Delbanco Meyer & Company Limited
Unaudited Financial Statements
For the year ended 31 March 2023
Pages for filing with registrar
Company Registration No. 00317934 (England and Wales)
DELBANCO MEYER & COMPANY LIMITED
Delbanco Meyer & Company Limited
CONTENTS
Page
Accountants' report
1
Balance sheet
2 - 3
Statement of changes in equity
4
Notes to the financial statements
5 - 13
DELBANCO MEYER & COMPANY LIMITED
Delbanco Meyer & Company Limited
Accountants Report to the Board of Directors on the Unaudited Financial Statements of Delbanco Meyer & Company Limited
- 1 -
In order to assist you to fulfil your duties under the Companies Act 2006, we have prepared for your approval the financial statements of Delbanco Meyer & Company Limited for the year ended 31 March 2023 set out on the following pages from the company’s accounting records and from information and explanations you have given us.
This report is made solely to the Board of Directors of Delbanco Meyer & Company Limited, as a body, in accordance with the terms of our engagement letter dated 17 May 2023. Our work has been undertaken solely to prepare for your approval the financial statements of Delbanco Meyer & Company Limited. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than Delbanco Meyer & Company Limited and Board of Directors as a body, for our work or for this report.
It is your duty to ensure that Delbanco Meyer & Company Limited has kept adequate accounting records and to prepare statutory financial statements that give a true and fair view of the assets, liabilities, financial position and profit of Delbanco Meyer & Company Limited. You consider that Delbanco Meyer & Company Limited is exempt from the statutory audit requirement for the year.
We have not been instructed to carry out an audit or a review of the financial statements of Delbanco Meyer & Company Limited. For this reason, we have not verified the accuracy or completeness of the accounting records or information and explanations you have given to us and we do not, therefore, express any opinion on the statutory financial statements.
Churchgate Accountants Limited
25 August 2023
Accountants
18 Langton Place
Bury St Edmunds
Suffolk
IP33 1NE
DELBANCO MEYER & COMPANY LIMITED
Delbanco Meyer & Company Limited
BALANCE SHEET
AS AT
31 MARCH 2023
31 March 2023
- 2 -
2023
2022
Notes
£
£
£
£
Fixed assets
Investment property
4
340,000
Investments
5
197
197
197
340,197
Current assets
Stocks
3,281,413
3,901,423
Debtors
6
18,646,057
19,262,646
Cash at bank and in hand
389,353
211,988
22,316,823
23,376,057
Creditors: amounts falling due within one year
7
(1,942,002)
(4,030,650)
Net current assets
20,374,821
19,345,407
Total assets less current liabilities
20,375,018
19,685,604
Provisions for liabilities
8
(26,585)
(39,060)
Net assets excluding pension liability
20,348,433
19,646,544
Defined benefit pension liability
11
Net assets
20,348,433
19,646,544
Capital and reserves
Called up share capital
12
392,964
392,964
Share premium account
886,769
886,769
Capital redemption reserve
773,121
773,121
Other reserves
(453,492)
(453,492)
Profit and loss reserves
18,749,071
18,047,182
Total equity
20,348,433
19,646,544
The directors of the company have elected not to include a copy of the profit and loss account within the financial statements.true
For the financial year ended 31 March 2023 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.
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 members have not required the company to obtain an audit of its financial statements for the year in question in accordance with section 476.
These financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime.
DELBANCO MEYER & COMPANY LIMITED
Delbanco Meyer & Company Limited
BALANCE SHEET (CONTINUED)
AS AT
31 MARCH 2023
31 March 2023
- 3 -
The financial statements were approved by the board of directors and authorised for issue on 24 August 2023 and are signed on its behalf by:
Mr J Rose
Director
Company Registration No. 00317934
DELBANCO MEYER & COMPANY LIMITED
Delbanco Meyer & Company Limited
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 MARCH 2023
- 4 -
Share capital
Share premium account
Capital redemption reserve
Other reserve
Employee share option reserve
Profit and loss reserves
Total
Notes
£
£
£
£
£
£
£
Balance at 1 April 2021
392,964
886,769
773,121
6,242
(459,734)
16,954,224
18,553,586
Year ended 31 March 2022:
Profit and total comprehensive income for the year
-
-
-
-
-
1,344,734
1,344,734
Dividends
-
-
-
-
-
(236,785)
(236,785)
Re-purchase of ESOP shares
-
-
-
-
-
(14,991)
(14,991)
Balance at 31 March 2022
392,964
886,769
773,121
6,242
(459,734)
18,047,182
19,646,544
Year ended 31 March 2023:
Profit for the year
-
-
-
-
-
929,590
929,590
Other comprehensive income:
Actuarial gains on defined benefit plans
-
-
-
-
-
8,000
8,000
Total comprehensive income for the year
-
-
-
-
-
937,590
937,590
Dividends
-
-
-
-
-
(235,701)
(235,701)
Balance at 31 March 2023
392,964
886,769
773,121
6,242
(459,734)
18,749,071
20,348,433
DELBANCO MEYER & COMPANY LIMITED
Delbanco Meyer & Company Limited
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023
- 5 -
1
Accounting policies
Company information
Delbanco Meyer & Company Limited is a private company limited by shares incorporated in England and Wales. The registered office is Churchgate Accountants Limited, 18 Langton Place, Bury St Edmunds, Suffolk, IP33 1NE.
