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REGISTERED NUMBER: 03871240 (England and Wales)










STRATEGIC REPORT, REPORT OF THE DIRECTORS AND

FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 AUGUST 2024

FOR

REDCASTLE (214 OXFORD STREET) LIMITED

REDCASTLE (214 OXFORD STREET) LIMITED (REGISTERED NUMBER: 03871240)






CONTENTS OF THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2024




Page

Company Information 1

Strategic Report 2

Report of the Directors 3

Report of the Independent Auditors 5

Income Statement 8

Other Comprehensive Income 9

Balance Sheet 10

Statement of Changes in Equity 11

Cash Flow Statement 12

Notes to the Cash Flow Statement 13

Notes to the Financial Statements 14


REDCASTLE (214 OXFORD STREET) LIMITED

COMPANY INFORMATION
FOR THE YEAR ENDED 31 AUGUST 2024







DIRECTORS: Timothy Farlam
Jenna Grader
Mark Skinner
Constantinos Mourouzides





REGISTERED OFFICE: c/o Websters
12 Melcombe Place
London
NW1 6JJ





REGISTERED NUMBER: 03871240 (England and Wales)





AUDITORS: Thorne Lancaster Parker
Chartered Accountants & Statutory Auditors
5th Floor
Palladium House
1-4 Argyll Street
London
W1F 7TA

REDCASTLE (214 OXFORD STREET) LIMITED (REGISTERED NUMBER: 03871240)

STRATEGIC REPORT
FOR THE YEAR ENDED 31 AUGUST 2024

The directors present their strategic report of Redcastle (214 Oxford Street) Limited (“the Company”) for the year ended 31August2024.

PRINCIPAL ACTIVITIES
The principal activity of the Company is property investment and leasing. The Company holds a headlease interest in 214/234 (even numbers) Oxford Street, 272/286 (even numbers) Regent Street, 32/39 (all numbers) Great Castle Street and 1/13 (odd numbers) Great Portland Street, London W1. The Company is a private company limited by shares, incorporated and domiciled in England and Wales in the UK with its registered office C/O Websters, 12 Melcombe Place, London NW1 6JJ.

RESULTS FOR THE YEAR
The reported loss for the financial year amounted to £29,578K (2023: £89,252K loss).

As at 31 August 2024 the Company had net assets of £269,018K (2023: £298,596K).

BUSINESS REVIEW
A review of Ingka Group's operations during this financial year can be found in the Ingka Group Annual Summary and Sustainability Report FY24 and on the online reporting website on Ingka.com. These resources provide a transparent account of the group's performance, highlighting areas where progress is being made as well as where challenges are faced.

PRINCIPAL DEVELOPMENTS
During the year the company has continued a significant renovation project in respect of the headlease interest referred to in Principal Activities above. The total investment for these leasehold improvement works is forecasted to be approximately £100m, funded by Ingka Group.

FUTURE DEVELOPMENTS
The directors expect the Company to remain in its current form and to be profitable in future periods.

On completion of the leasehold improvements referred to above, it is intended for approximately 36% of the floor area of the headlease interest to be let to Ingka Group companies at rentals to be agreed on an arm's length basis and reach 100% occupancy in the overall headlease interest.

MANAGEMENT AND REPORTING OF PRINCIPAL RISKS

The directors of the Company manage the Company's risks at a group level. The risks of Ingka Investments Real Estate B.V. and all of its group companies are managed centrally as the risks this Company faces are materially dependent on the group as a whole. Key business risks include rental vacancies and capital expenditure risks relating to the ongoing refurbishment. Risks are monitored on an ongoing basis by the directors, and strategies are developed to mitigate such risks and minimise their impact.

The Company is dependent on the success and continuation of trade within other group companies, particularly as it is both reliant on refurbishment funding and also as it is intended for group companies to pay rent and service charge on an arm's length basis to the Company.

ON BEHALF OF THE BOARD:





Jenna Grader - Director


28 March 2025

REDCASTLE (214 OXFORD STREET) LIMITED (REGISTERED NUMBER: 03871240)

REPORT OF THE DIRECTORS
FOR THE YEAR ENDED 31 AUGUST 2024

The directors present their report with the financial statements of the company for the year ended 31 August 2024.

PRINCIPAL ACTIVITY
The principal activity of the Company is property investment and leasing.

DIVIDENDS
No dividends will be distributed for the year ended 31 August 2024 (2023: £Nil).

