Company registration number 14162065 (England and Wales)
PADLOCK SOUTHEND LTD
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
PADLOCK SOUTHEND 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 - 12
PADLOCK SOUTHEND LTD
STATEMENT OF FINANCIAL POSITION
AS AT
31 DECEMBER 2023
31 December 2023
- 1 -
2023
2022
Notes
£
£
Non-current assets
Investment property
4
6,050,000
2,257
Deferred tax asset
9
41,485
-
0
6,091,485
2,257
Current assets
Inventories
5
4,769
-
Trade and other receivables
6
89,033
441,423
Cash and cash equivalents
35,670
-
0
129,472
441,423
Current liabilities
Trade and other payables
8
6,320,443
491,442
Net current liabilities
(6,190,971)
(50,019)
Non-current liabilities
Deferred tax liabilities
9
6,241
-
0
Net liabilities
(105,727)
(47,762)
Equity
Called up share capital
10
2
2
Revaluation reserve
12
18,725
-
0
Retained earnings
(124,454)
(47,764)
Total equity
(105,727)
(47,762)

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

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:
PADLOCK SOUTHEND LTD
STATEMENT OF FINANCIAL POSITION (CONTINUED)
AS AT
31 DECEMBER 2023
31 December 2023
- 2 -
I  Muniandy
Director
Company registration number 14162065
PADLOCK SOUTHEND LTD
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2023
- 3 -
Share capital
Revaluation reserve
Retained earnings
Total
Notes
£
£
£
£
Balance at 9 June 2022
-
-
0
-
0
-
Period ended 31 December 2022:
Loss and total comprehensive income for the period
-
-
(47,764)
(47,764)
Transactions with owners in their capacity as owners:
Issue of share capital
10
2
-
-
2
Balance at 31 December 2022
2
-
0
(47,764)
(47,762)
Year ended 31 December 2023:
Loss and total comprehensive income for the year
-
-
(57,965)
(57,965)
Transactions with owners in their capacity as owners:
Transfer to revaluation reserve
-
18,725
(18,725)
-
Balance at 31 December 2023
2
18,725
(124,454)
(105,727)
PADLOCK SOUTHEND 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
15
6,058,447
26,604
Interest paid
-
0
(24,349)
Net cash inflow from operating activities
6,058,447
2,255
Investing activities
Purchase of investment property
(6,022,777)
(2,257)
Net cash used in investing activities
(6,022,777)
(2,257)
Financing activities
Proceeds from issue of shares
-
0
2
Net cash (used in)/generated from financing activities
-
2
Net increase in cash and cash equivalents
35,670
-
0
Cash and cash equivalents at beginning of year
-
0
-
0
Cash and cash equivalents at end of year
35,670
-
0
PADLOCK SOUTHEND LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
- 5 -
1
Accounting policies
Company information

Padlock Southend 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 01 January 2023 to 31 December 2023. The comparative figures cover the 7 month period from incorporation on 09 June 2022 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, except for the revaluation of investment property. 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 Southend Ltd is a wholly owned subsidiary of Padlock UK Bidco 6 and the results of Padlock Southend 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 represents amounts derived from the provision of services which fall within the Company's ordinary activities after deduction of any discounts and any applicable value added tax.

The company recognises revenue from the following major sources:

The nature, timing of satisfaction of performance obligations and significant payment terms of the company's major sources of revenue are as follows:

Self storage income

Self storage 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.

Insurance income

Insurance income is recognised on a straight line basis over the period a customer occupies their room.

PADLOCK SOUTHEND LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 6 -
Packing material sales

Packing material sales are recognised at the point of sales as there is no further ongoing performance obligation beyond the point of sale.

Non-storage income

Non storage 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
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.

1.6
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.

Net realisable value is the estimated selling price less all estimated costs of completion and costs to be incurred in marketing, selling and distribution.

1.7
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.

1.8
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.

PADLOCK SOUTHEND LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 7 -
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.

1.9
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'.

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.

1.10
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.

1.11
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 SOUTHEND LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 8 -
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.

1.12
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.

2
Employees

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

Year
Period
ended
ended
31 December
31 December
2023
2022
Number
Number
5
-
0
3
Income tax expense
2023
2022
£
£
Deferred tax
Origination and reversal of temporary differences
(35,244)
-
0
PADLOCK SOUTHEND LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
3
Income tax expense
(Continued)
- 9 -

The charge for the year can be reconciled to the loss per the income statement as follows:

Year
Period
ended
ended
31 December
31 December
2023
2022
£
£
Loss before taxation
(93,209)
(47,764)
Expected tax credit based on a corporation tax rate of 25.00% (2022: 25.00%)
(23,302)
(11,941)
Unutilised tax losses carried forward
-
0
6,087
Group relief
-
0
5,854
Deferred tax adjustments in respect of prior years
(11,942)
-
0
Taxation credit for the year
(35,244)
-
4
Investment property
2023
2022
£
£
Cost
At 1 January 2023
2,257
-
0
Additions through acquisition
6,022,777
2,257
Fair value adjustment
24,966
-
At 31 December 2023
6,050,000
2,257
5
Inventories
2023
2022
£
£
Finished goods
4,769
-
6
Trade and other receivables
2023
2022
£
£
VAT recoverable
76,580
973
Other receivables
-
440,450
Prepayments
12,453
-
0
89,033
441,423
PADLOCK SOUTHEND LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 10 -
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.

8
Trade and other payables
2023
2022
£
£
Trade payables
9,525
-
0
Amounts owed to fellow group undertakings
6,256,619
486,572
Accruals
48,815
-
0
Social security and other taxation
4,870
4,870
Other payables
614
-
0
6,320,443
491,442
9
Deferred taxation
2023
2022
£
£
Deferred tax liabilities
6,241
-
0
Deferred tax assets
(41,485)
-
0
(35,244)
-
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
Revaluations
Total
£
£
£
Liability at 1 January 2022 and 1 January 2023
-
0
-
0
-
0
Deferred tax movements in current year
Charge/(credit) to profit or loss
(41,485)
6,241
(35,244)
Liability at 31 December 2023
-
0
6,241
6,241
Asset at 31 December 2023
(41,485)
-
0
(41,485)
PADLOCK SOUTHEND LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 11 -
10
Share capital
2023
2022
2023
2022
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
2
2
2
2
11
Capital risk management

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

12
Revaluation reserve
2023
2022
£
£
At the beginning of the year
-
0
-
0
Transfer to retained earnings
18,725
-
0
At the end of the year
18,725
-
0

The transfer from retained earnings of £18,725 comprises of £24,966 revaluation gain on the investment property, offset by the deferred tax impact of £6,241.

13
Related party transactions

During the year, Padlock Southend Limited made purchases in management services totalling £30,000 (2022: £Nil) from Padlock UK Bidco 6 Limited.

 

During the year, Padlock Southend Limited made purchases in insurance recharges totalling £28,903 (2022: £Nil) from Padlock UK Bidco 2 Limited.

 

14
Controlling party

Padlock Southend Ltd is a wholly owned subsidiary of Padlock UK Bidco 6. The ultimate parent is Padlock Partners UK Fund III, a Canadian entity.

PADLOCK SOUTHEND LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 12 -
15
Cash generated from operations
2023
2022
£
£
Loss for the year before income tax
(93,209)
(47,764)
Adjustments for:
Finance costs
-
24,349
Fair value gain on investment properties
(24,966)
-
Movements in working capital:
Increase in inventories
(4,769)
-
0
Decrease/(increase) in trade and other receivables
427,997
(440,450)
Increase in trade and other payables
5,753,394
490,469
Cash generated from operations
6,058,447
26,604
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