Company registration number 02279323 (England and Wales)
POSOL RESIDENTS MANAGEMENT COMPANY LIMITED
FINANCIAL STATEMENTS
FOR THE YEAR ENDED
31 MARCH 2024
PAGES FOR FILING WITH REGISTRAR
3 Acorn Business Centre
Northarbour Road
Cosham
Portsmouth
Hampshire
PO6 3TH
POSOL RESIDENTS MANAGEMENT COMPANY LIMITED
CONTENTS
Page
Officers and professional advisers
1
The directors' report
2 - 4
Independent auditor's report to the shareholders
5 - 8
Income statement
9
Balance sheet
10 - 11
Notes to the financial statements
12 - 17
POSOL RESIDENTS MANAGEMENT COMPANY LIMITED
OFFICERS AND PROFESSIONAL ADVISERS
- 1 -
The board of directors
J.D. Shaw (Chairman)
M.D. Abrams
I.H. Currie
M.F. Derry-Collins
N.K. Padbury
R.G. Sillence
D.J. Wilson
Secretary
I.H. Currie
Company number
02279323
Registered office
24a Southampton Road
Ringwood
Hampshire
United Kingdom
BH24 1HY
Auditor
TC Group
3 Acorn Business Centre
Northarbour Road
Cosham
Portsmouth
Hampshire
PO6 3TH
POSOL RESIDENTS MANAGEMENT COMPANY LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 MARCH 2024
- 2 -
The directors present their annual report and financial statements for the year ended 31 March 2024.
PRINCIPAL ACTIVITIES
The principal activity of the company throughout the year continued to be that of acting on behalf of the owners of homes and berths as the management company of the communal areas for the properties located at Sennen Place, Carne Place, Kelsey Head, Newlyn Way, Carbis Close, Cadgwith Place, Holywell Drive, Bryher Island, Tintagel Way, Mullion Close and Coverack Way at Port Solent, Portsmouth, Hampshire.
THE DIRECTORS
The directors who held office during the year and up to the date of signature of the financial statements were as follows:
J.D. Shaw (Chairman)
M.D. Abrams
I.H. Currie
M.F. Derry-Collins (Appointed 25/08/2023)
P.L. Maistre (Terminated 11/08/2023)
N.K. Padbury
R.G. Sillence
D.J. Wilson
POSOL RESIDENTS MANAGEMENT COMPANY LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 3 -
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.
in so far as the directors are aware:
INSURANCE
During the year £466 (2023 - £457) was expensed by the company in respect of Directors and Officers liability insurance.
CHANGE TO PROPERTY MANAGING AGENT
On the 21/05/24 the company changed property managing agent from FirstPort Property Services (Formally Alexander Faulkner Partnership) to Evolve.
POSOL RESIDENTS MANAGEMENT COMPANY LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 4 -
SMALL COMPANY PROVISIONS
This report has been prepared in accordance with the special provisions for small companies under Part 15 of the Companies Act 2006.
Registered office:
Signed by order of the directors
24a Southampton Road
Ringwood
Hampshire
BH24 1HY
I.H. CURRIE
Director
Approved by the directors on
20th September 2024
20 September 2024
POSOL RESIDENTS MANAGEMENT COMPANY LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF POSOL RESIDENTS MANAGEMENT COMPANY LIMITED
- 5 -
Opinion
We have audited the financial statements of Posol Residents Management Company Limited (the 'company') for the year ended 31 March 2024 which comprise the profit and loss account, the balance sheet and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).
In our opinion the financial statements:
give a true and fair view of the state of the company's affairs as at 31 March 2024 and of its profit for the year then ended;
have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
have been prepared in accordance with the requirements of the Companies Act 2006.
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Conclusions relating to going concern
In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.
Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.
The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The directors are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
POSOL RESIDENTS MANAGEMENT COMPANY LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF POSOL RESIDENTS MANAGEMENT COMPANY LIMITED
- 6 -
Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of our audit:
the information given in the directors' report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
the directors' report has been prepared in accordance with applicable legal requirements.
Matters on which we are required to report by exception
In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the directors' report. We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:
adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
the financial statements are not in agreement with the accounting records and returns; or
certain disclosures of remuneration specified by law are not made; or
we have not received all the information and explanations we require for our audit; or
the directors were not entitled to prepare the financial statements in accordance with the small companies regime and take advantage of the small companies' exemption in preparing the directors' report and from the requirement to prepare a strategic report.
Responsibilities of directors
As explained more fully in the directors' responsibilities statement, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the directors are responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.
Auditor's responsibilities for the audit of the financial statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
Irregularities, including fraud, are instances of non-compliance with laws and regulations. The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.
