MGMA Properties Limited - Period Ending 2019-11-30

Registration number: 09859460

MGMA Properties Limited

Annual Report and Unaudited Financial Statements

for the Year Ended 30 November 2019

Pages for Filing with Registrar

MGMA Properties Limited

(Registration number: 09859460)
Balance Sheet as at 30 November 2019

	Note	2019 £	2018 £
Fixed assets
Tangible assets	5	402	724
Investment property	6	1,375,747	1,375,747
		1,376,149	1,376,471
Current assets
Debtors	7	1,654	3,900
Cash at bank and in hand		22,198	6,881
		23,852	10,781
Creditors: Amounts falling due within one year	8	(1,335,790)	(1,347,420)
Net current liabilities		(1,311,938)	(1,336,639)
Net assets		64,211	39,832
Capital and reserves
Called up share capital		100	100
Profit and loss account		64,111	39,732
Shareholders' funds		64,211	39,832

The notes on pages 3 to 8 form an integral part of these financial statements.

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MGMA Properties Limited

(Registration number: 09859460)
Balance Sheet as at 30 November 2019

For the financial year ending 30 November 2019 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.

Directors' responsibilities:

•	The members have not required the company to obtain an audit of its accounts for the year in question in accordance with section 476; and
•	The directors acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and the preparation of accounts.

These financial statements have been prepared in accordance with the special provisions relating to companies subject to the small companies regime within Part 15 of the Companies Act 2006.

These financial statements have been delivered in accordance with the provisions applicable to companies subject to the small companies regime and the option not to file the Profit and Loss Account has been taken.

Approved and authorised by the Board on 16 September 2020 and signed on its behalf by:
 

.........................................

MV Moulene
Director

The notes on pages 3 to 8 form an integral part of these financial statements.

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MGMA Properties Limited

Notes to the Unaudited Financial Statements for the Year Ended 30 November 2019

1	General information

The company is a private company limited by share capital, incorporated in England and Wales.

Principal activity

The principal activity of the company is the rental of investment property.

The address of its registered office is:
Sovereign House
212-224 Shaftesbury Avenue
London
WC2H 8HQ
United Kingdom

2	Accounting policies

Summary of significant accounting policies and key accounting estimates

The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.

Statement of compliance

These financial statements have been prepared in accordance with Financial Reporting Standard 102 Section 1A - 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' and the Companies Act 2006.

Basis of preparation

These financial statements have been prepared using the historical cost convention except that as disclosed in the accounting policies certain items are shown at fair value.

Going concern

The company made a profit in the period but has net current liabilities. The company is dependent on the support from the shareholders to continue as a going concern.

The financial statements have been prepared on a going concern basis that assumes further funding will be obtained.

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MGMA Properties Limited

Notes to the Unaudited Financial Statements for the Year Ended 30 November 2019

Turnover recognition

Turnover comprises the fair value of the consideration received or receivable from the rental of investment properties in the ordinary course of the Company’s activities. Turnover is shown net of sales/value added tax, returns, rebates and discounts.

The Company recognises revenue when:
The amount of revenue can be reliably measured;
it is probable that future economic benefits will flow to the entity;
and specific criteria have been met for each of the Company's activities.

Tax

The tax expense for the period comprises current tax. Tax is recognised in profit or loss, except that a change attributable to an item of income or expense recognised as other comprehensive income is also recognised directly in other comprehensive income.

The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the reporting date in the countries where the company operates and generates taxable income.

Tangible assets

Tangible assets are stated in the statement of financial position at cost, less any subsequent accumulated depreciation and subsequent accumulated impairment losses.

The cost of tangible assets includes directly attributable incremental costs incurred in their acquisition and installation.

Depreciation

Depreciation is charged so as to write off the cost of assets, other than land and properties under construction over their estimated useful lives, as follows:

Asset class	Depreciation method and rate
Fixtures & Fittings	20% straight line

Investment property

Investment property is carried at fair value, derived from the current market prices for comparable real estate determined annually by the directors. The directors use observable market prices, adjusted if necessary for any difference in the nature, location or condition of the specific asset. Changes in fair value are recognised in profit or loss.

