Company Registration No. 07970798 (England and Wales)
HOST STUDENT HOUSING MANAGEMENT (UK) LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2023
HOST STUDENT HOUSING MANAGEMENT (UK) LIMITED
COMPANY INFORMATION
Directors
J O Nesbitt
M J O'Flynn
Company number
07970798
Registered office
9 Bonhill Street
London
EC2A 4DJ
Auditor
Begbies
9 Bonhill Street
London
EC2A 4DJ
Business address
Carrington House
126-130 Regent Street
London
W1B 5SE
HOST STUDENT HOUSING MANAGEMENT (UK) LIMITED
CONTENTS
Page
Strategic report
1 - 2
Directors' report
3 - 4
Independent auditor's report
5 - 7
Statement of comprehensive income
8
Balance sheet
9
Statement of changes in equity
10
Notes to the financial statements
11 - 18
HOST STUDENT HOUSING MANAGEMENT (UK) LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 AUGUST 2023
- 1 -

The directors present the strategic report for the year ended 31 August 2023.

Review of the business

The company’s turnover increased during the year from £1.76m to £2.31m as a result of taking on a new asset management agreement with a private equity partner in June 2022. This includes £120k within the Host group so underlying fees are around £2.2m. This is expected to increase to around £2.5m for 23/24 as a result of Host winning new operational management contracts and expanding its portfolio of managed PBSA properties across the UK and Ireland.

The Host Group manages a portfolio of student beds in excess of 10,000, achieving an average occupancy of 95% in 22/23, 97% in 23/24 and 97% for 24/25. The introduction of dynamic pricing across its assets has resulted in significantly uplifted revenues for the forthcoming academic year, with most assets outperforming their business plans. With the introduction of the RealPage operating system dynamic pricing will become automated (within pre-set parameters) ensuring each asset drives revenue.

The overall net loss for the year was £0.64m (2022: loss of £1.21m) which was an improved position after the previous year's one-off overhead and investment costs in relation to the asset management agreement above. Due to the company’s expansive growth plans it has invested significantly in its IT platform, with a full migration of its operating systems to RealPage during the course of 23/24. The company is working towards a break-even position for 23/24, and will incur costs of restructuring in addition to its investment in its Realpage systems during the course of 23/24. The restructuring of the operational business is to ensure that Host is structured appropriately for the growth expect in 24/25 and following years in line with the business plan.

At the year-end, the company had net assets of £2.6m (2022: £3.3m). The company's working capital has been absorbed by work in progress at two sites in Bristol, the larger of which has been forward funded under an agreement in May 2024. This will enable the work in progress to be recovered by the company over the next 6-12 months, whilst providing liquidity via a development management fee through to completion of the building in 2026. The company also holds planning consent on its second smaller site in Bristol, with the intention of beginning construction towards the end of 2024, this will release further liquidity into the group. The shareholders have demonstrated their commitment to the company by way of shareholder funding to ensure that the company can meet its commitment to delivery of the second Bristol site in 2027.

Principal risks and uncertainties

The company’s performance is tied to the student property sector which is dependent upon the success of UK universities and their ability to attract international students. Higher education policy and Brexit will impact this on the demand side and the provision of new developments will impact on the supply side. The student accommodation market is competitive but has significant growth potential due to the continued expansion of higher education, increasing international student mobility and evolving student expectations. Investors are increasingly drawn to the PBSA sector. They recognise the important role it now plays in the wider UK housing landscape. Overall, the PBSA sector continued to be the ‘darling’ of the Alternative sectors – and it is set to outweigh other living asset classes over the next 12 months, according to the BNP Paribas Real Estate report (UK Living Market Update Q2 2024).

Competition is a significant risk to the company and there are a number of major competitors in the sector. The company’s focus is on operational proficiency and as a vertically integrated platform can advise on the full lifecycle of assets. Host has differentiated ourselves with a focus on digital engagement and community building along with a focus on sustainability and wellness amenities to appeal to Gen Z’s priorities. Host’s customers are digital natives and by optimising our digital presence, offering a seamless online experience the company will continue to grow.

The company is also reliant on investors, and in turn the capital markets, to fund projects where the company acquires an option to purchase and then incurs planning and development costs which are expected to be recovered.

