WAKMOOR (ASSETS) LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022
Company Registration No. 13207912 (England and Wales)
WAKMOOR (ASSETS) LIMITED
COMPANY INFORMATION
Directors
Mr T Elliott
Mr R Crawshay Jones
Mr D Mackenzie
Mr N Young
Mrs S Young
Company number
13207912
Registered office
Unit 9 Dalton House
60 Windsor Avenue
London
SW19 2RR
Auditor
BDO LLP
55 Baker Street
London
W1U 7EU
Business address
Unit 9 Dalton House
60 Windsor Avenue
London
SW19 2RR
Accountants
Beaumont Seymour
47 Butt Road
Colchester
Essex
CO3 3BZ
WAKMOOR (ASSETS) LIMITED
CONTENTS
Page
Directors' report
1
Directors' responsibilities statement
2
Independent auditor's report
3 - 6
Profit and loss account
7
Statement of comprehensive income
8
Balance sheet
9
Statement of changes in equity
10
Notes to the financial statements
11 - 17
WAKMOOR (ASSETS) LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2022
- 1 -
The directors present their annual report and financial statements for the year ended 31 December 2022.
Principal activities
The company was incorporated on 17 February 2021. The principal activity of the company during the period was that of owning and operating student accommodation.
Directors
The directors who held office during the year and up to the date of signature of the financial statements were as follows:
Mr T Elliott
Mr R Crawshay Jones
Mr D Mackenzie
Mr N Young
Mrs S Young
Statement of disclosure to auditor
So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the company’s auditor is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the company’s auditor is aware of that information.
Going concern
The financial statements have been prepared on the going concern basis which assumes that the Company will continue in operational existence for the foreseeable future. In assessing the Company's ability to continue as a going concern, the Directors have reviewed the trading and cash flow forecasts of the Company against the available financing facilities and covenants which include the Directors' assessment of the impact of inflation, rising interest rates and the wider economic environment. These forecasts show that the Company has adequate resources to continue in operational existence for the foreseeable future and remain in compliance with relevant debt covenants throughout the forecast period. Furthermore the Company’s bank loan facility expires in 2026 and as a result there are no refinancing requirements during the course of the going concern period. The Company has also received confirmation from Wakmoor Limited that they do not intend to recall the shareholder loan for a period of 12 months from the date of signing.
For the reasons set out above the Directors believe that the Company has the ability to continue to meet its liabilities as they fall due for at least 12 months from the date of the approval of the financial statements and therefore consider it appropriate to adopt the going concern basis in preparing the financial statements.
Small companies exemption
This report has been prepared in accordance with the provisions applicable to companies entitled to the small companies exemption.
On behalf of the board
Mr D Mackenzie
Director
5 March 2024
WAKMOOR (ASSETS) LIMITED
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 31 DECEMBER 2022
- 2 -
The directors are responsible for preparing the annual 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; and
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.
WAKMOOR (ASSETS) LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF WAKMOOR (ASSETS) LIMITED
- 3 -
Opinion on the financial statements
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 profit 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.
We have audited the financial statements of Wakmoor (Assets) Limited (“the Company”) for the year ended 31 December 2022 which comprise the Profit and Loss Account, the Statement of Comprehensive Income, the Balance Sheet, the 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 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor’s responsibilities for the audit of the financial statements section of our report. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
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.
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.
The Directors are responsible for the other information. The other information comprises the information included in the Annual Report and Financial Statements, other than the financial statements and our auditor’s 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.
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 course of 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.
WAKMOOR (ASSETS) LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF WAKMOOR (ASSETS) LIMITED
- 4 -
Other Companies Act 2006 reporting
In our opinion, based on the work undertaken in the course of the audit:
the information given in the Directors’ report for the financial period 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.
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 in relation to which 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’ exemptions in preparing the Directors’ report and from the requirement to prepare a Strategic report.
Responsibilities of directors
As explained more fully in the Directors’ responsibilities statement, 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 is 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.
Auditor's 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 auditor’s 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.
Extent to which the audit was capable of detecting irregularities, including fraud
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:
WAKMOOR (ASSETS) LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF WAKMOOR (ASSETS) LIMITED
- 5 -
Non-compliance with laws and regulations
Based on:
Our understanding of the Company and the industry in which it operates;
Discussion with management and those charged with governance; and
Obtaining and understanding the Company’s policies and procedures regarding compliance with laws and regulations.
