423378622024-01-012024-12-31423378622024-12-31423378622023-12-31fsa:ContributedCapitalMember423378622023-12-31fsa:ReserveForNetRevaluationAccordingToEquityMethodMember423378622023-12-31fsa:RetainedEarningsMember423378622023-12-31423378622024-01-012024-12-31fsa:ContributedCapitalMember423378622024-01-012024-12-31fsa:ReserveForNetRevaluationAccordingToEquityMethodMember423378622024-01-012024-12-31fsa:RetainedEarningsMember423378622024-12-31fsa:ContributedCapitalMember423378622024-12-31fsa:ReserveForNetRevaluationAccordingToEquityMethodMember423378622024-12-31fsa:RetainedEarningsMember423378622024-01-012024-12-31cmn:ConsolidatedMemberfsa:LiquidationAccountMember423378622024-01-012024-12-31cmn:ConsolidatedMember423378622024-01-012024-12-31cmn:ConsolidatedMember1423378622024-01-012024-12-31cmn:ConsolidatedMember1423378622024-01-012024-12-31cmn:ConsolidatedMember2423378622024-01-012024-12-31cmn:ConsolidatedMember3423378622024-01-012024-12-31cmn:ConsolidatedMember4423378622024-01-012024-12-31cmn:ConsolidatedMember1423378622024-01-012024-12-31cmn:ConsolidatedMember2423378622024-12-31cmn:ConsolidatedMember423378622023-12-31cmn:ConsolidatedMemberfsa:ContributedCapitalMember423378622023-12-31cmn:ConsolidatedMemberfsa:RetainedEarningsMember423378622023-12-31cmn:ConsolidatedMember423378622024-01-012024-12-31cmn:ConsolidatedMemberfsa:ContributedCapitalMember423378622024-01-012024-12-31cmn:ConsolidatedMemberfsa:RetainedEarningsMember423378622024-12-31cmn:ConsolidatedMemberfsa:ContributedCapitalMember423378622024-12-31cmn:ConsolidatedMemberfsa:RetainedEarningsMember423378622023-01-012023-12-31423378622023-01-012023-12-31cmn:ConsolidatedMember423378622022-12-31cmn:ConsolidatedMemberiso4217:GBP42337862ÅrsrapportTranslated into DKK'000 at 31 December 2024:
- Retained earnings 553,283
- Total 987,538
The Group's contributed capital amounts to DKK 445,150,000 at 31 December 2024.
There have been no changes to the contributed capital during the year.
Translated into DKK'000 at 31 December 2024:
- Revaluation reserve 523.290
- Retained earnings 19,345
- Total 987.538
The Parent company's contributed capital amounts to DKK 445,150,000 at 31 December 2024.
There have been no changes to the contributed capital during the year. 20240180002308100012000The Board of Directors and the Executive Board have today considered and approved the annual report of Britannia Invest Holding K/S for the financial year 01.01.2024 - 31.12.2024.-18000-55192000-12000The annual report is presented in accordance with the Danish Financial Statements Act.0108960006000In our opinion, the consolidated financial statements and the parent financial statements give a true and fair view of the Group's and the Parent's financial position at 31.12.2024 and of the results of their operations and the consolidated cash flows for the financial year
01.01.2024 - 31.12.2024.-18000-43007000-6000We believe that the management commentary contains a fair review of the affairs and conditions referred to therein.128743000419000109843000We recommend the annual report for adoption at the Annual General Meeting.128743000-43426000109843000London128743000222000109843000Lars Sindberg12874300018764000109843000Frantz Palludan51907000-6196800049470000Chairman77086000108500058186000Peter Olsson-280000-630530002151000Nikolaj Stampe128713000357600000109807000Torbjørn Lange1700035760000022000To the shareholders of Britannia Invest Holding K/S130002050000014000We have audited the consolidated financial statements and the parent financial statements of Britannia Invest Holding K/S for the financial year 01.01.2024 - 31.12.2024, which comprise the income statement, balance sheet, statement of changes in equity and notes, including a
summary of significant accounting policies, for the Group as well as the Parent, and the consolidated cash flow statement. The consolidated financial statements and the parent financial statements
are prepared in accordance with the
Danish Financial Statements Act.
