|
Registered number: 13426403
RAIF SF 1 LIMITED
FINANCIAL STATEMENTS
INFORMATION FOR FILING WITH THE REGISTRAR
FOR THE YEAR ENDED 31 DECEMBER 2024
|
|
RAIF SF 1 LIMITED
REGISTERED NUMBER: 13426403
STATEMENT OF FINANCIAL POSITION
AS AT 31 DECEMBER 2024
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Debtors: amounts falling due within one year
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Creditors: amounts falling due within one year
|
|
|
|
|
|
|
|
|
|
|
|
|
Total assets less current liabilities
|
|
|
|
|
|
Creditors: amounts falling due after more than one year
|
|
|
|
|
|
Provisions for liabilities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
RAIF SF 1 LIMITED
REGISTERED NUMBER: 13426403
STATEMENT OF FINANCIAL POSITION (CONTINUED)
AS AT 31 DECEMBER 2024
The company's financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies regime and in accordance with the provisions of FRS 102 Section 1A - small entities.
The financial statements have been delivered in accordance with the provisions applicable to companies subject to the small companies regime.
The company has opted not to file the statement of comprehensive income in accordance with provisions applicable to companies subject to the small companies' regime.
The financial statements were approved and authorised for issue by the board and were signed on its behalf by:
The notes on pages 11 to 19 form part of these financial statements.
|
|
RAIF SF 1 LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
RAIF SF 1 Limited is a private company limited by shares and incorporated in England and Wales. The registered office of the company is 71-75 Shelton Street, Covent Garden, London, WC2H 9JQ. The principal activity of the company during the period has been that of property investment and rental.
2.Accounting policies
|
|
|
Basis of preparation of financial statements
|
The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and the Companies Act 2006.
The following principal accounting policies have been applied:
The company has made a loss before tax of £1,516,999 (2023 - £344,131 profit) during the year mainly due to the reporting of an unrealized loss on revaluation of investment property and provision for doubtful debts. The financial statements have been prepared on a going concern basis, which assumes that the company will continue to meet its liabilities when they fall due in the normal course of business. The directors have reviewed the company’s secure revenue stream from the portfolio of properties along with the cash flow forecast for 12 months post-year end to 31 December 2025 which indicates the company will have sufficient funds available to meet its liabilities as they fall due and continue in operation during the period. Furthermore, the immediate parent company and ultimate parent company has agreed to provide continued financial support to the company. While this is not without challenge, and some uncertainty, the directors remain confident that the going concern basis remains appropriate for at least 12 months from the date of approval of the financial statements.
|
|
|
Foreign currency translation
|
Functional and presentation currency
The company's functional and presentational currency is GBP.
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.
|
|
RAIF SF 1 LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
2.Accounting policies (continued)
Revenue relates to rental income and ancillary income for services provided. Rental income from investment property leased out under operating leases is recognised in the Statement of comprehensive income on a straight-line basis over the rental term of the lease. Income is deferred when received in advance.
The rental term is the non-cancellable period of the rental agreement, together with any further term for which the tenant has the option to continue the rental agreement, when, at the inception of the rental agreement it is reasonably certain that the tenant will exercise this option. Costs incurred in earning the rental income are recognised as a expense in the statement of comprehensive income
Interest income is recognised in profit or loss using the effective interest method.
Finance costs are charged to profit or loss over the term of the debt using the effective interest method so that the amount charged is at a constant rate on the carrying amount. Issue costs are initially recognised as a reduction in the proceeds of the associated capital instrument.
All borrowing costs are recognised in profit or loss in the period in which they are incurred.
|
|
|
Current and deferred taxation
|
The tax expense for the year comprises current and deferred tax. Tax is recognised in profit or loss except that a charge attributable to an item of income and expense recognised as other comprehensive income or to an item recognised directly in equity is also recognised in other comprehensive income or directly in equity respectively.
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 income.
Deferred tax balances are recognised in respect of all timing differences that have originated but not reversed by the reporting date, except that:
∙The recognition of deferred tax assets is limited to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits; and
∙Any deferred tax balances are reversed if and when all conditions for retaining associated tax allowances have been met.
Deferred tax balances are not recognised in respect of permanent differences except in respect of business combinations, when deferred tax is recognised on the differences between the fair values of assets acquired and the future tax deductions available for them and the differences between the fair values of liabilities acquired and the amount that will be assessed for tax. Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the reporting date.
|
|
RAIF SF 1 LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
2.Accounting policies (continued)
Investment property, which is property held to earn rental income and/or capital appreciation, is initially measured at cost, being the fair value of the consideration given, including expenditure that is directly attributable to the acquisition of the investment property. After initial recognition, investment property is stated as its fair value at the balance sheet date. Gains and losses arising from changes in the fair value of investment property are included in profit and loss for the period in which they arise in the Statement of Comprehensive Income. These gains and losses are subsequently moved to
'other reserves' in the Statement of Changes in Equity.
Significant accounting judgements, estimates and assumptions made for the valuation of investment properties are discussed, where necessary, in note 2.15 and 6.
