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CANARY WHARF MANAGEMENT LIMITED
Registered number: 02067510
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
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CANARY WHARF MANAGEMENT LIMITED
CONTENTS
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Directors' Responsibilities Statement
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Independent Auditor's Report
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Statement of Comprehensive Income
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Statement of Financial Position
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Statement of Changes in Equity
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Notes to the Financial Statements
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CANARY WHARF MANAGEMENT LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2024
The directors, in preparing this Strategic Report, have complied with section 414C of the Companies Act 2006.
The Strategic Report has been prepared for the company and not the group of which it is a member and therefore focuses only on matters which are significant to the company.
The company is a wholly owned subsidiary of Canary Wharf Group plc ("the Group") and its ultimate parent undertaking is Stork HoldCo LP.
The principal activity of the company is managing the estate and the buildings of the Canary Wharf development in London.
As shown in the statement of comprehensive income, the company's profit after tax for the year was £11,061k (2023 - £14,604k). Overall profit has decreased largely because of an increase of administrative expenses, due to the increased depreciation and impairment of fixed assets, which have increased due to finance leases being entered into during the year. This has also resulted in an increase in interest payable.
The statement of financial position shows the financial position at the year end and indicates that net assets were £50,586k (2023 - £39,525k).
PRINCIPAL RISKS AND UNCERTAINTIES
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Credit and liquidity risk
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The Company does not rely on external financing and therefore credit risk is low, as it finances its operations largely through surplus cash and intercompany finance. The Company also bills and collects service charges in advance of the period, maintaining their liquidity and cash flow. The Company maintains regular forecasting and budgeting processes to monitor their financial performance and can take appropriate actions as required.
In the past year, there has been an escalation in international conflict and Geopolitical tensions, with conflict in Ukraine and the Middle East. The Company’s exposure to these trends is indirect and limited to exposure to increased energy costs and implications for global supply chains. Risks in this context are graded low to medium in terms of both likelihood and impact.
The Company has enhanced its monitoring of global developments by specialist inhouse teams and external providers, and forward planning and scenario analysis in terms of energy requirements. The Company maintains strong relationships with occupiers, suppliers and agents to ensure it can appropriately react to changing geopolitical climates and how this might impact the business.
The broader economic cycle inevitably leads to changes in inflation, interest rates and bond yields. While the Company has seen positive developments in the reduction of the UK’s inflation and interest rates, it continues to monitor a range of domestic and global factors that could potentially reverse these gains. Risks in this area are graded with medium to high likelihoods and impacts. The Company finances its operations largely through surplus cash and short term intercompany finance limiting the impact of these risks.
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CANARY WHARF MANAGEMENT LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
Political and Regulatory risk
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The Company continues to monitor risks related to the UK’s political landscape, in particular around policy initiatives from the new government. In regulatory terms, the Company has identified risks from the implementation of the Building Safety Act and its continued and emerging obligations across the Economic Crime and Corporate Transparency Act, anti-bribery and corruption, tax evasion, anti-money laundering, and modern slavery and human trafficking regulations. These risks are graded with low likelihoods and impacts.
The Company’s controls in this context centre on regulatory monitoring, the development, maintenance, and implementation of appropriate policies, together with staff training and regular reviews of control effectiveness. On a local scale, the Company engages with Tower Hamlets council to ensure the Company’s awareness of any local regulatory changes and impact to the business.
The Company places heavy emphasis on providing a secure environment, to ensure that its staff, tenants, and visitors to the Estate can work, live and play in safety. Risks from terrorism and disruptive action have remained stable over the past 12 months, despite an increase in global tensions, and while the Company is facing an increased risk from crime on the estate, crime figures remain well below the London average. The Company assesses these risks to be of low to medium impact and likelihood.
The Company’s controls in this context centre on its continued investment in its Security and Resilience function, and its cooperation with police and appropriate sections of the UK government. The Company’s incident response system, Everbridge, is regularly tested ensuring all staff can be contacted and located in an emergency. The Company also operates a zero tolerance policy in relation to bribery, corruption and fraud and has appropriate policies in place to manage and monitor these risks. All staff undertake mandatory training on these issues.
