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Registration number: 08392889 (England and Wales)

Londonist DMC Ltd

Annual Report and Financial Statements

for the Year Ended 31 August 2024

 

Londonist DMC Ltd

Contents

Company Information

1

Strategic Report

2

Directors' Report

3

Statement of Directors' Responsibilities

4

Independent Auditor's Report

5 to 8

Profit and Loss Account

9

Statement of Comprehensive Income

10

Balance Sheet

11

Statement of Changes in Equity

12

Statement of Cash Flows

13

Notes to the Financial Statements

14 to 28

 

Londonist DMC Ltd

Company Information

Directors

Mr Asim Erturk

Mr Umang Gandecha

Registered office

5 Great James Street
London
WC1N 3DB

Auditors

SRG (Audit) LLP
Senior Statutory Auditor10 Bolt Court
London
EC4A 3DA

 

Londonist DMC Ltd

Strategic Report for the Year Ended 31 August 2024

The directors present their strategic report for the year ended 31 August 2024.

Fair review of the business

Londonist DMC Ltd is a leading provider of student accommodation services, offering flexible short- and long-term stays to both international and domestic students. With a growing Purpose-Built Student Accommodation (PBSA) portfolio in London, the Company continues to focus on delivering exceptional service, high occupancy levels, and operational efficiency.

During the year, turnover increased significantly to £37,588,317 (2023: £23,528,220), reflecting both portfolio expansion and a sustained demand for student accommodation in key London locations.

While the Company reported a pre-tax loss of £1,865,544 (2023: profit £947,873), this was primarily due to increased strategic investments, higher operating costs linked to portfolio growth, and one-off expenses, including the impact of the VAT reverse charge on overseas services. These investments are expected to strengthen the Company’s long-term profitability and market position.

Principal risks and uncertainties

The Company operates in a dynamic market and is exposed to certain risks, including:

• Changes in global student visa regulations and immigration policies;
• Shifts in local and national housing regulations;
• Economic and geopolitical uncertainty impacting international student mobility;
• Potential long-term disruptions due to natural disasters or other force majeure events.

To mitigate these risks, the Directors actively monitor market developments, diversify sales channels, maintain a geographically diverse student base, and manage operational costs carefully.

Key performance indicators (KPIs)

The Board monitors a range of KPIs, including:

• Turnover growth: +59.7% year-on-year;
• Occupancy rate: maintained above industry average across key periods;
• Operating profit margin: (4.70%) (2023: 4.49%);
• Net profit margin: (5.04%) (2023: 4.24%).

Despite the margin reduction in 2024, occupancy remained resilient, and the Company continued to deliver strong revenue growth. The focus for 2025 is to improve margins through yield management, operational efficiencies, and targeted marketing.

Outlook
Looking ahead, the Directors remain confident in the strength of the Company’s brand, market relationships, and ability to adapt to evolving market conditions. With an expanded portfolio and strong sales pipeline, the business is well positioned to return to profitability in the next financial year.

This report was approved by the Board on 29 August 2025 and signed on its behalf by:

.........................................
Mr Asim Erturk
Director

   
     
 

Londonist DMC Ltd

Directors' Report for the Year Ended 31 August 2024

The directors present their report and the financial statements for the year ended 31 August 2024.

Principal activity

The principal activity of the company is the provision of student accommodation services in the UK, catering to both domestic and international students.

Business review

The year saw a significant increase in turnover to £37,588,317 (2023: £23,528,220), supported by a larger PBSA portfolio and strong demand in the London student housing market. The business continued to invest in technology, marketing, and property management systems to improve operational efficiency and enhance the customer experience.

The Company reported a net loss after tax of £1,895,540 (2023: profit £996,507.00), largely driven by strategic investments and exceptional charges. These steps are expected to support sustainable growth and improved profitability in future years.

Results and dividends

The results for the year are set out on page 9 of the financial statements. No dividends were paid during the year.

