Company registration number 05460710 (England and Wales)
SILVERMIST PROPERTIES (CHELMSFORD) LIMITED
FINANCIAL STATEMENTS
FOR THE YEAR ENDED
31 MARCH 2022
31 March 2022
PAGES FOR FILING WITH REGISTRAR
SILVERMIST PROPERTIES (CHELMSFORD) LIMITED
CONTENTS
Page
Balance sheet
1
Notes to the financial statements
2 - 5
SILVERMIST PROPERTIES (CHELMSFORD) LIMITED
BALANCE SHEET
AS AT
31 MARCH 2022
31 March 2022
- 1 -
2022
2021
Notes
£
£
£
£
Fixed assets
Investment properties
3
9,530,000
9,350,000
Current assets
Debtors
4
4,673
340,127
Creditors: amounts falling due within one year
5
(1,379,634)
(1,728,499)
Net current liabilities
(1,374,961)
(1,388,372)
Total assets less current liabilities
8,155,039
7,961,628
Creditors: amounts falling due after more than one year
6
(8,000,000)
(8,000,000)
Net assets/(liabilities)
155,039
(38,372)
Capital and reserves
Called up share capital
6
1
1
Profit and loss reserves
155,038
(38,373)
Total equity
155,039
(38,372)

The directors of the company have elected not to include a copy of the profit and loss account and directors' report 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 8 September 2022 and are signed on its behalf by:
MPR Kean
Director
Company Registration No. 05460710
SILVERMIST PROPERTIES (CHELMSFORD) LIMITED
NOTES TO THE  FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2022
- 2 -
1
Accounting policies
Company information

Silvermist Properties (Chelmsford) Limited is a private company limited by shares incorporated in England and Wales. The registered office is Fairacres, Stock Lane, Ingatestone, Essex, CM4 9QL.

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 on the historical cost convention, modified to include investment properties at fair value. The principal accounting policies adopted are set out below.

1.2
Going concern

Atruet the time of approving the financial statements, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future.

 

The investment properties are held for long term return and rental yield thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.

1.3
Turnover

Turnover consists solely of amounts receivable for UK property rental services net of VAT and trade discounts. Credit is taken for rents receivable on a daily basis. Any amounts of rent receivable in advance are carried forward.

1.4
Investment properties

Investment property, which is property held to earn rentals and/or for capital appreciation, is measured using the fair value model and stated at its fair value as the reporting end date. The surplus or deficit on revaluation is recognised in the profit and loss account.

1.5
Impairment of fixed assets

At each reporting end date, the company reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any).

Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.

 

If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.

SILVERMIST PROPERTIES (CHELMSFORD) LIMITED
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2022
1
Accounting policies
(Continued)
- 3 -
1.6
Cash and cash equivalents

Cash and cash equivalents 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.

1.7
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.

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.

1.8
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.

1.9
Taxation

The tax expense represents the sum of the tax currently payable and deferred tax.

SILVERMIST PROPERTIES (CHELMSFORD) LIMITED
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2022
1
Accounting policies
(Continued)
- 4 -
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.

2
Employees

The average monthly number of persons employed by the company during the year was 0 (2021: 0).

3
Investment property
2022
£
Fair value
At 1 April 2021
9,350,000
Additions
850,000
Disposals
(670,000)
At 31 March 2022
9,530,000

At 31 March 2021 the company's investment properties were valued on a fair value basis by a suitably qualified professional valuer. The Directors have considered the value as at 31 March 2022 and considered there to be no material change. The historic cost of the investment property is £10,808,139.

4
Debtors
2022
2021
Amounts falling due within one year:
£
£
Trade debtors
4,673
40,127
Amounts owed by group undertakings
-
0
300,000
4,673
340,127
SILVERMIST PROPERTIES (CHELMSFORD) LIMITED
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2022
- 5 -
5
Creditors: amounts falling due within one year
2022
2021
£
£
Bank loans and overdrafts
1,099,252
1,404,097
Trade creditors
23
7,439
Corporation tax
59,559
46,518
Other taxation and social security
13,718
48,823
Other creditors
207,082
221,622
1,379,634
1,728,499

The bank overdraft is secured by a fixed and floating charge over the present and future assets of the company.

6
Creditors: amounts falling due after more than one year
2022
2021
£
£
Bank loans and overdrafts
8,000,000
8,000,000

The long-term loans are secured by first priority legal charge over all the commercial freehold property of the company and on all group assets together with a guarantee from the guarantor (Fairacres Group Limited) for the principle sum of £5,000,000 together with interest and costs.

7
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.

The senior statutory auditor was Michael Breame and the auditor was Rickard Luckin Limited.
8
Financial commitments, guarantees and contingent liabilities

The company, together with four other group companies, has entered a composite guarantee in respect of bank overdrafts of those companies. There is a right of set-off incorporated within the inter company guarantee. The net overdraft indebtedness of the group companies to the bank at the year end was £Nil (2021: £17,367).

9
Parent company

The company is a wholly owned subsidiary of Fairacres Group Limited, a company registered in England. Details of the group and consolidated financial statements can be found at Companies House.

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