Company registration number 11202145 (England and Wales)
ARK ESTATES ENFIELD LIMITED
ANNUAL REPORT AND AUDITED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024
ARK ESTATES ENFIELD 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
11202145
Registered office
Spring Park
Westwells Road
Hawthorn
Corsham
Wiltshire
SN13 9GB
Independent auditors
PricewaterhouseCoopers CI LLP
37 Esplanade
St Helier
Jersey
JE1 4XA
ARK ESTATES ENFIELD LIMITED
CONTENTS
Page(s)
Strategic report
1 - 2
Directors' report
3 - 4
Independent auditors' report
5 - 8
Statement of comprehensive income
9
Balance sheet
10
Statement of changes in equity
11
Notes to the financial statements
12 - 19
ARK ESTATES ENFIELD LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 30 JUNE 2024
- 1 -

The directors present the strategic report for the year ended 30 June 2024.

Principal activities

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

Business review

Ark Estates Enfield Limited owns Meridian Park, which had 16.36MW (2023: 16.36MW) of built capacity as of 30 June 2024.

Financial indicators

The Board of Directors are therefore pleased to report the following financial results:

 

2024 (£)

2023 (£)

Change (£)

% Change

Property income

11,052,041

10,583,299

468,742

+4.43%

Operating profit

8,395,412

7,472,833

922,579

+4.08%

Interest payable

(1,701,064)

(1,788,241)

87,177

-4.88%

Profit for year

840,134

9,299,422

(8,459,288)

-90.97%

Investment property

206,600,000

214,280,000

7,680,000

-3.58%

Total equity

152,371,334

151,531,200

840,134

-0.55%


Non-financial indicators

Alongside the financial performance, the key performance indicators of the Company include;

In addition, the group will continue to build out new facilities on its existing sites, and through its related undertakings at additional sites in and around London – Union Park, Longcross Park and Alliance Park – to meet the growing demand for colocation and cloud data centres.

The business plan of Ark is built around a long-term strategy and significant progress has been made during the year to 30 June 2024. During the current reporting period the group has secured new long-term contracts with customers from both public and private sectors across multiple industries including UK Government, Financial Services, Telecommunications, Cloud Providers and IT. The sales pipeline remains strong and further growth is expected through Ark’s existing customers, framework agreements and new customers. The Board of Directors believe that the Company’s position within the marketplace remains strong, and we look forward to further expansion in 2025.

 


ARK ESTATES ENFIELD LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 2 -
Principal risks, uncertainties and dependencies

Principal risks faced by the Company are identified and monitored through a regular process that is reviewed by Ark's Senior Leadership Team and presented to the Board of Directors. Principal risks include, but are not limited to;

The Company manages these risks on an ongoing basis, and the Board of Directors believe that the Company’s offering within the marketplace remains strong, and that it is well positioned to continue its growth.

Post balance sheet events

No events have occurred since the balance sheet date which significantly affect the Company.

On behalf of the board

H T Owen
Director
17 December 2024
ARK ESTATES ENFIELD LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 30 JUNE 2024
- 3 -

The directors present their annual report and audited financial statements for the year ended 30 June 2024.

Results and dividends

The results for the year are set out on page 9.

 

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 final dividend (2023: nil).

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 company had net current liabilities of £32,208,655. This position included current liabilities owed to the parent undertaking of £38,226,698 (see Note 11) to Ark Estates Holdings Limited. The directors have received a letter of support confirming that Ark Estates Holdings Limited will not recall amounts owed to them by the company within 12 months of the date the financial statements are approved and issued. The directors have prepared cashflow forecasts which include relevant downside sensitivities and demonstrate that the company 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.

 

The directors are therefore satisfied that the company has sufficient group finance facilities and support from the ultimate parent at their disposal to meet working capital requirements, finance the capital commitments disclosed in Note 16 and meet other obligations and commitments as they fall due.