DIRECTORS
The directors shown below have held office during the whole of the period from 1 September 2023 to the date of this report.

Timothy Farlam
Jenna Grader
Mark Skinner

Other changes in directors holding office are as follows:

Constantinos Mourouzides - appointed 27 September 2023

QUALIFYING THIRD PARTY INDEMNITY PROVISIONS
As permitted by the Articles of Association the directors have the benefit of an indemnity which is a qualifying third party indemnity provision as defined by Section 234 of the Companies Act 2006. The indemnity was in force throughout this financial year and is currently in force. The Company also purchased and maintained throughout the financial year directors' and officers' liability insurance in respect of itself and its directors.

MATTERS COVERED IN THE STRATEGIC REPORT
The principal activities, business review, principal developments, financial risk management, KPI's and future developments are all discussed in the Strategic Report on page 2.

GOING CONCERN
In the opinion of the directors, following preparation of financial forecasts, it is appropriate to prepare the financial statements on the going concern basis and the directors expect the Company to be in a position to meet its financial commitments for the foreseeable future, being at least 12 months from the date of approval of the financial statements. This conclusion also takes account of the group ability and intent to fund planned leasehold improvement works.

The Company has at the time of approval of these accounts no external borrowings outside the group and a working capital cycle enabling the company to meet all liabilities as they fall due. As a consequence of this, the directors believe that the company is well placed to manage its business risks successfully in the current economic climate and, accordingly, they believe that the going concern basis is appropriate.

STATEMENT OF DIRECTORS' RESPONSIBILITIES
The directors are responsible for preparing the Strategic Report, the Report of the Directors 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 company and of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to:

-select suitable accounting policies and then apply them consistently;
-make judgements and accounting estimates that are reasonable and prudent;
-state whether applicable accounting standards have been followed, subject to any material departures disclosed and
explained in the financial statements;
-prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.

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.

REDCASTLE (214 OXFORD STREET) LIMITED (REGISTERED NUMBER: 03871240)

REPORT OF THE DIRECTORS
FOR THE YEAR ENDED 31 AUGUST 2024


STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS
In accordance with Section 418 of the Companies Act, each of the persons who are directors at the time when this Directors' Report is approved has confirmed that:

- so far as the director is aware, there is no relevant audit information of which the Company's auditors are unaware, and
- the director has taken all the steps that ought to have been taken as a director in order to be aware of any relevant audit information and to establish that the Company's auditors are aware of that information.

AUDITORS
The Company has passed an elective resolution to dispense with the annual appointment of auditors. Thorne Lancaster Parker will continue as auditors in accordance with and subject to Section 487 of the Companies Act 2006.

ON BEHALF OF THE BOARD:





Jenna Grader - Director


28 March 2025

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF
REDCASTLE (214 OXFORD STREET) LIMITED

Opinion
We have audited the financial statements of Redcastle (214 Oxford Street) Limited (the 'company') for the year ended 31 August 2024 which comprise the Statement of Comprehensive income, Statement of Financial Position, Statement of Changes in Equity and Notes to the Financial Statements, including a summary of 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:
-give a true and fair view of the state of the company's affairs as at 31 August 2024 and of its loss for the year then ended;
-have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
-have been prepared in accordance with the requirements of the Companies Act 2006.

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 Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the 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 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 directors are responsible for the other information. The other information comprises the information in the Report of the Directors, but does not include the financial statements and our Report of the Auditors thereon.

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.

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 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 the audit:
- the information given in the Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and
- the Report of the Directors has been prepared in accordance with applicable legal requirements.

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF
REDCASTLE (214 OXFORD STREET) LIMITED


Matters on which we are required to report by exception
In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic Report or the Report of the Directors.

We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion:
- adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
- the financial statements are not in agreement with the accounting records and returns; or
- certain disclosures of directors' remuneration specified by law are not made; or
- we have not received all the information and explanations we require for our audit; or
- the directors were not entitled to prepare the financial statements in accordance with the small companies regime and take advantage of the small companies' exemption from the requirement to prepare a Strategic Report or in preparing the Report of the Directors.

Responsibilities of directors
As explained more fully in the Statement of Directors' Responsibilities set out on page two, 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 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 a Report of the Auditors 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.

