Company Registration No. 05210903 (England and Wales)
D & J SIMONS & ARTS LIMITED
UNAUDITED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 OCTOBER 2022
PAGES FOR FILING WITH REGISTRAR
D & J SIMONS & ARTS LIMITED
CONTENTS
Page
Balance sheet
1 - 2
Notes to the financial statements
3 - 10
D & J SIMONS & ARTS LIMITED
BALANCE SHEET
AS AT
31 OCTOBER 2022
31 October 2022
- 1 -
2022
2021
Notes
£
£
£
£
Fixed assets
Tangible assets
4
316
155
Investment properties
5
55,646,424
55,646,424
Investments
6
3,948,667
3,948,667
59,595,407
59,595,246
Current assets
Debtors
7
2,035,935
2,173,844
Cash at bank and in hand
99,675
-
0
2,135,610
2,173,844
Creditors: amounts falling due within one year
8
(18,326,136)
(18,781,152)
Net current liabilities
(16,190,526)
(16,607,308)
Total assets less current liabilities
43,404,881
42,987,938
Provisions for liabilities
Deferred tax liability
7,847,866
7,801,933
(7,847,866)
(7,801,933)
Net assets
35,557,015
35,186,005
Capital and reserves
Called up share capital
480
480
Investment property reserve
22,425,809
21,781,597
Profit and loss reserves
13,130,726
13,403,928
Total equity
35,557,015
35,186,005

The directors of the company have elected not to include a copy of the profit and loss account within the financial statements.true

D & J SIMONS & ARTS LIMITED
BALANCE SHEET (CONTINUED)
AS AT
31 OCTOBER 2022
31 October 2022
- 2 -

For the financial year ended 31 October 2022 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.

The directors acknowledge their responsibilities for complying with the requirements of the Companies Act 2006 with respect to accounting records and the preparation of financial statements.

The members have not required the company to obtain an audit of its financial statements for the year in question in accordance
with section 476.

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

The financial statements were approved by the board of directors and authorised for issue on 27 October 2023 and are signed on its behalf by:
H I Simons
Director
Company Registration No. 05210903
D & J SIMONS & ARTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 OCTOBER 2022
- 3 -
1
Accounting policies
Company information

D & J Simons & Arts Limited is a private company limited by shares incorporated in England and Wales. The registered office is 124-150 Hackney Road, London, E2 7QS.

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 as applicable to companies subject to the small companies regime. The disclosure requirements of section 1A of FRS 102 have been applied other than where additional disclosure is required to show a true and fair view.

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 modified to include the revaluation of investment properties. The principal accounting policies adopted are set out below.

1.2
Going concern

Atruet the time of approving the financial statements, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. This is dependent upon the on-going support of the shareholders and their other business interests. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.

1.3
Turnover

Turnover is recognised at the fair value of the income received or receivable in respect of the company's investment activities. Turnover is shown net of VAT.

Rent receivable is recognised on an accruals basis. Rental income is stated net of the cost of any lease incentives given, including rent-free periods, which are spread on straight-line basis over the term of the relevant lease.

1.4
Tangible fixed assets

Tangible fixed assets are measured at cost, net of depreciation and any impairment losses.

Depreciation is recognised so as to write off the cost of assets less their residual values over their useful lives on the following bases:

Fixtures, fittings & equipment
25% straight line

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is credited or charged to profit or loss.

1.5
Investment properties

Investment properties, which are properties held to earn rentals and/or for capital appreciation, are initially recognised at cost, which includes the purchase cost and any directly attributable expenditure. Subsequently, investment properties are measured at fair value at the reporting end date. The surplus or deficit on revaluation is recognised in profit or loss and is subsequently transferred within equity to the investment property reserve together with the associated deferred tax.

1.6
Fixed asset investments

Interests in associates are initially measured at cost and subsequently measured at cost less any accumulated impairment losses. The investments are assessed for impairment at each reporting date and any impairment losses or reversals of impairment losses are recognised immediately in profit or loss.

 

D & J SIMONS & ARTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2022
1
Accounting policies
(Continued)
- 4 -

An associate is an entity, being neither a subsidiary nor a joint venture, in which the company holds a long-term interest and where the company has significant influence. The company considers that it has significant influence where it has the power to participate in the financial and operating decisions of the associate.

