Company registration number 08463207 (England and Wales)
ZEME CAPITAL LIMITED
Unaudited financial statements
For the year ended 30 September 2021
Pages for filing with registrar
ZEME CAPITAL LIMITED
CONTENTS
Page
Statement of financial position
1 - 2
Notes to the financial statements
3 - 7
ZEME CAPITAL LIMITED
STATEMENT OF FINANCIAL POSITION
As at 30 September 2021
- 1 -
2021
2020
Notes
£
£
£
£
Non-current assets
Investment properties
3
2,600,000
3,875,000
Investments
4
53,406,129
29,659,200
56,006,129
33,534,200
Current assets
Trade and other receivables
5
116,230
116,230
Cash and cash equivalents
392,571
1,410,861
508,801
1,527,091
Current liabilities
6
(49,612,075)
(35,013,368)
Net current liabilities
(49,103,274)
(33,486,277)
Total assets less current liabilities
6,902,855
47,923
Non-current liabilities
7
(2,558,973)
Net assets
4,343,882
47,923
Equity
Called up share capital
8
1
1
Retained earnings
4,343,881
47,922
Total equity
4,343,882
47,923
The director of the company has elected not to include a copy of the income statement within the financial statements.
true
For the financial year ended 30 September 2021 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.
The director acknowledges his responsibilities for complying with the requirements of the Companies Act 2006 with respect to accounting records and the preparation of financial statements.
T
he member has not required the company to obtain an audit of its financial statements for the year in question in accordance with section 476
.
These financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime.
ZEME CAPITAL LIMITED
STATEMENT OF FINANCIAL POSITION (CONTINUED)
As at 30 September 2021
- 2 -
The financial statements were approved and signed by the director and authorised for issue on 28 June 2022
Mr Nicholas Lowcock
Director
Company Registration No. 08463207
ZEME CAPITAL LIMITED
NOTES TO THE FINANCIAL STATEMENTS
For the year ended 30 September 2021
- 3 -
1
Accounting policies
Company information
Zeme Capital Limited is a
private
company
limited by shares
incorporated in
England and Wales
.
The registered office is
Connect House, 133-137 Alexandra Road, London, SW19 7JY.
1.1
Accounting convention
These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006 as applicable to companies subject to the small companies regime. The disclosure requirements of section 1A of FRS 102 have been applied other than where additional disclosure is required to show a true and fair view.
The financial statements are prepared in
sterling
, which is the functional currency of the company.
Monetary a
mounts
in these financial statements are
rounded to the nearest £.
The financial statements have been prepared under the historical cost convention, modified to include investment properties and certain financial instruments at fair value. The principal accounting policies adopted are set out below.
1.2
Revenue
Revenue represents rental income receivable from the company's investment properties, recognised in the period in which the rental income is earned.
1.3
Investment properties
Investment property, which is property held to earn rentals and/or for capital appreciation, is initially recognised at cost, which includes the purchase cost and any directly attributable expenditure
. Subsequently it is measured
at fair value a
t
the reporting end date.
Changes in fair value are recognised in profit or loss.
1.4
Non-current investments
Interests in subsidiaries, associates and jointly controlled entities are initially measured at cost and subsequently measured at cost less any accumulated impairment losses.
The investments are assessed for impairment at each reporting date
and
any
impairment
losses or reversals of impairment losses are recognised immediately in
profit
or
loss
.
A subsidiary is an entity controlled by the company
. Control is
the power to govern the financial and operating policies of
the
entity so as to obtain benefits from its activities.
An associate is an entity, being neither a subsidiary nor a joint venture, in which the company holds a long-term interest and where the company has significant influence. The company considers that it has significant influence where it has the power to participate in the financial and operating decisions of the associate.
Entities in which the company has a long term interest and shares control under a contractual arrangement are classified as jointly controlled entities
.
1.5
Cash and cash equivalents
Cash and cash equivalents
are basic financial assets
and
include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.
ZEME CAPITAL LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
For the year ended 30 September 2021
1
Accounting policies
(Continued)
- 4 -
1.6
Financial instruments
The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the company's statement of financial position when the company becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset
, with
the net amounts presented in the financial statements
,
when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
Basic financial assets
Basic financial assets, which include
trade and other receivables
and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest
method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest.