Directors of the company

The directors who held office during the year were as follows:

Mr Asim Erturk

Mr Umang Gandecha

Statement of disclosure to auditor

So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the company’s auditor is unaware.

Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the company’s auditor is aware of that information.

Reappointment of auditors

In accordance with section 485 of the Companies Act 2006, a resolution for the re-appointment of SRG (Audit) LLP as auditors of the company is to be proposed at the forthcoming Annual General Meeting.

This report was approved by the Board on 29 August 2025 and signed on its behalf by:

.........................................
Mr Asim Erturk
Director

   
     
 

Londonist DMC Ltd

Statement of Directors' Responsibilities

The directors acknowledge their responsibilities for preparing the Annual Report and the financial statements in accordance with applicable law and regulations.

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

make judgements and accounting estimates that are reasonable and prudent;

state whether applicable United Kingdom Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; and

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.

 

Londonist DMC Ltd

Independent Auditor's Report to the Members of Londonist DMC Ltd

Opinion

We have audited the financial statements of Londonist DMC Ltd (the 'company') for the year ended 31 August 2024, which comprise the Profit and Loss Account, Statement of Comprehensive Income, Balance Sheet, Statement of Changes in Equity, Statement of Cash Flows, 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 auditor 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 director's 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 original financial statements were 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 included in the annual report, other than the financial statements and our auditor’s report 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 there is a material misstatement in the financial statements or a material misstatement of the other information. 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.

 

Londonist DMC Ltd

Independent Auditor's Report to the Members of Londonist DMC Ltd (continued)

Opinion on other matter 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 Directors' Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and

the Strategic Report and Directors' Report have been prepared in accordance with applicable legal requirements.

Matters on which we are required to report by exception

In the light of our 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 and the Directors' Report.

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.

Responsibilities of directors

As explained more fully in the Statement of Directors' Responsibilities [set out on page 4], 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 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.

 

Londonist DMC Ltd

Independent Auditor's Report to the Members of Londonist DMC Ltd (continued)

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.

Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was as follows:

• the engagement partner ensured that the engagement team collectively had the appropriate competence, capabilities and skills to identify or recognise non-compliance with applicable laws and regulations;
• we identified the laws and regulations applicable to the company through discussions with members and other management, and from our commercial knowledge;
• we focused on specific laws and regulations which we considered may have a direct material effect on the financial statements or the operations of the company, including the Companies Act 2006, taxation legislation, data protection, anti-bribery, employment, environmental and health and safety legislation;
• we assessed the extent of compliance with the laws and regulations identified above through making enquiries of management; and
• identified laws and regulations were communicated within the audit team regularly and the team remained alert to instances of non-compliance throughout the audit.

We assessed the susceptibility of the company's financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by:
• making enquiries of management as to where they considered there was susceptibility to fraud, their knowledge of actual, suspected and alleged fraud; and
• considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations.

To address the risk of fraud through management bias and override of controls, we:
• performed analytical procedures to identify any unusual or unexpected relationships;
• tested journal entries to identify unusual transactions;
• assessed whether judgements and assumptions made in determining the accounting estimates were indicative of potential bias; and
• investigated the rationale behind significant or unusual transactions.

In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to:
• agreeing financial statement disclosures to underlying supporting documentation; and
• enquiring of management as to actual and potential litigation and claims.

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

 

Londonist DMC Ltd

Independent Auditor's Report to the Members of Londonist DMC Ltd (continued)

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.

......................................
Haydn Wood BA FCA (Senior Statutory Auditor)
For and on behalf of SRG (Audit) LLP, Statutory Auditor
 10 Bolt Court
London
EC4A 3DA

29 August 2025

 

Londonist DMC Ltd

Profit and Loss Account for the Year Ended 31 August 2024

Note

2024
£

(As restated)

2023
£

Turnover

4

37,588,317

23,528,220

Cost of sales

 

(34,645,167)

(19,254,324)

Gross profit

 

2,943,150

4,273,896

Administrative expenses

 

(5,256,776)

(3,573,258)

Other operating income

5

548,000

355,557

Operating (loss)/profit

7

(1,765,626)

1,056,195

Other interest receivable and similar income

8

20,743

-

Interest payable and similar expenses

9

(120,661)

(108,322)

   

(99,918)

(108,322)

(Loss)/profit before tax

 

(1,865,544)

947,873

Tax on (loss)/profit

13

(29,996)

48,634

(Loss)/profit for the financial year

 

(1,895,540)

996,507

The above results were derived from continuing operations.