Extent to which the audit was considered capable of detecting irregularities, including fraud
The objectives of our audit, in respect to fraud, are: to identify and assess the risks of material misstatement of the financial statements due to fraud; to obtain sufficient appropriate audit evidence regarding the assessed risks of material misstatement due to fraud, through designing and implementing appropriate responses; and to respond appropriately to fraud or suspected fraud identified during the audit. However, the primary responsibility for the prevention and detection of fraud rests with both those charged with governance of the entity and its management.
POSOL RESIDENTS MANAGEMENT COMPANY LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF POSOL RESIDENTS MANAGEMENT COMPANY LIMITED
- 7 -
Our approach was as follows:
We identified areas of laws and regulations that could reasonably be expected to have a material effect on the financial statements from our general commercial and sector experience, and through discussion with the directors and other management (as required by auditing standards), and discussed with the directors and other management the policies and procedures regarding compliance with laws and regulations;
We considered the legal and regulatory frameworks directly applicable to the financial statements reporting framework (FRS 102 and the Companies Act 2006) and the relevant tax compliance regulations in the UK;
We considered the nature of the industry, the control environment and business performance, including the key drivers for management’s remuneration;
We communicated identified laws and regulations throughout our team and remained alert to any indications of non-compliance throughout the audit;
We considered the procedures and controls that the company has established to address risks identified, or that otherwise prevent, deter and detect fraud; and how senior management monitors those programmes and controls.
Based on this understanding we designed our audit procedures to identify non-compliance with such laws and regulations. Where the risk was considered to be higher, we performed audit procedures to address each identified fraud risk. These procedures included: testing manual journals; reviewing the financial statement disclosures and testing to supporting documentation; performing analytical procedures; and enquiring of management, and were designed to provide reasonable assurance that the financial statements were free from fraud or error.
Owing to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material misstatements in the financial statements, even though we have properly planned and performed our audit in accordance with auditing standards. For example, the further removed non-compliance with laws and regulations (irregularities) is from the events and transactions reflected in the financial statements, the less likely the inherently limited procedures required by auditing standards would identify it. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation. We are not responsible for preventing non-compliance and cannot be expected to detect non-compliance with all laws and regulations.
A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/Our-Work/Audit/Audit-and-assurance/Standards-and-guidance/Standards-and-guidance-for-auditors/Auditors-responsibilities-for-audit/Description-of-auditors-responsibilities-for-audit.aspx. This description forms part of our auditor’s report.
POSOL RESIDENTS MANAGEMENT COMPANY LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF POSOL RESIDENTS MANAGEMENT COMPANY LIMITED
- 8 -
This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's members as a body, for our audit work, for this report, or for the opinions we have formed.
Graham Figgins FCA (Senior Statutory Auditor)
For and on behalf of TC Group
Statutory Auditor
26 September 2024
Office: Portsmouth
POSOL RESIDENTS MANAGEMENT COMPANY LIMITED
INCOME STATEMENT
FOR THE YEAR ENDED 31 MARCH 2024
- 9 -
2024
2023
Notes
£
£
INCOME RECEIVABLE
550,559
557,064
Administrative expenses
(524,803)
(503,208)
Other operating income
5,776
3,515
OPERATING SURPLUS
3
31,532
57,371
Interest receivable
4
10,265
956
Fair value gains and losses on investment
12
10,160
-
Profit/(loss) on disposal of investments
134
-
TOTAL EXCESS INCOME AFTER EXPENSES
52,091
58,327
Tax
5
(3,906)
(182)
EXCESS Income for the year
48,185
58,145
Amount due to shareholders
-
(11,145)
Transfer to non-distributable profit reserves
12
(8,229)
Transfer to sinking funds
13
(39,956)
(47,000)
RESULTS FOR THE YEAR
-
-
The notes on pages 12 to 17 form part of these financial statements
POSOL RESIDENTS MANAGEMENT COMPANY LIMITED
BALANCE SHEET
AS AT 31 MARCH 2024
31 March 2024
- 10 -
2024
2023
Notes
£
£
£
£
Fixed assets
Tangible assets
29,405
29,405
Investments
6
217,003
200,000
246,408
229,405
Current assets
Debtors
8
10,237
6,440
Cash at bank and in hand
168,367
246,036
178,604
252,476
Creditors: amounts falling due within one year
9
(61,233)
(89,493)
Net current assets
117,371
162,983
Total assets less current liabilities
363,779
392,388
Provisions for liabilities
(1,930)
Net assets
361,849
392,388
Capital and reserves
Called-up equity share capital
10
733
733
Revaluation reserve
11
29,405
29,405
Sinking funds
13
323,482
362,250
Non-distributable reserves
12
8,229
Total equity
361,849
392,388
POSOL RESIDENTS MANAGEMENT COMPANY LIMITED
BALANCE SHEET (CONTINUED)
AS AT 31 MARCH 2024
31 March 2024
- 11 -
The directors of the company have elected not to include a copy of the profit and loss account 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 20 September 2024 and are signed on its behalf by:
J. SHAW - DIRECTOR
I.H. CURRIE - DIRECTOR
Company Registration No. 02279323
The notes on pages 12 to 17 form part of these financial statements
POSOL RESIDENTS MANAGEMENT COMPANY LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024
- 12 -
1
Accounting policies
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 pound.
