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Registered number: 02326036









NORD/LB PROJECT HOLDING LTD









DIRECTORS' REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2023

 
NORD/LB PROJECT HOLDING LTD
 
 
COMPANY INFORMATION


Directors
J P McLaughlin 
J Schwartz 




Company secretary
M Krivesko



Registered number
02326036



Registered office
One Wood Street

London

EC2V 7WT




Independent auditors
BKL Audit LLP
Chartered Accountants & Statutory Auditor

35 Ballards Lane

London

N3 1XW





 
NORD/LB PROJECT HOLDING LTD
 

CONTENTS



Page
Directors' Report
 
 
1 - 4
Independent Auditors' Report
 
 
5 - 8
Statement of Income and Retained Earnings
 
 
9
Statement of Financial Position
 
 
10
Notes to the Financial Statements
 
 
11 - 19


 
NORD/LB PROJECT HOLDING LTD
 
 
 
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023

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

Directors' responsibilities statement

The directors are responsible for preparing the Directors' Report and the audited financial statements in accordance with applicable law and regulations.
 
Company law requires the directors to prepare audited financial statements for each financial year. Under that law the directors have elected to prepare the audited 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 audited financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the Company and of the profit or loss of the Company for that period.

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


select suitable accounting policies for the Company's financial statements and then apply them consistently;

make judgements and accounting estimates that are reasonable and prudent;

state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements;

prepare the audited financial statements on the going concern basis unless it is inappropriate to presume that the Company 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 to enable them to ensure that the audited financial statements comply with the Companies Act 2006They are also responsible for safeguarding the assets of the Company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Principal activity

The Company is a private company limited by shares and incorporated in England. 
The principal activity of the Company is that of an investment holding company for equity participations in  Public Private Partnership ("PPP") transactions, which are formed as project companies for transactions with public authorities.
The Company is a wholly-owned subsidiary of NORD/LB Norddeutsche Landesbank Girozentrale ("the Parent Company"), a bank registered in Germany. The Parent Company provides funding to the PPP Projects in which the Company has an equity share.

Page 1

 
NORD/LB PROJECT HOLDING LTD
 
 
 
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023

Business review

During the year 2023, no new PPP equity participations were acquired. The total value of the investments at the year-end was €135,989 (2022 - €135,989) with equity participations being carried at cost less any impairment.
Details of the Company's current equity participations are set out below:
 
PPP Services (North Ayrshire) Holdings Limited was established on 23 December 2005 to hold an investment in PPP Services (North Ayrshire) Ltd, an SPV whose principal activities are the provision of design, construction, finance and facilities management services to North Ayrshire Council (Scotland) with regard to a PPP schools project for which Norddeutsche Landesbank, London Branch ("NORD/LB") is providing external finance. The project involves the construction and operation of 4 schools in North Ayrshire. The last school was completed in January 2008 and all schools are in operation. The length of the concession contract is 30 years from construction completion. The project's operation is in line with the Financial Model projections and there are no restrictions on distributions. The Operating profit of the SPV at 31 December 2023 was GBP 3,019,587. The Annual Debt Service cover Ratio ("ADSCR") and Loan Life Cover Ratio ("LLCR") at 31 March 2024 are 3.175 and 1.304 respectively. The project performance is closely monitored by NORD/LB and its advisers.
FCC (East Ayrshire) Holdings Limited was established on 07 April 2006 to hold an investment in FCC (East Ayrshire) Ltd, an SPV whose principal activities are the provision of design, construction, finance and facilities management services to East Ayrshire Council (Scotland) with regard to a PPP schools project for which NORD/LB is providing external finance. The project involves the construction and operation of 4 schools in East Ayrshire. The last school was completed in September 2008 and all schools are in operation. The length of the concession contract is 30 years from construction completion. The project's operation is in line with the Financial Model projections and the Operating profit of the SPV at 31 December 2023 was GBP 1,539,705. The ADSCR and LLCR at 31 March 2024 are 1.193 and 1.202 respectively. The project performance is closely monitored by NORD/LB and its advisers.
Fire Support (SSFR) Holdings Limited ("Fire Support") was established on 11 September 2009 to hold an investment in Fire Support (SSFR) Ltd, an SPV whose principal activities are the finance, design and management of 10 new build fire stations for Stoke on Trent and Staffordshire Fire & Rescue Service under the UK Private Finance Initiative. The last fire station was completed in November 2011. All fire stations are now in operation. A refinancing was agreed in 2016, whereby the NORD/LB became the sole lender to the project. Performance and deduction levels are satisfactory. The project's operation is in line with the Financial Model projections and there are no restrictions on distributions. The Operating profit of the SPV at 31 December 2023 was GBP 237,000. The ADSCR and LLCR at 31 March 2024 are 1.308 and 1.337 respectively. The project performance is closely monitored by NORD/LB and its advisers.

