Company registration number 11723587 (England and Wales)
SEPTON CO. LTD
UNAUDITED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022
PAGES FOR FILING WITH REGISTRAR
SEPTON CO. LTD
CONTENTS
Page
Balance sheet
1 - 2
Notes to the financial statements
3 - 8
SEPTON CO. LTD
BALANCE SHEET
AS AT 31 DECEMBER 2022
31 December 2022
- 1 -
2022
2021
Notes
£
£
£
£
Fixed assets
Investment property
4
4,250,000
3,175,112
Investments
5
2,393,001
2,393,001
6,643,001
5,568,113
Current assets
Debtors
7
439,824
22,277
Cash at bank and in hand
8,969
40,852
448,793
63,129
Creditors: amounts falling due within one year
8
(120,941)
(90,072)
Net current assets/(liabilities)
327,852
(26,943)
Total assets less current liabilities
6,970,853
5,541,170
Creditors: amounts falling due after more than one year
10
(7,423,576)
(6,187,326)
Net liabilities
(452,723)
(646,156)
Capital and reserves
Called up share capital
11
500
500
Profit and loss reserves
(453,223)
(646,656)
Total equity
(452,723)
(646,156)

The directors of the company have elected not to include a copy of the profit and loss account within the financial statements.true

For the financial year ended 31 December 2022 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.

The directors acknowledge their responsibilities for complying with the requirements of the Companies Act 2006 with respect to accounting records and the preparation of financial statements.

The members have not required the company to obtain an audit of its financial statements for the year in question in accordance with section 476.

These financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime.

SEPTON CO. LTD
BALANCE SHEET (CONTINUED)
AS AT 31 DECEMBER 2022
31 December 2022
- 2 -
The financial statements were approved by the board of directors and authorised for issue on 22 December 2023 and are signed on its behalf by:
Mr L Stravelakis
Director
Company registration number 11723587 (England and Wales)
SEPTON CO. LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022
- 3 -
1
Accounting policies
Company information

Septon Co. Ltd is a private company limited by shares incorporated in England and Wales. The registered office is 1 Parkshot, Richmond, Surrey, TW9 2RD.

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 freehold properties and to include investment properties and certain financial instruments at fair value. The principal accounting policies adopted are set out below.

The company has taken advantage of the exemption under section 399 of the Companies Act 2006 not to prepare consolidated accounts, on the basis that the group of which this is the parent qualifies as a small group. The financial statements present information about the company as an individual entity and not about its group.

1.2
Going concern

At the balance sheet date, the company's net current liabilities exceeded its net current assets due to directors loans.true At the time of approving the financial statements, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements as further explained below.

 

The directors' current account balance of £82,449 (2021: £72,704) included within other creditors is unsecured and interest free. There is no set date for the repayment and the directors have confirmed that they will not seek repayment for at least a year after these accounts are approved and only if the company funds permit.

 

During December 2023, the company entered into negotiations with a commercial bank to refinance the existing bridging loan. The company has applied for a loan facility up to £2,762,500 to be secured by a charge over the company's assets, a first legal charge over the investment properties and guarantees limited to £2,762,500 from the company's directors; Mr L Stravelakis and Mr N Stravelakis. It is expected that the bank loan will be issued during January 2024 on a proposed term of 10 years on an interest only basis. The negotiations are currently on-going with the new lender and thus the directors continue to adopt the going concern basis of accounting in preparing the financial statement on the grounds that the new loan facility will be secured in January 2024.

1.3
Turnover

Turnover is recognised at the fair value of the consideration received or receivable for rental income and services provided in the normal course of business, and is shown net of VAT and other sales related taxes. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.

Revenue from contracts for the provision of services is recognised by reference to the stage of completion when the stage of completion, costs incurred and costs to complete can be estimated reliably. The stage of completion is calculated by comparing costs incurred, as a proportion of total costs. Where the outcome cannot be estimated reliably, revenue is recognised only to the extent of the expenses recognised that it is probable will be recovered.

1.4
Investment properties

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 measured at fair value at the reporting end date. Changes in fair value are recognised in profit or loss.

