REGISTERED NUMBER: |
STRATEGIC REPORT, REPORT OF THE DIRECTORS AND |
FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 30 JUNE 2022 |
FOR |
SABTINA LIMITED |
REGISTERED NUMBER: |
STRATEGIC REPORT, REPORT OF THE DIRECTORS AND |
FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 30 JUNE 2022 |
FOR |
SABTINA LIMITED |
SABTINA LIMITED (REGISTERED NUMBER: 01794877) |
CONTENTS OF THE FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 30 JUNE 2022 |
Page |
Company Information | 1 |
Strategic Report | 2 |
Report of the Directors | 5 |
Report of the Independent Auditors | 7 |
Statement of Comprehensive Income | 10 |
Balance Sheet | 11 |
Statement of Changes in Equity | 12 |
Cash Flow Statement | 13 |
Notes to the Cash Flow Statement | 14 |
Notes to the Financial Statements | 15 |
SABTINA LIMITED |
COMPANY INFORMATION |
FOR THE YEAR ENDED 30 JUNE 2022 |
DIRECTORS: |
REGISTERED OFFICE: |
REGISTERED NUMBER: |
SENIOR STATUTORY AUDITOR: |
AUDITORS: |
Statutory Auditor |
20 Havelock Road |
Hastings |
East Sussex |
TN34 1BP |
SABTINA LIMITED (REGISTERED NUMBER: 01794877) |
STRATEGIC REPORT |
FOR THE YEAR ENDED 30 JUNE 2022 |
The directors present their strategic report for the year ended 30 June 2022. |
REVIEW OF BUSINESS |
During the year the company continued with the management of various Libyan Foreign Investment Company (LAFICO) properties in the United Kingdom although most of the properties managed are currently empty. |
The currently low level of bank interest receivable and lack of property tenants mean that the company has incurred a net loss this year. This position should improve as funds are released by the owners to invest in the properties managed. The company has available reserves to meet this deficit in the medium term. |
As a subsidiary of LAFICO, the company has been subject to international sanctions during this year. However we have been able to obtain UK Treasury licences to continue the property management activity under the terms of these licences. |
The company does not use financial key performance indicators to measure its activity given its small size and particular nature of the transactions which mean that each one can be identified and assessed individually. Financial and non - financial KPIs are therefore not considered appropriate for inclusion in the strategic report. |
PRINCIPAL RISKS AND UNCERTAINTIES |
The company is in a strong position at the year end with reserves available to fund the ongoing property management activity. The company has sufficient available reserves and spare resource to increase its activity in this area if the opportunity arises. |
The greatest risk to the company at present is the UK Government's and UK Banks' approach to the sanctions regime currently in place. If they decided to change to an even stricter interpretation of these rules, the company could be restricted even further in its activities and prevented from operating competently. |
There is no significant risk facing the company at present from the termination of its activities by the parent company. Sabtina can continue to grow provided diversification in its activities are permitted and the sanctions regime comes to an end. Continuation without improvement in the current situation and the inability to move forward because of restrictions and other impediments may cause Sabtina significant problems in the future. |
A further risk to the company is the property owner's attitude to investment in the properties managed. If they do not invest sufficient funds in the properties then there will be a lesser likelihood of finding suitable tenants and so generation of income for Sabtina Ltd. |
The newly appointed directors are pursuing a positive plan to invest in the current managed properties as well as improve the financial situation of the company and to increase its activities. |
SABTINA LIMITED (REGISTERED NUMBER: 01794877) |
STRATEGIC REPORT |
FOR THE YEAR ENDED 30 JUNE 2022 |
SECTION 172(1) STATEMENT |
The Board works to promote the success of the company for the benefit of its members as a whole with regard to all its stakeholders and to the matters set out in Section 172 of The Companies Act 2006. The following disclosures set out 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 414CZA of The Companies Act 2006. |
Board Governance |
