Company registration number: 04517621
COMPANY INFORMATION
CONTENTS
STRATEGIC REPORT
FOR THE YEAR ENDED 31 MARCH 2025
The directors present their Strategic Report for the year ended 31 March 2025.
The principal activity of the Company is that of the provision of advisory and investment management services to real estate entities.
Effective from 1 April 2024, the Company transferred certain client service agreements to its 100% subsidiary, Delancey Investment Advisory Services Limited (DIAS). The Company continues to provide advisory and investment management services in respect of the real estate portfolio of a UK pension scheme. Following the restructure, all of the expenses except premises costs such as rent, rates and service charge have also been transferred to DIAS. These occupational expenses are then recharged to group companies. All staff were also transferred to other group companies.
During the year the Company was presented with the prospect of a settlement agreement in respect of historical litigation between the Company and HM Revenue & Customs, which the directors with the advice from their legal counsel agreed terms. Under this agreement the terms of the settlement are confidential and therefore the amount of the settlement has not been disclosed as this would be prejudicial to the Company and the terms under this agreement.
The results for the year and the financial position of the Company at the year end were considered satisfactory by the directors who expect revenue generated to be consistent and sufficient to fund the Company's expenses going forwards.
Effective from 1 April 2024, the Company transferred certain client service agreements to its 100% subsidiary, Delancey Investment Advisory Services Limited (DIAS). The Company continues to provide advisory and investment management services in respect of the real estate portfolio of a UK pension scheme. Following the restructure, all of the expenses except premises costs such as rent, rates and service charge have also been transferred to DIAS. These occupational expenses are then recharged to group companies. All staff were also transferred to other group companies.
During the year the Company was presented with the prospect of a settlement agreement in respect of historical litigation between the Company and HM Revenue & Customs, which the directors with the advice from their legal counsel agreed terms. Under this agreement the terms of the settlement are confidential and therefore the amount of the settlement has not been disclosed as this would be prejudicial to the Company and the terms under this agreement.
The results for the year and the financial position of the Company at the year end were considered satisfactory by the directors who expect revenue generated to be consistent and sufficient to fund the Company's expenses going forwards.
The Company's operations are affected by fluctuations in the UK property market and the UK financial climate in general and the directors are actively monitoring the evolving market conditions. The directors believe that the quality and breadth of its clients' portfolios largely protects the Company from such movements. Substantially all of the Company's turnover is derived from contractual agreements. The directors believe that given their knowledge of the activities and financial position of the Company's customers, there is no significant risk of non-collection of turnover due under these contracts.
The Company deregistered as a Registered Investment Advisor with the US Securities and Exchanges Commission (SEC), under the Investment Advisors Act 1940 on 28 June 2023. The Company is now registered as an Exempt Reporting Advisor and is also a fully authorised and regulated firm by the Financial Conduct Authority (FCA).
In relation to financial instruments, the Company has established financial risk management procedures whose primary objectives are to protect the Company from events that hinder the achievement of the Company's performance. The objectives aim to limit undue counterparty exposure, ensure sufficient working capital exists and monitor the management of risk.
The Company deregistered as a Registered Investment Advisor with the US Securities and Exchanges Commission (SEC), under the Investment Advisors Act 1940 on 28 June 2023. The Company is now registered as an Exempt Reporting Advisor and is also a fully authorised and regulated firm by the Financial Conduct Authority (FCA).
In relation to financial instruments, the Company has established financial risk management procedures whose primary objectives are to protect the Company from events that hinder the achievement of the Company's performance. The objectives aim to limit undue counterparty exposure, ensure sufficient working capital exists and monitor the management of risk.
The Company's key financial performance indicators are:
Turnover
Turnover has decreased by £27,760k (86.8%) to £4,209k from £31,969k during the year, principally due to the Company transferring the majority of its client service agreements to its subsidiary Delancey Investment Advisory Services Limited. The Company will continue to provide advisory and investment management services in respect of the real estate portfolio of a UK pension scheme. The directors expect revenue generated to be consistent and sufficient to fund the Company's expenses going forwards.
Net assets
Net assets have decreased by £1,525k (21.3%) to £5,625k from £7,150k during the year, principally as a result of the settlement made between the Company and HM Revenue & Customs and the introduction of additional shares issued.
