Company registration number 07075684 (England and Wales)
OLIVER WALTON LTD
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2024
OLIVER WALTON LTD
COMPANY INFORMATION
Directors
Mr Xingjian Zhou
Mr James Campbell
Company number
07075684
Registered office
First Floor
3-5 Globe Road
London
E1 4DT
Auditor
Morgan Berkeley Limited
Westgate Chambers
8a Elm Park Road
Pinner
Middlesex
HA5 3LA
Business address
First Floor
3-5 Globe Road
London
E1 4DT
OLIVER WALTON LTD
CONTENTS
Page
Strategic report
1
Directors' report
2 - 3
Independent auditor's report
4 - 6
Profit and loss account
7
Statement of comprehensive income
8
Balance sheet
9
Statement of changes in equity
10
Statement of cash flows
11
Notes to the financial statements
12 - 24
OLIVER WALTON LTD
STRATEGIC REPORT
FOR THE YEAR ENDED 31 AUGUST 2024
- 1 -
The directors present the strategic report for the year ended 31 August 2024.
Fair review of the business
The principal activity of the company continued to be that of renting houses from landlords on long-term contracts and letting out rooms to tenants on short-term tenancies. The results for the year and financial position at the year-end were considered satisfactory by the directors.
Results and performance
The results of the company for the year, as set out on pages 7- 8, show a profit on ordinary activities before tax of £0.54m (2023: £1.23m). The shareholders' funds of the company total £1.40m (2023: £1.35m). The turnover has increased by 12% in 2024 compared to the previous year.
Business environment
In the opinion of the directors, the past few years have demonstrated that the business has improved in all areas of its operations, providing a robust framework for continued business expansion in the future.
Strategy
The group's success is dependent on the selection of the right locations, type of properties, and good ongoing service management of these properties. The company has continuously strived to consolidate its position by covering different categories of properties of different standards to capture the tenants at various levels of affordability. The company will continue to consolidate its position and concentrate its efforts on achieving maximum growth in its existing market segments. Tenant service remains a top priority.
Key performance indicators
The directors monitor the progress of the company by reference to the following KPI's:
2024 2023
Turnover £18.13m £16.20m
Gross Profit £3.06m £3.68m
Profit on ordinary activities before tax £0.54m £1.23m
Principal risks and uncertainties
The process of risk acceptance and risk management is addressed through a framework of policies, procedures and internal controls. All policies are subject to Board approval and ongoing review by management. Compliance with regulations and legal is a high priority.
The company has developed a framework for identifying risks by regular management meetings. The financial risks are monitored by the company by monitoring its cash flows regularly.
Mr Xingjian Zhou
Director
5 August 2025
OLIVER WALTON LTD
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 AUGUST 2024
- 2 -
The directors present their annual report and financial statements for the year ended 31 August 2024.
Principal activities
The principal activity of the company continued to be that of renting houses from landlords on long term contracts and letting out rooms to tenants on short term tenancies.
Results and dividends
The results for the year are set out on page 7.
Ordinary dividends were paid amounting to £350,000. 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 Xingjian Zhou
Mr Jorge Luis Sanchez
(Resigned 11 October 2024)
Mr Matthew John House
(Resigned 7 March 2025)
Mr James Campbell
Future developments
With the increasing demand for quality housing in London, the directors feel that its existing and established position in the market combined with its continued investment in innovative systems and processes, will support and strengthen its position.
Auditor
In accordance with the company's articles, a resolution proposing that Morgan Berkeley Limited be reappointed as auditor of the company 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; and
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.
OLIVER WALTON LTD
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 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.
Medium-sized companies exemption
This report has been prepared in accordance with the provisions applicable to companies entitled to the medium-sized companies exemption.
On behalf of the board
Mr Xingjian Zhou
Director
5 August 2025
OLIVER WALTON LTD
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF OLIVER WALTON LTD
- 4 -
Opinion
We have audited the financial statements of Oliver Walton Ltd (the 'company') for the year ended 31 August 2024 which comprise the profit and loss account, the statement of comprehensive income, the balance sheet, 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 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 August 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.
