| MORECO PROPERTY LIMITED |
| FINANCIAL STATEMENTS |
| FOR THE PERIOD |
| 1ST JANUARY 2024 TO 28TH DECEMBER 2024 |
| MORECO PROPERTY LIMITED |
| FINANCIAL STATEMENTS |
| FOR THE PERIOD |
| 1ST JANUARY 2024 TO 28TH DECEMBER 2024 |
| MORECO PROPERTY LIMITED (REGISTERED NUMBER: 13536906) |
| CONTENTS OF THE FINANCIAL STATEMENTS |
| FOR THE PERIOD 1ST JANUARY 2024 TO 28TH DECEMBER 2024 |
| Page |
| Company Information | 1 |
| Balance Sheet | 2 |
| Notes to the Financial Statements | 3 |
| MORECO PROPERTY LIMITED |
| COMPANY INFORMATION |
| FOR THE PERIOD 1ST JANUARY 2024 TO 28TH DECEMBER 2024 |
| DIRECTORS: |
| REGISTERED OFFICE: |
| REGISTERED NUMBER: |
| AUDITORS: |
| First Floor, Woburn Court |
| 2 Railton Road |
| Woburn Rd Ind Est |
| Kempston |
| Bedfordshire |
| MK42 7PN |
| MORECO PROPERTY LIMITED (REGISTERED NUMBER: 13536906) |
| BALANCE SHEET |
| 28TH DECEMBER 2024 |
| 2024 | 2023 |
| Notes | £ | £ | £ |
| FIXED ASSETS |
| Tangible assets | 4 |
| CURRENT ASSETS |
| Debtors | 5 |
| CREDITORS |
| Amounts falling due within one year | 6 |
| NET CURRENT ASSETS |
| TOTAL ASSETS LESS CURRENT LIABILITIES |
| CAPITAL AND RESERVES |
| Called up share capital | 8 |
| Other reserves |
| Retained earnings | ( |
) | ( |
) |
| SHAREHOLDERS' FUNDS |
| The financial statements were approved by the Board of Directors and authorised for issue on |
| MORECO PROPERTY LIMITED (REGISTERED NUMBER: 13536906) |
| NOTES TO THE FINANCIAL STATEMENTS |
| FOR THE PERIOD 1ST JANUARY 2024 TO 28TH DECEMBER 2024 |
| 1. | STATUTORY INFORMATION |
| Moreco Property Limited is a |
| 2. | ACCOUNTING POLICIES |
| Basis of preparing the financial statements |
| The financial statements are presented in sterling which is the functional currency of the company and rounded to the nearest £. |
| The significant accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all years presented unless otherwise stated. |
| Related party exemption |
| The company has taken advantage of exemption, under the terms of Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland', not to disclose related party transactions with wholly owned subsidiaries within the group. |
| Significant judgements and estimates |
| Estimates and judgements are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. |
| i) Impairment of tangible fixed assets |
| The Company tests whether tangible fixed assets are impaired where there are indicators that there is a risk of impairment. This requires an estimation of the value in use of the cash-generating units in which these assets reside. The assessment of value in use is compared to the carrying value of assets. This requires estimation of future cash flows. |
| Revenue recognition |
| Revenue is measured at the fair value of consideration received or receivable and represents amounts receivable for rental of property provided in the normal course of business, net of discounts, VAT and other sales related taxes. |
| Rental income is recognised on an accrual basis. |
| MORECO PROPERTY LIMITED (REGISTERED NUMBER: 13536906) |
| NOTES TO THE FINANCIAL STATEMENTS - continued |
| FOR THE PERIOD 1ST JANUARY 2024 TO 28TH DECEMBER 2024 |
| 2. | ACCOUNTING POLICIES - continued |
| Tangible fixed assets |
| Tangible fixed assets are stated at historical cost less accumulated depreciation. Historical cost includes the original purchase price and expenditure directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management. |
| The company adds to the carrying amount of any item of tangible fixed assets the cost of replacing parts of such an item when the cost is incurred if the replacement part is expected to provide incremental future benefits to the company. The carrying amount of the replaced part is derecognised. All other repairs and maintenance are charged to the income statement during the period in which they are incurred. Assets in the course of construction are stated at cost. These assets are not depreciated until they are available for use. |
| Depreciation is provided at rates calculated to write off the cost less estimated residual value of each asset on the following basis: |
| Land | Not depreciated |
| Freehold Property | 50 years straight line |
| Plant and Machinery | 5 years straight line |
| Furniture & Fixtures | 5 years straight line |
| The assets residual values and useful lives are reviewed and adjusted if appropriate, at the end of each reporting period, the effect of any change is accounted for prospectively. |
| Taxation |
| Taxation for the period comprises current and deferred tax. Tax is recognised in the Income Statement, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. |
| Current or deferred taxation assets and liabilities are not discounted. |
| Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date. |
| Deferred tax |
| Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date. |
| Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the period end and that are expected to apply to the reversal of the timing difference. |
| Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. |
| Cash and cash equivalents |
| Cash and cash equivalents includes cash in hand, deposits held at call with banks, other short term highly liquid investments with original maturities of three months or less and bank overdrafts. |
| MORECO PROPERTY LIMITED (REGISTERED NUMBER: 13536906) |
| NOTES TO THE FINANCIAL STATEMENTS - continued |
| FOR THE PERIOD 1ST JANUARY 2024 TO 28TH DECEMBER 2024 |
| 2. | ACCOUNTING POLICIES - continued |
| Financial instruments |
| The company has chosen to adopt Sections 11 and 12 of FRS 102 in respect of financial instruments. |
| i) Financial assets |
| Basic financial assets, including trade and other receivables, cash and bank balances, are initially recognised at transaction price. |
| Such assets are subsequently carried at amortised cost using the effective interest method. |
| At the end of each reporting period financial assets measured at amortised cost are assessed for objective evidence of impairment. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset's original effective interest rate. The impairment loss is recognised in profit or loss. |
| If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss. |
| Financial assets are derecognised when (a) the contractual rights to the cash flows from the asset expire or are settled, or (b) substantially all the risks and rewards of the ownership of the asset are transferred to another party or (c) despite having retained some significant risks and rewards of ownership, control of the asset has been transferred to another party who has the practical ability to unilaterally sell the asset to an unrelated third party without imposing additional restrictions. |
| ii) Financial liabilities |
| Basic financial liabilities, including trade and other payables, bank loans and loans from fellow group companies, are initially recognised at transaction price. |
| Financial liabilities are derecognised when the liability is extinguished, that is when the contractual obligation is discharged, cancelled or expires. |
| MORECO PROPERTY LIMITED (REGISTERED NUMBER: 13536906) |
| NOTES TO THE FINANCIAL STATEMENTS - continued |
| FOR THE PERIOD 1ST JANUARY 2024 TO 28TH DECEMBER 2024 |
| 2. | ACCOUNTING POLICIES - continued |
| Share capital |
| Ordinary shares are classified as equity. |
| Going concern |
| The Directors have conducted a comprehensive review of the Company's financial position and its ability to continue as a going concern, in accordance with the principles set out in UK GAAP (FRS 102, Section 3.8). This assessment has considered the Company's operations, cash flows, liquidity, and broader financial arrangements within the context of the business environment in which it operates. |
| Furthermore, in assessing the Company's ability to continue as a going concern, the Directors have prepared cash flow forecasts for a period of not less than twelve months from the date of signing these accounts. These forecasts take into account the Company's current financial position, the expected impact of the strategic measures implemented, and the continued support from our parent company. Based on these forecasts and current financial indicators, the Directors believe that the Company has adequate resources to continue in operational existence for the foreseeable future. |
| Accordingly, the financial statements have been prepared on a going concern basis, reflecting the Directors' belief that the Company will continue to meet its liabilities as they fall due. |
| On this basis, the Directors of the Company believe it is appropriate to continue to adopt the going concern basis of accounting in preparing these financial statements. |
| 3. | EMPLOYEES AND DIRECTORS |
| The average number of employees during the period was NIL (2023 - NIL). |
| 4. | TANGIBLE FIXED ASSETS |
| Fixtures |
| Freehold | Plant and | and |
| property | machinery | fittings | Totals |
| £ | £ | £ | £ |
| COST |
| At 1st January 2024 |
| and 28th December 2024 |
| DEPRECIATION |
| At 1st January 2024 |
| Charge for period |
| Charge written back | (980,764 | ) | - | - | (980,764 | ) |
| At 28th December 2024 |
| NET BOOK VALUE |
| At 28th December 2024 |
| At 31st December 2023 |
| MORECO PROPERTY LIMITED (REGISTERED NUMBER: 13536906) |
| NOTES TO THE FINANCIAL STATEMENTS - continued |
| FOR THE PERIOD 1ST JANUARY 2024 TO 28TH DECEMBER 2024 |
| 4. | TANGIBLE FIXED ASSETS - continued |
| The carrying amount of the company's tangible fixed assets includes an amount of £nil (2023: £nil) in respect of assets held under finance leases. |
| The charge written back for Freehold property of (£980,764) is due to the effects of the prior period error and change in estimate as reflected in notes 12 and 13 of the financial statements. The charge written back was required to revise the current year depreciation charge to align with the revised fixed asset register. |