Short-term debtors are measured at transaction price, less any impairment. Loans receivable are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method, less any impairment.
|
|
|
Cash and cash equivalents
|
Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours. Cash equivalents are highly liquid investments that mature in no more than three months from the date of acquisition and that are readily convertible to known amounts of cash with insignificant risk of change in value.
Short-term creditors are measured at the transaction price. Other financial liabilities, including bank loans, are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method.
|
|
|
Provisions for liabilities
|
Provisions are made where an event has taken place that gives the company a legal or constructive obligation that probably requires settlement by a transfer of economic benefit, and a reliable estimate can be made of the amount of the obligation.
Provisions are charged as an expense to profit or loss in the year that the company becomes aware of the obligation, and are measured at the best estimate at the reporting date of the expenditure required to settle the obligation, taking into account relevant risks and uncertainties. When payments are eventually made, they are charged to the provision carried in the Statement of financial position
The company only enters into basic financial instrument transactions that result in the recognition of financial assets and liabilities like trade and other debtors and creditors, loans from banks and other third parties, loans to related parties and investments in ordinary shares.
|
|
RAIF SF 1 LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
2.Accounting policies (continued)
|
|
|
|
|
Key estimates and judgments
|
The preparation of the financial statements in accordance with UK GAAP requires management to make estimates and judgments which affect the reported value of assets and liabilities at the balance sheet date.
There is estimation uncertainty in calculating the fair value of investment property. The company obtains a formal valuation from an external expert which is reviewed by management and adjusted in accordance with their understanding of rental yield and capital values which relate to the unique nature of the properties let and the lease structures which apply to them. Further details are given at note 2.9 and 6.
Trade debtors are recorded at their estimated recoverable amount and are reported net of bad debt provisions. A full line by line review carried out based on subsequent receipt of cash post period end, as well as historical experience of the client. Whilst every attempt is made to ensure that bad debt provisions are accurate as possible, there are remains a risk that the provisions do not match the level of debts which ultimately prove to be uncollectable. The provision carried at the year end was £793,284 (2023 - £53,830).
The directors have also considered the position with My Space Housing Solutions Ltd, a tenant that entered into a Company Voluntary Arrangement (CVA) on 7 March 2025. Despite the appointment of an Insolvency Practitioner to assess possible creditor repayments, the outstanding balance of £228,876 at the year end was fully provided, as the directors consider the debt irrecoverable. The full provision has been recognised in the statement of comprehensive income statement.
Additionally, the directors have also had to consider the position with Northern Housing Association Ltd (NH) which owed £672,785 at the year end, all of which remains unpaid. Notwithstanding, the directors have been working with NH on a repayment plan and current rentals are being remitted to the company on one of its two properties. At the year end, one property was fully provided, as the directors consider the debt irrecoverable, the full provision has been recognised in the statement of comprehensive income statement.
The average monthly number of employees, including directors, during the year was 3 (2023 - 3).
|
|
RAIF SF 1 LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
|
|
Freehold investment property
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Investment property has been independently valued, on an individual property basis, at fair value by JPA Surveyors, a RICS qualified surveyor, in accordance with the RICS red book methodology. However, the
valuations are the ultimate responsibility of the directors.
|
|
If the Investment properties had been accounted for under the historic cost accounting rules, the properties would have been measured as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
RAIF SF 1 LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
|
|
|
|
|
|
|
|
|
|
|
|
Amounts owed by group undertakings
|
|
|
|
|
|
|
|
|
|
Prepayments and accrued income
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and cash equivalents
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Creditors: Amounts falling due within one year
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Accruals and deferred income
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Creditors: Amounts falling due after more than one year
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Amounts owed to group undertakings
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
RAIF SF 1 LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Charged/(credited) to profit or loss
|
|
|
|
|
|
|
|
|
The provision for deferred taxation is made up as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Unrealised gain/(loss) on revaluation of investment property
|
|
|
|
|
|
|
|
|
|
|
Allotted, called up and fully paid
|
|
|
|
|
|
|
|
|
|
|
|
4 (2023 - 4) Ordinary shares shares of £1.00 each
|
|
|
|
|
Related party transactions
|
|
|
Included within legal and professional expenses are directors fees of £ 1,510 (2023 - £2,830).
The company has taken advantage of exemption, under the terms of FRS 102, not to disclose related party transactions with entities within the group.
|
|
|
RAIF SF 1 LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
|
|
Post balance sheet events
|
Since the reporting date to the date of signing these financial statements, the following subsequent events have taken place.
During January 2025, the General Partner of the ultimate parent entity agreed that subscriptions and redemptions be suspended with effect from the last published NAV of 30 September 2023 and the ultimate parent entity be placed into voluntary liquidation. The voluntary liquidation is expected to take approximately 2 years and will result in the disposal of the assets in a manor to be determined in due course. It is not expected that this event will affect the trade of the company, at least not during the next 24 months.
New Pastures Housing Ltd, who the company held two leases with, went into liquidation on 7 February 2025 following this the properties were re-let on 8 February 2025.
The auditors' report on the financial statements for the year ended 31 December 2024 was unqualified.
The audit report was signed on 23 September 2025 by Mario Cientanni (Senior statutory auditor) on behalf of Barnes Roffe Audit Limited.
|