Company Registration No. 03199497 (England and Wales)
STERLING PROPERTY CO. LIMITED
UNAUDITED FINANCIAL STATEMENTS
FOR THE YEAR ENDED
31 DECEMBER 2023
31 December 2023
PAGES FOR FILING WITH REGISTRAR
STERLING PROPERTY CO. LIMITED
COMPANY INFORMATION
Directors
Miss M Moser
Mr M Flynn
(Appointed 23 May 2023)
Company number
03199497
Registered office
Sterling House
Unit G
Waterfold Business Park
Bury
BL9 7BR
STERLING PROPERTY CO. LIMITED
CONTENTS
Page
Balance sheet
1 - 2
Statement of changes in equity
3
Notes to the financial statements
4 - 9
STERLING PROPERTY CO. LIMITED
BALANCE SHEET
AS AT
31 DECEMBER 2023
31 December 2023
- 1 -
2023
2022
as restated
Notes
£
£
£
£
Fixed assets
Tangible assets
4
112,309
135,671
Investment property
6
75,000
4,491,145
Investments
5
-
0
47,004
187,309
4,673,820
Current assets
Debtors
7
1,625,844
5,511,046
Cash at bank and in hand
2,980,541
3,086,885
4,606,385
8,597,931
Creditors: amounts falling due within one year
8
(3,972,633)
(8,543,526)
Net current assets
633,752
54,405
Total assets less current liabilities
821,061
4,728,225
Provisions for liabilities
(3,533)
(340,444)
Net assets
817,528
4,387,781
Capital and reserves
Called up share capital
100
100
Revaluation reserve
24,751
1,021,412
Profit and loss reserves
792,677
3,366,269
Total equity
817,528
4,387,781

The notes on pages 4 to 9 form part of these financial statements.

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 December 2023 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 member has 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.

STERLING PROPERTY CO. LIMITED
BALANCE SHEET (CONTINUED)
AS AT
31 DECEMBER 2023
31 December 2023
- 2 -
The financial statements were approved by the board of directors and authorised for issue on 25 November 2024 and are signed on its behalf by:
Mr M Flynn
Director
Company registration number 03199497 (England and Wales)
STERLING PROPERTY CO. LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2023
- 3 -
Share capital
Revaluation reserve
Profit and loss reserves
Total
Notes
£
£
£
£
As restated for the period ended 31 December 2022:
Balance at 1 July 2021
100
403,660
11,878,235
12,281,995
Effect of change in accounting policy
-
3,455,071
-
0
3,455,071
As restated
100
3,858,731
11,878,235
15,737,066
Period ended 31 December 2022:
Profit and total comprehensive income for the period
-
-
3,398,260
3,398,260
Dividends
-
-
(14,747,545)
(14,747,545)
Transfers
-
(2,837,319)
2,837,319
-
Balance at 31 December 2022
100
1,021,412
3,366,269
4,387,781
Year ended 31 December 2023:
Profit and total comprehensive income for the year
-
-
319,369
319,369
Dividends
-
-
(3,889,622)
(3,889,622)
Transfers
-
(996,661)
996,661
-
Balance at 31 December 2023
100
24,751
792,677
817,528

The notes on pages 4 to 9 form part of these financial statements.

STERLING PROPERTY CO. LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
- 4 -
1
Accounting policies
Company information

Sterling Property Co. Limited is a private company limited by shares incorporated in England and Wales. The registered office is Sterling House, Unit G, Waterfold Business Park, Bury, BL9 7BR.

1.1
Reporting period

The prior year reporting period is longer than one year, as such historical comparison amounts will not be entirely comparable.

1.2
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 and certain financial instruments at fair value. The principal accounting policies adopted are set out below.

The company has taken advantage of the exemption under section 399 of the Companies Act 2006 not to prepare consolidated accounts, on the basis that the group of which this is the parent qualifies as a small group. The financial statements present information about the company as an individual entity and not about its group.

1.3
Turnover

Turnover is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business, and is shown net of VAT and other sales related taxes. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.

 

Turnover principally consists of rental income and fees relating to the management of real estate, which are recognised at the point at which the services are provided.

 

During the year, the directors have considered the correct recognition of turnover, where they are acting as an agent, rather than a principal. Please see note 2 for further detail. Consequently, directors have restated the profit and loss in the prior period to reflect these changes. This has no impact on the companies profit and loss in the period.

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:

Office equipment
25% reducing balance
Computer equipment
25% reducing balance
Motor vehicles
25% reducing balance

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.

STERLING PROPERTY CO. LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 5 -
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.

1.6
Fixed asset investments

Interests in subsidiaries, associates and jointly controlled entities are initially measured at cost and subsequently measured at cost less any accumulated impairment losses. The investments are assessed for impairment at each reporting date and any impairment losses or reversals of impairment losses are recognised immediately in profit or loss.

