A and C Industrial Properties Limited Filleted accounts for Companies House (small and micro)

COMPANY REGISTRATION NUMBER: 04711258

A and C Industrial Properties Limited

Filleted Unaudited Financial Statements

for the year ended

31 August 2018

A and C Industrial Properties Limited

Statement of Financial Position

as at 31 August 2018

	2018		2017
Note	£	£	£	£

Fixed assets

Tangible assets	5		7,296,148		6,757,335

Current assets

Stocks		–	111,250
Debtors	6	65,161	57,234
		-----------	-----------
		65,161	168,484

Creditors: amounts falling due within one year	7	2,058,468		1,652,106
		------------		------------
Net current liabilities			1,993,307		1,483,622
			------------		------------
Total assets less current liabilities			5,302,841		5,273,713

Creditors: amounts falling due after more than one year	8		401,883		559,337

Provisions

Taxation including deferred tax	717,881	703,332
	------------	------------
Net assets	4,183,077	4,011,044
	------------	------------

Capital and reserves

Called up share capital	9	1,000	1,000
Non-distributable reserves		3,701,131	3,652,396
Profit and loss account		480,946	357,648
		------------	------------
Shareholders funds		4,183,077	4,011,044
		------------	------------

These financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies' regime and in accordance with FRS 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'.

In accordance with section 444 of the Companies Act 2006, the statement of comprehensive income has not been delivered.

For the year ending 31st August 2018 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.

Directors' responsibilities:

- 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 directors acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and the preparation of financial statements .

A and C Industrial Properties Limited

Statement of Financial Position (continued)

as at 31 August 2018

These financial statements were approved by the board of directors and authorised for issue on 30 October 2018 , and are signed on behalf of the board by:

Mr C P Golborne

Director

Company registration number: 04711258

A and C Industrial Properties Limited

Notes to the Financial Statements

for the year ended 31st August 2018

1. General information

The company is a private company limited by shares, registered in England and Wales. The address of the registered office is Aaron Road Industrial Estate, Station Road, Peterborough, Cambridgeshire, PE7 2EX.

2. Statement of compliance

These financial statements have been prepared in compliance with Section 1A of FRS 102, 'The Financial Reporting Standard applicable in the UK and the Republic of Ireland'.

3. Accounting policies

Basis of preparation

The financial statements have been prepared on the historical cost basis, as modified by the revaluation of certain financial assets and liabilities and investment properties measured at fair value through profit or loss.

The financial statements are prepared in sterling, which is the functional currency of the entity.

Revenue recognition

Turnover is measured at the fair value of the consideration received or receivable for goods supplied and services rendered, net of discounts and Value Added Tax. Revenue from the sale of goods is recognised when the significant risks and rewards of ownership have transferred to the buyer (usually on despatch of the goods); the amount of revenue can be measured reliably; it is probable that the associated economic benefits will flow to the entity; and the costs incurred or to be incurred in respect of the transactions can be measured reliably.

Income tax

The taxation expense represents the aggregate amount of current and deferred tax recognised in the reporting period. Tax is recognised in profit or loss, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. In this case, tax is recognised in other comprehensive income or directly in equity, respectively. Current tax is recognised on taxable profit for the current and past periods. Current tax is measured at the amounts of tax expected to pay or recover using the tax rates and laws that have been enacted or substantively enacted at the reporting date.

Deferred tax is recognised in respect of all timing differences at the reporting date. Unrelieved tax losses and other 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. Deferred tax is measured using the tax rates and laws that have been enacted or substantively enacted by the reporting date that are expected to apply to the reversal of the timing difference.

Tangible assets

Tangible assets are initially recorded at cost, and subsequently stated at cost less any accumulated depreciation and impairment losses. Any tangible assets carried at revalued amounts are recorded at the fair value at the date of revaluation less any subsequent accumulated depreciation and subsequent accumulated impairment losses. An increase in the carrying amount of an asset as a result of a revaluation, is recognised in other comprehensive income and accumulated in equity, except to the extent it reverses a revaluation decrease of the same asset previously recognised in profit or loss. A decrease in the carrying amount of an asset as a result of revaluation, is recognised in other comprehensive income to the extent of any previously recognised revaluation increase accumulated in equity in respect of that asset. Where a revaluation decrease exceeds the accumulated revaluation gains accumulated in equity in respect of that asset, the excess shall be recognised in profit or loss.

Depreciation

Depreciation is calculated so as to write off the cost or valuation of an asset, less its residual value, over the useful economic life of that asset as follows:

Investment Property	-	Not depreciated
Machinery & Equipment	-	25% reducing balance
Motor Vehicles	-	25% reducing balance

Investment property

Investment property is initially recorded at cost, which includes purchase price and any directly attributable expenditure. Investment property is revalued to its fair value at each reporting date and any changes in fair value are recognised in profit or loss. If a reliable measure of fair value is no longer available without undue cost or effort for an item of investment property, it shall be transferred to tangible assets and treated as such until it is expected that fair value will be reliably measurable on an on-going basis.

Impairment of fixed assets

A review for indicators of impairment is carried out at each reporting date, with the recoverable amount being estimated where such indicators exist. Where the carrying value exceeds the recoverable amount, the asset is impaired accordingly. Prior impairments are also reviewed for possible reversal at each reporting date. For the purposes of impairment testing, when it is not possible to estimate the recoverable amount of an individual asset, an estimate is made of the recoverable amount of the cash-generating unit to which the asset belongs. The cash-generating unit is the smallest identifiable group of assets that includes the asset and generates cash inflows that largely independent of the cash inflows from other assets or groups of assets. For impairment testing of goodwill, the goodwill acquired in a business combination is, from the acquisition date, allocated to each of the cash-generating units that are expected to benefit from the synergies of the combination, irrespective of whether other assets or liabilities of the company are assigned to those units.

