Company registration number 14212205 (England and Wales)
ARK EUROPE HOLDINGS LIMITED
ANNUAL REPORT AND AUDITED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024
ARK EUROPE HOLDINGS LIMITED
COMPANY INFORMATION
Directors
H T Owen
A J Pettit
D McDonald
A D Garvin
(Appointed 4 September 2023)
I S Perryment
(Appointed 4 September 2023)
R P Silvester
(Appointed 4 September 2023)
Secretary
Dr P T Singh
Company number
14212205
Registered office
Spring Park
Westwells Road
Hawthorn
Corsham
Wiltshire
SN13 9GB
Independent auditors
PricewaterhouseCoopers CI LLP
37 Esplanade
St Helier
Jersey
JE1 4XA
ARK EUROPE HOLDINGS LIMITED
CONTENTS
Page(s)
Directors' report
1 - 2
Independent auditors' report
3 - 6
Profit and loss account
7
Group balance sheet
8
Company balance sheet
9
Notes to the financial statements
10 - 17
ARK EUROPE HOLDINGS LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 30 JUNE 2024
- 1 -

The directors present their report and audited company and consolidated financial statements for Ark Europe Holdings Limited ("the company") and its subsidiaries (together "the group") for the year ended 30 June 2024. The consolidated financial statements for the period ended 30 June 2023 are unaudited.

Principal activities

The principal activity of the group is the ownership, development and leasing of data centres.

Results and dividends

The results for the year are set out on page 7.

 

The results for the year and the financial position at the year end were considered satisfactory by the directors.

No ordinary dividends were paid. The directors do not recommend payment of a further dividend.

Directors

The directors who held office during the year and up to the date of signature of the financial statements were as follows:

H T Owen
A J Pettit
D McDonald
Dr P T Singh
(Resigned 4 September 2023)
A D Garvin
(Appointed 4 September 2023)
I S Perryment
(Appointed 4 September 2023)
R P Silvester
(Appointed 4 September 2023)
Qualifying third party indemnity provisions

The company has made qualifying third party indemnity provisions for the benefit of its directors during the year. These provisions remain in force at the reporting date.

 

Going concern

The directors have prepared the financial statements on a going concern basis.

 

At 30 June 2024 the group had net current assets of £2,295,251 (2023: net current liabilities of £66,360). The directors have prepared cash flow forecasts which include relevant downside sensitivities and demonstrate that the group has access to sufficient liquidity to sustain its operations for a period of at least 12 months from the date of approval of the financial statements. It is the therefore the directors' view that it is appropriate to prepare the financial statements on a going concern basis.

Independent auditors

In accordance with the company's articles, a resolution proposing that PricewaterhouseCoopers CI LLP be reappointed as auditors of the company will be put at a General Meeting. PricewaterhouseCoopers CI LLP were also appointed as auditor to the group during the year and have expressed their willingness to continue in office.

ARK EUROPE HOLDINGS LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 2 -
Statement of directors' responsibilities

The directors are responsible for preparing the Directors' Report and the group and company financial statements (the "financial statements") in accordance with applicable law and regulations.

 

Companies Act 2006 ("company law") requires the directors to prepare financial statements for each financial year. Under that law the directors have prepared the financial statements in accordance with United Kingdom Accounting Standards, comprising FRS102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" Section 1A, and applicable law (United Kingdom Generally Accepted Accounting Practice).

 

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 group and company, and of the profit or loss of the group 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 group's and company’s transactions and disclose with reasonable accuracy at any time the financial position of the group and 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 group and company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. The directors confirm that they have complied with these responsibilities.

Statement of disclosure to auditor

In the case of each director in office at the date the Directors' Report is approved:

 

 

Small companies exemption

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

On behalf of the board
H T Owen
Director
20 December 2024
ARK EUROPE HOLDINGS LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF ARK EUROPE HOLDINGS LIMITED
- 3 -

Independent auditors’ report to the members of Ark Europe Holdings Limited

Report on the audit of the financial statements

Opinion

In our opinion, Ark Europe Holdings Limited’s group financial statements and company financial statements (the “financial statements”):

We have audited the financial statements, included within the Annual Report and Audited Financial Statements (the “Annual Report”), which comprise: the group and company balance sheet as at 30 June 2024; the group profit and loss account for the year then ended and the notes to the financial statements, which include a description of the significant accounting policies.

