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Registered number: 14365892
JUSTICE MILL STUDIOS LIMITED
FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2025
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JUSTICE MILL STUDIOS LIMITED
COMPANY INFORMATION
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1st Floor Sackville House
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Chartered Accountants and Statutory Auditors
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1st Floor, Sackville House
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JUSTICE MILL STUDIOS LIMITED
CONTENTS
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Notes to the Financial Statements
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JUSTICE MILL STUDIOS LIMITED
REGISTERED NUMBER: 14365892
BALANCE SHEET
AS AT 31 MARCH 2025
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Creditors: amounts falling due within one year
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Creditors: amounts falling due after more than one year
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Non-distributable profit reserve
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The 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 Directors' Report and Statement of Comprehensive Income in accordance with provisions applicable to companies subject to the small companies regime, under section 444 of the Companies Act 2006.
The financial statements were approved and authorised for issue by the board and were signed on its behalf on
19 September 2025.
The notes on pages 2 to 9 form part of these financial statements.
Page 1
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JUSTICE MILL STUDIOS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2025
Justice Mill Studios Limited (the "Company") registered at 1st Floor, Sackville House, 143-149 Fenchurch Street, London, EC3M 6BL is a private company limited by shares and incorporated and domiciled in the UK (England & Wales).
2.Accounting policies
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Basis of preparation of financial statements
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The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Section 1A of Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and the Companies Act 2006.
Judgements or estimates made by the directors in the application of these accounting policies that have a significant effect on the financial statements are discussed in note 3.
The accounting policies set out below have, unless otherwise stated, been applied consistently to all periods presented in these financial statements.
The following principal accounting policies have been applied:
The Company has taken advantage of the exemption in Financial Reporting Standard 102 Section 1A.7 from the requirement to provide a Statement of Cash Flows on the grounds that it is a small company.
Notwithstanding net current liabilities of £9,870,771 (2024: £9,620,179 as restated) and net liabilities of £3,319,951 (2024: £568,918 as restated), the directors have prepared the financial statements on the going concern basis, which they consider to be appropriate for the following reasons.
The Directors have prepared cash flow forecasts for a period of 12 months from the date of approval of these financial statements which indicate that, the Company will have sufficient funds to meet its liabilities as they fall due for that period.
The Company is dependent on the ongoing support from Balfe Limited, the Company's immediate parent, in relation to the amounts due to it. Balfe Limited has indicated that for at least 12 months from the date of approval of these financial statements and for the foreseeable future, it will continue to make available such funds and security as are needed by the Company and in particular will not seek repayment of the amounts currently made available if the Company does not have adequate cash or facilities to make the repayment. As with any company placing reliance on other group entities for financial support, the directors acknowledge that there can be no certainty that this support will continue although, at the date of approval of these financial statements, they have no reason to believe that it will not do so.
Consequently, the Directors are confident that the Company will have sufficient funds to continue to meet its liabilities as they fall due for at least 12 months from the date of approval of the financial statements and therefore have prepared the financial statements on a going concern basis.
Page 2
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JUSTICE MILL STUDIOS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2025
2.Accounting policies (continued)
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Basic financial instruments
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Trade and other debtors / creditors
Trade and other debtors are recognised initially at transaction price less attributable transaction costs. Trade and other creditors are recognised initially at transaction price plus attributable transaction costs. Subsequent to initial recognition they are measured at amortised cost using the effective interest method, less any impairment losses in the case of trade debtors. If the arrangement constitutes a financing transaction, for example if payment is deferred beyond normal business terms, then it is measured at the present value of future payments discounted at a market rate of instrument for a similar debt instrument.
Interest-bearing borrowings classified as basic financial instruments
Interest-bearing borrowings are recognised initially at the present value of future payments discounted at a market rate of interest. Subsequent to initial recognition, interest-bearing borrowings are stated at amortised cost using the effective interest method, less any impairment losses.
Investment properties are properties which are held either to earn rental income or for capital appreciation or for both. Investment properties are recognised initially at cost.