In our opinion, the consolidated financial statements and the parent financial statements give a true and fair view of the Group's and the Parent's financial position at 31.12.2024 and of the results of their operations and the consolidated cash flows for the financial year 01.01.2024 - 31.12.2024 in accordance
with the Danish Financial Statements Act.300002050000036000We conducted our audit in accordance with International Standards on Auditing (ISAs) and additional
requirements
applicable in Denmark. Our responsibilities under those standards and requirements are further
described in the "Auditor’s responsibilities for the audit of the consolidated financial statements and the parent financial statements" section of this auditor’s
report. We are independent of the Group in accordance
with the International Ethics Standards Board for Accountants’ International Code of Ethics for Professional
Accountants (IESBA Code) and the additional ethical requirements applicable in Denmark, and we have fulfilled
our other ethical responsibilities in accordance with these requirements and the IESBA Code. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis
for our opinion.3000037810000036000Management is responsible for the preparation of consolidated financial statements and parent financial statements that give a true and fair view in
accordance
with the Danish Financial Statements Act, and for such internal control as Management determines
is necessary to enable the preparation of consolidated financial statements and parent financial statements that are free from material misstatement,
whether due to fraud or error.
In preparing the consolidated financial statements and the parent financial statements, Management is responsible for assessing the Group's and the Entity’s ability to continue
as a going concern, for disclosing, as applicable, matters related to going concern, and for using the going concern basis of accounting in preparing the consolidated financial statements and the parent financial statements unless Management either intends to liquidate
the Entity or to cease operations, or has no realistic alternative but to do so.128743000211000109843000Our objectives are to obtain reasonable assurance about whether the consolidated financial statements and the parent financial statements as a whole are
free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes
our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted
in accordance with ISAs and the additional requirements applicable in Denmark will always detect a material
misstatement when it exists. Misstatements can arise from fraud or error and are considered material if,
individually or in the aggregate, they could reasonably be expected to influence the economic decisions of
users taken on the basis of these consolidated financial statements and parent financial statements.
As part of an audit conducted in accordance with ISAs and the additional requirements applicable in Denmark,
we exercise professional judgement and maintain professional scepticism throughout the audit. We also:Identify and assess the risks of material misstatement of the consolidated financial statements and the parent financial statements, whether due to
fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk ofnot detecting a
material misstatement resulting from fraud is higher than for one resulting from error, as fraud may
involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.Obtain an understanding of internal control relevant to the audit in order to design audit procedures
that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the
effectiveness of the Group's and the Entity’s internal control.Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates
and related disclosures made by Management.Conclude on the appropriateness of Management’s use of the going concern basis of accounting in
preparing the consolidated financial statements and the parent financial statements, and, based on the audit evidence obtained, whether a material
uncertainty exists related to events or conditions that may cast significant doubt on the Group's and the Entity’s ability to
continue as a going concern. If we conclude that a material uncertainty exists, we are required to
draw attention in our auditor’s report to the related disclosures in the consolidated financial statements and the parent financial statements or, if such
disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence
obtained up to the date of our auditor’s report. However, future events or conditions may cause the
Group and the Entity to cease to continue as a going concern.Evaluate the overall presentation, structure and content of the consolidated financial statements and the parent financial statements, including the disclosures
in the notes, and whether the consolidated financial statements and the parent financial statements represent the underlying transactions and
events in a manner that gives a true and fair view.Plan and perform the group audit to obtain sufficient appropriate audit evidence regarding the financial information of the entities or business units within the group as a basis for forming an opinion on the consolidated financial statements and the parent financial statements. We are responsible for the direction, supervision and review of the audit work performed for purposes of the group audit. We remain solely responsible for our audit opinion.We communicate with those charged with governance regarding, among other matters, the planned scope
and timing of the audit and significant audit findings, including any significant deficiencies in internal control
that we identify during our audit.-1800074100051907000147800077086000Management is responsible for the management commentary.
Our opinion on the consolidated financial statements and the parent financial statements does not cover the management commentary, and we do not express
any form of assurance conclusion thereon.
In connection with our audit of the consolidated financial statements and the parent financial statements, our responsibility is to read the management
commentary and, in doing so, consider whether the management commentary is materially inconsistent with
the consolidated financial statements and the parent financial statements or our knowledge obtained in the audit or otherwise appears to be materially
misstated.
