Company Registration No. 03472133 (England and Wales)
Salum Properties Limited
Unaudited financial statements
for the year ended 31 March 2024
Pages for filing with the registrar
Salum Properties Limited
Contents
Page
Balance sheet
1 - 2
Notes to the financial statements
3 - 11
Salum Properties Limited
Balance sheet
As at 31 March 2024
1
Audited
2024
2023
Notes
£
£
£
£
Fixed assets
Tangible assets
5
1,636
546
Investment property
6
16,374,750
15,360,000
16,376,386
15,360,546
Current assets
Debtors
7
241,888
364,157
Cash at bank and in hand
478,531
253,189
720,419
617,346
Creditors: amounts falling due within one year
8
(2,980,986)
(3,109,315)
Net current liabilities
(2,260,567)
(2,491,969)
Total assets less current liabilities
14,115,819
12,868,577
Creditors: amounts falling due after more than one year
9
(8,534,300)
(7,372,004)
Provisions for liabilities
(441,620)
(455,779)
Net assets
5,139,899
5,040,794
Capital and reserves
Called up share capital
12
1,010
1,010
Other reserves
1,831,215
1,873,933
Profit and loss reserves
14
3,307,674
3,165,851
Total equity
5,139,899
5,040,794
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 March 2024 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 members have 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.
Salum Properties Limited
Balance sheet (continued)
As at 31 March 2024
2
The financial statements were approved by the board of directors and authorised for issue on 28 November 2024 and are signed on its behalf by:
J E Clough
Director
Company Registration No. 03472133
Salum Properties Limited
Notes to the financial statements
For the year ended 31 March 2024
3
1
Accounting policies
Company information
Salum Properties Limited is a private company limited by shares incorporated in England and Wales. The registered office is Midland House, 2 Poole Road, Bournemouth, Dorset, BH2 5QY.
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 freehold properties and to include investment properties and certain financial instruments at fair value. The principal accounting policies adopted are set out below.
1.2
Turnover
Rental income in recognised in accordance with the terms of the rental contracts.
Revenue is recognised as it is received, net of VAT. However any proportion which is not attributable to the financial period is deferred and recognised over the appropriate rental period.
1.3
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.
Tangible fixed assets are stated at cost less depreciation. Depreciation is provided at rates calculated to write off the cost less estimated residual value over its expected useful life, as follows:
Fixtures, fittings & equipment
15% 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.
1.4
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.
1.5
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.
Salum Properties Limited
Notes to the financial statements (continued)
For the year ended 31 March 2024
1
Accounting policies (continued)
4
Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.
If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.
Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.
1.6
Cash and cash equivalents
Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.
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, 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.
Salum Properties Limited
Notes to the financial statements (continued)
For the year ended 31 March 2024
1
Accounting policies (continued)
5
Basic financial liabilities
Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, 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.
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 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. Where items recognised in other comprehensive income or equity are chargeable to or deductible for tax purposes, the resulting current or deferred tax expense or income is presented in the same component of comprehensive income or equity as the transaction or other event that resulted in the tax expense or income. 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.
Salum Properties Limited
Notes to the financial statements (continued)
For the year ended 31 March 2024
1
Accounting policies (continued)
6
1.10
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.
2
Critical accounting 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 estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are as follows.
Investment property valuations
The company's most significant asset represents its investment in freehold properties which are carried at fair value within the balance sheet. The fair value must be assessed each year and requires the judgement and estimation of certain general market and property specific factors.
In making this assessment management use the services of professional and independent third parties to provide valuation reviews of the portfolio annually. The valuation techniques used are those that have been established and set by the supervising professional body being recognised and adopted across the industry. This along with the qualified and experienced experts of the management team the assessment produced is considered to provide appropriate evidence that the properties are correctly carried at their fair value.
