Caseware UK (AP4) 2022.0.179 2022.0.179 2023-04-302023-04-304false2022-05-01falsefalseprovide social housing4 10069333 2022-05-01 2023-04-30 10069333 2021-05-01 2022-04-30 10069333 2023-04-30 10069333 2022-04-30 10069333 2021-05-01 10069333 1 2022-05-01 2023-04-30 10069333 1 2021-05-01 2022-04-30 10069333 d:CompanySecretary1 2022-05-01 2023-04-30 10069333 d:Director1 2022-05-01 2023-04-30 10069333 d:Director2 2022-05-01 2023-04-30 10069333 d:Director3 2022-05-01 2023-04-30 10069333 d:RegisteredOffice 2022-05-01 2023-04-30 10069333 e:Buildings 2022-05-01 2023-04-30 10069333 e:Buildings 2023-04-30 10069333 e:Buildings 2022-04-30 10069333 e:CurrentFinancialInstruments 2023-04-30 10069333 e:CurrentFinancialInstruments 2022-04-30 10069333 e:CurrentFinancialInstruments e:WithinOneYear 2023-04-30 10069333 e:CurrentFinancialInstruments e:WithinOneYear 2022-04-30 10069333 e:UKTax 2022-05-01 2023-04-30 10069333 e:UKTax 2021-05-01 2022-04-30 10069333 e:ShareCapital 2022-05-01 2023-04-30 10069333 e:ShareCapital 2023-04-30 10069333 e:ShareCapital 2021-05-01 2022-04-30 10069333 e:ShareCapital 2022-04-30 10069333 e:ShareCapital 2021-05-01 10069333 e:RetainedEarningsAccumulatedLosses 2022-05-01 2023-04-30 10069333 e:RetainedEarningsAccumulatedLosses 2023-04-30 10069333 e:RetainedEarningsAccumulatedLosses 2021-05-01 2022-04-30 10069333 e:RetainedEarningsAccumulatedLosses 2022-04-30 10069333 e:RetainedEarningsAccumulatedLosses 2021-05-01 10069333 d:FRS102 2022-05-01 2023-04-30 10069333 d:Audited 2022-05-01 2023-04-30 10069333 d:FullAccounts 2022-05-01 2023-04-30 10069333 d:PrivateLimitedCompanyLtd 2022-05-01 2023-04-30 iso4217:GBP xbrli:pure

Registered number: 10069333










MTD HOUSING LIMITED










DIRECTORS' REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30 APRIL 2023

 
MTD HOUSING LIMITED
 

COMPANY INFORMATION


MEMBERS OF THE BOARD
Samantha Bettinson 
Neil Ayre 
Peter Hibbert 




COMPANY SECRETARY
William Bennett



REGISTERED NUMBER
10069333



REGISTERED OFFICE
Ground Floor
30 City Road

London

EC1Y 2AB




INDEPENDENT AUDITORS
Gravita II LLP
Chartered Accountants & Statutory Auditor

Ground Floor

30 City Road

London EC1Y 2AB




REGULATOR OF SOCIAL HOUSING REGISTRATION NUMBER
5063





 
MTD HOUSING LIMITED
 

CONTENTS



Page
Directors' Report
1 - 2
Independent Auditors' Report
3 - 6
Statement of Comprehensive Income
7
Statement of Financial Position
8
Statement of Changes in Equity
9
Statement of Cash Flows
10
Notes to the Financial Statements
11 - 17

 
MTD HOUSING LIMITED
 

 
DIRECTORS' REPORT
FOR THE YEAR ENDED 30 APRIL 2023


The directors present their report and the financial statements for the year ended 30 April 2023.

PRINCIPAL ACTIVITY

The principal activity of the Company is to provide and manage housing, including social housing and providing assistance to help house people and associated people and associated facilities,amenities and services and any other business that it chooses to carry out from time to time. The Company became a registered provider of social housing on 18 December 2018.

ADDITIONAL MATTERS

As a Registered Provider, who holds housing units at the year end, the company is achieving value for money by reviewing expenditure to date, is compliant with the Governance & Financial Viability Standard as applicable given the level of activity undertaken to date, and has also adopted the Institute of Directors Corporate Governance Guidance and Principles for Unlisted Companies in the UK.

