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Registered number: 08089816










Discovery Park Limited










Annual report and financial statements

For the year ended 30 November 2023

 
Discovery Park Limited
 

Company Information


Directors
Simcha Asher Green 
Mayer Schreiber 
Moses Schreiber 
Bernard Spitz 




Company secretary
Rifka Niederman



Registered number
08089816



Registered office
147 Stamford Hill

London

N16 5LG




Independent auditor
Kreston Reeves LLP
Chartered Accountants & Statutory Auditor

37 St Margaret's Street

Canterbury

Kent

CT1 2TU





 
Discovery Park Limited
 

Contents



Page
Strategic report
1 - 2
Directors' report
3
Directors' responsibilities statement
4
Independent auditor's report
5 - 8
Statement of comprehensive income
9
Balance sheet
10
Statement of changes in equity
11
Notes to the financial statements
12 - 26

 
Discovery Park Limited
 

Strategic report
For the year ended 30 November 2023

Introduction
 
The directors present their strategic report for the year ended 30 November 2023.

Business review
 
Discovery Park continues to thrive as a premier science and technology park situated in Sandwich, Kent. Our vision is to create a world-class and world-leading hub, building an environment that fosters innovation by bringing together the best and brightest minds. Discovery Park offers state-of-the-art laboratories, offices, and manufacturing spaces, with room for expansion. We also provide access to finances, business support and a robust scientific skill base.
Ownership of the park is held by Discovery Park Limited (DPL) which has appointed Discovery Park Management Limited (DPML) to manage the park. DPML charges DPL a fee for these services. 
DPL derives income from the lease of laboratories, office space and other demises, the recharge of costs in maintaining the park and facilities, and recovery of energy costs.
The company undertakes a range of activities to support the life sciences and healthcare tenants and attract new ones. These include business development networking events, conference attendance, conference hosting and marketing.
DPML is the management agent and responsible for:
• Overseeing the management of facilities and utility services at Discovery Park
• Fostering and driving growth throughout Discovery Park
• Providing services to tenants upon request
Most services required for the operation of Discovery Park are performed in-house by a specialised team employed by DPML. This internal arrangement enables DPML to offer efficient, dependable, and resilient services throughout the premises, all while maintaining optimal efficiency. External or specialised contractors are employed when necessary.
To ensure the effective service delivery and operational excellence, DPML has implemented a business model focused on strong governance, risk management, contingency preparedness, performance tracking, and a commitment to understanding and learning from root causes.
Additionally, there is an ongoing commitment to enhance and scrutinise processes and procedures to ensure a robust and efficient service delivery.
This approach guarantees that DPML operates as a unified team with a coherent vision. A clear guiding principle aligns all staff's objectives with the overall mission and goals of the business.
Through open conversation and reporting, DPML collaboratively addresses key priorities and reaches agreed-upon action plans. Timelines for implementation are then established to ensure minimal or no impact on the science tenants within the park.

Page 1

 
Discovery Park Limited
 

Strategic report (continued)
For the year ended 30 November 2023

Principal risks and uncertainties
 
The company faces several risks which it manages appropriately at operational, tactical and strategic levels. Below are the key risks as considered by the Board in no particular order.
1. Operational failure 
The risk of operational failure at DPL is regularly monitored and under control through the management agent (DPML). These risks include the supply and flow of energy to the site and waste removal, careful monitoring of potential hazards and mitigation. The Board collaborates closely with senior management to tailor services to meet the needs of DPL and its tenants, all while closely monitoring risks. 
2. Liquidity
Liquidity risk refers to the potential challenge the company may face in fulfilling its financial obligations when they become due. The company actively aims to prevent this risk. Since many projects require substantial initial cash outflow before yielding returns, the management of cash flow becomes crucial. After evaluating future cash flow needs, the company anticipates being able to cover its financial responsibilities through the revenue generated from operating activities and the facilities presently available from its investor base.
3. Energy Supply costs
With the global energy market having stabilised, the risk of volatility impacting the cost of utility supplies to DPL and its tenant base is now well-managed. The company, in close collaboration with its tenants, continues to actively monitor and manage energy procurement and consumption, ensuring that potential risks are mitigated and kept in check.
4. Business Rates 
The cost of Business Rates for unoccupied space is a challenge that is proactively monitored, with ongoing actions to manage these obligations.  

