Company registration number 03440710 (England and Wales)
M J CHURCH PROPERTIES LIMITED
UNAUDITED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2023
PAGES FOR FILING WITH REGISTRAR
M J CHURCH PROPERTIES LIMITED
COMPANY INFORMATION
Directors
Mr M J Church
Mrs P J Church
Secretary
Mrs P J Church
Company number
03440710
Registered office
M J Church Properties Ltd
Star Farm
Marshfield
CHIPPENHAM
Wiltshire
SN14 8LH
Accountants
Old Mill Accountancy Limited
Unit 2
Greenways Business Park
Bellinger Close
CHIPPENHAM
Wiltshire
England
SN15 1BN
M J CHURCH PROPERTIES LIMITED
CONTENTS
Page
Balance sheet
1 - 2
Notes to the financial statements
3 - 6
M J CHURCH PROPERTIES LIMITED
BALANCE SHEET
AS AT 30 SEPTEMBER 2023
30 September 2023
- 1 -
2023
2022
Notes
£
£
£
£
Fixed assets
Investment property
3
6,610,000
6,610,000
Current assets
Debtors
4
1,782,102
1,843,766
Cash at bank and in hand
157,480
411,720
1,939,582
2,255,486
Creditors: amounts falling due within one year
5
(3,495,778)
(2,164,157)
Net current (liabilities)/assets
(1,556,196)
91,329
Total assets less current liabilities
5,053,804
6,701,329
Creditors: amounts falling due after more than one year
6
(1,198,000)
(3,087,000)
Provisions for liabilities
(142,925)
(142,925)
Net assets
3,712,879
3,471,404
Capital and reserves
Called up share capital
7
2
2
Profit and loss reserves
3,712,877
3,471,402
Total equity
3,712,879
3,471,404
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 30 September 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.
M J CHURCH PROPERTIES LIMITED
BALANCE SHEET (CONTINUED)
AS AT 30 SEPTEMBER 2023
30 September 2023
- 2 -
The financial statements were approved by the board of directors and authorised for issue on 6 March 2024 and are signed on its behalf by:
Mrs P J Church
Director
Company registration number 03440710 (England and Wales)
M J CHURCH PROPERTIES LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2023
- 3 -
1
Accounting policies
Company information
M J Church Properties Limited is a private company limited by shares incorporated in England and Wales. The registered office is M J Church Properties Ltd, Star Farm, Marshfield, CHIPPENHAM, Wiltshire, SN14 8LH.
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
Turnover
Turnover is recognised at the fair value of the consideration received or receivable from property letting provided in the normal course of business, and is shown net of VAT and other sales related taxes. The fair value of consideration takes into account returns, discounts and rebates and represents rental income in the period that is earned excluding VAT.
When cash inflows are deferred and represent a financing arrangement, the fair value of the consideration is the present value of the future receipts. The difference between the fair value of the consideration and the nominal amount received is recognised as interest income.
Rental income from investment property leased out under Assured Shorthold Tenancy Agreements is recognised in the statement of income and retained earnings on a straight-line basis over the term of the lease, when:
The amount of the revenue can be reliably measured;
It is probable that future economic benefit will flow to the entity;
Specific criteria have been met for each of the company's activities.
1.3
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. Deferred taxation is provided on these gains at the rate expected to apply when the property is sold.
1.4
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.
M J CHURCH PROPERTIES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2023
1
Accounting policies
(Continued)
- 4 -
1.5
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.
Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
Basic financial assets
Basic financial assets, which include debtors and cash and bank balances, 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.
Classification of financial liabilities
Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.
Basic financial liabilities
Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference shares 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.
Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.
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.
1.6
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.
1.7
Taxation
The tax expense represents the sum of the tax currently payable and deferred tax.
Current tax
The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.
M J CHURCH PROPERTIES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2023
1
Accounting policies
(Continued)
- 5 -
Deferred tax
Deferred tax liabilities are generally recognised for all timing differences and 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. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.
The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset when the company has a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.
2
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2023
2022
Number
Number
Total
2
2
3
Investment property
2023
£
Fair value
At 1 October 2022 and 30 September 2023
6,610,000
The investment properties were valued at the year end on an open market and existing use basis by the directors who have significant experience and expertise in the property market.
4
Debtors
2023
2022
Amounts falling due within one year:
£
£
Trade debtors
9,224
22,218
Other debtors
1,760,120
1,803,120
Prepayments and accrued income
12,758
18,428
1,782,102
1,843,766
An amount of £123,120 (2022: £123,120) held in other debtors is a loan issued to a third party. The balance is secured over property of the borrower.
M J CHURCH PROPERTIES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2023
- 6 -
5
Creditors: amounts falling due within one year
2023
2022
£
£
Bank loans
1,889,000
252,000
Corporation tax
68,141
81,749
Other creditors
1,531,877
1,816,058
Accruals and deferred income
6,760
14,350
3,495,778
2,164,157
6
Creditors: amounts falling due after more than one year
2023
2022
£
£
Bank loans and overdrafts
1,198,000
3,087,000
The bank loan is secured with an unlimited debenture in favour of the bank and fixed charges over the investment properties owned by the Company.
7
Called up share capital
2023
2022
2023
2022
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
2
2
2
2
8
Events after the reporting date
On 10 October 2023 a one-off loan repayment amount of £1,637,000 was agreed with the bank and paid to reduce the loan balance. Subsequently the amount recognised in creditors due within one year includes this repayment amount.
9
Related party transactions
At the year end, the company was owed £1,637,000 (2022: £1,680,000) by a company under common control. The loan is interest free and receivable on demand.
At the year end, the directors were owed £1,531,877 (2022: £1,816,058 ) included within other creditors. This loan is interest free and repayable on demand.