Independent auditors

In accordance with the company's articles, a resolution proposing that PricewaterhouseCoopers CI LLP be reappointed as auditor of the company will be put at a General Meeting.

ARK ESTATES ENFIELD LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 4 -
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 have prepared the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards, comprising FRS102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland", 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. The directors confirm that they have complied with these responsibilities.

Strategic report

The company has chosen in accordance with Companies Act 2006, s. 414C(11) to set out in the company's strategic report information required by Large and Medium-sized Companies and Groups (Accounts and Reports) Regulations 2008, Sch. 7 to be contained in the directors' report. It has done so in respect of the review of the business and the principal risks and uncertainties it faces.

Statement of disclosure to auditor

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

 

 

Medium-sized companies exemption

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

On behalf of the board
H T Owen
Director
17 December 2024
ARK ESTATES ENFIELD LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF ARK ESTATES ENFIELD LIMITED
- 5 -

Independent auditors’ report to members of Ark Estates Enfield Limited

Report on the audit of the financial statements

Opinion

In our opinion, Ark Estates Enfield Limited’s financial statements:

We have audited the financial statements, included within the Annual Report and Audited Financial Statements (the “Annual Report”), which comprise: the balance sheet as at 30 June 2024; the statement of comprehensive income and the statement of changes in equity 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 company 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 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 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 ESTATES ENFIELD LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF ARK ESTATES ENFIELD LIMITED (CONTINUED)
- 6 -

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 Strategic report and 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.

Strategic report and Directors' report

In our opinion, based on the work undertaken in the course of the audit, the information given in the Strategic report and 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 company and its environment obtained in the course of the audit, we did not identify any material misstatements in the Strategic report and 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 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.

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 ESTATES ENFIELD LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF ARK ESTATES ENFIELD LIMITED (CONTINUED)
- 7 -

Based on our understanding of the company 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 ESTATES ENFIELD LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF ARK ESTATES ENFIELD LIMITED (CONTINUED)
- 8 -

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.

Ian Tait (Senior Statutory Auditor)
for and on behalf of PricewaterhouseCoopers CI LLP
Chartered Accountants and Statutory Auditors
Jersey
18 December 2024
ARK ESTATES ENFIELD LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 30 JUNE 2024
- 9 -
2024
2023
Notes
£
£
Property income
11,052,041
10,583,299
Property expenses
(2,635,193)
(3,084,673)
Gross profit
8,416,848
7,498,626
Administrative expenses
(21,436)
(25,793)
Operating profit
8,395,412
7,472,833
Interest receivable and similar income
5
807
-
0
Interest payable and similar expenses
6
(1,701,064)
(1,788,241)
Change in fair value of investment property
7
(7,806,695)
4,819,773
(Loss)/profit before taxation
(1,111,540)
10,504,365
Taxation
8
1,951,674
(1,204,943)
Profit and total comprehensive income for the financial year
840,134
9,299,422

The notes on pages 12 to 19 form part of these financial statements.

ARK ESTATES ENFIELD LIMITED
BALANCE SHEET
AS AT
30 JUNE 2024
30 June 2024
- 10 -
2024
2023
Notes
£
£
£
£
Fixed assets
Investment property
9
206,600,000
214,280,000
Current assets
Debtors
10
6,522,984
-
0
Cash at bank and in hand
1,557
392
6,524,541
392
Creditors: amounts falling due within one year
11
(38,733,196)
(38,777,507)
Net current liabilities
(32,208,655)
(38,777,115)
Total assets less current liabilities
174,391,345
175,502,885
Provisions for liabilities
Deferred tax liability
12
22,020,011
23,971,685
(22,020,011)
(23,971,685)
Net assets
152,371,334
151,531,200
Capital and reserves
Called up share capital
13
99,231,173
99,231,173
Profit and loss reserves
53,140,161
52,300,027
Total equity
152,371,334
151,531,200

The notes on pages 12 to 19 form part of these financial statements.

