Company registration number 08642316 (England and Wales)
J. SAFRA REAL ESTATE UK LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
J. SAFRA REAL ESTATE UK LIMITED
COMPANY INFORMATION
Directors
Mr J Singer
Mr D Wainberg
Mr D Lewis
Secretary
Daniel Lewis
Company number
08642316
Registered office
47 Berkeley Square
London
W1J 5AU
Auditor
Alliotts LLP
Manfield House
1 Southampton Street
London
WC2R 0LR
J. SAFRA REAL ESTATE UK LIMITED
CONTENTS
Page
Directors' report
1 - 2
Independent auditor's report
3 - 6
Statement of comprehensive income
7
Statement of financial position
8
Statement of changes in equity
9
Statement of cash flows
10
Notes to the financial statements
11 - 22
J. SAFRA REAL ESTATE UK LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 1 -

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

Principal activities

The principal activity of the company is that of management of real estate on a fee or contract basis.

Results and dividends

The results for the year are set out on page 7.

No ordinary dividends were paid. The directors do not recommend payment of a final dividend.

Directors

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

Mr J Singer
Mr D Wainberg
Mr D Lewis
Auditor

In accordance with the company's articles, a resolution proposing that Alliotts LLP be reappointed as auditor of the company will be put at a General Meeting.

Statement of directors' responsibilities

The directors are responsible for preparing the annual report and the financial statements in accordance with applicable law and regulations.

 

Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the 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 financial statements, the directors are required to:

 

 

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 enable them to ensure that the financial statements comply with the Companies Act 2006. They 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.

Statement of disclosure to auditor

So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the company’s auditor is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the company’s auditor is aware of that information.

J. SAFRA REAL ESTATE UK LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 2 -
Going concern

The directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Thus the directors continue to adopt the going concern basis in preparing the annual financial statements. Further details regarding the adoption of the going concern basis can be found in note 1.2 of the financial statements.

Medium-sized companies exemption

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

On behalf of the board
Mr J Singer
Director
23 September 2024
J. SAFRA REAL ESTATE UK LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF J. SAFRA REAL ESTATE UK LIMITED
- 3 -
Opinion

We have audited the financial statements of J. Safra Real Estate UK Limited (the 'company') for the year ended 31 December 2023 which comprise the statement of comprehensive income, the statement of financial position, the statement of changes in equity, the statement of cash flows and notes to the financial statements, including significant accounting policies. The 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:

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 Auditor's 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 UK, including the FRC’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.

 

We draw attention to note 1.2 in the financial statements, which indicates that the company incurred a net profit before taxation of £72,692 during the year ended 31 December 2023 and at that date the company had negative equity of £37,899. The Directors of J.S. Immo Luxembourg S.A (the parent company) have confirmed through signed representations that they will continue supporting the company for the 12 months following the signing of the accounts by way of providing resources to enable the company to trade and meet its liabilities as and when they fall due.

 

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.

Other information

The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The directors are responsible for the other information contained within the annual report. Our 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.

J. SAFRA REAL ESTATE UK LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF J. SAFRA REAL ESTATE UK LIMITED
- 4 -

Opinions on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of our audit:

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:

 

Responsibilities of directors

As explained more fully in the directors' responsibilities statement, 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.

Auditor's 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 auditor's 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.

 

J. SAFRA REAL ESTATE UK LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF J. SAFRA REAL ESTATE UK LIMITED
- 5 -
Extent to which the audit was considered captable of detecting irregularities, including fraud

Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was as follows:

 

We assessed the susceptibility of the company’s financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by:

Audit response to risks identified

To address the risk of fraud through management bias and override of controls, we:

 

In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to:

There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the directors and other management and the inspection of regulatory and legal correspondence, if any.

 

Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion.

A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.

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 2006. Our 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 auditor's 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.

