REGISTERED NUMBER: |
REPORT OF THE DIRECTORS AND |
FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 23 JUNE 2024 |
FOR |
P.B.M. FLATS MANAGEMENT LIMITED |
REGISTERED NUMBER: |
REPORT OF THE DIRECTORS AND |
FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 23 JUNE 2024 |
FOR |
P.B.M. FLATS MANAGEMENT LIMITED |
P.B.M. FLATS MANAGEMENT LIMITED (REGISTERED NUMBER: 00997967) |
CONTENTS OF THE FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 23 JUNE 2024 |
Page |
Company Information | 1 |
Report of the Directors | 2 |
Report of the Independent Auditors | 4 |
Statement of Comprehensive Income | 6 |
Balance Sheet | 7 |
Notes to the Financial Statements | 8 |
P.B.M. FLATS MANAGEMENT LIMITED |
COMPANY INFORMATION |
FOR THE YEAR ENDED 23 JUNE 2024 |
DIRECTORS: |
REGISTERED OFFICE: |
REGISTERED NUMBER: |
AUDITORS: |
Chartered Accountants and Registered Auditors |
5 Giffard Court |
Millbrook Close |
Northampton |
Northamptonshire |
NN5 5JF |
P.B.M. FLATS MANAGEMENT LIMITED (REGISTERED NUMBER: 00997967) |
REPORT OF THE DIRECTORS |
FOR THE YEAR ENDED 23 JUNE 2024 |
The company is managed by the Council of Management. All references to the board of directors in these financial statements refers to the appointed representatives of the Council of Management. |
Members of the Council of Management are appointed as directors of the company. |
The directors present their report with the financial statements of the company for the year ended 23 June 2024. |
PRINCIPAL ACTIVITY |
The principal activity of the company in the year under review was that of residents property management. |
EVENTS SINCE THE END OF THE YEAR |
Information relating to events since the end of the year is given in the notes to the financial statements. |
DIRECTORS |
The directors shown below have held office during the whole of the period from 24 June 2023 to the date of this report. |
Other changes in directors holding office are as follows: |
COUNCIL OF MANAGEMENT (Board of Directors) |
Members of the Council of Management (the "Council") can either be appointed by the Council during the year or elected on to the Council at the Company's Annual General Meeting ("AGM"). Appointed members will stand for election at the first AGM following such appointment. The Council has also resolved that all Members of the Council will put themselves up for re-election after they have served three years on the Council and that they can serve a maximum of two consecutive 3-year terms. |
Each building will normally have two members on the Council. Council members' responsibilities are not limited to their building and cover all the Company's activities. |
STATEMENT OF DIRECTORS' RESPONSIBILITIES |
The directors are responsible for preparing the Report of the Directors and the financial statements in accordance with applicable law and regulations. |
Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the surplus or deficit of the company for that period. In preparing these financial statements, the directors are required to: |
- | select suitable accounting policies and then apply them consistently; |
- | make judgements and accounting estimates that are reasonable and prudent; |
- | prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business. |
The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company's transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. |
P.B.M. FLATS MANAGEMENT LIMITED (REGISTERED NUMBER: 00997967) |
REPORT OF THE DIRECTORS |
FOR THE YEAR ENDED 23 JUNE 2024 |
STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS |
So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the company's auditors are unaware, and each director has taken all the steps that he or she ought to have taken as a director in order to make himself or herself aware of any relevant audit information and to establish that the company's auditors are aware of that information. |
AUDITORS |
The auditors, Cube Partners Limited, will be proposed for re-appointment at the forthcoming Annual General Meeting. |
This report has been prepared in accordance with the provisions of Part 15 of the Companies Act 2006 relating to small companies. |
ON BEHALF OF THE BOARD: |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
P.B.M. FLATS MANAGEMENT LIMITED |
Opinion |
We have audited the financial statements of P.B.M. Flats Management Limited (the 'company') for the year ended 23 June 2024 which comprise the Statement of Comprehensive Income, Balance Sheet and Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice). |
In our opinion the financial statements: |
- | give a true and fair view of the state of the company's affairs as at 23 June 2024 and of its surplus for the year then ended; |
- | have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and |
