REGISTERED NUMBER: |
Financial Statements for the Year Ended 30 September 2023 |
for |
Real Estate And Property Investment |
Company, Limited |
REGISTERED NUMBER: |
Financial Statements for the Year Ended 30 September 2023 |
for |
Real Estate And Property Investment |
Company, Limited |
Real Estate And Property Investment |
Company, Limited (Registered number: 00222618) |
Contents of the Financial Statements |
for the Year Ended 30 September 2023 |
Page |
Company Information | 1 |
Statement of Financial Position | 2 |
Notes to the Financial Statements | 3 |
Real Estate And Property Investment |
Company, Limited |
Company Information |
for the Year Ended 30 September 2023 |
DIRECTORS: |
SECRETARY: |
REGISTERED OFFICE: |
REGISTERED NUMBER: |
AUDITORS: |
Lake House |
Market Hill |
Royston |
Hertfordshire |
SG8 9JN |
PROPERTY CONSULTANTS: |
30a Green Lane |
Northwood |
Middlesex |
HA6 2QB |
Real Estate And Property Investment |
Company, Limited (Registered number: 00222618) |
Statement of Financial Position |
30 September 2023 |
30.9.23 | 30.9.22 |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Investments | 4 |
Investment property | 5 |
CURRENT ASSETS |
Debtors | 6 |
Cash at bank |
CREDITORS |
Amounts falling due within one year | 7 |
NET CURRENT ASSETS |
TOTAL ASSETS LESS CURRENT LIABILITIES |
PROVISIONS FOR LIABILITIES | 9 |
NET ASSETS |
CAPITAL AND RESERVES |
Called up share capital | 10 | 150,000 | 150,000 |
Revaluation reserve | 11 | 961,383 | 945,483 |
Capital reserve | 11 | 705,218 | 705,218 |
Retained earnings | 11 | 232,163 | 263,311 |
SHAREHOLDERS' FUNDS |
In accordance with Section 444 of the Companies Act 2006, the Income Statement has not been delivered. |
The financial statements were approved by the Board of Directors and authorised for issue on |
Real Estate And Property Investment |
Company, Limited (Registered number: 00222618) |
Notes to the Financial Statements |
for the Year Ended 30 September 2023 |
1. | STATUTORY INFORMATION |
Real Estate And Property Investment Company, Limited is a |
2. | ACCOUNTING POLICIES |
Basis of preparing the financial statements |
Significant judgements and estimates |
The preparation of the financial statements requires management to make judgements, estimates and assumptions which impact on the carrying amounts of assets and liabilities. Estimates and judgements are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. 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 where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods. |
The company makes estimates and assumptions concerning the future. The resulting accounting estimates will, by definition, seldom equal the related actual results. The estimates and assumptions that have a significant risk of causing a material adjustment to carrying amounts of assets and liabilities within the next financial year is addressed below. |
Valuation of investment properties: |
The valuation of the investment properties is on the basis of a valuation carried out by the directors of the company. The valuation was made on an open market basis by reference to market evidence of transaction prices of similar properties. |
Rental income |
Rental income under operating leases is charged to the profit and loss account on a straight-line basis over the period of the lease. |
Real Estate And Property Investment |
Company, Limited (Registered number: 00222618) |
Notes to the Financial Statements - continued |
for the Year Ended 30 September 2023 |
2. | ACCOUNTING POLICIES - continued |
Financial instruments |
The company has elected to apply the provisions of Section 11 'Basic Financial Instruments' of FRS 102 to all of its financial instruments. |
Financial instruments are recognised in the company's statement of financial position when the company becomes party to the contractual provisions of the instrument. |
Basic financial assets |
Basic financial assets, which include debtors, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised. |
Basic financial liabilities |
Basic financial liabilities, including creditors and loans that are classified as debt, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised. |
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method. |
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. Provision is made for potential tax due on the revalued amount of the freehold property. |
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. |
Real Estate And Property Investment |
Company, Limited (Registered number: 00222618) |
Notes to the Financial Statements - continued |
for the Year Ended 30 September 2023 |
2. | ACCOUNTING POLICIES - continued |
Investment property |
The Companies Act 2006 requires all properties to be depreciated. However, this requirement conflicts with the generally accepted accounting principle set out in FRS 102 1A. The directors consider that, as these properties are not held for consumption, but for their investment potential, to depreciate them would not give a true and fair view, and that it is necessary to adopt the investment policy under FRS 102 1A in order to give a true and fair view as follows: |
Properties are initially recognised at cost, and subsequently revalued to fair value at each reporting date through the income statement. |
