Company registration number 13044572 (England and Wales)
STORE 2 CAPITAL LTD
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
STORE 2 CAPITAL LTD
CONTENTS
Page
Statement of financial position
1 - 2
Statement of changes in equity
3
Statement of cash flows
4
Notes to the financial statements
5 - 19
STORE 2 CAPITAL LTD
STATEMENT OF FINANCIAL POSITION
AS AT
31 DECEMBER 2023
31 December 2023
- 1 -
2023
2022
Notes
£
£
Non-current assets
Property, plant and equipment
9
7,673
2,150
Investment property
10
12,924,779
10,371,357
Deferred tax asset
17
17,600
12,950,052
10,373,507
Current assets
Inventories
11
7,207
880
Trade and other receivables
12
189,079
214,484
Cash and cash equivalents
11,825
179,851
208,111
395,215
Current liabilities
Trade and other payables
15
3,433,861
2,700,199
Current tax liabilities
5,432
15,608
Deferred revenue
18
17,487
31,869
3,456,780
2,747,676
Net current liabilities
(3,248,669)
(2,352,461)
Non-current liabilities
Borrowings
14
1,280,904
1,296,279
Lease liabilities
16
174,834
Deferred tax liabilities
17
2,058,991
1,621,796
3,514,729
2,918,075
Net assets
6,186,654
5,102,971
Equity
Called up share capital
20
10
10
Revaluation reserve
22
6,176,970
5,065,386
Retained earnings
9,674
37,575
Total equity
6,186,654
5,102,971
The directors of the company have elected not to include a copy of the income statement within the financial statements.
STORE 2 CAPITAL LTD
STATEMENT OF FINANCIAL POSITION (CONTINUED)
AS AT
31 DECEMBER 2023
31 December 2023
- 2 -
For the period ended 31 December 2023 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.
The directors acknowledge their responsibilities for complying with the requirements of the Companies Act 2006 with respect to accounting records and the preparation of financial statements.
The members have not required the company to obtain an audit of its financial statements for the year in question in accordance with section 476.
These financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies regime.
The financial statements were approved by the board of directors and authorised for issue on 30 September 2024 and are signed on its behalf by:
I Muniandy
Director
Company registration number 13044572
STORE 2 CAPITAL LTD
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2023
- 3 -
Share capital
Revaluation reserve
Retained earnings
Total
£
£
£
£
Balance at 1 December 2021
10
58,747
58,757
Period ended 31 December 2022:
Profit and total comprehensive income for the period
-
-
5,044,214
5,044,214
Transactions with owners in their capacity as owners:
Transfer to revaluation reserve
-
5,065,386
(5,065,386)
-
Balance at 31 December 2022
10
5,065,386
37,575
5,102,971
Year ended 31 December 2023:
Profit and total comprehensive income for the year
-
-
1,083,683
1,083,683
Transactions with owners in their capacity as owners:
Transfer to revaluation reserve
-
1,111,584
(1,111,584)
-
Balance at 31 December 2023
10
6,176,970
9,674
6,186,654
STORE 2 CAPITAL LTD
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2023
- 4 -
2023
2022
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
25
832,232
1,626,272
Interest paid
(135,973)
(62,368)
Income taxes paid
(10,176)
Net cash inflow from operating activities
686,083
1,563,904
Investing activities
Purchase of property, plant and equipment
(6,117)
(1,462,896)
Purchase of investment property
(1,007,451)
Net cash used in investing activities
(1,013,568)
(1,462,896)
Financing activities
Repayment of bank loans
(15,375)
(4,016)
Gain on financial instrument
47,747
Payment of lease liabilities
174,834
Net cash generated from financing activities
159,459
43,731
Net (decrease)/increase in cash and cash equivalents
(168,026)
144,739
Cash and cash equivalents at beginning of year
179,851
35,112
Cash and cash equivalents at end of year
11,825
179,851
STORE 2 CAPITAL LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
- 5 -
1
Accounting policies
Company information
Store 2 Capital Ltd is a private company limited by shares incorporated in England and Wales. The registered office is C/O UK Storage Consultancy Limited, Wework 184 Shepherds Bush Road, London, W6 7NL. The company's principal activities and nature of its operations are disclosed in the directors' report.
1.1
Reporting period
These financial statements are prepared as at 31 December 2023 and cover the 12 month period from 1 January 2023 to 31 December 2023. The comparative figures cover the 13 month period from 1 December 2021 to 31 December 2022.