Moreover, it is our responsibility to consider whether the management commentary provides the information
required under the Danish Financial Statements Act.Based on the work we have performed, we conclude that the management commentary is in accordance with
the consolidated financial statements and the parent financial statements and has been prepared in accordance with the requirements of the Danish Financial
Statements Act. We did not identify any material misstatement of the management commentary.2430000-2800007461000Copenhagen98910002437000Bjørn Winkler Jakobsen3879910000mne3212750723000-2437000State Authorised Public Accountant779900000Mads Buch128713000-18900000mne47793130000000State Authorised Public Accountant234649000-18900000Financial highlights2024
GBP'0002023
GBP'0002022
GBP'0002021
GBP'000Key figuresRevenue22,95423,08125,26819,099Gross profit/loss2,396(43,007)(19,318)15,795Operating profit/loss2,054(43,426)(19,652)15,514Net financials(19,531)(18,542)(10,167)(5,723)Profit/loss for the year(18,906)(63,053)(31,109)8,487Balance sheet total368,100387,991469,229500,777Investments in property, plant and equipment5,0053,0844,4755,894Equity109,807128,713191,766222,875RatiosGross margin (%)10.44(186.33)(76.45)82.70Net margin (%)(82.36)(273.18)(123.12)44.44Equity ratio (%)29.8333.1740.8744.51Financial highlights are defined and calculated in accordance with the current version of "Recommendations &
Ratios" issued by the CFA Society Denmark.Gross margin (%)
:Gross profit/loss * 100
RevenueNet margin (%)
:
Profit/loss for the year * 100
RevenueEquity ratio (%)
:Equity * 100
Balance sheet total17040000Primary activitiesThe Company’s mission is to invest in British commercial real estate, making Britannia Invest A/S a company with a clear investment profile intending to take advantage of the special investor-friendly practices in the British property market.
The key concepts of the investment strategy are security and quality. This applies to the identification of investment properties, including the quality, location, rate of return potential for capital value growth and standard of asset-level amenity.
A core component of the Company’s strategic focus is to remain dynamic in both asset management and investment strategy. To achieve this, the Company constantly monitors the portfolio and takes action to optimise the rate of return through undertaking asset management initiatives. From an investment perspective, the Company constantly assesses both market and asset conditions to consider the most optimum time to dispose of assets and recycle the capital into acquisitions.
At year-end 2024 the portfolio consisted of the following assets:
• Temple Quay Bristol
• Whitehall II Leeds
• Optima Building Glasgow
• Citygate 1 Newcastle
• 1 Finsbury Square London
• Quilter House Southampton
• Bridgewater House Manchester
• Mainpoint Edinburgh
• Acero Sheffield
• One Colmore Row Birmingham
• 1 City Square Leeds
• Corner Block Manchester
In 2023, contracts were exchanged for the sale of Talisman House, Aberdeen and the sale completion in February 2024.
249353000-6000Development in activities and financesThe year 2024 has continued to present challenges, with persistently high interest rates and ongoing political uncertainty affecting the investment landscape. However, towards the end of the year, market sentiment began to show signs of improvement.
In the office sector, yield expansion was evident in the early part of the year. Nonetheless, the second half saw a number of key transactions completed at favourable levels, leading to a gradual improvement in yields. Despite a 2% write-down in property values, Britannia Invest A/S outperformed the broader office property market. Moreover, several significant asset management milestones were achieved, including multiple regears and new lettings, which resulted in the vacancy rate being more than halved.
Total return for all property asset classes in the UK was +7.7% in 2024 according to MSCI. Returns for the main commercial asset classes were +2.7% for the Office sector, +9.7% for the Industrial sector and +11.5% for retail.Capital value growth for all UK Real Estate was +1.1%. However, there is a significant variance between sectors; Retail +3.0%, Industrial +3.9% and notably -5.7% for All Offices, making it the worst performing sector and the only sector with negative capital growth. However, this figure includes London offices which creates a positive skew and once London assets are removed, the Rest of UK Offices recorded capital value growth of -8.7%, which evidences the headwinds the regional office market has experienced in 2024.
Britannia Invest A/S realised a return on equity of -16% and a loss after tax of £ -18.9m, including -£13.5m of net property revaluations.The core business return is presented as “the basic primary rental business without balance sheet adjustments”.
