Company registration number 03827300 (England and Wales)
LA UK INVESTMENTS LIMITED
FINANCIAL STATEMENTS
FOR THE YEAR ENDED 28 FEBRUARY 2024
PAGES FOR FILING WITH REGISTRAR
LA UK INVESTMENTS LIMITED
CONTENTS
Page
Balance sheet
1
Statement of changes in equity
2
Notes to the financial statements
3 - 10
LA UK INVESTMENTS LIMITED
BALANCE SHEET
AS AT
28 FEBRUARY 2024
28 February 2024
- 1 -
2024
2023
Notes
£
£
£
£
Fixed assets
Tangible assets
6
440
2,298,510
Investment property
7
32,882,532
27,361,949
Investments
8
130,587
122,673
33,013,559
29,783,132
Current assets
Debtors
9
2,166,916
2,074,355
Cash at bank and in hand
665,219
856,091
2,832,135
2,930,446
Creditors: amounts falling due within one year
10
(384,344)
(435,028)
Net current assets
2,447,791
2,495,418
Total assets less current liabilities
35,461,350
32,278,550
Creditors: amounts falling due after more than one year
11
(27,321,192)
(27,338,179)
Provisions for liabilities
(3,133,724)
(2,625,527)
Net assets
5,006,434
2,314,844
Capital and reserves
Called up share capital
4,600,001
4,600,001
Revaluation reserve
10,946,740
8,184,794
Profit and loss reserves
(10,540,307)
(10,469,951)
Total equity
5,006,434
2,314,844
The directors of the company have elected not to include a copy of the profit and loss account within the financial statements.true
These financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime.
The financial statements were approved by the board of directors and authorised for issue on 18 July 2024 and are signed on its behalf by:
A. K. Peer
Director
Company registration number 03827300 (England and Wales)
LA UK INVESTMENTS LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 28 FEBRUARY 2024
- 2 -
Share capital
Revaluation reserve
Profit and loss reserves
Total
£
£
£
£
Balance at 1 March 2022
4,600,001
8,494,951
(10,252,463)
2,842,489
Year ended 28 February 2023:
Loss
-
-
(217,488)
(217,488)
Other comprehensive income:
Tax relating to other comprehensive income
-
103,385
103,385
Total comprehensive income
-
103,385
(217,488)
(114,103)
Other movements
-
(413,542)
-
(413,542)
Balance at 28 February 2023
4,600,001
8,184,794
(10,469,951)
2,314,844
Year ended 28 February 2024:
Profit and total comprehensive income
-
-
2,691,590
2,691,590
Other movements
-
2,761,946
(2,761,946)
-
Balance at 28 February 2024
4,600,001
10,946,740
(10,540,307)
5,006,434
LA UK INVESTMENTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 28 FEBRUARY 2024
- 3 -
1
Accounting policies
Company information
LA UK Investments Limited is a private company limited by shares incorporated in England and Wales. The registered office is Third Floor, 55 Blandford Street, London, W1U 7HW.
1.1
Accounting convention
These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006 as applicable to companies subject to the small companies regime. The disclosure requirements of section 1A of FRS 102 have been applied other than where additional disclosure is required to show a true and fair view.
The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.
The financial statements have been prepared under the historical cost convention, modified to include the revaluation of certain assets. The principal accounting policies adopted are set out below.
1.2
Going concern
The Company's operations are dependent on the on-going support of its parent company, LA Group Proprietary Limited. true
The financial statements have been prepared on a going concern basis as the Company has received assurances from its parent company that it will not request repayment of the intercompany loans for at least twelve months and one day following the date of approval of the financial statements and it will continue to provide sufficient funds to enable the Company to meet its debts as they fall due.
1.3
Turnover
Turnover is recognised at the fair value of the consideration received or receivable for services provided, excluding discounts, rebates, VAT and other sales related taxes.
1.4
Intangible fixed assets - goodwill
Goodwill represents the excess of the cost of a business combination over the fair value of net assets acquired. It is initially recognised as an asset at cost and is subsequently measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is considered to have a finite useful life and was amortised on a straight line basis over its useful economic life of 7 years.