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

Explanation as to what extent the audit was considered capable of detecting irregularities, including fraud
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect irregularities, including fraud. 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. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below. However, the primary responsibility for the prevention and detection of fraud rests with both those charged with governance of the entity and management.

Our approach was as follows:

- We obtained an understanding of the legal and regulatory frameworks that are applicable to the company and determined that the most significant are those that relate to the reporting framework (FRS 102 and the Companies Act 2006) and compliance with the relevant direct and indirect tax regulation in the United Kingdom. In addition, the Company has to comply with laws and regulations relating to its operations, including UK employment laws, health and safety, and GDPR.

- We understood how Redcastle (214 Oxford Street) Limited is complying with those frameworks by making enquires with management and those charged with governance to understand how the Company maintains and communicates policies and procedures in these areas. We understood any controls put in place by management to reduce the opportunities of fraudulent transactions.


REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF
REDCASTLE (214 OXFORD STREET) LIMITED


- We assessed the susceptibility of the company's financial statements to material misstatements including how fraud might occur through internal team conversations and inquiry of management and those charged with governance. Through these procedures we determined there to be a risk of management override associated with revenue and a fraud risk around transactions at the year end. We have performed tests of detail, including understanding of the nature of the transactions, verifying that the margin is appropriate, and verifying the clerical accuracy of the revenue recognised. In relation to management override, we selected a sample from the entire population of journals, including manual journals, identifying specific transactions which did not meet our expectations, in order to investigate, understand and agree to source documentation. We selected a sample of revenue transactions recorded before the year end and obtained documentation to verify that revenue adjustments had been recorded in the appropriate period.

- Based on this understanding we designed our audit procedures to identify non-compliance with such laws and regulations. Our procedures involved verifying that material transactions are recorded in compliance with FRS 102 and where appropriate Companies Act 2006. Compliance with other operational laws and regulations were covered through our inquiry with no indication of non-compliance identified.

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Auditors.

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 a Report of the Auditors 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.




Neil Usher (Senior Statutory Auditor)
for and on behalf of Thorne Lancaster Parker
Chartered Accountants & Statutory Auditors
5th Floor
Palladium House
1-4 Argyll Street
London
W1F 7TA

23 April 2025

REDCASTLE (214 OXFORD STREET) LIMITED (REGISTERED NUMBER: 03871240)

INCOME STATEMENT
FOR THE YEAR ENDED 31 AUGUST 2024

31.8.24 31.8.23
Notes £'000 £'000

TURNOVER 13,614 15,827

Cost of sales (3,172 ) (5,859 )
GROSS PROFIT 10,442 9,968

Administrative expenses (361 ) (136 )
10,081 9,832

Other operating income 84 -
Gain/loss on revaluation of investment
property

(47,667

)

(137,922

)
OPERATING LOSS 5 (37,502 ) (128,090 )

Interest receivable and similar income 11 -
(37,491 ) (128,090 )

Interest payable and similar expenses 6 (1,593 ) (134 )
LOSS BEFORE TAXATION (39,084 ) (128,224 )

Tax on loss 7 9,506 38,972
LOSS FOR THE FINANCIAL YEAR (29,578 ) (89,252 )

REDCASTLE (214 OXFORD STREET) LIMITED (REGISTERED NUMBER: 03871240)

OTHER COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 AUGUST 2024

31.8.24 31.8.23
Notes £'000 £'000

LOSS FOR THE YEAR (29,578 ) (89,252 )


OTHER COMPREHENSIVE INCOME

Income tax relating to other comprehensive
income

-

-
OTHER COMPREHENSIVE INCOME FOR
THE YEAR, NET OF INCOME TAX

-

-
TOTAL COMPREHENSIVE INCOME FOR THE
YEAR

(29,578

)

(89,252

)

REDCASTLE (214 OXFORD STREET) LIMITED (REGISTERED NUMBER: 03871240)

BALANCE SHEET
31 AUGUST 2024

31.8.24 31.8.23
Notes £'000 £'000
FIXED ASSETS
Investment property 8 344,000 320,000

CURRENT ASSETS
Debtors 9 23,412 15,491

CREDITORS
Amounts falling due within one year 10 (66,079 ) (2,772 )
NET CURRENT (LIABILITIES)/ASSETS (42,667 ) 12,719
TOTAL ASSETS LESS CURRENT
LIABILITIES

