Caseware UK (AP4) 2021.0.152 2021.0.152 158588072148644908The members have not required the company to obtain an audit in accordance with section 476 of the Companies Act 2006.2021-01-01falseNo description of principal activity55falsetrue 02070965 2021-01-01 2021-12-31 02070965 2020-01-01 2020-12-31 02070965 2021-12-31 02070965 2020-12-31 02070965 2020-01-01 02070965 4 2021-01-01 2021-12-31 02070965 d:Director2 2021-01-01 2021-12-31 02070965 e:FreeholdInvestmentProperty 2021-01-01 2021-12-31 02070965 e:FreeholdInvestmentProperty 2021-12-31 02070965 e:FreeholdInvestmentProperty 2020-12-31 02070965 e:CurrentFinancialInstruments 2021-12-31 02070965 e:CurrentFinancialInstruments 2020-12-31 02070965 e:CurrentFinancialInstruments e:WithinOneYear 2021-12-31 02070965 e:CurrentFinancialInstruments e:WithinOneYear 2020-12-31 02070965 e:ShareCapital 2021-01-01 2021-12-31 02070965 e:ShareCapital 2021-12-31 02070965 e:ShareCapital 2020-01-01 2020-12-31 02070965 e:ShareCapital 2020-12-31 02070965 e:ShareCapital 2020-01-01 02070965 e:InvestmentPropertiesRevaluationReserve 2021-01-01 2021-12-31 02070965 e:InvestmentPropertiesRevaluationReserve 2021-12-31 02070965 e:InvestmentPropertiesRevaluationReserve 4 2021-01-01 2021-12-31 02070965 e:InvestmentPropertiesRevaluationReserve 2020-01-01 2020-12-31 02070965 e:InvestmentPropertiesRevaluationReserve 2020-12-31 02070965 e:InvestmentPropertiesRevaluationReserve 2020-01-01 02070965 e:RetainedEarningsAccumulatedLosses 2021-01-01 2021-12-31 02070965 e:RetainedEarningsAccumulatedLosses 2021-12-31 02070965 e:RetainedEarningsAccumulatedLosses 4 2021-01-01 2021-12-31 02070965 e:RetainedEarningsAccumulatedLosses 2020-01-01 2020-12-31 02070965 e:RetainedEarningsAccumulatedLosses 2020-12-31 02070965 e:RetainedEarningsAccumulatedLosses 2020-01-01 02070965 e:FinancialAssetsDesignatedFairValueThroughProfitOrLoss 2021-12-31 02070965 e:FinancialAssetsDesignatedFairValueThroughProfitOrLoss 2020-12-31 02070965 e:AcceleratedTaxDepreciationDeferredTax 2021-12-31 02070965 e:AcceleratedTaxDepreciationDeferredTax 2020-12-31 02070965 e:OtherDeferredTax 2021-12-31 02070965 e:OtherDeferredTax 2020-12-31 02070965 d:OrdinaryShareClass1 2021-01-01 2021-12-31 02070965 d:OrdinaryShareClass1 2021-12-31 02070965 d:OrdinaryShareClass1 2020-12-31 02070965 d:FRS102 2021-01-01 2021-12-31 02070965 d:AuditExempt-NoAccountantsReport 2021-01-01 2021-12-31 02070965 d:FullAccounts 2021-01-01 2021-12-31 02070965 d:PrivateLimitedCompanyLtd 2021-01-01 2021-12-31 02070965 e:Subsidiary1 2021-01-01 2021-12-31 02070965 e:Subsidiary1 1 2021-01-01 2021-12-31 02070965 e:Subsidiary2 2021-01-01 2021-12-31 02070965 e:Subsidiary2 1 2021-01-01 2021-12-31 02070965 6 2021-01-01 2021-12-31 02070965 e:Right-of-useInvestmentProperty 2021-01-01 2021-12-31 02070965 e:Right-of-useInvestmentProperty 2021-12-31 02070965 e:Right-of-useInvestmentProperty 2020-12-31 02070965 e:InterestFeesOtherIncomeTransactions 2021-01-01 2021-12-31 02070965 e:InterestFeesOtherIncomeTransactions 2020-01-01 2020-12-31 xbrli:shares iso4217:GBP xbrli:pure