OLIVER WALTON LTD
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF OLIVER WALTON LTD (CONTINUED)
- 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 or the directors' report.
We have nothing to report in respect of the following matters in relation to which 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.
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. We also considered laws and regulations that have a direct impact on the preparation of the financial statements, such as the Companies Act 2006.
We evaluated the directors’ and management’s incentives and opportunities for fraudulent manipulation of the financial statements (including the risk of override of controls) and determined that the principal risks were related to posting manual journal entries to manipulate financial performance.
Our audit procedures were designed to respond to those identified risks, including non-compliance with laws and regulations (irregularities) and fraud that are material to the financial statements. Our audit procedures included but were not limited to:
Discussing with the directors and management their policies and procedures regarding compliance with laws and regulations;
Communicating identified laws and regulations throughout our engagement team and remaining alert to any indications of non-compliance throughout our audit; and
Considering the risk of acts by the company which were contrary to applicable laws and regulations, including fraud.
OLIVER WALTON LTD
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF OLIVER WALTON LTD (CONTINUED)
- 6 -
Our audit procedures in relation to fraud included but were not limited to:
Making enquiries of the directors and management on whether they had knowledge of any actual, suspected or alleged fraud;
Gaining an understanding of the internal controls established to mitigate risks related to fraud;
Discussing amongst the engagement team the risks of fraud; and
Addressing the risks of fraud through management override of controls by performing journal entry testing.
There are inherent limitations in the audit procedures described above and the primary responsibility for the prevention and detection of irregularities including fraud rests with management. As with any audit, there remained a risk of non-detection of irregularities, as these may involve collusion, forgery, intentional omissions, misrepresentations or the override of internal controls.
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.
Pierre Yat Keung Leong (Senior Statutory Auditor)
For and on behalf of Morgan Berkeley Limited, Statutory Auditor
Chartered Certified Accountants
Westgate Chambers
8a Elm Park Road
Pinner
HA5 3LA
Middlesex
7 August 2025
OLIVER WALTON LTD
PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 31 AUGUST 2024
- 7 -
2024
2023
Notes
£
£
Turnover
3
18,132,412
16,204,373
Cost of sales
(15,068,943)
(12,529,267)
Gross profit
3,063,469
3,675,106
Administrative expenses
(2,526,744)
(2,453,872)
Operating profit
4
536,725
1,221,234
Interest receivable and similar income
7
37,174
44,542
Interest payable and similar expenses
8
(30,393)
(33,208)
Profit before taxation
543,506
1,232,568
Tax on profit
9
(145,959)
(257,808)
Profit for the financial year
397,547
974,760
The profit and loss account has been prepared on the basis that all operations are continuing operations.
OLIVER WALTON LTD
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 AUGUST 2024
- 8 -
2024
2023
£
£
Profit for the year
397,547
974,760
Other comprehensive income
-
-
Total comprehensive income for the year
397,547
974,760
OLIVER WALTON LTD
BALANCE SHEET
AS AT
31 AUGUST 2024
31 August 2024
- 9 -
2024
2023
Notes
£
£
£
£
Fixed assets
Tangible assets
11
241,217
309,846
Investment property
12
296,351
296,351
537,568
606,197
Current assets
Debtors
13
2,352,995
1,825,956
Cash at bank and in hand
295,960
822,591
2,648,955
2,648,547
Creditors: amounts falling due within one year
14
(1,519,067)
(1,434,330)
Net current assets
1,129,888
1,214,217
Total assets less current liabilities
1,667,456
1,820,414
Creditors: amounts falling due after more than one year
15
(258,334)
(458,333)
Provisions for liabilities
Deferred tax liability
17
12,200
12,706
(12,200)
(12,706)
Net assets
1,396,922
1,349,375
Capital and reserves
Called up share capital
19
1,000
1,000
Profit and loss reserves
1,395,922
1,348,375
Total equity
1,396,922
1,349,375
These financial statements have been prepared in accordance with the provisions relating to medium-sized companies.