These financial statements have been prepared in accordance with the provisions relating to medium-sized companies.

The financial statements on pages 9 to 19 were approved by the board of directors and authorised for issue on
17 December 2024
17 December 2024
and are signed on its behalf by:
H T Owen
I S Perryment
Director
Director
Company registration number 11202145
ARK ESTATES ENFIELD LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 JUNE 2024
- 11 -
Share capital
Profit and loss reserves
Total
£
£
£
Balance at 1 July 2022
99,231,173
43,000,605
142,231,778
Year ended 30 June 2023:
Profit and total comprehensive income
-
9,299,422
9,299,422
Balance at 30 June 2023
99,231,173
52,300,027
151,531,200
Year ended 30 June 2024:
Profit and total comprehensive income
-
0
840,134
840,134
Balance at 30 June 2024
99,231,173
53,140,161
152,371,334

The notes on pages 12 to 19 form part of these financial statements.

ARK ESTATES ENFIELD LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024
- 12 -
1
Accounting policies
Company information

Ark Estates Enfield Limited is a private company limited by shares incorporated in England and Wales. The registered office is Spring Park, Westwells Road, Hawthorn, Corsham, Wiltshire, SN13 9GB.

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, modified to include investment properties at fair value. The principal accounting policies adopted have been applied consistently in the current and prior year. These 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 Ark Estates Holdings Limited. These consolidated financial statements are available from Companies House.

1.2
Going concern

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

 

At 30 June 2024 the company had net current liabilities of £32,208,655. This position included current liabilities owed to the parent undertaking of £38,226,698 (see Note 11) to Ark Estates Holdings Limited. The directors have received a letter of support confirming that Ark Estates Holdings Limited will not recall amounts owed to them by the company within 12 months of the date the financial statements are approved and issued. The directors have prepared cashflow forecasts which include relevant downside sensitivities and demonstrate that the company 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.

 

The directors are therefore satisfied that the company has sufficient group finance facilities and support from the ultimate parent at their disposal to meet working capital requirements, finance the capital commitments disclosed in Note 16 and meet other obligations and commitments as they fall due.

1.3
Property income

Property income is the total amount receivable by the company from the rental of its data centre buildings during the period, excluding VAT.

1.4
Property expenses

Property expenses includes those costs directly attributable to the maintenance, security, running and fit out of data centres located at Meridian Park. Costs are recognised in the period to which they relate, exclusive of VAT.

ARK ESTATES ENFIELD LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
1
Accounting policies
(Continued)
- 13 -
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 the statement of comprehensive income.

1.6
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.

1.7
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.

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 comprehensive income or expense.

 

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 comprehensive income or expense.

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 company 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.

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.

ARK ESTATES ENFIELD LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
1
Accounting policies
(Continued)
- 14 -
Basic financial liabilities

Basic financial liabilities, including creditors and loans from fellow group companies, 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 company’s contractual obligations expire or are discharged or cancelled.

1.8
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.

1.9
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 company’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 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.

1.10

Finance costs

Finance costs of financial liabilities are recognised in the profit or loss account over the term of such instruments at a constant rate on the carrying amount.

 

Finance costs which are directly attributable to the construction of tangible fixed assets are capitalised as part of the cost of those assets. The commencement of capitalisation begins when both finance costs and expenditures for the assets are being incurred and activities that are necessary to prepare the asset for use are in progress. Capitalisation ceases when substantially all the activities that are necessary to prepare the asset for use are complete.