The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.
1.1
Income receivable
The income receivable represents the amounts received and due from the shareholders. Management are of the opinion that all amounts due from shareholders are fully recoverable.
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.
In the opinion of the directors there are no significant judgements or areas of estimation uncertainty.
3
Operating surplus
2024
2023
Operating surplus is stated after charging:
£
£
Auditor's fees
6,120
5,760
The directors received no emoluments for their services (2023 - £Nil). In his capacity as Company Secretary, Mr I.H. Currie received fees of £4,200 (2023 - £4,080).
POSOL RESIDENTS MANAGEMENT COMPANY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 13 -
4
Interest receivable and similar income
2024
2023
£
£
Interest on bank deposits
3,556
956
Interest on investments
6,709
Total interest revenue
10,265
956
5
Taxation
2024
2023
£
£
Current tax:
In respect of the year:
UK corporation tax
1,976
182
Total current tax
1,976
182
Deferred tax
Changes in fair value of investment
1,930
Total tax charge
3,906
182
6
Fixed asset investments
2024
2023
£
£
Other investments other than loans
217,003
200,000
POSOL RESIDENTS MANAGEMENT COMPANY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
6
Fixed asset investments
(Continued)
- 14 -
Movements in fixed asset investments
Investments
£
Cost or valuation
At 1 April 2023
200,000
Additions
14,411
Valuation changes
10,160
Disposals
(7,568)
At 31 March 2024
217,003
Carrying amount
At 31 March 2024
217,003
At 31 March 2023
200,000
7
Fixed Assets - Land and Buildings
2024
2023
£
£
Balance as at 1 April 2023
29,405
29,405
Balance as at 31 March 2024
29,405
29,405
8
Debtors
2024
2023
Amounts falling due within one year:
£
£
Amounts due from shareholders
7,609
3,950
Prepayments and accrued income
2,628
2,490
10,237
6,440
POSOL RESIDENTS MANAGEMENT COMPANY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 15 -
9
Creditors: amounts falling due within one year
2024
2023
£
£
Amounts owed to shareholders
2,968
48,324
Other creditors
5,456
5,481
Trade creditors
933
3,501
Corporation tax
1,976
182
Accruals and deferred income
49,900
32,005
61,233
89,493
10
Authorised share capital
2024
2023
£
£
439 Class A Ordinary shares of £1 each
439
439
360 Class B Ordinary shares of £1 each
360
360
799
799
Allotted, called up and fully paid:
423 Class A Ordinary shares of £1 each
423
423
310 Class B Ordinary shares of £1 each
310
310
733
733
POSOL RESIDENTS MANAGEMENT COMPANY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 16 -
11
Revaluation reserve
2024
2023
£
£
Balance at 1 April 2023
29,405
29,405
Balance at 31 March 2024
29,405
29,405
12
Non-distributable profits reserve
2024
2023
£
£
At the beginning of the year
-
-
Non distributable profits in the year
8,229
-
At the end of the year
8,229
-
The non-distributable profit reserve relates to a fair value gain on investments held by the company. This is in line with FRS 102 which requires investments to be measured at fair value through the profit or loss, if the fair value can be measured reliably.
A deferred tax liability has been recognised on the fair value gain.
POSOL RESIDENTS MANAGEMENT COMPANY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 17 -
13
Sinking fund reserve
2024
2023
£
£
Balance at 1 April 2023
362,250
388,874
Transfer to sinking funds for the year
39,956
47,000
Pontoon repairs expenditure
(78,724)
(73,624)
Balance at 31 March 2024
323,482
362,250
The Sinking Fund was established some years ago to allow the company to set aside funds for the future
replacement of estate and pontoon facilities for which the company is responsible at the end of their life.
At an extraordinary general meeting of the company held on 24 June 2014, a resolution was passed to
authorise the Directors to withdraw up to £100,000 from the total Sinking Fund Reserves and use for the
sole purpose of pursuing litigation against shareholders who breach and/or fail to remedy breaches of
covenants and regulations.
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