The financial statements were approved by the board of directors and authorised for issue on 5 August 2025 and are signed on its behalf by:
Mr Xingjian Zhou
Director
Company registration number 07075684 (England and Wales)
OLIVER WALTON LTD
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 AUGUST 2024
- 10 -
Share capital
Profit and loss reserves
Total
Notes
£
£
£
Balance at 1 September 2022
1,000
1,273,615
1,274,615
Year ended 31 August 2023:
Profit and total comprehensive income
-
974,760
974,760
Dividends
10
-
(900,000)
(900,000)
Balance at 31 August 2023
1,000
1,348,375
1,349,375
Year ended 31 August 2024:
Profit and total comprehensive income
-
397,547
397,547
Dividends
10
-
(350,000)
(350,000)
Balance at 31 August 2024
1,000
1,395,922
1,396,922
OLIVER WALTON LTD
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 AUGUST 2024
- 11 -
2024
2023
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
23
293,221
1,415,099
Interest paid
(30,393)
(33,208)
Income taxes paid
(256,681)
(213,682)
Net cash inflow from operating activities
6,147
1,168,209
Investing activities
Purchase of tangible fixed assets
(23,553)
(208,830)
Proceeds from disposal of tangible fixed assets
3,600
36,702
Interest received
37,174
44,542
Net cash generated from/(used in) investing activities
17,221
(127,586)
Financing activities
Repayment of bank loans
(199,999)
(200,000)
Dividends paid
(350,000)
(900,000)
Net cash used in financing activities
(549,999)
(1,100,000)
Net decrease in cash and cash equivalents
(526,631)
(59,377)
Cash and cash equivalents at beginning of year
822,591
881,968
Cash and cash equivalents at end of year
295,960
822,591
OLIVER WALTON LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2024
- 12 -
1
Accounting policies
Company information
Oliver Walton Ltd is a private company limited by shares incorporated in England and Wales. The registered office is First Floor, 3-5 Globe Road, London, E1 4DT.
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 £.
1.2
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.
1.3
Turnover
Turnover is recognised at the fair value of the consideration received or receivable for renting out properties in the normal course of business. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates. Turnover is recognised based on the terms of the rental agreements, Advance payments and security deposits are recognised as liabilities until earned or refunded.
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.
1.4
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:
Leasehold improvements
Over the life of the lease
Plant and machinery
25% straight line
Fixtures, fittings & equipment
25% straight line
Motor vehicles
25% straight line
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.
1.5
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.
OLIVER WALTON LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2024
1
Accounting policies
(Continued)
- 13 -
1.6
Impairment of fixed 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.
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.
1.7
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.
1.8
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.
Basic financial assets
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.
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.
OLIVER WALTON LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 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 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.
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.
OLIVER WALTON LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 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.
1.9
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.
1.10
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.
1.11
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 fixed 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.
1.12
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
1.13
Leases
Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leases asset are consumed.
OLIVER WALTON LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 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.
Critical judgements
The following judgements (apart from those involving estimates) have had the most significant effect on amounts recognised in the financial statements.
Impairment of investment properties and other fixed assets
Assessing whether there are indicators of impairment for investment properties and other fixed assets and determining the recoverable amount involves significant judgement. Management evaluates factors such as the physical condition of assets, changes in market conditions, and the expected future cash flows from the rental assets to determine whether an impairment loss should be recognised. Impairment losses are recognised in the statement of comprehensive income and result in a reduction in the carrying amount of assets in the statement of financial position.
Fair value of investment properties
Determining the fair value of investment properties at each reporting date involves significant estimation and judgement. Management uses valuation techniques such as discounted cash flow analysis, comparable market transactions, and other relevant factors to estimate the fair value of investment properties. Changes in the fair value of investment properties are recognised in the statement of comprehensive income, which can have a significant impact on reported profit or loss for the period.
Provision for bad debts
Estimating the provision for bad debts related to rental income receivables requires judgement based on historical data, current economic conditions, and the creditworthiness of tenants. Management assesses the likelihood of default by tenants and estimates the amount of uncollectible rental income based on historical experience and current market conditions. The provision for bad debts is recognised as an expense in the statement of comprehensive income, which affects the reported profit or loss and the carrying amount of trade receivables in the statement of financial position.
