Company registration number 06329935 (England and Wales)
NE INVESTMENTS LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 OCTOBER 2023
NE INVESTMENTS LIMITED
COMPANY INFORMATION
Directors
Mr B Kennedy
Mr P Kennedy
Mr S Kennedy
Mr A Morison
Company number
06329935
Registered office
Hamilton House
Church Street
Altrincham
WA14 4DR
Auditor
Lopian Gross Barnett & Co
1st Floor, Cloister House
Riverside
New Bailey Street
Manchester
M3 5FS
Business address
Hamilton House
Church Street
Altrincham
WA14 4DR
NE INVESTMENTS LIMITED
CONTENTS
Page
Strategic report
1 - 2
Directors' report
3 - 4
Directors' responsibilities statement
5
Independent auditor's report
6 - 8
Group statement of comprehensive income
9
Group balance sheet
10
Company balance sheet
11
Group statement of changes in equity
12
Company statement of changes in equity
13
Group statement of cash flows
14
Company statement of cash flows
15
Notes to the financial statements
16 - 25
NE INVESTMENTS LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 30 OCTOBER 2023
- 1 -

The directors present the strategic report for the year ended 30 October 2023.

Review of the business

As in previous years the group has no continuing trade and instead exists solely to hold investments in the Four Seasons Group and loan notes issued. In the current year the interest on the loan notes has been formally waived by the note holder, resulting in a significant write back of interest accrued to date which totals £27.4m. Additionally, the investments in the Four Seasons Group have continued to perform well, resulting in a reversal of the impairment previously made against them of £14.9m. These transactions have resulted in a significant profit of £42.3m for the year.

 

The results for the period and the financial position at the balance sheet date are considered satisfactory by the directors.

Principal risks and uncertainties

The Companies Act 2006 requires that the business review contains a description of the principal risks and uncertainties facing the group. It is true that the group, like most businesses is subject to a variety of risks which could have a negative impact on its performance and financial condition, including the general economic climate as well as specific industry sectors.

 

The directors believe that regular reviews ensure that the business is well placed to deal with any challenges, though the continuing economic uncertainties in the short to medium term.

 

The Board is responsible for the group’s systems of internal control and risk management, and for reviewing its effectiveness. In discharging and delegating that responsibility, the Board has regard to the balance of risk, cost and opportunity. The monitoring of risk by the group is also undertaken with the preparation of monthly management accounts comparing actual with budgeted figures, with material variances being reported on.

Development and performance

The position of the group at the balance sheet date remains reasonably strong, is in line with with directors expectations and can be summarised as follows:

 

Gross assets - £15,376,672 (2022 as restated: £6,915,043)

 

Shareholders negative equity - £270,441 (2022 as restated: £42,534,829)

Key performance indicators

The group monitors cash flow as part of its day to day control procedures. Current cash position and future cash requirements are closely tracked to ensure appropriate facilities are available as and when required.

 

The financial key performance indicator is operating profit which is summarised below:

 

Operating profit     £42,264,388 (2022: £1,795,499 loss)

Future developments

The Four Seasons group, which consists of Latium Investments Partnership and it's subsidiaries are currently held for sale and are being actively marketed. A full list of subsidiaries is presented in note 8 of these financial statements.

NE INVESTMENTS LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 30 OCTOBER 2023
- 2 -
Promoting the success of the company - S172 Statement

The Directors of the company have acted in accordance with their duties codified in law, which include their duty to act in a way which they consider, in good faith, would most likely promote the success of the Company for the benefit of the members as a whole, having regards to all stakeholders and matters set out in s172(1) of the Companies Act 2016, including:

 

a) the likely consequences of any decision in the long term;

b) the interests of the company's employees;

c) the need to foster the company's business relationships with suppliers, customers and others;

d) the impact of the company's operations on the community and the environment;

e) the desirability of the company maintaining a reputation for high standards of business conduct; and

f) the need to act fairly as between members of the company.

On behalf of the board

Mr B Kennedy
Director
23 January 2025
NE INVESTMENTS LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 30 OCTOBER 2023
- 3 -

The directors present their annual report and financial statements for the year ended 30 October 2023.

Principal activities

The principal activity of the company and group continued to be that of a holding company.

Results and dividends

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

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:

Mr B Kennedy
Mr P Kennedy
Mr S Kennedy
Mr A Morison
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.

