Industrial Power Units Property Limited - Accounts to registrar (filleted) - small 23.2.5

REGISTERED NUMBER: 00641876 (England and Wales)

UNAUDITED FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2023

FOR

INDUSTRIAL POWER UNITS PROPERTY LIMITED

Page

Company Information

1

Balance Sheet

2

Notes to the Financial Statements

4

DIRECTORS:

R T Beebee

I Cleary

SECRETARY:

S J Beebee

REGISTERED OFFICE:

2 Cygnus Way

West Bromwich

West Midlands

B70 0XB

REGISTERED NUMBER:

00641876 (England and Wales)

ACCOUNTANTS:

Magma Audit LLP

Unit 2

Charnwood Edge Business Park

Syston Road

Leicester

LE7 4UZ

FIXED ASSETS

Tangible assets

4

31,843

-

Investment property

5

5,000,000

5,000,000

5,031,843

5,000,000

CURRENT ASSETS

Debtors

6

1,735

-

Cash at bank

85,345

56,067

87,080

56,067

CREDITORS

Amounts falling due within one year

7

(1,761,259

)

(371,941

)

NET CURRENT LIABILITIES

(1,674,179

)

(315,874

)

TOTAL ASSETS LESS CURRENT LIABILITIES

3,357,664

4,684,126

CREDITORS

Amounts falling due after more than one year

8

-

(1,898,564

)

PROVISIONS FOR LIABILITIES

(506,399

)

(498,438

)

NET ASSETS

2,851,265

2,287,124

CAPITAL AND RESERVES

Called up share capital

34,004

34,004

Revaluation reserve

11

343,489

343,489

Capital redemption reserve

6,000

6,000

Fair value reserve

11

1,502,865

1,502,865

Retained earnings

964,907

400,766

SHAREHOLDERS' FUNDS

2,851,265

2,287,124

The company is entitled to exemption from audit under Section 477 of the Companies Act 2006 for the year ended 31 December 2023.

The members have not required the company to obtain an audit of its financial statements for the year ended 31 December 2023 in accordance with Section 476 of the Companies Act 2006.

The directors acknowledge their responsibilities for:

(a)	ensuring that the company keeps accounting records which comply with Sections 386 and 387 of the Companies Act 2006 and

(b)

preparing financial statements which give a true and fair view of the state of affairs of the company as at the end of each financial year and of its profit or loss for each financial year in accordance with the requirements of Sections 394 and 395 and which otherwise comply with the requirements of the Companies Act 2006 relating to financial statements, so far as applicable to the company.

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 Profit and Loss Account has not been delivered.

The financial statements were approved by the Board of Directors and authorised for issue on 7 June 2024 and were signed on its behalf by:

I Cleary - Director

1.	STATUTORY INFORMATION

Industrial Power Units Property Limited is a limited company, registered in England and Wales. Its registered office address is 2 Cygnus Way, West Bromwich, West Midlands, B70 0XB and the registered number is 00641876.

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 as modified by the revaluation of certain assets.

The financial statements are presented in Sterling (£).

Going concern

At the time of approving the financial statements, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Whilst the bank loan is fully repayable within one year, it is and always has been the intention of the directors to refinance the loan upon its maturity. No issues are foreseen with refinancing the facility given the low loan to value ratio of loan compared to valuation. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.

Turnover

Rental income from investment properties is recognised on a straight line basis over the period of the lease.

Investment property

Investment property is carried at fair value determined annually by the directors based on guidance from professional valuers and derived from the current market rents and investment property yields for comparable real estate. No depreciation is provided. Changes in fair value are recognised in the Statement of Comprehensive Income.

Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in the Statement of Comprehensive Income.

Financial instruments

The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12

‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.

Financial instruments are recognised in the company's balance sheet when the company becomes party to the contractual provisions of the instrument.

Financial assets and liabilities are offset , with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

(i) Financial assets

Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.