HOST STUDENT HOUSING MANAGEMENT (UK) LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2023
- 2 -

On behalf of the board

J O Nesbitt
Director
24 October 2024
HOST STUDENT HOUSING MANAGEMENT (UK) LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 AUGUST 2023
- 3 -

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

Principal activities

The principal activity of the company is the provision of property management services for student accommodation.

Results and dividends

The results for the year are set out on page 8.

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:

J O Nesbitt
M J O'Flynn
Auditor

The auditor, Begbies, is deemed to be reappointed under section 487(2) of the Companies Act 2006.

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.

Medium-sized companies exemption

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

HOST STUDENT HOUSING MANAGEMENT (UK) LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2023
- 4 -
On behalf of the board
J O Nesbitt
Director
24 October 2024
HOST STUDENT HOUSING MANAGEMENT (UK) LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBER OF HOST STUDENT HOUSING MANAGEMENT (UK) LIMITED
- 5 -
Opinion

We have audited the financial statements of Host Student Housing Management (UK) Limited (the 'company') for the year ended 31 August 2023 which comprise the statement of comprehensive income, the balance sheet, the statement of changes in equity 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.

 

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.

Opinions on other matters prescribed by the Companies Act 2006

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

HOST STUDENT HOUSING MANAGEMENT (UK) LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBER OF HOST STUDENT HOUSING MANAGEMENT (UK) LIMITED
- 6 -
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 strategic report or 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.

The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.

Our audit procedures were designed to respond to risks of material misstatement in the financial statements, recognising that the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery, misrepresentations or through collusion.

There are inherent limitations in the audit procedures performed and the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we are to become aware of it.

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.

HOST STUDENT HOUSING MANAGEMENT (UK) LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBER OF HOST STUDENT HOUSING MANAGEMENT (UK) LIMITED
- 7 -

Use of our report

This report is made solely to the company's member 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 member those matters we are required to state to the member 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 member, for our audit work, for this report, or for the opinions we have formed.

Christopher Bates FCA (Senior Statutory Auditor)
For and on behalf of Begbies
24 October 2024
Chartered Accountants and Statutory Auditors
9 Bonhill Street
London
EC2A 4DJ
HOST STUDENT HOUSING MANAGEMENT (UK) LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 AUGUST 2023
- 8 -
2023
2022
Notes
£
£
Turnover
3
2,312,851
1,757,826
Cost of sales
(1,787,199)
(1,212,000)
Gross profit
525,652
545,826
Administrative expenses
(1,474,196)
(1,455,390)
Other operating income
300,000
-
0
Operating loss
4
(648,544)
(909,564)
Interest receivable and similar income
6
4,424
-
0
Interest payable and similar expenses
7
-
0
(1,257)
Amounts written off investments
8
-
(300,000)
Loss before taxation
(644,120)
(1,210,821)
Tax on loss
9
-
0
-
0
Loss for the financial year
(644,120)
(1,210,821)

The profit and loss account has been prepared on the basis that all operations are continuing operations.

HOST STUDENT HOUSING MANAGEMENT (UK) LIMITED
BALANCE SHEET
AS AT
31 AUGUST 2023
31 August 2023
- 9 -
2023
2022
Notes
£
£
£
£
Fixed assets
Tangible assets
10
6,808
-
0
Current assets
Stocks
11
3,932,914
2,954,521
Debtors
12
1,697,163
812,935
Investments
13
219,601
569,601
Cash at bank and in hand
583,035
3,116,566
6,432,713
7,453,623
Creditors: amounts falling due within one year
14
(3,813,404)
(4,183,386)
Net current assets
2,619,309
3,270,237
Net assets
2,626,117
3,270,237
Capital and reserves
Called up share capital
16
2
2
Profit and loss reserves
2,626,115
3,270,235
Total equity
2,626,117
3,270,237

