Company No: 12179437 (England and Wales)

Contents

• Statement of Financial Position
• Notes to the Financial Statements

	Note	2023		2022
		£		£
Fixed assets
Tangible assets	3	15,544		12,409
Investment property	4	1,380,600		1,341,215
		1,396,144		1,353,624
Current assets
Stocks	5	840,590		798,744
Debtors	6	6,444		389
Cash at bank and in hand		41,745		760,760
		888,779		1,559,893
Creditors: amounts falling due within one year	7	( 1,647,049)		( 2,231,535)
Net current liabilities		(758,270)		(671,642)
Total assets less current liabilities		637,874		681,982
Creditors: amounts falling due after more than one year	8	( 791,000)		( 769,722)
Provision for liabilities		( 13,627)		( 8,179)
Net liabilities		( 166,753)		( 95,919)
Capital and reserves
Called-up share capital	9	100		100
Profit and loss account	11	( 166,853 )		( 96,019 )
Total shareholders' deficit		( 166,753)		( 95,919)

For the financial year ending 31 August 2023 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 financial year in accordance with section 476;
• The directors acknowledge their responsibilities for complying with the requirements of the Companies Act 2006 with respect to accounting records and the preparation of financial statements; and
• These financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime and a copy of the Statement of Income and Retained Earnings has not been delivered.

The financial statements of Eric National Limited (registered number: 12179437) were approved and authorised for issue by the Board of Directors on 30 April 2024. They were signed on its behalf by:

M J Fowle Director

1. Accounting policies

The principal accounting policies are summarised below. They have all been applied consistently throughout the financial year and to the preceding financial year, unless otherwise stated.

General information and basis of accounting

Eric National Limited (the Company) is a private company, limited by shares, incorporated in the United Kingdom under the Companies Act 2006 and is registered in England and Wales. The address of the Company's registered office is C/O Bishop Fleming Llp, 10 North Place, Cheltenham, GL50 4DW, United Kingdom. The principal place of business is Brocket Green, Rhinefield Road, Brockenhurst, SO42 7SR, United Kingdom.

The financial statements have been prepared under the historical cost convention, modified to include the revaluation of freehold properties and to include investment properties and certain items at fair value, and in accordance with Section 1A of Financial Reporting Standard 102 (FRS 102) ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland’ issued by the Financial Reporting Council and the requirements of the Companies Act 2006 as applicable to companies subject to the small companies regime.

The financial statements are presented in pounds sterling which is the functional currency of the Company and rounded to the nearest £.

Going concern

The directors have assessed the Statement of Financial Position and likely future cash flows at the date of approving these financial statements. The directors note that the business has net liabilities of £166,753. The Company is supported through loans from the directors. The directors have confirmed that the loan facilities will continue to be available for at least 12 months from the date of signing these financial statements and the directors will continue to support the Company. Given the current position, the directors believe that any foreseeable debts can be met for at least 12 months from the date of signing these financial statements. Accordingly, they continue to adopt the going concern basis in preparing the financial statements.

Turnover

Turnover is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business, and is shown net of VAT and other sales related taxes. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.

Turnover is recognised when the significant risks and rewards are considered to have been transferred to the customer.

Taxation

Current tax
Current tax is provided at amounts expected to be paid (or recoverable) using the tax rates and laws that have been enacted or substantively enacted at the Statement of Financial Position date.

Tangible fixed assets

Tangible fixed assets are stated at cost (or deemed cost) or valuation less accumulated depreciation and accumulated impairment losses. Cost includes costs directly attributable to making the asset capable of operating as intended. Depreciation is provided on all tangible fixed assets, other than investment properties and freehold land, at rates calculated to write off the cost or valuation, less estimated residual value, of each asset on a straight-line basis over its expected useful life, as follows:

Fixtures and fittings

4 years straight line

Investment property

Investment property is initially recognised at cost, which includes the purchase cost and any directly attributable expenditure. Subsequently it is measured at fair value at each reporting date with changes in fair value recognised in profit or loss. Deferred taxation is provided on these gains at the rate expected to apply when the property is sold.

