REGISTERED NUMBER: 02478945 (England and Wales)

89 HOLLAND PARK (MANAGEMENT) LIMITED

UNAUDITED FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2024

Page

Company Information

1

Balance Sheet

2

Chartered Accountants' Report

5

Directors:

A L Dell

M P Letemendia

A Zarbafi

D Zvonarev

Secretary:

Fry & Co

Registered office:

140 Tachbrook Street

London

SW1V 2NE

Registered number:

02478945 (England and Wales)

Accountants:

JPS Accountancy Limited

Chartered Accountants

Thorncroft Manor

Thorncroft Drive

Leatherhead

Surrey

KT22 8JB

FIXED ASSETS

8,380

8,380

CURRENT ASSETS

80,000

180,842

CREDITORS

Amounts falling due within one year

(826,862

)

(673,348

)

NET CURRENT LIABILITIES

(746,862

)

(492,506

)

TOTAL ASSETS LESS CURRENT LIABILITIES

(738,482

)

(484,126

)

CREDITORS

Amounts falling due after more than one year

-

(14,167

)

NET LIABILITIES

(738,482

)

(498,293

)

CAPITAL AND RESERVES

(738,482

)

(498,293

)

NOTES TO THE FINANCIAL STATEMENTS

1.	BASIS OF PREPARING THE FINANCIAL STATEMENTS AND GOING CONCERN

The company owns the freehold and manages the service charges of the property at 89 Holland Park, London W11 3RZ. The service charge funds and transactions are not recorded in the company's accounts as these funds are held on trust on behalf of leaseholders. The company prepares separate service charge accounts for the leaseholders.

The transactions and balances in these accounts include those in connection with litigation which has resulted in significant legal and professional costs being incurred by the company over a number of years.

The company was initially involved in litigation in relation to disputes with a neighbouring landowner which commenced in 2012 and has since successfully concluded.

At the time of incurring costs in connection with this, it was assumed that these costs would be recoverable from leaseholders as service charges under the terms of the leases. However, following litigation between the company and a leaseholder, in 2022, the Upper Tribunal concluded that the costs incurred were not recoverable as service charges under the terms of the lease. This decision has subsequently been upheld by the Court of Appeal and the Supreme Court has refused permission to appeal this decision further.

This leaves the company in a position whereby some of the litigation costs incurred have been recovered from leaseholders and some have not been recovered and can no longer be recovered as service charge costs under the terms of the lease. To the extent that litigation costs have not been recovered from leaseholders, the company is now seeking recovery from those leaseholders under an alternative basis.

After the end of the reporting period, the company has reached an agreed settlement with one of the leaseholders as regards reimbursement of litigation costs and provision is made in these accounts to the extent that the amount agreed to be recovered is less than the carrying amount.

The remaining amount of litigation costs for which the company is seeking reimbursement from leaseholders is in the region of £400,000 - £500,000 plus interest and further costs. The company's success in recovering these costs from leaseholders will be subject to the future decision of the courts or, alternatively, by the negotiation of settlement with the respective leaseholders. As the outcome of this is currently unknown and is contingent upon future events, no debtor is included on the company's balance sheet in relation to these amounts.

The directors are of the view that where leaseholders have already paid for their share of the litigation costs, the company is able to retain those contributions without any obligation to return these to leaseholders.

The company's creditors include £539,095 which relate to the extent by which service charge demands to leaseholders in previous years specifically for litigation costs exceed the net litigation costs (after deducting credits received in relation to the award of costs against the neighbouring landowner). Had the litigation costs been recoverable as service charge, this would have represented a service charge surplus to be credited to leaseholders. Thus, as there is an expectation by leaseholders that credit is due to them for this amount, this amount is currently recorded as a creditor by the company.

If and to the extent that the company is successful in recovering the litigation costs from leaseholders under a different basis (i.e. other than service charge) then the company expects to use the proceeds to repay the above creditors (or some of them to the extent that funds permit). If and to the extent that the litigation is unsuccessful, whilst there is currently no written agreement in place to this effect, the company anticipates that the leaseholders, who are also shareholders, will enter into an agreement to forgive the amounts owed to them.