Due to financial reporting requirements, “Revenue” and “Gross profit” in the income statement do not include financial expenses.
Britannia Invest Groups conventional way of showing the profit from primary operations is as follows:
Despite the sale of Talisman House, Aberdeen which had a contracted rent of £2.5m the rental income revenue increased. This is the result of a high number of new leases completing and several rent-free periods expiring. Property costs reduced from £11.0M to £7.6m mainly due to reduction in vacant space and the associated void cost. Interest levels have remained high which has resulted in finance costs increasing by 6%. No acquisitions were made in 2024. Despite market uncertainties continuing, it was still a very active asset management year.
The portfolio had a gross negative market revaluation of -£13.5m after investing £5.0m in the portfolio over the year.
Overall borrowing has reduced to £244m out of which the shareholder loan remains at £ 230m and with an overall LTV is at 71% and while the LTV from external funding is only 8%.
The 2024 result after tax was a loss of £18.9m compared to a loss of £63.0m in 2023. In the annual report for 2023, the expected loss after tax for 2024 was £7.7m.
The rate of exchange of the British pound rose from 8.5759 to 8.9934 from 31 December 2023 to 31 December 2024.
The external valuer, Savills, has valued the portfolio at £341.1m at year-end 2024, a like-for-like decrease of £8.5m.
The balance sheet total decreased by 5%, from £388m to £368.2m. Equity decreased by £18.9m from £ 128.7m to
£ 109.8m. Return on equity was -15% and the intrinsic share value decreased from 31 December 2023 to 31 December 2024 by 11% from 248 to 222.
Since 2003 the Company has been owned by shareholders who are subject to taxation under the Danish Pension Investment Return Tax Act. This means that the Company, being subject to the Pension Investment Return Tax Act, is not liable to pay tax in Denmark, and no tax expense on income earned in Denmark has been recognised in the annual report. However, in the UK, tax at a rate equivalent to 25% will be payable on profit on UK activities. Interest payments and tax depreciation on properties reduce the operating profit in the UK, and a net expense of £1.4m has been recognised for 2024.
The Board of Directors considers the result for the year very unsatisfactory.
Acquisition and disposal of properties76 & 80 Hammersmith was disposed in back June 2023. The payment was structured in two tranches with the second falling due in June 2025. In addition, the sale of Talisman House completed in February 2024. There were no acquisitions in the period.Portfolio of properties
On 31 December 2024, the Company’s portfolio of properties consists of 12 well-located office buildings geographically spread throughout the UK. 10 of which are freehold and 2 are leasehold.
The total area is 1,025,215 sq. ft., of which 97,217 sq. ft. is vacant at year-end.
The vacant space in the portfolio has decreased from 190,967 sq. ft. at the start of the year. During the year re-gears and new lettings were agreed for 130,916 sq ft representing some 13% of the sq. ft. in the portfolio but representing 17% of the contractual rent roll.
Bristol is not included in the square feet numbers as it is completely stripped out. The construction company took
control of the site in April and the works to double the size from a 30,000 sq. ft. to a 60,000 sq. ft. is ongoing with planned completion in early 2026.
The total acquisition cost of the property portfolio is £395.9m, Market value of £341.1m and the contractual rent at year-end is £25.6m, giving a return of 7.0% on the market value. At year-end total borrowing is £244m, and over the year interest payments were £19.8m, resulting in an interest cover of 129%.
Asset management
In Temple Quay, Bristol, a construction company commenced a £25 million contract in April to build a new best-in-class office building. This project involves redeveloping a dated 30,000 sq. ft. Regus office into a 60,000 sq. ft. state-of-the-art office building, with all necessary accreditations to secure the highest rents in Bristol. The complete strip-out and demolition of the top floors have been completed, allowing the steel structure for the additional floors to be craned in early 2025. The project remains on track for completion in Q1 2026.
In Whitehall Quay, Leeds, a government department leased 28,729 sq. ft. on a 15-year lease with a break option in year 10, leaving only half a floor vacant. Britannia delivered the space fully fitted. Landlord-funded works to upgrade the EPC rating to a “B” are ongoing and expected to be completed in the first half of 2025.
In Optima, Glasgow, a tenant has regeared a floor of 10,333 sq. ft. for a 10-year term with break options in years 3 and 5. The creation of a communal business lounge is set to start in January 2025.
