Marnan Holdings Limited 31/12/2020 iXBRL

Marnan Holdings Limited 31/12/2020 iXBRL

MARNAN HOLDINGS LIMITED - Company Information

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Company registration number: 02551108
Marnan Holdings Limited
Unaudited financial statements
31 December 2020
Marnan Holdings Limited
Contents
Directors and other information
Directors report
Profit and loss
Balance sheet
Statement of changes in equity
Notes to the financial statements
Marnan Holdings Limited
Directors and other information
Directors M J Taylor
N J Taylor
Secretary Company Secretarial Services Limited
Company number 02551108
Registered office Black Corner
Balcombe Road
Horley
Surrey, England
RH6 9SP
Marnan Holdings Limited
Directors report
Year ended 31 December 2020
The directors present their report and the unaudited financial statements of the company for the year ended 31 December 2020.
Incorporation
The principal activity of the company continued to be that of property investment.
Directors
The directors who served the company during the year were as follows:
M J Taylor
N J Taylor
Covid-19 pandemic
The Covid-19 pandemic has had minimal effect on the net profit of the business to the reporting date. The pandemic has triggered a recession within the German economy which may affect property valuations and income in the next reporting period.
Small company provisions
This report has been prepared in accordance with the provisions applicable to companies entitled to the small companies exemption.
This report was approved by the board of directors on 30 September 2021 and signed on behalf of the board by:
Company Secretarial Services Limited
Secretary
Marnan Holdings Limited
Profit and loss
Year ended 31 December 2020
2020 2019
Note £ £
Turnover 4 290,109 287,015
Cost of sales - -
Administrative expenses 48,398 ( 126,433)
Other operating income 190 -
_______ _______
Operating profit 5 338,697 160,582
Other interest receivable and similar income 21,825 28,895
Profit before taxation 360,522 189,477
Tax on profit 7 ( 53,599) ( 55,879)
_______ _______
Profit after taxation 306,923 133,598
Other taxes not shown under the above ( 18,577) -
_______ _______
Profit for the financial year and total comprehensive income 288,346 133,598
_______ _______
All the activities of the company are from continuing operations.
Marnan Holdings Limited
Balance sheet
31 December 2020
2020 2019
Note £ £ £ £
Fixed assets
Tangible assets 8 4,136,873 4,156,971
_________ _________
4,136,873 4,156,971
Current assets
Debtors 9 1,295,978 1,212,042
Cash at bank and in hand 786,731 540,717
_________ _________
2,082,709 1,752,759
Creditors: amounts falling due
within one year 10 ( 72,802) ( 51,296)
_________ _________
Net current assets 2,009,907 1,701,463
_________ _________
Total assets less current liabilities 6,146,780 5,858,434
Provisions for liabilities 11 ( 67,000) ( 67,000)
_________ _________
Net assets 6,079,780 5,791,434
_________ _________
Capital and reserves
Called up share capital 13 300,000 300,000
Revaluation reserve 2,858,411 2,858,411
Profit and loss account 2,921,369 2,633,023
_________ _________
Shareholders funds 6,079,780 5,791,434
_________ _________
For the year ending 31 December 2020 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 financial statements for the year in question in accordance with section 476;
- The directors acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and the preparation of financial statements.
These financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies' regime and in accordance with Section 1A of FRS 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'.
These financial statements were approved by the board of directors and authorised for issue on 30 September 2021 , and are signed on behalf of the board by:
M J Taylor
Director
Company registration number: 02551108
Marnan Holdings Limited
Statement of changes in equity
Year ended 31 December 2020
Called up share capital Revaluation reserve Profit and loss account Total
£ £ £ £
At 1 January 2019 300,000 2,858,411 2,499,425 5,657,836
Profit for the year 133,598 133,598
_______ _________ _________ _________
Total comprehensive income for the year - - 133,598 133,598
_______ _________ _________ _________
At 31 December 2019 and 1 January 2020 300,000 2,858,411 2,633,023 5,791,434
Profit for the year 288,346 288,346
_______ _________ _________ _________
Total comprehensive income for the year - - 288,346 288,346
_______ _________ _________ _________
At 31 December 2020 300,000 2,858,411 2,921,369 6,079,780
_______ _________ _________ _________
Marnan Holdings Limited
Notes to the financial statements
Year ended 31 December 2020
1. General information
The company is a private company limited by shares, registered in UK (England & Wales). The address of the registered office is Black Corner, Balcombe Road, Horley, Surrey, England, RH6 9SP.