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 the revaluation of freehold properties and to include investment properties and certain financial instruments at fair value]. The principal accounting policies adopted are set out below.
The company has taken advantage of the exemption under section 399 of the Companies Act 2006 not to prepare consolidated accounts, on the basis that the group of which this is the parent qualifies as a small group. The financial statements present information about the company as an individual entity and not about its group.
1.2
Turnover
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 is recognised on the date of completion or when unconditional contracts have been exchanged.
Rental income and loan interest income is recognised in the profit and loss on a receivable basis.
1.3
Investment property
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
Fixed asset investments
Interests in subsidiaries, associates and jointly controlled entities are initially measured at cost and subsequently measured at cost less any accumulated impairment losses. The investments are assessed for impairment at each reporting date and any impairment losses or reversals of impairment losses are recognised immediately in profit or loss.
A subsidiary is an entity controlled by the company. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.
Associates and Joint Ventures are held at cost less impairment.
DELBANCO MEYER & COMPANY LIMITED
Delbanco Meyer & Company Limited
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
1
Accounting policies
(Continued)
- 6 -
1.5
Stocks
Stocks includes work in progress relating to property development, which is stated at the lower of cost and net realisable value. The cost of work in progress comprises land, buildings, design costs, raw materials, direct labour, borrowing costs, and other direct costs incurred in bringing the stock to its present condition. Net realisable value is the estimated selling price in the ordinary course of business, less applicable selling expenses.
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
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.
DELBANCO MEYER & COMPANY LIMITED
Delbanco Meyer & Company Limited
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
1
Accounting policies
(Continued)
- 7 -
1.9
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. 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.
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, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset when the company has a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.
1.10
Provisions
Provisions are recognised when the company has a legal or constructive present obligation as a result of a past event, it is probable that the company will be required to settle that obligation and a reliable estimate can be made of the amount of the obligation.
The amount recognised as a provision is the best estimate of the consideration required to settle the present obligation at the reporting end date, taking into account the risks and uncertainties surrounding the obligation. Where the effect of the time value of money is material, the amount expected to be required to settle the obligation is recognised at present value. When a provision is measured at present value, the unwinding of the discount is recognised as a finance cost in profit or loss in the period in which it arises.
1.11
Employee benefits
The company operates an employee share ownership plan (ESOP) trust and has de facto control of the shares held by the trust and bears their benefits and risks. The company records assets and liabilities of the trust as its own. Consideration paid by the ESOP scheme for shares of the company is deducted from equity. Finance costs and administrative expenses incurred by the company in relation to the ESOP are recognised on an accruals basis.
DELBANCO MEYER & COMPANY LIMITED
Delbanco Meyer & Company Limited
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 8 -
2
Judgements and key sources of estimation uncertainty
In the application of the company’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.
Critical judgements
The following judgements (apart from those involving estimates) have had the most significant effect on amounts recognised in the financial statements.
Valuation of stocks
Property developments are relatively long term projects that often span more than one financial year both for the construction of the development and the subsequent sale of completed properties. This means that estimates and judgements have to be made by the directors regarding the final cost of projects and the anticipated selling price for completed properties.
Defined benefit pension commitments
The company's financial statements include the costs and obligations associated with the provisions of pension benefits to former employees. It is the directors' responsibility to set the assumptions used in determining the key elements of the costs of meeting such future obligations. These assumptions are set after consultation with the group's actuaries. Whilst the directors believe that the assumptions used are appropriate, a change in the assumptions used could affect the company's profit and financial situation.
Provisions
The directors make judgements based on knowledge and past events regarding the level of any provision required to cover the costs for remedial works in the properties previously sold. The provision in the financial statements is made on prudent basis and represents the directors' best estimate, as at the date of signing the financial statements, of future costs to remediate the defects.
