Company registration number 02353986 (England and Wales)
GAINLIVE LIMITED
UNAUDITED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024
PAGES FOR FILING WITH REGISTRAR
GAINLIVE LIMITED
CONTENTS
Page
Balance sheet
1 - 2
Notes to the financial statements
3 - 8
GAINLIVE LIMITED
BALANCE SHEET
AS AT
31 MARCH 2024
31 March 2024
- 1 -
2024
2023
Notes
£
£
£
£
Fixed assets
Tangible assets
4
6,599
8,119
Investment property
5
15,653,400
14,783,400
15,659,999
14,791,519
Current assets
Stocks
2,286,117
1,925,396
Debtors
6
1,727,933
1,449,107
Cash at bank and in hand
36,966
3,768
4,051,016
3,378,271
Creditors: amounts falling due within one year
7
(2,121,870)
(971,480)
Net current assets
1,929,146
2,406,791
Total assets less current liabilities
17,589,145
17,198,310
Creditors: amounts falling due after more than one year
8
(3,662,846)
(4,382,957)
Provisions for liabilities
9
(726,761)
(390,559)
Government grants
10
(48,000)
(56,000)
Net assets
13,151,538
12,368,794
Capital and reserves
Called up share capital
1,000
1,000
Revaluation reserve
5,001,972
4,468,174
Profit and loss reserves
8,148,566
7,899,620
Total equity
13,151,538
12,368,794
GAINLIVE LIMITED
BALANCE SHEET (CONTINUED)
AS AT
31 MARCH 2024
31 March 2024
- 2 -
For the financial year ended 31 March 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 director acknowledges his 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 director of the company has elected not to include a copy of the profit and loss account within the financial statements.true
The financial statements were approved and signed by the director and authorised for issue on 14 January 2025
Mr C R Watts
Director
Company registration number 02353986 (England and Wales)
GAINLIVE LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024
- 3 -
1
Accounting policies
Company information
Gainlive Limited is a private company limited by shares incorporated in England and Wales. The registered office is Maple House, Norton Green Lane, Norton Canes, Cannock, Staffordshire, WS11 9SS.
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.
1.2
Turnover
Turnover represents net rents charged and property sales, excluding value added tax.
Turnover from the sale of land and properties is only recognised when the amounts to be recognised are fixed or determinable and collectability is reasonably assured.
Rental income from operating leases is recognised on a straight line basis over the term of the lease.
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:
Plant and equipment
15% on reducing balance
Motor vehicles
25% on 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 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.
Ground rents included within investment properties are stated at cost.
GAINLIVE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
1
Accounting policies
(Continued)
- 4 -
1.5
Stocks
Stocks consist of land and properties in the course of development and are valued at the lower of cost and net realisable value and include direct costs.
Long term contracts
Long term projects are assessed on a project by project basis, and are reflected in the profit and loss account by recording turnover and related costs as project activity progresses.
Turnover is calculated as being that proportion of the project price attributable to the stage of completion reached. Where it is considered that the outcome of a long term project can be assessed with reasonable certainty before its conclusion then a prudently calculated profit is recognised. This profit is calculated as that proportion of total profit attributable to the stage reached less a provision, if appropriate, for uncertainty of outcome. Related costs recognised in the profit and loss account represent the difference between reported turnover and reported profit. Foreseeable losses are recognised in the period in which they become apparent.
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, 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.
1.7
Financial instruments
The company only enters into basic financial instrument transactions that result in the recognition of financial assets and liabilities like trade and other accounts receivable and payable and loans to related parties.
Financial assets, are assessed for indicators of impairment at the end of each reporting period for objective evidence of impairment. If objective evidence of impairment is found, an impairment loss is recognised in the Profit and Loss Account.
For financial assets carried at amortised cost, the amount of the impairment loss is measured as the difference between the asset's carrying amount and the present value of estimated future cash flows, discounted at the financial asset's original effective interest rate.
For financial assets measured at cost less impairment, the impairment loss is measured as the difference between the asset's carrying amount and best estimate of the recoverable amount, which is an approximation of the amount the company would receive for the asset if it was sold at the balance sheet date.
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 creditors, 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 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.
GAINLIVE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
1
Accounting policies
(Continued)
- 5 -
1.8
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.
1.9
Government grants
Government grants are recognised at the fair value of the asset received or receivable when there is reasonable assurance that the grant conditions will be met and the grants will be received.
A grant that specifies performance conditions is recognised in income when the performance conditions are met. Where a grant does not specify performance conditions it is recognised in income when the proceeds are received or receivable. A grant received before the recognition criteria are satisfied is recognised as a liability.
1.10
Balances with group undertakings are deemed to be repayable on demand, since no formal agreement exists, and are disclosed as due within one year.
1.11
All development costs relating to properties that are completed and are in use for the purposes of generating rental income are capitalised in the year in which the rental income commences.
GAINLIVE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 6 -
2
Judgements and key sources of estimation uncertainty
In the application of the company’s accounting policies, the director is 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
4
Tangible fixed assets
Plant and equipment
Motor vehicles
Total
£
£
£
Cost
At 1 April 2023 and 31 March 2024
6,000
16,963
22,963
Depreciation and impairment
At 1 April 2023
900
13,944
14,844
Depreciation charged in the year
765
755
1,520
At 31 March 2024
1,665
14,699
16,364
Carrying amount
At 31 March 2024
4,335
2,264
6,599
At 31 March 2023
5,100
3,019
8,119
5
Investment property
2024
£
Fair value
At 1 April 2023
14,783,400
Revaluations
870,000
At 31 March 2024
15,653,400
The investment properties were valued on an open market basis on 31st March 2024 by the directors.
GAINLIVE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
5
Investment property
(Continued)
- 7 -
The above investment properties are held for use in operating leases.
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
9,924,666
9,924,666
Accumulated depreciation
-
-
Carrying amount
9,924,666
9,924,666
6
Debtors
2024
2023
Amounts falling due within one year:
£
£
Trade debtors
121,430
72,493
Amounts owed by group undertakings
1,543,644
1,319,238
Other debtors
62,859
57,376
1,727,933
1,449,107
7
Creditors: amounts falling due within one year
2024
2023
£
£
Bank loans and overdrafts
1,130,566
100,002
Trade creditors
293,520
217,032
Corporation tax
532,441
506,687
Other taxation and social security
20,772
19,610
Other creditors
144,571
128,149
2,121,870
971,480
8
Creditors: amounts falling due after more than one year
2024
2023
£
£
Bank loans and overdrafts
3,562,146
4,320,745
Other creditors
100,700
62,212
3,662,846
4,382,957
GAINLIVE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
8
Creditors: amounts falling due after more than one year
(Continued)
- 8 -
The bank borrowings are secured has by way of a legal charge over the company's investment properties.
Guarantees have also been provided by C R Watts, the director, and Craig & Watts Holdings, the parent company.
9
Provisions for liabilities
2024
2023
£
£
Deferred tax liabilities
726,761
390,559
10
Government grants
2024
2023
£
£
Arising from government grants
48,000
56,000
The above consists of deferred government grants received towards the cost of developing investment properties. Craig & Watts Holdings Ltd, the parent company, has provided security in the form of a first legal charge over one of its properties, for which a cross guarantee exists between the companies.
11
Parent company
The controlling party is Craig & Watts Holdings Limited the parent company incorporated in England and Wales. The ultimate controlling party is C R Watts.