M G Property UK Ltd. - Accounts to registrar (filleted) - small 18.2

REGISTERED NUMBER: 00874331 (England and Wales)

UNAUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JANUARY 2019

FOR

M G PROPERTY UK LTD.

Page

Company Information

1

Statement of Financial Position

2

Notes to the Financial Statements

4

DIRECTORS:

Mrs S K Coleman

Mr M P Coleman

Mr B P Coleman

Mr R Cooke

SECRETARY:

Mrs S K Coleman

REGISTERED OFFICE:

61 Queen Square

Bristol

BS1 4JZ

REGISTERED NUMBER:

00874331 (England and Wales)

ACCOUNTANTS:

Burnside

Chartered Accountants

and Statutory Auditor

61 Queen Square

Bristol

BS1 4JZ

FIXED ASSETS

Tangible assets

3

10,620

15,930

Investment property

4

2,035,000

2,035,000

2,045,620

2,050,930

CURRENT ASSETS

Debtors

5

235,783

267,870

Cash at bank and in hand

325,277

243,476

561,060

511,346

CREDITORS

Amounts falling due within one year

6

181,574

188,481

NET CURRENT ASSETS

379,486

322,865

TOTAL ASSETS LESS CURRENT LIABILITIES

2,425,106

2,373,795

CREDITORS

Amounts falling due after more than one year

7

(646,243

)

(664,495

)

PROVISIONS FOR LIABILITIES

(234,048

)

(234,048

)

NET ASSETS

1,544,815

1,475,252

CAPITAL AND RESERVES

Called up share capital

14,259

14,259

Share premium

4,423

4,423

Revaluation reserve

8

1,341,186

1,341,186

Retained earnings

184,947

115,384

1,544,815

1,475,252

The company is entitled to exemption from audit under Section 477 of the Companies Act 2006 for the year ended 31 January 2019.

The members have not required the company to obtain an audit of its financial statements for the year ended 31 January 2019 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 Statement of Comprehensive Income has not been delivered.

The financial statements were approved by the Board of Directors on 23 October 2019 and were signed on its behalf by:

Mrs S K Coleman - Director

1.	STATUTORY INFORMATION

M G Property UK Ltd. is a private company, limited by shares , registered in England and

Wales. The company's registered number and registered office address can be found on the

Company Information page.

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.

Critical accounting judgements and key sources of estimation uncertainty

The preparation of the financial statements requires management to make judgements,

estimates and assumptions that affect the amounts reported. These estimates and

judgements are continually reviewed and are based on experience and other factors,

including expectations of future events that are believed to be reasonable under the

circumstances.

Turnover

Turnover is measured at the fair value of the consideration received or receivable, excluding

discounts, rebates, value added tax and other sales taxes.

Tangible fixed assets

Tangible assets are initially recorded at cost, and subsequently stated at cost less any

accumulated depreciation and impairment losses. Any tangible assets carried at revalued

amounts are recorded at the fair value at the date of revaluation less any subsequent

accumulated depreciation and subsequent accumulated impairment losses.

An increase in the carrying amount of an asset as a result of a revaluation, is recognised in

other comprehensive income and accumulated in equity, except to the extent it reverses a

revaluation decrease of the same asset previously recognised in profit or loss. A decrease in

the carrying amount of an asset as a result of revaluation, is recognised in other

comprehensive income to the extent of any previously recognised revaluation increase

accumulated in equity in respect of that asset. Where a revaluation decrease exceeds the

accumulated revaluation gains accumulated in equity in respect of that asset, the excess

shall be recognised in profit or loss.

Depreciation

Depreciation is calculated so as to write off the cost or valuation of an asset, less its residual

value, over the useful economic life of that asset as follows:

Plant & equipment - 33% straight line

Motor vehicles - 25% straight line

Impairment of fixed assets

A review for indicators of impairment is carried out at each reporting date, with the

recoverable amount being estimated where such indicators exist. Where the carrying value

exceeds the recoverable amount, the asset is impaired accordingly. Prior impairments are

also reviewed for possible reversal at each reporting date.