If this departure from the Act had not been made, the profit for the financial year would have been decreased by depreciation. However, the amount of depreciation cannot be reasonably quantified because depreciation is only one of many factors reflected in the annual valuation and the amount which might otherwise have been shown cannot be separately identified or quantified. |
Capital reserve |
Although the company does not fulfil all the criteria to be classified as an investment company, under the provisions of the Articles of Association certain profits rising from the disposal of properties are not available for distribution as dividend and are to be treated as non distributable within the capital reserve. Accordingly the directors are of opinion that this treatment of profits and losses on certain property disposals is appropriate to the company's circumstance and is necessary in order to present a true and fair view. |
Equity instruments |
The called up share capital is recognised at the value of cash receivable on being fully paid. Dividends are paid to the shareholders at the discretion of the directors. |
Fixed asset investments |
The fixed asset investments are included at fair value and revalued through the profit and loss. |
Revaluation reserve movement |
The movement in the revaluation reserve shown on the Statement of Changes in Equity is due to the transfer of the investment property and fixed asset investment revaluations and the associated deferred tax movement from distributable retained earnings to the non-distributable revaluation reserve. |
3. | EMPLOYEES AND DIRECTORS |
The average number of employees during the year was |
4. | FIXED ASSET INVESTMENTS |
Unlisted |
investments |
£ |
COST OR VALUATION |
At 1 October 2022 |
Revaluations |
At 30 September 2023 |
NET BOOK VALUE |
At 30 September 2023 |
At 30 September 2022 |
Real Estate And Property Investment |
Company, Limited (Registered number: 00222618) |
Notes to the Financial Statements - continued |
for the Year Ended 30 September 2023 |
4. | FIXED ASSET INVESTMENTS - continued |
Cost or valuation at 30 September 2023 is represented by: |
Unlisted |
investments |
£ |
Valuation in 2015 | 44,462 |
Valuation in 2020 | 11,748 |
Valuation in 2023 | 9,612 |
Cost | 394 |
66,216 |
5. | INVESTMENT PROPERTY |
Total |
£ |
FAIR VALUE |
At 1 October 2022 |
Revaluations | 11,587 |
At 30 September 2023 |
NET BOOK VALUE |
At 30 September 2023 |
At 30 September 2022 |
The value of the investment properties is based on the estimated open market value. The valuation was made on 30 September 2023 and has been performed by the directors of the Company who have significant knowledge of property markets. A deferred tax liability on the revaluation has been recognised in the accounts. |
6. | DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
30.9.23 | 30.9.22 |
£ | £ |
Trade debtors |
Other debtors |
VAT |
Prepayments and accrued income |
7. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
30.9.23 | 30.9.22 |
£ | £ |
Trade creditors |
Tax |
VAT | - | 2,604 |
Other creditors |
Income in advance | 25,507 | 32,681 |
Accrued expenses |
Real Estate And Property Investment |
Company, Limited (Registered number: 00222618) |
Notes to the Financial Statements - continued |
for the Year Ended 30 September 2023 |
8. | LEASING AGREEMENTS |
Operating leases represent leases to third parties. The leases are negotiated over terms of between 3 and 20 years and are subject to provisions for rent reviews according to prevailing market conditions. |
At the year end date the company had contracted with tenants minimum lease payments relating to non-cancellable operating leases amounting to £794,765 (2022 - £846,326). |
9. | PROVISIONS FOR LIABILITIES |
30.9.23 | 30.9.22 |
£ | £ |
Deferred tax | 100,910 | 95,611 |
Deferred |
tax |
£ |
Balance at 1 October 2022 |
Property revaluation | 2,896 |
Investment revaluation | 2,403 |
Balance at 30 September 2023 |
10. | CALLED UP SHARE CAPITAL |
Allotted, issued and fully paid: |
Number: | Class: | Nominal | 30.9.23 | 30.9.22 |
value: | £ | £ |
Ordinary | £1 | 150,000 | 150,000 |
11. | RESERVES |
Retained | Revaluation | Capital |
earnings | reserve | reserve | Totals |
£ | £ | £ | £ |
At 1 October 2022 | 263,311 | 945,483 | 705,218 | 1,914,012 |
Profit for the year |
Dividends | ( |
) | ( |
) |
Transfer to non distributable reserve |
(15,900 |
) |
15,900 |
- |
- |
At 30 September 2023 | 232,163 | 961,383 | 705,218 | 1,898,764 |
The Revaluation reserve is made up of those retained earnings not available for distribution to shareholders. |
The capital reserve is made up of the accumulated profits on disposal of properties. |
12. | DISCLOSURE UNDER SECTION 444(5B) OF THE COMPANIES ACT 2006 |
The Report of the Auditors was unqualified. |
for and on behalf of |
Real Estate And Property Investment |
Company, Limited (Registered number: 00222618) |
Notes to the Financial Statements - continued |
for the Year Ended 30 September 2023 |
13. | OFF-BALANCE SHEET ARRANGEMENTS |
Of the investment properties included in the accounts at a valuation of £1,809,197 (2022 - £1,797,610), £984,642 (2022 - £1,053,999) are held by way of long leaseholds. The risks and rewards of the long leaseholds are all with the company. |
The investment properties held by the company including those held by way of long leaseholds are all leased to tenants under operating leases. |
14. | RELATED PARTY DISCLOSURES |
During the year, total dividends of £5,709 (2022: £4,829) were paid to the directors. |
15. | ULTIMATE CONTROLLING PARTY |
There is no overall controlling party. |