LAN Estates Limited Filleted accounts for Companies House (small and micro)

COMPANY REGISTRATION NUMBER: 07012406

LAN ESTATES LIMITED

FILLETED UNAUDITED FINANCIAL STATEMENTS

30 September 2024

LAN ESTATES LIMITED

STATEMENT OF FINANCIAL POSITION

30 September 2024

	2024		2023
Note	£	£	£

Fixed assets

Tangible assets	6		18,624,331	18,189,887

Current assets

Debtors	7	49,020	80,690
Cash at bank and in hand		112,630	343,246
		----------	----------
		161,650	423,936

Creditors: amounts falling due within one year	8	3,409,911		4,234,239
		-------------		-------------
Net current liabilities			3,248,261	3,810,303
			---------------	---------------
Total assets less current liabilities			15,376,070	14,379,584

Creditors: amounts falling due after more than one year	9		5,813,198	5,682,654

Provisions

Taxation including deferred tax	2,138,831	1,871,520
	---------------	---------------
Net assets	7,424,041	6,825,410
	---------------	---------------

Capital and reserves

Called up share capital		100	100
Profit and loss account	10	7,423,941	6,825,310
		-------------	-------------
Shareholders funds		7,424,041	6,825,410
		-------------	-------------

These financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies' regime and in accordance with Section 1A of FRS 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'.

In accordance with section 444 of the Companies Act 2006, the statement of income and retained earnings has not been delivered.

For the year ending 30 September 2024 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.

Directors' responsibilities:

- The members have not required the company to obtain an audit of its financial statements for the year in question in accordance with section 476 ;

- The directors acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and the preparation of financial statements .

LAN ESTATES LIMITED

STATEMENT OF FINANCIAL POSITION (continued)

30 September 2024

These financial statements were approved by the board of directors and authorised for issue on 2 September 2025 , and are signed on behalf of the board by:

Mr A Hamza

Director

Company registration number: 07012406

LAN ESTATES LIMITED

NOTES TO THE FINANCIAL STATEMENTS

YEAR ENDED 30 SEPTEMBER 2024

1. General information

The company is a private company limited by shares, registered in England and Wales. The address of the registered office is 168 Church Road, Hove, East Sussex, BN3 2DL.

2. Statement of compliance

These financial statements have been prepared in compliance with Section 1A of FRS 102, 'The Financial Reporting Standard applicable in the UK and the Republic of Ireland'.

3. Accounting policies

Basis of preparation

The financial statements have been prepared on the historical cost basis, as modified by the revaluation of certain financial assets and liabilities and investment properties measured at fair value through profit or loss. The financial statements are prepared in sterling, which is the functional currency of the entity. No material uncertainties related to conditions that may cast doubt about the ability of the company to continue as a going concern have been identified by the directors.

Consolidation

The entity has taken advantage of the exemption from preparing consolidated financial statements contained in Section 401 of the Companies Act 2006 on the basis that it is a subsidiary undertaking and its immediate parent undertaking is not established under the law of an EEA State.

Judgements and key sources of estimation uncertainty

The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the amounts reported. These estimates and judgements are continually reviewed and are based on experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. Significant judgements The judgements (apart from those involving estimations) that management has made in the process of applying the entity's accounting policies and that have the most significant effect on the amounts recognised in the financial statements are as follows: - investment property valuations

Revenue recognition

Turnover represents amounts derived from the company's principal activity. Rental income is recognised over the term of the lease on a straight-line basis. The aggregate cost of incentives is deducted from the rental income and allocated to the profit and loss account over the lease term or to the next review date, whichever is shorter. Sales income and asset management fees are recognised when the financial risks and rewards are transferred.

Income tax

The taxation expense represents the aggregate amount of current and deferred tax recognised in the reporting period. Tax is recognised in profit or loss, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. In this case, tax is recognised in other comprehensive income or directly in equity, respectively. Current tax is recognised on taxable profit for the current and past periods. Current tax is measured at the amounts of tax expected to pay or recover using the tax rates and laws that have been enacted or substantively enacted at the reporting date.

