Company registration number 00335537 (England and Wales)
BEACON (MIMMS) LIMITED
FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024
PAGES FOR FILING WITH REGISTRAR
BEACON (MIMMS) LIMITED
CONTENTS
Page
Statement of financial position
1
Notes to the financial statements
2 - 10
BEACON (MIMMS) LIMITED
STATEMENT OF FINANCIAL POSITION
AS AT
31 MARCH 2024
31 March 2024
- 1 -
2024
2023
as restated
Notes
£
£
£
£
Fixed assets
Tangible assets
4
1,404
645
Investment property
5
11,663,033
13,028,862
11,664,437
13,029,507
Current assets
Debtors
6
1,020,432
655,624
Cash at bank and in hand
36,820
1,020,432
692,444
Creditors: amounts falling due within one year
7
(2,623,808)
(2,648,622)
Net current liabilities
(1,603,376)
(1,956,178)
Total assets less current liabilities
10,061,061
11,073,329
Provisions for liabilities
(1,368,650)
(1,709,918)
Net assets
8,692,411
9,363,411
Capital and reserves
Called up share capital
9
5,100
5,100
Revaluation reserve
10
5,647,453
6,671,825
Profit and loss reserves
10
3,039,858
2,686,486
Total equity
8,692,411
9,363,411
These financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime.
The directors of the company have elected not to include a copy of the income statement within the financial statements.true
The financial statements were approved by the board of directors and authorised for issue on 25 October 2024 and are signed on its behalf by:
Nicholas Scarfe BSc (Hons)
Director
Company registration number 00335537 (England and Wales)
BEACON (MIMMS) LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024
- 2 -
1
Accounting policies
Company information
Beacon (Mimms) Limited is a private company limited by shares incorporated in England and Wales. The registered office is Plantagenet House, 4 Plantagenet Road, New Barnet, EN5 5JQ.
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 investment properties at fair value. The principal accounting policies adopted are set out below.
1.2
Going concern
Notwithstanding a loss of £671,000 and net current liabilities of £1,603,376 the financial statements have been prepared on a going concern basis.true
Included within liabilities is £2,488,000 due to group companies, who have confirmed that these amounts will not be called in should it impact the Company’s ability to continue as a going concern.
The value of investment properties is strong and occupancy remains high with future lease payments due under non-cancellable leases with tenants far exceeding operating costs.
The board has reviewed detailed cashflow forecasts for a period of at least 12 months from approval of these financial statements. Taking into account the support from related parties, current economic climate and reasonably possible downsides, the Company will have sufficient funds to meets its liabilities as they fall due. Therefore the directors consider the going concern basis to be appropriate.
1.3
Turnover
Turnover represents rents receivable and recoverable expenses to external customers at invoiced amounts less value added tax. Turnover is recognised in the period to which it relates.
1.4
Tangible fixed assets
Tangible fixed assets are stated at historical cost less accumulated depreciation and any accumulated impairment losses. Historical cost includes expenditure that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management.
At each reporting date the company assesses whether there is any indication of impairment. If such indication exists, the recoverable amount of the asset is determined which is the higher of its fair value less costs to sell and its value in use. An impairment loss is recognised where the carrying amount exceeds the recoverable amount.
The company adds to the carrying amount of an item of fixed assets the cost of replacing part of such an item when that cost is incurred, if the replacement part is expected to provide incremental future benefits to the company. The carrying amount of the replaced part is derecognised. Repairs and maintenance are charged to the statement of comprehensive income during the period in which they are incurred.
BEACON (MIMMS) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
1
Accounting policies
(Continued)
- 3 -
Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, on a reducing balance basis.
Depreciation is provided on the following basis:
Plant and equipment
20% per annum
The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.
Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in the statement of comprehensive income.
1.5
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.
1.6
Cash and cash equivalents
Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours. Cash equivalents are highly liquid investments that mature in no more than three months from the date of acquisition and that are readily convertible to known amounts of cash with insignificant risk of change in value.
1.7
Financial instruments
Financial liabilities and equity are classified according to the substance of the financial instrument’s contractual obligations, rather than its legal form.
The company’s cash at bank and in hand, trade and other debtors, trade and other creditors and bank overdrafts are measured initially at the transaction price, including transaction costs, and subsequently at amortised cost using the effective interest method. Debt instruments that are payable or receivable within one year are measured at the undiscounted amount of the cash or other consideration expected to be paid or received.
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.
BEACON (MIMMS) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
1
Accounting policies
(Continued)
- 4 -
Impairment of financial assets
Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.
Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.
If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.
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 and overdrafts and amounts due 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.
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.
1.8
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.
1.9
Taxation
The tax expense for the year comprises current and deferred tax. Tax is recognised in the statement of comprehensive income except that a charge attributable to an item of income and expense recognised as other comprehensive income or to an item recognised directly in equity is also recognised in other comprehensive income or directly in equity respectively.
BEACON (MIMMS) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
1
Accounting policies
(Continued)
- 5 -
Current tax
The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the reporting date in the countries where the company operates and generates income.
Deferred tax
Deferred tax balances are recognised in respect of all timing differences that have originated but not reversed by the statement of financial position, except that:
Deferred tax balances are not recognised in respect of permanent differences except in respect of business combinations, when deferred tax is recognised on the differences between the fair values of assets acquired and the future tax deductions available for them and the differences between the fair values of liabilities acquired and the amount that will be assessed for tax. Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the reporting date.