301,333

332,719

PROVISIONS FOR LIABILITIES 12 (32,315 ) (34,123 )
NET ASSETS 269,018 298,596

CAPITAL AND RESERVES
Called up share capital 13 200,000 364,847
Capital redemption reserve 14 164,847 -
Retained earnings 14 (95,829 ) (66,251 )
SHAREHOLDERS' FUNDS 269,018 298,596

The financial statements were approved by the Board of Directors and authorised for issue on 28 March 2025 and were signed on its behalf by:




Mark Skinner - Director Jenna Grader - Director




Timothy Farlam - Director Constantinos Mourouzides - Director


REDCASTLE (214 OXFORD STREET) LIMITED (REGISTERED NUMBER: 03871240)

STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 AUGUST 2024

Called up Capital
share Retained redemption Total
capital earnings reserve equity
£'000 £'000 £'000 £'000
Balance at 1 September 2022 347,547 23,001 - 370,548

Changes in equity
Issue of share capital 17,300 - - 17,300
Total comprehensive income - (89,252 ) - (89,252 )
Balance at 31 August 2023 364,847 (66,251 ) - 298,596

Changes in equity
Issue of share capital (164,847 ) - - (164,847 )
Total comprehensive income - (29,578 ) 164,847 135,269
Balance at 31 August 2024 200,000 (95,829 ) 164,847 269,018

REDCASTLE (214 OXFORD STREET) LIMITED (REGISTERED NUMBER: 03871240)

CASH FLOW STATEMENT
FOR THE YEAR ENDED 31 AUGUST 2024

31.8.24 31.8.23
Notes £'000 £'000
Cash flows from operating activities
Cash generated from operations 1 12,079 8,560
Interest paid (1,593 ) (134 )
Net cash from operating activities 10,486 8,426

Cash flows from investing activities
Purchase of investment property (71,667 ) (21,284 )
Interest received 11 -
Net cash from investing activities (71,656 ) (21,284 )

Cash flows from financing activities
New loans in year 61,170 -
Loan repayments in year - (4,442 )
Share issue - 17,300
Net cash from financing activities 61,170 12,858

Increase in cash and cash equivalents - -
Cash and cash equivalents at beginning of
year

-

-

Cash and cash equivalents at end of year - -

REDCASTLE (214 OXFORD STREET) LIMITED (REGISTERED NUMBER: 03871240)

NOTES TO THE CASH FLOW STATEMENT
FOR THE YEAR ENDED 31 AUGUST 2024

1. RECONCILIATION OF LOSS BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS
31.8.24 31.8.23
£'000 £'000
Loss before taxation (39,084 ) (128,224 )
Loss on revaluation of fixed assets 47,667 137,922
Finance costs 1,593 134
Finance income (11 ) -
10,165 9,832
Increase in trade and other debtors (223 ) (530 )
Increase/(decrease) in trade and other creditors 2,137 (742 )
Cash generated from operations 12,079 8,560

REDCASTLE (214 OXFORD STREET) LIMITED (REGISTERED NUMBER: 03871240)

NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2024

1. STATUTORY INFORMATION

Redcastle (214 Oxford Street) Limited ("the Company") operates as a property investment and leasing company and is a wholly-owned subsidiary of the Ingka Group, registered in the Netherlands.

The Company is a private company limited by shares and is domiciled and incorporated in the United Kingdom. The address of its registered office is C/O Websters, 12 Melcombe Place, London NW1 6JJ.

2. STATEMENT OF COMPLIANCE

The financial statements of the Company have been prepared in compliance with United Kingdom Accounting Standards, comprising Financial Reporting Standard 102, "The Financial Reporting Standard applicable in the United Kingdom and the Republic of Ireland" ("FRS 102") and the Companies Act 2006.

3. ACCOUNTING POLICIES

Basis of preparing the financial statements
The financial statements have been prepared for the year ended 31 August 2024.

The Company's financial statements are prepared on a going concern basis, under the historical cost convention.

The Company's functional and presentational currency is the pound sterling. The financial statements are rounded to thousands.

The preparation of financial statements requires the use of certain critical accounting estimates. It also requires management to exercise its judgement in the process of applying the Company's accounting policies. The areas involving a higher degree of judgement or complexity, or areas where assumptions and estimates are significant to the financial statements, are disclosed in note 4.

From 18 January 2022, the directors have elected to classify the long leasehold property as an Investment Property (as defined by FRS102) and therefore the long leasehold property is held on the balance sheet at fair value.

