Middlesex Textiles (UK) Limited - Period Ending 2022-12-31

Middlesex Textiles (UK) Limited

Contents

Balance Sheet	1 to 2
Statement of Changes in Equity	3
Notes to the Unaudited Financial Statements	4 to 10

Middlesex Textiles (UK) Limited

(Registration number: 03238037)
Balance Sheet as at 31 December 2022

	Note	2022 £	2021 £
Fixed assets
Tangible assets	5	12,210	9,994
Investment property	6	3,959,258	3,720,930
Other financial assets	7	750,647	829,282
		4,722,115	4,560,206
Current assets
Debtors	8	11,778	203,332
Cash at bank and in hand		1,551,096	1,311,035
		1,562,874	1,514,367
Creditors: Amounts falling due within one year	9	(9,497)	(8,448)
Net current assets		1,553,377	1,505,919
Total assets less current liabilities		6,275,492	6,066,125
Provisions for liabilities		(589,372)	(561,331)
Net assets		5,686,120	5,504,794
Capital and reserves
Called up share capital	12	680	680
Capital redemption reserve		320	320
Revaluation reserve		2,849,631	2,657,303
Retained earnings		2,835,489	2,846,491
Shareholders' funds		5,686,120	5,504,794

For the financial year ending 31 December 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 accounts for the year in question in accordance with section 476; and
•	The directors acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and the preparation of accounts.

These financial statements have been prepared in accordance with the special provisions relating to companies subject to the small companies regime within Part 15 of the Companies Act 2006.

These financial statements have been delivered in accordance with the provisions applicable to companies subject to the small companies regime. As permitted by section 444 (5A) of the Companies Act 2006, the directors have not delivered to the registrar a copy of the Profit and Loss Account.

Approved and authorised by the Board on 27 September 2023 and signed on its behalf by:
 

Middlesex Textiles (UK) Limited

(Registration number: 03238037)
Balance Sheet as at 31 December 2022

......................................... Mr D L Joseph Company secretary and director

Middlesex Textiles (UK) Limited

Notes to the Unaudited Financial Statements for the Year Ended 31 December 2022

1	General information

The company is a private company limited by share capital, incorporated in England and Wales.

The address of its registered office is: 3rd Floor, 166 College Road, Harrow, Middlesex, HA1 1BH, United Kingdom.

These financial statements were authorised for issue by the Board on 27 September 2023.

2	Accounting policies

Going concern

The directors believe that the company is well placed to manage its business risks successfully. Accordingly they have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future, thus may continue to adopt the going concern basis of accounting in preparing the financial statements.

Turnover and revenue recognition

Turnover is measured at fair value of the consideration received or receivable from the investment in and letting of land and property and other investment activities, which are exempt from VAT.

Tangible assets

Tangible assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.

The gain or loss 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.

Depreciation

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:

Asset class	Depreciation method and rate
Plant and Machinery	10% reducing balance method

Investment property

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 attributable expenditure. Subsequently it is measured at fair value at the reporting end date. The surplus or defecit on revaluation is recognised in a separate non-distributable fair value reserve.

Where fair value cannot be achieved without undue cost or effort, investment property is accounted for as property under tangible fixed assets.

Fixed asset investments

Fixed asset investments are initially measured at cost and subsequently measured at cost or valuation, net of any impairment losses. Any fixed asset investments carried at revalued amounts are recorded at their fair value at the date of the valuation less any subsequent impairment losses. The surplus or defecit on revaluation is recognised in profit or loss.

Impairment of fixed assets

Middlesex Textiles (UK) Limited

Notes to the Unaudited Financial Statements for the Year Ended 31 December 2022

At each reporting 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 impairnent loss. If any such indication existsm 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.

If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.

Cash and cash equivalents

Cash and cash equivalents are basic financiaal 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.

Tax

The taxation expense represents the aggregate amount of current and deferred tax recognised in the reporting period. Tax is recognised in profit or loss, except to the extent it relates to items reognised in other comprehensive income or directly in equity. In this case, tax is recognised in other comprehensive income or directly in equity, respectively.

Current tax is recognised on taxable profit for current and past periods. Current tax is measured at the amounts of tax expected to pay or recover using tax rates and laws that have been enacted or substantively enacted at the reporting date.

Deffered 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 timing difference.

Foreign Exchange

Monetary assets and liabilities denominated in foreign currencies are translated into sterling at the rates of exchange ruling at the balance sheet date. Transactions in foreign currencies are recorded at the rate ruling at the date of the transaction. All differences are taken to profit or loss.

Judgements and key sources of estimation uncertainty

In the application of the company's accounting policies, the director is required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historicak experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

The estimates and underlying assumptionhs are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

Statement of compliance

These financial statements have been prepared in accordance with Financial Reporting Standard 102 Section 1A smaller entities - 'The Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland' and the Companies Act 2006 (as applicable to companies subject to the small companies' regime).

Middlesex Textiles (UK) Limited

Notes to the Unaudited Financial Statements for the Year Ended 31 December 2022

Basis of preparation

These financial statements have been prepared using the historical cost convention except that as disclosed in the accounting policies certain items are shown at fair value.

These financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statement are rounded to the nearest £.

