Company registration number 12709749 (England and Wales)
PADLOCK UK BIDCO 2 LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
PADLOCK UK BIDCO 2 LIMITED
COMPANY INFORMATION
Directors
M Kurschat
J Stevenson
I Muniandy
(Appointed 20 March 2024)
Secretary
M Mason
Company number
12709749
Registered office
C/O Uk Storage Consultancy Limited
Wework 184 Shepherds Bush Road
London
W6 7NL
PADLOCK UK BIDCO 2 LIMITED
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 - 15
PADLOCK UK BIDCO 2 LIMITED
STATEMENT OF FINANCIAL POSITION
AS AT
31 DECEMBER 2023
31 December 2023
- 1 -
2023
2022
Notes
£
£
Non-current assets
Investments
4
11,944,784
11,944,784
Deferred tax asset
10
500,700
190,036
12,445,484
12,134,820
Current assets
Trade and other receivables
6
14,886,975
13,700,624
Cash and cash equivalents
1,680,605
2,363,297
Derivative financial instruments
151,791
474,670
16,719,371
16,538,591
Current liabilities
Trade and other payables
9
2,656,927
4,382,879
Net current assets
14,062,444
12,155,712
Non-current liabilities
Borrowings
8
17,843,832
13,576,551
Net assets
8,664,096
10,713,981
Equity
Called up share capital
11
12,969,358
12,969,358
Retained earnings
(4,305,262)
(2,255,377)
Total equity
8,664,096
10,713,981

The directors of the company have elected not to include a copy of the income statement within the financial statements.

For the year 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:
PADLOCK UK BIDCO 2 LIMITED
STATEMENT OF FINANCIAL POSITION (CONTINUED)
AS AT
31 DECEMBER 2023
31 December 2023
- 2 -
I  Muniandy
Director
Company Registration No. 12709749
PADLOCK UK BIDCO 2 LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2023
- 3 -
Share capital
Retained earnings
Total
Notes
£
£
£
Balance at 1 January 2022
17,969,358
(1,133,380)
16,835,978
Year ended 31 December 2022:
Loss and total comprehensive income for the year
-
(1,121,997)
(1,121,997)
Transactions with owners in their capacity as owners:
Reduction in shares
11
(5,000,000)
-
(5,000,000)
Balance at 31 December 2022
12,969,358
(2,255,377)
10,713,981
Year ended 31 December 2023:
Loss and total comprehensive income for the year
-
(2,049,885)
(2,049,885)
Balance at 31 December 2023
12,969,358
(4,305,262)
8,664,096
PADLOCK UK BIDCO 2 LIMITED
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2023
- 4 -
2023
2022
Notes
£
£
£
£
Cash flows from operating activities
Cash (absorbed by)/generated from operations
15
(2,860,456)
2,940,983
Interest paid
(2,095,271)
(1,215,850)
Net cash (outflow)/inflow from operating activities
(4,955,727)
1,725,133
Investing activities
Interest received
5,754
239
Net cash generated from investing activities
5,754
239
Financing activities
Capital redemption
-
0
(5,000,000)
Proceeds of new bank loans
4,267,281
3,023,632
Net cash generated from/(used in) financing activities
4,267,281
(1,976,368)
Net decrease in cash and cash equivalents
(682,692)
(250,996)
Cash and cash equivalents at beginning of year
2,363,297
2,614,293
Cash and cash equivalents at end of year
1,680,605
2,363,297
PADLOCK UK BIDCO 2 LIMITED
STATEMENT OF CASH FLOWS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 5 -
1
Critical accounting estimates and judgements

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, if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods.

 

The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are outlined below.

Critical judgements
Valuation of Investment Property

The determination of the fair value of investment property requires the use of estimates such as future cash flows from assets (i.e. tenant profiles, future revenue streams and overall condition of the property), discount rates applicable to those assets’ cash flows, identification of comparable properties and capitalization rates. These estimates are based on market conditions existing at the reporting date.

 

The following approach is used by management, together with the appraisals, in determination of the fair value of the investment property.

 

The Income Approach derives market value by estimating the future cash flows that will be generated by the property and then applying an appropriate capitalization rate or discount rate to those cash flows. This approach can utilize the direct capitalization method and/or the discounted cash flow analysis.

