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Neon Property Limited

Annual Report and Financial Statements
Year Ended 30 April 2023

Registration number: 08578546

 

Neon Property Limited

Contents

Balance Sheet

1

Notes to the Financial Statements

2 to 8

 

Neon Property Limited

Balance Sheet

30 April 2023

Note

2023
£

2022
£

Fixed assets

 

Tangible assets

4

1,696,896

1,725,000

Investment property

5

800,000

800,000

 

2,496,896

2,525,000

Current assets

 

Debtors

6

303,517

306,797

Cash at bank and in hand

 

263,954

216,875

 

567,471

523,672

Creditors: Amounts falling due within one year

7

(781,800)

(755,110)

Net current liabilities

 

(214,329)

(231,438)

Total assets less current liabilities

 

2,282,567

2,293,562

Creditors: Amounts falling due after more than one year

7

(539,767)

(618,574)

Provisions for liabilities

(262,799)

(269,344)

Net assets

 

1,480,001

1,405,644

Capital and reserves

 

Called up share capital

9

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 Board on 13 November 2023 and signed on its behalf by:
 

.........................................

Mr R N Long

Director

Company Registration Number: 08578546

 

Neon Property Limited

Notes to the Financial Statements

Year Ended 30 April 2023

1

General information

The company is a private company limited by share capital, incorporated in England and Wales.

The address of its registered office is:
C/O Francis Clark LLP
Melville Building East
Unit 18, 23 Royal William Yard
Plymouth
Devon
PL1 3GW

The principal place of business is:
Unit 1 Cardrew Way
Cardrew Industrial Estate
Redruth
Cornwall
TR15 1SH

2

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

Investment property is carried at fair value, derived from the current market prices for comparable real estate determined annually by the directors. The directors use observable market prices, adjusted if necessary for any difference in the nature, location or condition of the specific asset. Changes in fair value are recognised in profit or loss.

 

Neon Property Limited

Notes to the Financial Statements

Year Ended 30 April 2023

Financial instruments

Classification
The company holds the following financial instruments:

• 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
The company has chosen to apply the recognition and measurement principles in FRS102.

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.

3

Staff numbers

The average number of persons employed by the company (including directors) during the year, was 2 (2022 - 2).

4

Tangible assets

Land and buildings
£

Total
£

Cost or valuation

At 1 May 2022

1,725,000

1,725,000

At 30 April 2023

1,725,000

1,725,000

Depreciation

Charge for the year

28,104

28,104

At 30 April 2023

28,104

28,104

Carrying amount

At 30 April 2023

1,696,896

1,696,896

At 30 April 2022

1,725,000

1,725,000

 

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 30 April 2023 based on Directors' valuations.

Had this class of asset been measured on a historical cost basis, the carrying amount would have been £858,765 (2022 - £876,759).

5

Investment properties

2023
£

At 1 May 2022

800,000

At 30 April 2023

800,000

The valuation is based on a director's valuation. There has been no valuation of investment property by an independent valuer.

6

Debtors

2023
£

2022
£

Amounts owed by group undertakings

301,297

304,054

Other debtors

2,220

2,743

303,517

306,797

 

Neon Property Limited

Notes to the Financial Statements

Year Ended 30 April 2023

7

Creditors

Creditors: amounts falling due within one year

Note

2023
£

2022
£

Due within one year

 

Loans and borrowings

8

131,075

127,104

Amounts owed to group undertakings

 

536,526

536,526

Corporation tax

 

23,376

22,966

Taxation and social security

 

77,780

55,471

Accruals and deferred income

 

13,043

13,043

 

781,800

755,110

Creditors: amounts falling due after more than one year

Note

2023
£

2022
£

Due after one year

 

Loans and borrowings

8

539,767

618,574

 

Neon Property Limited

Notes to the Financial Statements

Year Ended 30 April 2023

8

Loans and borrowings

2023
£

2022
£

Current loans and borrowings

Bank borrowings

131,075

127,104

2023
£

2022
£

Loans and borrowings due after one year

Bank borrowings

539,767

618,574

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

9

Share capital

Allotted, called up and fully paid shares

 

2023

2022

 

No.

£

No.

£

Ordinary of £1 each

1

1

1

1

         

10

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).

11

Parent and ultimate parent undertaking

The company's immediate parent is Neon (Holdings) Limited, incorporated in England and Wales.

 The ultimate parent is Neon (Holdings) Limited, incorporated in England and Wales.

 

12

Audit report

The Independent Auditors' Report was unqualified. The name of the Senior Statutory Auditor who signed the audit report was Duncan Leslie , who signed for and on behalf of PKF Francis Clark on 17 November 2023.