Company Registration No. 00877662 (England and Wales)
AARON RADIATOR PROPERTY COMPANY LTD
UNAUDITED FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 30 JUNE 2017
PAGES FOR FILING WITH REGISTRAR
AARON RADIATOR PROPERTY COMPANY LTD
COMPANY INFORMATION
Directors
Mrs J K Stringer
Mr Gerald Stringer
Secretary
Mrs J K Stringer
Company number
00877662
Registered office
54 Whitehorse Lane
London
SE25 6RQ
Accountants
White Corfield & Fry Ltd
420 Brighton Road
South Croydon
Surrey
CR2 6AN
Business address
54 Whitehorse Lane
London
SE25 6RQ
AARON RADIATOR PROPERTY COMPANY LTD
CONTENTS
Page
Balance sheet
1
Notes to the financial statements
2 - 9
AARON RADIATOR PROPERTY COMPANY LTD
BALANCE SHEET
AS AT
30 JUNE 2017
30 June 2017
- 1 -
30 June
31 March
2017
2016
Notes
£
£
£
£
Fixed assets
Tangible assets
4
4,738
6,739
Investment properties
5
350,000
900,000
Investments
6
100
100
354,838
906,839
Current assets
Debtors
8
137
1,963
Cash at bank and in hand
1,176,123
830
1,176,260
2,793
Creditors: amounts falling due within one year
9
(260,899)
(138,876)
Net current assets/(liabilities)
915,361
(136,083)
Total assets less current liabilities
1,270,199
770,756
Provisions for liabilities
(30,474)
(104,984)
Net assets
1,239,725
665,772
Capital and reserves
Called up share capital
11
100
100
Revaluation reserve
12
137,371
524,917
Other reserves
13
-
6,666
Profit and loss reserves
14
1,102,254
134,089
Total equity
1,239,725
665,772

The directors of the company have elected not to include a copy of the profit and loss account within the financial statements.true

For the financial period ended 30 June 2017 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.

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

The member has not required the company to obtain an audit of its financial statements for the period in question in accordance with section 476.

These financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies' regime.

The financial statements were approved by the board of directors and authorised for issue on 19 December 2017 and are signed on its behalf by:
Mrs J K Stringer
Director
Company Registration No. 00877662
AARON RADIATOR PROPERTY COMPANY LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 30 JUNE 2017
- 2 -
1
Accounting policies
Company information

Aaron Radiator Property Company Ltd is a private company limited by shares incorporated in England and Wales. The registered office is 54 Whitehorse Lane, London, SE25 6RQ.

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 as applicable to companies subject to the small companies regime. The disclosure requirements of section 1A of FRS 102 have been applied other than where additional disclosure is required to show a true and fair view.

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.

The company has taken advantage of the exemption under section 400 of the Companies Act 2006 not to prepare consolidated accounts. The financial statements present information about the company as an individual entity and not about its group.

 

 

1.2
Reporting period

The company's accounting reference date has been extended by 3 months to end on 30 June 2017. The directors decided to move the accounting year end to coincide with the completion of a property sale and for ease of finalising the accounts for future periods. The comparatives as stated in the accounts are for a 12 month period so not directly comparable to the 15 month figures disclosed for the current year.

1.3
Turnover

Turnover is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business, and is shown net of VAT and other sales related taxes. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.

 

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.

Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer (usually on dispatch of the goods), the amount of revenue can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the entity and the costs incurred or to be incurred in respect of the transaction can be measured reliably.

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:

Motor vehicles
25% reducing balance basis
AARON RADIATOR PROPERTY COMPANY LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 30 JUNE 2017
1
Accounting policies
(Continued)
- 3 -

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 properties

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. The surplus or deficit on revaluation is recognised in the profit and loss account.

 

Where fair value cannot be achieved without undue cost or effort, investment property is accounted for as tangible fixed assets.

1.6
Fixed asset investments

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.

1.7
Cash at bank and in hand

Cash at bank and in hand 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.

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.

AARON RADIATOR PROPERTY COMPANY LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 30 JUNE 2017
1
Accounting policies
(Continued)
- 4 -
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.

1.9
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.

1.10
Leases

Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessees. All other leases are classified as operating leases.

