Company Registration No. 03199497 (England and Wales)
STERLING PROPERTY CO. LIMITED
UNAUDITED FINANCIAL STATEMENTS
FOR THE PERIOD ENDED
31 DECEMBER 2022
31 December 2022
PAGES FOR FILING WITH REGISTRAR
PM+M Solutions for Business LLP
Chartered Accountants
New Century House
Greenbank Technology Park
Challenge Way
Blackburn
Lancashire
BB1 5QB
STERLING PROPERTY CO. LIMITED
COMPANY INFORMATION
Directors
Mr H Moser
Miss M Moser
(Appointed 29 September 2022)
Mr M C Flynn
(Appointed 23 May 2023)
Company number
03199497
Registered office
Sterling House
Unit G
Waterfold Business Park
Bury
BL9 7BR
Accountants
PM+M Solutions for Business LLP
New Century House
Greenbank Technology Park
Challenge Way
Blackburn
Lancashire
BB1 5QB
STERLING PROPERTY CO. LIMITED
CONTENTS
Page
Statement of financial position
1 - 2
Statement of changes in equity
3
Notes to the financial statements
4 - 9
STERLING PROPERTY CO. LIMITED
STATEMENT OF FINANCIAL POSITION
AS AT
31 DECEMBER 2022
31 December 2022
- 1 -
2022
2021
as restated
Notes
£
£
£
£
Fixed assets
Tangible assets
3
135,671
143,415
Investment properties
4
4,491,145
10,813,182
Investments
5
47,004
44,504
4,673,820
11,001,101
Current assets
Debtors
6
5,511,046
9,976,739
Cash at bank and in hand
3,086,885
1,767,663
8,597,931
11,744,402
Creditors: amounts falling due within one year
7
(8,543,526)
(6,024,446)
Net current assets
54,405
5,719,956
Total assets less current liabilities
4,728,225
16,721,057
Creditors: amounts falling due after more than one year
8
(34,650)
Provisions for liabilities
(340,444)
(949,341)
Net assets
4,387,781
15,737,066
Capital and reserves
Called up share capital
100
100
Revaluation reserve
1,021,412
3,858,731
Profit and loss reserves
3,366,269
11,878,235
Total equity
4,387,781
15,737,066
The notes on pages 4 to 9 form part of these financial statements.
STERLING PROPERTY CO. LIMITED
STATEMENT OF FINANCIAL POSITION (CONTINUED)
AS AT
31 DECEMBER 2022
31 December 2022
- 2 -
The directors of the company have elected not to include a copy of the income statement within the financial statements.true
For the financial period ended 31 December 2022 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.
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 member has not required the company to obtain an audit of its financial statements for the period in question in accordance with section 476.
These financial statements have been prepared and delivered 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 20 October 2023 and are signed on its behalf by:
Mr H Moser
Director
Company Registration No. 03199497
STERLING PROPERTY CO. LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE PERIOD ENDED 31 DECEMBER 2022
- 3 -
Share capital
Revaluation reserve
Profit and loss reserves
Total
Notes
£
£
£
£
As restated for the period ended 30 June 2021:
Balance at 1 July 2020
100
403,660
11,667,915
12,071,675
Effect of change in accounting policy
-
3,504,728
3,504,728
As restated
100
3,908,388
11,667,915
15,576,403
Year ended 30 June 2021:
Profit and total comprehensive income for the year
-
-
160,663
160,663
Transfers
-
(49,657)
49,657
-
Balance at 30 June 2021
100
3,858,731
11,878,235
15,737,066
Period ended 31 December 2022:
Profit and total comprehensive income for the period
-
-
3,398,260
3,398,260
Dividends
-
-
(14,747,545)
(14,747,545)
Transfers
-
(2,837,319)
2,837,319
-
Balance at 31 December 2022
100
1,021,412
3,366,269
4,387,781
The notes on pages 4 to 9 form part of these financial statements.
STERLING PROPERTY CO. LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 DECEMBER 2022
- 4 -
1
Accounting policies
Company information
Sterling Property Co. Limited is a private company limited by shares incorporated in England and Wales. The registered office is Sterling House, Unit G, Waterfold Business Park, Bury, BL9 7BR.
1.1
Reporting period
The reporting period is longer than one year, as such historical comparison amounts will not be entirely comparable.
In addition, the directors are of the opinion that the properties, which were previously included in stock, should have always been accounted for in accordance with the accounting policy for investment properties. These properties were acquired with the intention to develop and lease to third parties. As such, a reclassification has been made within the opening balances of the comparative period in order to correctly classify these properties and to recognise the fair value uplift through the revaluation reserve. As a result, a deferred tax movement also was required to be recognised at that date. Therefore, the comparative closing balance sheet and the results for the year have been restated.
Finally, within the comparative period, turnover of £673,790 and direct costs of £624,133 for the year ended 30 June 2021 have been reclassified to administration costs. This has had no impact on reported profit.
1.2
Accounting convention
These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006 as applicable to companies subject to the small companies regime. 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 financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.
The financial statements have been prepared under the historical cost convention, modified to include investment properties and certain financial instruments at fair value. The principal accounting policies adopted are set out below.
The company has taken advantage of the exemption under section 399 of the Companies Act 2006 not to prepare consolidated accounts, on the basis that the group of which this is the parent qualifies as a small group. The financial statements present information about the company as an individual entity and not about its group.
1.3
Turnover
Turnover is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business, and is shown net of VAT and other sales related taxes. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.
Turnover principally consists of rental income and fees relating to the management of real estate, which are recognised at the point at which the services are provided.
1.4
Tangible fixed assets
Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.
