Company Registration No. 09010400 (England and Wales)
ADAM STREET LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
PAGES FOR FILING WITH REGISTRAR
LB GROUP
The Octagon
Suite E2, 2nd Floor
Middleborough
Colchester
CO1 1TG
ADAM STREET LIMITED
CONTENTS
Page
Statement of financial position
1
Notes to the financial statements
2 - 8
ADAM STREET LIMITED
STATEMENT OF FINANCIAL POSITION
AS AT 31 DECEMBER 2023
31 December 2023
- 1 -
2023
2022
Notes
£
£
£
£
Fixed assets
Tangible assets
4
35,900
26,731
Current assets
Debtors
5
2,128,445
1,818,666
Cash at bank and in hand
392,454
680,750
2,520,899
2,499,416
Creditors: amounts falling due within one year
6
(394,179)
(444,762)
Net current assets
2,126,720
2,054,654
Total assets less current liabilities
2,162,620
2,081,385
Provisions for liabilities
(8,325)
(5,891)
Net assets
2,154,295
2,075,494
Capital and reserves
Called up share capital
7
100
100
Profit and loss reserves
2,154,195
2,075,394
Total equity
2,154,295
2,075,494
The directors of the company have elected not to include a copy of the income statement within the financial statements.true
These financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime.
The financial statements were approved by the board of directors and authorised for issue on 13 September 2024 and are signed on its behalf by:
Hoh Chin Yiep
Director
Company Registration No. 09010400
ADAM STREET LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
- 2 -
1
Accounting policies
Company information
Adam Street Limited is a private company limited by shares incorporated in England and Wales. The registered office is 7-10 Adam Street, The Strand, London, Greater London, UK, WC2N 6AA.
1.1
Accounting convention
These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006 as applicable to companies subject to the small companies regime. The disclosure requirements of section 1A of FRS 102 have been applied other than where additional disclosure is required to show a true and fair view.
The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.
The financial statements have been prepared under the historical cost convention, modified to include the revaluation of freehold properties and to include investment properties and certain financial instruments at fair value. The principal accounting policies adopted are set out below.
This company is a qualifying entity for the purposes of FRS 102, being a member of a group where the parent of that group prepares publicly available consolidated financial statements, including this company, which are intended to give a true and fair view of the assets, liabilities, financial position and profit or loss of the group. The company has therefore taken advantage of exemptions from the following disclosure requirements:
Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instrument Issues’: Interest income/expense and net gains/losses for each category of financial instrument; basis of determining fair values; details of collateral, loan defaults or breaches, details of hedges, hedging fair value changes recognised in profit or loss and in other comprehensive income;
Section 33 ‘Related Party Disclosures’: Compensation for key management personnel and between two or more members of a group
The financial statements of the company are consolidated in the financial statements of Heeton Holdings Limited.These consolidated financial statements are available from its registered office, 60 Paya Lebar Road, #08-36 Paya Lebar Square, Singapore 409051.
1.2
Going concern
The Company is in a net current asset position trueof £2,126,720 at the balance sheet date which includes inter-company debtor balances owed of £1,993,927 which the ultimate parent has confirmed in writing it will guarantee should the related companies be unable to repay if called upon.
At the balance sheet date, £6,046 is due to connected companies, which the ultimate parent undertaking has confirmed in writing to the directors will not be recalled until the companies are in a position to repay this and for at least 12 months from the date these financial statements are signed.
The directors have considered the forecasted future operations of the company and that the ultimate parent undertaking has confirmed to provide continuing financial support to the company, and have concluded that the company will have adequate resources to continue in business for the foreseeable future, being at least 12 months from the date of approval of these financial statements. The directors remain positive that the industry will recover within the foreseeable future as the UK economy becomes stronger. Therefore, the directors continue to adopt the going concern basis of accounting in preparing these financial statements.
ADAM STREET LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 3 -
1.3
Turnover
The company’s primary revenue stream is from the provision of serviced office and virtual office services. The company also earns revenue from ancillary activities covered below.
Serviced Office – The company enters into a licence agreement with tenants offering its' serviced suites. The monthly licence fee is charged per contract during the term of the licence agreement. Revenue is recognised as services are provided.
Virtual office – The company offers virtual office services to clients. The company provides personal dedicated office support offering telephone and registered office services. Revenue is subject to contract and recognised as services are provided.
Hot desking – The company offers fully furnished hot desking facilities based on shared or dedicated office facility needs at daily, weekly or monthly rates. Revenue is recognised based on the terms of the arrangement as services are provided.
