The Lower Norwood Co-operative Building Company Limited Filleted accounts for Companies House (small and micro)

COMPANY REGISTRATION NUMBER: 00002793

The Lower Norwood Co-operative Building Company Limited

Filleted Unaudited Financial Statements

31 March 2023

The Lower Norwood Co-operative Building Company Limited

Statement of Financial Position

31 March 2023

	2023		2022
Note	£	£	£

Fixed assets

Tangible assets	8		27,478,699	27,673,689

Current assets

Debtors	10	235,521	316,521
Cash at bank and in hand		551,916	420,686
		---------	---------
		787,437	737,207

Creditors: amounts falling due within one year	11	510,508		2,182,106
		---------		------------
Net current assets/(liabilities)			276,929	( 1,444,899)
			-------------	-------------
Total assets less current liabilities			27,755,628	26,228,790

Creditors: amounts falling due after more than one year	12		4,627,573	3,305,451

Provisions

Taxation including deferred tax	3,014,842	3,001,842
	-------------	-------------
Net assets	20,113,213	19,921,497
	-------------	-------------

Capital and reserves

Called up share capital		4,104,000	4,104,000
Profit and loss account	14	16,009,213	15,817,497
		-------------	-------------
Shareholders funds		20,113,213	19,921,497
		-------------	-------------

These financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies' regime and in accordance with Section 1A of FRS 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'.

In accordance with section 444 of the Companies Act 2006, the statement of income and retained earnings has not been delivered.

For the 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 members have not required the company to obtain an audit of its financial statements for the year in question in accordance with section 476 ;

- The directors acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and the preparation of financial statements .

The Lower Norwood Co-operative Building Company Limited

Statement of Financial Position (continued)

31 March 2023

These financial statements were approved by the board of directors and authorised for issue on 4 August 2023 , and are signed on behalf of the board by:

M J Renshaw B.Sc.(Hons), M.R.I.C.S., EWI	M A P Fryer B.A.(Hons), A.C.M.A., C.G.M.A.
Director	Director

Company registration number: 00002793

The Lower Norwood Co-operative Building Company Limited

Notes to the Financial Statements

Year ended 31 March 2023

1. General information

The company is a private company limited by shares, registered in England and Wales. The address of the registered office is 20 Arundel Gate, Sheffield, S1 2PP.

2. Statement of compliance

These financial statements have been prepared in compliance with Section 1A of FRS 102, 'The Financial Reporting Standard applicable in the UK and the Republic of Ireland'.

3. Accounting policies

Basis of preparation

The financial statements have been prepared on the historical cost basis, as modified by the revaluation of certain financial assets and liabilities and investment properties measured at fair value through profit or loss.

The financial statements are prepared in sterling, which is the functional currency of the entity.

Consolidation

The company has taken advantage of the option not to prepare consolidated financial statements contained in Section 398 of the Companies Act 2006 on the basis that the company and its subsidiary undertakings comprise a small group.

Revenue recognition

Turnover represents the total amount receivable by the company in the ordinary course of business from the rental of property. Rental income is accrued on a time basis, by reference to the agreements entered.

Income tax

The taxation expense represents the aggregate amount of current and deferred tax recognised in the reporting period. Tax is recognised in profit or loss, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. In this case, tax is recognised in other comprehensive income or directly in equity, respectively. Current tax is recognised on taxable profit for the current and past periods. Current tax is measured at the amounts of tax expected to pay or recover using the tax rates and laws that have been enacted or substantively enacted at the reporting date.

Deferred tax is recognised in respect of all timing differences at the reporting date. Unrelieved tax losses and other 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. Deferred tax is measured using the tax rates and laws that have been enacted or substantively enacted by the reporting date that are expected to apply to the reversal of the timing difference.

Tangible assets

Tangible assets are initially recorded at cost, and subsequently stated at cost less any accumulated depreciation and impairment losses. Any tangible assets carried at revalued amounts are recorded at the fair value at the date of revaluation less any subsequent accumulated depreciation and subsequent accumulated impairment losses.

Depreciation

Depreciation is calculated so as to write off the cost or valuation of an asset, less its residual value, over the useful economic life of that asset as follows:

Office equipment	-	33% straight line
Computer software	-	33% straight line

Investment property

Investment properties are initially recorded at cost, which includes purchase price and any directly attributable expenditure.

Investment properties are revalued to their fair value at each reporting date and any changes in fair value are recognised in profit or loss.