Results and dividends

The profit for the year, after taxation, amounted to 94,531 (2022 - 146,321).

No dividend was declared and paid in the year (2022 - €NIL).
The Statement of Comprehensive Income is set out on page 9. The changes in the earnings in 2023 compared to 2022 are due to the performance of the underlying business activities. Development of the Company's earnings depends on dividends paid by the aforementioned PPP project companies. During the year the Company received dividends of:

31,576 (2022 - €128,690) paid by PPP Services (North Ayrshire) Holdings Limited.

The directors consider the year-end financial position to be satisfactory considering these facts.

Page 2

 
NORD/LB PROJECT HOLDING LTD
 
 
 
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023


Directors

The directors who served during the year were:

J P McLaughlin 
J Schwartz 

Directors' indemnities
As permitted by the Articles of Association, the Directors have the benefit of an indemnity which is a qualifying third-party indemnity provision as defined by Section 234 of the Companies Act 2006. The indemnity was in force throughout the last financial year and is currently in force. The Company also purchased and maintained throughout the financial year Directors' and Officers' liability insurance in respect of itself and its Directors.

Principal risks and uncertainties

The management of the business and the execution of the Company's strategy are subject to a number of risks. The principal risks of the Company are equity valuation risk on the equity participations in PPP transactions and the deposits with the Parent Company, which are considered to be insignificant. Given the size of the Company, the directors have not delegated the responsibility of monitoring financial risk management to a sub-committee of the Board. All risks are closely monitored by the management team.
Going concern
The financial statements have been prepared on the going concern basis. The directors have considered the Company's business model, the main risks and uncertainties of the business, as well as the current economic and political environment. On the basis of their assessment, they have concluded that the operating environment for PPP projects in the UK remains stable, therefore the Company's current financial position and future financial performance will not be adversely affected. The directors are not aware of any plans to terminate or significantly curtail activities and have reasonable expectation that the Company has adequate resources to continue in operational existence for the foreseeable future.

Future developments

The external business environment remains challenging and uncertainty levels are greater than historical levels (Russian invasion of the Ukraine and political uncertainty in the UK), which has resulted in a significant and ongoing increase in cost inflation and therefore increased pressure for the Bank of England to continue to increase the base rate from an unprecedented low level. All these factors result in increased pressure on affordability. While the extent and duration of the effect of this economic uncertainty remains unclear, there is a risk of financial instability for the Company.
 
The directors have considered the future impact of the current financial instability of the three investments and do not predict significant changes in income generation of the investments due to the resilience and government support associated with local authorities, who are the main counterparts in the companies' projects.

Disclosure of information to auditors

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's auditors are 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's auditors are aware of that information.

Page 3

 
NORD/LB PROJECT HOLDING LTD
 
 
 
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023

Post balance sheet events

There have been no significant events affecting the Company since the year end.

Auditors

PricewaterhouseCoopers LLP resigned as auditors in the year and BKL Audit LLP were appointed in their stead.
Under section 487(2) of the Companies Act 2006BKL Audit LLP will be deemed to have been reappointed as auditors 28 days after these financial statements were sent to members or 28 days after the latest date prescribed for filing the accounts with the registrar, whichever is earlier.

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





M Krivesko
Secretary

Date: 19 September 2024

Page 4

 
NORD/LB PROJECT HOLDING LTD
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF NORD/LB PROJECT HOLDING LTD
 

Opinion


We have audited the financial statements of Nord/LB Project Holding Ltd (the 'Company') for the year ended 31 December 2023, which comprise the Statement of Income and Retained Earnings, the Statement of Financial Position 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 Company's affairs as at 31 December 2023 and of its profit 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 Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the Company 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 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.


Page 5

 
NORD/LB PROJECT HOLDING LTD
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF NORD/LB PROJECT HOLDING LTD (CONTINUED)


Other information


The other information comprises the information included in the Annual Report other than the financial statements and our Auditors' 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.