1.5
Tangible fixed assets
Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.
Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:
Leasehold land and buildings
over a period of 50 years
Fixtures and fittings
over four years
Computers
over four years
The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is credited or charged to profit or loss.
LA UK INVESTMENTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 28 FEBRUARY 2024
1
Accounting policies
(Continued)
- 4 -
1.6
Investment property
Investment property, which is property held to earn rentals and/or for capital appreciation, is initially recognised at cost, which includes the purchase cost and any directly attributable expenditure. Subsequently it is normally measured at fair value at the reporting end date determined annually by external valuers and derived from the current market rents and investment property yields for comparable real estate, adjusted if necessary for any difference the nature, location or condition of the specific asset. No depreciation is provided. Changes in fair value are recognised in the Statement of Comprehensive Income.
1.7
Fixed asset investments
Investments are initially measured at transaction price excluding transaction costs, and are subsequently measured at fair value at each reporting date. Changes in fair value are recognised in profit or loss. Transaction costs are expensed to profit or loss as incurred.
1.8
Cash and cash equivalents
Cash and cash equivalents are basic financial assets and include cash in hand.
1.9
Financial instruments
The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the company's balance sheet when the company becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
Basic financial assets
Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price.
Classification of financial liabilities
Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.
Basic financial liabilities
Basic financial liabilities, including creditors and loans from fellow group companies, are initially recognised at transaction price.
1.10
Equity instruments
Equity instruments issued by the company are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.
1.11
Taxation
The tax expense represents the sum of the tax currently payable and deferred tax.
LA UK INVESTMENTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 28 FEBRUARY 2024
1
Accounting policies
(Continued)
- 5 -
Current tax
The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.
Deferred tax
Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.
The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset when the company has a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.
1.12
Employee benefits
The costs of short-term employee benefits are recognised as a liability and an expense.
Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.
1.13
Retirement benefits
The Company operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the Company pays fixed contributions into a separate entity. Once the contributions have been paid the Company has no further payment obligations.
The contributions are recognised as an expense in the Statement of Comprehensive Income when they fall due. Amounts not paid are shown in accruals as a liability in the Statement of Financial Position. The assets of the plan are held separately from the Company in independently administered funds.
2
Judgements and key sources of estimation uncertainty
In the application of the company’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.
LA UK INVESTMENTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 28 FEBRUARY 2024
- 6 -
3
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2024
2023
Number
Number
Total
4
4
Taxation
2024
2023
£
£
Current tax
UK corporation tax on profits for the current period
8,764
Deferred tax
Origination and reversal of timing differences
508,197
Total tax charge
516,961
In addition to the amount charged to the profit and loss account, the following amounts relating to tax have been recognised directly in other comprehensive income:
2024
2023
£
£
Deferred tax arising on:
Revaluation of property
-
(103,385)
5
Intangible fixed assets
Goodwill
£
Cost
At 1 March 2023 and 28 February 2024
250,000
Amortisation and impairment
At 1 March 2023 and 28 February 2024
250,000
Carrying amount
At 28 February 2024
At 28 February 2023
LA UK INVESTMENTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 28 FEBRUARY 2024
- 7 -
6
Tangible fixed assets
Land and buildings
Plant and machinery etc
Total
£
£
£
Cost
At 1 March 2023
2,630,312
103,008
2,733,320
Transfers
(2,630,312)
(2,630,312)
At 28 February 2024
103,008
103,008
Depreciation and impairment
At 1 March 2023
332,388
102,422
434,810
Depreciation charged in the year
47,484
146
47,630
Transfers
(379,872)
(379,872)
At 28 February 2024
102,568
102,568
Carrying amount
At 28 February 2024
440
440
At 28 February 2023
2,297,924
586
2,298,510
7
Investment property
2024
£
Fair value
At 1 March 2023
27,361,949
Transfers
2,250,440
Revaluations
3,270,143
At 28 February 2024
32,882,532
Investment property comprises:
102 North End Road, London - purchased in March 2014. Cost £733k. Additions £550k. Value £2,700k.
Cornwallis House, Maidstone - purchased in March 2015. Cost £1,330k. Additions £3,148k. Value £9,512k
29 Springfield House, Chelmsford - purchased in June 2016. Cost £1,149k. Additions £197k. Value £1,670k.
5-7 Dover Street, London - purchased in April 2020. Cost £9,261k. Additions £185k. Value £13,500k.