The company has no recognised gains or losses for the year other than the results above.

 

Londonist DMC Ltd

Statement of Comprehensive Income for the Year Ended 31 August 2024

2024
£

(As restated)

2023
£

(Loss)/profit for the year

(1,895,540)

996,507

Total comprehensive income for the year

(1,895,540)

996,507

 

Londonist DMC Ltd

(Registration number: 08392889) (England and Wales)
Balance Sheet as at 31 August 2024

Note

2024
£

(As restated)

2023
£

Fixed assets

 

Intangible assets

14

220,101

263,300

Tangible assets

15

285,965

315,909

Investments

16

50

50

 

506,116

579,259

Current assets

 

Debtors

17

20,578,852

17,819,182

Cash at bank and in hand

 

397,015

231,949

 

20,975,867

18,051,131

Creditors: Amounts falling due within one year

19

(29,483,231)

(24,984,850)

Net current liabilities

 

(8,507,364)

(6,933,719)

Total assets less current liabilities

 

(8,001,248)

(6,354,460)

Creditors: Amounts falling due after more than one year

19

(248,752)

-

Net liabilities

 

(8,250,000)

(6,354,460)

Capital and reserves

 

Called up share capital

1,000

1,000

Retained earnings

(8,251,000)

(6,355,460)

Shareholders' deficit

 

(8,250,000)

(6,354,460)

These financial statements were approved and authorised for issue by the Board on 29 August 2025 and signed on its behalf by:
 

.........................................
Mr Asim Erturk
Director

   
     
 

Londonist DMC Ltd

Statement of Changes in Equity for the Year Ended 31 August 2024

Share capital
£

Retained earnings
£

Total
£

At 1 September 2022

1,000

(7,351,967)

(7,350,967)

Profit for the year

-

996,507

996,507

At 31 August 2023

1,000

(6,355,460)

(6,354,460)

Share capital
£

Retained earnings
£

Total
£

At 1 September 2023

1,000

(6,355,460)

(6,354,460)

Loss for the year

-

(1,895,540)

(1,895,540)

At 31 August 2024

1,000

(8,251,000)

(8,250,000)

 

Londonist DMC Ltd

Statement of Cash Flows for the Year Ended 31 August 2024

Note

2024
£

(As restated)

2023
£

Cash flows from operating activities

(Loss)/profit for the year

 

(1,895,540)

996,507

Adjustments to cash flows from non-cash items

 

Taxation expense/(credited)

13

29,996

(48,634)

Finance costs

9

120,661

108,322

Profit on disposal of tangible assets

6

(4,446)

(21,162)

Depreciation and amortisation

7

156,400

128,140

Bad debts written off

587,288

261,311

Inter company loans written off

6

117,214

152,589

Finance income

8

(20,743)

-

Foreign exchange gains/losses

 

2,766

-

 

(906,404)

1,577,073

Working capital adjustments

 

Increase in trade debtors

17

(3,386,124)

(8,798,548)

Increase in trade creditors

19

4,108,154

6,368,394

Cash generated from operations

 

(184,374)

(853,081)

Income taxes paid

13

(16,513)

(87,237)

Net cash flow from operating activities

 

(200,887)

(940,318)

Cash flows from investing activities

 

Interest received

8

20,743

-

Acquisition of intangible assets

14

(62,465)

(144,042)

Acquisitions of tangible assets

(35,669)

(125,529)

Proceeds from sale of tangible assets

 

19,323

37,666

Acquisition of investments in joint ventures and associates

16

-

(50)

Net cash flows from investing activities

 

(58,068)