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (“ISAs (UK)”) and applicable law. Our responsibilities under ISAs (UK) are further described in the Auditors’ responsibilities for the audit of the financial statements section of our report. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Independence

We remained independent of the group in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, which includes the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements.

Conclusions relating to going concern

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 group's and 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.

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.

However, because not all future events or conditions can be predicted, this conclusion is not a guarantee as to the group's and the company's ability to continue as a going concern.

Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.

ARK EUROPE HOLDINGS LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF ARK EUROPE HOLDINGS LIMITED
- 4 -

Reporting on other information

The other information comprises all of the information in the Annual Report other than the financial statements and our auditors’ report thereon. The directors are responsible for the other information. Our opinion on the financial statements does not cover the other information and, accordingly, we do not express an audit opinion or, except to the extent otherwise explicitly stated in this report, any form of assurance thereon.

In connection with our audit of the financial statements, 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 audit, or otherwise appears to be materially misstated. If we identify an apparent material inconsistency or material misstatement, we are required to perform procedures to conclude whether there is a material misstatement of the financial statements or a material misstatement of the other information. 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 based on these responsibilities.

With respect to the Directors' report, we also considered whether the disclosures required by the UK Companies Act 2006 have been included.

Based on our work undertaken in the course of the audit, the Companies Act 2006 requires us also to report certain opinions and matters as described below.

Directors' report

In our opinion, based on the work undertaken in the course of the audit, the information given in the Directors' report for the year ended 30 June 2024 is consistent with the financial statements and has been prepared in accordance with applicable legal requirements.

In light of the knowledge and understanding of the group and company and their environment obtained in the course of the audit, we did not identify any material misstatements in the Directors' report.

Responsibilities for the financial statements and the audit

Responsibilities of the directors for the financial statements

As explained more fully in the statement of directors' responsibilities, the directors are responsible for the preparation of the financial statements in accordance with the applicable framework and for being satisfied that they give a true and fair view. The directors are also responsible for such internal control as they 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 group’s and 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 group or the company or to cease operations, or have no realistic alternative but to do so.

Auditors’ 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 auditors’ 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.

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud.

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

ARK EUROPE HOLDINGS LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF ARK EUROPE HOLDINGS LIMITED
- 5 -

Based on our understanding of the group and industry, we considered the principal risks of non-compliance with laws and regulations, including those that have a direct impact on the preparation of the financial statements such as the Companies Act 2006, and the extent to which non-compliance might have a material effect on the financial statements. We evaluated management’s incentives and opportunities for fraudulent manipulation of the financial statements (including the risk of override of controls), and determined that the principal risks were related to posting inappropriate journal entries to increase revenue and the potential for management bias in accounting estimates and key judgements impacting the financial statements such as valuation of investment property.

Audit procedures performed by the engagement team included:

There are inherent limitations in the audit procedures described above. We are less likely to become aware of instances of non-compliance with laws and regulations that are not closely related to events and transactions reflected in the financial statements. Also, 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 or intentional misrepresentations, or through collusion.

A further description of our responsibilities for the audit of the financial statements is located on the FRC’s website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditors’ report.

Use of this report

This report, including the opinions, has been prepared for and only for the company’s members as a body in accordance with Chapter 3 of Part 16 of the Companies Act 2006 and for no other purpose. We do not, in giving these opinions, accept or assume responsibility for any other purpose or to any other person to whom this report is shown or into whose hands it may come save where expressly agreed by our prior consent in writing.

ARK EUROPE HOLDINGS LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF ARK EUROPE HOLDINGS LIMITED
- 6 -

Other required reporting

Companies Act 2006 exception reporting

Under the Companies Act 2006 we are required to report to you if, in our opinion:

We have no exceptions to report arising from this responsibility.

Entitlement to exemptions

Under the Companies Act 2006 we are required to report to you if, in our opinion, the directors were not entitled to: prepare financial statements in accordance with the small companies regime; and take advantage of the small companies exemption from preparing a strategic report. We have no exceptions to report arising from this responsibility.

