REGISTERED NUMBER: 00021531 (England and Wales)

CATHAYS COTTAGE COMPANY LIMITED (THE)

UNAUDITED FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2025

Page

Company Information

1

Chairman's Report

2

Balance Sheet

3

Notes to the Financial Statements

5

DIRECTORS:

G E C Rogers

P B Kelly

S P Thorpe

SECRETARY:

G E C Rogers

REGISTERED OFFICE:

2nd Floor Office Suite

Agincourt House

Agincourt Square

MONMOUTH

Monmouthshire

NP25 3BT

REGISTERED NUMBER:

00021531 (England and Wales)

ACCOUNTANTS:

MHA (trading name of MHA Advisory Ltd)

Elfed House

Oak Tree Court

Cardiff Gate Business Park

CARDIFF

County of Cardiff

CF23 8RS

I have pleasure, on behalf of your Board of Directors, in presenting the financial statements of the company for the year ended 31 March 2025 and upon which I make the following comments:

Results

Operating profit was marginally reduced but the company achieved pre-tax profits of £185,622 compared with £66,646 in the previous year, the revaluation gain accounting mainly for the difference.

Income

Commercial rents reduced on account of a property disposal. Residential saw a general increase helped with a new letting.

Establishment costs

These increased mainly through the addition of costs associated with the disposal strategy.

Administrative costs

Again, disposal costs added to the total but other costs were contained or reduced.

Property performance

The total return was 6.6%, made up from an income return of 4.0% and a capital return of 2.6%. Rental growth was negative, an inevitable consequence of property disposals.

Fixed assets

The market value of investment properties recorded a gain of £89,600 at the year end. There were no property additions during the year and one property disposal which resulted in a profit on disposal of £5,000. Fixtures and fittings saw additions of £4,667 with no disposals reported. Depreciation of £3,929 has been charged for the year. Fixed asset investments saw no change in the balance sheet carrying value.

Current assets

Such assets have increased in the year by £103,138, the majority of which is reflected in the increased bank balance.

Creditors

Overall, there has been a decrease in creditors of £2,635 as a result of a decrease in corporation tax and accruals but a slight increase to rents received in advance. The amount due in over one year, relating to the loan from Avoca Estate Company Limited, remains unchanged.

Provisions

The increased provision results from the movement on the revaluation of the investment properties.

Shareholders' funds

These increased by £90,111 to £3,491,792.

Dividends

A final dividend of 33.5p (2024 - 33.5p) making a total of 38.5p (2024 - 38.5p) is declared.

S P Thorpe

Chairman

FIXED ASSETS

Tangible assets

4

5,501

4,763

Investments

5

23,505

23,505

Investment property

6

3,498,600

3,484,000

3,527,606

3,512,268

CURRENT ASSETS

Debtors

7

34,723

33,173

Cash at bank and in hand

310,327

208,739

345,050

241,912

CREDITORS

Amounts falling due within one year

8

(51,193

)

(53,828

)

NET CURRENT ASSETS

293,857

188,084

TOTAL ASSETS LESS CURRENT LIABILITIES

3,821,463

3,700,352

CREDITORS

Amounts falling due after more than one year

9

(115,671

)

(115,671

)

PROVISIONS FOR LIABILITIES

10

(214,000

)

(183,000

)

NET ASSETS

3,491,792

3,401,681

CAPITAL AND RESERVES

Called up share capital

11

115,440

115,440

Non-distributable reserve

12

1,542,771

1,528,371

Capital reserve

12

848,685

799,485

Retained earnings

12

984,896

958,385

SHAREHOLDERS' FUNDS

3,491,792

3,401,681

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

The members have not required the company to obtain an audit of its financial statements for the year ended 31 March 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 and delivered in accordance with the provisions applicable to companies subject to the small companies regime.

In accordance with Section 444 of the Companies Act 2006, the Profit and Loss Account has not been delivered.

The financial statements were approved by the Board of Directors and authorised for issue on 17 October 2025 and were signed on its behalf by:

S P Thorpe - Director

1.	STATUTORY INFORMATION

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

The company's functional and presentational currency in the financial statements is the Sterling (£), rounded to the nearest pound.

