe Limited are included in the consolidated financial statements of Twinglobe Holdings 3 Limited which are available from 18 Crescent West, Hadley Wood, Barnet, Hertfordshire, EN4 0EJ.
1.2
Business combinations
The cost of a business combination is the fair value at the acquisition date of the assets given, equity instruments issued and liabilities incurred or assumed, plus costs directly attributable to the business combination. The excess of the cost of a business combination over the fair value of the identifiable assets, liabilities and contingent liabilities acquired is recognised as goodwill.
The cost of the combination includes the estimated amount of contingent consideration that is probable and can be measured reliably, and is adjusted for changes in contingent consideration after the acquisition date.
Provisional fair values recognised for business combinations in previous periods are adjusted retrospectively for final fair values determined in the 12 months following the acquisition date.
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
Revenue
Revenue 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.
TWINGLOBE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
1
Accounting policies
(Continued)
- 12 -
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.
1.5
Property, plant and equipment
Property, plant and equipment 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
12.5% reducing balance
Computers
25% 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.
1.6
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.
1.7
Non-current investments
Interests in subsidiaries, associates and jointly controlled entities are initially measured at cost and subsequently measured at cost less any accumulated impairment losses. The investments are assessed for impairment at each reporting date and any impairment losses or reversals of impairment losses are recognised immediately in profit or loss.
A subsidiary is an entity controlled by the company. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.
An associate is an entity, being neither a subsidiary nor a joint venture, in which the company holds a long-term interest and where the company has significant influence. The company considers that it has significant influence where it has the power to participate in the financial and operating decisions of the associate.
Entities in which the company has a long term interest and shares control under a contractual arrangement are classified as jointly controlled entities.
1.8
Impairment of non-current 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.
TWINGLOBE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
1
Accounting policies
(Continued)
- 13 -
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.
1.9
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.
1.10
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.
Basic financial assets
Basic financial assets, which include trade and other receivables 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.
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.
TWINGLOBE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
1
Accounting policies
(Continued)
- 14 -
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 trade and other payables, 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 payables 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 payables are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.
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.
TWINGLOBE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
1
Accounting policies
(Continued)
- 15 -
Derecognition of financial liabilities
Financial liabilities are derecognised when the company’s contractual obligations expire or are discharged or cancelled.
1.11
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.
1.12
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.
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.
1.13
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 non-current 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.
TWINGLOBE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 16 -
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
Revenue
2024
2023
£
£
Revenue analysed by class of business
Rental income
1,174,000
1,174,000
2024
2023
£
£
Other significant revenue
Interest income
33,265
139,160
Dividends received
1,426,000
1,253,314
4
Operating profit
2024
2023
Operating profit for the year is stated after charging:
£
£
Fees payable to the company's auditor for the audit of the company's financial statements
8,274
7,832
Depreciation of owned property, plant and equipment
5,982
5,640
5
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2024
2023
Number
Number
Directors
4
4
Staff
1
2
Total
5
6
TWINGLOBE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
5
Employees
(Continued)
- 17 -
Their aggregate remuneration comprised:
2024
2023
£
£
Wages and salaries
111,270
89,326
Social security costs
11,783
9,473
123,053
98,799
6
Directors' remuneration
2024
2023
£
£
Remuneration for qualifying services
104,801
70,878
7
Finance costs
2024
2023
£
£
Interest on financial liabilities measured at amortised cost:
Interest on bank overdrafts and loans
584,807
408,985
Other interest on financial liabilities
59,500
584,807
468,485
Other finance costs:
Other interest
13,339
598,146
468,485
8
Other gains and losses
2024
2023
£
£
Gain on revaluation of investment property
-
2,674,283
TWINGLOBE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 18 -
9
Taxation
2024
2023
£
£
Current tax
UK corporation tax on profits for the current period
102,267
132,862
Adjustments in respect of prior periods
(15)
Total current tax
102,267
132,847
Deferred tax
Origination and reversal of timing differences
7,846
513,894
Changes in tax rates
885,544
Total deferred tax
7,846
1,399,438
Total tax charge
110,113
1,532,285
Shown in the tax charge for the year is an amount of £nil (2023: £885,544) relating to a change in the UK corporation tax rate applicable to the company. The corporation tax rate increased from 19% to 25% effective 1 April 2023.