(231,955)

Cash flows from financing activities

 

Interest paid

9

(120,661)

(108,322)

Repayment of/proceeds from bank borrowing

 

36,777

(241,288)

Proceeds from other borrowing draw downs

 

507,905

-

Net cash flows from financing activities

 

424,021

(349,610)

Net increase/(decrease) in cash and cash equivalents

 

165,066

(1,521,883)

Cash and cash equivalents at 1 September

 

231,949

1,753,832

Cash and cash equivalents at 31 August

 

397,015

231,949

 

Londonist DMC Ltd

Notes to the Financial Statements for the Year Ended 31 August 2024

1

General information

The company is a private company limited by share capital, incorporated in England and Wales.

The address of its registered office is:
5 Great James Street
London
WC1N 3DB
England

These financial statements were authorised for issue by the Board on 29 August 2025.

2

Accounting policies

Summary of significant accounting policies and key accounting estimates

The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.

Statement of compliance

These financial statements were prepared in accordance with Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland and the Companies Act 2006'.

Basis of preparation

These financial statements have been prepared using the historical cost convention except that as disclosed in the accounting policies certain items are shown at fair value.

The functional and presentational currency is GBP Sterling (£), being the currency of the primary economic environment in which the company operates in. The amounts are presented rounded to the nearest pound.

Going concern

The directors have considered the financial position of the company and its future prospects in preparing these statutory accounts. Despite a history of losses and a current deficit on the balance sheet, the company has returned to profitability in the current financial year.

The company has sufficient funding to meet foreseeable cash flow requirements, including existing cash reserves and access to borrowing facilities. Cash flow forecasts covering at least 12 months from the approval date of these accounts have been prepared, indicating that the company can meet its obligations as they fall due.

Based on the financial review and cash flow forecasts, the directors believe that the company has adequate resources to continue in operational existence for the foreseeable future. Therefore, the financial statements have been prepared on a going concern basis.

 

Londonist DMC Ltd

Notes to the Financial Statements for the Year Ended 31 August 2024 (continued)

2

Accounting policies (continued)

Revenue recognition

Turnover is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business, and is shown net of VAT and other sales related taxes. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.

Turnover includes rental income received or receivable from land and buildings. This rent income is apportioned in the profit and loss account over the period of the rental agreement with the customer net of VAT.

Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer (usually on dispatch of the goods), the amount of revenue can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the entity and the costs incurred or to be incurred in respect of the transaction can be measured reliably.

Revenue from contracts for the provision of professional services is recognised by reference to the stage of completion when the stage of completion, costs incurred and costs to complete can be estimated reliably. The stage of completion is calculated by comparing costs incurred, mainly in relation to contractual hourly staff rates and materials, as a proportion of total costs. Where the outcome cannot be estimated reliably, revenue is recognised only to the extent of the expenses recognised that it is probable will be recovered.

Foreign currency transactions and balances

Transactions in foreign currencies are initially recorded at the functional currency rate prevailing at the date of the transaction. Monetary assets and liabilities denominated in foreign currencies are retranslated into the respective functional currency of the entity at the rates prevailing on the reporting period date. Non-monetary items carried at fair value that are denominated in foreign currencies are retranslated at the rate on the date when the fair value is re-measured.

Non-monetary items measured in terms of historical cost in a foreign currency are not retranslated.

Tax

The tax expense for the period comprises current tax. Tax is recognised in profit or loss, except that a change attributable to an item of income or expense recognised as other comprehensive income is also recognised directly in other comprehensive income.

The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the reporting date in the countries where the company operates and generates taxable income.

Intangible assets

Intangible assets acquired separately from a business are recognised at cost and are subsequently measured at cost less accumulated amortisation and accumulated impairment losses.

Amortisation

Amortisation is provided on intangible assets so as to write off the cost, less any estimated residual value, over their useful life as follows:

Asset class

Amortisation method and rate

Software development

Over 5 years

 

Londonist DMC Ltd

Notes to the Financial Statements for the Year Ended 31 August 2024 (continued)

2

Accounting policies (continued)

Tangible assets

Tangible assets are stated in the balance sheet at cost, less any subsequent accumulated depreciation and subsequent accumulated impairment losses.