3
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
Audited
2024
2023
Number
Number
Total
3
3
Salum Properties Limited
Notes to the financial statements (continued)
For the year ended 31 March 2024
7
4
Taxation
Audited
2024
2023
£
£
Current tax
UK corporation tax on profits for the current period
48,260
56,979
Adjustments in respect of prior periods
1,995
Total current tax
50,255
56,979
Deferred tax
Origination and reversal of timing differences
(14,159)
19,433
Total tax charge
36,096
76,412
5
Tangible fixed assets
Plant and machinery etc
£
Cost
At 1 April 2023
1,305
Additions
1,233
At 31 March 2024
2,538
Depreciation and impairment
At 1 April 2023
759
Depreciation charged in the year
143
At 31 March 2024
902
Carrying amount
At 31 March 2024
1,636
At 31 March 2023
546
6
Investment property
2024
£
Fair value
At 1 April 2023
15,360,000
Additions
1,071,627
Revaluations
(56,877)
At 31 March 2024
16,374,750
Salum Properties Limited
Notes to the financial statements (continued)
For the year ended 31 March 2024
6
Investment property (continued)
8
The fair value of the investment property has been arrived at on the basis of a valuation carried out on 11 February 2023 by BNP Paribas Real Estate, independent property valuers, 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 directors believe this valuation to be reflective of the fair value of the investment property at 31 March 2024.
7
Debtors
Audited
2024
2023
Amounts falling due within one year:
£
£
Trade debtors
148,715
206,321
Other debtors
93,173
157,836
241,888
364,157
8
Creditors: amounts falling due within one year
Audited
2024
2023
£
£
Bank loans
37,407
371,633
Trade creditors
12,277
14,690
Taxation and social security
59,814
59,499
Other creditors
2,871,488
2,663,493
2,980,986
3,109,315
Salum Properties Limited
Notes to the financial statements (continued)
For the year ended 31 March 2024
9
9
Creditors: amounts falling due after more than one year
Audited
2024
2023
£
£
Bank loans and overdrafts
7,712,381
7,018,006
Other creditors
821,919
353,998
8,534,300
7,372,004
Audited
Creditors which fall due after five years are as follows:
2024
2023
£
£
Payable by instalments
-
694,261
10
Loans and overdrafts
Audited
2024
2023
£
£
Bank loans
7,749,788
7,389,639
Other loans
821,919
353,998
8,571,707
7,743,637
Payable within one year
37,407
371,633
Payable after one year
8,534,300
7,372,004
The long-term bank loans are secured by fixed and floating charges over the company's investment properties and other assets, as well as by personal guarantees provided by the directors.
The loans were refinanced on 22 June 2023 comprising of a range of variable and fixed rate borrowing, with a loan term of 5 years. These loans are also secured by fixed and floating charges over the company's investment properties and other assets, as well as by personal guarantees provided by the directors.
Salum Properties Limited
Notes to the financial statements (continued)
For the year ended 31 March 2024
10
11
Deferred taxation
The following are the major deferred tax liabilities and assets recognised by the company and movements thereon:
Audited
Liabilities
Liabilities
2024
2023
Balances:
£
£
Revaluations
441,620
455,779
2024
Movements in the year:
£
Liability at 1 April 2023
455,779
Credit to profit or loss
(14,159)
Liability at 31 March 2024
441,620
The movement in deferred tax due to the movement in valuation of investment properties has been credited to other reserves.
12
Called up share capital
Audited
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary A shares of £1 each
1,000
1,000
1,000
1,000
Ordinary B shares of 1p each
1,000
1,000
10
10
2,000
2,000
1,010
1,010
The A shares have attached to them the rights to vote and receive dividends.
The B shares carry no right to vote or dividends with a restricted right to capital on disposal.
Salum Properties Limited
Notes to the financial statements (continued)
For the year ended 31 March 2024
11
13
Other reserves
Audited
2024
2023
£
£
At the beginning of the year
1,873,933
2,953,994
Transfers
(42,718)
(1,080,061)
At the end of the year
1,831,215
1,873,933
The other reserves represents fair value gains on investment properties, including the related deferred taxation, that have been transferred from retained earnings.
14
Profit and loss reserves
Includes all current and prior period retained profit and losses.
15
Related party transactions
At the year end the company owed £2,474,402 (2023: £2,306,103) to entities in which the directors have an interest.
16
Directors' transactions
Interest free loans of £862,897 (2023: £406,126) have been granted to the company by its directors. The loans are unsecured and are repayable in more than one year, with the exception of £40,978 (2023: £52,128) which is repayable in one year.
17
Controlling party
The company is ultimately controlled by J E Clough and R E Clough by virtue of their direct joint shareholding in the company.
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