| Empire Residential Lettings Limited |
| Notes to the Accounts |
| for the year ended 28 February 2025 |
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| 1 |
Accounting policies |
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Basis of preparation |
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The accounts have been prepared under the historical cost convention and in accordance with FRS 102, The Financial Reporting Standard applicable in the UK and Republic of Ireland (as applied to small entities by section 1A of the standard). |
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Turnover |
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Turnover is measured at the fair value of the consideration received or receivable, net of discounts and value added taxes. Turnover includes revenue earned from the sale of goods and from the rendering of services. Turnover from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have transferred to the buyer. Turnover from the rendering of services is recognised by reference to the stage of completion of the contract. The stage of completion of a contract is measured by comparing the costs incurred for work performed to date to the total estimated contract costs. |
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Intangible fixed assets |
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Intangible fixed assets are measured at cost less accumulative amortisation and any accumulative impairment losses. |
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Tangible fixed assets |
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Tangible fixed assets are measured at cost less accumulative depreciation and any accumulative impairment losses. Depreciation is provided on all tangible fixed assets, other than freehold land, at rates calculated to write off the cost, less estimated residual value, of each asset evenly over its expected useful life, as follows: |
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Plant, machinery and motor vehicles |
over 4 years |
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Righ-of-use assets |
over the lease term |
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Debtors |
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Short term debtors are measured at transaction price (which is usually the invoice price), less any impairment losses for bad and doubtful debts. Loans and other financial assets are initially recognised at transaction price including any transaction costs and subsequently measured at amortised cost determined using the effective interest method, less any impairment losses for bad and doubtful debts. |
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Creditors |
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Short term creditors are measured at transaction price (which is usually the invoice price). Loans and other financial liabilities are initially recognised at transaction price net of any transaction costs and subsequently measured at amortised cost determined using the effective interest method. |
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Taxation |
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A current tax liability is recognised for the tax payable on the taxable profit of the current and past periods. A current tax asset is recognised in respect of a tax loss that can be carried back to recover tax paid in a previous period. Deferred tax is recognised in respect of all timing differences between the recognition of income and expenses in the financial statements and their inclusion in tax assessments. 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. Deferred tax is measured using the tax rates and laws that have been enacted or substantively enacted by the reporting date and that are expected to apply to the reversal of the timing difference, except for revalued land and investment property where the tax rate that applies to the sale of the asset is used. Current and deferred tax assets and liabilities are not discounted. |
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Leased assets |
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A lease is classified as a finance lease if it transfers substantially all the risks and rewards incidental to ownership. All other leases are classified as operating leases. The rights of use and obligations under finance leases are initially recognised as assets and liabilities at amounts equal to the fair value of the leased assets or, if lower, the present value of the minimum lease payments. Minimum lease payments are apportioned between the finance charge and the reduction in the outstanding liability using the effective interest rate method. The finance charge is allocated to each period during the lease so as to produce a constant periodic rate of interest on the remaining balance of the liability. Leased assets are depreciated in accordance with the company's policy for tangible fixed assets. If there is no reasonable certainty that ownership will be obtained at the end of the lease term, the asset is depreciated over the lower of the lease term and its useful life. Operating lease payments are recognised as an expense on a straight line basis over the lease term. |
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Right-of-use assets |
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Right-of-use assets are initially measured at cost, which includes the amount of the lease liability and any initial direct costs. They are subsequently depreciated on a straight-line basis over the lease term. |
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Lease liabilities |
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Lease liabilities are measured at the present value of lease payments, discounted at the company's incremental borrowing rate where the interest rate implicit in the lease cannot be readily determined. Lease liabilities are subsequently measured at amortised cost, with interest recognised as a finance cost. |
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Short-term leases |
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Short-term leases (lease term of 12 months or less) and leases of low-value assets are expensed to the profit and loss account on a straight-line basis. |
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| 2 |
Employees |
2025 |
|
2024 |
| Number |
Number |
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Average number of persons employed by the company |
7 |
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7 |
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| 3 |
Intangible fixed assets |
£ |
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Goodwill: |