 

Assets held under finance leases are recognised as assets at the lower of the assets fair value at the date of inception and the present value of the minimum lease payments. The related liability is included in the balance sheet as a finance lease obligation. Lease payments are treated as consisting of capital and interest elements. The interest is charged to the profit and loss account so as to produce a constant periodic rate of interest on the remaining balance of the liability.

AARON RADIATOR PROPERTY COMPANY LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 30 JUNE 2017
- 5 -
2
Operating profit/(loss)
2017
2016
Operating profit/(loss) for the period is stated after charging/(crediting):
£
£
Depreciation of owned tangible fixed assets
2,001
1,074
Profit on disposal of investment property
(1,133,352)
-
3
Taxation
2017
2016
£
£
Current tax
UK corporation tax on profits for the current period
216,076
1,771
Deferred tax
Origination and reversal of timing differences
(74,510)
10,000
Total tax charge
141,566
11,771
4
Tangible fixed assets
Motor vehicles
£
Cost
At 1 April 2016 and 30 June 2017
7,813
Depreciation and impairment
At 1 April 2016
1,074
Depreciation charged in the period
2,001
At 30 June 2017
3,075
Carrying amount
At 30 June 2017
4,738
At 31 March 2016
6,739
5
Investment property
2017
£
Fair value
At 1 April 2016
900,000
Disposals
(550,000)
At 30 June 2017
350,000
AARON RADIATOR PROPERTY COMPANY LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 30 JUNE 2017
5
Investment property
(Continued)
- 6 -

Investment property now comprises the property at Whitehorse Lane occupied by the subsidiary Aaron Radiator Company Limited.

The property at Hornsey Road was sold during the period for £1,335,000 with completion on 24th May 2017.

 

The fair value of the investment property has been arrived at on the basis of a valuation carried out December 2015 by Salter Rex Chartered Surveyors, who are not connected with the company. The valuation was made on an open market value basis by reference to market evidence of transaction prices for similar properties.

If investment properties were stated on an historical cost basis rather than a fair value basis, the amounts would have been included as follows:
2017
2016
£
£
Cost
212,629
375,083
Accumulated depreciation
-
-
Carrying amount
212,629
375,083
6
Fixed asset investments
2017
2016
£
£
Investments
100
100

Investments in subsidiaries are valued at cost less any provision for diminution in value.

7
Subsidiaries

Details of the company's subsidiaries at 30 June 2017 are as follows:

Name of undertaking
Registered
Nature of business
Class of
% Held
office
shares held
Direct
Indirect
Aaron Radiator Company Ltd
UK
sale and repair of motor vehicle radiators
Ordinary
100.00
The aggregate capital and reserves and the result for the year of the subsidiaries noted above was as follows:
Name of undertaking
Profit/(Loss)
Capital and Reserves
£
£
Aaron Radiator Company Ltd
20,549
58,989
AARON RADIATOR PROPERTY COMPANY LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 30 JUNE 2017
7
Subsidiaries
(Continued)
- 7 -

The investment in the subsidiary is valued at cost less any provision for diminution in value.

At 31 March 2016 the company wrote off the intercompany debt with it's subsidiary totalling £636,002 which had been fully provided for in the accounts on Aaron Radiator Property Company Ltd. At 30 June 2017 the company owed its subsidiary £16,189. (2016 £NIL)

8
Debtors
2017
2016
Amounts falling due within one year:
£
£
Other debtors
137
1,963
9
Creditors: amounts falling due within one year
2017
2016
£
£
Trade creditors
-
5,250
Amounts due to group undertakings
16,189
-
Corporation tax
216,076
1,771
Other creditors
28,634
131,855
260,899
138,876
10
Provisions for liabilities
2017
2016
£
£
Deferred tax liabilities
30,474
104,984
AARON RADIATOR PROPERTY COMPANY LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 30 JUNE 2017
- 8 -
11
Called up share capital
2017
2016
£
£
Ordinary share capital
Issued and fully paid
100 Ordinary of £1 each
100
100
100
100
12
Revaluation reserve
2017
2016
£
£
At beginning of period
524,917
474,917
Revaluation surplus arising in the period
-
50,000
Other movements
(387,546)
-
At end of period
137,371
524,917

In recognising the sale of the property at Hornsey Road the revaluation reserve attributed to that property has been reversed totalling £387,546. The balance on the revaluation reserve is now solely attributable to the investment property at Whitehorse Lane.

