Company registration number 03827300 (England and Wales)
LA UK INVESTMENTS LIMITED
FINANCIAL STATEMENTS
FOR THE YEAR ENDED 28 FEBRUARY 2023
PAGES FOR FILING WITH REGISTRAR
LA UK INVESTMENTS LIMITED
CONTENTS
Page
Balance sheet
1
Statement of changes in equity
2
Notes to the financial statements
3 - 10
LA UK INVESTMENTS LIMITED
BALANCE SHEET
AS AT
28 FEBRUARY 2023
28 February 2023
- 1 -
2023
2022
as restated
Notes
£
£
£
£
Fixed assets
Tangible assets
6
2,298,510
2,346,190
Investment property
7
27,361,949
27,775,490
Investments
8
122,673
96,300
29,783,132
30,217,980
Current assets
Debtors
9
2,074,355
1,771,911
Cash at bank and in hand
856,091
1,426,749
2,930,446
3,198,660
Creditors: amounts falling due within one year
10
(435,028)
(435,144)
Net current assets
2,495,418
2,763,516
Total assets less current liabilities
32,278,550
32,981,496
Creditors: amounts falling due after more than one year
11
(27,338,179)
(27,410,095)
Provisions for liabilities
(2,625,527)
(2,728,912)
Net assets
2,314,844
2,842,489
Capital and reserves
Called up share capital
4,600,001
4,600,001
Revaluation reserve
8,184,794
8,494,951
Profit and loss reserves
(10,469,951)
(10,252,463)
Total equity
2,314,844
2,842,489
The directors of the company have elected not to include a copy of the profit and loss account within the financial statements.true
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 23 August 2023 and are signed on its behalf by:
A. K. Peer
Director
Company registration number 03827300 (England and Wales)
LA UK INVESTMENTS LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 28 FEBRUARY 2023
- 2 -
Share capital
Revaluation reserve
Profit and loss reserves
Total
£
£
£
£
Balance at 1 March 2021
4,600,001
3,691,219
(10,297,714)
(2,006,494)
Year ended 28 February 2022:
Loss
-
-
(259,521)
(259,521)
Other comprehensive income:
Tax relating to other comprehensive income
-
(2,728,912)
(2,728,912)
Total comprehensive income
-
(2,728,912)
(259,521)
(2,988,433)
Other movements
-
7,532,644
304,772
7,837,416
Balance at 28 February 2022 - as restated
4,600,001
8,494,951
(10,252,463)
2,842,489
Year ended 28 February 2023:
Loss
-
-
(217,488)
(217,488)
Other comprehensive income:
Tax relating to other comprehensive income
-
103,385
103,385
Total comprehensive income
-
103,385
(217,488)
(114,103)
Other movements
-
(413,542)
-
(413,542)
Balance at 28 February 2023
4,600,001
8,184,794
(10,469,951)
2,314,844
LA UK INVESTMENTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 28 FEBRUARY 2023
- 3 -
1
Accounting policies
Company information
LA UK Investments Limited is a private company limited by shares incorporated in England and Wales. The registered office is Third Floor, 55 Blandford Street, London, W1U 7HW.
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 certain assets. The principal accounting policies adopted are set out below.
1.2
Going concern
The Company's operations are dependent on the on-going support of its parent company, LA Group Proprietary Limited. true
The financial statements have been prepared on a going concern basis as the Company has received assurances from its parent company that it will not request repayment of the intercompany loans for at least twelve months and one day following the date of approval of the financial statements and it will continue to provide sufficient funds to enable the Company to meet its debts as they fall due.
1.3
Turnover
Turnover is recognised at the fair value of the consideration received or receivable for services provided, excluding discounts, rebates, VAT and other sales related taxes.
1.4
Intangible fixed assets - goodwill
Goodwill represents the excess of the cost of a business combination over the fair value of net assets acquired. It is initially recognised as an asset at cost and is subsequently measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is considered to have a finite useful life and was amortised on a straight line basis over its useful economic life of 7 years.
1.5
Tangible fixed assets
Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.
Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:
Leasehold land and buildings
over a period of 50 years
Fixtures and fittings
over four years
Computers
over four years
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.
