Company registration number 13415049 (England and Wales)
PADLOCK HUNTINGDON LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
PADLOCK HUNTINGDON LIMITED
CONTENTS
Page
Statement of financial position
1 - 2
Statement of changes in equity
3
Statement of cash flows
4
Notes to the financial statements
5 - 13
PADLOCK HUNTINGDON LIMITED
STATEMENT OF FINANCIAL POSITION
AS AT
31 DECEMBER 2023
31 December 2023
- 1 -
2023
2022
Notes
£
£
Non-current assets
Investment property
7
7,290,000
6,660,000
Current assets
Inventories
8
2,504
2,343
Trade and other receivables
9
119,869
118,792
Cash and cash equivalents
60,707
107,343
183,080
228,478
Current liabilities
Trade and other payables
11
5,328,465
5,585,533
Deferred revenue
13
10,292
46,312
5,338,757
5,631,845
Net current liabilities
(5,155,677)
(5,403,367)
Non-current liabilities
Deferred tax liabilities
12
380,530
228,929
Net assets
1,753,793
1,027,704
Equity
Called up share capital
14
2
2
Revaluation reserve
16
1,141,592
686,789
Retained earnings
612,199
340,913
Total equity
1,753,793
1,027,704
The directors of the company have elected not to include a copy of the income statement within the financial statements.
For the period 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 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 4 September 2024 and are signed on its behalf by:
PADLOCK HUNTINGDON LIMITED
STATEMENT OF FINANCIAL POSITION (CONTINUED)
AS AT
31 DECEMBER 2023
31 December 2023
- 2 -
I Muniandy
Director
Company Registration No. 13415049
PADLOCK HUNTINGDON LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2023
- 3 -
Share capital
Revaluation reserve
Retained earnings
Total
£
£
£
£
Balance at 1 January 2022
2
95,963
95,965
Year ended 31 December 2022:
Profit and total comprehensive income for the year
-
-
931,739
931,739
Transactions with owners in their capacity as owners:
Transfer to revaluation reserve
-
686,789
(686,789)
-
Balance at 31 December 2022
2
686,789
340,913
1,027,704
Year ended 31 December 2023:
Profit and total comprehensive income for the year
-
-
726,089
726,089
Transactions with owners in their capacity as owners:
Transfer to revaluation reserve
-
454,803
(454,803)
-
Balance at 31 December 2023
2
1,141,592
612,199
1,753,793
PADLOCK HUNTINGDON LIMITED
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2023
- 4 -
2023
2022
Notes
£
£
£
£
Cash flows from operating activities
Cash (absorbed by)/generated from operations
19
(23,040)
242,263
Net cash (outflow)/inflow from operating activities
(23,040)
242,263
Investing activities
Additional capital expenditure to investment property
(23,596)
(75,229)
Net cash used in investing activities
(23,596)
(75,229)
Financing activities
Repayment of interco loans
(424,071)
Net cash used in financing activities
-
(424,071)
Net decrease in cash and cash equivalents
(46,636)
(257,037)
Cash and cash equivalents at beginning of year
107,343
364,380
Cash and cash equivalents at end of year
60,707
107,343
PADLOCK HUNTINGDON LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
- 5 -
1
Accounting policies
Company information
Padlock Huntingdon Limited is a private company limited by shares incorporated in England and Wales. The registered office is C/O Uk Storage Consultancy Limited, Wework 184 Shepherds Bush Road, London, W6 7NL. The company's principal activities and nature of its operations are disclosed in the directors' report.
1.1
Accounting convention
The financial statements have been prepared in accordance with International Financial Reporting Standards (IFRS) as adopted for use in the United Kingdom and with those parts of the Companies Act 2006 applicable to companies reporting under IFRS, except as otherwise stated.
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, except for the revaluation of investment property. The principal accounting policies adopted are set out below.
The company has taken advantage of the exemption under section 400 of the Companies Act 2006 not to prepare consolidated accounts. The financial statements present information about the company as an individual entity and not about its group.
Padlock Huntingdon Limited is a wholly owned subsidiary of Padlock UK Bidco 5 and the results of Padlock Huntingdon Limited are included in the consolidated financial statements of Padlock Partners UK Fund II which are available online from Sedar.com.
1.2
Going concern
The directors have at the time of approving the financial statements, a reasonable expectation that the truecompany has adequate resources to continue in operational existence for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.
1.3
Revenue
Revenue represents amounts derived from the provision of services which fall within the Company's ordinary activities after deduction of any discounts and any applicable value added tax.