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 Directors' Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
the Directors' Report has 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 Company and its environment obtained in the course of the audit, we have not identified material misstatements in 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, or returns adequate for our audit have not been received from branches not visited by us; or
the 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; or
the directors were not entitled to take advantage of the small companies' exemption from the requirement to prepare a Strategic Report.


Page 6

 
NORD/LB PROJECT HOLDING LTD
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF NORD/LB PROJECT HOLDING LTD (CONTINUED)


Responsibilities of directors
 

As explained more fully in the Directors' Responsibilities Statement set out on page 1, 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 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 Company or to cease operations, or have no realistic alternative but to do so.


Auditors' 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 Auditors' 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 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:

Enquiring of management and those charged with governance around actual and potential litigation and claims;
Enquiring of management and those charged with governance to identify any instances of non-compliance with laws and regulations;
Reviewing board meeting minutes for all meetings taking place throughout the year and indeed up until the date of signature of these financial statements;
Reviewing financial statement disclosures and testing to supporting documentation to assess compliance with applicable laws and regulations;
Performing audit work over the risk of management override of controls, including testing of journal entries and other adjustments for appropriateness, evaluating the business rationale of significant transactions outside the normal course of business and reviewing accounting estimates for bias;
Reviewing the general ledger in detail for all transactions with related parties;
Performing walkthrough testing to ensure systems and controls are operating as recorded, where appropriate.


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. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.


As part of an audit in accordance with ISAs (UK), we exercise professional judgement and maintain professional scepticism throughout the audit. We also:


Page 7

 
NORD/LB PROJECT HOLDING LTD
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF NORD/LB PROJECT HOLDING LTD (CONTINUED)


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 Auditors' 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 Auditors' 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.


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 Auditors' 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.





Nick Bishop FCA (Senior Statutory Auditor)
  
for and on behalf of
BKL Audit LLP
 
Chartered Accountants
Statutory Auditor
  
London

20 September 2024
Page 8

 
NORD/LB PROJECT HOLDING LTD
 
 
STATEMENT OF INCOME AND RETAINED EARNINGS
FOR THE YEAR ENDED 31 DECEMBER 2023

2023
2022
Note

  

Turnover
 4 
138,510
188,977

Gross profit
  
138,510
188,977

Administration expenses
  
(30,163)
(33,944)

Operating profit
  
108,347
155,033

Tax on profit
 8 
(13,816)
(8,712)

Profit after tax
  
94,531
146,321

  

  

Retained earnings at the beginning of the year
  
654,157
507,836

Profit for the year
  
94,531
146,321

Retained earnings at the end of the year
  
748,688
654,157

There were no recognised gains and losses for 2023 or 2022 other than those included in the statement of income and retained earnings.

The notes on pages 11 to 19 form part of these financial statements.

Page 9

 
NORD/LB PROJECT HOLDING LTD
REGISTERED NUMBER: 02326036

STATEMENT OF FINANCIAL POSITION
AS AT 31 DECEMBER 2023

2023
2022
Note

Fixed assets
  

Investments
 9 
135,989
135,989

  
135,989
135,989

Current assets
  

Debtors: amounts falling due within one year
 10 
65,910
46,494

Cash at bank and in hand
  
786,939
709,015

  
852,849
755,509

Creditors: amounts falling due within one year
 11 
(40,150)
(37,341)

Net current assets
  
 
 
812,699
 
 
718,168

Total assets less current liabilities
  
948,688
854,157

  

Net assets
  
948,688
854,157


Capital and reserves
  

Called up share capital 
 12 
100,000
100,000

Capital reserve
 13 
100,000
100,000

Profit and loss account
 13 
748,688
654,157

  
948,688
854,157


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




J P McLaughlin
J Schwartz
Director
Director


Date: 19 September 2024
Date:20 September 2024

The notes on pages 11 to 19 form part of these financial statements.

Page 10

 
NORD/LB PROJECT HOLDING LTD
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

1.


General information

Nord / LB Project Holdings Ltd is a company incorporated in England and Wales.
The company's registered number and registered office address can be found on the Information page.
The principal activity of the Company is that of an investment holding company for equity participations in  Public Private Partnership ("PPP") transactions, which are formed as project companies for transactions with public authorities.
The Company is a wholly-owned subsidiary of NORD/LB Norddeutsche Landesbank Girozentrale ("the Parent Company"), a bank registered in Germany. The Parent Company provides funding to the PPP Projects in which the Company has an equity share.