Turnover
Turnover has decreased by £27,760k (86.8%) to £4,209k from £31,969k during the year, principally due to the Company transferring the majority of its client service agreements to its subsidiary Delancey Investment Advisory Services Limited. The Company will continue to provide advisory and investment management services in respect of the real estate portfolio of a UK pension scheme. The directors expect revenue generated to be consistent and sufficient to fund the Company's expenses going forwards.
Net assets
Net assets have decreased by £1,525k (21.3%) to £5,625k from £7,150k during the year, principally as a result of the settlement made between the Company and HM Revenue & Customs and the introduction of additional shares issued.
Page 1
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2025
The Company is exposed to credit risk primarily including deposits held with banks and from trade receivables. The carrying value of cash and trade receivables disclosed in the financial statements represents the maximum exposure at the year end.
The Company has access to cash from its parent, which is used to ensure it has sufficient cash to manage its working capital requirements.
The Company has access to cash from its parent, which is used to ensure it has sufficient cash to manage its working capital requirements.
Section 172 of the Companies Act requires directors to take into consideration the interests of stakeholders and other matters in their decision making. The Board considers that the decisions they have made during the financial year and the way they have acted have been in the best interests of stakeholders and related parties, having regard for matters set out in s172(1) (a-f) of the Act.
The Board acts in good faith and in a manner that they consider promotes the long-term success of the business for the benefit of its stakeholders. The directors are constantly exploring opportunities to generate additional business. The company’s key stakeholders are its clients and suppliers. The company engages with its clients and suppliers through several means including:
The Board acts in good faith and in a manner that they consider promotes the long-term success of the business for the benefit of its stakeholders. The directors are constantly exploring opportunities to generate additional business. The company’s key stakeholders are its clients and suppliers. The company engages with its clients and suppliers through several means including:
∙Clients: providing support and advice to clients to build sustainable long-term business relationships to help them achieve their goals and objectives.
∙Suppliers: Effective communications and updates on contracts to develop sustainable long-term business relationships.
The Company supports the community projects and the environment by way of donations and actively encouraging participation in volunteering opportunities. The company is committed to fulfilling it’s Environmental, Social and Governance (ESG) responsibilities across all its client mandates which should have a positive impact in society and the environment. As an FCA regulated entity, the directors are aware of their responsibilities to ensure that the Company has sufficient funding and liquidity such that the decision to maintain enough reserves and working capital are always a top priority which ultimately promotes the long-term success of the Company.
This report was approved by the board and signed on its behalf.
Page 2
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 MARCH 2025
The directors present their report and the financial statements for the year ended 31 March 2025.
The directors are responsible for preparing the Strategic report, the Directors' report and the financial statements in accordance with applicable law and regulations.
In preparing these financial statements, the directors are required to:
∙select suitable accounting policies for the Company's financial statements and then apply them consistently;
∙make judgements and accounting estimates that are reasonable and prudent;
∙state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements;
∙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 to 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.
The loss for the year, after taxation, amounted to £24,525,000 (2024 - profit £429,000).
The directors who served during the year were:
The directors continue to pursue a broad range of opportunities. They are constantly exploring new opportunities with third parties to provide advisory services which would generate additional revenue.
The Board receives regular updates regarding key supplier relationships, relevant developments and engagement activities. During 2025, agreements with customers have been reviewed by the Board in the context of the relevant transactions.
The directors have always paid special attention to issues related to customers and Company's brand, and the focus on customer issues has always been present in Board discussions. During 2025, the Board has been regularly provided with customer metrics as part of its performance and monitoring activities.
The directors have always paid special attention to issues related to customers and Company's brand, and the focus on customer issues has always been present in Board discussions. During 2025, the Board has been regularly provided with customer metrics as part of its performance and monitoring activities.
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DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2025
At the time of approving the financial statements, the directors have a reasonable expectation that the Company has adequate resources to continue in operational existence for the foreseeable future.
This is based on an assessment of the Company's forecast cash flows which covers the period to 30 September 2026. The directors have considered various stress test scenarios including a downside scenario, which assumes no revenue growth beyond what is currently contractually due and an inflation rate of 10% throughout the period to 30 September 2026.
