Company registration number 03818141 (England and Wales)
MGS ESTATES (UK) LIMITED
UNAUDITED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024
PAGES FOR FILING WITH REGISTRAR
MGS ESTATES (UK) LIMITED
COMPANY INFORMATION
Directors
Mr P J Mahoney
Mr D P Mahoney
Secretary
Mr D M Mahoney
Company number
03818141
Registered office
Suite 5.1
12 Tithebarn Street
Liverpool
L2 2DT
Accountants
Mitchell Charlesworth
Suites C,D,E&F
14th Floor The Plaza
100 Old Hall Street
Liverpool
L3 9QJ
Business address
45 Priory Road
Anfield
Liverpool
L4 2RZ
Bankers
NatWest Bank PLC
Childwall Branch
Five Ways
Childwall
Liverpool
L15 6YD
Lloyds Bank plc
Merchants Court
2 - 12 Lord Street
Liverpool
L2 1TS
Solicitors
Bennett & Co
First floor
11 Allerton Road
Liverpool
L18 1LG
MGS ESTATES (UK) LIMITED
CONTENTS
Page
Balance sheet
1 - 2
Statement of changes in equity
3
Notes to the financial statements
4 - 9
MGS ESTATES (UK) LIMITED
BALANCE SHEET
AS AT
31 MARCH 2024
31 March 2024
- 1 -
2024
2023
Notes
£
£
£
£
Fixed assets
Tangible assets
4
87,727
53,705
Investment properties
5
9,441,144
9,481,280
9,528,871
9,534,985
Current assets
Debtors
6
380,152
253,092
Cash at bank and in hand
122,794
174,848
502,946
427,940
Creditors: amounts falling due within one year
7
(346,488)
(453,329)
Net current assets/(liabilities)
156,458
(25,389)
Total assets less current liabilities
9,685,329
9,509,596
Creditors: amounts falling due after more than one year
8
(2,897,792)
(2,865,455)
Provisions for liabilities
9
(624,947)
(626,050)
Net assets
6,162,590
6,018,091
Capital and reserves
Called up share capital
10
1
1
Non-distributable profits reserve
1,493,371
1,535,503
Distributable profit and loss reserves
4,669,218
4,482,587
Total equity
6,162,590
6,018,091

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 and in accordance with the provisions of FRS 102 section 1A for small entities.

MGS ESTATES (UK) LIMITED
BALANCE SHEET (CONTINUED)
AS AT
31 MARCH 2024
31 March 2024
- 2 -
The financial statements were approved by the board of directors and authorised for issue on 24 December 2024 and are signed on its behalf by:
Mr P J  Mahoney
Director
Company Registration No. 03818141
MGS ESTATES (UK) LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 MARCH 2024
- 3 -
Share capital
Non-distri-butable profits
Profit and loss reserves
Total
Notes
£
£
£
£
Balance at 1 April 2022
1
1,721,996
4,082,315
5,804,312
Year ended 31 March 2023:
Profit for the year
-
(70,575)
294,354
223,779
Other comprehensive income:
Realised gain on disposal of investment property
-
(115,918)
115,918
-
0
Total comprehensive income for the year
-
0
(186,493)
410,272
223,779
Dividends
-
-
(10,000)
(10,000)
Balance at 31 March 2023
1
1,535,503
4,482,587
6,018,091
Year ended 31 March 2024:
Profit and total comprehensive income for the year
-
(42,132)
206,631
164,499
Dividends
-
-
(20,000)
(20,000)
Balance at 31 March 2024
1
1,493,371
4,669,218
6,162,590
MGS ESTATES (UK) LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024
- 4 -
1
Accounting policies
Company information

MGS Estates (UK) Limited is a private company limited by shares incorporated in England and Wales. The registered office is Suite 5.1, 12 Tithebarn Street, Liverpool, L2 2DT.

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

Atruet the time of approving the financial statements, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.

1.3
Turnover

Turnover represents the rent receivable during the period and is recognised on an accruals basis in accordance with the relevant tenancy agreement.

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:

Plant and machinery
5 years straight line
Equipment
3 years straight line
Computer equipment
3 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. The surplus or deficit on revaluation is recognised in the profit and loss account.

 

Changes to the fair value of the investment properties will also affect the provision for deferred tax on the revaluation gains. Increases or decreases in the provision form part of the taxation charge in the profit and loss account.

