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Registered Number: SC676464
LCI QUARTERMILE PROPCO LIMITED
FINANCIAL STATEMENTS
INFORMATION FOR FILING WITH THE REGISTRAR
FOR THE YEAR ENDED 31 DECEMBER 2023
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LCI QUARTERMILE PROPCO LIMITED
REGISTERED NUMBER: SC676464
BALANCE SHEET
AS AT 31 DECEMBER 2023
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Debtors: Amounts falling due within one year
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Creditors: Amounts falling due within one year
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Total assets less current liabilities
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Creditors: Amounts falling due after more than one year
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Investment property reserve
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The financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies regime and in accordance with the provisions of FRS 102 Section 1A - small entities.
The financial statements have been delivered in accordance with the provisions applicable to companies subject to the small companies regime.
The Company has opted not to file the statement of comprehensive income in accordance with provisions applicable to companies subject to the small companies' regime.
The financial statements were approved and authorised for issue by the Board and were signed on its behalf by:
................................................
D Kleuters
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LCI QUARTERMILE PROPCO LIMITED
REGISTERED NUMBER: SC676464
BALANCE SHEET (CONTINUED)
AS AT 31 DECEMBER 2023
The notes on pages 4 to 13 form part of these financial statements.
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LCI QUARTERMILE PROPCO LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2023
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Investment property revaluation reserve
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Transfer of revaluation deficit
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Comprehensive income for the year
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Transfer of revaluation deficit
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Total comprehensive income for the year
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The notes on pages 4 to 13 form part of these financial statements.
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LCI QUARTERMILE PROPCO LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
LCI Quartermile PropCo Limited is a private Company limited by shares incorporated in Scotland. The Company registration number is SC676464. The registered office and principal place of business is 15 Atholl Crescent, Edinburgh, EH3 8HA.
2.Accounting policies
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Basis of preparation of financial statements
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The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Section 1A of Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and the Companies Act 2006.
The financial statements are rounded to the nearest Pound Sterling.
The following principal accounting policies have been applied:
The Directors have prepared and reviewed financial forecasts and the cash flow requirements to meet the Company's financial objectives. KanAm Grund Kapitalverwaltungsgesellschaft mbH, the parent undertaking, has agreed to support the Company for a period of at least 12 months from the date of approval of these financial statements.
As such, the directors consider it appropriate for the financial statements to be prepared on a going concern basis.
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Foreign currency translation
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Functional and presentation currency
The Company's functional and presentational currency is Pound Sterling.
Transactions and balances
Foreign currency transactions are translated into the functional currency using the spot exchange rates at the dates of the transactions.
At each period end foreign currency monetary items are translated using the closing rate. Non-monetary items measured at historical cost are translated using the exchange rate at the date of the transaction and non-monetary items measured at fair value are measured using the exchange rate when fair value was determined.
Foreign exchange gains and losses resulting from the settlement of transactions and from the translation at period-end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognised in profit or loss except when deferred in other comprehensive income as qualifying cash flow hedges.
Foreign exchange gains and losses that relate to borrowings and cash and cash equivalents are presented in the Statement of Comprehensive Income within 'finance income or costs'. All other foreign exchange gains and losses are presented in profit or loss within 'other operating income'.
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LCI QUARTERMILE PROPCO LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
2.Accounting policies (continued)
Turnover is recognised to the extent that it is probable that the economic benefits will flow to the Company and the turnover can be reliably measured. Turnover is measured as the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. The following criteria must also be met before turnover is recognised:
Rendering of services
Turnover from a contract to provide services is recognised in the period in which the services are provided in accordance with the stage of completion of the contract when all of the following conditions are satisfied:
∙the amount of turnover can be measured reliably;
∙it is probable that the Company will receive the consideration due under the contract;
∙the stage of completion of the contract at the end of the reporting period can be measured reliably; and
∙the costs incurred and the costs to complete the contract can be measured reliably.
Finance costs are charged to profit or loss over the term of the debt using the effective interest method so that the amount charged is at a constant rate on the carrying amount. Issue costs are initially recognised as a reduction in the proceeds of the associated capital instrument.
