REGISTERED NUMBER: |
225 City Services Limited |
Directors' Report and |
Financial Statements |
for the Year Ended 31 December 2022 |
REGISTERED NUMBER: |
225 City Services Limited |
Directors' Report and |
Financial Statements |
for the Year Ended 31 December 2022 |
225 City Services Limited (Registered number: 12931301) |
Contents of the Financial Statements |
for the year ended 31 December 2022 |
Page |
Company Information | 1 |
Directors' Report | 2 |
Independent Auditors' Report | 4 |
Income Statement | 7 |
Balance Sheet | 8 |
Notes to the Financial Statements | 9 |
225 City Services Limited |
Company Information |
for the year ended 31 December 2022 |
Directors: |
Registered office: |
Registered number: |
Auditors: |
Statutory Auditor |
New Derwent House |
69-73 Theobalds Road |
London |
WC1X 8TA |
225 City Services Limited (Registered number: 12931301) |
Directors' Report |
for the year ended 31 December 2022 |
The directors present their report with the financial statements of 225 City Services Limited (the 'Company') for the period ended 31 December 2022 |
Principal activity |
The principal activity of the Company during the period under review was that of property investment. |
The Company is part of the Ghelamco Group Comm. VA. ("Ghelamco"), a 100% family owned leading International real estate developer and investor mainly active in the office, residential, retail, leisure and logistics markets and leader in the Polish and Belgium markets. Ghelamco maintains high quality internal controls with respect for agreed milestones over all its project development phases: land purchase, planning, coordinating the construction phase and sale or lease. |
The affiliated companies, all subsidiaries of Ghelamco, are delivering the development of a 35,000 sqm mixed-use scheme. This project, The Arc, will consist of i) commercial income streams coming from the office and retail elements held by the Company and ii) 100 apartments being separately sold to individual owners by 225 City Residence Limited. The development of this project is managed by Scientia Holdings Limited and led by our excellent construction teams. |
Going concern |
The directors are confident that overriding economic factors such as the continuing under-supply of housing and strong occupational demand for state of the art, sustainable buildings and healthy workspaces will minimise the potential impact of external circumstances such as the conflict in Ukraine and increasing rates of inflation. Post year-end, the main building contractor entered administration, resulting in the group bringing the process in-house. The company will continue to benefit from financial support from its parent company, which has confirmed that it will provide the company with sufficient resources to enable it to meet its debts as they fall due for a period of at least 12 months from the date of approval of these financial statements. The directors, therefore have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. For this reason, the directors continue to adopt the going concern basis in preparing the financial statements. |
Having performed their assessment, management believes the Company to have sufficient liquidity to meet its liabilities as they fall due for at least 12 months from the date of signing these financial statements. Accordingly, management adopt the going concern basis in preparing the financial statements. |
Events since the end of the year |
Information relating to events since the end of the year is given in the notes to the financial statements. |
Directors |
The directors shown below have held office during the whole of the period from 1 January 2022 to the date of this report. |
Auditors |
The audit business of Haines Watts London LLP was acquired by Cooper Parry Group Limited on 14 November 2023. Haines Watts London LLP has resigned as auditor and Cooper Parry Group Limited has been appointed in its place. |
Statement of directors' responsibilities |
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). 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. |
225 City Services Limited (Registered number: 12931301) |
Directors' Report |
for the year ended 31 December 2022 |
Statement of directors' responsibilities - continued |
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 or she ought to have taken as a director in order to make himself or herself aware of any relevant audit information and to establish that the Company's auditors are aware of that information. |
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: |
Independent Auditors' Report to the Members of |
225 City Services Limited |
Opinion |
We have audited the financial statements of 225 City Services Limited (the 'Company') for the year ended 31 December 2022 which comprise the Income Statement, Balance Sheet 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 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 Directors' Report, but does not include the financial statements and our Auditors' 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 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 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. |
Independent Auditors' Report to the Members of |
225 City Services 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 Directors' Report. |
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 Directors' Report. |
