Company registration number 07412272 (England and Wales)
SOHO DATA HOLDINGS LTD
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022
SOHO DATA HOLDINGS LTD
CONTENTS
Page
Strategic report
1 - 2
Directors' report
3 - 4
Independent auditor's report
5 - 7
Statement of comprehensive income
8
Balance sheet
9
Statement of changes in equity
10
Notes to the financial statements
11 - 19
SOHO DATA HOLDINGS LTD
STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2022
- 1 -

The directors present the strategic report for the year ended 31 December 2022.

Business and Key Performance Indicators (KPIs)

Soho Data Holdings Ltd acquired a one-acre Prime Central London site at 101 Cleveland Street and developed it into a modern building containing 88 luxury apartments built in a high-quality boutique style, 15 affordable homes and 35,000 sqft commercial space.

As at 31 December 2022, 81 apartments had been sold with 7 being under offer, the affordable homes were sold to Octavia Housing in the prior year and the commercial space has been let as Ted Bakers global headquarters. Hence, the directors are pleased with the overall performance of the business for the year which saw gross profit margins increase to 28.7% from 19.3%.

The company repaid all debts owed to group undertakings during the year.

Principal Risks and Uncertainties

The directors consider the principal risks and uncertainties affecting the company's business to be:

 

Suppliers

The quality and efficient delivery of a first class, modern, residential development is key to the ongoing success of the business.

 

Competitors

The residential sector in London is highly competitive and apartments have been priced in accordance with independently valuations with comparison to the market.

 

Liquidity Risk

The company manages its cash and borrowing requirements centrally in order to maximise interest income and minimise interest expense. Regular cashflow forecasts are performed for the company in order to ensure there are sufficient liquid resources to meet the operating needs of the business.

 

Credit Risk

Due diligence and credit worthiness checks are performed on all potential buyers. Processes are in place to ensure cash is collected within reasonable time frames and regular reporting and monitoring occurs.

 

Interest Rate Risk

The company is exposed to interest rate risk on its bank loans. The company enters into fixed interest bearing loans where possible, otherwise the interest rate is variable according to Bank of England base rate but the repayments are fixed.

 

Legal Obligations

The company has in place policies and procedures to ensure compliance with its legal obligations in relation to planning and construction.

 

Commercial and General Risks

Standard form contracts are provided for commercial use and to assist the commercial function to negotiate within approved parameters.

Section 172(1) Statement
This section of the strategic report describes how the directors have had regard to the matters set out in section 172(1) (a) to (f), and forms the directors' statement required under section 414C(11), of The Companies Act 2006. The directors consider that they have, in good faith, promoted the success of the company, and in doing so have regard (amongst other matters) to:
Business Relationships

The company has been built on solid relationships with its investors and professional advisers. We are reliant on external suppliers for a number of key specialist services such as legal, public relations and advisory. The company believes in the fair treatment of suppliers who are all paid within standard terms.

SOHO DATA HOLDINGS LTD
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
- 2 -
Business Conduct

The company has been built on its impeccable conduct and high business standards. The board recognises the importance in maintaining these values and the reputation which has been built on them.

On behalf of the board

A Abbas
Director
29 September 2023
SOHO DATA HOLDINGS LTD
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2022
- 3 -

The directors present their annual report and financial statements for the year ended 31 December 2022.

Principal activities

The principal activity of the company continued to be that of property development.

Results and dividends

The results for the year are set out on page 8.

Interim dividends were paid amounting to £12,819,138. The directors do not recommend payment of a final dividend.

Directors

The directors who held office during the year and up to the date of signature of the financial statements were as follows:

R Leslie
A Abbas
Financial instruments

Risks are directly managed by the company. See discussion of the strategies and assessed risks in the Strategic report.

Business relationships

Information about business relationships are discussed in the Strategic Report.

Post reporting date events

These have been disclosed in the notes attached to these financial statements.

Future developments

The directors aim to continue the principal activity of the company which is that of property development if viable opportunities present themselves.

Auditor

There was a change in auditor during the year with Gravita II LLP being appointed as auditor following the resignation of Gravita Audit Limited. In accordance with section 485 of the Companies Act 2006, a resolution proposing that Gravita II LLP be re-appointed will be put at a General Meeting.

Energy and carbon report

As the company has not consumed more than 40,000 kWh of energy in this reporting period, it qualifies as a low energy user under these regulations and is not required to report on its emissions, energy consumption or energy efficiency activities.

SOHO DATA HOLDINGS LTD
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
- 4 -
Statement of directors' responsibilities

The directors are responsible for preparing the annual report and the financial statements in accordance with applicable law and regulations.

 

Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to:

 

 

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company’s transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Statement of disclosure to auditor

So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the company’s auditor is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the company’s auditor is aware of that information.