3
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2023
2022
Number
Number
Total
2
2
4
Investment property
2023
£
Fair value
At 1 April 2022
340,000
Disposals
(340,000)
At 31 March 2023
DELBANCO MEYER & COMPANY LIMITED
Delbanco Meyer & Company Limited
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
4
Investment property
(Continued)
- 9 -
Investment property comprises freehold land and property. The remaining investment property was sold in the year ended 31 March 2023.
5
Fixed asset investments
2023
2022
£
£
Shares in group undertakings and participating interests
197
197
6
Debtors
2023
2022
Amounts falling due within one year:
£
£
Amounts owed by group undertakings
545,836
458,036
Other debtors
7,558,090
9,033,099
Prepayments and accrued income
7,796
59,012
8,111,722
9,550,147
Deferred tax asset (note 10)
86,355
78,755
8,198,077
9,628,902
2023
2022
Amounts falling due after more than one year:
£
£
Amounts owed by group undertakings
10,447,980
9,633,744
Total debtors
18,646,057
19,262,646
7
Creditors: amounts falling due within one year
2023
2022
£
£
Other borrowings
1,749,986
3,500,000
Trade creditors
78,483
Corporation tax
97,062
124,284
Other taxation and social security
31,299
18,883
Other creditors
233,568
Accruals and deferred income
63,655
75,432
1,942,002
4,030,650
Other loans of £1,749,986 (2022: £3,500,000) relate to a facility made available by a trust in which one of the directors of the company is a trustee. This facility bore interest at rates fluctuating between 4.8% and 7.4% per annum, and is secured by a debenture which has a charge over the assets of the company.
DELBANCO MEYER & COMPANY LIMITED
Delbanco Meyer & Company Limited
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 10 -
8
Provisions for liabilities
2023
2022
£
£
Building Retentions
26,585
39,060
Movements on provisions:
Building Retentions
£
At 1 April 2022
39,060
Additional provisions in the year
13,444
Utilisation of provision
(25,919)
At 31 March 2023
26,585
9
ESOP shares
The company operates an approved Employee Share Ownership Plan (ESOP) for employees to participate in share ownership in the company. The shares are held in an Employee Share Ownership Trust which was established to encourage and facilitate the holding of shares by or for the benefit of employees. Free shares are awarded to the participating employees based on salary and length of service. The vesting period for the shares held in the trust is three years.
No share options or shares were issued in the current or preceding financial year. There were no outstanding share options at the end of the year (2022: nil)
10
Deferred taxation
The following are the major deferred tax liabilities and assets recognised by the company and movements thereon:
Assets
Assets
2023
2022
Balances:
£
£
Investments
-
(7,600)
Other
86,355
86,355
86,355
78,755
DELBANCO MEYER & COMPANY LIMITED
Delbanco Meyer & Company Limited
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
10
Deferred taxation
(Continued)
- 11 -
2023
Movements in the year:
£
Asset at 1 April 2022
(78,755)
Credit to profit or loss
(7,600)
Asset at 31 March 2023
(86,355)
11
Retirement benefit schemes
Defined benefit schemes
The company operates a defined benefit scheme for qualifying employees. The company's pension scheme is a funded defined benefit scheme and its assets are held in a trust fund separate from the company. The scheme was closed to new entrants on 1 November 2006.
The most recent actuarial valuations of plan assets and the present value of the defined benefit obligation were carried out at 31 March 2023 by a qualified actuary at First Actuarial LLP. The present value of the defined benefit obligation, the related current service cost and past service cost were measured using the projected unit credit method.
