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Company No: 10664353 (England and Wales)

MAGNOLIA ESTATES II LIMITED

Unaudited Financial Statements
For the financial year ended 31 March 2023
Pages for filing with the registrar

MAGNOLIA ESTATES II LIMITED

Unaudited Financial Statements

For the financial year ended 31 March 2023

Contents

MAGNOLIA ESTATES II LIMITED

COMPANY INFORMATION

For the financial year ended 31 March 2023
MAGNOLIA ESTATES II LIMITED

COMPANY INFORMATION (continued)

For the financial year ended 31 March 2023
DIRECTORS Mr S J Button
Dr S F Wood
REGISTERED OFFICE 66 Prescot Street
London
E1 8NN
United Kingdom
COMPANY NUMBER 10664353 (England and Wales)
CHARTERED ACCOUNTANTS Gravita III LLP
66 Prescot Street
London
E1 8NN
MAGNOLIA ESTATES II LIMITED

BALANCE SHEET

As at 31 March 2023
MAGNOLIA ESTATES II LIMITED

BALANCE SHEET (continued)

As at 31 March 2023
Note 2023 2022
£ £
Fixed assets
Investment property 3 6,203,254 6,203,254
6,203,254 6,203,254
Current assets
Debtors 4 2,905,063 3,396,778
Cash at bank and in hand 113,615 200,226
3,018,678 3,597,004
Creditors: amounts falling due within one year 5 ( 2,971,836) ( 3,693,675)
Net current assets/(liabilities) 46,842 (96,671)
Total assets less current liabilities 6,250,096 6,106,583
Creditors: amounts falling due after more than one year 6 ( 2,780,000) ( 2,780,000)
Net assets 3,470,096 3,326,583
Capital and reserves
Called-up share capital 1 1
Profit and loss account 3,470,095 3,326,582
Total shareholder's funds 3,470,096 3,326,583

For the financial year ending 31 March 2023 the Company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.

Directors' responsibilities:

The financial statements of Magnolia Estates II Limited (registered number: 10664353) were approved and authorised for issue by the Board of Directors on 05 November 2023. They were signed on its behalf by:

Mr S J Button
Director
MAGNOLIA ESTATES II LIMITED

NOTES TO THE FINANCIAL STATEMENTS

For the financial year ended 31 March 2023
MAGNOLIA ESTATES II LIMITED

NOTES TO THE FINANCIAL STATEMENTS

For the financial year ended 31 March 2023
1. Accounting policies

The principal accounting policies are summarised below. They have all been applied consistently throughout the financial year and to the preceding financial year, unless otherwise stated.

General information and basis of accounting

Magnolia Estates II Limited (the Company) is a private company, limited by shares, incorporated in the United Kingdom under the Companies Act 2006 and is registered in England and Wales. The address of the Company's registered office is 66 Prescot Street, London, E1 8NN, United Kingdom.

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 items at fair value, and in accordance with Section 1A of Financial Reporting Standard 102 (FRS 102) ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland’ issued by the Financial Reporting Council and the requirements of the Companies Act 2006 as applicable to companies subject to the small companies regime.

The financial statements are presented in pounds sterling which is the functional currency of the Company and rounded to the nearest £.

The company has taken advantage of the exemption, under the terms of FRS 102, not to disclose related party transactions with wholly owned entities within the group.

Turnover

Turnover is recognised at the fair value of the consideration received or receivable for services provided in the normal course of business and comprise wholly of rental and service charge income charged during the period, exclusive of VAT and other sales related taxes.

Revenue from contracts for the provision of professional services is recognised by reference to the stage of completion when the stage of completion, costs incurred and costs to complete can be estimated reliably. The stage of completion is calculated by comparing costs incurred, mainly in relation to contractual hourly staff rates and materials, as a proportion of total costs. Where the outcome cannot be estimated reliably, revenue is recognised only to the extent of the expenses recognised that it is probable will be recovered.

Employee benefits

Short term benefits
The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.

