Caseware UK (AP4) 2022.0.179 2022.0.179 2022-12-312022-12-31falsetrue22022-01-012false 12973920 2022-01-01 2022-12-31 12973920 2020-10-26 2021-12-31 12973920 2022-12-31 12973920 2021-12-31 12973920 1 2022-01-01 2022-12-31 12973920 1 2020-10-26 2021-12-31 12973920 2 2022-01-01 2022-12-31 12973920 2 2020-10-26 2021-12-31 12973920 d:Director1 2022-01-01 2022-12-31 12973920 d:Director2 2022-01-01 2022-12-31 12973920 d:Director2 2022-12-31 12973920 d:Director3 2022-01-01 2022-12-31 12973920 d:Director3 2022-12-31 12973920 d:RegisteredOffice 2022-01-01 2022-12-31 12973920 e:FreeholdInvestmentProperty 2022-01-01 2022-12-31 12973920 e:FreeholdInvestmentProperty 2022-12-31 12973920 e:FreeholdInvestmentProperty 2021-12-31 12973920 e:FreeholdInvestmentProperty 2 2022-01-01 2022-12-31 12973920 e:CurrentFinancialInstruments 2022-12-31 12973920 e:CurrentFinancialInstruments 2021-12-31 12973920 e:Non-currentFinancialInstruments 2022-12-31 12973920 e:Non-currentFinancialInstruments 2021-12-31 12973920 e:CurrentFinancialInstruments e:WithinOneYear 2022-12-31 12973920 e:CurrentFinancialInstruments e:WithinOneYear 2021-12-31 12973920 e:Non-currentFinancialInstruments e:AfterOneYear 2022-12-31 12973920 e:Non-currentFinancialInstruments e:AfterOneYear 2021-12-31 12973920 e:Non-currentFinancialInstruments e:BetweenTwoFiveYears 2022-12-31 12973920 e:Non-currentFinancialInstruments e:BetweenTwoFiveYears 2021-12-31 12973920 e:UKTax 2022-01-01 2022-12-31 12973920 e:UKTax 2020-10-26 2021-12-31 12973920 e:ShareCapital 2022-01-01 2022-12-31 12973920 e:ShareCapital 2022-12-31 12973920 e:ShareCapital 2020-10-26 2021-12-31 12973920 e:ShareCapital 2021-12-31 12973920 e:SharePremium 2022-01-01 2022-12-31 12973920 e:SharePremium 2022-12-31 12973920 e:SharePremium 2020-10-26 2021-12-31 12973920 e:SharePremium 2021-12-31 12973920 e:RetainedEarningsAccumulatedLosses 2022-01-01 2022-12-31 12973920 e:RetainedEarningsAccumulatedLosses 2022-12-31 12973920 e:RetainedEarningsAccumulatedLosses 2020-10-26 2021-12-31 12973920 e:RetainedEarningsAccumulatedLosses 2021-12-31 12973920 e:RetirementBenefitObligationsDeferredTax 2022-12-31 12973920 e:RetirementBenefitObligationsDeferredTax 2021-12-31 12973920 e:OtherDeferredTax 2022-12-31 12973920 e:OtherDeferredTax 2021-12-31 12973920 d:OrdinaryShareClass1 2022-01-01 2022-12-31 12973920 d:OrdinaryShareClass1 2022-12-31 12973920 d:OrdinaryShareClass1 2021-12-31 12973920 d:FRS102 2022-01-01 2022-12-31 12973920 d:Audited 2022-01-01 2022-12-31 12973920 d:FullAccounts 2022-01-01 2022-12-31 12973920 d:PrivateLimitedCompanyLtd 2022-01-01 2022-12-31 iso4217:GBP xbrli:shares xbrli:pure

Registered number: 12973920









HOBART ACTIVUM (LINCOLN) LIMITED









ANNUAL REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2022

 
HOBART ACTIVUM (LINCOLN) LIMITED
 
 
COMPANY INFORMATION


Directors
J C R de Lusignan 
J M Walker (appointed 12 December 2022)
B J Betel (resigned 12 December 2022)




