Patwood Management Company (Sutton) Limited

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

1	General information

Patwood Management Company (Sutton) Limited (the 'company') is a private company limited by share capital, registered in England and Wales under the Companies Act. The address of the registered office is given on page 1.

2	Accounting policies

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.

Going concern

The directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Thus they continue to adopt the going concern basis in preparing the annual financial statements.

Statement of compliance

These financial statements have been prepared in accordance with Financial Reporting Standard 102 Section 1A - 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' and the Companies Act 2006.

Basis of preparation

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

The functional currency of the company is considered to be pound sterling (£) because that is the currency of the primary economic environment in which the company operates. The financial statements are presented in pound sterling (£).

Patwood Management Company (Sutton) Limited

Notes to the Unaudited Financial Statements
for the Year Ended 31 December 2024 (continued)

2	Accounting policies (continued)

Departures from Companies Act requirements

The financial statements depart from the standard format of the Companies Act 2006 in that turnover has been replaced by service charge income, cost of sales has been replaced by service charge expenditure and profit/(loss) has been replaced by surplus/(deficit). This departure, as permitted by s396 of the Companies Act 2006, has arisen because the directors consider that this presentation is more appropriate given the nature of the company's activity. The result for the year is unaffected by the accounting treatment adopted.

Judgements

There are no critical judgements made by the directors in the process of applying the company’s accounting policies which have the most significant effect on the amounts recognised in the financial statements.

Revenue recognition

Service charges collected are held on trust for the purpose of meeting the relevant costs in relation to the property in accordance with the provisions of section 42 of the Landlord and Tenant Act 1987.
Service charge income represents variable service charges receivable from the lessees for the year.

Taxation

The company acts as a trustee in respect of funds held to manage the property at Vine close and 21 Woodside Road, Sutton, Surrey. In consequence, service charge income and service charge expenditure items are neither taxable nor allowable for corporation tax purposes and therefore there is no liability to UK corporation tax.

Cash and cash equivalents

Cash and cash equivalents comprise cash at bank and are subject to an insignificant risk of change in value.

Receivables

Service charge arrears are amounts due at the financial year end from the lessees.

Payables

Payables 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.

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.

Patwood Management Company (Sutton) Limited

Notes to the Unaudited Financial Statements
for the Year Ended 31 December 2024 (continued)

2	Accounting policies (continued)

Financial instruments

The company only has financial assets and financial liabilities of a kind that qualify as basic financial instruments. Basic financial instruments are initially recognised at transaction value and subsequently measured at their settlement value.

3	Staff numbers

The average number of persons employed by the company (including the director) during the year, was 0 (2023 - 0).

4	Receivables

	2024 £	2023 £
Service charge arrears	4,532	4,047
Service charges due (in respect of advance demands)	26,751	24,661
Prepayments & accrued income	6,718	4,895
	38,001	33,603

5	Cash and cash equivalents

	2024 £	2023 £
Cash at bank - Metro Bank Plc	20,815	19,866

Service charge monies are held in trust at Metro Bank Plc under the title CECPM Limited Client Account Patwood Management.

Patwood Management Company (Sutton) Limited

Notes to the Unaudited Financial Statements
for the Year Ended 31 December 2024 (continued)

6

Payables

	2024 £	2023 £
Due within one year
Accrued expenses	2,681	2,481
Deferred income - advance service charge demands	27,567	25,487
	30,248	27,968

7	Share capital and reserves

Allotted, called up and fully paid shares

	2024		2023
	No.	£	No.	£
Ordinary shares of £10 each	18	180	18	180

The company has one class of share capital which carries no right to fixed income.

8

Reserves

	General reserve
	£
At 1 January 2024	25,321
Surplus for the year	3,067
At 31 December 2024	28,388

General reserve

The general reserve represents cumulative surpluses and deficits.

9	Related party transactions

There were no related party transactions to disclose.