2. Statement of compliance
These financial statements have been prepared in compliance with the provisions of FRS 102, Section 1A, 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'. The Triennial review 2017 amendments to the standard have been early adopted.
3. Accounting policies
Basis of preparation
The financial statements have been prepared on the historical cost basis, as modified by the revaluation of investment properties measured at fair value through profit or loss.The financial statements have been prepared in sterling, which is the functional currency of the entity.
Turnover
Turnover is measured at the fair value of the consideration received or receivable for goods supplied and services rendered, net of discounts and Value Added Tax.
Revenue from the sale of goods is recognised when the significant risks and rewards of ownership have transferred to the buyer (usually on despatch of the goods); the amount of revenue can be measured reliably; it is probable that the associated economic benefits will flow to the entity; and the costs incurred or to be incurred in respect of the transactions can be measured reliably.
Taxation
The taxation expense represents the aggregate amount of current and deferred tax recognised in the reporting period. Tax is recognised in the statement of comprehensive income, except to the extent that it relates to items recognised in other comprehensive income or directly in capital and reserves. In this case, tax is recognised in other comprehensive income or directly in capital and reserves, respectively. Current tax is recognised on taxable profit for the current and past periods. Current tax is measured at the amounts of tax expected to pay or recover using the tax rates and laws that have been enacted or substantively enacted at the reporting date.
Deferred tax is recognised in respect of all timing differences at the reporting date. Unrelieved tax losses and other 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. Deferred tax is measured using the tax rates and laws that have been enacted or substantively enacted by the reporting date that are expected to apply to the reversal of the timing difference.
Tangible assets
tangible assets are initially recorded at cost, and are subsequently stated at cost less any accumulated depreciation and impairment losses. Any tangible assets carried at revalued amounts are recorded at the fair value at the date of revaluation less any subsequent accumulated depreciation and subsequent accumulated impairment losses. An increase in the carrying amount of an asset as a result of a revaluation, is recognised in other comprehensive income and accumulated in capital and reserves, except to the extent it reverses a revaluation decrease of the same asset previously recognised in profit or loss. A decrease in the carrying amount of an asset as a result of revaluation is recognised in other comprehensive income to the extent of any previously recognised revaluation increase accumulated in capital and reserves in respect of that asset. Where a revaluation decrease exceeds the accumulated revaluation gains accumulated in capital and reserves in respect of that asset, the excess shall be recognised in profit or loss.
Depreciation
Depreciation is calculated so as to write off the cost or valuation of an asset, less its residual value, over the useful economic life of that asset as follows:
Freehold property - 3 % straight line
If there is an indication that there has been a significant change in depreciation rate, useful life or residual value of tangible assets, the depreciation is revised prospectively to reflect the new estimates.
Impairment
A review for indicators of impairment is carried out at each reporting date, with the recoverable amount being estimated where such indicators exist. Where the carrying value exceeds the recoverable amount, the asset is impaired accordingly. Prior impairments are also reviewed for possible reversal at each reporting date. When it is not possible to estimate the recoverable amount of an individual asset, an estimate is made of the recoverable amount of the cash-generating unit to which the asset belongs. The cash-generating unit is the smallest identifiable group of assets that includes the asset and generates cash inflows that are largely independent of the cash inflows from other assets or groups of assets.
Provisions
Provisions are recognised when the entity has an obligation at the reporting date as a result of a past event; it is probable that the entity will be required to transfer economic benefits in settlement and the amount of the obligation can be estimated reliably. Provisions are recognised as a liability in the Balance sheet and the amount of the provision as an expense. Provisions are initially measured at the best estimate of the amount required to settle the obligation at the reporting date and subsequently reviewed at each reporting date and adjusted to reflect the current best estimate of the amount that would be required to settle the obligation. Any adjustments to the amounts previously recognised are recognised in profit or loss unless the provision was originally recognised as part of the cost of an asset. When a provision is measured at the present value of the amount expected to be required to settle the obligation, the unwinding of the discount is recognised in finance costs in profit or loss in the period it arises.
