Company registration number SC591826 (Scotland)
Merryfield IC Ltd
unaudited financial statements
for the year ended 31 March 2024
Pages for filing with Registrar
Merryfield IC Ltd
Contents
Page
Balance sheet
1 - 2
Notes to the financial statements
3 - 7
Merryfield IC Ltd
Balance sheet
as at 31 March 2024
- 1 -
2024
2023
Notes
£
£
£
£
Fixed assets
Investment property
4
5,150,515
3,734,370
Investments
5
1
1
5,150,516
3,734,371
Current assets
Debtors
6
33,402
42,393
Cash at bank and in hand
58,886
69,303
92,288
111,696
Creditors: amounts falling due within one year
7
(2,686,829)
(1,294,199)
Net current liabilities
(2,594,541)
(1,182,503)
Total assets less current liabilities
2,555,975
2,551,868
Creditors: amounts falling due after more than one year
8
(1,326,895)
(1,390,586)
Provisions for liabilities
9
(346,896)
(320,445)
Net assets
882,184
840,837
Capital and reserves
Called up share capital
5
5
Profit and loss reserves
882,179
840,832
Total equity
882,184
840,837
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 March 2024 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.
Merryfield IC Ltd
Balance sheet (continued)
as at 31 March 2024
- 2 -
The financial statements were approved by the board of directors and authorised for issue on 2 October 2024 and are signed on its behalf by:
Mr S Harrison
Director
Company Registration No. SC591826
Merryfield IC Ltd
Notes to the financial statements
for the year ended 31 March 2024
- 3 -
1
Accounting policies
Company information
Merryfield IC Ltd is a private company limited by shares incorporated in Scotland. The registered office is Had-Fab Limited, Macmerry Industrial Estate, Tranent, EH33 1RD.
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 investment properties. 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 for rentals provided in the normal course of business, excluding value added tax.
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.
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.
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.
Merryfield IC Ltd
Notes to the financial statements (continued)
for the year ended 31 March 2024
1
Accounting policies (continued)
- 4 -
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.
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.
Merryfield IC Ltd
Notes to the financial statements (continued)
for the year ended 31 March 2024
1
Accounting policies (continued)
- 5 -
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.
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.
Key sources of estimation uncertainty
The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are as follows.
Valuation of investment property
The valuation of the company's investment property is inherently subjective due to, among other factors, the individual nature of each property, its location and the expected future rental revenues from that particular property. As a result, the valuations the company's places on its investment property are subject to a degree of uncertainty and are made on the basis of assumptions which may not prove to be accurate, particularly in periods of volatility or low transaction flow in the property market.
The fair value of investment property is appraised each year either by independent external valuers or on the basis of internal valuations. The best evidence of fair value are current prices in an active market for similar investment property. In the absence of such information, the directors determine the amount within a range of reasonable fair value estimate taking into account such assumptions as the tenure and tenancy details, ground conditions, the structural condition, prevailing market yields and comparable market transactions.
3
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2024
2023
Number
Number
Total
2
2
Merryfield IC Ltd
Notes to the financial statements (continued)
for the year ended 31 March 2024
- 6 -
4
Investment property
2024
£
Fair value
At 1 April 2023
3,734,370
Additions
1,416,145
At 31 March 2024
5,150,515
Investment property was valued on a fair basis value at the year end by the directors.
If investment property had not been fair valued it would have been included at cost of £4,029,936 (2023- £2,686,035)
5
Fixed asset investments
2024
2023
£
£
Other investments other than loans
1
1
6
Debtors
2024
2023
Amounts falling due within one year:
£
£
Trade debtors
8,279
15,747
Other debtors
25,123
26,646
33,402
42,393
7
Creditors: amounts falling due within one year
2024
2023
£
£
Bank loans
53,452
45,222
Trade creditors
130,441
132,072
Corporation tax
7,907
Other taxation and social security
6,735
Amounts due to related parties
2,484,979
1,089,553
Accruals and deferred income
11,222
19,445
2,686,829
1,294,199
Merryfield IC Ltd
Notes to the financial statements (continued)
for the year ended 31 March 2024
- 7 -
8
Creditors: amounts falling due after more than one year
2024
2023
£
£
Bank loans and overdrafts
1,326,895
1,390,586
The Bank of Scotland PLC holds a bond and floating charge over all property and undertakings of the company in respect of amounts advanced now or in the future by the bank, and also standard securities over Unit 5 and Unit 9 Macmerry Industrial Estate, Tranent, East Lothian, EH33 1ET.
9
Provisions for liabilities
2024
2023
£
£
Deferred tax liabilities
346,896
320,445
10
Related party transactions
Transactions with related parties
During the year the company entered into the following transactions with related parties:
Purchases
Purchases
2024
2023
£
£
Other related parties
724,249
16,667
The following amounts were outstanding at the reporting end date:
2024
2023
Amounts due to related parties
£
£
Other related parties
2,484,979
1,044,998
The above balance was due to Had-Fab Limited, a company controlled by Mr and Mrs Harrison. The amount is not subject to any repayment terms or interest and is included within creditors due within one year.
11
Parent company
The company is under the control of Mr Simon Harrison and Mrs Jayne Harrison.