1.7
Impairment of fixed assets

At each reporting period end date, the company reviews the carrying amounts of its tangible and intangible assets to determine whether there is any indication that those assets have suffered an impairment loss.

1.8
Cash and cash equivalents

Cash and cash equivalents are basic financial assets and include cash in hand and deposits held at call with banks.

1.9
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.

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.

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.

D & J SIMONS & ARTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2022
1
Accounting policies
(Continued)
- 5 -
Basic financial liabilities

Basic financial liabilities, including creditors and loans from fellow group and connected companies, 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.

 

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.

Derecognition of financial liabilities

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

1.10
Equity instruments

Equity instruments issued by the company are recorded at the proceeds received, net of transaction costs.

1.11
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.

1.12

Investment property reserve

The investment property reserve comprises fair value uplift on the company's investment properties net of the associated deferred tax. Any movement in the fair value of the investment properties and/or the deferred tax associated with it during the year is transferred from the profit and loss account into this reserve. The investment property reserve is non-distributable.

D & J SIMONS & ARTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2022
- 6 -
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.

Critical judgements

The following judgements (apart from those involving estimates) have had the most significant effect on amounts recognised in the financial statements.

Recoverability of related party loans

The directors have applied judgement in considering the recoverability of loans made to related parties, and based on the availability of the support of the shareholders and their other business interests, do not consider the loans to be impaired.

Key sources of estimation uncertainty

The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are as follows.

Valuation of investment properties

Determining the fair value of the company's investment properties as at the balance sheet date involves an element of estimation. The fair value of investment properties at the balance sheet date has been estimated by the directors based on recent valuations carried out by external valuers for bank purposes, and based on the directors’ own work. Such estimation is influenced by key data including location and condition, comparable market transactions, property yields and compliance with

planning laws and regulations. The directors have reviewed such assumptions and consider these to have been appropriately applied. Further description of the assumptions is given in note 6.

 

 

 

 

 

3
Employees

The company did not have any employees in the current or the prior financial year.

D & J SIMONS & ARTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2022
- 7 -
4
Tangible fixed assets
Plant and machinery etc
£
Cost
At 1 November 2021
30,891
Additions
258
At 31 October 2022
31,149
Depreciation and impairment
At 1 November 2021
30,736
Depreciation charged in the year
97
At 31 October 2022
30,833
Carrying amount
At 31 October 2022
316
At 31 October 2021
155

 

5
Investment property
2022
£
Fair value
At 1 November 2021 and 31 October 2022
55,646,424

Investment property includes a mixture of commercial and residential units:

 

a. Mixed-use unit with fair value of £4,538,633. The fair value has been arrived at by applying a comparable yield of 4% and 5.5% to the market rent of residential and commercial units respectively.

 

b. Commercial units with fair value of £11,462,791. The fair value has been based on an external valuation carried out in September 2020  and in April 2022, by applying a comparable yield of 5.25% to 5.5% instead of the valuer’s blended figure of 5.35% to 6.5% to the estimated market rent. The latter is influenced by factors such as the square footage of the units, comparable market rent and actual rent achieved post year end.

 

c. Residential units with fair value of £39,645,000. The fair value has been based on an external valuation carried out in September 2020 and in April 2022, by applying a comparable yield of 4% and assuming the valuer’s special basis of vacant possession sale of each individual units.

 

D & J SIMONS & ARTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2022
5
Investment property
(Continued)
- 8 -
If investment properties were stated on an historical cost basis rather than a fair value basis, the amounts would have been included as follows:
2022
2021
£
£
Cost
26,062,834
26,062,834
Accumulated depreciation
-
-
Carrying amount
26,062,834
26,062,834
6
Fixed asset investments
2022
2021
£
£
Shares in group undertakings and participating interests
3,948,667
3,948,667
Movements in fixed asset investments
Shares in group undertakings and participating interests
£
Cost or valuation
At 1 November 2021 & 31 October 2022
3,948,667
Carrying amount
At 31 October 2022
3,948,667
At 31 October 2021
3,948,667
7
Debtors
2022
2021
Amounts falling due within one year:
£
£
Trade debtors
4,580
18,600
Other debtors
2,003,903
2,006,070
Prepayments and accrued income
27,452
149,174
2,035,935
2,173,844
D & J SIMONS & ARTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2022
- 9 -
8
Creditors: amounts falling due within one year
2022
2021
£
£
Bank loans and overdrafts
-
0
18,380
Trade creditors
52
17,109
Amounts owed to group undertakings
8,778,341
6,698,762
Corporation tax
157,969
2,107,272
Other creditors
9,360,024
9,925,985
Accruals and deferred income
29,750
13,644
18,326,136
18,781,152
9
Financial commitments, guarantees and contingent liabilities

