Peter Mays (Investments) Limited
Annual Report and Unaudited Financial Statements
For the year ended 31 December 2019
Company Registration No. 00210053 (England and Wales)
Peter Mays (Investments) Limited
Company Information
Directors
A.M. Heaps
S. E. Crowther
P. N. Watson
E. E. Dean
G. K. Ingram
Secretary
M. J. Bryne
Company number
00210053
Registered office
Betchworth House
57-65 Station Road
Redhill
Surrey
RH1 1DL
Accountants
Moore Kingston Smith LLP
Betchworth House
57-65 Station Road
Redhill
Surrey
RH1 1DL
Peter Mays (Investments) Limited
Directors' Report
For the year ended 31 December 2019
Page 1
The directors present their annual report and financial statements for the year ended 31 December 2019.
Principal activities
The principal activity of the company throughout the year was that of property investment.
Directors
The directors who held office during the year and up to the date of signature of the financial statements were as follows:
A.M. Heaps
S. E. Crowther
P. N. Watson
E. E. Dean
G. K. Ingram
This report has been prepared in accordance with the provisions applicable to companies entitled to the small companies exemption.
By order of the board
M. J. Bryne
Secretary
30 March 2020
Peter Mays (Investments) Limited
Chartered Accountants' Report to the Board of Directors on the preparation of the Unaudited Statutory Financial Statements of Peter Mays (Investments) Limited for the year ended 31 December 2019
Page 2
In order to assist you to fulfil your duties under the Companies Act 2006, we have prepared for your approval the financial statements of Peter Mays (Investments) Limited for the year ended 31 December 2019 which comprise the Profit And Loss Account, the Balance Sheet, the Statement of Changes in Equity and the related notes 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 Peter Mays (Investments) Limited, as a body, in accordance with the terms of our engagement letter dated 28 February 2017. Our work has been undertaken solely to prepare for your approval the financial statements of Peter Mays (Investments) Limited and state those matters that we have agreed to state to the Board of Directors of Peter Mays (Investments) Limited, as a body, in this report in accordance with ICAEW Technical Release 07/16 AAF as detailed at icaew.com. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than Peter Mays (Investments) Limited and its Board of Directors as a body, for our work or for this report.
It is your duty to ensure that Peter Mays (Investments) Limited has kept adequate accounting records and to prepare statutory financial statements that give a true and fair view of the assets,
liabilities, financial position and profit of Peter Mays (Investments) Limited. You consider that Peter Mays (Investments) 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 financial statements of Peter Mays (Investments) 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 financial statements.
Moore Kingston Smith LLP
1 April 2020
Chartered Accountants
Betchworth House
57-65 Station Road
Redhill
Surrey
RH1 1DL
Peter Mays (Investments) Limited
Profit and Loss Account
For the year ended 31 December 2019
Page 3
2019
2018
Notes
£
£
Turnover
311,904
223,900
Administrative expenses
(79,692)
(83,034)
Other operating income- revaluation of investment properties
250,000
-
Operating profit
482,212
140,866
Interest receivable and similar income
910
653
Interest payable and similar expenses
4
(21,090)
(21,090)
Profit before taxation
462,032
120,429
Taxation
5
(91,874)
(26,889)
Profit for the financial year
370,158
93,540
Total comprehensive income for the year
370,158
93,540
Peter Mays (Investments) Limited
Balance Sheet
As at 31 December 2019
Page 4
2019
2018
Notes
£
£
£
£
Fixed assets
Investment properties
7
4,165,000
3,915,000
Current assets
Debtors
8
59
189
Cash at bank and in hand
243,003
198,053
243,062
198,242
Creditors: amounts falling due within one year
9
(73,761)
(56,599)
Net current assets
169,301
141,643
Total assets less current liabilities
4,334,301
4,056,643
Creditors: amounts falling due after more than one year
10
(211,500)
(211,500)
Provisions for liabilities
11
(719,482)
(671,982)
Net assets
3,403,319
3,173,161
Capital and reserves
Called up share capital
12
3,500
3,500
Revaluation reserve
3,326,526
3,124,026
Capital redemption reserve
3,426
3,426
Profit and loss reserves
69,867
42,209
Total equity
3,403,319
3,173,161
For the financial year ended 31 December 2019 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.
T
he directors acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and the preparation of financial statements.
T
he members have not required the company to obtain an audit of its financial statements for the year in question in accordance with section 476
.
These financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies' regime.
Peter Mays (Investments) Limited
Balance Sheet (Continued)
As at 31 December 2019
Page 5
The financial statements were approved by the board of directors and authorised for issue on 30 March 2020 and are signed on its behalf by:
A.M. Heaps
Director
Company Registration No. 00210053
Peter Mays (Investments) Limited
Statement of Changes in Equity
For the year ended 31 December 2019
Page 6
Share capital
Revaluation reserve
Capital redemption reserve
Profit and loss reserves
Total
Notes
£
£
£
£
£
Balance at 1 January 2018
3,500
3,124,026
3,426
53,669
3,184,621
Year ended 31 December 2018:
Profit and total comprehensive income for the year
-
-
-
93,540
93,540
Dividends
6
-
-
-
(105,000)
(105,000)
Balance at 31 December 2018
3,500
3,124,026
3,426
42,209
3,173,161
Year ended 31 December 2019:
Profit and total comprehensive income for the year
-
-
-
370,158
370,158
Dividends
6
-
-
-
(140,000)
(140,000)
Transfer of the deferred tax liability movement
-
(47,500)
-
47,500
-
Transfer of the revaluation gain
-
250,000
-
(250,000)
-
Balance at 31 December 2019
3,500
3,326,526
3,426
69,867
3,403,319
Peter Mays (Investments) Limited
Notes to the Financial Statements
For the year ended 31 December 2019
Page 7
1
Accounting policies
Company information
Peter Mays (Investments) Limited is a
private
company
limited by shares
incorporated in England and Wales.
The registered office is
Betchworth House, 57-65 Station Road, Redhill, Surrey, RH1 1DL.
1.1
Accounting convention
These financial statements have been prepared in accordance with Section 1A of FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006 as applicable to companies subject to the small companies regime.
The financial statements are prepared in
sterling
, which is the functional currency of the company.
Monetary a
mounts
in these financial statements are
rounded to the nearest pound.
The financial statements have been prepared on the historical cost convention, modified to include investment properties and certain financial instruments at fair value. The principal accounting policies adopted are set out below.
1.2
Turnover
Turnover represents rents receivable during the year.
1.3
Investment properties
Investment property, which is property held to earn rentals and/or for capital appreciation, is measured using the fair value model and stated at its fair value a
t
the reporting end date.
The surplus or deficit on revaluation is recognised in the profit and loss account.
The cumulative surplus on revaluation whilst recognised in profit or loss, is not distributable. The Company transfers such revaluation surplus to a separate revaluation reserve within retained earnings together with the associated deferred tax annually.
Although this accounting policy is in accordance with FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" ("FRS 102"), it is a departure from the general requirements of the Companies Act 2006 for all tangible fixed assets to be depreciated. In the opinion of the directors compliance with the standard is necessary for the financial statements to give a true and fair view. Depreciation or amortisation is only one of the many factors reflected in the annual valuation and the amount of this which might otherwise have been charged cannot be separately identified or quantified.
1.4
Cash and cash equivalents
Cash and cash equivalents include cash in hand and balances held at call with banks.
1.5
Financial instruments
The company only has financial instruments classified as basic and measured at amortised cost. The company has no financial instruments that are classified as 'other' or financial instruments measured at fair value.
1.6
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.
Peter Mays (Investments) Limited
Notes to the Financial Statements (Continued)
For the year ended 31 December 2019
1
Accounting policies
(Continued)
Page 8
1.7
Taxation
The tax expense represents the sum of the tax currently payable and deferred tax.
Current tax
The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The
company’s
liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.
Deferred tax
Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.
The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset when the
company
has a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.
2
Judgements and key sources of estimation uncertainty
In the application of the company’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.
Critical judgements
The following judgements (apart from those involving estimates) have had the most significant
effect on amounts recognised in the financial statements.
Valuation of investment properties
The Company uses the valuation performed by independent valuers as the fair value of its investment properties. The investment properties were valued on an open market basis by reference to market evidence of transaction prices for similar properties. The investment properties owned by the company were valued as at 25 December 2016. One of the properties was re-valued in January 2020. The Directors do not consider the valuation to have materially changed from these dates.
Peter Mays (Investments) Limited
Notes to the Financial Statements (Continued)
For the year ended 31 December 2019
Page 9
3
Employees
The average monthly number of persons (including directors) employed by the company during the year was 5 (2018 - 5).
