Company Registration No. 13199071 (England and Wales)
MORGAN-EVANS PROPERTY LTD
ANNUAL REPORT AND UNAUDITED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 28 FEBRUARY 2023
PAGES FOR FILING WITH REGISTRAR
LB GROUP
The Octagon Suite E2
2nd Floor Middleborough
Colchester
Essex
CO1 1TG
MORGAN-EVANS PROPERTY LTD
CONTENTS
Page
Statement of financial position
1 - 2
Notes to the financial statements
3 - 6
MORGAN-EVANS PROPERTY LTD
STATEMENT OF FINANCIAL POSITION
AS AT
28 FEBRUARY 2023
28 February 2023
- 1 -
2023
2022
as restated
Notes
£
£
£
£
Fixed assets
Investment property
4
522,422
238,694
Current assets
Debtors
5
642
Cash at bank and in hand
129,501
4,830
129,501
5,472
Creditors: amounts falling due within one year
6
(304,691)
(77,152)
Net current liabilities
(175,190)
(71,680)
Total assets less current liabilities
347,232
167,014
Creditors: amounts falling due after more than one year
7
(373,958)
(172,500)
Net liabilities
(26,726)
(5,486)
Capital and reserves
Called up share capital
100
100
Profit and loss reserves
(26,826)
(5,586)
Total equity
(26,726)
(5,486)
The directors of the company have elected not to include a copy of the income statement within the financial statements.true
For the financial year ended 28 February 2023 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 members have not required the company to obtain an audit of its financial statements for the year 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.
MORGAN-EVANS PROPERTY LTD
STATEMENT OF FINANCIAL POSITION (CONTINUED)
AS AT
28 FEBRUARY 2023
28 February 2023
- 2 -
The financial statements were approved by the board of directors and authorised for issue on 1 December 2023 and are signed on its behalf by:
Mrs T Morgan-Evans
Director
Company Registration No. 13199071
MORGAN-EVANS PROPERTY LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 28 FEBRUARY 2023
- 3 -
1
Accounting policies
Company information
Morgan-Evans Property LTD is a private company limited by shares incorporated in England and Wales. The registered office is Great Bradley Oak Stud, East Green, Great Bradley, Newmarket, Suffolk, UK, CB8 9LU.
1.1
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 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.
1.2
Going concern
The company is in a net current liabilities position of £175,190 at the balance sheet date.true
This includes a creditor balance of £282,312 due to the directors, who have confirmed in writing that they will not recall until the company is in a position to repay this and for at least 12 months from the date these financial statements are signed.
The directors have considered the forecasted future operations of the company and they have confirmed to provide continuing financial support to the company, and have concluded that the company will have adequate resources to continue in business for the foreseeable future, being at least 12 months from the date of approval of these financial statements.
1.3
Investment property
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.
1.4
Cash and cash equivalents
Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.
1.5
Financial instruments
The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the company's statement of financial position when the company becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally 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.
MORGAN-EVANS PROPERTY LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 28 FEBRUARY 2023
1
Accounting policies
(Continued)
- 4 -
1.6
Equity instruments
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.
1.7
Employee benefits
The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.
The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.
Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.
1.8
Leases
Rental income from operating leases is recognised on a straight line basis over the term of the relevant lease. Initial direct costs incurred in negotiating and arranging an operating lease are added to the carrying amount of the leased asset and recognised on a straight line basis over the lease term.
2
Judgements and key sources of estimation uncertainty
In the application of the company’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.
3
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2023
2022
Number
Number
Total
2
2
4
Investment property
2023
£
Fair value
At 1 March 2022
238,694
Additions
283,728
At 28 February 2023
522,422
MORGAN-EVANS PROPERTY LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 28 FEBRUARY 2023
4
Investment property
(Continued)
- 5 -
Investment property comprises £522,422. The fair value of the investment property has been arrived at on the basis of a valuation carried out by the directors. The valuation was made on an open market value basis by reference to market evidence of transaction prices for similar properties.
5
Debtors
2023
2022
Amounts falling due within one year:
£
£
Other debtors
642
6
Creditors: amounts falling due within one year
2023
2022
£
£
Other creditors
304,691
77,152
7
Creditors: amounts falling due after more than one year
2023
2022
£
£
Bank loans and overdrafts
373,958
172,500
A fixed charge created on 7 July 2021 secured over 1 Damson Close, Red Lodge, Bury St Edmunds, Suffolk IP28 8FJ is held by Saffron Building Society.
A fixed charge created on 26 January 2023 secured over 77 Constance Street, Consett, DH8 5DT is held by Fleet Mortgages Limited.
A fixed charge created on 26 January 2023 secured over 14 Dean Close, Peterlee, SR8 5RX is held by Fleet Mortgages Limited.
A fixed charge created on 26 January 2023 secured over 51 Fulwell Road, Peterlee, SR8 5RD is held by Fleet Mortgages Limited.
8
Events after the reporting date
The following charges were created after the balance sheet date:
A charge created on 17 March 2023 secured over Rubi Way, Crawlaw, Peterlee, SR8 3LP is held by Fleet Mortgages Limited.
A charge created on 19 April 2023 secured over 10 King Edward Terrace, Stanley, DH9 9LT is held by Fleet Mortgages Limited.
A charge created on 24 April 2023 secured over 62 Fairbarn Road, Peterlee, SR8 5EW is held by The Mortgage Works (UK) PLC.
A fixed charge created on 26 October 2023 secured over 1 Damson Close, Red Lodge, Bury St Edmunds, Suffolk, IP28 8FJ is held by Onesavings Bank PLC.
MORGAN-EVANS PROPERTY LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 28 FEBRUARY 2023
- 6 -
9
Prior period adjustment
Reconciliation of changes in equity
12 February
28 February
2021
2022
Notes
£
£
Adjustments to prior year
Reclassification to Investment Property
1
-
4,774
Equity as previously reported
-
(10,260)
Equity as adjusted
-
(5,486)
Analysis of the effect upon equity
Profit and loss reserves
-
4,774
Reconciliation of changes in loss for the previous financial period
2022
Notes
£
Adjustments to prior year
Reclassification to Investment Property
1
4,774
Loss as previously reported
(10,360)
Loss as adjusted
(5,586)
Notes to reconciliation
Reclassification to Investment Property
A prior period adjustment has been made in respect of the reclassification of the properties as Investment Properties. As a result of this reclassification, depreciation charged in the prior year has been eliminated.