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Registration number: 07049577

McRae Smith Limited

Annual Report and Unaudited Financial Statements

for the Year Ended 31 October 2023

 

McRae Smith Limited

Contents

Company Information

1

Statement of Financial Position

2 to 3

Notes to the Unaudited Financial Statements

4 to 10

 

McRae Smith Limited

Company Information

Directors

Mrs Wendy Smith

Mr John Smith

Registered office

46 Surrenden Crescent
Brighton
East Sussex
BN1 6WF

Accountants

Melrose Accountants
Accountants
62 Florence Road
Brighton
East Sussex
BN1 6DJ

 

McRae Smith Limited

(Registration number: 07049577)
Statement of Financial Position as at 31 October 2023

Note

2023
£

2022
£

Fixed assets

 

Investment property

4

1,457,000

1,446,000

Investments

5

2

2

 

1,457,002

1,446,002

Current assets

 

Debtors

6

305

476

Cash at bank and in hand

 

285

5,593

 

590

6,069

Creditors: Amounts falling due within one year

7

(1,196,193)

(595,369)

Net current liabilities

 

(1,195,603)

(589,300)

Total assets less current liabilities

 

261,399

856,702

Creditors: Amounts falling due after more than one year

7

-

(601,705)

Provisions for liabilities

(36,190)

(33,440)

Net assets

 

225,209

221,557

Capital and reserves

 

Called up share capital

8

100

100

Other reserves

150,810

142,560

Retained earnings

74,299

78,897

Shareholders' funds

 

225,209

221,557

For the financial year ending 31 October 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 accounts 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 accounts.

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.

These financial statements have been delivered in accordance with the provisions applicable to companies subject to the small companies regime and the option not to file the Income Statement has been taken.

 

McRae Smith Limited

(Registration number: 07049577)
Statement of Financial Position as at 31 October 2023

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

.........................................
Mrs Wendy Smith
Director

 

McRae Smith Limited

Notes to the Unaudited Financial Statements for the Year Ended 31 October 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:
46 Surrenden Crescent
Brighton
East Sussex
BN1 6WF

These financial statements were authorised for issue by the Board on 5 March 2024.

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.

Group accounts not prepared

The company satisfies the criteria set out in section 297 of the Companies Act 2014 to qualify as a small group.

Revenue recognition

Turnover comprises the fair value of the consideration received or receivable for the sale of goods and provision of services in the ordinary course of the company’s activities. Turnover is shown net of sales/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.

Tax

The tax expense for the period comprises current and deferred 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.

 

McRae Smith Limited

Notes to the Unaudited Financial Statements for the Year Ended 31 October 2023

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.

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.

Business combinations

Business combinations are accounted for using the purchase method. The consideration for each acquisition is measured at the aggregate of the fair values at acquisition date of assets given, liabilities incurred or assumed, and equity instruments issued by the group in exchange for control of the acquired, plus any costs directly attributable to the business combination. When a business combination agreement provides for an adjustment to the cost of the combination contingent on future events, the group includes the estimated amount of that adjustment in the cost of the combination at the acquisition date if the adjustment is probable and can be measured reliably.

Investments

Investments in equity shares which are publicly traded or where the fair value can be measured reliably are initially measured at fair value, with changes in fair value recognised in profit or loss. Investments in equity shares which are not publicly traded and where fair value cannot be measured reliably are measured at cost less impairment.


Interest income on debt securities, where applicable, is recognised in income using the effective interest method. Dividends on equity securities are recognised in income when receivable.

Cash and cash equivalents

Cash and cash equivalents comprise cash on hand and call deposits, and other short-term highly liquid investments that are readily convertible to a known amount of cash and are subject to an insignificant risk of change in value.

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.

 

McRae Smith Limited

Notes to the Unaudited Financial Statements for the Year Ended 31 October 2023

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.

Share capital

Ordinary shares are classified as equity. Equity instruments are measured at the fair value of the cash or other resources received or receivable, net of the direct costs of issuing the equity instruments. If payment is deferred and the time value of money is material, the initial measurement is on a present value basis.

Dividends

Dividend distribution to the company’s shareholders is recognised as a liability in the financial statements in the reporting period in which the dividends are declared.

3

Staff numbers

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

4

Investment properties

2023
£

At 1 November

1,446,000

Fair value adjustments

11,000

At 31 October

1,457,000

 

McRae Smith Limited

Notes to the Unaudited Financial Statements for the Year Ended 31 October 2023

Investment property is measured at fair value. The fair value reflects among other things rental income for current leases and other assumptions market participants would make when pricing the property under current market conditions. It is based on an assumption of 6% yield on rental income with no void periods.

There has been no valuation of investment property by an independent valuer.

5

Investments

2023
£

2022
£

Investments in subsidiaries

2

2

Subsidiaries

£

Cost or valuation

At 1 November 2022

2

Provision

Carrying amount

At 31 October 2023

2

At 31 October 2022

2

Details of undertakings

Details of the investments (including principal place of business of unincorporated entities) in which the company holds 20% or more of the nominal value of any class of share capital are as follows:

Undertaking

Registered office

Holding

Proportion of voting rights and shares held

     

2023

2022

Subsidiary undertakings

McRae Smith Lettings Limited

46 Surrenden Crescent
Brighton
BN1 6WF

England

ordinary

100%

100%

 

McRae Smith Limited

Notes to the Unaudited Financial Statements for the Year Ended 31 October 2023

Subsidiary undertakings

McRae Smith Lettings Limited

The principal activity of McRae Smith Lettings Limited is letting residential property.

6

Debtors

Current

2023
£

2022
£

Other debtors

305

476

 

McRae Smith Limited

Notes to the Unaudited Financial Statements for the Year Ended 31 October 2023

7

Creditors

Creditors: amounts falling due within one year

Note

2023
£

2022
£

Due within one year

 

Loans and borrowings

9

603,849

16,018

Amounts owed to group undertakings and undertakings in which the company has a participating interest

54,500

38,000

Taxation and social security

 

798

4,305

Accruals and deferred income

 

831

831

Other creditors

 

536,215

536,215

 

1,196,193

595,369

Creditors: amounts falling due after more than one year

Note

2023
£

2022
£

Due after one year

 

Loans and borrowings

9

-

601,705

8

Share capital

Allotted, called up and fully paid shares

 

2023

2022

 

No.

£

No.

£

ordinary shares of £1 each

100

100

100

100

         

9

Loans and borrowings

2023
£

2022
£

Non-current loans and borrowings

Bank borrowings

-

601,705

 

McRae Smith Limited

Notes to the Unaudited Financial Statements for the Year Ended 31 October 2023

2023
£

2022
£

Current loans and borrowings

Bank borrowings

603,849

16,018

Bank borrowings

The Bank Loan is denominated in £ with a nominal interest rate of 2.84% above the Bank of England base rate, and the final instalment is due on 25 September 2024. The carrying amount at year end is £603,849 (2022 - £613,494).

The bank loan is secured by a debenture over the land and associated property currently held within investment property and by a fixed and floating charge over all of the Company's assets.