Other matter

The group financial statements for the period 4 July 2022 to 30 June 2023, forming the corresponding figures of the group financial statements for the year ended 30 June 2024, are unaudited.

Ian Tait (Senior Statutory Auditor)
for and on behalf of PricewaterhouseCoopers CI LLP
Chartered Accountants and Statutory Auditors
Jersey
20 December 2024
ARK EUROPE HOLDINGS LIMITED
GROUP PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 30 JUNE 2024
- 7 -
Unaudited
Year
Period
ended
4 July 2022 to
30 June 2024
30 June 2023
Notes
£
£
Property income
97,866
-
Property expenses
(86,712)
-
0
Gross profit
11,154
-
Administrative expenses
(549,645)
(66,460)
Operating loss
(538,491)
(66,460)
Interest receivable and similar income
5
1,300
-
Change in fair value of investment property
6
(975,026)
-
Loss before taxation
(1,512,217)
(66,460)
Taxation
7
-
0
0
-
0
Loss for the financial year/period
(1,512,217)
(66,460)
Loss for the financial year is all attributable to the owners of the parent company.

The notes on pages 10 to 17 form part of these financial statements.

ARK EUROPE HOLDINGS LIMITED
GROUP BALANCE SHEET
AS AT
30 JUNE 2024
30 June 2024
- 8 -
Unaudited
2024
2023
Notes
£
£
£
£
Fixed assets
Investment property
8
5,505,630
-
0
Current assets
Debtors
10
17,877
885,101
Cash at bank and in hand
2,456,343
505
2,474,220
885,606
Creditors: amounts falling due within one year
11
(178,969)
(951,966)
Net current assets/(liabilities)
2,295,251
(66,360)
Net assets/(liabilities)
7,800,881
(66,360)
Capital and reserves
Called up share capital
12
9,379,558
100
Profit and loss reserves
(1,578,677)
(66,460)
Total equity
7,800,881
(66,360)

The notes on pages 10 to 17 form part of these financial statements.

These financial statements have been prepared in accordance with the provisions applicable to groups and companies subject to the small companies regime and in accordance with the provisions of FRS 102 1A - small entities.

The financial statements on pages 7 to 17 were approved by the board of directors and authorised for issue on 20 December 2024 and are signed on its behalf by:
H T Owen
I S Perryment
Director
Director
Company registration number 14212205 (England and Wales)
ARK EUROPE HOLDINGS LIMITED
COMPANY BALANCE SHEET
AS AT 30 JUNE 2024
30 June 2024
- 9 -
2024
2023
Notes
£
£
£
£
Fixed assets
Investments
9
9,179,428
88
Current assets
Debtors
10
1,793
562,469
Cash at bank and in hand
70,066
232
71,859
562,701
Creditors: amounts falling due within one year
11
(20,446)
(591,458)
Net current assets/(liabilities)
51,413
(28,757)
Net assets/(liabilities)
9,230,841
(28,669)
Capital and reserves
Called up share capital
12
9,379,558
100
Profit and loss reserves
(148,717)
(28,769)
Total equity
9,230,841
(28,669)

The notes on pages 10 to 17 form part of these financial statements.

As permitted by s408 Companies Act 2006, the company has not presented its own profit and loss account and related notes. The company’s loss for the year was £119,948 (2023 - £28,769 loss).

These 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 1A - small entities.

The financial statements on pages 7 to 17 were approved by the board of directors and authorised for issue on
20 December 2024
20 December 2024
and are signed on its behalf by:
H T Owen
I S Perryment
Director
Director
Company registration number 14212205 (England and Wales)
ARK EUROPE HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024
- 10 -
1
Accounting policies
Company information

Ark Europe Holdings Limited (“the company”) is a private limited company domiciled and incorporated in England and Wales. The registered office is Spring Park, Westwells Road, Hawthorn, Corsham, Wiltshire, SN13 9GB.

 

The group consists of Ark Europe Holdings Limited and all of its subsidiaries disclosed in note 9.

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 as applicable to companies subject to the small companies regime. 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 financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.

The financial statements have been prepared under the historical cost convention, modified to include investment properties at fair value. The principal accounting policies adopted have been applied consistently in the current year and prior period. These are set out below. The consolidated financial statements as at and for the period ended 30 June 2023 are unaudited.

