First Degree Investment Management Ltd is a private company limited by shares incorporated in England and Wales. The registered office is 15 Arundel Gate, Sheffield, South Yorkshire, S1 2PN.
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 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.
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.
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, including creditors and bank loans, 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.
Share capital issued by the company is recorded at the proceeds received, net of transaction costs. Dividends payable on share capital are recognised as liabilities once they are no longer at the discretion of the company.
The average monthly number of persons (including directors) employed by the company during the year was:
The investment properties were valued as at 12 February 2024 on an open market basis by SMC Brownill Vickers, a firm of independent Chartered Surveyors. The directors believe this valuation to be the fair value of the investment properties at 30 June 2024.
See note 8 for details of the bank loan security.
The bank loans are secured by a floating charge against all assets of the company, and by fixed charges against investment property as detailed in note 4.
First Degree (Devonshire Works) Limited
During the year, management charges of £45,731 (2023: £47,500) were received from First Degree (Devonshire Works) Limited, a company in which J J Vardy and A R Turner are directors. At the year end the total amounts owed to the company from First Degree (Devonshire Works) Limited were £100,000 (2023: £100,000) which is included within other debtors, and £21,585 (2023: £14,035) which is included within trade debtors. Interest has been charged on this loan during the year of £5,000 (2023: £5,000).
Turner Investments Ltd
During the year, management charges of £59,167 (2023: £118,000) and rent of £33,333 (2023: £40,000) were received from Turner Investments Ltd, a connected company. At the year end the total amount owed by the company to Turner Investments Ltd was £Nil (2023: £90,000) which is included within other creditors. At the year end the total amount owed to the company from Turner Investments Ltd was £3,376 (2023: £1,271) which is included within trade debtors. No interest has been charged on this loan.
Darlton Hall Estates Limited
During the year, management charges of £2,250 (2023: £3,000) were paid to Darlton Hall Estates Limited, a company in which A R Turner is a director. At the year end the total amounts owed from the company to Darlton Hall Estates Limited were £150,000 (2023: £100,000) which is included within other creditors falling due after more than one year, and £3,000 (2023: £2,000) which is included within trade creditors. An interest credit was received on the loan during the year of £4,519 (2023: £8,000 interest payable).
Mountguard Properties Limited
At the year end the total amount owed from the company to Mountguard Properties Limited, a company in which J J Vardy is a director, was £50,000 (2023: £60,000) and is included within other creditors falling due after more than one year. Interest has been charged on this loan during the year of £3,083 (2023: £3,000).
HTS Directors' Pension Fund
During the year, management charges of £8,000 (2023: £ Nil) were received from the HTS Directors' Pension Fund, a fund in which A R Turner is a trustee. At the year end the total amount owed to the company from the HTS Directors' Pension Fund was £2,400 (2023: £ 2,400) which is included within trade debtors.
GPF (NOH) Ltd
During the year, management charges of £9,790 (2023: £2,527) were received from GPF (NOH) Ltd, a company in which A R Turner and J J Vardy are directors. At the year end the total amount owed to the company from GPF (NOH) Ltd was £10,675 (2023: £3,033) which is included within trade debtors.