Company Registration No. 10514140 (England and Wales)
MVL PROPERTIES (2017) LIMITED
FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2023
PAGES FOR FILING WITH REGISTRAR
MVL PROPERTIES (2017) LIMITED
CONTENTS
Page
Balance sheet
1
Statement of changes in equity
2
Notes to the financial statements
3 - 8
MVL PROPERTIES (2017) LIMITED
BALANCE SHEET
AS AT 31 MAY 2023
31 May 2023
- 1 -
2023
2022
as restated
Notes
£
£
£
£
Fixed assets
Investment properties
4
1,435,000
888,333
Current assets
Debtors
5
51,413
12,295
Cash at bank and in hand
29,853
145,080
81,266
157,375
Creditors: amounts falling due within one year
6
(472,188)
(550,239)
Net current liabilities
(390,922)
(392,864)
Total assets less current liabilities
1,044,078
495,469
Provisions for liabilities
7
(689,464)
(716,122)
Net assets/(liabilities)
354,614
(220,653)
Capital and reserves
Called up share capital
100
100
Other reserves
605,892
198,367
Profit and loss reserves
(251,378)
(419,120)
Total equity
354,614
(220,653)

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. 10514140
MVL PROPERTIES (2017) LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 MAY 2023
- 2 -
Share capital
Investment property reserve
Profit and loss reserves
Total
£
£
£
£
As restated for the period ended 31 May 2022:
Balance at 1 June 2021
100
-
189,086
189,186
Effect of prior period adjustment
10
-
198,367
(650,000)
(451,633)
As restated
100
198,367
(460,914)
(262,447)
Year ended 31 May 2022:
Profit and total comprehensive income for the year
-
-
41,794
41,794
Balance at 31 May 2022
100
198,367
(419,120)
(220,653)
Year ended 31 May 2023:
Profit and total comprehensive income for the year
-
-
575,267
575,267
Transfers
-
407,525
(407,525)
-
Balance at 31 May 2023
100
605,892
(251,378)
354,614
MVL PROPERTIES (2017) LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2023
- 3 -
1
Accounting policies
Company information

MVL Properties (2017) 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.

1.2
Going concern

The company is in a net current liability position at the year end of £390,922 (2022: £392,864), after taking into account amounts owed to group undertakings of £390,942 (2022: £517,635).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 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
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.

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.

MVL PROPERTIES (2017) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2023
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, 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.

1.6
Equity instruments

Equity instruments issued by the company are recorded at the proceeds received, net of transaction costs.

1.7
Taxation

The tax expense represents the tax currently payable.

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.

1.8
Provisions

Provisions are recognised when the company has a legal or constructive present obligation as a result of a past event, it is probable that the company will be required to settle that obligation and a reliable estimate can be made of the amount of the obligation.

 

The amount recognised as a provision is the best estimate of the consideration required to settle the present obligation at the reporting end date, taking into account the risks and uncertainties surrounding the obligation. Where the effect of the time value of money is material, the amount expected to be required to settle the obligation is recognised at present value. When a provision is measured at present value, the unwinding of the discount is recognised as a finance cost in profit or loss in the period in which it arises.

1.9
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.

MVL PROPERTIES (2017) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2023
- 5 -
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 properties

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 £1,435,000. Determining the fair value of investment properties involves an element of estimation by referring to available market evidence, including rental yields, EBITDA multiples and realised sales values for similar properties.

Provisions

As at 31 May 2023, a provision has been recognised in relation to compensation payable to the tenant at the end of the lease period, being 23 March 2023, for works completed by the tenant on a number of individual improvements, as outlined in the lease agreement. On entering into the lease, the cost of carrying out the improvement works was valued by an independent third party, which has been adjusted for current value at the balance sheet date for an amount of £650,000. A provision has been recognised as at 31 May 2023 for this amount.

3
Employees

There were no employees during the current or previous year.

4
Investment property
2023
£
Fair value
At 1 June 2022
888,333
Additions
3,300
Revaluations
543,367
At 31 May 2023
1,435,000

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 £627,144 (2022: £623,844).