Financial key performance indicators
 
The company uses a range of measures to ensure that the business is properly controlled. These include:
1. Floor space occupied and rental income per square foot
2. Operational costs and recovery of costs
3. Profitability
4,       Cashflow management
5.     Other non-financial measures such as Customer Feedback on services provided, employee engagement    surveys.



This report was approved by the board and signed on its behalf.



Mayer Schreiber
Director

Date: 29 August 2024
Page 2

 
Discovery Park Limited
 

 
Directors' report
For the year ended 30 November 2023

The directors present their report and the financial statements for the year ended 30 November 2023.

Principal activity

The principal activity of the company continued to be that of developing a world-class world leading science park. This includes buying, selling, developing and rental of real estate in the form of office, laboratory and manufacturing facilities.

Results and dividends

The loss for the year, after taxation, amounted to £6,469,072 (2022 - profit £789,358).

No ordinary dividends were paid (2022- £NIL). The directors do not recommend payment of a final dividend.

Directors

The directors who served during the year were:

Simcha Asher Green 
Mayer Schreiber 
Moses Schreiber 
Bernard Spitz 

Future developments

The company's strategic focus continues to be creating a world class and world leading science technology park in the South East of England. This includes further development of the Building 500 and the leasing of laboratories and other demises, operational efficiencies across the site and improved facilities.  The company maintains its focus to support the life sciences and healthcare tenants and to attract new ones, and to expand our company’s profile and reach nationally or overseas in selective markets.

Disclosure of information to auditor

Each of the persons who are directors at the time when this directors' report is approved has confirmed that:
 
so far as the director is aware, there is no relevant audit information of which the company's auditor is unaware, and

the director has taken all the steps that ought to have been taken as a director in order to be aware of any relevant audit information and to establish that the company's auditor is aware of that information.

Post balance sheet events

There were no events to report following the year end.

Auditor

The auditor, Kreston Reeves LLPwill be proposed for reappointment in accordance with section 485 of the Companies Act 2006.

This report was approved by the board and signed on its behalf.
 



Mayer Schreiber
Director

Date: 29 August 2024
Page 3

 
Discovery Park Limited
 

Directors' responsibilities statement
For the year ended 30 November 2023

The directors are responsible for preparing the strategic report, 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 applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland'. 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 for the company's financial statements 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.

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 to enable them to ensure that the financial statements comply with the Companies Act 2006They 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.

The directors are responsible for the maintenance and integrity of the corporate and financial information included on the company's website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements and other information included in directors' reports may differ from legislation in other jurisdictions.

Page 4

 
Discovery Park Limited
 

 
Independent auditor's report to the members of Discovery Park Limited
 

Opinion

We have audited the financial statements of Discovery Park Limited (the 'company') for the year ended 30 November 2023, which comprise the statement of comprehensive income, the balance sheet, the statement of changes in equity and the related notes, including a summary of significant accounting policiesThe 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 30 November 2023 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 Auditor's 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 United Kingdom, including the Financial Reporting Council'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 other information comprises the information included in the Annual Report other than the financial statements and our auditor's report thereon. The directors are responsible for the other information contained within the Annual ReportOur 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.


Page 5

 
Discovery Park Limited
 

 
Independent auditor's report to the members of Discovery Park Limited (continued)


Opinion 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 strategic report and the directors' report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
the strategic report and the directors' report have been prepared in accordance with applicable legal requirements.


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 strategic report or 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.


Responsibilities of directors

As explained more fully in the directors' responsibilities statement set out on page 4, 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.


Page 6

 
Discovery Park Limited
 

 
Independent auditor's report to the members of Discovery Park Limited (continued)


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.