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MGMA Properties Limited

Notes to the Unaudited Financial Statements for the Year Ended 30 November 2019

Financial instruments

The Company only enters into basic financial instruments transactions that result in the recognition of financial assets and liabilities like trade and other debtors and creditors, loans to related parties and investments in non-puttable ordinary shares.

Financial assets that are measured at cost and amortised cost are assessed at the end of each reporting period for objective evidence of impairment. If objective evidence of impairment is found, an impairment loss is recognised in profit or loss.

Financial assets and liabilities are offset and the net amount reported in the Balance Sheet when there is an 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.

Debtors

Basic financial assets, including trade and other debtors, are initially recognised at transaction price, 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. Such assets are subsequently carried at amortised cost using the effective interest method, less any impairment,

Trade debtors are amounts due from customers for merchandise sold or services performed in the ordinary course of business.

Cash and cash equivalents

Cash and cash equivalents comprise cash on hand and call deposits, and other short-term highly liquid investments that are readily convertible to a known amount of cash and are subject to an insignificant risk of change in value.

Creditors

Basic financial liabilities, including trade and other creditors, loans from third parties and loans from related parties, 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. Such instruments are subsequently carried at amortised cost using the effective interest method, less any impairment.

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Trade creditors are classified as current liabilities if the Company does not have an unconditional right, at the end of the reporting period, to defer settlement of the creditor for at least twelve months after the reporting date. If there is an unconditional right to defer settlement for at least twelve months after the reporting date, they are presented as non-current liabilities.

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MGMA Properties Limited

Notes to the Unaudited Financial Statements for the Year Ended 30 November 2019

Share capital

Ordinary shares are classified as equity. Equity instruments are measured at the fair value of the cash or other resources received or receivable, net of the direct costs of issuing the equity instruments. If payment is deferred and the time value of money is material, the initial measurement is on a present value basis.

3	Significant judgements and estimation uncertainty

The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the amounts reported for assets and liabilities as at the balance sheet date and the amounts reported for revenues and expenses during the year. However, the nature of estimation means that actual outcomes could differ from those estimates.

On 30 January 2020 the World Health Organisation declared the outbreak of the Coronavirus (Covid-19) pandemic to be a public health emergency of international concern. This is a non-adjusting subsequent event, as it does not impact the valuation of assets as at the year end date.

Since the year-end, due to the global impact of the Coronavirus (Covid-19) pandemic, the value of the investment property has been impacted. It is not possible, at this time, to quantify the change in market value in a meaningful way, due to ongoing volatility as the situation is fluid and unpredictable. The board are reviewing the impact of the pandemic on the operations of the company on a regular basis.

4	Staff numbers

The average number of persons employed by the company (including directors) during the year, was 0 (2018 - 0).

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MGMA Properties Limited

Notes to the Unaudited Financial Statements for the Year Ended 30 November 2019

5	Tangible assets

	Furniture, fittings and equipment  £	Total £
Cost or valuation
At 1 December 2018	1,611	1,611
At 30 November 2019	1,611	1,611
Depreciation
At 1 December 2018	887	887
Charge for the year	322	322
At 30 November 2019	1,209	1,209
Carrying amount
At 30 November 2019	402	402
At 30 November 2018	724	724

6	Investment properties

	2019 £
As at 30 November 2018 and 2019	1,375,747

7

Debtors

	2019 £	2018 £
Other debtors	1,654	3,900

8

Creditors

Creditors: amounts falling due within one year

	2019 £	2018 £
Due within one year
Other creditors	1,335,790	1,347,420

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MGMA Properties Limited

Notes to the Unaudited Financial Statements for the Year Ended 30 November 2019

9

Dividends

There were no dividends paid or proposed in either the current year or the previous period.

10	Related party transactions

Summary of transactions with other related parties

GR Colquhoun & MV Moulene
(Directors)

During the year, GR Colquhoun & MV Moulene made payments on behalf of the company totalling £416 (2018: £416) and the company repaid £nil (2018: £nil). At the balance sheet date the amount due to GR Colquhoun & MV Moulene was £1,328,106 (2018: £1,327,690).
 

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