MGMA Properties Limited - Period Ending 2017-11-30

Registration number: 09859460

MGMA Properties Limited

Annual Report and Unaudited Financial Statements

for the Year Ended 30 November 2017

MGMA Properties Limited

Contents

Company Information	1
Directors' Report	2
Accountants' Report	3
Profit and Loss Account	4
Statement of Comprehensive Income	5
Balance Sheet	6 to 7
Statement of Changes in Equity	8
Notes to the Financial Statements	9 to 14
Non-statutory pages	15 to 16

MGMA Properties Limited

Company Information

Directors

MV Moulene GR Colquhoun

Registered office

Sovereign House 212-224 Shaftesbury Avenue London WC2H 8HQ

Accountants

Bourner Bullock Sovereign House 212-224 Shaftesbury Avenue London WC2H 8HQ

Page 1

MGMA Properties Limited

Directors' Report for the Year Ended 30 November 2017

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

Directors of the Company

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

MV Moulene

GR Colquhoun

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 30 August 2018 and signed on its behalf by:

.........................................
MV Moulene
Director

Page 2

Chartered Accountants' Report to the Board of Directors on the Preparation of the Unaudited Statutory Accounts of
MGMA Properties Limited
for the Year Ended 30 November 2017

In order to assist you to fulfil your duties under the Companies Act 2006, we have prepared for your approval the accounts of MGMA Properties Limited for the year ended 30 November 2017 as set out on pages 4 to 14 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 MGMA Properties 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 MGMA Properties Limited and state those matters that we have agreed to state to the Board of Directors of MGMA Properties 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 MGMA Properties Limited and its Board of Directors as a body for our work or for this report.

It is your duty to ensure that MGMA Properties 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 profit of MGMA Properties Limited. You consider that MGMA Properties 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 MGMA Properties 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.

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

Bourner Bullock
Sovereign House
212-224 Shaftesbury Avenue
London
WC2H 8HQ

30 August 2018

Page 3

MGMA Properties Limited

Profit and Loss Account for the Year Ended 30 November 2017

	Note	30 November 2017 £	30 November 2016 £
Turnover		43,680	27,040
Cost of sales		(9,940)	(4,559)
Gross profit		33,740	22,481
Administrative expenses		(3,267)	(33,262)
Operating profit/(loss)		30,473	(10,781)
Profit/(loss) before tax	4	30,473	(10,781)
Taxation		(721)	-
Profit/(loss) for the financial year		29,752	(10,781)

The notes on pages 9 to 14 form an integral part of these financial statements.

Page 4

MGMA Properties Limited

Statement of Comprehensive Income for the Year Ended 30 November 2017

	Note	2017 £	2016 £
Profit/(loss) for the year		29,752	(10,781)
Total comprehensive income for the year		29,752	(10,781)

The notes on pages 9 to 14 form an integral part of these financial statements.

Page 5

MGMA Properties Limited

(Registration number: 09859460)
Balance Sheet as at 30 November 2017

	Note	2017 £	2016 £
Fixed assets
Tangible assets	5	1,046	1,368
Investment property	6	1,375,747	1,375,747
		1,376,793	1,377,115
Current assets
Debtors	7	10,592	4,463
Cash at bank and in hand		13,380	21,219
		23,972	25,682
Creditors: Amounts falling due within one year	8	(1,381,694)	(1,413,478)
Net current liabilities		(1,357,722)	(1,387,796)
Net assets/(liabilities)		19,071	(10,681)
Capital and reserves
Called up share capital		100	100
Profit and loss account		18,971	(10,781)
Total equity		19,071	(10,681)

The notes on pages 9 to 14 form an integral part of these financial statements.

Page 6

MGMA Properties Limited

(Registration number: 09859460)
Balance Sheet as at 30 November 2017

For the financial year ending 30 November 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.

Approved and authorised by the Board on 30 August 2018 and signed on its behalf by:
 

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

MV Moulene

Director

The notes on pages 9 to 14 form an integral part of these financial statements.

Page 7

MGMA Properties Limited

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

	Share capital £	Profit and loss account £	Total £
At 1 December 2016	100	(10,781)	(10,681)
Profit for the year	-	29,752	29,752
Total comprehensive income	-	29,752	29,752
At 30 November 2017	100	18,971	19,071

	Share capital £	Profit and loss account £	Total £
Loss for the year	-	(10,781)	(10,781)
Total comprehensive income	-	(10,781)	(10,781)
New share capital subscribed	100	-	100
At 30 November 2016	100	(10,781)	(10,681)

The notes on pages 9 to 14 form an integral part of these financial statements.

Page 8

MGMA Properties Limited

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

1	General information

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

The address of its registered office is:
Sovereign House
212-224 Shaftesbury Avenue
London
WC2H 8HQ
United Kingdom

Principal activity

The principal activity of the company is the rental of investment property.