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:

Capability of the audit in detecting irregularities, including fraud
Based on our understanding of the company and industry, and through discussion with the directors and other management (as required by auditing standards), we identified that the principal risks of non-compliance with laws and regulations related to health and safety, anti-bribery and employment law. We considered the extent to which non-compliance might have a material effect on the financial statements. We also considered those laws and regulations that have a direct impact on the preparation of the financial statements such as the Companies Act 2006. We communicated identified laws and regulations throughout our team and remained alert to any indications of non-compliance throughout the audit. We evaluated management’s incentives and opportunities for fraudulent manipulation of the financial statements (including the risk of override of controls) and determined that the principal risks were related to posting inappropriate journal entries to increase revenue or reduce expenditure, management bias in accounting estimates and judgemental areas of the financial statements such as the valuation of investment properties. Audit procedures performed by the companies engagement team included:
• Discussions with management and assessment of known or suspected instances of non-compliance with   laws and regulations (including health and safety) and fraud; and
• Assessment of identified fraud risk factors; and
• Confirmation of related parties with management, and review of transactions throughout the period to    identify any previously undisclosed transactions with related parties outside the normal course of     business; and
• Review of significant and unusual transactions and evaluation of the underlying financial rationale     supporting the transactions; and
• Identifying and testing journal entries, in particular any manual entries made at the year end for financial    statement preparation.
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.




 


Page 7

 
Discovery Park Limited
 

 
Independent auditor's report to the members of Discovery Park Limited (continued)


As part of an audit in accordance with ISAs (UK), we exercise professional judgement and maintain professional scepticism throughout the audit. We also:


Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion of the effectiveness of the company's internal control.
Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the directors.
Conclude on the appropriateness of the directors' use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the company's ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor's report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor's report. However, future events or conditions may cause the company to cease to continue as a going concern.
Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation.


We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.


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 2006Our 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.





Mark Attwood FCCA (senior statutory auditor)
  
for and on behalf of
Kreston Reeves LLP
 
Chartered Accountants
Statutory Auditor
  
Canterbury

29 August 2024
Page 8

 
Discovery Park Limited
 

Statement of comprehensive income
For the year ended 30 November 2023

2023
2022
Note
£
£

  

Turnover
 4 
20,758,522
23,131,827

Cost of sales
  
(17,913,681)
(18,464,895)

Gross profit
  
2,844,841
4,666,932

Administrative expenses
  
(2,042,740)
(2,796,577)

Other operating income
 5 
249,249
4,652

Operating profit
 6 
1,051,350
1,875,007

Income from fixed assets investments
 9 
40,718
-

Interest receivable and similar income
 10 
1,558
-

Interest payable and similar expenses
 11 
(259,387)
(208,532)

Profit before tax
  
834,239
1,666,475

Tax on profit
 12 
(7,303,311)
(877,117)

(Loss)/profit for the financial year
  
(6,469,072)
789,358

There was no other comprehensive income for 2023 (2022:£NIL).

The notes on pages 12 to 26 form part of these financial statements.
Page 9

 
Discovery Park Limited
Registered number: 08089816

Balance sheet
As at 30 November 2023

2023
2022
Note
£
£

Fixed assets
  

Tangible assets
 13 
141,120
184,446

Investments
 14 
200
200

Investment property
 15 
116,357,962
114,497,231

  
116,499,282
114,681,877

Current assets
  

Debtors: amounts falling due within one year
 16 
18,605,277
16,060,096

Cash at bank and in hand
 17 
743,081
1,377,199

  
19,348,358
17,437,295

Creditors: amounts falling due within one year
 18 
(15,679,162)
(14,812,714)

Net current assets
  
 
 
3,669,196
 
 
2,624,581

Total assets less current liabilities
  
120,168,478
117,306,458

Creditors: amounts falling due after more than one year
 19 
(2,147,836)
(116,731)

Provisions for liabilities
  

Deferred tax
 21 
(28,982,537)
(21,682,550)

  
 
 
(28,982,537)
 
 
(21,682,550)

Net assets
  
89,038,105
95,507,177


Capital and reserves
  

Called up share capital 
 22 
102
102

Other reserves
 23 
77,686,770
84,990,105

Profit and loss account
 23 
11,351,233
10,516,970

  
89,038,105
95,507,177


The financial statements were approved and authorised for issue by the board and were signed on its behalf on 29 August 2024.




