COMPANY REGISTRATION NUMBER:
14957653
Filleted Unaudited Financial Statements |
|
Statement of Financial Position |
|
31 March 2024
Fixed assets
Investment property |
4 |
21,720,239 |
|
|
|
Current assets
Creditors: amounts falling due within one year |
6 |
195,404 |
|
--------- |
Net current assets |
518,606 |
|
------------- |
Total assets less current liabilities |
22,238,845 |
|
|
|
Creditors: amounts falling due after more than one year |
7 |
14,108,000 |
|
------------- |
Net assets |
8,130,845 |
|
------------- |
|
|
|
Capital and reserves
Called up share capital |
9 |
8,395,854 |
Profit and loss account |
(
265,009) |
|
------------ |
Shareholders funds |
8,130,845 |
|
------------ |
|
|
|
These financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies' regime and in accordance with Section 1A of FRS 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'.
In accordance with section 444 of the Companies Act 2006, the statement of comprehensive income has not been delivered.
For the period ending 31 March 2024 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.
Directors' responsibilities:
-
The members have not required the company to obtain an audit of its financial statements for the period in question in accordance with section 476
;
-
The directors acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and the preparation of financial statements
.
These financial statements were approved by the
board of directors
and authorised for issue on
27 December 2024
, and are signed on behalf of the board by:
Dr N Atrissi |
Mr A Dawson |
Director |
Director |
|
|
Company registration number:
14957653
Notes to the Financial Statements |
|
Period from 24 June 2023 to 31 March 2024
1.
General information
The company is a private company limited by shares, registered in England and Wales. The address of the registered office is 114-118 Southampton Row, London, WC1B5AA.
2.
Statement of compliance
These financial statements have been prepared in compliance with Section 1A of FRS 102, 'The Financial Reporting Standard applicable in the UK and the Republic of Ireland'.
3.
Accounting policies
Basis of preparation
The financial statements have been prepared in accordance with Financial Reporting Standard 102 (FRS 102), as issued by the Financial Reporting Council, and the Companies Act 2006 applicable to entities reporting under this standard. The financial statements have been prepared on the historical cost basis, as modified by the revaluation of certain financial assets and liabilities and investment properties measured at fair value through profit or loss. The financial statements are prepared in sterling, which is the functional currency of the entity.
Finance costs
Borrowing costs are recognised in the profit and loss account in the period in which they are incurred. Loan arrangement fees on the raising of debt are initially deferred against the debt and subsequently amortised over the term of the debt facility at a constant rate on the carrying amount.
Going concern
After reviewing the company’s forecasts and projections, the directors have reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. The company therefore confirms to adopt the going concerns in preparing the financial statements.
Fair value estimation
The company’s investment properties are measured at fair value at each reporting date. The directors determine the fair value of the properties based on their knowledge of the local market, relevant comparable transactions, and the rental income potential of the properties. While no formal external valuation is conducted, the directors use market-based evidence such as comparable property sales, recent lease agreements, and general market trends to estimate fair value. Key assumptions used by the directors in determining the fair value of the investment properties include, location, market conditions, potential future rental growth, interest rates and market trends. The directors are of the view that the book value of the investment properties reflect their fair value as at 31 March 2024.
Significant judgements and estimates
Preparation of the financial statements requires management to make significant judgements and estimates. The items in the financial statements where these judgements and estimates have been made include.
Expenses
Expenses are recognised in the Statement of Comprehensive Income on an accrual basis, matching costs to the period in which the associated revenues are earned. Expenses are recorded when incurred, regardless of when payment is made, ensuring the financial statements reflect the economic substance of transactions.
Creditors
Short term creditors are measured at the transaction price. Other financial facilities including loans are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method.
Share capital
Share capital is recognised as equity when issued and measured at the fair value of consideration received. Issuance costs are deducted from equity. Shares are classified as equity or liabilities based on their terms.
Current and deferred tax
The taxation expense represents the aggregate amount of current and deferred tax recognised in the reporting period. Tax is recognised in profit or loss, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. In this case, tax is recognised in other comprehensive income or directly in equity, respectively. Current tax is recognised on taxable profit for the current and past periods. Current tax is measured at the amounts of tax expected to pay or recover using the tax rates and laws that have been enacted or substantively enacted at the reporting date.
Deferred tax is recognised in respect of all timing differences at the reporting date. Unrelieved tax losses and other 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. Deferred tax is measured using the tax rates and laws that have been enacted or substantively enacted by the reporting date that are expected to apply to the reversal of the timing difference.
