Year Ended
Registration number:
Neon Property Limited
Balance Sheet
30 April 2023
Note |
2023 |
2022 |
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Fixed assets |
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Tangible assets |
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Investment property |
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|
|
|
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Current assets |
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Debtors |
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|
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Cash at bank and in hand |
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|
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|
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Creditors: Amounts falling due within one year |
( |
( |
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Net current liabilities |
( |
( |
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Total assets less current liabilities |
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|
Creditors: Amounts falling due after more than one year |
( |
( |
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Provisions for liabilities |
( |
( |
|
Net assets |
|
|
|
Capital and reserves |
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Called up share capital |
1 |
1 |
|
Fair value reserve |
870,075 |
873,156 |
|
Profit and loss account |
609,925 |
532,487 |
|
Shareholders' funds |
1,480,001 |
1,405,644 |
These financial statements have been prepared and delivered in accordance with the special provisions relating to companies subject to the small companies regime within Part 15 of the Companies Act 2006 and the option not to file the Profit and Loss Account has been taken.
Approved and authorised by the
.........................................
Mr R N Long
Director
Company Registration Number: 08578546
Neon Property Limited
Notes to the Financial Statements
Year Ended 30 April 2023
General information |
The company is a private company limited by share capital, incorporated in England and Wales.
The address of its registered office is:
The principal place of business is:
Unit 1 Cardrew Way
Cardrew Industrial Estate
Redruth
Cornwall
TR15 1SH
Accounting policies |
Summary of significant accounting policies and key accounting estimates
The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.
Statement of compliance
These financial statements were prepared in accordance with Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland', including section 1A and the Companies Act 2006. There are no material departures from FRS102.
Basis of preparation
These financial statements have been prepared using the historical cost convention except that as disclosed in the accounting policies certain items are shown at fair value.
Going concern
The financial statements have been prepared on a going concern basis.
The directors acknowledge the net current liability position of the company of £214,329 (2022 - net current liabilities of £231,438).
This position is not unusual for the company and reflects the different rates that current assets and current liabilities turn over. Furthermore, the directors have continued to prepare the accounts on the going concern basis as management have continued to closely monitor and manage cash post year end and have maintained good communication with their bank. With the strength of good asset security and future business plans, the directors renewed and consolidated loan agreements with their bank, see note 8, such that they can generate sufficient profits and cash going forward to enable the company to reduce its net debt and continue in operational existence.
Neon Property Limited
Notes to the Financial Statements
Year Ended 30 April 2023
Revenue recognition
Turnover comprises the fair value of the consideration received or receivable for rent charged in the ordinary course of the company’s activities. Turnover is shown net of value added tax, returns, rebates and discounts and after eliminating sales within the company.
The company recognises revenue when:
The amount of revenue can be reliably measured;
it is probable that future economic benefits will flow to the entity;
and specific criteria have been met for each of the company's activities.
Tax
Tax is recognised in profit or loss, except that a change attributable to an item of income or expense recognised as other comprehensive income is also recognised directly in other comprehensive income.
The current corporation 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 taxable income.
Deferred tax is recognised on all timing differences at the balance sheet date unless indicated below. Timing differences are differences between taxable profits and the results as stated in the profit and loss account and other comprehensive income. Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the reporting date.
Tangible assets
Land and Buildings relate to freehold properties used by other group companies and are stated in the balance sheet at their revalued amount. The revalued amounts equate to the fair value at the date of revaluation, less any depreciation or impairment losses subsequently accumulated. Revaluations are carried out regularly so that the carrying amounts do not materially differ from using the fair value at the date of the accounts.
Any revaluation increase or decrease on land and buildings is recognised in the revaluation reserve.
Depreciation
Depreciation is charged so as to write off the cost of assets, other than land and properties under construction over their estimated useful lives, as follows:
Asset class |
Depreciation method and rate |
Buildings |
2% straight line |
Investment property
Neon Property Limited
Notes to the Financial Statements
Year Ended 30 April 2023
Financial instruments
Classification
• Short term trade and other debtors and creditors;
• Bank loans; and
• Cash and bank balances.