INTERNAL CONTROLS ASSURANCE

The directors acknowledge their overall responsibility for establishing and maintaining the whole system of internal control and for reviewing their effectiveness.
The system of internal control is designed to manage, rather than eliminate, the risk of failure to achieve business objectives, and to provide reasonable, and not absolute, assurance against material misstatement or loss. In meeting its responsibilities, the directors have approved an effective framework to identify and manage the significant risks to the company's operations. This risk-based approach to establishing and maintaining internal controls is embedded within day to day management and governance processes. The approach includes the regular evaluation of the nature and extent of risks to which the company is exposed and is consistent with best practice. 

DIRECTORS' RESPONSIBILITIES STATEMENT

The directors are responsible for preparing the report and financial statements in accordance with applicable law and regulations.
Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable laws), including FRS 102, the Financial Reporting Standard applicable in the UK and Republic of Ireland. Under company law, the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs and profit or loss of the Company for that period.
In preparing these financial statements, the directors are required to:
• Select suitable accounting policies and apply them consistently.
• Make judgements and estimates that are reasonable and prudent.   
• State whether applicable UK Accounting Standards and the Statement of Recommended Practice (SORP) Accounting by Registered Housing Providers 2018, have been followed, subject to any material departures disclosed and explained in the financial statements.
• Prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Company will continue in business.
The directors are responsible for keeping proper accounting records which disclose with reasonable accuracy at any time the financial position of the Company and enable it to ensure that the financial statements comply with the Housing and Regeneration Act 2008 and the Accounting Direction for Private Registered Providers of Social Housing 2022. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Page 1

 
MTD HOUSING LIMITED
 

 
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2023


DIRECTORS

The directors who served during the year were:

Samantha Bettinson 
Neil Ayre 
Peter Hibbert 

DISCLOSURE OF INFORMATION TO AUDITORS

Each of the persons who are directors at the time when this Directors' Report is approved has confirmed that:
 
so far as the director is aware, there is no relevant audit information of which the Company's auditors are unaware, and

the director has taken all the steps that ought to have been taken as a director in order to be aware of any relevant audit information and to establish that the Company's auditors are aware of that information.

SMALL COMPANIES NOTE

In preparing this report, the directors have taken advantage of the small companies exemptions provided by section 415A of the Companies Act 2006.

This report was approved by the board on 26 October 2023 and signed on its behalf.
 




William Bennett
Secretary

Page 2

 
MTD HOUSING LIMITED
 

 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF MTD HOUSING LIMITED
 


OPINION

We have audited the financial statements of MTD Housing Limited (the 'Company') for the year ended 30 April 2023, which comprise the Statement of comprehensive income, the Statement of financial position, the Statement of changes in equity, the Statement of cash flows and the related notes, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

give a true and fair view of the state of the Company's affairs as at 30 April 2023 and of its loss for the  year then ended;
have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
have been prepared in accordance with the requirements of the Companies Act 2006.

BASIS FOR OPINION

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 Auditors' 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 United Kingdom, including the Financial Reporting Council'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 opinion.

CONCLUSIONS RELATING TO GOING CONCERN

In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the Company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue. However, because not all future events or conditions can be predicted this statement is not a guarantee as to the company's ability to continue as a going concern.

Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.

OTHER INFORMATION

The other information comprises the information included in the Annual Report other than the financial statements and  our Auditors' report thereon.  The directors are responsible for the other information contained within the Annual Report.  Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated.  If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves.  If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.
Page 3

 
MTD HOUSING LIMITED
 

 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF MTD HOUSING LIMITED (CONTINUED)


OPINIONS ON OTHER MATTERS PRESCRIBED BY THE COMPANIES ACT 2006

In our opinion, based on the work undertaken in the course of the audit:

the information given in the  Directors' report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
the  Directors' report has been prepared in accordance with applicable legal requirements.

MATTERS ON WHICH WE ARE REQUIRED TO REPORT BY EXCEPTION

In the light of the knowledge and understanding of the Company and its environment obtained in the course of the audit, we have not identified material misstatements in the  Directors' report.

