(1) General Information
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The company is a private company limited by shares and is registered in England and Wales. The address of the registered office is Ramsay Brown LLP, The Brentano Suite, Solar House, 915 High Road, North Finchley, N12 8QJ. |
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(2) Statement of compliance
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These individual financial statements have been prepared in accordance with FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" Section 1A and Companies Act 2006, as applicable to companies subject to the small companies' regime. |
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(3) Significant Accounting Policies
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Basis of preparing the financial statements
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These financial statements have been prepared in accordance with the provisions of Section 1A "Small Entities" of Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention.
These financial statements for the year ended 31 December 2024 are the first financial statements that comply with FRS102. The date of transition is 1 January 2023. |
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Revenue recognition
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Turnover is measured at the fair value of the consideration received or receivable and represents amounts receivable for goods supplied and services rendered, stated net of discounts and of Value Added Tax. The company recognises revenue when the amount of revenue can be measured reliably, when it is probable that future economic benefits will flow to the entity and when specific criteria have been met as described below. |
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Financial instruments
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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.
Basic financial liabilities Basic financial liabilities, including creditors and bank loans 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. |
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Investment property
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Investment properties are included in the balance sheet at their open market value in accordance with the Financial Reporting Standard (FRS 102) and are not depreciated. This treatment is contrary to the Companies Act 2006 which states that fixed assets should be depreciated but is, in the opinion of the directors, necessary in order to give a true and fair view of the financial position of the company.
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 profit and loss account. |
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(4) Employees
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During the year, the average number of employees including director was 2 (2023 : 2). |
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(5) Tax
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Taxation expense represents the aggregate amount of current tax and deferred tax recognised in the reporting period. |
Current tax
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The tax currently payable is based on taxable profit for the year. Taxable profit differs from profit before tax as reported in the income statement because of items of income or expense that are taxable or deductible in other years and items that are never taxable or deductible. The company's current tax is calculated using tax rates that have been enacted or substantively enacted by the end of the reporting period. | | 2024 | | 2023 | | £ | | £ | | Corporation tax charge for current year | 236,457 | | 19,129 | | | | | Total current tax | 236,457 | | 19,129 |
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Deferred tax
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A deferred tax asset or liability is recognised for tax recoverable or payable in future periods in respect of transactions and events recognised in the financial statements of current and previous periods.
Deferred tax arises from timing differences that are differences between taxable profits and total comprehensive income as stated in the financial statements. Timing differences result from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in the financial statements.
Deferred tax is recognised on all timing differences at the reporting date apart from certain exceptions. Unrelieved tax losses and other deferred tax assets are only 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.
Deferred tax liabilities and assets are measured at the tax rates that are expected to apply in the period in which the liability is settled or the asset realised, based on tax rates (and tax laws) that have been enacted or substantively enacted by the end of the reporting period.
Provisions for liabilities Prior to adoption of FRS 102, there was no requirement to provide for deferred tax on revalued assets until there is a binding agreement to sell the assets. Under FRS 102 however, there is no special treatment for revaluations, they are treated as giving rise to timing differences.
Consequently a deferred tax provision of £1,250 (2023: £303,281) has been made to reflect this. | | | 2024 | | 2023 | | £ | | £ | | Origination and reversal of timing differences | -1,250 | | -303,281 | | | | | | Total deferred tax | -1,250 | | -303,281 | | Total tax (credit)/charge for the year | 235,206 | | -284,152 |
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(6) Investment Property
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| Leasehold Properties | | £ | Cost | | As at 01 January 2024 | 4,840,368 | Additions | (5,002) | As at 31 December 2024 | 4,835,366 | Depreciation | | As at 31 December 2024 | - | Net book value | | As at 31 December 2024 | 4,835,366 | As at 31 December 2023 | 4,840,368 |
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(7) Debtors
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Amounts falling due within one year
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| | | 2024 | | 2023 | | £ | | £ | | Trade debtors | 65,633 | | 54,778 | | | | | Prepayments and accrued income | 7,988 | | 7,112 | | 73,621 | | 61,890 |
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(8) Creditors: Amounts falling due within one year
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| | | 2024 | | 2023 | | £ | | £ | | Trade creditors | 22,342 | | 23,814 | Bank loans and overdrafts | 37,660 | | 36,167 | | | | | Other taxes and social security | 15,589 | | 7,128 | | | | | Accruals and deferred income | 5,304 | | 7,995 | | 80,895 | | 75,104 |
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(9) Creditors: Amounts falling due after more than one year
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| | | 2024 | | 2023 | | £ | | £ | | Bank loans and overdrafts | 2,095,000 | | 2,095,000 | | | | | Other creditors | 1,432,297 | | 2,349,996 | | 3,527,297 | | 4,444,996 |
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(10) Share capital and reserves
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| Alloted, called up and fully paid: | 2024 | | 2023 | | £ | | £ | | 1,000 (2023 : 1,000) Ordinary Shares of £ 1 each | 1,000 | | 1,000 | | 1,000 | | 1,000 | | Ordinary shares are classified as equity. Incremental costs directly attributable to the issue of new ordinary shares or options are shown in equity as a deduction, net of tax, from the proceeds. | | Retained earnings | | | 2024 | | | | £ | At 1 January 2024 | | | 1,944,852 | Profit of the year | | | 827,567 | | | | | At 31 December 2024 | | | 2,772,419 | |
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(11) Investment property
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The investment properties above (see Note 6) have been shown at fair value as at the balance sheet date which have been valued by the director. If investment properties were stated on historical basis rather than fair value basis, the amounts would have been £6,054,858 (2023: £6,059,859).
Revaluation of investment properties Prior to adoption of FRS 102, property revaluation gains/ losses were reflected in the revaluation reserve. Under s 1Ac.22, Investment Properties, property gains/losses are reflected in the profit and loss account. Revaluation surplus or deficit is transferred to profit and loss account in accordance with the Financial Reporting Standard FRS 102. |
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