Leases

The company recognises and measures its leases in accordance with IFRS 16, Leases. The company is party to lease contracts for premises. The company determines if an arrangement is a lease, or contains a lease, at inception of a contract and when the terms of an existing contract are changed. The company recognizes a lease liability and a right-of-use asset at the commencement date of the lease. The lease liability is initially and subsequently recognized based on the present value of its future lease payments. The discount rate is the implicit rate if it is readily determinable or otherwise the company uses its incremental borrowing rate. The implicit rate of the lease is not readily determinable and accordingly, the company uses the incremental borrowing rate based on the information available at the commencement date. The company’s incremental borrowing rate for a lease is the rate of interest it would have to pay on a collateralized basis to borrow an amount equal to the lease payments under similar terms and in a similar economic environment.

PADLOCK UK BIDCO 2 LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
- 6 -
2
Accounting policies
Company information

Padlock UK Bidco 2 Limited 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.

2.1
Accounting convention

The financial statements have been prepared in accordance with International Financial Reporting Standards (IFRS) 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, except for the revaluation of investment properrty and derivative financial instruments. 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.

 

Padlock UK Bidco 2 Limited is a wholly owned subsidiary of Padlock UK Holdco 1 Limited and the results of Padlock UK Bidco 2 Limited are included in the consolidated financial statements of Padlock Partners UK Fund I which are available online from Sedar.com.

2.2
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.

2.3
Revenue

Revenue is measured based on the consideration specified in a contract with a customer and excludes amounts collected on behalf of third parties. The company recognises revenue when it transfers control of a product or service to a customer.

 

When cash inflows are deferred and represent a financing arrangement, the fair value of the consideration is the present value of the future receipts. The difference between the fair value of the consideration and the nominal amount received is recognised as interest income.

2.4
Investment properties

Property that is held for long-term rental yields or for capital appreciation or both, and that is not occupied by the company, is classified as investment property. Investment property also includes property that is being constructed or developed for future use as investment property. All leases that meet the definition of investment property are classified as investment property and measured at fair value. Investment property is measured initially at cost, including costs that are directly attributable to the acquisition of the investment property.

PADLOCK UK BIDCO 2 LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
2
Accounting policies
(Continued)
- 7 -

Subsequent to initial recognition, investment properties are measured at fair value. The fair value of investment properties is determined by certified third-party appraisers or by market evidence where available. Gains and losses from changes in the fair value of investment properties are included in profit or loss in the period in which they arise.

 

Subsequent costs are capitalised to the investment property’s carrying amount only when it is probable that future economic benefits associated with the expenditure will flow to the company and the cost of the item can be measured reliably. All other repairs and maintenance costs are expensed when incurred. When part of an investment property is replaced, the carrying amount of the replaced part is derecognised.

An investment property is derecognised upon disposal or when the investment property is permanently withdrawn from use and no future economic benefits are expected. Any gain or loss arising on derecognition of the investment property (calculated as the difference between the net disposal proceeds and the carrying amount of the asset) is included in income or loss in the period in which the investment property is derecognised.

 

Costs incurred in connection with the acquisition of an investment property are recorded as deferred acquisition costs and subsequently capitalised to the investment property once acquired.

 

Investment Properties Under Development

 

Properties under development include properties that are undergoing activities that will take a substantial period of time and effort to complete in order to prepare the property for its intended use to earn rental income. The cost of development properties includes the cost of acquiring the property and direct development costs, realty taxes and borrowing costs directly attributable to the development. Capitalisation of costs continue until all activities necessary to prepare the property for its intended use as a rental property are substantially complete. Land held for development is transferred to investment properties under development when development type of activities begin that will change the property condition.

2.5
Non-current investments

Interests in subsidiaries, are initially measured at cost and subsequently measured at fair value less any accumulated impairment losses. The investments are revalued at each reporting date and any gains or losses are recognised immediately in the profit and 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.

2.6
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.

2.7
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.

PADLOCK UK BIDCO 2 LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
2
Accounting policies
(Continued)
- 8 -
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.

Financial assets at fair value through other comprehensive income

Debt instruments are classified as financial assets measured at fair value through other comprehensive income where the financial assets are held within the company’s business model whose objective is achieved by both collecting contractual cash flows and selling financial assets, and the contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding.

 

A debt instrument measured at fair value through other comprehensive income is recognised initially at fair value plus transaction costs directly attributable to the asset. After initial recognition, each asset is measured at fair value, with changes in fair value included in other comprehensive income. Accumulated gains or losses recognised through other comprehensive income are directly transferred to profit or loss when the debt instrument is derecognised.

