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Registered number: 10347881










Discovery Park Estates Ltd










Annual report and financial statements

For the year ended 30 November 2023

 
Discovery Park Estates Ltd
 

Company Information


Directors
Simcha Asher Green 
Mayer Schreiber 
Moses Schreiber 
Bernard Spitz 




Registered number
10347881



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 Estates Ltd
 

Contents



Page
Group strategic report
1 - 2
Directors' report
3 - 4
Independent auditor's report
5 - 8
Consolidated statement of comprehensive income
9
Consolidated balance sheet
10
Company balance sheet
11
Consolidated statement of changes in equity
12
Company statement of changes in equity
13
Consolidated statement of cash flows
14
Consolidated analysis of net debt
15
Notes to the financial statements
16 - 35


 
Discovery Park Estates Ltd
 

Group 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.
The group owns Discovery Park and has appointed Discovery Park Management Limited (DPML) with the managerial duties for Discovery Park. DPML charges the group a fee for these services. 
The group mainly derives income from the lease of laboratories, office space and other demises, the recharge of costs in maintaining the park and facilities, recovery of energy costs. The group also derives income from the sale of land to facilitate new developments at Discovery Park. 
The group 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 of the services required for 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 the best efficiency levels. 
External or specialised contractors are employed when necessary.
To ensure 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 Estates Ltd
 

Group strategic report (continued)
For the year ended 30 November 2023

Principal risks and uncertainties
 
The group 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 group’s risk of operational failure 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 and other, The Board collaborates closely with senior management to tailor services to meet the needs of the group and its tenants, all while closely monitoring risks. 
2. Liquidity
Liquidity risk refers to the potential challenge the group may face in fulfilling its financial obligations when they become due. The group actively aims to prevent this risk. Since the projects it undertakes often require substantial initial cash outflow before yielding returns, the management of cash flow becomes crucial. After evaluating future cash flow needs, the group 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 group, in close collaboration with DPL and 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 space that is not occupied is a challenge and proactively monitored with on-going appropriate actions to manage these obligations.  
 

Financial key performance indicators
 
The group 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.

Corporate social responsibility
 
Our commitment to providing an attractive life sciences business environment at Discovery Park goes beyond our boundaries. We are proud to be part of the Sandwich community and support local causes, community events and STEM (science, technology, engineering and maths) education. Schools to science parks is a key focus for Discovery Park as we look to encourage young people to STEM subjects via our outreach and support for school science programmes.


This report was approved by the board on 29 August 2024 and signed on its behalf.



Mayer Schreiber
Director

Page 2

 
Discovery Park Estates Ltd
 

 
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.

Directors' responsibilities statement

The directors are responsible for preparing the group strategic report, the directors' report and the consolidated 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 the Group and of the profit or loss of the Group for that period.

 In preparing these financial statements, the directors are required to:


select suitable accounting policies for the Group'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 Group 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 the Group 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 the Group 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 Group'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.

Principal activity

The principal activity of the company and its subsidiaries (together "the group") is 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 £8,271,791 (2022 - profit £1,333,609).

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 

Page 3

 
Discovery Park Estates Ltd
 

 
Directors' report (continued)
For the year ended 30 November 2023

Future developments

The group’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 Building 500 and the leasing of laboratories and other demises, operational efficiencies including utilities across the site and improved facilities. The group also continues to look for opportunities to optimise the use of surplus land by either additional development or sale. The group maintains its focus to support the life sciences and healthcare tenants and to attract new ones, and to expand the group’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 and the Group'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 and the Group's auditor is aware of that information.

Post balance sheet events

There have been no significant events affecting the Group since 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 4

 
Discovery Park Estates Ltd
 

 
Independent auditor's report to the members of Discovery Park Estates Ltd
 

Opinion

We have audited the financial statements of Discovery Park Estates Ltd (the 'parent company') and its subsidiaries (the 'Group') for the year ended 30 November 2023, which comprise the consolidated statement of comprehensive income, the Consolidated balance sheet, the Company balance sheet, the Consolidated statement of cash flows, the Consolidated statement of changes in equity, the Company 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 Group's and of the parent company's affairs as at 30 November 2023 and of the Group's 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 Group 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 Group's or the parent 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 Estates Ltd
 

 
Independent auditor's report to the members of Discovery Park Estates Ltd (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 group 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 group 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 Group and the parent company and its environment obtained in the course of the audit, we have not identified material misstatements in the group 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 by the parent company, or returns adequate for our audit have not been received from branches not visited by us; or
the parent company 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 3, 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 Group's and the parent 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 Group or the parent company or to cease operations, or have no realistic alternative but to do so.