A subsidiary is an entity controlled by the company. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.

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.

STERLING PROPERTY CO. LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 6 -
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.

Critical judgements

The following judgements (apart from those involving estimates) have had the most significant effect on amounts recognised in the financial statements.

Principal vs agent

The company contracts various suppliers to provide services to its customers throughout the year. This can include repairs and maintenance, professional services and insurance. Whilst these services are contracted by the company on its customers’ behalf, they are recharged to customers at cost.

Whilst the company’s management may negotiate the price of these services, to ensure the best value is being obtained for our customers, the price is ultimately set by the 3rd party service provider and the company does not enter into these transactions in order to obtain a direct economic benefit.

The directors have applied judgment in considering whether the company is acting as Principal or Agent, for the purposes of determining the appropriate revenue recognition treatment of recharges to its customers for these services.

Giving due consideration to all the relevant factors, including the application guidance in FRS 102, the directors consider that the company is acting as an Agent. The company has therefore not recognised turnover in respect of these transactions, but instead has recognised a corresponding reduction in the costs which have been recharged to customers.

Whilst this judgment has a material impact on turnover it has no overall impact on the company’s profit or loss.

3
Employees

The average monthly number of persons (including directors) employed by the company during the year was:

2023
2022
Number
Number
Total
33
25
STERLING PROPERTY CO. LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 7 -
4
Tangible fixed assets
Office equipment
Computer equipment
Motor vehicles
Total
£
£
£
£
Cost
At 1 January 2023
-
0
3,218
357,376
360,594
Additions
40,050
19,685
-
0
59,735
Disposals
-
0
(1,029)
(242,998)
(244,027)
At 31 December 2023
40,050
21,874
114,378
176,302
Depreciation and impairment
At 1 January 2023
-
0
170
224,753
224,923
Depreciation charged in the year
2,025
1,898
31,527
35,450
Eliminated in respect of disposals
-
0
(146)
(196,234)
(196,380)
At 31 December 2023
2,025
1,922
60,046
63,993
Carrying amount
At 31 December 2023
38,025
19,952
54,332
112,309
At 31 December 2022
-
0
3,048
132,623
135,671
5
Fixed asset investments
2023
2022
£
£
Other investments other than loans
-
0
47,004
Movements in fixed asset investments
Investments
£
Cost or valuation
At 1 January 2023
47,004
Disposals
(47,004)
At 31 December 2023
-
Carrying amount
At 31 December 2023
-
At 31 December 2022
47,004
STERLING PROPERTY CO. LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 8 -
6
Investment property
2023
£
Fair value
At 1 January 2023
4,491,145
Additions
39,321
Disposals
(4,455,466)
At 31 December 2023
75,000

The fair value of the investment property has been arrived at on the basis of a valuation carried out on 7 July 2022 by Chartered Surveyors, 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.

As noted in the accounting policies note, the directors are of the opinion that certain properties, previously accounted for as stock, should have always have been accounted for as investment properties. See the accounting policies note for further information.

 

7
Debtors
2023
2022
Amounts falling due within one year:
£
£
Trade debtors
239,150
49,227
Amounts owed by group undertakings
-
0
345,188
Other debtors
1,386,694
5,116,631
1,625,844
5,511,046
8
Creditors: amounts falling due within one year
2023
2022
£
£
Trade creditors
938,641
829,875
Amounts owed to group undertakings
937,937
-
0
Taxation and social security
130,486
1,532,687
Other creditors
1,965,569
6,180,964
3,972,633
8,543,526
STERLING PROPERTY CO. LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 9 -
9
Deferred taxation

The following are the major deferred tax liabilities and assets recognised by the company and movements thereon:

Liabilities
Liabilities
2023
2022
Balances:
£
£
Accelerated capital allowances
3,533
(8,151)
Capital gains
-
348,595
3,533
340,444
2023
Movements in the year:
£
Liability at 1 January 2023
340,444
Credit to profit or loss
(336,911)
Liability at 31 December 2023
3,533

The deferred tax liability set out above is expected to reverse in a future period and relates to accelerated capital allowances that are expected to mature within the same period.

10
Operating lease commitments
Lessee

At the period end, the company had operating lease commitments totalling £15,135 (2022 - £6,237).

 

 

 

11
Related party transactions

At the year end, the company owed £937,937 to the parent company (2022 - £345,188 owed from the parent company).

 

Included in creditors are amounts owed to companies under the control of a director amounting to £41,231 (2022 - £36,172) and amounts owed by connected pension schemes by virtue of common control amounting to £25,520 (2022 - £2,355,172).

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