1.2
Basis of consolidation

The consolidated financial statements incorporate the financial statements of the company and its subsidiary undertakings, which were prepared to 30 June 2024, using the principles of merger accounting. Where there has been a group reorganisation within the ultimate parent company group the directors will adopt merger accounting when all the conditions of merger accounting have been satisfied. Intra-group transactions, balances and results are eliminated fully on consolidation. Uniform accounting policies have been used across the group.

Subsidiaries are consolidated in the group’s financial statements from the date that control commences until the date that control ceases.

1.3
Going concern

The directors have prepared the financial statements on a going concern basis.

 

At 30 June 2024 the group had net current assets of £2,295,251 (2023: net current liabilities of £66,360). The directors have prepared cash flow forecasts which include relevant downside sensitivities and demonstrate that the group has access to sufficient liquidity to sustain its operations for a period of at least 12 months from the date of approval of the financial statements. It is the therefore the directors' view that it is appropriate to prepare the financial statements on a going concern basis.

1.4
Property income

Property income is the total amount receivable by the group from the rental of its investment property during the period, excluding VAT.

1.5
Investment property

Investment property, which is property held to earn rentals and/or for capital appreciation, is initially recognised at cost, which includes the purchase cost and any directly attributable expenditure. Subsequently it is measured at fair value at the reporting end date. Changes in fair value are recognised in profit or loss.

ARK EUROPE HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
1
Accounting policies
(Continued)
- 11 -
1.6
Investment in subsidiaries

Interests in subsidiaries, associates and jointly controlled entities are initially measured at cost and subsequently measured at cost less any accumulated impairment losses. The investments are assessed for impairment at each reporting date and any impairment losses or reversals of impairment losses are recognised immediately in comprehensive income or expense.

 

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.

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 group 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 group's balance sheet when the group becomes party to the contractual provisions of the instrument.

 

Financial assets and liabilities are offset and 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.

Impairment of financial assets

Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.

 

Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.

 

If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.

Derecognition of financial assets

Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the group transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.

ARK EUROPE HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
1
Accounting policies
(Continued)
- 12 -
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 group 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.

Derecognition of financial liabilities

Financial liabilities are derecognised when the group's contractual obligations expire or are discharged or cancelled.

1.9
Equity instruments

Equity instruments issued by the group 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 group.

1.10
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 profit and loss account 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 group’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.

Deferred tax

Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing 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 profit and loss account, 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 if, and only if, there is 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.

ARK EUROPE HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 13 -
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. Judgements, estimates and assumptions have been made in relation to the valuation of the company's investment property (see note 8). 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.

3
Auditor's remuneration
Unaudited
Year
Period
ended
4 July 2022 to
30 June 2024
30 June 2023
Fees payable to the company's auditor and associates:
£
£
For audit services
Audit of the financial statements of the group and company
18,900
10,000
Audit of the financial statements of the company's subsidiaries
6,621
8,625
25,521
18,625
4
Employees

There were no employees during the year (2023: none).

 

No directors' remuneration was paid in either the current year or prior period. The directors are remunerated by other group undertakings for which no allocations are made to the company.

5
Interest receivable and similar income
Year
Period
ended
4 July 2022 to
30 June 2024
30 June 2023
£
£
Interest income
Interest on bank deposits
1,300
-
0
6
Change in fair value of investment property
Year
Period
ended
4 July 2022 to
30 June 2024
30 June 2023
£
£
Fair value losses
Loss on change in fair value of investment property
975,026
-
ARK EUROPE HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 14 -
7
Taxation

No deferred tax has been recognised at 30 June 2024 or 30 June 2023 in relation to carried forward losses or capital allowances. This is due to the uncertainty and judgement associated with both the estimation of the financial value, as well as uncertainty around the timing of when such assets would be utilised.

