Churn Properties Limited 04950306 false 2023-09-01 2024-08-31 2024-08-31 The principal activity of the company is that of property development. The company owns a freehold property in Malmesbury that was specifically purchased for redevelopment. However, market conditions have rendered this uneconomic to do, and therefore, the property has been let in the short term. Digita Accounts Production Advanced 6.30.9574.0 true 04950306 2023-09-01 2024-08-31 04950306 2024-08-31 04950306 core:AcceleratedTaxDepreciationDeferredTax 2024-08-31 04950306 core:OtherDeferredTax 2024-08-31 04950306 core:RevaluationInvestmentPropertyDeferredTax 2024-08-31 04950306 core:CurrentFinancialInstruments 2024-08-31 04950306 core:CurrentFinancialInstruments core:WithinOneYear 2024-08-31 04950306 core:Non-currentFinancialInstruments 2024-08-31 04950306 core:Non-currentFinancialInstruments core:AfterOneYear 2024-08-31 04950306 core:MoreThanFiveYears 1 2024-08-31 04950306 core:FurnitureFittingsToolsEquipment 2024-08-31 04950306 bus:SmallEntities 2023-09-01 2024-08-31 04950306 bus:AuditExemptWithAccountantsReport 2023-09-01 2024-08-31 04950306 bus:FilletedAccounts 2023-09-01 2024-08-31 04950306 bus:SmallCompaniesRegimeForAccounts 2023-09-01 2024-08-31 04950306 bus:RegisteredOffice 2023-09-01 2024-08-31 04950306 bus:Director1 2023-09-01 2024-08-31 04950306 bus:PrivateLimitedCompanyLtd 2023-09-01 2024-08-31 04950306 core:FurnitureFittingsToolsEquipment 2023-09-01 2024-08-31 04950306 countries:EnglandWales 2023-09-01 2024-08-31 04950306 2023-08-31 04950306 core:FurnitureFittingsToolsEquipment 2023-08-31 04950306 2022-09-01 2023-08-31 04950306 2023-08-31 04950306 core:AcceleratedTaxDepreciationDeferredTax 2023-08-31 04950306 core:ProvisionsDeferredTax 2023-08-31 04950306 core:RevaluationInvestmentPropertyDeferredTax 2023-08-31 04950306 core:CurrentFinancialInstruments 2023-08-31 04950306 core:CurrentFinancialInstruments core:WithinOneYear 2023-08-31 04950306 core:Non-currentFinancialInstruments 2023-08-31 04950306 core:Non-currentFinancialInstruments core:AfterOneYear 2023-08-31 04950306 core:MoreThanFiveYears 1 2023-08-31 04950306 core:FurnitureFittingsToolsEquipment 2023-08-31 iso4217:GBP xbrli:pure

Registration number: 04950306

Prepared for the registrar

Churn Properties Limited

Annual Report and Unaudited Financial Statements

for the Year Ended 31 August 2024

 

Churn Properties Limited

(Registration number: 04950306)
Balance Sheet as at 31 August 2024

Note

2024
£

2023
£

Fixed assets

 

Tangible assets

4

1,981

2,331

Investment properties

5

775,000

1,175,000

 

776,981

1,177,331

Current assets

 

Debtors

6

2,000

6,344

Cash at bank and in hand

 

4,019

2,136

 

6,019

8,480

Creditors: Amounts falling due within one year

7

(304,381)

(478,963)

Net current liabilities

 

(298,362)

(470,483)

Total assets less current liabilities

 

478,619

706,848

Creditors: Amounts falling due after more than one year

7

(227,550)

(417,657)

Deferred tax liabilities

9

(61,590)

(71,031)

Net assets

 

189,479

218,160

Capital and reserves

 

Called up share capital

1

1

Retained earnings

189,478

218,159

Shareholders' funds

 

189,479

218,160

For the financial year ending 31 August 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 directors have not delivered to the registrar a copy of the Profit and Loss Account.

Approved and authorised by the Board on 26 August 2025 and signed on its behalf by:
 


N P Keen
Director

 

Churn Properties Limited

Notes to the Unaudited Financial Statements for the Year Ended 31 August 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:
Triangle House
62 Victoria Road
Cirencester
Gloucestershire
GL7 1ES

 

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.

