REGISTERED NUMBER: |
LFI SILVA INVESTMENTS LIMITED |
REPORT OF THE DIRECTORS AND |
FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
REGISTERED NUMBER: |
LFI SILVA INVESTMENTS LIMITED |
REPORT OF THE DIRECTORS AND |
FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
LFI SILVA INVESTMENTS LIMITED (REGISTERED NUMBER: SC584199) |
CONTENTS OF THE FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
Page |
Company Information | 1 |
Report of the Directors | 2 |
Report of the Independent Auditors | 3 | to | 6 |
Income Statement | 7 |
Other Comprehensive Income | 8 |
Balance Sheet | 9 |
Statement of Changes in Equity | 10 |
Notes to the Financial Statements | 11 | to | 20 |
LFI SILVA INVESTMENTS LIMITED |
COMPANY INFORMATION |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
DIRECTORS: |
SECRETARY: |
REGISTERED OFFICE: |
REGISTERED NUMBER: |
AUDITORS: |
Chartered accountants |
Statutory auditor |
Abercorn House |
79 Renfrew Road |
Paisley |
Renfrewshire |
PA3 4DA |
LFI SILVA INVESTMENTS LIMITED (REGISTERED NUMBER: SC584199) |
REPORT OF THE DIRECTORS |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
The directors present their report with the financial statements of the company for the year ended 31 December 2023. |
PRINCIPAL ACTIVITY |
The principal activity of the company in the year under review was that of forestry investment. |
DIRECTORS |
The directors shown below have held office during the whole of the period from 1 January 2023 to the date of this report. |
STATEMENT OF DIRECTORS' RESPONSIBILITIES |
The directors are responsible for preparing 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). 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 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. |
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, Milne Craig, will be proposed for re-appointment at the forthcoming Annual General Meeting. |
This report has been prepared in accordance with the provisions of Part 15 of the Companies Act 2006 relating to small companies. |
ON BEHALF OF THE BOARD: |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
LFI SILVA INVESTMENTS LIMITED |
Opinion |
We have audited the financial statements of Lfi Silva Investments Limited (the 'company') for the year ended 31 December 2023 which comprise the 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 101 'Reduced Disclosure Framework' (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 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 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 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. |
Other information |
The directors are responsible for the other information. The other information comprises the information in 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 Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and |
- | the Report of the Directors has been prepared in accordance with applicable legal requirements. |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
LFI SILVA INVESTMENTS 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 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; 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' exemption from the requirement to prepare a Strategic Report or in preparing the Report of the Directors. |
Responsibilities of directors |
As explained more fully in the Statement of Directors' Responsibilities set out on page two, 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. |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
LFI SILVA INVESTMENTS LIMITED |
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. |
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. However, the primary responsibility for the prevention and detection of fraud rests with both those charged with governance of the entity and management. 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 determined that the most significant are those that relate to the form and content of the financial statements such as the accounting policies and the UK Companies Act 2006. |
We assessed how the Company is complying with these frameworks by observing the oversight of those charged with governance, the culture of honesty and ethical behaviours and a strong emphasis placed on fraud prevention, which may reduce opportunities for fraud to take place, and fraud deterrence, which could persuade individuals not to commit fraud because of the likelihood of detection and punishment. |
