La Française Real Estate Managers Germany Deutsche Zweigniederlassung der La Française Group UK Limited

Frankfurt

Befreiender Jahresabschluss zum Geschäftsjahr vom 01.01.2023 bis zum 31.12.2023

LA FRANÇAISE GROUP UK LIMITED

London/UK

Company registration number 04253400 (England and Wales)

ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023

COMPANY INFORMATION

Directors	D K Rendall
	P J Balfour
	L Jacquier-Laforge
	PALM Verdier
Secretary	M Ngai
Company number	04253400
Registered office (up to 1 February 2024)	78 Brook Street
	London
	United Kingdom
	W1K 5EF
Registered office (from 1 February 2024)	6th Floor
	17 St Swithin's Lane
	London
	United Kingdom
	EC4N 8AL
Auditor	Mazars LLP
	Chartered Accountants and Statutory Auditor
	The Pinnacle
	160 Midsummer Boulevard
	Milton Keynes
	MK9 1FF
Bankers	BNP Paribas
	10 Harewood Avenue
	London
	NW1 6AA
	BNP Paribas
	Europa-Allee 12
	60327 Frankfurt am Main

CONTENTS

Directors' report

Directors' responsibilities statement

Independent auditor's report to the members of La Française Group UK Limited

Statement of comprehensive income

Statement of financial position

Statement of changes in equity

Notes to the financial statements

DIRECTORS' REPORT FOR THE YEAR ENDED 31 DECEMBER 2023

The directors present their annual report and financial statements for the year ended 31 December 2023.

Principal activities

La Frangaise Group UK Limited ("the company") has two divisions Real Estate Managers (REM) and Sustainable Investments Research (SIR). The principal activity of REM is that of real estate investment advice and management. The principal activity of SIR is the provision of research into investment strategies on a sustainable basis.

Results and dividends

The results for the year are set out on page 7.

No dividends were paid in the current or prior year. The directors do not recommend payment of a final dividend.

Directors

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

	D K Rendall
	P J Balfour
	L Jacquier-Laforge
	PALM Verdier

Important events affecting the company

The company had a challenging year in the real estate market with rising debt costs and downward pressure on pricing. There were positive initiatives across the business however the economic and property market backdrop was challenging, resulting in fewer transactions. With key personnel being on board in Singapore and in the UK, the strategy is to seek new sources of inward investment into Europe from Singapore and Australia. The company has no external debt finance. Group La Francaise shareholders loans were converted into share capital during the year, as such the inflationary pressure had little or no impact on the company's financing cost.

La Française Group is not present in either Ukraine or Russia, it does not have teams present in the places of conflict; direct exposure in these two countries and in Belarus is non-existent. Furthermore, the Group has no assets in the Central Bank of Russia.

The Group is committed to the implementation of and compliance with the restrictive measures and individual and economic sanctions adopted by the European Union in response to Russia's military aggression against Ukraine. In particular, it has a robust risk management system that enables it to closely monitor the flows of funds between its clients and Russia in order to combat money laundering, tax fraud and the financing of terrorism. The Group is also more vigilant in terms of cyber security.

Going Concern

The company is part of the of the La Frangaise Group ('the Group') which, along with its ultimate controlling party Credit Mutuel Alliance Federal which reported a profit of EUR 4.1 billion for 2023, the Group is financially strong.

The company has reported a loss in the current year, with the increase in share capital this year, the company has in excess of over EUR 5.6m net assets. In addition, the company has access to the considerable financial resources of the immediate parent and ultimate holding companies. The directors are satisfied that the company is able to meet its obligations and liabilities in the next twelve months as they fall due.

The directors, having assessed the financial position of the company and responses of the directors of the company's immediate parent company (Groupe La Française) to their enquiries, have no reason to believe that a material uncertainty exists that may cast significant doubt about the ability of the company to continue as a going concern. Groupe La Française has confirmed its willingness to make available sufficient funds to enable the company to continue for at least 12 months from the date of signing of the financial statements.

On the basis of their assessment of the company's financial position and of the enquiries made of the directors of Groupe La Française, the company's directors have a reasonable expectation that the company will be able to continue in operational existence for the foreseeable future. Thus, they continue to adopt the going concern basis of accounting in preparing the annual financial statements.

Statement of disclosure to auditor

So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the company's auditor is unaware. Additionally, each director has taken all the necessary steps that they ought to have taken as a director in order to make themselves aware of all relevant audit information and to establish that the company's auditor is aware of that information.

The auditor, Mazars LLP, is deemed to be reappointed under section 485 of the Companies Act 2006.

Branches outside of the UK

The company has a branch in Germany.

The company has opted to claim exemption under provisions of small companies regime from preparing a strategic report. Further, the Directors' Report has been prepared in accordance with the provisions applicable to companies entitled to the small companies exemption.

On behalf of the board

Date: 28 FEBRUARY 2024

P J Balfour, Director

DIRECTORS' RESPONSIBILITIES STATEMENT FOR THE YEAR ENDED 31 DECEMBER 2023

The directors are responsible for preparing the annual report and the financial statements in accordance with applicable law and regulations.

Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law), including Financial Reporting Standard 101: Reduced Disclosure Framework ("FRS 101"). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to:

•	select suitable accounting policies and then apply them consistently;
•	make judgements and accounting estimates that are reasonable and prudent;
•	state whether applicable UK Accounting Standards, including FRS 101, have been followed, subject to any material departures disclosed and explained in the financial statements; and
•	prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company's transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF LA FRANÇAISE GROUP UK LIMITED

Opinion

We have audited the financial statements of La Française Group UK Limited (the 'company') for the year ended 31 December 2023 which comprise the Statement of Comprehensive Income, the Statement of Financial Position, the Statement of Changes in Equity and notes to the financial statements, including material accounting policy information.

The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including FRS 101 "Reduced Disclosure Framework" (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

•	give a true and fair view of the state of the company's affairs as at 31 December 2023 and of its loss for the year then ended;
•	have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
•	have been prepared in accordance with the requirements of the Companies Act 2006

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the "Auditor's responsibilities for the audit of the financial statements" section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.