We considered the significant laws and regulations to be the applicable accounting standard and the Companies Act 2006.
The Company is also subject to laws and regulations where the consequence of non-compliance could have a material effect on the amount or disclosures in the financial statements, for example through the imposition of fines or litigations.
Our procedures in respect of the above included:
Review of minutes of meeting of those charged with governance for any instances of non-compliance with laws and regulations;
Review of financial statement disclosures and agreeing to supporting documentation; and
Review of legal expenditure accounts to understand the nature of expenditure incurred.
Fraud
We assessed the susceptibility of the financial statements to material misstatement, including fraud. Our risk assessment procedures included:
Enquiry with management and those charged with governance regarding any known or suspected instances of fraud;
Obtaining an understanding of the Company’s policies and procedures relating to:
Review of minutes of meetings of those charged with governance for any known or suspected instances of fraud;
Discussion amongst the engagement team as to how and where fraud might occur in the financial statements;
Performing analytical procedures to identify any unusual or unexpected relationships that may indicate risks of material misstatement due to fraud; and
Considering remuneration incentive schemes and performance targets and the related financial statement areas impacted by these.
Our procedure in respect of the above included:
Testing a sample of journal entries throughout the year, which met a defined risk criteria, by agreeing to supporting documentation; and
Assessing significant estimates made by management, including the valuation of investment property for bias.
We also communicated relevant identified laws and regulations and potential fraud risks to all engagement team members who were all deemed to have appropriate competence and capabilities and remained alert to any indications of fraud or non-compliance with laws and regulations throughout the audit.
Our audit procedures were designed to respond to risks of material misstatement in the financial statements, recognising that the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery, misrepresentations or through collusion. There are inherent limitations in the audit procedures performed and the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we are to become aware of it.
A further description of our responsibilities is available on the Financial Reporting Council’s website at:
https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.
WAKMOOR (ASSETS) LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF WAKMOOR (ASSETS) LIMITED
- 6 -
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 auditor’s 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.
Christopher Young (Senior Statutory Auditor)
For and on behalf of BDO LLP, Statutory Auditor
London, UK
5 March 2024
BDO LLP is a limited liability partnership registered in England and Wales (with registered number OC305127).
WAKMOOR (ASSETS) LIMITED
PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 31 DECEMBER 2022
- 7 -
Year
Period
ended
ended
31 December
31 December
2022
2021
Notes
£
£
Turnover
3,205,690
875,938
Cost of sales
(2,307,101)
(1,021,392)
Gross profit/(loss)
898,589
(145,454)
Administrative expenses
(88,671)
(30,318)
Operating profit/(loss)
3
809,918
(175,772)
Interest payable and similar expenses
5
(685,469)
(153,516)
Fair value gains and losses on investment properties
7
6,305,246
(1,328,867)
Fair value gains and losses on financial instruments
1,082,964
Profit/(loss) before taxation
7,512,659
(1,658,155)
Tax on profit/(loss)
6
Profit/(loss) for the financial year
7,512,659
(1,658,155)
The profit and loss account has been prepared on the basis that all operations are continuing operations.
WAKMOOR (ASSETS) LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2022
- 8 -
Year
Period
ended
ended
2022
2021
£
£
Profit/(loss) for the year
7,512,659
(1,658,155)
Other comprehensive income
-
-
Total comprehensive profit/(loss) for the year
7,512,659
(1,658,155)
WAKMOOR (ASSETS) LIMITED
BALANCE SHEET
AS AT 31 DECEMBER 2022
31 December 2022
- 9 -
2022
2021
Notes
£
£
£
£
Fixed assets
Investment property
7
51,930,000
25,109,868
Current assets
Debtors
9
2,071,254
686,493
Cash at bank and in hand
654,915
804,826
2,726,169
1,491,319
Creditors: amounts falling due within one year
10
(25,782,249)
(16,007,821)
Net current liabilities
(23,056,080)
(14,516,502)
Total assets less current liabilities
28,873,920
10,593,366
Creditors: amounts falling due after more than one year
11
(23,019,415)
(12,251,520)
Net assets/(liabilities)
5,854,505
(1,658,154)
Capital and reserves
Called up share capital
13
1
1
Profit and loss reserves
5,854,504
(1,658,155)
Total equity
5,854,505
(1,658,154)
These financial statements have been prepared 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 5 March 2024 and are signed on its behalf by:
Mr D Mackenzie
Director
Company Registration No. 13207912
WAKMOOR (ASSETS) LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2022
- 10 -
Share capital
Profit and loss reserves
Total
Notes
£
£
£
Balance at 17 February 2021
-
Period ended 31 December 2021:
Loss and total comprehensive loss for the period
-
(1,658,155)
(1,658,155)
Issue of share capital
13
1
-
1
Balance at 31 December 2021
1
(1,658,155)
(1,658,154)
Year ended 31 December 2022:
Profit and total comprehensive income for the year
-
7,512,659
7,512,659
Balance at 31 December 2022
1
5,854,504
5,854,505
WAKMOOR (ASSETS) LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022
- 11 -
1
Accounting policies
Company information
Wakmoor (Assets) Limited is a private company limited by shares incorporated in England and Wales. The registered office is Unit 9 Dalton House, 60 Windsor Avenue, London, SW19 2RR.
