REGISTERED NUMBER: |
Report of the Directors and |
Financial Statements |
for the Year Ended 31 July 2024 |
for |
J A PAYNE LIMITED |
REGISTERED NUMBER: |
Report of the Directors and |
Financial Statements |
for the Year Ended 31 July 2024 |
for |
J A PAYNE LIMITED |
J A PAYNE LIMITED (REGISTERED NUMBER: 00780856) |
Contents of the Financial Statements |
for the Year Ended 31 July 2024 |
Page |
Company Information | 1 |
Report of the Directors | 2 |
Report of the Independent Auditors | 3 |
Profit and Loss Account | 6 |
Balance Sheet | 7 |
Statement of Changes in Equity | 8 |
Notes to the Financial Statements | 9 |
J A PAYNE LIMITED |
Company Information |
for the Year Ended 31 July 2024 |
Directors: |
Secretary: |
Registered office: |
Registered number: |
Auditors: |
Northern Assurance Buildings |
9-21 Princess Street |
Manchester |
M2 4DN |
J A PAYNE LIMITED (REGISTERED NUMBER: 00780856) |
Report of the Directors |
for the Year Ended 31 July 2024 |
The directors present their report with the financial statements of the company for the year ended 31 July 2024. |
Principal activity |
The principal activity of the company in the year under review was that of investment in property and marketing of residential properties. |
Directors |
The directors shown below have held office during the whole of the period from 1 August 2023 to the date of this report. |
Going concern |
The accounts have been prepared on a going concern basis, based on the ongoing support from a related party. |
The directors consider it appropriate to prepare the financial statements on the going concern basis. |
Statement of directors' responsibilities |
The directors are responsible for preparing the Report of the Directors 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. |
Statement as to disclosure of information to auditors |
So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the company's auditors are unaware, and each director has taken all the steps that he or she ought to have taken as a director in order to make himself or herself aware of any relevant audit information and to establish that the company's auditors are aware of that information. |
This report has been prepared in accordance with the provisions of Part 15 of the Companies Act 2006 relating to small companies. |
On behalf of the board: |
Report of the Independent Auditors to the Members of |
J A Payne Limited |
Opinion |
We have audited the financial statements of J A Payne Limited (the 'company') for the year ended 31 July 2024 which comprise the Profit and Loss Account, Balance Sheet, Statement of Changes in Equity and Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 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 31 July 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. |
Basis for opinion |
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 Auditors' 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. |
Other information |
The other information comprises the information included in the report of the directors, other than the financial statements and our auditor's report thereon. The directors are responsible for the other information contained within the report of the directors. 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 the audit: |
- | the information given in the Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and |
- | the Report of the Directors has been prepared in accordance with applicable legal requirements. |
Report of the Independent Auditors to the Members of |
J A Payne Limited |
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 Report of the Directors. |
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 directors' remuneration specified by law are not made; or |
- | we have not received all the information and explanations we require for our audit; or |
- | the directors were not entitled to prepare the financial statements in accordance with the small companies regime and take advantage of the small companies' exemption from the requirement to prepare a Strategic Report or in preparing the Report of the Directors. |
Responsibilities of directors |
As explained more fully in the Statement of Directors' Responsibilities set out on page two, 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 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. |
Auditors' 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 a Report of the Auditors 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 design effectiveness of controls management has in place to prevent and detect fraud; |
- understanding how those charged with governance considered and addressed the potential for override of controls or other inappropriate influence over the financial reporting process; |
- identifying and testing journal entries, in particular any journal entries posted with unusual account combinations; |
- revenue recognition, we completed a proof in total, including understanding any gaps and anomalies in the rental income and agreeing rental income to underlying agreements and documentation; |
- challenging assumptions and judgements made by management in its significant accounting estimates, in particular we have verified the ability of management to accurately estimate property valuations. We also compared the valuations to yield information to assess the accuracy of current year estimates; |
- assessing whether the company has complied with laws and regulations. |
Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation. |
A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Auditors. |
Report of the Independent Auditors to the Members of |
J A Payne Limited |
