Company Registration No. 14400038 (England and Wales)
Sophomore Property 2a Ltd (Formerly Sophomore Property 2 Ltd)
Unaudited accounts
for the period from 5 October 2022 to 30 June 2023
Sophomore Property 2a Ltd (Formerly Sophomore Property 2 Ltd)
Unaudited accounts
Contents
Sophomore Property 2a Ltd (Formerly Sophomore Property 2 Ltd)
Company Information
for the period from 5 October 2022 to 30 June 2023
Directors
Abiola Modupeola Motajo
Emma Jane Morton
Jennifer Lambkin
Secretary
Mourant Governance Services (UK) Limited
Company Number
14400038 (England and Wales)
Registered Office
4th Floor, 52-54 Gracechurch Street
London
EC3V 0EH
England
Sophomore Property 2a Ltd (Formerly Sophomore Property 2 Ltd)
Statement of financial position
as at 30 June 2023
Investment property
14,742,051
Cash at bank and in hand
1,133,339
Creditors: amounts falling due within one year
(592,943)
Net current assets
1,672,482
Total assets less current liabilities
16,414,533
Creditors: amounts falling due after more than one year
(14,940,000)
Called up share capital
2,075
Profit and loss account
(185,467)
Shareholders' funds
1,474,533
For the period ending 30 June 2023 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies. The members have not required the company to obtain an audit in accordance with section 476 of the Companies Act 2006.
The directors acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and the preparation of accounts.
These accounts have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies' regime and in accordance with the provisions of FRS 102 Section 1A - Small Entities. The profit and loss account has not been delivered to the Registrar of Companies.
The financial statements were approved by the Board of Directors and authorised for issue on 27 March 2024 and were signed on its behalf by
Abiola Modupeola Motajo
Director
Company Registration No. 14400038
Sophomore Property 2a Ltd (Formerly Sophomore Property 2 Ltd)
Notes to the Accounts
for the period from 5 October 2022 to 30 June 2023
Sophomore Property 2a Ltd (Formerly Sophomore Property 2 Ltd) is a private company, limited by shares, registered in England and Wales, registration number 14400038. The registered office is 4th Floor, 52-54 Gracechurch Street, London, EC3V 0EH, England.
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Compliance with accounting standards
The financial statements give a true and fair view, have been prepared in accordance with United Kingdom Accounting
Standards including Financial Reporting Standard 102 Section 1A, The Financial Reporting Standard applicable in the United
Kingdom and Republic of Ireland (“FRS 102”) and they are in compliance with the UK Companies Act 2006. The financial
statements have been prepared under the historical cost convention, modified to include investment property and certain
financial instruments at fair value and as the Company meets the small companies threshold, have been prepared under
FRS102 Section 1A.
The functional and presentational currency of the Company is Sterling (GBP)
The principal accounting policies adopted in the preparation of the financial statements are set out below and have been consistently applied within the same accounts.
The financial statements have been prepared under the historical cost basis, as modified by the revaluation of investment property at fair value through profit or loss.
The Company currently has net current assets.
On the basis of their assessment of the Company's financial position and enquiries made regarding financial support, the directors believe that the Company has adequate resources to continue in operational existence for the foreseeable future. For these reasons they continue to adopt the going concern basis of accounting in preparing these annual Financial Statements.
Basic financial instruments
(i) Debtors / creditors
Debtors are recognised initially at transaction price less attributable transaction costs. Creditors are recognised initially at transaction price plus attributable transaction costs. Subsequent to initial recognition they are measured at amortised cost using the effective interest method, less any impairment losses in the case of debtors. If the arrangement constitutes a financing transaction, for example if payment is deferred beyond normal business terms, then it is measured at the present value of future payments discounted at a market rate of instrument for a similar debt instrument.
(ii) Interest-bearing borrowings classified as basic financial instruments
Interest-bearing borrowings are recognised initially at the present value of future payments discounted at a market rate of interest. Subsequent to initial recognition, interest-bearing borrowings are stated at amortised cost using the effective interest method, less any impairment losses.
The effective interest method is a method of calculating the amortised cost of a debt instrument and of allocating interest
income over the relevant period. The effective interest rate is the rate that exactly discounts estimated future cash receipts
through the expected life of the debt instrument, or, where appropriate, a shorter period, to the net carrying amount on initial
recognition.
(iii) Cash and cash equivalents
Cash and cash equivalents comprise cash balances.
Sophomore Property 2a Ltd (Formerly Sophomore Property 2 Ltd)
Notes to the Accounts
for the period from 5 October 2022 to 30 June 2023
Investment property is property which is held either to earn rental income or for capital appreciation or for both. Investment property is recognised initially at cost which includes purchase cost and any directly attributable expenditure.