For the purposes of impairment testing, when it is not possible to estimate the recoverable

amount of an individual asset, an estimate is made of the recoverable amount of the cash

generating unit to which the asset belongs. The cash-generating unit is the smallest

identifiable group of assets that includes the asset and generates cash inflows that largely

independent of the cash inflows from other assets or groups of assets.

For impairment testing of goodwill, the goodwill acquired in a business combination is, from

the acquisition date, allocated to each of the cash-generating units that are expected to

benefit from the synergies of the combination, irrespective of whether other assets or

liabilities of the company are assigned to those units.

Investment property

Investment property is initially recorded at cost, which includes purchase price and any

directly attributable expenditure. Investment property is revalued to its fair value at each

reporting date and any changes in fair value are recognised in profit or loss. If a reliable

measure of fair value is no longer available without undue cost or effort for an item of

investment property, it shall be transferred to tangible assets and treated as such until it is

expected that fair value will be reliably measurable on an on-going basis.

Financial instruments

Financial instruments are classified and accounted for, according to the substance of the

contractual arrangement, as either financial assets, financial liabilities or equity instruments.

An equity instrument is any contract that evidences a residual interest in the assets of the

company after deducting all of its liabilities.

Taxation

Taxation for the year comprises current and deferred tax. Tax is recognised in the Income

Statement, except to the extent that it relates to items recognised in other comprehensive

income or directly in equity.

Current or deferred taxation assets and liabilities are not discounted.

Current tax is recognised at the amount of tax payable using the tax rates and laws that

have been enacted or substantively enacted by the statement of financial position date.

Deferred tax

Deferred tax is recognised in respect of all timing differences that have originated but not

reversed at the statement of financial position date.

Timing differences arise from the inclusion of income and expenses in tax assessments in

periods different from those in which they are recognised in financial statements. Deferred

tax is measured using tax rates and laws that have been enacted or substantively enacted

by the year end and that are expected to apply to the reversal of the timing difference.

Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it

is probable that they will be recovered against the reversal of deferred tax liabilities or other

future taxable profits.

Hire purchase and leasing commitments

Assets obtained under hire purchase contracts or finance leases are capitalised in the

balance sheet. Those held under hire purchase contracts are depreciated over their

estimated useful lives. Those held under finance leases are depreciated over their

estimated useful lives or the lease term, whichever is the shorter.

The interest element of these obligations is charged to profit or loss over the relevant period.

The capital element of the future payments is treated as a liability.

Assets held under finance leases and hire purchase contracts are recognised in the

statement of financial position as assets and liabilities at the lower of the fair value of the

assets and the present value of the minimum lease payments, which is determined at the

inception of the lease term. Any initial direct costs of the lease are added to the amount

recognised as an asset.

Lease payments are apportioned between the finance charges and reduction of the

outstanding lease liability using the effective interest method. Finance charges are allocated

to each period so as to produce a constant rate of interest on the remaining balance of the

liability.

Provisions

Provisions are recognised when the entity has an obligation at the reporting date as a result

of a past event, it is probable that the entity will be required to transfer economic benefits in

settlement and the amount of the obligation can be estimated reliably. Provisions are

recognised as a liability in the statement of financial position and the amount of the provision

as an expense.

Provisions are initially measured at the best estimate of the amount required to settle the

obligation at the reporting date and subsequently reviewed at each reporting date and

adjusted to reflect the current best estimate of the amount that would be required to settle

the obligation. Any adjustments to the amounts previously recognised are recognised in

profit or loss unless the provision was originally recognised as part of the cost of an asset.

When a provision is measured at the present value of the amount expected to be required to

settle the obligation, the unwinding of the discount is recognised as a finance cost in profit or

loss in the period it arises.