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Cost |
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At 1 March 2024 |
30,000 |
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At 28 February 2025 |
30,000 |
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Amortisation |
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At 1 March 2024 |
3,250 |
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Provided during the year |
3,000 |
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At 28 February 2025 |
6,250 |
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Net book value |
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At 28 February 2025 |
23,750 |
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At 29 February 2024 |
26,750 |
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Goodwill is being written off in equal annual instalments over its estimated economic life of 10 years. |
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| 4 |
Tangible fixed assets |
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Plant, machinery and motor vehicles etc |
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Right-of-use asset |
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Total |
| £ |
£ |
£ |
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Cost |
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At 1 March 2024 |
28,853 |
|
- |
|
28,853 |
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Additions |
36,715 |
|
10,859 |
|
47,574 |
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At 28 February 2025 |
65,568 |
|
10,859 |
|
76,427 |
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Depreciation |
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At 1 March 2024 |
24,909 |
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- |
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24,909 |
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Charge for the year |
13,123 |
|
5,235 |
|
18,358 |
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At 28 February 2025 |
38,032 |
|
5,235 |
|
43,267 |
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Net book value |
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At 28 February 2025 |
27,536 |
|
5,624 |
|
33,160 |
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At 29 February 2024 |
3,944 |
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- |
|
3,944 |
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| 5 |
Debtors |
2025 |
|
2024 |
| £ |
£ |
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Trade debtors |
3,024 |
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- |
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Loans to associated companies |
|
76,819 |
|
111,119 |
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Prepayments |
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|
1,542 |
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1,542 |
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Other debtors |
5,300 |
|
5,300 |
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86,685 |
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117,961 |
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| 6 |
Creditors: amounts falling due within one year |
2025 |
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2024 |
| £ |
£ |
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Trade creditors |
9,031 |
|
14,981 |
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Loans from associated companies |
|
8,583 |
|
21,971 |
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Taxation and social security costs |
4,038 |
|
36,111 |
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Deferred income |
33,503 |
|
55,726 |
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Lease liabilities |
4,953 |
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- |
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Other creditors |
2,060 |
|
4,060 |
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62,168 |
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132,849 |
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| 7 |
Creditors: amounts falling due after one year |
2025 |
|
2024 |
| £ |
£ |
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Lease liabilities |
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1,074 |
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- |
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| 8 |
Application of IFRA 16 Leases |
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This is the first year the company has applied IFRS 16 Leases. Under the new standard, most leases are now recognised on the balance sheet. A right-of-use asset and a matching lease liability are recognised at the start of the lease. The asset is depreciated over the lease term, and the liability is reduced as lease payments are made, with interest charged to finance costs.
The company has adopted IFRS 16 using the modified retrospective approach. Comparatives have not been restated and continue to be shown under the previous standard (IAS 17).
At the date of first application, the company recognised right-of-use assets of £10,859 and lease liabilities of £10,859 in respect of vehicle leases previously treated as operating leases. |
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| 9 |
Related party transactions |
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At 28 February 2025, the company was owed the following:
£76,508 (2024: £110,808) owed by Empire Guaranteed Limited
£311 (2024: £311) owed by NYN Properties Ltd
These are included within debtors.
£8,583 (2024: £21,971) owed to Empire Residential Limited
This is included within creditors.
All of the above loans are unsecured, interest-free and have no fixed repayment terms.
The director, Mr Y Neocleous, has an interest in all of the above companies. |
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| 10 |
Transactions with the director |
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During the year, the director and 100% shareholder, Mr Y Neocleous, received dividends of £Nil (2024: £12,092). |
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| 11 |
Controlling party |
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At 28 February 2025, the company was under the control of Mr Y Neocleous, who owned 100% of the issued share capital. |
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| 12 |
Other information |
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Empire Residential Lettings Limited is a private company limited by shares and incorporated in England. Its registered office is: |
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Suite 1, 1 Old Court Mews |
|
311 Chase Road |
|
London |
|
N14 6JS |