The company was incorporated on 17 February 2021. The principal activity of the company during the period was that of letting and operating student accommodation.
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.
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.
1.2
Going concern
The financial statements have been prepared on the going concern basis which assumes that the Company will continue in operational existence for the foreseeable future. In assessing the Company's ability to continue as a going concern, the Directors have reviewed the trading and cash flow forecasts of the Company against the available financing facilities and covenants trueinclude the Directors' assessment of the impact of inflation, rising interest rates and the wider economic environment. These forecasts show that the Company has adequate resources to continue in operational existence for the foreseeable future and remain in compliance with relevant debt covenants throughout the forecast period. Furthermore the Company’s bank loan facility expires in 2026 and as a result there are no refinancing requirements during the course of the going concern period. The Company has also received confirmation from Wakmoor Limited that they do not intend to recall the shareholder loan for a period of 12 months from the date of signing.
For the reasons set out above the Directors believe that the Company has the ability to continue to meet its liabilities as they fall due for at least 12 months from the date of the approval of the financial statements and therefore consider it appropriate to adopt the going concern basis in preparing the financial statements.
1.3
Revenue
Revenue recognition and other operating income
Revenue includes rental income from tenants and other ancillary income from property.
Rental income from short term tenants is recognised on a straight-line basis over the lease term. When the Company provides incentives to its tenants, the cost of incentives is recognised over the lease term, on a straight-line basis, as a reduction of rental income.
Revenue is recognised when the amount of revenue can be reliably measured, it is probable that future economic benefits will flow to the entity and specific criteria have been met for each of the Company’s activities.
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.
WAKMOOR (ASSETS) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
1
Accounting policies
(Continued)
- 12 -
1.5
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.
1.6
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.
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.
1.7
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.
WAKMOOR (ASSETS) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
1
Accounting policies
(Continued)
- 13 -
1.8
Derivative financial instruments
The Company uses derivative financial instruments to reduce exposure to interest rate movements. The Company does not hold or issue derivative financial instruments for speculative purposes.
Derivatives are initially recognised at fair value at the date a derivative contract is entered into and are subsequently re-measured to their fair value at each reporting date. The resulting gain or loss is recognised in profit or loss immediately unless the derivative is designated and effective as a hedging instrument, in which event the timing of the recognition in profit or loss depends on the nature of the hedge relationship.
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
Operating profit/(loss)
2022
2021
Operating profit/(loss) for the year is stated after charging/(crediting):
£
£
Fees payable to the company's auditor for the audit of the company's finanical statements
25,800
18,000
Fees payable to the company's accountant for tax services
1,200
Profit on disposal of tangible fixed assets
(25,446)
4
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2022
2021
Number
Number
5
5
5
Interest payable and similar expenses
2022
2021
£
£
Interest on financial liabilities measured at amortised cost:
Amortisation of loan arrangement fees
83,292
24,450
Other interest on financial liabilities
602,177
129,066
685,469
153,516
WAKMOOR (ASSETS) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
- 14 -
6
Taxation
The actual charge for the year can be reconciled to the expected charge/(credit) for the year based on the profit or loss and the standard rate of tax as follows:
2022
2021
£
£
Profit/(loss) before taxation
7,512,659
(1,658,155)
Expected tax charge/(credit) based on the standard rate of corporation tax in the UK of 19.00% (2021: 19.00%)
1,427,405
(315,049)
Unutilised tax losses carried forward
33,291
Change in unrecognised deferred tax assets
252,484
Group relief
(1,427,367)
29,714
Depreciation on assets not qualifying for tax allowances
(440)
Taxation charge for the year
38
-
Taxation charge in the financial statements
-
-
Reconciliation - the current year tax charge does not reconcile to the above analysis. Please review figures in the database.
