The Manchester Mortgage Corporation Limi - Limited company accounts 23.2

REGISTERED NUMBER: 01045374 (England and Wales)

REPORT OF THE DIRECTORS AND

FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31ST MARCH 2023

FOR

THE MANCHESTER MORTGAGE CORPORATION

LIMITED

Page

Company Information

1

Report of the Directors

2

Report of the Independent Auditors

4

Income Statement

7

Other Comprehensive Income

8

Statement of Financial Position

9

Statement of Changes in Equity

10

Statement of Cash Flows

11

Notes to the Statement of Cash Flows

12

Notes to the Financial Statements

13

DIRECTORS:

Ms C A Culley

P R Hindle

REGISTERED OFFICE:

PO Box 532

Town Hall

Albert Square

Manchester

M60 2LA

REGISTERED NUMBER:

01045374 (England and Wales)

AUDITORS:

Percy Westhead & Company

Chartered Accountants

and Statutory Auditors

Hanover House

30-32 Charlotte Street

Manchester

M1 4FD

The directors present their report with the financial statements of the company for the year ended 31st March 2023.

PRINCIPAL ACTIVITY

The company's principal activity was previously "The acquisition and development of and investment in land and buildings within the boundaries of the City of Manchester". However as no further opportunities have arisen for the company these activities have continued to be dormant. During the year the board of Directors have resolved to distribute the majority of the funds to the parent body.

REVIEW OF BUSINESS

In 2023 the Company received income from investments and interest on bank balances of £1,110 (2022 £100). This represents an increase in income compared to the previous year. Expenditure represents administration and professional services. There have been no other developments during the year and the position at year end remains strong. The Directors see no major risks the Company is exposed to.

FUTURE DEVELOPMENTS

During 2023/24 the Directors intend to complete distributing its remaining reserves to its shareholder, as no further opportunities have arisen for the company.

DIRECTORS

The directors during the year under review were:

Ms C A Culley

P R Hindle

The directors holding office at 31st March 2023 did not hold any beneficial interest in the issued share capital of the company at 1st April 2022 or 31st March 2023.

RESULTS AND DIVIDENDS

The net loss on ordinary activities after taxation amounts to £1,621 (2022 £5,451 loss).

The Directors do not recommend the payment of a final dividend for the year.

STATEMENT OF DIRECTORS' RESPONSIBILITIES

The directors are responsible for preparing the Report of the Directors and the financial statements in accordance with applicable law and regulations.

Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to:

-	select suitable accounting policies and then apply them consistently;

-	make judgements and accounting estimates that are reasonable and prudent;

-	prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company's transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS

So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the company's auditors are unaware, and each director has taken all the steps that he or she ought to have taken as a director in order to make himself or herself aware of any relevant audit information and to establish that the company's auditors are aware of that information.

This report has been prepared in accordance with the provisions of Part 15 of the Companies Act 2006 relating to small companies.

ON BEHALF OF THE BOARD:

Ms C A Culley - Director

12th December 2023

Opinion

We have audited the financial statements of The Manchester Mortgage Corporation Limited (the 'company') for the year ended 31st March 2023 which comprise the Income Statement, Other Comprehensive Income, Statement of Financial Position, Statement of Changes in Equity, Statement of Cash Flows and Notes to the Statement of Cash Flows, Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

-	give a true and fair view of the state of the company's affairs as at 31st March 2023 and of its loss for the year then ended;

-	have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and

-	have been prepared in accordance with the requirements of the Companies Act 2006.

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.

Other information

The directors are responsible for the other information. The other information comprises the information in the Report of the Directors, but does not include the financial statements and our Report of the Auditors thereon.

Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of the audit:

-	the information given in the Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and

-	the Report of the Directors has been prepared in accordance with applicable legal requirements.

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the Report of the Directors.