LA UK INVESTMENTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 28 FEBRUARY 2023
1
Accounting policies
(Continued)
- 4 -
1.6
Investment property
Investment property, which is property held to earn rentals and/or for capital appreciation, is initially recognised at cost, which includes the purchase cost and any directly attributable expenditure. Subsequently it is normally measured at fair value at the reporting end date determined annually by external valuers and derived from the current market rents and investment property yields for comparable real estate, adjusted if necessary for any difference the nature, location or condition of the specific asset. No depreciation is provided. Changes in fair value are recognised in the Statement of Comprehensive Income.
1.7
Fixed asset investments
Investments are initially measured at transaction price excluding transaction costs, and are subsequently measured at fair value at each reporting date. Changes in fair value are recognised in profit or loss. Transaction costs are expensed to profit or loss as incurred.
1.8
Cash and cash equivalents
Cash and cash equivalents are basic financial assets and include cash in hand.
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.
Financial instruments are recognised in the company's balance sheet when the company becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
Basic financial assets
Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price.
Classification of financial liabilities
Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.
Basic financial liabilities
Basic financial liabilities, including creditors and loans from fellow group companies, are initially recognised at transaction price.
1.10
Equity instruments
Equity instruments issued by the company are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.
1.11
Employee benefits
The costs of short-term employee benefits are recognised as a liability and an expense.
Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.
LA UK INVESTMENTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 28 FEBRUARY 2023
1
Accounting policies
(Continued)
- 5 -
1.12
Retirement benefits
The Company operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the Company pays fixed contributions into a separate entity. Once the contributions have been paid the Company has no further payment obligations.
The contributions are recognised as an expense in the Statement of Comprehensive Income when they fall due. Amounts not paid are shown in accruals as a liability in the Statement of Financial Position. The assets of the plan are held separately from the Company in independently administered funds.
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.
3
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2023
2022
Number
Number
Total
4
3
4
Taxation
In addition to the amount charged to the profit and loss account, the following amounts relating to tax have been recognised directly in other comprehensive income:
Restated
2023
2022
£
£
Deferred tax arising on:
Revaluation of property
(103,385)
2,728,912
LA UK INVESTMENTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 28 FEBRUARY 2023
- 6 -
5
Intangible fixed assets
Goodwill
£
Cost
At 1 March 2022 and 28 February 2023
250,000
Amortisation and impairment
At 1 March 2022 and 28 February 2023
250,000
Carrying amount
At 28 February 2023
At 28 February 2022
6
Tangible fixed assets
Land and buildings
Plant and machinery etc
Total
£
£
£
Cost
At 1 March 2022 and 28 February 2023
2,630,312
103,008
2,733,320
Depreciation and impairment
At 1 March 2022
284,904
102,226
387,130
Depreciation charged in the year
47,484
196
47,680
At 28 February 2023
332,388
102,422
434,810
Carrying amount
At 28 February 2023
2,297,924
586
2,298,510
At 28 February 2022
2,345,408
782
2,346,190
7
Investment property
2023
£
Fair value
At 1 March 2022
27,775,491
Revaluations
(413,542)
At 28 February 2023
27,361,949
Investment property comprises:
102 North End Road, London - purchased in March 2014. Cost £733k. Additions £550k. Value £2,700k.
Cornwallis House, Maidstone - purchased in March 2015. Cost £1,330k. Additions £3,148k. Value £9,512k
29 Springfield House, Chelmsford - purchased in June 2016. Cost £1,149k. Additions £197k. Value £1,650k.
5-7 Dover Street, London - purchased in April 2020. Cost £9,261k. Additions £185k. Value £13,500k.
The investment properties were valued on an open market basis by the directors.