The cost of tangible assets includes directly attributable incremental costs incurred in their acquisition and installation.

Depreciation

Depreciation is charged so as to write off the cost of assets, other than land and properties under construction over their estimated useful lives, as follows:

Asset class

Depreciation method and rate

Land and buildings

Not depreciated

Furniture and fittings

18% straight line

IT and office equipment

18% straight line

Motor vehicles

18% straight line

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is credited or charged to profit or loss.

Land and Buildings, which is student accommodation units held to earn rentals and/or for capital appreciation, is initially recognised at cost, which includes the purchase cost and any directly attributable expenditure. Subsequently it is measured at fair value at the reporting end date. Changes in fair value are recognised in profit or loss.

Impairment of fixed assets

At each reporting period end date, the company reviews the carrying amounts of its tangible and intangible assets to determine whether there is any indication that those assets have suffered an impairment loss.

Investments

Interests in jointly controlled entities are initially measured at cost and subsequently measured at cost less any accumulated impairment losses. The investments are assessed for impairment at each reporting date and any impairment losses or reversals of impairment losses are recognised immediately in profit or loss.

Entities in which the company has a long term interest and shares control under a contractual arrangement are classified as jointly controlled entities.

Cash and cash equivalents

Cash and cash equivalents are basic financial assets and include cash in hand and deposits held at call with banks.

Leases

Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leases asset are consumed.

Share capital

Ordinary shares are classified as equity. Equity instruments are measured at the fair value of the cash or other resources received or receivable, net of the direct costs of issuing the equity instruments. If payment is deferred and the time value of money is material, the initial measurement is on a present value basis.

 

Londonist DMC Ltd

Notes to the Financial Statements for the Year Ended 31 August 2024 (continued)

2

Accounting policies (continued)

Defined contribution pension obligation

A defined contribution plan is a pension plan under which fixed contributions are paid into a pension fund and the company has no legal or constructive obligation to pay further contributions even if the fund does not hold sufficient assets to pay all employees the benefits relating to employee service in the current and prior periods.

Contributions to defined contribution plans are recognised as employee benefit expense when they are due. If contribution payments exceed the contribution due for service, the excess is recognised as a prepayment.

Financial instruments

Classification
The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.

Financial instruments are recognised in the company's balance sheet when the company becomes party to the contractual provisions of the instrument.

Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

 

Basic financial assets

Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.

Other financial assets

Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.

Impairment of financial assets
Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.

Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.

If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.

 

Londonist DMC Ltd

Notes to the Financial Statements for the Year Ended 31 August 2024 (continued)

2

Accounting policies (continued)

Derecognition of financial assets

Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the company transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.

Classification of financial liabilities

Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.

Basic financial liabilities
Basic financial liabilities, including creditors, bank loans, loans from fellow group companies, 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.

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.
 

Other financial liabilities

Derivatives, including interest rate swaps and forward foreign exchange contracts, are not basic financial instruments.

Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently remeasured at their fair value. Changes in the fair value of derivatives are recognised in profit or loss in finance costs or finance income as appropriate, unless hedge accounting is applied and the hedge is a cash flow hedge.

Debt instruments that do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured at fair value through profit or loss. Debt instruments may be designated as being measured at fair value through profit or loss to eliminate or reduce an accounting mismatch or if the instruments are measured and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy.

Derecognition of financial liabilities
Financial liabilities are derecognised when the company’s contractual obligations expire or are discharged or cancelled.

Equity instruments

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.

 

Londonist DMC Ltd

Notes to the Financial Statements for the Year Ended 31 August 2024 (continued)

2

Accounting policies (continued)

Employee benefits

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

Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

3

Judgements and key sources of estimation uncertainty

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.

There are no key estimates or judgements made during the year ended 31 August 2024.