Financial instruments
Principal risks and uncertainties

These are fully referenced in the strategic report.

Business relationships

The directors have had regard to the need to foster the company's business relationships with suppliers, customers and others, including on the principal decisions taken by the company during the financial year.

Post reporting date events

This is discussed in note 15.

Future developments

This is discussed in the strategic report.

Energy and carbon report

As the group has not consumed more than 40,000 kWh of energy in this reporting period, it qualifies as a low energy user under these regulations and is not required to report on its emissions, energy consumption or energy efficiency activities.

Statement of disclosure to auditor

So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the auditor of the company is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the auditor of the company is aware of that information.

NE INVESTMENTS LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 30 OCTOBER 2023
- 4 -
On behalf of the board
Mr B Kennedy
Director
NE INVESTMENTS LIMITED
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 30 OCTOBER 2023
- 5 -

The directors are responsible for preparing the Annual Report and the financial statements in accordance with applicable law and regulations.

 

Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the 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.

NE INVESTMENTS LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF NE INVESTMENTS LIMITED
- 6 -
Opinion

We have audited the financial statements of NE Investments Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 30 October 2023 which comprise the group statement of comprehensive income, the group balance sheet, the company balance sheet, the group statement of changes in equity, the company statement of changes in equity, the group statement of cash flows, the company statement of cash flows and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the group and parent company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

 

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the group's and parent company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

 

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

Other information

The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The directors are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

 

We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

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

NE INVESTMENTS LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF NE INVESTMENTS LIMITED
- 7 -
Matters on which we are required to report by exception

In the light of the knowledge and understanding of the group and the parent company and their environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the directors' report.

 

We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:

Responsibilities of directors

As explained more fully in the directors' responsibilities statement, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the directors are responsible for assessing the parent 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 parent company or to cease operations, or have no realistic alternative but to do so.

Auditor's responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

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.

 

 

 

 

 

 

In addressing the risk of fraud due to management override of internal controls we tested the appropriateness of journal entries and assessed whether the judgements made in making accounting estimates were indicative of a potential bias.

NE INVESTMENTS LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF NE INVESTMENTS LIMITED
- 8 -

Due to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material misstatements in the financial statements, even though we have properly planned and performed our audit in accordance with auditing standards. For example, as with any audit, there remained a higher risk of non-detection of irregularities, as these may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal controls. We are not responsible for preventing fraud or non-compliance with laws and regulations and cannot be expected to detect all fraud and non-compliance with laws and regulations.

A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.

Use of our report

This report is made solely to the company’s members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company’s members those matters we are required to state to them in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company’s members as a body, for our audit work, for this report, or for the opinions we have formed.

Nathaniel Davidson BA(Hons) ACA (Senior Statutory Auditor)
For and on behalf of Lopian Gross Barnett & Co, Statutory Auditor
Chartered Accountants
1st Floor, Cloister House
Riverside
New Bailey Street
Manchester
M3 5FS
23 January 2025
NE INVESTMENTS LIMITED
GROUP STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 30 OCTOBER 2023
- 9 -
2023
2022
as restated
Notes
£
£
Administrative expenses
27,373,696
(1,795,499)
Amounts written off investments
5
14,900,000
-
Profit/(loss) before taxation
42,273,696
(1,795,499)
Tax on profit/(loss)
6
(9,308)
-
0
Profit/(loss) for the financial year
42,264,388
(1,795,499)
Profit/(loss) for the financial year is all attributable to the owners of the parent company.
Total comprehensive income for the year is all attributable to the owners of the parent company.

In the current year the interest accrued on loan notes has been formally waived by the note holder, resulting in a significant write back of interest accrued to date which totals £27.4m. The investments in the four seasons group have continued to perform well, resulting in a reversal of the impairment previously made against them of £14.9m. These transactions have resulted in a significant profit of £42.3m for the year.