J. SAFRA REAL ESTATE UK LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF J. SAFRA REAL ESTATE UK LIMITED
- 6 -
Sudheer Gupta BA FCA
Senior Statutory Auditor
For and on behalf of Alliotts LLP
23 September 2024
Chartered Accountants
Statutory Auditor
Manfield House
1 Southampton Street
London
WC2R 0LR
J. SAFRA REAL ESTATE UK LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2023
- 7 -
2023
2022
as restated
Notes
£
£
Revenue
2
818,050
917,743
Administrative expenses
(745,546)
(964,806)
Operating profit/(loss)
3
72,504
(47,063)
Investment income
7
188
-
0
Profit/(loss) before taxation
72,692
(47,063)
Tax on profit/(loss)
8
(31,719)
-
0
Profit/(loss) for the financial year
40,973
(47,063)

The income statement has been prepared on the basis that all operations are continuing operations.

J. SAFRA REAL ESTATE UK LIMITED
STATEMENT OF FINANCIAL POSITION
AS AT
31 DECEMBER 2023
31 December 2023
- 8 -
2023
2022
as restated
Notes
£
£
£
£
Non-current assets
Property, plant and equipment
10
431
1,105
Investments
11
100
100
531
1,205
Current assets
Trade and other receivables
13
338,221
459,159
Cash and cash equivalents
4,952,760
4,716,568
5,290,981
5,175,727
Current liabilities
14
(5,329,221)
(5,255,614)
Net current liabilities
(38,240)
(79,887)
Total assets less current liabilities
(37,709)
(78,682)
Provisions for liabilities
Deferred tax liability
15
190
190
(190)
(190)
Net liabilities
(37,899)
(78,872)
Equity
Called up share capital
17
1
1
Retained earnings
(37,900)
(78,873)
Total equity
(37,899)
(78,872)

These financial statements have been prepared in accordance with the provisions relating to medium-sized companies.

The financial statements were approved by the board of directors and authorised for issue on 23 September 2024 and are signed on its behalf by:
Mr J  Singer
Director
Company registration number 08642316 (England and Wales)
J. SAFRA REAL ESTATE UK LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2023
- 9 -
Share capital
Retained earnings
Total
£
£
£
As restated for the period ended 31 December 2022:
Balance at 1 January 2022
1
(31,810)
(31,809)
Year ended 31 December 2022:
Loss and total comprehensive income for the year
-
(47,063)
(47,063)
Balance at 31 December 2022
1
(78,873)
(78,872)
Year ended 31 December 2023:
Profit and total comprehensive income for the year
-
40,973
40,973
Balance at 31 December 2023
1
(37,900)
(37,899)
J. SAFRA REAL ESTATE UK LIMITED
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2023
- 10 -
2023
2022
as restated
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from/(absorbed by) operations
20
236,004
(1,061,415)
Investing activities
Purchase of property, plant and equipment
-
0
(909)
Interest received
188
-
0
Net cash generated from/(used in) investing activities
188
(909)
Net increase/(decrease) in cash and cash equivalents
236,192
(1,062,324)
Cash and cash equivalents at beginning of year
4,716,568
5,778,892
Cash and cash equivalents at end of year
4,952,760
4,716,568
J. SAFRA REAL ESTATE UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
- 11 -
1
Accounting policies
Company information

J. Safra Real Estate UK Limited is a private company limited by shares incorporated in England and Wales (company number: 08642316). The registered office is 47 Berkeley Square, London, W1J 5AU.

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.

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. The principal accounting policies adopted are set out below.

1.2
Prior period error

This year the revenue recognition process was reviewed by management, with an impact on the previous year in respect of revenue cut off. Recognition of some service revenue lines in the previous year had been by reference to certain reporting milestones, rather than by reference to the FRS 102 revenue recognition principles. As such, an adjustment increasing revenue for the year to 31 December 2022 and the other debtors balance as at 31 December 2022 by £26,897 has been processed through these financial statements.