- | have been prepared in accordance with the requirements of the Companies Act 2006. |
Basis for opinion |
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. |
Conclusions relating to going concern |
In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate. |
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue. |
Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report. |
Other information |
The directors are responsible for the other information. The other information comprises the information in the Report of the Directors, but does not include the financial statements and our Report of the Auditors thereon. |
Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. |
In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard. |
Opinions on other matters prescribed by the Companies Act 2006 |
In our opinion, based on the work undertaken in the course of the audit: |
- | the information given in the Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and |
- | the Report of the Directors has been prepared in accordance with applicable legal requirements. |
Matters on which we are required to report by exception |
In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the Report of the Directors. |
We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion: |
- | adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or |
- | the financial statements are not in agreement with the accounting records and returns; or |
- | certain disclosures of directors' remuneration specified by law are not made; or |
- | we have not received all the information and explanations we require for our audit; or |
- | the directors were not entitled to prepare the financial statements in accordance with the small companies regime and take advantage of the small companies' exemption from the requirement to prepare a Strategic Report or in preparing the Report of the Directors. |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
P.B.M. FLATS MANAGEMENT LIMITED |
Responsibilities of directors |
As explained more fully in the Statement of Directors' Responsibilities set out on page two, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. |
In preparing the financial statements, the directors are responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so. |
Auditors' responsibilities for the audit of the financial statements |
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue a Report of the Auditors that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements. |
The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below: |
We considered the central laws and regulations to the entity and identified those of significance to the entity. The significant laws and regulations include UK company law and residential property management regulations. We undertook an enquiry of management and those charged with governance to evaluate those of significance and any instances of non-compliance. |
Through discussion, and where appropriate, written representation, we obtained an understanding of the entity’s policies and procedures on fraud risks, including knowledge of any actual, suspected or alleged fraud. |
Where necessary documentation scrutiny was used to determine the significance of any instances of non-compliance of central laws and regulations. |
We communicated relevant identified laws and regulations and potential fraud risks to all engagement team members and remained alert to any indications of fraud or non-compliance with laws and regulations throughout the audit. |
Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation. |
A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Auditors. |
Use of our report |
This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in a Report of the Auditors and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's members as a body, for our audit work, for this report, or for the opinions we have formed. |
for and on behalf of |
Chartered Accountants and Registered Auditors |
5 Giffard Court |
Millbrook Close |
Northampton |
Northamptonshire |
NN5 5JF |
P.B.M. FLATS MANAGEMENT LIMITED (REGISTERED NUMBER: 00997967) |
STATEMENT OF COMPREHENSIVE INCOME |
FOR THE YEAR ENDED 23 JUNE 2024 |
2024 | 2023 |
£ | £ |
SERVICE CHARGE INCOME |
Administrative expenses |
OPERATING SURPLUS |
Interest receivable and similar income |
SURPLUS BEFORE TAXATION |
Tax on surplus |
SURPLUS FOR THE FINANCIAL YEAR |
OTHER COMPREHENSIVE INCOME |
Reserve fund contribution |
Reserve fund expenditure | ( |
) |
Interest received |
Income tax relating to components of other comprehensive income |
( |
) |
OTHER COMPREHENSIVE INCOME FOR THE YEAR, NET OF INCOME TAX |
TOTAL COMPREHENSIVE INCOME FOR THE YEAR |
P.B.M. FLATS MANAGEMENT LIMITED (REGISTERED NUMBER: 00997967) |
BALANCE SHEET |
23 JUNE 2024 |
2024 | 2023 |
Notes | £ | £ |