4
Interest payable
2019
2018
£
£
Interest payable includes the following:
Dividends paid on preference shares classified as financial liabilities
21,090
21,090
5
Taxation
2019
2018
£
£
Current tax
UK corporation tax on profits for the current period
44,374
26,889
Deferred tax
Arising on the gain on revaluation of investment properties
47,500
-
Total tax charge
91,874
26,889
6
Dividends
2019
2018
£
£
Interim paid
140,000
105,000
Peter Mays (Investments) Limited
Notes to the Financial Statements (Continued)
For the year ended 31 December 2019
Page 10
7
Investment property
2019
£
Fair value
At 1 January 2019
3,915,000
Revaluations
250,000
At 31 December 2019
4,165,000
The freehold properties were valued by professional external valuers, White & Sons, on an open market basis at 25 December 2016 and are included at their valuation amount. One of the properties was re-valued in January 2020 by White & Sons, on an open market basis.
In the opinion of the directors, the market value of land and buildings is not materially different from the figures at which they are stated in the financial statements.
Historical cost of the land and buildings is £126,241 (2018 - £126,241).
8
Debtors
2019
2018
Amounts falling due within one year:
£
£
Trade debtors
-
130
Other debtors
59
59
59
189
9
Creditors: amounts falling due within one year
2019
2018
£
£
Trade creditors
20,276
20,276
Corporation tax
44,374
26,889
Other creditors
9,111
9,434
73,761
56,599
Peter Mays (Investments) Limited
Notes to the Financial Statements (Continued)
For the year ended 31 December 2019
Page 11
10
Creditors: amounts falling due after more than one year
2019
2018
£
£
Preference shares classed as a financial liability
211,500
211,500
Amounts included above which fall due after five years are as follows:
Payable other than by instalments
211,500
211,500
11
Deferred taxation
Deferred tax assets and liabilities are offset where the company has a legally enforceable right to do so. The following is the analysis of the deferred tax balances (after offset) for financial reporting purposes:
Liabilities
Liabilities
2019
2018
Balances:
£
£
Revaluation gain on investment properties
719,482
671,982
2019
Movements in the year:
£
Liability at 1 January 2019
671,982
Charge to profit or loss
47,500
Liability at 31 December 2019
719,482
Peter Mays (Investments) Limited
Notes to the Financial Statements (Continued)
For the year ended 31 December 2019
Page 12
12
Called up share capital
2019
2018
£
£
Ordinary share capital
Authorised
3,500 Ordinary shares of £1 each
3,500
3,500
Issued and fully paid
3,500 Ordinary shares of £1 each
3,500
3,500
Preference share capital
Authorised
1,500 5.6% cumulative preference shares of £1 each
1,500
1,500
210,000 10% cumulative second preference shares of £1 each
210,000
210,000
211,500
211,500
Issued and fully paid
5.6% cumulative preference shares of £1 each
1,500
1,500
10% cumulative second preference shares of £1 each
210,000
210,000
211,500
211,500
The 5.6% cumulative preference shares confer a priority right to a 5.6% dividend but no right to further participation in profits. On winding up, they rank in priority in respect of dividends and capital but do not confer further rights to participation in assets.
The 10% cumulative second preference shares confer similar rights and rank before ordinary shares but after the first preference shares.
All three classes enjoy equal voting rights.
Peter Mays (Investments) Limited
Notes to the Financial Statements (Continued)
For the year ended 31 December 2019
Page 13
13
Related party transactions
During the year A. M. Heaps, a director of the company, received dividends of £26,000 (2018 - £19,500) on her holding of ordinary shares, £40 (2017 - £40) on her holding of 5.6% preference shares, and £6,295 (2017 - £6,295) on her holding of 10% preference shares.
During the year S. E. Crowther, a director of the company, received dividends of £11,680 (2018 - £8,760) on her holding of ordinary shares, £2 (2018 - £2) on her holding of 5.6% preference shares, and £2,200 (2018 - £2,200) on her holding of 10% preference shares.
During the year P. N. Watson, a director of the company, received £10 (2018 - £10) on his holding of 10% preference shares.
During the year E. E. Dean, a director of the company, received £3,000 (2018 - £2,250) on her holding of ordinary shares.
During the year G. K. Ingram, a director of the company, received dividends of £8,000 (2018 - £6,000) on her holding of ordinary shares.
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