MIDDLESEX_TEXTILES_(UK)_L - Accounts

The director of the company has elected not to include a copy of the profit and loss account within the financial statements.true

For the financial year ended 31 December 2021 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.

The director acknowledges his responsibilities for complying with the requirements of the Companies Act 2006 with respect to accounting records and the preparation of financial statements.

The member has 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 within Part 15 of the Companies Act 2006.

Middlesex Textiles (UK) Limited (company registration number: 03238037) is a private company limited by shares incorporated in England and Wales. The registered office is 3rd Floor, 166 College Road, Harrow, Middlesex, HA1 1BH.

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 historical cost convention, modified to include the revaluation of freehold properties and to include investment properties and certain financial instruments at fair value. The principle accounting policies adopted are set out below.

The director believes that the company is well placed to manage its business risks successfully. Accordingly they have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Thus they continue to adopt the going concern basis of accounting in preparing the financial statements.true

Turnover is measured at fair value of the consideration received or receivable from the investment in and letting of land and property and other investment activities, which are exempt from VAT.

Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.

Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is credited or charged to profit or loss.

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. The surplus or deficit on revaluation is recognised in a separate non-distributable fair value reserve.

Where fair value cannot be achieved without undue cost or effort, investment property is accounted for as property under tangible fixed assets.

Fixed assets investments are initially measured at cost and subsequently measured at cost or valuation, net of any impairment losses. Any fixed asset investments carried at revalued amounts are recorded at their fair value at the date of the valuation less any subsequent impairment losses. The surplus or deficit on revaluation is recognised in profit or loss.

At each reporting period end date, the company reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.

If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.

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.

The taxation expense represents the aggregate amount of current and deferred tax recognised in the reporting period. Tax is recognised in profit and loss, except to the extent it relates to items recognised in other comprehensive income or directly in equity. In this case, tax is recognised in other comprehensive income or directly in equity, respectively.

Current tax is recognised on taxable profit for current and past periods. Current tax is measured at the amounts of tax expected to pay or recover using tax rates and laws that have been enacted or substantively enacted at the reporting date.

Deferred tax is recognised in respect of all timing differences at the reporting date. Unrelieved tax losses and other deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Deferred tax is measured using the tax rates and laws that have been enacted or substantively enacted by the reporting date that are expected to apply to the reversal of the timing difference.

In the application of the company’s accounting policies, the director is 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.

The average monthly number of persons (including directors) employed by the company during the year was:

In addition to the amount charged to the profit and loss account, the following amounts relating to tax have been recognised directly in other comprehensive income:

The applicable rate of UK Corporation Tax was 19% (2020: 19%).

The Director does not propose a final dividend.

The freehold investment properties situated in Eilat, Israel were revalued during the year by £884,670 to £3,720,930 (15,600,000 ILS) by Ilan Bar-Hanin, a local property management firm who are independent of the company and have experience of valuing similar properties. The valuation was made on the basis of open market for existing use. The director is not aware of any material change in value since the date of the valuation and consider the valuation of 31 December 2021 not to be materially different from the market value. If the investment properties were included in the balance sheet on an historic cost basis, then the carrying amount would be £507,627 (2020: £507,627).

A provision for deferred tax in the region of £556,000 arising on the revaluation has been made in these financial statements.

Other investments represents an investment in a Transact Portfolio dealing mainly in bonds and other securities.

The other investments were valued at their open market price as at 31 December 2021, by Integrated Financial Arrangements Limited, a financial services and wealth management practice. If the other investments were included in the balance sheet on a historic cost basis, then the carrying amount would be £800,000 (2020: £Nil).

A provision for deferred tax in region of £5,331 (2020: £Nil) arising on the movement in fair value during the year has been made in these financial statements.

Deferred tax assets and liabilities are offset where the company has a legally enforceable right to do so. The following is the analysis of the deferred tax balances (after offset) for financial reporting purposes:

Deferred tax on property revaluations is not expected to reverse in the next year, or foreseeable future. the deferred tax on other investments is expected to reverse in future years as the expected tax on such investments crystallises on disposal.

At the balance sheet date, the company owed the director £1,822 (2020 : £17,799 owed to the company by its director). The director's loan account bears a commercial rate of interest of 2.5% per annum. Interest of £379 (2020: £442) was charged by the company in the period to 31 December 2021. The director repaid his loan back to the company on the 8 November 2021.

All other related party transactions that took place in the year were made in terms equivalent to these that prevail in arms length transactions and therefore are not required to be disclosed under FRS 102 section IAC 35.

In the opinion of the director the controlling party throughout the current and prior period was Mr M. J. Mahalla who is the sole director and shareholder.