LR WAREHOUSE (VICTORIA DOCK) LIMITED

Company Registration Number:
11625772 (England and Wales)

Unaudited statutory accounts for the year ended 31 December 2022

Period of accounts

Start date: 1 January 2022

End date: 31 December 2022

LR WAREHOUSE (VICTORIA DOCK) LIMITED

Contents of the Financial Statements

for the Period Ended 31 December 2022

Directors report
Profit and loss
Balance sheet
Additional notes
Balance sheet notes

LR WAREHOUSE (VICTORIA DOCK) LIMITED

Directors' report period ended 31 December 2022

The directors present their report with the financial statements of the company for the period ended 31 December 2022

Principal activities of the company

The principal activity of the company is the ownership of the investment property, Warehouse Victoria Dock.



Directors

The directors shown below have held office during the period of
1 January 2022 to 20 January 2022

Ian M Livingston
Richard J Livingston


The directors shown below have held office during the period of
21 January 2022 to 31 December 2022

Tim A Knight
Martin G Cudlipp


Secretary JTC (Jersey) Limited

The above report has been prepared in accordance with the special provisions in part 15 of the Companies Act 2006

This report was approved by the board of directors on
29 June 2023

And signed on behalf of the board by:
Name: Martin G Cudlipp
Status: Director

LR WAREHOUSE (VICTORIA DOCK) LIMITED

Profit And Loss Account

for the Period Ended 31 December 2022

2022 2021


£

£
Turnover: 2,999,902 1,680,534
Gross profit(or loss): 2,999,902 1,680,534
Administrative expenses: ( 651,498 ) ( 699,549 )
Other operating income: 2,452,093
Operating profit(or loss): 2,348,404 3,433,078
Interest payable and similar charges: ( 372,314 ) ( 641,794 )
Profit(or loss) before tax: 1,976,090 2,791,284
Tax: ( 1,072,410 ) ( 524,736 )
Profit(or loss) for the financial year: 903,680 2,266,548

LR WAREHOUSE (VICTORIA DOCK) LIMITED

Balance sheet

As at 31 December 2022

Notes 2022 2021


£

£
Fixed assets
Investments: 3 45,000,000 45,000,000
Total fixed assets: 45,000,000 45,000,000
Current assets
Debtors: 4 4,026,783 806,384
Cash at bank and in hand: 1,026,812
Total current assets: 4,026,783 1,833,196
Creditors: amounts falling due within one year: 5 ( 1,964,851 ) ( 8,116,482 )
Net current assets (liabilities): 2,061,932 (6,283,286)
Total assets less current liabilities: 47,061,932 38,716,714
Creditors: amounts falling due after more than one year: 6 ( 2,903,813 ) ( 27,706,898 )
Total net assets (liabilities): 44,158,119 11,009,816
Capital and reserves
Called up share capital: 1 1
Other reserves: 32,244,623
Profit and loss account: 11,913,495 11,009,815
Total Shareholders' funds: 44,158,119 11,009,816

The notes form part of these financial statements

LR WAREHOUSE (VICTORIA DOCK) LIMITED

Balance sheet statements

For the year ending 31 December 2022 the company was entitled to exemption under section 477 of the Companies Act 2006 relating to small companies.

The members have not required the company to obtain an audit in accordance with section 476 of the Companies Act 2006.

The directors acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and the preparation of accounts.

These accounts have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime.

This report was approved by the board of directors on 29 June 2023
and signed on behalf of the board by:

Name: Martin G Cudlipp
Status: Director

The notes form part of these financial statements

LR WAREHOUSE (VICTORIA DOCK) LIMITED

Notes to the Financial Statements

for the Period Ended 31 December 2022

  • 1. Accounting policies

    Basis of measurement and preparation

    These financial statements have been prepared in accordance with the provisions of Section 1A (Small Entities) of Financial Reporting Standard 102

    Turnover policy

    Turnover represents rental income is measured at the fair value of the consideration received, excluding discounts,rebates, VAT and other sales taxes or duty. Rental income is recognised over the term of the lease on a straight-linebasis. The total turnover of the company for the period has been derived from its principal activity, wholly undertaken inthe UK.Income from properties is allocated in the year to which it relates, with payments received in advance held as deferredincome and recognised as turnover when earned.

