The Metropolitan Land and House Company Limited - Period Ending 2018-06-30

Registration number: 00012377

The Metropolitan Land and House Company Limited

Annual Report and Unaudited Financial Statements

for the Year Ended 30 June 2018

Chartered Accountants

The Metropolitan Land and House Company Limited

Contents

Company Information	1
Accountants' Report	2
Balance Sheet	3
Notes to the Financial Statements	4 to 9

The Metropolitan Land and House Company Limited

Company Information

Directors

R Soole R C Soole F P M Guillo-Lohan R J Pickering

Company secretary

R C Soole

Registered office

Unity Chambers 34 High East Street Dorchester Dorset DT1 1HA

Accountants

Edwards & Keeping Chartered Accountants Unity Chambers 34 High East Street Dorchester Dorset DT1 1HA

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Chartered Accountants' Report to the Board of Directors on the Preparation of the Unaudited Statutory Accounts of
The Metropolitan Land and House Company Limited
for the Year Ended 30 June 2018

In order to assist you to fulfil your duties under the Companies Act 2006, we have prepared for your approval the accounts of The Metropolitan Land and House Company Limited for the year ended 30 June 2018 as set out on pages 3 to 9 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 The Metropolitan Land and House Company Limited, as a body, in accordance with the terms of our engagement letter dated 4 September 2013. Our work has been undertaken solely to prepare for your approval the accounts of The Metropolitan Land and House Company Limited and state those matters that we have agreed to state to the Board of Directors of The Metropolitan Land and House Company 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 The Metropolitan Land and House Company Limited and its Board of Directors as a body for our work or for this report.

It is your duty to ensure that The Metropolitan Land and House Company 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 The Metropolitan Land and House Company Limited. You consider that The Metropolitan Land and House Company 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 The Metropolitan Land and House Company 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.

Edwards & Keeping
Chartered Accountants
Unity Chambers
34 High East Street
Dorchester
Dorset
DT1 1HA

2 October 2018

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The Metropolitan Land and House Company Limited

(Registration number: 00012377)
Balance Sheet as at 30 June 2018

	Note	2018		2017
		£	£	£	£
Fixed assets
Tangible assets	4		8		8
Investment property	5		5,118,079		5,063,565
Investments	6		100		100
			5,118,187		5,063,673
Current assets
Debtors	7	29,114		30,529
Cash at bank and in hand		53,222		10,421
		82,336		40,950
Creditors: Amounts falling due within one year	8	(150,523)		(121,584)
Net current liabilities			(68,187)		(80,634)
Total assets less current liabilities			5,050,000		4,983,039
Creditors: Amounts falling due after more than one year	8		(193,060)		(151,799)
Provisions for liabilities			(240,706)		(239,689)
Net assets			4,616,234		4,591,551
Capital and reserves
Called up share capital		38,056		38,056
Share premium reserve		348,389		348,389
Capital redemption reserve		280		280
Fair value reserve		2,333,914		2,334,931
Other reserves		1,730,932		1,730,932
Profit and loss account		164,663		138,963
Total equity			4,616,234		4,591,551

For the financial year ending 30 June 2018 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.

These financial statements have been delivered in accordance with the provisions applicable to companies subject to the small companies regime and the option not to file the Profit and Loss Account has been taken.

Approved and authorised by the Board on 9 September 2018 and signed on its behalf by:
 

R Soole

Director

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The Metropolitan Land and House Company Limited

Notes to the Financial Statements
for the Year Ended 30 June 2018

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:
Unity Chambers
34 High East Street
Dorchester
Dorset
DT1 1HA
United Kingdom

The principal place of business is:
79 Stoughton Avenue
Cheam
Surrey
SM3 8PH
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.

Group accounts not prepared

The company is exempt from preparing group accounts as it is a small group.

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
Office equipment	Computers and digital equipment 4 years, other equipment 8 years on a straight line basis

Investment property

Investment property is carried at fair value, derived from the current market prices for comparable property determined annually by the company's directors. Changes in fair value are recognised in profit or loss.

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.

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The Metropolitan Land and House Company Limited

Notes to the Financial Statements
for the Year Ended 30 June 2018

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 may subsequently be measured less a 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.

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 may subsequently be measured at amortised cost.