Transfers:
Griffin House Hotel, London - purchased in January 2008, Cost £2,630k, Net book value £2,250k, transferred to Investment properties from tangible fixed assets and revalued at £5,500k at the year end.
The investment properties were valued on an open market basis by the directors.
LA UK INVESTMENTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 28 FEBRUARY 2024
- 8 -
8
Fixed asset investments
2024
2023
£
£
Other investments other than loans
130,587
122,673
Movements in fixed asset investments
Investments
£
Cost or valuation
At 1 March 2023
122,673
Valuation changes
7,914
At 28 February 2024
130,587
Carrying amount
At 28 February 2024
130,587
At 28 February 2023
122,673
9
Debtors
2024
2023
Amounts falling due within one year:
£
£
Trade debtors
73,619
161,873
Amounts owed by group undertakings
1,954,306
1,878,942
Other debtors
133,991
28,540
2,161,916
2,069,355
2024
2023
Amounts falling due after more than one year:
£
£
Other debtors
5,000
5,000
Total debtors
2,166,916
2,074,355
LA UK INVESTMENTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 28 FEBRUARY 2024
- 9 -
10
Creditors: amounts falling due within one year
2024
2023
£
£
Bank loans
56,035
115,788
Trade creditors
61,975
80,891
Corporation tax
9,646
882
Other taxation and social security
22,046
73,363
Other creditors
234,642
164,104
384,344
435,028
The bank loan is secured by fixed and floating charges over the leasehold property located at 5-7 Dover Street, which is included in investment properties. In addition, there is an assignment of rental income from this property and other specified properties to the lender.
11
Creditors: amounts falling due after more than one year
2024
2023
£
£
Bank loans and overdrafts
4,463,473
4,480,461
Other creditors
22,857,719
22,857,718
27,321,192
27,338,179
The bank loan is secured by fixed and floating charges over the leasehold property located at 5-7 Dover Street, which is included in investment properties. In addition, there is an assignment of rental income from this property and other specified properties to the lender.
12
Audit report information
As the income statement has been omitted from the filing copy of the financial statements, the following information in relation to the audit report on the statutory financial statements is provided in accordance with s444(5B) of the Companies Act 2006:
The auditor's report was unqualified.
Senior Statutory Auditor:
Asif Hassan
Statutory Auditor:
Taylor Associates
Date of audit report:
18 July 2024
13
Related party transactions
The following amounts were outstanding at the reporting end date:
2024
2023
Amounts due to related parties
£
£
Amounts owed to LA Group Proprietary Limited
22,857,718
22,857,718
The loan is interest free and repayable on demand but not before 31 July 2025.
LA UK INVESTMENTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 28 FEBRUARY 2024
13
Related party transactions
(Continued)
- 10 -
The following amounts were outstanding at the reporting end date:
2024
2023
Amounts due from related parties
£
£
Amounts owed from South Sahara African Trading DMC
1,954,306
1,878,942
Other related parties
86,416
4,322
At the year end 28 February 2024, the company was owed a balance of £1,954,306 (2023 - £1,878,942) from South Sahara African Trading, a connected company. The loan carry an interest rate of 4% per annum and payable on demand.
Additionally, a sum of £86,416 (2023 - £4,322) was owed from an entity with a common director.
14
Parent company
The company is a wholly owned subsidiary of LA Group Proprietary Limited, a company incorporated in South Africa. The ultimate parent is Robben Island Management Services Proprietary Limited, a company incorporated in South Africa, the shares of which are held by the A F Peer Family Trust.
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