Company registration number 01117121 (England and Wales)
MARKET HARBOROUGH (VALLEY WAY) ESTATES LIMITED
FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2022
PAGES FOR FILING WITH REGISTRAR
MARKET HARBOROUGH (VALLEY WAY) ESTATES LIMITED
COMPANY INFORMATION
Directors
D A Collins
A N How
R T Miller
J D K Yeates
D C J Green
Secretary
S M How
Company number
01117121
Registered office
1 Margaret Street
London
W1W 8RB
Auditors
Harwood Hutton Limited
22 Wycombe End
Beaconsfield
Buckinghamshire
HP9 1NB
MARKET HARBOROUGH (VALLEY WAY) ESTATES LIMITED
CONTENTS
Page
Balance sheet
1
Notes to the financial statements
2 - 6
MARKET HARBOROUGH (VALLEY WAY) ESTATES LIMITED
BALANCE SHEET
AS AT
31 MARCH 2022
31 March 2022
- 1 -
2022
2021
Notes
£
£
£
£
Fixed assets
Investment properties
3
30,723,660
24,740,000
Current assets
Debtors
4
1,082,677
1,004,639
Cash at bank and in hand
1,437,688
4,934,147
2,520,365
5,938,786
Creditors: amounts falling due within one year
5
(844,086)
(789,735)
Net current assets
1,676,279
5,149,051
Total assets less current liabilities
32,399,939
29,889,051
Creditors: amounts falling due after more than one year
6
(1,180,035)
(1,180,035)
Provisions for liabilities
(1,054,946)
(507,743)
Net assets
30,164,958
28,201,273
Capital and reserves
Called up share capital
7
100,000
100,000
Non-distributable profits reserve
8
9,973,306
9,206,489
Distributable profit and loss reserves
20,091,652
18,894,784
Total equity
30,164,958
28,201,273
The directors of the company have elected not to include a copy of the profit and loss account within the financial statements.true
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 22 August 2022 and are signed on its behalf by:
A N How
Director
Company Registration No. 01117121
MARKET HARBOROUGH (VALLEY WAY) ESTATES LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2022
- 2 -
1
Accounting policies
Company information
Market Harborough (Valley Way) Estates Limited is a private company limited by shares incorporated in England and Wales. The registered office is 1 Margaret Street, London, W1W 8RB.
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 and certain financial instruments at fair value. The principal accounting policies adopted are set out below.
1.2
Turnover
Turnover is measured at the fair value of the consideration received or receivable for rental income, insurance recharges, management fee recharges and other recharged income in the normal course of business, and is shown net of discounts and VAT.
Rental income
Operating lease income from investment properties is recognised in profit and loss on a straight-line basis over the lease term.
Other recharged income
Income relating to expense amounts recharged to tenants is recognised in profit and loss at the time the expenditure was originally incurred.
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. Changes in fair value are recognised in profit or loss.
1.4
Financial instruments
The company has elected to apply the provisions of Section 11 ”Basic Financial Instruments” 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.
Basic financial assets
Short term debtors are measured at transaction price less any provision for impairment. Loans receivable are measured initially at fair value, net of transaction costs and are subsequently carried at amortised costs using the effective interest method, less any provision for impairment.
Basic financial liabilities
Short term creditors are measured at transaction price. Other financial liabilities, including bank loans and other loans, are measured initially at fair value, net of transaction costs and are subsequently carried at amortised costs using the effective interest method.
MARKET HARBOROUGH (VALLEY WAY) ESTATES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2022
1
Accounting policies
(Continued)
- 3 -
1.5
Compound instruments
The component parts of compound instruments issued by the company are classified separately as financial liabilities and equity in accordance with the substance of the contractual arrangement. At the date of issue, the fair value of the liability component is estimated using the prevailing market interest rate for a similar non-convertible instrument. This amount is recorded as a liability on an amortised cost basis using the effective interest method until extinguished upon conversion or at the instrument's maturity date. The equity component is determined by deducting the amount of the liability component from the fair value of the compound instrument as a whole. This is recognised and included in equity net of income tax effects and is not subsequently remeasured.
