MGK Real Estates Ltd

Notes to the Financial Statements for the Year Ended 31 March 2025

1	General information

The Company is a private company limited by share capital, incorporated in England and Wales.

The address of its registered office is:
First Floor
The Urban Building
3-9 Albert Street
Slough
SL1 2BE

Principal activity

The principal activity of the Company is that of generating rental income through the commercial property held at 132-144 High Street, Bromley.

These financial statements were authorised for issue by the director on 9 September 2026.

2	Accounting policies

Summary of significant accounting policies and key accounting estimates

The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.

Statement of compliance

These financial statements have been prepared in accordance with Financial Reporting Standard 102 Section 1A smaller entities - 'The Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland' and the Companies Act 2006 (as applicable to companies subject to the small companies' regime).

Basis of preparation

These financial statements have been prepared using the historical cost convention except that as disclosed in the accounting policies certain items are shown at fair value.

Revenue recognition

Turnover comprises the fair value of the consideration received or receivable in respect of rental and service charge income in the ordinary course of the Company’s activities. Turnover is shown net of sales/value added tax, returns, rebates and discounts.

The Company recognises revenue when:
The amount of revenue can be reliably measured;
it is probable that future economic benefits will flow to the entity;
and specific criteria have been met for each of the Company's activities.

MGK Real Estates Ltd

Notes to the Financial Statements for the Year Ended 31 March 2025

Foreign currency transactions and balances

Transactions in foreign currencies are initially recorded at the functional currency rate prevailing at the date of the transaction. Monetary assets and liabilities denominated in foreign currencies are retranslated into the respective functional currency of the entity at the rates prevailing on the reporting period date. Non-monetary items carried at fair value that are denominated in foreign currencies are retranslated at the rate on the date when the fair value is re-measured.

Non-monetary items measured in terms of historical cost in a foreign currency are not retranslated.

Tax

The tax expense for the period comprises current tax. Tax is recognised in profit or loss, except that a change attributable to an item of income or expense recognised as other comprehensive income is also recognised directly in other comprehensive income.

The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the reporting date in the countries where the Company operates and generates taxable income.

Investment property

Investment property is carried at fair value, derived from the current market prices for comparable real estate determined annually by external valuers. The valuers use observable market prices, adjusted if necessary for any difference in the nature, location or condition of the specific asset. Changes in fair value are recognised in profit or loss.

Financial instruments

Classification
The Company only enters into basic financial instrument transactions that result in the recognition of financial assets and liabilities like trade and other debtors and creditors, loans to/from related parties and investments in non-puttable ordinary shares.

Financial assets that are measured at cost and amortised cost are assessed at the end of each reporting period for objective evidence of impairment. If objective evidence of impairment is found, an impairment loss is recognised in profit or loss.

Financial assets and liabilities are offset and the net amount reported in the Balance Sheet when there is an enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
 

Debtors

Basic financial assets, including trade and other debtors, are intially recognised at transaction price, unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Such assets are subsequently carried at amortised cost using the effective interest method, less any impairment.

Trade debtors are amounts due from customers for services performed in the ordinary course of business.

MGK Real Estates Ltd

Notes to the Financial Statements for the Year Ended 31 March 2025

Cash and cash equivalents

Cash and cash equivalents comprise cash on hand and call deposits, and other short-term highly liquid investments that are readily convertible to a known amount of cash and are subject to an insignificant risk of change in value.

Creditors

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Accounts payable are classified as current liabilities if the Company does not have an unconditional right, at the end of the reporting period, to defer settlement of the creditor for at least twelve months after the reporting date. If there is an unconditional right to defer settlement for at least twelve months after the reporting date, they are presented as non-current liabilities.

Trade creditors are recognised initially at the transaction price and subsequently measured at amortised cost using the effective interest method.

Borrowings

Interest-bearing borrowings are initially recorded at fair value, net of transaction costs. Interest-bearing borrowings are subsequently carried at amortised cost, with the difference between the proceeds, net of transaction costs, and the amount due on redemption being recognised as a charge to the profit and loss account over the period of the relevant borrowing.

Interest expense is recognised on the basis of the effective interest method and is included in interest payable and similar charges.

Borrowings are classified as current liabilities unless the Company has an unconditional right to defer settlement of the liability for at least twelve months after the reporting date.

Provisions

Provisions are recognised when the Company has an obligation at the reporting date as a result of a past event, it is probable that the Company will be required to settle that obligation and a reliable estimate can be made of the amount of the obligation.

Share capital

Ordinary shares are classified as equity. Equity instruments are measured at the fair value of the cash or other resources received or receivable, net of the direct costs of issuing the equity instruments. If payment is deferred and the time value of money is material, the initial measurement is on a present value basis.

MGK Real Estates Ltd

Notes to the Financial Statements for the Year Ended 31 March 2025

3	Significant judgements and key sources of estimation uncertainty

Judgements

The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the amounts reported for assets and liabilities as at the balance sheet date and the amounts reported for revenues and expenses during the year. However, the nature of estimation means that actual outcomes could differ from those estimates. In the Director's opinion the only area of significant judgement is the valuation of the investment properties at the period end of £6,867,501.

4	Summary audit opinion

Audit report

The Independent Auditor's Report was unqualified.

The name of the Senior Statutory Auditor who signed the audit report on 9 September 2026 was Russell Joseph, who signed for and on behalf of Bourner Bullock.

5	Staff numbers

The average number of persons employed by the Company (including the director) during the year, was 0 (2024 - 0).

6	Investment properties

	2025 £
At 1 April	6,867,501
At 31 March	6,867,501

7

Debtors

Current	Note	2025 £	Unaudited 2024 £
Trade debtors		46,406	-
Amounts owed by related parties		589,200	434,800
Prepayments		14,654	-
Other debtors		38,856	42,388
		689,116	477,188

MGK Real Estates Ltd

Notes to the Financial Statements for the Year Ended 31 March 2025

8

Creditors

Creditors: amounts falling due within one year

	Note	2025 £	Unaudited 2024 £
Due within one year
Trade creditors		66,592	143,805
Amounts owed to related parties		89,500	15,000
Taxation and social security		17,249	19,878
Accruals and deferred income		105,362	102,082
Other creditors		18,437	21,236
		297,140	302,001

Creditors: amounts falling due after more than one year

	Note	2025 £	Unaudited 2024 £
Due after one year
Loans and borrowings	10	7,198,628	6,642,572

9	Share capital

Allotted, called up and fully paid shares

	2025		Unaudited 2024
	No.	£	No.	£
Ordinary shares of £1 each	600,001	600,001	600,001	600,001

10	Loans and borrowings

Non-current loans and borrowings

	2025 £	Unaudited 2024 £
Other borrowings	7,198,628	6,642,572

MGK Real Estates Ltd

Notes to the Financial Statements for the Year Ended 31 March 2025

Other borrowings consist of deep discount bonds entered into on 9 March 2023.

The bonds have been subscribed to for a cash value of £6,100,000 with a redemption price of £9,100,000 at the final maturity date on 8 March 2028.

The value between the subscription price and the redemption price is accounted for as interest accruing over the term of the bond.

Any and all amounts outstanding under the discounted securities are unsecured.

11

Dividends

There were no dividends paid or proposed in the current or prior year.

12	Parent and ultimate parent undertaking

The company's immediate parent is MGK Infra Realty Ltd, a company incorporated in England and Wales with registered office:

First Floor, The Urban Building, Albert Street, Slough, SL1 2BE, United Kingdom.