Technology and Cyber Security risk
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The Company recognises that risks from cyber threat actors are evolving in scale and complexity, while at the same time noting that the rapid evolution of technology and information systems, particularly around AI, will be a critical component of its continued success. The Company’s risks in this context are graded to be of medium likelihood and impact.
The Company monitors the evolution of risks and employs multilayered controls to address these, including the establishment, implementation and maintenance of appropriate policies, mandatory staff awareness training, and appropriate and proportionate cyber defences with third party providers.
The principal risks facing the Group are discussed in the Annual Report of Canary Wharf Investment Holdings Group plc, which does not form part of this report.
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CANARY WHARF MANAGEMENT LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
SECTION 172 (1) STATEMENT COMPANIES ACT 2006
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Section 172 (1) of the Companies Act 2006 requires that a director of a company must act in the way they consider, in good faith, would be most likely to promote the success of the Company for the benefit of its members as a whole, and in doing so have regard (amongst other matters) to:
(a) the likely consequences of any decision in the long term
The Board meets regularly to discuss and make decisions on matters of strategic importance to the business, to promote the long-term success of the Company and to consider the likely long term impact of any such decisions.
In accordance with the Articles of Association the Company has by ordinary resolution appointed each of the directors. Accordingly, there is an alignment of the interests between shareholders and the Board. The Group Chief Executive Officer is also a member of the Board.
(b) the interests of the Company's employees
The Company recognises that the engagement of employees is fundamental to the success of the business and in achieving its long term strategy and business objectives, and continues to focus on a range of initiatives to deliver an inclusive and progressive people engagement strategy. These include empowering employees to achieve their fullest potential in the workplace by offering comprehensive training and development opportunities, bi-annual appraisals and a 360 degree feedback process, and implementation of a Career Development Framework, enabling employees to identify possible progression pathways.
(c) the need to foster the Company's business relationships with suppliers, customers and others
The Company has strong and well-established long-term relationships with its suppliers, tenants and customers. This is evidenced by the continuation of links across the full value chain, over many years, with the full range of contractors, advisors and suppliers who interact directly with employees of the company without the intervention of sub-contractors. Close working relationships are maintained with key suppliers, and the Group works constructively with many of them to share best practices on matters such as environmental and labour standards.
(d) the impact of the Company's operations on the community and the environment
The Group publishes an annual Corporate Responsibility report which is available on the Group website. However, in addition to the above, the Group is committed to fostering positive links within the local communities in which it works.
The Group is an established member of the Tower Hamlets Partnership Executive Group which engages with a range of local business leaders. The Group’s Personnel Department has well established links with local schools, colleges, universities and with the local job centre.
(e) the desirability of the Company maintaining a reputation for high standards of business conduct
The Group expects the highest standards of conduct from its employees, business partners and suppliers with which it engages. The Group has an established internal risk control and audit process with a range of official policies. In addition, the Internal Audit process is process is provided independently by Ernst & Young LLP.
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CANARY WHARF MANAGEMENT LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
The Group is fully compliant with all current GDPR laws and employment legislation.
(f) the need to act fairly between members of the Company
The Company’s articles of association may be amended by special resolution of the Company’s shareholder. The Company is a wholly owned subsidiary within the Stork HoldCo LP group of companies and is a single member company under section 123 (1) of the Companies Act 2006.
Throughout 2025 the Board will continue to review how the Group can improve engagement with its employees and stakeholders.
KEY PERFORMANCE INDICATORS
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The Group manages its operations on a unified basis. For this reason, the company's directors believe that key performance indicators specific to the Company are not necessary or appropriate for an understanding of the development, performance or position of its business. The performance of the Group, which includes the Company, is discussed in the Annual Report of Canary Wharf Group Investment Holdings plc, which does not form part of this report.
This report was approved by the board on 8 July 2025 and signed on its behalf.
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CANARY WHARF MANAGEMENT LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2024
The directors present their report and the financial statements for the year ended 31 December 2024.
The profit for the year, after taxation, amounted to £11,061k (2023 - £14,604k).