Responsibilities of directors |
As explained more fully in the Statement of Directors' Responsibilities, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. |
In preparing the financial statements, the directors are responsible for assessing the Company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the Company or to cease operations, or have no realistic alternative but to do so. |
Auditors' responsibilities for the audit of the financial statements |
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an Auditors' 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. |
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. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below: |
We gained an understanding of the legal and regulatory framework applicable to the Company and the industry in which it operates, and considered the risk of acts by the Company that were contrary to applicable laws and regulations, including fraud. We discussed with the directors the policies and procedures in place regarding compliance with laws and regulations. We discussed amongst the audit team the identified laws and regulations, and remained alert to any indications of non-compliance. |
During the audit we focused on laws and regulations which could reasonably be expected to give rise to a material misstatement in the financial statements, including, but not limited to, the Companies Act 2006 and UK tax legislation. Our tests included agreeing the financial statement disclosures to underlying supporting documentation and enquiries with management. |
Our procedures in relation to fraud included but were not limited to: inquires of management whether they have any knowledge of any actual, suspected or alleged fraud, and discussions amongst the audit team regarding risk of fraud such as opportunities for fraudulent manipulation of financial statements. We determined that the principal risks related to posting manual journal entries to manipulate financial performance and management bias through judgements in accounting estimates. We also addressed the risk of management override of internal controls, including testing journals and evaluating whether there was evidence of bias by the directors that represented a risk of material misstatement due to fraud. Our tests include agreeing the financial statement disclosures to underlying supporting documentation. |
Independent Auditors' Report to the Members of |
225 City Services Limited |
Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation. In assessing the potential risks of material misstatement we obtained an understanding of; the entities operations, including the nature of its revenue sources and services and of its objectives and strategies to understand the classes of transactions, account balances, expected financial statement disclosures and business risks that may result in risks of material misstatement. We did not identify any matters relating to non-compliance with laws and regulations relating to fraud. |
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 Auditors' Report. |
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 Auditors' 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. |
for and on behalf of |
Statutory Auditor |
New Derwent House |
69-73 Theobalds Road |
London |
WC1X 8TA |
225 City Services Limited (Registered number: 12931301) |
Income Statement |
for the year ended 31 December 2022 |
Period |
6/10/20 |
Year ended | to |
31/12/22 | 31/12/21 |
£ | £ |
Turnover |
Cost of sales | ( |
) |
Gross loss | ( |
) |
Administrative expenses | ( |
) |
Operating loss and |
Loss before taxation | ( |
) |
Tax on loss |
Loss for the financial year | ( |
) |
225 City Services Limited (Registered number: 12931301) |
Balance Sheet |
31 December 2022 |
2022 | 2021 |
Notes | £ | £ |
Current assets |
Debtors | 4 |
Creditors |
Amounts falling due within one year | 5 |
Net current (liabilities)/assets | ( |
) |
Total assets less current liabilities | ( |
) |
Creditors |
Amounts falling due after more than one year |
6 |
Net (liabilities)/assets | ( |
) |
Capital and reserves |
Called up share capital | 7 |
Retained earnings | 8 | ( |
) |
Shareholders' funds | ( |
) |
The financial statements were approved by the Board of Directors and authorised for issue on |
225 City Services Limited (Registered number: 12931301) |
Notes to the Financial Statements |
for the year ended 31 December 2022 |
1. | Statutory information |
225 City Services Limited is a |
2. | Accounting policies |
Basis of preparing the financial statements |
Going concern |
The directors intend for the Company's current principal activities to continue for the foreseeable future. |
Management continues to monitor and assess the potential impact that external circumstances, such as the conflict in Ukraine and increasing rates of inflation, may have on the property development industry and the wider UK economic market in which the Company operates. The directors are of the view that overriding economic factors such as the continuing under-supply of housing and strong occupational demand for state of the art, sustainable buildings and healthy workspaces will mitigate the potential financial effects of external circumstances. |