Investment property is subsequently measured at fair value at each reporting date with changes in fair value recognised in the Income Statement.
Investment property is derecognised on disposal or when no future economic benefits are expected.
Rent free and capital incentives given to tenants are amortised over the term of the lease. The fair value of the property is adjusted by the amount of the unamortised lease incentives and capital incentives in place at the year end.
Ordinary shares are classified as equity. Incremental costs directly attributable to the issue of new ordinary shares or options are shown in equity as a deduction, net of tax, from the proceeds.
Rental income from operating leases is recognised on a straight-line basis over the lease term, on an accruals basis.
Leases are classified as operating leases where a significant portion of the risks and rewards of ownership is retained by the lessor. Payments (excluding costs for services and insurance) made under operating leases are recognised in the Income Statement on a straight-line basis over the term of the lease.
Direct expenses and other overheads are recognised in the Income Statement on an accruals basis.
Interest receivable and similar income
Interest receivable and similar income include interest receivable on funds invested. Interest income is recognised in the Income Statement as it is earned.
Interest payable and similar charges
Interest payable and similar charges include interest payable and finance charges on borrowings classified as liabilities. Interest payable is recognised in the Income Statement as it accrues, using the effective interest method.
Until 1 April 2023, the Company was subject to UK corporation tax at 19%. The corporation tax rate increased from 19% to 25% from 1 April 2023, with a rate of 19% available if the Company qualifies as a small company.
Taxation expense for the year comprises current tax recognised in the reporting year. Tax is recognised in the Income Statement.
Current tax
Current tax is the amount of tax payable in respect of the taxable profit for the period. Tax is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the period end.
Deferred tax
Deferred tax arises from timing differences that are differences between taxable profits and total income and expenses as stated in the financial statements. The timing differences arise from the inclusion of income and expenses in tax assessments in periods difference from those in which they are recognised in financial statements.
Deferred tax is recognised on all timing differences between taxable profits and total income and expenses in tax assessments in periods different from those in which they are recognised in financial statements.
Sophomore Property 2a Ltd (Formerly Sophomore Property 2 Ltd)
Notes to the Accounts
for the period from 5 October 2022 to 30 June 2023
Deferred tax is recognised on all timing differences at the reporting date. Unrelieved tax losses and other deferred tax assets are only recognised when it is probable that they will recovered against the reversal of deferred tax liabilities or future taxable profits.
Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference.
Current and future amendments to accounting standards
The directors have considered the amendments to FRS102 that will become effective in future years. They have concluded that there are no changes pending that would have a significant impact on the Company financial statements.
Accounting estimates and judgements
Estimates and judgements are continually evaluated and are based on experience and other factors, including expectations of future events that are believed to be reasonable under these circumstances.
(a) Estimates of fair value of investment properties
The fair value of investment property is determined by using valuation techniques. For further details of the judgements and assumptions made, see note 4.
(b) Current tax
The Company recognises liabilities for anticipated tax based on estimates of whether additional taxes will be due. Where the final tax outcome of these matters is different from the amounts that were initially recorded, such differences will impact the current tax.
At 30 June 2023
14,742,051
As at the statement of financial position date, the directors deem the cost of the investment property to be equal to fair value and therefore no revaluation has been performed.
Amounts falling due within one year
Amounts due from group undertakings etc.
20,000
Accrued income and prepayments
23,003
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Creditors: amounts falling due within one year
2023
Amounts owed to group undertakings and other participating interests
292,446
Sophomore Property 2a Ltd (Formerly Sophomore Property 2 Ltd)
Notes to the Accounts
for the period from 5 October 2022 to 30 June 2023
7
Creditors: amounts falling due after more than one year
2023
Amounts owed to group undertakings and other participating interests
14,940,000
Allotted, called up and fully paid:
2,075 Ordinary shares of £1 each
2,075
Shares issued during the period:
2,075 Ordinary shares of £1 each
2,075
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Transactions with related parties
Abiola Motajo served as Director during the period and are employed by Mourant Governance Services (UK) Limited which, together with its affiliates provides registered office and administrative services to the Company. The Company has an intercompany loan with Sophomore Midco 2 Ltd as disclosed in Note 7.
The parent company is Sophomore Midco 2a Limited. The ultimate controlling party is Sophomore Holdings 2 LP.
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Post balance sheet events
On 28 September 2023, Sophomore Midco 2a Limited subscribed for 2,653 ordinary shares in the Company of GBP 1 par value at GBP 800 per share creating a Share premium of GBP 799 per share.
On 2 November 2023, the Company acquired First Step Homes Limited, for GBP 1,000, for a 100% holding in the subsidiary.
On 17 November 2023, Jennifer Lambkin was appointed Director.
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Average number of employees
During the period the average number of employees was 0.