Company registration number 09648713 (England and Wales)
PREES DEVELOPMENTS LIMITED
FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2022
PAGES FOR FILING WITH REGISTRAR
PREES DEVELOPMENTS LIMITED
CONTENTS
Page
Balance sheet
1
Notes to the financial statements
2 - 7
PREES DEVELOPMENTS LIMITED
BALANCE SHEET
AS AT 31 AUGUST 2022
31 August 2022
- 1 -
2022
2021
as restated
Notes
£
£
£
£
Fixed assets
Investment property
3
3,960,000
4,230,000
Current assets
Debtors
4
265,923
371,752
Cash at bank and in hand
375,287
293,143
641,210
664,895
Creditors: amounts falling due within one year
5
(2,449,103)
(2,392,374)
Net current liabilities
(1,807,893)
(1,727,479)
Total assets less current liabilities
2,152,107
2,502,521
Provisions for liabilities
(424,746)
(512,795)
Net assets
1,727,361
1,989,726
Capital and reserves
Called up share capital
1
1
Non-distributable profits reserve
6
1,442,960
1,777,432
Distributable profit and loss reserves
7
284,400
212,293
Total equity
1,727,361
1,989,726
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 19 October 2023 and are signed on its behalf by:
Ms J Price
Director
Company Registration No. 09648713
PREES DEVELOPMENTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2022
- 2 -
1
Accounting policies
Company information
Prees Developments Limited is a private company limited by shares incorporated in England and Wales. The registered office is The Lodge, Warstone Road, Essington, Wolverhampton, United Kingdom, WV11 2AR.
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 at fair value. The principal accounting policies adopted are set out below.
1.2
Turnover
Turnover is recognised at the fair value of the consideration received or receivable for services provided in the normal course of business, and is shown net of VAT and other sales related taxes. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.
Turnover consists entirely of rents receivable, which are recognised when the company's right to receive payment is established.
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
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.
1.5
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.
PREES DEVELOPMENTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2022
1
Accounting policies
(Continued)
- 3 -
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.
1.6
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.
1.7
Derivatives
Derivatives are initially recognised at fair value at the date a derivative contract is entered into and are subsequently remeasured to fair value at each reporting end date. The resulting gain or loss is recognised in profit or loss immediately unless the derivative is designated and effective as a hedging instrument, in which event the timing of the recognition in profit or loss depends on the nature of the hedge relationship.
A derivative with a positive fair value is recognised as a financial asset, whereas a derivative with a negative fair value is recognised as a financial liability.
1.8
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.
PREES DEVELOPMENTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2022
1
Accounting policies
(Continued)
- 4 -
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.
1.9
Foreign exchange
Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation in the period are included in profit or loss.
2
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2022
2021
Number
Number
Total
2
2
3
Investment property
2022
£
Fair value
At 1 September 2021
4,229,999
Additions
175,963
Revaluations
(445,962)
At 31 August 2022
3,960,000
Investment property comprises of land and buildings on an established commercial estate. The fair value of the investment property has been arrived at on the basis of a valuation carried out on 24 August 2023 and restrospectively values at 31 August 2022 by Avison Young (UK) Limited, Chartered Surveyors, who are not connected with the company. The valuation was made on an open market value basis by reference to market evidence of transaction prices for similar properties.
PREES DEVELOPMENTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2022
- 5 -
4
Debtors
2022
2021
Amounts falling due within one year:
£
£
Trade debtors
47,208
69,093
Corporation tax recoverable
3,223
Amounts owed by group undertakings
215,492
301,664
Other debtors
995
265,923
371,752
5
Creditors: amounts falling due within one year
2022
2021
£
£
as restated
Trade creditors
16,609
3,741
Amounts owed to group undertakings
2,332,643
2,316,539
Taxation and social security
12,353
18,429
Other creditors
87,498
53,665
2,449,103
2,392,374
6
Non-distributable profits reserve
2022
2021
as restated
£
£
At the beginning of the year
1,777,432
1,577,906
Non distributable profits in the year
(334,472)
199,526
At the end of the year
1,442,960
1,777,432
7
Profit and loss reserves
2022
2021
as restated
£
£
At the beginning of the year
179,411
115,505
Prior year adjustment
32,882
As restated
212,293
115,505
(Loss)/profit for the year
(262,365)
296,314
Current year profits transferred to non-distributable reserve
334,472
(199,526)
At the end of the year
284,400
212,293
PREES DEVELOPMENTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2022
- 6 -
8
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.
Senior Statutory Auditor:
Lee Meredith ACA
Statutory Auditor:
Azets Audit Services
9
Related party transactions
Transactions with related parties
During the year the company entered into the following transactions with related parties:
Sales
Sales
Purchases
Purchases
2022
2021
2022
2021
£
£
£
£
Entities with control, joint control or significant influence over the company
76,968
35,218
Entities over which the entity has control, joint control or significant influence
189,395
(98,342)
-
-
Management charges paid
2022
2021
£
£
Entities with control, joint control or significant influence over the company
25,000
25,000
The following amounts were outstanding at the reporting end date:
2022
2021
Amounts due to related parties
£
£
Entities with control, joint control or significant influence over the company
2,332,643
2,316,539
Transactions between related parties were made at arms length.
The amounts are unsecured and will be settled in cash.
The following amounts were outstanding at the reporting end date:
2022
2021
Amounts due from related parties
£
£
Fellow subsidiaries
215,492
301,664
PREES DEVELOPMENTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2022
9
Related party transactions
(Continued)
- 7 -
Transactions between related parties were made at arms length.
The amounts are unsecured and will be settled in cash.
10
Parent company
The parent company of Prees Developments Limited is Transforma Solutions Limited.
Transforma Solutions Limited is a 50% owned subsidiary of J.P.E (Holdings) Limited.
The registered office of both these companies is The Lodge, Warstone Road, Essington, Wolverhampton, United Kingdom, WV11 2AR
11
Prior period adjustment
During the year it came to the directors attention that the distributable reserves of the company has been understated by £32,882 due to a misallocation from a revaluation in 2021. Whilst this adjustment has adjusted the reserves it has had no effect on profit or loss and overall equity.
In addition, it came to the directors' attention that the loan due to the parent company, should be classified as due within one year, as it is repayable on demand.