Company Registration No. 02187951 (England and Wales)
MAGNARENT LIMITED
UNAUDITED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2019
PAGES FOR FILING WITH REGISTRAR
MAGNARENT LIMITED
CONTENTS
Page
Balance sheet
1 - 2
Statement of changes in equity
3
Notes to the financial statements
4 - 8
MAGNARENT LIMITED
BALANCE SHEET
AS AT
30 JUNE 2019
30 June 2019
- 1 -
2019
2018
Notes
£
£
£
£
Fixed assets
Investment properties
2
2,169,950
2,169,950
Current assets
Debtors
3
44,965
51,460
Cash at bank and in hand
360
346
45,325
51,806
Creditors: amounts falling due within one year
4
(89,407)
(92,986)
Net current liabilities
(44,082)
(41,180)
Total assets less current liabilities
2,125,868
2,128,770
Creditors: amounts falling due after more than one year
5
(1,491,970)
(1,508,519)
Provisions for liabilities
(75,000)
(75,000)
Net assets
558,898
545,251
Capital and reserves
Called up share capital
6
2
2
Profit and loss reserves
558,896
545,249
Total equity
558,898
545,251
The directors of the company have elected not to include a copy of the profit and loss account within the financial statements.
true
For the financial year ended 30 June 2019 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.
The directors acknowledge their responsibilities for complying with the requirements of the Companies Act 2006 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 and delivered in accordance with the provisions applicable to companies subject to the small companies regime.
MAGNARENT LIMITED
BALANCE SHEET (CONTINUED)
AS AT
30 JUNE 2019
30 June 2019
- 2 -
The financial statements were approved by the board of directors and authorised for issue on 16 March 2020 and are signed on its behalf by:
Mr T F Rochelle
Director
Company Registration No. 02187951
MAGNARENT LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 JUNE 2019
- 3 -
Share capital
Profit and loss reserves
Total
£
£
£
Balance at 1 July 2017
2
517,557
517,559
Year ended 30 June 2018:
Profit and total comprehensive income for the year
-
27,692
27,692
Balance at 30 June 2018
2
545,249
545,251
Year ended 30 June 2019:
Profit and total comprehensive income for the year
-
13,647
13,647
Balance at 30 June 2019
2
558,896
558,898
MAGNARENT LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2019
- 4 -
1
Accounting policies
Company information
Magnarent Limited is a
private
company
limited by shares
incorporated in England and Wales.
The registered office is
No 4 Castle Court 2, Castlegate Way, Dudley, West Midlands, DY1 4RH.
1.1
Accounting convention
The financial statements are prepared under the historical cost convention.The accounts have been prepared on the basis that the company is able to continue to trade. This is dependent on the continued support from a company under control which will pay any liabilities that it is unable to meet itself.
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 £.
The financial statements have been prepared under the historical cost convention, modified to include the revaluation of freehold properties and to include investment properties and certain financial instruments at fair value. The principal accounting policies adopted are set out below.
1.2
Turnover
Turnover is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business
, and
is shown net of VAT and other sales related taxes
.
The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.
Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer
(usually on dispatch of the goods)
, the amount of revenue can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the entity and the costs incurred or to be incurred in respect of the transaction can be measured reliably.
1.3
Investment properties
Investment property, which is property held to earn rentals and/or for capital appreciation, is initially recognised at cost, which includes the purchase cost and any directly attributable expenditure
. Subsequently it is measured
at fair value a
t
the reporting end date.
Changes in fair value are recognised in profit or loss.
Where fair value cannot be achieved without undue cost or effort, investment property is accounted for as tangible fixed assets.
1.4
Cash and cash equivalents
Cash and cash equivalents
are basic financial assets
and
include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.
MAGNARENT LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2019
1
Accounting policies
(Continued)
- 5 -
1.5
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.
Basic 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.
Classification of financial liabilities
Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.
Basic financial liabilities
Basic financial liabilities, including creditors, bank loans, loans from
fellow group companies and preference shares that are classified as debt, 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
paymen
ts 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. A
m
ounts 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.
1.6
Equity instruments
Equity instruments issued by the company are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.
1.7
Derivatives
Derivatives are initially recognised at fair value at the date a derivative contract is entered into and are subsequently remeasured to fair value at each reporting end date. The resulting gain or loss is recognised in profit or loss immediately unless the derivative is designated and effective as a hedging instrument, in which event the timing of the recognition in profit or loss depends on the nature of the hedge relationship.
A derivative with a positive fair value is recognised as a financial asset, whereas a derivative with a negative fair value is recognised as a financial liability.
1.8
Taxation
The tax expense represents the sum of the tax currently payable and deferred tax.
MAGNARENT LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2019
1
Accounting policies
(Continued)
- 6 -
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
Investment property
2019
£
Fair value
At 1 July 2018 and 30 June 2019
2,169,950
The fair value of the investment property has been arrived at on the basis of a valuation carried out at 30 June 2019 by the directors, The valuation was made on an open market value basis by reference to market evidence of transaction prices for similar properties.
3
Debtors
2019
2018
Amounts falling due within one year:
£
£
Corporation tax recoverable
4,071
10,566
Amounts owed by group undertakings and undertakings in which the company has a participating interest
40,894
40,894
44,965
51,460
MAGNARENT LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2019
- 7 -
4
Creditors: amounts falling due within one year
2019
2018
£
£
Bank loans
16,000
16,000
Trade creditors
3,846
2,042
Corporation tax
3,201
6,496
Other creditors
66,360
68,448
89,407
92,986
5
Creditors: amounts falling due after more than one year
2019
2018
£
£
Bank loans and overdrafts
1,491,970
1,508,519
Bank indebtedness is secured by a fixed charge over freehold property. Bank loans comprise two repayable over 20 years and 9 years respectively with interest charged at 2.5% over base (£36,668 and £53,000) and the remainder (£1,418,301) which are interest only payments charged at 1.5% over base.
Creditors which fall due after five years are as follows:
2019
2018
£
£
Payable by instalments
13,000
21,000
Payable other than by instalments
1,486,170
1,487,519
1,499,170
1,508,519
6
Called up share capital
2019
2018
£
£
Ordinary share capital
Issued and fully paid
2 Ordinary shares of £1 each
2
2
MAGNARENT LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2019
- 8 -
7
Related party transactions
Companies under common ownership and common control.
Eiger Holdings Limited is owned by T Rochelle & C Finn. Other debtors includes a loan to
Eiger Holdings Limited
£18,000 (2018 £18,000
). There are no specific terms to this loan with regard to interest or repayment.
Carjan Properties Limited is owned by T Rochelle and C Finn. Other debtors includes a loan to
Carjan Properties Limited
£22,894 (2018 £22,894
). There are no specific terms to this loan with regard to interest or repayment.
8
Directors' transactions
Director's loan accounts.
T Rochelle and C Finn both have loan accounts with credit balances of £33,180 (2018 £34,224
). There are no specific terms to these loans with regard to interest or repayment.
9
Parent company
The ultimate controlling party is the directors.