We assessed the susceptibility of the Company's financial statements to material misstatement, including how fraud might occur, by making an assessment of the key fraud risks to the Company, and the manner in which such risks may occur in practice, based on our previous knowledge of the Company, as well as an assessment of the current business environment. |
Based on this understanding, we designed our audit procedures to identify non-compliance with such laws and regulations. Where the risk was considered higher, we performed audit procedures to address each identified fraud risk, including management override of controls. These procedures included testing manual journals and were designed to provide reasonable assurance that the financial statements were free from fraud or error. We evaluated the design and operational effectiveness of controls put in place to address the risks identified, or that otherwise prevent, deter and detect fraud. |
In addition, our audit procedures included enquiring of management concerning actual and potential litigation and claims, and performing analytical procedures to identify any unusual or unexpected relationships that may indicate risks of material misstatement due to fraud. We addressed the fraud risk in relation to revenue recognition by testing accuracy of income and also by reviewing and challenging the investment property valuations prepared by the Directors. |
Owing to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material misstatements in the financial statements, even though we have properly planned and performed our audit in accordance with auditing standards. |
As with any audit, there remains a higher risk of non-detection of irregularities, as these may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal controls. We are not responsible for preventing non-compliance, and cannot be expected to detect non-compliance with all laws and regulations. |
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 |
LFI SILVA INVESTMENTS 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 |
Chartered accountants |
Statutory auditor |
Abercorn House |
79 Renfrew Road |
Paisley |
Renfrewshire |
PA3 4DA |
LFI SILVA INVESTMENTS LIMITED (REGISTERED NUMBER: SC584199) |
INCOME STATEMENT |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
2023 | 2022 |
Notes | £ | £ |
TURNOVER | 3 |
Cost of sales | ( |
) | ( |
) |
GROSS LOSS | ( |
) | ( |
) |
Administrative expenses | ( |
) | ( |
) |
(849,619 | ) | (1,230,516 | ) |
Other operating income |
OPERATING LOSS | ( |
) | ( |
) |
Interest receivable and similar income |
(587,807 | ) | (465,011 | ) |
Gain/loss on revaluation of investment property |
(1,997,264 |
) |
7,984,524 |
(2,585,071 | ) | 7,519,513 |
Interest payable and similar expenses | 5 | ( |
) | ( |
) |
(LOSS)/PROFIT BEFORE TAXATION | 6 | ( |
) |
Tax on (loss)/profit | 7 | ( |
) |
(LOSS)/PROFIT FOR THE FINANCIAL YEAR |
( |
) |
LFI SILVA INVESTMENTS LIMITED (REGISTERED NUMBER: SC584199) |
OTHER COMPREHENSIVE INCOME |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
2023 | 2022 |
Notes | £ | £ |
(LOSS)/PROFIT FOR THE YEAR | ( |
) |
OTHER COMPREHENSIVE INCOME | - | - |
TOTAL COMPREHENSIVE INCOME FOR THE YEAR |
( |
) |
LFI SILVA INVESTMENTS LIMITED (REGISTERED NUMBER: SC584199) |
BALANCE SHEET |
31 DECEMBER 2023 |
2023 | 2022 |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Tangible assets | 8 |
Investment property | 9 |
CURRENT ASSETS |
Stocks | 10 |
Debtors | 11 |
Cash at bank |
CREDITORS |
Amounts falling due within one year | 12 |
NET CURRENT ASSETS/(LIABILITIES) | ( |
) |
TOTAL ASSETS LESS CURRENT LIABILITIES |
PROVISIONS FOR LIABILITIES | 13 |
NET ASSETS |
CAPITAL AND RESERVES |
Called up share capital | 14 |
Share premium |
Revaluation reserve |
Retained earnings | 15 |
SHAREHOLDERS' FUNDS |
The financial statements were approved by the Board of Directors and authorised for issue on |
LFI SILVA INVESTMENTS LIMITED (REGISTERED NUMBER: SC584199) |
STATEMENT OF CHANGES IN EQUITY |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
Called up |
share | Retained | Share | Revaluation | Total |
capital | earnings | premium | reserve | equity |
£ | £ | £ | £ | £ |
Balance at 1 January 2022 |
Changes in equity |
Total comprehensive income | - | - |
Transfer to revaluation |
reserve | - | (5,859,479 | ) | - | 5,859,479 | - |
Transfer of realised gains on |
investment properties | - | 153,663 | - | (153,663 | ) | - |
