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Registration number: 07565264

Etro Properties Limited

Filleted Annual Report and Unaudited Financial Statements

for the Year Ended 31 July 2023

 

Etro Properties Limited

Contents

Company Information

1

Statement of Financial Position

2 to 3

Notes to the Unaudited Financial Statements

4 to 10

 

Etro Properties Limited

Company Information

Directors

S K Jerath

R R Jerath

Registered office

Bulman House
Regent Centre
Gosforth
Newcastle upon Tyne
NE3 3LS

Solicitors

Clarke Mairs LLP
1 Hood Street
Newcastle upon Tyne
NE1 6JQ

Accountants

Azets
Bulman House
Regent Centre
Gosforth
Newcastle upon Tyne
NE3 3LS

 

Etro Properties Limited

(Registration number: 07565264)
Statement of Financial Position as at 31 July 2023

Note

2023
£

2022
£

Fixed assets

 

Tangible assets

4

314,436

122,255

Investment property

5

6,737,600

6,482,600

 

7,052,036

6,604,855

Current assets

 

Debtors

6

1,263,611

1,298,001

Cash at bank and in hand

 

762,833

810,479

 

2,026,444

2,108,480

Creditors: Amounts falling due within one year

7

(478,706)

(578,573)

Net current assets

 

1,547,738

1,529,907

Total assets less current liabilities

 

8,599,774

8,134,762

Creditors: Amounts falling due after more than one year

7

(3,894,618)

(3,579,333)

Provisions for liabilities

(499,108)

(467,358)

Net assets

 

4,206,048

4,088,071

Capital and reserves

 

Called up share capital

6

6

Share premium reserve

1,199,996

1,199,996

Profit and loss account

3,006,046

2,888,069

Total equity

 

4,206,048

4,088,071

For the financial year ending 31 July 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; and

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

These financial statements have been prepared in accordance with the special provisions relating to companies subject to the small companies regime within Part 15 of the Companies Act 2006.

 

Etro Properties Limited

(Registration number: 07565264)
Statement of Financial Position as at 31 July 2023 (continued)

These financial statements have been delivered in accordance with the provisions applicable to companies subject to the small companies regime. As permitted by section 444 (5A) of the Companies Act 2006, the directors have not delivered to the registrar a copy of the Income Statement.

Approved and authorised for issue by the Board on 5 March 2024 and signed on its behalf by:
 

.........................................
S K Jerath
Director

 

Etro Properties Limited

Notes to the Unaudited Financial Statements for the Year Ended 31 July 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 Bulman House, Regent Centre, Gosforth, Newcastle upon Tyne, NE3 3LS.

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 have been prepared in accordance with Financial Reporting Standard 102 Section 1A smaller entities - 'The Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland' and the Companies Act 2006 (as applicable to companies subject to the small companies' regime).

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.

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

Going concern

The financial statements have been prepared on a going concern basis. The company meets its day to day working capital requirements through cash generated from operations and shareholder/external borrowings. The company’s forecasts and projections for the next twelve months show that the company should be able to continue in operational existence for that period, taking into account reasonable possible changes in trading performance.

Based on the factors set out above the directors believe that it remains appropriate to prepare the financial statements on a going concern basis

Revenue recognition

Turnover comprises the fair value of the consideration received or receivable for the provision of services in the ordinary course of the company’s activities. Turnover is shown net of value added tax, returns, rebates and discounts.

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.

 

Etro Properties Limited

Notes to the Unaudited Financial Statements for the Year Ended 31 July 2023 (continued)

2

Accounting policies (continued)

Tax

The tax expense for the period comprises current and deferred tax. Tax is recognised in profit or loss, except that a charge attributable to an item of income or expense recognised as other comprehensive income is also recognised directly in other comprehensive income.

The current income 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 in respect of all timing differences between taxable profits and profits reported in the financial statements. Unrelieved tax losses and other deferred tax assets are recognised when 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 and that are expected to apply to the reversal of the timing difference.

Tangible assets

Tangible assets are stated in the statement of financial position at cost, less any subsequent accumulated depreciation and subsequent accumulated impairment losses.

The cost of tangible assets includes directly attributable incremental costs incurred in their acquisition and installation.

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

 

Fixtures and fittings

10% reducing balance

 

Equipment

33% straight line

 

Motor vehicles

10% reducing balance

Investment property

Investment property is carried at fair value, derived from the current market prices for comparable real estate determined annually by external valuers. The valuers 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.

Trade debtors

Trade debtors are amounts due from customers for merchandise sold or services performed in the ordinary course of business.

Trade debtors are recognised initially at the transaction price. They are subsequently measured at amortised cost using the effective interest method, less provision for impairment. A provision for the impairment of trade debtors is established when there is objective evidence that the company will not be able to collect all amounts due according to the original terms of the receivables.

 

Etro Properties Limited

Notes to the Unaudited Financial Statements for the Year Ended 31 July 2023 (continued)

2

Accounting policies (continued)

Trade creditors

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Accounts payable are classified as current liabilities if the company does not have an unconditional right, at the end of the reporting period, to defer settlement of the creditor for at least twelve months after the reporting date. If there is an unconditional right to defer settlement for at least twelve months after the reporting date, they are presented as non-current liabilities.

Trade creditors are recognised initially at the transaction price and subsequently measured at amortised cost using the effective interest method.

Borrowings

Interest-bearing borrowings are initially recorded at fair value, net of transaction costs. Interest-bearing borrowings are subsequently carried at amortised cost, with the difference between the proceeds, net of transaction costs, and the amount due on redemption being recognised as a charge to the income statement over the period of the relevant borrowing.