Financial assets classified as receivable within one year are not amortised.
Classification of financial liabilities
Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.
Basic financial liabilities
Basic financial liabilities, including
trade and other payables
, bank loans, loans from
fellow group companies and preference shares that are classified as debt, are
initially recognised at transaction price unless the arrangement constitutes a
financing transaction, where the debt instrument is measured at the present value of
the future
paymen
ts discounted at a market rate of interest.
Financial liabilities classified as payable within one year are not amortised.
Debt instruments are subsequently carried at amortised cost, using the effective
interest rate method.
Trade payables
are obligations to pay for goods or services that have been acquired
in the ordinary course of business from suppliers. A
m
ounts payable are classified as
current liabilities if payment is due within one year or less. If not, they are presented
as non-current liabilities.
Trade payables
are recognised initially at transaction price
and subsequently measured at amortised cost using the effective interest method.
1.7
Equity instruments
Equity instruments issued by the company are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.
1.8
Taxation
The tax expense represents the sum of the tax currently payable and deferred tax.
Current tax
The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the
income statement
because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The
company’s
liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.
ZEME CAPITAL LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
For the year ended 30 September 2021
1
Accounting policies
(Continued)
- 5 -
Deferred tax
Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.
1.9
Employee benefits
The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or
non-current assets
.
1.10
Foreign exchange
Transactions in currencies other than
pounds sterling
are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation
in the period
are included in profit or loss.
2
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2021
2020
Number
Number
Total
1
1
3
Investment property
2021
£
Fair value
At 1 October 2020
3,875,000
Disposals
(1,275,000)
At 30 September 2021
2,600,000
The fair value of the investment property has been arrived at on the basis of a valuation carried out by the director of the company. The valuation was made on an open market value basis by reference to market evidence of transaction prices for similar properties.
ZEME CAPITAL LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
For the year ended 30 September 2021
- 6 -
4
Fixed asset investments
Listed investments
Loans
Unlisted investments
Total
£
£
£
£
Cost or valuation
At 1 October 2020
1,305,715
29,271,120
4,000,008
34,576,843
Additions
14,936,416
6,590,000
10,761,345
32,287,761
Valuation changes
163,564
101,966
-
265,530
Amortisation (effective interest method)
-
1,351,125
-
1,351,125
Disposals
(4,394,082)
(2,850,448)
(2,280,291)
(9,524,821)
At 30 September 2021
12,011,613
34,463,763
12,481,062
58,956,438
Impairment
At 1 October 2020
-
3,862,736
1,054,907
4,917,643
Impairment losses
-
457,653
175,013
632,666
At 30 September 2021
-
4,320,389
1,229,920
5,550,309
Carrying amount
At 30 September 2021
12,011,613
30,143,374
11,251,142
53,406,129
At 30 September 2020
1,305,715
25,408,384
2,945,101
29,659,200
5
Trade and other receivables
2021
2020
Amounts falling due within one year:
£
£
Corporation tax recoverable
102,815
102,815
Other receivables
13,415
13,415
116,230
116,230
6
Current liabilities
2021
2020
£
£
Corporation tax
585,015
Other payables
49,027,060
35,013,368
49,612,075
35,013,368
ZEME CAPITAL LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
For the year ended 30 September 2021
- 7 -
7
Non-current liabilities
2021
2020
£
£
Other payables
2,558,973
8
Called up share capital
2021
2020
2021
2020
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
1
1
1
1
9
Related party transactions
During the year the company's shareholder and director provided a loan to the company. The balance of the loan due to the director at 30 September 2021 was £48,986,151
(20
20: £34,972,513
). The loan is interest-free and repayable on demand.
In the prior period the company's loan notes in a company which shares common owners were converted into redeemable preference shares and additional preference shares were issued to Zeme Capital Limited.
The preference
shares pay dividends at a rate of 10% per annum, however it was not probable that the dividend income
would be received and as such they have not been recognised in the income statement.
The total outstanding investment recognised within fixed asset investments as a result of this investment at 30 September 202
1
was £
14
,
571
,
167
(20
20
: £
12,579,199
).