REGISTERED NUMBER: |
DIRECTORS' REPORT AND |
UNAUDITED FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 31 OCTOBER 2023 |
FOR |
MAYFLOWER MANHATTAN LIMITED |
REGISTERED NUMBER: |
DIRECTORS' REPORT AND |
UNAUDITED FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 31 OCTOBER 2023 |
FOR |
MAYFLOWER MANHATTAN LIMITED |
MAYFLOWER MANHATTAN LIMITED (REGISTERED NUMBER: 01520231) |
CONTENTS OF THE FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 31 OCTOBER 2023 |
Page |
Company Information | 1 |
Chairman's Statement | 2 |
Directors' Report | 3 |
Statement of Financial Position | 5 |
Notes to the Financial Statements | 7 |
MAYFLOWER MANHATTAN LIMITED |
COMPANY INFORMATION |
FOR THE YEAR ENDED 31 OCTOBER 2023 |
DIRECTORS: |
SECRETARY: |
REGISTERED OFFICE: |
REGISTERED NUMBER: |
ACCOUNTANTS: |
Business Advisers and Accountants |
Unit 2.02 High Weald House, |
Glovers End |
Bexhill |
East Sussex |
United Kingdom |
TN39 5ES |
BANKERS: |
440 Strand |
London WC2 |
MAYFLOWER MANHATTAN LIMITED (REGISTERED NUMBER: 01520231) |
CHAIRMAN'S STATEMENT |
FOR THE YEAR ENDED 31 OCTOBER 2023 |
The Chairman presents his Statement for the year. |
Review |
Much of the company's focus in the year has been on two major matters. Firstly, implementing exacting building safety measures pursuant to legislation enacted 'Post Grenfell'. Secondly, on the complex process of attaining planning permission for an additional floor of flats on an existing 7 storey building in central Cambridge and removal of the mobile network operators in situ. This has been prolonged due to various planning technicalities. The application has the support of the Council's Officers and we anticipate permission will be granted before the company's current year end. As well as providing some fine new homes, the proposal promises to significantly transform a prosaic 1960s style block into an accomplished building. The architects and professional team deserve much credit. |
As the company's current concentration is on purpose-built flats, conversion of a detached office building into flats in Peterborough, referred to last year, is being undertaken by a third party. |
Reflecting a quieter year in sales activity, pre-tax profit was £279,864 (2022: £451,671). |
Economy |
The worrying level of RPI inflation, touching 14% in late 2022 and early 2023, appears to be under control but the resultant higher level of interest rates has restricted ability to purchase new homes. Partly as a result, demand for shorter term residential tenancies continues to be exceptionally strong. |
Housing Sector |
A succession of 16 Housing Ministers from May 2010 is testimony to the drift and absence of direction faced by a key sector in the UK that should be delivering significant growth. Much of the inability to provide the widely agreed upon number of new homes - reaching a nadir following the scrapping of house-building targets in December 2022 - stemmed from a political impasse. |
The recent change in government promises reinvigoration to the housing industry. An overhaul is welcomed by the many specialist professions, skilled trades and builders to bring clarity, confidence and competence to central policy formation. The new administration offers the prospect of well-considered long-term measures to address the pressing need for more homes in the UK. As well as refinement to the planning process, a critical review of expansion into the countryside is overdue. Only 6% (7% including gardens) of the UK land mass is urbanised. Flying over south England - the most populated part of the UK - the typical vista is of a patchwork of fields with only an occasional settlement appearing on the horizon. It is possible to utilise rural land adjoining built-up areas without creating a sense of urban sprawl: it requires expert design and appropriate infrastructure together with - a component wanting in some incursions - a suitable and substantial landscape treatment. |
Conclusion |
The company's vocation is to provide apartments in safe and well managed residential estates that are scenically uplifting. Attractive, leafy and green spaces are, in our view, an important visual amenity for flat dwellers. Sensitive landscaping can also significantly inform the value of properties. |
Nigel Grimshaw MA (Cantab) |
Executive Chairman. July 2024 |
MAYFLOWER MANHATTAN LIMITED (REGISTERED NUMBER: 01520231) |
DIRECTORS' REPORT |
FOR THE YEAR ENDED 31 OCTOBER 2023 |
The directors present their report with the financial statements of the company for the year ended 31 October 2023. |
PRINCIPAL ACTIVITY |
The principal activity of the company in the year under review was that of owning, developing and maintaining estates of flats. |
Mayflower Manhattan Limited was incorporated on 3 October 1980. The company has made a profit every year since incorporation. |
