Mercian Developments Limited 08194958 false 2023-12-01 2024-11-30 2024-11-30 The principal activity of the company is property development Digita Accounts Production Advanced 6.30.9574.0 true false 08194958 2023-12-01 2024-11-30 08194958 2024-11-30 08194958 core:CurrentFinancialInstruments 2024-11-30 08194958 core:CurrentFinancialInstruments core:WithinOneYear 2024-11-30 08194958 core:Non-currentFinancialInstruments 2024-11-30 08194958 core:Non-currentFinancialInstruments core:AfterOneYear 2024-11-30 08194958 core:FurnitureFittingsToolsEquipment 2024-11-30 08194958 core:LandBuildings 2024-11-30 08194958 core:MotorVehicles 2024-11-30 08194958 bus:SmallEntities 2023-12-01 2024-11-30 08194958 bus:AuditExemptWithAccountantsReport 2023-12-01 2024-11-30 08194958 bus:FilletedAccounts 2023-12-01 2024-11-30 08194958 bus:SmallCompaniesRegimeForAccounts 2023-12-01 2024-11-30 08194958 bus:RegisteredOffice 2023-12-01 2024-11-30 08194958 bus:Director2 2023-12-01 2024-11-30 08194958 bus:PrivateLimitedCompanyLtd 2023-12-01 2024-11-30 08194958 core:Buildings 2023-12-01 2024-11-30 08194958 core:FurnitureFittingsToolsEquipment 2023-12-01 2024-11-30 08194958 core:LandBuildings 2023-12-01 2024-11-30 08194958 core:MotorVehicles 2023-12-01 2024-11-30 08194958 core:PlantMachinery 2023-12-01 2024-11-30 08194958 core:Vehicles 2023-12-01 2024-11-30 08194958 core:KeyManagementPersonnelCloseFamilyMembersEntitiesUnderKeyManagementPersonnelsControl 2023-12-01 2024-11-30 08194958 core:Subsidiary1 2023-12-01 2024-11-30 08194958 core:Subsidiary1 1 2023-12-01 2024-11-30 08194958 core:Subsidiary1 countries:EnglandWales 2023-12-01 2024-11-30 08194958 countries:EnglandWales 2023-12-01 2024-11-30 08194958 2023-11-30 08194958 core:CostValuation 2023-11-30 08194958 core:FurnitureFittingsToolsEquipment 2023-11-30 08194958 core:LandBuildings 2023-11-30 08194958 core:MotorVehicles 2023-11-30 08194958 2022-12-01 2023-11-30 08194958 2023-11-30 08194958 core:CurrentFinancialInstruments 2023-11-30 08194958 core:CurrentFinancialInstruments core:WithinOneYear 2023-11-30 08194958 core:Non-currentFinancialInstruments 2023-11-30 08194958 core:Non-currentFinancialInstruments core:AfterOneYear 2023-11-30 08194958 core:FurnitureFittingsToolsEquipment 2023-11-30 08194958 core:LandBuildings 2023-11-30 08194958 core:MotorVehicles 2023-11-30 08194958 core:Subsidiary1 1 2022-12-01 2023-11-30 iso4217:GBP xbrli:pure

Registration number: 08194958

Prepared for the registrar

Mercian Developments Limited

Annual Report and Unaudited Financial Statements

for the Year Ended 30 November 2024

 

Mercian Developments Limited

(Registration number: 08194958)
Balance Sheet as at 30 November 2024

Note

2024
£

2023
£

Fixed assets

 

Tangible assets

4

68,929

22,339

Investments

5

50

50

 

68,979

22,389

Current assets

 

Stocks

224,074

305,893

Debtors

6

1,106,767

889,862

Cash at bank and in hand

 

37,182

21,054

 

1,368,023

1,216,809

Creditors: Amounts falling due within one year

7

(898,637)

(2,195,478)

Net current assets/(liabilities)

 

469,386

(978,669)

Total assets less current liabilities

 

538,365

(956,280)

Creditors: Amounts falling due after more than one year

7

(28,250)

(33,525)

Deferred tax liabilities

(6,282)

(4,244)

Net assets/(liabilities)

 

503,833

(994,049)

Capital and reserves

 

Called up share capital

1

1

Retained earnings

503,832

(994,050)

Shareholders' funds/(deficit)

 

503,833

(994,049)

For the financial year ending 30 November 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 in accordance with the special provisions relating to companies subject to the small companies regime within Part 15 of the Companies Act 2006.

These financial statements have been delivered in accordance with the provisions applicable to companies subject to the small companies regime. As permitted by section 444 (5A) of the Companies Act 2006, the director has not delivered to the registrar a copy of the Profit and Loss Account.