8
Investment property
Group
Company
2024
2024
£
£
Fair value
At 1 July 2023
-
-
Additions
6,480,656
-
Revaluations
(975,026)
-
At 30 June 2024
5,505,630
-

Investment property represents the data centre campus in Brussels, Belgium. The investment property has been revalued as at 30 June 2024 at fair value by the directors with reference to market-based evidence and expected future cash flows derived from the assets. An independent professional valuation of the Brussels site was carried out by a RICS qualified valuer as at 30 June 2024 and this was taken into consideration in the directors' assessment of the fair value. The valuation methodology used to establish the value of the investment property includes a number of key assumptions. These include, but are not limited to; occupancy rates, contracted and uncontracted income forecasts, operational costs, capital replacement costs, planning permission, the stage of development, committed costs to complete the project, discount rates and exit yields.

If investment properties were stated on an historical cost basis rather than a fair value basis, the amounts would have been included as follows:
Group
Unaudited
Company
2024
2023
2024
2023
£
£
£
£
Cost
6,480,656
-
-
-
ARK EUROPE HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 15 -
9
Investments
Company
2024
2023
£
£
Investments in subsidiaries
9,179,428
88
Movements in investments in subsidiaries
Company
Shares in subsidiaries
£
Cost or valuation
At 1 July 2023
88
Additions
9,179,340
At 30 June 2024
9,179,428
Carrying amount
At 30 June 2024
9,179,428
At 30 June 2023
88

The company owns 100% of the issued share capital of Ark Brussels SRL. Ark Brussels SRL is incorporated in Belgium and has the principal activity of the ownership, development and leasing of data centres.

 

During the year the company invested an additional £9,179,340 in Ark Brussels SRL.

10
Debtors
Group
Unaudited
Company
2024
2023
2024
2023
Amounts falling due within one year:
£
£
£
£
Amounts owed by group undertakings
100
100
1,793
562,469
Other debtors
14,501
885,001
-
0
-
0
Prepayments
3,276
-
0
-
0
-
0
17,877
885,101
1,793
562,469

Amounts owed by group undertakings are unsecured, have no fixed date of repayment and are repayable on demand.

ARK EUROPE HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 16 -
11
Creditors: amounts falling due within one year
Group
Unaudited
Company
2024
2023
2024
2023
£
£
£
£
Trade creditors
30,220
109,426
-
0
-
0
Amounts owed to group undertakings
-
0
239,618
-
0
2,000
Amounts owed to related undertakings
-
0
579,458
-
0
579,458
Accruals
148,749
23,464
20,446
10,000
178,969
951,966
20,446
591,458

Amounts owed to group undertakings are unsecured, interest free, have no fixed date of repayment and are repayable on demand.

 

Amounts owed to related undertakings are unsecured, interest free, have no fixed date of repayment and are repayable on demand.

12
Share capital
Group and company
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
9,379,558
100
9,379,558
100

On 18 August 2023 9,379,458 ordinary shares of £1 each were issued at par.

13
Operating lease commitments

During the year the group entered into a long-term lease for its investment property with an annual charge of £201,741 (2023: £Nil). The lease runs until 30 March 2053.

At the reporting end date the group had outstanding commitments for future minimum lease payments under non-cancellable operating leases, as follows:

Group
Company
2024
2023
2024
2023
£
£
£
£
Within one year
201,741
-
-
-
Between two and five years
806,964
-
-
-
In over five years
4,790,932
-
-
-
5,799,637
-
-
-
14
Events after the reporting date

There have been no post balance sheet events requiring disclosure in the notes to the financial statements.

ARK EUROPE HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 17 -
15
Control

The immediate parent undertaking is Ark Midco Limited, a company registered in the Isle of Man, and the ultimate parent undertaking is Ark Capital Partners I LP Inc., a limited partnership registered in the Isle of Man. The limited partnership is controlled by its partners.

 

Ark Midco Limited is the parent undertaking of the smallest group of undertakings to consolidate these financial statements at 30 June 2024. The consolidated financial statements of Ark Midco Limited are available from its registered office at First Names House, Victoria Road, Douglas, Isle of Man, IM2 4DF.

 

Ark Capital Partners I LP Inc. is the parent undertaking of the largest group of undertakings to consolidate these financial statements at 30 June 2024. The consolidated financial statements of Ark Capital Partners I LP Inc. are available from its general partner Goshawk GP Limited, First Names House, Victoria Road, Douglas, Isle of Man, IM2 4DF.

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