The company is committed to high standards of corporate governance. We have a comprehensive range of policies and systems in place to ensure that the properties under our management and our and business are well-managed, with effective oversight and control. |
Activities of the Board |
The responsibility for good governance lies with the Board. The Board is collectively responsible for the long-term success of the company and achieves this through its oversight of the business, generating value for its shareholders and its stakeholders as well as contributing to our wider communities. |
In exercising its duty to promote the success of the company, the Board is responsible for overseeing the management of the company and, in so doing, may exercise its powers, subject to any relevant laws, regulations and the company's Articles of Association. The Board bears legal responsibility for the acts carried out on its behalf and enforces standards of accountability - all with a view to enable senior management to execute their responsibilities fully and in the interests of its stakeholders. |
Matters not specifically reserved for the Board have been delegated to the Commercial Manager, Mr M M Ageli, for the day-to-day management of the business. The responsibilities of Commercial Manager were withdrawn from Mr M M Ageli by the board of directors on 16 September 2022. Mr H M Elmaghrawi became Managing Director on the same date. The Commercial Manager will also lead on the direction of the business as determined by the Board. Certain matters relating to third party agreements, financing and litigation, amongst others, require Board approval. |
In performing its oversight function, the Board is entitled to rely on the advice, reports and opinions of management, counsel, auditors and outside experts. |
Stakeholders |
The company's key stakeholders are considered to be its shareholders, property tenants, suppliers and the communities and environment in which we operate. The relationships with stakeholders, how the Board engages with them along with key decisions and interactions are presented throughout this Report, and The Report of the Directors. |
Objectives | Method of engagement |
Shareholders | To provide sustained profitable growth. |
Board engaged with LAFICO at various points throughout the year and on all major decisions that affect our business. The Board convenes on a formal basis quarterly and has representatives from LAFICO as members |
Property tenants | To provide (on behalf of LAFICO)attractive properties in good repair at reasonable rents. |
We maintain regular contact through email, telephone or face to face. |
Employees | To provide a safe and secure working environments and reward achievement. |
Given the small size of our workforce we maintain regular contact through email, telephone and face to face. |
Suppliers | To work with our suppliers so that we can deliver for the tenants and communities we serve. |
We work closely with suppliers, maintaining regular contact to maintain close and satisfactory working relationships. |
Communities and environment | To help our customers build communities, support charitable organisations and leverage our size, scope and resources to help make local communities and the environment a better place. |
Our staff are encouraged to participate in the wider community on a personal level. The company also seeks ethically sourced products where possible. |
SABTINA LIMITED (REGISTERED NUMBER: 01794877) |
STRATEGIC REPORT |
FOR THE YEAR ENDED 30 JUNE 2022 |
Principal Decisions |
In the table below we outline principal decisions made by the Board during the year under review. We define principal decisions as those decisions that are of a strategic nature and that are significant to any of the key stakeholder groups as indicated above. The table below explains how the directors have engaged with, or in relation to, the different key stakeholder groups and how stakeholder interests were considered during the course of the decision-making. |
Key Stakeholders | Principal Decision | Impact on Business | Considerations | Outcomes and Actions |
None | None | None | None | None |
ON BEHALF OF THE BOARD: |
SABTINA LIMITED (REGISTERED NUMBER: 01794877) |
REPORT OF THE DIRECTORS |
FOR THE YEAR ENDED 30 JUNE 2022 |
The directors present their report with the financial statements of the company for the year ended 30 June 2022. |
PRINCIPAL ACTIVITY |
The principal activity of the company in the year under review was that of property management. |
DIVIDENDS |