The fair value is determined annually by the directors, on an open market value for existing use basis.

Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to sell, which is equivalent to the net realisable value. Cost includes materials, direct labour and an attributable proportion of manufacturing overheads based on normal levels of activity.

At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.

Trade and other debtors

Trade and other debtors are initially recognised at fair value and thereafter stated at amortised cost using the effective interest method less impairment losses for bad and doubtful debts, except where the effect of discounting would be immaterial. In such cases the receivables are stated at cost less impairment losses for bad and doubtful debts.

Cash and cash equivalents

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 creditors: amounts falling due within one year.

Trade and other creditors

Trade and other creditors are initially recognised at fair value and thereafter stated at amortised cost using the effective interest rate method, unless the effect of discounting would be immaterial, in which case they are stated at cost.

Provisions

Provisions are recognised when the Company has a present obligation (legal or constructive) as a result of a past event, it is probable that the Company will be required to settle that obligation and a reliable estimate can be made of the amount of the obligation.

The amount recognised as a provision is the best estimate of the consideration required to settle the present obligation at the Statement of Financial Position date, taking into account the risks and uncertainties surrounding the obligation. Where a provision is measured using the cash flows estimated to settle the present obligation, its carrying amount is the present value of those cash flows (when the effect of the time value of money is material).

When some or all of the economic benefits required to settle a provision are expected to be recovered from a third party, a receivable is recognised as an asset if it is virtually certain that reimbursement will be received and the amount of the receivable can be measured reliably.

Ordinary share capital

The ordinary share capital of the Company is presented as equity.

2. Employees

	2023		2022
	Number		Number
Monthly average number of persons employed by the Company during the year, including directors	2		2

3. Tangible assets

	Fixtures and fittings		Total
	£		£
Cost
At 01 September 2022	14,192		14,192
Additions	8,467		8,467
At 31 August 2023	22,659		22,659
Accumulated depreciation
At 01 September 2022	1,783		1,783
Charge for the financial year	5,332		5,332
At 31 August 2023	7,115		7,115
Net book value
At 31 August 2023	15,544		15,544
At 31 August 2022	12,409		12,409

4. Investment property

	Investment property
	£
Valuation
As at 01 September 2022	1,341,215
Fair value movement	39,385
As at 31 August 2023	1,380,600

Valuation

The valuation of the properties at the balance sheet date were made by the directors based on open market value for existing use basis.

5. Stocks

	2023		2022
	£		£
Work in progress	840,590		798,744

6. Debtors

	2023		2022
	£		£
VAT recoverable	6,444		389

7. Creditors: amounts falling due within one year

	2023		2022
	£		£
Bank loans (secured)	0		21,278
Amounts owed to directors	1,396,555		2,101,555
Accruals	190,085		108,413
Other creditors	60,409		289
	1,647,049		2,231,535

The bank loan are secured by fixed charges over the company's properties.

8. Creditors: amounts falling due after more than one year

	2023		2022
	£		£
Bank loans (secured)	791,000		769,722

Amounts repayable after more than 5 years are included in creditors falling due over one year:

	2023		2022
	£		£
Bank loans (secured)	791,000		769,722

The bank loan are secured by fixed charges over the company's properties.

9. Called-up share capital

	2023		2022
	£		£
Allotted, called-up and fully-paid
50 A Ordinary shares of £ 1.00 each	50		50
50 B Ordinary shares of £ 1.00 each	50		50
	100		100

10. Related party transactions

Transactions with the entity's directors

During the year, the directors made further loans to the company totalling £100,000 (2022: £816,644). The company repaid amounts totalling £805,000 (2022: £813,073) with the balance as at the year end due to the directors totalling £1,396,555 (2022: £2,101,555). This is included within creditors as amounts due within one year. The loan is repayable on demand and interest is being accrued at 5% per annum.

11. Profit and loss account

Included within the profit and loss reserve is a non-distributable amount totalling 2023: £39,385 (2022: £NIL), which relates to a fair value uplift on the investment properties. No deferred tax has been recognised in respect of this.