No dividends have been paid or proposed for the year and to the date of this report (2023 - £nil).
The directors who served during the year and up to the date of this report were:
DIRECTORS' INDEMNITIES
The company maintains directors’ liability insurance that gives appropriate cover for any legal action brought against its directors. The company has also granted indemnities to each of its directors, which represent ‘qualifying third party indemnity provisions’ (as defined by Section 234 of the Companies Act 2006), in relation to certain losses and liabilities that the directors may incur to third parties in the course of acting as directors or as employees of the company or of any associated company. Such indemnities were in place during 2024 and at the date of approval of the financial statements. Neither the indemnity nor the insurance provide cover in the event that the director is proven to have acted dishonestly or fraudulently.
The company will continue to manage the estate and the buildings of the Canary Wharf development.
For details in respect of going concern refer to Note 2.2.
The principal risks and uncertainties of the company are contained within the Strategic Report.
The company has adopted the terms of the Code of Practice for the elimination of discrimination, on all grounds, including disability discrimination. To effect this policy the company has implemented a continuing programme of action with the aim of providing an equal opportunity working environment where all employees are treated with respect and dignity. The company continues to keep employees informed of events relevant to their employment via 'all staff' communications and an intranet. A staff consultative committee, at which matters raised by employees are considered by management and staff representatives, has been established and meets every two months. The company's employment policy is regularly reviewed to incorporate changes to legislation and ensure best practice is maintained.
Statement of employee engagement
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Please refer to the strategic report for details on the Company's engagement of its employees.
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CANARY WHARF MANAGEMENT LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
The company values the benefits a diverse workforce can bring and embraces diversity as a practical contribution to its business success and in providing the highest standard of customer service to our tenants and to visitors alike.
The company strives to create a working environment which is open, supportive and inclusive at every level and believes that equality of opportunity for all is fundamental to the future of the company. All staff attend diversity training which emphasises the value of appreciating individual differences.
The Group’s 5 employee ED&I networks – Disability Equality Network (DEN), Ethnicity Equality Network (EEN), Gender Balance Network, Social Mobility Network and Unity, LGBTQ+ Network - continued to thrive, hosting events across the year to support and celebrate their communities and increase awareness of key challenges.
The company seeks to continually improve and develop its health and safety performance and places the overall wellbeing of its employees, tenants and visitors in the highest regard. The company operates a health and safety management system to the internationally recognised ISO 18001 standard. This ensures that best practice is followed as a minimum threshold.
The company strives for continuous improvement to ensure a safe and healthy environment is maintained and adequate resources are made available for these purposes. The group’s accreditation to ISO 18001 is externally verified on an ongoing basis allowing opportunities for continuous improvement to be identified and enacted where feasible. The group’s health and safety departments are committed to supporting all employees in understanding their health and safety responsibilities through a system of processes and procedures in order to deliver the safest standards within the built environment.
Anti bribery and corruption
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The directors continue to demonstrate commitment to the prevention of corruption and understand the importance of maintaining a culture in which it is not acceptable at any level. A mandatory online bribery and corruption awareness training module has been completed by all employees. The company has adopted a formal anti bribery and corruption policy which requires all directors and employees to behave with integrity and in a manner that ensures the objectives of the policy are achieved. The company has a strict approach to maintaining high standards of finance, business principles and ethics.
The company's Community, Social and Economic Development strategy aims to maintain and enhance the company's relationship with the community by supporting employment opportunities, skills enhancement, investment in young people and commitment to the local business community while also confirming the company's vision for the future.
Improving the transition from education to employment; securing opportunities for local job seekers; maximising supply chains and community led development is a priority for the company, especially as it diversifies and evolves.
Engagement with suppliers, customers and others
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Please refer to the strategic report for information on the Company's engagement with suppliers, customers and others.
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CANARY WHARF MANAGEMENT LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
ENERGY AND CARBON REPORTING
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The company has taken the group and subsidiary exemption from providing carbon and energy information provided by The Companies (Directors’ Report) and Limited Liability Partnerships (Energy and Carbon Report) Regulations 2018.
