Mahady Investment Limited - Period Ending 2017-04-30

Registration number: 09688561

Mahady Investment Limited

Annual Report and Unaudited Financial Statements

for the Year Ended 30 April 2017

Boon and Worth Limited
Mortimer House
Holmer Road
Hereford
Herefordshire
HR4 9TA

Mahady Investment Limited

Contents

Company Information	1
Directors' Report	2
Accountants' Report	3
Profit and Loss Account	4
Balance Sheet	5 to 6
Statement of Changes in Equity	7
Notes to the Financial Statements	8 to 13

Mahady Investment Limited

Company Information

Directors

AJ Shanks Mrs L Shanks

Registered office

Mortimer House Holmer Road Hereford Herefordshire HR4 9TA

Accountants

Boon and Worth Limited Mortimer House Holmer Road Hereford Herefordshire HR4 9TA

Page 1

Mahady Investment Limited

Directors' Report for the Year Ended 30 April 2017

The directors present their report and the financial statements for the year ended 30 April 2017.

Directors of the company

The directors who held office during the year were as follows:

AJ Shanks

Mrs L Shanks

Principal activity

The principal activity of the company is investing in rental property.

Small companies provision statement

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

Approved by the Board on 26 February 2018 and signed on its behalf by:

.........................................
AJ Shanks
Director

.........................................
Mrs L Shanks
Director

Page 2

Chartered Accountants' Report to the Board of Directors on the Preparation of the Unaudited Statutory Accounts of
Mahady Investment Limited
for the Year Ended 30 April 2017

In order to assist you to fulfil your duties under the Companies Act 2006, we have prepared for your approval the accounts of Mahady Investment Limited for the year ended 30 April 2017 as set out on pages 4 to 13 from the company's accounting records and from information and explanations you have given us.

As a practising member firm of the Institute of Chartered Accountants in England and Wales (ICAEW), we are subject to its ethical and other professional requirements which are detailed at
http://www.icaew.com/en/members/regulations-standards-and-guidance/.

This report is made solely to the Board of Directors of Mahady Investment Limited, as a body, in accordance with the terms of our engagement letter. Our work has been undertaken solely to prepare for your approval the accounts of Mahady Investment Limited and state those matters that we have agreed to state to the Board of Directors of Mahady Investment Limited, as a body, in this report in accordance with ICAEW Technical Release 07/16 AAF. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than Mahady Investment Limited and its Board of Directors as a body for our work or for this report.

It is your duty to ensure that Mahady Investment Limited has kept adequate accounting records and to prepare statutory accounts that give a true and fair view of the assets, liabilities, financial position and loss of Mahady Investment Limited. You consider that Mahady Investment Limited is exempt from the statutory audit requirement for the year.

We have not been instructed to carry out an audit or a review of the accounts of Mahady Investment Limited. For this reason, we have not verified the accuracy or completeness of the accounting records or information and explanations you have given to us and we do not, therefore, express any opinion on the statutory accounts.

......................................

Boon and Worth Limited
Mortimer House
Holmer Road
Hereford
Herefordshire
HR4 9TA

26 February 2018

Page 3

Mahady Investment Limited

Profit and Loss Account for the Year Ended 30 April 2017

	Note	Total 30 April 2017 £	Total 30 April 2016 £
Turnover		63,071	4,330
Cost of sales		(394,134)	(9,102)
Gross loss		(331,063)	(4,772)
Administrative expenses		(16,066)	(3,296)
Operating loss		(347,129)	(8,068)
Other interest receivable and similar income		21	65
		21	65
Loss before tax	4	(347,108)	(8,003)
Loss for the financial year		(347,108)	(8,003)

The notes on pages 8 to 13 form an integral part of these financial statements.

Page 4

Mahady Investment Limited

(Registration number: 09688561)
Balance Sheet as at 30 April 2017

	Note	2017 £	2016 £
Fixed assets
Tangible assets	5	2,839,063	1,264,088
Current assets
Stocks	7	-	85,167
Debtors	8	169,802	204,129
Cash at bank and in hand		8,879	16,973
		178,681	306,269
Creditors: Amounts falling due within one year	9	(1,988,303)	(1,578,260)
Net current liabilities		(1,809,622)	(1,271,991)
Total assets less current liabilities		1,029,441	(7,903)
Creditors: Amounts falling due after more than one year	9	(603,322)	-
Net assets/(liabilities)		426,119	(7,903)
Capital and reserves
Called up share capital		100	100
Other reserves		781,130	-
Profit and loss account		(355,111)	(8,003)
Total equity		426,119	(7,903)

For the financial year ending 30 April 2017 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 accounts for the year in question in accordance with section 476; and
•	The directors acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and the preparation of accounts.

These financial statements have been prepared in accordance with the special provisions relating to companies subject to the small companies regime within Part 15 of the Companies Act 2006.

The notes on pages 8 to 13 form an integral part of these financial statements.

