Company Registration No. 10514987 (England and Wales)
MVL PROPERTIES (2015) LIMITED
FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2023
PAGES FOR FILING WITH REGISTRAR
MVL PROPERTIES (2015) LIMITED
CONTENTS
Page
Balance sheet
1
Notes to the financial statements
2 - 6
MVL PROPERTIES (2015) LIMITED
BALANCE SHEET
- 1 -
2023
2022
Notes
£
£
£
£
Fixed assets
Tangible assets
4
172,937
Investment properties
5
2,900,000
959,028
3,072,937
959,028
Current assets
Debtors
6
1,115,613
62,318
Cash at bank and in hand
53,088
1,459
1,168,701
63,777
Creditors: amounts falling due within one year
7
(6,581,348)
(1,352,542)
Net current liabilities
(5,412,647)
(1,288,765)
Total assets less current liabilities
(2,339,710)
(329,737)
Provisions for liabilities
(117,639)
Net liabilities
(2,457,349)
(329,737)
Capital and reserves
Called up share capital
100
100
Profit and loss reserves
(2,457,449)
(329,837)
Total equity
(2,457,349)
(329,737)
The director of the company has 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 and signed by the director and authorised for issue on 11 October 2024
D J G Madden
Director
Company Registration No. 10514987
MVL PROPERTIES (2015) LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2023
- 2 -
1
Accounting policies
Company information
MVL Properties (2015) Limited is a private company limited by shares incorporated in England and Wales. The registered office is Electric Brixton, Town Hall Parade, Brixton Hill, London, United Kingdom, SW2 1RJ.
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 at fair value. The principal accounting policies adopted are set out below.
The financial statements of the company are consolidated in the financial statements of Electric Group Holdings Limited. These consolidated financial statements are available from its registered office, Electric Brixton Town Hall Parade, Brixton Hill, London, United Kingdom, SW2 1RJ.
1.2
Going concern
The company is in a net liability position at the year end of £2,457,349 (2022: £329,737) and net current liability position of £5,412,647 (2022: £1,288,765) after taking into account amounts owed to group undertakings of £6,521,364 (2022: £1,313,388).true
At the time of approving the financial statements, the director has a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future due to the continued support of the group. Thus the director continues to adopt the going concern basis of accounting in preparing the financial statements.
1.3
Turnover
Turnover is recognised at the fair value of the consideration received or receivable for services provided in the normal course of business.
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.
Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:
Fixtures and fittings
5 years straight line
Computers
3 years straight line
Operational equipment
5 years 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 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.
MVL PROPERTIES (2015) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2023
1
Accounting policies
(Continued)
- 3 -
1.6
Impairment of fixed assets
At each reporting period 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). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.
1.7
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
Basic financial liabilities, including creditors, and loans from fellow group companies, 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.
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.
1.8
Equity instruments
Equity instruments issued by the company are recorded at the proceeds received, net of transaction costs.
1.9
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.
MVL PROPERTIES (2015) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2023
- 4 -
2
Judgements and key sources of estimation uncertainty
In the application of the company’s accounting policies, the director is 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
Investment properties are valued at fair value with changes in fair value being recognised in the profit and loss account. The fair value of the investment property has been arrived at on the basis of a valuation carried out in August 2024 by an independent third party valuation expert, with the effective date of the valuation being 31 May 2023. At the balance sheet date of 31 May 2023, the investment property has been revalued to £2,900,000. Determining the fair value of investment properties involves an element of estimation by referring to available market evidence, including rental yields and realised sales values for similar properties.
3
Employees
There were no employees during the current or previous year.
4
Tangible fixed assets
Fixtures and fittings
Computers
Operational equipment
Total
£
£
£
£
Cost
At 1 June 2022
Additions
19,154
6,492
171,671
197,317
Transfers
1,250
1,250
At 31 May 2023
19,154
7,742
171,671
198,567
Depreciation and impairment
At 1 June 2022
Depreciation charged in the year
2,569
1,785
21,276
25,630
At 31 May 2023
2,569
1,785
21,276
25,630
Carrying amount
At 31 May 2023
16,585
5,957
150,395
172,937
At 31 May 2022
MVL PROPERTIES (2015) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2023
- 5 -
5
Investment property
2023
£
Fair value
At 1 June 2022
959,028
Additions
3,943,107
Revaluations
(2,002,135)
At 31 May 2023
2,900,000
The fair value of the investment properties has been arrived at on the basis of a valuation made at 31 May 2023 by Gerald Eve, who are not connected with the company. The valuation was made on an open market value basis by reference to market evidence of transaction prices for similar properties.
The historic cost of the investment property held by the company as at 31 May 2023 is £4,902,135 (2022: £959,028).
6
Debtors
2023
2022
Amounts falling due within one year:
£
£
Corporation tax recoverable
254
254
Amounts owed by group undertakings
45,510
Other debtors
876,808
16,486
Prepayments and accrued income
238,551
68
1,115,613
62,318
7
Creditors: amounts falling due within one year
2023
2022
£
£
Trade creditors
49,318
34,764
Amounts owed to group undertakings
6,521,364
1,313,388
Taxation and social security
666
Accruals and deferred income
10,000
4,390
6,581,348
1,352,542
8
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.
The senior statutory auditor was Gary Miller.
The auditor was HW Fisher LLP.
MVL PROPERTIES (2015) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2023
- 6 -
9
Operating lease commitments
Lessor
At the reporting end date the company had contracted with tenants for the following minimum lease payments:
2023
2022
£
£
8,039,998
10
Controlling party
The company is wholly owned subsidiary of Electric Group Holdings Limited and Jacob Lewis is the ultimate controlling party.