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COMPANY REGISTRATION NUMBER: 6641580
MAGNIFICENT ESTATES LIMITED
FILLETED UNAUDITED FINANCIAL STATEMENTS
29 July 2022
MAGNIFICENT ESTATES LIMITED
BALANCE SHEET
29 July 2022
29 Jul 22
31 Jul 21
Note
£
£
£
£
FIXED ASSETS
Tangible assets
5
2,373,113
2,365,373
CURRENT ASSETS
Debtors
6
45,796
32,588
Cash at bank and in hand
1,126
6,625
---------
---------
46,922
39,213
CREDITORS: amounts falling due within one year
7
( 487,687)
( 431,712)
----------
----------
NET CURRENT LIABILITIES
( 440,765)
( 392,499)
-------------
-------------
TOTAL ASSETS LESS CURRENT LIABILITIES
1,932,348
1,972,874
CREDITORS: amounts falling due after more than one year
8
( 567,905)
( 608,628)
PROVISIONS
Taxation including deferred tax
9
( 287,000)
( 287,000)
-------------
-------------
NET ASSETS
1,077,443
1,077,246
-------------
-------------
CAPITAL AND RESERVES
Called up share capital
100
100
Profit and loss account
1,077,343
1,077,146
-------------
-------------
SHAREHOLDERS FUNDS
1,077,443
1,077,246
-------------
-------------
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 profit and loss account has not been delivered.
For the period ending 29 July 2022 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.
Director's responsibilities:
- The members have not required the company to obtain an audit of its financial statements for the period in question in accordance with section 476 ;
- The director acknowledges his responsibilities for complying with the requirements of the Act with respect to accounting records and the preparation of financial statements .
MAGNIFICENT ESTATES LIMITED
BALANCE SHEET (continued)
29 July 2022
These financial statements were approved by the board of directors and authorised for issue on 13 November 2023 , and are signed on behalf of the board by:
Mr H Bondi
Director
Company registration number: 6641580
MAGNIFICENT ESTATES LIMITED
NOTES TO THE FINANCIAL STATEMENTS
PERIOD FROM 1 AUGUST 2021 TO 29 JULY 2022
1. GENERAL INFORMATION
The company is a private company limited by shares, registered in England and Wales. The address of the registered office is New Burlington House, 1075 Finchley Road, London, NW11 0PU.
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.
Going concern
Notwithstanding the deficiency in net current assets, the financial statements have been prepared in accordance with the accounting policies appropriate to a going concern, as the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future by meeting its liabilities as they fall due.
Judgements and key sources of estimation uncertainty
In the application of the company's accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amounts of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates. The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods. The directors do not consider there are any critical judgements or sources of estimation uncertainty requiring disclosure beyond the accounting policies listed below.
Turnover
Turnover is measured at the fair value of the consideration received or receivable and represents rents and charges receivable.
Taxation
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.
Acquisition and disposals of properties
Acquisitions and disposals are considered to have taken place at the date of legal completion and are included in the financial statements accordingly.
Investment property
Investment properties are properties which are held either to earn rental income or for capital appreciation or for both. Investment properties are recognised initially at cost. Subsequent to initial recognition - Investment properties are held at fair value. Any gains or losses arising from changes in the fair value are recognised in the profit and loss account in the period that they arise; and - No depreciation is provided in respect of investment properties applying the fair value model. Investment property fair value is determined by the directors based on their understanding of property market conditions and the specific properties concerned, using a sales valuation approach, derived from recent comparable transactions on the market, adjusted by applying discounts to reflect status of occupation and condition, whilst having regard to professional valuations where available.
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:
Fixtures and fittings
-
20% straight line
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 initially recognised at the transaction price, unless the arrangement constitutes a financing transaction, where it is recognised at the present value of the future payments discounted at a market rate of interest for a similar debt instrument. Debt instruments are subsequently measured 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. Any reversals of impairment are recognised in profit or loss immediately, to the extent that the reversal does not result in a carrying amount of the financial asset that exceeds what the carrying amount would have been had the impairment not previously been recognised.
4. EMPLOYEE NUMBERS
The average number of persons employed by the company during the period, including directors, amounted to nil (2021: nil).
5. TANGIBLE ASSETS
Freehold investment property
Fixtures and fittings
Total
£
£
£
Cost
At 1 August 2021
2,365,373
11,905
2,377,278
Additions
7,740
7,740
-------------
---------
-------------
At 29 July 2022
2,373,113
11,905
2,385,018
-------------
---------
-------------
Depreciation
At 1 August 2021 and 29 July 2022
11,905
11,905
-------------
---------
-------------
Carrying amount
At 29 July 2022
2,373,113
2,373,113
-------------
---------
-------------
At 31 July 2021
2,365,373
2,365,373
-------------
---------
-------------
The directors are of the opinion that £2.37 million represents the open market value of the investment property as at the balance sheet date. The historical cost of the investment property is £1,097,715 (2021: £1,089,975).
6. DEBTORS
29 Jul 22
31 Jul 21
£
£
Trade debtors
22,051
20,829
Other debtors
23,745
11,759
---------
---------
45,796
32,588
---------
---------
Included in other debtors is an amount of £21,500 due from companies with common directors.
7. CREDITORS: amounts falling due within one year
29 Jul 22
31 Jul 21
£
£
Bank loans and overdrafts
40,566
33,449
Trade creditors
32,196
17,212
Corporation tax
46
4,555
Other creditors
414,879
376,496
----------
----------
487,687
431,712
----------
----------
The bank loans are secured on the investment property of the company. Included in other creditors are amounts of £367,042 (2021: £356,776) due to Templiss Properties Limited, a company with a director in common with the company. The loan balance bears interest at a rate of 5% and is repayable on demand. Also included in other creditors are amounts of £30,140 (2021: nil) due to Magnificent Buildings Limited, a company with a director in common with the company. The loan is interest free and repayable on demand.
8. CREDITORS: amounts falling due after more than one year
29 Jul 22
31 Jul 21
£
£
Bank loans and overdrafts
567,905
608,628
----------
----------
Included within creditors: amounts falling due after more than one year is an amount of £413,422 (2021: £449,441) in respect of liabilities payable or repayable by instalments which fall due for payment after more than five years from the reporting date.
The bank loans are secured on the freehold investment property of the company. An additional guarantee of £100,000 has been given by the directors of the company.
9. PROVISIONS
Deferred tax
£
At 1 August 2021 and 29 July 2022
287,000
----------
The provision for deferred tax is in relation to the revaluation of investment property.