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M2 Developments (Cornwall) Limited

Annual Report and Unaudited Financial Statements
Year Ended 30 September 2024

Registration number: 09149216

 

M2 Developments (Cornwall) Limited

Contents

Balance Sheet

1 to 2

Notes to the Unaudited Financial Statements

3 to 8

 

M2 Developments (Cornwall) Limited

Balance Sheet

30 September 2024

Note

30 September
2024
£

30 September
2023
£

Fixed assets

 

Tangible assets

4

3,512

1,463

Current assets

 

Stocks

5

2,070,754

1,406,073

Debtors

6

487,248

457,940

Cash at bank and in hand

 

279,219

-

 

2,837,221

1,864,013

Creditors: Amounts falling due within one year

7

(147,059)

(169,515)

Net current assets

 

2,690,162

1,694,498

Total assets less current liabilities

 

2,693,674

1,695,961

Creditors: Amounts falling due after more than one year

7

(1,143,006)

(16,668)

Provisions for liabilities

(879)

(367)

Net assets

 

1,549,789

1,678,926

Capital and reserves

 

Called up share capital

9

2

2

Profit and loss account

1,549,787

1,678,924

Shareholders' funds

 

1,549,789

1,678,926

 

M2 Developments (Cornwall) Limited

Balance Sheet

30 September 2024

For the financial year ending 30 September 2024 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.

Directors' responsibilities:

The members have not required the company to obtain an audit of its accounts for the year in question in accordance with section 476; and

The directors acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and the preparation of accounts.

These financial statements have been prepared and delivered in accordance with the special provisions relating to companies subject to the small companies regime within Part 15 of the Companies Act 2006 and the option not to file the Profit and Loss Account has been taken.

Approved and authorised by the Board on 10 April 2025 and signed on its behalf by:
 

.........................................
M J Gordon
Director

.........................................
M J Lugg
Director

 
     

Company Registration Number: 09149216

 

M2 Developments (Cornwall) Limited

Notes to the Unaudited Financial Statements

Year Ended 30 September 2024

1

General information

The company is a private company limited by share capital, incorporated in England and Wales.

The address of its registered office is:
Mjl House
Cornwall Business Park
Scorrier
Redruth
Cornwall
TR16 5FG

2

Accounting policies

Summary of significant accounting policies and key accounting estimates

The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.

Statement of compliance

These financial statements have been prepared in accordance with Financial Reporting Standard 102 - 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' and the Companies Act 2006 as applicable to companies subject to the small companies regime. The disclosure requirements of Section 1A of FRS102 have been applied other than where additional disclosure is required to show a true and fair view.

The financial statements are prepared in pounds sterling which is the functional currency of the company.

Monetary amounts in these financial statements are rounded to the nearest pound.

Basis of preparation

These financial statements have been prepared using the historical cost convention.

Disclosure of long or short period

The comparative period covers the 17 months to 30 September 2023, with the current period being the 12 months to September 2024.

The period end was changed last year in order to bring it in line with other connected undertakings. As a result of this change the results for the two periods are not directly comparable.

Revenue recognition

Turnover represents amounts chargeable, net of VAT and discounts, in respect of the sale of units to third parties.

Revenue is recognised at the point of practical completion.

 

M2 Developments (Cornwall) Limited

Notes to the Unaudited Financial Statements

Year Ended 30 September 2024

Tax

Tax is recognised in profit or loss, except that a change attributable to an item of income or expense recognised as other comprehensive income is also recognised directly in other comprehensive income.

The current corporation tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the reporting date in the countries where the company operates and generates taxable income.

Deferred tax is recognised on all timing differences at the balance sheet date unless indicated below. Timing differences are differences between taxable profits and the results as stated in the profit and loss account and other comprehensive income. Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the reporting date.

Tangible assets

Tangible assets are stated in the balance sheet at cost, less any subsequent accumulated depreciation and subsequent accumulated impairment losses.

The cost of tangible assets includes directly attributable incremental costs incurred in their acquisition and installation.

Depreciation

Depreciation is charged so as to write off the cost of assets, other than land and properties under construction over their estimated useful lives, as follows:

Asset class

Depreciation method and rate

Office equipment

Straight line at 33% per annum

Motor vehicles

Straight line at 15% per annum

Plant and machinery

Straight line at 25% per annum

Work in progress

Work in progress is valued at the lower of cost and net realisable value, after due regard for obsolete and slow moving stocks. Net realisable value is based on selling price less anticipated costs to completion and selling costs.