NE INVESTMENTS LIMITED
GROUP BALANCE SHEET
AS AT
30 OCTOBER 2023
30 October 2023
- 10 -
2023
2022
as restated
Notes
£
£
£
£
Current assets
Debtors
9
476,670
6,915,041
Investments
10
14,900,002
2
15,376,672
6,915,043
Creditors: amounts falling due within one year
11
(563,323)
(6,978,886)
Net current assets/(liabilities)
14,813,349
(63,843)
Creditors: amounts falling due after more than one year
12
(15,083,790)
(42,470,986)
Net liabilities
(270,441)
(42,534,829)
Capital and reserves
Called up share capital
14
100,000
100,000
Profit and loss reserves
(370,441)
(42,634,829)
Total equity
(270,441)
(42,534,829)
The financial statements were approved by the board of directors and authorised for issue on 23 January 2025 and are signed on its behalf by:
23 January 2025
Mr B Kennedy
Director
Company registration number 06329935 (England and Wales)
NE INVESTMENTS LIMITED
COMPANY BALANCE SHEET
AS AT 30 OCTOBER 2023
30 October 2023
- 11 -
2023
2022
as restated
Notes
£
£
£
£
Fixed assets
Investments
7
2
2
Current assets
Debtors
9
476,670
6,915,041
Creditors: amounts falling due within one year
11
(554,015)
(6,978,886)
Net current liabilities
(77,345)
(63,845)
Net liabilities
(77,343)
(63,843)
Capital and reserves
Called up share capital
14
100,000
100,000
Profit and loss reserves
(177,343)
(163,843)
Total equity
(77,343)
(63,843)

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 £13,500 (2022 - £7,499 loss).

The financial statements were approved by the board of directors and authorised for issue on 23 January 2025 and are signed on its behalf by:
23 January 2025
Mr B Kennedy
Director
Company registration number 06329935 (England and Wales)
NE INVESTMENTS LIMITED
GROUP STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 OCTOBER 2023
- 12 -
Share capital
Profit and loss reserves
Total
£
£
£
As restated for the period ended 30 October 2022:
Balance at 31 October 2021
100,000
(40,839,330)
(40,739,330)
Year ended 30 October 2022:
Loss and total comprehensive income
-
(1,795,499)
(1,795,499)
Balance at 30 October 2022
100,000
(42,634,829)
(42,534,829)
Year ended 30 October 2023:
Profit and total comprehensive income
-
42,264,388
42,264,388
Balance at 30 October 2023
100,000
(370,441)
(270,441)
NE INVESTMENTS LIMITED
COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 OCTOBER 2023
- 13 -
Share capital
Profit and loss reserves
Total
£
£
£
As restated for the period ended 30 October 2022:
Balance at 31 October 2021
100,000
(156,344)
(56,344)
Year ended 30 October 2022:
Loss and total comprehensive income for the year
-
(7,499)
(7,499)
Balance at 30 October 2022
100,000
(163,843)
(63,843)
Year ended 30 October 2023:
Profit and total comprehensive income
-
(13,500)
(13,500)
Balance at 30 October 2023
100,000
(177,343)
(77,343)
NE INVESTMENTS LIMITED
GROUP STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 30 OCTOBER 2023
- 14 -
2023
2022
as restated
Notes
£
£
£
£
Cash flows from operating activities
Net increase in cash and cash equivalents
-
-
Cash and cash equivalents at beginning of year
-
0
-
0
Cash and cash equivalents at end of year
-
0
-
0
The group held no cash and makes no cash transactions during the year.
NE INVESTMENTS LIMITED
COMPANY STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 30 OCTOBER 2023
- 15 -
2023
2022
Notes
£
£
£
£
Cash flows from operating activities
Net increase in cash and cash equivalents
-
-
Cash and cash equivalents at beginning of year
-
0
-
0
Cash and cash equivalents at end of year
-
0
-
0
The group held no cash and makes no cash transactions during the year.
NE INVESTMENTS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 OCTOBER 2023
- 16 -
1
Accounting policies
Company information

NE Investments Limited (“the company”) is a private limited company domiciled and incorporated in England

and Wales. The registered office is Hamilton House, Church Street, Altrincham, England, WA14 4DR.

The group consists of NE Investments Limited and all of its subsidiaries.

 

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 the revaluation of freehold properties and to include investment properties and certain financial instruments at fair value. The principal accounting policies adopted are set out below.

1.2
Business combinations

In the parent company financial statements, the cost of a business combination is the fair value at the acquisition date of the assets given, equity instruments issued and liabilities incurred or assumed, plus costs directly attributable to the business combination. The excess of the cost of a business combination over the fair value of the identifiable assets, liabilities and contingent liabilities acquired is recognised as goodwill. The cost of the combination includes the estimated amount of contingent consideration that is probable and can be measured reliably, and is adjusted for changes in contingent consideration after the acquisition date. Provisional fair values recognised for business combinations in previous periods are adjusted retrospectively for final fair values determined in the 12 months following the acquisition date. Investments in subsidiaries, joint ventures and associates are accounted for at cost less impairment.