ARK ESTATES ENFIELD LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 15 -
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 9). 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
2024
2023
Fees payable to the company's auditor and associates:
£
£
For audit services
Audit of the financial statements of the company
22,000
20,150
For other services
Other taxation services
-
0
5,000
4
Employees

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

 

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

5
Interest receivable and similar income
2024
2023
£
£
Interest income
Interest on bank deposits
807
-
0
6
Interest payable and similar expenses
2024
2023
£
£
Interest payable to parent undertaking (see note 11)
1,701,064
1,788,241
7
Change in fair value of investment property
2024
2023
£
£
Fair value (losses)/gains
Changes in the fair value of investment property
(7,806,695)
4,819,773
ARK ESTATES ENFIELD LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 16 -
8
Taxation
2024
2023
£
£
Deferred tax
Origination and reversal of timing differences
(1,951,674)
1,204,943

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

2024
2023
£
£
(Loss)/profit before taxation
(1,111,540)
10,504,365
Expected tax (credit)/charge based on the standard rate of corporation tax in the UK of 25.00% (2023: 20.50%)
(277,885)
2,153,395
Losses/(gains) not taxable
1,951,674
(988,053)
Tax effect of utilisation of tax losses not previously recognised
(700,259)
(743,978)
Group relief
(972,172)
-
0
Permanent capital allowances in excess of depreciation
(1,358)
(421,364)
Effect of revaluations of investments
(1,951,674)
1,204,943
Taxation (credit)/charge for the year
(1,951,674)
1,204,943
9
Investment property
2024
2024
£
£
Fair value
At 1 July
214,280,000
206,470,000
Additions
126,695
2,990,227
Revaluations
(7,806,695)
4,819,773
At 30 June
206,600,000
214,280,000

Investment property represents data centre known as Meridian Park. 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 Meridian Park 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, discount rates and exit yields.

ARK ESTATES ENFIELD LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
9
Investment property
(Continued)
- 17 -
If investment properties were stated on an historical cost basis rather than a fair value basis, the amounts would have been included as follows:
2024
2023
£
£
Cost
118,519,955
118,393,260
10
Debtors
2024
2023
Amounts falling due within one year:
£
£
Amounts owed by group undertakings
6,522,984
-
0

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

11
Creditors: amounts falling due within one year
2024
2023
£
£
Trade creditors
299
47,108
Amounts owed to parent undertaking
38,226,698
38,236,042
Taxation and social security
435,318
369,555
Other creditors - construction retentions
49,031
99,202
Accruals
21,850
25,600
38,733,196
38,777,507

Amounts owed to parent undertaking are unsecured, have no fixed date of repayment and are repayable on demand. Interest is payable at 4.5% (2023: 4.5%) per annum (see Note 6).

12
Deferred taxation

The following are the major deferred tax liabilities and assets recognised by the company and movements thereon:

Liabilities
Liabilities
2024
2023
Balances:
£
£
Revaluations
22,020,011
23,971,685
ARK ESTATES ENFIELD LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
12
Deferred taxation
(Continued)
- 18 -
2024
Movements in the year:
£
Liability at 1 July 2023
23,971,685
Credit to profit or loss
(1,951,674)
Liability at 30 June 2024
22,020,011

No deferred tax has been recognised at either 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.

13
Share capital
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
99,231,173
99,231,173
99,231,173
99,231,173
14
Financial commitments, guarantees and contingent liabilities

The assets of the Company have been pledged as security against a bank loan held by Ark Estates Holdings Limited, which is the Company's immediate parent company, also controlled by Ark Capital Partners I LP Inc. For full details of the bank loan, please refer to the financial statements of Ark Estates Holdings Limited available at Companies House.

15
Operating lease commitments
Lessor

At the reporting end date the company had contracted with tenants for the following minimum lease payments:

 

2024
2023
£
£
Within one year
9,492,601
11,024,465
Between two and five years
669,078
9,977,943
In over five years
12,748
38,111
10,174,427
21,040,519
16
Capital commitments

Amounts contracted for but not provided in the financial statements:

2024
2023
£
£
Investment property development expenditure
58,808
157,177
ARK ESTATES ENFIELD LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 19 -
17
Events after the reporting date

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

18
Control

The immediate parent company is Ark Estates Holdings Limited, a company registered in England and Wales, 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 Estates Holdings 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 Estates Holdings Limited are available from Companies House.

 

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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