| Meadownet Limited |
| Notes to the Accounts |
| for the year ended 31 December 2021 |
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|
| 1 |
Accounting policies |
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Basis of preparation |
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The accounts have been prepared under the historical cost convention and in accordance with FRS 102, The Financial Reporting Standard applicable in the UK and Republic of Ireland (as applied to small entities by section 1A of the standard).
The directors have considered the impact of Covid 19 and believe that the company is in a position to minimise any impact on the business as they consider the company to be well positioned to continue to trade profitably and are satisfied with the trading and financial position after the year end. |
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Turnover |
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Turnover is measured at the fair value of the consideration received or receivable, net of discounts and value added taxes. Turnover includes revenue earned from rentals and other associated services provided to tenants. |
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Tangible fixed assets |
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Tangible fixed assets are measured at cost less accumulative depreciation and any accumulative impairment losses. Depreciation is provided on all tangible fixed assets, other than freehold land, at rates calculated to write off the cost, less estimated residual value, of each asset evenly over its expected useful life, as follows: |
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Fixtures and fittings |
10% - 20% reducing balance |
|
Motor vehicles |
25% reducing balance |
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Investment Property |
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Investment property is included at fair value. Gains are recognised in the profit and loss account. Deferred tax is provided on these gains at the rate expected to apply when the property is sold. No depreciation is provided on the investment property. |
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Debtors |
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Short term debtors are measured at transaction price (which is usually the invoice price), less any impairment losses for bad and doubtful debts. Loans and other financial assets are initially recognised at transaction price including any transaction costs and subsequently measured at amortised cost determined using the effective interest method, less any impairment losses for bad and doubtful debts. |
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Creditors |
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Short term creditors are measured at transaction price (which is usually the invoice price). Loans and other financial liabilities are initially recognised at transaction price net of any transaction costs and subsequently measured at amortised cost determined using the effective interest method. |
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Taxation |
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A current tax liability is recognised for the tax payable on the taxable profit of the current and past periods. A current tax asset is recognised in respect of a tax loss that can be carried back to recover tax paid in a previous period. Deferred tax is recognised in respect of all timing differences between the recognition of income and expenses in the financial statements and their inclusion in tax assessments. 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. Deferred tax is measured using the tax rates and laws that have been enacted or substantively enacted by the reporting date and that are expected to apply to the reversal of the timing difference, except for revalued land and investment property where the tax rate that applies to the sale of the asset is used. Current and deferred tax assets and liabilities are not discounted. |
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Provisions |
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Provisions (ie liabilities of uncertain timing or amount) are recognised when there is an obligation at the reporting date as a result of a past event, it is probable that economic benefit will be transferred to settle the obligation and the amount of the obligation can be estimated reliably. |
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Leased assets |
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A lease is classified as a finance lease if it transfers substantially all the risks and rewards incidental to ownership. All other leases are classified as operating leases. The rights of use and obligations under finance leases are initially recognised as assets and liabilities at amounts equal to the fair value of the leased assets or, if lower, the present value of the minimum lease payments. Minimum lease payments are apportioned between the finance charge and the reduction in the outstanding liability using the effective interest rate method. The finance charge is allocated to each period during the lease so as to produce a constant periodic rate of interest on the remaining balance of the liability. Leased assets are depreciated in accordance with the company's policy for tangible fixed assets. If there is no reasonable certainty that ownership will be obtained at the end of the lease term, the asset is depreciated over the lower of the lease term and its useful life. Operating lease payments are recognised as an expense on a straight line basis over the lease term. |
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| 2 |
Audit information |
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The audit report is unqualified. |
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Senior statutory auditor: |
Geoffrey Little FCA,CTA |
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Firm: |
Bell Anderson Limited |
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Date of audit report: |
2 August 2022 |
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| 3 |
Employees |
2021 |
|
2020 |
| Number |
Number |
|
|
Average number of persons employed by the company |
2 |
|
2 |
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| 4 |
Tangible fixed assets |
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Land and buildings |
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Plant and machinery etc |
|
Motor vehicles |
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Total |
| £ |
£ |
£ |
£ |
|
Cost |
|
At 1 January 2021 |
1,060,691 |
|
51,411 |
|
21,250 |
|
1,133,352 |
|
Additions |
- |
|
28,315 |
|
154,588 |
|
182,903 |
|
Disposals |
- |
|
- |
|
(90,850) |
|
(90,850) |
|
At 31 December 2021 |
1,060,691 |
|
79,726 |
|
84,988 |
|
1,225,405 |
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Depreciation |
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At 1 January 2021 |
- |
|
48,163 |
|
7,141 |
|
55,304 |
|
Charge for the year |
- |
|
2,215 |
|
6,400 |
|
8,615 |
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On disposals |
- |
|
- |
|
(7,141) |
|
(7,141) |
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At 31 December 2021 |
- |
|
50,378 |
|
6,400 |
|
56,778 |
|
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|
|
|
|
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Net book value |
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At 31 December 2021 |
1,060,691 |
|
29,348 |
|
78,588 |
|
1,168,627 |
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At 31 December 2020 |
1,060,691 |
|
3,248 |
|
14,109 |
|
1,078,048 |
|
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Freehold land and buildings: |
2021 |
|
2020 |
| £ |
£ |
|
Historical cost |
763,265 |
|
763,265 |
|
Cumulative depreciation based on historical cost |
- |
|
- |
|
|
|
|
|
|
763,265 |
|
763,265 |
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| 5 |
Debtors |
2021 |
|
2020 |
| £ |
£ |
|
|
Trade debtors |
2,058 |
|
1,054 |
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Other debtors |
1,169 |
|
1,169 |
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|
3,227 |
|
2,223 |
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| 6 |
Creditors: amounts falling due within one year |
2021 |
|
2020 |
| £ |
£ |
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Bank loans |
56,400 |
|
56,400 |
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Obligations under finance lease and hire purchase contracts |
9,901 |
|
- |
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Trade creditors |
1,085 |
|
7,910 |
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Taxation and social security costs |
12,050 |
|
24,420 |
|
Other creditors |
32,325 |
|
29,863 |
|
|
|
|
|
|
111,761 |
|
118,593 |
|
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| 7 |
Creditors: amounts falling due after one year |
2021 |
|
2020 |
| £ |
£ |
|
|
Bank loans |
27,261 |
|
81,653 |
|
Obligations under finance lease and hire purchase contracts |
32,707 |
|
- |
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|
|
|
|
|
59,968 |
|
81,653 |
|
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| 8 |
Loans |
2021 |
|
2020 |
| £ |
£ |
|
Creditors include: |
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Secured bank loans |
83,661 |
|
138,053 |
|
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The bank loan is secured over the property at 1 Aston House,Redburn Road, Westerhope. |
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| 9 |
Revaluation reserve |
2021 |
|
2020 |
| £ |
£ |
|
|
At 1 January 2021 |
246,802 |
|
246,802 |
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At 31 December 2021 |
246,802 |
|
246,802 |
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| 10 |
Related party transactions |
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The management of the property is carried by Outlet Properties Limited, a company under common control. All transactions are carried out at arms' length and total payments in the year amounts to £15,000. (2020: £15,000). |
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| 11 |
Controlling party |
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The company is controlled by the directors |
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| 12 |
Other information |
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Meadownet Limited is a private company limited by shares and incorporated in England. Its registered office is: |
|
1 Aston House, Redburn Road |
|
Westerhope |
|
Newcastle upon Tyne |
|
Tyne & Wear |
|
NE5 1NB |