Key sources of estimation uncertainty
The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are as follows.
Fair value of investment properties
Determining the fair value of investment properties at each reporting date involves uncertainty due to market fluctuations and valuation techniques. Changes in property market conditions, interest rates, and the availability of comparable market transactions can affect the estimation of fair value. While there remains an element of uncertainty surrounding the quantum of fair value of investment property, the amount recognised in the financial statements is based on the professional valuation and reflects management's best estimate of the fair value at the reporting date.
OLIVER WALTON LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2024
- 17 -
3
Turnover and other revenue
An analysis of the company's turnover is as follows:
2024
2023
£
£
Turnover analysed by class of business
Rent receivable
18,132,412
16,204,373
2024
2023
£
£
Turnover analysed by geographical market
18,132,412
16,204,373
2024
2023
£
£
Other revenue
Interest income
37,174
44,542
4
Operating profit
2024
2023
Operating profit for the year is stated after charging/(crediting):
£
£
Fees payable to the company's auditor for the audit of the company's financial statements
28,800
22,950
Depreciation of owned tangible fixed assets
89,396
68,108
Profit on disposal of tangible fixed assets
(814)
(26,128)
Operating lease charges
103,094
98,210
5
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2024
2023
Number
Number
81
73
Their aggregate remuneration comprised:
2024
2023
£
£
Wages and salaries
2,930,270
2,495,016
Social security costs
306,077
266,909
Pension costs
65,769
46,134
3,302,116
2,808,059
OLIVER WALTON LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2024
- 18 -
6
Directors' remuneration
2024
2023
£
£
Remuneration for qualifying services
406,137
346,189
Company pension contributions to defined contribution schemes
11,641
9,541
417,778
355,730
Remuneration disclosed above include the following amounts paid to the highest paid director:
2024
2023
£
£
Remuneration for qualifying services
143,880
124,355
7
Interest receivable and similar income
2024
2023
£
£
Interest income
Interest on bank deposits
6,824
6,039
Other interest income
30,350
38,503
Total income
37,174
44,542
2024
2023
Investment income includes the following:
£
£
Interest on financial assets not measured at fair value through profit or loss
6,824
6,039
8
Interest payable and similar expenses
2024
2023
£
£
Interest on financial liabilities measured at amortised cost:
Interest on bank overdrafts and loans
30,393
33,208
9
Taxation
2024
2023
£
£
Current tax
UK corporation tax on profits for the current period
146,465
256,720
OLIVER WALTON LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2024
9
Taxation
2024
2023
£
£
(Continued)
- 19 -
Deferred tax
Origination and reversal of timing differences
(506)
1,088
Total tax charge
145,959
257,808
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
543,506
1,232,568
Expected tax charge based on the standard rate of corporation tax in the UK of 25.00% (2023: 21.52%)
135,877
265,249
Tax effect of expenses that are not deductible in determining taxable profit
146
Tax effect of income not taxable in determining taxable profit
(203)
(5,623)
Permanent capital allowances in excess of depreciation
(11,703)
(3,342)
Depreciation on assets not qualifying for tax allowances
22,349
Other permanent differences
(507)
1,524
Taxation charge for the year
145,959
257,808
10
Dividends
2024
2023
£
£
Final paid
350,000
900,000
OLIVER WALTON LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2024
- 20 -
11
Tangible fixed assets
Leasehold improvements
Plant and machinery
Fixtures, fittings & equipment
Motor vehicles
Total
£
£
£
£
£
Cost
At 1 September 2023
125,061
208,439
198,561
283,556
815,617
Additions
23,553
23,553
Disposals
(19,041)
(19,041)
At 31 August 2024
125,061
212,951
198,561
283,556
820,129
Depreciation and impairment
At 1 September 2023
50,669
117,778
183,871
153,453
505,771
Depreciation charged in the year
8,337
37,764
3,896
39,399
89,396
Eliminated in respect of disposals
(16,255)
(16,255)
At 31 August 2024
59,006
139,287
187,767
192,852
578,912
Carrying amount
At 31 August 2024
66,055
73,664
10,794
90,704
241,217
At 31 August 2023
74,392
90,661
14,690
130,103
309,846
12
Investment property
2024
£
Fair value
At 1 September 2023 and 31 August 2024
296,351
The investment property fair value of £296,351 (2023: £296,351) was determined by the directors by reference to the valuation of comparable properties, adjusted for any differences in nature, location and condition.