(ii) Financial liabilities

Basic financial liabilities, including creditors and bank loans are initially recognised at transaction price unless

the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future receipts discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of

business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

Equity instruments

Equity instruments issued by the company are recorded at the proceeds received, net of direct issue costs.

Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.

Taxation

The tax expense for the year comprises current and deferred tax.

Tax is recognised in profit or loss except that a change attributable to an item of income and expense recognised as other comprehensive income or to an item recognised directly in equity is also recognised in other comprehensive income or directly in equity respectively.

Deferred tax balances are recognised in respect of all timing differences that have originated but not reversed by the Balance Sheet date, except that:

- The recognition of deferred tax assets is limited to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits; and

- Any deferred tax balances are reversed if and when all conditions for retaining associated tax allowances have been met.

Both current and deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the balance sheet date.

Employee benefits

The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.

The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.

Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

Government grants

Government grants are presented within deferred income on the Balance Sheet with recognition of income over a period of 50 years.

3.	EMPLOYEES AND DIRECTORS

The average number of employees during the year was 2 (2022 - 2 ) .

4.	TANGIBLE FIXED ASSETS

Plant and

machinery

etc

£

COST

Additions

32,300

At 31 December 2023

32,300

DEPRECIATION

Charge for year

457

At 31 December 2023

457

NET BOOK VALUE

At 31 December 2023

31,843

5.	INVESTMENT PROPERTY

Total

£

FAIR VALUE

At 1 January 2023

and 31 December 2023

5,000,000

NET BOOK VALUE

At 31 December 2023

5,000,000

At 31 December 2022

5,000,000

Fair value at 31 December 2023 is represented by:

£

Valuation in 2015

203,489

Valuation in 2017

140,000

Valuation in 2020

610,000

Valuation in 2022

1,250,000

Cost

2,796,511

5,000,000

The investment property was revalued during the prior year by an independent 3rd party on the basis of open market value. The directors have assessed the property value at the end of the 2023 year end and are of the opinion that its current valuation is in line with that of the most recent external valuation undertaken.

6.

DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2023

2022

£

£

VAT

170

-

Prepayments

1,565

-

1,735

-

7.

CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2023

2022

£

£

Bank loans and overdrafts

1,492,553

94,692

Trade creditors

-

25,800

Corporation tax

34,906

13,452

Other creditors

166,399

223,399

Directors' current accounts

37,000

-

Accruals and deferred income

30,401

3,924

Deferred government grants

-

10,674

1,761,259

371,941

8.

CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR

2023

2022

£

£

Bank loans

-

1,487,106

Deferred government grants

-

411,458

-

1,898,564

9.	LEASING AGREEMENTS

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

2023

2022

£

£

Within one year

10,353

-

Between one and five years

28,773

-

39,126

-

10.	SECURED DEBTS

The following secured debts are included within creditors:

2023

2022

£

£

Bank loans

1,492,553

1,581,798

The bank loan is secured by a fixed and floating charge over all of the assets of the company including the company's investment property.

11.

RESERVES

Retained earnings

Retained earnings represent accumulated comprehensive income for the year and prior periods less dividends paid.

Revaluation reserve

The revaluation reserve arose on the revaluation of the freehold property.

Capital redemption reserve

The capital redemption reserve arose on the company buying back 6,000 Ordinary shares for total consideration of £6,000

Fair value reserve

The fair value reserve arose on the revaluation of the investment property.

12.	CONTINGENT LIABILITIES

The company has received a regional growth fund grant of £650,000 to financially aid the relocation to a larger company premises. The grant has been awarded to the company on the basis that 45 new jobs are created over a 5 year period. If this condition is not satisfied then a proportion of the grant may be due back to the funder. It is not viable at this stage to quantify any amounts that may need to be repaid back.

13.	DIRECTORS' ADVANCES, CREDITS AND GUARANTEES

R. T. Beebee has given a personal guarantee to the company's bankers Barclays Bank plc of £150,000 (2022 - £150,000).

14.	RELATED PARTY DISCLOSURES

The controlling party is Industrial Power Units Holdings Limited.