1.10
Leases
The company as a lessee
Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leases asset are consumed.
The company as lessor
All leases where assets are leased to a third party are treated as operating leases. Rental income from operating leases is recognised on a straight line basis over the term of the relevant lease.
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.
The following judgements and estimates have had the most significant effect on amounts recognised in the financial statements:
Classification of leases
Judgements are made as to whether leases entered into the company are operating or finance. These decisions depend on an assessment of whether the risks and rewards of ownership have been transferred from the lessor to the lease on a lease by lease basis. All property leases have been determined as operating leases.
Valuation of investment property
The market value of investment property is estimated annually by the directors and derived from the current net market rents and investment property yields for comparable real estate, adjusted if necessary for any difference in the nature, location or condition of the specific asset.
BEACON (MIMMS) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 6 -
3
Employees
The average monthly number of persons employed by the company during the year was:
2024
2023
Number
Number
Total
4
Tangible fixed assets
Plant and machinery etc
£
Cost
At 1 April 2023
22,699
Additions
1,110
At 31 March 2024
23,809
Depreciation and impairment
At 1 April 2023
22,054
Depreciation charged in the year
351
At 31 March 2024
22,405
Carrying amount
At 31 March 2024
1,404
At 31 March 2023
645
5
Investment property
2024
£
Fair value
At 1 April 2023
13,028,863
Revaluations
(1,365,830)
At 31 March 2024
11,663,033
The fair value of the investment property as at 31 March 2024 has been determined by the directors. The valuations have been made by reference to market data on rental yields for similar properties.
All of the Company's investment properties are held for use in operating leases, which produces 100% of the Company's turnover.
The historical cost of investment property is £6,033,791 (2023: £6,033,791).
BEACON (MIMMS) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 7 -
6
Debtors
2024
2023
Amounts falling due within one year:
£
£
Trade debtors
88,077
107,624
Corporation tax recoverable
26,136
Amounts owed by group undertakings
874,000
548,000
Other debtors
31,728
Prepayments and accrued income
491
1,020,432
655,624
Amounts owed by group undertakings are interest free and repayable on demand.
7
Creditors: amounts falling due within one year
2024
2023
£
£
Bank loans and overdrafts
17,161
Amounts owed to group undertakings
2,488,000
2,500,000
Corporation tax
64,792
Other creditors
118,647
83,830
2,623,808
2,648,622
Amounts owed to group undertakings are interest free and repayable on demand.
8
Deferred taxation
The following are the major deferred tax liabilities and assets recognised by the company and movements thereon:
Liabilities
Liabilities
2024
2023
as restated
Balances:
£
£
Accelerated capital allowances
351
161
Investment property
1,368,299
1,709,757
1,368,650
1,709,918
BEACON (MIMMS) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
8
Deferred taxation
(Continued)
- 8 -
2024
Movements in the year:
£
Liability at 1 April 2023
1,709,918
Credit to profit or loss
(341,268)
Liability at 31 March 2024
1,368,650
9
Called up share capital
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
5,100
5,100
5,100
5,100
10
Reserves
Revaluation reserve
The revaluation reserve represents accumulated gains and losses in respect of changes in the valuation of investment property, which is recognised at fair value, and deferred tax thereon. The reserve is not distributable under the Companies Act 2006. The change in fair value and deferred tax thereon is initially recognised in the profit and loss account but then transferred to the revaluation reserve in order to keep a record of non-distributable reserves.
During the year a loss of £1,024,372 (2023: loss of £59,416 as re-stated) was transferred from retained earnings to the revaluation reserve.
11
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.
Senior Statutory Auditor:
Barry Gostling
Statutory Auditor:
Ensors Accountants LLP
Date of audit report:
29 October 2024
BEACON (MIMMS) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 9 -
12
Operating lease commitments
Lessee
At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, as follows:
2024
2023
£
£
552,000
684,000
Lessor
At the reporting end date the company had contracted with tenants for the following minimum lease payments:
2024
2023
£
£
Within one year
1,014,741
1,020,650
Between two and five years
867,508
1,586,327
1,882,249
2,606,977
13
Related party transactions
Transactions with related parties
The Company has taken exemption within FRS 102 from disclosing transactions with wholly owned group companies
BEACON (MIMMS) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 10 -
14
Prior period adjustment
Reconciliation of changes in equity
1 April
31 March
2022
2023
£
£
Adjustments to prior year
Investment property valuation
245,840
391,168
Deferred Tax
(61,460)
(97,792)
Total adjustments
184,380
293,376
Equity as previously reported
8,698,947
9,070,035
Equity as adjusted
8,883,327
9,363,411
Analysis of the effect upon equity
Revaluation reserve
184,380
293,376
Reconciliation of changes in profit for the previous financial period
2023
£
Adjustments to prior year
Investment property valuation
145,328
Deferred Tax
(36,332)
Total adjustments
108,996
Profit as previously reported
371,088
Profit as adjusted
480,084
Notes to reconciliation
Investment property valuation
Investment property valuations have been re-stated to apply a market yield approach to the specific properties held by the entity, rather than using a blended yield determined across the wider group. Also, the net rental income used in the market yield approach has no longer been adjusted for general management expenses.
Deferred tax
The deferred tax liability has been restated to take into account the changes in investment property valuations.
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