4

Turnover

The analysis of the company's Turnover for the year from continuing operations is as follows:

2024
£

2023
£

Sale of goods

816,602

335,259

Rendering of services

39,217

25,246

Rental income from investment property

36,732,498

23,167,715

37,588,317

23,528,220

5

Other operating income

The analysis of the company's other operating income for the year is as follows:

2024
£

2023
£

Miscellaneous other operating income

548,000

355,557

6

Other gains and losses

The analysis of the company's other gains and losses for the year is as follows:

2024
£

2023
£

Gain on disposal of Tangible assets

4,446

21,162

 

Londonist DMC Ltd

Notes to the Financial Statements for the Year Ended 31 August 2024 (continued)

7

Operating (loss)/profit

Arrived at after charging/(crediting)

2024
£

2023
£

Depreciation expense

50,736

39,799

Amortisation expense

105,664

88,341

Foreign exchange losses/(gains)

9,298

(5,472)

Operating lease expense - property

178,181

104,913

Profit on disposal of property, plant and equipment

(4,446)

(21,162)

8

Other interest receivable and similar income

2024
£

2023
£

Interest income on bank deposits

20,743

-

9

Interest payable and similar expenses

2024
£

(As restated)

2023
£

Interest on bank overdrafts and borrowings

1,803

30,799

Interest expense on other finance liabilities

118,858

77,523

120,661

108,322

10

Staff costs

The aggregate payroll costs (including directors' remuneration) were as follows:

2024
£

2023
£

Wages and salaries

1,456,293

922,466

Social security costs

131,009

105,025

Pension costs, defined contribution scheme

14,281

14,251

Other employee expense

11,200

20,638

1,612,783

1,062,380

The average monthly number of persons employed by the company (including directors) during the year, analysed by category was as follows:

 

Londonist DMC Ltd

Notes to the Financial Statements for the Year Ended 31 August 2024 (continued)

10

Staff costs (continued)

2024
No.

2023
No.

Administration and support

31

25

31

25

11

Directors' remuneration

The directors' remuneration for the year was as follows:

2024
£

2023
£

Remuneration

436,405

188,333

Contributions paid to money purchase schemes

2,750

-

439,155

188,333

In respect of the highest paid director:

2024
£

Remuneration

305,072

Company contributions to pension schemes

1,430

In 2023 no director was remunerated more than £200,000.

12

Auditors' remuneration

2024
£

2023
£

Audit of the financial statements

18,000

18,000


 

13

Taxation

Tax charged/(credited) in the profit and loss account

2024
£

2023
£

Current taxation

UK corporation tax adjustment to prior periods

29,996

(48,634)

The tax on profit before tax for the year is the same as the standard rate of corporation tax in the UK (2023 - the same as the standard rate of corporation tax in the UK) of 19% (2023 - 21.52%).

The differences are reconciled below:

 

Londonist DMC Ltd

Notes to the Financial Statements for the Year Ended 31 August 2024 (continued)

13

Taxation (continued)

2024
£

(As restated)

2023
£

(Loss)/profit before tax

(1,865,544)

947,873

Corporation tax at standard rate

(354,453)

203,936

Adjustments in respect of prior year

29,996

(48,634)

Tax increase from effect of capital allowances and depreciation

10,064

3,574

Effect of expense not deductible in determining taxable profit (tax loss)

22,415

41,201

Movement in deferred tax not recognised

321,974

(300,783)

Remeasurement of deferred tax for changes in tax rates

-

52,072

Total tax charge/(credit)

29,996

(48,634)

14

Intangible assets

Internally generated software development costs
 £

Cost or valuation

At 1 September 2023

478,089

Additions internally developed

62,465

At 31 August 2024

540,554

Amortisation

At 1 September 2023

214,789

Amortisation charge

105,664

At 31 August 2024

320,453

Carrying amount

At 31 August 2024

220,101

At 31 August 2023

263,300

 

Londonist DMC Ltd

Notes to the Financial Statements for the Year Ended 31 August 2024 (continued)