Page 5

Mahady Investment Limited

(Registration number: 09688561)
Balance Sheet as at 30 April 2017

Approved and authorised by the Board on 26 February 2018 and signed on its behalf by:
 

.........................................

AJ Shanks

Director

.........................................

Mrs L Shanks

Director

The notes on pages 8 to 13 form an integral part of these financial statements.

Page 6

Mahady Investment Limited

Statement of Changes in Equity for the Year Ended 30 April 2017

	Share capital £	Revaluation reserve £	Profit and loss account £	Total £
At 1 May 2016	100	-	(8,003)	(7,903)
Loss for the year	-	-	(347,108)	(347,108)
Revaluation	-	781,130	-	781,130
Total	-	781,130	(347,108)	434,022
At 30 April 2017	100	781,130	(355,111)	426,119

	Share capital £	Profit and loss account £	Total £
Loss for the year	-	(8,003)	(8,003)
Total comprehensive income	-	(8,003)	(8,003)
New share capital subscribed	100	-	100
At 30 April 2016	100	(8,003)	(7,903)

The notes on pages 8 to 13 form an integral part of these financial statements.

Page 7

Mahady Investment Limited

Notes to the Financial Statements for the Year Ended 30 April 2017

1	General information

The company is a private company limited by share capital incorporated in England & Wales.

The address of its registered office is:
Mortimer House
Holmer Road
Hereford
Herefordshire
HR4 9TA
United Kingdom

2	Accounting policies

Summary of significant accounting policies and key accounting estimates

The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.

Statement of compliance

These financial statements have been prepared in accordance with Financial Reporting Standard 102 Section 1A - 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' and the Companies Act 2006.

Basis of preparation

These financial statements have been prepared using the historical cost convention except that as disclosed in the accounting policies certain items are shown at fair value.

Going concern

The director has reviewed the twelve months ahead and considered the company's financial position and notes no material uncertainties that may cast significant doubt about the ability of it to continue as a going concern.

Revenue recognition

Turnover comprises the fair value of the consideration received or receivable for the sale of goods and provision of services in the ordinary course of the company’s activities. Turnover is shown net of sales/value added tax, returns, rebates and discounts.

The company recognises revenue when:
The amount of revenue can be reliably measured;
it is probable that future economic benefits will flow to the entity;
and specific criteria have been met for each of the company's activities.

Tangible assets

Tangible assets are stated in the statement of financial position at cost, less any subsequent accumulated depreciation and subsequent accumulated impairment losses.

The cost of tangible assets includes directly attributable incremental costs incurred in their acquisition and installation.

Depreciation

Depreciation is charged so as to write off the cost of assets, other than land and properties under construction over their estimated useful lives, as follows:

Asset class	Depreciation method and rate
Furniture & fittings	25% Reducing balance

Page 8

Mahady Investment Limited

Notes to the Financial Statements for the Year Ended 30 April 2017

Cash and cash equivalents

Cash and cash equivalents comprise cash on hand and call deposits, and other short-term highly liquid investments that are readily convertible to a known amount of cash and are subject to an insignificant risk of change in value.

Trade debtors

Trade debtors are amounts due from customers for merchandise sold or services performed in the ordinary course of business.

Trade debtors are recognised initially at the transaction price. They are subsequently measured at amortised cost using the effective interest method, less provision for impairment. A provision for the impairment of trade debtors is established when there is objective evidence that the company will not be able to collect all amounts due according to the original terms of the receivables.

Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost is determined using the first-in, first-out (FIFO) method.

The cost of finished goods and work in progress comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the inventories to their present location and condition. At each reporting date, stocks are assessed for impairment. If stocks are impaired, the carrying amount is reduced to its selling price less costs to complete and sell; the impairment loss is recognised immediately in profit or loss.

Trade creditors

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Accounts payable are classified as current liabilities if the company does not have an unconditional right, at the end of the reporting period, to defer settlement of the creditor for at least twelve months after the reporting date. If there is an unconditional right to defer settlement for at least twelve months after the reporting date, they are presented as non-current liabilities.

Trade creditors are recognised initially at the transaction price and subsequently measured at amortised cost using the effective interest method.

Borrowings

Interest-bearing borrowings are initially recorded at fair value, net of transaction costs. Interest-bearing borrowings are subsequently carried at amortised cost, with the difference between the proceeds, net of transaction costs, and the amount due on redemption being recognised as a charge to the Profit and Loss Account over the period of the relevant borrowing.

Interest expense is recognised on the basis of the effective interest method and is included in interest payable and similar charges.

Borrowings are classified as current liabilities unless the company has an unconditional right to defer settlement of the liability for at least twelve months after the reporting date.

Share capital

Ordinary shares are classified as equity. Equity instruments are measured at the fair value of the cash or other resources received or receivable, net of the direct costs of issuing the equity instruments. If payment is deferred and the time value of money is material, the initial measurement is on a present value basis.

