The Property Institute - Accounts to registrar (filleted) - small 23.2.5

REGISTERED NUMBER: 13753239 (England and Wales)

THE PROPERTY INSTITUTE

FINANCIAL STATEMENTS

FOR THE PERIOD

18TH NOVEMBER 2021 TO 31ST MARCH 2023

Page

Company Information

1

Balance Sheet

2

Notes to the Financial Statements

3

to

7

DIRECTORS:

R B Benson

A Bulmer

E Gray

M R Jacobs

F Keen

S M Massey

J K Parmar

D J K Reid

M W Toogood

M Varley

P F Ward

L Warren

REGISTERED OFFICE:

Gibbons Mannington & Phipps LLP

20 Eversley Road

Bexhill-On-Sea

East Sussex

TN40 1HE

REGISTERED NUMBER:

13753239 (England and Wales)

AUDITORS:

GMP Audit Limited, Statutory Auditor

82 High Street

Tenterden

Kent

TN30 6JG

FIXED ASSETS

Intangible assets

4

112,127

Tangible assets

5

19,703

Investments

6

-

131,830

CURRENT ASSETS

Debtors

7

918,594

Cash at bank and in hand

2,339,567

3,258,161

CREDITORS

Amounts falling due within one year

8

1,364,431

NET CURRENT ASSETS

1,893,730

TOTAL ASSETS LESS CURRENT LIABILITIES

2,025,560

RESERVES

Income and expenditure account

2,025,560

2,025,560

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 28th September 2023 and were signed on its behalf by:

R B Benson - Director

1.	STATUTORY INFORMATION

The Property Institute is a private company, limited by guarantee , 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.

The Property Institute (TPI) was incorporated on 18 November 2021 but did not commence trading until 10 March 2022 following the completion of the merger between The Institute of Residential Property Managers Limited (IRPM) and the Association of Residential Managing Agents Limited (ARMA).

Turnover

Turnover is measured at the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes.

Turnover represents subscriptions, training courses and workshops, examination fees, conferences, ARMA audit fees and other miscellaneous income, net of VAT where applicable.

Subscriptions are recognised on a due basis. Amounts received at the year end for subscriptions due after the year end are carried forward to the next period as deferred income.

Income from training courses and workshops are recognised at the point at which the event takes place. Any amounts received in the current financial period that relate to events taking place in the following financial period are treated as deferred income at the statement of financial position date.

Members and Associates exam fees are recognised when the exam has been sat. Amounts received before the year end for exams to be sat after the year end are carried forward as deferred income.

Foundation exam fees for business customers are recognised when invoiced.

Foundation exam fees for individuals are recognised when received.

Income from conferences and seminars are recognised at the point at which the event takes place. Any amounts received in the current financial period that relate to the following financial year are treated as deferred income at the statement of financial position date.

ARMA audit fees are recognised once the audit is completed.

Goodwill

The write back of negative goodwill is to be recognised in the accounting period in which the benefit to The Property Institute arises.

Intangible assets

Intangible assets are initially measured at cost. After initial recognition, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses.

Website are being amortised evenly over their estimated useful life of three years.

Learning material are being amortised evenly over their estimated useful life of three years.

Membership system is being amortised evenly over its estimated useful life of three years.

Tangible fixed assets

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

Fixtures and fittings

-

25% on cost

Computer equipment

-

Straight line over 3 years

Investments in subsidiaries

Investments in subsidiary undertakings are recognised at cost.

Financial instruments

The company only has financial instruments of a kind that qualify as basic financial instruments. Basic financial instruments are initially recognised at transaction value and subsequently measured at their settlement value.

Taxation

Taxation for the period 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 period 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

Rentals paid under operating leases are charged to surplus or deficit on a straight line basis over the period of the lease.

Pension costs and other post-retirement benefits

The company operates a defined contribution pension scheme. Contributions payable to the company's pension scheme are charged to profit or loss in the period to which they relate.

Cash at bank

Cash at bank includes cash and short term highly liquid investments with a short maturity of three months or less from the date of acquisition or opening of the deposit or similar amount.