 

Deferred tax is recognised on differences between the value of assets (other than goodwill) and liabilities recognised in a business combination accounted for using the purchase method and the amounts that can be deducted or assessed for tax, considering the manner in which the carrying amount of the asset or liability is expected to be recovered or settled. The deferred tax recognised is adjusted against goodwill or negative goodwill.

1.3
Basis of consolidation

The consolidated group financial statements consist of the financial statements of the parent company NE Investments Limited together with all entities controlled by the parent company (its subsidiaries) except for those that are considered to be current asset investments held exclusively with a view to sale.

 

All financial statements are made up to 30 October 2023. Where necessary, adjustments are made to the financial statements of subsidiaries to bring the accounting policies used into line with those used by other members of the group.

 

All intra-group transactions, balances and unrealised gains on transactions between group companies are eliminated on consolidation. Unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred.

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

NE INVESTMENTS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 OCTOBER 2023
1
Accounting policies
(Continued)
- 17 -
1.4
Going concern

At the time of approving the financial statements, the directors have a reasonable expectation that the group has adequate resources to continue in operational existence for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.

 

1.5
Fixed asset investments

Equity investments are measured at fair value through profit or loss, except for those equity investments that are not publicly traded and whose fair value cannot otherwise be measured reliably, which are recognised at cost less impairment until a reliable measure of fair value becomes available.

 

In the parent company financial statements, investments in subsidiaries, associates and jointly controlled entities are initially measured at cost and subsequently measured at cost less any accumulated impairment losses.

A subsidiary is an entity controlled by the group. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.

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 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.

NE INVESTMENTS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 OCTOBER 2023
1
Accounting policies
(Continued)
- 18 -
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.

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.

1.8
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.

1.9
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 group’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.

NE INVESTMENTS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 OCTOBER 2023
1
Accounting policies
(Continued)
- 19 -
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.

1.10
Employee benefits

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

 

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

 

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

2
Judgements and key sources of estimation uncertainty

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

 

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

3
Auditor's remuneration
2023
2022
Fees payable to the company's auditor and associates:
£
£
For audit services
Audit of the financial statements of the group and company
12,500
11,000
For other services
All other non-audit services
1,000
1,000
NE INVESTMENTS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 OCTOBER 2023
- 20 -
4
Employees

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

Group
Company
2023
2022
2023
2022
Number
Number
Number
Number
Total
-
-
-
0
-
0
5
Amounts written off investments
2023
2022
£
£
Amounts written back to financial assets held at cost
14,900,000
-

In 2024 the Four Seasons Group entities, which represent the current asset investments, have demonstrated significant profitability at the EBITDA level and offers have been received from prospective buyers at values exceeding cost. Therefore the provision made against these investments has been reversed to recognise at full cost.

6
Taxation
2023
2022
£
£
Current tax
UK corporation tax on profits for the current period
9,308
-
0

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

2023
2022
£
£
Profit/(loss) before taxation
42,273,696
(1,795,499)
Expected tax charge/(credit) based on the standard rate of corporation tax in the UK of 22.50% (2022: 19.00%)
9,511,582
(341,145)
Tax effect of expenses that are not deductible in determining taxable profit
(3,352,500)
-
0
Tax effect of utilisation of tax losses not previously recognised
(6,141,368)
-
0
Unutilised tax losses carried forward
-
0
341,145
Group relief
(8,406)
-
0
Taxation charge
9,308
-
NE INVESTMENTS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 OCTOBER 2023
- 21 -
7
Fixed asset investments
Group
Company
2023
2022
2023
2022
Notes
£
£
£
£
Investments in subsidiaries
8
-
0
-
0
2
2
Movements in fixed asset investments
Company
Shares in subsidiaries
£
Cost or valuation
At 31 October 2022 and 30 October 2023
2
Carrying amount
At 30 October 2023
2
At 30 October 2022
2
8
Subsidiaries

Details of the company's consolidated subsidiaries at 30 October 2023 are as follows:

Name of undertaking
Registered office
Class of
% Held
shares held
Direct
Latium USA Partnership 1 Limited
UK
Ordinary
100.00
Latium USA Partnership 2 Limited
UK
Ordinary
100.00
NE INVESTMENTS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 OCTOBER 2023
8
Subsidiaries
(Continued)
- 22 -

The Group has taken advantage of the exemptions in S394A of the companies act and has not consolidated the subsidiary Glass House Construction Limited (and it's subsidiary) as these entities are considered to be Dormant.