Meeting rooms/Conference rooms – The company offers meeting rooms and event rooms of various sizes to meet individual requirements. Revenue is recognised as services are provided.
Parking – The company offers parking services to consumers via a third party service and is invoiced monthly. Revenue is recognised as services are provided.
Other ancillary services provided like catering, courier, post handling and secretarial services are invoiced at the point of transaction on a daily basis or monthly basis based on the terms of contract. Revenue is recognised as services are provided.
VAT charged on all types of sale is recognised as a liability at the time of recording the revenue.
1.4
Tangible fixed assets
Tangible fixed assets are stated at cost less depreciation. Depreciation is provided at rates calculated
to write off the cost less estimated residual value of each asset over its expected useful life, as follows
Leasehold improvements
Over 5 years
Plant and machinery
Over 6 years
Fixtures, fittings & equipment
Over 5 years
Computer equipment
Over 5 years
The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is credited or charged to profit or loss.
1.5
Impairment of fixed assets
At each reporting period 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.
1.6
Cash and cash equivalents
Cash and cash equivalents are basic financial assets and 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.
ADAM STREET LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 4 -
1.7
Financial instruments
The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the company's statement of financial position when the company becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
1.8
Equity instruments
Equity instruments issued by the company are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.
1.9
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.
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 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.
1.10
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 stock or fixed 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.
1.11
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
ADAM STREET LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 5 -
1.12
Leases
Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leases asset are consumed.
1.13
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
Judgements and key sources of estimation uncertainty
In the application of the company’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.
3
Employees
The average monthly number of persons employed by the company during the year was:
2023
2022
Number
Number
Total
5
5
ADAM STREET LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 6 -
4
Tangible fixed assets
Leasehold improv.
Plant and machinery etc
Total
£
£
£
Cost
At 1 January 2023
6,948
133,475
140,423
Additions
2,479
18,155
20,634
At 31 December 2023
9,427
151,630
161,057
Depreciation
At 1 January 2023
6,211
107,481
113,692
Depreciation charged in the year
614
10,851
11,465
At 31 December 2023
6,825
118,332
125,157
Carrying amount
At 31 December 2023
2,602
33,298
35,900
At 31 December 2022
737
25,994
26,731
5
Debtors
2023
2022
Amounts falling due within one year:
£
£
Trade debtors
87,417
122,387
Other debtors
2,041,028
1,696,279
2,128,445
1,818,666
The ultimate parent company, being Heeton Holdings Limited, has agreed to provide continuing financial support to the company and guarantee those inter-company balances due to the company from other group companies. These balances are included in other debtors and amount to £1,993,927 at year end (2022: £1,622,423).
6
Creditors: amounts falling due within one year
2023
2022
£
£
Trade creditors
5,779
17,358
Taxation and social security
24,205
30,534
Other creditors
364,195
396,870
394,179
444,762
ADAM STREET LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
6
Creditors: amounts falling due within one year
(Continued)
- 7 -
The ultimate parent company, being Heeton Holdings Limited, has agreed to provide continuing financial support to the company and guarantee those inter-company balances due from the company to other group companies. These balances are included in other creditors and amount to £6,046 at year end (2022: £1,298).
The company has registered charges dated 16 February 2015 and 11 September 2019 containing fixed and floating charge with negative pledge over all its property or undertakings in favour of Oversea-Chinese Banking Corporation in respect of monies borrowed by its parent company, Acework Limited. The liability in respect of this borrowing is in the books of the parent company.
7
Called up share capital
2023
2022
2023
2022
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary of £1 each
100
100
100
100
8
Audit report information
As the income statement has been omitted from the filing copy of the financial statements, the following information in relation to the audit report on the statutory financial statements is provided in accordance with s444(5B) of the Companies Act 2006:
The auditor's report was unqualified.
The senior statutory auditor was Shaun Roberts and the auditor was LB Group (Colchester)
9
Operating lease commitments
Lessee
At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, as follows:
2023
2022
£
£
680,000
360,000
10
Capital commitments
As at 31 December 2023, the company has accepted quotes to undertake refurbishment work in the premises amounting to £114,405 (2022: Nil). The work had not commenced at year end.
11
Directors' transactions
There were no guarantees with the directors in the year.
ADAM STREET LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 8 -
12
Parent company
The immediate parent of the company is Acework Limited, a company incorporated in the British Virgin Islands.
The ultimate controlling parent of the company is Heeton Holdings Limited, a company incorporated in Singapore.
The smallest group into which Adam Street Limited is consolidated is Heeton Holdings Limited.