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 company made a profit in the period but has net current liabilities. The company is dependent on the support from the shareholders to continue as a going concern.

The financial statements have been prepared on a going concern basis that assumes further funding will be obtained.

Judgements

The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the amounts reported for assets and liabilities as at the balance sheet date and the amounts reported for revenues and expenses during the year. However, the nature of estimation means that actual outcomes could differ from those estimates. In the Directors' opinion there are no significant judgements or key sources of estimation uncertainty.

Page 9

MGMA Properties Limited

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

Turnover recognition

Turnover comprises the fair value of the consideration received or receivable from the rental of investment properties 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.

Tax

The tax expense for the period comprises current tax. Tax is recognised in profit or loss, except that a change attributable to an item of income or expense recognised as other comprehensive income is also recognised directly in other comprehensive income.

The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the reporting date in the countries where the company operates and generates taxable income.

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
Fixtures & Fittings	20% straight line

Investment property

Investment property is carried at fair value, derived from the current market prices for comparable real estate determined annually by the directors. The directors use observable market prices, adjusted if necessary for any difference in the nature, location or condition of the specific asset. Changes in fair value are recognised in profit or loss.

Page 10

MGMA Properties Limited

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

Financial instruments

The Company only enters into basic financial instruments transactions that result in the recognition of financial assets and liabilities like trade and other debtors and creditors, loans to related parties and investments in non-puttable ordinary shares.

Financial assets that are measured at cost and amortised cost are assessed at the end of each reporting period for objective evidence of impairment. If objective evidence of impairment is found, an impairment loss is recognised in profit or loss.

Financial assets and liabilities are offset and the net amount reported in the Balance Sheet when there is an 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.

Debtors

Basic financial assets, including trade and other debtors, are initially recognised at transaction price, 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. Such assets are subsequently carried at amortised cost using the effective interest method, less any impairment,

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

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.

Creditors

Basic financial liabilities, including trade and other creditors, loans from third parties and loans from related parties, 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 payments discounted at a market rate of interest. Such instruments are subsequently carried at amortised cost using the effective interest method, less any impairment.

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

Page 11

MGMA Properties Limited

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

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.

3	Staff numbers

There were no employees during the current year or the previous period.

4	Profit/loss before tax

Arrived at after charging/(crediting)

	2017 £	2016 £
Depreciation expense	322	243

5	Tangible assets

	Furniture, fittings and equipment  £	Total £
Cost or valuation
At 1 December 2016	1,611	1,611
At 30 November 2017	1,611	1,611
Depreciation
At 1 December 2016	243	243
Charge for the period	322	322
At 30 November 2017	565	565
Carrying amount
At 30 November 2017	1,046	1,046
At 30 November 2016	1,368	1,368

Page 12

MGMA Properties Limited

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

6	Investment properties

	2017 £
At 1 December 2016	1,375,747
At 30 November 2017	1,375,747

7

Debtors

	2017 £	2016 £
Other debtors	10,592	4,463
Total current trade and other debtors	10,592	4,463

8

Creditors

	2017 £	2016 £
Due within one year
Other creditors	1,381,694	1,413,478

9

Dividends

There were no dividends paid or proposed in either the current year or the previous period.

10	Related party transactions

Summary of transactions with other related parties

GR Colquhoun & MV Moulene
(Directors)

During the year, GR Colquhoun & MV Moulene made payments on behalf of the company totalling £416 (2016: £1,411,858) and the company repaid £85,000 (2016: £nil). At the balance sheet date the amount due to GR Colquhoun & MV Moulene was £1,327,274 (2016: £1,411,858).
 

Page 13

MGMA Properties Limited

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

11	Transition to FRS 102 Section 1A

This is the first year that the company has presented its results under FRS 102 section 1A. The last financial statements under UK GAAP were for the period ended 30 November 2016. The date of transition to FRS 102 section 1A was 5 November 2015. There are no transitional adjustments arising from the first time adoption of FRS 102 section 1A.

Page 14

MGMA Properties Limited

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

	2017 £	2016 £
Turnover	43,680	27,040
Cost of sales	(9,940)	(4,559)
Gross profit	33,740	22,481
Administrative expenses
General administrative expenses	(2,945)	(33,019)
Depreciation costs	(322)	(243)
	(3,267)	(33,262)
Operating profit/(loss)	30,473	(10,781)
Profit/(loss) before tax	30,473	(10,781)

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

Page 15

MGMA Properties Limited

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

2017 £

2016 £

Turnover
Rental income	43,680	27,040

Cost of sales
Service charge	2,908	1,454
Estate agent fees	7,032	3,105
	9,940	4,559

General administrative expenses
Rent and rates	-	1,123
Use of home as office	416	440
Repairs and maintenance	494	29,581
Accountancy fees	2,013	1,875
Bank charges	22	-
	2,945	33,019

Depreciation costs
Depreciation of fixtures and fittings (owned)	322	243

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

Page 16