All financial instruments are classified as basic.
Recognition and measurement
Financial instruments are recognised when the company becomes party to the contractual provisions of the instrument and derecognised when in the case of assets, the contractual rights to cash flows from the assets expire or substantially all the risks and rewards of ownership are transferred to another party, or in the case of liabilities, when the company’s obligations are discharged, expire or are cancelled.
Except for bank loans, such instruments are initially measured at transaction price, including transaction costs, and are subsequently carried at the undiscounted amount of the cash or other consideration expected to be paid or received, after taking account of impairment adjustments.
Bank loans are initially measured at transaction price, including transaction costs, and are subsequently carried at amortised cost using the effective interest method.
Staff numbers |
The average number of persons employed by the company (including directors) during the year, was
Tangible assets |
Land and buildings |
Total |
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Cost or valuation |
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At 1 May 2022 |
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At 30 April 2023 |
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Depreciation |
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Charge for the year |
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At 30 April 2023 |
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Carrying amount |
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At 30 April 2023 |
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At 30 April 2022 |
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Neon Property Limited
Notes to the Financial Statements
Year Ended 30 April 2023
Included within the net book value of land and buildings above is £1,696,896 (2022 - £1,725,000) in respect of freehold land and buildings.
Revaluation
The fair value of the company's Land & Buildings was revalued on
Had this class of asset been measured on a historical cost basis, the carrying amount would have been £
Investment properties |
2023 |
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At 1 May 2022 |
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At 30 April 2023 |
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The valuation is based on a director's valuation. There has been no valuation of investment property by an independent valuer.
Debtors |
2023 |
2022 |
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Amounts owed by group undertakings |
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Other debtors |
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Neon Property Limited
Notes to the Financial Statements
Year Ended 30 April 2023
Creditors |
Creditors: amounts falling due within one year
Note |
2023 |
2022 |
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Due within one year |
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Loans and borrowings |
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Amounts owed to group undertakings |
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Corporation tax |
23,376 |
22,966 |
|
Taxation and social security |
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Accruals and deferred income |
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Creditors: amounts falling due after more than one year
Note |
2023 |
2022 |
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Due after one year |
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Loans and borrowings |
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Neon Property Limited
Notes to the Financial Statements
Year Ended 30 April 2023
Loans and borrowings |
2023 |
2022 |
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Current loans and borrowings |
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Bank borrowings |
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2023 |
2022 |
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Loans and borrowings due after one year |
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Bank borrowings |
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The bank loans and borrowings are secured by fixed charges over the tangible assets, investment property, directors' personal guarantees and cross guarantees from group companies.
Bank borrowings
The Natwest loan is denominated in £ with nominal interest rates ranging from 2.75% - 3.21%. The final instalment is due on 31 January 2031. The carrying amount at year end is £226,977 (2022 - £250,098).
The Barclays loans are denominated in £ with nominal interest rates ranging from 2% - 2.76%. The final instalments are due on 1 April 2025 and 7 June 2026. The carrying amount at year end is £443,865 (2021 - £495,580).
The bank loans are secured by charges over the freehold properties of the company, directors guarantees and cross guarantees between group companies.
The bank borrowings are due as below -
Amount due |
|
£ |
|
Within 1 year |
131,075 |
Within 1 - 5 years |
449,456 |
After 5 years |
90,311 |
670,842 |
Neon Property Limited
Notes to the Financial Statements
Year Ended 30 April 2023
Share capital |
Allotted, called up and fully paid shares
2023 |
2022 |
|||
No. |
£ |
No. |
£ |
|
|
|
1 |
|
1 |
Financial commitments, guarantees and contingencies |
The company is party to a cross guarantee with related parties in favour of Barclays Bank UK PLC. The bank borrowings are secured by a charge over the freehold properties owned by the related parties.
The bank borrowing of the group at the balance sheet date amounted to £1,887,399 (2022 - £2,554,496).
Parent and ultimate parent undertaking |
The company's immediate parent is
The ultimate parent is
Audit report |