1.3
Going concern

The accounts have been prepared on the going concern basis, as the parent company, J.S. Immo Luxembourg SA has confirmed they will provide continued financial support to allow the company to trade and continue to meet its liabilities as and when they fall due for at least 12 months from the date of signing the financial statements.

 

As a result the Directors believe that the Company can successfully manage its business risks and the Directors have a reasonable expectation that the Company will have access to adequate resources to continue to trade for the foreseeable future. Therefore they believe it is appropriate to continue to adopt the going concern basis in preparing the annual report and the financial statements.

1.4
Revenue

Turnover represents amounts receivable for services net of VAT.

Revenue is comprised of property and asset management fees which are billed in different ways based on the type of services provided. For services which are provided on a time apportioned basis, they are recognised when the company has a contractual right to do so, and allocated to the period that the service relates. All fees are included only when they can be reliably estimated.

1.5
Intangible fixed assets other than goodwill

Intangible assets acquired separately from a business are recognised at cost and are subsequently measured at cost less accumulated amortisation and accumulated impairment losses.

 

Intangible assets acquired on business combinations are recognised separately from goodwill at the acquisition date where it is probable that the expected future economic benefits that are attributable to the asset will flow to the entity and the fair value of the asset can be measured reliably; the intangible asset arises from contractual or other legal rights; and the intangible asset is separable from the entity.

J. SAFRA REAL ESTATE UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 12 -

Amortisation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

Software
3 years straight line
1.6
Property, plant and equipment

Property, plant and equipment are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.

Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

Fixtures, fittings & equipment
3 years straight line

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.

1.7
Non-current investments

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

A subsidiary is an entity controlled by the company. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.

1.8
Impairment of non-current assets

At each reporting period end date, the company reviews the carrying amounts of its tangible and intangible 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.

Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. 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.

J. SAFRA REAL ESTATE UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 13 -
1.9
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.

1.10
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.

Basic financial assets

Basic financial assets, which include trade and other receivables and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.

Impairment of financial assets

Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.

 

Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. 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 profit or loss.

 

If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.

Derecognition of financial assets

Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the company transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.

Classification of financial liabilities

Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.

J. SAFRA REAL ESTATE UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 14 -
Basic financial liabilities

Basic financial liabilities, including trade and other payables, bank loans, loans from fellow group companies and preference shares that are classified as debt, 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 payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

 

Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

 

Trade payables are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade payables are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

Derecognition of financial liabilities

Financial liabilities are derecognised when the company’s contractual obligations expire or are discharged or cancelled.

1.11
Equity instruments

Equity instruments issued by the company are recorded at the proceeds received, net of transaction costs.

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.

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.

J. SAFRA REAL ESTATE UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 15 -
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 stock 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
Retirement benefits

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

1.15
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.

1.16

Consolidated financial statements

The directors have taken exemption under the Companies Act 2006 s.405(3(a)), to not prepare group financial statements on the basis that the company has hindered rights over the subsidiary as a result of long-term restrictions placed on the subsidiary by other entities in the group structure.

2
Revenue

An analysis of the company's revenue is as follows:

2023
2022
£
£
Revenue analysed by class of business
Property and asset management fees
818,050
917,743
2023
2022
£
£
Revenue analysed by geographical market
United Kingdom
818,050
917,743
2023
2022
£
£
Other revenue
Interest income
188
-
J. SAFRA REAL ESTATE UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 16 -
3
Operating profit/(loss)
2023
2022
Operating profit/(loss) for the year is stated after charging/(crediting):
£
£
Exchange (gains)/losses
(7,315)
16,692
Depreciation of owned property, plant and equipment
674
803
4
Auditor's remuneration
2023
2022
Fees payable to the company's auditor and associates:
£
£
For audit services
Audit of the financial statements of the company
8,970
8,620
For other services
All other non-audit services
7,199
5,225
5
Employees