1.2
Accounting convention
The financial statements have been prepared in accordance with International Financial Reporting Standards (IFRS) as adopted for use in the United Kingdom and with those parts of the Companies Act 2006 applicable to companies reporting under IFRS, except as otherwise stated.
The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.
The financial statements have been prepared under the historical cost convention, modified to include the revaluation of investment properties and certain financial instruments at fair value. The principal accounting policies adopted are set out below.
The company has taken advantage of the exemption under section 400 of the Companies Act 2006 not to prepare consolidated accounts. The financial statements present information about the company as an individual entity and not about its group.
Store 2 Capital Ltd is a wholly owned subsidiary of Padlock UK Bidco 7 and the results of Store 2 Capital Ltd are included in the consolidated financial statements of Padlock Partners UK Fund III which are available online from Sedar.com.
1.3
Going concern
The directors have at the time of approving the financial statements, a reasonable expectation that the truecompany has adequate resources to continue in operational existence for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.
1.4
Revenue
Revenue is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business, and is shown net of VAT and other sales related taxes. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.
The company recognises revenue from the following major sources:
Rental income
Storage insurance
Merchandise
Fee income
The nature, timing of satisfaction of performance obligations and significant payment terms of the company's major sources of revenue are as follows:
STORE 2 CAPITAL LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 6 -
Rental income
Rental income is recognised over the period for which the storage room is occupied by the customer on a straight-line basis. Any opening offer discounts are spread evenly over the term of the discounted period.
Storage insurance
Insurance income is recognised on a straight line basis over the period a customer occupies their room.
Merchandise
Merchandise sales are recognised at the point of sales as there is no further ongoing performance obligation beyond the point of sale.
Fee income
Fee income, which is principally rental income from tenants of properties awaiting development, is recognised on a straight-line basis over the period in which it is earned.
1.5
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:
Plant and equipment
20 years straight line
Computers
33% reducing balance
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 recognised in the income statement.
Properties whose fair value can be measured reliably are held under the revaluation model and are carried at a revalued amount, being their fair value at the date of valuation less any subsequent accumulated depreciation and subsequent accumulated impairment losses. The fair value of the land and buildings is usually considered to be their market value.
Revaluation gains and losses are recognised in other comprehensive income and accumulated in equity, except to the extent that a revaluation gain reverses a revaluation loss previously recognised in profit or loss or a revaluation loss exceeds the accumulated revaluation gains recognised in equity; such gains and losses are recognised in profit or loss.
1.6
Investment properties
Investment property, which is property held to earn rentals and/or for capital appreciation, is initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses. The surplus or deficit on revaluation is recognised in profit or loss.
1.7
Inventories
Inventories are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the inventories to their present location and condition.
Inventories held for distribution at no or nominal consideration are measured at the lower of cost and replacement cost, adjusted where applicable for any loss of service potential.
STORE 2 CAPITAL LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 7 -
Net realisable value is the estimated selling price less all estimated costs of completion and costs to be incurred in marketing, selling and distribution.
1.8
Cash and cash equivalents
Cash and cash equivalents include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.
1.9
Financial assets
Financial assets are recognised in the company's statement of financial position when the company becomes party to the contractual provisions of the instrument. Financial assets are classified into specified categories, depending on the nature and purpose of the financial assets.
At initial recognition, financial assets classified as fair value through profit and loss are measured at fair value and any transaction costs are recognised in profit or loss. Financial assets not classified as fair value through profit and loss are initially measured at fair value plus transaction costs.
Financial assets at fair value through profit or loss
When any of the above-mentioned conditions for classification of financial assets is not met, a financial asset is classified as measured at fair value through profit or loss. Financial assets measured at fair value through profit or loss are recognized initially at fair value and any transaction costs are recognised in profit or loss when incurred. A gain or loss on a financial asset measured at fair value through profit or loss is recognised in profit or loss, and is included within finance income or finance costs in the statement of income for the reporting period in which it arises.
Financial assets held at amortised cost
Financial instruments are classified as financial assets measured at amortised cost where the objective is to hold these assets in order to collect contractual cash flows, and the contractual cash flows are solely payments of principal and interest. They arise principally from the provision of goods and services to customers (eg trade receivables). They are initially recognised at fair value plus transaction costs directly attributable to their acquisition or issue, and are subsequently carried at amortised cost using the effective interest rate method, less provision for impairment where necessary.
Impairment of financial assets
Financial assets carried at amortised cost and FVOCI are assessed for indicators of impairment at each reporting end date.
