Kooky Whetstone Limited
Unaudited Financial Statements
For the year ended 31 December 2021
For Filing with Registrar
Company Registration No. 12372332 (England and Wales)
Kooky Whetstone Limited
Contents
Page
Balance sheet
1 - 2
Notes to the financial statements
3 - 7
Kooky Whetstone Limited
Balance Sheet
As at 31 December 2021
Page 1
2021
2020
Notes
£
£
£
£
Fixed assets
Tangible assets
3
32,990
Investment properties
4
19,155,926
19,188,916
Current assets
Debtors
5
515,053
2,004,941
Cash at bank and in hand
174,624
10,808
689,677
2,015,749
Creditors: amounts falling due within one year
6
(578,652)
(53,365)
Net current assets
111,025
1,962,384
Total assets less current liabilities
19,299,941
1,962,384
Creditors: amounts falling due after more than one year
7
(19,863,909)
(2,011,707)
Net liabilities
(563,968)
(49,323)
Capital and reserves
Called up share capital
8
160
160
Profit and loss reserves
(564,128)
(49,483)
Total equity
(563,968)
(49,323)
The directors of the company have elected not to include a copy of the profit and loss account within the financial statements.true
For the financial year ended 31 December 2021 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.
The directors acknowledge their responsibilities for complying with the requirements of the Companies Act 2006 with respect to accounting records and the preparation of financial statements.
The members have not required the company to obtain an audit of its financial statements for the year in question in accordance with section 476.
These financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime.
Kooky Whetstone Limited
Balance Sheet (Continued)
As at 31 December 2021
Page 2
The financial statements were approved by the board of directors and authorised for issue on 7 September 2022 and are signed on its behalf by:
P Crocker
Director
Company Registration No. 12372332
Kooky Whetstone Limited
Notes to the Financial Statements
For the year ended 31 December 2021
Page 3
1
Accounting policies
Company information
Kooky Whetstone Limited is a private company limited by shares incorporated in England and Wales. The registered office is 6th Floor, 9 Appold Street, London, EC2A 2AP.
1.1
Accounting convention
These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006 as applicable to companies subject to the small companies regime. The disclosure requirements of section 1A of FRS 102 have been applied other than where additional disclosure is required to show a true and fair view.
The company has entered into an interest rate cap agreement which under FRS102 is classified as a financial instrument. FRS102 requires that the fair value of such financial instruments is recognised on the balance sheet and movements in fair value through the profit and loss account. The directors believe that recognising the financial instrument on the balance sheet would not provide a true and fair view of the company and its underlying business. Accordingly, the directors have opted to depart from the requirement of FRS102 in these respects. This departure from FRS102 is also a departure from corresponding requirements of the Companies Act 2006.
The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.
The financial statements have been prepared under the historical cost convention, modified to include investment properties at fair value. The principal accounting policies adopted are set out below.
1.2
Reporting period
The prior company's accounting period is for the 54 weeks to 31 December 2020 from its incorporation on 19 December 2019.
1.3
Turnover
Turnover comprises revenue recognised by the company in respect of rent receivable on properties held as investment property. Rent receivable is recognised in the period in which the income relates.
1.4
Tangible fixed assets
Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.
Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:
Fixtures and fittings
10% straight line
The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is credited or charged to profit or loss.
Kooky Whetstone Limited
Notes to the Financial Statements (Continued)
For the year ended 31 December 2021
1
Accounting policies
(Continued)
Page 4
1.5
Investment properties
Investment property, which is property held to earn rentals and/or for capital appreciation, is initially recognised at cost, which includes the purchase cost and any directly attributable expenditure. Subsequently it is measured at fair value at the reporting end date. Changes in fair value are recognised in profit or loss.
1.6
Impairment of fixed assets
At each reporting period end date, the company reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.
Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.
If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.
Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.
1.7
Cash and cash equivalents
Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.
1.8
Financial instruments
Basic financial instruments are held at cost. The company has no other financial instruments or basic financial instruments measured at fair value.
1.9
Equity instruments
Equity instruments issued by the company are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.
Kooky Whetstone Limited
Notes to the Financial Statements (Continued)
For the year ended 31 December 2021
1
Accounting policies
(Continued)
Page 5
1.10
Employee benefits
The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.
The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.
Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.
1.11
Foreign exchange
Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation in the period are included in profit or loss.
2
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2021
2020
Number
Number
Total
3
Tangible fixed assets
Plant and machinery etc
£
Cost
At 1 January 2021
Additions
33,836
At 31 December 2021
33,836
Depreciation and impairment
At 1 January 2021
Depreciation charged in the year
846
At 31 December 2021
846
Carrying amount
At 31 December 2021
32,990
At 31 December 2020
Kooky Whetstone Limited
Notes to the Financial Statements (Continued)
For the year ended 31 December 2021
Page 6
4
Investment property
2021
£
Fair value
At 1 January 2021
Additions
19,155,926
At 31 December 2021
19,155,926
The directors believe the fair value of investment property is not considered to be materially different to the acquisition cost.
Borrowing costs of £587,494 incurred during the development phase of investment property, have been capitalised in additions. Borrowing costs incurred after the investment property was completed and available to let are expensed through the profit and loss account .
5
Debtors
2021
2020
Amounts falling due within one year:
£
£
Trade debtors
121,605
Other debtors
393,448
44,096
515,053
44,096
2021
2020
Amounts falling due after more than one year:
£
£
Other debtors
1,960,845
Total debtors
515,053
2,004,941
Debtors over one year represents deposits, acquisition costs and finance costs in relation to property acquisitions which will complete in a subsequent accounting period.
6
Creditors: amounts falling due within one year
2021
2020
£
£
Trade creditors
2,269
500
Other creditors
576,383
52,865
578,652
53,365
Kooky Whetstone Limited
Notes to the Financial Statements (Continued)
For the year ended 31 December 2021
Page 7
7
Creditors: amounts falling due after more than one year
2021
2020
£
£
Bank loans and overdrafts
7,537,202
Other creditors
12,326,707
2,011,707
19,863,909
2,011,707
The long term bank loan is secured by a fixed charge over the investment property and a floating charge over the assets of the company.
8
Called up share capital
2021
2020
2021
2020
Ordinary share capital
Number
Number
£
£
Issued and not fully paid
Ordinary shares of £1 each
160
160
160
160
9
Related party transactions
At the period end, the company was due £nil (2020: £43,936) from companies under common control. This amount is included within other debtors due within one year. The balance is repayable on demand. No interest is being charged on this balance.
At the period end, the company owed £100,419 (2020: £nil) to companies under common control which is included within other creditors due within one year. The balance is repayable on demand. No interest is accruing on this balance.
At the year end, the company owed £12,326,707 (2020: £12,029,624) to companies under common control which is included within other creditors due more than one year. Interest and arrangement fees totaling £376,840 (2020: £130,697) have been charged in the period. Of this amount, £235,707 (2020: £130,697) has been capitalised in investment property additions in the year and £141,133 (2020: £nil) has been expensed in the year.