DISCLOSURE OF INFORMATION TO AUDITOR
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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 auditor is 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 auditor is aware of that information.
This confirmation is given and should be interpreted in accordance with the provisions of s418 of the Companies Act 2006.
The auditor, Deloitte LLP, will be proposed for reappointment in accordance with section 485 of the Companies Act 2006.
This report was approved by the board on 8 July 2025 and signed on its behalf.
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CANARY WHARF MANAGEMENT LIMITED
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 31 DECEMBER 2024
The directors are responsible for preparing the Strategic Report, the Directors' 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 applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland'. 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 for the company's financial statements and then apply them consistently;
∙make judgements and accounting estimates that are reasonable and prudent;
∙state whether applicable UK 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 to 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.
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CANARY WHARF MANAGEMENT LIMITED
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF CANARY WHARF MANAGEMENT LIMITED
REPORT ON THE AUDIT OF THE FINANCIAL STATEMENTS
OPINION
In our opinion the financial statements of Canary Wharf Management Limited (the ‘company’):
∙give a true and fair view of the state of the company’s affairs as at 31 December 2024 and of its profit for the year then ended;
∙have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice including Financial Reporting Standard 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland”; and
∙have been prepared in accordance with the requirements of the Companies Act 2006.
We have audited the financial statements which comprise:
∙the statement of comprehensive income;
∙the statement of financial position;
∙the statement of changes in equity; and
∙the related notes 1 to 21.
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).
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 company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the Financial Reporting Council's (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.
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CANARY WHARF MANAGEMENT LIMITED
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF CANARY WHARF MANAGEMENT LIMITED
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.
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 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.
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.
A further description of our responsibilities for the audit of the financial statements is located on the FRC’s website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.
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CANARY WHARF MANAGEMENT LIMITED
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF CANARY WHARF MANAGEMENT LIMITED
EXTENT TO WHICH 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 material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below.
We considered the nature of the company’s industry and its control environment, and reviewed the company’s documentation of their policies and procedures relating to fraud and compliance with laws and regulations. We also enquired of management about their own identification and assessment of the risks of irregularities, including those that are specific to the company’s business sector.
We obtained an understanding of the legal and regulatory frameworks that the company operates in, and identified the key laws and regulations that:
∙had a direct effect on the determination of material amounts and disclosures in the financial statements. These included UK Companies Act, and relevant tax legislation; and
∙do not have a direct effect on the financial statements but compliance with which may be fundamental to the company’s ability to operate or to avoid a material penalty.
We discussed among the audit engagement team regarding the opportunities and incentives that may exist within the organisation for fraud and how and where fraud might occur in the financial statements.
In common with all audits under ISAs (UK), we are also required to perform specific procedures to respond to the risk of management override. In addressing the risk of fraud through management override of controls, we tested the appropriateness of journal entries and other adjustments; assessed whether the judgements made in making accounting estimates are indicative of a potential bias; and evaluated the business rationale of any significant transactions that are unusual or outside the normal course of business.
In addition to the above, our procedures to respond to the risks identified included the following:
∙reviewing financial statement disclosures by testing to supporting documentation to assess compliance with provisions of relevant laws and regulations described as having a direct effect on the financial statements;
∙performing analytical procedures to identify any unusual or unexpected relationships that may indicate risks of material misstatement due to fraud;
∙enquiring of management and in-house legal counsel concerning actual and potential litigation and claims, and instances of non-compliance with laws and regulations; and
∙reading minutes of meetings of those charged with governance.
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CANARY WHARF MANAGEMENT LIMITED
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF CANARY WHARF MANAGEMENT LIMITED
REPORT ON OTHER LEGAL AND REGULATORY REQUIREMENTS
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 strategic report and the directors’ report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
∙the strategic report and the directors’ report have been prepared in accordance with applicable legal requirements.
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 any material misstatements in the strategic report or the directors’ report.
Matters on which we are required to report by exception
Under the Companies Act 2006 we are required to report in respect of the following matters 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.
We have nothing to report in respect of these matters.
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.