Mayer Schreiber
Director

The notes on pages 12 to 26 form part of these financial statements.
Page 10

 
Discovery Park Limited
 

Statement of changes in equity
For the year ended 30 November 2023


Called up share capital
Other reserves
Profit and loss account
Total equity

£
£
£
£


At 1 December 2021
102
85,844,579
8,873,138
94,717,819



Profit for the year
-
-
789,358
789,358

Transfer to/from profit and loss account
-
(854,474)
854,474
-



At 1 December 2022
102
84,990,105
10,516,970
95,507,177



Loss for the year
-
-
(6,469,072)
(6,469,072)

Transfer to/from profit and loss account
-
(7,303,335)
7,303,335
-


At 30 November 2023
102
77,686,770
11,351,233
89,038,105


The notes on pages 12 to 26 form part of these financial statements.
Page 11

 
Discovery Park Limited
 

 
Notes to the financial statements
For the year ended 30 November 2023

1.


General information

Discovery Park Limited is a private company limited by shares incorporated in England with registration number 08089816. The registered office is 147 Stamford Hill, London, N16 5LG and its principal place of business is Discovery Park, Innovation House, Ramsgate Road, Sandwich, Kent, CT13 9FF.
The principal activity of the company continued to be that of developing a world-class world leading science park. This includes buying, selling, developing and rental of real estate in the form of office, laboratory and manufacturing facilities.

2.Accounting policies

 
2.1

Basis of preparation of financial statements

The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with FRS 102 'The Financial Reporting Standard applicable in the UK and the Republic of Ireland' and the requirements of the Companies Act 2006

The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires management to exercise judgement in applying the company's accounting policies (see note 3).

The financial statements are presented in pounds sterling and are rounded to the nearest pound.

The following principal accounting policies have been applied:

 
2.2

Financial Reporting Standard 102 - reduced disclosure exemptions

The company has taken advantage of the following disclosure exemptions in preparing these financial statements, as permitted by the FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland":
the requirements of Section 7 Statement of Cash Flows;
the requirements of Section 3 Financial Statement Presentation paragraph 3.17(d);
the requirements of Section 11 Financial Instruments paragraphs 11.42, 11.44 to 11.45, 11.47, 11.48(a)(iii), 11.48(a)(iv), 11.48(b) and 11.48(c);
the requirements of Section 12 Other Financial Instruments paragraphs 12.26 to 12.27, 12.29(a), 12.29(b) and 12.29A;
the requirements of Section 33 Related Party Disclosures paragraph 33.7.

This information is included in the consolidated financial statements of Discovery Park Estates Ltd as at 30 November 2023 and these financial statements may be obtained from the company's registered office at 147 Stamford Hill, London, N16 5LG.

 
2.3

Exemption from preparing consolidated financial statements

The company is a parent company that is also a subsidiary included in the consolidated financial statements of a larger group by a parent undertaking established under the law of any part of the United Kingdom and is therefore exempt from the requirement to prepare consolidated financial statements under section 400 of the Companies Act 2006.

These financial statements are therefore the company’s separate financial statements, and present information about the company as an individual undertaking and not about its group.

Page 12

 
Discovery Park Limited
 

 
Notes to the financial statements
For the year ended 30 November 2023

2.Accounting policies (continued)

 
2.4

Revenue recognition

Revenue is recognised to the extent that it is probable that the economic benefits will flow to the company and the revenue can be reliably measured. Revenue is measured as the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. The following criteria must also be met before revenue is recognised:

Rendering of services

Revenue from a contract to provide services is recognised in the period in which the services are provided in accordance with the stage of completion of the contract when all of the following conditions are satisfied:
the amount of revenue can be measured reliably;
it is probable that the company will receive the consideration due under the contract;
the stage of completion of the contract at the end of the reporting period can be measured reliably; and
the costs incurred and the costs to complete the contract can be measured reliably.

Turnover represents rents and other services receivable during the year.

 
2.5

Operating leases: the company as lessor

Rental income from operating leases is credited to profit or loss on a straight-line basis over the lease term.

Amounts paid and payable as an incentive to sign an operating lease are recognised as a reduction to income over the lease term on a straight-line basis, unless another systematic basis is representative of the time pattern over which the lessor's benefit from the leased asset is diminished.

Temporary rent concessions occurring as a direct consequence of the COVID-19 pandemic have been recognised on a systematic basis over the periods that the change in lease income is intended to compensate. This is conditional on:

the change in lease income resulting in revised consideration for the lease that is less than the consideration for the lease immediately preceding the change;
any reduction in lease income affecting only income originally due on or before 30 June 2022;
there being no significant change to other terms and conditions of the lease.