No dividends will be distributed for the year ended 30 June 2022. |
DIRECTORS |
The directors who have held office during the period from 1 July 2021 to the date of this report are as follows: |
FINANCIAL INSTRUMENTS |
The company's principal financial instruments comprise bank balances, trade creditors and trade debtors. The main purpose of these instruments is to finance the company's operations. |
Due to the nature of the financial instruments used by the company there is no exposure to price risk. The company's approach to managing other risks applicable to the financial instruments concerned is shown below. |
In respect of bank balances, the liquidity risk is managed by maintaining balances sufficient to meet current and future needs. |
Trade debtors are managed in respect of credit and cashflow risk by policies concerning the credit offered to customers and the regular monitoring of amounts outstanding for both time and credit limits. |
Trade creditors liquidity risk is managed by ensuring sufficient funds are available to meet amounts due. |
BUSINESS RELATIONSHIPS |
Please refer to the s172 statement in the Strategic Report. |
ENGAGEMENT WITH EMPLOYEES |
Please refer to the s172 statement in the Strategic Report. |
ENGAGEMENT WITH SUPPLIERS, CUSTOMERS AND OTHERS |
Please refer to the s172 statement in the Strategic Report. |
STATEMENT OF CORPORATE GOVERNANCE ARRANGEMENTS |
Corporate governance is the system of rules, practices, and processes by which a firm is directed and controlled. Corporate governance essentially involves balancing the interests of a company's many stakeholders, such as shareholders, senior management executives, customers, suppliers, financiers, the government, and the community. |
Since corporate governance also provides the framework for attaining a company's objectives, it encompasses practically every sphere of management, from action plans and internal controls to performance measurement and corporate disclosure. |
Sabtina Limited follows these corporate governance principles using the internally generated code adopted by all LAFICO entities. |
STREAMLINED ENERGY AND CARBON REPORTING |
The company's only premises are an office of approximately 150 square feet. The directors are satisfied that the company consumed less than 40,000kWh of energy during the year and so no energy consumption information is considered necessary. |
SABTINA LIMITED (REGISTERED NUMBER: 01794877) |
REPORT OF THE DIRECTORS |
FOR THE YEAR ENDED 30 JUNE 2022 |
STATEMENT OF DIRECTORS' RESPONSIBILITIES |
The directors are responsible for preparing the Strategic Report, the Report of the Directors 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), including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'. 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: |
- | select suitable accounting policies and then apply them consistently; |
- | make judgements and accounting estimates that are reasonable and prudent; |
- | state whether applicable accounting standards have been followed, subject to any material departures disclosed and explained in the financial statements; |
- | prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business. |
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. |
DIRECTORS NOT IN POST DURING ACCOUNTING PERIOD |
The directors wish to highlight the fact that they have only been appointed as directors of the company on 16th May 2022, and therefore were not in post during the year under review in these financial statements. |
STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS |
So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the company's auditors are unaware, and each director has taken all the steps that he ought to have taken as a director in order to make himself aware of any relevant audit information and to establish that the company's auditors are aware of that information. |
AUDITORS |
The auditors, Ashdown Hurrey Auditors Limited, will be proposed for re-appointment at the forthcoming Annual General Meeting. |
ON BEHALF OF THE BOARD: |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
SABTINA LIMITED |
Qualified Opinion |
We have audited the financial statements of Sabtina Limited (the 'company') for the year ended 30 June 2022 which comprise the Statement of Comprehensive Income, Balance Sheet, Statement of Changes in Equity, Cash Flow Statement and Notes to the Cash Flow Statement, Notes to the Financial Statements, including a summary of 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, except for the possible effects of the matters described in the Basis for qualified opinion section of our report, the financial statements: |