STERLING PROPERTY CO. LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 DECEMBER 2022
1
Accounting policies
(Continued)
- 5 -
Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:
Computer equipment
25% reducing balance
Motor vehicles
25% reducing balance
The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is credited or charged to profit or loss.
1.5
Investment properties
Investment property, which is property held to earn rentals and/or for capital appreciation, is initially recognised at cost, which includes the purchase cost and any directly attributable expenditure. Subsequently it is measured at fair value at the reporting end date. Changes in fair value are recognised in profit or loss.
1.6
Fixed asset investments
Interests in subsidiaries, associates and jointly controlled entities are initially measured at cost and subsequently measured at cost less any accumulated impairment losses. The investments are assessed for impairment at each reporting date and any impairment losses or reversals of impairment losses are recognised immediately in profit or loss.
A subsidiary is an entity controlled by the company. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.
1.7
Taxation
The tax expense represents the sum of the tax currently payable and deferred tax.
Current tax
The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the income statement because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.
Deferred tax
Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.
The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the income statement, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset when the company has a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.
STERLING PROPERTY CO. LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 DECEMBER 2022
- 6 -
2
Employees
The average monthly number of persons (including directors) employed by the company during the period was:
2022
2021
Number
Number
Total
25
24
3
Tangible fixed assets
Computer equipment
Motor vehicles
Total
£
£
£
Cost
At 1 July 2021
321,520
321,520
Additions
3,218
50,454
53,672
Disposals
(14,598)
(14,598)
At 31 December 2022
3,218
357,376
360,594
Depreciation and impairment
At 1 July 2021
178,105
178,105
Depreciation charged in the period
170
58,912
59,082
Eliminated in respect of disposals
(12,264)
(12,264)
At 31 December 2022
170
224,753
224,923
Carrying amount
At 31 December 2022
3,048
132,623
135,671
At 30 June 2021
143,415
143,415
4
Investment property
2022
£
Fair value
At 1 July 2021
10,813,182
Additions
2,170,192
Disposals
(9,746,316)
Revaluations
1,254,087
At 31 December 2022
4,491,145
The fair value of the investment property has been arrived at on the basis of a valuation carried out on 7 July 2022 by Chartered Surveyors, who are not connected with the company. The valuation was made on an open market value basis by reference to market evidence of transaction prices for similar properties.
STERLING PROPERTY CO. LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 DECEMBER 2022
4
Investment property
(Continued)
- 7 -
As noted in the accounting policies note, the directors are of the opinion that certain properties, previously accounted for as stock, should have always have been accounted for as investment properties. See the accounting policies note for further information.
5
Fixed asset investments
2022
2021
£
£
Shares in group undertakings and participating interests
30,000
Other investments other than loans
47,004
14,504
47,004
44,504
Movements in fixed asset investments
Shares in subsidiaries
Other investments
Total
£
£
£
Cost or valuation
At 1 July 2021
30,000
14,504
44,504
Valuation changes
-
32,500
32,500
Disposals
(30,000)
-
(30,000)
At 31 December 2022
-
47,004
47,004
Carrying amount
At 31 December 2022
-
47,004
47,004
At 30 June 2021
30,000
14,504
44,504
6
Debtors
2022
2021
Amounts falling due within one year:
£
£
Trade debtors
49,227
58,387
Amounts owed by group undertakings
345,188
7,681,742
Other debtors
5,116,631
2,236,610
5,511,046
9,976,739
STERLING PROPERTY CO. LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 DECEMBER 2022
- 8 -
7
Creditors: amounts falling due within one year
2022
2021
£
£
Trade creditors
829,875
720,260
Taxation and social security
1,532,687
204,886
Other creditors
6,180,964
5,099,300
8,543,526
6,024,446
8
Creditors: amounts falling due after more than one year
2022
2021
£
£
Other creditors
34,650
9
Deferred taxation
The following are the major deferred tax liabilities and assets recognised by the company and movements thereon:
Liabilities
Liabilities
2022
2021
Balances:
£
£
Accelerated capital allowances
(8,151)
(3,408)
Capital gains
348,595
952,749
340,444
949,341
2022
Movements in the period:
£
Liability at 1 July 2021
949,341
Credit to profit or loss
(608,897)
Liability at 31 December 2022
340,444
The deferred tax liability set out above is expected to reverse in a future period and relates to accelerated capital allowances that are expected to mature within the same period.
10
Operating lease commitments
Lessee
At the period end, the company had operating lease commitments totalling £6,237.
STERLING PROPERTY CO. LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 DECEMBER 2022
- 9 -
11
Related party transactions
At the period end, the company was owed £345,188 from the parent company (2021 - £7,681,742).
In the year ending 30 June 2021, other debtors included amounts due from a pension scheme of a company under the control of a director amounting to £92,292. This debtor was fully repaid in the period ending 31 December 2022.
Included in creditors are amounts owed to companies under the control of a director amounting to £36,172 (2021 - £28,716) and amounts owed to pension schemes of companies under the control of a director amounting to £2,355,172 (2021 - £1,776,709).
12
Prior period adjustment
Reconciliation of changes in equity
1 July
30 June
2020
2021
£
£
Adjustments to prior period
Adjustment to fair value net of deferred tax
3,504,728
3,455,071
Equity as previously reported
12,071,675
12,281,995
Equity as adjusted
15,576,403
15,737,066
Analysis of the effect upon equity
Revaluation reserve
3,504,728
3,455,071
Reconciliation of changes in profit for the previous financial period
2021
£
Adjustments to prior period
Adjustment to fair value net of deferred tax
(49,657)
Profit as previously reported
210,320
Profit as adjusted
160,663
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