Other information

The other information comprises the information included in the annual report, other than the financial statements and our auditor's report thereon. The directors are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of the audit:

•	the information given in the directors' report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
•	the directors' report has been prepared in accordance with applicable legal requirements.

Matters on which we are required to report by exception

In light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the directors' report.

We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:

•	adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
•	the financial statements are not in agreement with the accounting records and returns; or
•	certain disclosures of directors' remuneration specified by law are not made; or
•	we have not received all the information and explanations we require for our audit; or
•	the directors were not entitled to prepare the financial statements in accordance with the small companies regime and take advantage of the small companies' exemption in preparing the directors' report and from the requirement to prepare a strategic report.

Responsibilities of directors

As explained more fully in the directors' responsibilities statement set out on page 3, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the directors are responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.

Auditor's responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the 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 (UK) 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 the financial statements.

The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below.

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud.

Based on our understanding of the company and its industry, we considered that non-compliance with the following laws and regulations might have a material effect on the financial statements: employment regulation, health and safety regulation, anti-bribery and data protection.

To help us identify instances of non-compliance with these laws and regulations, and in identifying and assessing the risks of material misstatement in respect to non-compliance, our procedures included, but were not limited to:

•	Inquiring of management and, where appropriate, those charged with governance, as to whether the company is in compliance with laws and regulations, and discussing their policies and procedures regarding compliance with laws and regulations;
•	Communicating identified laws and regulations to the engagement team and remaining alert to any indications of non-compliance throughout our audit; and
•	Considering the risk of acts by the company which were contrary to applicable laws and regulations, including fraud.

We also considered those laws and regulations that have a direct effect on the preparation of the financial statements, such as tax legislation and the Companies Act 2006.

In addition, we evaluated the directors' and management's incentives and opportunities for fraudulent manipulation of the financial statements, including the risk of management override of controls, and determined that the principal risks related to posting manual journal entries to manipulate financial performance, management bias through judgements and assumptions in significant accounting estimates, in particular in relation to revenue recognition which we pinpointed to the cut-off, and significant one-off or unusual transactions.

Our audit procedures in relation to fraud included but were not limited to:

•	Making enquiries of the directors and management on whether they had knowledge of any actual, suspected or alleged fraud;
•	Gaining an understanding of the internal controls established to mitigate risks related to fraud;
•	Discussing amongst the engagement team the risks of fraud; and
•	Addressing the risks of fraud through management override of controls by performing journal entry testing.

There are inherent limitations in the audit procedures described above and the primary responsibility for the prevention and detection of irregularities including fraud rests with management. As with any audit, there remained a risk of non-detection of irregularities, as these may involve collusion, forgery, intentional omissions, misrepresentations or the override of internal controls.

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.

Use of the audit report

This report is made solely to the company's members as a body in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's members as a body for our audit work, for this report, or for the opinions we have formed.

29-Feb-2024

Sarah Cooke, Senior Statutory Auditor for and on behalf of Mazars LLP, Chartered Accountants and Statutory Auditor

The Pinnacle

160 Midsummer Boulevard

Milton Keynes

MK9 1FF

STATEMENT OF COMPREHENSIVE INCOME

FOR THE YEAR ENDED 31 DECEMBER 2023

		2023	2022
	Notes	€	€
Turnover	4	8,537,956	9,321,773
Cost of sales		(1,197,703)	(1,101,477)
Gross profit		7,340,253	8,220,296
Operating expenses		(9,172,779)	(7,991,641)
Operating (loss)/profit	5	(1,832,526)	228,655
Interest receivable and similar income	8	-	1,179
Interest payable and similar expenses	9	(58,810)	(71,722)
(Loss)/gain on foreign exchange		(55,788)	158,779
(Loss)/profit before taxation		(1,947,124)	316,891
Tax on (loss)/profit	10	(108,800)	53,071
(Loss)/profit and total comprehensive (loss)/ income for the financial year	20	(2,055,924)	369,962

The accompanying notes are an integral part of these financial statements.

All amounts derive from continuing activities.

STATEMENT OF FINANCIAL POSITION AS AT 31 DECEMBER 2023

		2023		2022 as restated
	Notes	€	€	€	€
Fixed assets
Intangible assets	13		-		994,384
Tangible fixed assets	14		1,731,076		1,046,522
Investments	11		1,280,662		1,300,385
			3,011,738		3,341,291
Current assets
Debtors	15	4,010,824		3,963,880
Cash at bank and in hand		2,497,555		2,551,629
		6,508,379		6,515,509
Creditors: amounts falling due within one year	16	(1,461,665)		(1,627,952)
Net current assets			5,046,714		4,887,557
Total assets less current liabilities			8,058,452		8,228,848
Creditors: amounts falling due after more than one year	16		(2,438,063)		(4,597,278)
Net assets			5,620,389		3,631,570
Capital and reserves
Called up share capital	19		8,728,676		4,683,933
Foreign exchange reserve	20		394,195		394,195
Retained loss	20		(3,502,482)		(1,446,558)
Total equity			5,620,389		3,631,570

The accompanying notes are an integral part of these financial statements.

The financial statements were approved by the board of directors and authorised for issue on 28 FEBRUARY 2024 and are signed on its behalf by:

P J Balfour, Director

STATEMENT OF CHANGES IN EQUITY FOR THE YEAR ENDED 31 DECEMBER 2023

		Called up share capital	Foreign exchange reserve	Retained loss	Total
	Notes	€	€	€	€
Balance at 1 January 2022		4,683,933	394,195	(1,816,520)	3,261,608
Year ended 31 December 2022:
Profit and total comprehensive income for the year		-	-	369,962	369,962
Balance at 31 December 2022		4,683,933	394,195	(1,446,558)	3,631,570
Year ended 31 December 2023:
Loss and total comprehensive loss for the year		-	-	(2,055,924)	(2,055,924)
Transactions with owners in their capacity as shareholders:
Issue of share capital	19	4,044,743	-	-	4,044,743
Balance at 31 December 2023		8,728,676	394,195	(3,502,482)	5,620,389

The accompanying notes are an integral part of these financial statements.