- give a true and fair view of the state of the company's affairs as at 30 June 2022 and of its loss for the year then ended; |
- have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and |
- have been prepared in accordance with the requirements of the Companies Act 2006. |
Basis for qualified opinion |
With respect to the liability to LAFICO having a carrying amount of £3,511,229 the audit evidence available to us was limited because the balance certificate received was materially different to this figure. Sabtina Ltd and its parent were unable to reconcile these balances in the time available. We are therefore unable to clarify the correct balance.We were unable to obtain sufficient appropriate audit evidence regarding the liability to LAFICO by using other audit procedures. |
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 Auditors' 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. |
Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report. |
Emphasis of matter |
We draw attention to notes 11 and 18 to the financial statements which highlight the restrictions on the use of the Company's assets which includes the Company's ability to access if bank accounts and to make cash receipts and payments. Our opinion is not modified in respect of this matter. |
Other information |
The directors are responsible for the other information. The other information comprises the information in the Strategic Report and the Report of the Directors, but does not include the financial statements and our Report of the Auditors thereon. |
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 statements, 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 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 the audit: |
- | the information given in the Strategic Report and the Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and |
- | the Strategic Report and the Report of the Directors have been prepared in accordance with applicable legal requirements. |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
SABTINA LIMITED |
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 Report of the Directors. |
We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion: |
- | adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or |
- | the financial statements are not in agreement with the accounting records and returns; or |
- | certain disclosures of directors' remuneration specified by law are not made; or |
- | we have not received all the information and explanations we require for our audit. |
Responsibilities of directors |
As explained more fully in the Statement of Directors' Responsibilities set out on page six, 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 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. |
Auditors' 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 a Report of the Auditors 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. |
The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below: |
During the planning stage of this audit we considered the likelihood of irregularities around laws and regulations relevant to the company, including enquiry of management and those charged with governance. We reviewed the company's systems and controls in place, and formed an assessment as to their operational effectiveness. |
We obtained an understanding of the legal and regulatory frameworks that are applicable to the entity and determined that the most significant are those that relate to the UK sanctions regime. |
Based on the results of our risk assessment we designed our audit procedures to identify non-compliance with such laws and regulations identified above. |
During the course of this audit we discussed this area with senior members of the company's staff, including directors, and also carried out a review of legal expenses for evidence of any issues. |
We considered the risk of fraud through management override and, in response, we incorporated testing of manual journal entries into our audit approach. |
We are therefore of the opinion that given the risk level identified, our procedures planned and undertaken, are adequate for detecting irregularities. |
A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Auditors. |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