| 5. | DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
| 2024 | 2023 |
| £ | £ |
| Amounts owed by group undertakings |
| Amounts owed by participating interests | 11,280,000 | - |
| Prepayments and accrued income |
| 6. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
| 2024 | 2023 |
| £ | £ |
| Bank loans and overdrafts |
| Trade creditors |
| Amounts owed to participating interests | 11,280,000 | - |
| Other creditors |
| Accruals and deferred income |
| 7. | SECURED DEBTS |
| The following secured debts are included within creditors: |
| 2024 | 2023 |
| £ | £ |
| Amounts owed to participating | 11,280,000 | - |
| The loan was received from a company with common directors, and is secured against the properties held by Moreco Property Limited. The loan is repayable on demand and is interest free. |
| 8. | CALLED UP SHARE CAPITAL |
| Allotted, issued and fully paid: |
| Number: | Class: | Nominal | 2024 | 2023 |
| value: | £ | £ |
| Ordinary | £1 | 1 | 1 |
| MORECO PROPERTY LIMITED (REGISTERED NUMBER: 13536906) |
| NOTES TO THE FINANCIAL STATEMENTS - continued |
| FOR THE PERIOD 1ST JANUARY 2024 TO 28TH DECEMBER 2024 |
| 9. | DISCLOSURE UNDER SECTION 444(5B) OF THE COMPANIES ACT 2006 |
| The Report of the Auditors was unqualified. |
| for and on behalf of |
| 10. | ULTIMATE PARENT AND CONTROLLING PARTIES |
| The immediate Parent Company of Moreco Property Limited is Moreco Group Limited, a Company registered in the United Kingdom. The ultimate parent company is Moreco Holdco Limited, a Company registered in the United Kingdom. The Directors consider the ultimate controlling Parties to be Mr A Hussain and Mr RJ Nijjar. |
| These financial statements are consolidated within the consolidated financial statements of Moreco Holdco Limited. The consolidated accounts can be obtained from the head office, Second Floor Park View, Riverside Way, Camberley, England, GU15 3YL. |
| 11. | RELATED PARTY TRANSACTIONS |
| All transactions are conducted under normal commercial terms. |
| During the year, the Company charged rental fees and other recharges of £2,073,054 and £71,605 respectively to Moreco Group Limited, the immediate parent of Moreco Property Limited. At year end, an amount of £4,112,293 was due by them. |
| In addition, the Company received a loan from a Company with common directors, which was advanced to another Company with common directors. At year end, an amount of £11,280,000 was due to/from the Companies with common directors. |
| MORECO PROPERTY LIMITED (REGISTERED NUMBER: 13536906) |
| NOTES TO THE FINANCIAL STATEMENTS - continued |
| FOR THE PERIOD 1ST JANUARY 2024 TO 28TH DECEMBER 2024 |
| 12. | PRIOR YEAR ADJUSTMENT |
| During 2022, an error was made in the cost and accumulated depreciation of fixed assets transferred to the company. The assets were erroneously carried over at net book value instead of the separate cost and accumulated depreciation amounts, which resulted in an understatement of cost and accumulated depreciation. Moreover, management reassessed the respective fixed asset categories to ensure the assets are disclosed in line with the nature thereof. The comparative amounts for 2023 have been restated. The effect of the restatement on the financial statements is summarised below: |
| Increase / (Decrease) in tangible fixed assets - cost | £1,646,676 |
| (Increase) / Decrease in tangible fixed assets - accumulated depreciation | (£1,646,676) |
| The comparative disclosure of tangible fixed assets - before restated amounts, was as follows: |
| Freehold Property |
| £ |
| COST |
| At 1st January 2023 | 10,845,994 |
| Disposals | (4,500,370 | ) |
| At 31st December 2023 | 6,345,624 |
| DEPRECIATION |
| At 1st January 2023 | 876,467 |
| Charge for the year | 811,202 |
| Eliminated on disposal | (753,266 | ) |
| At 31st December 2023 | 934,403 |
| NET BOOK VALUE |
| At 31st December 2023 | 5,411,221 |
| 13. | CHANGE IN ESTIMATE |
| During the year, the Company performed a review of the remaining useful lives of fixed assets - with reference to the original date of purchase, which resulted in changes in the expected usage and depreciation charges of certain fixed assets. Moreover, the Company further reviewed the depreciation rates to be applied to the revised fixed asset categories. |
| Land and buildings was previously written off at a rate of 0% to 2%. No changes were noted in terms of the depreciation rates applied however, due to changes brought in on acquisition dates of such assets, a change in depreciation was evident. Moreover, Furniture, Fittings and Equipment and Plant and Machinery asset categories were introduced with a rate of 20% applied to them. |
| The effect of these changes on actual depreciation charges, included in cost of sales, was as follows: |
| Increase / (Decrease) in depreciation charges | £173,424 |