Certain of the shareholders have entered into a contractual commitment to make shareholder loans to the company to enable the company to fund the ongoing litigation and to forgive these loans to the extent that they cannot be repaid at conclusion of the litigation. Shareholders collectively have indicated a willingness to provide funds to meet all other liabilities on the balance sheet of the company as they fall due.

Whilst the company's balance sheet shows net liabilities, for the reasons given above, the directors consider that the going concern basis of accounting is appropriate.

2.	AVERAGE NUMBER OF EMPLOYEES

The average number of employees during the year was NIL (2023 - NIL).

The company is entitled to exemption from audit under Section 477 of the Companies Act 2006 for the year ended 31 December 2024.

The members have not required the company to obtain an audit of its financial statements for the year ended 31 December 2024 in accordance with Section 476 of the Companies Act 2006.

The directors acknowledge their responsibilities for:

(a)	ensuring that the company keeps accounting records which comply with Sections 386 and 387 of the Companies Act 2006 and

(b)

preparing financial statements which give a true and fair view of the state of affairs of the company as at the end of each financial year and of its profit or loss for each financial year in accordance with the requirements of Sections 394 and 395 and which otherwise comply with the requirements of the Companies Act 2006 relating to financial statements, so far as applicable to the company.

The financial statements have been prepared in accordance with the micro-entity provisions and delivered in accordance with the provisions applicable to companies subject to the small companies regime.

The financial statements were approved by the Board of Directors and authorised for issue on 30 September 2025 and were signed on its behalf by:

M P Letemendia - Director

The following reproduces the text of the report prepared for the directors in respect of the company's annual unaudited financial statements. In accordance with the Companies Act 2006, the company is only required to file a Balance Sheet. Readers are cautioned that the Profit and Loss Account is not required to be filed with the Registrar of Companies.

In order to assist you to fulfil your duties under the Companies Act 2006, we have prepared for your approval the financial statements of 89 Holland Park (Management) Limited for the year ended 31 December 2024 which comprise the Profit and Loss Account, Balance Sheet and the related notes from the company's accounting records and from information and explanations you have given us.

As a practising member firm of the Institute of Chartered Accountants in England and Wales (ICAEW), we are subject to its ethical and other professional requirements which are detailed within the ICAEW's regulations and guidance at http://www.icaew.com/en/membership/regulations-standards-and-guidance.

This report is made solely to the Board of Directors of 89 Holland Park (Management) Limited, as a body, in accordance with our terms of engagement. Our work has been undertaken solely to prepare for your approval the financial statements of 89 Holland Park (Management) Limited and state those matters that we have agreed to state to the Board of Directors of 89 Holland Park (Management) Limited, as a body, in this report in accordance with ICAEW Technical Release 07/16AAF. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than 89 Holland Park (Management) Limited and its Board of Directors, as a body, for our work or for this report.

It is your duty to ensure that 89 Holland Park (Management) Limited has kept adequate accounting records and to prepare statutory financial statements that give a true and fair view of the assets, liabilities, financial position and loss of 89 Holland Park (Management) Limited. You consider that 89 Holland Park (Management) Limited is exempt from the statutory audit requirement for the year.

We have not been instructed to carry out an audit or a review of the financial statements of 89 Holland Park (Management) Limited. For this reason, we have not verified the accuracy or completeness of the accounting records or information and explanations you have given to us and we do not, therefore, express any opinion on the statutory financial statements.

This report should not be regarded as suitable to be used or relied on by any other party wishing to acquire any rights against JPS Accountancy Limited for any purpose or in any context. Any party, other than the directors, who obtains access to this report or a copy and chooses to rely on this report (or any part of it) will do so at its own risk.

JPS Accountancy Limited

Chartered Accountants

Thorncroft Manor

Thorncroft Drive

Leatherhead

Surrey

KT22 8JB

30 September 2025