Company registration number 14976018 (England and Wales)
CAPITAL ASSETS LIMITED
UNAUDITED FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 JULY 2024
PAGES FOR FILING WITH REGISTRAR
CAPITAL ASSETS LIMITED
CONTENTS
Page
Balance sheet
1
Notes to the financial statements
2 - 5
CAPITAL ASSETS LIMITED
BALANCE SHEET
- 1 -
2024
Notes
£
£
Fixed assets
Investment property
3
418,503
Current assets
Cash at bank and in hand
9,018
Creditors: amounts falling due within one year
4
(128,005)
Net current liabilities
(118,987)
Total assets less current liabilities
299,516
Creditors: amounts falling due after more than one year
5
(300,050)
Net liabilities
(534)
Capital and reserves
Called up share capital
6
1
Profit and loss reserves
(535)
Total equity
(534)
For the financial period ended 31 July 2024 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.
The member has not required the company to obtain an audit of its financial statements for the period 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.
The financial statements were approved by the board of directors and authorised for issue on 24 March 2025 and are signed on its behalf by:
J Hill
Director
Company registration number 14976018 (England and Wales)
CAPITAL ASSETS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 JULY 2024
- 2 -
1
Accounting policies
Company information
Capital Assets Limited is a private company limited by shares incorporated in England and Wales. The registered office is Rectory House, Lower Strensham, Worcestershire, WR8 9LW.
1.1
Reporting period
The financial statements cover the first period from incorporation on 3 July 2023 to 31 July 2024.
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, modified to include the revaluation of investment properties at fair value. The principal accounting policies adopted are set out below.
1.3
Going concern
The company has returned a loss for the first period of trading and has net liabilities at 31 July 2024. The directors have confirmed that they will provide the company with sufficient working capital in order for it to meet its ongoing liabilities for the foreseeable future. They have also confirmed that they will not request repayment of balances due to them until financial circumstances of the company allow. On this basis the company adopts the going concern basis of accounting.
1.4
Turnover
Turnover from the rental of the investment property is recognised as the entity earns the right to the income and when it is probable that the economic benefits will flow to the company.
1.5
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.
1.6
Cash and cash equivalents
Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.
CAPITAL ASSETS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 JULY 2024
1
Accounting policies
(Continued)
- 3 -
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 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.
Debtors and creditors with no stated interest rate and receivable or payable within one year are recorded at transaction price. Any losses arising from impairment are recognised in the profit and loss account in other administrative expenses.
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 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.
1.10
Employee benefits
The costs of short-term employee benefits are recognised as a liability and an expense. The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.
CAPITAL ASSETS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 JULY 2024
- 4 -
2
Employees
The average monthly number of persons (including directors) employed by the company during the period was:
2024
Number
Total
2
3
Investment property
2024
£
Fair value
At 3 July 2023
Additions
418,503
At 31 July 2024
418,503
The investment property was subject to a directors' valuation at 31 July 2024 .The valuation was made on an open market value basis by reference to market evidence of transaction prices for similar properties.
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
£
Cost
418,503
Accumulated depreciation
-
Carrying amount
418,503
4
Creditors: amounts falling due within one year
2024
£
Other creditors
125,624
Accruals and deferred income
2,381
128,005
5
Creditors: amounts falling due after more than one year
2024
Notes
£
Bank loans and overdrafts
300,050
CAPITAL ASSETS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 JULY 2024
5
Creditors: amounts falling due after more than one year
(Continued)
- 5 -
The bank loan is secured by a charge over the company's investment property.
6
Called up share capital
2024
2024
Ordinary share capital
Number
£
Issued and fully paid
Ordinary shares of £1 each
1
1
On incorporation 1 Ordinary share of £1 was issued for cash at par.
7
Related party transactions
The following amounts were outstanding at the reporting end date:
2024
Amounts due to related parties
£
Key management personnel
125,624
The amounts noted above are interest free and repayable on demand.