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023

1 Accounting policies

General information

La Française Group UK Limited ('the company') is a private company limited by shares domiciled and incorporated in England and Wales. The registered office is 6th Floor, 17 St Swithin's Lane, London, United Kingdom, EC4N 8AL.

The company's principal activities and nature of its operations are disclosed in the Directors' Report.

Basis of preparation

These financial statements are prepared in accordance with Financial Reporting Standard 101 'Reduced Disclosure Framework' (FRS 101).

In preparing these financial statements, the company applies the recognition, measurement and disclosure requirements of UK-adopted international accounting standards ("IFRS"), amended where necessary in order to comply with Companies Act 2006, including the provisions of the Large and Medium-sized Companies and Groups (Accounts and Reports) Regulations 2008.

The financial statements have been prepared under the historical cost convention. The functional and presentation currency is Euros. Monetary amounts in these financial statements are rounded to the nearest whole €1.

The company has taken advantage of the exemption in section 401 of the Companies Act 2006 from the requirement to prepare consolidated financial statements. Consequently, these financial statements present the financial position and financial performance of the company as a single entity.

Reduced disclosures

In accordance with FRS 101, the following exemptions from the disclosure requirements of IFRS have been applied in the preparation of these financial statements and, where relevant, equivalent disclosures have been made in the publicly available Group accounts of Caisse Régionale du Crédit Mutuel Nord Europe in which these accounts are consolidated:

•	The requirement to publish a Statement of Cash Flows and Cash Flow information, in accordance with IAS 7, 'Statement of Cash Flows' and IAS 1 'Presentation of Financial Statements';
•	Disclosure of the objectives, policies and processes for managing capital, in accordance with IAS 1, 'Presentation of Financial Statements';
•	Inclusion of an explicit and unreserved statement of compliance with IFRS, in accordance with IAS 1, 'Presentation of Financial Statements';
•	Disclosure of key management compensation, in accordance with IAS 24, 'Related Party Disclosures';
•	Disclosure of the categories of financial instrument, nature and extent of risks arising on these financial instruments and the effect of financial instruments on the Statement of Comprehensive Income in accordance with IFRS 7, 'Financial Instruments: Disclosures'
•	The requirements in IAS 24, 'Related party disclosures' to disclose related party transactions entered into between two or more wholly owned members of a group;
•	The requirements in IFRS 2, 'Share-based payment' to disclose how the fair value of goods or services was calculated, the total expense recognised in the year and the carrying amount of liabilities arising;
•	Disclosure of the future impact of new IFRSs in issue but not yet effective at the reporting date; and
•	Comparative period reconciliations for share capital and fixed assets.

Going concern

The company is part of the of the La Française Group ('the Group') which, along with its ultimate parent company Credit Mutuel Alliance Federal which reported a profit for 2023, the Group is financially strong.

The company has reported a loss in the current year, with the increase in share capital this year, the company has in excess of over EUR 5.6m net assets. In addition, the company has access to the considerable financial resources of the immediate parent and ultimate holding companies. The directors are satisfied that the company is able to meet its obligations and liabilities in the next twelve months as they fall due.

The directors, having assessed the financial position of the company and responses of the directors of the company's immediate parent company (Groupe La Française) to their enquiries, have no reason to believe that a material uncertainty exists that may cast significant doubt about the ability of the company to continue as a going concern. Groupe La Française has confirmed its willingness to make available sufficient funds to enable the company to continue for at least 12 months from the date of signing of the financial statements.

On the basis of their assessment of the company's financial position and of the enquiries made of the directors of Groupe La Françise, the company's directors have a reasonable expectation that the company will be able to continue in operational existence for the foreseeable future. Thus, they continue to adopt the going concern basis of accounting in preparing the annual financial statements.

Turnover and revenue recognition

Revenue is recognised at an amount that reflects the consideration to which the company is expected to be entitled in exchange for transferring goods or services to a customer. For each contract with a customer, the company: identifies the contract with a customer; identifies the performance obligations in the contract; determines the transaction price which takes into account estimates of variable consideration and the time value of money; allocates the transaction price to the separate performance obligations on the basis of the relative stand-alone selling price of each distinct good or service to be delivered; and recognises revenue when or as each performance obligation is satisfied in a manner that depicts the transfer to the customer of the goods or services promised.

Turnover is derived from the provision of investment management and other related services and is accounted for net of Value Added Tax ('VAT'). Revenue is recognised when the performance obligation has been satisfied by transferring the promised services to the customer. At contract inception, the transaction price is determined, being the amount that the company expects to receive for transferring the promised services. The company recognises revenue relating to investment management services on a straight-line basis over the period during which the service is provided. The company recognises 'transaction fee' revenue, relating to its performance obligation to facilitate and executive investments on behalf of its customers, at a point in time when it has fulfilled the obligation to the customer.

Some contacts with customers include a 'performance fee' receivable on disposal of the investment under management, or variable management fees which depend on a hurdle, such as a specific level of return. The receipt of these fees is dependent on achieving a minimum return and the amount received also depends on the level of return over that minimum. These fees are variable consideration for the services being provided over the period of the investment management services. The expected amount of the fees is estimated at contract inception, and then at each subsequent reporting date the estimate is included in the transaction price and recognised straight line over the period during which the services are provided. The estimate of these fees is constrained so that it is only included in the transaction price to the extent that it is highly probable that a significant reversal in the amount of cumulative revenue recognised will not occur when the uncertainty associated with the variable consideration is subsequently resolved.

Turnover is also derived from proprietary thematic, investment strategies for global large-capitalisation equities which the company has created. The company's investment strategy has several analytical inputs, which together form its Strategically Aware Investment research and advisory services. In exchange for the research and advisory services, the company generally receives fees equal to a percentage of the Assets under Management of the relevant products. The revenue from these services is recognised on a straight-line basis over the period during which the service is provided.

Foreign currencies

Transactions in foreign currencies are recorded at the rate ruling at the date of the transaction. Monetary assets and liabilities denominated in foreign currencies are re-translated at the rate of exchange ruling at the reporting date. All such exchange differences are taken to profit or loss. The directors have chosen to present this as a separate line underneath operating profit.