Critical accounting judgements and key sources of estimation uncertainty
Estimates and judgements are continually evaluated and are based on historical experience and other factors, including expectation of future events that are believed to be reasonable under the circumstances.

The Company makes estimates, judgements and assumptions concerning the future. The resulting accounting estimates will, by definition, seldom equal the related actual results. The Company doesn't believe there have been any estimated, judgements or assumptions that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial period.

Turnover
Turnover represents rent and service charges receivable from external tenants. There was no turnover in the year from group undertakings.

Turnover accrues on a daily basis and is stated net of value added tax. All turnover arose within the United Kingdom.

REDCASTLE (214 OXFORD STREET) LIMITED (REGISTERED NUMBER: 03871240)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 AUGUST 2024

3. ACCOUNTING POLICIES - continued

Investment property
Investment Property is held on the balance sheet at its revalued amount. The revalued amount equates to the fair value at the date of revaluation less any depreciation or impairment losses subsequently accumulated. Revaluations are carried out regularly so that the carrying amount does not materially differ from using the fair value at the date of the balance sheet.

Any revaluation increase or decrease on the Investment Property is recognised in the Income Statement and held in the reserves as "Retained Earnings".

At each balance sheet date, the Company reviews the carrying amount of its Investment Property to determine whether there is any indication that that the asset has suffered an impairment loss. If any such indication exists the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss, if any.

If the recoverable amount of an asset is estimated to be less than its carrying amount, then the carrying amount of the asset is reduced to the recoverable amount. Impairment losses are recognised as an expense immediately.

Where an impairment loss subsequently reverses the carrying amount of the asset is increased to the revised estimate of its recoverable amount to the extent that the increased carrying amount does not exceed the carrying amount that would have been determined net of depreciation had no impairment loss been recognised for the asset in prior years.

Financial instruments
(i) Financial assets

Basic financial assets, including trade and other debtors and cash and bank balances are initially recognised at transaction price. 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. Such assets are subsequently measured at amortised cost using the effective interest method.

Financial assets that are measured at cost and amortised cost are assessed at the end of each reporting period for objective evidence of impairment. If objective evidence of impairment is found, an impairment loss is recognised in the profit and loss account.

(ii) Financial liabilities

Basic financial instruments, including trade and other creditors and loans from fellow group companies are initially recognised at transaction price.

Trade creditors are obligations to pay for goods and services that have been acquired in the ordinary course of business from suppliers. Trade creditors are recognised initially at transaction price and subsequently measure at amortised cost using the effective interest method.

(iii) Offsetting

Financial assets and liabilities are offset and the net amount reported in the balance sheet when there is an 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.

The Company only enters into basic financial instrument transactions that result in the recognition of financial assets and liabilities such as trade and other accounts receivable and payable, loans from banks and other third parties, loans to related parties and investments in non-puttable ordinary shares.

REDCASTLE (214 OXFORD STREET) LIMITED (REGISTERED NUMBER: 03871240)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 AUGUST 2024

3. ACCOUNTING POLICIES - continued

Other provisions
A provision is recognised when the Company has a legal or constructive obligation as a result of a past event and it is probable that an outflow of economic benefits will be required to settle the obligation.

Taxation
Tax expense for the period comprises current and deferred tax recognised in the reporting period. Tax is recognised in the profit and loss account.

Current tax
Current tax is the amount of corporation tax payable in respect of the taxable profit for the period or prior periods. Tax is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the period end.

Management periodically evaluates positions taken in tax returns with respect to situations in which applicable tax regulation is subject to interpretation. It establishes provisions where appropriate on the basis of amounts expected to be paid to the tax authorities.

Deferred tax
Deferred tax arises from timing differences that are differences between taxable profits and total comprehensive income as stated in the financial statements. These timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements.

Deferred tax is recognised on all timing differences at the reporting date. Unrelieved tax losses and other deferred tax assets are only recognised when 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 tax rates and laws that have been enacted or substantively enacted by the period end and that are expected to apply to the reversal of the timing difference.

Leased assets
Rentals payable under operating leases are charged to the profit and loss account on a straight-line basis over the lease term. Incentives to enter into an operating lease are credited to the profit and loss account, to reduce the lease expense, on a straight-line basis over the period of the lease.