In Citygate, Newcastle, following the refurbishment of 16,479 sq. ft. completed in 2023, lettings commenced immediately after completion. The final three leases were signed in 2024, resulting in the property being fully let once again.
In Bridgewater House, Manchester, a tenant took 20,034 sq. ft. on a 16-year lease with a break option in year 12. Several tenants are currently negotiating regearing their leases.
In Finsbury Square, London, two floors totalling 13,060 sq. ft. were let on 10-year leases with 5-year break options. Following this, the property is now fully let.
In Colmore Row, Birmingham, four tenants took leases with terms ranging from 2 to 5 years, leaving just one fully
fitted floor vacant.
In Mainpoint, Edinburgh, a tenant regeared their lease, reducing their floor space by 6,000 sq. ft. but extending the lease term by 10 years. The vacated space has been refurbished and will be launched to the market in January 2025. Terms have been agreed for a government tenant to regear their lease for 37,202 sq. ft., pending final ministerial sign-off.
In City Square, Leeds, a tenant expanded their floor space from half a floor to a full floor. The vacated space is under refurbishment and is expected to be completed by mid-2025.
In Corner Block, Manchester, a tenant leased a suite of 5,090 sq. ft. on a 10-year lease with a break option in year 5. Britannia organised the fit-out for the tenant.
Over the year, a total of £5.0 million was invested in the portfolio. However, a revaluation of -£13.5 million resulted in a net negative revaluation of the portfolio by -£8.5 million.
Valuation of the property portfolio
In accordance with company policy the entire portfolio of properties is valued bi-yearly, by an independent valuerappointed by the Company. Savills has carried out an independent valuation of the property portfolio and has valued the portfolio at £ 341.1m as of 31 December 2024.
In the annual report, Management has valued the portfolio at £ 341.1m. Management’s valuation has been made on a going concern basis and builds on a detailed analysis of the individual properties. This includes an assessment of the state of the properties, their location, current and estimated level of rent, the tenants’ covenant strength and offers received for some of the properties.
0531800049470000058186000460700021510009925000Profit/loss for the year in relation to expected developmentsBritannia Invest Group loss after tax amounts to GBP 18,9m compared to a loss after tax of GBP 63.1m in 2023. In the annual report for 2023, a loss
after tax of GBP 7,7m was expected for 2024.
259278000OutlookFor 2025, Britannia Invest A/S expects to generate a loss after tax of £5.1m. Several regears with existing tenants are expected over the course of the year and with further new lettings the vacancy is budgeted to reduce further all expected to contribute positively to the fund performance.
Particular risks
Interest rate risks
The Company finances its acquisition of properties through floating-rate loans. The shareholder loan is repayable in 2025, and the external credit facility expires in 2025. An average interest rate of approx. 8% is currently paid.
Currency risks
Properties owned by the Company are acquired in British pound sterling (GBP), and the operation of properties is also made in this currency. In order to hedge the currency risk involved in GBP, all borrowing is in GBP. On 31 December 2024, loans had a market value of £244m corresponding to approx. 71.5% of the £341.1m book value of properties.
As the Company’s presentation currency is GBP, financial reporting is not materially affected by fluctuations in this currency. However, exchange rate adjustments are made to the Company’s share capital, which is recorded in DKK, and to its activities in Denmark, which are considered very insignificant.
Finance and liquidity risks
At year-end 2024, shareholder loans totalled £230m with expiry in December 2025. Agreements have been entered into with the Company’s credit institution for a £40m credit facility with expiry in September 2025, on which at year-end 2024 £14m was drawn. Consequently, the classification of these loan facilities is “current” per the balance sheet date. The loan facilities was extended in 2025 prior to signing of this annual report.3879910001 Events after the balance sheet dateNo significant events affecting the Financial statements have occurred subsequent to the financial yearEvents after the balance sheet dateThe shareholders have extended the loan agreement in 2025, on similar terms.
522850002 Other financial income2024
GBP'0002023
GBP'000Exchange rate adjustments606022954000-175140003 Proposed distribution of profit and loss2024
GBP'0002023
GBP'000Retained earnings(6)(18)(6)(18)-13455000-8655000-600071030002220002396000187640004 Financial assetsInvestments in group enterprises
GBP'000Cost beginning of year51,657Cost end of year51,657Revaluations beginning of year77,086Share of profit/loss for the year(18,900)Revaluations end of year58,186Carrying amount end of year109,843The fair value of investments in subsidiaries at 31 December 2024 is equivalent to the value of 100% of total equity at 31 December 2024 in the audited financial statements for Britannia Invest A/S.