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
1,865,994
4,604,487
Expected tax charge based on the standard rate of corporation tax in the UK of 25.00% (2023: 20.50%)
466,499
943,736
Tax effect of expenses that are not deductible in determining taxable profit
114
361
Tax effect of income not taxable in determining taxable profit
(356,500)
(256,879)
Gains not taxable
(548,121)
Under (over) provided in prior years
(15)
Depreciation in excess of capital allowances
(7,846)
(6,235)
Deferred tax on accelerated capital allowances
7,846
114,288
Deferred tax on revaluations
1,285,150
Taxation charge for the year
110,113
1,532,285
10
Dividends
2024
2023
£
£
Final paid
900,000
1,434,818
TWINGLOBE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 19 -
11
Property, plant and equipment
Fixtures and fittings
Computers
Total
£
£
£
Cost
At 1 July 2023
135,091
37,633
172,724
Additions
5,473
5,473
At 30 June 2024
135,091
43,106
178,197
Depreciation and impairment
At 1 July 2023
113,598
29,922
143,520
Depreciation charged in the year
2,686
3,296
5,982
At 30 June 2024
116,284
33,218
149,502
Carrying amount
At 30 June 2024
18,807
9,888
28,695
At 30 June 2023
21,493
7,711
29,204
Property, plant and equipment with a carrying amount of £28,695 (2023: £29,204) have been pledged to secure borrowings of the company.
12
Investment property
2024
£
Fair value
At 1 July 2023 and 30 June 2024
22,674,283
Fair value at 30 June 2023 is represented by:
£
Cost
8,046,655
Valuation in 2014
1,962,061
Valuation in 2015
141,000
Valuation in 2016
121,000
Valuation in 2019
5,010,000
Valuation in 2021
4,840,000
Valuation in 2022
(120,716)
Valuation in 2023
2,674,283
22,674,283
The investment property was valued in February 2022 by CBRE Limited, independent valuers not connected with the company on the basis of market value. The valuation conforms to International Valuation Standards and was based on recent market transactions on arm's length terms for similar properties. The directors have reviewed the valuation and consider that it has not materially changed as at 30 June 2024.
TWINGLOBE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
12
Investment property
(Continued)
- 20 -
If investment properties were stated on an historical cost basis rather than a fair value basis, the amounts would have been included as follows:
2024
2023
£
£
Cost
8,046,655
8,046,655
Accumulated depreciation
(1,374,741)
(1,268,992)
Carrying amount
6,671,914
6,777,663
Investment property with a carrying amount of £22,674,283 (2023: £22,674,283) have been pledged to secure borrowings of the company.
13
Fixed asset investments
2024
2023
Notes
£
£
Investments in subsidiaries
14
100
100
14
Subsidiaries
Details of the company's subsidiaries at 30 June 2024 are as follows:
Name of undertaking
Registered office
Class of
% Held
shares held
Direct
Twinglobe Care Limited
18 Crescent West, Barnet, England, EN4 0EJ
Ordinary
100.00
The investments in subsidiaries are stated at cost less provision for impairment.
15
Financial instruments
2024
2023
£
£
Carrying amount of financial assets
Debt instruments measured at amortised cost
1,307,803
1,307,803
Carrying amount of financial liabilities
Measured at amortised cost
8,292,279
8,418,514
TWINGLOBE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 21 -
16
Trade and other receivables
2024
2023
Amounts falling due within one year:
£
£
Amounts owed by group undertakings
1,307,803
1,307,803
Prepayments and accrued income
1,570
2,029
1,309,373
1,309,832
The carrying amount of trade and other receivables includes £1,309,373 (2023: £1,309,832) pledged as security for liabilities.