Debtors

Trade and other debtors are recognised at the settlement amount due. Prepayments are recognised at the invoiced cost prepaid. In relation to trade debtors, a provision for impairment is made when there is objective evidence that the company will not be able to collect all the amounts due under the original terms of the invoice. Impaired debts are recognised when they are assessed as uncollectible.

Creditors

Creditors are recognised when the company has a present obligation resulting from a past event that will probably result in the transfer of funds to a third party and the amount due to settle the obligation can be measured reliably. Creditors are normally recognised at the settlement amount.

3.	EMPLOYEES AND DIRECTORS

The average number of employees during the period was 23 .

4.	INTANGIBLE FIXED ASSETS

Learning

Membership

Goodwill

Website

material

system

Totals

£

£

£

£

£

COST

Additions

(1,980,192

)

5,000

19,510

227,498

(1,728,184

)

At 31st March 2023

(1,980,192

)

5,000

19,510

227,498

(1,728,184

)

AMORTISATION

Amortisation for period

(1,942,358

)

1,667

18,470

81,910

(1,840,311

)

At 31st March 2023

(1,942,358

)

1,667

18,470

81,910

(1,840,311

)

NET BOOK VALUE

At 31st March 2023

(37,834

)

3,333

1,040

145,588

112,127

Goodwill

The negative goodwill addition during the period represents the assets and liabilities that were transferred from IRPM and ARMA when the merger took place. Net assets of £1,980,192 were acquired on the date of the merger for no monetary consideration, thereby creating negative goodwill. The amount is to be released to the Income & Expenditure Account during the period in the which the benefit to TPI arises. The bulk of the net assets acquired were in the form of Cash at Bank to which TPI had immediate access and benefit.

This treatment of recognising the write back of the net assets transferred to TPI in the Income & Expenditure Account mirrors the treatment of the loss to IRPM and ARMA in their respective financial statements for their last period of trading.

5.	TANGIBLE FIXED ASSETS

Fixtures

and

Computer

fittings

equipment

Totals

£

£

£

COST

Additions

838

28,709

29,547

At 31st March 2023

838

28,709

29,547

DEPRECIATION

Charge for period

209

9,635

9,844

At 31st March 2023

209

9,635

9,844

NET BOOK VALUE

At 31st March 2023

629

19,074

19,703

6.	FIXED ASSET INVESTMENTS

Shares in

group

undertakings

£

COST

Additions

1

Disposals

(1

)

At 31st March 2023

-

NET BOOK VALUE

At 31st March 2023

-

A Buys B Limited was a wholly owned subsidiary of ARMA. On the date of the merger the ownership passed to The Property Institute. The subsidiary was then dissolved on 7 March 2023 and the £1 investment written off.

7.

DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

£

Trade debtors

534,463

Other debtors

4,450

Rent deposit

21,181

VAT

37,855

Accrued income

36,096

Prepayments

284,549

918,594

8.

CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

£

Trade creditors

140,604

Tax

16,958

Social security and other taxes

34,514

Other creditors

2,902

Pension creditor

19,866

Deferred income

978,583

Accrued expenses

171,004

1,364,431

9.	LEASING AGREEMENTS

Minimum lease payments under non-cancellable operating leases fall due as follows:

£

Within one year

80,339

Between one and five years

95,399

175,738

10.	DISCLOSURE UNDER SECTION 444(5B) OF THE COMPANIES ACT 2006

The Report of the Auditors was unqualified.

Samantha Whiting FCA (Senior Statutory Auditor)

for and on behalf of GMP Audit Limited, Statutory Auditor

11.	LIMITED BY GUARANTEE

The company is limited by guarantee and therefore has no share capital. Every member of the company undertakes to contribute to the assets of the company in the event of it being wound up while he or she is a member, or within one year afterwards, for the payment of the debts and liabilities of the company contracted before he or she ceases to be a member, and the costs, charges and expenses of winding up, and for the adjustment of the rights of the contributories among themselves, such as may be not exceeding £1.