Registered number
12973920



Registered office
Eighth Floor
6 New Street Square

New Fetter Lane

London

EC4A 3AQ




Independent auditors
Grant Thornton UK LLP
Chartered Accountant & Statutory Auditor

110 Queen Street

Glasgow

G1 3BX




Accountants
Rawlinson & Hunter LLP
Chartered Accountants

Eighth Floor

6 New Street Square

New Fetter Lane

London

EC4A 3AQ





 
HOBART ACTIVUM (LINCOLN) LIMITED
 

CONTENTS



Page
Directors' Report
1 - 2
Independent Auditors' Report
3 - 8
Statement of Profit and Loss
9
Balance Sheet
10
Statement of Changes in Equity
11
Notes to the Financial Statements
12 - 20


 
HOBART ACTIVUM (LINCOLN) LIMITED
 
 
 
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2022

The directors present their report and the financial statements for the year ended 31 December 2022. The comparative figures are for the period from incorporation on 26 October 2020 to 31 December 2021.

Principal activity

The principal activity of the company during the period was that of a property investment and rental company.

Directors

The directors who served during the year were:

J C R de Lusignan 
J M Walker (appointed 12 December 2022)
B J Betel (resigned 12 December 2022)

Directors' responsibilities statement

The directors are responsible for preparing the Directors' 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, including FRS 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;

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 to enable them to ensure that the financial statements comply with the Companies Act 2006They 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. 

The directors confirm that:
 
so far as each director is aware, there is no relevant audit information of which the company's auditor is unaware, and

the directors have taken all the steps that they ought to have taken as directors in order to make themselves aware of any relevant audit information and to establish that the company's auditor is aware of that information.

Auditor

The auditorsGrant Thornton UK LLPwill be automatically deemed reappointed under section 487 of the Companies Act 2006.

Page 1

 
HOBART ACTIVUM (LINCOLN) LIMITED
 
 
 
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022

Small companies note

In preparing this report, the directors have taken advantage of the small companies exemptions provided by section 415A of the Companies Act 2006.

This report was approved by the board and signed on its behalf.
 





J C R de Lusignan
Director

Date: 20 November 2023

Page 2

 
HOBART ACTIVUM (LINCOLN) LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF HOBART ACTIVUM (LINCOLN) LIMITED
 

Opinion


We have audited the financial statements of Hobart Activum (Lincoln) Limited (the ‘company’) for the year ended 31 December 2022 which comprise the Statement of Profit and Loss, Balance Sheet, Statement of Changes in Equity and 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 the financial statements:


give a true and fair view of the state of the company's affairs as at 31 December 2022 and of its profit 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 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.


Page 3

 
HOBART ACTIVUM (LINCOLN) LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF HOBART ACTIVUM (LINCOLN) LIMITED (CONTINUED)


Conclusions relating to going concern


We are responsible for concluding on the appropriateness of the directors’ use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the company’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify the auditor’s opinion. Our conclusions are based on the audit evidence obtained up to the date of our report. However, future events or conditions may cause the company to cease to continue as a going concern.
In our evaluation of the directors’ conclusions, we considered the inherent risks associated with the  company’s business model including effects arising from macro-economic uncertainties such as high inflation and interest rates, we assessed and challenged the reasonableness of estimates made by the directors and the related disclosures and analysed how those risks might affect the company’s financial resources or ability to continue operations over the going concern period.  


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.


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. 
The responsibilities of the directors with respect to going concern are described in the ‘Responsibilities of directors for the financial statements’ section of this report.


Other information


The directors are responsible for the other information. The other information comprises the information included in the annual report and financial statements, other than the financial statements and our auditor’s report 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 there is a material misstatement in the financial statements or a material misstatement of the other information. 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.


Page 4

 
HOBART ACTIVUM (LINCOLN) LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF HOBART ACTIVUM (LINCOLN) LIMITED (CONTINUED)


Opinion 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 directors' report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
the directors' report has been prepared in accordance with applicable legal requirements.


Matter on which we are required to report under the Companies Act 2006
 

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 directors' report.


Matters on which we are required to report by exception
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:


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; or
the directors were not entitled to prepare the financial statements in accordance with the small companies regime and take advantage of the small companies' exemptions in preparing the directors' report and from the requirement to prepare a strategic report.


