0 01/09/2022 31/08/2023 2023-08-31 true false false false false false false true false false true false false false false false true false No description of principal activities is disclosed 2022-09-01 Sage Accounts Production 23.0 - FRS102_2023 xbrli:pure xbrli:shares iso4217:GBP 09398962 2022-09-01 2023-08-31 09398962 2023-08-31 09398962 2022-08-31 09398962 2021-09-01 2022-08-31 09398962 2022-08-31 09398962 2021-08-31 09398962 core:FurnitureFittingsToolsEquipment 2022-09-01 2023-08-31 09398962 bus:Director3 2022-09-01 2023-08-31 09398962 core:LandBuildings core:OwnedOrFreeholdAssets 2022-08-31 09398962 core:FurnitureFittingsToolsEquipment 2022-08-31 09398962 core:LandBuildings core:OwnedOrFreeholdAssets 2023-08-31 09398962 core:FurnitureFittingsToolsEquipment 2023-08-31 09398962 core:WithinOneYear 2023-08-31 09398962 core:WithinOneYear 2022-08-31 09398962 core:AfterOneYear 2023-08-31 09398962 core:AfterOneYear 2022-08-31 09398962 core:LandBuildings core:OwnedOrFreeholdAssets 2022-08-31 09398962 core:ShareCapital 2023-08-31 09398962 core:ShareCapital 2022-08-31 09398962 core:HedgingReserve 2023-08-31 09398962 core:HedgingReserve 2022-08-31 09398962 core:RetainedEarningsAccumulatedLosses 2023-08-31 09398962 core:RetainedEarningsAccumulatedLosses 2022-08-31 09398962 core:LandBuildings core:OwnedOrFreeholdAssets 2022-09-01 2023-08-31 09398962 core:FurnitureFittingsToolsEquipment 2022-08-31 09398962 bus:SmallEntities 2022-09-01 2023-08-31 09398962 bus:AuditExempt-NoAccountantsReport 2022-09-01 2023-08-31 09398962 bus:SmallCompaniesRegimeForAccounts 2022-09-01 2023-08-31 09398962 bus:PrivateLimitedCompanyLtd 2022-09-01 2023-08-31 09398962 bus:FullAccounts 2022-09-01 2023-08-31 09398962 core:EntitiesControlledByKeyManagementPersonnel 2022-09-01 2023-08-31 09398962 core:EntitiesControlledByKeyManagementPersonnel 2021-09-01 2022-08-31 09398962 core:EntityControlledByKeyManagementPersonnel1 2022-09-01 2023-08-31 09398962 core:EntityControlledByKeyManagementPersonnel2 2022-09-01 2023-08-31 09398962 core:EntityControlledByKeyManagementPersonnel1 2023-08-31 09398962 core:EntityControlledByKeyManagementPersonnel1 2022-08-31 09398962 core:EntityControlledByKeyManagementPersonnel2 2022-08-31 09398962 core:AfterOneYear 2022-09-01 2023-08-31
Merit Property Limited
Unaudited filleted financial statements
31 August 2023
Company registration number 09398962
Merit Property Limited
Contents
Statement of financial position
Notes to the financial statements
Merit Property Limited
Statement of financial position
31 August 2023
2023 2022
Note £ £ £ £
Fixed assets
Tangible assets 4 10,331,447 9,289,851
_______ _______
10,331,447 9,289,851
Current assets
Debtors 5 1,174,873 575,323
Cash at bank and in hand 255 6,814
_______ _______
1,175,128 582,137
Creditors: amounts falling due
within one year 6 ( 479,144) ( 609,976)
_______ _______
Net current assets/(liabilities) 695,984 ( 27,839)
_______ _______
Total assets less current liabilities 11,027,431 9,262,012
Creditors: amounts falling due
after more than one year 7 ( 4,492,818) ( 2,565,404)
Provisions for liabilities ( 1,370,950) ( 1,370,950)
_______ _______
Net assets 5,163,663 5,325,658
_______ _______
Capital and reserves
Called up share capital 300 300
Fair value reserve 4,112,850 4,112,850
Profit and loss account 1,050,513 1,212,508
_______ _______
Shareholders funds 5,163,663 5,325,658
_______ _______
For the year ending 31 August 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.
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 comprehensive income has not been delivered.
These financial statements were approved by the board of directors and authorised for issue on 02 April 2024 , and are signed on behalf of the board by:
Richard Ashford
Director
Company registration number: 09398962
Merit Property Limited
Notes to the financial statements
Year ended 31 August 2023
1. General information
The company is a private company limited by shares, registered in England & Wales. The address of the registered office is Merit House, Units 1-4 Whitewall Road, Medway City Estate, Rochester Kent, ME2 4WS.
2. Statement of compliance
These financial statements have been prepared in compliance with the provisions of FRS 102, Section 1A, 'The Financial Reporting Standard applicable in the UK and 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
These accounts have been prepared on the going concern basis.
Turnover
Turnover is measured at the fair value of the rent received or receivable and services rendered, net of discounts and Value Added Tax.