Sarah Cairns (Senior statutory auditor)
For and on behalf of Deloitte LLP
Statutory Auditor
London, United Kingdom
8 July 2025
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CANARY WHARF MANAGEMENT LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2024
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Interest receivable and similar income
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Interest payable and similar expenses
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PROFIT FOR THE FINANCIAL YEAR
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Other comprehensive income for the year
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TOTAL COMPREHENSIVE INCOME FOR THE YEAR
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The notes on pages 16 to 29 form part of these financial statements.
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CANARY WHARF MANAGEMENT LIMITED
REGISTERED NUMBER: 02067510
STATEMENT OF FINANCIAL POSITION
AS AT 31 DECEMBER 2024
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Debtors: amounts falling due after more than one year
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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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The financial statements were approved and authorised for issue by the board and were signed on its behalf on 8 July 2025.
The notes on pages 16 to 29 form part of these financial statements.
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CANARY WHARF MANAGEMENT LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2024
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COMPREHENSIVE INCOME FOR THE YEAR
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TOTAL COMPREHENSIVE INCOME FOR THE YEAR
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The notes on pages 16 to 29 form part of these financial statements.
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STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2023
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COMPREHENSIVE INCOME FOR THE YEAR
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TOTAL COMPREHENSIVE INCOME FOR THE YEAR
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The notes on pages 16 to 29 form part of these financial statements.
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CANARY WHARF MANAGEMENT LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
Canary Wharf Management Limited is a private company limited by shares incorporated in the UK under the Companies Act 2006 and registered in England and Wales at One Canada Square, Canary Wharf, London, E14 5AB.
The nature of the company's operations and its principal activities are set out in the Strategic Report.
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, modified to include certain items at fair value and in accordance with United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice, including FRS 102 “the Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland”).
The company meets the definition of a qualifying entity under FRS 102 and has therefore taken advantage of the disclosure exemptions available to it in respect of its separate financial statements. The company is consolidated in the financial statements of its parent, Canary Wharf Group Investment Holdings PLC, whose registered address is One Canada Square, Canary Wharf, London, E14 5AB, United Kingdom.
The company is a parent company and has taken advantage of the exemption from preparing consolidated financial statements under section 401 of the Companies Act 2006 on the basis that the company's and its subsidiaries' results are consolidated into Canary Wharf Group Investment Holdings PLC.
The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires management to exercise judgement in applying the company's accounting policies (see Note 3).
The functional currency of the company is considered to be pounds sterling because that is the currency of the primary economic environment in which they operate, and amounts have been presented by rounding to the nearest thousand.
The principal accounting policies have been applied consistently throughout the year and the preceding year and are summarised below:
In assessing the going concern basis of the company the directors have considered a period of at least 12 months from the date of approval of these financial statements.
At the year end the company was in a net current asset position. Having made the requisite enquiries and assessed the resources at the disposal of the company, the directors have a reasonable expectation that the company will have adequate resources to continue its operation for the foreseeable future, being a period of a least 12 months from the date of approval of these financial statements.
The company has taken the exemption from preparing the cash flow statement under Section 1.12(b) as it is a member of a group where the parent of the group prepares publicly available consolidated accounts which are intended to give a true and fair view.
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CANARY WHARF MANAGEMENT LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
2.ACCOUNTING POLICIES (CONTINUED)
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Foreign currency translation
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Functional and presentation currency
The company's functional and presentational currency is pounds 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'.
Revenue is measured at the transaction price of the consideration received or receivable and is stated net of discounts and VAT.
This comprises rental income and service charges, which includes directly recoverable expenditure together with any chargeable management fees, and are recognised on a monthly basis that reflects the timing, nature and value of the services provided.
Tenant services income comprises income paid by customers for services provided by the company, which includes directly recoverable expenditure together with any chargeable management fees. These services range from small maintenance work to large refurbishment projects and includes contracts for office management services.
Other income comprises promotion fund income, where tenants pay into a fund to be used for marketing of their businesses across the estate, and includes chargeable management fees.