The directors have also considered that there is sufficient financial support from its ultimate parent undertaking, Cortx Holdings Limited, together with its subsidiaries to settle these liabilities.
Following the group restructure effective 1 April 2024, all existing mandates except one were transferred to the Company's subsidiary Delancey Investment Advisory Services Limited. All of the expenses except premises costs such as rent, rates and service charge were also transferred. These occupational expenses are then recharged to group companies. Revenue generated from the remaining contract is consistent and sufficient to fund the Company's expenses.
The directors therefore have a reasonable expectation that the Company has adequate resources to continue in operational existence for the foreseeable future. Accordingly, they continue to adopt the going concern basis in preparing the annual report and financial statements.
This is based on an assessment of the Company's forecast cash flows which covers the period to 30 September 2026. The directors have considered various stress test scenarios including a downside scenario, which assumes no revenue growth beyond what is currently contractually due and an inflation rate of 10% throughout the period to 30 September 2026.
The directors have also considered that there is sufficient financial support from its ultimate parent undertaking, Cortx Holdings Limited, together with its subsidiaries to settle these liabilities.
Following the group restructure effective 1 April 2024, all existing mandates except one were transferred to the Company's subsidiary Delancey Investment Advisory Services Limited. All of the expenses except premises costs such as rent, rates and service charge were also transferred. These occupational expenses are then recharged to group companies. Revenue generated from the remaining contract is consistent and sufficient to fund the Company's expenses.
The directors therefore have a reasonable expectation that the Company has adequate resources to continue in operational existence for the foreseeable future. Accordingly, they continue to adopt the going concern basis in preparing the annual report and financial statements.
The Company's practice has always been to indemnify its directors in accordance with the Company's Articles and to the maximum extent permitted by law. Qualifying third party indemnities, under which the Company has agreed to indemnify the directors, were in force during the financial year and at the date of approval of the financial statements, in accordance with the Company’s Articles and to the maximum extent permitted by law, in respect of all costs, charges, expenses, losses and liabilities which they may incur in or about the execution of their duties for the Company, or any entity which is an associated company (as defined in Section 256 of the Companies Act 2006), or as a result of duties performed by the directors on behalf of the Company or any such associated company.
The Company has chosen, in accordance with Companies Act 2006, s. 414C(11), to set out in the Company's strategic report information required by Large and Medium-sized Companies and Groups (Accounts and Reports) Regulations 2008, Sch. 7 to be contained in the directors' report. It has been done so in directors' statement of compliance with duty to promote the success of the Company.
The auditor, Menzies LLP, will be proposed for reappointment in accordance with section 485 of the Companies Act 2006.
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DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2025
This report was approved by the board and signed on its behalf.
Page 5
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF DELANCEY REAL ESTATE ASSET MANAGEMENT LIMITED
We have audited the financial statements of Delancey Real Estate Asset Management Limited (the 'Company') for the year ended 31 March 2025, which comprise the Statement of comprehensive income, the Statement of financial position, the Statement of changes in equity and the related notes, 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).
The financial statements do not disclose the nature and amount of a settlement agreement entered into between the Company and HM Revenue & Customs during the year which is a required disclosure under FRS 102. The terms of the settlement are confidential and therefore the amount of the settlement has not been disclosed as this would be prejudicial to the Company and the terms under the agreement.
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's 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 United Kingdom, including the Financial Reporting Council'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 qualified opinion.
In auditing the financial statements, we have concluded that the directors' 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 financial statements are 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.
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INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF DELANCEY REAL ESTATE ASSET MANAGEMENT LIMITED (CONTINUED)
The other information comprises the information included in the Annual Report other than the financial statements and our Auditor's report thereon. The directors are responsible for the other information contained within the Annual Report. 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. 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 course of 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 this gives rise to a material misstatement in the financial statements themselves. 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.
As described in the Basis for qualified opinion section of our report, our audit opinion is qualified for non-disclosure of a material litigation settlement. The Strategic report and Directors' report also omits information in resect of the nature and value of the litigation settlement and accordingly we have concluded that the other information is materially misstated for the same reason.