Subsequent to initial recognition
I. Investment properties whose fair value can be measured reliably without undue cost or effort are held at fair value. Any gains or losses arising from changes in the fair value are recognised in the Statement of Comprehensive Income in the period that they arise; and
II. No depreciation is provided in respect of investment properties applying the fair value model.
Independent professional valuations for investment properties are obtained by the directors annually, unless the Directors consider it appropriate to value the investment properties internally.
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Turnover and profit on sale of investment properties
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Turnover, which is stated net of VAT, consists of rental income earned from properties held for investment purposes and is recognised in the Profit and Loss Account on a straight-line basis over the expected term of the lease.
Proceeds from the sale of investment properties are not included in turnover, and the related profit or loss is calculated with reference to the carrying amount in the balance sheet. Purchases and sales of investment properties are accounted for when exchanged contracts become unconditional.
Page 3
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JUSTICE MILL STUDIOS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2025
2.Accounting policies (continued)
Tax on the profit or loss for the year comprises current and deferred tax. Tax is recognised in the Statement of Comprehensive Income except to the extent that it relates to items recognised directly in equity or other comprehensive income, in which case it is recognised directly in equity or other comprehensive income.
Current tax is the expected tax payable or receivable on the taxable income or loss for the year, using tax rates enacted or substantively enacted at the Balance Sheet date, and any adjustment to tax payable in respect of previous years.
Deferred tax is provided on timing differences which arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in the financial statements. The following timing difference is not provided for: differences between accumulated depreciation and tax allowances for the cost of a fixed asset if and when all conditions for retaining the tax allowances have been met. Deferred tax is not recognised on permanent differences arising because certain types of income or expense are non-taxable or are disallowable for tax or because certain tax charges or allowances are greater or smaller than the corresponding income or expense.
Deferred tax is measured at the tax rate that is expected to apply to the reversal of the related difference, using tax rates enacted or substantively enacted at the Balance Sheet date. For investment property that is measured at fair value, deferred tax is provided at the rates and allowances applicable to the sale of the property. Deferred tax balances are not discounted.
Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits.
Interest payable is recognised in the Statement of Comprehensive Income as it accrues, using the effective interest method.
Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours.
Page 4
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JUSTICE MILL STUDIOS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2025
2.Accounting policies (continued)
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Judgement in applying accounting policies and key sources of estimation uncertainty
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In the application of the Company’s accounting policies, which are described in note 2, the directors are required to make judgements, estimates and assumptions about the carrying amounts of assets and liabilities that are not readily apparent from other sources. These estimates and assumptions are based on experience and other factors that are considered to be relevant. Actual results may differ from these estimates.
Critical accounting judgements in applying the company’s accounting policies:
In the course of preparing the financial statements, no judgements have been made in the process of applying the Company’s accounting policies, other than those involving estimations (which are dealt with separately below), that have had a significant effect on the amounts recognised in the financial statements.
Source of estimation uncertainty and judgements involving estimations:
The Company does not have any key assumptions concerning the future, or other key sources of estimation uncertainty in the reporting period that may have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities within the next financial year.
Fair value of investment properties:
Notwithstanding this, the Company’s investment property is a significant asset in the context of the Balance Sheet and is required to be recognised at its fair value at the Balance Sheet date. The directors determine fair value of the investment properties annually by assessing the property condition and is based on a valuation by external independent valuer, Avison Young.
Page 5
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JUSTICE MILL STUDIOS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2025
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The historical cost of the investment property held at 31 March 2025 was £11,284,972 (2024: £11,013,850).
The fair value of the investment property at 31 March 2025 is based on a valuation by an external, independent valuer, Avison Young. The report has been prepared in accordance with RICS Valuation – Global Standards 2025 – VPGA1 - Valuations for inclusion in the financial statements which adopts the definition of Fair Value adopted by the International Accounting Standards Board (IASB) in IFRS 13.