Approved and authorised by the Board on 8 August 2025 and signed on its behalf by:
 


C P Towers
Director

 

Mercian Developments Limited

Notes to the Unaudited Financial Statements for the Year Ended 30 November 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:
Paunceford Court
Munsley
Ledbury
Herefordshire
HR8 2SH

 

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 Section 1A smaller entities - 'The Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland' and the Companies Act 2006 (as applicable to companies subject to the small companies' regime).

Basis of preparation

These financial statements have been prepared using the historical cost convention except for, where disclosed in these accounting policies, certain items that are shown at fair value.

The presentational currency of the financial statements is Pounds Sterling, being the functional currency of the primary economic environment in which the company operates. Monetary amounts in these financial statements are rounded to the nearest Pound.

Critical accounting judgements and key sources of estimation uncertainty
In the application of the company’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amounts of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods.
 

Judgements

No significant judgements have been made by management in preparing these financial statements.

Key sources of estimation uncertainty

No key sources of estimation uncertainty have been identified by management in preparing these financial statements other than those detailed in these accounting policies.

Revenue recognition

Turnover comprises the fair value of the consideration received or receivable for the sale of goods and provision of services in the ordinary course of the company’s activities. Turnover is shown net of sales/value added tax, returns, rebates and discounts and after eliminating sales within the company.

The company recognises revenue when:
The amount of revenue can be reliably measured;
it is probable that future economic benefits will flow to the entity;
and specific criteria have been met for each of the company's activities.

 

Mercian Developments Limited

Notes to the Unaudited Financial Statements for the Year Ended 30 November 2024

Tax

The tax expense for the period comprises current and deferred tax. Tax is recognised in the profit and loss account, except that a charge attributable to an item of income or expense recognised as other comprehensive income is also recognised directly in other comprehensive income.

The current 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 temporary differences arising between the tax bases of assets and liabilities and their carrying amounts in the financial statements and on unused tax losses or tax credits in the company. Deferred income 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 statement of financial position 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

Leasehold improvements

15% reducing balance

Plant and machinery

15% reducing balance/25% straight line

Fixtures, fittings & equipment

33% straight line

Motor vehicles

15% reducing balance

Investments

Investments in equity shares which are publicly traded or where the fair value can be measured reliably are initially measured at fair value, with changes in fair value recognised in profit or loss. Investments in equity shares which are not publicly traded and where fair value cannot be measured reliably are measured at cost less impairment.


Interest income on debt securities, where applicable, is recognised in income using the effective interest method. Dividends on equity securities are recognised in income when receivable.

Cash and cash equivalents

Cash and cash equivalents comprise cash on hand and call deposits, and other short-term highly liquid investments that are readily convertible to a known amount of cash and are subject to an insignificant risk of change in value.

Trade debtors

Trade debtors are amounts due from customers for merchandise sold or services performed in the ordinary course of business.

Trade debtors are recognised initially at the transaction price. All trade debtors are repayable within one year and hence are included at the undiscounted cost of cash expected to be received. A provision for the impairment of trade debtors is established when there is objective evidence that the company will not be able to collect all amounts due according to the original terms of the debtors.

Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost is determined using the first-in, first-out (FIFO) method.

The cost of finished goods and work in progress comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the inventories to their present location and condition. At each reporting date, stocks are assessed for impairment. If stocks are impaired, the carrying amount is reduced to its selling price less costs to complete and sell; the impairment loss is recognised immediately in profit or loss.

 

Mercian Developments Limited

Notes to the Unaudited Financial Statements for the Year Ended 30 November 2024

Trade creditors

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Accounts payable are classified as current liabilities if the company does not have an unconditional right, at the end of the reporting period, to defer settlement of the creditor for at least twelve months after the reporting date. If there is an unconditional right to defer settlement for at least twelve months after the reporting date, they are presented as non-current liabilities.

Trade creditors are recognised initially at the transaction price and all are repayable within one year and hence are included at the undiscounted amount of cash expected to be paid.

Borrowings

Interest-bearing borrowings are initially recorded at fair value, net of transaction costs. Interest-bearing borrowings are subsequently carried at amortised cost, with the difference between the proceeds, net of transaction costs, and the amount due on redemption being recognised as a charge to the profit and loss account over the period of the relevant borrowing.

Interest expense is recognised on the basis of the effective interest method and is included in interest payable and similar charges.

Borrowings are classified as current liabilities unless the company has an unconditional right to defer settlement of the liability for at least twelve months after the reporting date.

Share capital

Ordinary shares are classified as equity. Equity instruments are measured at the fair value of the cash or other resources received or receivable, net of the direct costs of issuing the equity instruments. If payment is deferred and the time value of money is material, the initial measurement is on a present value basis.