Except for the matter described in the Basis for qualified opinion section of our report, in our opinion, based on the work undertaken in the course of the audit:
∙the information given in the Strategic report and the Directors' report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
∙the Strategic report and the Directors' report have been prepared in accordance with applicable legal requirements.
Except for the matter described in the Basis for qualified opinion section of our report, in the light of the 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 or the Directors' report.
Page 7
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF DELANCEY REAL ESTATE ASSET MANAGEMENT LIMITED (CONTINUED)
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.
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:
The Company is subject to laws and regulations that directly affect the financial statements including financial reporting legislation. We determined that the following laws and regulations were most significant:
∙The Companies Act 2006;
∙Financial Reporting Standards 102;
∙General Data Protection Regulations;
∙Financial Conduct Authority Handbook; and
∙UK tax legislation.
We assessed the extent of compliance with these laws and regulations as part of our procedures on the related financial items.
We understood how the Company is complying with those legal and regulatory frameworks by, making inquiries to management, those responsible for legal and compliance procedures.
The engagement partner assessed whether the engagement team collectively had the appropriate competence and capabilities to identify or recognise non-compliance with laws and regulations. The assessment did not identify any issues in this area.
We assessed the susceptibility of the Company financial statements to material misstatement, including how fraud might occur. Audit procedures performed by the engagement team included:
We understood how the Company is complying with those legal and regulatory frameworks by, making inquiries to management, those responsible for legal and compliance procedures.
The engagement partner assessed whether the engagement team collectively had the appropriate competence and capabilities to identify or recognise non-compliance with laws and regulations. The assessment did not identify any issues in this area.
We assessed the susceptibility of the Company financial statements to material misstatement, including how fraud might occur. Audit procedures performed by the engagement team included:
∙Identifying and assessing the design effectiveness of controls management has in place to prevent and detect fraud;
∙Understanding how those charged with governance considered and addressed the potential for override of controls or other inappropriate influence over the financial reporting process;
∙Challenging assumptions and judgements made by management in its significant accounting estimates and;
∙Identifying and testing journal entries, in particular any journal entries posted with unusual account combinations.
As a result of the above procedures, we considered the opportunities and incentives that may exist within the organisation for fraud and identified the greatest potential for fraud would be the use of management override of controls to manipulate results, or to cause the company to enter into transactions not in its best interests.
Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.
A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our Auditor's report.
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INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF DELANCEY REAL ESTATE ASSET MANAGEMENT LIMITED (CONTINUED)
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.
for and on behalf of
Chartered Accountants
Statutory Auditor
4th Floor
95 Gresham Street
EC2V 7AB
Page 9
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 MARCH 2025
Page 10
STATEMENT OF FINANCIAL POSITION
AS AT 31 MARCH 2025
The financial statements were approved and authorised for issue by the board and were signed on its behalf by:
The notes on pages 13 to 28 form part of these financial statements.
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STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 MARCH 2025
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2025
Delancey Real Estate Asset Management Limited is a private company limited by shares incorporated and domiciled in England & Wales. The registered office is 2 Fitzroy Place, 8 Mortimer Street, London, United Kingdom, W1T 3JJ.
2.Accounting policies
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 preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires management to exercise judgement in applying the Company's accounting policies (see note 3).
The following principal accounting policies have been applied:
The Company has taken advantage of the following disclosure exemptions in preparing these financial statements, as permitted by the FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland":
∙the requirements of Section 7 Statement of Cash Flows;
∙the requirements of Section 3 Financial Statement Presentation paragraph 3.17(d);
∙the requirements of Section 33 Related Party Disclosures paragraph 33.7.
This information is included in the consolidated financial statements of Cortx Holdings Limited as at 31 March 2025 and these financial statements may be obtained from Companies House.
The financial statements present information about the Company as an individual undertaking and not about its Group. The Company has not prepared Group financial statements as it is exempt from the requirement to do so by Section 400 of the Companies Act 2006 as it is a subsidiary undertaking of Cortx Holdings Limited, a Company registered in England & Wales and is included in the publicly available consolidated financial statements of that Company which can be obtained from Companies House.
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2025
2.Accounting policies (continued)
At the time of approving the financial statements, the directors have a reasonable expectation that the Company has adequate resources to continue in operational existence for the foreseeable future.