Financial instruments
A financial asset or a financial liability is recognised only when the company becomes a party to the contractual provisions of the instrument. Basic financial instruments are initially recognised at the transaction price, unless the arrangement constitutes a financing transaction, where it is recognised at the present value of the future payments discounted at a market rate of interest for a similar debt instrument. Debt instruments are subsequently measured at amortised cost. Where investments in non-convertible preference shares and non-puttable ordinary shares or preference shares are publicly traded or their fair value can otherwise be measured reliably, the investment is subsequently measured at fair value with changes in fair value recognised in profit or loss. All other such investments are subsequently measured at cost less impairment. Other financial instruments, including derivatives, are initially recognised at fair value, unless payment for an asset is deferred beyond normal business terms or financed at a rate of interest that is not a market rate, in which case the asset is measured at the present value of the future payments discounted at a market rate of interest for a similar debt instrument. Other financial instruments are subsequently measured at fair value, with any changes recognised in profit or loss, with the exception of hedging instruments in a designated hedging relationship.
Financial assets that are measured at cost or amortised cost are reviewed for objective evidence of impairment at the end of each reporting date. If there is objective evidence of impairment, an impairment loss is recognised in profit or loss immediately. For all equity instruments regardless of significance, and other financial assets that are individually significant, these are assessed individually for impairment. Other financial assets or either assessed individually or grouped on the basis of similar credit risk characteristics. Any reversals of impairment are recognised in profit or loss immediately, to the extent that the reversal does not result in a carrying amount of the financial asset that exceeds what the carrying amount would have been had the impairment not previously been recognised.
4. Turnover
The whole of the turnover is attributable to the principal activity of the company wholly undertaken in the United Kingdom.
5. Operating profit
Operating profit is stated after charging/(crediting):
2020 2019
£ £
Depreciation of tangible assets 20,098 12,000
Foreign exchange differences ( 98,828) 93,788
_______ _______
6. Employee numbers
The average number of persons employed by the company during the year amounted to Nil (2019: Nil).
7. Tax on profit
Major components of tax expense
2020 2019
£ £
Current tax:
UK current tax expense 23,036 11,011
Foreign current tax expense 30,563 45,089
Adjustments in respect of prior periods - ( 221)
_______ _______
Total foreign tax 30,563 44,868
_______ _______
Tax on profit 53,599 55,879
_______ _______
The company is subject to the small companies rate of corporation tax in the UK of 19% (31 December 2019: 19%), and corporate income tax at the rate of 15% (31 December 2019: 15%) in Germany. An additional charge known as the solidarity surcharge, being mainly a contribution towards the cost of the reunification of Germany, is levied by means of applying 5.5% to the German tax liability.
Reconciliation of tax expense
2020 2019
£ £
Profit before taxation 360,522 189,477
_______ _______
Profit multiplied by rate of tax 68,499 36,001
Adjustments in respect of prior periods - ( 221)
Effect of expenses not deductible for tax purposes 58 18,010
Effect of capital allowances and depreciation 3,819 2,280
Effect of revenue exempt from tax ( 18,777) ( 191)
_______ _______
Tax on profit 53,599 55,879
_______ _______
8. Tangible assets
Freehold property Total
£ £
Cost
At 1 January 2020 and 31 December 2020 4,304,271 4,304,271
_________ _________
Depreciation
At 1 January 2020 147,300 147,300
Charge for the year 20,098 20,098
_________ _________
At 31 December 2020 167,398 167,398
_________ _________
Carrying amount
At 31 December 2020 4,136,873 4,136,873
_________ _________
At 31 December 2019 4,156,971 4,156,971
_________ _________
The value of the land and buildings, situated at Monchengladback, Germany, is based upon a 'going concern property valuation' dated 12 July 2018 by Kenstone Real Estate Valuers, an independent real estate consultant. Relying upon that valuation, the directors are of the opinion that the Euro value is €4,706,101 (31 December 2019: €4,706,101). The valuation has been arrived at after adjustment of the directors valuation of buildings not owned by the company and is translated to Sterling at the 31 December 2017 exchange rate of £1.00 / €1.1256.On 8 June 2007 the company granted an option to Frische whereby Frische may purchase the land and buildings situated at Ruckes 90, 41238 Monchengladbach, Germany, at any time up to 31 July 2022 for the going concern value of the entire property (Sachwert) less the net book value of the buildings already owned by them, being €2,435,634 as at 31 December 2017, subject to a minimum price of €3,600,000.The tenancy agreement was revised in September 2020 such that it now expires on 31 July 2024 and is fixed at the current level of monthly rent.
