REGISTERED NUMBER: |
Report of the Directors and |
Unaudited Financial Statements for the Year Ended 31 May 2023 |
for |
Merrow Property Limited |
REGISTERED NUMBER: |
Report of the Directors and |
Unaudited Financial Statements for the Year Ended 31 May 2023 |
for |
Merrow Property Limited |
Merrow Property Limited (Registered number: 08317743) |
Contents of the Financial Statements |
for the Year Ended 31 May 2023 |
Page |
Company Information | 1 |
Report of the Directors | 2 |
Chartered Accountants' Report | 3 |
Income Statement | 4 |
Statement of Financial Position | 5 |
Statement of Changes in Equity | 7 |
Notes to the Financial Statements | 8 |
Merrow Property Limited |
Company Information |
for the Year Ended 31 May 2023 |
DIRECTORS: |
REGISTERED OFFICE: |
REGISTERED NUMBER: |
ACCOUNTANTS: |
Second Floor |
Curzon House |
24 High Street |
Banstead |
Surrey |
SM7 2LJ |
Merrow Property Limited (Registered number: 08317743) |
Report of the Directors |
for the Year Ended 31 May 2023 |
The directors present their report with the financial statements of the company for the year ended 31 May 2023. |
PRINCIPAL ACTIVITY |
The principal activity of the company in the year under review was that of property development, investment and management. |
DIRECTORS |
The directors shown below have held office during the whole of the period from 1 June 2022 to the date of this report. |
This report has been prepared in accordance with the provisions of Part 15 of the Companies Act 2006 relating to small companies. |
ON BEHALF OF THE BOARD: |
Chartered Accountants' Report to the Board of Directors |
on the Unaudited Financial Statements of |
Merrow Property Limited |
In order to assist you to fulfil your duties under the Companies Act 2006, we have prepared for your approval the financial statements of Merrow Property Limited for the year ended 31 May 2023 which comprise the Income Statement, Statement of Financial Position, Statement of Changes in Equity and the related notes from the company's accounting records and from information and explanations you have given us. |
As a practising member firm of the Institute of Chartered Accountants in England and Wales (ICAEW), we are subject to its ethical and other professional requirements which are detailed within the ICAEW's regulations and guidance at http://www.icaew.com/en/membership/regulations-standards-and-guidance. |
This report is made solely to the Board of Directors of Merrow Property Limited, as a body, in accordance with the terms of our engagement letter dated 28 November 2017. Our work has been undertaken solely to prepare for your approval the financial statements of Merrow Property Limited and state those matters that we have agreed to state to the Board of Directors of Merrow Property Limited, as a body, in this report in accordance with ICAEW Technical Release 07/16AAF. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than Merrow Property Limited and its Board of Directors, as a body, for our work or for this report. |
It is your duty to ensure that Merrow Property Limited has kept adequate accounting records and to prepare statutory financial statements that give a true and fair view of the assets, liabilities, financial position and profit of Merrow Property Limited. You consider that Merrow Property Limited is exempt from the statutory audit requirement for the year. |
We have not been instructed to carry out an audit or a review of the financial statements of Merrow Property Limited. For this reason, we have not verified the accuracy or completeness of the accounting records or information and explanations you have given to us and we do not, therefore, express any opinion on the statutory financial statements. |
Second Floor |
Curzon House |
24 High Street |
Banstead |
Surrey |
SM7 2LJ |
Merrow Property Limited (Registered number: 08317743) |
Income Statement |
for the Year Ended 31 May 2023 |
2023 | 2022 |
Notes | £ | £ |
REVENUE |
Cost of sales |
GROSS PROFIT |
Administrative expenses |
46,716 | 44,915 |
Other operating income |
OPERATING PROFIT |
Interest payable and similar expenses | 4 |
PROFIT BEFORE TAXATION |
Tax on profit | 5 |
PROFIT FOR THE FINANCIAL YEAR |
Merrow Property Limited (Registered number: 08317743) |
Statement of Financial Position |
31 May 2023 |
2023 | 2022 |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Investment property | 6 |
1,775,000 | 1,775,000 |
CURRENT ASSETS |
Debtors | 7 |
Cash at bank |
CREDITORS |
Amounts falling due within one year | 8 |
NET CURRENT LIABILITIES | ( |
) | ( |
) |
TOTAL ASSETS LESS CURRENT LIABILITIES |
CREDITORS |
Amounts falling due after more than one year | 9 | ( |
) | ( |
) |
PROVISIONS FOR LIABILITIES | 11 | ( |
) | ( |
) |
NET ASSETS |
CAPITAL AND RESERVES |
Called up share capital |
Fair value reserve |
Retained earnings |
SHAREHOLDERS' FUNDS |
The directors acknowledge their responsibilities for: |
(a) | ensuring that the company keeps accounting records which comply with Sections 386 and 387 of the Companies Act 2006 and |
(b) | preparing financial statements which give a true and fair view of the state of affairs of the company as at the end of each financial year and of its profit or loss for each financial year in accordance with the requirements of Sections 394 and 395 and which otherwise comply with the requirements of the Companies Act 2006 relating to financial statements, so far as applicable to the company. |