Defined contribution pension obligation

A defined contribution plan is a pension plan under which fixed contributions are paid into a pension fund and the company has no legal or constructive obligation to pay further contributions even if the fund does not hold sufficient assets to pay all employees the benefits relating to employee service in the current and prior periods.

Contributions to defined contribution plans are recognised as employee benefit expense when they are due. If contribution payments exceed the contribution due for service, the excess is recognised as a prepayment.

Financial instruments


Classification
Financial instruments are classified and accounted for according to the substance of the contractual arrangement, as financial assets, financial liabilities or equity instruments. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities. Where shares are issued, any component that creates a financial liability of the company is presented as a liability on the balance sheet. The corresponding dividends relating to the liability component are charged as interest expenses in the profit and loss account.


Recognition and measurement
All financial assets and liabilities are initially measured at transaction price (including transaction costs), except for those financial assets classified as at fair value through profit or loss, which are initially measured at fair value (which is normally the transaction price excluding transaction costs), unless the arrangement constitutes a financing transaction. If an arrangement constitutes a financing transaction, the financial asset or financial liability is measured at the present value of the future payments discounted at a market rate of interest for a similar debt instrument.


Impairment
Assets, other than those measured at fair value, are assessed for indicators of impairment at each balance sheet date. If there is objective evidence of impairment, an impairment loss is recognised in profit or loss.

 

3

Staff numbers

The average number of persons employed by the company (including directors) during the year, was 6 (2023 - 6).

 

Mercian Developments Limited

Notes to the Unaudited Financial Statements for the Year Ended 30 November 2024

 

4

Tangible assets

Leasehold improvements
£

Furniture, fittings and equipment
 £

Motor vehicles
 £

Total
£

Cost

At 1 December 2023

12,758

27,176

-

39,934

Additions

832

-

52,400

53,232

At 30 November 2024

13,590

27,176

52,400

93,166

Depreciation

At 1 December 2023

5,152

12,443

-

17,595

Charge for the year

1,172

2,850

2,620

6,642

At 30 November 2024

6,324

15,293

2,620

24,237

Carrying amount

At 30 November 2024

7,266

11,883

49,780

68,929

At 30 November 2023

7,606

14,733

-

22,339

 

5

Investments

2024
£

2023
£

Investments in subsidiaries

50

50

Subsidiaries

£

Cost and carrying amount

At 1 December 2023 and 30 November 2024

50

Details of undertakings

Details of the investments in which the company holds 20% or more of the nominal value of any class of share capital are as follows:

Undertaking

Registered office

Holding

Proportion of voting rights and shares held

2024

2023

Subsidiary undertakings

Mercroft Estates Limited

England and Wales

Ordinary

50%

50%

The aggregate amount of capital and reserves of Mercroft Estates Limited at the end of the period was £(24,902).

Subsidiary undertakings

Mercroft Estates Limited

The principal activity of Mercroft Estates Limited is development of building projects.

 

Mercian Developments Limited

Notes to the Unaudited Financial Statements for the Year Ended 30 November 2024

 

6

Debtors

Note

2024
£

2023
£

Trade debtors

 

3,474

744

Receivables from related parties

9

693,107

659,567

Prepayments

 

1,499

2,452

Other debtors

 

408,687

227,099

 

1,106,767

889,862

 

7

Creditors

Note

2024
£

2023
£

Due within one year

 

Loans and borrowings

8

6,000

6,395

Trade creditors

 

2,031

586

Amounts due to related parties

9

369,505

1,983,125

Taxation and social security

 

517,685

13,849

Accruals and deferred income

 

3,416

39,703

Other creditors

 

-

151,820

 

898,637

2,195,478

Note

2024
£

2023
£

Due after one year

 

Loans and borrowings

8

28,250

33,525

 

8

Loans and borrowings

Current loans and borrowings

2024
£

2023
£

Bank borrowings

6,000

6,395

Non-current loans and borrowings

2024
£

2023
£

Bank borrowings

28,250

33,525

 

Mercian Developments Limited

Notes to the Unaudited Financial Statements for the Year Ended 30 November 2024

 

9

Related party transactions

During the period the company had loans with group companies. As at 30 November 2024 the amount owed to the company was £492,745 (2023: £659,567) with £369,505 (2023: £1,983,125) due from the company.

The company also had loans with connected companies. As at 30 November 2024 the amount owed to the company was £200,362 (2023: £79,963) with £Nil (2023: £149,850) due from the company.

The company also had loans with related parties. As at 30 November 2024 the amount owed to the company was £95,356 (2023: £84,150) with £Nil (2023: £1,970) due from the company.

During the period the company received management fees from group companies of £Nil (2023: £430,000).

 

 

10

Parent and ultimate parent undertaking

The company's immediate parent is MH Reconstruction 2025 Limited, incorporated in England and Wales.