13 Holland Park Ltd
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Notes to the Accounts |
For the year ended 31 December 2021
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1 |
Company information |
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The company is a private company limited by shares, incorporated in England and registered at 2nd Floor, 23 College Hill, London, EC4R 2RP. |
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2 |
Accounting policies |
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2.1 Basis of preparation |
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The accounts have been prepared under the historical cost convention and in accordance with FRS 102, The Financial Reporting Standard applicable in the UK and Republic of Ireland (as applied to small entities by section 1A of the Standard).
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2.2 Going concern |
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The accounts have been prepared on the going concern basis even though at the balance sheet date the company's current liabilities exceeded its current assets. The company reviewed its forecasts for 2022 and 2023, including the likely continued impact of the Covid-19 pandemic on the company's operations. Based on that review and the availability of financial resources, including the related party loans referred to in Note 10, the directors consider that the company will continue to be able to meet its liabilities as they fall due for at least 12 months from the date of their approval of these accounts and therefore the going concern basis remains appropriate for preparing the company's accounts. |
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2.3 Functional and presentation currency |
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The company's functional and presentation currency is Pound sterling ("£"). |
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2.4 Property income |
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Property income is measured at the fair value of the rents and other property income receivable, net of discounts and value added taxes. Property income is recognised over the period to which it relates. |
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2.5 Tangible assets |
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Tangible assets are measured at cost less accumulative depreciation and any accumulative impairment losses. Depreciation is provided on tangible fixed assets at rates calculated to write off the cost less estimated residual value of each asset evenly over its expected useful life, as follows:
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Fixtures and fittings |
over 4 years |
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2.6 Investment property |
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The investment property is measured at fair value at each reporting date with any changes in fair value recognised in the fair value reserve. Fair value is ascertained by an open market valuation on freehold basis, conducted annually by the director or by independent professional valuers. |
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2.7 Debtors |
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Short term debtors are measured at transaction price less any impairment losses for bad and doubtful debts. Longer term loans and other financial assets are initially recognised at transaction price including any transaction costs and subsequently measured at amortised cost determined using the effective interest method, less any impairment losses for bad and doubtful debts.
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2.8 Creditors |
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Short term creditors are measured at transaction price. Longer term loans and other financial liabilities are initially recognised at transaction price net of any transaction costs and subsequently measured at amortised cost determined using the effective interest method.
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2.9 Taxation |
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A current tax liability is recognised for the tax payable on the taxable profit of the current and past periods. A current tax asset is recognised in respect of a tax loss that can be carried back to recover tax paid in a previous period. Deferred tax is recognised in respect of all timing differences between the recognition of income and expenses in the accounts and their inclusion in tax assessments. 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. Deferred tax is measured using the tax rates and laws that have been enacted or substantively enacted by the reporting date and that are expected to apply to the reversal of the timing difference, except for investment property where the tax rate that applies to the sale of the asset is used. Current and deferred tax assets and liabilities are not discounted.
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2.10 Impairment |
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Assets not measured at fair value are reviewed for any indication that the asset may be impaired at each balance sheet date. If such indication exists, the recoverable amount of the asset, or the asset's cash generating unit, is estimated and compared to the carrying amount. Where the carrying amount exceeds its recoverable amount, an impairment loss is recognised in the profit and loss account unless the asset is carried at a revalued amount, in which case the impairment loss is a revaluation decrease. |
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2.1 Provisions |
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Provisions and other liabilities of uncertain timing or amount are recognised when there is an obligation at the reporting date as a result of a past event, it is probable that economic benefit will be transferred to settle the obligation and the amount of the obligation can be reliably estimated.
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2.12 Foreign currency translation |
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Transactions in foreign currencies are initially recognised at the rate of exchange ruling at the date of the transaction. At the end of each reporting period foreign currency monetary items are translated at the closing rate of exchange. Non-monetary items that are measured at historical cost are translated at the rate ruling at the date of the transaction. All differences are charged to profit or loss.
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2.13 Pension contributions |
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Contributions to defined contribution plans are expensed in the period to which they relate.
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3 |
Employees |
2021 |
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2020 |
Number |
Number |
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Average number of persons employed, including directors |
3 |
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3 |
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4 |
Tangible assets |
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Fixtures and fittings |
£ |
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Cost |
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At 1 January 2021 |
1,309,508 |
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Additions |
17,692 |
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At 31 December 2021 |
1,327,200 |
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Depreciation |
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At 1 January 2021 |
648,323 |
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Charge for the year |
331,801 |
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At 31 December 2021 |
980,124 |
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Net book value |
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At 31 December 2021 |
347,076 |
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At 31 December 2020 |
661,185 |
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5 |
Investment property |
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£ |
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Fair value |
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At 1 January 2021 |
44,162,892 |
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Additions |
73,320 |
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Loss in fair value |
(6,236,212) |
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At 31 December 2021 |
38,000,000 |
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The company's property is given as security for the bank borrowing of its parent company and also for a proposed bank borrowing by the company itself. |
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6 |
Debtors |
2021 |
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2020 |
£ |
£ |
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Other debtors |
4,040 |
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3,858 |
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7 |
Creditors: amounts falling due within one year |
2021 |
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2020 |
£ |
£ |
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Trade creditors |
13,365 |
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118 |
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Amounts owed to group undertakings |
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37,240,653 |
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37,240,653 |
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Taxation and social security |
541,282 |
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310,153 |
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Other creditors |
433,152 |
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1,025,751 |
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38,228,452 |
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38,576,675 |
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8 |
Share capital |
2021 |
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2020 |
£ |
£ |
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Allotted, called up and fully paid: |
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100 Ordinary shares of £1 each |
2 |
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2 |
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9 |
Fair value reserve |
2021 |
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2020 |
£ |
£ |
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At 1 January 2021 |
6,241,129 |
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6,241,129 |
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Loss in fair value of investment property |
(6,236,212) |
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- |
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Deferred tax credit on change in fair value |
972,427 |
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- |
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At 31 December 2021 |
977,344 |
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6,241,129 |
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10 |
Related party matters |
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Included in Creditors in Note 7 are interest-free and unsecured loans of £37,240,653 (2020: £37,240,653) from the parent company and £423,070 (2020: £1,108,070) from the ultimate beneficial owner. Although these loans are repayable on demand, the lenders have confirmed that they will not seek repayment to the extent that the company may continue to need them.
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11 |
Controlling party |
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The company is a wholly owned subsidiary of HP Property Investment Ltd, registered by incorporation at Palm Grove House, PO Box 438, Road Town, Tortola, British Virgin Islands and registered by place of business at Fort Anne, South Quay, Douglas, Isle of Man. The ultimate beneficial owner is Turgay Ciner of Turkey.
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