Company registration number 7945479 (England and Wales)
KNIGHT ARCHITECTURAL DESIGN LIMITED
UNAUDITED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 28 FEBRUARY 2023
PAGES FOR FILING WITH REGISTRAR
KNIGHT ARCHITECTURAL DESIGN LIMITED
CONTENTS
Page
Balance sheet
1
Notes to the financial statements
2 - 8
KNIGHT ARCHITECTURAL DESIGN LIMITED
BALANCE SHEET
AS AT
28 FEBRUARY 2023
28 February 2023
- 1 -
2023
2022
Notes
£
£
£
£
Fixed assets
Tangible assets
5
1,454
1,249
Current assets
Stocks
50,000
40,000
Debtors
6
153,209
124,438
Cash at bank and in hand
16,475
713
219,684
165,151
Creditors: amounts falling due within one year
7
(180,396)
(113,110)
Net current assets
39,288
52,041
Total assets less current liabilities
40,742
53,290
Creditors: amounts falling due after more than one year
8
(37,972)
(48,098)
Net assets
2,770
5,192
Capital and reserves
Called up share capital
9
110
110
Profit and loss reserves
2,660
5,082
Total equity
2,770
5,192

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

For the financial year ended 28 February 2023 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.

The director acknowledges his 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.

The financial statements were approved and signed by the director and authorised for issue on 13 October 2023
Mr Ian Knight
Director
Company registration number 7945479 (England and Wales)
KNIGHT ARCHITECTURAL DESIGN LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 28 FEBRUARY 2023
- 2 -
1
Accounting policies
Company information

Knight Architectural Design Limited is a private company limited by shares incorporated in England and Wales. The registered office is First Floor Unit 7, The Quarterdeck, Port Solent, Portsmouth, Hampshire, PO6 4TP.

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 financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.

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

1.2
Going concern

At the time of approving the financial statements, the director has a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Thus the director continues to adopt the going concern basis of accounting in preparing the financial statements.

 

The company following a court case against the company brought by the ARB, whilst the case has been concluded it has had a detrimental impact on the business and together with the pandemic has caused significant uncertainty and a reduction in business cashflow forecasts following a customer contract dispute for an amount due, The company will continue to trade in accordance with the directors expectations and following legal advice will consider the commercial viability of pursuing the amount outstanding once funds are made available to commence legal proceedings.

1.3
Turnover

Turnover is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business, and is shown net of VAT and other sales related taxes. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.

 

When cash inflows are deferred and represent a financing arrangement, the fair value of the consideration is the present value of the future receipts. The difference between the fair value of the consideration and the nominal amount received is recognised as interest income.

Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer (usually on dispatch of the goods), the amount of revenue can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the entity and the costs incurred or to be incurred in respect of the transaction can be measured reliably.

Revenue from contracts for the provision of professional services is recognised by reference to the stage of completion when the stage of completion, costs incurred and costs to complete can be estimated reliably. The stage of completion is calculated by comparing costs incurred, mainly in relation to contractual hourly staff rates and materials, as a proportion of total costs. Where the outcome cannot be estimated reliably, revenue is recognised only to the extent of the expenses recognised that it is probable will be recovered.

KNIGHT ARCHITECTURAL DESIGN LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 28 FEBRUARY 2023
1
Accounting policies
(Continued)
- 3 -
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
25% on cost
Computers
25% on cost

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.

Included in creditors amounts falling due over one year is borrowing taken in government back loans Covid -19 loans taken during the pandemic.

1.5
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.

1.6
Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition.

 

Stocks held for distribution at no or nominal consideration are measured at the lower of cost and replacement cost, adjusted where applicable for any loss of service potential.

At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.

KNIGHT ARCHITECTURAL DESIGN LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 28 FEBRUARY 2023
1
Accounting policies
(Continued)
- 4 -
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

The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.

 

Financial instruments are recognised in the company's balance sheet when the company becomes party to the contractual provisions of the instrument.

 

Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

Basic financial assets

Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.

Classification of 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 of its liabilities.

Basic financial liabilities

Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

 

Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

 

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

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.

1.10
Taxation

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

KNIGHT ARCHITECTURAL DESIGN LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 28 FEBRUARY 2023
1
Accounting policies
(Continued)
- 5 -
Current tax

The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account 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. The company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.

Deferred tax

Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.

