Soul Propco 4 Limited is a private company limited by shares incorporated in England and Wales. The registered office is 14 Bedford Square, London, United Kingdom, WC1B 3JA.
This is the first period of reporting after the company's incorporation on 2 August 2023. Therefore, there is no comparative information.
The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.
The company trades with the continued financial support of related parties and group. The post year end completion of a property purchase and obtaining of secured third party lending leads to the support required for the development and going concern assessment.
The company and group prepare cash flow forecasts for the future period from approval of the financial statements which indicate the company remains a going concern.
Subsequent to the year end, on 9 May 2025, the company legally completed on the purchase of a property site at Hanger Lane which will be under development, with funding provided by external secured debt and group funding.
Basic financial assets, which include debtors, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.
Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.
Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.
Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.
Equity instruments issued by the company are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.
In the application of the company’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.
The average monthly number of persons (including directors) employed by the company during the period was:
At the reporting date, the company had incurred development-related expenditure amounting to £2,118,300 in connection with a property intended for investment purposes. However, the legal acquisition of the property occurred subsequent to the year-end.
In accordance with the recognition criteria under FRS 102 Section 16 – Investment Property, the company did not recognise the costs incurred as an investment property at the reporting date, as control of the asset had not yet transferred. The costs incurred have therefore been recognised within other debtors in the statement of financial position as at 31 December 2024.
Subsequent to the year end all costs incurred to date were transferred to Investment property fixed asset and future directly attributable development costs capitalised in accordance with FRS102.
As the income statement has been omitted from the filing copy of the financial statements, the following information in relation to the audit report on the statutory financial statements is provided in accordance with s444(5B) of the Companies Act 2006:
On the date the property completion occurred, 9 May 2025, the company entered into a secured third party loan for £10,975,000. The loan facility is repayable 2 years from the first drawdown date.
Soul Development Holdings Limited
The balance due to Soul Development Holdings Limited, a group company incorporated in England & Wales, at the balance sheet date was £1,400,577. Mr K K Khimji is also a director of Soul Development Holdings Limited. The loan is interest free and repayable on demand.
Soul Development Services Limited
During the year, purchases totalling £699,245 were made from Soul Development Services Limited, a group company incorporated in England and Wales The balance due to Soul Development Services Limited at the balance sheet date was £906,231. Mr K K Khimji is also a director of Soul Development Services Limited. The loan is interest free and repayable on demand.