Company registration number 01660897 (England and Wales)
SOMERSTOWN MANAGEMENT COMPANY LIMITED
FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2023
PAGES FOR FILING WITH REGISTRAR
SOMERSTOWN MANAGEMENT COMPANY LIMITED
CONTENTS
Page
Balance sheet
1
Statement of changes in equity
2
Notes to the financial statements
3 - 6
SOMERSTOWN MANAGEMENT COMPANY LIMITED
BALANCE SHEET
AS AT
30 SEPTEMBER 2023
30 September 2023
- 1 -
2023
2022
Notes
£
£
£
£
Current assets
Debtors
5
12,709
25,320
Cash at bank and in hand
264,200
342,808
276,909
368,128
Creditors: amounts falling due within one year
6
(7,322)
(24,855)
Net current assets
269,587
343,273
Capital and reserves
Called up share capital
152
152
Reserves
269,435
343,121
Total equity
269,587
343,273
The directors of the company have elected not to include a copy of the profit and loss account within the financial statements.true
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 21 December 2023 and are signed on its behalf by:
Ms A Bullen
Director
Company Registration No. 01660897
SOMERSTOWN MANAGEMENT COMPANY LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 SEPTEMBER 2023
- 2 -
Share
capital
- - - Flats reserves - - -
- - Estate reserves - -
Total
Service
Future
Roof
Future
Service
charge
major
maintenance
major
charge
account
maintenance
maintenance
account
£
£
£
£
£
£
£
Balance at 1 October 2021
152
7,664
113,470
111,561
14,670
60,715
308,232
Year ended 30 September 2022:
Transfers to/(from) reserves
3,637
45,400
6,000
8,500
(3,165)
60,372
Expenditure funded from reserves
-
-
(24,381)
-
(950)
-
(25,331)
Balance at 30 September 2022
152
11,301
134,489
117,561
22,220
57,550
343,273
Year ended 30 September 2023:
Transfers to/(from) reserves
2,233
115,250
9,000
9,500
(11,320)
124,663
Expenditure funded from reserves
-
-
(194,450)
(3,899)
-
-
(198,349)
Balance at 30 September 2023
152
13,534
55,289
122,662
31,720
46,230
269,587
SOMERSTOWN MANAGEMENT COMPANY LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2023
- 3 -
1
Accounting policies
Company information
Somerstown Management Company Limited is a private company limited by shares incorporated in England and Wales. The registered office is Piper House, 4 Dukes Court, Bognor Road, Chichester, West Sussex, PO19 8FX.
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. The principal accounting policies adopted are set out below.
1.2
Turnover
Turnover represents total contributions receivable from the members to cover expenses incurred by the company in complying with its covenants and obligations to maintain and managed the flats and estate at Somerstown, Chichester.
1.3
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.
1.4
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 balance sheet 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.
Basic financial assets
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.
Classification of financial liabilities
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.
SOMERSTOWN MANAGEMENT COMPANY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2023
1
Accounting policies
(Continued)
- 4 -
Basic financial 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 payments 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. Amounts 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.
1.5
Equity instruments
Equity instruments issued by the company are recorded at the proceeds received, net of direct issue costs.
1.6
Taxation
The company is liable to Corporation tax on its investment income only.
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
4
Service charge bank accounts
Service charge money was held in interest bearing bank accounts as follows:
- Barclays Bank Plc, Chichester in trust, under the title Stride and Son Limited re Somerstown Savings
account number 23609081
SOMERSTOWN MANAGEMENT COMPANY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2023
- 5 -
5
Debtors
2023
2022
Amounts falling due within one year:
£
£
Service charge arrears
12,157
6,219
Other debtors
552
19,101
12,709
25,320
6
Creditors: amounts falling due within one year
2023
2022
£
£
Corporation tax
209
6
Other creditors
7,113
24,849
7,322
24,855
7
Audit report information
As the income statement has been omitted from the filing copy of the financial statements, the following information in relation to the audit report on the statutory financial statements is provided in accordance with s444(5B) of the Companies Act 2006:
The auditor's report was unqualified.
Senior Statutory Auditor:
Claire Norwood BSc FCA ATII
Statutory Auditor:
Sumer Audit
8
Designated reserves
Estate Service Charge Account
The estate service charge account represents the unexpended sums collected in respect of the Somerstown Estate service charge.
Estate Future Major Maintenance Reserve
Sums have been designated for the future major maintenance of the Somerstown Estate, this includes the previous wall and roadway reserve.
Flats Roof Reserve
Sums have been set aside for the repair and replacement of the flats roofs.
Flats Future Major Maintenance Reserve
Sums have been designated for the future major maintenance of the flats, this includes the previous painting fund.
Flat Service Charge Account
The flat service charge account represents the unexpended sums collected in respect of the flats service charge.
SOMERSTOWN MANAGEMENT COMPANY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2023
- 6 -
9
Control
Each owner of a property within the Somerstown Estate holds one share in the company and the company is controlled by its members.
10
Related party transactions
The directors are all members of the company and also owners of the properties managed by the company. As such they are required to pay estate charges of £360 (2022 - £336) and, if owners of a flat, a flat service charge of £1,200 (2022 - £1,080) in line with all other owners. No directors had any material outstanding balances at the year end.
Service charge expenditure includes a total of £2,640 payable to MRN Roofing Services, an associated company by virtue of marriage to a director of Stride & Son.