Registered number: 02460603
Montrose Court Holdings Limited
Financial statements
Information for filing with the registrar
For the year ended 31 December 2021
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Montrose Court Holdings Limited
Registered number: 02460603
Balance sheet
As at 31 December 2021
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Debtors: amounts falling due within one year
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Creditors: amounts falling due within one year
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Total assets less current liabilities
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Provisions for liabilities
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The financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies regime and in accordance with the provisions of FRS 102 Section 1A - small entities.
The financial statements have been delivered in accordance with the provisions applicable to companies subject to the small companies regime.
The company has opted not to file the statement of comprehensive income in accordance with provisions applicable to companies subject to the small companies' regime.
The financial statements were approved and authorised for issue by the board and were signed on its behalf by:
J E Martin BSc (Hons) ACA
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The notes on pages 2 to 7 form part of these financial statements.
Page 1
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Montrose Court Holdings Limited
Notes to the financial statements
For the year ended 31 December 2021
Montrose Court Holdings Limited is a private company limited by shares and is incorporated in England with the registration number 02460603. The address of the registered office is 2nd Floor, 168 Shoreditch High Street, London, E1 6RA.
2.Accounting policies
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Basis of preparation of financial statements
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The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Section 1A of Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and the Companies Act 2006.
The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires management to exercise judgement in applying the company's accounting policies (see note 4).
The company's functional and presentational currency is pounds sterling. The financial statements are rounded to the nearest pound.
The following principal accounting policies have been applied:
Revenue is recognised to the extent that it is probable that the economic benefits will flow to the company and the revenue can be reliably measured. Revenue is measured as the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. The following criteria must also be met before revenue is recognised:
Rendering of services
Revenue from a contract to provide services is recognised in the period in which the services are provided in accordance with the stage of completion of the contract when all of the following conditions are satisfied:
∙the amount of revenue can be measured reliably;
∙it is probable that the company will receive the consideration due under the contract;
∙the stage of completion of the contract at the end of the reporting period can be measured reliably; and
∙the costs incurred and the costs to complete the contract can be measured reliably.
The company's turnover represents rents and commissions receivable during the year.
Interest income is recognised in profit or loss using the effective interest method.
Page 2
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Montrose Court Holdings Limited
Notes to the financial statements
For the year ended 31 December 2021
2.Accounting policies (continued)
Defined contribution pension plan
The company operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the company pays fixed contributions into a separate entity. Once the contributions have been paid the company has no further payment obligations.
The contributions are recognised as an expense in profit or loss when they fall due. Amounts not paid are shown in accruals as a liability in the balance sheet. The assets of the plan are held separately from the company in independently administered funds.
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Current and deferred taxation
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The tax expense for the year comprises current and deferred tax. Tax is recognised in profit or loss except that a charge attributable to an item of income and expense recognised as other comprehensive income or to an item recognised directly in equity is also recognised in other comprehensive income or directly in equity respectively.
The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the balance sheet date in the countries where the company operates and generates income.
Deferred tax balances are recognised in respect of all timing differences that have originated but not reversed by the balance sheet date, except that:
∙The recognition of deferred tax assets is limited to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits; and
∙Any deferred tax balances are reversed if and when all conditions for retaining associated tax allowances have been met.
Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the balance sheet date.
Investment property is carried at fair value determined annually and derived from the current market rents and investment property yields for comparable real estate, adjusted if necessary for any difference in the nature, location or condition of the specific asset. No depreciation is provided. Changes in fair value are recognised in profit or loss.
Short-term debtors are measured at transaction price, less any impairment. Loans receivable are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method, less any impairment.
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Cash and cash equivalents
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Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours. Cash equivalents are highly liquid investments that mature in no more than three months from the date of acquisition and that are readily convertible to known amounts of cash with insignificant risk of change in value.
Page 3
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Montrose Court Holdings Limited
Notes to the financial statements
For the year ended 31 December 2021
2.Accounting policies (continued)
Short-term creditors are measured at the transaction price. Other financial liabilities, including bank loans, are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method.
Finance costs are charged to profit or loss over the term of the debt using the effective interest method so that the amount charged is at a constant rate on the carrying amount. Issue costs are initially recognised as a reduction in the proceeds of the associated capital instrument.
The auditor's report on the financial statements for the year ended 31 December 2021 was unqualified.
The audit report was signed on 17 August 2022 by Peter Manser FCA DChA (senior statutory auditor) on behalf of Kreston Reeves LLP.
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Judgements in applying accounting policies and key sources of estimation uncertainty
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The preparation of the financial statements requires the directors to make judgements, estimates and assumptions that can affect the amounts reported for assets and liabilities, and the results for the year. The nature of estimation is such though that actual outcomes could differ significantly from those estimates.
The following judgements have had the most significant impact on amounts recognised in the financial statements:
Investment property
The company holds investment property with fair value of £2,500,000 (2020 - £2,460,000) at the year end (see note 7). In order to determine the fair value of investment property an assessment is made of the current market rents and investment property yields for comparable real estate, adjusted if necessary for any difference in the nature, location or condition of the specific asset. The determined fair value of the investment property is most sensitive to fluctuations in the property market.
Taxation
Provision has been made in the financial statements for deferred tax amounting to £504,436 (2020 - £375,771) at the reporting date (see note 10). This provision is based upon estimates of the timing of the reversal of timing differences upon which the provision is based and the tax rates that will be in force at that time together with an assessment of the impact of future tax planning strategies.
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The average monthly number of employees, including directors, during the year was 4 (2020 - 4).
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Page 4
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Montrose Court Holdings Limited
Notes to the financial statements
For the year ended 31 December 2021
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Investments in subsidiary companies
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Montrose Court Management Limited is a subsidiary undertaking of the company, by virtue of the company's holding of 97% of its Ordinary B share capital. The registered office of Montrose Court Management Limited is 2nd Floor, Front Suite, 29-30 Watling Street, Canterbury, CT1 2UD.
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Long term leasehold investment property
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The company's leasehold investment property has been valued at the year end by the directors at fair value.
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Amounts owed by group undertakings
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Prepayments and accrued income
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Page 5
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Montrose Court Holdings Limited
Notes to the financial statements
For the year ended 31 December 2021
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Creditors: Amounts falling due within one year
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Amounts owed to group undertakings
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Accruals and deferred income
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Charged to profit or loss
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The provision for deferred taxation is made up as follows:
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Allotted, called up and fully paid
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1,000 (2020 - 1,000) Ordinary shares of £1 each
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Other reserves
To assist with the identification of profits available for distribution this reserve represents changes in the fair value of the company’s investment properties to the extent that they are not considered to be distributable to the company’s shareholders, less any related provision for current or deferred tax.
Profit and loss account
This reserve comprises all current and prior period retained profits and losses after deducting any distributions made to the company’s shareholders.
Page 6
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Montrose Court Holdings Limited
Notes to the financial statements
For the year ended 31 December 2021
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Related party transactions
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The company is exempt from disclosing related party transactions with other companies that are wholly owned within the group.
All other related party transactions during the current and prior periods were made under normal market conditions.
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The company is a wholly owned subsidiary undertaking of Latham Trust Limited, a company registered in England.
The company's ultimate parent undertaking is The Chandler Corporation Limited. The Chandler Corporation Limited prepares consolidated financial statements which include the results of the company. Those financial statements may be obtained from its registered office at 2nd Floor, 168 Shoreditch High Street, London, E1 6RA.
Page 7
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