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.


Page 5

 
HOBART ACTIVUM (LINCOLN) LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF HOBART ACTIVUM (LINCOLN) LIMITED (CONTINUED)


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.
A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council’s website e at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditors' report.
 
Page 6

 
HOBART ACTIVUM (LINCOLN) LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF HOBART ACTIVUM (LINCOLN) LIMITED (CONTINUED)



Explanation as to what extent the audit was considered capable of detecting irregularities, including fraud
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. Owing to the inherent limitations of an audit, there is an unavoidable risk that material misstatements in the financial statements may not be detected, even though the audit is properly planned and performed in accordance with the ISAs (UK). 
The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below: 



We obtained an understanding of the legal and regulatory frameworks that are applicable to the company and industry in which it operates through our general commercial and sector experience and discussions with management. We determined that the most significant which are directly relevant to specific assertions in the financial statements are those related to the reporting framework, including FRS 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland’ and the Companies Act 2006
We assessed the susceptibility of entity’s financial statements to material misstatement, including how fraud might occur, by making enquires of management.  Audit procedures performed by the engagement team included:
Identifying and evaluating the design effectiveness of controls that management has in place to prevent and detect fraud;
challenging assumptions and judgements made by management in its significant accounting estimates; and
identifying and testing journals, with a focus on material manual journals and those considered by the engagement team to carry a higher risk of fraud.
We enquired of management whether they were aware of any instances of non-compliance with laws and regulations or whether they had any knowledge of actual, suspected or alleged fraud.
These audit procedures were designed to provide reasonable assurance that the financial statements were free from fraud or error. The risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error and detecting irregularities that result from fraud is inherently more difficult than detecting those that result from error, as fraud may involve collusion, deliberate concealment, forgery or intentional misrepresentations. Also, the further removed non-compliance with laws and regulations is from events and transactions reflected in the financial statements, the less likely we would become aware of it. 
The assessment of the appropriateness of the collective competence and capabilities of the engagement team included consideration of the engagement team’s:
understanding of, and practical experience with audit engagements of a similar nature and complexity through appropriate training and participation;
knowledge of the industry in which the client operates; and
understanding of the requirements of FRS 102 in conformity with the requirements of the Companies Act 2006 and the application of the legal and regulatory requirements to the company.
Team communications in respect of potential non-compliance with laws and regulations and fraud included the potential for fraud due to management override of controls and manual adjustments to revenue.


Page 7

 
HOBART ACTIVUM (LINCOLN) LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF HOBART ACTIVUM (LINCOLN) LIMITED (CONTINUED)


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 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 members as a body, for our audit work, for this report, or for the opinions we have formed.



  
James Andersen
 
Senior Statutory Auditor
for and on behalf of Grant Thornton UK LLP
Statutory Auditor, Chartered Accountants
Glasgow
  

20 November 2023
Page 8

 
HOBART ACTIVUM (LINCOLN) LIMITED
 
 
STATEMENT OF PROFIT AND LOSS
FOR THE YEAR ENDED 31 DECEMBER 2022

31 December
Period ended
31 December
2022
2021
Note
£
£

  

Turnover
  
2,851,763
2,949,421

Cost of sales
  
(360,220)
(401,175)

Gross profit
  
2,491,543
2,548,246

Administrative expenses
  
(174,101)
(217,754)

Fair value movements
 5 
997,351
2,847,356

Operating profit
  
3,314,793
5,177,848

Interest receivable and similar income
  
328
4

Interest payable and similar expenses
  
(1,564,483)
(1,199,547)

Profit before tax
  
1,750,638
3,978,305

Tax on profit
 4 
(659,909)
(1,017,707)

Profit for the financial year/period
  
1,090,729
2,960,598

There were no recognised gains and losses for 2022 or 2021 other than those included in the statement of profit and loss.

The notes on pages 12 to 20 form part of these financial statements.