The Company was conferred the status of an approved body by the Secretary of State for the Environment in 1983 (SI 1983/840), since when it has sought to support the government's housing policy objectives in the private sector. |
DIRECTORS |
The directors shown below have held office during the whole of the period from 1 November 2022 to the date of this report. |
POLITICAL DONATIONS AND EXPENDITURE |
£2,500 was given during the year to local Cambridge charities for the homeless. In accordance with company policy, no political donations were made. |
STATEMENT OF DIRECTORS' RESPONSIBILITIES |
The directors are responsible for preparing the Annual Report and the financial statements in accordance with applicable law and regulations. |
Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to: |
- | select suitable accounting policies and then apply them consistently; |
- | make judgements and accounting estimates that are reasonable and prudent; |
- | prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business. |
The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company's transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. |
MAYFLOWER MANHATTAN LIMITED (REGISTERED NUMBER: 01520231) |
DIRECTORS' REPORT |
FOR THE YEAR ENDED 31 OCTOBER 2023 |
This report has been prepared in accordance with the provisions of Part 15 of the Companies Act 2006 relating to small companies. |
ON BEHALF OF THE BOARD: |
MAYFLOWER MANHATTAN LIMITED (REGISTERED NUMBER: 01520231) |
STATEMENT OF FINANCIAL POSITION |
31 OCTOBER 2023 |
2023 | 2022 |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Tangible assets | 4 |
Investment property | 5 |
CURRENT ASSETS |
Stocks |
Debtors | 6 |
Cash at bank |
CREDITORS |
Amounts falling due within one year | 7 |
NET CURRENT ASSETS |
TOTAL ASSETS LESS CURRENT LIABILITIES |
CREDITORS |
Amounts falling due after more than one year | 8 |
NET ASSETS |
CAPITAL AND RESERVES |
Called up share capital | 9 |
Investment property revaluation reserve | 10 |
Retained earnings |
SHAREHOLDERS' FUNDS |
MAYFLOWER MANHATTAN LIMITED (REGISTERED NUMBER: 01520231) |
STATEMENT OF FINANCIAL POSITION - continued |
31 OCTOBER 2023 |
The directors acknowledge their responsibilities for: |
(a) | ensuring that the company keeps accounting records which comply with Sections 386 and 387 of the Companies Act 2006 and |
(b) | preparing financial statements which give a true and fair view of the state of affairs of the company as at the end of each financial year and of its profit or loss for each financial year in accordance with the requirements of Sections 394 and 395 and which otherwise comply with the requirements of the Companies Act 2006 relating to financial statements, so far as applicable to the company. |
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 |
MAYFLOWER MANHATTAN LIMITED (REGISTERED NUMBER: 01520231) |
NOTES TO THE FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 31 OCTOBER 2023 |
1. | STATUTORY INFORMATION |
Mayflower Manhattan Limited is a |
2. | ACCOUNTING POLICIES |
2.1 BASIS OF PREPARATION OF FINANCIAL STATEMENTS |
The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Section 1A of Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and the Companies Act 2006. |
2.2 Accounting estimates and judgments |
In preparing the financial statements, the directors were not required to make any estimates or judgments which materially affect reported income, expenses, assets, liabilities or disclosure of contingent assets and liabilities, except for the valuation of the Company's properties, as disclosed in note 2.5. |
2.3 Revenue |
Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Company and the revenue can be reliably measured. Revenue is measured as the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. Revenue is recognised by the Company in respect of rents receivable and leasehold extensions. |
2.4 Tangible fixed assets |
Tangible fixed assets under the cost model, other than investment properties, are stated at historical cost less accumulated depreciation and any accumulated impairment losses. Historical cost includes expenditure that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management. |
Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, using the straight-line method. |
Depreciation is provided on furniture, fixtures and fittings over 5 years. |
No depreciation is provided on the cost of freehold land. |
The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date. |
Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in the Statement of Comprehensive Income. |
MAYFLOWER MANHATTAN LIMITED (REGISTERED NUMBER: 01520231) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 OCTOBER 2023 |
2.5 Investment properties |
Investment properties are carried at fair value determined annually by the directors and derived from the current market rents and investment property yields for comparable real estate, adjusted if necessary for any difference in the nature, location or condition of the specific asset. No depreciation is provided. Changes in fair value are recognised in the Statement of Comprehensive Income. |