We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:

adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
the financial statements are not in agreement with the accounting records and returns; or
certain disclosures of directors' remuneration specified by law are not made; or
we have not received all the information and explanations we require for our audit; or
the directors were not entitled to prepare the financial statements in accordance with the small companies regime and take advantage of the small companies' exemptions in preparing the Directors' report and from the requirement to prepare a Strategic report.

RESPONSIBILITIES OF DIRECTORS
 
As explained more fully in the Directors' responsibilities statement set out on page 1, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the directors are responsible for assessing the Company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the Company or to cease operations, or have no realistic alternative but to do so.

AUDITORS' RESPONSIBILITIES FOR THE AUDIT OF THE FINANCIAL STATEMENTS

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an Auditors' report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below. However, the primary responsibility for the prevention and detection of fraud rests with both those charged with governance of the entity and management.
Page 4

 
MTD HOUSING LIMITED
 

 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF MTD HOUSING LIMITED (CONTINUED)


The extent to which the audit was considered capable of detecting irregularities including fraud

Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was as follows:

the engagement partner ensured that the engagement team collectively had the appropriate competence, capabilities and skills to identify or recognise non-compliance with applicable laws and regulations;
we identified the laws and regulations applicable to the company through discussions with directors and other management, and from our commercial knowledge and experience of the property sector;
we focused on specific laws and regulations which we considered may have a direct material effect on the financial statements or the operations of the company including, but not limited to, the Companies Act 2006,  and taxation legislation;
we assessed the extent of compliance with the laws and regulations identified above through making enquiries of management and inspecting correspondence; and
identified laws and regulations were communicated within the audit team regularly and the team remained alert to instances of non-compliance throughout the audit.

We assessed the susceptibility of the company’s financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by:

understanding the business model as part of the control and business environment;
considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations and;
making enquiries of management as to where they considered there was susceptibility to fraud, their knowledge of actual, suspected and alleged fraud.

To address the risk of fraud through management bias and override of controls, we:

performed analytical procedures to identify any unusual or unexpected relationships;
tested journal entries to identify unusual transactions;
assessed whether judgements and assumptions made in determining the accounting estimates were indicative of potential bias; and
investigated the rationale behind significant or unusual transactions.

In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to:

agreeing financial statement disclosures to underlying supporting documentation;
enquiring of management as to actual and potential litigation and claims;
reviewing correspondence and enquiring with the company of actual and potential non-compliance with laws and regulations; and
reading the minutes of meetings of those charged with governance.

There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the directors and other management and the inspection of regulatory and legal correspondence, if any.

Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment by for example forgery, or intentional misrepresentations or through collusion. Our audit procedures are designed to detect material misstatement. We are not responsible for preventing non-compliance or fraud and cannot be expected to detect non-compliance with all laws and regulations.
Page 5

 
MTD HOUSING LIMITED
 

 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF MTD HOUSING LIMITED (CONTINUED)


A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our Auditors' report.

USE OF OUR REPORT

This report is made solely to the Company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the Company's members those matters we are required to state to them in an Auditors' report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the Company and the Company's members, as a body, for our audit work, for this report, or for the opinions we have formed.




Ian Hughes ACA (Senior statutory auditor)
for and on behalf of
Gravita II LLP
Chartered Accountants
Statutory Auditor
Ground Floor
30 City Road
London EC1Y 2AB
27 October 2023

Page 6

 
MTD HOUSING LIMITED
 

STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 30 APRIL 2023

2023
2022
Note
£
£

  

Turnover
     3 
8,656
8,493

Cost of sales
     3 
(489)
(1,277)

GROSS PROFIT
     3   
8,167
7,216

Administrative expenses
  
(186,077)
(110,860)

OPERATING LOSS
  
(177,910)
(103,644)

Interest payable and similar expenses
  
(31,961)
-

LOSS BEFORE TAX
  
(209,871)
(103,644)

Tax on loss
 6 
-
-

LOSS FOR THE YEAR
  
(209,871)
(103,644)

  

TOTAL COMPREHENSIVE INCOME FOR THE YEAR
  
(209,871)
(103,644)

The notes on pages 11 to 17 form part of these financial statements.