2023
2022
Key assumptions
%
%
Discount rate
4.8
2.7
Expected rate of increase of pensions in payment
3.4
3.8
Mortality assumptions
2023
2022
Years
Years
Retiring today
- Males
22.0
21.8
- Females
24.4
24.1
Retiring in 20 years
- Males
23.3
22.7
- Females
25.8
25.3
2023
2022
£
£
Actual return on scheme assets
(606,000)
767,000
Less: calculated interest element
336,000
265,000
Return on scheme assets excluding interest income
(270,000)
1,032,000
Actuarial changes related to obligations
(2,292,000)
(1,122,000)
Other gains and losses
8,000
5,000
Total costs/(income)
(2,554,000)
(85,000)
DELBANCO MEYER & COMPANY LIMITED
Delbanco Meyer & Company Limited
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
11
Retirement benefit schemes
(Continued)
- 12 -
2023
2022
£
£
Present value of defined benefit obligations
10,103,000
12,790,000
Fair value of plan assets
(14,095,000)
(14,228,000)
Surplus in scheme
(3,992,000)
(1,438,000)
Restriction on scheme assets
3,992,000
1,438,000
Total liability recognised
-
-
2023
Movements in the present value of defined benefit obligations
£
Liabilities at 1 April 2022
12,790,000
Benefits paid
(731,000)
Actuarial gains and losses
(2,292,000)
Interest cost
336,000
At 31 March 2023
10,103,000
2023
£
Wholly unfunded obligations
-
Wholly or partly funded obligations
10,103,000
10,103,000
2023
Movements in the fair value of plan assets
£
Fair value of assets at 1 April 2022
14,228,000
Interest income
336,000
Return on plan assets (excluding amounts included in net interest)
270,000
Benefits paid
(731,000)
Other
(8,000)
At 31 March 2023
14,095,000
DELBANCO MEYER & COMPANY LIMITED
Delbanco Meyer & Company Limited
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
11
Retirement benefit schemes
(Continued)
- 13 -
2023
2022
Fair value of plan assets at the reporting period end
£
£
Equity instruments
5,253,000
5,287,000
Property
1,017,000
1,041,000
Cash
259,000
428,000
Bonds
3,244,000
3,503,000
Gilts
1,884,000
1,606,000
Annuities
2,438,000
2,363,000
14,095,000
14,228,000
12
Called up share capital
2023
2022
2023
2022
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary Shares of £1 each
351,793
351,793
351,793
351,793
A Ordinary Shares of £1 each
41,171
41,171
41,171
41,171
392,964
392,964
392,964
392,964
13
Related party transactions
Included in debtors due within one year is an amount of £545,836 (2022: £458,036) owed by a subsidiary company. The total loan advanced to this company over the year is £1,493,937 (2022: £1,314,818), against which a total provision of £948,101 (2022: £856,782) has been raised of which £91,319 was recognised in the year.
Included within creditors is an amount of £1,749,986 (2022: £3,500,000) which relates to a facility made available by a trust in which one of the directors of the company is a trustee. During the financial year, interest of £109,046 (2022: £79,877) was paid. A balance of £54,432 (2022: £50,432) due to the trust is included within accruals.
During the financial year the company received a dividend from its associate of £nil (2022: £nil).
Included within other creditors is an amount of £nil (2022: £100,000) due to a close family member of a director.
Included in interest received is interest from a subsidiary company of £841,194 (2022: £745,175).
2023-03-312022-04-01false25 August 2023CCH SoftwareCCH Accounts Production 2023.200No description of principal activityMr J RoseMr J MillsMr J S Rosenblatt003179342022-04-012023-03-31003179342023-03-31003179342022-03-3100317934core:CurrentFinancialInstrumentscore:WithinOneYear2023-03-3100317934core:CurrentFinancialInstrumentscore:WithinOneYear2022-03-3100317934core:CurrentFinancialInstruments2023-03-3100317934core:CurrentFinancialInstruments2022-03-3100317934core:ShareCapital2023-03-3100317934core:ShareCapital2022-03-3100317934core:SharePremium2023-03-3100317934core:SharePremium2022-03-3100317934core:CapitalRedemptionReserve2023-03-3100317934core:CapitalRedemptionReserve2022-03-3100317934core:OtherMiscellaneousReserve2023-03-3100317934core:OtherMiscellaneousReserve2022-03-3100317934core:RetainedEarningsAccumulatedLosses2023-03-3100317934core:RetainedEarningsAccumulatedLosses2022-03-3100317934core:ShareCapital2021-03-3100317934core:SharePremium2021-03-3100317934core:CapitalRedemptionReserve2021-03-3100317934core:RetainedEarningsAccumulatedLosses2021-03-3100317934core:ShareCapitalOrdinaryShares2023-03-3100317934core:ShareCapitalOrdinaryShares2022-03-3100317934bus:Director12022-04-012023-03-3100317934core:RetainedEarningsAccumulatedLosses2021-04-012022-03-31003179342021-04-012022-03-3100317934core:RetainedEarningsAccumulatedLosses2022-04-012023-03-31003179342022-03-3100317934core:AfterOneYear2023-03-3100317934core:AfterOneYear2022-03-3100317934bus:PrivateLimitedCompanyLtd2022-04-012023-03-3100317934bus:SmallCompaniesRegimeForAccounts2022-04-012023-03-3100317934bus:FRS1022022-04-012023-03-3100317934bus:AuditExemptWithAccountantsReport2022-04-012023-03-3100317934bus:Director22022-04-012023-03-3100317934bus:Director32022-04-012023-03-3100317934bus:FullAccounts2022-04-012023-03-31xbrli:purexbrli:sharesiso4217:GBP