A.E.Monk & Co.(London) Ltd - Accounts to registrar (filleted) - small 22.3

REGISTERED NUMBER: 00258527 (England and Wales)

A.E.MONK & CO.(LONDON) LTD

UNAUDITED FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2022

Page

Company Information

1

Balance Sheet

2

Notes to the Financial Statements

4

Chartered Accountants' Report

10

DIRECTORS:

Mrs D M Peacock

Mrs J E Allman

REGISTERED OFFICE:

7 Beechwood Drive

Cobham

Surrey

KT11 2DX

REGISTERED NUMBER:

00258527 (England and Wales)

ACCOUNTANTS:

Bessler Hendrie LLP

Chartered Accountants

Ashbourne House

The Guildway

Old Portsmouth Road

Guildford

Surrey

GU3 1LR

FIXED ASSETS

Tangible assets

5

5,931

9,515

Investments

6

554,874

548,579

Investment property

7

4,831,667

4,761,667

5,392,472

5,319,761

CURRENT ASSETS

Debtors

8

64,491

58,338

Cash at bank

34,515

60,588

99,006

118,926

CREDITORS

Amounts falling due within one year

9

(2,022,804

)

(161,072

)

NET CURRENT LIABILITIES

(1,923,798

)

(42,146

)

TOTAL ASSETS LESS CURRENT LIABILITIES

3,468,674

5,277,615

CREDITORS

Amounts falling due after more than one year

10

-

(1,814,667

)

PROVISIONS FOR LIABILITIES

12

(523,770

)

(407,409

)

NET ASSETS

2,944,904

3,055,539

CAPITAL AND RESERVES

Called up share capital

1,000

1,000

Other reserves

8,234

8,234

Non-distributable reserves

13

2,915,144

3,032,887

Retained earnings

20,526

13,418

SHAREHOLDERS' FUNDS

2,944,904

3,055,539

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

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

The financial statements were approved by the Board of Directors and authorised for issue on 19 December 2022 and were signed on its behalf by:

Mrs J E Allman - Director

1.	STATUTORY INFORMATION

A.E.Monk & Co.(London) 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.	STATEMENT OF COMPLIANCE

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.

3.	ACCOUNTING POLICIES

Basis of preparing the financial statements

The financial statements have been prepared under the historical cost convention as modified by the revaluation of certain assets.

Significant judgements and estimates

The directors have made key assumptions in the determination of the fair value of the investment properties. The valuation method is further described in 'Investment Property'.

Turnover

Turnover represents rental income under operating leases from investment properties held and other income receivable from investments excluding value added tax. Rentals receivable under operating leases are charged to income on a straight line basis over the lease term.

Tangible fixed assets

Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life.

Plant and machinery etc

-

20% on cost

Tangible fixed assets are stated at their historic cost price less accumulated depreciation. Historical cost includes expenditure that is directly attributable to bringing the asset to the location and condition necessary for use. The asset's residual values, useful lives and depreciation methods are reviewed if there is an indication of significant change since the last reporting date.

On disposal the difference between the net proceeds and carrying amount of the item sold is recognised in the profit and loss account, and included in administrative expenses.

Fixed asset investments

Investments comprise of investments in quoted equity instruments and an investment in an associate.

Investments are initially recorded at cost, being the fair value of the consideration given and including acquisition costs associated with the investment.

Investments in quoted equity instruments are measured at the best evidence of fair value at the balance sheet date, being the quoted price in an active market, with the quoted price usually being the closing bid price at the balance sheet date. Any changes in fair value are recognised in the income statement.

Investments for which fair value cannot be measured reliably are measured at cost less impairment and are assessed at the end of each accounting period. If evidence of impairment is found, an impairment loss is recognised in the income statement.

Investment property

Investment properties are held to earn rentals and/or for capital appreciation and are accounted for in accordance with Section 16 "Investment Property" of the Financial Reporting Standard 102.

Investment property is initially measured at cost, including transaction costs. Subsequently investment property is shown at the most recent valuation, being the fair value of the property. Any aggregate surplus or deficit arising from changes in fair value is recognised in the income statement and is then transferred to non distributable reserves on the balance sheet.

Financial instruments

Financial instruments are classified by directors as basic or non-basic following the conditions on FRS 102 Section 11. Basic financial instruments are initially measured at transaction price (including transaction cost) and subsequently recognised at amortised cost using the effective interest method. The company has no non-basic financial instruments.