 
2.6

Government grants

Grants are accounted under the accruals model as permitted by FRS 102. Grants relating to expenditure on tangible fixed assets are credited to profit or loss at the same rate as the depreciation on the assets to which the grant relates. The deferred element of grants is included in creditors as deferred income.
Grants of a revenue nature are recognised in the statement of comprehensive income in the same period as the related expenditure.
Page 13

 
Discovery Park Limited
 

 
Notes to the financial statements
For the year ended 30 November 2023

2.Accounting policies (continued)

 
2.7

Interest income

Interest income is recognised in profit or loss using the effective interest method.

 
2.8

Finance costs

Finance costs are charged to profit or loss over the term of the debt using the effective interest method so that the amount charged is at a constant rate on the carrying amount. Issue costs are initially recognised as a reduction in the proceeds of the associated capital instrument.

 
2.9

Current and deferred taxation

The tax expense for the year comprises current and deferred tax. Tax is recognised in profit or loss except that a charge attributable to an item of income and expense recognised as other comprehensive income or to an item recognised directly in equity is also recognised in other comprehensive income or directly in equity respectively.

The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the balance sheet date in the countries where the company operates and generates income.

Deferred tax balances are recognised in respect of all timing differences that have originated but not reversed by the balance sheet date, except that:
The recognition of deferred tax assets is limited to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits; and
Any deferred tax balances are reversed if and when all conditions for retaining associated tax allowances have been met.

Deferred tax balances are not recognised in respect of permanent differences except in respect of business combinations, when deferred tax is recognised on the differences between the fair values of assets acquired and the future tax deductions available for them and the differences between the fair values of liabilities acquired and the amount that will be assessed for tax. Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the balance sheet date.
Page 14

 
Discovery Park Limited
 

 
Notes to the financial statements
For the year ended 30 November 2023

2.Accounting policies (continued)

 
2.10

Tangible fixed assets

Tangible fixed assets under the cost model are stated at historical cost less accumulated depreciation and any accumulated impairment losses. Historical cost includes expenditure that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management.

At each reporting date the company assesses whether there is any indication of impairment. If such indication exists, the recoverable amount of the asset is determined which is the higher of its fair value less costs to sell and its value in use. An impairment loss is recognised where the carrying amount exceeds the recoverable amount.

The company adds to the carrying amount of an item of fixed assets the cost of replacing part of such an item when that cost is incurred, if the replacement part is expected to provide incremental future benefits to the company. The carrying amount of the replaced part is derecognised. Repairs and maintenance are charged to profit or loss during the period in which they are incurred.

Land is not depreciated. Depreciation on other assets is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, on a reducing balance basis.

Depreciation is provided on the following basis:

Plant and machinery
-
20%
Motor vehicles
-
25%
Fixtures, fittings and equipment
-
20%

The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.

Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in profit or loss.

 
2.11

Investment property

Investment property is carried at fair value determined annually and derived from the current market rents and investment property yields for comparable real estate, adjusted if necessary for any difference in the nature, location or condition of the specific asset. No depreciation is provided. Changes in fair value are recognised in profit or loss.

 
2.12

Valuation of investments

Investments in subsidiaries are measured at cost less accumulated impairment.

 
2.13

Debtors

Short-term debtors are measured at transaction price, less any impairment. Loans receivable are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method, less any impairment.
Page 15

 
Discovery Park Limited
 

 
Notes to the financial statements
For the year ended 30 November 2023

2.Accounting policies (continued)

 
2.14

Cash and cash equivalents

Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours. Cash equivalents are highly liquid investments that mature in no more than three months from the date of acquisition and that are readily convertible to known amounts of cash with insignificant risk of change in value.

 
2.15

Creditors

Short-term creditors are measured at the transaction price. Other financial liabilities, including bank loans, are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method.

 
2.16

Financial instruments

The company has elected to apply the provisions of Section 11 “Basic Financial Instruments” of FRS 102 to all of its financial instruments.

The company has elected to apply the recognition and measurement provisions of IFRS 9 Financial Instruments (as adopted by the UK Endorsement Board) with the disclosure requirements of Sections 11 and 12 and the other presentation requirements of FRS 102.