The company recognises revenue from the following major sources:
Rental income
Insurance income
Packing material income
The nature, timing of satisfaction of performance obligations and significant payment terms of the company's major sources of revenue are as follows:
Rental income
Rental income is recognised over the period for which the storage room is occupied by the customer on a straight-line basis. Any opening offer discounts are spread evenly over the term of the discounted period.
Insurance income
Insurance income is recognised on a straight line basis over the period a customer occupies their room.
Packing material income
Packing material sales are recognised at the point of sales as there is no further ongoing performance obligation beyond the point of sale.
PADLOCK HUNTINGDON LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 6 -
1.4
Investment properties
Investment property, which is property held to earn rentals and/or for capital appreciation, is initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses. The surplus or deficit on revaluation is recognised in profit or loss.
1.5
Impairment of tangible and intangible assets
At each reporting end date, the company reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.
Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.
If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.
Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.
PADLOCK HUNTINGDON LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 7 -
1.6
Inventories
Inventories are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the inventories to their present location and condition.
Inventories held for distribution at no or nominal consideration are measured at the lower of cost and replacement cost, adjusted where applicable for any loss of service potential.
Net realisable value is the estimated selling price less all estimated costs of completion and costs to be incurred in marketing, selling and distribution.
1.7
Cash and cash equivalents
Cash and cash equivalents include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.
1.8
Financial assets
Financial assets are recognised in the company's statement of financial position when the company becomes party to the contractual provisions of the instrument. Financial assets are classified into specified categories, depending on the nature and purpose of the financial assets.
At initial recognition, financial assets classified as fair value through profit and loss are measured at fair value and any transaction costs are recognised in profit or loss. Financial assets not classified as fair value through profit and loss are initially measured at fair value plus transaction costs.
Financial assets at fair value through profit or loss
When any of the above-mentioned conditions for classification of financial assets is not met, a financial asset is classified as measured at fair value through profit or loss. Financial assets measured at fair value through profit or loss are recognized initially at fair value and any transaction costs are recognised in profit or loss when incurred. A gain or loss on a financial asset measured at fair value through profit or loss is recognised in profit or loss, and is included within finance income or finance costs in the statement of income for the reporting period in which it arises.
Financial assets held at amortised cost
Financial instruments are classified as financial assets measured at amortised cost where the objective is to hold these assets in order to collect contractual cash flows, and the contractual cash flows are solely payments of principal and interest. They arise principally from the provision of goods and services to customers (eg trade receivables). They are initially recognised at fair value plus transaction costs directly attributable to their acquisition or issue, and are subsequently carried at amortised cost using the effective interest rate method, less provision for impairment where necessary.
Impairment of financial assets
Financial assets carried at amortised cost and FVOCI are assessed for indicators of impairment at each reporting end date.
The expected credit losses associated with these assets are estimated on a forward-looking basis. A broad range of information is considered when assessing credit risk and measuring expected credit losses, including past events, current conditions, and reasonable and supportable forecasts that affect the expected collectability of the future cash flows of the instrument.
Derecognition of financial assets
Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire, or when it transfers the financial asset and substantially all the risks and rewards of ownership to another entity.
PADLOCK HUNTINGDON LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 8 -
1.9
Financial liabilities
The company recognises financial debt when the company becomes a party to the contractual provisions of the instruments. Financial liabilities are classified as either 'financial liabilities at fair value through profit or loss' or 'other financial liabilities'.
Financial liabilities at fair value through profit or loss
Financial liabilities are classified as measured at fair value through profit or loss when the financial liability is held for trading. A financial liability is classified as held for trading if:
it has been incurred principally for the purpose of repurchasing it in the near term, or
on initial recognition it is part of a portfolio of identified financial instruments that the manages together and has a recent actual pattern of short-term profit taking, or
it is a derivative that is not designated and effective hedging instrument.
Financial liabilities at fair value through profit or loss are stated at fair value with any gains or losses arising on remeasurement recognised in profit or loss.
Other financial liabilities
Other financial liabilities, including borrowings, trade payables and other short-term monetary liabilities, are initially measured at fair value net of transaction costs directly attributable to the issuance of the financial liability. They are subsequently measured at amortised cost using the effective interest method. For the purposes of each financial liability, interest expense includes initial transaction costs and any premium payable on redemption, as well as any interest or coupon payable while the liability is outstanding.
