Registered number: 11172113
SOLLER SEVEN LIMITED
UNAUDITED
FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2023
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SOLLER SEVEN LIMITED
REGISTERED NUMBER: 11172113
BALANCE SHEET
AS AT 30 SEPTEMBER 2023
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Debtors: amounts falling due within one year
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Creditors: amounts falling due within one year
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Total assets less current liabilities
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SOLLER SEVEN LIMITED
REGISTERED NUMBER: 11172113
BALANCE SHEET (CONTINUED)
AS AT 30 SEPTEMBER 2023
The director considers that the Company is entitled to exemption from audit under section 477 of the Companies Act 2006 and members have not required the Company to obtain an audit for the year in question in accordance with section 476 of the Companies Act 2006.
The director acknowledges his responsibilities for complying with the requirements of the Companies Act 2006 with respect to accounting records and the preparation of financial statements.
The financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies regime and in accordance with the provisions of FRS 102 Section 1A - small entities.
The financial statements have been delivered in accordance with the provisions applicable to companies subject to the small companies regime.
The Company has opted not to file the statement of comprehensive income in accordance with provisions applicable to companies subject to the small companies' regime.
The financial statements were approved and authorised for issue by the board and were signed on its behalf by:
The notes on pages 3 to 8 form part of these financial statements.
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SOLLER SEVEN LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2023
Soller Seven Limited is a private company, limited by shares, incorporated in England and Wales, registration number 11172113. The registered office is 6th Floor, 2 London Wall Place, London, EC2Y 5AU.
2.Accounting policies
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Basis of preparation of financial statements
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The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with FRS 102 'The Financial Reporting Standard applicable in the UK and the Republic of Ireland' and the requirements of the Companies Act 2006. The disclosure requirements of Section 1A of FRS 102 have been applied other than where additional disclosure is required to show a true and fair view.
The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires management to exercise judgment in applying the Company's accounting policies.
The financial statements have been prepared in pounds sterling, the functional currency, rounded to the nearest £1.
The following principal accounting policies have been applied:
The company has net current liabilities of £1,819,822 (2022 - £983,820) and total net assets of £2,736,101 (2022 - net liabilities £14,126) at the balance sheet date.
The financial statements have been prepared on a going concern basis. The period considered by the director in his review of going concern is 12 months from the date of signature of the financial statements. The members have confirmed their willingness and ability to support the company for a period of at least 12 months from the date of signing of the financial statements.
Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Company and the revenue can be reliably measured. Revenue is measured as the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. The following criteria must also be met before revenue is recognised:
Rendering of services
Revenue from a contract to provide services is recognised in the period in which the services are provided in accordance with the stage of completion of the contract when all of the following conditions are satisfied:
∙the amount of revenue can be measured reliably;
∙it is probable that the Company will receive the consideration due under the contract;
∙the stage of completion of the contract at the end of the reporting period can be measured reliably; and
∙the costs incurred and the costs to complete the contract can be measured reliably.
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SOLLER SEVEN LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2023
2.Accounting policies (continued)
All borrowing costs are recognised in profit or loss in the year in which they are incurred.
Investment property is carried at fair value determined annually by external valuers and derived from the current market rents and investment property yields for comparable real estate, adjusted if necessary for any difference in the nature, location or condition of the specific asset. No depreciation is provided. Changes in fair value are recognised in profit or loss. Investment property is carried at cost, the directors are of the opinion that this closely represents fair value.
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Cash and cash equivalents
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Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours. Cash equivalents are highly liquid investments that mature in no more than three months from the date of acquisition and that are readily convertible to known amounts of cash with insignificant risk of change in value.
Short-term creditors are measured at the transaction price. Other financial liabilities, including bank loans, are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method.
The Company has elected to apply the provisions of Section 11 “Basic Financial Instruments” 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 trade and other receivables, cash and bank balances, are initially measured at their transaction price including transaction costs and are subsequently carried at their amortised cost using the effective interest method, less any provision for impairment, 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.
Discounting is omitted where the effect of discounting is immaterial. The Company's cash and cash equivalents, trade and most other receivables due with the operating cycle fall into this category of financial instruments.
Other financial assets
Other financial assets, which includes investments in equity instruments which are not classified as subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the
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SOLLER SEVEN LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2023
2.Accounting policies (continued)
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Financial instruments (continued)
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recognised transaction price. Such assets are subsequently measured at fair value with the changes in fair value being recognised in the profit or loss. Where other financial assets are not publicly traded, hence their fair value cannot be measured reliably, they are measured at cost less impairment.
Impairment of financial assets
Financial assets are assessed for indicators of impairment at each reporting date.