17
Current liabilities
2024
2023
Notes
£
£
Bank loans
19
164,968
128,760
Trade payables
2,220
1,445
Corporation tax
48,416
132,862
Other taxation and social security
5,330
2,348
Other payables
13,375
2,552
Accruals and deferred income
54,817
49,249
289,126
317,216
18
Non-current liabilities
2024
2023
Notes
£
£
Bank loans and overdrafts
19
8,056,899
8,236,508
Amounts included above which fall due after five years are as follows:
Payable by instalments
7,259,160
7,631,152
19
Borrowings
2024
2023
£
£
Bank loans
8,221,867
8,365,268
Payable within one year
164,968
128,760
Payable after one year
8,056,899
8,236,508
TWINGLOBE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
19
Borrowings
(Continued)
- 22 -
Bank loans included above totalling £8,221,867 (2023: £8,365,268) are secured by way of a first legal charge over the property, by way of a debenture over the assets of the company and by way of a guarantee and debenture over the assets of Twinglobe Care Limited. Interest on bank loans is charged at 1.85% over base rate per annum and the loan matures in July 2047.
20
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
459,968
452,123
Revaluations
3,237,644
3,237,644
3,697,612
3,689,767
2024
Movements in the year:
£
Liability at 1 July 2023
3,689,767
Charge to profit or loss
7,845
Liability at 30 June 2024
3,697,612
Of the deferred tax liability set out above, an amount of £nil (2023: £6,820) is expected to reverse within 12 months and related to accelerated capital allowances.
21
Share capital
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
3
3
3
3
Ordinary shares carry voting rights but have no right to fixed income or fixed repayment of capital.
22
Fair value reserve
2024
2023
£
£
At the beginning of the year
11,389,983
10,000,848
Non distributable profits in the year
-
1,389,135
At the end of the year
11,389,983
11,389,983
TWINGLOBE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 23 -
23
Reserves
Fair value reserve
The fair value reserve represents the net cumulative transfer of unrealised gains and losses net of deferred tax on the remeasurement of investment properties. Surpluses arising from the remeasurement of investment properties are transferred to the fair value reserve. Deficits are eliminated against any fair value gains previously recognised and any excess is charged to the statement of comprehensive income. Surpluses or deficits realised on the disposal of an asset are transferred from the fair value reserve to the profit and loss account. This reserve is not distributable.
Retained earnings
Retained earnings represents cumulative profits or losses net of dividends paid, other adjustments and the transfer of unrealised profits or losses net of deferred tax on the remeasurement of investment properties to the fair value reserve.
24
Related party transactions
The following amounts were outstanding at the reporting end date:
2024
2023
Amounts due to related parties
£
£
Key management personnel
5
5
5
5
The following amounts were outstanding at the reporting end date:
2024
2023
Amounts due from related parties
£
£
Entities with control, joint control or significant influence over the company
1,307,803
1,307,802
1,307,803
1,307,802
25
Ultimate controlling party
The immediate and ultimate parent company is Twinglobe Holdings 3 Limited, whose registered office is 18 Crescent West, Hadley Wood, Barnet, Hertfordshire EN4 0EJ.
The ultimate controlling parties are Mr D Thakerar and Mr M Thakerar.
The smallest and largest group into which the company is consolidated is Twinglobe Holdings 3 Limited.
TWINGLOBE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 24 -
26
Cash generated from (absorbed by) operations
2024
2023
£
£
Profit for the year after tax
1,755,881
3,072,202
Adjustments for:
Taxation charged
110,113
1,532,285
Finance costs
598,146
468,485
Investment income
(1,459,265)
(1,392,474)
Depreciation and impairment of property, plant and equipment
5,982
5,640
Other gains and losses
-
(2,674,283)
Movements in working capital:
Decrease (increase) in trade and other receivables
459
(1,308,049)
Increase (decrease) in trade and other payables
20,148
(4,329,521)
Cash generated from (absorbed by) operations
1,031,464
(4,625,715)
27
Analysis of changes in net debt
1 July 2023
Cash flows
30 June 2024
£
£
£
Cash at bank and in hand
273,345
656,995
930,340
Borrowings excluding overdrafts
(8,365,268)
143,401
(8,221,867)
(8,091,923)
800,396
(7,291,527)
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