Southern Territory Limited - Filleted accounts

Southern Territory Limited
Registered number:		03652191
Balance Sheet
as at 31 August 2017

Notes			2017			2016
£				£
Fixed assets
Tangible assets	2		17,069,971			16,906,553
Investments	3		100			100
			17,070,071			16,906,653

Current assets
Debtors	4	6,635,463			4,912,888
Cash at bank and in hand		1,044,129			149,375
		7,679,592			5,062,263

Creditors: amounts falling due within one year	5	(2,265,638)			(1,782,863)

Net current assets			5,413,954			3,279,400

Total assets less current liabilities			22,484,025			20,186,053

Creditors: amounts falling due after more than one year	6		(5,335,832)			(3,486,020)



Net assets			17,148,193			16,700,033

Capital and reserves
Called up share capital			109			109
Revaluation reserve	8		10,056,807			10,056,807
Profit and loss account			7,091,277			6,643,117

Shareholders' funds			17,148,193			16,700,033

The directors are satisfied that the company is entitled to exemption from the requirement to obtain an audit under section 477 of the Companies Act 2006.
The members have not required the company to obtain an audit in accordance with section 476 of the Act.
The directors acknowledge their responsibilities for complying with the requirements of the Companies Act 2006 with respect to accounting records and the preparation of accounts.
The accounts have been prepared and delivered in accordance with the special provisions applicable to companies subject to the small companies regime. The profit and loss account has not been delivered to the Registrar of Companies.




A Alexandrou
Director
Approved by the board on 31 May 2018

Southern Territory Limited
Notes to the Accounts
for the year ended 31 August 2017


1	Accounting policies

	Basis of preparation
	The accounts have been prepared under the historical cost convention and in accordance with FRS 102, The Financial Reporting Standard applicable in the UK and Republic of Ireland (as applied to small entities by section 1A of the standard).

	Turnover
	Turnover is measured at the fair value of the consideration received or receivable, net of discounts and value added taxes. Turnover includes revenue earned from the sale of goods and from the rendering of services. Turnover from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have transferred to the buyer. Turnover from the rendering of services is recognised by reference to the stage of completion of the contract. The stage of completion of a contract is measured by comparing the costs incurred for work performed to date to the total estimated contract costs.

	Tangible fixed assets
	Tangible fixed assets are measured at cost less accumulative depreciation and any accumulative impairment losses. Depreciation is provided on all tangible fixed assets, other than freehold land, at rates calculated to write off the cost, less estimated residual value, of each asset evenly over its expected useful life, as follows:

	Investment properties	NIL
	Plant and machinery	25% reducing balance

	Investments
	Investments in subsidiaries, associates and joint ventures are measured at cost less any accumulated impairment losses. Listed investments are measured at fair value. Unlisted investments are measured at fair value unless the value cannot be measured reliably, in which case they are measured at cost less any accumulated impairment losses. Changes in fair value are included in the profit and loss account.

	Debtors
	Short term debtors are measured at transaction price (which is usually the invoice price), less any impairment losses for bad and doubtful debts. Loans and other financial assets are initially recognised at transaction price including any transaction costs and subsequently measured at amortised cost determined using the effective interest method, less any impairment losses for bad and doubtful debts.

	Creditors
	Short term creditors are measured at transaction price (which is usually the invoice price). Loans and other financial liabilities are initially recognised at transaction price net of any transaction costs and subsequently measured at amortised cost determined using the effective interest method.

	Taxation
	A current tax liability is recognised for the tax payable on the taxable profit of the current and past periods. A current tax asset is recognised in respect of a tax loss that can be carried back to recover tax paid in a previous period. Deferred tax is recognised in respect of all timing differences between the recognition of income and expenses in the financial statements and their inclusion in tax assessments. 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. Deferred tax is measured using the tax rates and laws that have been enacted or substantively enacted by the reporting date and that are expected to apply to the reversal of the timing difference, except for revalued land and investment property where the tax rate that applies to the sale of the asset is used. Current and deferred tax assets and liabilities are not discounted.

	Provisions
	Provisions (ie liabilities of uncertain timing or amount) are recognised when there is an obligation at the reporting date as a result of a past event, it is probable that economic benefit will be transferred to settle the obligation and the amount of the obligation can be estimated reliably.