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 trade and other receivables, cash and bank balances, are initially measured at their transaction price including transaction costs and are subsequently carried at their amortised cost using the effective interest method, less any provision for impairment, 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.

Discounting is omitted where the effect of discounting is immaterial. The company's cash and cash equivalents, trade and most other receivables due with the operating cycle fall into this category of financial instruments.

Financial liabilities

Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instruments any contract that evidences a residual interest in the assets of the company after the deduction of all its liabilities.

Basic financial liabilities, which include trade and other payables, bank loans and other loans are initially measured at their transaction price after transaction costs. When this constitutes a financing transaction, whereby the debt instrument is measured at the present value of the future receipts discounted at a market rate of interest. Discounting is omitted where the effect of discounting is immaterial.

Debt instruments are subsequently carried at their amortised cost using the effective interest rate method.


 
Page 16

 
Discovery Park Limited
 

 
Notes to the financial statements
For the year ended 30 November 2023

2.Accounting policies (continued)


2.16
Financial instruments (continued)

Trade payables are obligations to pay for goods and services that have been acquired in the ordinary course of business from suppliers. Trade payables are classified as current liabilities if the payment is due within one year. If not, they represent non-current liabilities. Trade payables are initially recognised at their transaction price and subsequently are measured at amortised cost using the effective interest method. Discounting is omitted where the effect of discounting is immaterial.

Derecognition of financial assets

Financial assets are derecognised when their contractual right to future cash flow expire, or are settled, or when the company transfers the asset and substantially all the risks and rewards of ownership to another party. If significant risks and rewards of ownership are retained after the transfer to another party, then the company will continue to recognise the value of the portion of the risks and rewards retained.

Derecognition of financial liabilities

Financial liabilities are derecognised when the company's contractual obligations expire or are discharged or cancelled.


3.


Judgements in applying accounting policies and key sources of estimation uncertainty

The preparation of the financial statements requires the directors to make judgments, estimates and assumptions that can affect the amounts reported for assets and liabilities, and the results for the year.  The nature of estimation is such though that actual outcomes could differ significantly from those estimates.
The following judgments have had the most significant impact on amounts recognised in the financial statements:
Carrying value of investment properties
The company holds investment property with fair value of £116,357,962 (2022: £114,497,231) at the year end (see note 15). In order to determine the fair value of its freehold investment property the company engages independent valuation specialists with experience in the location and nature of the property being valued to assist the directors with their estimation. They have used a valuation technique based on comparable market data, together with consideration of factors such as future occupancy rates, rental growth, yield and interest rates. The determined fair value of the investment property is most sensitive to fluctuations in the property market. 
A formal external valuation was obtained on the company's freehold investment property at 1 January 2022. The directors consider that there had been no material movement in valuation since the balance sheet date and therefore adopt this valuation at the 30 November 2023, in addition to the improvements since this date totalling £6,357,962.
Taxation
Provision has been made in the financial statements for deferred tax amounting to £28,982,537 (2022: £21,682,550) at the reporting date (see note 21).  This provision is based upon estimates of the future taxable gains, the timing of the reversal of timing differences upon which the provision is based and the tax rates that will be in force at that time together with an assessment of the impact of future tax planning strategies. 

Page 17

 
Discovery Park Limited
 

 
Notes to the financial statements
For the year ended 30 November 2023

4.


Turnover

An analysis of turnover by class of business is as follows:


2023
2022
£
£

Rental income
7,906,245
6,749,101

Service charge income
3,186,291
3,299,612

Utilities income
8,554,834
11,399,198

Other income
1,111,152
1,683,916

20,758,522
23,131,827


All turnover arose within the United Kingdom.


5.


Other operating income

2023
2022
£
£

Government grants receivable
249,249
4,652

249,249
4,652



6.


Operating profit

The operating profit is stated after charging:

2023
2022
£
£

Depreciation of tangible fixed assets
42,015
37,730

(Profit)/loss on disposal of fixed assets
(397)
-


7.


Auditor's remuneration

2023
2022
£
£

Fees payable to the company's auditor for the audit of the company's financial statements
11,750
10,595


8.


Employees




The average monthly number of employees, including directors, during the year was 4 (2022 - 4).

Page 18

 
Discovery Park Limited
 

 
Notes to the financial statements
For the year ended 30 November 2023

9.


