REGISTERED NUMBER: |
FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
FOR |
LEXA UK LIMITED |
REGISTERED NUMBER: |
FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
FOR |
LEXA UK LIMITED |
LEXA UK LIMITED (REGISTERED NUMBER: 03057386) |
CONTENTS OF THE FINANCIAL STATEMENTS |
for the year ended 31 December 2023 |
Page |
Company Information | 1 |
Abridged Balance Sheet | 2 |
Notes to the Financial Statements | 3 |
LEXA UK LIMITED |
COMPANY INFORMATION |
for the year ended 31 December 2023 |
DIRECTORS: |
SECRETARY: |
REGISTERED OFFICE: |
REGISTERED NUMBER: |
AUDITORS: |
Chartered Certified Accountants |
19-20 Bourne Court |
Southend Road |
Woodford Green |
Essex |
IG8 8HD |
LEXA UK LIMITED (REGISTERED NUMBER: 03057386) |
ABRIDGED BALANCE SHEET |
31 December 2023 |
2023 | 2022 |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Tangible assets | 4 |
Investment property | 5 |
CURRENT ASSETS |
Debtors |
Cash at bank and in hand |
CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
NET CURRENT ASSETS |
TOTAL ASSETS LESS CURRENT LIABILITIES |
CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR |
6 |
NET ASSETS |
CAPITAL AND RESERVES |
Called up share capital |
Other reserves | 9 |
Retained earnings | 9 | ( |
) | ( |
) |
In accordance with Section 444 of the Companies Act 2006, the Income Statement has not been delivered. |
The financial statements were approved by the Board of Directors and authorised for issue on |
LEXA UK LIMITED (REGISTERED NUMBER: 03057386) |
NOTES TO THE FINANCIAL STATEMENTS |
for the year ended 31 December 2023 |
1. | STATUTORY INFORMATION |
Lexa UK Limited is a |
The presentation currency of the financial statements is the Pound Sterling (£). |
2. | ACCOUNTING POLICIES |
Basis of preparing the financial statements |
The preparation of financial statements in compliance with FRS 102 Section 1A "Small Entities" requires the use of certain critical accounting estimates. It also requires management to exercise judgement in applying the company's accounting policies (see note 3). |
Related party |
For the purposes of these financial statements, a party is considered to be related to the company if: |
- the party has the ability, directly or indirectly, through one or more intermediaries, to control the Company or exercise significant influence over the company in making financial and operating policy decisions, or has joint control over the company; or |
- the company and the party are subject to common control; or |
- the party is an associate of the company or a joint venture in which the company is a venturer; or |
- the party is a member of key management personnel of the company or the company's parent, or a close family member of such an individual, or is an entity under the control, joint control or significant influence of such individuals; or |
- the party is a close family member of a party referred to in (i) or is an entity under the control, joint control or significant influence of such individuals; or |
- the party is a post-employment benefit plan which is for the benefit of employees of the company or of any entity that is a related party of the company; or |
- the party, or any member of a group of which it is part, provides key management personnel services to the company or its parent. |
Related party exemption |
The company has taken advantage of exemption, under the terms of Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland', not to disclose related party transactions with wholly owned subsidiaries within the group. |
Going concern |
The directors have assessed whether the use of the going concern assumption is appropriate in preparing these accounts. The directors have made this assessment in respect to a period of one year from the date of approval of these accounts. |
The directors have concluded that there are no material uncertainties related to events or conditions that may cast significant doubt on the ability of the company to continue as a going concern. The directors are of the opinion that the company will have sufficient resources to meet its liabilities as they fall due. |
LEXA UK LIMITED (REGISTERED NUMBER: 03057386) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
for the year ended 31 December 2023 |
2. | ACCOUNTING POLICIES - continued |
Revenue |
Revenue comprises rental and service charge income, excluding Value Added Tax, which is recognised in the period which it is earned. Amounts invoiced in excess of the amount earned during the period are recognised as deferred income in creditors. |
Benefits provided as an incentive to sign an operating lease are recognised on a straight line basis over the period until the date the rent is expected to be adjusted to the prevailing market rate. |
Tangible fixed assets |
Tangible fixed assets under the cost model, other than investment properties, 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. |
The company adds to the carrying amount of an item of fixed assets the cost of replacing part of such an item when that cost is incurred, if the replacement part is expected to provide incremental future benefits to the company. The carrying amount of the replaced part is derecognised. Repairs and maintenance are charged to profit or loss during the period in which they are incurred. |
Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, using the straight line method. |
Depreciation is provided on the following bases: |
Furniture, fixtures & fittings - 10 - 20% per annum |
Antique furniture and fixtures - 2% per annum |
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 the statement of comprehensive income. |
Investment property |
lnvestment property is carried at fair value 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 in 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. |
LEXA UK LIMITED (REGISTERED NUMBER: 03057386) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
for the year ended 31 December 2023 |
2. | ACCOUNTING POLICIES - continued |
Financial instruments |
The company enters into basic financial instruments transactions that result in the recognition of financial assets and liabilities like trade and other debtors and creditors. |
Debt instruments, like loans and other accounts receivable and payable, are initially measured at present value of the future payments and subsequently at amortised cost using the effective interest method. Debt instruments that are payable or receivable within one year, typically trade debtors and creditors, are measured, initially and subsequently, at the undiscounted amount of the cash or other consideration expected to be paid or received. |
Financial assets that are measured at cost and amortised cost are assessed at the end of each reporting period for objective evidence of impairment. lf objective evidence of impairment is found, an impairment loss is recognised in the statement of comprehensive income. |
For financial assets measured at amortised cost, the impairment loss is measured as the difference between an asset's carrying amount and the present value of estimated cash flows discounted at the asset's original effective interest rate. lf a financial asset has a variable interest rate, the discount rate for measuring any impairment loss is the current effective interest rate determined under the contract. |
For financial assets measured at cost less impairment, the impairment loss is measured as the difference between an asset's carrying amount and best estimate of the recoverable amount, which is an approximation of the amount that the company would receive for the asset if it were to be sold at the reporting date. |
Financial assets and liabilities are offset and the net amount reported in the statement of financial position when there is an 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. |
Current and deferred taxation |
Tax is recognised in the statement of comprehensive income, 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 reporting date in the countries where the company operates and generates income. |
Deferred tax balances are recognised in respect of all timing differences that have originated but not reversed by the reporting date, except that: |
- The recognition of deferred tax assets is limited to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits; and |
- Any deferred tax balances are reversed if and when all conditions for retaining associated tax allowances have been met. |
Deferred tax balances are not recognised in respect of permanent differences except in respect of business combinations, when deferred tax is recognised on the differences between the fair values of assets acquired and the future tax deductions available for them and the differences between the fair values of liabilities acquired and the amount that will be assessed for tax. Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the reporting date. |
LEXA UK LIMITED (REGISTERED NUMBER: 03057386) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
for the year ended 31 December 2023 |
2. | ACCOUNTING POLICIES - continued |
Obligations under finance leases |
Leases of property used as investment property are classified as finance leases. Such finance leases are capitalised at the lower of the fair value of the property and the present value of the minimum lease payments. Each lease payment is allocated between the liability and finance charges so as to achieve a constant rate on the finance balance outstanding. The corresponding rental obligations, net of finance charges, are included in liabilities. The finance charges are charged to the statement of comprehensive income over the lease period so as to produce a constant periodic rate of interest on the remaining balance of the liability for each period. |
Pension costs and other post-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. |
Debtors |
Short term debtors are measured at transaction price, less any impairment. |
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 no more then three months from the date of acquisition and that are readily convertible to known amounts of cash with insignificant risk of change in value. |
Any cash deposits that do not fall within cash and cash equivalents are treated as current asset investments. |
Creditors |
Short term creditors are measured at the transaction price. Other financial liabilities are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method. |