Where the Company is committed to disposing of a leasehold property, provision is made for the expected direct costs of disposal, together with any net cash outflows under the lease during the period prior to disposal. The Company also provides for the unavoidable costs of vacant properties and, where properties are sublet, any shortfall between the rents payable to its landlords and those recovered under tenancy agreements. These provisions are discounted where the impact is material and unwind upon the earlier of lease expiry and disposal.

The Company also provides for dilapidations where there is an obligation to repair damages which occur during the life of the lease such as wear and tear. The cost is charged to the profit and loss account as the obligation arises.

Rental income is recognised in the profit and loss account on a straight-line basis over the term of the lease.

Going concern
As set out in the Directors' Report, in the opinion of the directors, following preparation of financial forecasts, it is appropriate to prepare the financial statements on the going concern basis and the directors expect the Company to be in a position to meet its financial commitments for the foreseeable future, being at least 12 months from the date of approval of the financial statements. This conclusion also takes account of the group ability and intent to fund planned leasehold improvement works.

The Company has no external borrowings outside the group and a working capital cycle enabling the company to meet all liabilities as they fall due. As a consequence of this, the directors believe that the company is well placed to manage its business risks successfully in the current economic climate and, accordingly, they believe that the going concern basis is appropriate.

REDCASTLE (214 OXFORD STREET) LIMITED (REGISTERED NUMBER: 03871240)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 AUGUST 2024

3. ACCOUNTING POLICIES - continued

Interest payable and similar expenses
Costs associated with the issue of bank and other borrowings are deferred and are charged to the profit and loss account over the term of the respective loan at a constant rate to the loan's carrying value.

Property provisions
The Company provides for the unavoidable costs of vacant properties and, where properties are sublet, any shortfall between the rents payable to its landlords and those recovered under tenancy agreements to the end of the lease period. The Company also provides for dilapidations where there is an obligation to repair damages which occur during the life of the lease such as wear and tear. The cost is charged to the profit and loss account as the obligation arises.

Amounts owed from/to group undertakings
Amounts owed from/to group undertakings are stated at cost, less any provision for impairment. Provision is made where in the opinion of the directors there has been a reduction of the amount recoverable by the Company. When assessing impairment of amounts due from group undertakings, management considers factors including the current financial position of the associated undertaking and historical experience.

Impairment provisions recognised in prior periods are assessed at each reporting date for any indication that the loss has changed. Where there is an indication that the loss has decreased or no longer exists, the impairment loss is reversed. Impairment is recognised as an exceptional item in the profit and loss account.

4. EMPLOYEES AND DIRECTORS

The directors of the Company received no remuneration during the year.

The key management personnel are considered to be the directors of the Company.

The company had no employees during the year (2023: none).

5. OPERATING LOSS

The operating loss is stated after charging/(crediting):

31.8.24 31.8.23
£'000 £'000
Foreign exchange differences (84 ) -

The Directors of the company were paid for their services to the Company by a fellow group undertaking, (Ingka Group), which makes no specific director recharge to the Company. Their services as directors of the Company are incidental to their other services within the Group and it is not possible to make an accurate apportionment of their emoluments in respect of their services to the Company.

Auditors' remuneration of £23,000 (2023: £23,000).

There are no non-audit services provided by the auditors to the Company in this or the previous period.

6. INTEREST PAYABLE AND SIMILAR EXPENSES
31.8.24 31.8.23
£'000 £'000
Intra-group loan interest 1,593 134

Interest relates to loans from other group companies, which bear interest at commercial rates..

REDCASTLE (214 OXFORD STREET) LIMITED (REGISTERED NUMBER: 03871240)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 AUGUST 2024

7. TAXATION

Analysis of the tax credit
The tax credit on the loss for the year was as follows:
31.8.24 31.8.23
£'000 £'000
Current tax:
UK corporation tax (7,698 ) (4,533 )

Deferred tax (1,808 ) (34,439 )
Tax on loss (9,506 ) (38,972 )

Reconciliation of total tax credit included in profit and loss
The tax assessed for the year is higher than the standard rate of corporation tax in the UK. The difference is explained below:

31.8.24 31.8.23
£'000 £'000
Loss before tax (39,084 ) (128,224 )
Loss multiplied by the standard rate of corporation tax in the UK of 25% (2023
- 21.500%)

(9,771

)

(27,568

)

Effects of:
Expenses not deductible for tax purposes 38 3
Adjustments to tax charge in respect of previous periods 227 (6,585 )