Page 7

 
MTD HOUSING LIMITED
REGISTERED NUMBER: 10069333

STATEMENT OF FINANCIAL POSITION
AS AT 30 APRIL 2023

2023
2022
Note
£
£

FIXED ASSETS
  

Tangible assets
 7 
566,314
-

  
566,314
-

CURRENT ASSETS
  

Stocks
 8 
150,000
150,000

Debtors: amounts falling due within one year
 9 
71,888
1,982

Cash at bank and in hand
  
-
3,309

  
221,888
155,291

Creditors: amounts falling due within one year
 10 
(1,130,382)
(287,600)

NET CURRENT LIABILITIES
  
 
 
(908,494)
 
 
(132,309)

TOTAL ASSETS LESS CURRENT LIABILITIES
  
(342,180)
(132,309)

  

NET LIABILITIES
  
(342,180)
(132,309)


CAPITAL AND RESERVES
  

Called up share capital 
  
200
200

Profit and loss account
 11 
(342,380)
(132,509)

EQUITY DEFICIT
  
(342,180)
(132,309)


The financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies regime and in accordance with the provisions of FRS 102 Section 1A - small entities.

The financial statements were approved and authorised for issue by the board and were signed on its behalf on 26 October 2023.




Samantha Bettinson
Director

The notes on pages 11 to 17 form part of these financial statements.

Page 8

 
MTD HOUSING LIMITED
 

STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 APRIL 2023


Called up share capital
Profit and loss account
Total equity

£
£
£

At 1 May 2022
200
(132,509)
(132,309)


COMPREHENSIVE INCOME FOR THE YEAR

Loss for the year
-
(209,871)
(209,871)
TOTAL COMPREHENSIVE INCOME FOR THE YEAR
-
(209,871)
(209,871)


AT 30 APRIL 2023
200
(342,380)
(342,180)



STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 APRIL 2022


Called up share capital
Profit and loss account
Total equity

£
£
£

At 1 May 2021
200
(28,865)
(28,665)


COMPREHENSIVE INCOME FOR THE YEAR

Loss for the year
-
(103,644)
(103,644)
TOTAL COMPREHENSIVE INCOME FOR THE YEAR
-
(103,644)
(103,644)


AT 30 APRIL 2022
200
(132,509)
(132,309)


The notes on pages 11 to 17 form part of these financial statements.

Page 9

 
MTD HOUSING LIMITED
 

STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 30 APRIL 2023

2023
2022
£
£

CASH FLOWS FROM OPERATING ACTIVITIES

Loss for the financial year
(209,871)
(103,644)

ADJUSTMENTS FOR:

Interest paid
31,961
-

Increase in assets under construction
(566,314)
-

Increase in debtors
(69,906)
(875)

Increase in creditors
18,771
17,000

Increase in amounts owed to group undertakings
822,961
80,000

Corporation tax paid
-
(1,263)

NET CASH GENERATED/(ABSORBED) FROM OPERATING ACTIVITIES

27,602
(8,782)



CASH FLOWS FROM FINANCING ACTIVITIES

Interest paid
(31,961)
-

NET CASH USED IN FINANCING ACTIVITIES
(31,961)
-

DECREASE IN CASH AND CASH EQUIVALENTS
(4,359)
(8,782)

Cash and cash equivalents at beginning of year
3,309
12,091

CASH AND CASH EQUIVALENTS AT THE END OF YEAR
(1,050)
3,309


CASH AND CASH EQUIVALENTS AT THE END OF YEAR COMPRISE:

Cash at bank and in hand
-
3,309

Bank overdrafts
(1,050)
-

(1,050)
3,309


The notes on pages 11 to 17 form part of these financial statements.

Page 10

 
MTD HOUSING LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 APRIL 2023

1.


GENERAL INFORMATION

MTD Housing Limited is a  private company limited by shares incorporated in England and Wales and is a registered provider of social housing in the United Kingdom. The registered office is Ground Floor, 30 City Road, London, EC1Y 2AB. The principal place of business is Haskell House, 152 West End Lane, London NW6 1SD.

2.ACCOUNTING POLICIES

 
2.1

BASIS OF PREPARATION OF FINANCIAL STATEMENTS

The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Section 1A of Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and the Companies Act 2006 other than where additional disclosure is required to show a true and fair view, the Statement of Recommended Practice for Registered Social Housing Providers 2018, and with the Accounting Direction for Private Registered Providers of Social Housing 2022.
The company's functional and presentational currency is GBP and rounded to the nearest £1.
The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates.It also requires management to exercise judgment in applying the Company's accounting policies.