Transfer to cost of sales | - | 411,649 | - | (411,649 | ) | - |
Balance at 31 December 2022 |
Changes in equity |
Issue of share capital | - | - |
Total comprehensive income | - | ( |
) | - | ( |
) |
Transfer to revaluation |
reserve | - | 1,689,942 | - | (1,689,942 | ) | - |
Transfer of realised gains on |
investment properties | - | 39,032 | - | (39,032 | ) | - |
Transfer to cost of sales | - | 1,008 | - | (1,008 | ) | - |
Balance at 31 December 2023 |
LFI SILVA INVESTMENTS LIMITED (REGISTERED NUMBER: SC584199) |
NOTES TO THE FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
1. | STATUTORY INFORMATION |
LFI Silva Investments Limited is a private company, limited by shares, registered in Scotland. The company's registered number and registered office address can be found on the Company Information page. |
The nature of the Company's operations and its principal activities are set out in the Directors Report on page 2. |
2. | ACCOUNTING POLICIES |
Basis of preparation |
Going concern |
The directors have at the time of approving the financial statements, a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future, therefore, the directors continue to adopt the going concern basis of accounting in preparing the financial statements. |
The company has taken advantage of the following disclosure exemptions in preparing these financial statements, as permitted by FRS 101 "Reduced Disclosure Framework": |
• | the requirements of paragraphs 62, B64(d), B64(e), B64(g), B64(h), B64(j) to B64(m), B64(n)(ii), B64(o)(ii), B64(p), B64(q)(ii), B66 and B67 of IFRS 3 Business Combinations; |
• | the requirements of IFRS 7 Financial Instruments: Disclosures; |
• | the requirements of paragraphs 91 to 99 of IFRS 13 Fair Value Measurement; |
• | the requirements of paragraphs 10(d), 10(f), 16, 38A, 38B, 38C, 38D, 40A, 40B, 40C, 40D, 111 and 134 to 136 of IAS 1; |
• | the requirements of IAS 7 Statement of Cash Flows; |
• | the requirements of paragraph 74(b) of IAS 16. |
Where required, equivalent disclosures are given in the consolidated financial statements of Lundbeckfonden. |
Critical accounting 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, if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods. |
The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are outlined below. |
Critical estimate |
Valuation of investments |
The fair value has been assessed by directors at the period end. The valuations are based on reports provided by external independent valuers. Assumptions made are based on available market information for comparable properties in respect of transaction prices, and anticipated future cash flows. |
LFI SILVA INVESTMENTS LIMITED (REGISTERED NUMBER: SC584199) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
2. | ACCOUNTING POLICIES - continued |
Revenue |
Revenue is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business, and is shown net of VAT and other sales related taxes. |
Revenue consists of miscellaneous income, including clearfell and energy sales, thinning, rental income and grazing income. |
The company recognises revenue from sales when performance obligations have been satisfied and for the company this is when the goods have transferred to the customer and the customer has control of these. for rental income, revenue is recognised when the rent has been received in arrears for an agreed time period stayed in the rental property by the tenant. |
Tangible fixed assets |
Computer equipment | - |
Investment property |
Investment property, which is property held to earn rentals and/or for capital appreciation, is initially measured at cost and subsequently measured using the fair value model and stated at its fair value at the reporting end date. The surplus or deficit on revaluation is recognised in profit or loss, and is subsequently transferred to/from the revaluation reserve. |
Financial instruments |
Financial assets |
Trade and other debtors are recognised initially at fair value. Subsequent to initial recognition they are measured at amortised cost using the effective interest method, less any impairment losses. |
The company classifies its financial assets as at amortised cost only if both of the following criteria are met: |
- the asset is held within a business model whose objective is to collect the contractual cash flows, and |
- the contractual terms of the financial asset give rise to cash flows that are solely payments of principal and interest. |