The expected credit losses associated with these assets are estimated on a forward-looking basis. A broad range of information is considered when assessing credit risk and measuring expected credit losses, including past events, current conditions, and reasonable and supportable forecasts that affect the expected collectability of the future cash flows of the instrument.
Derecognition of financial assets
Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire, or when it transfers the financial asset and substantially all the risks and rewards of ownership to another entity.
1.10
Financial liabilities
The company recognises financial debt when the company becomes a party to the contractual provisions of the instruments. Financial liabilities are classified as either 'financial liabilities at fair value through profit or loss' or 'other financial liabilities'.
STORE 2 CAPITAL LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 8 -
Other financial liabilities
Other financial liabilities, including borrowings, trade payables and other short-term monetary liabilities, are initially measured at fair value net of transaction costs directly attributable to the issuance of the financial liability. They are subsequently measured at amortised cost using the effective interest method. For the purposes of each financial liability, interest expense includes initial transaction costs and any premium payable on redemption, as well as any interest or coupon payable while the liability is outstanding.
Derecognition of financial liabilities
Financial liabilities are derecognised when, and only when, the company’s obligations are discharged, cancelled, or they expire.
1.11
Equity instruments
Equity instruments issued by the company are recorded at the proceeds received, net of direct issue costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.
1.12
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 is the tax expected to be payable or recoverable on differences between the carrying amounts of assets and liabilities in the financial statements and the corresponding tax bases used in the computation of taxable profit, and is accounted for using the balance sheet liability method. Deferred tax liabilities are generally recognised for all taxable temporary differences and deferred tax assets are recognised to the extent that it is probable that taxable profits will be available against which deductible temporary differences can be utilised. Such assets and liabilities are not recognised if the temporary difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.
The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the income statement, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset when the company has a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.
1.13
Employee benefits
The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of inventories or non-current assets.
The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.
Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.
STORE 2 CAPITAL LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 9 -
1.14
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
1.15
Leases
At inception, the company assesses whether a contract is, or contains, a lease within the scope of IFRS 16. A contract is, or contains, a lease if the contract conveys the right to control the use of an identified asset for a period of time in exchange for consideration. Where a tangible asset is acquired through a lease, the company recognises a right-of-use asset and a lease liability at the lease commencement date. Right-of-use assets are included within property, plant and equipment, apart from those that meet the definition of investment property.
The right-of-use asset is initially measured at cost, which comprises the initial amount of the lease liability adjusted for any lease payments made at or before the commencement date plus any initial direct costs and an estimate of the cost of obligations to dismantle, remove, refurbish or restore the underlying asset and the site on which it is located, less any lease incentives received.
The right-of-use asset is subsequently depreciated using the straight-line method from the commencement date to the earlier of the end of the useful life of the right-of-use asset or the end of the lease term. The estimated useful lives of right-of-use assets are determined on the same basis as those of other property, plant and equipment. The right-of-use asset is periodically reduced by impairment losses, if any, and adjusted for certain remeasurements of the lease liability.
The lease liability is initially measured at the present value of the lease payments that are unpaid at the commencement date, discounted using the interest rate implicit in the lease or, if that rate cannot be readily determined, the company's incremental borrowing rate. Lease payments included in the measurement of the lease liability comprise fixed payments, variable lease payments that depend on an index or a rate, amounts expected to be payable under a residual value guarantee, and the cost of any options that the company is reasonably certain to exercise, such as the exercise price under a purchase option, lease payments in an optional renewal period, or penalties for early termination of a lease.
The lease liability is measured at amortised cost using the effective interest method. It is remeasured when there is a change in: future lease payments arising from a change in an index or rate; the company's estimate of the amount expected to be payable under a residual value guarantee; or the company's assessment of whether it will exercise a purchase, extension or termination option. When the lease liability is remeasured in this way, a corresponding adjustment is made to the carrying amount of the right-of-use asset, or is recorded in profit or loss if the carrying amount of the right-of-use asset has been reduced to zero.
The company has elected not to recognise right-of-use assets and lease liabilities for short-term leases of machinery that have a lease term of 12 months or less, or for leases of low-value assets including IT equipment. The payments associated with these leases are recognised in profit or loss on a straight-line basis over the lease term.
1.16
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.