2	Tangible fixed assets
		Investment properties		Motor vehicles		Total
£			£		£
	Cost
	At 1 September 2016	16,906,000		2,332		16,908,332
	Additions	163,556		-		163,556
	At 31 August 2017	17,069,556		2,332		17,071,888

	Depreciation
	At 1 September 2016	-		1,779		1,779
	Charge for the year	-		138		138
	At 31 August 2017	-		1,917		1,917

	Net book value
	At 31 August 2017	17,069,556		415		17,069,971
	At 31 August 2016	16,906,000		553		16,906,553
	Investment properties were valued on an open market basis on 31 August 2016 by the directors Mr .G Leonidas and Mr. A Alexandrou.


3	Investments
Investments in
subsidiary
undertakings
£
	Cost
	At 1 September 2016					100

	At 31 August 2017					100


4	Debtors			2017		2016
£					£

	Trade debtors			42,099		24,945
	Amounts owed by group undertakings and undertakings in which the company has a participating interest			6,582,740		4,883,584
	Other debtors			10,624		4,359
				6,635,463		4,912,888


5	Creditors: amounts falling due within one year			2017		2016
£					£

	Bank loans and overdrafts			141,012		109,728
	Trade creditors			991,586		526,285
	Amounts owed to group undertakings and undertakings in which the company has a participating interest			608,959		608,959
	Corporation tax			109,266		135,619
	Other creditors			414,815		402,272
				2,265,638		1,782,863


6	Creditors: amounts falling due after one year			2017		2016
£					£

	Bank loans			5,335,832		3,486,020


7	Loans			2017		2016
£					£
	Creditors include:
	Instalments falling due for payment after more than five years			2,910,657		3,047,108


	Secured bank loans			5,476,844		3,595,748

	The company has various fixed and floating charges secured over the assets and properties of the company.


8	Revaluation reserve			2017		2016
£					£

	At 1 September 2016			10,056,807		3,330,074
	Gain on revaluation of land and buildings			-		6,726,733

	At 31 August 2017			10,056,807		10,056,807


9	Related party transactions

	Included in debtors falling due within one year are balances of: £617,016 (2016: £358,016) owed by Icospec Limited £505,100 (2016: £557,654) Atlantic Developments (Cudworth) Limited £374,115 (2016: £339,115) Atlantic (Hertford) Limited £92,926 (2016: £321,832) Marlyn Properties Limited £33,269 (2016: £33,269) Alexandrou Leonidas Limited £1,736,557 (2016: £1,534,963) Friday Hill House Limited £1,618,310 (2016: £1,415,310) Southern Territory (UK) Limited £1,605,447 (2016: £184,202) Atlantic Lodge (Housing) Limited These are companies in which the directors A Alexandrou and G Leonidas have an interest. Included in creditors falling due with in one year are balances of £487,267 (2016 : £487,267) owed to Waterhouse Properties Limited a company in which the director G Leonidas holds an interest, and £121,692 (2016 - £121,692) owed to Samax Properties Limited, a company in which the director's wife of G Leonidas holds an interest.
	During the year the company received rental income of £558,571 (2016: £510,603) from its subsidiary Atlantic Lodge (Housing) Limited. Atlantic Lodge (Housing) Limited is connected to the company by virtue of being its 100% subsidiaries. Atlantic (Hertford) Limited, Atlantic Developments (Cudworth) Limited, Atlantic Lodge (London) Limited, Waterhouse Properties Limited, Alexandrou Leonidas Limited, Friday Hill House Limited and Icospec Limited are connected to the company by virtue of having A Alexandrou and G. Leonidas as common directors and shareholders. The intercompany loans are interest free other than the loan made to Friday Hill House Limited which has been charged on a commercial arms length basis. The company received £121,629 (2016 - £119,287) in interest from Friday Hill House Limited during the year. The company is also acting as guarantors for various connected companies.

10	Controlling party

	The company was under the control of its directors throughout the period under review. Each director held 50% of the share capital each.


11	Other information

	Southern Territory Limited is a private company limited by shares and incorporated in England. Its registered office is:
	Atlantic Business Centre
	1 The Green
	London
	E4 7ES