The average monthly number of persons (including directors) employed by the company during the year was:

2023
2022
Number
Number
Administrative staff
2
3

Their aggregate remuneration comprised:

2023
2022
£
£
Wages and salaries
485,000
657,938
Social security costs
71,539
89,942
Pension costs
45,000
45,395
601,539
793,275
6
Directors' remuneration
2023
2022
£
£
Remuneration for qualifying services
485,000
515,000
Company pension contributions to defined contribution schemes
45,000
40,000
530,000
555,000
J. SAFRA REAL ESTATE UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
6
Directors' remuneration
(Continued)
- 17 -
Remuneration disclosed above include the following amounts paid to the highest paid director:
2023
2022
£
£
Remuneration for qualifying services
265,000
257,500
Company pension contributions to defined contribution schemes
10,000
30,000
7
Investment income
2023
2022
£
£
Interest income
Interest on bank deposits
188
-
0
2023
2022
Investment income includes the following:
£
£
Interest on financial assets not measured at fair value through profit or loss
188
-
0
8
Taxation
2023
2022
£
£
Current tax
UK corporation tax on profits for the current period
31,719
-
0

The actual charge for the year can be reconciled to the expected charge/(credit) for the year based on the profit or loss and the standard rate of tax as follows:

2023
2022
£
£
Profit/(loss) before taxation
72,692
(47,063)
Expected tax charge/(credit) based on the standard rate of corporation tax in the UK of 23.52% (2022: 19.00%)
17,097
(8,942)
Tax effect of expenses that are not deductible in determining taxable profit
8,138
-
0
Depreciation on assets not qualifying for tax allowances
158
-
0
Under/(over) provided in prior years
6,326
-
0
Tax losses not recognised
-
0
8,942
Taxation charge for the year
31,719
-
J. SAFRA REAL ESTATE UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 18 -
9
Intangible fixed assets
Software
£
Cost
At 1 January 2023 and 31 December 2023
29,850
Amortisation and impairment
At 1 January 2023 and 31 December 2023
29,850
Carrying amount
At 31 December 2023
-
0
At 31 December 2022
-
0
10
Property, plant and equipment
Fixtures, fittings & equipment
£
Cost
At 1 January 2023
11,294
Disposals
(2,389)
At 31 December 2023
8,905
Depreciation and impairment
At 1 January 2023
10,189
Depreciation charged in the year
674
Eliminated in respect of disposals
(2,389)
At 31 December 2023
8,474
Carrying amount
At 31 December 2023
431
At 31 December 2022
1,105
11
Fixed asset investments
2023
2022
Notes
£
£
Investments in subsidiaries
12
100
100
12
Subsidiaries

Details of the company's subsidiaries at 31 December 2023 are as follows:

J. SAFRA REAL ESTATE UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
12
Subsidiaries
(Continued)
- 19 -
Name of undertaking
Registered office
Nature of business
Class of
% Held
shares held
Direct
JSRE 30 St Mary Axe Management Limited
England & Wales
Property management
Ordinary Shares
100.00

The subsidiary has its registered office at 20 Bury Street, London England EC3A 5AA. The aggregate amount of capital and reserves for the period ended 31 December 2023 amounted to £100.

13
Trade and other receivables
2023
2022
Amounts falling due within one year:
£
£
Trade receivables
248,895
310,035
Other receivables
16,104
-
0
Prepayments and accrued income
73,222
149,124
338,221
459,159
14
Current liabilities
2023
2022
£
£
Trade payables
1,987
2,649
Corporation tax
31,719
-
0
Other taxation and social security
30,543
29,030
Other payables
4,850,741
4,808,437
Accruals and deferred income
414,231
415,498
5,329,221
5,255,614

Other payables includes £4,488,446 (2022: £4,493,970) in respect of rent security deposits. An equivalent amount is included within Cash at Bank and in hand.