Deferred tax is recognised in respect of all timing differences at the reporting date. Unrelieved tax losses and other deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Deferred tax is measured using the tax rates and laws that have been enacted or substantively enacted by the reporting date that are expected to apply to the reversal of the timing difference.

Tangible assets

Tangible assets are initially recorded at cost, and subsequently stated at cost less any accumulated depreciation and impairment losses. Any tangible assets carried at revalued amounts are recorded at the fair value at the date of revaluation less any subsequent accumulated depreciation and subsequent accumulated impairment losses. An increase in the carrying amount of an asset as a result of a revaluation, is recognised in other comprehensive income and accumulated in equity, except to the extent it reverses a revaluation decrease of the same asset previously recognised in profit or loss. A decrease in the carrying amount of an asset as a result of revaluation, is recognised in other comprehensive income to the extent of any previously recognised revaluation increase accumulated in equity in respect of that asset. Where a revaluation decrease exceeds the accumulated revaluation gains accumulated in equity in respect of that asset, the excess shall be recognised in profit or loss.

Depreciation

Depreciation is calculated so as to write off the cost or valuation of an asset, less its residual value, over the useful economic life of that asset as follows:

	Office equipment	-	33% straight line

No depreciation has been provided on investment property. Investment property is revalued to its fair value at each reporting date and any changes in fair value are recognised in profit or loss.

Impairment of fixed assets

A review for indicators of impairment is carried out at each reporting date, with the recoverable amount being estimated where such indicators exist. Where the carrying value exceeds the recoverable amount, the asset is impaired accordingly. Prior impairments are also reviewed for possible reversal at each reporting date. For the purposes of impairment testing, when it is not possible to estimate the recoverable amount of an individual asset, an estimate is made of the recoverable amount of the cash-generating unit to which the asset belongs. The cash-generating unit is the smallest identifiable group of assets that includes the asset and generates cash inflows that largely independent of the cash inflows from other assets or groups of assets. For impairment testing of goodwill, the goodwill acquired in a business combination is, from the acquisition date, allocated to each of the cash-generating units that are expected to benefit from the synergies of the combination, irrespective of whether other assets or liabilities of the company are assigned to those units.

Provisions

Provisions are recognised when the entity has an obligation at the reporting date as a result of a past event, it is probable that the entity will be required to transfer economic benefits in settlement and the amount of the obligation can be estimated reliably. Provisions are recognised as a liability in the statement of financial position and the amount of the provision as an expense. Provisions are initially measured at the best estimate of the amount required to settle the obligation at the reporting date and subsequently reviewed at each reporting date and adjusted to reflect the current best estimate of the amount that would be required to settle the obligation. Any adjustments to the amounts previously recognised are recognised in profit or loss unless the provision was originally recognised as part of the cost of an asset. When a provision is measured at the present value of the amount expected to be required to settle the obligation, the unwinding of the discount is recognised as a finance cost in profit or loss in the period it arises.

Financial instruments

A financial asset or a financial liability is recognised only when the entity becomes a party to the contractual provisions of the instrument. Basic financial instruments are initially recognised at the transaction price, unless the arrangement constitutes a financing transaction, where it is recognised at the present value of the future payments discounted at a market rate of interest for a similar debt instrument. Debt instruments are subsequently measured at amortised cost.

Defined contribution plans

Contributions to defined contribution plans are recognised as an expense in the period in which the related service is provided. Prepaid contributions are recognised as an asset to the extent that the prepayment will lead to a reduction in future payments or a cash refund. When contributions are not expected to be settled wholly within 12 months of the end of the reporting date in which the employees render the related service, the liability is measured on a discounted present value basis. The unwinding of the discount is recognised as a finance cost in profit or loss in the period in which it arises.

4. Employee numbers

The average number of persons employed by the company during the year amounted to 3 (2023: 3 ).