MVL PROPERTIES (2017) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2023
- 6 -
5
Debtors
2023
2022
Amounts falling due within one year:
£
£
Trade debtors
31,638
-
0
Other debtors
4,068
4,140
Prepayments
15,707
8,155
51,413
12,295
6
Creditors: amounts falling due within one year
2023
2022
£
£
Trade creditors
43,090
4,500
Amounts owed to group undertakings
390,942
517,635
Corporation tax
9,804
9,804
Accruals and deferred income
28,352
18,300
472,188
550,239
7
Provisions for liabilities
2023
2022
As restated
£
£
Tenant compensation
650,000
650,000
Deferred tax liabilities
39,464
66,122
689,464
716,122

As at 31 May 2023, a provision has been recognised for £650,000 (2022: £650,000) in relation to compensation payable to the tenant at the end of the lease period, being 23 March 2023, for works completed by the tenant on a number of individual improvements, as outlined in the lease agreement.

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.
9
Operating lease commitments
Lessor
MVL PROPERTIES (2017) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2023
9
Operating lease commitments
(Continued)
- 7 -

At the reporting end date the company had contracted with tenants for the following minimum lease payments:

2023
2022
£
£
-
0
52,890
10
Prior period adjustment

During the preparation of the financial statements, management identified errors in the prior period figures. These have been corrected and further details are set out below.

Changes to the balance sheet
As previously reported
Adjustment at 1 Jun 2021
Adjustment at 31 May 2022
As restated at 31 May 2022
£
£
£
£
Fixed assets
Investment properties
623,844
264,489
-
888,333
Provisions for liabilities
Deferred tax
-
(66,122)
-
(66,122)
Other provisions
-
(650,000)
-
(650,000)
Net assets
230,980
(451,633)
-
(220,653)
Capital and reserves
Other reserves
-
198,367
-
198,367
Profit and loss
230,880
(650,000)
-
(419,120)
Total equity
230,980
(451,633)
-
(220,653)
Reconciliation of changes in equity
1 June
31 May
2021
2022
£
£
Adjustments to prior year
Total adjustments
(650,000)
(451,633)
Equity as previously reported
189,186
230,980
Equity as adjusted
(460,814)
(220,653)
Notes to reconciliation
a) Tenant compensation

A prior period adjustment has been made to recognise a provision for compensation payable to the tenant upon the demise of the lease. This provision should have been recognised in prior periods when the repairs were done to the property and the compensation agreement was entered into.

b) Fair value investment property

The company’s investment property should have been stated at fair value as required by accounting standards. A prior year adjustment has been made to account for the fair value movement, with a related adjustment to deferred tax.

MVL PROPERTIES (2017) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2023
- 8 -
11
Controlling party

The company is a wholly owned subsidiary of Electric Group Holdings Limited and Jacob Lewis is the ultimate controlling party.

2023-05-312022-06-01false11 October 2024CCH SoftwareCCH Accounts Production 2024.200No description of principal activityThis audit opinion is unqualifiedD J G Maddenfalsefalse0105141402022-06-012023-05-31105141402023-05-31105141402022-05-3110514140core:CurrentFinancialInstrumentscore:WithinOneYear2023-05-3110514140core:CurrentFinancialInstrumentscore:WithinOneYear2022-05-3110514140core:CurrentFinancialInstruments2023-05-3110514140core:CurrentFinancialInstruments2022-05-3110514140core:ShareCapital2023-05-3110514140core:ShareCapital2022-05-3110514140core:OtherMiscellaneousReserve2023-05-3110514140core:OtherMiscellaneousReserve2022-05-3110514140core:RetainedEarningsAccumulatedLosses2023-05-3110514140core:RetainedEarningsAccumulatedLosses2022-05-3110514140core:RetainedEarningsAccumulatedLossescore:PriorPeriodIncreaseDecrease2021-05-3110514140core:ShareCapital2021-05-3110514140core:OtherMiscellaneousReserve2021-05-3110514140core:RetainedEarningsAccumulatedLosses2021-05-31105141402021-05-3110514140bus:Director12022-06-012023-05-3110514140core:RetainedEarningsAccumulatedLosses2021-06-012022-05-31105141402021-06-012022-05-3110514140core:RetainedEarningsAccumulatedLosses2022-06-012023-05-31105141402022-05-3110514140bus:PrivateLimitedCompanyLtd2022-06-012023-05-3110514140bus:SmallCompaniesRegimeForAccounts2022-06-012023-05-3110514140bus:FRS1022022-06-012023-05-3110514140bus:Audited2022-06-012023-05-3110514140bus:FullAccounts2022-06-012023-05-31xbrli:purexbrli:sharesiso4217:GBP