Financial assets are impaired when events, subsequent to their initial recognition, indicate the estimated future cash flows derived from the financial asset(s) have been adversely impacted. The impairment loss will be the difference between the current carrying amount and the present value of the future cash flows at the asset(s) original effective interest rate.
If there is a favourable change in relation to the events surrounding the impairment loss then the impairment can be reviewed for possible reversal. The reversal will not cause the current carrying amount to exceed the original carrying amount had the impairment not been recognised. The impairment reversal is recognised in the profit or loss.
Financial liabilities
Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instruments any contract that evidences a residual interest in the assets of the Company after the deduction of all its liabilities.
Basic financial liabilities, which include trade and other payables, bank loans and other loans are initially measured at their transaction price after transaction costs. When this constitutes a financing transaction, whereby the debt instrument is measured at the present value of the future receipts discounted at a market rate of interest. Discounting is omitted where the effect of discounting is immaterial.
Debt instruments are subsequently carried at their amortised cost using the effective interest rate method.
Trade payables are obligations to pay for goods and services that have been acquired in the ordinary course of business from suppliers. Trade payables are classified as current liabilities if the payment is due within one year. If not, they represent non-current liabilities. Trade payables are initially recognised at their transaction price and subsequently are measured at amortised cost using the effective interest method. Discounting is omitted where the effect of discounting is immaterial.
Derecognition of financial instruments
Derecognition of financial assets
Financial assets are derecognised when their contractual right to future cash flow expire, or are settled, or when the Company transfers the asset and substantially all the risks and rewards of ownership to another party. If significant risks and rewards of ownership are retained after the transfer to another party, then the Company will continue to recognise the value of the portion of the risks and rewards retained.
Derecognition of financial liabilities
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SOLLER SEVEN LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2023
2.Accounting policies (continued)
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Financial instruments (continued)
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Financial liabilities are derecognised when the Company's contractual obligations expire or are discharged or cancelled.
Investment property is carried at cost, the directors are of the opinion that this closely represents fair value at 30 September 2023.
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Amounts due from group undertakings
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Amounts due from group undertakings represent an amount due from Tennant Street Partnership. The balance is unsecured, interest free and repayable on demand.
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Cash and cash equivalents
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SOLLER SEVEN LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2023
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Creditors: Amounts falling due within one year
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Accruals and deferred income
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Other creditors include shareholder loans of £Nil (2022: £292,641) and a balance due to the director of £1,056 (2022: £1,056). Shareholder loans accrue interest at 15% per annum. Shareholder loans were convreted to equity as part of an allotment of shares in the year (see note 9). Shareholder loans are the liability of the A class shareholders.
Other loans of £582,818 (2022: £730,385) are due within in a year however the company can opt to roll the loan due date forward for another year. Other loans are the liability of the A class shareholders.
Bank loans of £2,103,931 (2022: £Nil) are secured over the investment property held by the company. Bank loans bear a monthly interest rate of 0.85%. Bank loans are due within 12 months of the date of these financial statements.
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Transactions with directors
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During the year the director, N J Treadaway, incurred expenditure of £Nil (2022 - £Nil) on behalf of the company and payments were made to the director of £Nil (2022 - £Nil). At the year end £1,056 (2022 - £1,056) was owed to the director.
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SOLLER SEVEN LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2023
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Analysis of the maturity of loans is given below:
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Amounts falling due within one year
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Other loans of £582,818 (2022: £730,385) are due within in a year however the company can opt to roll the loan due date forward for another year.
Bank loans of £2,103,931 (2022: £Nil) are secured over the investment property held by the company. Bank loans bear a monthly interest rate of 0.85%. Bank loans are due within 12 months of the date of these financial statements.
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100,000 (2022 - 1,000) Ordinary A (2022: Ordinary) shares of £0.10 each
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93,498 (2022 - Nil) Ordinary B shares of £0.10 each
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On 23 February 2023, 1,000 Ordinary shares with a nominal value of £0.10 each were redesignated as 1,000 Ordinary A shares with a nominal value of £0.10 each.
On 23 February 2023, 99,000 Ordinary A shares with a nominal value of £0.10 each were alloted. As part of this allotment, 79,250 shares were alloted on conversion of shareholder loans totalling £1,200,000. The remaining 19,750 shares were alloted at par. Share premium of £1,192,076 arose on the allotment of the 79,250 shares on conversion of the shareholder loans.
On 23 February 2023, 93,498 Ordinary B shares with a nominal value of £0.10 each were alloted for total consideration of £1,550,000. Share premium of £1,540,650 arose on this transaction.
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