It is assessed that total equity in Britannia Invest A/S is the most reliable indicator for the fair value of 100% of the shares. This method is applied as all material items in the balance sheet for Britannia Invest A/S at 31 December 2024 are measured at either fair value or at an amount corresponding to the fair value.
A specification of investments in subsidiaries is evident from the notes to the consolidated financial statements.342000-12520005 Contingent liabilitiesAll of the Company’s shareholders are liable to pay tax under the Danish Pension Investment Return Tax Act.
As
more than 90% of the Company’s assets (measured as an average for the year) were in the form of real
estate,
the Company is not liable to taxation in Denmark under the Danish Corporation Tax Act. The tax
liability lies with
the individual shareholders.2054000-259450006 Related parties with controlling interestThere are no parties with controlling interest in Britannia Invest Holding K/S, but below parties have significant
influence:
- Pension funds related to Pensionskassernes Administration A/S, Hellerup
- AP Pension, Copenhagen Ø
- Sampension Global Real Estate K/S, Hellerup
- The Management of Komplementarselskabet Britannia Invest Holding ApS (general partner), including the Executive Board and the Board of Directors hereof.
39400030840007 Non-arm’s length related party transactionsOnly non-arm's length related party transactions are disclosed in the annual report. No
such transactions were conducted during the financial year.1992500050500000Investments in group enterprisesInvestments in group enterprises are recognised and measured in the parent financial statements according to the fair-value
method. Adjustments are recognized directly in the statement of equity.Fair value is determined as the pro rata share of net assets in the subsidiary. The financial year's adjustments of the investments' fair value are recognised directly in equity.
-17477000474160001429000-21471000-18906000300000034105000023000000341050000-20000000014710000599000034105000074610007170006200021024000-630530002660002200700050430002705000036810000048286000615210001098070000019110001911000140000004635000234649000309800025638200025829300036810000050723000779900002437000-24370000-18906000482860006152100013455000-249100013018000394000199250000-65130005005000810000030950003418000600000050000001000000-241800050430001 Events after the balance sheet dateNo significant events affecting the Financial statements for 2024 have occurred subsequent to the financial year.
2 Property costs 2024 2023 ________________________________________________________________________________ __GBP'000_______ GBP'000
Management fee 745 1,028 Other property costs from maintenance, etc. 6.358 9,868 7.103_______ 10.896 3 Administrative expenses 2024 2023 GBP'000 GBP'000
Administrative expenses in Denmark 175 248 Administrative expenses in UK 108 109
Wages and Salaries 59 62 342 4194 Staff costsRemunerationof
Manage-ment
2024
GBP'000Remuneration of Manage- ment
2023
GBP'000Total amount for management categories59625962Staff costs are included in administrative expenses. There are no variables in wages and salaries. Total wages and
salaries relate to Management whose activities have a significant effect on the Company’s risk profile.
The company employs one FTE.
Remunerationof
Manage-ment
2024
GBP'000Remuneration of Manage- ment
2023
GBP'000Total amount for management categories59625962590005 Other financial income2024
GBP'0002023
GBP'000Exchange rate adjustments60Other financial income3882223942226 Other financial expenses2024GBP'0002023GBP'000Financial expenses from participating interests19,08217,433Other interest expenses7641,331Other financial expenses79019,92518,7647 Tax on profit/loss for the year2024
GBP'0002023
GBP'000Current tax2,6842,069Adjustment concerning previous years(1,255)(984)1,4291,0858 Proposed distribution of profit/loss2024
GBP'0002023
GBP'000Retained earnings(18,906)(63,053)(18,906)(63,053)-189060009 Property, plant and equipmentInvestment propertyGBP'000Cost beginning of year419,095Additions5,005Disposals(28,179)Cost end of year395,921Fair value adjustments beginning of year(61,495)Fair value adjustments for the year(13,455)Reversal regarding disposals20,079Fair value adjustments end of year(54,871)Carrying amount end of year341,050The calculation of fair value is based on the following rates of return:31.12.2024%31.12.2023
%Weighted average capital income7.026.27Highest rate of return11.2228.32Lowest rate of return6.072.94An increase of required rate of return by an average of 0.5 percentage points will reduce the total fair value by
GBP 23,8m.
