Satila Farringdon Ltd - Period Ending 2020-12-31

Satila Farringdon Ltd

Contents

Company Information	1
Balance Sheet	2
Notes to the Financial Statements	3 to 9

Satila Farringdon Ltd

Company Information

Directors

Nils Lennart Grebelius Ted Lennart Grebelius Carl Oliver Grebelius

Registered office

80-83 Long Lane London EC1A 9ET

Auditors

Carbon Accountancy Limited Chartered Accountants and Registered Auditors 80-83 Long Lane London EC1A 9ET

Satila Farringdon Ltd

(Registration number: 05170124)
Balance Sheet as at 31 December 2020

	Note	2020 £	2019 £
Fixed assets
Tangible assets	4	25,477	395,999
Investment property	5	35,832,606	35,720,000
Investments	6	290,000	-
		36,148,083	36,115,999
Current assets
Debtors	7	284,689	493,787
Cash at bank and in hand		525,744	632,348
		810,433	1,126,135
Creditors: Amounts falling due within one year	8	(21,866,907)	(23,205,206)
Net current liabilities		(21,056,474)	(22,079,071)
Total assets less current liabilities		15,091,609	14,036,928
Provisions for liabilities		(3,070,164)	(3,070,164)
Net assets		12,021,445	10,966,764
Capital and reserves
Called up share capital	9	1,000,000	1,000,000
Share premium reserve		3,443,410	3,443,410
Other reserves		14,285,220	14,285,220
Profit and loss account		(6,707,185)	(7,761,866)
Shareholders' funds		12,021,445	10,966,764

These financial statements have been prepared in accordance with the special provisions relating to companies subject to the small companies regime within Part 15 of the Companies Act 2006.

These financial statements have been delivered in accordance with the provisions applicable to companies subject to the small companies regime and the option not to file the Profit and Loss Account has been taken.

Approved and authorised by the Board on 27 September 2021 and signed on its behalf by:
 

.........................................

Carl Oliver Grebelius
Director

Satila Farringdon Ltd

Notes to the Financial Statements for the Year Ended 31 December 2020

1	General information

The company is a private company limited by share capital, incorporated in England and Wales.

The address of its registered office is:
80-83 Long Lane
London
EC1A 9ET
United Kingdom

These financial statements were authorised for issue by the Board on 27 September 2021.

2	Accounting policies

Summary of significant accounting policies and key accounting estimates

The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.

Statement of compliance

These financial statements have been prepared in accordance with Financial Reporting Standard 102 Section 1A - 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' and the Companies Act 2006.

Basis of preparation

These financial statements have been prepared using the historical cost convention except that as disclosed in the accounting policies certain items are shown at fair value.

Going concern

The financial statements have been prepared on a going concern basis.

The company's bank loan finance agreement is coming to an end during January 2022 but the directors anticipate that discussion with the bank to extend its finance on the property to reach a successful conclusion.

Audit report

The Independent Auditor's Report was unqualified. The name of the Senior Statutory Auditor who signed the audit report on 27 September 2021 was John Leyden FCA, who signed for and on behalf of Carbon Accountancy Limited.

Revenue recognition

Turnover comprises the fair value of the rent and service charges receivable in the ordinary course of the company’s activities. Turnover is shown net of value added tax, rebates and discounts.

The company recognises revenue when:
The amount of revenue can be reliably measured;
it is probable that future economic benefits will flow to the entity;
and specific criteria have been met for each of the company's activities.

Satila Farringdon Ltd

Notes to the Financial Statements for the Year Ended 31 December 2020

Foreign currency transactions and balances

Transactions in foreign currencies are initially recorded at the functional currency rate prevailing at the date of the transaction. Monetary assets and liabilities denominated in foreign currencies are retranslated into the respective functional currency of the entity at the rates prevailing on the reporting period date. Non-monetary items carried at fair value that are denominated in foreign currencies are retranslated at the rate on the date when the fair value is re-measured.

Non-monetary items measured in terms of historical cost in a foreign currency are not retranslated.