Defined contribution schemes
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

Taxation

Current tax
Current tax is provided at amounts expected to be paid (or recoverable) using the tax rates and laws that have been enacted or substantively enacted at the Balance Sheet date.

Deferred tax
Deferred tax arises as a result of including items of income and expenditure in taxation computations in periods different from those in which they are included in the Company's financial statements. Deferred tax is provided in full on timing differences which result in an obligation to pay more or less tax at a future date, at the average tax rates that are expected to apply when the timing differences reverse, based on current tax rates and laws. Deferred tax assets and liabilities are not discounted.

The carrying amount of deferred tax assets are reviewed at each reporting date and a valuation allowance is set up against deferred tax assets so that the net carrying amount equals the highest amount that is more likely than not to be recovered based on current or future taxable profit.

Tangible fixed assets

Tangible fixed assets are stated at cost or valuation, net of depreciation and any provision for impairment. Depreciation is provided on all tangible fixed assets, other than investment property and freehold land, at rates calculated to write off the cost or valuation, less estimated residual value, of each asset on a straight-line or reducing balance basis over its expected useful life, as follows:

Residual value represents the estimated amount which would currently be obtained from disposal of an asset, after deducting estimated costs of disposal, if the asset were already of the age and in the condition expected at the end of its useful life.

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is credited or charged to profit or loss.

Impairment of assets

Assets, other than those measured at fair value, are assessed for indicators of impairment at each Balance Sheet date. If there is objective evidence of impairment, an impairment loss is recognised in the Profit and Loss Account as described below.

Investment property

Investment property is initially recognised at cost, which includes the purchase cost and any directly attributable expenditure. Subsequently it is measured at fair value at each reporting date with changes in fair value recognised in profit or loss. Deferred taxation is provided on these gains at the rate expected to apply when the property is sold.

The fair value is determined annually by the directors, on an open market value for existing use basis.

Cash and cash equivalents

Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks.

Financial instruments

Financial assets and financial liabilities are recognised when the Company becomes a party to the contractual provisions of the instrument.

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.

Financial assets and liabilities are only offset in the Balance Sheet when, and only when there exists a legally enforceable right to set off the recognised amounts and the Company intends either 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.

Financial assets are derecognised when and only when the contractual rights to the cash flows from the financial asset expire or are settled, or the Company transfers to another party substantially all of the risks and rewards of ownership of the financial asset, or the Company, despite having retained some, but not all, significant risks and rewards of ownership, has transferred control of the asset to another party.

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.

Financial liabilities are derecognised when the company’s contractual obligations expire or are discharged or cancelled.

Equity instruments
Equity instruments issued by the Company are recorded at the fair value of cash or other resources received or receivable, net of direct issue costs. If payment is deferred and the time value of money is material, the initial measurement is on a present value basis.

2. Employees

2023 2022
Number Number
Monthly average number of persons employed by the Company during the year, including directors 1 2

3. Investment property

Investment property
£
Valuation
As at 01 April 2022 6,203,254
As at 31 March 2023 6,203,254

Valuation

The investment properties have been revalued in March 2023. The fair value of the investment properties have been arrived at on the basis of a valuation carried out in March 2023 by the directors of the company. The valuation was made on an open market value basis by reference to market evidence of similar properties.

4. Debtors

2023 2022
£ £
Trade debtors 8,079 126,839
Amounts owed by Group undertakings 8,073 7,700
Other debtors 2,888,911 3,262,239
2,905,063 3,396,778

5. Creditors: amounts falling due within one year

2023 2022
£ £
Trade creditors 9,083 134,027
Taxation and social security 34,137 242,170
Other creditors 2,928,616 3,317,478
2,971,836 3,693,675

6. Creditors: amounts falling due after more than one year

2023 2022
£ £
Bank loans (secured) 2,780,000 2,780,000

The bank loans are secured against the investment properties and by guarantee provided by the directors.

7. Related party transactions

At the balance sheet date, the company owed £2,609,895 (2022: £3,083,305) to the directors of the company. The loan is unsecured, interest free and repayable on demand.