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 ("FRS 102") 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 management to exercise judgement in applying the Company's accounting policies (see note 3).

The following principal accounting policies have been applied:

 
2.2

Financial Reporting Standard 102 - reduced disclosure exemptions

The Company has taken advantage of the following disclosure exemptions in preparing these financial statements, as permitted by the FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland":
the requirements of Section 7 Statement of Cash Flows;
the requirements of Section 3 Financial Statement Presentation paragraph 3.17(d).

This information is included in the consolidated financial statements of NORD/LB Norddeutsche Landesbank Girozentrale as at 31 December 2023 and these financial statements may be obtained from the company's registered office address.

 
2.3

Going concern

The financial statements have been prepared on the going concern basis, which assumes that the Company will continue to trade for the foreseeable future, being a period of at least twelve months from the date of approval of these financial statements, and will be able to meet its debts as they fall due.

Page 11

 
NORD/LB PROJECT HOLDING LTD
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

2.Accounting policies (continued)

 
2.4

Foreign currency translation

Functional and presentation currency

The Company's functional and presentational currency is Euros.

Transactions and balances

Foreign currency transactions are translated into the functional currency using the spot exchange rates at the dates of the transactions.

At each period end foreign currency monetary items are translated using the closing rate. Non-monetary items measured at historical cost are translated using the exchange rate at the date of the transaction and non-monetary items measured at fair value are measured using the exchange rate when fair value was determined.

 
2.5

Revenue

Revenue, in the context of the activities of the Company as an investment company, is represented by the receipt of dividends, interest income, directors' fees and other transactional gains and losses from its investing activities. Interest income is recognised on the accruals basis. Interim dividends from investees are recognised when they are paid and final dividends from investees are recognised when the Company becomes entitled to receive the amount.

 
2.6

Taxation

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 reporting date in the countries where the Company operates and generates income.

 
2.7

Valuation of investments

The investments in associates represent PPP equity participations. They are accounted for as associates on the basis of significant influence. The Company's ability to appoint directors to the board of each company is deemed to give it the power to participate in the financial and operating policy decisions of the company, but does not give it control or joint control over those policies.

Investments in associates are measured at cost less accumulated impairment. An impairment review of the assets is carried out annually.

 
2.8

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.

Page 12

 
NORD/LB PROJECT HOLDING LTD
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

2.Accounting policies (continued)

 
2.9

Financial instruments

The Company only enters into basic financial instrument transactions that result in the recognition of financial assets and liabilities like trade and other debtors and creditors, loans from banks and other third parties, loans to related parties and investments in ordinary shares.
(i) Financial assets
Basic financial assets, including trade and other debtors, and amounts due from related companies, are initially recognised at transaction price, unless the arrangement constitutes a financing transaction, where the transaction is measured at a market rate of interest.
Such assets are subsequently carried at amortised cost using the effective interest method.
At the end of each reporting period financial assets measured at amortised cost are assessed for objective evidence of impairment. If an asset is impaired the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in the Statement of Comprehensive Income.
Financial assets are derecognised when (a) the contractual rights to the cash flows from the asset expire or are settled, or (b) substantially all the risks and rewards of the ownership of the asset are transferred to another party or (c) control of the asset has been transferred to another party who has the practical ability to unilaterally sell the asset to an unrelated third party without imposing additional restrictions.
(ii) Financial liabilities
Basic financial liabilities, including trade and other creditors, are initially recognised at transaction price, unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future receipts discounted at a market rate of interest.
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Trade creditors are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.
Financial liabilities are derecognised when the liability is extinguished, that is when the contractual obligation is discharged, cancelled or expires.
(iii) Offsetting
Financial assets and liabilities are offset and 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.ured at the present value of the future receipts discounted

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NORD/LB PROJECT HOLDING LTD
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

3.