On behalf of the board
A Abbas
Director
29 September 2023
SOHO DATA HOLDINGS LTD
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBER OF SOHO DATA HOLDINGS LTD
- 5 -
Opinion

We have audited the financial statements of Soho Data Holdings Ltd (the 'company') for the year ended 31 December 2022 which comprise the statement of comprehensive income, the balance sheet, the statement of changes in equity and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

 

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue. However, because not all future events or conditions can be predicted this statement is not a guarantee as to the company's ability to continue as a going concern.

 

Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.

Other information

The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The directors are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

 

In connection with our audit of the financial statement,our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

 

We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of our audit:

SOHO DATA HOLDINGS LTD
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBER OF SOHO DATA HOLDINGS LTD
- 6 -
Matters on which we are required to report by exception

In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the directors' report.

 

We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:

Responsibilities of directors

As explained more fully in the directors' responsibilities statement, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the directors are responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.

Auditor's responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

 

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.

 

The extent to which the audit was considered capable of detecting irregularities, including fraud

Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was as follows:

SOHO DATA HOLDINGS LTD
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBER OF SOHO DATA HOLDINGS LTD
- 7 -

The extent to which the audit was considered capable of detecting irregularities, including fraud (cont'd)

 

 

To address the risk of fraud through management bias and override of controls, we:

 

There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of noncompliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the directors and other management and the inspection of regulatory and legal correspondence, if any.

 

Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion.

A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.

Use of our report

This report is made solely to the company's member in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's member those matters we are required to state to the member in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's member, for our audit work, for this report, or for the opinions we have formed.

Paul Berlyn (Senior Statutory Auditor)
For and on behalf of Gravita II LLP
30 September 2023
Chartered Accountants
Statutory Auditor
30 City Road
London
EC1Y 2AB
SOHO DATA HOLDINGS LTD
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2022
- 8 -
2022
2021
Notes
£
£
Turnover
3
68,881,516
104,497,552
Cost of sales
(49,126,679)
(84,344,100)
Gross profit
19,754,837
20,153,452
Administrative expenses
(5,543,485)
(5,093,397)
Other operating income
13,850
3,319
Operating profit
4
14,225,202
15,063,374
Interest receivable and similar income
150,264
13,438
Interest payable and similar expenses
(12,506)
(758,045)
Profit before taxation
14,362,960
14,318,767
Tax on profit
7
(2,820,904)
(3,456,275)
Profit for the financial year
11,542,056
10,862,492

The profit and loss account has been prepared on the basis that all operations are continuing operations.

The notes on pages 11 to 19 form part of these financial statements.

SOHO DATA HOLDINGS LTD
BALANCE SHEET
AS AT
31 DECEMBER 2022
31 December 2022
- 9 -
2022
2021
Notes
£
£
£
£
Current assets
Stocks
9
12,468,021
58,242,442
Debtors
10
1,790,842
4,218,146
Cash at bank and in hand
6,551,511
5,361,673
20,810,374
67,822,261
Creditors: amounts falling due within one year
11
(3,066,204)
(48,801,009)
Net current assets
17,744,170
19,021,252
Capital and reserves
Called up share capital
12
151
151
Share premium account
14,534,855
14,534,855
Profit and loss reserves
3,209,164
4,486,246
Total equity
17,744,170
19,021,252

The notes on pages 11 to 19 form part of these financial statements.

The financial statements were approved by the board of directors and authorised for issue on 29 September 2023 and are signed on its behalf by:
A Abbas
Director
Company Registration No. 07412272
SOHO DATA HOLDINGS LTD
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2022
- 10 -
Share capital
Share premium account
Profit and loss reserves
Total
Notes
£
£
£
£
Balance at 1 January 2021
151
14,534,855
(6,376,246)
8,158,760
Year ended 31 December 2021:
Profit and total comprehensive income for the year
-
-
10,862,492
10,862,492
Balance at 31 December 2021
151
14,534,855
4,486,246
19,021,252
Year ended 31 December 2022:
Profit and total comprehensive income for the year
-
-
11,542,056
11,542,056
Dividends
8
-
-
(12,819,138)
(12,819,138)
Balance at 31 December 2022
151
14,534,855
3,209,164
17,744,170

The notes on pages 11 to 19 form part of these financial statements.

SOHO DATA HOLDINGS LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022
- 11 -
1
Accounting policies
Company information

Soho Data Holdings Ltd is a private company limited by shares incorporated in England and Wales. The registered office is 1 Red Place, London, England, W1K 6PL.

1.1
Accounting convention

These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.

The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.

The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.