This is based on an assessment of the Company's forecast cash flows which covers the period to 30 September 2026. The directors have considered various stress test scenarios including a downside scenario, which assumes no revenue growth beyond what is currently contractually due and an inflation rate of 10% throughout the period to 30 September 2026.
The directors have also considered that there is sufficient financial support from its ultimate parent undertaking, Cortx Holdings Limited, together with its subsidiaries to settle these liabilities.
Following the group restructure effective 1 April 2024, all existing mandates except one were transferred to the Company's subsidiary Delancey Investment Advisory Services Limited. All of the expenses except premises costs such as rent, rates and service charge were also transferred. These occupational expenses are then recharged to group companies. Revenue generated from the remaining contract is consistent and sufficient to fund the Company's expenses.
The directors therefore have a reasonable expectation that the Company has adequate resources to continue in operational existence for the foreseeable future. Accordingly, they continue to adopt the going concern basis in preparing the annual report and financial statements.
This is based on an assessment of the Company's forecast cash flows which covers the period to 30 September 2026. The directors have considered various stress test scenarios including a downside scenario, which assumes no revenue growth beyond what is currently contractually due and an inflation rate of 10% throughout the period to 30 September 2026.
The directors have also considered that there is sufficient financial support from its ultimate parent undertaking, Cortx Holdings Limited, together with its subsidiaries to settle these liabilities.
Following the group restructure effective 1 April 2024, all existing mandates except one were transferred to the Company's subsidiary Delancey Investment Advisory Services Limited. All of the expenses except premises costs such as rent, rates and service charge were also transferred. These occupational expenses are then recharged to group companies. Revenue generated from the remaining contract is consistent and sufficient to fund the Company's expenses.
The directors therefore have a reasonable expectation that the Company has adequate resources to continue in operational existence for the foreseeable future. Accordingly, they continue to adopt the going concern basis in preparing the annual report and financial statements.
Turnover represents fees receivable for services provided under advisory agreements which were in existence during the accounting period. Turnover is recognised to the extent that advisory services have been provided.
At each reporting date the Company assesses whether there is any indication of impairment. If such indication exists, the recoverable amount of the asset is determined which is the higher of its fair value less costs to sell and its value in use. An impairment loss is recognised where the carrying amount exceeds the recoverable amount.
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2025
2.Accounting policies (continued)
Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, using the straight-line method.
Depreciation is provided on the following basis:
The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.
Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in profit or loss.
The Company operates a defined contribution pension scheme. The pension costs charged to the Statement of Comprehensive Income represent the contributions payable by the Company during the year.
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2025
2.Accounting policies (continued)
Monetary assets and liabilities denominated in foreign currencies are translated into sterling at the rates of exchange ruling at the balance sheet date. Transactions in foreign currencies are recorded at the rate ruling at the date of the transaction. All differences are taken to the Statement of Comprehensive Income.
Investments in joint ventures are accounted for at cost. Where indicators of impairment have been identified, the Company recognises an impairment loss immediately in the Statement of Comprehensive Income.
Investments in subsidiaries are accounted for at cost. Where indicators of impairment have been identified, the Company recognises an impairment loss immediately in the Statement of Comprehensive Income.
Loan notes which are basic financial instruments are initially recorded at the present value of future payments discounted at a market rate of interest for a similar loan. Subsequently, they are measured at amortised cost using the effective interest rate method.
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2025
2.Accounting policies (continued)
Provisions are measured as the best estimate of the amount required to settle the obligation, taking into account the related risks and uncertainties.
The company makes estimates and assumptions concerning the future. The resulting accounting estimates will, by definition, seldom equal the related actual results. The estimates and assumptions that have significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are addressed below.
(i) Useful economic lives of tangible fixed assets
The annual depreciation charge for tangible fixed assets is sensitive to changes in the estimated useful economic lives and residual values of the assets. The useful economic lives and residual values are re-assessed annually. They are amended when necessary to reflect current estimates, based on technological advancement, future investments, economic utilisation and the physical condition of the assets. See note 14 of the financial statements for the carrying amount of the tangible fixed assets and note 2.6 to the financial statements for the useful economic lives for each class of asset.