Freehold investment properties include properties where the original leasehold period is for a period of 999 years. |
This policy on depreciation represents a departure from statutory accounting principles, which require depreciation to be provided on all fixed assets. The directors consider that this policy is necessary in order that the Financial Statements may give a true and fair view because current values and changes in current value are of prime importance rather than the calculation of systematic annual depreciation. Depreciation is only one of many factors reflected in the valuation and the amount, which might otherwise have been shown, cannot be separately identified or quantified. |
2.6 Stocks |
Stock consists of properties for resale and are valued at the lower of cost or net realisable value. |
2.7 Creditors |
Short term creditors are measured at the transaction price. Other financial liabilities, including bank loans, are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method. |
Tenants Deposits are shown as creditors due after one year as the Directors believe that, based on past experience, refundable deposits are repaid to departing tenants from deposits received from new tenants and that there is no monetary loss to the company. The refundable tenants deposits are secured by a government approved insurance scheme. |
2.8 Debtors |
Short term debtors are measured at transaction price, less any impairment. Loans receivable are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method, less any impairment. |
2.9 Cash and cash equivalents |
Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours. Cash equivalents are highly liquid investments that mature in no more than three months from the date of acquisition and that are readily convertible to known amounts of cash with insignificant risk of change in value. |
2.10 Current taxation |
The tax expense for the year comprises current and deferred tax. Tax is recognised in profit or loss except that a charge attributable to an item of income and expense recognised as other comprehensive income or to an item recognised directly in equity is also recognised in other comprehensive income or directly in equity respectively. |
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 income. |
MAYFLOWER MANHATTAN LIMITED (REGISTERED NUMBER: 01520231) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 OCTOBER 2023 |
2.11 Deferred taxation |
Deferred Taxation has not been provided for in the 2023 or 2022. accounts. This is a change from the policy used in the 2021 year. The Directors historically have not sold any investment properties. They do not believe that any investment properties will be sold during the next five years. On this basis, they do not believe that any deferred tax will arise in the future. The Deferred tax provision at 31 October 2021 was reversed in 2022. |
The potential liability at the 31 October 2023 has been shown as a Contingent Liability in Note 14. |
Deferred tax in previous years was provided for under the liability method using the tax rates estimated to arise when the timing differences reverse and is accounted for to the extent that it is probable that a liability or assets will crystallise. Unprovided deferred tax is disclosed as a contingent liability. |
2.11 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, loans to related parties and investments in ordinary shares. |
Debt instruments (other than those wholly repayable or receivable within one year), including loans and other accounts receivable and payable, are initially measured at present value of the future cash flows and subsequently at amortised cost using the effective interest method. Debt instruments that are payable or receivable within one year, typically trade debtors and creditors, are measured, initially and subsequently, at the undiscounted amount of the cash or other consideration expected to be paid or received. However, if the arrangements of a short-term instrument constitute a financing transaction, like the payment of a trade debt deferred beyond normal business terms or in case of an out-right short-term loan that is not at market rate, the financial asset or liability is measured, initially at the present value of future cash flows discounted at a market rate of interest for a similar debt instrument and subsequently at amortised cost, unless it qualifies as a loan from a director in the case of a small company, or a public benefit entity concessionary loan. |
Financial assets that are measured at cost and amortised cost are assessed at the end of each reporting period for objective evidence of impairment. If objective evidence of impairment is found, an impairment loss is recognised in the Statement of Comprehensive Income. |
