MALOU_INVESTMENTS_(UK)_LI - Accounts

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

These financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime.

Malou Investments (UK) Limited is a private company limited by shares incorporated in England and Wales. The registered office is Vanguard Works, Coldhurst Street, Oldham, Lancashire, OL1 2DN.

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 for the previous period were unaudited.

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 the historical cost convention, modified to include investment properties at fair value. The principal accounting policies adopted are set out below.

These financial statements for the year ended 30 June 2022 are the first financial statements of Malou Investments (UK) Limited prepared in accordance with FRS 102, The Financial Reporting Standard applicable in the UK and Republic of Ireland. The date of transition to FRS 102 was 1 July 2020. The reported financial position and financial performance for the previous period are not affected by the transition to FRS 102.

The directors have adjusted the financial statements to apply an appropriate accounting policy in respect to ageing of deposits held by the company on behalf of tenants. In the prior year these deposits were classified as liabilities falling due within one year however, after a review of the terms of the leases, the directors have identified that it is more appropriate to include these as liabilities falling due after more than one year. The necessary adjustments have been applied retrospectively by way of prior year adjustment in accordance with FRS102. Details of the impact of the prior year adjustment are disclosed in note 10 to the financial statements.

As at true30 June 2022 the company has net current liabilities of £654,127. Included within liabilities due within one year is an amount of £3,637,053 owed to a related party. Written confirmation has been received, not to demand payment of these amounts until such time that all third party creditors have been satisfactorily settled. Taking this into account the directors consider it appropriate to prepare these financial statements on a going concern basis.

Turnover, which is shown net of VAT, consists of rental income which is brought into account on a receivable basis, apportionment being made for payments in advance.

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. Changes in fair value are 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.

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.

Equity instruments issued by the company are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.

The tax expense represents the sum of the tax currently payable and deferred tax.

The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.

Deferred tax liabilities are generally recognised for all timing differences and 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. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.

The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset when the company has a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.

Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation in the period are included in profit or loss.

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

Investment property comprise a portfolio of commercial properties. The fair value of the investment property has been arrived at on the basis of a valuations carried out in November 2021. The valuations have been carried out by Matthews & Goodman, who are not connected with the company. The valuations have been made on an open market value basis by reference to market evidence of transaction prices for similar properties. The directors are of the opinion that there has been no significant movements in the valuation of the properties between the valuation date and the year end.

As the income statement has been omitted from the filing copy of the financial statements, the following information in relation to the audit report on the statutory financial statements is provided in accordance with s444(5B) of the Companies Act 2006:

The auditor's report was unqualified.

Amounts owed by group undertakings are interest free, have no fixed date of repayment and are repayable upon demand.

Included in other creditors falling due within one year is a balance of £3,637,053 which is due to a trust of in which one of the directors is a beneficiary.

The company has taken advantage of the reduced disclosure exemption available under Financial Reporting Standard 102 relating to the disclosure of related party transactions between wholly owned group companies.

During the previous year, the deposits held in respect of the current tenants totalling £62,500 had been shown as liabilities falling due in less than one year. The directors reviewed the terms of the leases, in particular the break clauses and expiry dates, and consider that the liabilities should be more appropriately be disclosed as falling due after more than one year.

The effect of the reclassification has been applied retrospectively by way of a prior year adjustment. Other creditors, included in Creditors: amounts falling due with one year have been restated from £3,542,909 as previously stated, to £3,480,409 and Other creditors included in Creditors: amounts falling due after more than one year have been restated from nil, as previously stated, to £62,500. Net current liabilities have been restated from £880,410, as previously stated, to £817,910 and total assets less currently liabilities restated from £1,564,590, as previously stated, to £1,627,090.