We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion:

-	adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or

-	the financial statements are not in agreement with the accounting records and returns; or

-	certain disclosures of directors' remuneration specified by law are not made; or

-	we have not received all the information and explanations we require for our audit; or

-	the directors were not entitled to take advantage of the small companies' exemption from the requirement to prepare a Strategic Report or in preparing the Report of the Directors.

Responsibilities of directors

As explained more fully in the Statement of Directors' Responsibilities set out on page two, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the directors are responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.

Auditors' responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue a Report of the Auditors that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

We identified areas of laws and regulations, relevant to a company of this size, that could reasonably be expected to have a material effect on the financial statements from discussions with the directors and key personnel. We communicated identified laws and regulations to our audit team and remained alert to any indications of non-compliance with laws and regulations.

The company is subject to laws and regulations that directly affect the financial statements including financial reporting legislation. We assessed the extent of compliance with these laws and regulations as part of our procedures on the related financial statement items.

Owing to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material misstatements in the financial statements, as these may for example involve fraud or override of internal controls and we are not responsible for preventing non-compliance.

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Auditors.

Use of our report

This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in a Report of the Auditors and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's members as a body, for our audit work, for this report, or for the opinions we have formed.

Timothy A R Elston (Senior Statutory Auditor)

for and on behalf of Percy Westhead & Company

Chartered Accountants

and Statutory Auditors

Hanover House

30-32 Charlotte Street

Manchester

M1 4FD

14th December 2023

TURNOVER

-

-

Administrative expenses

2,731

5,551

OPERATING LOSS

4

(2,731

)

(5,551

)

Interest receivable and similar income

1,110

100

LOSS BEFORE TAXATION

(1,621

)

(5,451

)

Tax on loss

5

-

-

LOSS FOR THE FINANCIAL YEAR

(1,621

)

(5,451

)

LOSS FOR THE YEAR

(1,621

)

(5,451

)

OTHER COMPREHENSIVE INCOME

-

-

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

(1,621

)

(5,451

)

CURRENT ASSETS

Cash at bank

6

134,818

146,249

CREDITORS

Amounts falling due within one year

7

5,473

15,283

NET CURRENT ASSETS

129,345

130,966

TOTAL ASSETS LESS CURRENT LIABILITIES

129,345

130,966

CAPITAL AND RESERVES

Called up share capital

8

1,000

1,000

Retained earnings

9

128,345

129,966

SHAREHOLDERS' FUNDS

129,345

130,966

The financial statements were approved by the Board of Directors and authorised for issue on 12th December 2023 and were signed on its behalf by:

Ms C A Culley - Director

Called up

share

Retained

Total

capital

earnings

equity

£

£

£

Balance at 1st April 2021

1,000

135,417

136,417

Changes in equity

Total comprehensive income

-

(5,451

)

(5,451

)

Balance at 31st March 2022

1,000

129,966

130,966

Changes in equity

Total comprehensive income

-

(1,621

)

(1,621

)

Balance at 31st March 2023

1,000

128,345

129,345

Cash flows from operating activities

Cash generated from operations

1

(12,541

)

(31

)

Net cash from operating activities

(12,541

)

(31

)

Cash flows from investing activities

Interest received

1,110

100

Net cash from investing activities

1,110

100

(Decrease)/increase in cash and cash equivalents

(11,431

)

69

Cash and cash equivalents at beginning of year

2

146,249

146,180

Cash and cash equivalents at end of year

2

134,818

146,249

1.	RECONCILIATION OF LOSS BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS

2023

2022

£

£

Loss before taxation

(1,621

)

(5,451

)

Finance income

(1,110

)

(100

)

(2,731

)

(5,551

)

(Decrease)/increase in trade and other creditors

(9,810

)

5,520

Cash generated from operations

(12,541

)

(31

)

2.	CASH AND CASH EQUIVALENTS

The amounts disclosed on the Statement of Cash Flows in respect of cash and cash equivalents are in respect of these Statement of Financial Position amounts:

