Company registration number 10071127 (England and Wales)
Merepoint Capital Limited
Unaudited financial statements
For the year ended 31 December 2023
Merepoint Capital Limited
Contents
Page
Statement of financial position
1 - 2
Notes to the financial statements
3 - 7
Merepoint Capital Limited
Statement of financial position
As at 31 December 2023
31 December 2023
- 1 -
2023
2022
Notes
£
£
£
£
Fixed assets
Investment property
4
2,925,000
2,061,952
Current assets
Debtors
5
617,525
574,575
Cash at bank and in hand
43,074
5,406
660,599
579,981
Creditors: amounts falling due within one year
6
(1,275,153)
(782,740)
Net current liabilities
(614,554)
(202,759)
Total assets less current liabilities
2,310,446
1,859,193
Creditors: amounts falling due after more than one year
7
(1,050,824)
(1,057,035)
Provisions for liabilities
(255,627)
(157,642)
Net assets
1,003,995
644,516
Capital and reserves
Called up share capital
100
100
Profit and loss reserves
1,003,895
644,416
Total equity
1,003,995
644,516

The directors of the company have elected not to include a copy of the income statement within the financial statements.true

For the financial year ended 31 December 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.

Merepoint Capital Limited
Statement of financial position (continued)
As at 31 December 2023
31 December 2023
- 2 -
The financial statements were approved by the board of directors and authorised for issue on 19 September 2024 and are signed on its behalf by:
Mr S J Ashworth
Mr A C Park
Director
Director
Company registration number 10071127 (England and Wales)
Merepoint Capital Limited
Notes to the financial statements
For the year ended 31 December 2023
- 3 -
1
Accounting policies
Company information

Merepoint Capital Limited is a private company limited by shares incorporated in England and Wales. The registered office is 40 Peter Street, Manchester, England, M2 5GP.

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

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. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.

1.3
Turnover

Turnover comprises revenue recognised by the company in respect of property rental income (comprising rent, service charge and insurance) accounted for on an accrual basis, all net of VAT.

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.

 

Where fair value cannot be achieved without undue cost or effort, investment property is accounted for as tangible fixed assets.

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 statement of financial position 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.

Merepoint Capital Limited
Notes to the financial statements (continued)
For the year ended 31 December 2023
1
Accounting policies
(Continued)
- 4 -
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.

Derecognition of financial assets

Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the company transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.

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.

Derecognition of financial liabilities

Financial liabilities are derecognised when the company’s contractual obligations expire or are discharged or cancelled.

1.6
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 income statement 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.

Merepoint Capital Limited
Notes to the financial statements (continued)
For the year ended 31 December 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.

1.7

Apportionment of loan

The loan balance disclosed within creditors has been apportioned between the company and a company under common control based on the director's assessment of the value of the respective companies' investment property and stock undertaking.

2
Judgements and key sources of estimation uncertainty

In the application of the company’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. 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.

Critical judgements

The following judgements (apart from those involving estimates) have had the most significant effect on amounts recognised in the financial statements.

Valuation of investment property

Investment properties are measured using the fair value model and as such require significant judgement from the directors. The valuation has been based on the directors' knowledge of the portfolio of investment properties taking into account the geographical locations and estimated rental values.

3
Employees

The average monthly number of persons (including directors) employed by the company during the year was:

2023
2022
Number
Number
Total
-
0
-
0
Merepoint Capital Limited
Notes to the financial statements (continued)
For the year ended 31 December 2023
- 6 -
4
Investment property
2023
£
Fair value
At 1 January 2023
2,061,952
Additions
471,110
Revaluations
391,938
At 31 December 2023
2,925,000

The fair value of the investment property has been determined by the directors of the company, on an open market value for existing use basis. The valuation has been based on the director's knowledge of the portfolio of investment properties taking into account the geographical locations and their estimated rental value.

5
Debtors
2023
2022
Amounts falling due within one year:
£
£
Trade debtors
100,884
13,261
Amounts owed by related undertakings
493,803
493,945
Other debtors
17,838
67,369
Prepayments and accrued income
5,000
-
0
617,525
574,575
6
Creditors: amounts falling due within one year
2023
2022
£
£
Bank loans
5,556
5,556
Trade creditors
1,069,451
471,631
Corporation tax
160,027
149,609
Other creditors
6,014
5,500
Accruals and deferred income
34,105
150,444
1,275,153
782,740
7
Creditors: amounts falling due after more than one year
2023
2022
Notes
£
£
Bank loans and overdrafts
1,050,824
1,057,035
Merepoint Capital Limited
Notes to the financial statements (continued)
For the year ended 31 December 2023
7
Creditors: amounts falling due after more than one year
(Continued)
- 7 -

Included within other creditors due more than one year are bank loans and overdrafts of £1,021,387 (2022:£1,021,387) secured by way of fixed and floating legal charge over the properties owned by the company.

8
Reserves

Included within profit and loss reserves are non-distributable reserves of £854,353 (2022:£560,399).

9
Other financial commitments

The company has given a cross guarantee in respect of a loan facility provided to Arrowmere Capital 9 Limited, Arrowmere Capital (Lancaster) Limited and Crystal Homes 2 Limited. At 31 December 2023 an amount of £19,971,656 (2022: £19,340,205) was outstanding in respect of this facility.

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