RAAN_INVESTMENTS_LIMITED - Accounts

The directors present their annual report and financial statements for the year ended 31 December 2022.

The principal activity of the company continued to be that of providing student accommodation.

2022 was another very positive year for the business and the Raan brand.

We continued to reinvest in our portfolio and continued to raise our standards through our Value Enhancement (VE) strategy, to maintain our best in market positioning and further improve the customer experience, thus strengthening our niche.

This was our 3rd consecutive year of the VE strategy which has proved to be very successful and has resulted in increased revaluations and an overall increase on the balance sheet.

There was a slight impact on the profits due to the continued growth of the business, and pressures from general market inflation, resulting in an increase in overheads of £60,000. This included additional costs of office rent & advertising at £10,000.

This also included additional wages of £25,000. There was also the addition of a Non-Executive Director at an annual cost of £20,000, to improve the strategic direction of the company.

The company also purchased the new WoHo concept project in Ashton Under Lyne in 2022, which has undertaken significant costs in both administrative and refurbishment fees. The project will complete in 2023, and result in significant increase in rental income and valuation, thus significantly improving the balance sheet.

Our VE strategy has resulted in further, more significant benefits. We achieved close to 100% occupancy levels and close to 100% rental price efficiency against target rents. We have also raised our rental price levels by close to 10% due to the higher quality of our properties, and to keep in line with market rents, strengthening margins further.

Whilst we will continue with Value Enhancement as part of our ongoing strategy, the bulk of the larger capital investment has now been completed, and we expect a slight reduction in these costs from 2023 onwards.

General market trends in 2022 have also worked in our favour, with a shortage of good quality rental properties available in the wider market, thus pushing up rental prices and occupancy levels.

Increased legislation has also forced the more traditional landlords to exit the market thus limiting supply further, resulting in further rental price increases & strengthening valuations further in our asset class. We expect this trend to continue through 2023 and beyond.

Our operational efficiency continues with not only having fixed our utilities costs at preferential rates, but we have also been able to successfully fix our long-term mortgage repayments for a 5-year period at a rate of 3.89% interest only. This was a major achievement bearing in mind current interest rates of 5.0% (July 2023) and like for like commercial rates of 6.5% plus. Adjusting to interest-only has also improved cash-flow within the business.

The directors who held office during the year and up to the date of signature of the financial statements were as follows:

This report has been prepared in accordance with the provisions applicable to companies entitled to the small companies exemption.

The directors of the company have elected not to include a copy of the profit and loss account within the financial statements.true

For the financial year ended 31 December 2022 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.

The directors acknowledge their responsibilities for complying with the requirements of the Companies Act 2006 with respect to accounting records and the preparation of financial statements.

The members have 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.

RAAN Investments Limited is a private company limited by shares incorporated in England and Wales. The registered office is Unit 1a, Empress Business Centre, 380 Chester Road, Manchester, M16 9EA.

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 amounts in these financial statements are rounded to the nearest £.

The financial statements have been prepared under the historical cost convention, modified to include the revaluation of investment properties and certain financial instruments at fair value. The principal accounting policies adopted are set out below.

Turnover represents rents receivable which is recognised on a straight line basis over the term of leases in place.

Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.

Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is credited or charged to profit or loss.

Investment property is included at fair value. Gains are recognised in the income statement. Deferred taxation is provided on these gains at the rate expected to apply when the property is sold.

The tax expense represents the sum of the tax currently payable and deferred tax.

Taxation for the year comprises current and deferred tax. Tax is recognised in the Income Statement, except to the extent that it relates to items recognised in other comprehensive income or directly in equity.

Current or deferred taxation assets and liabilities are not discounted.

Current tax is recognised at the amount of tax payable using the tax rates and laws that have been

enacted or substantively enacted by the balance sheet date.

Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date.

Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference.

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.

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leases asset are consumed.

Government grants are recognised at the fair value of the asset received or receivable when there is reasonable assurance that the grant conditions will be met and the grants will be received.

A grant that specifies performance conditions is recognised in income when the performance conditions are met. Where a grant does not specify performance conditions it is recognised in income when the proceeds are received or receivable. A grant received before the recognition criteria are satisfied is recognised as a liability.

The average monthly number of persons (including directors) employed by the company during the year was:

Investment property was valued on an open market basis on 27 July 2022 by Matthews & Goodman LLP.

The following secured debts are included within creditors:

• Bank loans of £6,255,686 (2021 - £6,341,761)

• Residential deposits of £81,581 (2021 £80,496)

The bank loans are secured on the properties to which they relate.

Residential deposits are protected in a tenancy deposit scheme.

At the reporting date £837,188 (2021 - £856,259) was receivable from a company owned by two of the directors. Of this amount £824,345 (2021- £840,769) is receivable after one year.

Interest is charged on this loan at 4.55% per annum.