The company has made an irrevocable election to recognize changes in fair value of investments in equity instruments through other comprehensive income, not through profit or loss. A gain or loss from fair value changes will be shown in other comprehensive income and will not be reclassified subsequently to profit or loss. Equity instruments measured at fair value through other comprehensive income are recognized initially at fair value plus transaction cost directly attributable to the asset. After initial recognition, each asset is measured at fair value, with changes in fair value included in other comprehensive income. Accumulated gains or losses recognized through other comprehensive income are directly transferred to retained earnings when the equity instrument is derecognized or its fair value substantially decreased. Dividends are recognized as finance income in profit or loss.

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.

PADLOCK UK BIDCO 2 LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
2
Accounting policies
(Continued)
- 9 -
2.8
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'.

Financial liabilities at fair value through profit or loss

Financial liabilities are classified as measured at fair value through profit or loss when the financial liability is held for trading. A financial liability is classified as held for trading if:

 

 

Financial liabilities at fair value through profit or loss are stated at fair value with any gains or losses arising on remeasurement recognised in profit or loss.

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.

2.9
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.

2.10
Derivatives

Derivatives are initially recognised at fair value at the date a derivative contract is entered into and are subsequently remeasured to fair value at each reporting end date. The resulting gain or loss is recognised in profit or loss immediately unless the derivative is designated and effective as a hedging instrument, in which event the timing of the recognition in profit or loss depends on the nature of the hedge relationship.

 

A derivative with a positive fair value is recognised as a financial asset, whereas a derivative with a negative fair value is recognised as a financial liability. A derivative is presented as a non-current asset or liability if the remaining maturity of the instrument is more than 12 months and it is not expected to be realised or settled within 12 months. Other derivatives are classified as current.

2.11
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.

PADLOCK UK BIDCO 2 LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
2
Accounting policies
(Continued)
- 10 -
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.

2.12
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.

3
Employees

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

2023
2022
Number
Number
3
3
PADLOCK UK BIDCO 2 LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 11 -
4
Investments
Current
Non-current
2023
2022
2023
2022
£
£
£
£
Investments in subsidiaries
-
0
-
0
11,944,784
11,944,784
Fair value of financial assets carried at amortised cost

The directors consider that the carrying amounts of financial assets carried at amortised cost in the financial statements approximate to their fair values.

5
Subsidiaries

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

Name of undertaking
Registered office
Class of
% Held
shares held
Direct
Voting
Padlock Wimbledon Limited
184 Shepherds Bush Road, London
Ordinary Shares
100.00
100.00
Bebe Storage Limited
184 Shepherds Bush Road, London
Ordinary shares
100.00
100.00
Happy Lock Limited
184 Shepherds Bush Road, London
Ordinary Shares
100.00
100.00
Leighton Buzzard Self Storage Limited
184 Shepherds Bush Road, London
Ordinary Shares
100.00
100.00
Letchworth Self Storage Limited
184 Shepherds Bush Road, London
Ordinary Shares
0
100.00
Evin Property Investments Limited
184 Shepherds Bush Road, London
Ordinary
100.00
-
6
Trade and other receivables
2023
2022
£
£
Trade receivables
67,413
16,681
VAT recoverable
-
13,831
Amounts owed by fellow group undertakings
14,687,946
13,667,862
Other receivables
129,366
-
Prepayments
2,250
2,250
14,886,975
13,700,624
7
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.

No significant receivable balances are impaired at the reporting end date.

PADLOCK UK BIDCO 2 LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 12 -
8
Borrowings
Non-current
2023
2022
£
£
Borrowings held at amortised cost:
Bank loans
17,843,832
13,576,551
2023
2022
£
£
Secured borrowings included above:
Bank loan
17,975,263
14,058,496
Loan costs
(131,431)
(481,945)
17,843,832
13,576,551

Borrowings comprise of a bank loan with a term of 3 years and interest rate of 6.25% plus the higher of SONIA and 0.50%. The loan is secured by a fixed charge over the properties in the subsidiaries and floating charge over investments, plant and machinery and insurance provisions.

