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Registered number: 13206937
MERCIA REAL ESTATE (PULP) LIMITED
UNAUDITED
FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2025
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MERCIA REAL ESTATE (PULP) LIMITED
CONTENTS
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Notes to the financial statements
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MERCIA REAL ESTATE (PULP) LIMITED
REGISTERED NUMBER: 13206937
BALANCE SHEET
AS AT 31 MARCH 2025
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Debtors: amounts falling due within one year
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Creditors: amounts falling due within one year
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Total assets less current liabilities
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Creditors: amounts falling due after more than one year
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Provisions for liabilities
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MERCIA REAL ESTATE (PULP) LIMITED
REGISTERED NUMBER: 13206937
BALANCE SHEET (CONTINUED)
AS AT 31 MARCH 2025
The directors consider that the Company is entitled to exemption from audit under section 477 of the Companies Act 2006 and members have not required the Company to obtain an audit for the year in question in accordance with section 476 of the Companies Act 2006.
The directors acknowledge their responsibilities for complying with the requirements of the Companies Act 2006 with respect to accounting records and the preparation of financial statements.
The financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies regime and in accordance with the provisions of FRS 102 Section 1A - small entities.
The financial statements have been delivered in accordance with the provisions applicable to companies subject to the small companies regime.
The Company has opted not to file the profit and loss account in accordance with provisions applicable to companies subject to the small companies' regime.
The financial statements were approved and authorised for issue by the board and were signed on its behalf on 15 July 2026.
The notes on pages 3 to 8 form part of these financial statements.
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MERCIA REAL ESTATE (PULP) LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2025
Mercia Real Estate (PULP) Limited (the company) is a private company limited by shares, incorporated and domiciled in England. The address of its registered office is Ground Floor, 35 Newhall Street, Birmingham, B3 3PU.
2.Accounting policies
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Basis of preparation of financial statements
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The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and the Companies Act 2006. The disclosure requirements of Section 1A of FRS 102 have been applied other than where additional disclosure is required to show a true and fair view.
The following principal accounting policies have been applied:
The company is dependant upon the support from it's ultimate parent company. They have indicated that they will continue to provide financial support to the company for the foreseeable future. Accordingly these financial statements have been prepared on the going concern basis.
Rental income from operating leases is credited to profit or loss on a straight-line basis over the lease term.
Interest income is recognised in profit or loss using the effective interest method.
Finance costs are charged to profit or loss over the term of the debt using the effective interest method so that the amount charged is at a constant rate on the carrying amount. Issue costs are initially recognised as a reduction in the proceeds of the associated capital instrument.
All borrowing costs are recognised in profit or loss in the year in which they are incurred.
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MERCIA REAL ESTATE (PULP) LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2025
2.Accounting policies (continued)
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Current and deferred taxation
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The tax expense for the year comprises current and deferred tax. Tax is recognised in profit or loss except that a charge attributable to an item of income and expense recognised as other comprehensive income or to an item recognised directly in equity is also recognised in other comprehensive income or directly in equity respectively.
The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the balance sheet date in the countries where the Company operates and generates income.
Deferred tax balances are recognised in respect of all timing differences that have originated but not reversed by the balance sheet date, except that:
∙The recognition of deferred tax assets is limited to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits; and
∙Any deferred tax balances are reversed if and when all conditions for retaining associated tax allowances have been met.
Deferred tax balances are not recognised in respect of permanent differences except in respect of business combinations, when deferred tax is recognised on the differences between the fair values of assets acquired and the future tax deductions available for them and the differences between the fair values of liabilities acquired and the amount that will be assessed for tax. Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the balance sheet date.
Investment property is carried at fair value determined annually by the director and derived from the current market rents and investment property yields for comparable real estate, adjusted if necessary for any difference in the nature, location or condition of the specific asset. No depreciation is provided. Changes in fair value are recognised in profit or loss.
Short-term debtors are measured at transaction price, less any impairment. Loans receivable are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method, less any impairment.
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Cash and cash equivalents
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Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours. Cash equivalents are highly liquid investments that mature in no more than three months from the date of acquisition and that are readily convertible to known amounts of cash with insignificant risk of change in value.
Short-term creditors are measured at the transaction price. Other financial liabilities, including bank loans, are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method.
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MERCIA REAL ESTATE (PULP) LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2025
2.Accounting policies (continued)
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Provisions for liabilities
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Provisions are recognised when an event has taken place that gives rise to a legal or constructive obligation, a transfer of economic benefits is probable and a reliable estimate can be made.
Provisions are measured as the best estimate of the amount required to settle the obligation, taking into account the related risks and uncertainties.
Increases in provisions are generally charged as an expense to profit or loss.
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The average monthly number of employees, including directors, during the year was 1 (2024 - 1).
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The correction of a prior period error relates to a freehold investment property which had been incorrectly included in the financial statements of a related party when it should have been in this company. This has resulted in a increase in the revaluation reserve of £1,421,250, an increase in the freehold investment property of £1,895,000 and an increase in the deferred tax liability of £473,750.
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MERCIA REAL ESTATE (PULP) LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2025
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The correction of a prior period error relates to a freehold investment property which had been incorrectly included in the financial statements of a related party when it should have been in this company. This has resulted in a increase in the revaluation reserve of £1,421,250, an increase in the freehold investment property of £1,895,000 and an increase in the deferred tax liability of £473,750. See note 4.
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Cost or valuation at 31 March 2025 is as follows:
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If the land and buildings had not been included at valuation they would have been included under the historical cost convention as follows:
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MERCIA REAL ESTATE (PULP) LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2025
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Amounts owed by group undertakings
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Amounts owed by associated undertakings
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Prepayments and accrued income
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Creditors: Amounts falling due within one year
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Amounts owed to group undertakings
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Amounts owed to associated undertakings
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Other taxation and social security
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Accruals and deferred income
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Bank loans are secured by a fixed and floating charge over all the property and undertakings of the company, personal guarantees of the shareholders and cross guarantees by associated companies.
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Creditors: Amounts falling due after more than one year
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Bank loans are secured by a fixed and floating charge over all the property and undertakings of the company, personal guarantees of the shareholders and cross guarantees by associated companies.
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MERCIA REAL ESTATE (PULP) LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2025
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Charged to profit or loss
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The provision for deferred taxation is made up as follows:
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Accelerated capital allowances
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Post balance sheet events
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During December 2025 the company and the group that is a member of, undertook a restructuring and refinancing initiative, in order to put the company & group in a strong position for the future and enable the company to continue as a going concern.
The Company's ultimate parent undertaking is Mercia Real Estate (UK) Limited.
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