Rate differential between current and deferred tax rates - (4,822 )
Total tax credit (9,506 ) (38,972 )

Tax effects relating to effects of other comprehensive income

31.8.23
Gross Tax Net
£'000 £'000 £'000
Revaluation of long leasehold property

8. INVESTMENT PROPERTY
Total
£'000
FAIR VALUE
At 1 September 2023 320,000
Renovation & Improvements 71,667
Revaluations (47,667 )
At 31 August 2024 344,000
NET BOOK VALUE
At 31 August 2024 344,000
At 31 August 2023 320,000

REDCASTLE (214 OXFORD STREET) LIMITED (REGISTERED NUMBER: 03871240)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 AUGUST 2024

8. INVESTMENT PROPERTY - continued

The property was valued as at 31 August 2024 by Colliers International.

The directors are of the opinion that the combination of high inflation and high interest rates have had a negative impact on the valuation of the property. They consider that the valuation will improve as the economic climate stabilises and the renovation of the property nears completion.

Fair value at 31 August 2024 is represented by:
£'000
Valuation in 2024 344,000

9. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
31.8.24 31.8.23
£'000 £'000
Trade debtors 34 17
Other debtors 18,951 13,216
VAT 3,026 1,621
Prepayments and accrued income 1,401 637
23,412 15,491

Trade debtors are stated after provisions for impairment of £nil (2023: £nil).

10. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
31.8.24 31.8.23
£'000 £'000
Trade creditors 102 92
Amounts owed to group undertakings 61,170 -
Other creditors 914 1
Accruals and deferred income 3,893 2,679
66,079 2,772

11. LEASING AGREEMENTS

Minimum lease payments under non-cancellable operating leases fall due as follows:
31.8.24 31.8.23
£'000 £'000
Within one year 1,627 1,627
Between one and five years 6,509 6,509
In more than five years 150,373 152,000
158,509 160,136

The above are the directors' best estimate of future minimum lease payments.

12. PROVISIONS FOR LIABILITIES
31.8.24 31.8.23
£'000 £'000
Deferred tax 32,315 34,123

REDCASTLE (214 OXFORD STREET) LIMITED (REGISTERED NUMBER: 03871240)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 AUGUST 2024

12. PROVISIONS FOR LIABILITIES - continued

Deferred
tax
£'000
Balance at 1 September 2023 34,123
Deferred tax credit (1,808 )
Balance at 31 August 2024 32,315

The provision for deferred taxation is made up as follows:

31.08.2431.08.23
£'000£'000
Property revaluation32,31534,123

13. CALLED UP SHARE CAPITAL

Allotted, issued and fully paid:
Number: Class: Nominal 31.8.24 31.8.23
value: £'000 £'000
200,000,000 Ordinary 1 200,000 364,847

On 1 March 2024 the company's sole shareholder, Ingka Investments Real Estate BV, passed a special resolution which authorised the company to reduce its share capital by £164,846,695 by cancelling 164,846,695 ordinary shares of £1 and transferring £164,846,695 from share capital to the company's retained earnings.

14. RESERVES
Capital
Retained redemption
earnings reserve Totals
£'000 £'000 £'000

At 1 September 2023 (66,251 ) - (66,251 )
Deficit for the year (29,578 ) (29,578 )
Purchase of own shares - 164,847 164,847
At 31 August 2024 (95,829 ) 164,847 69,018

15. RELATED PARTY DISCLOSURES

The company has a £41M revolving credit facility with Fami Limited, a group company. At 31 August 2024 the company had borrowings of £25.6M against the facility.

On 27 August 2024 the company borrowed £35M from IKEA Limited, also a group company, with a repayment date of 26 August 2025.

Both borrowings bear interest at commercial rates, and are for the purpose of financing the ongoing renovation of the company's leasehold property.

REDCASTLE (214 OXFORD STREET) LIMITED (REGISTERED NUMBER: 03871240)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 AUGUST 2024

16. ULTIMATE PARENT UNDERTAKING AND CONTROLLING PARTY

The Company's immediate parent company is Ingka Investments Real Estate BV, a private limited company registered in the Netherlands.

The Company is a constituent part of the Ingka Group. The Ingka Group is controlled by Ingka Holding BV, also a private limited company registered in the Netherlands.

The Company's ultimate beneficial owner and ultimate controlling party is the Stichting INGKA Foundation, being a foundation registered in the Netherlands.