The following principal accounting policies have been applied:

 
2.2

GOING CONCERN

The financial statements have been prepared on a going concern basis even though the company has net liabilities of £342,180 (2022 - £132,309).The validity of the going concern concept is dependent on the continuing support from creditors. The directors believe that the going concern concept is applicable as the company will be able to meet its debts as and when they fall due, as they are confident that the principal creditors will continue to provide support as required for a period of at least 12 months from the date of approval of the financial statements.

  
2.3

TURNOVER

Turnover 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. Turnover is measured as the fair value of the rents receivable and sales of property trading stock.

  
2.4

DEBTORS

Short term debtors are measured at transaction price, less any impairment.
Page 11

 
MTD HOUSING LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 APRIL 2023

2.ACCOUNTING POLICIES (CONTINUED)

  
2.5

STOCKS

Shared ownership properties held for sale are treated as stock.
Stocks of properties are valued at the lower of cost and estimated selling price less costs to complete and sell.
At each reporting date, stocks are assessed for impairment. If property is impaired, the carrying amount is reduced to its selling price less costs to complete and sell. The impairment loss is recognised immediately in Income statement. 
All repairs, maintenance costs and renewals are written off as incurred. 
Certain refurbishment costs which are part of major property refurbishment programmes may, depending on the nature of the works being undertaken, be capitalised in the Statement of financial position as part of property stock.

 
2.6

FINANCE COSTS

Finance costs are charged to the Statement of Comprehensive Income over the term of the debt using the effective interest method so that the amount charged is at a constant rate on the carrying amount. Issue costs are initially recognised as a reduction in the proceeds of the associated capital instrument.

  
2.7

TANGIBLE FIXED ASSETS

Social Housing under construction are stated at cost. Cost includes cost of buildings and development costs. 

  
2.8

CASH AND CASH EQUIVALENTS

Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours. Cash equivalents are highly liquid investments that mature in no more than three months from the date of acquisition and that are readily convertible to known amounts of cash with insignificant risk of change in value.

  
2.9

PROVISIONS FOR LIABILITIES

Provisions are made where an event has taken place that gives the Company a legal or constructive obligation that probably requires settlement by a transfer of economic benefit, and a reliable estimate can be made of the amount of the obligation.
Provisions are charged as an expense to profit or loss in the year that the Company becomes aware of the obligation, and are measured at the best estimate at the Statement of Financial Position date of the expenditure required to settle the obligation, taking into account relevant risks and uncertainties.
When payments are eventually made, they are charged to the provision carried in the Statement of Financial Position.
Page 12

 
MTD HOUSING LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 APRIL 2023

2.ACCOUNTING POLICIES (CONTINUED)

 
2.10

FINANCIAL INSTRUMENTS

The Company only enters into basic financial instruments transactions that result in the recognition of financial assets and liabilities like trade and other debtors and creditors, and loans from related parties. 

Debt instruments (other than those wholly repayable or receivable within one year), including loans and other accounts receivable and payable, are initially measured at present value of the future cash flows and subsequently at amortised cost using the effective interest method. Debt instruments that are payable or receivable within one year, typically trade debtors and creditors, are measured, initially and subsequently, at the undiscounted amount of the cash or other consideration expected to be paid or received. However, if the arrangements of a short-term instrument constitute a financing transaction, like the payment of a trade debt deferred beyond normal business terms or in case of an out-right short-term loan that is not at market rate, the financial asset or liability is measured, initially at the present value of future cash flows discounted at a market rate of interest for a similar debt instrument and subsequently at amortised cost, unless it qualifies as a loan from a director in the case of a small company, or a public benefit entity concessionary loan.

Financial assets that are measured at cost and amortised cost are assessed at the end of each reporting period for objective evidence of impairment. If objective evidence of impairment is found, an impairment loss is recognised in the Statement of Comprehensive Income.

For financial assets measured at amortised cost, the impairment loss is measured as the difference between an asset's carrying amount and the present value of estimated cash flows discounted at the asset's original effective interest rate. If a financial asset has a variable interest rate, the discount rate for measuring any impairment loss is the current effective interest rate determined under the contract.

