Active Urban Property Group Limited is a private company limited by shares incorporated in England and Wales. The registered office is Cardinal House, 46 St Nicholas Street, Ipswich, Suffolk, IP1 1TT.
The financial statements are prepared under the historical cost convention.
The directors are of the opinion that ongoing and future projects of the group will produce income sufficient to eliminate the adverse balance on the profit and loss account.
The company is relying on support of its main shareholders, Mr and Mrs D Hughes and MPM Properties Limited, who have expressed their intention to continue this support for at least 12 months following the approval of these financial statements.
Based upon this support the financial statements are prepared on a going concern basis.
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 £.
The financial statements have been prepared under the historical cost convention, modified to include the revaluation of freehold properties and to include investment properties and certain financial instruments at fair value. The principal accounting policies adopted are set out below.
These financial statements for the year ended 31 May 2017 are the first financial statements of Active Urban Property Group Limited prepared in accordance with FRS 102, The Financial Reporting Standard applicable in the UK and Republic of Ireland. The date of transition to FRS 102 was 1 June 2015. The reported financial position and financial performance for the previous period are not affected by the transition to FRS 102.
These financial statements are prepared on the going concern basis. The directors have a reasonable expectation that the company will continue in operational existence for the foreseeable future due to the continued support from the directors
Interests in subsidiaries, associates and jointly controlled entities are initially measured at cost and subsequently measured at cost less any accumulated impairment losses. The investments are assessed for impairment at each reporting date and any impairment losses or reversals of impairment losses are recognised immediately in profit or loss.
A subsidiary is an entity controlled by the company. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.
An associate is an entity, being neither a subsidiary nor a joint venture, in which the company holds a long-term interest and where the company has significant influence. The company considers that it has significant influence where it has the power to participate in the financial and operating decisions of the associate.
Entities in which the company has a long term interest and shares control under a contractual arrangement are classified as jointly controlled entities.
At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.
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.
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, 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.
Equity instruments issued by the company are recorded at the proceeds received, net of direct issue costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.
Details of the company's subsidiaries at 31 May 2017 are as follows:
*The registered office address of the subsidiary companies is Cardinal House, St. Nicholas Street, Ipswich, IP1 1TT.
150 £1 ordinary shares were issued at par on 17 August 2016.
During the year, MPM Properties Limited (controlled by Mr R Mutty and Mrs E Mutty) either loaned or paid for expenditure on behalf of the company worth £108,833 (2016: £25,362), and repaid a loan to Blue Sky Limited of £19,167. At the year end, the company owed MPM Properties Limited £152,086 (2016: £62,420).
During the year, the company received loans of £nil (2016: £121) from Mr R Mutty (Director). At the year end, the company owed Mr R Mutty £1,816 (2016: £1,816).
During the year, the company was loaned funds by Mr and Mrs D Hughes £26,500 (2016: £24,000). At the year end the company owed Mr and Mrs D Hughes a total of £88,691 (2016: £62,191).
Blue Sky Limited, a company in which Mr A Walker is a director, loaned Active Urban Property Group Limited £69,667 (2016: £24,000) and the company repaid £93,667 (2016: £nil). The company owed Blue Sky Limited a balance of £nil (2016: £24,000) at the year end.
Finally, Mr A Walker (Director) loaned the company £152,000 (2016: £nil) during the year, and the cost of share issued to Mr A Walker was £85. The company owed him a balance of £151,915 (2016: £nil) at the year end.