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Creditors: Amounts falling due within one year
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Amounts owed to group undertakings
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Page 6
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JUSTICE MILL STUDIOS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2025
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Creditors: Amounts falling due after more than one year
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The bank loan is secured by way of a fixed charge over the investment property to which it relates and a floating charge over the unsecured assets of the Company.
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Share capital and reserves
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Allotted, called up and fully paid
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1 (2024 - 1) Ordinary share of £1.00
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Non-distributable profit reserve
Unrealised changes in fair value of investment properties are included in a non-distributable profit reserve.
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Page 7
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JUSTICE MILL STUDIOS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2025
During the year ended 31 March 2025, the directors have identified an error in the previous year's financial statements.
The directors consider that a prior year adjustment is necessary in order to accurately reflect the true financial position of the Company as at 31 March 2024.
HSBC bank loan allocation
During the year, the directors reviewed the allocation of both the capital and interest cost elements of the HSBC bank loan, which had historically been recognised entirely within Balfe Limited. This treatment reflected the fact that Balfe Limited had previously held the entirety of the property portfolio secured against the loan, including the property now known as Justice Mill Studios (“JMS”).
However, following the purchase of the JMS property by the Company during the prior year, it was determined that continuing to recognise the full loan within Balfe Limited was no longer appropriate.
As a result, a portion of the loan capital and interest has been reallocated to the Company, with corresponding reductions in Balfe Limited. The reallocation is based on the relative market values of the properties held by each company at the date the loan was refinanced.
This adjustment has been treated as a prior year restatement under FRS 102 Section 10.21 to reflect a correction of an error in the original allocation of loan.
The impact of the restatement on the prior year financial statements of the Company is as follows:
Interest payable has increased by £70,935.
Secured bank loans due within one year have increased by £199,552, and secured bank loans due after
more than one year have increased by £1,398,739. Correspondingly, amounts owed to group undertakings have decreased by £1,598,291.
The loss for the prior year ended 31 March 2024 of £460,534 has been restated to £531,469. Net liabilties as at 31 March 2024 of £497,983 have been restated to £568,918.
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Financial commitments, guarantees and contingent liabilities
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The Company has jointly and severally guaranteed the bank borrowings of the immediate parent company, Balfe Limited. The Company has given cross guarantees against the bank borrowings in the form of a fixed and floating charge over its assets.
The contingent liability in respect of the cross guarantee at the Balance Sheet date is £10,986,994 (2024: £12,554,491 as restated).
The Company has jointly and severally guaranteed the bank borrowings of two fellow subsidiary companies, Sydney & Tavistock Properties Limited and Sydney & London Properties Limited, who are joint borrowers. The Company has given cross guarantees against the bank borrowings in the form of a fixed and floating charge over its assets.
The contingent liability in respect of this cross guarantee at the Balance Sheet date is £1,961,790 (2024: £2,112,950).
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Related party transactions
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The company has taken advantage of the exemption in Financial Reporting Standard 102, Section 33.1A not to disclose transactions with group entities which are wholly owned by a member of a group.
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Page 8
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JUSTICE MILL STUDIOS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2025
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Ultimate parent company and parent company of larger group
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The immediate parent undertaking of the Company is Balfe Limited, a company incorporated in the British Virgin Islands.
The ultimate parent undertaking of the Company is Boughton Holdings Limited, a company incorporated in Gibraltar. Boughton Holdings Limited is under the control of Michael Gross, the main shareholder.
Gross Hill Properties Limited heads the smallest and largest group of undertakings for which group financial statements are drawn up, and of which the Company is a member, a company incorporated in England and Wales. The consolidated financial statements are available to the public and may be obtained from Park House, Greyfriars Road, Cardiff, CF10 3AF.
The Company was subject to an audit for the year ended 31 March 2025. The audit report was issued with an unqualified opinion and signed on 26 September 2025 by Chris Gent BA FCA (Senior Statutory Auditor) on behalf of Wilder Coe Ltd.
Page 9
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