Derecognition of financial liabilities
Financial liabilities are derecognised when, and only when, the company’s obligations are discharged, cancelled, or they expire.
1.10
Equity instruments
Equity instruments issued by the company are recorded at the proceeds received, net of direct issue costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.
1.11
Derivatives
Derivatives are initially recognised at fair value at the date a derivative contract is entered into and are subsequently remeasured to fair value at each reporting end date. The resulting gain or loss is recognised in profit or loss immediately unless the derivative is designated and effective as a hedging instrument, in which event the timing of the recognition in profit or loss depends on the nature of the hedge relationship.
A derivative with a positive fair value is recognised as a financial asset, whereas a derivative with a negative fair value is recognised as a financial liability. A derivative is presented as a non-current asset or liability if the remaining maturity of the instrument is more than 12 months and it is not expected to be realised or settled within 12 months. Other derivatives are classified as current.
1.12
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 income statement 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.
PADLOCK HUNTINGDON LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 9 -
Deferred tax
Deferred tax is the tax expected to be payable or recoverable on differences between the carrying amounts of assets and liabilities in the financial statements and the corresponding tax bases used in the computation of taxable profit, and is accounted for using the balance sheet liability method. Deferred tax liabilities are generally recognised for all taxable temporary differences and deferred tax assets are recognised to the extent that it is probable that taxable profits will be available against which deductible temporary differences can be utilised. Such assets and liabilities are not recognised if the temporary 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 income statement, 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.
1.13
Employee benefits
The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of inventories or non-current assets.
The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.
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.
1.14
Foreign exchange
Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation in the period are included in profit or loss.
2
Revenue
2023
2022
£
£
Revenue analysed by class of business
Rental income
597,890
514,120
Insurance income
63,345
41,863
Other income
5,668
5,760
666,903
561,743
All revenue is generated in the UK.
PADLOCK HUNTINGDON LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 10 -
3
Operating profit
2023
2022
Operating profit for the year is stated after charging/(crediting):
£
£
Depreciation of property, plant and equipment
-
(88)
Cost of inventories recognised as an expense
3,143
3,271
4
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2023
2022
Number
Number
Staff
6
2
5
Other gains and losses
2023
2022
£
£
Changes in the fair value of investment properties
606,404
915,718
6
Income tax expense
2023
2022
£
£
Deferred tax
Origination and reversal of temporary differences
151,601
228,929
The charge for the year can be reconciled to the profit per the income statement as follows:
2023
2022
£
£
Profit before taxation
877,690
1,160,668
Expected tax charge based on a corporation tax rate of 25.00% (2022: 25.00%)
219,423
290,167
Effect of expenses not deductible in determining taxable profit
1,719
Effect of change in UK corporation tax rate
(14,698)
Group relief
(67,533)
(46,278)
Permanent capital allowances in excess of depreciation
(289)
(1,872)
Additional 50% deduction for qualifying land remediation expenditure
(109)
Taxation charge for the year
151,601
228,929
PADLOCK HUNTINGDON LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 11 -
7
Investment property
2023
2022
£
£
Cost
At 1 January 2023
6,660,000
5,666,258
Addition through subsequent expenditure
23,596
75,229
Transfers from PPE
2,795
Fair value adjustment
606,404
915,718
At 31 December 2023
7,290,000
6,660,000
8
Inventories
2023
2022
£
£
Finished goods
2,504
2,343
9
Trade and other receivables
2023
2022
£
£
Trade receivables
5,421
Amounts owed by fellow group undertakings
84,552
84,552
Other receivables
1,435
-
Prepayments
33,882
28,819
119,869
118,792
10
Trade receivables - credit risk
Fair value of trade receivables
The directors consider that the carrying amount of trade and other receivables is approximately equal to their fair value.
No significant receivable balances are impaired at the reporting end date.
11
Trade and other payables
2023
2022
£
£
Trade payables
28,728
17,735
Amounts owed to fellow group undertakings
5,254,484
5,554,484
Accruals
6,227
8,378
Social security and other taxation
4,152
3,248
Other payables
34,874
1,688
5,328,465
5,585,533
PADLOCK HUNTINGDON LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 12 -
12
Deferred taxation
The following are the major deferred tax liabilities and assets recognised by the company and movements thereon during the current and prior reporting period.