Merrow Property Limited (Registered number: 08317743) |
Statement of Financial Position - continued |
31 May 2023 |
The financial statements were approved by the Board of Directors and authorised for issue on |
Merrow Property Limited (Registered number: 08317743) |
Statement of Changes in Equity |
for the Year Ended 31 May 2023 |
Called up | Fair |
share | Retained | value | Total |
capital | earnings | reserve | equity |
£ | £ | £ | £ |
Balance at 1 June 2021 |
Changes in equity |
Total comprehensive income | - |
Balance at 31 May 2022 |
Changes in equity |
Total comprehensive income | - |
Balance at 31 May 2023 |
Merrow Property Limited (Registered number: 08317743) |
Notes to the Financial Statements |
for the Year Ended 31 May 2023 |
1. | STATUTORY INFORMATION |
Merrow Property Limited is a |
The presentation currency of the financial statements is the Pound Sterling (£). |
2. | ACCOUNTING POLICIES |
Basis of preparing the financial statements |
Going concern |
The preparation of the financial statements requires the directors to make an assessment of the entity's ability to continue as a going concern. The directors have reviewed this and consider it appropriate to prepare the financial statements on a going concern basis. |
Revenue |
Revenue represents rental income receivable. |
Investment property |
Investment property is shown at most recent valuation. Any aggregate surplus or deficit arising from changes in fair value is recognised in profit or loss. |
Investment property is included at fair value. Gains and losses are recognised in the income statement. Deferred taxation is provided on these gains at the future tax rate expected to apply when the property may be sold. |
Taxation |
Taxation for the year comprises current and deferred tax. Tax is recognised in the Income Statement, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. |
Current or deferred taxation assets and liabilities are not discounted. |
Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the statement of financial position date. |
Deferred tax |
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the statement of financial position date. |
Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference. |
Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. |
Merrow Property Limited (Registered number: 08317743) |
Notes to the Financial Statements - continued |
for the Year Ended 31 May 2023 |
3. | EMPLOYEES AND DIRECTORS |
The average number of employees during the year was NIL (2022 - NIL). |
4. | INTEREST PAYABLE AND SIMILAR EXPENSES |
2023 | 2022 |
£ | £ |
Bank loan interest |
Mortgage interest |
5. | TAXATION |
Analysis of the tax charge |
The tax charge on the profit for the year was as follows: |
2023 | 2022 |
£ | £ |
Current tax: |
UK corporation tax |
Tax on profit |
UK corporation tax has been charged at 19% (2022 - 19%). |
6. | INVESTMENT PROPERTY |
Total |
£ |
FAIR VALUE |
At 1 June 2022 |
and 31 May 2023 |
NET BOOK VALUE |
At 31 May 2023 |
At 31 May 2022 |
Fair value at 31 May 2023 is represented by: |
£ |
Valuation in 2016 | 137,579 |
Valuation in 2021 | 249,608 |
Cost | 1,387,813 |
1,775,000 |
During 2021 one of the directors, C Smith, revalued the properties to reflect their fair value. The director considers that there has been no change in the fair value since that date. |
Merrow Property Limited (Registered number: 08317743) |
Notes to the Financial Statements - continued |
for the Year Ended 31 May 2023 |
7. | DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
2023 | 2022 |
£ | £ |
Prepayments and accrued income |
8. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
2023 | 2022 |
£ | £ |
Bank loans and overdrafts |
Mortgage loan |
Corporation tax |
Other creditors |
Accruals and deferred income |
9. | CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR |
2023 | 2022 |
£ | £ |
Bank loans - 2-5 years |
Mortgage loan 1-5 years |
Mortgage loan due after 5 year |
Directors' loan accounts |
Amounts falling due in more than five years: |
Repayable by instalments |
Mortgage loan due after 5 year | 36,883 | 41,687 |
10. | SECURED DEBTS |
Paragon Mortgages (2010) Limited holds a legal charge dated 6 March 2013 in the sum of £107,252.50 over Flat 14, Littleton House, Somers Close, Reigate, Surrey to secure the loan on the property. The directors have also provided personal guarantees in respect of the loan. |
11. | PROVISIONS FOR LIABILITIES |
2023 | 2022 |
£ | £ |
Deferred tax on property revaluation | 63,593 | 63,593 |
Merrow Property Limited (Registered number: 08317743) |
Notes to the Financial Statements - continued |
for the Year Ended 31 May 2023 |
11. | PROVISIONS FOR LIABILITIES - continued |
Deferred |
tax |
£ |
Balance at 1 June 2022 |
Balance at 31 May 2023 |
12. | RELATED PARTY DISCLOSURES |
During the year the company repaid £Nil (2022: £15,000) of C J Smith's outstanding loan balance and £24,975 (2022: £Nil) of D E Smith's loan balance. |
Balances owed to directors and related parties at the year end were as follows: |
2023 | 2022 |
£ | £ |
C J Smith | 720,009 | 720,009 |
D E Smith | 30,000 | 54,975 |
F A Smith | 154,975 | 154,975 |
V E Smith | 253,000 | 253,000 |
1,157,984 | 1,182,959 |
13. | ULTIMATE CONTROLLING PARTY |
The ultimate controlling party is |