All borrowing costs are recognised in profit or loss in the year in which they are incurred.
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LCI QUARTERMILE PROPCO LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
2.Accounting policies (continued)
Tax is recognised in profit or loss except that a charge attributable to an item of income and expense recognised as other comprehensive income or to an item recognised directly in equity is also recognised in other comprehensive income or directly in equity respectively.
The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the Balance Sheet date in the countries where the Company operates and generates income.
Deferred tax balances are recognised in respect of all timing differences that have originated but not reversed by the Balance Sheet date, except that:
∙The recognition of deferred tax assets is limited to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits; and
∙Any deferred tax balances are reversed if and when all conditions for retaining associated tax allowances have been met.
Deferred tax balances are not recognised in respect of permanent differences except in respect of business combinations, when deferred tax is recognised on the differences between the fair values of assets acquired and the future tax deductions available for them and the differences between the fair values of liabilities acquired and the amount that will be assessed for tax. Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the balance sheet date.
Investment property is carried at fair value determined annually by external valuers and derived from the current market rents and investment property yields for comparable real estate, adjusted if necessary for any difference in the nature, location or condition of the specific asset. No depreciation is provided. Changes in fair value are recognised in profit or loss.
Short-term debtors are measured at transaction price, less any impairment. Loans receivable are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method, less any impairment.
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Cash and cash equivalents
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Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours. Cash equivalents are highly liquid investments that mature in no more than three months from the date of acquisition and that are readily convertible to known amounts of cash with insignificant risk of change in value.
Short-term creditors are measured at the transaction price. Other financial liabilities, including bank loans, are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method.
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LCI QUARTERMILE PROPCO LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
2.Accounting policies (continued)
The Company has elected to apply the provisions of Section 11 “Basic Financial Instruments” of FRS 102 to all of its financial instruments.
The Company has elected to apply the recognition and measurement provisions of IFRS 9 Financial Instruments (as adopted by the UK Endorsement Board) with the disclosure requirements of Sections 11 and 12 and the other presentation requirements of FRS 102.
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.
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The average monthly number of employees, including directors, during the year was 4 (2022 - 4).
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LCI QUARTERMILE PROPCO LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
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Freehold investment property
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The 2023 valuations were made by Dorit Krauss of Keunecke, Stoehr & Partner and Uwe Ditt of Ditt Wicht Partner. Dorit is certified according to DIN EN ISO/IECX 17024 for DIAZert (LF) and sworn in by the IHK Berlin for the valuation of developed and undeveloped properties. Uwe is publicly appointed and sworn in by the Chamber of Industry and Commerce for Rheinhessen, Mainz for the valuation of developed and undeveloped properties., on an open market value for existing use basis.
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Net deficit in movement properties
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LCI QUARTERMILE PROPCO LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
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Amounts owed by group undertakings
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Prepayments and accrued income
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Amounts owed by group undertakings is a loan advanced to KanAm Grund Kapitalverwaltungsgesellschaft mbH on 22 December 2023.
The loan accrues interest of 5.3% per annum from date of advance and is repayable on demand.
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Cash and cash equivalents
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Creditors: Amounts falling due within one year
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Accruals and deferred income
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LCI QUARTERMILE PROPCO LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
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Creditors: Amounts falling due after more than one year
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The bank loan is secured on the investment property held. There is no security on the other loan.
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Analysis of the maturity of loans is given below:
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Amounts falling due 2-5 years
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Amounts falling due after more than 5 years
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Allotted, called up and fully paid
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12,253,796 (2022 - 12,253,796) Ordinary shares of £1.00 each
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LCI QUARTERMILE PROPCO LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
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Correction of Unlawful Distribution
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During the financial year ended 31 December 2023, the company declared and paid a dividend of £1,600,000. Upon review, it was determined that this distribution exceeded the available distributable reserves by £1,600,000, thereby contravening Section 847 of the Companies Act 2006. This distribution was not in compliance with the applicable legal requirements and was subsequently corrected by recognising a loan from the shareholders.