Page 6

 
Discovery Park Estates Ltd
 

 
Independent auditor's report to the members of Discovery Park Estates Ltd (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 Group 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 group 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 group 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 Estates Ltd
 

 
Independent auditor's report to the members of Discovery Park Estates Ltd (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.
Obtain sufficient appropriate audit evidence regarding the financial information of the entities or business activities within the Group to express an opinion on the consolidated financial statementsWe are responsible for the direction, supervision and performance of the Group audit. We remain solely responsible for our audit opinion.


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 Estates Ltd
 

Consolidated statement of comprehensive income
For the year ended 30 November 2023

2023
2022
Note
£
£

  

Turnover
 4 
22,158,522
23,131,827

Cost of sales
  
(18,566,181)
(18,464,895)

Gross profit
  
3,592,341
4,666,932

Administrative expenses
  
(1,807,690)
(2,599,799)

Other operating income
 5 
249,249
4,652

Operating profit
 6 
2,033,900
2,071,785

Interest receivable and similar income
 9 
1,568
-

Interest payable and similar expenses
 10 
(2,204,115)
(1,393,044)

(Loss)/profit before taxation
  
(168,647)
678,741

Tax on (loss)/profit
 11 
(8,103,144)
654,868

(Loss)/profit for the financial year
  
(8,271,791)
1,333,609

(Loss)/profit for the year attributable to:
  

Owners of the parent company
  
(8,271,791)
1,333,609

  
(8,271,791)
1,333,609

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

The notes on pages 16 to 35 form part of these financial statements.

Page 9

 
Discovery Park Estates Ltd
Registered number: 10347881

Consolidated balance sheet
As at 30 November 2023

2023
2022
Note
£
£

Fixed assets
  

Negative goodwill
 12 
(4,438,982)
(4,549,731)

Tangible assets
 13 
141,121
184,447

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

  
112,060,101
110,131,947

Current assets
  

Stocks
 16 
17,290,647
17,899,911

Debtors: amounts falling due within one year
 17 
8,395,284
7,621,883

Cash at bank and in hand
  
761,347
1,422,063

  
26,447,278
26,943,857

Creditors: amounts falling due within one year
 19 
(18,898,738)
(19,326,299)

Net current assets
  
 
 
7,548,540
 
 
7,617,558

Total assets less current liabilities
  
119,608,641
117,749,505

Creditors: amounts falling due after more than one year
 20 
(25,147,836)
(23,116,729)

Provisions for liabilities
  

Deferred taxation
 22 
(32,499,326)
(24,399,506)

Net assets
  
61,961,479
70,233,270


Capital and reserves
  

Called up share capital 
 23 
2
2

Other reserves
 24 
61,785,297
69,088,632

Profit and loss account
 24 
176,180
1,144,636

  
61,961,479
70,233,270


The financial statements were approved and authorised for issue by the board and were signed on its behalf by: 




Mayer Schreiber
Director
Date: 29 August 2024

The notes on pages 16 to 35 form part of these financial statements.

Page 10

 
Discovery Park Estates Ltd
Registered number: 10347881

Company balance sheet
As at 30 November 2023

2023
2022
Note
£
£

Fixed assets
  

Investments
 14 
29,394,692
29,394,692

Current assets
  

Debtors: amounts falling due within one year
 17 
3,834,500
3,682,604

Cash at bank and in hand
  
1,130
1,144

  
3,835,630
3,683,748

Creditors: amounts falling due within one year
 19 
(31,795,293)
(31,934,393)

Net current liabilities
  
 
 
(27,959,663)
 
 
(28,250,645)

  

  

Net assets
  
1,435,029
1,144,047


Capital and reserves
  

Called up share capital 
 23 
2
2

Profit and loss account brought forward
  
1,144,045
824,989

Profit for the year

  

290,982
319,056

Profit and loss account carried forward
  
1,435,027
1,144,045

  
1,435,029
1,144,047


The financial statements were approved and authorised for issue by the board and were signed on its behalf by: 




Mayer Schreiber
Director

Date: 29 August 2024

The notes on pages 16 to 35 form part of these financial statements.