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 24 October 2024 and are signed on its behalf by:
J O Nesbitt
Director
Company registration number 07970798 (England and Wales)
HOST STUDENT HOUSING MANAGEMENT (UK) LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 AUGUST 2023
- 10 -
Share capital
Profit and loss reserves
Total
£
£
£
Balance at 1 September 2021
2
4,481,056
4,481,058
Year ended 31 August 2022:
Loss and total comprehensive income
-
(1,210,821)
(1,210,821)
Balance at 31 August 2022
2
3,270,235
3,270,237
Year ended 31 August 2023:
Loss and total comprehensive income
-
(644,120)
(644,120)
Balance at 31 August 2023
2
2,626,115
2,626,117
HOST STUDENT HOUSING MANAGEMENT (UK) LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2023
- 11 -
1
Accounting policies
Company information

Host Student Housing Management (UK) Limited is a private company limited by shares incorporated in England and Wales. The registered office is 9 Bonhill Street, London, EC2A 4DJ.

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.

This company is a qualifying entity for the purposes of FRS 102, being a member of a group where the parent of that group prepares publicly available consolidated financial statements, including this company, which are intended to give a true and fair view of the assets, liabilities, financial position and profit or loss of the group. The company has therefore taken advantage of exemptions from the following disclosure requirements:

 

 

The financial statements of the company are consolidated in the financial statements of Host Student Housing Limited. These consolidated financial statements are available from its registered office, 9 Bonhill Street, London EC2A 4DJ.

1.2
Going concern

Atruet the time of approving the financial statements, 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 of accounting in preparing the financial statements.

1.3
Turnover

Turnover represents amounts receivable in respect of property services net of VAT.

1.4
Tangible fixed assets

Tangible fixed assets 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:

Computer equipment
25% 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.

HOST STUDENT HOUSING MANAGEMENT (UK) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2023
1
Accounting policies
(Continued)
- 12 -
1.5
Impairment of fixed assets

At each reporting period end date, the company reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any).

1.6
Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell.

At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.

1.7
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.

1.8
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 balance sheet 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 debtors 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.

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.

Basic financial liabilities

Basic financial liabilities, including creditors, 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 creditors 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 creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

HOST STUDENT HOUSING MANAGEMENT (UK) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2023
1
Accounting policies
(Continued)
- 13 -
1.9
Equity instruments

Equity instruments issued by the company are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.

1.10
Employee benefits

The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.

 

The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.

 

Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

1.11
Retirement benefits

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

1.12
Leases

Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leases asset are consumed.

1.13
Foreign exchange

Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation in the period are included in profit or loss.

2
Judgements and key sources of estimation uncertainty

In the application of the company’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

 

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

Critical judgements

The following judgements (apart from those involving estimates) have had the most significant effect on amounts recognised in the financial statements.

Stocks

Work in progress, representing costs incurred for future student development projects, is held at the lower of cost and net realisable value. The Board has made the judgement that costs are expected to be recovered in full, most likely through a development funding agreement.

HOST STUDENT HOUSING MANAGEMENT (UK) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2023
- 14 -
3
Turnover and other revenue

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

2023
2022
£
£
Turnover analysed by class of business
Operational management fees
1,708,374
1,153,767
Asset management fees
418,282
-
Development fees
66,195
604,059
Management fees - group
120,000
-
2,312,851
1,757,826
2023
2022
£
£
Turnover analysed by geographical market
United Kingdom
2,012,851
1,757,826
Ireland
300,000
-
2,312,851
1,757,826
2023
2022
£
£
Other revenue
Interest income
4,424
-
4
Operating loss
2023
2022
Operating loss for the year is stated after charging:
£
£
Exchange losses
4,385
-
0
Fees payable to the company's auditor for the audit of the company's financial statements
10,000
10,000
Depreciation of owned tangible fixed assets
2,269
-
Operating lease charges
8,977
-
5
Employees

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

2023
2022
Number
Number
123
101
HOST STUDENT HOUSING MANAGEMENT (UK) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2023
5
Employees
(Continued)
- 15 -

Their aggregate remuneration comprised:

2023
2022
£
£
Wages and salaries
1,655,792
-
0
Social security costs
197,422
-
Pension costs
78,220
-
0
1,931,434
-
0

Employee numbers above include staff contracted to customer sites where costs are recharged in full. The number of employees representing a cost to the company was 28 (2022: Nil). In the prior year these employees were employed by Victoria Hall Management Limited, a company under common control.