13
Other reserves
£
At 1 April 2015
-
Additions
6,666
At 30 June 2016
6,666
Other movements
(6,666)
At 30 June 2017
-

In 2016 under FRS102 the loan from the director J Stringer was valued using the amortised cost method and a market rate of interest of 5%. As a director shareholder the interest was recognised as a capital contribution taken direct to equity and was detailed in other reserves. The loan has now been reclassified as repayable on demand and the interest provision reversed in the current period.

14
Profit and loss reserves
AARON RADIATOR PROPERTY COMPANY LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 30 JUNE 2017
14
Profit and loss reserves
(Continued)
- 9 -
2017
2016
£
£
At the beginning of the period
134,089
138,052
Profit for the period
994,865
3,037
Dividends declared and paid in the period
(26,700)
(7,000)
At the end of the period
1,102,254
134,089
15
Related party transactions

The company owns a freehold property at Whitehorse Lane which is occupied by its wholly owned subsidiary Aaron Radiator Company Ltd. No commercial rent was paid during the year (2016 : £13,000) .

Due to continuing trading losses in the subsidiary the intercompany debt has been fully provided against in the accounts. At 31 March 2016 the company wrote off in full the intercompany debt owed by Aaron Radiator Company Ltd of £636,002. At the balance sheet date £16,189 (2016:£nil) was owed by the company to its subsidiary.

16
Directors' transactions

Dividends totalling £26,700 (2016 - £7,000) were paid in the period in respect of shares held by the company's directors.

17
Controlling party

The ultimate controlling party is the director Mrs J Stringer by virtue of her ownership of 100% of the issued share capital.

2017-06-302016-04-01falseCCH SoftwareCCH Accounts Production 2017.300No description of principal activity21 December 2017008776622016-04-012017-06-3000877662bus:CompanySecretaryDirector12016-04-012017-06-3000877662bus:Director12016-04-012017-06-3000877662bus:RegisteredOffice2016-04-012017-06-30008776622017-06-30008776622016-03-3100877662core:OtherPropertyPlantEquipment2017-06-3000877662core:OtherPropertyPlantEquipment2016-03-3100877662core:CurrentFinancialInstruments2017-06-3000877662core:CurrentFinancialInstruments2016-03-3100877662core:ShareCapital2017-06-3000877662core:ShareCapital2016-03-3100877662core:RevaluationReserve2017-06-3000877662core:RevaluationReserve2016-03-3100877662core:OtherMiscellaneousReserve2016-03-3100877662core:RetainedEarningsAccumulatedLosses2017-06-3000877662core:RetainedEarningsAccumulatedLosses2016-03-3100877662core:ShareCapitalOrdinaryShares2017-06-3000877662core:ShareCapitalOrdinaryShares2016-03-3100877662core:RevaluationReserve2016-03-3100877662core:MotorVehicles2016-04-012017-06-3000877662core:OwnedAssets2016-04-012017-06-3000877662core:OwnedAssets2015-04-012016-03-3100877662core:UKTax2016-04-012017-06-3000877662core:UKTax2015-04-012016-03-31008776622015-04-012016-03-3100877662core:OtherPropertyPlantEquipment2016-03-3100877662core:OtherPropertyPlantEquipment2016-04-012017-06-3000877662core:Subsidiary12016-04-012017-06-3000877662core:Subsidiary112016-04-012017-06-3000877662core:Subsidiary122016-04-012017-06-3000877662bus:OrdinaryShareClass12016-04-012017-06-3000877662bus:OrdinaryShareClass12017-06-3000877662core:LandBuildings2016-03-3100877662bus:PrivateLimitedCompanyLtd2016-04-012017-06-3000877662bus:FRS1022016-04-012017-06-3000877662bus:AuditExemptWithAccountantsReport2016-04-012017-06-3000877662bus:SmallCompaniesRegimeForAccounts2016-04-012017-06-3000877662bus:FullAccounts2016-04-012017-06-30xbrli:purexbrli:sharesiso4217:GBP