Page 11

 
Discovery Park Estates Ltd
 

Consolidated 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
2
69,943,106
(1,043,447)
68,899,661



Profit for the year
-
-
1,333,609
1,333,609

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



At 1 December 2022
2
69,088,632
1,144,636
70,233,270



Loss for the year
-
-
(8,271,791)
(8,271,791)

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


At 30 November 2023
2
61,785,297
176,180
61,961,479


The notes on pages 16 to 35 form part of these financial statements.

Page 12

 
Discovery Park Estates Ltd
 

Company statement of changes in equity
For the year ended 30 November 2023


Called up share capital
Profit and loss account
Total equity

£
£
£


At 1 December 2021
2
824,989
824,991



Profit for the year
-
319,056
319,056



At 1 December 2022
2
1,144,045
1,144,047



Profit for the year
-
290,982
290,982


At 30 November 2023
2
1,435,027
1,435,029


The notes on pages 16 to 35 form part of these financial statements.

Page 13

 
Discovery Park Estates Ltd
 

Consolidated statement of cash flows
For the year ended 30 November 2023

2023
2022
£
£

Cash flows from operating activities

(Loss)/profit for the financial year
(8,271,791)
1,333,609

Adjustments for:

Amortisation of intangible assets
(110,748)
-

Depreciation of tangible assets
42,015
37,730

Loss on disposal of tangible assets
(397)
-

Government grants
(249,249)
(4,652)

Interest paid
2,204,115
1,393,045

Interest received
(1,568)
-

Taxation charge
8,103,144
(654,868)

Decrease/(increase) in stocks
609,264
(65,531)

(Increase)/decrease in debtors
(773,399)
904,661

Increase in creditors
1,877,084
1,334,877

Corporation tax received/(paid)
-
(22,265)

Net cash generated from operating activities

3,428,470
4,256,606


Cash flows from investing activities

Purchase of tangible fixed assets
-
(150,995)

Sale of tangible fixed assets
1,708
-

Purchase of investment properties
(1,860,731)
(4,497,231)

Interest received
1,568
-

HP interest paid
(9,225)
(8,532)

Net cash from investing activities

(1,866,680)
(4,656,758)

Cash flows from financing activities

New secured loans
-
2,500,000

Repayment of/new finance leases
(27,616)
129,457

Interest paid
(2,194,890)
(1,384,513)

Net cash used in financing activities
(2,222,506)
1,244,944

Net (decrease)/increase in cash and cash equivalents
(660,716)
844,792

Cash and cash equivalents at beginning of year
1,422,063
577,271

Cash and cash equivalents at the end of year
761,347
1,422,063


Cash and cash equivalents at the end of year comprise:

Cash at bank and in hand
761,347
1,422,063

761,347
1,422,063


The notes on pages 16 to 35 form part of these financial statements.

Page 14

 
Discovery Park Estates Ltd
 

Consolidated Analysis of Net Debt
For the year ended 30 November 2023





At 1 December 2022
Cash flows
Other non-cash changes
At 30 November 2023
£

£

£

£

Cash at bank and in hand

1,422,063

(660,716)

-

761,347

Debt due after 1 year

(23,000,000)

-

23,000,000

-

Debt due within 1 year

(5,477,166)

-

(23,000,000)

(28,477,166)

Finance leases

(129,457)

27,616

-

(101,841)


(27,184,560)
(633,100)
-
(27,817,660)

The notes on pages 16 to 35 form part of these financial statements.

Page 15

 
Discovery Park Estates Ltd
 

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

1.


General information

Discovery Park Estates Ltd is a private company limited by shares and is incorporated in England with the registration number 10347881.  The address of 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 and its subsidiaries (together "the group") is 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 Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and 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 Group management to exercise judgement in applying the Group's accounting policies (see note 3).

The company has taken advantage of the exemption allowed under section 408 of the Companies Act 2006 and has not presented its own statement of comprehensive income in these financial statements.