15

Tangible assets

Land and buildings
£

Fixtures and fittings
£

Office equipment
£

Motor vehicles
 £

Total
£

Cost or valuation

At 1 September 2023

150,000

12,000

119,401

142,916

424,317

Additions

-

5,780

29,889

-

35,669

Disposals

-

-

-

(19,195)

(19,195)

At 31 August 2024

150,000

17,780

149,290

123,721

440,791

Depreciation

At 1 September 2023

-

8,100

74,555

25,753

108,408

Charge for the year

-

2,689

22,609

25,438

50,736

Eliminated on disposal

-

-

-

(4,318)

(4,318)

At 31 August 2024

-

10,789

97,164

46,873

154,826

Carrying amount

At 31 August 2024

150,000

6,991

52,126

76,848

285,965

At 31 August 2023

150,000

3,900

44,846

117,163

315,909

Included within the net book value of land and buildings above is £150,000 (2023 - £150,000) in respect of freehold land and buildings.
 

 

Londonist DMC Ltd

Notes to the Financial Statements for the Year Ended 31 August 2024 (continued)

16

Investments

2024
£

2023
£

Investments in joint ventures

50

50

Joint ventures

£

Cost

At 1 September 2023

50

Carrying amount

At 31 August 2024

50

At 31 August 2023

50

Details of undertakings

Details of the investments (including principal place of business of unincorporated entities) in which the company holds 20% or more of the nominal value of any class of share capital are as follows:

Undertaking

Registered office

Holding

Proportion of voting rights and shares held

2024

2023

Joint ventures

Uninist Limited

MSR House
329 Ley Street
Ilford
IG1 4AA
United Kingdom

Ordinary shares

50%

51%

Joint ventures

Uninist Limited

The principal activity of Uninist Limited is letting and operating of own real estate.

On 12 September 2023, 1 share in Uninist Limited was transferred to the other joint venture partner and the new shareholding is 50%.

Londonist DMC Limited's shareholding in Uninist Limited at 31 August 2024 was 50%, however Londonist DMC Limited did not exercise control over Uninist Limited as a joint venture agreement was in place. Therefore, the results of Uninist Limited are not consolidated into the accounts of Londonist DMC Limited for the year ended 31 August 2024.

 

Londonist DMC Ltd

Notes to the Financial Statements for the Year Ended 31 August 2024 (continued)

17

Debtors

Note

2024
£

2023
£

Trade debtors

 

12,426,297

13,676,151

Amounts owed by related parties

24

1,569,526

164,004

Corporation tax recoverable

13

256,204

178,156

Other debtors

 

847,469

446,342

Prepayments

 

5,396,082

3,177,632

Accrued income

 

83,274

176,897

   

20,578,852

17,819,182

Less non-current portion

 

(91,350)

(55,517)

 

20,487,502

17,763,665

18

Cash and cash equivalents

2024
£

2023
£

Cash at bank

397,015

231,949

19

Creditors

Note

2024
£

(As restated)

2023
£

Due within one year

 

Loans and borrowings

20

351,606

55,676

Trade creditors

 

6,228,113

1,978,637

Social security and other taxes

 

1,293,144

787,902

Outstanding defined contribution pension costs

 

3,030

2,598

Other payables

 

729,088

937,402

Corporation tax payable

13

137,181

45,650

Accruals

 

271,013

396,407

Deferred income

 

20,470,056

20,780,578

 

29,483,231

24,984,850

Due after one year

 

Loans and borrowings

20

248,752

-

 

Londonist DMC Ltd

Notes to the Financial Statements for the Year Ended 31 August 2024 (continued)

20

Loans and borrowings

Non-current loans and borrowings

2024
£

2023
£

Other borrowings

248,752

-

Current loans and borrowings

2024
£

2023
£

Other borrowings

351,606

55,676

21

Pension and other schemes

Defined contribution pension scheme

The company operates a defined contribution pension scheme. The pension cost charge for the year represents contributions payable by the company to the scheme and amounted to £14,281 (2023 - £14,251).