This company is a qualifying entity for the purposes of FRS 102, being a member of a group where the parent of that group prepares publicly available consolidated financial statements, including this company, which are intended to give a true and fair view of the assets, liabilities, financial position and profit or loss of the group. The company has therefore taken advantage of exemptions from the following disclosure requirements:

 

 

The financial statements of the company are consolidated in the financial statements of 101 Cleveland Street JV Company Limited. These consolidated financial statements are available from its registered office, 1 Red Place, London, England, W1K 6PL.

1.2
Going concern

The truedirectors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future, being a period of at least twelve months after the date on which the report and financial statements are signed. This is based on their review of the company's sales projections and cashflow forecasts for the forthcoming 12 months. For this reason, the company continues to adopt the going concern basis in the financial statements.

1.3
Turnover

Revenue from the sale of properties are accounted for on an exchange of unconditional contracts, namely where contracts are exchanged and where appropriate, construction is complete. Revenue is measured as the fair value of the consideration received or receivable, excluding discounts and value added tax.

SOHO DATA HOLDINGS LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
1
Accounting policies
(Continued)
- 12 -
1.4
Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition.

 

Stocks held for distribution at no or nominal consideration are measured at the lower of cost and replacement cost, adjusted where applicable for any loss of service potential.

At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.

Stocks and work in progress have been valued at the lower of actual cost and net realisable value. Cost comprises capitalised interest, land purchases, which are accounted for from the date of unconditional contract exchange, building and related direct costs. Net realisable value is based on estimated selling price less further costs to completion.

1.5
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.

1.6
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.

Other financial assets

Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.

SOHO DATA HOLDINGS LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
1
Accounting policies
(Continued)
- 13 -
Impairment of financial assets

Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.

 

Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.

 

If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.

Derecognition of financial assets

Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the company transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.

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 payments 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. Amounts 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.

Other financial liabilities

Derivatives, including interest rate swaps and forward foreign exchange contracts, are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in profit or loss in finance costs or finance income as appropriate, unless hedge accounting is applied and the hedge is a cash flow hedge.

 

Debt instruments that do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured at fair value through profit or loss. Debt instruments may be designated as being measured at fair value through profit or loss to eliminate or reduce an accounting mismatch or if the instruments are measured and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy.

SOHO DATA HOLDINGS LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
1
Accounting policies
(Continued)
- 14 -
Derecognition of financial liabilities

Financial liabilities are derecognised when the company’s contractual obligations expire or are discharged or cancelled.

1.7
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.

1.8
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.

1.9
Leases

Rentals paid under operating leases in relation to property development are capitalised as part of work in progress on a straight line basis over the lease term. Benefits received and receivable as an incentive to sign an operating lease are recognised on a straight line basis over the lease term, unless another systematic basis is representative of the time pattern of the lessee's benefit from the use of the leased asset.

1.10
Foreign exchange

Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation in the period are included in profit or loss.

SOHO DATA HOLDINGS LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
1
Accounting policies
(Continued)
- 15 -
1.11

Cost of sales

The costs recognised on the sales of properties are accounted for at the relative proportion of the total cost of the development for each unit sold. The total costs of the development have been allocated among the apartments (units), common areas and shared amenities, and additional facilities such as car parks and roof terraces.

 

The total costs of the development assigned to the units for sale are recognised based on the net area of each unit.

 

The costs allocated to common areas and shared amenities of the development are allocated equally among each of the units sold.

 

Costs associated with additional facilities are allocated to the units to which they relate.

1.12

Finance costs

Finance costs in relation to the property development are capitalised as part of work in progress, over the term of the debt using the effective interest method so that the amount charged is at a constant rate on the carrying amount. Issue costs are initially recognised as a reduction in the proceeds of the associated capital instrument.

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.

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. The key judgements and sources of estimation and uncertainty are:

 

Work in progress:

 

a) The nature of the costs incurred in the property development requires management judgement to capture directly identifiable costs that should be added as part of work in progress and identify which costs should be charged to the Statement of Comprehensive Income.

 

b) The recoverable value of work in progress requires the selling price, costs to complete and costs to sell to be identified by management. Forecast costs to complete and to sell are maintained in standard appraisal models and are regularly reconciled with agreements entered into with third parties. Controls are in place to ensure that regular reviews are undertaken by management. Estimated selling prices are reviewed by management with reference to independent external valuations where appropriate.