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

Basis of consolidation

The consolidated financial statements present the results of the company and its own subsidiaries ("the Group") as if they form a single entity. Intercompany transactions and balances between group companies are therefore eliminated in full.
The consolidated financial statements incorporate the results of business combinations using the purchase method. In the balance sheet, the acquiree's identifiable assets, liabilities and contingent liabilities are initially recognised at their fair values at the acquisition date. The results of acquired operations are included in the consolidated statement of comprehensive income from the date on which control is obtained. They are deconsolidated from the date control ceases.

 
2.3

Going concern

The company has net current liabilities at the reporting date of £27,959,663 (2022 - £28,250,645), principally due to amounts due to fellow Discovery Park Group companies. In order to meet its day to day working capital requirements the company will rely upon support provided by its fellow group companies, as and when the need arises.
At the year end of 30 November 2023, the group holds bank loans which total £23,000,000 and are repayable in full on 31 March 2025.  The going concern of the group is reliant on the continued financing of the loans however the provider has implied that are willing to enter into discussions to extend the term of the facility.
After making enquiries of those group companies, the directors believe that the company and the group will continue to have adequate resources to meet its financial obligations as they fall due for at least 12 months from the date of approval of these financial statements.

Page 16

 
Discovery Park Estates Ltd
 

 
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 Group 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 Group 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 Group 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 consolidated statement of comprehensive income in the same period as the related expenditure.

 
2.7

Interest income

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

Page 17

 
Discovery Park Estates Ltd
 

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

2.Accounting policies (continued)

 
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

Borrowing costs

All borrowing costs are recognised in profit or loss in the year in which they are incurred.

 
2.10

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 and the Group operate and generate 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;
Any deferred tax balances are reversed if and when all conditions for retaining associated tax allowances have been met; and
Where they relate to timing differences in respect of interests in subsidiaries, associates, branches and joint ventures and the Group can control the reversal of the timing differences and such reversal is not considered probable in the foreseeable future.

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 18

 
Discovery Park Estates Ltd
 

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

2.Accounting policies (continued)

  
2.11

Goodwill

Goodwill represents the excess of the cost of a business combination over the total acquisition date fair value of the identifiable assets, liabilities and contingent liabilities acquired. Cost comprises the fair value of assets given, liabilities assumed and equity instruments issued. The group has chosen not to separately identify the fair value of intangible assets acquired upon a business combination.
When a business combination agreement provides for an adjustment to the cost of the combination which is contingent on future events, the company includes the estimated amount of that adjustment in the cost of the combination at the acquisition date if the adjustment is probably and can be measured reliably. However, if the potential adjustment is not recognised at the acquisition date but subsequently becomes probable and can be measured reliably, the additional consideration shall be treated as an adjustment to the cost of the combination. Changes in the estimated value of contingent consideration arising on business combinations completed as a consequence result in a change in the carrying value of the related goodwill.
Goodwill is measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is amortised on a straight line basis to the statement of comprehensive income over its useful economic life.
Goodwill relating to the acquisition of Discovery Park Limited has been amortised over a period of 5 years.
Negative goodwill
Negative goodwill relates to the acquisition of subsidiary undertakings where the consideration payable was less than the fair value of the identifiable net assets of the subsidiary.
The excess is recognised in the statement of comprehensive income over the period in which the company's non-monetary assets are recovered.
Negative goodwill relating to the acquisition of Discovery Park (North) Limited, Discovery Park (West) Limited and Discovery Park (South) Limited will be recognised in the statement of comprehensive income in line with the sale of land, classified as stock, which is held by each company.

Page 19

 
Discovery Park Estates Ltd
 

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

2.Accounting policies (continued)

 
2.12

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 Group 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 Group 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 Group. 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.

Depreciation 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.

 
2.13

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.

  
2.14

Impairment of fixed assets and goodwill

Assets that are subject to depreciation or amortisation are assessed at each balance sheet date to determine whether there is any indication that the assets are impaired. Where there is any indication that an asset may be impaired, the carrying value of the asset (or cash-generating unit to which the asset has been allocated) is tested for impairment. An impairment loss is recognised for the amount by which the asset's carrying amount exceeds its recoverable amount. The recoverable amount is the higher of an asset's (or CGU's) fair value less costs to sell and value in use. For the purposes of assessing impairment, assets are grouped at the lowest levels for which there are separately identifiable cash flows (CGUs). Non-financial assets that have been previously impaired are reviewed at each balance sheet date to assess whether there is any indication that the impairment losses recognised in prior periods may no longer exist or may have decreased.