Registered number: 02070965










MORGAN INDUSTRIAL PROPERTIES LIMITED








Unaudited

Financial statements

Information for filing with the registrar

For the Year Ended 31 December 2021

 
MORGAN INDUSTRIAL PROPERTIES LIMITED
Registered number: 02070965

Balance Sheet
As at 31 December 2021

2021
2020
Note
£
£

Fixed assets
  

Fixed asset investments
 5 
478,478
478,478

Investment property
 6 
79,294,036
74,322,454

  
79,772,514
74,800,932

Current assets
  

Debtors: amounts falling due within one year
 7 
866,889
1,175,161

Cash at bank and in hand
 8 
475,987
543,526

  
1,342,876
1,718,687

Creditors: amounts falling due within one year
 9 
(8,534,329)
(7,342,861)

Net current liabilities
  
 
 
(7,191,453)
 
 
(5,624,174)

Total assets less current liabilities
  
72,581,061
69,176,758

Provisions for liabilities
  

Deferred tax
 11 
(3,638,096)
(2,610,607)

Net assets
  
68,942,965
66,566,151


Capital and reserves
  

Called up share capital 
 12 
100
100

Investment property reserve
  
12,330,560
12,974,660

Profit and loss account
  
56,612,305
53,591,391

  
68,942,965
66,566,151


Page 1

 
MORGAN INDUSTRIAL PROPERTIES LIMITED
Registered number: 02070965

Balance Sheet (continued)
As at 31 December 2021

The directors consider that the Company is entitled to exemption from audit under section 477 of the Companies Act 2006 and members have not required the Company to obtain an audit for the year in question in accordance with section 476 of the Companies Act 2006.

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 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 on 30 August 2022.




N J Morgan
Director

The notes on pages 4 to 10 form part of these financial statements.

Page 2

 
MORGAN INDUSTRIAL PROPERTIES LIMITED
 

Statement of Changes in Equity
For the Year Ended 31 December 2021


Called up share capital
Investment property revaluation reserve
Profit and loss account
Total equity

£
£
£
£


At 1 January 2020
100
12,974,660
51,097,245
64,072,005


Comprehensive income for the year

Profit for the year
-
-
4,294,146
4,294,146
Total comprehensive income for the year
-
-
4,294,146
4,294,146


Contributions by and distributions to owners

Dividends: Equity capital
-
-
(1,800,000)
(1,800,000)


Total transactions with owners
-
-
(1,800,000)
(1,800,000)



At 1 January 2021
100
12,974,660
53,591,391
66,566,151


Comprehensive income for the year

Profit for the year
-
-
3,920,914
3,920,914
Total comprehensive income for the year
-
-
3,920,914
3,920,914


Contributions by and distributions to owners

Dividends: Equity capital
-
-
(900,000)
(900,000)

Deferred tax movements on investment properties
-
(644,100)
-
(644,100)


Total transactions with owners
-
(644,100)
(900,000)
(1,544,100)


At 31 December 2021
100
12,330,560
56,612,305
68,942,965


The notes on pages 4 to 10 form part of these financial statements.

Page 3

 
MORGAN INDUSTRIAL PROPERTIES LIMITED
 

 
Notes to the Financial Statements
For the Year Ended 31 December 2021

1.


General information

Morgan Industrial Properities Limited is a company limited by shares incorporated in England & Wales. The address of the registered office is Alfreton Road, Derby DE21 4AP.
The Company's presentational and functional currency is sterling (£). The financial statements are rounded to the nearest £.

2.Accounting policies

 
2.1

Basis of preparation of financial statements

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 judgment in applying the Company's accounting policies (see note 3).