For financial assets measured at cost less impairment, the impairment loss is measured as the difference between an asset's carrying amount and best estimate of the recoverable amount, which is an approximation of the amount that the Company would receive for the asset if it were to be sold at the reporting date.

Financial assets and liabilities are offset and the net amount reported in the Statement of Financial Position when there is an 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.

  
2.11

CREDITORS

Short term creditors are measured at the transaction price.

 
2.12

TAXATION

Tax is recognised in profit or loss except that a charge attributable to an item of income and expense recognised as other comprehensive income or to an item recognised directly in equity is also recognised in other comprehensive income or directly in equity respectively.

The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the reporting date in the countries where the Company operates and generates income.

Page 13

 
MTD HOUSING LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 APRIL 2023

3.


ANALYSIS OF TURNOVER

Turnover 2023
2022
                   Cost  of sales     2023
2022
Gross profit 2023
2022
        £
        £
£
        £
        £
        £

Sale of trading properties

-

-

-
 
-
 
-

-

Rental income

8,656

8,493

(489)
 
(1,277)
 
8,167

7,216


8,656

8,493

(489)
 
(1,277)
 
8,167

7,216



4.


AUDITORS' REMUNERATION

During the year, the Company obtained the following services from the Company's auditors:


2023
2022
£
£


Fees payable to the Company's auditors for the audit of the Company's financial statements
6,120
5,700


5.


EMPLOYEES

The average monthly number of employees, including the directors, during the year was as follows:


        2023
        2022
            No.
            No.







Administrative staff
4
4

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MTD HOUSING LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 APRIL 2023

6.


TAXATION


2023
2022
£
£

CORPORATION TAX


Current tax on loss for the year
-
-


TOTAL CURRENT TAX
-
-

FACTORS AFFECTING TAX CHARGE FOR THE YEAR

The tax assessed for the year is higher than (2022 - higher than) the standard rate of corporation tax in the UK of 19.5% (2022 - 19%). The differences are explained below:

2023
2022
£
£


Loss on ordinary activities before tax
(209,871)
(103,644)


Loss on ordinary activities multiplied by standard rate of corporation tax in the UK of 19.5% (2022 - 19%)
(40,925)
(19,692)

EFFECTS OF:


Group relief
40,925
19,692

TOTAL TAX CHARGE FOR THE YEAR
-
-


FACTORS THAT MAY AFFECT FUTURE TAX CHARGES

There were no factors that may affect future tax charges.
Page 15

 
MTD HOUSING LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 APRIL 2023

7.


TANGIBLE FIXED ASSETS





Social housing under construction

£



COST OR VALUATION


Additions
566,314



At 30 April 2023

566,314






NET BOOK VALUE



At 30 April 2023
566,314



At 30 April 2022
-


8.


STOCKS

2023
2022
£
£

Freehold and leasehold property
150,000
150,000

150,000
150,000


Stocks comprise of shared ownership property used for other social housing.


9.


DEBTORS

2023
2022
£
£


Other debtors
71,145
1,236

Called up share capital not paid
100
100

Prepayments and accrued income
643
646

71,888
1,982


Page 16

 
MTD HOUSING LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 APRIL 2023

10.


CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2023
2022
£
£

Bank overdrafts
1,050
-

Amounts owed to group undertakings
1,087,861
264,900

Other taxation and social security
4,172
4,050

Other creditors
37,299
18,650

1,130,382
287,600



11.


RESERVES

Profit and loss account

The profit and loss account includes all current and prior year retained profits and losses.


12.


CAPITAL COMMITMENTS


At 30 April 2023 the Company had capital commitments as follows:

2023
2022
£
£


Contracted for but not provided in these financial statements
397,523
-

397,523
-


13.


RELATED PARTY TRANSACTIONS

The company has taken advantage of the exemptions from disclosure available to subsidiary undertakings under FRS102 Section 1A, paragraph 1 AC.35 in connection with intra group transactions. 


14.


CONTROLLING PARTY

The company is a wholly owned subsidiary of St Ermin's Property Co. Limited, a company incorporated in England. The registered office is Ground Floor, 30 City Road, London EC1Y 2AB. 


Page 17