Page 9

 
HOBART ACTIVUM (LINCOLN) LIMITED
REGISTERED NUMBER: 12973920

BALANCE SHEET
AS AT 31 DECEMBER 2022

2022
2021
Note
£
£

Fixed assets
  

Investment property
 5 
28,937,002
27,938,126

  
28,937,002
27,938,126

Current assets
  

Debtors: amounts falling due within one year
 6 
4,238,297
5,091,062

Cash at bank and in hand
 7 
234,777
3,400

  
4,473,074
5,094,462

Creditors: amounts falling due within one year
 8 
(6,334,900)
(7,513,911)

Net current liabilities
  
 
 
(1,861,826)
 
 
(2,419,449)

Total assets less current liabilities
  
27,075,176
25,518,677

Creditors: amounts falling due after more than one year
 9 
(15,622,514)
(15,406,082)

Provisions for liabilities
  

Deferred tax
 11 
(994,141)
(744,803)

  
 
 
(994,141)
 
 
(744,803)

Net assets
  
10,458,521
9,367,792


Capital and reserves
  

Called up share capital 
 12 
101
101

Share premium account
 13 
6,407,093
6,407,093

Profit and loss account
 13 
4,051,327
2,960,598

  
10,458,521
9,367,792


The financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies regime and in accordance with the provisions of FRS 102 Section 1A - small entities.

The financial statements were approved and authorised for issue by the board and were signed on its behalf by: 


J C R de Lusignan
Director

Date: 20 November 2023

The notes on pages 12 to 20 form part of these financial statements.

Page 10

 
HOBART ACTIVUM (LINCOLN) LIMITED
 

STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2022


Called up share capital
Share premium account
Profit and loss account
Total equity

£
£
£
£



Profit for the period
-
-
2,960,598
2,960,598
Total comprehensive income for the period
-
-
2,960,598
2,960,598

Shares issued during the period
101
6,407,093
-
6,407,194


Total transactions with owners
101
6,407,093
-
6,407,194



At 1 January 2022
101
6,407,093
2,960,598
9,367,792



Profit for the year
-
-
1,090,729
1,090,729
Total comprehensive income for the year
-
-
1,090,729
1,090,729


At 31 December 2022
101
6,407,093
4,051,327
10,458,521


The notes on pages 12 to 20 form part of these financial statements.

Page 11

 
HOBART ACTIVUM (LINCOLN) LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022

1.


General information

Hobart Activum (Lincoln) Limited is a private company, limited by shares, incorporated in England and Wales with registration number 12973920. The registered office is Eighth Floor, 6 New Street Square, New Fetter Lane, London, EC4A 3AQ. 

2.Accounting policies

 
2.1

Basis of preparation of financial statements

The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Section 1A of Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and the Companies Act 2006.

The following principal accounting policies have been applied:

 
2.2

Going concern

The financial statements have been prepared on a going concern basis which the directors consider to be appropriate. The directors have considered the cash requirements of the company for a period of at least 12 months from the date of approval of the financial statements which indicate that the company will have sufficient funds to continue to meet its liabilities as they fall due.
Management anticipates any short-term funding gaps that arise over the course of operations will be met via intercompany funding from other Hobart-Activum entities, as described in the group's cash management policy. Whilst the company has shareholder loans owing to ASG Fund VI Maple S.a.r.l that are repayable on demand, it is not anticipated these will be recalled until the future sale of the company’s assets.
Therefore, the directors have prepared the financial statements on a going concern basis.

  
2.3

Judgements in applying accounting policies and key sources of estimation uncertainty

The preparation of financial statements that comply with FRS 102 requires management to make judgements, estimates and assumptions which can affect the application of accounting policies and reported amounts of assets, liabilities, income and expenses. Actual results may differ from these estimates. These estimates and underlying assumptions are reviewed on an ongoing basis and revisions are recognised prospectively. Accounting judgements that have the most significant effects on reported amounts and further information about estimated uncertainties are highlighted in accounting policy 2.7.

 
2.4

Revenue

Turnover comprises revenue recognised by the company in respect of rent and service charge receivable for the period, exclusive of Value Added Tax.
Lease incentives are spread over the term of the lease unless specifically related to Covid-19, in
which case any rent forgiveness is recognised in the period to which it relates.
Where a tenant defaults on payment, escrow funding substitutes the income. Where a tenant pays late, escrow funding is held on the balance sheet only. 