9. Debtors
2020 2019
£ £
Prepayments and accrued income 2,579 2,483
Amounts owed by a connected company 1,276,872 1,206,003
Other debtors 16,527 3,556
_________ _________
1,295,978 1,212,042
_________ _________
The amount due from a connected company is unsecured, repayable by 16 October 2022 (and thereafter rolled forward annually subject to mutual consent) and bears interest at the rate of 1.5% over the Bank of England base rate being 0.10% (0.75% 1 January 2020, 0.25% at 11 March 2020, and thereafter 0.10% from 19 March 2020). The advance of €1,433,000 was agreed on 17 October 2017 and the balance on the facility at the reporting date was €1,416,047 (31 December 2019: €1,416,047).Interest of €24,556 (31 December 2019: €31,946) was receivable for the year, the balance outstanding at the balance sheet date being €4,909.
10. Creditors: amounts falling due within one year
2020 2019
£ £
Trade creditors 30,768 29,202
Accruals and deferred income 5,561 6,286
Corporation tax 18,667 11,011
Other creditors 17,806 4,797
_______ _______
72,802 51,296
_______ _______
Other creditors includes an amount of £17,632 due to the Trustees of The Equalcross Settlement which is unsecured, interest-free and repayable on demand.
11. Provisions
Deferred tax (note 12) Total
£ £
At 1 January 2020 and 31 December 2020 67,000 67,000
_______ _______
12. Deferred tax
The deferred tax included in the Balance sheet is as follows:
2020 2019
£ £
Included in provisions (note 11) 67,000 67,000
_______ _______
The deferred tax account consists of the tax effect of timing differences in respect of:
2020 2019
£ £
Accelerated capital allowances 67,000 67,000
_______ _______
13. Called up share capital
Authorised share capital
2020 2019
No £ No £
Ordinary shares of £ 0.25 each 1,200,000 300,000 1,200,000 300,000
12% Non-Cumulative Redeemable Preference shares of £ 1.00 each 800,000 800,000 800,000 800,000
_________ _______ _________ _______
2,000,000 1,100,000 2,000,000 1,100,000
_________ _______ _________ _______
Issued, called up and fully paid
2020 2019
No £ No £
Ordinary shares of £ 0.25 each 1,200,000 300,000 1,200,000 300,000
_________ _______ _________ _______
14. Events after the end of the reporting period
Litigation was undertaken against the company by a former director in respect of an invoice dated 19 October 2020 in the sum of €6,524 (£5,914 at the rate of 1.103081 Eur/GBP). Settlement was eventually agreed in favour of the litigant.
15. Controlling party
The Trustees of the Equalcross Settlement are the ultimate controlling party by virtue of their holding 100% of the issued share capital of the company.
Marnan Holdings Limited
Detailed expense statement
Year ended 31 December 2020
2020 2019
£ £
Administrative expenses
Telephone (2,750) (2,994)
Legal and professional Germany (8,066) -
Administration fees (18,375) (13,362)
Accountancy fees 1,000 (3,500)
Accountancy fees Germany (1,355) -
Bank charges (63) (215)
Bank charges Germany (244) (232)
Bank charges The Netherlands - (209)
Profit on exchange 98,828 1,003
Loss on exchange - (94,791)
General expenses (173) (133)
General expenses Germany (306) -
Depreciation Germany (20,098) (12,000)
_______ _______
48,398 ( 126,433)
_______ _______