Income from investments

2023
2022
£
£





Dividends received from unlisted investments
40,718
-

40,718
-



10.


Interest receivable

2023
2022
£
£


Other interest receivable
1,558
-

1,558
-


11.


Interest payable and similar expenses

2023
2022
£
£


Other loan interest payable
250,000
200,000

Finance leases and hire purchase contracts
9,225
8,532

Other interest payable
162
-

259,387
208,532
Page 19

 
Discovery Park Limited
 

 
Notes to the financial statements
For the year ended 30 November 2023

12.


Taxation


2023
2022
£
£

Corporation tax


Adjustments in respect of previous periods
3,324
-


3,324
-


Total current tax
3,324
-

Deferred tax


Origination and reversal of timing differences
7,299,987
877,117

Total deferred tax
7,299,987
877,117


Taxation on profit on ordinary activities
7,303,311
877,117

Factors affecting tax charge for the year

The tax assessed for the year is higher than (2022 - higher than) the standard rate of corporation tax in the UK of 25% (2022 - 19%). The differences are explained below:

2023
2022
£
£


Profit on ordinary activities before tax
834,239
1,666,475


Profit on ordinary activities multiplied by standard rate of corporation tax in the UK of 25% (2022 - 19%)
208,560
316,630

Effects of:


Capital allowances for year in excess of depreciation
-
(255,744)

Other timing differences leading to an increase (decrease) in taxation
7,299,987
877,117

Dividends from UK companies
(10,180)
-

Other differences leading to an increase (decrease) in the tax charge
(5,317)
(794)

Group relief
(189,739)
(60,092)

Total tax charge for the year
7,303,311
877,117

The other timing differences leading to an increase in taxation of £7,299,987 is caused by the increase in tax rate from 19% to 25%.


Factors that may affect future tax charges

There were no factors that may affect future tax charges.

Page 20

 
Discovery Park Limited
 

 
Notes to the financial statements
For the year ended 30 November 2023

13.


Tangible fixed assets





Plant and machinery
Motor vehicles
Fixtures and fittings
Total

£
£
£
£



Cost or valuation


At 1 December 2022
396,055
49,488
229,789
675,332


Disposals
(560)
(17,596)
(3,310)
(21,466)



At 30 November 2023

395,495
31,892
226,479
653,866



Depreciation


At 1 December 2022
230,767
36,747
223,372
490,886


Charge for the year on owned assets
37,577
3,154
1,284
42,015


Disposals
(503)
(16,650)
(3,002)
(20,155)



At 30 November 2023

267,841
23,251
221,654
512,746



Net book value



At 30 November 2023
127,654
8,641
4,825
141,120



At 30 November 2022
165,288
12,741
6,417
184,446

Page 21

 
Discovery Park Limited
 

 
Notes to the financial statements
For the year ended 30 November 2023

14.


Fixed asset investments





Investments in subsidiary companies

£



Cost


At 1 December 2022
200



At 30 November 2023
200





Subsidiary undertakings


The following were subsidiary undertakings of the company:

Name

Class of shares

Holding

Discovery Park House Limited*
Ordinary
100%
Discovery Park Innovation Limited*
Ordinary
100%
Discovery Park Investments Limited
Ordinary
100%
DP Instro Limited
Ordinary
100%

All subsidiary undertakings are registered at 147 Stamford Hill, London, N16 5LG.
*These companies are indirect subsidaries of Discovery Park Limited.


15.


Investment property


Freehold investment property

£



Valuation


At 1 December 2022
114,497,231


Additions at cost
1,860,731



At 30 November 2023
116,357,962

The company's freehold investment property was last independently valued on 1 January 2022 by Emma Grahame MRICS of Jones Lang LaSalle Limited, who has significant experience in the commercial property market. This valuation was made on a fair value basis.
It is the opinion of the directors that the value at the Balance Sheet date is the same as at the valuation date, in addition to the improvements since this date totalling £6,357,962.




Page 22

 
Discovery Park Limited
 

 
Notes to the financial statements
For the year ended 30 November 2023

16.


Debtors

2023
2022
£
£


Trade debtors
1,023,895
505,131

Amounts owed by group undertakings
12,931,238
11,239,488

Other debtors
1,661,995
1,767,165

Prepayments and accrued income
2,988,149
2,548,312

18,605,277
16,060,096



17.


