The Manchester Mortgage Corporation Ltd - Accounts

Registered number

01045374

The Manchester Mortgage Corporation Ltd

Report and Financial Statements

31 March 2017

The Manchester Mortgage Corporation Ltd
Registered number:				01045374
Directors' Report and Strategic Report
The directors present their report and financial statements for the year ended 31 March 2017.
Principal activities
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 funds to the parent body.
Review of the business
In 2017 the Company received income from investments and interest on bank balances of £20,366 (2016 £30,486). This represents a reduction 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 2017/18 The Directors intend to complete distributing its reserves to its shareholder, as no further opportunities have arisen for the company. .
Financial instrument risk
The whole of the issued share capital is beneficially owned by the Council of the City of Manchester.
Results and Dividends
The net profit on ordinary activities after taxation amounts to £5,607 (2016 £18,297), which is to be transferred to reserves. The Directors do not recommend the payment of a final dividend for the year. During the year the Directors have approved and paid an interim dividend of £6,000,000 to the shareholders.
Events since the balance sheet date
There are no events since the year end to be reported.
Directors
The following persons served as directors during the year:
	Ms C Culley (Appointed 30 November 2016)
	Ms J C Gotts (Appointed 30 March 2017)
	Mr R Lund
	Ms E J Treacy (Appointed 30 March 2017)
	Sir H. Bernstein (Resigned 30 March 2017)
	R Paver (Resigned 30 November 2016)
	No directors have a beneficial interest in the company's shares.
Company Secretary
Ms E Treacy was appointed on 24 October 2014
Disclosure of information to auditors

Each person who was a director at the time this report was approved confirms that:
●	so far as he is aware, there is no relevant audit information of which the company's auditor is unaware; and
●	he has taken all the steps that he ought to have taken as a director in order to make himself aware of any relevant audit information and to establish that the company's auditor is aware of that information.

Third party indemnity provisions

A resolution proposing the reappointment of Messrs. Appleby & Wood as auditors to the Company will be put to the AGM.

This report was approved by the board on 8 December 2017 and signed by its order.

Ms E Treacy

Secretary

The Manchester Mortgage Corporation Ltd

Statement of Directors' Responsibilities

The directors are responsible for preparing the report and 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 (Financial Reporting Standard 102 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 estimates that are reasonable and prudent;
●	state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements;
●	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.

The directors confirm their compliance with these requirements.

Ms E Treacy

Secretary

The Manchester Mortgage Corporation Ltd

Independent auditor's report

to the member of The Manchester Mortgage Corporation Ltd

Opinion

We have audited the financial statements of The Manchester Mortgage Corporation Ltd for the year ended 31 March 2017 which comprise the Income Statement, , the Statement of Financial Position, the Statement of Changes in Equity, the Statement of Cash Flows and related 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 FRS 102 'The Financial Reporting Standard applicable in the UK and the Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).
This report is made solely to the company's member, 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 member those matters we are required to state to the member in an auditor's report 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 member as a body, for our audit work, for this report, or for the opinions we have formed.
In our opinion the financial statements:
●	give a true and fair view of the state of the company's affairs as at 31 March 2017 and of its profit for the year then ended;
●	have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice;
●	have been prepared in accordance with the requirements of the Companies Act 2006.

Basis of 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 Auditor’s 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
We have nothing to report in respect of the following matters in relation to which the ISAs (UK) require us to report to you where:
●	the directors' use of the going concern basis of accounting in the preparation of the financial statements is not appropriate; or
●	the directors have not disclosed in the financial statements any identified material uncertainties that may cast significant doubt about the company’s ability to continue to adopt the going concern basis of accounting for a period of at least twelve months from the date when the financial statements are authorised for issue.
Other information
The other information comprises the information included in the report and financial statements, other than the financial statements and our auditor's report thereon. The directors are responsible for the other information. 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 there is a material misstatement in the financial statements or a material misstatement of the other information. 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 strategic report and the directors’ report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
●	the strategic report and the directors’ report have 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 strategic report or the directors’ report.
We have nothing to report in respect of the following matters in relation to which 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

Responsibilities of directors

As explained more fully in the directors’ responsibilities statement, 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 is 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.

Auditor’s 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 an auditor’s report 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.

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 auditor’s report.

Stephen Knowles BSc FCA
(Senior Statutory Auditor)		Flexspace Evans Business Centre
for and on behalf of		Manchester Road
APPLEBY & WOOD		Bolton
Accountants and Statutory Auditors		Greater Manchester
8 December 2017		BL3 2NZ

The Manchester Mortgage Corporation Ltd
Income Statement
for the year ended 31 March 2017
Notes						2017		2016
£							£
Administrative expenses						(14,759)		(12,189)
Operating loss						(14,759)		(12,189)
Interest receivable						20,366		30,486
Profit on ordinary activities before taxation						5,607		18,297
Tax on profit on ordinary activities				3		-		-
Profit for the financial year						5,607		18,297
Continuing operations
None of the company's activities were acquired or discontinued during the above two financial years.
The notes on pages 9 to 12 form part of these financial statements.

The Manchester Mortgage Corporation Ltd
Statement of Financial Position
as at 31 March 2017
Notes				2017			2016
£					£
Current assets
Debtors	4		6,341			12,793
Investments held as current assets	5		90,950			6,064,132
Cash at bank and in hand			67,263			84,422
			164,554			6,161,347
Creditors: amounts falling due within one year	6		(9,879)			(12,279)
Net current assets				154,675			6,149,068
Net assets				154,675			6,149,068
Capital and reserves
Called up share capital	7			1,000			1,000
Profit and loss account	8			153,675			6,148,068
Total equity				154,675			6,149,068
Ms J C Gotts
Director
Approved by the board on 8 December 2017
The notes on pages 9 to 12 form part of these financial statements.

