Company registration number 04112983 (England and Wales)
DAUGHTER INVESTMENTS LIMITED
ANNUAL REPORT AND UNAUDITED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
PAGES FOR FILING WITH REGISTRAR
DAUGHTER INVESTMENTS LIMITED
CONTENTS
Page
Directors' report
1
Balance sheet
2
Notes to the financial statements
3 - 5
DAUGHTER INVESTMENTS LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 1 -

The directors present their annual report and financial statements for the year ended 31 December 2023.

Principal activities

The principal activity of the company continued to be that of a holding company.

Directors

The directors who held office during the year and up to the date of signature of the financial statements were as follows:

A Medd
R Saville
M Waites
M Wall
M Clark
Small companies exemption

This report has been prepared in accordance with the provisions applicable to companies entitled to the small companies exemption.

On behalf of the board
M Clark
Director
3 September 2024
DAUGHTER INVESTMENTS LIMITED
BALANCE SHEET
AS AT
31 DECEMBER 2023
31 December 2023
- 2 -
2023
2022
Notes
£
£
£
£
Fixed assets
Investments
2
300,000
300,000
Non-current assets
Debtors: amounts falling due after more than one year
3
170,121
141,757
Creditors: amounts falling due within one year
4
(5,465)
(1,767)
Net current liabilities
(5,465)
(1,767)
Total assets less current liabilities
464,656
439,990
Creditors: amounts falling due after more than one year
5
(402,186)
(400,819)
Net assets
62,470
39,171
Capital and reserves
Called up share capital
10
10
Profit and loss reserves
62,460
39,161
Total equity
62,470
39,171

The directors of the company have elected not to include a copy of the profit and loss account within the financial statements.true

For the financial year ended 31 December 2023 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.

The directors acknowledge their responsibilities for complying with the requirements of the Companies Act 2006 with respect to accounting records and the preparation of financial statements.

The members have not required the company to obtain an audit of its financial statements for the year in question in accordance with section 476.

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 3 September 2024 and are signed on its behalf by:
M Clark
Director
Company Registration No. 04112983
DAUGHTER INVESTMENTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
- 3 -
1
Accounting policies
Company information

Daughter Investments Limited is a private company limited by shares incorporated in England and Wales. The registered office is Biscuit Building, 10 Redchurch Street, London, E2 7DD.

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 £.

1.2
Fixed asset investments

Interests in subsidiaries, associates and jointly controlled entities are initially measured at cost and subsequently measured at cost less any accumulated impairment losses. The investments are assessed for impairment at each reporting date and any impairment losses or reversals of impairment losses are recognised immediately in profit or loss.

1.3
Financial instruments

The company has issued an unsecure convertible loan in 2020. This derivative is measured at fair value at each reporting date. The movements in fair value are recognised through the profit and loss. The upper and lower thresholds of the loan receivable are known from the terms of the contract. The fair value of the receivable is then determined by looking at the probability of the events that give either the upper or lower thresholds and which is currently deemed to be the most probable outcome as at the year end (see note 3 below).

1.4
Taxation

The tax expense represents the sum of the tax currently payable and deferred tax.

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.

DAUGHTER INVESTMENTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 4 -
2
Fixed asset investments
2023
2022
£
£
Shares in group undertakings and participating interests
300,000
300,000
3
Debtors
2023
2022
Amounts falling due after more than one year:
£
£
Long term receivable
170,121
141,757
In 2020, the company issued funds in the form of a convertible loan note to a related party. This has been classified as a non - basic financial instrument and is being accounted for as fair value through the profit and loss. The principal amount issued was £93,000 and accrues interest at 8% per annum. Under the terms of the loan agreement, the maturity date was 3 years from the date of issue, however during the year, this was extended to 4 years. Adjustments have been made to recalculate the fair value and these adjustments have been included in the current year.

After 4 years, the loan will be converted into the most senior class of shares at a 30% discount on the market value of the shares. The conversion to equity may also happen earlier than this date if one of the following events occur; qualified financing, non-qualified and upon an exit event. If none of these events occur, 30 days before the maturity date, the majority of the lenders consortium can request to be repaid in cash at a 100% premium on the principal loan amount.

As at the year end, the most probable outcome of this transaction is that the loan will be converted to equity. The fair value at the reporting date is a carrying amount of £170,121 (2022: £141,757).
4
Creditors: amounts falling due within one year
2023
2022
£
£
Corporation tax
5,465
1,767
5
Creditors: amounts falling due after more than one year
2023
2022
£
£
Amounts owed to related parties
402,186
400,819
6
Related party transactions
Balances with related parties

The following amounts were outstanding at the reporting end date:

DAUGHTER INVESTMENTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
6
Related party transactions
(Continued)
- 5 -
Amounts owed by
Amounts owed to
related parties
related parties
2023
2022
2023
2022
£
£
£
£
Mother Family Limited
-
0
-
0
402,186
400,819
7
Parent company

There is no ultimate parent company. R Saville is the ultimate controlling party.

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