Current tax

Current tax is the amount of corporation tax payable in respect of taxable profit for the year or prior years. Tax is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the year end.

Deferred tax

Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date where transactions or events that result in an obligation to pay more tax in the future or a right to pay less tax in the future have occurred at the balance sheet date. Timing differences are differences between the company's taxable profits and its results as stated in the financial statements.

Deferred tax is measured at the average tax rates that are expected to apply in the periods in which timing differences are expected to reverse, based on tax rates and laws that have been enacted or substantially enacted by the balance sheet date. Deferred tax is measured on a non-discounted basis.

4.	EMPLOYEES AND DIRECTORS

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

5.	TANGIBLE FIXED ASSETS

Plant and

machinery

etc

£

COST

At 1 April 2021

17,919

Additions

58

At 31 March 2022

17,977

DEPRECIATION

At 1 April 2021

8,404

Charge for year

3,642

At 31 March 2022

12,046

NET BOOK VALUE

At 31 March 2022

5,931

At 31 March 2021

9,515

6.	FIXED ASSET INVESTMENTS

Other

investments

£

COST OR VALUATION

At 1 April 2021

548,579

Additions

136,776

Disposals

(126,436

)

Revaluations

(4,045

)

At 31 March 2022

554,874

NET BOOK VALUE

At 31 March 2022

554,874

At 31 March 2021

548,579

Included within other investments are listed investments. At the balance sheet date the fair value of the listed investments was £554,834 (2021: £548,539) which is the aggregate quoted price the shares held at the balance sheet date. The change in fair value of £4,045 is included directly in the income statement. Other investments also includes unlisted investments of £40 which are held at cost.

7.	INVESTMENT PROPERTY

Total

£

FAIR VALUE

At 1 April 2021

4,761,667

Additions

65,000

Change in fair value

5,000

At 31 March 2022

4,831,667

NET BOOK VALUE

At 31 March 2022

4,831,667

At 31 March 2021

4,761,667

Fair value at 31 March 2022 is represented by:

£

Valuation in 2022

4,831,667

The company holds freehold investment property. At the year end the company owned 92.03% (2021: 90.73%) of a freehold property following a purchase of 1.3% of the property during the year. A formal valuation was undertaken by Aitchison Raffety Chartered Surveyors in November 2020 valuing the whole property at £5,000,000. The 92.03% share has been included at the value of £4,601,667 (2021: £4,536,667 for 90.73% share of the property) on an open market basis at 31 March 2022 by the directors. The directors deem the November 2020 valuation to represent an appropriate fair value at the year end and be equivalent to the open market value.

The directors have valued the other freehold property at 31 March 2022 as £230,000 (2021: £225,000); this is deemed by the directors to represent an appropriate fair value at the year end and be equivalent to the open market value.

If both the properties were sold at their open market value at the balance sheet date, there would be an estimated tax liability arising of £511,506 (2021: £388,763) at the future enacted tax rate of 25% (2021: 19%). A deferred tax liability has been recognised in respect of this at the rate of 25% (2021: 19%) and has been transferred in full to non-distributable reserves.

8.

DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2022

2021

£

£

Trade debtors

12,000

28,833

Other debtors

52,491

29,505

64,491

58,338

9.

CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2022

2021

£

£

Bank loans

1,840,667

-

Trade creditors

1,711

693

Taxation and social security

22,000

11,000

Other creditors

158,426

149,379

2,022,804

161,072

10.

CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR

2022

2021

£

£

Bank loans

-

1,814,667

11.	SECURED DEBTS

The following secured debts are included within creditors:

2022

2021

£

£

Bank loans

1,840,667

1,814,667

A bank loan of £2,000,000 from Coutts & Co. was agreed in October 2017 and is repayable in December 2022. The loan is interest only, with interest being charged at a rate of 3% above SONIA. The loan is secured by a mortgage debenture over the freehold property known as 24 Neal Street, London and a fixed and floating charge over all assets of the company. Preliminary discussions have been held with regard to refinancing the loan and there is no indication that the loan will not be refinanced on similar terms. If repayment was demanded the property value in the financial statements would more than cover the required loan repayment.