Tax

The tax expense for the period comprises current tax. Tax is recognised in profit or loss, except that a change attributable to an item of income or expense recognised as other comprehensive income is also recognised directly in other comprehensive income.

The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the reporting date in the countries where the company operates and generates taxable income.

Tangible assets

Tangible assets are stated in the balance sheet at cost, less any subsequent accumulated depreciation and subsequent accumulated impairment losses.

The cost of tangible assets includes directly attributable incremental costs incurred in their acquisition and installation.

Depreciation

Depreciation is charged so as to write off the cost of assets, other than land and properties under construction over their estimated useful lives, as follows:

Asset class	Depreciation method and rate
Furniture and fittings	25% straight line
Office equipment	25% straight line

Investment property

Investment property is carried at fair value, derived from the current market prices for comparable real estate determined annually by the directors. The directors use observable market prices, adjusted if necessary for any difference in the nature, location or condition of the specific asset. Changes in fair value are recognised in profit or loss.

Business combinations

Business combinations are accounted for using the purchase method. The consideration for each acquisition is measured at the aggregate of the fair values at acquisition date of assets given, liabilities incurred or assumed, and equity instruments issued by the group in exchange for control of the acquired, plus any costs directly attributable to the business combination. When a business combination agreement provides for an adjustment to the cost of the combination contingent on future events, the group includes the estimated amount of that adjustment in the cost of the combination at the acquisition date if the adjustment is probable and can be measured reliably.

Satila Farringdon Ltd

Notes to the Financial Statements for the Year Ended 31 December 2020

Investments

Investments in equity shares which are publicly traded or where the fair value can be measured reliably are initially measured at fair value, with changes in fair value recognised in profit or loss. Investments in equity shares which are not publicly traded and where fair value cannot be measured reliably are measured at cost less impairment.


Interest income on debt securities, where applicable, is recognised in income using the effective interest method. Dividends on equity securities are recognised in income when receivable.

Cash and cash equivalents

Cash and cash equivalents comprise cash on hand and call deposits, and other short-term highly liquid investments that are readily convertible to a known amount of cash and are subject to an insignificant risk of change in value.

Trade debtors

Trade debtors are amounts due from customers for merchandise sold or services performed in the ordinary course of business.

Trade debtors are recognised initially at the transaction price. They are subsequently measured at amortised cost using the effective interest method, less provision for impairment. A provision for the impairment of trade debtors is established when there is objective evidence that the company will not be able to collect all amounts due according to the original terms of the receivables.

Trade creditors

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Accounts payable are classified as current liabilities if the company does not have an unconditional right, at the end of the reporting period, to defer settlement of the creditor for at least twelve months after the reporting date. If there is an unconditional right to defer settlement for at least twelve months after the reporting date, they are presented as non-current liabilities.

Trade creditors are recognised initially at the transaction price and subsequently measured at amortised cost using the effective interest method.

Borrowings

Interest-bearing borrowings are initially recorded at fair value, net of transaction costs. Interest-bearing borrowings are subsequently carried at amortised cost, with the difference between the proceeds, net of transaction costs, and the amount due on redemption being recognised as a charge to the Profit and Loss Account over the period of the relevant borrowing.

Interest expense is recognised on the basis of the effective interest method and is included in interest payable and similar charges.

Borrowings are classified as current liabilities unless the company has an unconditional right to defer settlement of the liability for at least twelve months after the reporting date.

Share capital

Ordinary shares are classified as equity. Equity instruments are measured at the fair value of the cash or other resources received or receivable, net of the direct costs of issuing the equity instruments. If payment is deferred and the time value of money is material, the initial measurement is on a present value basis.

Satila Farringdon Ltd

Notes to the Financial Statements for the Year Ended 31 December 2020

3	Staff numbers

The average number of persons employed by the company (including directors) during the year, was 0 (2019 - 0).