The company operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the company in an independently administered fund.

Contributions totalling £3,030 (2023 - £2,598) were payable to the scheme at the end of the year and are included in creditors.

22

Obligations under leases and hire purchase contracts

Operating leases

The total of future minimum lease payments is as follows:

2024
£

2023
£

Not later than one year

44,442

96,755

Later than one year and not later than five years

-

19,125

44,442

115,880

The amount of non-cancellable operating lease payments recognised as an expense during the year was £Nil (2023 - £Nil).

 

Londonist DMC Ltd

Notes to the Financial Statements for the Year Ended 31 August 2024 (continued)

23

Share capital

Allotted, called up and fully paid shares

2024

2023

No.

£

No.

£

Ordinary shares of £1 each

1,000

1,000

1,000

1,000

       

24

Related party transactions

At the balance sheet date, the amount owed by Uninist Limited, a joint venture, is £91,350 (2023: £55,517) and the rate of interest applied to this loan is 4.25% and the loan is repayable on 01 March 2026. In addition, during the year ended 31 August 2024, turnover includes sales of £887,521 (2023: £1,927) to Uninist Limited and rental expenses includes £858,942 (2023: £Nil) from Uninist Limited.

At the balance sheet date, the company was owed £367,737 (2023: £108,487) by Londonist Estate Agents Limited, a connected company. This loan is interest free and repayable on demand. The company is defined as a connected company due to a common director and shareholder in both companies.

At the balance sheet date, the company was owed £724,526 (2023: £Nil) by Londonist International Management Limited, a connected company. This loan is interest free and repayable on demand. The company is defined as a connected company due to a common director and shareholder in both companies.

At the balance sheet date, the company was owed £330,913 (2023: £Nil) by Londonist Hospitality Limited, a connected company. This loan is interest free and repayable on demand. The company is defined as a connected company due to a common director and shareholder in both companies.

At the balance sheet date, the company was owed £55,000 (2023: £Nil) by a Branch in Turkey. This loan is interest free and repayable on demand.

Other debtors includes an amount of £764,300 (2023: £357,837) due from the director of the company. This loan is interest free and repayable on demand.

At the year end, the company had irrecoverable loans to connected companies amounting to £117,214 (2023: £152,589). These irrecoverable loans were written off at the year end. These connected companies shared a common shareholder and director, Mr Asim Erturk.

 

Londonist DMC Ltd

Notes to the Financial Statements for the Year Ended 31 August 2024 (continued)

25

Prior period restatement

On review of historically filed VAT returns, management identified errors in the VAT workings. As a result, the company determined that VAT liabilities had been understated in prior periods.

To enhance transparency and provide a clearer understanding of the company’s financial position and performance, the comparative information presented on the face of the Profit and Loss account, Balance Sheet and the Statement of Changes in Equity has been restated to reflect the corrections.

The specific adjustments are as follows:

Impact on Profit and Loss account:
• Administrative expenses has been restated from £3,312,576 to £3,573,258 in 2023 being an adjustment of £260,682.
• Interest payable has been restated from £307,799 to £108,322 in 2023 being an adjustment of £77,523.
• Operating profit has been restated from £1,316,877 to £1,056,195 in 2023 being an adjustment of £260,682.
• Profit atfer tax has been restated from £1,334,712 to £996,507 in 2023 being an adjustment of £338,205.

Impact on Balance sheet:
• Creditors amounts falling due within one year from £24,310,945 to £24,984,851 in 2023 being an adjustment of £673,904.
• Net Current liabilities from £5,680,556 to £6,354,460 in 2023 being an adjustment of £673,904.
• Retained earnings from £5,681,556 to £6,354,460 in 2023 being an adjustment of £673,904.

Impact on Statement of changes in equity
• Retained earnings brought forward as at 1 September 2022 from £7,016,268 to £7,351,967 being an adjustment of £335,699.
• Retained earnings carried forward as at 31 August 2023 from £5,681,556 to £6,354,460 in 2023 being an adjustment of £673,904.