Taxation
The taxation expense represents the aggregate amount of current and deferred tax recognised in the reporting period. Tax is recognised in the statement of comprehensive income, except to the extent that it relates to items recognised in other comprehensive income or directly in capital and reserves. In this case, tax is recognised in other comprehensive income or directly in capital and reserves, 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 are 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. An increase in the carrying amount of an asset as a result of a revaluation, is recognised in other comprehensive income and accumulated in capital and reserves, except to the extent it reverses a revaluation decrease of the same asset previously recognised in profit or loss. A decrease in the carrying amount of an asset as a result of revaluation is recognised in other comprehensive income to the extent of any previously recognised revaluation increase accumulated in capital and reserves in respect of that asset. Where a revaluation decrease exceeds the accumulated revaluation gains accumulated in capital and reserves in respect of that asset, the excess shall be recognised in profit or loss.
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:
Freehold property - Investment properties are depreciated on a straight line basis over 50 years to net realisable value
Fittings fixtures and equipment - 4 % straight line
If there is an indication that there has been a significant change in depreciation rate, useful life or residual value of tangible assets, the depreciation is revised prospectively to reflect the new estimates.
Investment property
Investment property is measured initially at cost, which includes purchase price and any directly attributable expenditure. Investment property is revalued to its fair value at each reporting date and any changes in fair value are recognised in profit or loss.
Impairment
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. When it is not possible to estimate the recoverable amount of an individual asset, an estimate is made of the recoverable amount of the cash-generating unit to which the asset belongs. The cash-generating unit is the smallest identifiable group of assets that includes the asset and generates cash inflows that are largely independent of the cash inflows from other assets or groups of assets.
Provisions
Provisions are recognised when the entity has an obligation at the reporting date as a result of a past event; it is probable that the entity will be required to transfer economic benefits in settlement and the amount of the obligation can be estimated reliably. Provisions are recognised as a liability in the statement of financial position and the amount of the provision as an expense. Provisions are initially measured at the best estimate of the amount required to settle the obligation at the reporting date and subsequently reviewed at each reporting date and adjusted to reflect the current best estimate of the amount that would be required to settle the obligation. Any adjustments to the amounts previously recognised are recognised in profit or loss unless the provision was originally recognised as part of the cost of an asset. When a provision is measured at the present value of the amount expected to be required to settle the obligation, the unwinding of the discount is recognised in finance costs in profit or loss in the period it arises.
Financial instruments
The Company only enters into basic financial instrument transactions that result in the recognition of financial assets and liabilities like trade and other debtors and creditors, loans from banks and other third parties and loans to related parties.
4. Tangible assets
Freehold property Fixtures, fittings and equipment Total
£ £ £
Cost
At 1 September 2022 9,090,000 201,870 9,291,870
Additions 1,049,671 - 1,049,671
_______ _______ _______
At 31 August 2023 10,139,671 201,870 10,341,541
_______ _______ _______
Depreciation
At 1 September 2022 - 2,019 2,019
Charge for the year - 8,075 8,075
_______ _______ _______
At 31 August 2023 - 10,094 10,094
_______ _______ _______
Carrying amount
At 31 August 2023 10,139,671 191,776 10,331,447
_______ _______ _______
At 31 August 2022 9,090,000 199,851 9,289,851
_______ _______ _______
Investment property
Included within the above is investment property measured at fair value as follows:
£
At 1 September 2022 9,090,000
Additions 1,049,671
_______
At 31 August 2023 10,139,671
_______
Tangible assets held at valuation
In respect of tangible assets held at valuation, the aggregate cost, depreciation and comparable carrying amount that would have been recognised if the assets had been carried under the historical cost model are as follows:
Freehold property Total
£ £
At 31 August 2023
Aggregate cost 4,655,871 4,655,871
Aggregate depreciation - -
_______ _______
Carrying amount 4,655,871 4,655,871
_______ _______
At 31 August 2022
Aggregate cost 3,606,200 3,606,200
Aggregate depreciation - -
_______ _______
Carrying amount 3,606,200 3,606,200
_______ _______
5. Debtors
2023 2022
£ £
Trade debtors 43,529 24,990
Other debtors 1,131,344 550,333
_______ _______
1,174,873 575,323
_______ _______
6. Creditors: amounts falling due within one year
2023 2022
£ £
Bank loans and overdrafts 269,485 144,831
Trade creditors 19,799 12,509
Other creditors 189,860 452,636
_______ _______
479,144 609,976
_______ _______
7. Creditors: amounts falling due after more than one year
2023 2022
£ £
Bank loans and overdrafts 4,355,364 2,406,199
Other creditors 137,454 159,205
_______ _______
4,492,818 2,565,404
_______ _______
The bank loan is secured against a fixed and floating charge held over the Companies assets .
Included within creditors: amounts falling due after more than one year is an amount of £ 3,405,369 (2022 £ - ) in respect of liabilities payable or repayable by instalments which fall due for payment after more than five years from the reporting date.
Tha bank loan' final repayment is due in November 2042. Interest is payable at 2.75% p.a above base rate.
8. Related party transactions
During the year the company entered into the following transactions with related parties:
Transaction value Balance owed by/(owed to)
2023 2022 2023 2022
£ £ £ £
Rent received from connected Companies 159,594 101,777 - -
Amounts owed from connected companies - - 1,082,256 510,367
Amounts owed to connected Companies - - ( 166,909) ( 431,978)
_______ _______ _______ _______
The directors of this company have controlling interests in the companies involved in the transactions and loans detailed above. All transactions have been carried out at market rate and the loans have been made interest free, unsecured and have no fixed repayment schedules.
9. Going concern
As at 31 August 2023 the balance sheet shows net current liabilities. These accounts have been prepared on the going concern basis as the director has agreed to continue to support the Company to ensure it is able to meets its debts as they fall due.