SOHO DATA HOLDINGS LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
- 16 -
3
Turnover and other revenue

An analysis of the company's turnover is as follows:

2022
2021
£
£
Turnover analysed by class of business
Affordable housing income
-
3,251,342
Sales of units
68,881,516
101,246,210
68,881,516
104,497,552
2022
2021
£
£
Other revenue
Interest income
150,264
13,438
4
Operating profit
2022
2021
Operating profit for the year is stated after charging:
£
£
Fees payable to the company's auditor for the audit of the company's financial statements
56,950
48,100
Cost of stocks recognised as an expense
49,126,679
84,344,100
5
Auditor's remuneration
2022
2021
Fees payable to the company's auditor and associates:
£
£
For audit services
Audit of the financial statements of the company
56,950
48,100
For other services
Taxation compliance services
3,000
2,750
6
Employees

The average monthly number of persons (including directors) employed by the company during the year was:

2022
2021
Number
Number
Total
2
2
SOHO DATA HOLDINGS LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
- 17 -
7
Taxation
2022
2021
£
£
Current tax
UK corporation tax on profits for the current period
2,820,904
2,069,298
Deferred tax
Origination and reversal of timing differences
-
0
1,386,977
Total tax charge
2,820,904
3,456,275

The actual charge for the year can be reconciled to the expected charge for the year based on the profit or loss and the standard rate of tax as follows:

2022
2021
£
£
Profit before taxation
14,362,960
14,318,767
Expected tax charge based on the standard rate of corporation tax in the UK of 19.00% (2021: 19.00%)
2,728,962
2,720,566
Tax effect of expenses that are not deductible in determining taxable profit
(70,163)
-
0
Tax effect of utilisation of tax losses not previously recognised
-
0
730,709
Group relief
162,105
5,000
Taxation charge for the year
2,820,904
3,456,275

 

8
Dividends
2022
2021
£
£
Interim paid
12,819,138
-
0
9
Stocks
2022
2021
£
£
Stocks
12,468,021
58,242,442

 

SOHO DATA HOLDINGS LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
- 18 -
10
Debtors
2022
2021
Amounts falling due within one year:
£
£
Trade debtors
-
0
2,412,270
Corporation tax recoverable
823,781
-
0
Amounts owed by group undertakings
19,394
4,938
Other debtors
915,592
1,102,775
Prepayments and accrued income
32,075
698,163
1,790,842
4,218,146
11
Creditors: amounts falling due within one year
2022
2021
£
£
Trade creditors
66,898
7,478,730
Amounts owed to group undertakings
-
0
35,317,269
Corporation tax
-
0
2,069,298
Other creditors
-
0
1,137
Accruals and deferred income
2,999,306
3,934,575
3,066,204
48,801,009

Amounts owed to group undertakings, consist of:

 

a) Loans of £nil (2021: £29.3m) relating to unsecured, interest free loans which was repaid during the year.

 

b) A £nil (2021: £6m) interest bearing facility at 8% p.a. from its parent, 101 Cleveland Street Midco 2, which was repaid during the year.

12
Called up share capital
2022
2021
2022
2021
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of 1p each
15,135
15,135
151
151
13
Operating lease commitments

At 31 December 2022, the company had future minimum lease payments under non-cancellable operating leases as follows:

2022
2021
£
£
Within one year
-
0
1,400,000
Between two and five years
-
0
387,397
In over five years
-
0
-
0
-
0
1,787,397
SOHO DATA HOLDINGS LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
13
Operating lease commitments
(Continued)
- 19 -

Soho Data Holdings Limited had a rental guarantee obligation with the Lord Mayor and Citizens of the City of the Westminster (WCC) of £1.4m per year until the date on which the Commercial Development is fully let. On the 22nd July 2021, Soho Data Holdings Limited entered into an agreement to lease the commercial space, comprising the Ground and Lower Ground floor. Completion of the lease was conditional on the grant of planning permission and practical completion, both of which have taken place. Hence, Soho Data Holdings Limited is released from the obligations of the rental guarantee.

14
Financial commitments, guarantees and contingent liabilities

The company was a party to a £20m mezzanine facility agreement between its parent, 101 Cleveland Street Midco 1 Limited, and SOF-9 Soho Data Holdings LUX S.A.R.L dated 11 April 2019 and repayable on 10 October 2022. As at the year end, this loan had been repaid in full thereby releasing the fixed and floating charges over the company's assets during the year.

15
Events after the reporting date

The directors are of the opinion that there are no significant adjusting or non-adjusting events occurring after the reporting date.

16
Related party transactions

The company has taken advantage of the exemption available in accordance with FRS 102 Section 33 'Related Party Disclosures' not to disclose transactions entered into between two or more members of a group, as the company is a wholly owned subsidiary undertaking of the Group to which it is party to the transactions.

17
Parent company

The immediate parent undertaking is 101 Cleveland Street Midco 2 Limited.

 

The ultimate parent undertaking and controlling party is Kommanditgesellschaft CURA Vermögensverwaltung G.m.b.H. & Co., a company registered in Germany.

 

The smallest group is 101 Cleveland Street JV Company Ltd and the largest group into which the entity is consolidated is Kommanditgesellschaft CURA Vermögensverwaltung G.m.b.H. & Co. The registered office is Saseler Damm 39 a, 22395 Hamburg, Germany from which copies of the group financial statements can be obtained.

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