(ii) Assessment of impairment indicators
Impairment assessments of financial assets and non-financial assets are carried out at least annually. Various indicators are considered including the economic utilisation and the physical condition of the assets however the resulting assessments are judgemental.
(iii) Dilapidations provision
The financial statements include a provision to cover the anticipated costs of restoring leased properties to their original condition at the end of the lease term, as stipulated in the lease agreements. The key sources of estimation uncertainty affecting the dilapidations provision include the estimates price per square footage for any restoration works and the discount rate used to calculate the present value of the future obligation. The directors regularly review the dilapidations provision, taking into account any new information or changes in circumstances. The estimation of the dilapidations provision is inherently uncertain and changes in these assumptions could result in material adjustments to the financial statements in future periods.
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2025
Page 18
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2025
Page 19
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2025
Page 20
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2025
Page 21
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2025
13.Taxation (continued)
There were no factors that may affect future tax charges.
Page 22
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2025
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2025
At 31 March 2025 the Company had interests in the following active subsidiaries:
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The registered office for the above entities are the same as that with Delancey Real Estate Asset Management Limited being 2 Fitzroy Place, 8 Mortimer Street, London, United Kingdom, W1T 3JJ.
At 31 March 2025 the Company had interests in the following wholly owned dormant subsidiaries:
At 31 March 2025 the Company had interests in the following wholly owned dormant subsidiaries:
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NW1 Partners UK LLP is a subsidiary of Newincco 1404 Limited.
NW1 Capital Management Limited and NW1 Partners (GP) Ltd are subsidiaries of NW1 Partners UK LLP.
Delancey Asset Management Limited, Delancey Real Estate Asset Management Group Limited, and Mount Kendal Limited are subsidiaries of Delancey Investment Advisory Services Limited.
Mount Kendal Group Limited is a subsidiary of Mount Kendal Limited.
All other subsidiaries are direct subsidiaries of the Company.
The Company's holdings are determined with reference to its percentage share of Ordinary shares held, except for its holding in NW1 Partners UK LLP which is determined with reference to voting rights.
NW1 Capital Management Limited and NW1 Partners (GP) Ltd are subsidiaries of NW1 Partners UK LLP.
Delancey Asset Management Limited, Delancey Real Estate Asset Management Group Limited, and Mount Kendal Limited are subsidiaries of Delancey Investment Advisory Services Limited.
Mount Kendal Group Limited is a subsidiary of Mount Kendal Limited.
All other subsidiaries are direct subsidiaries of the Company.
The Company's holdings are determined with reference to its percentage share of Ordinary shares held, except for its holding in NW1 Partners UK LLP which is determined with reference to voting rights.
Page 24
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2025
At 31 March 2025 the Company had the following significant shareholdings:
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NW1 Partners US, LLC is a significant shareholding of Newincco 1404 Limited.
The Company's holdings are determined with reference to its percentage share of Ordinary shares held.
The registered office of NW1 Partners US, LLC is Corporation Trust Center, 1209 Orange Street, Wilmington, New Castle, Delaware 19801.
Additional disclosures are given in respect of significant shareholdings, which exceed certain 25% thresholds under FRS 102 Section 15 - "Interests in Joint Ventures", for the year ended 31 March 2025 as follows:
The Company's holdings are determined with reference to its percentage share of Ordinary shares held.
The registered office of NW1 Partners US, LLC is Corporation Trust Center, 1209 Orange Street, Wilmington, New Castle, Delaware 19801.
Additional disclosures are given in respect of significant shareholdings, which exceed certain 25% thresholds under FRS 102 Section 15 - "Interests in Joint Ventures", for the year ended 31 March 2025 as follows:
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2025
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Page 26
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2025
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On 30 July 2024, 1 share was issued with a nominal value of £1 for a total consideration of £23m.
Share premium account
Profit and loss account
Page 27
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2025
The consolidated financial statements of Cortx Holdings Limited are publicly available from Companies House.
The smallest group in which the results of the company are consolidated is that headed by Cortx Holdings Limited. The registered office is 2 Fitzroy Place, 8 Mortimer Street, London, United Kingdom, W1T 3JJ. The consolidated financial statements of Cortx Holdings Limited are publicly available from Companies House.
The ultimate controlling party is J W J Ritblat.
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