For financial assets measured at amortised cost, the impairment loss is measured as the difference between an asset's carrying amount and the present value of estimated cash flows discounted at the asset's original effective interest rate. If a financial asset has a variable interest rate, the discount rate for measuring any impairment loss is the current effective interest rate determined under the contract. |
For financial assets measured at cost less impairment, the impairment loss is measured as the difference between an asset's carrying amount and best estimate of the recoverable amount, which is an approximation of the amount that the Company would receive for the asset if it were to be sold at the report date. |
Financial assets and liabilities are offset and the net amount reported in the Statement of Financial Position when there is an 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. |
MAYFLOWER MANHATTAN LIMITED (REGISTERED NUMBER: 01520231) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 OCTOBER 2023 |
2. | ACCOUNTING POLICIES - continued |
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. |
3. | EMPLOYEES AND DIRECTORS |
The average number of employees during the year was NIL (2022 - |
4. | TANGIBLE FIXED ASSETS |
Furniture, |
fixtures |
& fittings |
£ |
Cost |
At 1 November 2022 |
and 31 October 2023 |
Depreciation |
At 1 November 2022 |
and 31 October 2023 |
Net book value |
At 31 October 2023 |
At 31 October 2022 |
5. | INVESTMENT PROPERTY |
Total |
£ |
Fair value |
At 1 November 2022 |
Additions |
At 31 October 2023 |
Net book value |
At 31 October 2023 |
At 31 October 2022 |
The 2023 valuations were made by the directors, on an open market value using current market data for similar properties in the same area. |
MAYFLOWER MANHATTAN LIMITED (REGISTERED NUMBER: 01520231) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 OCTOBER 2023 |
5. | INVESTMENT PROPERTY - continued |
Fair value at 31 October 2023 is represented by: |
£ |
Cost | 3,943,984 |
Revaluation brought forward | 5,662,668 |
Revaluation in year | - |
9,606,652 |
6. | DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
2023 | 2022 |
£ | £ |
Trade debtors |
Other debtors |
VAT |
Prepayments and accrued income |
7. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
2023 | 2022 |
£ | £ |
Trade creditors |
Tax |
VAT | - | 56 |
Other creditors |
Directors' current accounts | 4,235 | 100,995 |
Accruals and deferred income |
8. | CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR |
2023 | 2022 |
£ | £ |
Amounts owed to group undertakings |
Refundable deposits |
The refundable deposits are secured by a government approved insurance scheme. |
MAYFLOWER MANHATTAN LIMITED (REGISTERED NUMBER: 01520231) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 OCTOBER 2023 |
9. | CALLED UP SHARE CAPITAL |
Allotted, issued and fully paid: |
Number: | Class: | Nominal | 2023 | 2022 |
value: | £ | £ |
Ordinary | £1 | 50,000 | 50,000 |
10. | RESERVES |
Investment property revaluation reserve |
The investment property revaluation reserve is a special non-distributable reserve and consists of unrealised investment property fair valuation adjustments and related deferred tax charges transfered from the profit and loss account. |
Profit & loss account |
The profit and loss account consists of cumulative undistributed reserves. Non-distributable reserves are transferred from the profit and loss account to their own reserve. |
11. | CONTINGENT LIABILITIES |
Should all the investment properties be sold at their revalued amount, the company would have a total liability for taxation of £1,148,337 |
12. | RELATED PARTY DISCLOSURES |
The Company was charged £6,200 (2022 - £5,900) by Mr C Morgan for professional services provided during the year. |
The amount of £4,235 (2022 - £100,995) due by the Company to Mr Grimshaw at 31 October 2023 will be repaid by the Company within one year and has been included in "Creditors falling due within one year". |
Mr N Grimshaw was paid £60,000 for rental of properties during the year (2022 - £60,000). |
13. | CONTROLLING PARTY |
The Company’s parent undertaking is Midsummer Holdings Limited which is incorporated in England and Wales. Financial Statements for Midsummer Holdings Limited can be obtained from the Registrar of Companies, Crown Way, Cardiff, CF4 3UZ. |
The ultimate controlling party is Mr N.C. Grimshaw by virtue of his ownership of the issued share capital of the parent company. |
MAYFLOWER MANHATTAN LIMITED (REGISTERED NUMBER: 01520231) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 OCTOBER 2023 |
14. | FUNDS HELD ON BEHALF OF THIRD PARTIES |
2023 | 2022 |
£ | £ |
Cash on deposit held in trust | 627,049 | 555,830 |
Receipts from third parties held in trust | 626,421 | 624,909 |
Net balance owing to Third parties | (628 | ) | 69,079 |