Transactions with Directors and Close Family Members
During the accounting period, the company underwent a capital restructuring which involved transactions with the sole director and his close family members (his four children).
Share Capital Transactions and Gifting:
At the commencement of the period, the company's allotted share capital comprised 100 Voting Shares held by the sole director and 4 Ordinary Shares held equally among his four children (1 Ordinary Share each). Following a formal capital reorganization, the company's equity was restated into 100 Voting Shares and 100 Ordinary Shares, all carrying a nominal value of £1.00 each. As part of this restructuring, a total of 96 Ordinary Shares were gifted equally among the director’s four children, resulting in each child holding an equity stake of 24 Ordinary Shares. The sole director retains 4 Ordinary Shares alongside his 100 Voting Shares. All shares are fully called up and paid.
Director's Loan Account and Preference Shares:
During the period, a long-term Loan Note previously issued to the sole director in the sum of £550,000.00 (in connection with the company's acquisition of its investment property asset) was formally redeemed. In exchange for this redemption, the company allotted 550,000 Cumulative Preference Shares of £1.00 each to the sole director. In accordance with FRS 102 Section 22, these instruments are disclosed within long-term creditors as financial liabilities due to the non-discretionary, mandatory annual fixed cumulative preferred dividend rate of 0.50% attached to them. As at 31 August 2025, the balances outstanding with the sole director within the financial statements are as follows:
1. Creditors (Amounts falling due after more than one year): £550,000.00 representing the principal preference share financial liability.
2. Creditors (Amounts falling due within one year - Accruals): £2,750.00 representing the accrued annual cumulative preference dividend finance cost.
3. Creditors (Amounts falling due within one year - Director's Loan Account): A net balance of £34,017.40 is credited to the sole director. This balance reflects a mix of pre-incorporation fees, personal cash introductions, and operational expenses funded directly by the director, offset by transaction debits arising from the share restructuring and final solicitor completion reallocations.
No interest has been charged on the short-term director's loan account balances, and there are no fixed repayment terms or guarantees in place.