Details of Correction:
Unlawful Distribution:
∙Amount: £1,600,000
∙Date of Distribution: 22 December 2023
∙Nature of Distribution: Dividend
Correction by Recognising a Loan:
∙Amount: £1,600,000
∙Date of Recognition: 22 December 2023
∙Terms of Loan: Interest rate of 5.3% from date of advance, repayable on demand.
∙Parties Involved: KanAm Grund Kapitalverwaltungsgesellschaft mbH.
Impact on Financial Statements:
The correction of the unlawful distribution by recognising a loan has been reflected in the financial statements as follows:
∙Balance Sheet: Loan receivable of £1,600,000
∙Increase in Retained Earnings: £1,600,000
∙No impact on the income statement as the correction involves balance sheet adjustments.
The directors acknowledge this error and have taken the following corrective actions:
∙Shareholders who received the unlawful distribution have been notified and arrangements are being made for the repayment of the excess amount.
∙The company has implemented stricter financial controls and procedures to ensure compliance with distribution regulations in the future.
∙The financial statements have been adjusted to reflect the repayment arrangements, and the excess distribution has been reclassified from retained earnings to a loan from shareholders.
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LCI QUARTERMILE PROPCO LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
Investment property revaluation reserve
The Investment property revaluation reserve represents the accumulated revaluation gains and losses on freehold investment property. In accordance with the Company's accounting policy, fair value movements in freehold investment property are recognised initially through profit or loss and subsequently transferred into the Investment property revaluation reserve. The Investment property revaluation reserve is unrealised and undistributable when in surplus but losses are realised and impact distributable profits when in deficit.
As at 31 December 2023, the revaluation reserve was in deficit by £6,781,510 and therefore treated as realised and reduces the Company's distributable profits by the same amount.
Profit and loss account
The Profit and loss account represents the accumulation of retained profits, net of dividends, which are in the form of distributable reserves.
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Rent receivable under non-cancellable operating leases
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At 31 December 2023 the Company had future minimum lease payments due under non-cancellable operating leases for each of the following periods:
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Later than 1 year and not later than 5 years
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The non-cancellable operating leases are subject to a break clause at 22 May 2026 (one lease) or 30 January 2028 (five leases).
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Related party transactions
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In 2021, LCI Quartermile PropCo Limited secured a loan from its majority shareholder KanAm Grund Kapitalverwaltungsgesellschaft mbH for £22,625,000.
LCI Quartermile PropCo Limited paid KanAm Grund Kapitalverwaltungsgesellschaft mbH £1,215,780 (2022 - £1,215,780) in loan interest for the accounting period. AMA fees were paid to KanAm Grund Kapitalverwaltungsgesellschaft mbH according to the AMA fee agreement of £50,819 (2022 - £70,089), at the year end £69,906 was payable to KanAm Grund Kapitalverwaltungsgesellschaft mbH (2022- £19,086).
The Directors are considered to be the Key Management Personnel of the Company. Two of the Directors are remunerated via the Group. The remaining Directors are remunerated through a different company, Independent Directors and Trustees Limited, which invoiced LCI Quartermile PropCo Limited a total of £7,212 (2022 - £6,416).
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LCI QUARTERMILE PROPCO LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
KanAm Grund Kapitalverwaltungsgesellschaft mbH is the immediate and ultimate parent registered in Germany with its registered office being Große Gallustraße 18, 60312 Frankfurt am Main. LCI Quartermile PropCo Limited is not included in any consolidated financial statements prepared by other members of the Group.
The ultimate controlling party is Mr Dietrich Rudolf Eberhard Von Boetticher, by virtue of his 56.3% shareholding in KanAm Grund Kapitalverwaltungsgesellschaft mbH.
The auditor's report on the financial statements for the year ended 31 December 2023 was unqualified.
The audit report was signed on 4 April 2025 by Ryan Swann BA FCA (Senior Statutory Auditor) on behalf of MHA.
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