REGISTERED NUMBER: 02270223 (England and Wales)

PRECO LIMITED

FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2022

Page

Company Information

1

Statement of Financial Position

2

Notes to the Financial Statements

3

to

6

DIRECTORS:

B Madsen - Chairman

Mrs A E Reisenhus

SECRETARY:

Mrs A E Reisenhus

REGISTERED OFFICE:

14 London Road

Newark

Nottinghamshire

NG24 1TW

REGISTERED NUMBER:

02270223 (England and Wales)

SENIOR STATUTORY AUDITOR:

Ian Phillips FCA

AUDITORS:

Duncan & Toplis Limited, Statutory Auditor

14 London Road

Newark

Nottinghamshire

NG24 1TW

BANKERS:

Sydbank

Kolding Apark 8B

DK-6000 Kolding

Denmark

SOLICITORS:

Blake Lapthorn

New Kings Court

Tollgate

Chandler's Ford

Eastleigh

SO53 3LG

FIXED ASSETS

Investment property valuation

4

3,517,783

3,103,111

CURRENT ASSETS

Debtors

5

112,327

24,712

Cash at bank

-

45,816

112,327

70,528

CREDITORS

Amounts falling due within one year

6

3,725,016

3,753,989

NET CURRENT LIABILITIES

(3,612,689

)

(3,683,461

)

TOTAL ASSETS LESS CURRENT LIABILITIES

(94,906

)

(580,350

)

CREDITORS

Amounts falling due after more than one year

7

2,400,000

2,180,000

NET LIABILITIES

(2,494,906

)

(2,760,350

)

CAPITAL AND RESERVES

Called up share capital

9

123,090

123,090

Fair value reserve

10

(322,500

)

(672,500

)

Retained earnings

(2,295,496

)

(2,210,940

)

SHAREHOLDERS' FUNDS

(2,494,906

)

(2,760,350

)

The financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime.

In accordance with Section 444 of the Companies Act 2006, the Income Statement has not been delivered.

The financial statements were approved by the Board of Directors and authorised for issue on 2 October 2023 and were signed on its behalf by:

Mrs A E Reisenhus - Director

1.	STATUTORY INFORMATION

Preco Limited is a private company, limited by shares , registered in England and Wales. The company's registered number and registered office address can be found on the Company Information page.

The presentation currency of the financial statements is the Pound Sterling (£).

2.	ACCOUNTING POLICIES

Basis of preparing the financial statements

These financial statements have been prepared in accordance with Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" including the provisions of Section 1A "Small Entities" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention as modified by the revaluation of certain assets.

Related party exemption

The company has taken advantage of exemption, under the terms of Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland', not to disclose related party transactions with wholly owned subsidiaries within the group.

Turnover

Turnover represents rents and service charges receivable, excluding value added tax. Rental income and service charges are recognised on a receivable basis in the period to which they relate.

Investment property

Investment property is initially measured at cost and subsequently measured at fair value through profit and loss. No depreciation is provided in respect of investment properties.

Taxation

Taxation for the year comprises current and deferred tax. Tax is recognised in the Income Statement, except to the extent that it relates to items recognised in other comprehensive income or directly in equity.

Current or deferred taxation assets and liabilities are not discounted.

Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the statement of financial position date.

Deferred tax

Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the statement of financial position date.

Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference.

Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits.

Foreign currencies

Trading transactions denominated in foreign currencies are translated into Sterling at the exchange rate ruling when the transaction was entered into. Monetary assets and liabilities denominated in foreign currencies are translated into Sterling at the exchange rates ruling at the statement of financial position date. Exchange gains or losses are included in operating profit.

3.	EMPLOYEES AND DIRECTORS

The average number of employees during the year was NIL (2021 - NIL).

4.	INVESTMENT PROPERTY VALUATION

Total

£

FAIR VALUE

At 1 January 2022

3,103,111

Additions

64,672

Revaluations

350,000

At 31 December 2022

3,517,783

NET BOOK VALUE

At 31 December 2022

3,517,783

At 31 December 2021

3,103,111

The investment property was last valued by Lambert Smith Hampton on 8 August 2022. The valuation was based on the rental yields as a percentage of the properites value.

The directors revalued the property at the year-end. The basis for the valuation was to bring the property in line with the directors expectation of market value.

5.

DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2022

2021

£

£

Trade debtors

101,504

18,682

Other debtors

2,159

-

Prepayments

8,664

6,030

112,327

24,712

6.

CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2022

2021

£

£

Bank loans and overdrafts

309,697

520,000

Trade creditors

15,764

16,901

Other taxes and social security

-

12,087

Amounts owed to group companies

3,246,049

3,045,177

Accrued expenses

153,506

159,824

3,725,016

3,753,989

7.

CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR

2022

2021

£

£

Bank loans - 1-2 years

150,000

520,000

Bank loans due between 2-5 yrs

2,250,000

1,560,000

Bank loans more 5 yr by instal

-

100,000

2,400,000

2,180,000

Amounts falling due in more than five years:

Repayable by instalments

Bank loans more 5 yr by instal

-

100,000

8.	SECURED DEBTS

The following secured debts are included within creditors:

2022

2021

£

£

Bank overdraft

159,697

-

Bank loans

2,550,000

2,700,000

2,709,697

2,700,000

The bank loan and overdraft are secured by fixed charges over the company's land and buildings and by guarantees given by Preco Holding ApS, the parent company.

9.	CALLED UP SHARE CAPITAL

Allotted, issued and fully paid:

Number:

Class:

Nominal

2022

2021

value:

£

£

123,090

Ordinary

£1

123,090

123,090

10.

RESERVES

Fair

value

reserve

£

At 1 January 2022

(672,500

)

Gain on fair value adjustment to investment property

350,000

At 31 December 2022

(322,500

)

11.	DISCLOSURE UNDER SECTION 444(5B) OF THE COMPANIES ACT 2006

The Report of the Auditors was qualified on the following basis:

Basis for qualified opinion

The Statement of Financial Position does not present the fair value of the investment property. A professional valuation was obtained during the year which indicates the properties fair value is materially greater than what is presented in the financial statements. As disclosed in note 4 the directors have revalued the property to £3.5m based on their assessment of market value.

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor’s responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our qualified opinion.

Matters required to report by exception

Ian Phillips FCA (Senior Statutory Auditor)

for and on behalf of Duncan & Toplis Limited, Statutory Auditor

12.	ULTIMATE PARENT COMPANY

The directors regard Preco Holding ApS, a company incorporated in Denmark, as the ultimate parent company. The accounts of the parent company are available from Hjulmagervej 8, DK 7100 Vejle, Denmark.

13.	GOING CONCERN

At 31 December 2022 the company had net liabilities of £2,494,906 (2021: £2,760,350). The company's bank borrowings were within the agreed facility with its bankers at the year end and cash flows are positive at present and expected to be so for at least the next twelve months. The holding company, Preco Holding ApS, has pledged its support for the company.