4	Tangible assets

	Furniture, fittings and equipment  £	Total £
Cost or valuation
At 1 January 2020	1,547,337	1,547,337
Additions	17,990	17,990
At 31 December 2020	1,565,327	1,565,327
Depreciation
At 1 January 2020	1,151,338	1,151,338
Charge for the year	388,512	388,512
At 31 December 2020	1,539,850	1,539,850
Carrying amount
At 31 December 2020	25,477	25,477
At 31 December 2019	395,999	395,999

5	Investment properties

	2020 £
At 1 January	35,720,000
Additions	112,606
At 31 December	35,832,606

There has been no valuation of investment property by an independent valuer.

6	Investments

	2020 £	2019 £
Investments in associates	290,000	-

Satila Farringdon Ltd

Notes to the Financial Statements for the Year Ended 31 December 2020

Associates	£
Cost
Additions	290,000
Provision
Carrying amount
At 31 December 2020	290,000

Details of undertakings

Details of the investments (including principal place of business of unincorporated entities) in which the company holds 20% or more of the nominal value of any class of share capital are as follows:

Undertaking	Registered office	Holding	Proportion of voting rights and shares held
			2020	2019
Associates
Sessions Arts Club Ltd	64 New Cavendish Street, London W1G 8TB	A Ordinary	50%	0%

7

Debtors

	Note	2020 £	2019 £
Trade debtors		105,418	15,423
Amounts owed by group undertakings and undertakings in which the company has a participating interest	11	24,499	60,581
Prepayments		5,849	1,417
Other debtors		148,923	416,366
		284,689	493,787

Satila Farringdon Ltd

Notes to the Financial Statements for the Year Ended 31 December 2020

8

Creditors

Creditors: amounts falling due within one year

	Note	2020 £	2019 £
Due within one year
Loans and borrowings	10	17,098,000	17,098,000
Trade creditors		82,332	52,485
Amounts owed to group undertakings and undertakings in which the company has a participating interest	11	4,105,462	4,411,344
Taxation and social security		110,514	84,865
Accruals and deferred income		158,863	536,426
Other creditors		311,736	1,022,086
		21,866,907	23,205,206

9	Share capital

Allotted, called up and fully paid shares

	2020		2019
	No.	£	No.	£
Ordinary shares of £1 each	1,000,000	1,000,000	1,000,000	1,000,000

10	Loans and borrowings

	2020 £	2019 £
Current loans and borrowings
Bank borrowings	17,098,000	17,098,000

Svenska Handelsbanken AB holds a charge dated 17th January 2014, 4th July 2016 and 12th December 2018 over the investment property, fixtures and fittings attached to the property, proceeds of any insurance in respect to the property and all rents receivable from the property.

Satila Farringdon Ltd

Notes to the Financial Statements for the Year Ended 31 December 2020

11	Related party transactions

During the year the company made the following related party transactions:

Satila Property UK Limited
(The Company is a fellow subsidiary)
Both companies operate under Group VAT rules, Satila Property UK Limited makes payments or receives refunds relating to Satila Farringdon Limited, this is then recharged through the inter-company accounts
At the balance sheet date amount due to Satila Property UK Limited was £3,405,768 (2019 - £3,723,507)

Satila Property Development AB
(Satila Property Development AB (Sweden) is the parent company)
At the balance sheet date an interest bearing loan due to Satila Property Development AB was £604,944 (2019 - £593,086).

Satila Holding AB
(Lennart Grebelius controls Satila Holding AB)
During the year, Satila Holding AB charged management fee of £25,000 (2019: £25,000). At the balance sheet date the amount due to Satila Holding AB was £75,000 (2019 - £75,000).

TLG Studios Limited
(Ted Lennart Grebelius is a common director)
During the year, TLG Studios Limited charged consultancy fee of £72,500 (2019 - £72,500).

COG Property Limited
(Oliver Grebelius is a common director)
During the year, COG Property Limited charged management fee of £86,500 (2019: 86,500).

Sessions Studios Limited
(Fellow subsidiary)
At the balance sheet date the intercompany amount due to Sessions Studios Limited was £19,750 (2019 - £19,750).

Sessions Arts Club Limited
(Associates)
At the balance sheet date the intercompany amount due from Sessions Arts Club Limited was £24,500 (2019: £60,581).

12	Parent and ultimate parent undertaking

The company's immediate parent is Satila Property Development AB, incorporated in Sweden.