| Directors | |
| Registered office | |
| Registered number | 11003933 |
| Accountant | PJW Accounting Limited |
| Office 5 | |
| Lancaster Park | |
| Newborough Road | |
| Needwood | |
| Staffordshire | |
| DE13 9PD |
| Notes |
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The financial statements were approved and authorised for issue by the Board of Directors on
Cole, Matthew David Keith
Director |
Company registration number 11003933
The company is a private company limited by shares and registered in England and Wales. The company's registered number and registered office address can be found on the Company Information page.
The financial statements are presented in sterling and this is the functional currency of the company.
The financial statements have been prepared in accordance with FRS 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland including Section 1A Small Entities.
The financial statements have been prepared on the historical cost basis, modified by the measurement of investment property at fair value.
The company had net current liabilities of £314,628 at 31 October 2025 and cash at bank of £3,039. Net current liabilities arise principally from amounts repayable on demand to the directors of £236,685 and to Switching Group Limited, a company in which the directors have an interest, of £11,500. Excluding those two balances the company had net current liabilities of £66,443. The company had net assets of £87,974.
The company's let properties generated rental income of £68,222 in the year against finance costs of £37,696, and the directors expect rental income to continue at a broadly similar level. The company holds limited cash and is therefore dependent on rental receipts being collected in line with the tenancy agreements and on the continuing support of the directors to meet its liabilities as they fall due.
The directors have confirmed that they will continue to make finance available to the company, and that they will not seek repayment of their loan accounts, or of the amount owed to Switching Group Limited, in a way that would prejudice the companys ability to meet its other liabilities as they fall due, for a period of at least twelve months from the date on which these financial statements are approved.
On that basis the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future, and they continue to adopt the going concern basis in preparing the financial statements.
Turnover represents rental income receivable from the companys investment properties, exclusive of value added tax. Rental income is recognised on a straight line basis over the term of the tenancy. Rent received in advance is carried forward in creditors and rent receivable at the reporting date is included in debtors.
Current tax is recognised on taxable profits for the period at the rates of corporation tax enacted or substantively enacted at the reporting date.
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 computations. Deferred tax is also recognised on fair value movements on investment property, measured using the tax rates and allowances that would apply on a sale of the property. Deferred tax balances are not discounted.
Investment property is property held to earn rentals or for capital appreciation, or both. Investment property is recognised initially at cost, including directly attributable acquisition costs, and is subsequently measured at fair value at each reporting date. Changes in fair value are recognised in profit or loss in the period in which they arise. No depreciation is provided in respect of investment property.
Fair value is determined by the directors. The directors assess the fair value of each property by reference to asking prices and automated valuation estimates for comparable properties in the same locality, obtained from publicly available property portals, adjusted where they consider it appropriate for differences in size, condition and specification. Where a professional valuation of an individual property has been obtained for another purpose, and the directors consider it to be a reliable indication of fair value, that valuation is used instead.
Where the valuation data available to the directors is dated after the reporting date, the directors consider whether market movements between the reporting date and the date of that data are material, and adjust the valuation where they consider it necessary. Details are given in the notes.
Cumulative unrealised fair value gains on investment property are not distributable. The company presents part of those gains within a separate non-distributable reserve, as explained in the notes.
The company holds only basic financial instruments. Financial assets comprising cash at bank and rent receivable are measured at transaction price less any impairment. Financial liabilities comprising bank and other loans, amounts owed to the directors, other creditors and accruals are measured at transaction price and subsequently at amortised cost using the effective interest method. Amounts repayable on demand or within one year are stated at the amount payable.
The loans from the directors are interest-free. The directors are natural persons and are equal shareholders in the company, and the company has taken advantage of the exemption in paragraph 11.13A of FRS 102, which permits a small entity to measure such a loan at transaction price rather than at the present value of the future payments discounted at a market rate of interest. No imputed interest has been recognised.
The principal area of estimation uncertainty is the fair value of the companys investment property, which is inherently subjective and depends on assumptions as to comparable market values and the condition of each property. The fair values are determined by the directors rather than by an independent professional valuer, other than 81 Lichfield Street, and for five of the eight properties, they are derived from valuation estimates dated after the reporting date. The aggregate carrying amount at the reporting date was £1,092,480. A movement of five per cent in aggregate fair value would change net assets by approximately £54,624 before deferred tax.
The rate at which deferred tax on fair value gains is provided is a further area of judgement. A change from 25 per cent to 19 per cent would reduce the provision, and increase net assets, by £7,400.
These are the first financial statements of the company prepared in accordance with FRS 102 Section 1A. The financial statements for the year ended 31 October 2024 were prepared in accordance with FRS 105 The Financial Reporting Standard applicable to the Micro-entities Regime. The date of transition to FRS 102 is 1 November 2023. The effect of the change of framework, and of the correction of errors in the figures previously reported, is set out in the notes.
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The company held eight investment properties at the reporting date. 7 Pebble Close, Amington, Tamworth, was acquired in April 2025 at a total cost of £215,714, including stamp duty land tax and legal costs.
The fair value of each property has been determined by the directors as at 31 October 2025, on the basis described in the notes, as follows.
- 81 Lichfield Street is carried at £125,000, being a valuation prepared by a surveyor instructed by Birmingham Midshires in connection with the remortgage completed in October 2025. The advance of £93,750 is 75 per cent of that valuation.
- 7 Pebble Close is carried at £208,900, being the purchase price paid in April 2025. Remeasurement to fair value has written off £6,814 of transaction costs included in the acquisition cost.