Taxation

Current tax, including UK corporation tax and foreign tax, is provided at amounts expected to be paid (or recovered) using the tax rates and laws that have been enacted or substantively enacted by the reporting date. The tax if payable is based on taxable profit for the period. Taxable profit differs from net profit as reported in the Statement of Comprehensive Income 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.

Deferred tax is the tax expected to be payable or recoverable on differences between the carrying amounts of assets and liabilities in the financial statements and the corresponding tax bases used in the computation of taxable profit, and is accounted for using the balance sheet liability method. Deferred tax liabilities are generally recognised for all taxable temporary differences and deferred tax assets are recognised to the extent that it is probable that taxable profits will be available against which deductible temporary differences can be utilised.

The carrying amount of deferred tax assets is reviewed at each reporting date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered.

Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised based on tax laws and rates that have been enacted or substantively enacted at the reporting date.

The measurement of deferred tax liabilities and assets reflects the tax consequences that would follow from the manner in which the company expects, at the end of the reporting period, to recover or settle the carrying amount of its assets and liabilities.

Deferred tax assets and liabilities are offset when there is a legally enforceable right to set off current tax assets against current tax liabilities and when they relate to income taxes levied by the same taxation authority and the company intends to settle its current tax assets and liabilities on a net basis.

Financial instruments

Financial assets and financial liabilities are recognised when the company becomes party to the contractual provisions of the instrument.

Financial assets

Trade debtors, other debtors and amounts owed by fellow group undertakings

Trade debtors are initially measured at their transaction price. Amounts owed by fellow group undertakings, accrued income and other debtors are initially measured at fair value, which is normally equivalent to transaction price, plus transaction costs. Trade and other debtors are held to collect the contractual cash flows which are solely payments of principal and interest. Therefore, these debtors are subsequently measured at amortised cost, being the amount initially recognised less amounts settled and any impairment losses.

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 its liabilities.

Trade creditors, other creditors and amounts owed to fellow group undertakings

Trade creditors, other creditors and amounts owed to fellow group undertakings are initially recognised at fair value, which is normally equivalent to transaction price, less transaction costs and subsequently measured at amortised cost, being the amount initially recognised less amounts settled.

Equity

Equity instruments issued are recorded at fair value on initial recognition net of transaction costs.

Derecognition of financial assets (including write-offs) and financial liabilities

A financial asset (or part thereof) is derecognised when the contractual rights to cash flows expire or are settled, or when the contractual rights to receive the cash flows of the financial asset and substantially all the risks and rewards of ownership are transferred to another party.

When there is no reasonable expectation of recovering a financial asset, it is derecognised ('written off). The gain or loss on derecognition of financial assets measured at amortised cost is recognised in profit or loss.

A financial liability (or part thereof) is derecognised when the obligation specified in the contract is discharged, cancelled or expires. Any difference between the carrying amount of a financial liability (or part thereof) that is derecognised and the consideration paid is recognised in profit or loss.

Impairment of financial assets

An impairment loss is recognised for the expected credit losses on financial assets when there is an increased probability that the counterparty will be unable to settle an instrument's contractual cash flows on the contractual due dates, a reduction in the amounts expected to be recovered, or both.

The probability of default and expected amounts recoverable are assessed using reasonable and supportable past and forward-looking information that is available without undue cost or effort. The expected credit loss is a probability-weighted amount determined from a range of outcomes and takes into account the time value of money.

Trade debtors

For trade debtors, expected credit losses are measured by applying an expected loss rate to the gross carrying amount. The expected loss rate comprises the risk of a default occurring and the expected cash flows on a default based on the aging of the debtor. The risk of a default occurring always takes into consideration all possible default events over the expected life of those debtors ("the lifetime expected credit losses"). Different provision rates and periods are used based on groupings of historic credit loss experience by product type, customer type and location.

Impairment of other debtors measured at amortised cost

The measurement of impairment losses depends on whether the financial asset is 'performing', 'underperforming' or 'non-performing' based on the company's assessment of increases in the credit risk of the financial asset since its initial recognition and any events that have occurred before the year-end which have a detrimental impact on cash flows. The financial asset moves from 'performing' to 'underperforming' . when the increase in credit risk since initial recognition becomes significant.

In assessing whether credit risk has increased significantly, the company compares the risk of default at the year-end with the risk of a default when the financial asset was originally recognised using reasonable and supportable past and forward-looking information that is available without undue cost. The risk of a default occurring takes into consideration default events that are possible within 12 months of the year-end ("the 12- month expected credit losses") for 'performing' financial assets, and all possible default events over the expected life of those debtors ("the lifetime expected credit losses") for 'underperforming' financial assets.

Impairment losses and any subsequent reversals of impairment losses are adjusted against the carrying amount of the debtor and are recognised in profit or loss.

Investments

Investments in subsidiaries are shown at cost less provision for impairment.

The company assesses investments for impairment whenever events or changes in circumstances indicate that the carrying value of an investment may not be recoverable. If any such indication of impairment exists, the company makes an estimate of the recoverable amount. If the recoverable amount of the cash-generating unit is less than the value of the investment, the investment is considered to be impaired and is written down to its recoverable amount. An impairment loss is recognised immediately in profit or loss.

Intangible fixed assets - intellectual property rights

Intangible assets with finite useful lives that are acquired separately are carried at cost less accumulated amortisation and accumulated impairment losses. Amortisation has been provided in order to write off the intellectual property rights asset over an estimated useful life of ten years.

Intangible fixed assets - computer software

Costs associated with maintaining computer software programmes are recognised as an expense as incurred. Development costs that are directly attributable to the design and testing of identifiable and unique software products controlled by the company are recognised as intangible assets when the following criteria are met:

•	It is technically feasible to complete the software product so that it will be available for use;
•	Management intends to complete the software product and use or sell it and there is an ability to use or sell the software product;
•	It can be demonstrated how the software product will generate probable future economic benefits;
•	Adequate technical, financial and other resources to complete the development and to use or sell the software product are available; and
•	The expenditure attributable to the software product during its development can be reliably measured.