Use of our 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 a Report of the Auditors 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. |
for and on behalf of |
Northern Assurance Buildings |
9-21 Princess Street |
Manchester |
M2 4DN |
J A PAYNE LIMITED (REGISTERED NUMBER: 00780856) |
Profit and Loss Account |
for the Year Ended 31 July 2024 |
2024 | 2023 |
Notes | £ | £ |
Turnover |
Cost of sales | ( |
) | ( |
) |
Gross profit |
Administrative expenses | ( |
) | ( |
) |
227,532 | 177,135 |
Other operating charge/income |
Operating profit | 5 |
Interest receivable and similar income |
505,587 | 421,876 |
Interest payable and similar expenses | ( |
) | ( |
) |
Profit before taxation |
Tax on profit | 6 | ( |
) | ( |
) |
Profit for the financial year |
J A PAYNE LIMITED (REGISTERED NUMBER: 00780856) |
Balance Sheet |
31 July 2024 |
2024 | 2023 |
Notes | £ | £ | £ | £ |
Fixed assets |
Tangible assets | 8 |
Investments | 9 |
Investment property | 10 |
Current assets |
Stocks |
Debtors | 11 |
Investments | 12 |
Cash at bank and in hand |
Creditors |
Amounts falling due within one year | 13 |
Net current liabilities | ( |
) | ( |
) |
Total assets less current liabilities |
Creditors |
Amounts falling due after more than one year |
14 |
( |
) |
( |
) |
Provisions for liabilities | 15 | ( |
) | ( |
) |
Net assets |
Capital and reserves |
Called up share capital | 16 |
Fair value reserve | 17 |
Retained earnings |
Shareholders' funds |
The financial statements were approved by the Board of Directors and authorised for issue on |
J A PAYNE LIMITED (REGISTERED NUMBER: 00780856) |
Statement of Changes in Equity |
for the Year Ended 31 July 2024 |
Called up | Fair |
share | Retained | value | Total |
capital | earnings | reserve | equity |
£ | £ | £ | £ |
Balance at 1 August 2022 |
Changes in equity |
Dividends | - | ( |
) | - | ( |
) |
Total comprehensive income | - |
Balance at 31 July 2023 |
Changes in equity |
Dividends | - | ( |
) | - | ( |
) |
Total comprehensive income | - |
Balance at 31 July 2024 |
J A PAYNE LIMITED (REGISTERED NUMBER: 00780856) |
Notes to the Financial Statements |
for the Year Ended 31 July 2024 |
1. | Statutory information |
J A Payne Limited is a |
2. | Statement of compliance |
These financial statements have been prepared in accordance with Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" including the provisions of Section 1A "Small Entities" and the Companies Act 2006. |
3. | Accounting policies |
Basis of preparing the financial statements |
The financial statements have been prepared under the historical cost convention as modified by the revaluation of certain assets. |
Going Concern |
The accounts have been prepared on a going concern basis, based on the ongoing support from a related party. |
The directors consider it appropriate to prepare the financial statements on the going concern basis. |
Related party exemption |
The company has taken advantage of 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. |
Critical accounting judgements and key sources of estimation uncertainty |
Estimates and judgements are continually evaluated and are based on historical experience and other factors,including expectations of future events that are believed to be reasonable under the circumstances. |
There are not considered to be any critical judgements in applying the company's accounting policies.The company makes estimates and assumptions concerning the future. The resulting accounting estimates will, by definition, seldom equal the related actual results. |
The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amounts of investment properties within the next financial year are addressed below |
(i) Investment property |
Investment property is shown at fair value. Any aggregate surplus or deficit arising from changes in market value is charged or credited to the profit and loss account and then transferred to a non-distributable reserve, net of any deferred tax. The fair value of the investment property is calculated from reviewing market data available and looking at yields of similar properties and adjusting accordingly to reflect the condition of the properties. |
Although this accounting policy is in accordance with FRS 102 it is a departure from the general requirement of the Companies Act 2006 for all tangible assets to be depreciated. In the opinion of the directors compliance with the standard is necessary for the financial statements to give a true and fair view. |
Turnover |
Turnover is measured at the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. |
Turnover comprises of rents receivable, net of VAT. Rent receivable income is recognised equally over the lease term. |
J A PAYNE LIMITED (REGISTERED NUMBER: 00780856) |
Notes to the Financial Statements - continued |
for the Year Ended 31 July 2024 |
3. | Accounting policies - continued |
Tangible fixed assets |
Land & buildings | - |
Plant and machinery | - |
Tangible assets are stated at cost less accumulated depreciation and accumulated impairment losses. Cost included the original purchase price and costs directly attributable to bringing the asset to its working condition for its intended use. |
Freehold land and buildings are stated at deemed cost for assets held at the date of transition to FRS 102 less accumulated depreciation and accumulated impairment losses. |
Stocks |
Stocks are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items. |
Financial instruments |
The company has chosen to adopt Sections 11 and 12 of FRS 102 in respect of financial instruments. |
(i) Financial assets |