The company applies the IFRS 9 simplified approach to measuring expected credit losses which uses a lifetime expected loss allowance for all trade receivables and contract assets. |
Financial liabilities |
Trade and other creditors are recognised initially at fair value. Subsequent to initial recognition they are measured at amortised cost using the effective interest method. |
Interest bearing borrowings are recognised initially at fair value less attributable transaction costs. Subsequent to initial recognition, interest bearing borrowings are stated at amortised cost using the effective interest method, less any impairment costs. |
Equity instruments |
Equity instruments issued by the company are recorded at the proceeds received, net of direct issue costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company. |
Stocks |
Stocks are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items. |
LFI SILVA INVESTMENTS LIMITED (REGISTERED NUMBER: SC584199) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
2. | ACCOUNTING POLICIES - continued |
Taxation |
The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the income statement 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 is the tax expected to be payable or recoverable on differences between the carrying amounts of assets and liabilities in the financial statements and the corresponding tax bases used in the computation of taxable profits, and is accounted for using the balance sheet liability method. Deferred tax liabilities are generally recongised for all taxable temporary differences and deferred tax assets are recognised to the extent that it is probable that taxable profits will be available against which deductible temporary differences can be utilised. Such assets and liabilities are not recongised if the temporary difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax able profit nor the accounting profit. |
The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the income statement, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset when the company has a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority. |
Employee benefit costs |
The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of inventories or non-current assets. |
Cash and cash equivalents |
Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks and other short-term liquid investments with original maturities of three months or less. |
LFI SILVA INVESTMENTS LIMITED (REGISTERED NUMBER: SC584199) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
2. | ACCOUNTING POLICIES - continued |
Impairment of assets |
Assets, other than those measured at fair value, are assessed for indicators of impairment at each balance sheet date. If there is objective evidence of impairment, an impairment loss is recognised in profit or loss as described below. |
Non-financial assets |
An asset is impaired where there is objective evidence that, as a result of one or more events that occurred after initial recognition, the estimated recoverable value of the asset has been reduced. The recoverable amount of an asset is the higher of its fair value less costs to sell and its value in use. |
Where indicators exist for a decrease in impairment loss, the prior impairment loss is tested to determine reversal. An impairment loss is reversed on an individual impaired asset to the extent that the revised recoverable value does not lead to a revised carrying amount higher than the carrying value had no impairment been recognised. |
Financial assets |
For financial assets carried at amortised cost, the amount of impairment is the difference between the asset's carrying amount and the present value of estimated future cash flows, discounted at the financial asset's original effective interest rate. |
For financial assets carried at cost less impairment, the impairment loss is the difference between the asset's carrying amount and the best estimate of the amount that would be received for the asset if it were to be sold at the reporting date. |
Where indicators exist for a decrease in impairment loss, and the decrease can be related objectively to an event occurring after the impairment was recognised, the prior impairment loss is tested to determine reversal. |
An impairment loss is reversed on an individual impaired financial asset to the extent that the revised recoverable value does not lead to a revised carrying amount higher than the carrying value had no impairment been recognised. |