MGS ESTATES (UK) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
1
Accounting policies
(Continued)
- 5 -
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
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.

1.8
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, 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.

1.9
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.

MGS ESTATES (UK) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
1
Accounting policies
(Continued)
- 6 -
1.10
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 taxation is recognised on all timing differences where the transactions or events that give the company an obligation to pay more tax in future, or a right to pay less tax in future, have occurred by the balance sheet date. Deferred tax assets are recognised when it is more likely than not that they will be recovered. Deferred tax is measured using rates of tax that have been enacted or substantively enacted by the balance sheet date. Deferred tax is not discounted.

 

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.

1.11
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.

1.12
Retirement benefits

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

1.13
Government grants

Government grants are recognised at the fair value of the asset received or receivable when there is reasonable assurance that the grant conditions will be met and the grants will be received.

 

A grant that specifies performance conditions is recognised in income when the performance conditions are met. Where a grant does not specify performance conditions it is recognised in income when the proceeds are received or receivable. A grant received before the recognition criteria are satisfied is recognised as a liability.

MGS ESTATES (UK) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 7 -
2
Employees

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

2024
2023
Number
Number
9
9
3
Taxation
2024
2023
£
£
Current tax
UK corporation tax on profits for the current period
57,025
80,498
Adjustments in respect of prior periods
(280)
-
0
Total current tax
56,745
80,498
Deferred tax
Origination and reversal of timing differences
(1,103)
82,998
Total tax charge
55,642
163,496
4
Tangible fixed assets
Plant and machinery
Equipment
Computer equipment
Motor vehicles
Total
£
£
£
£
£
Cost
At 1 April 2023
53,028
5,390
4,196
-
0
62,614
Additions
53,126
-
0
-
0
4,300
57,295
Disposals
-
0
-
0
-
0
(4,300)
(4,300)
At 31 March 2024
106,023
5,390
4,196
-
0
115,608
Depreciation and impairment
At 1 April 2023
6,314
2,072
523
-
0
8,909
Depreciation charged in the year
15,777
1,796
1,399
-
0
18,972
At 31 March 2024
22,091
3,868
1,922
-
0
27,881
Carrying amount
At 31 March 2024
83,932
1,521
2,274
-
0
87,727
At 31 March 2023
46,714
3,318
3,673
-
0
53,705
MGS ESTATES (UK) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 8 -
5
Investment property
2024
£
Fair value
At 1 April 2023
9,481,280
Additions
1,996
Revaluations
(42,132)
At 31 March 2024
9,441,144

The majority of the properties were revalued externally over the past couple of years and the remainder have been valued on a current market value basis by the directors. The value as at 31 March 2024 is £9,441,144 (2023: £9,481,280). The investment properties are reviewed on an annual basis by the directors for any revaluations required at the 31 March 2024.

 

6
Debtors
2024
2023
Amounts falling due within one year:
£
£
Trade debtors
14,668
12,376
Other debtors
365,484
240,716
380,152
253,092
Included within other debtors is a balance of £172,282 (2023: £122,710) due from connected businesses.
7
Creditors: amounts falling due within one year
2024
2023
£
£
Bank loans and overdrafts
179,447
191,231
Trade creditors
6,082
15,206
Corporation tax
56,470
80,498
Other taxation and social security
2,260
4,964
Other creditors
102,229
161,430
346,488
453,329
Other creditors includes directors loan account balances of £38,134 (2023: £95,144).
Included within other creditors is a balance of £NIL (2023: £2,940) due from connected businesses.
No interest is charged on these loans.
MGS ESTATES (UK) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 9 -
8
Creditors: amounts falling due after more than one year
2024
2023
£
£
Bank loans and overdrafts
2,897,792
2,865,455

Bank loans totalling £2,893,962 are secured by fixed charges over the company's investment properties.

 

The CBILS loan of £23,277 is secured by the government.

Creditors which fall due after five years are as follows:
2024
2023
£
£
Payable by instalments
2,267,187
2,134,050
9
Deferred taxation

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

Liabilities
Liabilities
2024
2023
Balances:
£
£
Accelerated capital allowances
21,853
12,423
Fair value adjustments to investment properties
603,094
613,627
624,947
626,050
2024
Movements in the year:
£
Liability at 1 April 2023
626,050
Credit to profit or loss
(1,103)
Liability at 31 March 2024
624,947
10
Called up share capital
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
1
1
1
1
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