Group accounts not prepared

The company has taken advantage of the exemption in section 398 of the Companies Act 2006 from the requirement to prepare consolidated financial statements, on the grounds that it is a small group.

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 or key sources of estimation uncertainty 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 receivable for rent.

 

Churn Properties Limited

Notes to the Unaudited Financial Statements for the Year Ended 31 August 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.

The carrying amount of deferred tax assets are reviewed at each reporting date and a valuation allowance is set up against deferred tax assets so that the net carrying amount equals the highest amount that is more likely than not to be recovered based on current or future taxable profit.

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

Fixtures, fittings and equipment

15% reducing balance

Investment property

Investment property is carried at fair value, derived from the current market prices for comparable real estate determined annually by external valuers. The valuers use observable market prices, adjusted if necessary for any difference in the nature, location or condition of the specific asset. Changes in fair value are recognised in profit or loss.

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.

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.

Leases

Leases in which substantially all the risks and rewards of ownership are retained by the lessor are classified as operating leases. Payments made under operating leases are charged to profit or loss on a straight-line basis over the period of the lease.

 

Churn Properties Limited

Notes to the Unaudited Financial Statements for the Year Ended 31 August 2024

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.

Dividends

Dividend distribution to the company’s shareholders is recognised as a liability in the financial statements in the reporting period in which the dividends are declared.

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 2 (2023 - 2).

 

Churn Properties Limited

Notes to the Unaudited Financial Statements for the Year Ended 31 August 2024

 

4

Tangible assets

Furniture, fittings and equipment
 £

Cost

At 1 September 2023

21,258

At 31 August 2024

21,258

Depreciation

At 1 September 2023

18,927

Charge for the year

350

At 31 August 2024

19,277

Carrying amount

At 31 August 2024

1,981

At 31 August 2023

2,331

 

5

Investment properties

£

At 1 September 2023

1,175,000

Disposals

(400,000)

At 31 August 2024

775,000

The properties represent their market value at 31 August 2024.

There has been no valuation of investment property by an independent valuer.

 

6

Debtors

Note

2024
£

2023
£

Amounts owed by related parties

10

-

4,344

Other debtors

 

2,000

2,000

 

2,000

6,344

 

Churn Properties Limited

Notes to the Unaudited Financial Statements for the Year Ended 31 August 2024

 

7

Creditors

Note

2024
£

2023
£

Due within one year

 

Loans and borrowings

8

14,841

59,251

Accrued expenses

 

2,705

4,886

Amounts due to related parties

10

286,835

394,783

Corporation tax liability

 

-

20,043

 

304,381

478,963

Note

2024
£

2023
£

Due after one year

 

Loans and borrowings

8

227,550

417,657


 

2024
£

2023
£

After more than five years by instalments

159,223

285,912

-

-

Borrowings due after five years

The bank loans and overdraft are secured with a fixed and floating charge over the company's assets and those belonging to its associated companies:

Cowley & Son Limited
Matthews Independent Funeral Directors Limited

The company is also a joint guarantor for the bank loans and overdrafts of these related companies.

 

8

Loans and borrowings

Current loans and borrowings

2024
£

2023
£

Bank borrowings

14,841

59,251

Non-current loans and borrowings

2024
£

2023
£

Bank borrowings

227,550

417,657

 

Churn Properties Limited

Notes to the Unaudited Financial Statements for the Year Ended 31 August 2024

 

9

Deferred tax

Deferred tax assets and liabilities

2024

Asset
£

Liability
£

Fixed asset timing differences

-

495

Capital gains/(losses)

-

70,684

Losses and other deductions

9,589

-

9,589

71,179

2023

Asset
£

Liability
£

Fixed asset timing differences

-

583

Short term timing differences

146

-

Capital gains/(losses)

-

70,594

146

71,177

 

10

Related party transactions

At 31 August 2024, the company owed £14,656 (2023: the company was owed £4,344) to Matthews Independent Funeral Directors Limited.

At 31 August 2024, the company owed £272,179 (2023: £394,783) to its parent company, Cowley & Son Limited.

The loans are unsecured, interest free and repayable on demand.

Matthews Independent Funeral Directors Limited and Cowley & Son Limited are companies under common control of the directors N P Keen and R L H Orford.

 

11

Parent and ultimate parent undertaking

The company's immediate parent is Cowley & Son Limited, incorporated in England & Wales.