The following principal accounting policies have been applied:

 
2.2

Exemption from preparing consolidated financial statements

The Company, and the Group headed by it, qualify as small as set out in section 383 of the Companies Act 2006 and the parent and Group are considered eligible for the exemption to prepare consolidated accounts.

 
2.3

Going concern

The impact of the Covid 19 pandemic on the business has been challenging, but the directors have sought to address these challenges by reducing all non-essential costs where possible to safeguard the economic future of the Company and ensuring it utilises available financial support, where appropriate. The Company's cashflows remain healthy. The directors have not considered it necessary to prepare formal forecasts for the Company given the overall strength of the cash position of the Company, which retains considerable levels of cash and no external debt. Although the Company has net current liabilities of £7,191,453 (2020: £5,624,174), £6,870,596 is due to directors and related companies and therefore no repayment will be sought unless the Company is in a position to repay these amounts without detriment to third party creditors. In addition, £775,908 relates to deferred income and so does not represent amounts payable.
The directors, therefore, consider that they have a reasonable expectation that the Company has adequate resources to continue in operational existence for the foreseeable future, for a variety of potential scenarios. The Company therefore continues to adopt the going concern basis in preparing its financial statements. 

 
2.4

Revenue

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:

Revenue comprises rental income which is recognised when payment becomes due and to the period to which they relate.

Page 4

 
MORGAN INDUSTRIAL PROPERTIES LIMITED
 

 
Notes to the Financial Statements
For the Year Ended 31 December 2021

2.Accounting policies (continued)

 
2.5

Operating leases: the Company as lessor

Rental income from operating leases is credited to profit or loss on a straight line basis over the lease term.

Amounts paid and payable as an incentive to sign an operating lease are recognised as a reduction to income over the lease term on a straight line basis, unless another systematic basis is representative of the time pattern over which the lessor's benefit from the leased asset is diminished.

Temporary rent concessions occurring as a direct consequence of the COVID-19 pandemic have been recognised on a systematic basis over the periods that the change in lease income is intended to compensate. This is conditional on:

the change in lease income resulting in revised consideration for the lease that is less than the consideration for the lease immediately preceding the change;
any reduction in lease income affecting only income originally due on or before 30 June 2021;
there being no significant change to other terms and conditions of the lease.

 
2.6

Finance costs

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.

 
2.7

Current and deferred taxation

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 balances are not recognised in respect of permanent differences except in respect of business combinations, when deferred tax is recognised on the differences between the fair values of assets acquired and the future tax deductions available for them and the differences between the fair values of liabilities acquired and the amount that will be assessed for tax. Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the balance sheet date.

 
2.8

Investment property

Investment property is carried at fair value determined annually by external valuers 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.

Page 5

 
MORGAN INDUSTRIAL PROPERTIES LIMITED
 

 
Notes to the Financial Statements
For the Year Ended 31 December 2021

2.Accounting policies (continued)

 
2.9

Valuation of investments

Investments in subsidiaries are measured at cost less accumulated impairment.

 
2.10

Associates and joint ventures

Associates and Joint Ventures are held at cost less impairment.

 
2.11

Debtors

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.

 
2.12

Cash and cash equivalents

Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours.

 
2.13

Creditors

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.

 
2.14

Dividends

Equity dividends are recognised when they become legally payable. Interim equity dividends are recognised when paid. Final equity dividends are recognised when approved by the shareholders at an annual general meeting.


3.


Judgments in applying accounting policies and key sources of estimation uncertainty

Investment properties are carried at fair value which is determined annually. The estimation of fair value is carried out by someone with adequate experience to make a reasonable assessment of fair value.


4.


Employees

The average monthly number of employees, including directors, during the year was 5 (2020 - 5).

Page 6

 
MORGAN INDUSTRIAL PROPERTIES LIMITED
 

 
Notes to the Financial Statements
For the Year Ended 31 December 2021

5.


