The directors of the company have elected not to include a copy of the profit and loss account within the financial statements.true

These financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime.

Artfarm Property Limited is a private company limited by shares incorporated in England and Wales. The registered office is 6 Grosvenor Street, London, England, W1K 4PZ.

These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006 as applicable to companies subject to the small companies regime. The disclosure requirements of section 1A of FRS 102 have been applied other than where additional disclosure is required to show a true and fair view.

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 financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.

The company has the financial support of the trueultimate parent company for a period of at least twelve months from the date of the approval of these financial statements. Accordingly, the directors have a reasonable expectation that the company has adequate resources to continue in operation for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.

The current accounting period is for the 52 week period to 29 December 2024. The comparative period is for the 52 week period ended 31 December 2023.

Revenue relates to rental income under leasing arrangements. Income is recognised on a straight line basis over the term of the lease.

Tangible fixed assets are initially measured at cost and subsequently measured at cost, net of depreciation and any impairment losses.

Depreciation is recognised so as to write off the cost of assets less their residual values over their useful lives on the following bases:

Assets are not depreciated until they are brought into use at the various locations which are operated by the company.

Freehold land is not depreciated on the basis that the residual value is considered equal to the carrying value of the assets.

Included within fixtures and fittings are works of art, which are considered to be long life assets with a residual value which is aligned with the carrying value of the asset. As such, they are not depreciated.

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.

At each reporting period end date, the company reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.

Recoverable amount is the higher of fair value less costs to sell and value in use. Where possible, third party valuations are carried out in order to assess the fair value of assets. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.

If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.

Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.

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, 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.

Financial assets 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.

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.

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 and 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.

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.

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

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.

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.

Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation in the period are included in profit or loss.

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 following judgements (apart from those involving estimates) have had the most significant effect on amounts recognised in the financial statements.

The company depreciates freehold buildings over 50 years. The land value attributed to the company's land and buildings has been estimated based on historic land purchases with a measure of cost per unit of land being applied to sites which consist of land and buildings. Depreciation is only charged on the building element of the building, whilst land is not depreciated.

The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are as follows.

At the year end the company was owed £1,181,533 (2023: £760,310) from fellow group companies. The directors assess the recoverability of these debts based on the actual and forecast financial results of the group companies and guarantees provided by other group companies. At the period end the directors consider the amounts owed by group undertakings to be recoverable.

As at 31 December 2024, no provisions had been recognised against amounts due from group undertakings (2023: £nil).

The company, due to the nature of operations, invests heavily in freehold land and buildings, property improvements and other fixtures and fittings at operational locations. This includes investments in works of art. As a result of this, is is necessary to make estimations of the useful lives of the capitalised assets. The estimation of the useful life of the asset is made based on historic trends and judgements relating to the timing of purchase of replacements and refurbishments and the expected residual value of assets. This is reviewed internally on a regular basis in order to determine if there are any indicators of impairment.

Freehold land and works of art, are considered to be long life assets with a residual value which is aligned with the carrying value of the asset. They are therefore not depreciated.

At 31 December 2024, no impairments had been recognised against tangible fixed assets (2023: £nil).

The average monthly number of persons (including directors) employed by the company during the period and previous period was nil.

Included within the net book value of freehold property is £15,459,192 (2022: £15,096,668) in respect of the cost of freehold land and buildings.

Other debtors includes loans due from Brood Hospitality Ltd totalling £416,199 (2023: £534,406). Interest accrues on the loan at a rate of 3.80% per annum and is repayable in instalments, and is secured over property owned by the borrower by way of first legal mortgage.

Included in bank loans due within one year are capitalised arrangement fees, which result in a negative balance as at 31 December 2024.

The company has two bank loans which bear interest at 1.90% plus the C. Hoare & Co. Managed Variable Rate. Bank loans are repayable between April 2026 and May 2027.

On 17 May 2024, the company entered into a refinancing agreement for two loans outstanding at 31 December 2023. As part of the arrangement, two loans totalling £7,340,000 were repaid and a new facility totalling £7,340,000 agreed with the lender.

The bank loans are secured by a first legal charge over freehold property held by the entity, and include a negative pledge.

All shares rank pari passu with regards to voting and distribution rights.

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:

The auditor's report was unqualified.

As at 29 December 2024, personal guarantees were provided by the ultimate beneficial owners for loans in the company totalling £14,040,000 (2023: £14,040,000), supported by charges over a number of personal assets. In addition to this, guarantees were provided by parent undertakings for loans in the company totalling £6,900,000 (2023: £6,900,000).

The company provided a guarantee to the ultimate beneficial owners of the group for personal loans totalling £15,000,000 (2023: £15,000,000), supported by charges over the freehold property owned by the group.

At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, as follows:

At the reporting end date the company had contracted with tenants for the following minimum lease payments:

As at 31 December 2024, the company had capital commitments totalling £41,907 (2023: £1,035,634) relating to services which were contracted but not provided for in the financial statements.

Following the balance sheet date, the company completed on the acquisition of a new site in Scotland. The total consideration for this was £330,697.

The smallest group into which this entity is consolidated is Artfarm Group Limited, with the registered address of 6 Grosvenor Street, London, England, W1K 4PZ. Copies of the group financial statements can be obtained from the UK Registrar of Companies. The ultimate controlling parties are I Wirth and M Wirth Hauser.