13
Debtors
2024
2023
Amounts falling due within one year:
£
£
Trade debtors
315,626
179,344
Other debtors
1,983,021
1,613,765
Prepayments and accrued income
54,348
32,847
2,352,995
1,825,956
OLIVER WALTON LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2024
- 21 -
14
Creditors: amounts falling due within one year
2024
2023
Notes
£
£
Bank loans
16
200,000
200,000
Payments received on account
359,228
203,119
Trade creditors
65,734
196,858
Amounts owed to group undertakings
298,790
139,253
Corporation tax
146,467
256,683
Other taxation and social security
88,853
75,344
Other creditors
315,630
264,733
Accruals and deferred income
44,365
98,340
1,519,067
1,434,330
The bank loans and overdrafts are secured by a fixed and floating charge over all current and future assets of the company.
15
Creditors: amounts falling due after more than one year
2024
2023
Notes
£
£
Bank loans and overdrafts
16
258,334
458,333
The bank loans and overdrafts are secured by a fixed and floating charge over all current and future assets of the company.
16
Loans and overdrafts
2024
2023
£
£
Bank loans
458,334
658,333
Payable within one year
200,000
200,000
Payable after one year
258,334
458,333
The bank loans and overdrafts are secured by a fixed and floating charge over all current and future assets of the company.
OLIVER WALTON LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2024
- 22 -
17
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
12,200
12,706
2024
Movements in the year:
£
Liability at 1 September 2023
12,706
Credit to profit or loss
(506)
Liability at 31 August 2024
12,200
The deferred tax liability set out above is expected to reverse within 12 months and relates to accelerated capital allowances that are expected to mature within the same period.
18
Retirement benefit schemes
2024
2023
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
65,769
46,134
The company operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the company in an independently administered fund.
19
Share capital
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Authorised
Ordinary shares of £1 each
1,000
1,000
1,000
1,000
Issued and fully paid
Ordinary shares of £1 each
1,000
1,000
1,000
1,000
OLIVER WALTON LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2024
- 23 -
20
Operating lease commitments
As lessee
At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:
2024
2023
£
£
Within 1 year
70,000
70,000
Years 2-5
280,000
280,000
After 5 years
207,083
277,083
557,083
627,083
21
Related party transactions
South Brooks Limited is related to Oliver Walton Limited, Xingijan Zhou being the common director in both companies.
During the year company made loans to South Brooks Limited in the sum of £212,967 (2023: £970,153). A commercial rate of interest is charged on the loan, and an amount of £1,221,623 (2023: £1,008,656) was outstanding at the balance sheet date.
22
Ultimate controlling party
The parent company is Sun & Zhou Limited, a company registered in England and Wales, whose registered office is situated at First Floor, 3-5 Globe Road, London, E1 4DT.
The accounts of Oliver Walton Limited are consolidated into the accounts of Sun & Zhou Limited, its parent company which prepares group accounts.
23
Cash generated from operations
2024
2023
£
£
Profit after taxation
397,547
974,760
Adjustments for:
Taxation charged
145,959
257,808
Finance costs
30,393
33,208
Investment income
(37,174)
(44,542)
Gain on disposal of tangible fixed assets
(814)
(26,128)
Depreciation and impairment of tangible fixed assets
89,396
68,108
Movements in working capital:
(Increase)/decrease in debtors
(527,039)
32,106
Increase in creditors
194,953
119,779
Cash generated from operations
293,221
1,415,099
OLIVER WALTON LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2024
- 24 -
24
Analysis of changes in net funds/(debt)
1 September 2023
Cash flows
31 August 2024
£
£
£
Cash at bank and in hand
822,591
(526,631)
295,960
Borrowings excluding overdrafts
(658,333)
199,999
(458,334)
164,258
(326,632)
(162,374)
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