Directly attributable costs that are capitalised as part of the software product include the software development employee costs and an appropriate portion of relevant overheads. Other development expenditures that do not meet these criteria are recognised as an expense as incurred. Development costs previously recognised as an expense are not recognised as an asset in a subsequent period.

Computer software development costs recognised as assets are amortised over their estimated useful lives. Amortisation commences when the asset is available for use.

Impairment of intangible assets

The carrying value of intangible assets are reviewed at the end of each reporting period for any indications of impairment. The carrying value is impaired if it is higher than the recoverable amount where the recoverable amount is the higher of the value in use (based on discounted expected future cash flows) and the amount expected to be received in the market for the asset, less costs required to sell. In the case of intellectual property rights, if a market value cannot easily be obtained, the recoverable amount is calculated using a value in use calculation. If impairment is deemed necessary an impairment charge is recognised immediately in profit or loss.

Tangible fixed assets

Tangible fixed assets are stated at cost, net of depreciation. Depreciation is provided on all tangible fixed assets, at rates calculated to write off the cost, less estimated residual value, of each asset on a straight-line basis over its expected useful life as follows:

Leasehold improvements	5 years
Furniture, fixtures and fittings	5 years
Computer equipment	Ranges between 3 - 23 years

Initial and subsequent measurement of the right-of-use asset

A right-of-use asset is recognised at commencement of the lease and initially measured at the amount of the lease liability, plus any incremental costs of obtaining the lease and any lease payments made at or before the leased asset is available for use by the company.

The right-of-use asset is subsequently measured at cost less accumulated depreciation and any accumulated impairment losses. The depreciation methods applied are as follows:

Right-of-use property assets	Over the remaining lease term of between 1-5 years
Right-of-use vehicle assets	Over the remaining lease term of between 1-2 years

The right-of-use asset is adjusted for any re-measurement of the lease liability and lease modifications, as set out below in the lease accounting policy.

Leases

On commencement of a contract (or part of a contract) which gives the company the right to use an asset for a period of time in exchange for consideration, the company recognises a right-of-use asset and a lease liability unless the lease qualifies as a 'short-term' lease or a 'low-value' lease.

Short-term leases

Where the lease term is twelve months or less and the lease does not contain an option to purchase the leased asset, lease payments are recognised as an expense on a straight-line basis over the lease term.

Leases of low-value assets

Where the underlying asset in a lease is 'low-value', lease payments are recognised as an expense on a straight-line basis over the lease term.

Initial measurement of the lease liability

The lease liability is initially measured at the present value of the lease payments during the lease term discounted using the company's incremental borrowing rate because the interest rate implicit in the lease cannot be readily determined.

The lease term is the non-cancellable period of the lease plus extension periods that the company is reasonably certain to exercise and termination periods that the company is reasonably certain not to exercise.

Lease payments include fixed payments, less any lease incentives receivable, variable lease payments dependant on an index or a rate and any residual value guarantees. Variable lease payments are initially measured using the index or rate when the leased asset is available for use.

Subsequent measurement of the lease liability

The lease liability is subsequently increased for a constant periodic rate of interest on the remaining balance of the lease liability and reduced for lease payments. Interest on the lease liability is recognised in profit or loss.

Re-measurement of the lease liability

The lease liability is adjusted for changes arising from the original terms and conditions of the lease that change the lease term, the company's assessment of its option to purchase the leased asset, the amount expected to be payable under a residual value guarantee and/or changes in lease payments due to a change in an index or rate. The adjustment to the lease liability is recognised when the change takes effect and is adjusted against the right-of-use asset, unless the carrying amount of the right-of-use asset is reduced to nil, when any further adjustment is recognised in profit or loss.

Adjustments to the lease payments arising from a change in the lease term or the company's assessment of its option to purchase the leased asset are discounted using a revised discount rate. The revised discount rate is calculated as the company's incremental borrowing rate at the date of the reassessment because the interest rate implicit in the lease cannot be readily determined.

Lease modifications

A lease modification is a change that was not part of the original terms and conditions of the lease and is accounted for as a separate lease if it increases the scope of the lease by adding the right to use one or more additional assets with a commensurate adjustment to the payments under the lease.

For a lease modification not accounted for as a separate lease, the lease liability is adjusted for the revised lease payments, discounted using the revised discount rate at the date of the modification

Where the lease modification decreases the scope of the lease, the carrying amount of the right-of-use asset is reduced to reflect the partial or full termination of the lease. Any difference between the adjustment to the lease liability and the adjustment to the right-of-use asset is recognised in profit or loss.

For all other lease modifications, the adjustment to the lease liability is recognised as an adjustment to the right-of-use asset.

Retirement benefits

The company operates a defined contribution scheme for the benefit of its employees. Contributions payable are charged to the profit or loss in the year they are payable.

Employee benefits

The costs of short-term employee benefits are recognised as a liability and an expense as incurred. The best estimate of the expenditure required to settle an obligation for termination benefits is recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

Share-based payments

The cost of share-based payment arrangements with employees is measured by reference to the fair value of equity instruments on the date they are granted and recognised as an expense.

Fair value is determined by using appropriate valuation models, taking into account the terms and conditions upon which the equity instruments were granted.

Vesting conditions, other than market performance conditions, are not factored into the initial estimate of the fair value at the grant date. They are taken into account by adjusting the number of equity instruments included in the measurement of the transaction, so that the amount recognised for services received as consideration for the equity instruments granted shall be based on the number of equity instruments that eventually vest. On a cumulative basis, no expense is recognised for equity instruments that do not vest because of a failure to satisfy non-market performance or service conditions.

Provisions

Provisions are recognised when the company has a legal or constructive present obligation as a result of a past event, it is probable that the company will be required to settle that obligation and a reliable estimate can be made of the amount of the obligation.

The amount recognised as a provision is the best estimate of the consideration required to settle the present obligation at the reporting end date, taking into account the risks and uncertainties surrounding the obligation.

Where the effect of the time value of money is material, the amount expected to be required to settle the obligation is recognised at present value. When a provision is measured at present value, the unwinding of the discount is recognised as a finance cost in profit or loss in the period in which it arises.