Investment property
Investment property is initially recorded at cost, which includes purchase price and any directly attributable expenditure. Investment property is revalued to its fair value at each reporting date and any changes in fair value are recognised in profit or loss. If a reliable measure of fair value is no longer available without undue cost or effort for an item of investment property, it shall be transferred to tangible assets and treated as such until it is expected that fair value will be reliably measurable on an on-going basis.
Impairment of assets
A review for indicators of impairment is carried out at each reporting date, with the recoverable amount being estimated where such indicators exist. Where the carrying value exceeds the recoverable amount, the asset is impaired accordingly. Prior impairments are also reviewed for possible reversal at each reporting date. For the purposes of impairment testing, when it is not possible to estimate the recoverable amount of an individual asset, an estimate is made of the recoverable amount of the cash-generating unit to which the asset belongs. The cash-generating unit is the smallest identifiable group of assets that includes the asset and generates cash inflows that largely independent of the cash inflows from other assets or groups of assets.
Financial instruments
A financial asset or a financial liability is recognised only when the entity becomes a party to the contractual provisions of the instrument. Basic financial instruments are initially recognised at the transaction price, unless the arrangement constitutes a financing transaction, where it is recognised at the present value of the future payments discounted at a market rate of interest for a similar debt instrument. Debt instruments are subsequently measured at amortised cost. Financial assets that are measured at cost or amortised cost are reviewed for objective evidence of impairment at the end of each reporting date. If there is objective evidence of impairment, an impairment loss is recognised in profit or loss immediately. Any reversals of impairment are recognised in profit or loss immediately, to the extent that the reversal does not result in a carrying amount of the financial asset that exceeds what the carrying amount would have been had the impairment not previously been recognised.
4.
Investment property
|
Investment property |
|
£ |
Cost |
|
At 24 June 2023 |
– |
Additions |
21,720,239 |
|
------------- |
At 31 March 2024 |
21,720,239 |
|
------------- |
Fair value adjustment(s) |
|
At 24 June 2023 and 31 March 2024 |
– |
|
------------- |
Carrying amount |
|
At 31 March 2024 |
21,720,239 |
|
------------- |
|
|
As of 31 March 2024, the company owns two freehold properties located in London, which were acquired on 26 January 2024. The directors of the company confirm that the fair value currently disclosed falls within their assessed range. As at 31 March 2024, they are confident that the property value of £21,720,239 disclosed in the financial statements is appropriate and reflects the asset's fair value. The carrying value of the properties includes £496,912 in capitalised costs, comprising property refurbishment costs and professional fees related to the acquisition and other directly attributable costs. These costs have been capitalised in accordance with the company’s accounting policy for investment property assets.
5.
Debtors
|
31 Mar 24 |
|
£ |
Deferred tax asset |
88,336 |
Called up share capital not paid |
395,120 |
Prepayments |
184,232 |
Other debtors |
46,322 |
|
--------- |
|
714,010 |
|
--------- |
|
|
6.
Creditors:
amounts falling due within one year
|
31 Mar 24 |
|
£ |
Trade creditors |
151,168 |
Accruals |
44,236 |
|
--------- |
|
195,404 |
|
--------- |
|
|
7.
Creditors:
amounts falling due after more than one year
|
31 Mar 24 |
|
£ |
Bank loans |
14,108,000 |
|
------------- |
|
|
The company has secured loan of £14,108,000 from Fiduciam Nominees Limited. The loan facility was agreed upon on 22 January 2023. The loan terms are 2.5 years, with no capital payments required during the loan term. The principal will be repaid in full at the end of the term. The loans are secured against the company’s investment properties.
8.
Deferred tax
The deferred tax included in the statement of financial position is as follows:
|
31 Mar 24 |
|
£ |
Included in debtors (note 5) |
88,336 |
|
-------- |
|
|
The deferred tax account consists of the tax effect of timing differences in respect of:
|
31 Mar 24 |
|
£ |
Unused tax losses |
(
88,336) |
|
-------- |
|
|
9.
Called up share capital
Issued, called up and fully paid
|
31 Mar 24 |
|
No. |
£ |
Ordinary shares of £ 1 each |
8,395,854 |
8,395,854 |
|
------------ |
------------ |
|
|
|
10.
Related party transactions
As at 31 March 2024, the company is owed £441,442.26 by Farringdon HoldCo Limited includes unpaid share capital of £395,119.97.
11.
Controlling party
The immediate controlling party of the company is Farringdon HoldCo Limited, and ultimate controlling party of the company is Farringdon Investments LP. Both entities were incorporated in Jersey.