Company Registration No. 05460710 (England and Wales)
SILVERMIST PROPERTIES (CHELMSFORD) LIMITED
FINANCIAL STATEMENTS
FOR THE YEAR ENDED
31 MARCH 2024
31 March 2024
PAGES FOR FILING WITH REGISTRAR
SILVERMIST PROPERTIES (CHELMSFORD) LIMITED
CONTENTS
Page
Balance sheet
1
Notes to the financial statements
2 - 6
SILVERMIST PROPERTIES (CHELMSFORD) LIMITED
BALANCE SHEET
AS AT
31 MARCH 2024
31 March 2024
- 1 -
2024
2023
Notes
£
£
£
£
Fixed assets
Tangible assets
3
17,417
5,194
Investment properties
4
11,200,000
9,662,961
11,217,417
9,668,155
Current assets
Debtors
5
132,788
1,531
Creditors: amounts falling due within one year
6
(1,370,950)
(9,383,783)
Net current liabilities
(1,238,162)
(9,382,252)
Total assets less current liabilities
9,979,255
285,903
Creditors: amounts falling due after more than one year
7
(8,000,000)
Provisions for liabilities
8
(345,000)
(179,000)
Net assets
1,634,255
106,903
Capital and reserves
Called up share capital
1
1
Profit and loss reserves
1,634,254
106,902
Total equity
1,634,255
106,903
The directors of the company have elected not to include a copy of the profit and loss account and directors' report within the financial statements.true
These financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime.
The financial statements were approved by the board of directors and authorised for issue on 7 August 2024 and are signed on its behalf by:
MPR Kean
Director
Company Registration No. 05460710
SILVERMIST PROPERTIES (CHELMSFORD) LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024
- 2 -
1
Accounting policies
Company information
Silvermist Properties (Chelmsford) Limited is a private company limited by shares incorporated in England and Wales. The registered office is Fairacres, Stock Lane, Ingatestone, Essex, CM4 9QL.
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 on the historical cost convention, modified to include investment properties at fair value. The principal accounting policies adopted are set out below.
1.2
Going concern
Atruet 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.
The investment properties are held for long term return and rental yield thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.
1.3
Turnover
Turnover consists solely of amounts receivable for UK property rental services net of VAT and trade discounts, and amounts recharged to tenants where appropriate under the terms of their lease. Credit is taken for rents receivable on a daily basis. Any amounts of rent receivable in advance are carried forward.
1.4
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.
Plant and machinery
3 year straight line
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.
1.5
Investment properties
Investment property, which is property held to earn rentals and/or for capital appreciation, is measured using the fair value model and stated at its fair value as the reporting end date. The surplus or deficit on revaluation is recognised in the profit and loss account.
1.6
Impairment of fixed assets
At each reporting end date, the company reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any).
SILVERMIST PROPERTIES (CHELMSFORD) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
1
Accounting policies
(Continued)
- 3 -
Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.
If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.
1.7
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.
1.8
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, 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.
SILVERMIST PROPERTIES (CHELMSFORD) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
1
Accounting policies
(Continued)
- 4 -
1.9
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.
1.10
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.
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.
2
Employees
The average monthly number of persons employed by the company during the year was 0 (2023: 0).
3
Tangible fixed assets
Plant and machinery etc
£
Cost
At 1 April 2023
5,500
Additions
14,917
At 31 March 2024
20,417
Depreciation and impairment
At 1 April 2023
306
Depreciation charged in the year
2,694
At 31 March 2024
3,000
Carrying amount
At 31 March 2024
17,417
At 31 March 2023
5,194
SILVERMIST PROPERTIES (CHELMSFORD) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 5 -
4
Investment property
2024
£
Fair value
At 1 April 2023
9,662,961
Revaluations
1,537,039
At 31 March 2024
11,200,000
As at 31 March 2024 two of the company's investment properties were valued on a fair value basis a qualified professional valuer. The valuation movements are reflected in these financial statements, as shown further in note 3. The Directors have considered the value of the remaining investment property as at 31 March 2024 and considered there to be no material change since the professional valuation in 2022. The historic cost of the investment properties is £10,907,681.
5
Debtors
2024
2023
Amounts falling due within one year:
£
£
Trade debtors
58,121
1,531
Other debtors
74,667
132,788
1,531
6
Creditors: amounts falling due within one year
2024
2023
£
£
Bank loans and overdrafts
1,008,957
9,040,544
Trade creditors
15,797
11,401
Corporation tax
45,693
26,303
Other taxation and social security
34,737
24,311
Other creditors
265,766
281,224
1,370,950
9,383,783
The bank overdraft is secured by a fixed and floating charge over the present and future assets of the company.
7
Creditors: amounts falling due after more than one year
2024
2023
£
£
Bank loans and overdrafts
8,000,000
The £8,000,000 bank loan is secured by first priority legal charge over all the commercial freehold property of the company and on all group assets together with a guarantee from all group companies for the principle sum of £8,000,000. The loan facility was renewed in the year under a five year term.
SILVERMIST PROPERTIES (CHELMSFORD) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 6 -
8
Deferred taxation
Deferred tax assets and liabilities are offset where the company has a legally enforceable right to do so. The following is the analysis of the deferred tax balances (after offset) for financial reporting purposes:
Liabilities
Liabilities
2024
2023
Balances:
£
£
Accelerated capital allowances
197,000
179,000
Revaluations
148,000
-
345,000
179,000
2024
Movements in the year:
£
Liability at 1 April 2023
179,000
Charge to profit or loss
166,000
Liability at 31 March 2024
345,000
9
Audit report information
As the income statement has been omitted from the filing copy of the financial statements, the following information in relation to the audit report on the statutory financial statements is provided in accordance with s444(5B) of the Companies Act 2006:
The auditor's report was unqualified.
Senior Statutory Auditor:
Michael Breame
Statutory Auditor:
Rickard Luckin Limited
Date of audit report:
8 August 2024
10
Financial commitments, guarantees and contingent liabilities
The company, together with four other group companies, has entered a composite guarantee in respect of bank overdrafts of those companies. There is a right of set-off incorporated within the inter company guarantee. The net overdraft indebtedness of the group companies to the bank at the year end was £Nil (2023: £Nil).
11
Parent company
The company is a wholly owned subsidiary of Fairacres Group Limited, a company registered in England. Details of the group and consolidated financial statements can be found at Companies House.