STORE 2 CAPITAL LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 10 -
2
Revenue
Year
Period
ended
ended
31 December
30 November
2023
2022
£
£
Revenue analysed by class of business
Rental income
416,743
387,521
Storage insurance
36,228
24,559
Merchandise
2,670
3,687
Fee income
2,795
3,450
458,436
419,217
3
Operating profit
Year
Period
ended
ended
31 December
30 November
2023
2022
Operating profit for the year is stated after charging/(crediting):
£
£
Depreciation of property, plant and equipment
594
311
Depreciation of investment property
2,807
Amortisation of intangible assets (included within administrative expenses)
-
25,000
Cost of inventories recognised as an expense
2,004
2,076
4
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2023
2022
Number
Number
5
4
Their aggregate remuneration comprised:
Year
Period
ended
ended
31 December
30 November
2023
2022
£
£
Wages and salaries
54,578
64,049
Social security costs
749
-
Pension costs
922
1,324
56,249
65,373
STORE 2 CAPITAL LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 11 -
5
Finance costs
Year
Period
ended
ended
31 December
30 November
2023
2022
£
£
Interest on bank overdrafts and loans
123,398
62,368
Interest on lease liabilities
12,575
-
Total interest expense
135,973
62,368
6
Other gains and losses
Year
Period
ended
ended
31 December
30 November
2023
2022
£
£
Changes in the fair value of investment properties
1,548,778
6,687,182
Gain on financial instrument
-
47,747
1,548,778
6,734,929
STORE 2 CAPITAL LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 12 -
7
Income tax expense
2023
2022
£
£
Current tax
UK corporation tax on profits for the current period
15,608
Deferred tax
Origination and reversal of temporary differences
419,595
1,621,796
Total tax charge
419,595
1,637,404
The charge for the year can be reconciled to the profit per the income statement as follows:
Year
Period
ended
ended
31 December
30 November
2023
2022
£
£
Profit before taxation
1,503,278
6,681,618
Expected tax charge based on a corporation tax rate of 25.00% (2022: 25.00%)
375,820
1,670,405
Effect of expenses not deductible in determining taxable profit
917
5,032
Utilisation of tax losses not previously recognised
(1,380)
Effect of change in UK corporation tax rate
(7,615)
Group relief
(4,094)
Permanent capital allowances in excess of depreciation
(2,969)
(23,672)
Other permanent differences
(1,272)
Deferred tax adjustments in respect of prior years
50,000
Trade intangible fixed asset debits on capital items
(4,063)
Capitalised revenue expenditure allowable on accounts basis
(110)
Taxation charge for the year
419,595
1,637,404
STORE 2 CAPITAL LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 13 -
8
Impairments
Impairment tests have been carried out where appropriate and the following impairment losses have been recognised in profit or loss:
Year
Period
ended
ended
31 December
31 December
2023
2022
£
£
In respect of:
Goodwill
200,000
Recognised in:
Administrative expenses
-
200,000
9
Property, plant and equipment
Freehold land and buildings
Plant and equipment
Computers
Total
£
£
£
£
Cost
At 1 December 2021
2,221,432
1,470
944
2,223,846
Additions
1,462,743
153
1,462,896
Transfer to investment property
(3,684,175)
(3,684,175)
At 31 December 2022
1,623
944
2,567
Additions
273
5,844
6,117
At 31 December 2023
1,896
6,788
8,684
Accumulated depreciation and impairment
At 1 December 2021
31
75
106
Charge for the year
78
233
311
At 31 December 2022
109
308
417
Charge for the year
340
254
594
At 31 December 2023
449
562
1,011
Carrying amount
At 31 December 2023
-
1,447
6,226
7,673
At 31 December 2022
-
1,514
636
2,150
STORE 2 CAPITAL LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 14 -
10
Investment property
2023
2022
£
£
Cost
At 1 January 2023
10,371,357
Addition through subsequent expenditure
1,007,451
Transfer from freehold property
3,684,175
Fair value adjustment
1,548,778
6,687,182
At 31 December 2023
12,927,586
10,371,357
Accumulated depreciation
Charge for the year
2,807
-
At 31 December 2023
2,807
Carrying value
At 31 December 2023
12,924,779
10,371,357
At 31 December 2022
10,371,357
10,371,357
Of the total investment property cost above, £175,259 is held as a right-of-use asset.
11
Inventories
2023
2022
£
£
Raw materials
7,207
880
12
Trade and other receivables
2023
2022
£
£
VAT recoverable
102,916
145,754
Amounts owed by fellow group undertakings
37,030
38,448
Other receivables
13,000
13,000
Prepayments
36,133
17,282
189,079
214,484
13
Trade receivables - credit risk
Fair value of trade receivables
The directors consider that the carrying amount of trade and other receivables is approximately equal to their fair value.