Fixed asset investments





Investments in subsidiary companies
Investments in associates
Total

£
£
£



Cost 


At 1 January 2021
378,477
100,001
478,478



At 31 December 2021
378,477
100,001
478,478





Subsidiary undertakings


The following were subsidiary undertakings of the Company:

Name

Registered office

Principal activity

Class of shares

Holding

MIP Developments Limited
Alfreton Road, Derby, DE21 4AP
Development
Ordinary
100%
Eyrie Property Limited
Gibraltar
Dormant
Dormant
100%


Participating interests


The Company holds a 20.5% interest in Pektron Group Limited, a company registered in England & Wales, whose principal activity is the manufacture of electronic equipment. This company's registered office is Alfreton Road, Derby DE21 4AP.

Page 7

 
MORGAN INDUSTRIAL PROPERTIES LIMITED
 

 
Notes to the Financial Statements
For the Year Ended 31 December 2021

6.


Investment property


Freehold investment property
Property under construc-tion
Total

£
£
£



Valuation


At 1 January 2021
72,168,514
2,153,940
74,322,454


Additions at cost
4,971,582
-
4,971,582



At 31 December 2021
77,140,096
2,153,940
79,294,036

The 2021 valuations were made by Directors, on an open market value for existing use basis.



If the Investment properties had been accounted for under the historic cost accounting rules, the properties would have been measured as follows:

2021
2020
£
£


Historic cost
68,559,030
63,587,448


7.


Debtors

2021
2020
£
£


Trade debtors
609,703
1,123,234

Amounts owed by group undertakings
83,186
38,296

Other debtors
174,000
13,631

866,889
1,175,161



8.


Cash and cash equivalents

2021
2020
£
£

Cash at bank and in hand
475,987
543,526


Page 8

 
MORGAN INDUSTRIAL PROPERTIES LIMITED
 

 
Notes to the Financial Statements
For the Year Ended 31 December 2021

9.


Creditors: Amounts falling due within one year

2021
2020
£
£

Trade creditors
4,643
36,226

Corporation tax
384,477
414,520

Other taxation and social security
-
252,332

Other creditors
7,341,583
5,796,004

Accruals and deferred income
803,626
843,779

8,534,329
7,342,861



10.


Financial instruments

2021
2020
£
£

Financial assets


Financial assets measured at fair value through profit or loss
475,987
543,526




Financial assets measured at fair value through profit or loss comprise cash balances.


11.


Deferred taxation




2021


£






At beginning of year
(2,610,607)


Charged to profit or loss
(1,027,489)



At end of year
(3,638,096)

The provision for deferred taxation is made up as follows:

2021
2020
£
£


Accelerated capital allowances
(954,345)
(570,956)

Potential gain of sale of properties
(2,683,751)
(2,039,651)

(3,638,096)
(2,610,607)

The net reversal of deferred tax liabilities expected to occur in the following reporting period is not deemed to be significant. 

Page 9

 
MORGAN INDUSTRIAL PROPERTIES LIMITED
 

 
Notes to the Financial Statements
For the Year Ended 31 December 2021

12.


Share capital

2021
2020
£
£
Allotted, called up and fully paid



100 (2020 - 100) Ordinary shares of £1.00 each
100
100



13.


Related party transactions

During the year, the Company received rent of £1,696,200 (2020: £1,496,945) from an associated company.  The Company also paid a management charge of £33,000 (2020: £33,000) to this associated company. At 31 December 2021 the Company owed £2,134,954 to this company (2020: £1,609,707).
At 31 December 2021, there was an amount of £83,186 due from a subsidiary company (2020: £38,296).  The loan is unsecured, interest free and has no fixed repayment date.
At 31 December 2021 there was an amount of £4,735,642 (2020: £3,742,771) due from the directors of the company. This amount is unsecured, has no fixed repayment date, and accrues interest at a rate of 3% per annum.  The interest charged in the year was £116,090 (2020: £62,081).


Page 10