Page 12

 
HOBART ACTIVUM (LINCOLN) LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022

2.Accounting policies (continued)

 
2.5

Finance costs

Finance costs are charged to profit or loss 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.

 
2.6

Current and deferred taxation

The tax expense for the year comprises current and deferred tax. Tax is recognised in profit or loss except that a charge attributable to an item of income and expense recognised as other comprehensive income or to an item recognised directly in equity is also recognised in other comprehensive income or directly in equity respectively.

The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the balance sheet date in the countries where the company operates and generates income.

Deferred tax balances are recognised in respect of all timing differences that have originated but not reversed by the balance sheet date, except that:
The recognition of deferred tax assets is limited to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits; and
Any deferred tax balances are reversed if and when all conditions for retaining associated tax allowances have been met.

Deferred tax balances are not recognised in respect of permanent differences except in respect of business combinations, when deferred tax is recognised on the differences between the fair values of assets acquired and the future tax deductions available for them and the differences between the fair values of liabilities acquired and the amount that will be assessed for tax. Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the balance sheet date.

 
2.7

Investment property

Investment properties on initial recognition are measured at cost, including transaction costs and subsequently stated at fair value determined using discounted cashflow analysis of all anticipated cashflows based on expected revenue & expenses and expected realisation from the sale of the asset. Any gain or loss arising from a change in fair value is recognised in the Statement of Profit and Loss.
The directors consider the calculation of the fair value to be an area of estimation uncertainty, particularly determination of inputs such as discount rate and exit yield. While this represents the best estimation of fair value at the reporting date, actual sale prices achieved (should the investment properties be sold) may be higher or lower than the most recent valuation. This is particularly relevant in periods of market illiquidity or uncertainty.

 
2.8

Debtors

Short term debtors are measured at transaction price, less any impairment.

Page 13

 
HOBART ACTIVUM (LINCOLN) LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022

2.Accounting policies (continued)

 
2.9

Cash and cash equivalents

Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours. Cash equivalents are highly liquid investments that mature in no more than three months from the date of acquisition and that are readily convertible to known amounts of cash with insignificant risk of change in value.

 
2.10

Creditors

Short-term creditors are measured at the transaction price. Other financial liabilities, including bank loans, are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method.

 
2.11

Provisions for liabilities

Provisions are made where an event has taken place that gives the company a legal or constructive obligation that probably requires settlement by a transfer of economic benefit, and a reliable estimate can be made of the amount of the obligation.
Provisions are charged as an expense to profit or loss in the year that the company becomes aware of the obligation, and are measured at the best estimate at the balance sheet date of the expenditure required to settle the obligation, taking into account relevant risks and uncertainties.
When payments are eventually made, they are charged to the provision carried in the Balance Sheet.

 
2.12

Financial instruments

The company only enters into basic financial instrument transactions that result in the recognition of financial assets and liabilities like trade and other debtors and creditors, and bank loans.


3.


Employees

The average monthly number of employees, including directors, during the year was 2 (2021 - 2).

Page 14

 
HOBART ACTIVUM (LINCOLN) LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022

4.


Taxation


31 December
Period ended
31 December
2022
2021
£
£

Corporation tax


Current tax on profits for the year
437,865
272,904

Adjustments in respect of previous periods
(27,294)
-


410,571
272,904


Total current tax
410,571
272,904

Deferred tax


Fixed asset timing differences
-
32,964

Capital gains
249,338
711,839

Total deferred tax
249,338
744,803


Taxation on profit on ordinary activities
659,909
1,017,707
Page 15

 
HOBART ACTIVUM (LINCOLN) LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022
 
4.Taxation (continued)


Factors affecting tax charge for the year/period

The tax assessed for the year/period is higher than (2021 - higher than) the standard rate of corporation tax in the UK of 19% (2021 - 19%). The differences are explained below:

31 December
Period ended
31 December
2022
2021
£
£


Profit on ordinary activities before tax
1,750,638
3,978,305


Profit on ordinary activities multiplied by standard rate of corporation tax in the UK of 19% (2021 - 19%)
332,621
755,878