Cash and cash equivalents

2023
2022
£
£

Cash at bank and in hand
743,081
1,377,199

743,081
1,377,199



18.


Creditors: Amounts falling due within one year

2023
2022
£
£

Trade creditors
1,097,548
929,347

Amounts owed to group undertakings
3,684,985
2,576,270

Other taxation and social security
245,024
19,496

Obligations under finance lease and hire purchase contracts
29,683
27,616

Other creditors
8,134,400
5,158,494

Accruals and deferred income
2,487,522
6,101,491

15,679,162
14,812,714



19.


Creditors: Amounts falling due after more than one year

2023
2022
£
£

Net obligations under finance leases and hire purchase contracts
72,158
101,843

Government grants received
2,075,678
14,888

2,147,836
116,731


Page 23

 
Discovery Park Limited
 

 
Notes to the financial statements
For the year ended 30 November 2023

20.


Hire purchase and finance leases


Minimum lease payments under hire purchase fall due as follows:

2023
2022
£
£


Within one year
29,683
27,616

Between 1-5 years
72,158
101,841

101,841
129,457

21.


Deferred taxation




2023
2022


£

£






At beginning of year
(21,682,550)
(20,805,433)


Charged to profit or loss
(7,299,987)
(877,117)



At end of year
(28,982,537)
(21,682,550)

The provision for deferred taxation is made up as follows:

2023
2022
£
£


Accelerated capital allowances
(25,053)
(28,401)

Gain on investment property
(28,957,484)
(21,654,149)

(28,982,537)
(21,682,550)


The deferred tax liabilities set out above are expected to reverse when the assets to which they relate are disposed. The balances relate to accelerated capital allowances on tangible fixed assets and the tax liability estimated on the carrying value of investment properties.


22.


Share capital

2023
2022
£
£
Authorised, allotted, called up and fully paid



102 (2022 - 102) Ordinary shares of £1.00 each
102
102


Page 24

 
Discovery Park Limited
 

 
Notes to the financial statements
For the year ended 30 November 2023

23.


Reserves

Other reserves

To assist with the identification of profit available for distribution this reserve represents changes in the fair value of the company's investment properties to the extent that they are not considered to be distributable to the company's shareholders, less any related provision for current or deferred tax.

Profit and loss account

This reserve comprises all current and prior period retained profits and losses after deducting any distributions made to the company's shareholders.


24.


Contingent liabilities

The company pays business rates on its unoccupied commercial space that is broadly available to be let.   The company is disputing various business rates demands issued by the local district council to the company on commercial space where lease arrangements are in place.  The company considers it is not liable for the associated business rates liability and the dispute is being handled by the company’s solicitors.
The amount of the business rate demands in the above dispute for period ended 30 November 2023 total £440,000 and demands are also issued post this period.   No provision has been recorded for this amount on the basis that the company considers that no liability should arise and remains uncertain.


25.


Commitments under operating leases

At 30 November 2023 the company had future minimum lease payments due under non-cancellable operating leases for each of the following periods:

2023
2022
£
£


Not later than 1 year
4,308
-

Later than 1 year and not later than 5 years
1,795
-

6,103
-


26.Other financial commitments

The company has entered into a debenture including fixed and floating charges against the freehold investment property of the company, in favour of British Arab Commercial Bank PLC. This security relates to bank loans drawn by fellow subsidiary undertakings of the Discovery Park Group. The total exposure under this arrangement at the year end is in the sum of £23m (2022 - £23m).


27.


Related party transactions

The company is exempt from disclosing related party transactions between companies that are wholly owned within the group.

Page 25

 
Discovery Park Limited
 

 
Notes to the financial statements
For the year ended 30 November 2023

28.


Controlling party

The company is a wholly owned subsidiary undertaking of Discovery Park Estates Ltd, a company incorporated in England.
The directors regard Discovery Park Estates Ltd to be the company's ultimate parent undertaking. Discovery Park Estates Ltd is the smallest and largest group for which consolidated financial statements are prepared. Copies of the consolidated financial statements can be obtained from the company's registered office at 147 Stamford Hill, London, N16 5LG.


Page 26