The RoR is based on actual rents rather than market rent in accordance with previous years' practice.Management determined the fair value using the first year's rate of return model.A valuer was involved in the determining of the fair values of properties.10 Financial assetsOther receivables
GBP'000Cost beginning of year20,500Transfers(20,500)Cost end of year0Carrying amount end of year0Other receivables relates to receivable from the disposal of 76 and 80 Hammersmith Road. The receivable is to be received in 2025 and is displayed as a current asset as of the balance sheet date. 11 Non-current liabilities other than provisionsDue after
more than 12
months
2024
GBP'000Outstanding
after 5 years
2024
GBP'000Other payables1,9115471,91154712 Changes in working capital2024
GBP'0002023
GBP'000Increase/decrease in receivables850(19,327)Increase/decrease in trade payables etc.(3,341)1,813(2,491)(17,514)13 Contingent liabilitiesAll of the Group’s shareholders are liable to pay tax under the Danish Pension Investment Return Tax Act.
As
more than 90% of the Group’s assets (measured as an average for the year) were in the form of real
estate,
the Group is not liable to taxation in Denmark under the Danish Corporation Tax Act. The tax
liability lies with the individual shareholders. However, the Group is jointly and severally liable for tax payable on taxable income from the Group in relation to each of the shareholders.14 Assets charged and collateralThe Company has undrawn credit facilities of GBP 26m at credit institutions. Bank overdraft withdrawals are
secured by
way of properties of a carrying amount of GBP 169m in total.15 Non-arm’s length related party transactionsOnly non-arm's length related party transactions are disclosed in the annual report. No
such transactions were conducted during the financial year.16 SubsidiariesRegistered inCorporate
formOwnership
%Britannia Invest A/SDenmarkA/S100.00This annual report has been prepared in accordance with the provisions of the Danish Financial Statements Act
governing reporting class C enterprises (medium).The accounting policies applied to these consolidated financial statements and parent financial statements are consistent with those applied last year.Recognition and measurementAssets are recognised in the balance sheet when it is probable as a result of a prior event that future economic
benefits will flow to the Entity, and the value of the asset can be measured reliably.
Liabilities are recognised in the balance sheet when the Entity has a legal or constructive obligation as a
result of a prior event, and it is probable that future economic benefits will flow out of the Entity, and the
value of the liability can be measured reliably.
On initial recognition, assets and liabilities are measured at cost. Measurement subsequent to initial
recognition is effected as described below for each financial statement item.
Anticipated risks and losses that arise before the time of presentation of the annual report and that confirm
or invalidate affairs and conditions existing at the balance sheet date are considered at recognition and
measurement.
Income is recognised in the income statement when earned, whereas costs are recognised by the amounts
attributable to this financial year. Consolidated financial statementsThe consolidated financial statements comprise the Parent and the Group enterprises (subsidiaries) that are controlled by the Parent. Control is achieved by the Parent, either directly or indirectly, holding more than 50% of the voting rights or in any other way possibly or actually exercising controlling influence.Basis of consolidationThe consolidated financial statements are prepared on the basis of the financial statements of the Parent and its subsidiaries. The consolidated financial statements are prepared by combining uniform items. On consolidation, intra-group income and expenses, intra-group accounts and dividends as well as profits and losses on transactions between the consolidated enterprises are eliminated. The financial statements used for consolidation have been prepared applying the Group’s accounting policies.
Subsidiaries’ financial statement items are recognised in full in the consolidated financial statements.
Investments in subsidiaries are offset at the pro rata share of such subsidiaries’ net assets at the acquisition date, with net assets having been calculated at fair value.RevenueRevenue comprises of rental income from investment properties.
Fair value adjustments of investment propertyFair value adjustments of investment property comprise adjustments for the financial year of the Entity’s
investment properties measured at fair value at the balance sheet date.Property costsProperty costs include costs incurred to operate the Entity’s properties in the financial year, including repair
and maintenance costs, property tax and electricity, water and heating, which are not charged directly from
the lessee.