The amount of the loan recognised in the balance sheet, and for which the company is responsible for, is in proportion to the company's holding in the freehold property of 92.03% (2021: 90.73%). At the balance sheet date the amount of the loan included in the balance sheet was £1,840,667 (2021: £1,814,667).

Additionally, there is a third party first legal mortgage limited to £2,000,000 plus interest, costs and other expenses over the freehold property known as 24 Neal Street, London. This is provided by the company and the two directors, Mrs J E Allman and Mrs D M Peacock.

The loan was renewed following the year end and further detail is provided in note 16.

12.	PROVISIONS FOR LIABILITIES

2022

2021

£

£

Deferred tax

523,770

407,409

Deferred

tax

£

Balance at 1 April 2021

407,409

Change in fair value of

investment portfolio

(5,702

)

Change in fair value of

investment property

950

Excess of depreciation

over capital allowances

(680

)

Change in future enacted

tax rate

121,793

Balance at 31 March 2022

523,770

At the balance sheet date the deferred tax liability consisted of the following:

2022

2021

£

£

Accelerated capital allowances

1,120

1,800

Investment portfolio

11,144

16,846

Investment property

511,506

388,763

523,770

407,409

13.

RESERVES

Non-distributable

reserves

£

At 1 April 2021

3,032,887

Transfer - change in fair value

5,000

Transfer - deferred tax on change in fair value

(950

)

Transfer - change in future enacted tax rate

(121,793

)

At 31 March 2022

2,915,144

The non-distributable reserves represent fair value adjustments arising on investment properties which have previously been taken to the income statement in the period they arose. The carrying value is after a provision has been made for deferred tax where appropriate.

14.	POST BALANCE SHEET EVENTS

Following the year end the bank loan of £2,000,000 with Coutts & Co. was renewed for a term of 5 years commencing in November 2022 with interest being charged at 2.7% above SONIA.

The following reproduces the text of the report prepared for the directors in respect of the company's annual unaudited financial statements. In accordance with the Companies Act 2006, the company is only required to file a Balance Sheet. Readers are cautioned that the Income Statement and certain other primary statements and the Report of the Directors are not required to be filed with the Registrar of Companies.

In order to assist you to fulfil your duties under the Companies Act 2006, we have prepared for your approval the financial statements of A.E.Monk & Co.(London) Ltd for the year ended 31 March 2022 which comprise the Income Statement, Balance Sheet, Statement of Changes in Equity and the related notes from the company's accounting records and from information and explanations you have given us.

As a practising member firm of the Institute of Chartered Accountants in England and Wales (ICAEW), we are subject to its ethical and other professional requirements which are detailed within the ICAEW's regulations and guidance at http://www.icaew.com/en/membership/regulations-standards-and-guidance.

This report is made solely to the Board of Directors of A.E.Monk & Co.(London) Ltd, as a body, in accordance with our terms of engagement. Our work has been undertaken solely to prepare for your approval the financial statements of A.E.Monk & Co.(London) Ltd and state those matters that we have agreed to state to the Board of Directors of A.E.Monk & Co.(London) Ltd, as a body, in this report in accordance with ICAEW Technical Release 07/16AAF. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than A.E.Monk & Co.(London) Ltd and its Board of Directors, as a body, for our work or for this report.

It is your duty to ensure that A.E.Monk & Co.(London) Ltd has kept adequate accounting records and to prepare statutory financial statements that give a true and fair view of the assets, liabilities, financial position and loss of A.E.Monk & Co.(London) Ltd. You consider that A.E.Monk & Co.(London) Ltd is exempt from the statutory audit requirement for the year.

We have not been instructed to carry out an audit or a review of the financial statements of A.E.Monk & Co.(London) Ltd. For this reason, we have not verified the accuracy or completeness of the accounting records or information and explanations you have given to us and we do not, therefore, express any opinion on the statutory financial statements.

This report should not be regarded as suitable to be used or relied on by any other party wishing to acquire any rights against Bessler Hendrie LLP for any purpose or in any context. Any party, other than the directors, who obtains access to this report or a copy and chooses to rely on this report (or any part of it) will do so at its own risk.

Bessler Hendrie LLP

Chartered Accountants

Ashbourne House

The Guildway

Old Portsmouth Road

Guildford

Surrey

GU3 1LR

19 December 2022