 
2.15

Valuation of investments

Investments in subsidiaries are measured at cost less accumulated impairment.

Page 20

 
Discovery Park Estates Ltd
 

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

2.Accounting policies (continued)

 
2.16

Stocks

Stocks are stated at the lower of cost and net realisable value, being the estimated selling price less costs to complete and sell. Cost is based on the cost of purchase on a first in, first out basis.

At each balance sheet date, stocks are assessed for impairment. If stock is impaired, the carrying amount is reduced to its selling price less costs to complete and sell. The impairment loss is recognised immediately in profit or loss.

 
2.17

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.

 
2.18

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.

In the consolidated statement of cash flows, cash and cash equivalents are shown net of bank overdrafts that are repayable on demand and form an integral part of the Group's cash management.

 
2.19

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.

 
2.20

Provisions for liabilities

Provisions are recognised when an event has taken place that gives rise to a legal or constructive obligation, a transfer of economic benefits is probable and a reliable estimate can be made.
Provisions are measured as the best estimate of the amount required to settle the obligation, taking into account the related risks and uncertainties.
 
Increases in provisions are generally charged as an expense to profit or loss.

Page 21

 
Discovery Park Estates Ltd
 

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

2.Accounting policies (continued)

 
2.21

Financial instruments

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

The Group 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 Group's balance sheet when the Group 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 Group's cash and cash equivalents, trade and most other receivables due with the operating cycle fall into this category of financial instruments.

Impairment of financial assets

Financial assets are assessed for indicators of impairment at each reporting date. 

Financial assets are impaired when events, subsequent to their initial recognition, indicate the estimated future cash flows derived from the financial asset(s) have been adversely impacted. The impairment loss will be the difference between the current carrying amount and the present value of the future cash flows at the asset(s) original effective interest rate.

If there is a favourable change in relation to the events surrounding the impairment loss then the impairment can be reviewed for possible reversal. The reversal will not cause the current carrying amount to exceed the original carrying amount had the impairment not been recognised. The impairment reversal is recognised in the profit or loss.

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 Group after the deduction of all its liabilities.

Basic financial liabilities, which include trade and other payables, bank loans, other loans and loans due to fellow group companies 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 22

 
Discovery Park Estates Ltd
 

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

2.Accounting policies (continued)


2.21
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 Group 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 Group 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 Group's contractual obligations expire or are discharged or cancelled.

Page 23

 
Discovery Park Estates Ltd
 

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

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 group 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 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. 
The latest external valuation was obtained for the freehold investment property held by Discovery Park Limited as at 1 January 2022. Since this date, there have been improvements totalling £6,357,962.
Negative goodwill
The group has recognised negative goodwill arising from business combinations with a carrying value of £4,438,982 (2022 - £4,549,731) at the reporting date (see note 12). The directors have reassessed the identification and measurement of the assets, liabilities and provision for contingent liabilities acquired and the measurement of the cost of the business combination. 
The excess will be recognised in the statement of comprehensive income in line with the sale of land, classified as stock, which is held by the companies acquired. In the opinion of the directors, this is the period in which the company's non-monetary assets will be recovered.
Taxation
Provision has been made in the financial statements for deferred tax amounting to £32,499,327 (2022 -  £24,399,506) at the reporting date (see note 22). 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 24

 
Discovery Park Estates Ltd
 

 
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
8,106,245
6,749,101

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

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

Land sales income
1,200,000
-

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

22,158,522
23,131,827


All turnover arose within the United Kingdom.


5.


Other operating income

2023
2022
£
£

Government grants receivable
249,249
4,652



6.


Operating profit

The operating profit is stated after charging:

2023
2022
£
£

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

Depreciation of tangible fixed assets
42,015
37,730

Amortisation of intangible assets, including goodwill
(110,748)
-


7.


Auditor's remuneration

During the year, the Group obtained the following services from the company's auditor:


2023
2022
£
£

Fees payable to the company's auditor for the audit of the consolidated and parent company's financial statements
32,850
29,020

Page 25

 
Discovery Park Estates Ltd
 

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

8.