Interest expense is recognised on the basis of the effective interest method and is included in interest payable and similar charges.

Borrowings are classified as current liabilities unless the company has an unconditional right to defer settlement of the liability for at least twelve months after the reporting date.

Leases

Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessee.

Assets held under finance leases are recognised at the lower of their fair value at inception of the lease and the present value of the minimum lease payments. These assets are depreciated on a straight-line basis over the shorter of the useful life of the asset and the lease term. The corresponding liability to the lessor is included in the statement of financial position as a finance lease obligation.

Lease payments are apportioned between finance costs in the income statement and reduction of the lease obligation so as to achieve a constant periodic rate of interest on the remaining balance of the liability.

Defined contribution pension obligation

A defined contribution plan is a pension plan under which fixed contributions are paid into a pension fund and the company has no legal or constructive obligation to pay further contributions even if the fund does not hold sufficient assets to pay all employees the benefits relating to employee service in the current and prior periods.

Contributions to defined contribution plans are recognised as employee benefit expense when they are due. If contribution payments exceed the contribution due for service, the excess is recognised as a prepayment.

 

Etro Properties Limited

Notes to the Unaudited Financial Statements for the Year Ended 31 July 2023 (continued)

3

Staff numbers

The average number of persons employed by the company (including directors) during the year, was 2 (2022 - 3).

4

Tangible assets

Fixtures and fittings
£

Equipment
£

Motor vehicles
 £

Total
£

Cost or valuation

At 1 August 2022

256,154

4,681

-

260,835

Additions

2,163

-

212,727

214,890

At 31 July 2023

258,317

4,681

212,727

475,725

Depreciation

At 1 August 2022

135,134

3,446

-

138,580

Charge for the year

12,179

530

10,000

22,709

At 31 July 2023

147,313

3,976

10,000

161,289

Carrying amount

At 31 July 2023

111,004

705

202,727

314,436

At 31 July 2022

121,020

1,235

-

122,255

5

Investment properties

2023
£

At 1 August

6,482,600

Additions

129,600

Fair value adjustments

125,400

At 31 July

6,737,600

The fair value of the investment property has been arrived at on the basis of the valuation carried out at 31 July 2023 by S K Jerath, a director of Etro Properties Limited. The valuation was made on an open market value basis by reference to market evidence of transaction prices for similar properties. The historical cost of the properties is £4,452,416

 

Etro Properties Limited

Notes to the Unaudited Financial Statements for the Year Ended 31 July 2023 (continued)

6

Debtors

2023
£

2022
£

Prepayments

49,096

62,127

Other debtors

1,214,515

1,235,874

1,263,611

1,298,001

7

Creditors

Creditors: amounts falling due within one year

Note

2023
£

2022
£

Due within one year

 

Bank loans and overdrafts

8

92,993

182,759

Trade creditors

 

4,045

2,565

Taxation and social security

 

2,516

3,364

Accruals and deferred income

 

78,075

75,729

Other creditors

 

192,711

195,291

Corporation tax liability

 

8,366

18,865

Directors loan accounts

 

100,000

100,000

 

478,706

578,573

Creditors include bank loans which are secured over the properties to which they relate of £80,000 (2022 - £177,204).

Creditors include Hire purchase contracts which are secured of £7,438 (2022 - £Nil).

Creditors: amounts falling due after more than one year

Note

2023
£

2022
£

Due after one year

 

Loans and borrowings

8

3,619,220

3,460,760

Directors loan accounts

 

275,398

118,573

 

3,894,618

3,579,333

Creditors includes an amount of £3,022,354 (2022 - £3,200,000) in respect of liabilities payable or repayable by instalments which fall due for payment after more than five years from the reporting date. The loans are secured over the properties to which they relate.

Creditors include Hire purchase contracts which are secured of £131,578 (2022 - £Nil).

 

Etro Properties Limited

Notes to the Unaudited Financial Statements for the Year Ended 31 July 2023 (continued)

8

Loans and borrowings

2023
£

2022
£

Current loans and borrowings

Bank borrowings

85,555

182,759

Hire purchase and finance lease liabilities

7,438

-

92,993

182,759

2023
£

2022
£

Non-current loans and borrowings

Bank borrowings

3,487,642

3,460,760

Hire purchase and finance lease liabilities

131,578

-

3,619,220

3,460,760

9

Reserves

Profit and loss reserves includes £1,359,202 (2022 - £1,786,701) of reserves which can not be distributed as the relevant profits have not yet been realised.

10

Related party transactions

Included within other creditors is £185,805 (2022 - £195,291) due to companies under common control.

Included within other debtors is £1,203,815 (2022 - £1,225,174) due from companies under common control.

Claremont Place Limited is a related party by virtue of common directors. During the year, Etro Properties Limited provided Claremont Place Limited loans of £Nil (2022 - £Nil) and received repayments totalling £5,514 (2022 - £483,736). At the year end the amount outstanding included within other creditors is £180,805 (2022 - £175,291).

Etro Developments Limited is a related party by virtue of common directors. During the year, Etro Properties Limited provided Etro Developments Limited loans of £30,000 (2022 - £30,000). During the year Etro Properties Limited recharged costs to Etro Developments Limited of £15,000 (2022 - £10,000). At the year end the amount outstanding included within other creditors is £5,000 (2022 - £20,000).

 

Etro Properties Limited

Notes to the Unaudited Financial Statements for the Year Ended 31 July 2023 (continued)

11

Parent and ultimate parent undertaking

The ultimate controlling parties are S K Jerath and R R Jerath by virtue of them owning 100% of the share capital of the parent entity.

 The company's immediate parent is Etro Group Ltd, incorporated in England and Wales.