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.

Dividends

Dividend distribution to the company’s shareholders is recognised as a liability in the financial statements in the reporting period in which the dividends are declared.

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The Metropolitan Land and House Company Limited

Notes to the Financial Statements
for the Year Ended 30 June 2018

Capital profits or losses

Any capital profits or losses and the capital gains tax payable thereon are transferred to capital reserve.

3	Staff numbers

The average number of persons employed by the company (including directors) during the year, was 4 (2017 - 4).

4	Tangible assets

	Office equipment £	Total £
Cost
At 1 July 2017	2,938	2,938
At 30 June 2018	2,938	2,938
Depreciation
At 1 July 2017	2,930	2,930
At 30 June 2018	2,930	2,930
Carrying amount
At 30 June 2018	8	8
At 30 June 2017	8	8

5	Investment properties

	2018 £	2017 £
Fair value
At 1 July 2017	5,063,565	4,388,565
Additions	54,514	-
Fair value adjustments	-	675,000
At 30 June 2018	5,118,079	5,063,565

The investment property are reflected in the accounts at their estimated combined open market value. These estimations of value have been compiled by the company's directors on a prudent basis using market information available as to current sale prices, the yield and covenant on the commercial properties and for any acquisitions in the year their cost price.

There has been no valuation of investment property by an independent valuer.

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The Metropolitan Land and House Company Limited

Notes to the Financial Statements
for the Year Ended 30 June 2018

6	Investments

	2018 £	2017 £
Investments in subsidiaries	100	100

Subsidiaries	£
Cost
At 1 July 2017	100
At 30 June 2018	100
Carrying amount
At 30 June 2018	100
At 30 June 2017	100

Details of undertakings

Details of the investments (including principal place of business of unincorporated entities) in which the company holds 20% or more of the nominal value of any class of share capital are as follows:

Undertaking	Registered office	Holding	Proportion of voting rights and shares held
			2018	2017
Subsidiary undertakings
Metropolitan Land Dorset Co Ltd	Unity Chambers 34 High East Street Dorchester Dorset DT1 1HA	Ordinary	100%	100%

The principal activity of Metropolitan Land Dorset Co Ltd is holding title to freehold (dormant).

The profit for the financial period of Metropolitan Land Dorset Co Ltd was £nil and the aggregate amount of capital and reserves at the end of the period was £100.

7

Debtors

	2018 £	2017 £
Trade debtors	22,943	26,664
Amounts owed by group undertakings and undertakings in which the company has a participating interest	1,252	1,252
Other debtors	4,919	2,613
Total current trade and other debtors	29,114	30,529

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The Metropolitan Land and House Company Limited

Notes to the Financial Statements
for the Year Ended 30 June 2018

8

Creditors

	Note	2018 £	2017 £
Due within one year
Bank loans and overdrafts	9	56,497	57,330
Trade creditors		12,363	-
Taxation and social security		26,666	25,367
Other creditors		54,997	38,887
		150,523	121,584
Due after one year
Loans and borrowings	9	193,060	151,799

9	Loans and borrowings

	2018 £	2017 £
Non-current loans and borrowings
Bank borrowings	193,060	151,799

	2018 £	2017 £
Current loans and borrowings
Bank borrowings	56,497	57,330

The bank loans are secured by way of legal charges over four of the company’s investment properties.

10

Dividends

The directors are proposing a final dividend of £0.40 (2017 - £0.45) per share totalling £60,890.00 (2017 - £68,501.00). This dividend has not been accrued in the Balance Sheet.

11	Financial commitments, guarantees and contingencies

Following his retirement as a Director of the Company on 11 November 2013 Mr F P Soole is entitled to receive £2,500 (25% of his final fee) per annum as a pension for 5 years. It was agreed by the Directors that this would be increased to £3,000 per annum with effect from 1 July 2015. No provision has been made in the accounts for this commitment.

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The Metropolitan Land and House Company Limited

Notes to the Financial Statements
for the Year Ended 30 June 2018

12	Related party transactions

Summary of transactions with subsidiaries

Metropolitan Land Dorset Co Ltd
 The loan owed by the subsidiary to The Metropolitan Land and House Company Limited at 30 June 2018 amounted to £1,252 (2017 - £1,252).
 

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