There is group set-off by HSBC bank under a Company Unlimited Multilateral Guarantee dated 10 May 2015 in relation to overdraft facilities between connected companies. As at the year end the maximum exposure was £468,544 (2021: £450,174).

 

A connected company had a loan outstanding at the year end of £25,000,000 which is secured by a charge over all present and future assets of the company.

10
Operating lease commitments
Lessor

At the reporting end date the company had contracted with tenants for the following minimum lease payments:

2022
2021
£
£
8,353,865
9,703,568
D & J SIMONS & ARTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2022
- 10 -
11
Related party transactions

The company owed £7,875,642 (2021: £6,098,762) to its parent, D & J Simons & Sons Ltd at the year end. The amount represents various transactions made on behalf of it. The amount is interest free and repayable on demand.

 

The company owed £9,359,954 (2021: £9,925,885) to Vindex Properties Limited, a company connected to D & J Simons & Arts by virtue of its 50% shareholding in Vindex Properties Limited. The amount represents various transactions made on behalf of it. The amount is interest free and repayable on demand.

 

The company owed £600,000 (2021: £600,000) to Jaksam Properties Limited, a company connected to D & J Simons & Arts Limited by virtue of having a common Parent, D & J Simons & Sons Ltd. The amount represents various intercompany loans between the companies. The loans are interest free and repayable on demand.

 

The company is owed £1,994,056 (2021: £1,994,006) by Thames Side Studios Limited, a company connected to D & J Simons & Arts Limited by Virtue of having a common parent shareholder and director The amount represents various intercompany loans between the companies. The loans are interest free and repayable on demand.

 

The company owed £250,000 (2021: £nil) to Gransim 5 and £52,699 (2021: £nil) to Emafyl. The amounts are interest free and repayable on demand.

 

2022-10-312021-11-01falseCCH SoftwareCCH Accounts Production 2023.100No description of principal activityH I SimonsD J SimonsA J RabbowA B SimonsR M SimonsA B Simons0052109032021-11-012022-10-31052109032022-10-31052109032021-10-3105210903core:OtherPropertyPlantEquipment2022-10-3105210903core:OtherPropertyPlantEquipment2021-10-3105210903core:CurrentFinancialInstrumentscore:WithinOneYear2022-10-3105210903core:CurrentFinancialInstrumentscore:WithinOneYear2021-10-3105210903core:CurrentFinancialInstruments2022-10-3105210903core:CurrentFinancialInstruments2021-10-3105210903core:ShareCapital2022-10-3105210903core:ShareCapital2021-10-3105210903core:OtherMiscellaneousReserve2022-10-3105210903core:OtherMiscellaneousReserve2021-10-3105210903core:RetainedEarningsAccumulatedLosses2022-10-3105210903core:RetainedEarningsAccumulatedLosses2021-10-3105210903bus:Director12021-11-012022-10-3105210903core:FurnitureFittings2021-11-012022-10-3105210903core:OtherPropertyPlantEquipment2021-10-3105210903core:OtherPropertyPlantEquipment2021-11-012022-10-31052109032021-10-3105210903bus:PrivateLimitedCompanyLtd2021-11-012022-10-3105210903bus:SmallCompaniesRegimeForAccounts2021-11-012022-10-3105210903bus:FRS1022021-11-012022-10-3105210903bus:AuditExempt-NoAccountantsReport2021-11-012022-10-3105210903bus:Director22021-11-012022-10-3105210903bus:Director32021-11-012022-10-3105210903bus:Director42021-11-012022-10-3105210903bus:Director52021-11-012022-10-3105210903bus:CompanySecretary12021-11-012022-10-3105210903bus:FullAccounts2021-11-012022-10-31xbrli:purexbrli:sharesiso4217:GBP