- Five properties, being 1 Shelley Road, 34 New Street, 6 Ash Drive, 6 Oakland Court and 43 Alexandra Mews, are carried at valuation estimates obtained from a publicly available property portal on 24 July 2026. The directors have considered movements in the residential market between 31 October 2025 and that date and do not consider the resulting difference in fair value to be material.
- 35 Lilac Road is carried at £124,580, being its carrying amount at 31 October 2024. The Directors believe the value has not moved materially since 31 October 2024.
Other than 81 Lichfield Street, no property has been valued by an independent valuer holding a recognised and relevant professional qualification with recent experience in the location and category of the property concerned.
The directors recognise that asking prices and portal estimates are not necessarily the same as the prices that would be achieved on completion, and that the fair values are accordingly subject to a greater degree of estimation uncertainty than would attach to an independent professional valuation. The sensitivity of net assets to a change in fair value is set out in the notes.
The valuations resulted in an aggregate fair value loss of £12,814, which has been recognised in profit or loss. The company's investment properties are subject to first legal charges in favour of its mortgage lenders. See notes to the accounts.
The historical cost of the investment properties was £969,154 (2024: £753,465).
The cumulative fair value gains included above were £123,326 (2024: £136,115).
Cash at bank of £3,039 (2024: £2,721) is shown separately on the face of the statement of financial position within current assets and is no longer included within debtors.
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Of the amounts falling due after more than five years, £285,239 (2024: £285,240) relates to interest-only mortgage facilities on 1 Shelley Road, 6 Oakland Court and 43 Alexandra Mews, under which the whole of the capital is repayable on maturity. The remainder relates to capital repayment mortgages and to the Bounce Back Loan, and represents the projected balances outstanding five years after the reporting date. Of the amounts due over 5 years £306,719 (2024: £280,497) was repayable by instalments, and £285,239 (2024: 285,240) was repayable other than by instalments.
The aggregate amount of secured borrowings at 31 October 2025 was £643,770 (2024: £612,066). The bank loans are secured by first legal charges over the individual investment properties to which they relate. The government-backed Bounce Back Loan was £24,531 (2024: £30,093), is unsecured.
The aggregate amount of secured borrowings at 31 October 2025 was £643,770 (2024: £612,066). The bank loans are secured by first legal charges over the individual investment properties to which they relate. Other loans represent the government-backed Bounce Back Loan, which is unsecured.
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Cumulative unrealised fair value gains on investment property at 31 October 2025 were £123,326, as disclosed in the notes, none of which is distributable. Of that amount £102,686 is presented as a non-distributable reserve and the balance of £20,640 is included within the profit and loss account. The non-distributable reserve arose under the companys previous accounting framework and has been carried forward unchanged, because cumulative unrealised gains continue to exceed it. Deferred tax on the gains is provided separately in the notes.
The directors, Frances Cole and Matthew David Keith Cole, are equal shareholders in the company.
Directors loan accounts
Amounts owed to the directors at 31 October 2025 were £236,685 (2024 restated: £75,752). During the year, the directors advanced a further £155,000 to the company, and no amounts were repaid. A further £5,932 was credited to the loan account in respect of 46 Bridgewater Street, as described below. The loans are unsecured, interest-free and repayable on demand, and no interest was charged in the year (2024: £nil). No guarantees have been given or received in respect of these balances.
46 Bridgewater Street
46 Bridgewater Street is owned personally by Matthew David Keith Cole. It is not an asset of the company and no borrowings are held against it. The company collected rent on the property and, in the comparative period, met certain outgoings. Rental income of £5,932 (2024: £5,742) and expenditure of £nil (2024: £1,068) have been removed from the financial statements and the net amounts credited to the directors' loan account. The comparative figures have been restated accordingly, as set out in the notes.
Switching Group Limited
Switching Group Limited is a company in which the directors have an interest. During the year the company let 7 Pebble Close to Switching Group Limited and recognised rental income of £12,000 (2024: £nil) in respect of that letting.
Switching Group Limited advanced an unsecured, interest-free loan of £21,500 to the company during the year, repayable on demand. From May 2025 the parties agreed that rent falling due would be settled by set off against that loan rather than in cash, and £10,000 of rent was settled in that way. The balance outstanding at 31 October 2025 was £11,500 (2024: £nil).
Directors' advances, credits and guarantees
No advances or credits were granted to the directors during the year and no guarantees were entered into on their behalf, so no disclosure is required under section 413 of the Companies Act 2006.
(a) In the financial statements for the year ended 31 October 2024 the deferred tax credit for the year of £3,968 was deducted from current assets, having already been reflected in the deferred tax provision. Current assets were understated by that amount.
(b) Creditors at 31 October 2024 were understated by £2,177.
(c) Investment property at 1 November 2023 was overstated by £1,778. The correction was reflected in arriving at the loss previously reported for the year ended 31 October 2024.
(d) The company recognised rental income and met expenditure in respect of 46 Bridgewater Street, a property owned personally by a director. The property is not an asset of the company, and the income is not the company's income. Rental income of £5,742 and expenditure of £1,068 have been removed from the comparative figures, and the net amount of £4,674 has been credited to the directors' loan account. The equivalent amount for the current year is disclosed in the notes.
(e) The directors carried out a valuation of each property at 1 November 2023 and again at 31 October 2024, on the basis described in note 2.5, notwithstanding that the financial statements for that period were prepared under FRS 105. The carrying amounts at both dates were therefore already fair value, and no remeasurement of investment property arises on transition to FRS 102.
The restatement also results in a reclassification within the comparative income statement. The deferred tax credit of £3,968, previously included within administrative expenses, has been transferred to the tax line, and the finance costs of £70,323, previously included within administrative expenses, are now presented separately. Amounts owed to the directors, which are repayable on demand, have been reclassified from creditors falling due after more than one year to creditors falling due within one year.