Impairment of fixed assets

A review for indicators of impairment is carried out at each reporting date, with the recoverable amount being estimated where such indicators exist. Where the carrying value exceeds the recoverable amount, the asset is impaired accordingly. Prior impairments are also reviewed for possible reversal at each reporting date.

Financial instruments

A financial asset or a financial liability is recognised only when the entity becomes a party to the contractual provisions of the instrument. Basic financial instruments are recognised at amortised cost. Financial assets that are measured at cost or amortised cost are reviewed for objective evidence of impairment at the end of each reporting date. If there is objective evidence of impairment, an impairment loss is recognised in profit or loss immediately. For all equity instruments regardless of significance, and other financial assets that are individually significant, these are assessed individually for impairment. Other financial assets are either assessed individually or grouped on the basis of similar credit risk characteristics.

Defined contribution plans

Contributions to defined contribution plans are recognised as an expense in the period in which the related service is provided.

4. Operating profit is stated after charging:

		2023	2022
		£	£

Depreciation	490	490
Pension Costs	5,250	4,953
Directors' remuneration	146,035	97,375

5. Employee numbers

The average number of persons employed by the company during the year amounted to 5 (2022: 4 ).

6. Tax on profit

Major components of tax expense

	2023	2022
	£	£

Current tax:

UK current tax expense	85,368	146,825

Deferred tax:

Origination and reversal of timing differences	13,000	632,103
	--------	---------
Tax on profit	98,368	778,928
	--------	---------

7. Dividends

	2023	2022
	£	£
Dividends paid during the year (excluding those for which a liability existed at the end of the prior year )	266,760	266,760
	---------	---------

The directors propose a final dividend in respect of the financial year ending 31 March 2023 of 55p per share which will absorb £225,720 of shareholders' funds. This will be paid to shareholders who are on the register of members at 31 August 2023.

8. Tangible assets

	Investment property	Office equipment	Computer software	Total
	£	£	£	£
Cost/Valuation
At 1 April 2022	27,672,710	3,692	1,566	27,677,968
Additions	18,000	–	–	18,000
Disposals	( 262,500)	–	–	( 262,500)
Revaluations	50,000	–	–	50,000
	-------------	-------	-------	-------------
At 31 March 2023	27,478,210	3,692	1,566	27,483,468
	-------------	-------	-------	-------------
Depreciation
At 1 April 2022	–	2,713	1,566	4,279
Charge for the year	–	490	–	490
	-------------	-------	-------	-------------
At 31 March 2023	–	3,203	1,566	4,769
	-------------	-------	-------	-------------
Carrying amount
At 31 March 2023	27,478,210	489	–	27,478,699
	-------------	-------	-------	-------------
At 31 March 2022	27,672,710	979	–	27,673,689
	-------------	-------	-------	-------------

The historical cost of the investment properties included above at a valuation of £27,460,210 was £11,866,772 (2022: £11,982,616).

9. Investment in subsidiary

The company has a 100% shareholding in the company The South London Co-operative Building Company Limited. The company did not trade during the year and the value of the investment was considered to be £nil.

10. Debtors

	2023	2022
	£	£
Trade debtors	81,277	107,117
Other debtors	154,244	209,404
	---------	---------
	235,521	316,521
	---------	---------

11. Creditors: amounts falling due within one year

	2023	2022
	£	£
Bank loans and overdrafts	192,446	1,823,196
Trade creditors	13,621	–
Corporation tax	85,531	146,988
Social security and other taxes	27,996	29,277
Other creditors	190,914	182,645
	---------	------------
	510,508	2,182,106
	---------	------------

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

	2023	2022
	£	£
Bank loans and overdrafts	4,627,573	3,305,451
	------------	------------

The bank loans payable in 5 years plus is £nil (2022: £nil) The bank loans and overdraft are secured over the freehold investment properties. The bank loans are repayable over 2 to 5 years.

13. Deferred tax

The deferred tax included in the statement of financial position is as follows:

	2023	2022
	£	£
Included in provisions	3,014,842	3,001,842
	------------	------------

14. Reserves

The total amount of distributable reserves as at 31 March 2023 was £6,024,012 (2022: £5,722,640). The total amount of non - distributable reserves as at 31 March 2023 was £9,985,201 (2022: £10,094,857).

15. Related party transactions

The directors have provided personal guarantees of £5,000 each to a total of £20,000 in respect of the loan facility. During the year a company controlled by one of the Director's was used to manage properties on behalf of the company. At year end a balance of £44,043.19 (2022:nil) was due from this company in relation to rents received less costs and fees.