3.	TANGIBLE FIXED ASSETS

Fixtures

and

Motor

fittings

vehicles

Totals

£

£

£

COST

At 1 February 2018

and 31 January 2019

27,688

21,240

48,928

DEPRECIATION

At 1 February 2018

27,688

5,310

32,998

Charge for year

-

5,310

5,310

At 31 January 2019

27,688

10,620

38,308

NET BOOK VALUE

At 31 January 2019

-

10,620

10,620

At 31 January 2018

-

15,930

15,930

Fixed assets, included in the above, which are held under hire purchase contracts are as

follows:

Motor

vehicles

£

COST

At 1 February 2018

and 31 January 2019

21,240

DEPRECIATION

At 1 February 2018

5,310

Charge for year

5,310

At 31 January 2019

10,620

NET BOOK VALUE

At 31 January 2019

10,620

At 31 January 2018

15,930

4.	INVESTMENT PROPERTY

Total

£

FAIR VALUE

At 1 February 2018

and 31 January 2019

2,035,000

NET BOOK VALUE

At 31 January 2019

2,035,000

At 31 January 2018

2,035,000

Investment property

The company's freehold property was valued by the directors at 31 January 2019 at open

market value of £2,035,000. It is the company's policy to obtain a professional valuation of

the company once every five years. The last professional valuation was undertaken by

Lambert Smith Hampton in April 2015, when the open market value was deemed to be

£1,850,000.

In respect of the investment property stated at market value, the historical cost of the

property at 31 January 2019 was £470,702 (2018 - £470,702).

5.

DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2019

2018

£

£

Trade debtors

2,485

48,347

Other debtors

205,533

219,523

Payments made on account

21,765

-

Directors' loan accounts

6,000

-

235,783

267,870

6.

CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2019

2018

£

£

Bank loans and overdrafts

22,455

24,235

Hire purchase contracts

3,794

3,643

Trade creditors

4,253

1,645

Amounts owed to group undertakings

11,775

13,039

Tax

17,005

97,672

VAT

9,653

4,992

Other creditors

68,458

3,458

Accruals and deferred income

44,181

39,797

181,574

188,481

7.

CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR

2019

2018

£

£

Bank loans - 2-5 years

108,610

106,276

Bank loans more 5 yr by instal

225,050

249,027

Hire purchase contracts

9,867

13,660

Other creditors

302,716

295,532

646,243

664,495

Amounts falling due in more than five years:

Repayable by instalments

Bank loans more 5 yr by instal

225,050

249,027

As at 31 January 2019, £356,116 is outstanding for repayment of which £225,050 (2018 -

£249,027) is due for repayment after 5 years based on an effective rate of interest of 3.51%.

The loan is due to expire in August 2030.

8.

RESERVES

Revaluation

reserve

£

At 1 February 2018

and 31 January 2019

1,341,186

9.	DIRECTORS' ADVANCES, CREDITS AND GUARANTEES

The following advances and credits to a director subsisted during the years ended

31 January 2019 and 31 January 2018:

2019

2018

£

£

Mr M P Coleman

Balance outstanding at start of year

-

1,000

Amounts advanced

6,000

(1,000

)

Amounts repaid

-

-

Amounts written off

-

-

Amounts waived

-

-

Balance outstanding at end of year

6,000

-

10.	RELATED PARTY DISCLOSURES

The company was under the control of Mrs S Coleman throughout the current and previous

year by virtue of a shareholding in the company's parent undertaking, Ice House Trading

Company Limited.

At 31 January 2019, the company owed £11,775 (2018 - £13,039) to its parent company Ice

House Trading Company Limited.

The company owed at 31 January 2019, £192,708 (2018 - £195,226) to Magdalen and

Cross Limited, a company in which Mrs S Coleman has a 50% shareholding. Interest is

payable on the loan at 5% per annum. At 31 January 2019 interest of £110,006 (2018 -

£100,305) is accrued on the loan.

At the year end the company was owed £243,651 (2018 - £212,650) from MG Property US

LLC, a company under control of Mr B and Mrs S Coleman. Management charges of £nil

(2018 - £40,000) were charged from MG Property US LLC in the year for management

services supplied.

11.	ULTIMATE CONTROLLING PARTY

The ultimate controlling party is Ice House Trading Company Limited.