Year ended 31st March 2023

31/3/23

1/4/22

£

£

Cash and cash equivalents

134,818

146,249

Year ended 31st March 2022

31/3/22

1/4/21

£

£

Cash and cash equivalents

146,249

146,180

3.	ANALYSIS OF CHANGES IN NET FUNDS

At 1/4/22

Cash flow

At 31/3/23

£

£

£

Net cash

Cash at bank

146,249

(11,431

)

134,818

146,249

(11,431

)

134,818

Total

146,249

(11,431

)

134,818

1.	STATUTORY INFORMATION

The Manchester Mortgage Corporation Limited 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.

The presentation currency of the financial statements is the Pound Sterling (£).

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" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention.

The financial statements have been prepared under the historical cost convention and in accordance with FRS 102, the Financial Reporting Standard applicable in the UK and Republic of Ireland. This basis has been adopted by the Board as a result of its forward review of the Company's activities for the next year. The Board believes this basis is acceptable for at least the next 12 months.

Taxation

A current tax liability is recognised for the tax payable on the taxable profit of the current and past periods. A current tax asset is recognised in respect of a tax loss that can be carried back to recover tax paid in a previous period. Deferred tax is recognised in respect of all timing differences between the recognition of income and expenses in the financial statements and their inclusion in tax assessments. 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. Deferred tax is measured using the tax rates and laws that have been enacted or substantively enacted by the reporting date and that are expected to apply to the reversal of the timing difference, except for revalued land and investment property where the tax rate that applies to the sale of the asset is used. Current and deferred tax assets and liabilities are not discounted.

Investment income

Interest and dividends receivable are accounted for on an accruals basis.

Debtors

Short term debtors are measured at transaction price (which is usually the invoice price), less any impairment losses for bad and doubtful debts. Loans and other financial assets are initially recognised at transaction price including any transaction costs and subsequently measured at amortised cost determined using the effective interest method, less any impairment losses for bad and doubtful debts.

Creditors

Short term creditors are measured at transaction price (which is usually invoice price). Loans and other financial liabilities are initially recognised at transaction price net of any transaction costs and subsequently measured at amortised cost determined using the effective interest method.

3.	EMPLOYEES AND DIRECTORS

In accordance with the Company's Articles of Association no Director shall hold any executive or salaried office with the company. There are 2 Directors (2022 2).

There are no staff costs.

2023

2022

£

£

Directors' remuneration

-

-

4.	OPERATING LOSS

The operating loss is stated after charging:

2023

2022

£

£

Audit fees

2,400

2,400

Audit fees - prior year

-

1,920

Taxation compliance services

300

300

Other non- audit services

-

900

In common with many other business's of our size and nature we use our auditors to prepare and submit returns to the tax authorities and provide tax and other advice.

5.

TAXATION

Analysis of the tax charge

No liability to UK corporation tax arose for the year ended 31st March 2023 nor for the year ended 31st March 2022.

6.	CASH AT BANK

2023

2022

£

£

Held on Deposit with MCC

101,066

99,956

Bank account no. 1

33,752

46,293

134,818

146,249

Monies held on deposit with Manchester City Council have instant access and have given a return of 1.65% (2022 0.1%) to the company.

7.

CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2023

2022

£

£

Accruals and deferred income

5,473

15,283

8.	CALLED UP SHARE CAPITAL

Allotted, issued and fully paid:

Number:

Class:

Nominal

2023

2022

value:

£

£

1,000

Ordinary

£1

1,000

1,000

9.

RESERVES

Retained

earnings

£

At 1st April 2022

129,966

Deficit for the year

(1,621

)

At 31st March 2023

128,345

10.	RELATED PARTY DISCLOSURES

The Council of the City of Manchester (MCC)

2023

2022

£

£

Total interest received off MCC

1,110

100

Deposit with MCC included in central bank, repayable on demand.

100,385

99,915

There is an amount due from MCC, being accrued interest.

681

41