Grants |
Government grants are recognised when there is reasonable assurance that the grant conditions will be met and the grants will be received. |
Grants in respect of costs expensed through the statement of comprehensive income are recognised as other operating income. |
3. | TURNOVER |
The turnover and loss (2022 - profit) before taxation are attributable to the one principal activity of the company. |
An analysis of turnover by class of business is given below: |
2023 | 2022 |
£ | £ |
LFI SILVA INVESTMENTS LIMITED (REGISTERED NUMBER: SC584199) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
3. | TURNOVER - continued |
An analysis of turnover by geographical market is given below: |
2023 | 2022 |
£ | £ |
United Kingdom |
4. | EMPLOYEES AND DIRECTORS |
2023 | 2022 |
£ | £ |
Wages and salaries | - | 98,000 |
Social security costs |
The average number of employees during the year was as follows: |
2023 | 2022 |
Management |
2023 | 2022 |
£ | £ |
Directors' remuneration |
Directors are remunerated through other group companies in the current year. |
Certain directors provide consulting services to the company via their consulting companies, see note 16. |
5. | INTEREST PAYABLE AND SIMILAR EXPENSES |
2023 | 2022 |
£ | £ |
Interest on intercompany loan | 536,723 | 572,284 |
6. | (LOSS)/PROFIT BEFORE TAXATION |
The loss before taxation (2022 - profit before taxation) is stated after charging: |
2023 | 2022 |
£ | £ |
Cost of inventories recognised as expense |
Depreciation - owned assets |
Auditors' remuneration |
LFI SILVA INVESTMENTS LIMITED (REGISTERED NUMBER: SC584199) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
7. | TAXATION |
Analysis of tax (income)/expense |
2023 | 2022 |
£ | £ |
Deferred tax | ( |
) |
Total tax (income)/expense in income statement | ( |
) |
Factors affecting the tax expense |
The tax assessed for the year is higher (2022 - lower) than the standard rate of corporation tax in the UK. The difference is explained below: |
2023 | 2022 |
£ | £ |
(Loss)/profit before income tax | ( |
) |
(Loss)/profit multiplied by the standard rate of corporation tax in the UK of |
(734,246 |
) |
1,319,974 |
Effects of: |
Expenses not deductible | 787,286 | - |
Income not taxable | (170,297 | ) | (1,552,094 | ) |
Chargeable gains/(losses) | - | 82,106 |
Remeasurement of deferred tax for changes in tax rates | (132,959 | ) | - |
Indexation allowances and rebasing | 109,228 | 1,252,757 |
Deferred tax asset not recognised | (413,004 | ) | 5,907 |
Adjustment in respect of prior periods - deferred tax | 28,166 | (92,179 | ) |
Tax (income)/expense | ( |
) |
8. | TANGIBLE FIXED ASSETS |
Computer |
equipment |
£ |
COST |
At 1 January 2023 |
and 31 December 2023 |
DEPRECIATION |
At 1 January 2023 |
Charge for year |
At 31 December 2023 |
NET BOOK VALUE |
At 31 December 2023 |
At 31 December 2022 |
LFI SILVA INVESTMENTS LIMITED (REGISTERED NUMBER: SC584199) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
9. | INVESTMENT PROPERTY |
Total |
£ |
FAIR VALUE |
At 1 January 2023 |
Additions |
Disposals | ( |
) |
Revaluations | (2,253,259 | ) |
Transfer to cost of sales | (1,008 | ) |
At 31 December 2023 |
NET BOOK VALUE |
At 31 December 2023 |
At 31 December 2022 |
During the year two properties with an original cost of £221,056 were sold for £527,500 less legal fees of £11,419. This realised a gain of £295,025 against cost, of which £255,993 is shown within fair value gains and losses for the year in the statement of comprehensive income, this gives a total loss on the statement of comprehensive income of £1,997,264. A gain of £39,032 represents prior year fair value movements, which was transferred from the revaluation reserve to retained earnings. This amount is net of deferred tax. |
A transfer has been made from investment property to cost of sales to account for the goods sold during the year that were included in the investment property value as at 1 January 2023. |
The carrying value of investment property is the fair value at the balance sheet date at directors' valuation based on their knowledge of the market and taking account of independent valuations by Bell Ingram and Goldcrest Land & Forestry Group both of whom are chartered surveyors. |
10. | STOCKS |
2023 | 2022 |
£ | £ |
Stocks |
11. | DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
2023 | 2022 |
£ | £ |
Trade debtors |
Other debtors |
VAT |
