Pencil Properties Limited 30/06/2022 iXBRL

Pencil Properties Limited 30/06/2022 iXBRL

PENCIL PROPERTIES LIMITED - Company Information

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Company registration number: 07672920
Pencil Properties Limited
Unaudited filleted financial statements
30 June 2022
Pencil Properties Limited
Contents
Statement of financial position
Notes to the financial statements
Pencil Properties Limited
Statement of financial position
30 June 2022
2022 2021
Note £ £ £ £
Fixed assets
Tangible assets 5 468,570 453,845
_______ _______
468,570 453,845
Current assets
Debtors 6 20,457 6,152
Cash at bank and in hand 955 11,188
_______ _______
21,412 17,340
Creditors: amounts falling due
within one year 7 ( 109,081) ( 93,670)
_______ _______
Net current liabilities ( 87,669) ( 76,330)
_______ _______
Total assets less current liabilities 380,901 377,515
Creditors: amounts falling due
after more than one year 8 ( 170,086) ( 178,039)
Provisions for liabilities ( 33,666) ( 29,240)
_______ _______
Net assets 177,149 170,236
_______ _______
Capital and reserves
Called up share capital 1,000 1,000
Profit and loss account 176,149 169,236
_______ _______
Shareholders funds 177,149 170,236
_______ _______
For the year ending 30 June 2022 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 financial statements for the year in question in accordance with section 476;
- The directors acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and the preparation of financial statements.
These financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies' regime and in accordance with Section 1A of FRS 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'.
In accordance with section 444 of the Companies Act 2006, the statement of income and retained earnings has not been delivered.
These financial statements were approved by the board of directors and authorised for issue on 22 March 2023 , and are signed on behalf of the board by:
Mr Gavin Wild
Director
Company registration number: 07672920
Pencil Properties Limited
Notes to the financial statements
Year ended 30 June 2022
1. General information
The company is a private company limited by shares, registered in England and Wales. The address of the registered office is Unit 9 Bridge Mill, Rochdale Road, Ramsbottom, Bury, BL0 0RE. The principal activities of the company are property development and asset management.
2. Statement of compliance
The principal activities of the company during the year were property development and asset management. Its principal place of business is Unit 9 Bridge Mill, Rochdale Road, Ramsbottom, Bury, BL0 0RE. These financial statements have been prepared in compliance with the provisions of Section 1A of FRS 102, 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'. There were no material departures from that standard.
3. Accounting policies
Basis of preparation
The financial statements have been prepared on the historical cost basis, as modified by the revaluation of certain financial assets and liabilities and investment properties measured at fair value through profit or loss.
The financial statements are prepared in sterling, which is the functional currency of the entity.
Turnover
Turnover is measured at the fair value of the consideration received or receivable for goods supplied and services rendered, net of discounts and Value Added Tax.
Revenue from the sale of goods is recognised when the significant risks and rewards of ownership have transferred to the buyer (usually on despatch of the goods); the amount of revenue can be measured reliably; it is probable that the associated economic benefits will flow to the entity; and the costs incurred or to be incurred in respect of the transactions can be measured reliably.
Taxation
The taxation expense represents the aggregate amount of current and deferred tax recognised in the reporting period. Tax is recognised in the statement of comprehensive income, except to the extent that it relates to items recognised in other comprehensive income or directly in capital and reserves. In this case, tax is recognised in other comprehensive income or directly in capital and reserves, respectively. Current tax is recognised on taxable profit for the current and past periods. Current tax is measured at the amounts of tax expected to pay or recover using the 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.
Operating leases
Lease payments are recognised as an expense over the lease term on a straight-line basis. The aggregate benefit of lease incentives is recognised as a reduction to expense over the lease term, on a straight-line basis.
Tangible assets
tangible assets are initially recorded at cost, and are 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 capital and reserves, 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 capital and reserves in respect of that asset. Where a revaluation decrease exceeds the accumulated revaluation gains accumulated in capital and reserves 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:
Freehold property - The freehold investment property is not depreciated.
Motor vehicles - 25 % reducing balance