STORE 2 CAPITAL LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
13
Trade receivables - credit risk
(Continued)
- 15 -
No significant receivable balances are impaired at the reporting end date.
STORE 2 CAPITAL LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 16 -
14
Borrowings
Non-current
2023
2022
£
£
Borrowings held at amortised cost:
Bank loans
1,280,904
1,296,279
Borrowings comprises a bank loan that incurs interest at 4.75% above the BoE base rate (3.50% at the balance sheet date) per annum and is to be repaid in monthly instalments of principal and interest. The total loan period is 23 years and 6 months. There are fixed and floating charges over the investment property and undertakings of the company.
15
Trade and other payables
2023
2022
£
£
Trade payables
78,055
957,688
Amounts owed to fellow group undertakings
3,322,657
1,727,696
Accruals
18,282
5,548
Other payables
14,867
9,267
3,433,861
2,700,199
16
Lease liabilities
2023
2022
Maturity analysis
£
£
Within one year
13,000
-
In two to five years
52,000
-
In over five years
530,756
-
Total undiscounted liabilities
595,756
-
Future finance charges and other adjustments
(420,922)
-
Lease liabilities in the financial statements
174,834
-
Lease liabilities are classified based on the amounts that are expected to be settled within the next 12 months and after more than 12 months from the reporting date, as follows:
2023
2022
£
£
Non-current liabilities
174,834
STORE 2 CAPITAL LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
16
Lease liabilities
(Continued)
- 17 -
2023
2022
Amounts recognised in profit or loss include the following:
£
£
Interest on lease liabilities
12,575
-
The above lease is in respect of the right-of-use asset held within Investment Property.
17
Deferred taxation
2023
2022
£
£
Deferred tax liabilities
2,058,991
1,621,796
Deferred tax assets
(17,600)
2,041,391
1,621,796
Deferred tax assets are expected to be recovered after more than one year
The following are the major deferred tax liabilities and assets recognised by the company and movements thereon during the current and prior reporting period.
Tax losses
Revaluation
Total
£
£
£
Balance at 1 January 2022
Deferred tax movements in prior year
Charge/(credit) to profit or loss
-
1,621,796
1,621,796
Liability at 1 January 2023
1,621,796
1,621,796
Deferred tax movements in current year
Charge/(credit) to profit or loss
(17,600)
437,195
419,595
Liability at 31 December 2023
2,058,991
2,058,991
Asset at 31 December 2023
(17,600)
(17,600)
18
Deferred revenue
2023
2022
£
£
Arising from
17,487
31,869
All deferred revenues are expected to be settled within 12 months from the reporting date.
STORE 2 CAPITAL LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 18 -
19
Retirement benefit schemes
2023
2022
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
922
1,324
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.
20
Share capital
2023
2022
2023
2022
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
10
10
10
10
21
Capital risk management
The company is not subject to any externally imposed capital requirements.
22
Revaluation reserve
2023
2022
£
£
At the beginning of the year
5,065,386
Transfer to retained earnings
1,111,584
5,065,386
At the end of the year
6,176,970
5,065,386
The transfer from retained earnings comprises of £1,548,778 revaluation gain on the investment property, offset by the deferred tax impact of £437,194.
23
Related party transactions
During the year, Store 2 Capital Limited made purchases in management services totalling £24,640 (2022: £Nil) from Padlock UK Bidco 2 Limited.
During the year, Store 2 Capital Limited made purchases in management services totalling £60,000 (2022: £Nil) from Padlock UK Bidco 7 Limited.
24
Controlling party
Store 2 Capital Ltd is a wholly owned subsidiary of Padlock UK Bidco 7. The ultimate parent is Padlock Partners UK Fund III, a Canadian entity.
STORE 2 CAPITAL LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 19 -
25
Cash generated from operations
2023
2022
£
£
Profit for the year before income tax
1,503,278
6,681,618
Adjustments for:
Finance costs
135,973
62,368
Fair value gain on investment properties
(1,548,778)
(6,687,182)
Amortisation and impairment of intangible assets
-
225,000
Depreciation and impairment of property, plant and equipment
594
311
Impairment of investment properties
2,807
Other gains and losses
-
(47,747)
Movements in working capital:
(Increase)/decrease in inventories
(6,327)
346
Increase in trade and other receivables
(17,433)
(66,012)
Increase in trade and other payables
776,500
1,461,985
Decrease in deferred revenue outstanding
(14,382)
(4,415)
Cash generated from operations
832,232
1,626,272
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