The Company was in a net deficit position at 31 Dec 2022. In their assessment of the Company's ability to continue as a going concern, management has considered the current and projected net assets, liquidity positions and the funding of the Company's ongoing expenditure. In addition, the company will continue to benefit from financial support from its parent company, which has confirmed that it will provide the company with sufficient resources to enable it to meet its debts as they fall due for a period of at least 12 months from the date of approval of these financial statements. |
Management therefore believes the Company to have sufficient liquidity to meet its liabilities as they fall due for at least 12 months from the date of signing these financial statements. Accordingly, management adopt the going concern basis in preparing the financial statements. |
Summary of significant accounting policies and key accounting estimates |
The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated. |
225 City Services Limited (Registered number: 12931301) |
Notes to the Financial Statements - continued |
for the year ended 31 December 2022 |
2. | Accounting policies - continued |
Financial instruments |
Classification |
The Company only enters into basic financial instruments transactions that result in the recognition of financial assets and liabilities being loans from and to related parties. |
Recognition and measurement |
Debt instruments (other than those wholly repayable or receivable within one year), including loans and other debtors and creditors, are initially measured at present value of the future cash flows and subsequently amortised cost using the effective interest method. |
Debt instruments that are payable or receivable within one year, typically trade creditors or debtors, are measured, initially and subsequently, at the undiscounted amount of the cash or other consideration, expected to be paid or received. |
However, if the arrangements of a short-term instrument constitute a financing transaction, like the payment of a trade debt deferred beyond normal business terms of financed at a rate of interest that is not a market rate or in case of an out-right short term loan not at a market rate, the financial asset or liability is measured, initially, at the present value of the future cash flow discounted at a market rate of interest for a similar debt instrument and subsequently at amortised cost. |
Financial assets that are measured at cost and amortised cost are assessed at the end of each reporting period for objective evidence of impairment. If objective evidence of impairment is found, an impairment loss is recognised in the Income Statement. |
For financial assets measured as amortised cost, the impairment loss is measured as the difference between an asset's carrying amount and the present value of estimated cash flows discounted at the asset's original effective interest rate. If a financial asset has a variable interest rate, the discounted rate for measuring any impairment loss is the current effective interest rate determined under the contract. |
For financial assets measured as cost less impairment, the impairment loss is measured as the difference between an asset's carrying amount and best estimation of the recoverable amount, which is an approximation of the amount that the Company would receive for the asset if it were to be sold at the balance sheet date. |
Financial assets and liabilities are offset and the net amount reported in the Balance sheet when there is an 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. |
Share capital |
Ordinary shares are classified as equity. Equity instruments are measured at the fair value of the cash or other resources received or receivable, net of the direct costs of issuing the equity instruments. If payment is deferred and the time value of money is material, the initial measurement is on a present value |
3. | Employees and directors |
The Company had no employees other than it's appointed directors. |
4. | Debtors: amounts falling due within one year |
2022 | 2021 |
£ | £ |
Other debtors |
5. | Creditors: amounts falling due within one year |
2022 | 2021 |
£ | £ |
Trade creditors |
Other creditors |
225 City Services Limited (Registered number: 12931301) |
Notes to the Financial Statements - continued |
for the year ended 31 December 2022 |
6. | Creditors: amounts falling due after more than one year |
2022 | 2021 |
£ | £ |
Amounts owed to group undertakings |
7. | Called up share capital |
Allotted, issued and fully paid: |
Number: | Class: | Nominal | 2022 | 2021 |
value: | £ | £ |
Ordinary | £1 | 10 | 10 |
8. | Reserves |
Retained |
earnings |
£ |
Deficit for the year | ( |
) |
At 31 December 2022 | ( |
) |
9. | Post balance sheet events |
Subsequent to the balance sheet date, on 8 June 2023, the main building contractor entered into administration. The wider group successfully brought the process in-house, however the entire process resulted in delays to the project and subsequently the loans were refinanced in October 2023. |
10. | Ultimate controlling party |
The Company's immediate parent is Ghelamco Senior HoldCo BV, incorporated in Belgium. |
The ultimate parent is Ghelamco Group Comm. VA, incorporated in Belgium. |
The ultimate controlling party is Mr Paul Gheysens. |
The most senior parent entity producing consolidated financial statements available publicly via the Group's |
website, is Ghelamco Group Comm.VA, incorporated in Belgium. |
The address of Ghelamco Group Comm. VA is: |
Zwaanhofweg 10, 8900 Leper, Belgium. |