2 Critical accounting judgements and key sources of estimation uncertainty

In the application of the company's accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying value of assets and liabilities are outlined below:

Areas of judgement

The lease liability is initially measured at the present value of lease payments that are not paid at the commencement date, discounted by using the rate implicit in the lease. As this implicit rate in the lease cannot be readily determined, the Company has used its incremental borrowing rate to discount the future lease payments. The incremental borrowing rate used is reflective of the rate at which the Company's ultimate parent has borrowed capital.

Accounting estimates and assumptions

The assessment of the useful life of the company's intellectual property intangible asset (refer to accounting policies and note 12) is a significant estimate. Determining whether the asset is impaired requires a calculation of the asset's recoverable amount. Determination of the recoverable amount requires a calculation of the asset's value in use and its fair value. The value in use calculations require the company to estimate the future cash flows expected to arise from the asset and a suitable discount rate in order to calculate present value. No impairment has been recognised to date on this asset. The carrying value of the intangible asset at the reporting date is €nil (2022: €994,384). Refer to note 12 for further details.

Bonuses are provided to employees based on Group La Française (the "GLF") policy and La Française group (the "Group") performance over the financial year. GLF provided a best estimate based on current financial information of the Group as at the reporting date.

3 Prior period adjustment

Changes to the statement of financial position

During the year, the company revisited the computation of its Right of use property assets and corresponding lease liabilities and found that recoverable VAT had been included, and have therefore restated the current and comparative period.

The effect of the restatement is to reduce the net book value of Right-of-use property assets and the carrying value of lease liabilities.

The prior period adjustment has no impact on the total equity at 1 January 2022 or 31 December 2022, nor any impact on the profit and total comprehensive income for the year ended 31 December 2022 or on the line items in the comparative statement of comprehensive income.

The line items affected in the comparative statement of financial position are shown below:

	At 31 December 2022
	Previously reported	Adjustment	As restated
	€	€	€
Fixed assets
Tangible fixed assets cost	3,349,465	(388,504)	2,960,961
Tangible fixed assets accumulated depreciation	(2,020,110)	105,671	(1,914,439)
Creditors due within one year
Lease liabilities	(482,585)	50,606	(431,979)
Creditors due after one year
Lease liabilities	(825,050)	232,227	(592,823)
Net assets	3,631,570	-	3,631,570
Capital and reserves
Total equity	3,631,570	-	3,631,570

4 Turnover

	2023	2022
	€	€
Turnover analysed by class of business
Investment management fees	5,691,600	5,122,741
Transaction fees	824,319	995,554
Performance fees	-	467,761
Other including rental income	650,794	827,211
Research income	1,371,243	1,908,506
	8,537,956	9,321,773

	2023	2022
	€	€
Turnover analysed by geographical market
United Kingdom	3,995,057	5,263,822
Germany	4,542,899	4,057,951
	8,537,956	9,321,773

The main classes of revenue relate to investment management fees, transaction fees, and research income (refer to turnover accounting policy).

At the reporting date in the prior year, performance fees receivable at the end of a contract on disposal of an investment of €467,761 had been recognised as revenue. In the current year, no amount of these fees have been estimated, included in the transaction price or recognised as revenue. This was on the basis that the directors either estimated the final fees to be €nil, or constrained the amount included in the transaction price to €nil on the grounds that receipt of the fee was not highly probable (refer to turnover accounting policy). This judgement was determined with reference to the performance of the relevant investments under management in those contracts at the reporting date.

Revenue from research and advisory services are billed on a quarterly or annual basis and recognised straight line over the period of the services; this is in line with the approach taken to revenue recognition (refer to turnover accounting policy).

The only balances recognised, in respect of the application of IFRS 15 to the company's contracts with customers, as at 31 December 2022 and as at 31 December 2023 were trade debtors and amounts due from fellow group undertakings and participating interests. There were no impairment provisions or impairment losses recognised on these debtor balances in the current or prior year.

5 Operating (loss)/profit

	2023	2022
Operating (loss)/profit for the year is stated after charging:	€	€
Impairment of investment in subsidiaries (see note 10)	8,802	27,124
Fees payable to the company's auditor for the audit of the company's financial statements	41,450	43,635
Depreciation of property, plant and equipment
-owned assets (see note 13)	15,177	17,273
-right-of-use-assets (see note 13)	431,761	493,567
Amortisation of intangible assets (see note 12)	331,461	331,462
Loss on disposal of intangible assets (see note 12)	662,923	-
Short-term leases, excluding leases with a term of one month or less	42,270	42,270

6 Staff costs

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

	2023 Number	2022 Number
London and Frankfurt offices	26	24

Their aggregate remuneration comprised:

	2023	2022
	€	€
Wages and salaries	2,914,098	2,740,619
Social security costs	432,973	370,654
Pension costs	199,509	177,207
	3,546,580	3,288,480

7 Directors' remuneration

	2023	2022
	€	€
Remuneration for qualifying services	393,589	520,700
Company pension contributions to defined contribution schemes	78,477	79,540
	472,066	600,240

The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 2 (2022 - 3).

The number of directors who exercised share options during the year was 0 (2022 - 1).

