The Company has one investment property which was acquired on 31 October 2017 for a consideration of £205,099 including buying costs. Following renovation, the property is now being rented out to Galvin Projects Limited, Tool Services Limited and other third parties.
The rents being charged are £1,800 per month (2023 £1,800 per month) to Tool Services Limited and £500 per month (2023 £500 per month) to Galvin Projects Limited. The rents being charged, in the opinion of the directors, equate to open-market rates.
Galvin Projects Limited is owned and controlled by Mr Jason Galvin and his wife, Mrs Joanna Galvin with each owning one half of the issued share capital.
Tool Services Limited was owned and controlled by Mr Jason Galvin and Mr Christopher Marshall with each owning one half of the issued share capital.
The rental agreement with Tool Services Limited was terminated in August 2023 with Tool Services Limited having become insolvent and entering into liquidation in October 2023.
Creditors include the amount paid by Galvin Projects Ltd to eMGee Partnership Limited to fund the acquisition totalling £290,829. Rents charged totalling £6,000 (2023 £6,000) have been set against this balance. In addition a repayment was made to Galvin Projects Ltd in the year of £75,251 (2023 £Nil) and the amount due as at 31 May 2024 is then £181,578 (2023 £262,829).
Debtors include the amount due from Tool Services Limited and is inclusive of the consideration due from Tool Services Limited for the business assets injected totalling £80,000. The trade of Tool Services Limited has been badly affected by the Covid-19 pandemic. The business became insolvent in the summer of 2023 and appointed liquidators in October 2023. Some 12 months later it is not envisaged that any of the debt (which is unsecured) will be recovered.
The transactions are then summarised as follows: Balance brought forward £112,350 (2023 £90,750). Rents charged totalling £5,400 (2023 £21,600). Monies Repaid £Nil (2023 £Nil). Bad Debt Provision £117,750 (2023 £Nil). Balance carried forward £Nil (2023 £112,350).