Page 9

Mahady Investment Limited

Notes to the Financial Statements for the Year Ended 30 April 2017

3	Staff numbers

The average number of persons employed by the company (including directors) during the year, was 2 (2016 - 2).

4	Loss before tax

Arrived at after charging/(crediting)

	2017 £	2016 £
Depreciation expense	3,859	-

5	Tangible assets

	Land and buildings £	Furniture, fittings and equipment  £	Total £
Cost or valuation
At 1 May 2016	1,262,504	1,584	1,264,088
Revaluations	781,130	-	781,130
Additions	781,366	16,338	797,704
At 30 April 2017	2,825,000	17,922	2,842,922
Depreciation
Charge for the period	-	3,859	3,859
At 30 April 2017	-	3,859	3,859
Carrying amount
At 30 April 2017	2,825,000	14,063	2,839,063
At 30 April 2016	1,262,504	1,584	1,264,088

Included within the net book value of land and buildings above is £2,825,000 (2016 - £1,262,504) in respect of freehold land and buildings.
 

6	Investment property

Investment property is measured initially at cost, which includes purchase price and any directly attributable expenditure. Investment property has been revalued to its fair value at the reporting date an any changes in fair value are recognised in the profit or loss.

If a reliable measure of fair value is not available without undue cost of effort it shall be transferred to tangible assets and accounted for under the cost model until it is expected that fair value will be reliably measureable on an on- going basis.
 

Page 10

Mahady Investment Limited

Notes to the Financial Statements for the Year Ended 30 April 2017

7

Stocks

	2017 £	2016 £
Work in progress	-	85,167

8

Debtors

	2017 £	2016 £
Trade debtors	587	334
Other debtors	169,215	203,795
Total current trade and other debtors	169,802	204,129

9

Creditors

	Note	2017 £	2016 £
Due within one year
Bank loans and overdrafts	10	905,000	1,552,700
Trade creditors		80	-
Other creditors		1,083,223	25,560
		1,988,303	1,578,260
Due after one year
Loans and borrowings	10	603,322	-

10	Loans and borrowings

	2017 £	2016 £
Non-current loans and borrowings
Bank borrowings	603,322	-

Page 11

Mahady Investment Limited

Notes to the Financial Statements for the Year Ended 30 April 2017

	2017 £	2016 £
Current loans and borrowings
Bank borrowings	905,000	1,552,700

11	Related party transactions

Transactions with directors

2017	At 1 May 2016 £	Advances to directors £	Repayments by director £	At 30 April 2017 £
AJ Shanks
Director	152,522	46,622	(346,504)	(147,360)

2016	At 16 July 2015 £	Advances to directors £	Repayments by director £	At 30 April 2016 £
AJ Shanks
Director	363,460	39,062	(250,000)	152,522

Summary of transactions with other related parties

During the period the company made the following related party transactions:
 
Newsham Drive Limited
At the balance sheet date the amount due from Newsham Drive Limited was £123,536 (2016 - £12,719)

Mahady Consulting Limited
At the balance sheet date the amount due to Mahady Consulting Limited was £18,338 (2016 - £32,441 due from)

Sunniside Investments Limited
At the balance sheet date the amount due to Sunniside Investments Limited was £233,037 (2016 - £6,114 due from).

Odysseon Limited
At the balance sheet date the amount due from Odysseon Limited was £32,225 (2016 - £NIL).

Camrex House Limited
At the balance sheet date the amount due from Camrex House Limited was £3,400 (2016 - £NIL).


 

Page 12

Mahady Investment Limited

Notes to the Financial Statements for the Year Ended 30 April 2017

12	Transition to FRS 102

These financial statements for the year ended 30th April 2017 are the first financial statements that comply with FRS 102 Section 1A small entities. The date of transition is 1st May 2015.

The transition to FRS 102 Section 1A small entities has resulted in no changes to the accounting policies to those used previously.

Page 13

Mahady Investment Limited

Detailed Profit and Loss Account for the Year Ended 30 April 2017

2017 £

2016 £

Turnover
Rental Income	63,071	4,330

Cost of sales
Rates and Insurance	16,210	3,223
Legal and professional fees	75,815	-
Other rental costs	7,578	629
Light, heat and power	10,145	-
Mortgage and other interest	269,108	48
Finance costs	6,728	-
Management fees	8,170	402
Licences	380	4,800
	394,134	9,102

Employment costs
Staff training	1,410	-

Establishment costs
Repairs and maintenance	3,613	-

General administrative expenses
Printing, postage and stationery	72	-
Trade subscriptions	34	-
Sundry expenses	71	24
Cleaning	544	-
Travel and subsistence	1,924	-
Customer entertaining (disallowable for tax)	50	-
Accountancy fees	4,140	3,180
	6,835	3,204

Finance charges
Bank charges	349	92

Depreciation costs
Depreciation of fixtures and fittings (owned)	3,859	-

Other interest receivable and similar income
Bank interest receivable	21	65

This page does not form part of the statutory financial statements.

Page 14