Remuneration disclosed above include the following amounts paid to the highest paid director:

	2023	2022
	€	€
Remuneration for qualifying services	294,376	353,771
Company pension contributions to defined contribution schemes	43,335	40,475

8 Interest receivable and similar income

	2023	2022
	€	€
Interest income
Other interest income	-	1,179

9 Interest payable and similar expenses

	2023	2022
	€	€
Interest on financial liabilities measured at amortised cost:
Interest payable to group undertakings	46,490	49,008
Interest on lease liabilities	12,320	22,714
	58,810	71,722

10 Taxation

	2023	2022
	€	€
Current tax
UK corporation tax on profits for the current period	-	54,276
Foreign taxes and reliefs	-	(34,593)
Total current tax	-	19,683
Deferred tax
Origination and reversal of temporary differences	100,293	(48,757)
Changes in tax rates	-	(15,397)
Adjustment in respect of prior periods	8,507	(8,600)
Total deferred tax	108,800	(72,754)
Total tax charge/(credit)	108,800	(53,071)

The total tax charge/(credit) for the year included in the Statement of Comprehensive Income can be reconciled to the (loss)/profit before tax multiplied by the standard rate of tax as follows:

	2023	2022
	€	€
(Loss)/profit before taxation	(1,947,124)	316,891
Expected tax (credit)/charge based on a corporation tax rate of 23.52% (2022: 19.00%)	(457,974)	60,209
Effect of expenses not deductible in determining taxable profit	83,557	17,697
Income not taxable	(20,117)	(177)
Change in unrecognised deferred tax assets	631,022	-
Adjustment in respect of prior years	-	(34,593)
Deferred tax adjustments in respect of prior years	8,507	(8,600)
Foreign exchange differences	-	(2,110)
Adjustment to brought forward values	-	(133,534)
Fixed asset differences	237,278	63,435
Remeasurement of deferred tax for changes in tax rates	(31,407)	(15,398)
Timing not recognised in the computation	(342,066)	-
Taxation charge/(credit) for the year	108,800	(53,071)

In the Spring Budget 2021, the Government announced measures to support economic recovery as a result of the ongoing COVID-19 pandemic. These included an increase to the UK's main corporation tax rate to 25%, which was effected from 1 April 2023.

11 Investments

	2023	2022
	€	€
Investments in subsidiaries	1,280,662	1,300,385

Movements in fixed asset investments

	Shares in subsidiaries
	€
Cost
At 1 January 2023	1,437,815
Disposals	(10,921)
At 31 December 2023	1,426,894
Impairment
At 1 January 2023	(137,430)
Impairment losses	(8,802)
At 31 December 2023	(146,232)
Carrying amount
At 31 December 2023	1,280,662
At 31 December 2022	1,300,385

At the reporting date in the current and prior year, an impairment review was carried out of the company's investment in LF Real Estate Partners International Investments LLP ('the LLP') because there were indicators of impairment. The LLP's principal activity is that of an investor in the Pan-European Urban Retail Fund ("PURetail") Sub-Fund A, a specialised investment fund established in Luxembourg. The principal asset of the LLP is its holding in this fund which is recognised at fair value in the LLP's financial statements. Under the members' agreement, the company is entitled to a share of the LLP's investment income from the fund and a share of any fair value gains on the fund, it is also responsible for funding the LLP's operating costs; the recoverable amount of the company's investment in the LLP has been calculated on a value in use basis by estimating future cash flows on this basis. Management consider 'fair value less costs to sell' to be less than the value in use on that date. The impairment recognised in the year was €7,871 (2022: €27,124) and the carrying value of the company's investment in the LLP at the reporting date is €16,878 (2022: €24,749).

On 31 March 2023, the company disposed of their full shareholding of €10,921 in relation to LF Real Estate Partners International Investments Lux SARL as this entity was liquidated.

12 Subsidiaries

Details of the company's subsidiaries at 31 December 2023 are as follows:

Name of undertaking	Registered office	Class of shares held	% Held Direct
LF Real Estate Partners International Investments LLP	78 Brook Street, London, W1K 5EF, United Kingdom	Ordinary	99.00
La Francaise Group Korea Limited	36/F 3IFC, 10, Gukjegeumyung-ro, Yeongdeungpogu, Seoul, 135-984 Korea	Ordinary	100.00
La Francaise Group Singapore Pte. Limited	182 Cecil Street, #33-01 Frasers Tower, Singapore	Ordinary	100.00

13 Intangible fixed assets

	Development costs	Intellectual Property Rights	Total
	€	€	€
Cost
At 1 January 2023	34,199	7,064,302	7,098,501
Write offs	-	(7,064,302)	(7,064,302)
At 31 December 2023	34,199	-	34,199
Amortisation and impairment
At 1 January 2023	34,199	6,069,918	6,104,117
Charge for the year	-	331,461	331,461
Eliminated on write offs	-	(6,401,379)	(6,401,379)
At 31 December 2023	34,199	-	34,199
Carrying amount
At 31 December 2023	-	-	-
At 31 December 2022	-	994,384	994,384

The intellectual property rights comprised various proprietary databases holding in-depth analyses of sustainability measures of listed companies. Also included were a proprietary investment model and various research pieces in Thought Leadership.

The intellectual property rights were deemed to have a useful life of ten years, as in the opinion of the directors this represented the period over which the asset was expected to generate cash inflows for the company. The amortisation charge for the year is recognised within operating expenses. The company wrote off its intellectual property rights in the year.

The total cumulative impairment on the company's intellectual property rights (as inherited from the transferor company) was €3,270,964 at the reporting date in the current and prior year. The last impairment review in the transferor company was carried out during the year ended 31 December 2017 because there were indicators of impairment. The recoverable amount of the intellectual property rights was estimated based on 'fair value less costs to sell' using the price paid for the shares acquired as the basis for estimating fair value. Management considered 'fair value less costs to sell' to be more than the value in use on that date. A further impairment review was not deemed to be required in any subsequent year, and management of the company did not consider that an impairment review was required at 31 December 2022.

14 Tangible fixed assets

	Right-of-use property in assets as restated	Leasehold improvements	Furniture, fixtures and fittings	Computer equipment	Right-of-use vehicle assets	Total as restated
	€	€	€	€	€	€
Cost
At 1 January 2023 as restated	2,487,279	98,154	124,284	26,844	224,400	2,960,961
Additions	1,073,868	14,406	5,989	-	50,505	1,144,768
Disposals	-	-	-	-	(29,946)	(29,946)
At 31 December 2023	3,561,147	112,560	130,273	26,844	244,959	4,075,783
Accumulated depreciation
At 1 January 2023 as restated	1,566,362	96,304	72,876	24,491	154,406	1,914,439
Charge for the year	379,946	3,947	10,785	445	51,815	446,938
Eliminated on disposal	-	-	-	-	(16,670)	(16,670)
At 31 December 2023	1,946,308	100,251	83,661	24,936	189,551	2,344,707
Carrying amount
At 31 December 2023	1,614,839	12,309	46,612	1,908	55,408	1,731,076
At 31 December 2022 as restated	920,917	1,850	51,408	2,353	69,994	1,046,522

15 Debtors

	2023	2022
	€	€
Trade debtors	187,725	12,677
Amounts owed by fellow group undertakings	1,506,056	600,807
Other debtors	480,888	443,681
Prepayments and accrued income	1,702,636	2,664,396
	3,877,305	3,721,561
Deferred tax asset (see note 17)	133,519	242,319
	4,010,824	3,963,880

Amounts owed by fellow group undertakings are unsecured, interest free and have no fixed date of repayment. These amounts are repayable on demand.