SEPTON CO. LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
1
Accounting policies
(Continued)
- 4 -
1.5
Fixed asset investments

Interests in subsidiaries, associates and jointly controlled entities are initially measured at cost and subsequently measured at cost less any accumulated impairment losses. The investments are assessed for impairment at each reporting date and any impairment losses or reversals of impairment losses are recognised immediately in profit or loss.

A subsidiary is an entity controlled by the company. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.

An associate is an entity, being neither a subsidiary nor a joint venture, in which the company holds a long-term interest and where the company has significant influence. The company considers that it has significant influence where it has the power to participate in the financial and operating decisions of the associate.

Entities in which the company has a long term interest and shares control under a contractual arrangement are classified as jointly controlled entities.

1.6
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. Bank overdrafts are shown within borrowings in current liabilities.

1.7
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.

SEPTON CO. LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
1
Accounting policies
(Continued)
- 5 -
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.

1.8
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.

1.9
Taxation

The tax expense represents the sum of the tax currently payable and deferred tax.

Current tax

The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account 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

Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax 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 profit and loss account, 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.

1.10
Foreign exchange

Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation in the period are included in profit or loss.

SEPTON CO. LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
- 6 -
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:

2022
2021
Number
Number
Total
2
2
4
Investment property
2022
£
Fair value
At 1 January 2022
3,175,112
Additions
845,989
Revaluations
228,899
At 31 December 2022
4,250,000

The investment property comprises of leasehold residential land & buildings held for investment and letting purposes. The fair value of the properties has been arrived at on the basis of a valuation carried out at the year end.

5
Fixed asset investments
2022
2021
£
£
Shares in group undertakings and participating interests
2,393,001
2,393,001
6
Subsidiaries

Details of the company's subsidiaries at 31 December 2022 are as follows:

Name of undertaking
Registered office
Class of
% Held
shares held
Direct
Septon Subco Limited
United Kingdom
Ordinary shares
100
Septon Co Inc
Republic of Liberia
Ordinary shares
100
SEPTON CO. LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
- 7 -
7
Debtors
2022
2021
Amounts falling due within one year:
£
£
Other debtors
439,824
22,277
8
Creditors: amounts falling due within one year
2022
2021
£
£
Other creditors
120,941
90,072
9
Loans and overdrafts
2022
2021
£
£
Bank loans
2,635,000
1,398,750
Other loans
4,788,576
4,788,576
7,423,576
6,187,326
Payable after one year
7,423,576
6,187,326

The bank loan of £1,400,000 was repaid in full during the year ended 31 December 2022. It was secured by a charge over the company's assets and a first legal charge over the investment properties.

 

The bridging loan of £2,635,000 was issued during the year ended 31 December 2022 and is secured by a charge over the company's assets and a first legal charge over the investment properties. The loan is provided for a short-term on an interest only basis with a renewal due in January 2024.

 

A loan of £2,393,000 has been advanced to the company by the shareholders on an interest free basis and the loan is for a term of 10 years.

 

A further loan of £2,395,576 has been provided to the company by Septon Co Inc on an interest free basis for a term of 10 years.

10
Creditors: amounts falling due after more than one year
2022
2021
£
£
Bank loans and overdrafts
2,635,000
1,398,750
Other creditors
4,788,576
4,788,576
7,423,576
6,187,326
SEPTON CO. LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
- 8 -
11
Called up share capital
2022
2021
2022
2021
Ordinary share capital
Number
Number
£
£
Issued and fully paid
500 Ordinary shares of £1 each
500
500
500
500
12
Events after the reporting date

During December 2023, the company entered into negotiations with a commercial bank to refinance the existing bridging loan. The company has applied for a loan facility up to £2,762,500 to be secured by a charge over the company's assets, a first legal charge over the investment properties and guarantees limited to £2,762,500 from the company's directors; Mr L Stravelakis and Mr N Stravelakis. It is expected that the bank loan will be issued during January 2024 on a proposed term of 10 years on an interest only basis. The negotiations are currently on-going with the new lender and thus the directors continue to adopt the going concern basis of accounting in preparing the financial statement on the grounds that the new loan facility will be secured in January 2024.

2022-12-312022-01-01false22 December 2023CCH SoftwareCCH Accounts Production 2023.200The principle activity of the company is that of property investment.
Mr L StravelakisMr N StravelakisMr N Stravelakis
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