Company registration number 11447103 (England and Wales)
ERRIO PROPERTIES LIMITED
UNAUDITED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JULY 2023
PAGES FOR FILING WITH REGISTRAR
ERRIO PROPERTIES LIMITED
CONTENTS
Page
Balance sheet
1 - 2
Notes to the financial statements
3 - 6
ERRIO PROPERTIES LIMITED
BALANCE SHEET
- 1 -
2023
2022
Notes
£
£
£
£
Fixed assets
Tangible assets
3
1,338
1,784
Investment property
4
1,319,190
1,319,190
1,320,528
1,320,974
Current assets
Debtors
5
7,553
7,315
Cash at bank and in hand
2,514
1,783
10,067
9,098
Creditors: amounts falling due within one year
6
(761,599)
(763,586)
Net current liabilities
(751,532)
(754,488)
Total assets less current liabilities
568,996
566,486
Creditors: amounts falling due after more than one year
7
(551,264)
(551,265)
Provisions for liabilities
(14,440)
(14,440)
Net assets
3,292
781
Capital and reserves
Called up share capital
2
2
Non-distributable profits reserve
8
76,000
76,000
Distributable profit and loss reserves
(72,710)
(75,221)
Total equity
3,292
781
The directors of the company have elected not to include a copy of the profit and loss account within the financial statements.true
For the financial year ended 31 July 2023 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.
The directors acknowledge their responsibilities for complying with the requirements of the Companies Act 2006 with respect to accounting records and the preparation of financial statements.
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.
These financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime.
ERRIO PROPERTIES LIMITED
BALANCE SHEET (CONTINUED)
- 2 -
The financial statements were approved by the board of directors and authorised for issue on 4 April 2024 and are signed on its behalf by:
Mrs C Daly
Director
Company registration number 11447103 (England and Wales)
ERRIO PROPERTIES LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JULY 2023
- 3 -
1
Accounting policies
Company information
Errio Properties Limited is a private company limited by shares incorporated in England and Wales. The registered office is 17 Pennine Parade, Pennine Drive, London, NW2 1NT.
1.1
Accounting convention
These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006 as applicable to companies subject to the small companies regime. The disclosure requirements of section 1A of FRS 102 have been applied other than where additional disclosure is required to show a true and fair view.
The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.
The financial statements have been prepared under the historical cost convention, [modified to include the revaluation of freehold properties and to include investment properties and certain financial instruments at fair value]. The principal accounting policies adopted are set out below.
1.2
Going concern
These financial statements have been prepared on a going concern basis which assumes that thetrue company will continue in operational existence for the foreseeable future. The validity of this assumption is dependent upon the continued support from its directors, who have indictated that they will continue to support Errio Properties Limited for the foreseeable future and to enable it to meet its day-to-day commitments from cash flows.
As a consequence, the directors believe that the company is well placed to manage its business risks successfully despite the current uncertain economic outlook. In view of the above, and at the time of approving the financial statements, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Accordingly, they continue to adopt the going concern basis in preparing the annual report and accounts.
If the company were unable to trade, adjustments would have to be made to reduce the value of the assets to their recoverable amounts, to provide for further liabilities that might arise.
1.3
Tangible fixed assets
Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.
Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:
Fixtures and fittings
25% Reducing Balance
Computers
25% Reducing Balance
The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is credited or charged to profit or loss.
1.4
Investment property
Investment property, which is property held to earn rentals and/or for capital appreciation, is initially recognised at cost, which includes the purchase cost and any directly attributable expenditure. Subsequently it is measured at fair value at the reporting end date. Changes in fair value are recognised in profit or loss.
ERRIO PROPERTIES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2023
1
Accounting policies
(Continued)
- 4 -
1.5
Cash and cash equivalents
Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.
1.6
Financial instruments
The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the company's balance sheet when the company becomes party to the contractual provisions of the instrument.
1.7
Equity instruments
Equity instruments issued by the company are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.
1.8
Employee benefits
The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.
The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.
Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.
1.9
Leases
Rental income from operating leases is recognised on a straight line basis over the term of the relevant lease. Initial direct costs incurred in negotiating and arranging an operating lease are added to the carrying amount of the leased asset and recognised on a straight line basis over the lease term.
1.10
Government grants
Government grants are recognised at the fair value of the asset received or receivable when there is reasonable assurance that the grant conditions will be met and the grants will be received.
A grant that specifies performance conditions is recognised in income when the performance conditions are met. Where a grant does not specify performance conditions it is recognised in income when the proceeds are received or receivable. A grant received before the recognition criteria are satisfied is recognised as a liability.
2
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2023
2022
Number
Number
Total
3
3
ERRIO PROPERTIES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2023
- 5 -
3
Tangible fixed assets
Plant and machinery etc
£
Cost
At 1 August 2022 and 31 July 2023
4,942
Depreciation and impairment
At 1 August 2022
3,158
Depreciation charged in the year
446
At 31 July 2023
3,604
Carrying amount
At 31 July 2023
1,338
At 31 July 2022
1,784
4
Investment property
2023
£
Fair value
At 1 August 2022 and 31 July 2023
1,319,190
Investment property comprises of a freehold property. The fair value of the investment property includes the purchase cost and any directly attributable expenditure, The directors have re-valued the property at the end of the year . The valuation was made on an open market value basis by reference to market evidence of transaction prices for similar properties. Investment property with a carrying amount of £1,319,190 have been pledged to secure borrowings of the company.
5
Debtors
2023
2022
Amounts falling due within one year:
£
£
Trade debtors
360
Other debtors
7,553
6,955
7,553
7,315
ERRIO PROPERTIES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2023
- 6 -
6
Creditors: amounts falling due within one year
2023
2022
£
£
Trade creditors
102
Taxation and social security
28
Other creditors
761,469
763,586
761,599
763,586
7
Creditors: amounts falling due after more than one year
2023
2022
£
£
Other creditors
551,264
551,265
There is a legal charge dated 6th February 2021 in favour of the lender, Barclays Security Trustee Limited, to secure loan facilities. This comprises fixed charge over the company's property included within investment properties.
There is a legal charge dated 13th April 2021 in favour of the lender, Barclays Security Trustee Limited, to secure loan facilities. This comprises fixed & floating charge over the company's property included within investment properties.
There is a legal charge dated 5th May 2022 in favour of the lender, Barclays Security Trustee Limited, to secure loan facilities. This comprises fixed & floating charge over the company's property included within investment properties.
At 31st July 2023, of the creditors falling due within and after more than one year, the bank loans totalling £551,265 are secured.
8
Non-distributable profits reserve
2023
2022
£
£
At the beginning and end of the year
76,000
76,000