If there is an indication that there has been a significant change in depreciation rate, useful life or residual value of tangible assets, the depreciation is revised prospectively to reflect the new estimates.
Investment property
Freehold land and buildings are investment properties. They are not depreciated and are stated at what the directors believe to be fair value.
Impairment
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. 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 are largely independent of the cash inflows from other assets or groups of assets.
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 in finance costs in profit or loss in the period it arises.
Financial instruments
A financial asset or a financial liability is recognised only when the company becomes a party to the contractual provisions of the instrument. Basic financial instruments are initially recognised at the transaction price, unless the arrangement constitutes a financing transaction, where it is recognised at the present value of the future payments discounted at a market rate of interest for a similar debt instrument. Debt instruments are subsequently measured at amortised cost. Where investments in non-convertible preference shares and non-puttable ordinary shares or preference shares are publicly traded or their fair value can otherwise be measured reliably, the investment is subsequently measured at fair value with changes in fair value recognised in profit or loss. All other such investments are subsequently measured at cost less impairment. Other financial instruments, including derivatives, are initially recognised at fair value, unless payment for an asset is deferred beyond normal business terms or financed at a rate of interest that is not a market rate, in which case the asset is measured at the present value of the future payments discounted at a market rate of interest for a similar debt instrument. Other financial instruments are subsequently measured at fair value, with any changes recognised in profit or loss, with the exception of hedging instruments in a designated hedging relationship.
Financial assets that are measured at cost or amortised cost are reviewed for objective evidence of impairment at the end of each reporting date. If there is objective evidence of impairment, an impairment loss is recognised in profit or loss immediately. For all equity instruments regardless of significance, and other financial assets that are individually significant, these are assessed individually for impairment. Other financial assets or either assessed individually or grouped on the basis of similar credit risk characteristics. Any reversals of impairment are recognised in profit or loss immediately, to the extent that the reversal does not result in a carrying amount of the financial asset that exceeds what the carrying amount would have been had the impairment not previously been recognised.
4. Employee numbers
The average number of persons employed by the company during the year amounted to 2 (2021: 2 ).
5. Tangible assets
Freehold property Motor vehicles Total
£ £ £
Cost
At 1 July 2021 311,300 228,057 539,357
Additions - 67,148 67,148
_______ _______ _______
At 30 June 2022 311,300 295,205 606,505
_______ _______ _______
Depreciation
At 1 July 2021 - 85,512 85,512
Charge for the year - 52,423 52,423
_______ _______ _______
At 30 June 2022 - 137,935 137,935
_______ _______ _______
Carrying amount
At 30 June 2022 311,300 157,270 468,570
_______ _______ _______
At 30 June 2021 311,300 142,545 453,845
_______ _______ _______
Investment property
The freehold land and buildings are held for investment. They have been valued by the directors at what they consider to be "fair value" based on the valuation of other similar properties in the same area. The original cost of the land and buildings is £168,875 (2021:£168,875).
6. Debtors
2022 2021
£ £
Trade debtors 19,629 5,324
Other debtors 828 828
_______ _______
20,457 6,152
_______ _______
7. Creditors: amounts falling due within one year
2022 2021
£ £
Bank loans and overdrafts 1,932 1,260
Trade creditors - 471
Social security and other taxes 4,562 13,110
Other creditors 102,587 78,829
_______ _______
109,081 93,670
_______ _______
Hire purchase creditors amounting to a total of £55,221 (2021: £50,399) due within one year and £79, 053 (2021: £85,074) due after more than one year, are secured on the assets financed.
8. Creditors: amounts falling due after more than one year
2022 2021
£ £
Bank loans and overdrafts 6,808 8,740
Other creditors 163,278 169,299
_______ _______
170,086 178,039
_______ _______
Included in other creditors is an interest only mortgage which is secured on the freehold property amounting to £84,225 (2021:£84,225).
9. Operating leases
The company as lessee
The total future minimum lease payments under non-cancellable operating leases are as follows:
£ £
Not later than 1 year 1,656 -
Later than 1 year and not later than 5 years - 4,968
_______ _______
10. Related party transactions
During the year the company let vehicles to a company controlled by the directors, Veny Limited, charging £82,604 (2021:£86,185) which is believed to be a fair market rate.