CURRENT ASSETS |
Debtors | 4 |
Cash at bank |
CREDITORS |
Amounts falling due within one year | 5 |
NET CURRENT ASSETS |
TOTAL ASSETS LESS CURRENT LIABILITIES |
RESERVES |
Reserve fund Princes House | 6 |
Reserve fund Buckingham Court | 6 |
Reserve fund Matlock Court | 6 |
The financial statements were approved by the Board of Directors and authorised for issue on |
P.B.M. FLATS MANAGEMENT LIMITED (REGISTERED NUMBER: 00997967) |
NOTES TO THE FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 23 JUNE 2024 |
1. | STATUTORY INFORMATION |
P.B.M. Flats Management Limited is a |
The presentation currency of the financial statements is the Pound Sterling (£). |
The financial statements combine the service charge accounts, which are deemed to be held in a statutory trust under the Landlord and Tenant Act 1987, with the Company's statutory accounts prepared to meet the requirements of its Articles of Association (articles 45 to 47) and the Fifth Schedule of each tenant's lease with the Lessor (now Catchbroad) and the Company. |
2. | ACCOUNTING POLICIES |
Basis of preparing the financial statements |
Turnover |
Service charge income is measured at the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. |
Revenue of the company is comprised of service charges and reserve fund demands payable for the maintenance of the common parts. Service charges and reserve fund income recognised within the financial statements relates to the year under review. Any contributions raised before the year end in respect to a later period are deferred and recognised as service charges in advance. |
Taxation |
The company was formed as a residential mutual with no taxable income and is only subject to income tax in respect of interest received on funds held by the company. |
3. | EMPLOYEES AND DIRECTORS |
The average number of employees during the year was |
4. | DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
2024 | 2023 |
£ | £ |
Trade debtors |
Other debtors |
5. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
2024 | 2023 |
£ | £ |
Service charges in advance |
Trade creditors |
Taxation and social security |
Other creditors |
P.B.M. FLATS MANAGEMENT LIMITED (REGISTERED NUMBER: 00997967) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 23 JUNE 2024 |
6. | RESERVES |
Income | Reserve | Reserve | Reserve |
and | fund | fund | fund |
expenditure | Princes | Buckingham | Matlock |
account | House | Court | Court | Totals |
£ | £ | £ | £ | £ |
At 24 June 2023 | 1,756,927 |
Surplus for the year |
Reserve fund contribution | - | 209,202 | 180,414 | 223,552 | 613,168 |
Reserve fund expenditure | - | (8,358 | ) | (6,091 | ) | (5,951 | ) | (20,400 | ) |
Interest received on reserves | - | 12,857 | 10,462 | 8,482 | 31,801 |
Transfer between Reserve Funds | - | (6,101 | ) | 34,578 | (28,477 | ) | - |
Income tax liability | - | (3,787 | ) | (2,704 | ) | (2,368 | ) | (8,859 | ) |
Surplus/(deficit) on service |
charge account | (15,632 | ) | 11,544 | 2,612 | 1,476 | - |
At 23 June 2024 | 2,388,269 |
7. | POST BALANCE SHEET EVENTS |
A claim for costs incurred by the company resulting from delayed filings and poor administration by the former managing agents along with recovery of various historic debtors commenced in 2024. However the outcome of this claim has not yet been concluded. |
No allowance or further provision has been made in these financial statements for compensation regarding the costs or debtors as the recoverability of the amount is not certain. The receipt of funds following settlement of this claim will be recognised in subsequent years as amounts are actually recovered. |
Other debtors include £64,917 (2023: £67,155) which relate to the historic debtors recoverable from the former managing agents. If following settlement of the claim these funds are not recovered in full an additional bad debt provision will be necessary in addition to that charged in 2023. |
In the financial statements for the year ended 23 June 2023 a bad debt provision amounting to £51,824 was made against historic debtors whose recoverability was considered doubtful.. |
8. | ULTIMATE CONTROLLING PARTY |
The council of management regards the freeholder, Catchbroad Limited, as being the ultimate controlling party. |
9. | LIMITED BY GUARANTEE |
The company is a private company limited by guarantee and consequently does not have share capital. Each of the members is liable to contribute an amount not exceeding £1 towards the assets of the company in the event of liquidation. |
The company is managed by the Council of Management. All references to the board of directors in these financial statements refers to the appointed representatives of the Council of Management. |
Members of the Council of Management are appointed as directors of the company. |