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

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.

There have been no material departures from Financial Reporting Standard 102 1A.

Preparation of consolidated financial statements

The financial statements contain information about Cathays Cottage Company Limited (The) as an individual company and do not contain consolidated financial information as the parent of a group. The company is exempt under Section 399(2A) of the Companies Act 2006 from the requirements to prepare consolidated financial statements.

Turnover

The turnover shown in the profit and loss account represents gross rent receivable for the year.

Tangible fixed assets

Tangible fixed assets are stated at cost less accumulated depreciation. Cost includes costs directly attributable to making the asset capable of operating as intended.

Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life.

Furniture, fixtures and fittings

20% / 33% straight line

Investments

Investments are recorded at cost less any provision required for diminution in value.

Investment property

Investment properties are carried at fair value determined annually by independent professional valuers. Revaluation surpluses and deficits are recognised in the profit and loss account. Deferred taxation is provided on these gains at the rate expected to apply when the property is sold, or the deferred tax liability is settled, based on the tax rates and tax laws that have been enacted or substantively enacted by the balance sheet date.

Current tax

Current tax represents the amount expected to be paid or recovered in respect of taxable profits for the year and is calculated using the tax rates and laws that have been enacted or substantially enacted at the balance sheet date.

Deferred tax

Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date where transactions or events have occurred at that date that will result in an obligation to pay more, or a right to pay less or to receive more tax.

Deferred tax assets are recognised only to the extent that the directors consider that it is more likely than not that there will be suitable taxable profits from which the future reversal of the underlying timing differences can be deducted.

Deferred tax is measured on an un-discounted basis at the tax rates that are expected to apply in the periods in which timing differences reverse, based on tax rates and laws enacted or substantively enacted at the balance sheet date.

Pension costs and other post-retirement benefits

The company operates a money purchase pension scheme. The assets of the scheme are held separately from those of the company in an independently administered fund. Contributions payable for the year are charged in the profit and loss account.

Employee benefits

When employees have rendered service to the company, short-term employee benefits to which the employees are entitled are recognised at the undiscounted amount expected to be paid in exchange for that service.

Debtors or creditors receivable / payable within one year

Debtors and creditors with no stated interest rate and receivable or payable within one year are recorded at transaction price. Any losses arising from impairment are recognised in the profit and loss account in other administrative expenses.

3.	EMPLOYEES AND DIRECTORS

The average number of employees during the year was 3 (2024 - 3 ) .

4.	TANGIBLE FIXED ASSETS

Furniture,

fixtures

and

fittings

£

COST

At 1 April 2024

54,097

Additions

4,667

At 31 March 2025

58,764

DEPRECIATION

At 1 April 2024

49,334

Charge for year

3,929

At 31 March 2025

53,263

NET BOOK VALUE

At 31 March 2025

5,501

At 31 March 2024

4,763

5.	FIXED ASSET INVESTMENTS

Shares in

group

Participating

Unlisted

undertakings

interests

investments

Totals

£

£

£

£

COST

At 1 April 2024

and 31 March 2025

14,179

4,273

5,053

23,505

NET BOOK VALUE

At 31 March 2025

14,179

4,273

5,053

23,505

At 31 March 2024

14,179

4,273

5,053

23,505

The investments consist wholly of equity share capital in unquoted companies incorporated in England and Wales as follows:

Company

Cost of shares

Size of holding (%)

Year end of latest accounts

Capital & reserves

Profit/(loss) for year

£

£

£

Group undertakings

Avoca Estate Company Limited*

14,179

100.0%

31.03.25

115,671

-

Participating interests

The Cardiff Exchange and Office

Company Limited

4,273

20.75%

30.06.24

884,102

30,888

Unlisted investments

Barry Island Cottage Company

Limited

1,778

6.37%

31.12.24

4,910,504

188,623

Glamorgan Investments Limited

3,275

6.81%

30.06.24

6,718,316

393,493

* Dormant

Except for the dormant company, all above companies undertook similar activities to The Cathays Cottage Company Limited.