LA UK INVESTMENTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 28 FEBRUARY 2023
7
Investment property
(Continued)
- 7 -
If investment properties were stated on an historical cost basis rather than a fair value basis, the amounts would have been included as follows:
Restated
2023
2022
£
£
Cost
16,552,589
16,552,589
Accumulated depreciation
(1,702,596)
(1,371,536)
Carrying amount
14,849,993
15,181,053
8
Fixed asset investments
As restated
2023
2022
£
£
Other investments other than loans
122,673
96,300
Movements in fixed asset investments
Investments
£
Cost or valuation
At 1 March 2022
96,300
Additions
118,532
Disposals
(24,204)
At 28 February 2023
190,628
Impairment
At 1 March 2022
-
Impairment losses
54,957
Disposals
12,998
At 28 February 2023
67,955
Carrying amount
At 28 February 2023
122,673
At 28 February 2022
96,300
LA UK INVESTMENTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 28 FEBRUARY 2023
- 8 -
9
Debtors
Restated
2023
2022
Amounts falling due within one year:
£
£
Trade debtors
161,873
14,460
Amounts owed by related parties - South Sahara African Trading DMCC
1,878,942
1,501,836
Other debtors
28,540
250,615
2,069,355
1,766,911
2023
2022
Amounts falling due after more than one year:
£
£
Other debtors
5,000
5,000
Total debtors
2,074,355
1,771,911
10
Creditors: amounts falling due within one year
2023
2022
£
£
Bank loans
115,788
253,000
Trade creditors
80,891
74,607
Corporation tax
882
882
Other taxation and social security
73,363
5,260
Other creditors
164,104
101,395
435,028
435,144
11
Creditors: amounts falling due after more than one year
2023
2022
£
£
Bank loans and overdrafts
4,480,461
4,552,088
Amounts owed to related parties – LA Group Proprietary Limited
22,857,718
22,858,007
27,338,179
27,410,095
12
Audit report information
As the income statement has been omitted from the filing copy of the financial statements, the following information in relation to the audit report on the statutory financial statements is provided in accordance with s444(5B) of the Companies Act 2006:
The auditor's report was qualified and the auditor reported as follows:
LA UK INVESTMENTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 28 FEBRUARY 2023
12
Audit report information
(Continued)
- 9 -
We have audited the financial statements of LA UK Investments Limited (the 'company') for the year ended 28 February 2023 which comprise , the balance sheet, the statement of changes in equity and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).
In our opinion, except for the effects of the matter described in the Basis for Qualified Opinion, the financial statements:
give a true and fair view of the state of the company's affairs as at 28 February 2023 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
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.
The audit opinion has been qualified in respect of opening balances for the year ended 28 February 2023. The previous auditors did not have sufficient audit evidence to support the fair value of the investment properties detailed in note 8 of the financial statements. The audit opinion has therefore been modified because of the possible effects on the revaluation movements of the current and corresponding period.
Emphasis of matter paragraph
We draw attention to note 15 of the financial statements which describes the need for prior year adjustments.
Our opinion is not modified in this respect.
Senior Statutory Auditor:
Asif Hassan
Statutory Auditor:
Taylor Associates
13
Related party transactions
2023
2022
Amounts due to related parties
£
£
Amounts owed to LA Group Proprietary Limited
22,857,718
22,858,007
The following amounts were outstanding at the reporting end date:
2023
2022
Amounts due from related parties
£
£
Amounts owed from South Sahara African Trading DMC
1,878,942
1,501,836
LA UK INVESTMENTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 28 FEBRUARY 2023
- 10 -
14
Parent company
The company is a wholly owned subsidiary of LA Group Proprietary Limited, a company incorporated in South Africa. The ultimate parent is Robben Island Management Services Proprietary Limited, a company incorporated in South Africa, the shares of which are held by the A F Peer Family Trust.
15
Prior period errors
Investments
The company transferred funds into an investment portfolio during the year ended 28 February 2022. However, the financial statements disclosed £250,000 within Other Debtors instead of recognising a proportion as a fixed asset investment. As such the stock exchange purchases and consequent fair value adjustments were not reflected in the 2022 accounts. A prior period adjustment has now been made to reduce Other debtors by £153,965, reflect Stock Investments of £96,300 (at fair value) and account for unrealised losses of £55,690 and associated costs of £1,975 in the profit and loss account.
Deferred tax
The investment properties were revalued during the year ended 28 February 2022. No provision for deferred tax was calculated. A prior year adjustment of £2,728,912 has been made accordingly.
Reserves
The revaluation and profit and loss reserve were incorrectly disclosed. A prior period adjustment has been made to increase the profit and loss reserve and decrease the revaluation reserve by £304,772.
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