38
-
7
Investment property
2022
£
Fair value
At 1 January 2022
25,109,868
Additions through external acquisition
20,696,641
Disposals
(181,754)
Net gains or losses through fair value adjustments
6,305,245
At 31 December 2022
51,930,000
WAKMOOR (ASSETS) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
- 15 -
8
Financial instruments
2022
2021
£
£
Financial assets
Financial assets measured at amortised cost
843,952
906,113
Instruments measured at fair value through profit or loss
1,082,964
-
Financial liabilities
Financial liabilities measured at amortised cost
48,790,590
28,214,668
Financial assets that are debt instruments measured at amortised cost are made up of cash and cash equivalent, group debtor, trade and other debtors.
Financial liabilities measured at amortised cost are made up of trade and other creditors, group creditors, accruals and loans.
9
Debtors
2022
2021
Amounts falling due within one year:
£
£
Trade debtors
84,265
17,255
Other debtors
104,100
180,149
Prepayments and accrued income
799,925
489,089
988,290
686,493
2022
2021
Amounts falling due after more than one year:
£
£
Derivative financial instruments
1,082,964
-
Total debtors
2,071,254
686,493
The Company has entered into an interest rate swap to receive interest at SONIA and pay interest at a fixed rate of 2.85%. The swap is based on a principal amount of £23,019,415 and matures on 10 September 2026. The instrument is used to hedge the Company's exposure to interest rate movements on the Bank loan facility. The fair value of the interest rate swap is £1,082,964. A fair value gain of £1,082,964 was recognised in the statement of comprehensive income.
WAKMOOR (ASSETS) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
- 16 -
10
Creditors: amounts falling due within one year
2022
2021
£
£
Loans from group undertakings
12
25,021,573
15,587,157
Trade creditors
38,392
38,385
Deferred income
11,074
44,673
Other creditors
220,211
162,087
Accruals
490,999
175,519
25,782,249
16,007,821
11
Creditors: amounts falling due after more than one year
2022
2021
Notes
£
£
Bank loans and overdrafts
12
23,019,415
12,251,520
12
Loans and overdrafts
2022
2021
£
£
Bank loans
23,019,415
12,251,520
Loans from group undertakings
25,021,573
15,587,157
48,040,988
27,838,677
Payable within one year
25,021,573
15,587,157
Payable after one year
23,019,415
12,251,520
Bank loans are secured by a legal charge over the company's assets present and future. Interest is charged at 2.85% plus SONIA. The bank loans are repayable on 10 September 2026.
Loans from group undertakings are unsecured, interest free and are repayable on demand.
13
Share capital
2022
2021
2022
2021
Ordinary share capital
Number
Number
£
£
Issued and fully paid
of £1 each
1
1
1
1
WAKMOOR (ASSETS) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
- 17 -
14
Related party transactions
The Company has in the past received funding from its immediate parent entity. At the end of the year a balance of £25,021,573 was owed to the immediate parent entity. All of these amounts are unsecured, non-interest bearing and repayable on demand.
The company has paid fees totalling £664,941 to We Are Kin (Students) Limited, an associated company. The company has paid fees of £103,519 on behalf of Wakmoor V (Investments) Limited, an associated company.
15
Immediate and ultimate parent undertaking and ultimate controlling party
The Company's immediate parent is Wakmoor Limited which is registered in England and Wales.
The Company's ultimate parent undertaking is Moorfield Student Housing Limited which is registered in England and Wales.
At 31 December 2022 the Company's ultimate controlling parties are MREF IV "A" Limited Partnership, MREF IV "B" Limited Partnership and MREF IV "PC" Limited Partnership which are limited partnerships registered in England and Wales, and MREF IV "C" SCSP, a private limited liability company registered in Luxembourg.
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