The Cardiff Exchange and Office Company Limited owns 100% of shares of Abergavenny Exchange Properties Limited. At the year end, Abergavenny Exchange Properties Limited had capital and reserves of £100 and showed a profit for the year of £Nil.

6.	INVESTMENT PROPERTY

Total

£

FAIR VALUE

At 1 April 2024

3,484,000

Disposals

(75,000

)

Revaluations

89,600

At 31 March 2025

3,498,600

NET BOOK VALUE

At 31 March 2025

3,498,600

At 31 March 2024

3,484,000

Investment property held at 31 March 2025 is included at its independent professional valuation at 31 March 2025. The historic cost equivalent of these assets is £1,741,829 (2024: £1,772,629).

The methods and significant assumptions used to ascertain the fair values are as follows:

-

Recent rental and sales prices of comparative properties in similar areas.

-

Properties have been valued on an individual stand alone basis and not on the basis of a sale as part of a portfolio.

Revaluation gains of £89,600 (2024 loss: £33,500) have been recognised in the profit and loss account.

7.

DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2025

2024

£

£

Trade debtors

1,281

251

Other debtors

32,243

31,003

Prepayments and accrued income

1,199

1,919

34,723

33,173

8.

CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2025

2024

£

£

Trade creditors

1,296

60

Corporation tax

20,066

26,194

Rents in advance

11,256

8,506

Accruals

18,575

19,068

51,193

53,828

9.

CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR

2025

2024

£

£

Amounts owed to group undertakings

115,671

115,671

10.	PROVISIONS FOR LIABILITIES

2025

2024

£

£

Deferred tax

214,000

183,000

Deferred

tax

£

Balance at 1 April 2024

183,000

Provided during year

31,000

Balance at 31 March 2025

214,000

The deferred tax liability has arisen due to fixed asset timing differences.

11.	CALLED UP SHARE CAPITAL

Allotted, issued and fully paid:

Number:

Class:

Nominal

2025

2024

value:

£

£

115,440

Ordinary

£1

115,440

115,440

12.

RESERVES

Retained

Non-distributable

Capital

earnings

reserve

reserve

Totals

£

£

£

£

At 1 April 2024

958,385

1,528,371

799,485

3,286,241

Profit for the year

134,556

134,556

Dividends

(44,445

)

(44,445

)

Revaluation of investment

properties

(89,600

)

89,600

-

-

Deferred tax on investment properties

31,000

(31,000

)

-

-

Transfer to capital reserve

(5,000

)

(44,200

)

49,200

-

At 31 March 2025

984,896

1,542,771

848,685

3,376,352

During the year, the company passed a special resolution changing non-distibutable capital reserves to distributable capital reserves.

No distributions were made during the year.

13.	RELATED PARTY DISCLOSURES

Details of the company's related parties, where there were transactions during the year such as require disclosure under Financial Reporting Standard 102 1A are:-

Name

Nature of relationship

Avoca Estate Company Limited

Entity over which the company has control

Glamorgan Investments Limited

Entity has significant influence over the company

The Cardiff Exchange and Office Company Limited

Company has significant influence over the entity

During the year the company entered into transactions, in the ordinary course of business, with its related parties. Transactions entered into, and balances outstanding at the year end, are as follows:

2025

2024

£

£

Entities with significant influence over the company

Dividends received

7,235

6,499

Dividends paid

18,352

16,207

Accruals

(7,946

)

(8,067

)

Entities under significant influence by the company

Dividends received

-

-

Loan debtor

32,243

31,003

Key management personnel

Dividend paid

1,365

1,205

14.	POST BALANCE SHEET EVENTS

After the balance sheet date the company carried out the following transactions:

1. Sold the investments held in The Cardiff Exchange and Office Company Limited, Glamorgan Investments Limited and Barry Island Cottage Company Limited.

2. Carried out a purchase of own shares to remove Glamorgan Investments Limited and Barry Island Cottage Company Limited as shareholders.

All transactions were carried out at market value.