Effects of:


Expenses not deductible for tax purposes
252,104
89,466

Income not taxable for tax purposes
(189,497)
(540,998)

Chargeable gains/(losses)
189,497
540,998

Remeasurement of deferred tax for changes in tax rates
59,841
178,753

Group relief
-
(6,390)

Adjustments to tax charge in respect of prior periods
(27,294)
-

Fixed asset differences
(114)
-

Hybrid and other mismatches adjustment
42,751
-

Total tax charge for the year/period
659,909
1,017,707

Page 16

 
HOBART ACTIVUM (LINCOLN) LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022

5.


Investment property


Freehold investment property

£



Valuation


At 1 January 2022
27,938,126


Additions at cost
1,525


Surplus on revaluation
997,351



At 31 December 2022
28,937,002

The investment property was revalued to fair value at 31 December 2022 based on a valuation undertaken by the directors, as described in notes 2.3 and 2.7.
The investment property was valued at £29m. These values have been adjusted for operating lease incentives to reflect the value of lease incentives currently shown under note 6.






If the Investment properties had been accounted for under the historic cost accounting rules, the properties would have been measured as follows:

2022
2021
£
£


Historic cost
25,092,295
25,090,770


6.


Debtors

2022
2021
£
£


Amounts owed by group undertakings
3,460,056
3,854,136

Other debtors
650,033
1,129,739

Prepayments and accrued income
128,208
107,187

4,238,297
5,091,062


Page 17

 
HOBART ACTIVUM (LINCOLN) LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022

7.


Cash and cash equivalents

2022
2021
£
£

Cash at bank and in hand
234,777
3,400



8.


Creditors: Amounts falling due within one year

2022
2021
£
£

Trade creditors
53,548
11,614

Amounts owed to group undertakings
5,540,066
6,360,748

Corporation tax
208,567
1,486

Other taxation and social security
106,117
151,067

Other creditors
32,046
663,351

Accruals and deferred income
394,556
325,645

6,334,900
7,513,911



9.


Creditors: Amounts falling due after more than one year

2022
2021
£
£

Bank loans
15,622,514
15,406,082



10.


Loans


Analysis of the maturity of loans is given below:


2022
2021
£
£



Amounts falling due 2-5 years

Bank loans
15,622,514
15,406,082



The company has a loan facility with ICG Alternative Investment Limited. The term of the facility is for 5 years to 31 March 2026 with interest payable at a rate of 3.87% per annum. Capital repayment is due at
the end of the term.
The facility is secured by a registered charge over the investment property.

Page 18

 
HOBART ACTIVUM (LINCOLN) LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022

11.


Deferred taxation




2022


£






At beginning of year
(744,803)


Charged to profit or loss
(249,338)



At end of year
(994,141)

The provision for deferred taxation is made up as follows:

2022
2021
£
£


Fixed asset timing differences
(32,964)
(32,964)

Capital gain
(961,177)
(711,839)

(994,141)
(744,803)

Page 19

 
HOBART ACTIVUM (LINCOLN) LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022

12.


Share capital

2022
2021
£
£
Allotted, called up and fully paid



101 (2021 - 101) Ordinary shares of £1.00 each
101
101



13.


Reserves

Share premium account

The share premium account represents the premium arising on the issue of shares net of issue costs. 

Profit and loss account

The profit and loss account represents cumulative realised and unrealised profits and losses net of dividends and other adjustments.


14.


Related party transactions

The company has taken advantage of the exemption conferred in Financial Reporting Standard 102 from the requirement to disclose transactions with wholly owned group companies. 


15.


Controlling party

Hobart Activum (Lincoln) Limited is a wholly owned subsidiary of Hobart Activum Holdings Limited, a company incorporated in England and Wales. Hobart Activum Holdings Limited is a wholly owned subsidiary of Hobart Activum JVCO Limited, a company incorporated in England and Wales. The ultimate controlling party is S A Goldstein.
 
The group headed by Hobart Activum JVCO Limited qualifies as small and therefore is exempt from producing consolidated accounts at that level.

Page 20