    Valuation information and policy

    The preparation of the financial statements requires management to make judgements, estimates and assumptionsthat affect the amounts reported for assets and liabilities as at the statement of financial position date and the amountsreported for revenues and expenses during the year. However, the nature of estimation means that actual outcomescould differ from those estimates. The estimates and underlying assumptions are reviewed on an ongoing basis.Revisions to accounting estimates are recognised in the year in which the estimate is revised if the revision affectsonly that year, or in the year of the revision and future years if the revision affects both current and future years.In addition to the day to day operations of the company, the directors have considered the impact of the currentconflict in Ukraine and the effects on the comany’s business and the potential impact on the wider real estate industryand do not consider there to be any further key sources of estimation uncertainty which may cause a materialadjustment to the carrying amount of assets and liabilities. The following judgements have had the most significanteffect on amounts recognised in the financial statements.The fair value of investment property is determined by independent real estate valuation experts using recognisedvaluation techniques. The fair value has been primarily derived using comparable recent market transactions on arm'slength terms

    Other accounting policies

    1. Accounting policiesGeneral Information1.1 Statement of compliance1.2 Basis of preparation1.4 Going concernThe directors have also considered the macro-economic factors that continue to surround the global economy as aresult of higher inflation and interest rates predominantly caused by the wake of COVID-19 and the conflict in Ukraine.While the directors acknowledge the potential impact to property valuations, debt servicing and increased costs of thirdparty service providers it does not consider this to materially impact the operations of the Company.The preparation of financial statements in conformity with FRS 102 requires the use of certain critical accountingestimates. It also requires management to exercise its judgement in the process of applying the company's accountingpolicies. The areas involving a higher degree of judgement or complexity, or areas where assumptions and estimatesare significant to the financial statements are disclosed in note 2.On 24 February 2022, Russia launched a military offensive against Ukraine, resulting in widespread sanctions onRussia and heightened security and cyber threats. Market disruptions associated with the geopolitical event have hada global impact, and uncertainty exists as to the implications. Such disruptions can adversely affect the valuation ofassets and performance thereon, specifically those with direct or indirect exposure to Russia or Ukraine. The Directorsare monitoring the current conflict in Ukraine and the effects on the Company’s business and the potential impact onthe wider real estate industry. There has been no adverse impact on the Company's performance from the conflict, thesanctions imposed on Russia or wider economic uncertainty and disruption. The directors do not expect that theconflict will significantly impact the liquidity of the Company over the next 12 months from date of approval of thefinancial statements.The Company’s business activities, together with the factors likely to affect its growth, performance and position areset out in the Strategic report. Based on this, the Directors consider it appropriate to prepare the financial statementson a going concern basis. Additionally, the directors have received confirmation that The WK Unit Trust intends tosupport the company to ensure it meets its obligations as they fall due for at least 12 months after these financialstatements are approved.LR Warehouse (Victoria Dock) Limited is a private company limited by shares incorporated in the United Kingdom andregistered in England. The registered office is The Scapel, 18th Floor, 52 Lime Street, London, EC3M 7AF.The principal activity of the company is the ownership of the investment property, Warehouse Victoria Dock.These financial statements have been prepared in accordance with FRS 102 "The Financial Reporting Standardapplicable in the UK and Republic of Ireland" ("FRS 102") and the requirements of the Companies Act 2006. Thecompany has chosen to apply FRS 102 section 1A, for which it qualifies by virtue of being a small entity. Thecompany is exempt from producing a cash flow statement as permitted by FRS 102-1A.The financial statements are prepared in sterling, which is the functional currency of the company.The financial statements have been prepared on a going concern basis and under the historical cost convention,modified to include the revaluation of freehold properties and to include investment properties at fair value. Theprincipal accounting policies adopted are set out below.1. Accounting policies (continued)1.5 Rental incomeDeferred income1.6 Investment property1.7 Financial instrumentsBasic financial assetsFinancial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is alegally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realisethe asset and settle the liability simultaneously.Property that is held for long-term rental yields or for capital appreciation or both, and that is not occupied by the Trust,is classified as investment property. Investment property also includes property that is being constructed or developedfor future use as investment property.Property acquisitions and disposals are accounted for on exchange unless the sales contract provides a reason for theTrustees to recognise this later or on completion of the contract when all conditions have been met. Transaction costsassociated with failed investment property acquisitions and disposals are charged as expenses to the statement ofcomprehensive income.Investment property is initially recognised at cost, including stamp duty land tax (‘SDLT’) and other transaction costs.Subsequently, investment property is carried at fair value determined annually by external valuers. All surpluses anddeficits are reflected in the statement of comprehensive income.After initial recognition, investment property is carried at fair value. Fair value is based on active market pricesadjusted, if necessary, for any difference in the nature, location or condition of the specific asset. If the information isnot available, the Trust uses alternative valuation methods, such as recent prices on less active markets. Valuationsare performed as at the financial position date by professional valuers who hold recognised and relevant professionalqualifications and have recent experience in the location and category of the investment property being valued. Thesevaluations form the basis for the carrying amounts in the financial statements.Subsequent expenditure is capitalised to the asset's carrying amount only when it is probable that future economicbenefits associates with the expenditure will flow to the Trust and the cost of the item can be measured reliably. Allother repairs and maintenance costs are expensed when incurred. Gains or losses arising form changes in the fairvalues are included in the statement of comprehensive income in the period in which they arise.Investment properties are derecognised either when they have been disposed of or when the investment property ispermanently withdrawn from use and no future economic benefit is expected.Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction priceincluding transaction costs and are subsequently carried at amortised cost using the effective interest method unlessthe arrangement constitutes a financing transaction, where the transaction is measured at the present value of thefuture receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are notamortised.Financial instruments are recognised in the company's balance sheet when the company becomes party to thecontractual provisions of the instrument.Turnover represents rental income is measured at the fair value of the consideration received, excluding discounts,rebates, VAT and other sales taxes or duty. Rental income is recognised over the term of the lease on a straight-linebasis. The total turnover of the company for the period has been derived from its principal activity, wholly undertaken inthe UK.Income from properties is allocated in the year to which it relates, with payments received in advance held as deferredincome and recognised as turnover when earned.1. Accounting policies (continued)1.7 Financial instruments (continued)Impairment of financial assetsDerecognition of financial assetsClassification of financial liabilitiesBasic financial liabilitiesDebt instruments are subsequently carried at amortised cost, using the effective interest rate method.Derecognition of financial liabilitiesIf there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, theimpairment is reversed. The reversal is such that the current carrying amount does not exceed what the carryingamount would have been, had the impairment not previously been recognised. The impairment reversal is recognisedin profit or loss.Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or aresettled, or when the company transfers the financial asset and substantially all the risks and rewards of ownership toanother entity, or if some significant risks and rewards of ownership are retained but control of the asset hastransferred to another party that is able to sell the asset in its entirety to an unrelated third party.Financial liabilities and equity instruments are classified according to the substance of the contractual arrangementsentered into. An equity instrument is any contract that evidences a residual interest in the assets of the company afterdeducting all of its liabilities.Other financial assetsOther financial assets, including investments in equity instruments which are not subsidiaries, associates or jointventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequentlycarried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equityinstruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost lessimpairment.Financial assets, other than those held at fair value through profit or loss, are assessed for indicators of impairment ateach reporting end date.Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurredafter the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset isimpaired, the impairment loss is the difference between the carrying amount and the present value of the estimatedcash flows discounted at the asset's original effective interest rate. The impairment loss is recognised in profit or loss.LR WAREHOUSE (VICTORIA DOCK) LIMITEDNOTES TO THE FINANCIAL STATEMENTS (CONTINUED)FOR THE YEAR ENDED 31 DECEMBER 20221. Accounting policies (continued)1.8 Equity instruments1.92 Critical accounting judgements and key sources of estimation uncertaintyValuation of propertyThe preparation of the financial statements requires management to make judgements, estimates and assumptionsthat affect the amounts reported for assets and liabilities as at the statement of financial position date and the amountsreported for revenues and expenses during the year. However, the nature of estimation means that actual outcomescould differ from those estimates. The estimates and underlying assumptions are reviewed on an ongoing basis.Revisions to accounting estimates are recognised in the year in which the estimate is revised if the revision affectsonly that year, or in the year of the revision and future years if the revision affects both current and future years.In addition to the day to day operations of the company, the directors have considered the impact of the currentconflict in Ukraine and the effects on the comany’s business and the potential impact on the wider real estate industryand do not consider there to be any further key sources of estimation uncertainty which may cause a materialadjustment to the carrying amount of assets and liabilities. The following judgements have had the most significanteffect on amounts recognised in the financial statements.The fair value of investment property is determined by independent real estate valuation experts using recognisedvaluation techniques. The fair value has been primarily derived using comparable recent market transactions on arm'slength terms.Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to theextent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxableprofits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initialrecognition 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 isno 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 theasset is realised. Deferred tax is charged or credited to the statement of comprehensive income, except when it relatesto items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred taxassets and liabilities are offset when the company has a legally enforceable right to offset current tax assets andliabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.Equity instruments issued by the company are recorded at the proceeds received, net of transaction costs. Dividendspayable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.TaxationDeferred taxThe tax expense represents the sum of the tax currently payable and deferred tax.The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in thestatement of comprehensive income because it excludes items of income or expense that are taxable or deductible inother years and it further excludes items that are never taxable or deductible. The company's liability for current tax iscalculated using tax rates that have been enacted or substantively enacted by the reporting end date.