 

M2 Developments (Cornwall) Limited

Notes to the Unaudited Financial Statements

Year Ended 30 September 2024

Financial instruments

Classification
The company holds the following financial instruments:

• Short term trade and other debtors and creditors;
• Bank loans; and
• Cash and bank balances.

All financial instruments are classified as basic.

 Recognition and measurement
The company has chosen to apply the recognition and measurement principles in FRS102.

Financial instruments are recognised when the company becomes party to the contractual provisions of the instrument and derecognised when in the case of assets, the contractual rights to cash flows from the assets expire or substantially all the risks and rewards of ownership are transferred to another party, or in the case of liabilities, when the company’s obligations are discharged, expire or are cancelled.

Except for bank loans, such instruments are initially measured at transaction price, including transaction costs, and are subsequently carried at the undiscounted amount of the cash or other consideration expected to be paid or received, after taking account of impairment adjustments.

Bank loans are initially measured at transaction price, including transaction costs, and are subsequently carried at amortised cost using the effective interest method.


 

Critical judgement and estimation uncertainty

The directors have considered the carrying value of work in progress which relates to an ongoing site development. Based on expectations of future sales and anticipated costs to complete the Directors do not believe that an impairment of this value is required.

At the balance sheet date the carrying value of work in progress is £2,082,524 (2023 - £1,406,073)

3

Staff numbers

The average number of persons employed by the company (including directors) during the year, was 2 (2023 - 2).

 

M2 Developments (Cornwall) Limited

Notes to the Unaudited Financial Statements

Year Ended 30 September 2024

4

Tangible assets

Plant and machinery
 £

Total
£

Cost or valuation

At 1 October 2023

50,016

50,016

Additions

3,162

3,162

At 30 September 2024

53,178

53,178

Depreciation

At 1 October 2023

48,553

48,553

Charge for the period

1,113

1,113

At 30 September 2024

49,666

49,666

Carrying amount

At 30 September 2024

3,512

3,512

At 30 September 2023

1,463

1,463

5

Stocks

30 September
2024
£

30 September
2023
£

Work in progress

2,070,754

1,406,073

6

Debtors

Note

30 September
2024
£

30 September
2023
£

Trade debtors

 

-

12,459

Amounts owed by connected undertakings

10

460,691

434,844

Other debtors

 

26,557

10,637

 

487,248

457,940

 

M2 Developments (Cornwall) Limited

Notes to the Unaudited Financial Statements

Year Ended 30 September 2024

7

Creditors

Creditors: amounts falling due within one year

Note

30 September 2024
 £

30 September 2023
 £

Due within one year

 

Loans and borrowings

8

10,000

21,381

Trade creditors

 

62,048

6,727

Amounts due to connected undertakings

10

27,776

-

Social security and other taxes

 

21,054

18,284

Corporation tax

10,776

119,943

Accrued expenses

 

15,405

3,180

 

147,059

169,515

Due after one year

 

Loans and borrowings

8

1,143,006

16,668

8

Loans and borrowings

Current loans and borrowings

30 September
2024
£

30 September
2023
£

Bank borrowings

10,000

10,000

Bank overdrafts

-

11,381

10,000

21,381

 

M2 Developments (Cornwall) Limited

Notes to the Unaudited Financial Statements

Year Ended 30 September 2024

Non-current loans and borrowings

30 September
2024
£

30 September
2023
£

Bank borrowings

6,667

16,668

Amounts due to connected undertakings

1,136,339

-

1,143,006

16,668

The bank loans are secured.

The amount due to connected undertakings is secured by means of a charge over a project included in work in progress.

9

Share capital

Allotted, called up and fully paid shares

30 September
2024

30 September
2023

No.

£

No.

£

Ordinary shares of £1 each

2

2

2

2

       

10

Related party transactions

Included in debtors is £460,691 (2023 - £434,844) in respect of amounts due from connected undertakings. The connected undertakings are the shareholder in M2 Developments (Cornwall) Limited. The outstanding balance is interest free, unsecured and repayable on demand.

Included in creditors less than one year is £27,776 in respect of amounts due to connected undertakings, with this entity being connected to one of the shareholder companies. The amount outstanding is interest free, unsecured and repayable on demand.

During the year the company took out a loan from one of its shareholder companies. This loan is secured against one of the development sites, accrues interest of 12% per annum and is repayable on the second anniversary of drawdown (being 1 October 2025). Interest of £121,548 (2023 - £nil) has been incurred on this loan during the year.