Administrative expensesAdministrative expenses comprise expenses incurred for the Entity’s administrative functions, including wages
and salaries for Management and the Board of DirectorsOther financial incomeOther financial income comprises interest income.
Other financial expensesOther financial expenses comprise interest expenses regarding liabilities related to the investment properties.
Tax on profit/loss for the yearTax for the year, which consists of current tax for the year and changes in deferred tax, is recognised in the
income statement by the portion attributable to the profit for the year and recognised directly in equity by the
portion attributable to entries directly in equity.
As the parent company is a limited partnership (K/S), it is considered a tax-transparent entity. Consequently, taxation of the company's taxable income will occur at the level of the ultimate owners. Investment propertyOn initial recognition, investment properties are measured at cost consisting of the acquisition price of the
properties plus directly related acquisition costs.
Subsequent to initial recognition, investment properties are measured at fair value which is equivalent to the
amount at which the individual property may be sold to an independent buyer at the balance sheet date.
An external valuer was involved in the calculation of the fair values of properties.Fair value is determined by applying the yield-based model as the calculated value in use of expected cash flows
from each property. The calculation is based on budgeted net earnings for the next year that has been adjusted
to normal earnings, and using a required yield rate that reflects current market yield rates for similar properties.
The value is adjusted for factors not reflected in normal earnings, for example, actual vacancy rate, major
refurbishments etc.
The financial year's adjustments of the properties’ fair value are recognised in the income statement.ReceivablesReceivables are measured at amortised cost, usually equalling nominal value, less writedowns for bad and
doubtful debts.Tax payable or receivableCurrent tax payable or receivable is recognised in the balance sheet, stated as tax computed on this year's
taxable income, adjusted for prepaid tax.CashCash comprises cash in hand and bank deposits.Other financial liabilitiesOther financial liabilities are measured at amortised cost, which usually corresponds to nominal value.Prepayments received from customersPrepayments received from customers comprise amounts received from customers prior to delivery of the
goods agreed or completion of the service agreed.Cash flow statementThe cash flow statement shows cash flows from operating, investing and financing activities, and cash
and cash equivalents at the beginning and the end of the financial year.
Cash flows from operating activities are presented using the indirect method and calculated as the operating
profit/loss adjusted for non-cash operating items, working capital changes, and financial income, financial expenses and income tax paid.
Cash flows from investing activities comprise payments in connection with acquisition and divestment of
enterprises, activities and fixed asset investments, and purchase, development, improvement and sale,
etc of intangible assets and property, plant and equipment, including acquisition of assets held under finance
leases.
Cash flows from financing activities comprise changes in the size or composition of the contributed capital
and related costs, and the raising of loans, inception of finance leases, repayments of interest-bearing
debt, purchase of treasury shares and payment of dividend.
Cash and cash equivalents comprise cash and short-term securities with an insignificant price risk less short-term bank loans.
The cash flow statement shows cash flows from operating, investing and financing activities, and cash
and cash equivalents at the beginning and the end of the financial year.
Cash flows from operating activities are presented using the indirect method and calculated as the operating
profit/loss adjusted for non-cash operating items, working capital changes, and financial income, financial expenses and income tax paid.
Cash flows from investing activities comprise payments in connection with acquisition and divestment of
enterprises, activities and fixed asset investments, and purchase, development, improvement and sale,
etc of intangible assets and property, plant and equipment, including acquisition of assets held under finance
leases.
Cash flows from financing activities comprise changes in the size or composition of the contributed capital
and related costs, and the raising of loans, inception of finance leases, repayments of interest-bearing
debt, purchase of treasury shares and payment of dividend.
Cash and cash equivalents comprise cash and short-term securities with an insignificant price risk less short-term bank loans.
trueGrundlag for konklusionKonklusion2025-06-272025-06-2733963556Deloitte Statsautoriseret RevisionspartnerselskabRevisionspåtegningRegnskabsklasse C, mellemstor virksomhed2023-12-312023-01-0133963556Weidekampsgade 6Deloitte Statsautoriseret Revisionspartnerselskab2300 København S2024-12-312024-01-01Britannia Invest Holding K/S42337862ÅrsrapportKøbenhavn S23006WeidekampsgadeKøbenhavnKøbenhavn K145916Frederiksberggade2025-06-30Frantz Palludan