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Impairment of fixed assets
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Assets that are subject to depreciation or amortisation are assessed at each reporting date to determine whether there is any indication that the assets are impaired. Where there is any indication that an asset may be impaired, the carrying value of the asset (or cash-generating unit to which the asset has been allocated) is tested for impairment. An impairment loss is recognised for the amount by which the asset's carrying amount exceeds its recoverable amount. The recoverable amount is the higher of an asset's (or CGU's) fair value less costs to sell and value in use. For the purposes of assessing impairment, assets are grouped at the lowest levels for which there are separately identifiable cash flows (CGUs). Non-financial assets that have been previously impaired are reviewed at each reporting date to assess whether there is any indication that the impairment losses recognised in prior periods may no longer exist or may have decreased.
Page 17
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CANARY WHARF MANAGEMENT LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
2.ACCOUNTING POLICIES (CONTINUED)
Investments in subsidiaries are stated at cost less any provision for impairment.
Income from investments is recognised as the company becomes entitled to receive payment.
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Finance lease agreements: lessee
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Assets held under finance leases which confer rights and obligations similar to those attached to owned assets are capitalised as tangible fixed assets at the value equal to the present value of minimum lease payments over the term of the lease.
The corresponding leasing commitments are shown as amounts payable to the lessor. Lease payments are apportioned between the finance charge and a reduction in the outstanding obligation for future amounts payable. The total finance charge is allocated to accounting periods over the lease term so as to produce a constant periodic charge to the remaining balance of the obligation for each accounting period.
Tangible fixed assets, other than investment properties, are stated at cost less depreciation and impairment. Depreciation is calculated so as to write off the cost in equal annual instalments over the expected useful economic lives of the assets concerned. The principal annual rates used for this purpose are:
Short term leasehold property: the lease term
Leasehold improvements: the shorter of the lease term or 4 years
Plant and machinery: 4 years
Fixture and fittings: 4 years
Computer equipment: 3 years
The directors have taken advantage of the exemption in paragraph 1.12c of FRS 102 allowing the company not to disclose the summary of financial instruments by the categories specified in paragraph 11.40.
Trade and other receivables
Trade and other receivables are recognised initially at transaction price. A provision for impairment is established where there is objective evidence that the company will not be able to collect all amounts due according to the original terms of the debtor concerned.
Trade and other payables
Trade and other payables are stated at cost.
The company operates a defined contribution pension scheme. Contributions in respect of this scheme are expensed as they fall due.
Page 18
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CANARY WHARF MANAGEMENT LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
2.ACCOUNTING POLICIES (CONTINUED)
Current tax is provided at amounts expected to be paid or recovered using the tax rates and laws that have been enacted or substantively enacted at the balance sheet date.
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date where transactions or events that result in an obligation to pay more tax in the future or a right to pay less tax in the future have occurred at the balance sheet date. Timing differences are differences between the company's taxable profits and its results as stated in financial statements that arise from the inclusion of gains and losses in tax assessments in periods different from those in which they are recognised in financial statements.
Unrelieved tax losses and other deferred tax assets are recognised only to the extent that, on the basis of all available evidence, it can be regarded as more likely than not that there will be suitable taxable profits from which the future reversal of the underlying timing differences can be deducted.
Deferred tax is measured using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date that are expected to apply to the reversal of timing difference. Deferred tax relating to investment property is measured using the tax rates and allowances that apply to the sale of the asset.
Where items recognised in other comprehensive income or equity are chargeable to or deductible for tax purposes, the resulting current or deferred tax expense or income is presented in the same component of comprehensive income or equity as the transaction or other event that resulted in the tax expenses or income.
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CRITICAL ACCOUNTING JUDGEMENTS AND KEY SOURCES OF ESTIMATION UNCERTAINTY
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The preparation of financial statements in conformity with generally accepted accounting principles requires the use of estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. Although these estimates are based on management’s best knowledge of the amount, event or actions, actual results ultimately may differ from those estimates.
The preparation of financial statements also requires use of judgements, apart from those involving estimation, that management makes in the process of applying the entity’s accounting policies.
For the year ended 31 December 2024, there were no items which the directors believe are significant to the financial statements.