 

The Group holds an investment in Latium Investments Partnership and it's subsidiaries. As these investments are all held with a view to sale they have been excluded from consolidation in line with FRS 102 Section 9 and instead presented as a current asset investment at cost less impairment. The unconsolidated subsidiaries have aggregate turnover of £116.5m, aggregated EBITDA of £10.8m and aggregated equity of £44.5m as at 30 October 2023.

 

A full list of the subsidiaries held indirectly through Latium Investments Partnership is:

 

 

9
Debtors
Group
Company
2023
2022
2023
2022
as restated
as restated
Amounts falling due within one year:
£
£
£
£
Other debtors
476,670
6,915,041
476,670
6,915,041
NE INVESTMENTS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 OCTOBER 2023
- 23 -
10
Current asset investments
Group
Company
2023
2022
2023
2022
£
£
£
£
Investments in subsidiaries held for sale
14,900,002
2
-
-

Current asset investments reflect the group's investment in Latium Investments Partnership (DE) which is currently held for sale.

11
Creditors: amounts falling due within one year
Group
Company
2023
2022
2023
2022
as restated
as restated
£
£
£
£
Corporation tax payable
9,308
-
0
-
0
-
0
Other creditors
530,515
6,968,886
530,515
6,968,886
Accruals and deferred income
23,500
10,000
23,500
10,000
563,323
6,978,886
554,015
6,978,886
12
Creditors: amounts falling due after more than one year
Group
Company
2023
2022
2023
2022
Notes
£
£
£
£
Other borrowings
13
15,083,790
42,470,986
-
0
-
0
13
Loans and overdrafts
Group
Company
2023
2022
2023
2022
£
£
£
£
Other loans
15,083,790
42,470,986
-
0
-
0
Payable after one year
15,083,790
42,470,986
-
0
-
0

The long-term loans relate to loan stock issued in September 2006 & 2007.

 

NE INVESTMENTS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 OCTOBER 2023
- 24 -
14
Share capital
Group and company
2023
2022
2023
2022
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
100,000
100,000
100,000
100,000
15
Events after the reporting date

There were no post balance sheet events which require disclosure at the balance sheet date.

16
Controlling party

The ultimate controlling party is Brian Kennedy.

 

17
Cash generated from group operations
2023
2022
£
£
Profit/(loss) after taxation
42,264,388
(1,795,499)
Adjustments for:
Taxation charged
9,308
-
0
Other gains and losses
(14,900,000)
-
Movements in working capital:
Decrease/(increase) in debtors
6,438,371
(4,251,633)
(Decrease)/increase in creditors
(33,812,067)
6,047,132
Cash generated from operations
-
-

The group held no cash and makes no cash transactions during the year.

18
Cash generated from operations - company
2023
2022
£
£
Loss after taxation
(13,500)
(7,499)
Movements in working capital:
Decrease/(increase) in debtors
6,438,371
(4,251,633)
(Decrease)/increase in creditors
(6,424,871)
4,259,132
Cash generated from operations
-
-

The group held no cash and makes no cash transactions during the year.

NE INVESTMENTS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 OCTOBER 2023
- 25 -
19
Analysis of changes in net debt - group
2023
£
Opening net debt
Loans
(42,470,986)
Changes in net debt arising from:
Other non-cash changes
27,387,196
Closing net debt as analysed below
(15,083,790)
Closing net debt
Loans
(15,083,790)
20
Prior period adjustment
Adjustments to equity - group
The prior period adjustments do not give rise to any effect upon equity.
Adjustments to equity - company
The prior period adjustments do not give rise to any effect upon equity.
Notes to reconciliation

An adjustment has been made to the comparative figures to reduce intercompany debtors and intercompany creditors by £381,582. This reflects changes in the amounts owed from the Four Seasons group to NE Investments on behalf of Latium Management Services during the prior year which were not previously recognised.

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