3	Staff numbers

The average number of persons employed by the company (including directors) during the year, was 0 (2021 - 0).

4

Taxation

Tax charged/(credited) in the profit and loss account

	2022 £	2021 £
Current taxation
UK corporation tax	13,658	11,723
Deferred taxation
Arising from origination and reversal of timing differences	(17,959)	5,331
Tax (receipt)/expense in the income statement	(4,301)	17,054

In addition to the amount charged to the profit and loss account, the following amounts relating to tax have been recognised directly in other comprehensive income:

Deferred tax arising on revaluation of property: £46,000 (2021: £168,000)

The applicable rate of UK Corporation Tax was 19% (2021: 19%).

Middlesex Textiles (UK) Limited

Notes to the Unaudited Financial Statements for the Year Ended 31 December 2022

5	Tangible assets

	Other tangible assets  £	Total £
Cost or valuation
At 1 January 2022	35,725	35,725
Additions	3,215	3,215
At 31 December 2022	38,940	38,940
Depreciation
At 1 January 2022	25,731	25,731
Charge for the year	999	999
At 31 December 2022	26,730	26,730
Carrying amount
At 31 December 2022	12,210	12,210
At 31 December 2021	9,994	9,994

6	Investment properties

	2022 £
At 1 January at fair value	3,720,930
Fair value adjustments	238,328
At 31 December at fair value	3,959,258

The freehold investment properties in Eilat, Israel were revalued during the year by £238,328 to £3,959,258 (16,900,000 ILS) by Ilan Bar-Hanin, a local property management firm who are independent of the company and have experience of valuing similar properties. The valuation was made on the basis of open market for existing use. The directors are not aware of any material change in value since the date of the valuation and consider the valuation of 31 December 2022 not to be materially different from the market value. If the investment properties were included in the balance sheet on an historic cost basis, then the carrying amount would be £507,627 (2021: £507,627).

A provision for deffered tax in the region of £602,000 arising on the revaluation has been made in these financial statements.

Middlesex Textiles (UK) Limited

Notes to the Unaudited Financial Statements for the Year Ended 31 December 2022

7	Other financial assets (current and non-current)

Other financial assets represent an investment in a Transact portfolio dealing mainly in bonds and other securities.

	Financial assets at fair value through profit and loss £	Total £
Non-current financial assets
Cost or valuation
At 1 January 2022	829,282	829,282
Fair value adjustments	(187,997)	(187,997)
Additions	588,298	588,298
Disposals	(478,936)	(478,936)
At 31 December 2022	750,647	750,647
Impairment
Carrying amount
At 31 December 2022	750,647	750,647

Other financial assets were valued at their open market price as at 31 December 2022 by Integrated Financial Arrangements Limited, a financial services and wealth management practice. If the other investments were included in the balance sheet on a historic cost basis, then the carrying amount would be £800,000 (2021: £800,000).

A provision for a deferred tax asset in the region of £17,959 (2021: £5,331 liability) arising on the movement in fair value during the year has been made in these financial statements.

8

Debtors

Current	2022 £	2021 £
Other debtors	11,778	203,332

Middlesex Textiles (UK) Limited

Notes to the Unaudited Financial Statements for the Year Ended 31 December 2022

9

Creditors

Creditors: amounts falling due within one year

	2022 £	2021 £
Due within one year
Taxation and social security	380	1,196
Accruals and deferred income	6,930	4,944
Other creditors	2,187	2,308
	9,497	8,448

10

Reserves

The changes to each component of equity resulting from items of other comprehensive income for the current year were as follows:

	Revaluation reserve £	Total £
Surplus/deficit on property, plant and equipment revaluation	192,328	192,328

The changes to each component of equity resulting from items of other comprehensive income for the prior year were as follows:

	Revaluation reserve £	Total £
Surplus/deficit on property, plant and equipment revaluation	716,670	716,670

11

Dividends

Interim dividends paid

		2022 £		2021 £
Interim dividend of 2.94 per each Ordinary Shares		2,000		2,000

The directors do not propose a final dividend.

Middlesex Textiles (UK) Limited

Notes to the Unaudited Financial Statements for the Year Ended 31 December 2022

Deferred tax

Deferred tax assets and liabilities

2022	Liability £
Property revaluations	602,000
Other investments revalued	(12,628)
	589,372

2021	Liability £
Property revaluations	556,000
Other investments revalued	5,331
	561,331

Deferred tax on property revaluations is not expected to reverse in the next year, or foreseeable future. The deferred tax on investments is expected to reverse in future years as the expected tax on such investments crystalises on disposal.

12	Called up share capital

Allotted, called up and fully paid shares

	2022		2021
	No.	£	No.	£
Ordinary shares of £1 each	680	680	680	680

13	Related party transactions

At the balance sheet date, the company owed the directors £1,821.70 (2021: £1,821.70).

These loans are unsecured, interest free and repayable on demand.

13.1	Controlling party

In the opinion of the director, the controlling party throughout the current period was Mr D. L. Joseph who is a director and the sole shareholder. The controlling party throughout the previous period and up to 31/12/2022 was Mr M. J. Mahalla who was the sole director and shareholder.