Stocks

Stocks are measured at the lower of cost and estimated selling price less costs to complete and sell. Cost includes all costs of purchase, costs of conversion and other costs incurred in bringing the stock to its present location and condition.

Finance leases and hire purchase contracts

Assets held under finance leases and hire purchase contracts are recognised in the statement of financial position as assets and liabilities at the lower of the fair value of the assets and the present value of the minimum lease payments, which is determined at the inception of the lease term. Any initial direct costs of the lease are added to the amount recognised as an asset. Lease payments are apportioned between the finance charges and reduction of the outstanding lease liability using the effective interest method. Finance charges are allocated to each period so as to produce a constant rate of interest on the remaining balance of the liability.

Provisions

Provisions are recognised when the entity has an obligation at the reporting date as a result of a past event, it is probable that the entity will be required to transfer economic benefits in settlement and the amount of the obligation can be estimated reliably. Provisions are recognised as a liability in the statement of financial position and the amount of the provision as an expense. Provisions are initially measured at the best estimate of the amount required to settle the obligation at the reporting date and subsequently reviewed at each reporting date and adjusted to reflect the current best estimate of the amount that would be required to settle the obligation. Any adjustments to the amounts previously recognised are recognised in profit or loss unless the provision was originally recognised as part of the cost of an asset. When a provision is measured at the present value of the amount expected to be required to settle the obligation, the unwinding of the discount is recognised as a finance cost in profit or loss in the period it arises.

Financial instruments

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 entity after deducting all of its financial liabilities.

Where the contractual obligations of financial instruments (including share capital) are equivalent to a similar debt instrument, those financial instruments are classed as financial liabilities. Financial liabilities are presented as such in the balance sheet. Finance costs and gains or losses relating to financial liabilities are included in the profit and loss account. Finance costs are calculated so as to produce a constant rate of return on the outstanding liability.

Where the contractual terms of share capital do not have any terms meeting the definition of a financial liability then this is classed as an equity instrument. Dividends and distributions relating to equity instruments are debited direct to equity.

4. Tax on profit

Major components of tax expense

	2018	2017
	£	£

Current tax:

UK current tax expense	26,841	3,049

Deferred tax:

Origination and reversal of timing differences	14,549	39,433
Impact of change in tax rate	–	37,018
	-----------	-----------
Total deferred tax	14,549	76,451
	-----------	-----------
Tax on profit	41,390	79,500
	-----------	-----------

5. Tangible assets

Land and buildings	Fixtures and fittings	Motor vehicles	Total
£	£	£	£

Cost or valuation
At 1st September 2017	6,582,764	216,518	55,674	6,854,956
Additions	480,858	7,817	36,486	525,161
Revaluations	60,167	–	–	60,167
	------------	-----------	-----------	------------
At 31st August 2018	7,123,789	224,335	92,160	7,440,284
	------------	-----------	-----------	------------
Depreciation
At 1st September 2017	–	87,351	10,270	97,621
Charge for the year	–	33,641	12,874	46,515
	------------	-----------	-----------	------------
At 31st August 2018	–	120,992	23,144	144,136
	------------	-----------	-----------	------------
Carrying amount
At 31st August 2018	7,123,789	103,343	69,016	7,296,148
	------------	-----------	-----------	------------
At 31st August 2017	6,582,764	129,167	45,404	6,757,335
	------------	-----------	-----------	------------

Included within the above is investment property as follows:

	£

At 1st September 2017	6,582,764
Additions	480,858
Fair value adjustments	60,167
	------------
At 31st August 2018	7,123,789
	------------

The investment properties held are stated at the value the directors believe to be the open fair value as at 31 August 2018. In valuing the properties the directors have had consultations with Barker Storey Matthews and Innes England, both professional valuers, and received a formal valuation for the UK investment properties dated June 2011, August 2011 and August 2016. The directors also made reference to CBRE, commercial property and real estate UK property index. If investment properties had not been revalued it would have been included at a historic cost of £3,411,226 (2017: £2,930,368).

6. Debtors

	2018	2017
	£	£

Trade debtors	19,984	42,501
Prepayments and accrued income	18,577	14,733
Other debtors	26,600	–
	-----------	-----------
	65,161	57,234
	-----------	-----------

7. Creditors: amounts falling due within one year

	2018	2017
	£	£

Bank loans and overdrafts	719,307	588,904
Trade creditors	112,272	56,919
Amounts owed to group undertakings	824,037	459,632
Accruals and deferred income	40,997	44,740
Corporation tax	26,841	3,049
Social security and other taxes	–	233
Obligations under finance leases and hire purchase contracts	37,454	33,280
Director loan accounts	272,560	440,349
Other creditors	25,000	25,000
	------------	------------
	2,058,468	1,652,106
	------------	------------

The bank loans and overdraft included above are secured by fixed and floating charges over the company's undertakings and assets. The finance lease and hire purchase agreements included above and below are secured against the assets to which they relate.

8. Creditors: amounts falling due after more than one year

	2018	2017
	£	£

Bank loans and overdrafts	375,000	525,000
Obligations under finance leases and hire purchase contracts	26,883	34,337
	-----------	-----------
	401,883	559,337
	-----------	-----------

9. Called up share capital

Issued, called up and fully paid

2018		2017
No.	£	No.	£

Ordinary shares of £ 1 each	1,000	1,000	1,000	1,000
	-----------	-----------	-----------	-----------