15
Deferred taxation

Deferred tax assets and liabilities are offset where the company has a legally enforceable right to do so. The following is the analysis of the deferred tax balances (after offset) for financial reporting purposes:

Liabilities
Liabilities
2023
2022
Balances:
£
£
ACAs
190
190
There were no deferred tax movements in the year.
J. SAFRA REAL ESTATE UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
15
Deferred taxation
(Continued)
- 20 -

The deferred tax liability set out above is expected to reverse within 12 months and relates to accelerated capital allowances that are expected to mature within the same period.

16
Retirement benefit schemes
2023
2022
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
45,000
45,395

The company operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the company in an independently administered fund.

17
Share capital
2023
2022
2023
2022
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary of £1 each
1
1
1
1

The company has one class of ordinary shares which carry no right to fixed income.

18
Related party transactions
Transactions with related parties

During the year the company entered into the following transactions with related parties:

Sales
Sales
2023
2022
£
£
Entities over which the entity has control, joint control or significant influence
386,000
343,000
Other related parties
421,399
474,155
Financing expenses
2023
2022
£
£
Other related parties
4,495
-
J. SAFRA REAL ESTATE UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
18
Related party transactions
(Continued)
- 21 -

The following amounts were outstanding at the reporting end date:

2023
2022
Amounts due to related parties
£
£
Entities with control, joint control or significant influence over the company
304,905
312,320
Entities over which the entity has control, joint control or significant influence
48,000
-

All the balances owed to related parties are interest-free, unsecured and repayable on demand.

The following amounts were outstanding at the reporting end date:

2023
2022
Amounts due from related parties
£
£
Entities over which the entity has control, joint control or significant influence
133,800
96,900
Other related parties
141,271
211,635

All the balances owed to related parties are interest-free, unsecured and repayable on demand.

Other information

Cash and cash equivalents includes amounts held with an entity under mutual control.

19
Ultimate controlling party

The immediate parent company is J.S. Immo Luxembourg SA, a company incorporated in Luxembourg.

The ultimate parent undertaking is JS International Holdings Limited, a company incorporated in the Bahamas. The ultimate controlling party is Ms Vicky Safra and her children.

20
Cash generated from/(absorbed by) operations
2023
2022
£
£
Profit/(loss) for the year after tax
40,973
(47,063)
Adjustments for:
Taxation charged
31,719
-
0
Investment income
(188)
-
0
Depreciation and impairment of property, plant and equipment
674
803
Movements in working capital:
Decrease/(increase) in trade and other receivables
120,938
(228,687)
Increase/(decrease) in trade and other payables
41,888
(786,468)
Cash generated from/(absorbed by) operations
236,004
(1,061,415)
J. SAFRA REAL ESTATE UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 22 -
21
Analysis of changes in net funds
1 January 2023
Cash flows
31 December 2023
£
£
£
Cash at bank and in hand
4,716,568
236,192
4,952,760
22
Prior period adjustment
Reconciliation of changes in equity
1 January
31 December
2022
2022
Notes
£
£
Adjustments to prior year
Accrued revenue recognition
1
-
26,897
Equity as previously reported
(31,809)
(105,769)
Equity as adjusted
(31,809)
(78,872)
Analysis of the effect upon equity
Retained earnings
-
26,897
Reconciliation of changes in loss for the previous financial period
2022
Notes
£
Adjustments to prior year
Accrued revenue recognition
1
26,897
Loss as previously reported
(73,960)
Loss as adjusted
(47,063)
Notes to reconciliation
Accrued revenue recognition

This year the revenue recognition process was reviewed by management, with an impact on the previous year in respect of revenue cut off. Recognition of some service revenue lines in the previous year had been by reference to certain reporting milestones, rather than by reference to the FRS 102 revenue recognition principles. As such, an adjustment increasing revenue for the period to 31 December 2022 and the other debtors balance as at 31 December 2022 by £26,897 has been processed through these financial statements.

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