Prepayments and accrued income |
12. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
2023 | 2022 |
£ | £ |
Trade creditors |
Amounts owed to group undertakings |
Social security and other taxes |
Other creditors |
Accruals and deferred income |
LFI SILVA INVESTMENTS LIMITED (REGISTERED NUMBER: SC584199) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
12. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR - continued |
Amounts owed to parent undertakings are were shown as a current payable in the prior year as the loan was converted into share capital during the current year. |
13. | PROVISIONS FOR LIABILITIES |
2023 | 2022 |
£ | £ |
Deferred tax |
Deferred |
tax |
£ |
Balance at 1 January 2023 |
Credit to Income Statement during year | (525,826 | ) |
Balance at 31 December 2023 |
Deferred tax assets and liabilities are offset where the company has a legally enforceable right to do so. |
The following is the analysis of the deferred tax balances for financial reporting purposes: |
2023 | 2022 |
£ | £ |
Accelerated capital allowances | 592 | - |
Unrealised capital gains | 3,012,680 | 3,556,107 |
Other timing differences | (161,416 | ) | (178,425 | ) |
2,851,856 | 3,377,682 |
14. | CALLED UP SHARE CAPITAL |
Allotted, issued and fully paid: |
Number: | Class: | Nominal | 2023 | 2022 |
value: | £ | £ |
Ordinary | £1 | 3,000,000 | 1,000,000 |
On 15 May 2023 a loan from the parent undertaking was coverted into share capital by way of an issue of 1,000,000 ordinary share for £24.278259 per share. |
On 7 July 2023 a further 1,000,000 ordinary shares were issues for £5.30 per share. |
LFI SILVA INVESTMENTS LIMITED (REGISTERED NUMBER: SC584199) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
15. | RESERVES |
Retained | Share | Revaluation |
earnings | premium | reserve | Totals |
£ | £ | £ | £ |
At 1 January 2023 | 36,893,629 |
Deficit for the year | ( |
) | ( |
) |
Cash share issue | - | 27,678,259 | - | 27,678,259 |
Transfer to revaluation |
reserve | 1,689,942 | - | (1,689,942 | ) | - |
Transfer of realised gains on |
investment properties | 39,032 | - | (39,032 | ) | - |
Transfer to cost of sales | 1,008 | - | (1,008 | ) | - |
At 31 December 2023 | 61,975,920 |
Share premium |
The share premium reserve relates to the premium paid on the allotment of shares. |
Retained earnings |
Retained earnings are the cumulative realised net profits or losses in the statement of comprehensive income. |
Movement on these reserves are set out in the statement of changes in equity. |
Revaluation reserve |
Revaluation reserve represents the unrealised fair value movements in the investment properties held, net of associated deferred tax movements. |
16. | RELATED PARTY DISCLOSURES |
£2,448 (2022: £106,221) was paid to CM Resource Consultancy Limited, a company in which Colin Mann is a director, for consultancy services provided. At the period-end, £nil (2022: £30,322) was . |
due to CM Resource Consultancy Limited. |
£2,338 (2022: £318,220) was paid to Cresco Capital Services Limited, a company in which Carsten With Thygesen is a director, for consultancy services provided. At the period-end, £nil (2022: £nil) was due to Cresco Capital Services Limited) was owed to the company. |
In previous years, a loan was provided from LFI Silva Investments A/S, the company's immediate parent undertaking and a company in which Carsten With Thygesen owns shares. At the period-end, £nil (2022: £24,268,354) was due to that company. This loan attracted an interest charge of £ (536,723 (2022: £572,284). |
In addition to the loan LFI Silva Investments A/S were paid a portfolio administration fee of £429,274 (2022: £109,905). At the period-end £107,452 (2022: £109,905) was due to that company. |
LFI SILVA INVESTMENTS LIMITED (REGISTERED NUMBER: SC584199) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
17. | ULTIMATE CONTROLLING PARTY |
The company's immediate parent company is LFI Silva Investments A/S which is incorporated in Denmark. The address of its registered office is Scherfigsvej 7, DK-2100, Copenhagen. |
The company's ultimate parent company is Lundbeckfonden, which is incorporated in Denmark. The address of its registered office is Scherfigsvej 7, DK-2100, Copenhagen. Lundbeckfonden prepare consolidated accounts which include LFI Silva Investments Limited. |
Copies of the annual report and accounts of LFI Silva Investments A/S and Lundbeckfonden are available from their registered office. |