Employees





The average monthly number of employees, including the directors, during the year was as follows:



Group
Group
Company
Company
        2023
        2022
        2023
        2022
            No.
            No.
            No.
            No.









Directors
4
4
4
4


9.


Interest receivable

2023
2022
£
£


Other interest receivable
1,568
-


10.


Interest payable and similar expenses

2023
2022
£
£


Bank interest payable
1,931,036
1,174,613

Other loan interest payable
263,692
209,899

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

Other interest payable
162
-

2,204,115
1,393,044

Page 26

 
Discovery Park Estates Ltd
 

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

11.


Taxation


2023
2022
£
£

Corporation tax


Adjustments in respect of previous periods
3,324
(133,732)


3,324
(133,732)


Total current tax
3,324
(133,732)

Deferred tax


Origination and reversal of timing differences
8,099,820
(521,136)

Total deferred tax
8,099,820
(521,136)


Taxation on profit/(loss) on ordinary activities
8,103,144
(654,868)

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
£
£


(Loss)/profit on ordinary activities before tax
(168,647)
678,742


Profit on ordinary activities multiplied by standard rate of corporation tax in the UK of 25% (2022 - 19%)
-
128,961

Effects of:


Capital allowances for year in excess of depreciation
-
(336,505)

Adjustments to tax charge in respect of prior periods
3,324
(133,732)

Other timing differences leading to an increase (decrease) in taxation
8,099,820
(480,412)

Unrelieved tax losses carried forward
-
167,614

Other differences leading to an increase (decrease) in the tax charge
-
(794)

Total tax charge for the year
8,103,144
(654,868)

The other timing differences leading to an increase in taxation of £8,099,820 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 27

 
Discovery Park Estates Ltd
 

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

12.


Goodwill

Group





Goodwill
Negative goodwill
Total

£
£
£



Cost


At 1 December 2022
842,482
(7,292,599)
(6,450,117)



At 30 November 2023

842,482
(7,292,599)
(6,450,117)



Amortisation


At 1 December 2022
842,482
(2,742,869)
(1,900,387)


Charge for the year on owned assets
-
(110,748)
(110,748)



At 30 November 2023

842,482
(2,853,617)
(2,011,135)



Net book value



At 30 November 2023
-
(4,438,982)
(4,438,982)



At 30 November 2022
-
(4,549,730)
(4,549,730)



Page 28

 
Discovery Park Estates Ltd
 

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

13.


Tangible fixed assets

Group






Plant and machinery
Motor vehicles
Fixtures, fittings and equipment
Total

£
£
£
£



Cost


At 1 December 2022
291,838
32,048
24,484
348,370


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



At 30 November 2023

291,278
14,452
21,174
326,904



Depreciation


At 1 December 2022
126,550
19,306
18,067
163,923


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

163,624
5,810
16,349
185,783



Net book value



At 30 November 2023
127,654
8,642
4,825
141,121



At 30 November 2022
165,288
12,742
6,417
184,447

Page 29

 
Discovery Park Estates Ltd
 

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

14.


Fixed asset investments

Company





Investments in subsidiary companies

£



Cost


At 1 December 2022
29,394,692



At 30 November 2023
29,394,692





Direct subsidiary undertakings


The following were direct subsidiary undertakings of the company:

Name

Class of shares

Holding

Discovery Park Limited
Ordinary
100%
Discovery Park (North) Limited
Ordinary
100%
Discovery Park (South) Limited
Ordinary
100%
Discovery Park (West) Limited
Ordinary
100%


Indirect subsidiary undertakings


The following were indirect 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.

Page 30

 
Discovery Park Estates Ltd
 

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

15.


Investment property

Group


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 groups freehold investment property was last independently valued on 1 January 2022 by Emma Grahame MRICS of Jones Lang LaSalle Limited, whoch as 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.







16.


Stocks

Group
Group
2023
2022
£
£

Development land
17,290,647
17,899,911



17.


Debtors

Group
Group
Company
Company
2023
2022
2023
2022
£
£
£
£


Trade debtors
1,023,895
505,131
-
-

Amounts owed by group undertakings
-
-
3,825,936
3,682,121

Other debtors
4,033,405
4,133,180
8,564
483

Prepayments and accrued income
3,337,984
2,983,572
-
-

8,395,284
7,621,883
3,834,500
3,682,604


Page 31

 
Discovery Park Estates Ltd
 

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

18.