5. Tax on profit

Major components of tax expense

	2024	2023
	£	£

Deferred tax:

Origination and reversal of timing differences	267,312	60,000
Impact of change in tax rate	–	430,103
	----------	----------
Total deferred tax	267,312	490,103
	----------	----------
Tax on profit	267,312	490,103
	----------	----------

Reconciliation of tax expense

The tax assessed on the profit on ordinary activities for the year is higher than (2023: higher than) the standard rate of corporation tax in the UK of 25 % (2023: 22.01 %).

	2024	2023
	£	£
Profit on ordinary activities before taxation	865,943	185,952
	----------	----------
Profit on ordinary activities by rate of tax	216,486	40,928
Effect of expenses not deductible for tax purposes	36,931	5,560
Effect of capital allowances and depreciation	( 1,277)	( 305)
Effect of revenue exempt from tax	( 266,975)	–
Effect of group relief	14,835	6,641
Effect of gain on revaluation	–	(52,824)
Deferred tax charge	267,312	490,103
	----------	----------
Tax on profit	267,312	490,103
	----------	----------

6. Tangible assets

	Land and buildings	Equipment	Total
	£	£	£
Cost
At 1 October 2023	18,187,391	69,659	18,257,050
Additions	430,882	8,307	439,189
	---------------	---------	---------------
At 30 September 2024	18,618,273	77,966	18,696,239
	---------------	---------	---------------
Depreciation
At 1 October 2023	–	67,163	67,163
Charge for the year	–	4,745	4,745
	---------------	---------	---------------
At 30 September 2024	–	71,908	71,908
	---------------	---------	---------------
Carrying amount
At 30 September 2024	18,618,273	6,058	18,624,331
	---------------	---------	---------------
At 30 September 2023	18,187,391	2,496	18,189,887
	---------------	---------	---------------

Tangible assets held at valuation

The investment properties were valued by the directors on an open market value basis at 30 September 2024. Investment properties were last valued by an external valuer, CBRE Limited, at market value in December 2022.

7. Debtors

	2024	2023
	£	£
Trade debtors	20,526	34,071
Amounts owed by group undertakings and undertakings in which the company has a participating interest	25,000	25,000
Other debtors	3,494	21,619
	---------	---------
	49,020	80,690
	---------	---------

8. Creditors: amounts falling due within one year

	2024	2023
	£	£
Trade creditors	200,894	98,016
Social security and other taxes	3,075	–
Other creditors	3,205,942	4,136,223
	-------------	-------------
	3,409,911	4,234,239
	-------------	-------------

9. Creditors: amounts falling due after more than one year

	2024	2023
	£	£
Amounts owed to group undertakings and undertakings in which the company has a participating interest	5,813,198	5,682,654
	-------------	-------------

10. Reserves

Profit and loss account - This reserve records retained earnings and accumulated losses (distributable), together with investment property revaluations and associated deferred tax (non-distributable). At 30 September 2024 the profit and loss account balance of £7,423,941 (2023: £6,825,310) represents accumulated profits of £398,834 (2023: £467,109 losses) and non-distributable reserves of £7,025,107 (2023: £7,292,419).

11. Related party transactions

The company owed £5,665,198 to LANN Estates Limited, a company under common control, at the year end for monies lent by them (2023 £5,564,654). During the year the company paid loan interest to LANN Estates Limited totalling £475,210 (2023 £351,860).

12. Controlling party

LAN Investments Ltd (incorporated in Seychelles) is regarded by the directors as being the company's ultimate parent company. At the year end, LAN Investments Limited were owed £2,446,844 for deeply discounted securities (DDS) issued to them by LAN Estates Limited (2023 £3,367,900). During the year, previous year's discounts and arrangement fees totalling £1,067,900 were waived by LAN Investments Limited, and a discount and arrangement fee totalling £146,844 was charged for new replacement securities issued to them in the year. At the year end, LAN Investments Limited were also owed £148,000 for loans made to LAN Estates Limited (2023 £118,000).