1.6
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.
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.
1.7
Employee benefits
The costs of short-term employee benefits are recognised as a liability and an expense.
2
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2022
2021
Number
Number
Total
6
5
MARKET HARBOROUGH (VALLEY WAY) ESTATES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2022
- 4 -
3
Investment property
2022
£
Fair value
At 1 April 2021
24,740,000
Additions
4,272,851
Revaluations
1,710,809
At 31 March 2022
30,723,660
The historical cost of the investment properties is £19,676,422 (2021 - £15,405,071).
The investment properties were valued by Lambert Smith Hampton Limited, Chartered Surveyors, as at 14 June 2019 on an open market value basis.
The directors have, using their professional expertise, reviewed the valuation previously provided by Lambert Smith Hampton Limited and made adjustments to the valuation at 31 March 2022.
4
Debtors
2022
2021
Amounts falling due within one year:
£
£
Trade debtors
398,006
304,817
Other debtors
684,671
699,822
1,082,677
1,004,639
5
Creditors: amounts falling due within one year
2022
2021
£
£
Corporation tax
174,472
196,737
Other taxation and social security
92,796
38,007
Other creditors
576,818
554,991
844,086
789,735
6
Creditors: amounts falling due after more than one year
2022
2021
£
£
Other creditors
1,180,035
1,180,035
Amounts of £1,180,035 (2021 - £1,180,035) included in other creditors relate to preference shares classified as liabilities as detailed in note 8.
MARKET HARBOROUGH (VALLEY WAY) ESTATES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2022
- 5 -
7
Called up share capital
2022
2021
2022
2021
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
100,000
100,000
100,000
100,000
2022
2021
2022
2021
Preference share capital
Number
Number
£
£
Issued and fully paid
A Preference shares of £1 each
1,080,035
1,080,035
1,080,035
1,080,035
B Preference shares of £1 each
100,000
100,000
100,000
100,000
1,180,035
1,180,035
1,180,035
1,180,035
Preference shares classified as liabilities
1,180,035
1,180,035
The preference shares detailed above do not have a contractually stated redemption date however they are redeemable at par value subject to both parties approval. They entitle the shareholder to a variable net cumulative preference share dividend on the 31 March in each year in respect of the twelve month period ending on that date. The rate of return on the preference shares is in line with the market rate of borrowing.
8
Non-distributable profits reserve
2022
2021
£
£
At the beginning of the year
9,206,489
8,056,144
Non distributable profits in the year
766,817
1,150,345
At the end of the year
9,973,306
9,206,489
9
Audit report information
As the income statement has been omitted from the filing copy of the financial statements, the following information in relation to the audit report on the statutory financial statements is provided in accordance with s444(5B) of the Companies Act 2006:
The auditor's report was unqualified.
We draw attention to notes 3, 4, & 9 of the financial statements, which describe the fair value of investment properties and the recognition of non-distributable reserves. A qualified director has professionally valued the investment properties held by the company as at the reporting date. This valuation is below the expectation assessed through reference to the commercial property price index, suggesting that the directors have taken a prudent approach. This estimation has impacted on the deferred taxation calculation and the non-distributable reserves presented by the company. Our opinion is not modified in this respect.
The senior statutory auditor was Keir Singleton and the auditor was Harwood Hutton Limited.
MARKET HARBOROUGH (VALLEY WAY) ESTATES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2022
- 6 -
10
Related party transactions
Two directors of the company are directors of Davis Brown Limited. During the year the company incurred expenses of £85,144 (2021 - £96,422) with regards to property management fees. Davis Brown Limited also collects rental monies on behalf of the company. At the year end £626,306 (2021 - £649,092) was held by Davis Brown in a client account in respect of rental monies collected but not yet paid over to the company.
A director of the company is a director of Karslakes Solicitors Limited. During the year the company incurred expenses of £26,009 (2021 - £10,590) with regards to legal fees and advice.