Page 19
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CANARY WHARF MANAGEMENT LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
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An analysis of turnover by class of business is as follows:
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All turnover arose within the United Kingdom.
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The operating profit is stated after charging:
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Fees payable to the auditor in respect of audit related assurance services
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Depreciation of tangible fixed assets
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Impairment of tangible fixed assets
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Defined contribution pension cost
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Expense incurred under operating leases
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Auditor's remuneration of £130k (2023 - £118k) for the audit of the company for the year ended 31 December 2024 has been borne by another group undertaking.
The company leases space on two floors of One Canada Square from a fellow subsidiary undertaking for an annual rent of £412k. £110k relates to various operating leases transferred from another group undertaking.
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Page 20
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CANARY WHARF MANAGEMENT LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
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Staff costs were as follows:
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Cost of defined contribution scheme
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During the year, payroll costs of £3,501k (2023 - £2,285k) were recharged to other group undertakings. This included £176k (2023 - £130k) recharged to Southbank Place Energy Company Limited, £943k (2023 - £1,586k) recharged to Braeburn Estates Management Company Limited, £1k (2023 - £1k) recharged to Vertus 8 Water Street StaffCo Limited and £1k (2023 - £3k) recharged to Vertus 10 George Street StaffCo Limited. These recharges are recognised within administrative expenses offsetting the costs incurred.
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The average monthly number of employees, including the directors, during the year was as follows:
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No remuneration was paid by the Company to the directors for their services to the Company and no costs were allocated or recharged to the Company (2023: £nil).
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INTEREST RECEIVABLE AND SIMILAR INCOME
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Interest receivable from group companies
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INTEREST PAYABLE AND SIMILAR CHARGES
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Interest payable to group companies
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Page 21
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CANARY WHARF MANAGEMENT LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
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Current tax on profits for the year
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Origination and reversal of timing differences
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FACTORS AFFECTING TAX CHARGE FOR THE YEAR
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The tax assessed for the year is lower than (2023 - lower than) the standard rate of corporation tax in the UK of 25% (2023 - 23.5%). The differences are explained below:
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Profit on ordinary activities before tax
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Profit on ordinary activities multiplied by standard rate of corporation tax in the UK of 25% (2023 - 23.5%)
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Capital allowances for year in excess of depreciation
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TOTAL TAX CHARGE FOR THE YEAR
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FACTORS THAT MAY AFFECT FUTURE TAX CHARGES
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In October 2022, the government announced changes to the Corporation Tax rate from 1 April 2023,
increasing the main rate of Corporation Tax to 25%. Deferred tax has been provided by reference to this
enacted corporation tax rate.
The company is a member of a REIT headed by Stork Holdings Limited. As a consequence all qualifying
property rental business is exempt from corporation tax. Only income and expenses relating to nonqualifying activities will continue to be taxable.
Page 22
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CANARY WHARF MANAGEMENT LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
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Impairment has been recognised where the assessment of fair value of the asset is less than the carrying value at the year end. This has been recognised as an expense in the statement of comprehensive income.
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Page 23
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CANARY WHARF MANAGEMENT LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
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The following is a subsidiary undertaking of the company:
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Canary Wharf Facilities Management Limited
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One Canada Square
Canary Wharf
London
E14 5AB
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The principal activity of Canary Wharf Facilities Management Limited was that of facilities management. The company has now completed its activities and is a non going concern. The capital invested in the subsidiary is £1.
In accordance with Section 400 of the Companies Act 2006, financial information is only presented in these financial statements about the company as an individual undertaking and not about its group because the company and its subsidiary undertakings are included in the consolidated financial statements of a larger group (note 21).
The directors are of the opinion that the value of the company's investments at 31 December 2024, net of the provision for impairment, was not less than the amount shown in the company's statement of financial position.
