Meridien Limited is a private company limited by shares incorporated in England and Wales. The registered office is 1 Angel Court, Pall Mall, London, SW1Y 6QF.
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 a mounts in these financial statements are rounded to the nearest £.
The financial statements have been prepared under the historical cost convention, modified to include the revaluation of freehold properties and to include investment properties and certain financial instruments at fair value. The principal accounting policies adopted are set out below.
Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method 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. Financial assets classified as receivable within one year are not amortised.
Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.
Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future paymen ts discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.
Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. A m ounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.
Equity instruments issued by the company are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.
Going Concern
At the reporting date, current liabilities exceeded current assets by £ 18,722,654 (2017: £ 18,362,285 ) and had a shareholder's deficit of £5,468,462 (2017: £ 5,634,070 ). The company meets its day to day working capital requirements through borrowings from its bankers and directors.
The directors have prepared the financial statements on a going concern basis which assumes that the company will be in operational existence for the foreseeable future. The validity of this assumption depends on the bankers and directors continuing their support by providing adequate funding.
In the opinion of the director, the fair value of the property is not materially different to the value stated above.
The bank loan is secured by a first legal charge over the freehold property and by a floating charge over all of the company's other assets.
Profit and loss reserves include non distributable reserves of £4,374,371.
There exists a contingent liability of approximately £2 million in respect of taxation liabilities for prior years relating to tax planning arrangements entered into by the company. The company has been advised, at the time of entering into the arrangement, that no such liability should arise and, based on Counsel's Opinion the director believed that the advice is correct.
During the year, the company accrued management charge of £10,000 (2017: £10,000) to Intercounty Properties Limited, an ultimate parent company and the balance owed to Intercounty Properties Limited at the balance sheet date was £6,779,395 (2017: £5,295,662 ). The balance due from Intercounty Properties (Investment 12) Limited, an immediate parent company was £11,998 (2017: £11,340).
The balance due to the director at the balance sheet date was £6,760,804 (2017: £7,860,804).
The immediate parent company and the ultimate parent company are Intercounty Properties (Investment 12) Limited and Intercounty Properties Limited respectively. Their addresses are as follows:
Registered office address: 1 Angel Court, Pall Mall, London, SW1Y 6QF.
Principal place of business is the same as the registered office.