Cash and cash equivalents

Group
Group
Company
Company
2023
2022
2023
2022
£
£
£
£

Cash at bank and in hand
761,347
1,422,063
1,130
1,144



19.


Creditors: Amounts falling due within one year

Group
Group
Company
Company
2023
2022
2023
2022
£
£
£
£

Trade creditors
1,110,578
1,002,650
630
4,374

Amounts owed to group undertakings
-
-
25,730,231
25,874,029

Other taxation and social security
538,427
543,771
15,296
11,333

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

Other creditors
14,323,172
11,347,268
6,012,111
6,012,112

Accruals and deferred income
2,896,878
6,404,994
37,025
32,545

18,898,738
19,326,299
31,795,293
31,934,393



20.


Creditors: Amounts falling due after more than one year

Group
Group
2023
2022
£
£

Bank loans
23,000,000
23,000,000

Net obligations under finance leases and hire purchase contracts
72,158
101,841

Government grants received
2,075,678
14,888

25,147,836
23,116,729


At the year end of 30 November 2023, the group held bank loans of £15,500,000, £5,000,000 and £2,500,000 from British Arab Commercial Bank PLC, upon which interest is accruing and paid quarterly. The loans are repayable in full on 31 March 2025.
These loans are secured in favour of British Arab Commercial Bank PLC by way of a debenture including fixed and floating charges against the freehold investment property held by the Discovery Park Limited, a subsidiary undertaking of the Discovery Park Group.



Page 32

 
Discovery Park Estates Ltd
 

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

21.


Hire purchase and finance leases


Minimum lease payments under hire purchase fall due as follows:

Group
Group
2023
2022
£
£

Within one year
29,683
27,616

Between 1-5 years
72,158
101,841

101,841
129,457


22.


Deferred taxation


Group



2023


£






At beginning of year
(24,399,507)


Charged to profit or loss
(8,099,820)



At end of year
(32,499,327)







The provision for deferred taxation is made up as follows:

Group
Group
2023
2022
£
£

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

Stock held at fair value following business combinations
(3,516,790)
(2,716,956)

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

(32,499,327)
(24,399,506)


23.


Share capital

2023
2022
£
£
Allotted, called up and fully paid



2 (2022 - 2) Ordinary shares of £1.00 each
2
2


Page 33

 
Discovery Park Estates Ltd
 

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

24.


Reserves

Other reserves

This reserve represents changes in the fair value of the group's investment properties, to the extent that they are not considered to be distributable to the group'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 group’s shareholders.


25.


Contingent liabilities

The group pays business rates on its unoccupied commercial space that is broadly available to be let.   The group is disputing various business rates demands issued by the local district council to the group  on commercial space where lease arrangements are in place.  The group considers it is not liable for the associated business rates liability and the dispute is being handled by the group’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 group considers that no liability should arise and remains uncertain.


26.


Commitments under operating leases

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


Group
Group
2023
2022
£
£

Not later than 1 year
4,308
-

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

6,103
-
Page 34

 
Discovery Park Estates Ltd
 

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

27.


Related party transactions

The group is exempt from disclosing related party transactions between companies that are wholly owned within the group.
The group entered into the following related party transactions during the year:


2023
2022
£
£

Purchases from entities controlled by the directors or their close family members
10,581,570
4,405,888
Sales to entities controlled by the directors or their close family members
692,010
139,000
Amounts due from entities controlled by the directors or their close family members
4,025,450
3,834,655
Amounts owed to entities controlled by the directors or their close family members
8,618,992
5,391,440
23,918,022
13,770,983

Amounts due from entities controlled by the directors or their close family members are unsecured, interest free and are repayable on demand.
Amounts owed to entities controlled by the directors or their close family members are unsecured, have no fixed date of repayment and are repayable on demand.
At the reporting date, loans of £5,477,166 (2022 - £5,477,166) were due to the company directors. These loans are unsecured, carry no interest and are repayable on demand.


28.


Controlling party

The directors consider that the group has no ultimate controlling party.


Page 35