SABTINA LIMITED |
Use of our report |
This report is made solely to the company's members, as a body, 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 members those matters we are required to state to them in a Report of the Auditors 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 members as a body, for our audit work, for this report, or for the opinions we have formed. |
for and on behalf of |
Statutory Auditor |
20 Havelock Road |
Hastings |
East Sussex |
TN34 1BP |
SABTINA LIMITED (REGISTERED NUMBER: 01794877) |
STATEMENT OF COMPREHENSIVE INCOME |
FOR THE YEAR ENDED 30 JUNE 2022 |
30.6.22 | 30.6.21 |
Notes | £ | £ |
TURNOVER | 3 |
Administrative expenses | ( |
) | ( |
) |
(280,913 | ) | (322,904 | ) |
Other operating income |
OPERATING LOSS | 5 | ( |
) | ( |
) |
Interest receivable and similar income |
(259,530 | ) | (321,462 | ) |
Interest payable and similar expenses | 7 |
LOSS BEFORE TAXATION | ( |
) | ( |
) |
Tax on loss | 8 |
LOSS FOR THE FINANCIAL YEAR | ( |
) | ( |
) |
OTHER COMPREHENSIVE INCOME | - | - |
TOTAL COMPREHENSIVE LOSS FOR THE YEAR |
( |
) |
( |
) |
SABTINA LIMITED (REGISTERED NUMBER: 01794877) |
BALANCE SHEET |
30 JUNE 2022 |
30.6.22 | 30.6.21 |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Tangible assets | 9 |
CURRENT ASSETS |
Debtors | 10 |
Cash at bank and in hand | 11 |
CREDITORS |
Amounts falling due within one year | 12 |
NET CURRENT ASSETS |
TOTAL ASSETS LESS CURRENT LIABILITIES |
PROVISIONS FOR LIABILITIES | 13 |
NET ASSETS |
CAPITAL AND RESERVES |
Called up share capital | 14 |
Retained earnings | 15 |
SHAREHOLDERS' FUNDS |
The financial statements were approved by the Board of Directors and authorised for issue on |
SABTINA LIMITED (REGISTERED NUMBER: 01794877) |
STATEMENT OF CHANGES IN EQUITY |
FOR THE YEAR ENDED 30 JUNE 2022 |
Called up |
share | Retained | Total |
capital | earnings | equity |
£ | £ | £ |
Balance at 1 July 2020 |
Changes in equity |
Total comprehensive loss | - | ( |
) | ( |
) |
Balance at 30 June 2021 |
Changes in equity |
Total comprehensive loss | - | ( |
) | ( |
) |
Balance at 30 June 2022 |
SABTINA LIMITED (REGISTERED NUMBER: 01794877) |
CASH FLOW STATEMENT |
FOR THE YEAR ENDED 30 JUNE 2022 |
30.6.22 | 30.6.21 |
Notes | £ | £ |
Cash flows from operating activities |
Cash generated from operations | 1 | ( |
) | ( |
) |
Interest paid |
Net cash from operating activities | ( |
) | ( |
) |
Cash flows from investing activities |
Purchase of tangible fixed assets | ( |
) |
Interest received |
Net cash from investing activities | ( |
) |
Cash flows from financing activities |
Amounts received from parent entities |
LAFICO Property costs | ( |
) |
Net cash from financing activities | ( |
) |
(Decrease)/increase in cash and cash equivalents | ( |
) |
Cash and cash equivalents at beginning of year |
2 |
3,311,922 |
Cash and cash equivalents at end of year |
2 |
SABTINA LIMITED (REGISTERED NUMBER: 01794877) |
NOTES TO THE CASH FLOW STATEMENT |
FOR THE YEAR ENDED 30 JUNE 2022 |
1. | RECONCILIATION OF LOSS BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS |
30.6.22 | 30.6.21 |
£ | £ |
Loss before taxation | ( |
) | ( |
) |
Depreciation charges |
Profit on disposal of fixed assets | ( |
) |
Increase/(Decrease) in provisions | 35,000 | - |
Finance costs | - | (5 | ) |
Finance income | (1,818 | ) | (1,442 | ) |
(217,813 | ) | (334,582 | ) |
Decrease/(increase) in trade and other debtors | ( |
) |
Increase/(decrease) in trade and other creditors | ( |
) |
Cash generated from operations | ( |
) | ( |
) |
2. | CASH AND CASH EQUIVALENTS |
The amounts disclosed on the Cash Flow Statement in respect of cash and cash equivalents are in respect of these Balance Sheet amounts: |
Year ended 30 June 2022 |
30.6.22 | 1.7.21 |
£ | £ |
Cash and cash equivalents | 5,720,825 | 10,263,193 |
Year ended 30 June 2021 |
30.6.21 | 1.7.20 |
£ | £ |
Cash and cash equivalents | 10,263,193 | 3,311,922 |
3. | ANALYSIS OF CHANGES IN NET FUNDS |
At 1.7.21 | Cash flow | At 30.6.22 |
£ | £ | £ |
Net cash |
Cash at bank and in hand | 10,263,193 | (4,542,368 | ) | 5,720,825 |
10,263,193 | ( |
) | 5,720,825 |
Total | 10,263,193 | (4,542,368 | ) | 5,720,825 |
SABTINA LIMITED (REGISTERED NUMBER: 01794877) |
NOTES TO THE FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 30 JUNE 2022 |
1. | STATUTORY INFORMATION |
Sabtina Limited is a |
2. | ACCOUNTING POLICIES |
Basis of preparing the financial statements |
