Company registration number 14105710 (England and Wales)
GENIUS EXPLORER OPCO LIMITED
FINANCIAL STATEMENTS
FOR THE 8 MONTH PERIOD ENDED 31 DECEMBER 2022
PAGES FOR FILING WITH REGISTRAR
GENIUS EXPLORER OPCO LIMITED
CONTENTS
Page
Balance sheet
1
Notes to the financial statements
2 - 6
GENIUS EXPLORER OPCO LIMITED
BALANCE SHEET
AS AT 31 DECEMBER 2022
31 December 2022
- 1 -
2022
Notes
£
£
Fixed assets
Tangible assets
3
5,035,351
Current assets
Debtors
4
1,394,867
Cash at bank and in hand
938,286
2,333,153
Creditors: amounts falling due within one year
5
(4,188,329)
Net current liabilities
(1,855,176)
Total assets less current liabilities
3,180,175
Creditors: amounts falling due after more than one year
6
(3,404,631)
Net liabilities
(224,456)
Capital and reserves
Called up share capital
7
1
Profit and loss reserves
(224,457)
Total equity
(224,456)
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 11 March 2024 and are signed on its behalf by:
W Zhiwu
Director
Company Registration No. 14105710
GENIUS EXPLORER OPCO LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE 8 MONTH PERIOD ENDED 31 DECEMBER 2022
- 2 -
1
Accounting policies
Company information
Genius Explorer OpCo Limited is a private company limited by shares incorporated in England and Wales. The registered office is Ashcombe Court, Woolsack Way, Godalming, Surrey, United Kingdom, GU7 1LQ.
1.1
Reporting period
The financial statements are prepared for the period from 13 May 2022 to 31 December 2022. This is a short period as it is the first period following incorporation.
1.2
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. The principal accounting policies adopted are set out below.
1.3
Going concern
The balance sheet shows net liabilities of £true224,456. The directors are confident that the company will continue in operational existence and continue to be supported by its parent company and fellow group companies for the foreseeable future.
The directors are confident that the company can continue to meet its obligations as they fall due. Accordingly, the directors continue to adopt the going concern basis in preparing the financial statements.
1.4
Turnover
Turnover represents rental of accommodation to customers at invoiced amounts less value added tax.
Revenue from the rental of accommodation and other related services is recognised when the service is provided and the amount of revenue can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the entity and the costs incurred in respect of the transaction can be measured reliably.
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 100 years or the remaining lease term
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.
GENIUS EXPLORER OPCO LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE 8 MONTH PERIOD ENDED 31 DECEMBER 2022
1
Accounting policies
(Continued)
- 3 -
1.6
Impairment of fixed assets
At each reporting period end date, the company reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.
Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.
If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.
Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.
1.7
Cash and cash equivalents
Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts.
1.8
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 including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.
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.
GENIUS EXPLORER OPCO LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE 8 MONTH PERIOD ENDED 31 DECEMBER 2022
1
Accounting policies
(Continued)
- 4 -
Basic financial liabilities
Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.
Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.
1.9
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.
1.10
Leases
Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessees. All other leases are classified as operating leases.
Assets held under finance leases are recognised as assets at the lower of the assets fair value at the date of inception and the present value of the minimum lease payments. The related liability is included in the balance sheet as a finance lease obligation. Lease payments are treated as consisting of capital and interest elements. The interest is charged to profit or loss so as to produce a constant periodic rate of interest on the remaining balance of the liability.
2
Employees
The average monthly number of persons (including directors) employed by the company during the 8 month period was:
2022
Number
Total
Employee costs during the year relate to staff provided by a third party, therefore the staff numbers for the period are nil.
GENIUS EXPLORER OPCO LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE 8 MONTH PERIOD ENDED 31 DECEMBER 2022
- 5 -
3
Tangible fixed assets
Land and buildings
£
Cost
At 13 May 2022
Additions
5,053,898
At 31 December 2022
5,053,898
Depreciation and impairment
At 13 May 2022
Depreciation charged in the 8 month period
18,547
At 31 December 2022
18,547
Carrying amount
At 31 December 2022
5,035,351
£3.5m of the land and buildings are in respect of four 995 year leases that have been capitalised as a fixed asset in accordance with FRS 102.
See note 6 for disclosure in respect of the outstanding lease committments.
The balance of £1.5m is in respect of acquiring the leases from the previous owner.
4
Debtors
2022
Amounts falling due within one year:
£
Trade debtors
50,921
Other debtors
1,300,110
Prepayments and accrued income
43,836
1,394,867
5
Creditors: amounts falling due within one year
2022
£
Obligations under finance leases
200,655
Trade creditors
156,267
Amounts owed to group undertakings
2,981,039
Other creditors
125,596
Accruals and deferred income
724,772
4,188,329
GENIUS EXPLORER OPCO LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE 8 MONTH PERIOD ENDED 31 DECEMBER 2022
- 6 -
6
Creditors: amounts falling due after more than one year
2022
£
Obligations under finance leases
3,404,631
The obligations under finance leases are in respect of properties capitalised as detailed in note 3 to these accounts. When calculating the amounts to capitalise, future rental payments have been discounted by reference to the company's weighted average cost of capital. At the 31 December 2022 the amount falling due within one year is £200,655, with £3,404,631 being due after more than one year.
The lease commitment is for a further 989 years with upward rent reviews every 2 to 5 years.
7
Called up share capital
2022
2022
Ordinary share capital
Number
£
Issued and fully paid
Ordinary shares of £1 each
1
1
On incorporation 1 Ordinary £1 share was issued at par.
8
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 unqualified.
Senior Statutory Auditor:
James Leigh
Statutory Auditor:
Azets Audit Services
9
Parent company
The immediate parent company is Genius Explorer Limited, a company incorporated in Jersey. The ultimate parent company is Shenzhen Capital Holdings CO., Ltd, a limited venture capital company whose registered office address is 11F Investment Building, No 4009 Shennan Rd, Futian Center District, Shenzhen, China.