Judgements in applying accounting policies and key sources of estimation uncertainty

The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the amounts reported for assets and liabilities as at the balance sheet date and the amounts reported for revenues and expenses during the year. However, the nature of estimation means that actual outcomes could differ from those estimates.
Estimates and underlying assumptions are continually evaluated and are based on historical experience and other factors, including expectations of future events that are reasonable under the circumstances. Revisions to accounting estimates are recognised in the period in which the estimates are revised and in any future periods affected.
The following judgments (apart from those involving estimates) have had the most significant effect on amounts recognised in the financial statements.
Impairment of investments
Determining whether investments are impaired requires an estimation of the value in use of the subsidiary company to which the investment has been allocated versus an estimation of the market value on sale less cost to sell. Key areas of judgement in the value in use calculation include the estimation of the future growth rate of the sales. There was no impairment recognised for the year ended 31 December 2023 (2022: £NIL). See note 9 for the net book value of the investments and accounting policy 2.7 for the method of valuation.


4.


Turnover

An analysis of turnover by class of business is as follows:


2023
2022

Directors' fees received from associates
93,999
89,249

Dividends received from associates
31,576
128,690

Foreign exchange gain (loss)
12,935
(28,962)

138,510
188,977


All turnover arose within the United Kingdom.


5.


Operating profit

The operating profit is stated after charging:

2023
2022

Exchange differences
12,935
(28,962)

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NORD/LB PROJECT HOLDING LTD
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

6.


Auditors' remuneration

During the year, the Company obtained the following services from the Company's auditors and their associates:


2023
2022

Fees payable to the Company's auditors and their associates for the audit of the Company's financial statements
22,054
26,557

Fees payable to the Company's auditors and their associates in respect of:

Non-audit services
8,007
6,765


7.


Employees




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


        2023
        2022
            No.
            No.







Directors
2
2


8.


Taxation


2023
2022

Corporation tax


Current tax on profits for the year
18,057
5,575

Adjustments in respect of previous periods
(4,241)
3,137


Total current tax
13,816
8,712
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NORD/LB PROJECT HOLDING LTD
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
 
8.Taxation (continued)


Factors affecting tax charge for the year

The tax assessed for the year is lower than (2022 - lower than) the standard rate of corporation tax in the UK of 23.5% (2022 - 19%). The differences are explained below:

2023
2022


Profit on ordinary activities before tax
108,347
155,033


Profit on ordinary activities multiplied by standard rate of corporation tax in the UK of 23.5% (2022 - 19%)
25,478
29,456

Effects of:


Adjustments to tax charge in respect of prior periods
(4,241)
3,137

Non-taxable income
(7,421)
(23,881)

Total tax charge for the year
13,816
8,712


Factors that may affect future tax charges

There were no factors that may affect future tax charges.


9.


Investments





Unlisted investments




Cost


At 1 January 2023
135,989



At 31 December 2023
135,989




The directors believe that the carrying value of the investments is supported by the underlying performance of the companies.

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NORD/LB PROJECT HOLDING LTD
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

10.


Debtors

2023
2022


Trade debtors
65,910
46,494



11.


Creditors: Amounts falling due within one year

2023
2022

Corporation tax
18,057
6,290

Accruals and deferred income
22,093
31,051

40,150
37,341



12.


Share capital

2023
2022
Allotted, called up and fully paid



100 (2022 - 100) Ordinary shares shares of 1,000 each
100,000
100,000



13.


Reserves

Capital reserve

The capital reserve represents the value of share capital transferred to reserves.

Profit and loss account

The profit and loss account represents the total undistributed profits less losses.

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NORD/LB PROJECT HOLDING LTD
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

14.


Related party transactions

There were no transactions with directors or officers during the year. 
The Company has taken advantage of the exemption conferred by section 33.1A of Financial Reporting Standard 102: Related Party Disclosures, from the requirement to disclose transactions with other wholly-owned group undertakings.
The consolidated group financial statements are published by the ultimate holding company.
The Company's investments, FCC (East Ayrshire) Holdings Limited, PPP Services (North Ayrshire) Holdings Limited and Fire Support (SSFR) Holdings Limited, are related parties of the Company. Transactions and outstanding balances are summarised below:

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NORD/LB PROJECT HOLDING LTD
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

15.


Post balance sheet events

There have been no significant events affecting the Company since the year end.


16.


Controlling party

The company's immediate and ultimate holding and controlling company is NORD/LB Norddeutsche Landesbank Girozentrale, which is incorporated in the Federal Republic of Germany.
The ultimate holding company's financial statements may be obtained from its website www.nordlb.de/.

 
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