6
Interest receivable and similar income
2023
2022
£
£
Interest income
Other interest income
4,424
-
0
7
Interest payable and similar expenses
2023
2022
£
£
Interest on bank overdrafts and loans
-
1,257
8
Amounts written off investments
2023
2022
£
£
Amounts written back to/(written off) current loans
-
(300,000)
9
Taxation
HOST STUDENT HOUSING MANAGEMENT (UK) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2023
9
Taxation
(Continued)
- 16 -

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

2023
2022
£
£
Loss before taxation
(644,120)
(1,210,821)
Expected tax credit based on the standard rate of corporation tax in the UK of 21.52% (2022: 19.00%)
(138,615)
(230,056)
Tax effect of expenses that are not deductible in determining taxable profit
2,726
57,362
Unutilised tax losses carried forward
135,889
172,694
Taxation charge for the year
-
-

The company has unused tax losses of £1,542,577 carried forward for which no deferred tax asset has been recognised.

10
Tangible fixed assets
Computer equipment
£
Cost
At 1 September 2022
-
0
Additions
9,077
At 31 August 2023
9,077
Depreciation and impairment
At 1 September 2022
-
0
Depreciation charged in the year
2,269
At 31 August 2023
2,269
Carrying amount
At 31 August 2023
6,808
At 31 August 2022
-
0
11
Stocks
2023
2022
£
£
Work in progress
3,932,914
2,954,521
HOST STUDENT HOUSING MANAGEMENT (UK) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2023
- 17 -
12
Debtors
2023
2022
Amounts falling due within one year:
£
£
Trade debtors
483,625
527,890
Corporation tax recoverable
-
0
146,702
Amounts owed by group undertakings
84,178
113,425
Other debtors
1,129,360
20,788
Prepayments and accrued income
-
0
4,130
1,697,163
812,935
13
Current asset investments
2023
2022
£
£
Loans
219,601
569,601

Loans are due from VH (Leicester) Limited, which was a company under common control until June 2022.The loan is conditional on the debt financing of a student investment asset and is expected to be repaid by December 2025.

14
Creditors: amounts falling due within one year
2023
2022
£
£
Trade creditors
189,123
35,643
Amounts owed to group undertakings
67,294
94,549
Taxation and social security
236,852
31,642
Other creditors
2,784,202
3,458,362
Accruals and deferred income
535,933
563,190
3,813,404
4,183,386
15
Retirement benefit schemes
2023
2022
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
78,220
-

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.

16
Share capital
2023
2022
2023
2022
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of 6.67p each
30
30
2
2
HOST STUDENT HOUSING MANAGEMENT (UK) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2023
16
Share capital
(Continued)
- 18 -
17
Financial commitments, guarantees and contingent liabilities

The company has entered into conditional purchase agreements for development land totalling £17.2m which are subject to planning consent being granted.

18
Related party transactions
Transactions with related parties

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

Services provided
Services received
2023
2022
2023
2022
£
£
£
£
Entities under common control
554,112
88,203
240,000
1,428,000

The following amounts were outstanding at the reporting end date:

2023
2022
Amounts due to related parties
£
£
Entities under common control
2,717,894
3,439,340

The following amounts were outstanding at the reporting end date:

2023
2022
Amounts due from related parties
£
£
Entities under common control
1,124,752
-
Other information

Transactions within the Host Student Housing Limited group are not disclosed and the transactions above relate to entities controlled by the shareholders of Host Student Housing Limited.

 

Services provided to related parties include operational fees of £14,112 (2022: £88,203) at open market value and on similar terms to other customers. Management charges of £540,000 are also included this year in relation to staff costs which were previously incurred by Victoria Hall Management Limited.

 

Services received from related parties are management charges of £240,000 (2022: £240,000) to Tiger Developments Limited. The prior year also includes £1,188,000 to Victoria Hall Management Limited in relation to staff and other central costs which are now incurred by the company.

19
Ultimate controlling party

The parent company is Host Student Housing Limited and its registered office is 9 Bonhill Street, London EC2A 4DJ. Host Student Housing Limited is the only group of undertakings for which group accounts are drawn up and of which the company is a member.

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