In preparing the financial statements, the directors are required to make an assessment of the ability of the company to continue as a going concern. The directors have considered a cash flow forecast for the company which covers the 12 month period from the date of signing these financial statements. |
On the basis of these forecasts and the fact that the company has substantial net current assets and net assets, the directors are confident that the company has adequate resources to continue in operational existence and to meet its liabilities as they fall due for the foreseeable future. As a result of the above, the directors have concluded that it remains appropriate to adopt a going concern basis of preparation in these financial statements. |
These accounts present information about the company as an individual undertaking and not about the group of which it is a member. |
The company's operating and presentation currencies are UK Sterling (£). |
Significant judgements and estimates |
Apart from those involving estimation, management have not had to make any significant judgements in the process of applying the company's accounting policies. |
Turnover |
Turnover represents property management commissions, excluding value added tax. These commissions are charged on a quarterly basis following the collection of rent from the property tenants. |
Tangible fixed assets |
Short leasehold | - |
Office equipment | - |
Fixtures and fittings | - |
Motor vehicles | - |
Computer equipment | - |
Taxation |
Taxation for the year comprises current and deferred tax. 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 equity. |
Current or deferred taxation assets and liabilities are not discounted. |
Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date. |
Deferred tax |
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date. |
Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference. |
Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. |
SABTINA LIMITED (REGISTERED NUMBER: 01794877) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 30 JUNE 2022 |
2. | ACCOUNTING POLICIES - continued |
Foreign currencies |
Monetary assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the balance sheet date. Transactions in foreign currencies are translated into sterling at the rate of exchange ruling at the date of transaction. Exchange differences are taken into account in arriving at the operating result. |
3. | TURNOVER |
The turnover and loss before taxation are attributable to the one principal activity of the company. |
An analysis of turnover by class of business is given below: |
30.6.22 | 30.6.21 |
£ | £ |
There is no difference between in geographical analysis of turnover whether it is analysed by place of supply or the destination of that supply. |
4. | EMPLOYEES AND DIRECTORS |
30.6.22 | 30.6.21 |
£ | £ |
Wages and salaries |
Social security costs |
The average number of employees during the year was as follows: |
30.6.22 | 30.6.21 |
Management and administration |
The company had an average monthly number of 2 (2021: 2) directors who do not hold contracts of employment with the company. |
30.6.22 | 30.6.21 |
£ | £ |
Directors' remuneration |
5. | OPERATING LOSS |
The operating loss is stated after charging/(crediting): |
30.6.22 | 30.6.21 |
£ | £ |
Depreciation - owned assets |
Profit on disposal of fixed assets | ( |
) |
Auditors' remuneration |
Foreign exchange differences | ( |
) |
6. | EXCEPTIONAL ITEMS |
30.6.22 | 30.6.21 |
£ | £ |
Exceptional items | (40,988 | ) | - |
SABTINA LIMITED (REGISTERED NUMBER: 01794877) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 30 JUNE 2022 |
A review of accrued income has highlighted the fact that the company is currently unable to collect a significant proportion of these. The Board has therefore decided to impair the accrued income balance. Due to the size of this impairment it has been treated as an exceptional item. |
7. | INTEREST PAYABLE AND SIMILAR EXPENSES |
30.6.22 | 30.6.21 |
£ | £ |
Interest on late paid tax | ( |
) |
8. | TAXATION |
Analysis of the tax charge |
No liability to UK corporation tax arose for the year ended 30 June 2022 nor for the year ended 30 June 2021. |
Reconciliation of total tax charge included in profit and loss |
The tax assessed for the year is higher than the standard rate of corporation tax in the UK. The difference is explained below: |
30.6.22 | 30.6.21 |
£ | £ |
Loss before tax | ( |
) | ( |
) |