16 Creditors

	Due within one year		Due after one year
	2023	2022 as restated	2023	2022 as restated
	€	€	€	€
Trade creditors	74,794	196,565	-	-
Amounts owed to fellow group undertakings	-	-	1,169,959	4,004,455
Accruals	234,968	165,256	-	-
Corporation tax	-	54,276	-	-
Other taxation and social security	114,937	137,221	-	-
Lease liabilities	414,376	431,979	1,268,104	592,823
Other creditors	622,590	642,655	-	-
	1,461,665	1,627,952	2,438,063	4,597,278

In the prior year, a new intercompany funding agreement was signed. Amounts owed to fellow group undertakings are unsecured, are subject to an interest rate of 3 month Euribor + 1.50% and are repayable on demand at any time following 31 March 2027.

17 Deferred taxation

The following are the major deferred tax liabilities and assets recognised by the company and movements thereon during the current and prior reporting period.

	ACAs	Tax losses	Short term timing difference	Total
	€	€	€	€
Asset at 1 January 2022	(14,318)	179,758	4,125	169,565
Deferred tax movements in prior year
Credit to profit or loss	2,898	58,360	11,496	72,754
Asset at 1 January 2023	(11,420)	238,118	15,621	242,319
Deferred tax movements in current year
Charge to profit or loss	(1,605)	(103,118)	(4,077)	(108,800)
Asset at 31 December 2023	(13,025)	135,000	11,544	133,519

The company has an unrecognised deferred tax asset in respect of unused tax losses of €631,023 (2022 - €nil) that is being carried forward to offset against future taxable profits. A deferred tax asset has not been recognised in respect of these losses as there is insufficient certainty over the timing of when the losses will be utilised.The losses remain available for offset against future taxable profits and the directors will consider the recognition of these in future years.

18 Retirement benefit schemes

	2023	2022
Defined contribution schemes	€	€
Charge to profit or loss in respect of defined contribution schemes	199,509	177,207

The company operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the company in an independently administered fund.

Contributions totalling £17,611 (2022: £11,584) were payable to the fund at the year end and are included in creditors.

19 Share capital

	2023	2022	2023	2022
Ordinary share capital	Number	Number	€	€
Issued and fully paid
Ordinary shares of £1 each	7,441,629	3,869,165	8,728,676	4,683,933

During the year, the company issued 3,572,464 ordinary shares of £1 each resulting in an increase of share capital of €4,044,743

The company's ordinary shares, which carry no right to fixed income, each carry the right to one vote at general meetings of the company. Share issues have been translated to the presentational currency at the historic rates on the dates of issue (refer to accounting policies).

20 Profit and loss reserves

Retained earnings

Retained earnings represents cumulative profit and loss net of distributions to owners.

Foreign exchange reserve

Accumulated gains and losses arising on translation of the results, assets and liabilities into the presentational currency.

21 Leases

Lease commitments for short-term leases at 31 December were as follows:

	2023	2022
	€	€
Serviced office lease	3,560	3,560

The maturity of the gross contractual undiscounted cash flows due on the company's lease liabilities is set out below based on the period between 31 December and the contractual maturity date.

	2023	2022 As restated
Land and buildings	€	€
Within one year	291,902	381,349
Between one and five years	1,394,328	601,634
	1,686,230	982,983

	2023	2022
Operating leases apart from land and buildings	€	€
Within one year	24,546	58,594
Between one and five years	32,326	11,593
	56,872	70,187

22 Related party transactions

During the current year, La Française Group UK Finance Limited (LFGF UK), a fellow group undertaking, submitted group VAT for the company to the total of €13,001 (2022: €nil). At the year end, the VAT balance due to LFGF UK from the company was €5,219 (2022: €nil).

Additionally, the company invoiced €153,810 (2022: €145,667) to LFGF UK in relation to HQ cost recharges and €567,451 (2022: €501,752) in relation to employee cost recharges. As at 31 December 2023, LFGF UK owed €40,800 (2022: €nil) in regards to HQ costs and €230,195 (2022: €nil) in regards to employee costs to the company.

LF Real Estate Partners International Lux SARL is a subsidiary of the company. During the year, the company recharged management fees of €nil (2022: €139,973) and performance fees of €nil (2022: €467,761). At the reporting date, €nil (2022: €nil) was due from LF Real Estate Partners International Lux SARL.

The company has taken advantage of the exemption not to disclose transactions between wholly-owned members of the group.

23 Share-based payments

The company participates in a group share-based payment arrangement whereby certain of its employees receive 'free shares' in an intermediate parent company. The only condition is that the employee must work for a certain period before being granted the share for €nil consideration. Under the 2017 plan the period was three years and under 2018 and 2019 plans the period was two years. During the prior year, the last of the plan was paid and the arrangements are no longer active.

24 Parent undertakings

The company's immediate parent company and the smallest group to consolidate these financials is Groupe La Française, a company incorporated in France. Copies of the financial statements can be obtained from the French Registry of Commerce and Companies.

The parent company of the largest group until 31 December 2023 which included the company was Caisse Régionale du Crédit Mutuel Nord Europe (CRCMNE), a company incorporated in France. With effect from 1 January 2024, the ultimate controlling party changed to Groupe Credit Mutuel Alliance Federale, a body corporate incorporated in France. The registered office of Groupe Credit Mutuel Alliance Federale is 4 rue Frédéric-Guillaume Raiffeisen Strasbourg.