During the year, the company acquired a commercial property which is held as an investment property. The acquisition was financed through an interest-only mortgage facility, loan from associated company and the directors.
In accordance with FRS 102, the property is recognised at cost on initial acquisition, inclusive of directly attributable costs such as legal and professional fees. Subsequent to initial recognition, the property will be measured at fair value with movements in value reflected in the profit and loss account.
Rental income arising from the property is recognised on an accruals basis in the profit and loss account. Interest payable on the mortgage facility is charged to the profit and loss account as incurred.No rents were revied during the financial year neded 31 January 2025 as property was undergoing refurbishment.
The directors consider the acquisition of this property to be a strategic investment to provide the company with a long-term income stream and potential capital appreciation.