Loss multiplied by the standard rate of corporation tax in the UK of (2021 - |
( |
) |
( |
) |
Effects of: |
Expenses not deductible for tax purposes |
Capital allowances in excess of depreciation | ( |
) | ( |
) |
Utilisation of tax losses |
Total tax charge | - | - |
9. | TANGIBLE FIXED ASSETS |
Fixtures |
Short | Office | and |
leasehold | equipment | fittings |
£ | £ | £ |
COST |
At 1 July 2021 |
Additions |
At 30 June 2022 |
DEPRECIATION |
At 1 July 2021 |
Charge for year |
At 30 June 2022 |
NET BOOK VALUE |
At 30 June 2022 |
At 30 June 2021 |
SABTINA LIMITED (REGISTERED NUMBER: 01794877) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 30 JUNE 2022 |
9. | TANGIBLE FIXED ASSETS - continued |
Motor | Computer |
vehicles | equipment | Totals |
£ | £ | £ |
COST |
At 1 July 2021 |
Additions |
At 30 June 2022 |
DEPRECIATION |
At 1 July 2021 |
Charge for year |
At 30 June 2022 |
NET BOOK VALUE |
At 30 June 2022 |
At 30 June 2021 |
10. | DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
30.6.22 | 30.6.21 |
£ | £ |
Trade debtors |
Amounts owed by group undertakings |
Other debtors |
VAT |
Prepayments and accrued income |
11. | CASH AT BANK AND IN HAND |
30.6.22 | 30.6.21 |
£ | £ |
Amounts available under licence | 4,386,685 | 10,263,163 |
Amounts not available to the company | 1,334,110 | - |
Cash in hand |
The company operates under the UK sanctions regime and so is only able to operate its bank accounts if authorised by the UK Office for Financial Sanctions Implementation. Accounts for which licences to operate have not been granted are unable to be operated, although the balances within them remain the property of the company and where relevant continue to accrue interest. Although such amounts are unavailable to the company, they are not considered to be impaired. |
Within the amounts deemed unavailable, is an inter account transfer of £400,000 which is frozen in the banking system awaiting authorisation from the Spanish authorities to complete the transfer. |
SABTINA LIMITED (REGISTERED NUMBER: 01794877) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 30 JUNE 2022 |
12. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
30.6.22 | 30.6.21 |
£ | £ |
Trade creditors |
Amounts owed to group undertakings |
Social security and other taxes | ( |
) | ( |
) |
Other creditors |
Accrued expenses |
13. | PROVISIONS FOR LIABILITIES |
A provision for compensation has been included within the financial statements of £35,000. |
14. | CALLED UP SHARE CAPITAL |
Allotted, issued and fully paid: |
Number: | Class: | Nominal | 30.6.22 | 30.6.21 |
value: | £ | £ |
Ordinary | £1 |
15. | RESERVES |
Retained |
earnings |
£ |
At 1 July 2021 |
Deficit for the year | ( |
) |
At 30 June 2022 |
16. | ULTIMATE PARENT COMPANY |
Libyan Foreign Investment Company (LAFICO) (incorporated in Libya ) is regarded by the directors as being the company's ultimate parent company. |
LAFICO is controlled by the Libyan Investment Authority; a Libyan Sovereign Wealth Fund. |
17. | RELATED PARTY DISCLOSURES |
Related party balances are not secured. |
30.6.22 | 30.6.21 |
£ | £ |
Commission earned on rents collected | ( |
) | ( |
) |
Directors costs paid by LAFICO |
Amounts paid out on behalf of LAFICO | 4,392,550 | - |
Amount due from related party |
Amount due to related party | ( |
) | ( |
) |
30.6.22 | 30.6.21 |
£ | £ |
Remuneration and directors fees |
SABTINA LIMITED (REGISTERED NUMBER: 01794877) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 30 JUNE 2022 |
17. | RELATED PARTY DISCLOSURES - continued |
30.6.22 | 30.6.21 |
£ | £ |
Purchases |
Amount due to related party | ( |
) | ( |
) |
30.6.22 | 30.6.21 |
£ | £ |
Amount due to related party | ( |
) | ( |
) |
18. | RESTRICTED ASSETS |
As a result of UN sanctions imposed on Libya on 26 February 2011 and subsequent action by the UK Treasury, the company's bank accounts were frozen (excluding those held in Libya). By subsequent licence issued by the UK Treasury an arrangement was set up by which cash receipts and necessary payments were able to be received and made. The licence does not permit payments to the shareholders. |
At the end of the year £5,023,412 (2021: £9,564,698) was held in frozen accounts. |
These sanctions are regulated by the Office for Financial Sanctions Implementation, a department of HM Treasury and their operation delegated to the company's bankers. |
Although the UN sanctions regime has now been lifted the restrictions imposed by the UK Treasury remain in place. |