Basic financial assets, including trade and other debtors and bank balances, are initially recognised at transaction price, 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. |
Such assets are subsequently carried at amortised cost using the effective interest method. |
(ii) Financial liabilities |
Basic financial liabilities, including trade and other creditors 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 receipts discounted at a market rate of interest. |
Debt instruments are subsequently carried at amortised cost, using the effective interest rate method. |
Taxation |
Taxation for the year comprises current and deferred tax. Tax is recognised in the Profit and Loss Account, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. |
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 have been enacted or substantively enacted by the balance sheet date. |
Deferred tax |
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet 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. |
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. |
Pension costs and other post-retirement benefits |
The company operates a defined contribution pension scheme. Contributions payable to the company's pension scheme are charged to profit or loss in the period to which they relate. |
J A PAYNE LIMITED (REGISTERED NUMBER: 00780856) |
Notes to the Financial Statements - continued |
for the Year Ended 31 July 2024 |
4. | Employees and directors |
The average number of employees during the year was |
5. | Operating profit |
The operating profit is stated after charging: |
2024 | 2023 |
£ | £ |
Depreciation - owned assets |
Fair value gain / (loss) |
6. | Taxation |
Analysis of the tax charge |
The tax charge on the profit for the year was as follows: |
2024 | 2023 |
£ | £ |
Current tax: |
UK corporation tax |
Deferred tax |
Tax on profit |
7. | Dividends |
2024 | 2023 |
£ | £ |
Ordinary shares of £1 each |
Interim |
8. | Tangible fixed assets |
Land & | Plant and |
buildings | machinery | Totals |
£ | £ | £ |
Cost |
At 1 August 2023 |
Additions |
At 31 July 2024 |
Depreciation |
At 1 August 2023 |
Charge for year |
At 31 July 2024 |
Net book value |
At 31 July 2024 |
At 31 July 2023 |
J A PAYNE LIMITED (REGISTERED NUMBER: 00780856) |
Notes to the Financial Statements - continued |
for the Year Ended 31 July 2024 |
9. | Fixed asset investments |
Other |
investments |
£ |
Cost |
At 1 August 2023 |
and 31 July 2024 |
Net book value |
At 31 July 2024 |
At 31 July 2023 |
The fixed asset investment valuation is not materially different to the cost. |
10. | Investment property |
Total |
£ |
Fair value |
At 1 August 2023 |
Fair value adjustment | 201,895 |
At 31 July 2024 |
Net book value |
At 31 July 2024 |
At 31 July 2023 |
Investment properties |
2024 | 2023 |
£ | £ |
Freehold property | 3,887,782 | 3,744,800 |
Long leasehold property | 765,913 | 707,000 |
4,653,695 | 4,451,800 |
Fair value at 31 July 2024 is represented by: |
£ |
Valuation in 2024 | 2,394,765 |
Cost | 2,258,930 |
4,653,695 |
If investment properties had not been revalued they would have been included at the following historical cost: |
2024 | 2023 |
£ | £ |
Cost | 2,258,930 | 2,258,930 |
Aggregate depreciation | (22,539 | ) | (22,539 | ) |
Investment properties were valued on an open market basis on 31 July 2024 by the directors . |
J A PAYNE LIMITED (REGISTERED NUMBER: 00780856) |
Notes to the Financial Statements - continued |
for the Year Ended 31 July 2024 |
11. | Debtors |
2024 | 2023 |
£ | £ |
Amounts falling due within one year: |
Trade debtors |
Amounts owed by group undertakings |
Other debtors |
Amounts falling due after more than one year: |
Amounts owed by group undertakings |
Aggregate amounts |
12. | Current asset investments |
2024 | 2023 |
£ | £ |
Other |
Current asset investments consist of deposits with banks and other financial institutions. |
13. | Creditors: amounts falling due within one year |
2024 | 2023 |
£ | £ |
Trade creditors |
Amounts owed to group undertakings |
Taxation and social security |
Other creditors |
14. | Creditors: amounts falling due after more than one year |
2024 | 2023 |
£ | £ |
Other creditors |
15. | Provisions for liabilities |
2024 | 2023 |
£ | £ |
Deferred tax |
Other timing differences | 277,000 | 259,000 |
Other provisions | 37,760 | 37,760 |
J A PAYNE LIMITED (REGISTERED NUMBER: 00780856) |
Notes to the Financial Statements - continued |
for the Year Ended 31 July 2024 |
15. | Provisions for liabilities - continued |
Deferred | Other |
tax | provisions |
£ | £ |
Balance at 1 August 2023 |
Charge to Profit and Loss Account during year |
Balance at 31 July 2024 |
16. | Called up share capital |
Allotted, issued and fully paid: |
Number: | Class: | Nominal | 2024 | 2023 |
value: | £ | £ |
Ordinary | £1 | 3,500 | 3,500 |
17. | Reserves |
Fair |
value |
reserve |
£ |
At 1 August 2023 |
Transfer fair value movement |
gain / (loss) on investment |
properties | 201,895 |
Deferred tax on investment property fair value (gain) / loss |
(18,000 |
) |
At 31 July 2024 |
18. | Ultimate controlling party |
The company is a subsidiary undertaking of Leck Group Limited, a company incorporated in Great Britain. V and CM Barker control Leck Group Limited as they own 89% of its share capital. |
Leck Group Limited is the sole parent company of the group of which the company is a member and for which group accounts are drawn up. Copies of the group accounts are available from Leck House, 80 Deansgate Lane, Timperley, Altrincham, Cheshire, WA14 1SP. |
As a subsidiary of Leck Group Limited, the company has taken advantage of the exemption in FRS102 from disclosing transactions with other members of the group headed by Leck Group Limited. |