REGISTERED NUMBER: 08317743 (England and Wales)

Report of the Directors and

Unaudited Financial Statements for the Year Ended 31 May 2025

for

Merrow Property Limited

Page

Company Information

1

Report of the Directors

2

Chartered Accountants' Report

3

Income Statement

4

Statement of Financial Position

5

Statement of Changes in Equity

7

Notes to the Financial Statements

8

DIRECTORS:

C J Smith

D J Smith

D E Smith

F A Smith

REGISTERED OFFICE:

Second Floor

Curzon House

24 High Street

Banstead

Surrey

SM7 2LJ

REGISTERED NUMBER:

08317743 (England and Wales)

ACCOUNTANTS:

Ascendant Partners Limited

Second Floor

Curzon House

24 High Street

Banstead

Surrey

SM7 2LJ

The directors present their report with the financial statements of the company for the year ended 31 May 2025.

PRINCIPAL ACTIVITY

The principal activity of the company in the year under review was that of property development, investment and management.

DIRECTORS

The directors shown below have held office during the whole of the period from 1 June 2024 to the date of this report.

C J Smith

D J Smith

D E Smith

F A Smith

This report has been prepared in accordance with the provisions of Part 15 of the Companies Act 2006 relating to small companies.

ON BEHALF OF THE BOARD:

C J Smith - Director

30 September 2025

In order to assist you to fulfil your duties under the Companies Act 2006, we have prepared for your approval the financial statements of Merrow Property Limited for the year ended 31 May 2025 which comprise the Income Statement, Statement of Financial Position, Statement of Changes in Equity and the related notes from the company's accounting records and from information and explanations you have given us.

As a practising member firm of the Institute of Chartered Accountants in England and Wales (ICAEW), we are subject to its ethical and other professional requirements which are detailed within the ICAEW's regulations and guidance at http://www.icaew.com/en/membership/regulations-standards-and-guidance.

This report is made solely to the Board of Directors of Merrow Property Limited, as a body, in accordance with the terms of our engagement letter dated 28 November 2017. Our work has been undertaken solely to prepare for your approval the financial statements of Merrow Property Limited and state those matters that we have agreed to state to the Board of Directors of Merrow Property Limited, as a body, in this report in accordance with ICAEW Technical Release 07/16AAF. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than Merrow Property Limited and its Board of Directors, as a body, for our work or for this report.

It is your duty to ensure that Merrow Property Limited has kept adequate accounting records and to prepare statutory financial statements that give a true and fair view of the assets, liabilities, financial position and profit of Merrow Property Limited. You consider that Merrow Property Limited is exempt from the statutory audit requirement for the year.

We have not been instructed to carry out an audit or a review of the financial statements of Merrow Property Limited. For this reason, we have not verified the accuracy or completeness of the accounting records or information and explanations you have given to us and we do not, therefore, express any opinion on the statutory financial statements.

Ascendant Partners Limited

Second Floor

Curzon House

24 High Street

Banstead

Surrey

SM7 2LJ

30 September 2025

REVENUE

76,675

63,954

Cost of sales

(24,761

)

(15,120

)

GROSS PROFIT

51,914

48,834

Administrative expenses

(2,192

)

(2,064

)

OPERATING PROFIT

49,722

46,770

Interest receivable and similar income

-

18

49,722

46,788

Interest payable and similar expenses

4

(2,464

)

(2,793

)

PROFIT BEFORE TAXATION

47,258

43,995

Tax on profit

5

(10,648

)

(29,866

)

PROFIT FOR THE FINANCIAL YEAR

36,610

14,129

FIXED ASSETS

Investment property

6

1,775,000

1,775,000

1,775,000

1,775,000

CURRENT ASSETS

Debtors

7

2,608

2,551

Cash at bank

5,535

6,969

8,143

9,520

CREDITORS

Amounts falling due within one year

8

273,788

272,552

NET CURRENT LIABILITIES

(265,645

)

(263,032

)

TOTAL ASSETS LESS CURRENT LIABILITIES

1,509,355

1,511,968

CREDITORS

Amounts falling due after more than one year

9

(901,285

)

(940,508

)

PROVISIONS FOR LIABILITIES

11

(83,675

)

(83,675

)

NET ASSETS

524,395

487,785

CAPITAL AND RESERVES

Called up share capital

100

100

Fair value reserve

303,513

303,513

Retained earnings

220,782

184,172

SHAREHOLDERS' FUNDS

524,395

487,785

The company is entitled to exemption from audit under Section 477 of the Companies Act 2006 for the year ended 31 May 2025.

The members have not required the company to obtain an audit of its financial statements for the year ended 31 May 2025 in accordance with Section 476 of the Companies Act 2006.

The directors acknowledge their responsibilities for:

(a)	ensuring that the company keeps accounting records which comply with Sections 386 and 387 of the Companies Act 2006 and

(b)

preparing financial statements which give a true and fair view of the state of affairs of the company as at the end of each financial year and of its profit or loss for each financial year in accordance with the requirements of Sections 394 and 395 and which otherwise comply with the requirements of the Companies Act 2006 relating to financial statements, so far as applicable to the company.

The financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies regime.

The financial statements were approved by the Board of Directors and authorised for issue on 30 September 2025 and were signed on its behalf by:

C J Smith - Director

Called up

Fair

share

Retained

value

Total

capital

earnings

reserve

equity

£

£

£

£

Balance at 1 June 2023

100

149,961

323,595

473,656

Changes in equity

Total comprehensive income

-

34,211

(20,082

)

14,129

Balance at 31 May 2024

100

184,172

303,513

487,785

Changes in equity

Total comprehensive income

-

36,610

-

36,610

Balance at 31 May 2025

100

220,782

303,513

524,395

1.	STATUTORY INFORMATION

Merrow Property Limited is a private company, limited by shares , registered in England and Wales. The company's registered number and registered office address can be found on the Company Information page.

The presentation currency of the financial statements is the Pound Sterling (£).

2.	ACCOUNTING POLICIES

Basis of preparing the financial statements

These financial statements have been prepared in accordance with Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" including the provisions of Section 1A "Small Entities" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention as modified by the revaluation of certain assets.

Going concern

The preparation of the financial statements requires the directors to make an assessment of the entity's ability to continue as a going concern. The directors have reviewed this and consider it appropriate to prepare the financial statements on a going concern basis.

Revenue

Revenue represents rental income receivable.

Investment property

Investment property is shown at most recent valuation. Any aggregate surplus or deficit arising from changes in fair value is recognised in profit or loss.

Investment property is included at fair value. Gains and losses are recognised in the income statement. Deferred taxation is provided on these gains at the future tax rate expected to apply when the property may be sold.

Taxation

Taxation for the year comprises current and deferred tax. Tax is recognised in the Income Statement, except to the extent that it relates to items recognised in other comprehensive income or directly in equity.

Current or deferred taxation assets and liabilities are not discounted.

Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the statement of financial position date.

Deferred tax

Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the statement of financial position date.

Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference.

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.

3.	EMPLOYEES AND DIRECTORS

The average number of employees during the year was NIL (2024 - NIL).

4.

INTEREST PAYABLE AND SIMILAR EXPENSES

2025

2024

£

£

Bank loan interest

180

258

Mortgage interest

2,284

2,535

2,464

2,793

5.

TAXATION

Analysis of the tax charge

The tax charge on the profit for the year was as follows:

2025

2024

£

£

Current tax:

UK corporation tax

10,648

9,784

Deferred tax

-

20,082

Tax on profit

10,648

29,866

UK corporation tax has been charged at 22.53% (2024 - 22.24%).

6.	INVESTMENT PROPERTY

Total

£

FAIR VALUE

At 1 June 2024

and 31 May 2025

1,775,000

NET BOOK VALUE

At 31 May 2025

1,775,000

At 31 May 2024

1,775,000

Fair value at 31 May 2025 is represented by:

£

Valuation in 2016

137,579

Valuation in 2021

249,608

Cost

1,387,813

1,775,000

During 2021 one of the directors, C Smith, revalued the properties to reflect their fair value. The director considers that there has been no change in the fair value since that date.

7.

DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2025

2024

£

£

Prepayments and accrued income

2,608

2,551

8.

CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2025

2024

£

£

Bank loans and overdrafts

3,087

3,011

Mortgage loan

5,853

5,575

Corporation tax

10,648

9,766

Other creditors

253,000

253,000

Accruals and deferred income

1,200

1,200

273,788

272,552

9.

CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR

2025

2024

£

£

Bank loans - 2-5 years

2,421

5,496

Mortgage loan 1-5 years

26,482

25,224

Mortgage loan due after 5 year

22,398

29,804

Directors' loan accounts

849,984

879,984

901,285

940,508

Amounts falling due in more than five years:

Repayable by instalments

Mortgage loan due after 5 year

22,398

29,804

10.	SECURED DEBTS

Paragon Mortgages (2010) Limited holds a legal charge dated 6 March 2013 for £107,252 to secure the loan over one of the properties. The directors have also provided personal guarantees in respect of the loan.

11.	PROVISIONS FOR LIABILITIES

2025

2024

£

£

Deferred tax on property revaluation

83,675

83,675

Deferred

tax

£

Balance at 1 June 2024

83,675

Balance at 31 May 2025

83,675

12.	RELATED PARTY DISCLOSURES

During the year the company repaid £30,000 (2024: £25,000) of C J Smith's outstanding loan balance.

Balances owed to directors and related parties at the year end were as follows:

2025

2024

£

£

C J Smith

665,009

695,009

D E Smith

30,000

30,000

F A Smith

154,975

154,975

V E Smith

253,000

253,000

1,102,984

1,132,984

13.	ULTIMATE CONTROLLING PARTY

The ultimate controlling party is C J Smith.