Revaluation
£
Balance at 1 January 2022
Deferred tax movements in prior year
Charge/(credit) to profit or loss
228,929
Liability at 1 January 2023
228,929
Deferred tax movements in current year
Charge/(credit) to profit or loss
151,601
Liability at 31 December 2023
380,530
13
Deferred revenue
2023
2022
£
£
Arising from
10,292
46,312
All deferred revenues are expected to be settled within 12 months from the reporting date.
14
Share capital
2023
2022
2023
2022
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
2
2
2
2
15
Capital risk management
The company is not subject to any externally imposed capital requirements.
PADLOCK HUNTINGDON LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 13 -
16
Revaluation reserve
2023
2022
£
£
At the beginning of the year
686,789
Transfer to retained earnings
454,803
686,789
At the end of the year
1,141,592
686,789
The transfer from retained earnings comprises of £606,404 revaluation gain on the investment property, offset by the deferred tax impact of £151,601.
17
Related party transactions
During the year, Padlock Huntingdon Limited made purchases in insurance recharges from Padlock UK Bidco 2 Limited totalling £14,325 (2022: £nil).
During the year, Padlock Huntingdon Limited made purchases from Padlock UK Bidco 4 Limited totalling £nil (2022: £24,085).
During the year, Padlock Huntingdon Limited made purchases in management services from Padlock UK Bidco 5 Limited totalling £40,000 (2022: £nil).
18
Controlling party
Padlock Huntingdon Limited is a wholly owned subsidiary of Padlock UK Bidco 5 Limited and the results of Padlock Huntingdon Limited are included in the consolidated financial statements of Padlock Partners UK Fund II which are available online from Sedar.com.
19
Cash (absorbed by)/generated from operations
Year
Year
ended
ended
31 December
31 December
2023
2022
£
£
Profit for the year before income tax
877,690
1,160,668
Adjustments for:
Fair value gain on investment properties
(606,404)
(915,718)
Depreciation and impairment of property, plant and equipment
-
(88)
Movements in working capital:
(Increase)/decrease in inventories
(161)
1,470
(Increase)/decrease in trade and other receivables
(1,077)
97,999
Decrease in trade and other payables
(257,068)
(106,814)
(Decrease)/increase in deferred revenue outstanding
(36,020)
4,746
Cash (absorbed by)/generated from operations
(23,040)
242,263
2023-12-312023-01-01falseCCH SoftwareCCH Accounts Production 2024.100First Inital M KurschatS SilvesterJ StevensonI Muniandy134150492023-01-012023-12-31134150492023-12-31134150492022-12-3113415049core:CurrentFinancialInstruments2023-12-3113415049core:CurrentFinancialInstruments2022-12-31134150492022-12-31134150492021-12-3113415049core:RevaluationPropertyPlantEquipmentDeferredTax2021-12-3113415049core:RevaluationPropertyPlantEquipmentDeferredTax2022-12-3113415049core:RevaluationPropertyPlantEquipmentDeferredTax2023-12-3113415049core:ShareCapital2023-12-3113415049core:ShareCapital2022-12-3113415049core:RevaluationReserve2023-12-3113415049core:RevaluationReserve2022-12-3113415049core:RetainedEarningsAccumulatedLosses2023-12-3113415049core:RetainedEarningsAccumulatedLosses2022-12-3113415049core:OtherMiscellaneousReserve2021-12-3113415049core:RevaluationReserve2022-12-3113415049bus:Director42023-01-012023-12-3113415049core:RetainedEarningsAccumulatedLosses2022-01-012022-12-3113415049core:RetainedEarningsAccumulatedLosses2023-01-012023-12-3113415049core:RevaluationReserve2022-01-012022-12-31134150492022-01-012022-12-3113415049core:RevaluationReserve2023-01-012023-12-3113415049core:FinancialInstrumentsFairValueThroughProfitOrLoss2023-01-012023-12-3113415049core:Held-to-maturityFinancialAssets2023-01-012023-12-3113415049core:FinancialInstrumentsDesignatedFairValueThroughProfitOrLoss2023-01-012023-12-311341504912023-01-012023-12-311341504912022-01-012022-12-3113415049bus:PrivateLimitedCompanyLtd2023-01-012023-12-3113415049bus:AuditExempt-NoAccountantsReport2023-01-012023-12-3113415049bus:FullIFRS2023-01-012023-12-3113415049bus:Director12023-01-012023-12-3113415049bus:Director22023-01-012023-12-3113415049bus:Director32023-01-012023-12-3113415049bus:FilletedAccounts2023-01-012023-12-31xbrli:purexbrli:sharesiso4217:GBP