The Manchester Mortgage Corporation Ltd
Statement of Changes in Equity
for the year ended 31 March 2017
Share			Other			Profit		Total
capital			reserves			and loss
account
£			£			£		£
At 1 April 2015		1,000			-		6,129,771		6,130,771
Profit for the financial year							18,297		18,297
At 31 March 2016		1,000			-		6,148,068		6,149,068
At 1 April 2016		1,000			-		6,148,068		6,149,068
Profit for the financial year							5,607		5,607
Dividends							(6,000,000)		(6,000,000)
At 31 March 2017		1,000			-		153,675		154,675

The Manchester Mortgage Corporation Ltd
Statement of Cash Flows
for the year ended 31 March 2017
Notes			2017		2016
£				£
Operating activities
Profit for the financial year			5,607		18,297
Adjustments for:
Interest receivable			(20,366)		(30,486)
Decrease in debtors			6,452		4,533
Decrease in creditors			(2,400)		(1,187)
			(10,707)		(8,843)
Interest received			20,366		30,486
Cash generated by operating activities			9,659		21,643
Investing activities
Proceeds from sale of investments			5,973,182		-
Cash generated by investing activities			5,973,182		-
Financing activities
Equity dividends paid			(6,000,000)		-
Cash used in financing activities			(6,000,000)		-
Net cash (used)/generated
Cash generated by operating activities			9,659		21,643
Cash generated by investing activities			5,973,182		-
Cash used in financing activities			(6,000,000)		-
Net cash (used)/generated			(17,159)		21,643
Cash and cash equivalents at 1 April			84,422		62,779
Cash and cash equivalents at 31 March			67,263		84,422
Cash and cash equivalents comprise:
Cash at bank			67,263		84,422

The Manchester Mortgage Corporation Ltd
Notes to the Accounts
for the year ended 31 March 2017
1	Summary of significant accounting policies
	Basis of preparation
	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 for the year ended 31 March 2017 with comparative figures for the year ended 31 March 2016 and include the results of The Manchester Mortgage Corporation Ltd. The financial statements have been prepared using the going concern basis as a result of the directors review and forecast of the next 12 months activities.
	Turnover
	There is no turnover
	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 the 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.
	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.
2	Operating profit					2017		2016
	This is stated after charging:
	Auditors' remuneration for audit services					6,600		7,800
	Auditors' remuneration for other services					5,690		4,340
						12,290		12,140
	In accordance with the Company's Articles of Association no director shall hold any executive or salaried office with the company. There are 4 (2016 3) Directors. There are no staff costs.
	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.
3	Taxation					2017		2016
£							£
	Analysis of charge in period
	Tax on profit on ordinary activities					-		-
	Factors affecting tax charge for period
	The differences between the tax assessed for the period and the standard rate of corporation tax are explained as follows:
						2017		2016
£							£
	Profit on ordinary activities before tax					5,607		18,297
	Standard rate of corporation tax in the UK					20%		20%
£							£
	Profit on ordinary activities multiplied by the standard rate of corporation tax					1,121		3,659
	Effects of:
	Expenses not deductible for tax purposes					-		-
	Utilisation of tax losses					(1,121)		(3,659)
	Current tax charge for period					-		-
4	Debtors					2017		2016
£							£
	Amounts owed by group undertakings and undertakings in which the company has a participating interest (note 12)					6,341		12,793
5	Deposits with the Parent Body					2017		2016
£							£
	Held on deposit with Manchester City Council					90,950		6,064,132
	This gives a return of 0.25% ( 2016 0.5%) to the company.
6	Creditors: amounts falling due within one year					2017		2016
£							£
	Accruals and deferred income					9,879		12,279
	Accruals include amount due to the holding body of:					Nil	Nil
7	Share capital	Nominal		2017		2017		2016
value			Number		£		£
	Allotted, called up and fully paid:
	Ordinary shares	£1 each		1,000		1,000		1,000
8	Profit and loss account					2017		2016
£							£
	At 1 April					6,148,068		6,129,771
	Profit for the financial year					5,607		18,297
	Dividends					(6,000,000)		-
	At 31 March					153,675		6,148,068
9	Dividends					2017		2016
£							£
	Dividends on ordinary shares (note 8)					6,000,000		-
10	Post balance sheet events
	The directors are considering distributing available funds to its parent body.
11	Capital Commitments
	There are no capital commitments authorised or contracted for at year-end (2016 Nil)
12	Related party transactions					2017		2016
£							£
	The Council of the City of Manchester
	Deposit with Manchester City Council included in central bank account (note 5) earning interest at 0.25% repayable on demand					90,950		6,064,132
	Dividend paid to Manchester City Council					6,000,000		-
	There is an amount due from Manchester City Councl, being accrued interest					6,341		12,793
	Total interest received off MCC					20,366		30,486
13	Presentation currency
	The financial statements are presented in Sterling.
14	Legal form of entity and country of incorporation
	The Manchester Mortgage Corporation Ltd is a private company limited by shares and incorporated in England.
15	Principal place of business
	The address of the company's principal place of business and registered office is: Manchester Town Hall, P O Box 532, MANCHESTER M60 2LA
16	Reconciliations on adoption of FRS 102
	Profit and loss for the year ended 31 March 2017					£
	Profit under former UK GAAP					5,607
	Profit under FRS 102					5,607
	Balance sheet at 31 March 2017					£
	Equity under former UK GAAP					154,675
	Equity under FRS 102					154,675
	Balance sheet at 31 March 2016					£
	Equity under former UK GAAP					6,149,068
	Equity under FRS 102					6,149,068