9
Trade and other payables
2023
2022
£
£
Trade payables
5,850
48,000
Amounts owed to fellow group undertakings
2,085,148
3,976,857
Accruals
518,623
358,022
VAT payable
47,306
-
2,656,927
4,382,879
Deferred tax assets are expected to be recovered after more than one year
PADLOCK UK BIDCO 2 LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
Deferred tax assets are expected to be recovered after more than one year
(Continued)
- 13 -
10
Deferred taxation

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
£
Balance at 1 January 2022
-
0
Deferred tax movements in prior year
Charge/(credit) to profit or loss
(190,036)
Asset at 1 January 2023
(190,036)
Deferred tax movements in current year
Charge/(credit) to profit or loss
(310,664)
Asset at 31 December 2023
(500,700)
11
Share capital
2023
2022
2023
2022
Ordinary share capital
Number
Number
£
£
Authorised
Ordinary Shares of £1 each
12,969,358
12,969,358
12,969,358
12,969,358
Issued and fully paid
Ordinary Shares of £1 each
12,969,358
12,969,358
12,969,358
12,969,358

During the year ended 31 December 2022, the company reduced Ordinary Shares by 5,000,000 shares with a par value of £1 through a capital reduction.

12
Capital risk management

The company is not subject to any externally imposed capital requirements.

13
Related party transactions
PADLOCK UK BIDCO 2 LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
13
Related party transactions
(Continued)
- 14 -

During the year, Padlock UK Bidco 2 Limited made sales totalling £43,630 (2022: £3,420) to Bebe Storage Limited.

 

During the year, Padlock UK Bidco 2 Limited made sales totalling £46,771 (2022: £5,661) to Happy Lock Limited.

 

During the year, Padlock UK Bidco 2 Limited made sales totalling £55,142 (2022: £13,733) to Evin Property Investments Limited.

 

During the year, Padlock UK Bidco 2 Limited made sales in insurance recharges totalling £16,763 (2022: £nil) to Padlock UK Bidco 4 Limited.

 

During the year, Padlock UK Bidco 2 Limited made sales totalling £52,409 (2022: £167) to Padlock Wimbledon Limited.

 

During the year, Padlock UK Bidco 2 Limited made sales totalling £96,205 (2022: £16,489) to Leighton Buzzard Self Storage Limited.

 

During the year, Padlock UK Bidco 2 Limited made sales in insurance recharges totalling £28,903 (2022: £nil) to Padlock Southend Limited.

 

During the year, Padlock UK Bidco 2 Limited made sales in insurance recharges totalling £24,640 (2022: £nil) to Store 2 Capital Limited.

 

During the year, Padlock UK Bidco 2 Limited made sales in insurance recharges totalling £14,325 (2022: £nil) to Padlock Huntingdon Limited.

 

During the year, Padlock UK Bidco 2 Limited made sales in insurance recharges totalling £17,564 (2022: £nil) to Padlock UK Bidco 3 Limited.

 

During the year, Padlock UK Bidco 2 Limited made sales in insurance recharges totalling £21,080 (2022: £nil) to Padlock Dunstable Limited.

 

During the year, Padlock UK Bidco 2 Limited made sales in insurance recharges totalling £21,297 (2022: £nil) to Padlock Woking Limited.

 

During the year, Padlock UK Bidco 2 Limited made sales in insurance recharges totalling £11,677 (2022: £nil) to Padlock Watford Limited.

 

During the year, Padlock UK Bidco 2 Limited made sales in insurance recharges totalling £18,412 (2022: £nil) to Padlock Edmonton Limited.

 

During the year, Padlock UK Bidco 2 Limited incurred purchases in management services totalling £120,000 (2022: £40,000) from Padlock UK Holdco 1 Limited.

14
Controlling party

Padlock UK Bidco 2 Limited is a wholly owned subsidiary of Padlock UK Holdco 1. The ultimate parent is Padlock Partners UK Fund I, a Canadian entity.

PADLOCK UK BIDCO 2 LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 15 -
15
Cash (absorbed by)/generated from operations
2023
2022
£
£
Loss for the year after tax
(2,049,885)
(1,121,997)
Adjustments for:
Taxation credited
(310,664)
(190,036)
Finance costs
2,478,637
1,618,006
Investment income
(5,754)
(239)
Amortisation of financing costs
(383,366)
(402,156)
Other gains and losses
322,879
(474,670)
Movements in working capital:
Increase in trade and other receivables
(1,200,182)
(490,034)
(Decrease)/increase in trade and other payables
(1,712,121)
4,002,109
Cash (absorbed by)/generated from operations
(2,860,456)
2,940,983
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