LR WAREHOUSE (VICTORIA DOCK) LIMITED

Notes to the Financial Statements

for the Period Ended 31 December 2022

  • 2. Employees

    2022 2021
    Average number of employees during the period 0 0

LR WAREHOUSE (VICTORIA DOCK) LIMITED

Notes to the Financial Statements

for the Period Ended 31 December 2022

3. Fixed assets investments note

7 Investment properties 2022 2021£ £Fair value at the beginning of the year 45,000,000 42,575,000Settlement of retention by LRP - (27,093)Net gain through fair value adjustments - 2,452,093Fair value at end of the year 45,000,000 45,000,00031 Dec 2022 31 Dec 2021£ £Within 1 year 2,422,959 2,506,809After 1 year, but not more than 5 years 8,770,296 9,198,445After 5 years 13,583,178 15,977,98724,776,433 27,683,241

LR WAREHOUSE (VICTORIA DOCK) LIMITED

Notes to the Financial Statements

for the Period Ended 31 December 2022

4. Debtors

2022 2021
£ £
Trade debtors 0 434,528
Other debtors 4,026,783 371,856
Total 4,026,783 806,384

Stated net of provisions of £356,019 (2021: £414,995)The intercompany receivable balance are interest free and receivable on demand.

LR WAREHOUSE (VICTORIA DOCK) LIMITED

Notes to the Financial Statements

for the Period Ended 31 December 2022

5. Creditors: amounts falling due within one year note

2022 2021
£ £
Taxation and social security 697,610 336,683
Accruals and deferred income 664,464 394,262
Other creditors 602,777 7,385,537
Total 1,964,851 8,116,482

Trade and other payables 2022 2021£ £Amounts owed to group undertakings 527,224 7,383,519Corporation tax 375,496 149,833VAT Payable 322,114 186,850Other creditors 75,553 2,018Accruals and deferred income 664,464 394,2621,964,851 8,116,482Amounts owed to group undertakings are interest free, unsecured and repayable on demand.

LR WAREHOUSE (VICTORIA DOCK) LIMITED

Notes to the Financial Statements

for the Period Ended 31 December 2022

6. Creditors: amounts falling due after more than one year note

2022 2021
£ £
Bank loans and overdrafts 25,500,000
Other creditors 2,903,813 2,206,898
Total 2,903,813 27,706,898