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Page 24
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CANARY WHARF MANAGEMENT LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
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DUE AFTER MORE THAN ONE YEAR
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Loan to fellow subsidiary undertakings
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Amounts owed by group companies
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Amounts owed by associated undertakings
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Page 25
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CANARY WHARF MANAGEMENT LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
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12. DEBTORS (CONTINUED)
Amounts owed by related parties consists of:
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Braeburn Estates Management Company Limited
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Southbank Place Energy Company Limited
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Vertus 8 Water Street Staffco Limited
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Vertus 10 George Street Staffco Limited
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Vertus 8 Water Street Limited
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Vertus 10 George Street Limited
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Braeburn Estates B4A (GP) Limited
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Braeburn Estates (B4A) Limited Partnership
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Braeburn Estates (B6/7) Limited Partnership
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Braeburn Estates Retail Limited
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10 Upper Bank Street Separate LP
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See related party transactions that occurred during the year in note 19.
Amounts owed from group undertakings and related parties are interest free and repayable on demand.
In December 2023, loans were made to the parent company and to fellow subsidiary undertakings totalling £66.6m. These are charged at an interest rate of 6.98% over a 9 year period, with the loans being repaid in full by 2032. The loan balance as at December 2024 is £50.8m.
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Page 26
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CANARY WHARF MANAGEMENT LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
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CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
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Amounts owed to group undertakings
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Amounts owed to other related parties
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Other taxation and social security
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Obligations under finance lease and hire purchase contracts
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Amounts owed to related parties consists of:
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Vertus 10 George Street Limited
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Vertus 8 Water Street Limited
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Southbank Place Energy Company Limited
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See related party transactions that occurred during the year in note 19.
Amounts owed to group undertakings and related parties are interest free and repayable on demand.
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CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR
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Obligations under finance lease
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Amounts owed to group undertakings
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Page 27
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CANARY WHARF MANAGEMENT LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
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FINANCE LEASE LIABILITIES
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Minimum lease payments under hire purchase, the nature of which is property, plant and equipment, fall due as follows:
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The deferred tax asset is made up as follows:
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Accelerated capital allowances
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ALLOTTED, CALLED UP AND FULLY PAID
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2 (2023 - 2) Ordinary shares of £1.00 each
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The company provides its employees with a defined contribution pension scheme. The assets of the scheme are held separately from those of the company in an independently administered fund. The pension cost charge, which amounted to £3,038k for the year (2023 - £3,025k), represents contributions payable by the company to the scheme. At the year end, £nil liability (2023 – £nil) was outstanding in respect of pension contributions.
Page 28
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CANARY WHARF MANAGEMENT LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
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RELATED PARTY TRANSACTIONS
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During the year £206k (2023: £248k) of various miscellaneous expenditure was recharged to Braeburn Estates Management Company Limited.
During the year £12k (2023: £nil) of various miscellaneous expenditure was recharged to Vertus 8 Water Street Limited.
During the year £41k (2023: £3k) of various miscellaneous expenditure was recharged to Vertus 10 George Street Limited.
During the year £43k (2023: £nil) of various miscellaneous expenditure and a credit of £191k (2023: £nil) was recharged to Vertus Newfoundland Place Limited.
During the year £2k (2023: £132k) of various miscellaneous expenditure was recharged to Southbank Place Energy Co Limited..
Payroll recharges to related parties are disclosed in Note 6.
All entities above are under common ownership with the company.
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POST BALANCE SHEET EVENTS
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There are no post balance sheet events to disclose.
The company's immediate parent undertaking is Canary Wharf Limited.
As at 31 December 2024, the smallest group of which the company is a member and for which group financial statements are drawn up is the consolidated financial statements of Canary Wharf Group Investment Holdings plc. Copies of the financial statements may be obtained from the Company Secretary, One Canada Square, Canary Wharf, London E14 5AB.
The largest group of which the company is a member for which group financial statements are drawn up is the consolidated financial statements of Stork HoldCo LP, an entity registered in Bermuda and the ultimate parent undertaking and controlling party. Stork HoldCo LP is registered at 73 Front Street, 5th Floor, Hamilton HM12, Bermuda.
Stork HoldCo LP is controlled as to 50% by Brookfield Property Partners LP and as to 50% by Qatar Investment Authority.
The directors have taken advantage of the exemption in paragraph 33.1A of FRS 102 allowing the company not to disclose related party transactions with respect to other wholly-owned group companies.
Page 29
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