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 2022

FOR

M G PROPERTY UK LTD.

Page

Company Information

1

Balance Sheet

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

4

-

-

Investment property

5

2,035,000

2,035,000

2,035,000

2,035,000

CURRENT ASSETS

Debtors

6

135,161

203,329

Cash at bank

328,440

358,854

463,601

562,183

CREDITORS

Amounts falling due within one year

7

126,046

168,180

NET CURRENT ASSETS

337,555

394,003

TOTAL ASSETS LESS CURRENT LIABILITIES

2,372,555

2,429,003

CREDITORS

Amounts falling due after more than one year

8

(569,865

)

(594,146

)

PROVISIONS FOR LIABILITIES

(234,048

)

(234,048

)

NET ASSETS

1,568,642

1,600,809

CAPITAL AND RESERVES

Called up share capital

14,259

14,259

Share premium

4,423

4,423

Revaluation reserve

9

1,341,186

1,341,186

Retained earnings

208,774

240,941

1,568,642

1,600,809

The company is entitled to exemption from audit under Section 477 of the Companies Act 2006 for the year ended 31 January 2022.

The members have not required the company to obtain an audit of its financial statements for the year ended 31 January 2022 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 Income and Retained Earnings has not been delivered.

The financial statements were approved by the Board of Directors and authorised for issue on 30 October 2022 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.

The company's bank loan is a basic financial instrument and is measured at amortised cost using the effective interest rate method.

Taxation

Taxation for the year comprises current and deferred tax. Tax is recognised in the Statement of Income and Retained Earnings, 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 balance sheet date.

Deferred tax

Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet 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.	EMPLOYEES AND DIRECTORS

The average number of employees during the year was 1 (2021 - 1 ) .

4.	TANGIBLE FIXED ASSETS

Fixtures

and

Motor

fittings

vehicles

Totals

£

£

£

COST

At 1 February 2021

and 31 January 2022

27,688

21,240

48,928

DEPRECIATION

At 1 February 2021

and 31 January 2022

27,688

21,240

48,928

NET BOOK VALUE

At 31 January 2022

-

-

-

At 31 January 2021

-

-

-

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

Motor

vehicles

£

COST

At 1 February 2021

and 31 January 2022

21,240

DEPRECIATION

At 1 February 2021

and 31 January 2022

21,240

NET BOOK VALUE

At 31 January 2022

-

At 31 January 2021

-

5.	INVESTMENT PROPERTY

Total

£

FAIR VALUE

At 1 February 2021

and 31 January 2022

2,035,000

NET BOOK VALUE

At 31 January 2022

2,035,000

At 31 January 2021

2,035,000

Investment property

The company's freehold property was valued by the directors at 31 January 2022 at open market value of £2,035,000. It is the company's policy to obtain a professional valuation of the property periodically, when the directors believe that the fair value of the property has materially changed. 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 2022 was £470,702 (2021 - £470,702).

6.

DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2022

2021

£

£

Trade debtors

5,349

25,212

Amounts owed by group undertakings

1,574

-

Other debtors

120,652

169,327

Payments made on account

-

1,806

Directors' loan accounts

6,200

6,200

Prepayments and accrued income

1,386

784

135,161

203,329

7.

CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2022

2021

£

£

Bank loans and overdrafts

26,783

27,320

Hire purchase contracts

1,803

4,114

Trade creditors

353

5,934

Amounts owed to group undertakings

-

1,151

Tax

1,425

14,825

VAT

7,265

7,952

Other creditors

54,721

67,657

Accruals and deferred income

33,696

39,227

126,046

168,180

8.

CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR

2022

2021

£

£

Bank loans - 2-5 years

119,192

119,345

Bank loans more 5 yr by instal

132,100

158,715

Hire purchase contracts

-

1,803

Other creditors

318,573

314,283

569,865

594,146

Amounts falling due in more than five years:

Repayable by instalments

Bank loans more 5 yr by instal

132,100

158,715

As at 31 January 2022, £278,075 is outstanding for repayment of which £132,100 (2021 - £158,715) is due for repayment after 5 years based on an effective rate of interest of 5.64%. The loan is due to expire in August 2030.

9.

RESERVES

Revaluation

reserve

£

At 1 February 2021

and 31 January 2022

1,341,186

10.	DIRECTORS' ADVANCES, CREDITS AND GUARANTEES

The following advances and credits to directors subsisted during the years ended 31 January 2022 and 31 January 2021:

2022

2021

£

£

Mrs S K Coleman

Balance outstanding at start of year

200

-

Amounts advanced

-

200

Amounts repaid

-

-

Amounts written off

-

-

Amounts waived

-

-

Balance outstanding at end of year

200

200

Mr M P Coleman

Balance outstanding at start of year

6,000

6,000

Amounts advanced

6,000

6,000

Amounts repaid

(6,000

)

(6,000

)

Amounts written off

-

-

Amounts waived

-

-

Balance outstanding at end of year

6,000

6,000

11.	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 2022, the company was owed £1,574 (2021 - the company owed £1,151 to Icehouse Trading Company Limited) from its parent company Icehouse Trading Company Limited.

The company owed at 31 January 2022, £180,476 (2021 - £185,331) 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 2022 interest of £138,097 (2021 - £128,952) is accrued on the loan. Management charges of £2,000 (2021 - £1,500) were charged to Magdalen & Cross Limited in the year for management services supplied.

At the year end the company was owed £117,951 (2021 - £166,951) from MG Property US LLC, a company under control of Mr B and Mrs S Coleman. Management charges of £52,500 (2020 - £47,500) were charged from MG Property US LLC in the year for management services supplied.

12.	ULTIMATE CONTROLLING PARTY

The ultimate controlling party is Icehouse Trading Company Limited.