3. | EMPLOYEES AND DIRECTORS |
The average number of employees during the year was NIL (2022 - NIL). |
LEXA UK LIMITED (REGISTERED NUMBER: 03057386) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
for the year ended 31 December 2023 |
4. | TANGIBLE FIXED ASSETS |
Totals |
£ |
COST |
At 1 January 2023 |
Additions |
At 31 December 2023 |
DEPRECIATION |
At 1 January 2023 |
Charge for year |
At 31 December 2023 |
NET BOOK VALUE |
At 31 December 2023 |
At 31 December 2022 |
5. | INVESTMENT PROPERTY |
Freehold Investment property | Long term leasehold Investment property | Total |
£ | £ | £ |
Valuation |
At 1 January 2023 | 1,750,000 | 5,311,383 | 7,061,383 |
Revaluation surplus / deficit | (50,000 | ) | (715,314 | ) | (765,314 | ) |
Improvements to property | - | 738,879 | 739,879 |
At 31 December 2023 | 1,700,000 | 5,334,948 | 7,034,948 |
The freehold property is used as an investment property for rental and is stated at the directors' estimate of open market value, based on advice from Hayman-Joyce, Chartered Surveyors, who have carried out a valuation on this property on 31 December 2023 at £1,700,000 (2022 - £1,750,000). The historic cost of this property is £2,559,842 (2022 - £2,559,842). |
The long term leasehold investment property is stated at the directors' estimate of open market value, based on advice from Tuckerman, Chartered Surveyors, who have carried out a valuation on this property on 31 December 2023 at £4,430,000 (2022 - £4,405,000). The historic cost of this property is £4,432,057 (2022 - £3,693,178). The present value of the finance liability of £905,948 (2022 - £906,383) is added to the valuation. |
6. | CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN FIVE YEARS |
2023 | 2022 |
£ | £ |
Repayable by instalments |
Finance leases | 905,486 | 905,972 |
LEXA UK LIMITED (REGISTERED NUMBER: 03057386) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
for the year ended 31 December 2023 |
7. | LEASING AGREEMENTS |
Minimum lease payments under hire purchase fall due as follows: |
2023 | 2022 |
£ | £ |
Due within one year | 54,818 | 54,818 |
Due between two to five years | 219,272 | 219,272 |
Due over five years | 4,220,986 | 4,275,804 |
4,495,076 | 4,549,894 |
The company also pays the excess of 25% of rents received over the minimum lease payments to the freeholder of the company's long leasehold investment property (as required in the lease). |
8. | FINANCIAL INSTRUMENTS |
2023 | 2022 |
£ | £ |
Financial assets |
Financial assets that are debt instruments measured at amortised cost | 536,937 | 339,023 |
Financial liabilities |
Financial liabilities measured at amortised cost | 971,149 | 1,014,955 |
Financial assets measured at amortised cost comprise trade debtors, cash at bank, other debtors and accrued income. |
Financial liabilities measured at amortised cost comprise trade creditors, other creditors, obligations under finance leases. |
9. | RESERVES |
Other reserves |
Other reserve relates to capital contributions made to the company by its shareholders. This reserve is distributable. |
Profit and loss account |
Profit and loss account represents cumulative profits or losses, net of dividends paid and other adjustments. |
10. | DISCLOSURE UNDER SECTION 444(5B) OF THE COMPANIES ACT 2006 |
The Report of the Auditors was unqualified. |
for and on behalf of |
11. | CONTINGENT LIABILITIES |
There were no contingent liabilities at the balance sheet date |
LEXA UK LIMITED (REGISTERED NUMBER: 03057386) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
for the year ended 31 December 2023 |
12. | RELATED PARTY DISCLOSURES |
Mrs A Axson Johnson is the ultimate controlling party of the company and of Axel Johnson Holding AB. |
During the year, the company received office rental income and service charge of £418,040 (2022 - £388,883) from Axel Johnson Holding AB. |
During the year, the company received rental income and telephone recharges from Mrs A Axson Johnson of £86,669 (2022 - £80,000) from a lease which commenced in 2004. |
13. | AUDITOR LIABILITY LIMITATION AGREEMENT |
The company has entered into a liability limitation agreement with Raffingers, the statutory auditor, in respect of the statutory audit for the year ended 31 December 2023. The proportionate liability agreement follows the standard terms in Appendix B to the Financial Reporting Council's June 2008 Guidance on Auditor Liability Agreements, and was approved by the members on 06 December 2023. |
14. | ULTIMATE CONTROLLING PARTY |
The company regarded by the directors as the ultimate parent company is AltoCumulus Holding AB which is incorporated in Sweden. AltoCumulus Holding AB is the largest and smallest group for which group accounts are prepared. These can be obtained from: |
AltoCumulus Holding AB |
Kungstengatan 18 |
113 57 Stockholm |
Sweden |
15. | PENSIONS COMMITMENT |
The company operates a defined contribution pension scheme for staff members and the pension charge represents the amounts paid to these funds during the year. Payments during the year amounted to £2,142 (2022 - £1,380). There were no outstanding balance in the current and previous year. |