Company registration number 10506180 (England and Wales)
PREFERRED PROPERTIES LIMITED
UNAUDITED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2021
PAGES FOR FILING WITH REGISTRAR
PREFERRED PROPERTIES LIMITED
CONTENTS
Page
Balance sheet
1
Notes to the financial statements
2 - 5
PREFERRED PROPERTIES LIMITED
BALANCE SHEET
AS AT
31 DECEMBER 2021
31 December 2021
- 1 -
2021
2020
Notes
£
£
£
£
Fixed assets
Investment properties
4
1,003,000
996,997
Current assets
Debtors
5
2,536
2,536
Cash at bank and in hand
2,006
2,307
4,542
4,843
Creditors: amounts falling due within one year
6
(110,718)
(109,091)
Net current liabilities
(106,176)
(104,248)
Total assets less current liabilities
896,824
892,749
Creditors: amounts falling due after more than one year
7
(730,839)
(730,839)
Net assets
165,985
161,910
Capital and reserves
Called up share capital
8
2
2
Profit and loss reserves
9
165,983
161,908
Total equity
165,985
161,910

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 year ended 31 December 2021 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 Companies Act 2006 with respect to accounting records and the preparation of financial statements.

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.

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 25 May 2022 and are signed on its behalf by:
Ms L Sadler
Director
Company Registration No. 10506180
PREFERRED PROPERTIES LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2021
- 2 -
1
Accounting policies
Company information

Preferred Properties Limited is a private company limited by shares incorporated in England and Wales. The registered office is Mill Cottage, The Street, Salcott, CM9 8HS.

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 investment properties at fair value. The principal accounting policies adopted are set out below.

1.2
Turnover

Turnover is recognised at the fair value of the rent receivable in the normal course of business.

1.3
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 profit or loss.

1.4
Financial instruments

Basic financial instruments are initially recognised at transaction value and subsequently measured at amortised cost.

 

Financial assets comprise cash at bank and in hand, together with other debtors. A specific provision is made for debts for which recoverability is in doubt. Cash at bank and in hand is defined as all cash held in instant access bank accounts and used as working capital.

Financial liabilities held at amortised cost comprise all creditors except social security and other taxes, deferred income and provisions.

1.5
Equity instruments

Equity instruments issued by the company are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.

PREFERRED PROPERTIES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2021
1
Accounting policies
(Continued)
- 3 -
1.6
Employee benefits

The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.

 

The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.

 

Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

2
Judgements and key sources of estimation uncertainty

In the application of the company’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

 

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

 

The directors have estimated the fair value of the investment properties based upon open market data and improvements made to these properties since acquisition. Details of this can be found on Note 4.

3
Employees

The average monthly number of persons (including directors) employed by the company during the year was:

2021
2020
Number
Number
Total
2
2
4
Investment property
2021
£
Fair value
At 1 January 2021
996,997
Revaluations
6,003
At 31 December 2021
1,003,000
PREFERRED PROPERTIES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2021
4
Investment property
(Continued)
- 4 -

Investment property comprises of three residential properties. Two of the properties were purchased in 2017 and a further one in 2019. The fair value of the investment properties has been arrived at on an open market basis by reference to market evidence of transaction prices for similar properties. The directors do not believe that the market price is materially different to that disclosed in the accounts.

5
Debtors
2021
2020
Amounts falling due within one year:
£
£
Other debtors
2,536
2,536
6
Creditors: amounts falling due within one year
2021
2020
£
£
Other creditors
110,718
109,091
7
Creditors: amounts falling due after more than one year
2021
2020
£
£
Bank loans and overdrafts
684,189
684,189
Other creditors
46,650
46,650
730,839
730,839

Included in bank loans and overdrafts are secured liabilities totalling £684,189 (2020: £684,189) representing loans taken out to fund the purchase of the investment properties. The loans are interest only and are secured by a first charge against each of the properties. The loans are repayable in 25 years.

Creditors which fall due after five years are as follows:
2021
2020
£
£
Payable other than by instalments
684,189
684,189
8
Called up share capital
2021
2020
2021
2020
Ordinary share capital
Number
Number
£
£
Issued and fully paid
ordinary shares of £1 each
2
2
2
2
PREFERRED PROPERTIES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2021
- 5 -
9
Profit and loss reserves
2021
2020
£
£
At the beginning of the year
161,908
161,379
Profit for the year
4,075
529
At the end of the year
165,983
161,908

Included within profit and loss reserves are non-distributable profits, as set out below:

2021
2020
£
£
Non-distributable profits included above
At the beginning of the year
199,602
199,602
Non distributable profits in the year
6,003
-
At the end of the year
205,605
199,602
Distributable profits
(39,622)
(37,694)
2021-12-312021-01-01false25 May 2022CCH SoftwareCCH Accounts Production 2022.100No description of principal activityMs L SadlerMr D SurguyMs L Sadler105061802021-01-012021-12-31105061802021-12-31105061802020-12-3110506180core:CurrentFinancialInstrumentscore:WithinOneYear2021-12-3110506180core:CurrentFinancialInstrumentscore:WithinOneYear2020-12-3110506180core:Non-currentFinancialInstrumentscore:AfterOneYear2021-12-3110506180core:Non-currentFinancialInstrumentscore:AfterOneYear2020-12-3110506180core:Non-currentFinancialInstruments2021-12-3110506180core:Non-currentFinancialInstruments2020-12-3110506180core:ShareCapital2021-12-3110506180core:ShareCapital2020-12-3110506180core:RetainedEarningsAccumulatedLosses2021-12-3110506180core:RetainedEarningsAccumulatedLosses2020-12-3110506180core:RetainedEarningsAccumulatedLosses2020-12-3110506180core:RetainedEarningsAccumulatedLosses2019-12-3110506180bus:CompanySecretaryDirector12021-01-012021-12-31105061802020-01-012020-12-31105061802020-12-3110506180core:WithinOneYear2021-12-3110506180core:WithinOneYear2020-12-3110506180core:CurrentFinancialInstruments2021-12-3110506180core:CurrentFinancialInstruments2020-12-3110506180bus:PrivateLimitedCompanyLtd2021-01-012021-12-3110506180bus:SmallCompaniesRegimeForAccounts2021-01-012021-12-3110506180bus:FRS1022021-01-012021-12-3110506180bus:AuditExemptWithAccountantsReport2021-01-012021-12-3110506180bus:Director12021-01-012021-12-3110506180bus:Director22021-01-012021-12-3110506180bus:CompanySecretary12021-01-012021-12-3110506180bus:FullAccounts2021-01-012021-12-31xbrli:purexbrli:sharesiso4217:GBP