 

The carrying amount of deferred tax assets is reviewed at each reporting end 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. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset when the company has a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.

1.11
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.

1.12
Retirement benefits

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

1.13
Leases

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

1.14
Government grants

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

 

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

KNIGHT ARCHITECTURAL DESIGN LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 28 FEBRUARY 2023
1
Accounting policies
(Continued)
- 6 -
1.15
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
Judgements and key sources of estimation uncertainty

In the application of the company’s accounting policies, the director is 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 underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

3
Employees

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

2023
2022
Number
Number
Total
7
9
4
Director's remuneration and dividends
2023
2022
£
£
Remuneration paid to directors
22,688
7,752
Dividends paid to directors
60,000
50,000
KNIGHT ARCHITECTURAL DESIGN LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 28 FEBRUARY 2023
- 7 -
5
Tangible fixed assets
Fixtures and fittings
Computers
Total
£
£
£
Cost
At 1 March 2022
2,693
19,026
21,719
Additions
-
0
1,384
1,384
Disposals
-
0
(833)
(833)
At 28 February 2023
2,693
19,577
22,270
Depreciation and impairment
At 1 March 2022
2,693
17,777
20,470
Depreciation charged in the year
-
0
554
554
Eliminated in respect of disposals
-
0
(208)
(208)
At 28 February 2023
2,693
18,123
20,816
Carrying amount
At 28 February 2023
-
0
1,454
1,454
At 28 February 2022
-
0
1,249
1,249
6
Debtors
2023
2022
Amounts falling due within one year:
£
£
Trade debtors
153,199
124,328
Other debtors
10
110
153,209
124,438
7
Creditors: amounts falling due within one year
2023
2022
£
£
Trade creditors
-
0
1,629
Corporation tax
40,356
26,690
Other taxation and social security
139,254
84,791
Other creditors
786
-
0
180,396
113,110
8
Creditors: amounts falling due after more than one year
2023
2022
£
£
Bank loans and overdrafts
37,972
48,098
KNIGHT ARCHITECTURAL DESIGN LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 28 FEBRUARY 2023
- 8 -
9
Called up share capital
2023
2022
2023
2022
Ordinary share capital
Number
Number
£
£
Issued and not fully paid
Ordinary A of £1 each
75
75
75
75
Ordinary B of £1 each
25
25
25
25
Ordinary C of £1 each
10
10
10
10
110
110
110
110

The Ordinary C shares remained unpaid.

At the date of approving the accounts the director following the year end date has acquired the Ordinary B shares and therefor is 100% controlling party

10
Operating lease commitments
Lessee

At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, as follows:

2023
2022
£
£
12,000
12,000
11
Related party transactions

The company was under the control of the director by virtue of his interest in the issued share capital of the company.

 

During the year the director charged £416 for use of home as office where his studio is located for apportioned costs for use of home as office.

 

No further transactions were undertaken that are required to be disclosed under financial reporting standards for smaller entities other than those disclosed above with directors advances and credits note.

2023-02-282022-03-01false13 October 2023CCH SoftwareCCH Accounts Production 2023.300No description of principal activityMr Ian Knightfalse79454792022-03-012023-02-2879454792023-02-2879454792022-02-287945479core:FurnitureFittings2023-02-287945479core:ComputerEquipment2023-02-287945479core:FurnitureFittings2022-02-287945479core:ComputerEquipment2022-02-287945479core:CurrentFinancialInstrumentscore:WithinOneYear2023-02-287945479core:CurrentFinancialInstrumentscore:WithinOneYear2022-02-287945479core:Non-currentFinancialInstrumentscore:AfterOneYear2023-02-287945479core:Non-currentFinancialInstrumentscore:AfterOneYear2022-02-287945479core:CurrentFinancialInstruments2023-02-287945479core:CurrentFinancialInstruments2022-02-287945479core:ShareCapital2023-02-287945479core:ShareCapital2022-02-287945479core:RetainedEarningsAccumulatedLosses2023-02-287945479core:RetainedEarningsAccumulatedLosses2022-02-287945479core:ShareCapitalOrdinaryShares2023-02-287945479core:ShareCapitalOrdinaryShares2022-02-287945479bus:Director12022-03-012023-02-287945479core:FurnitureFittings2022-03-012023-02-287945479core:ComputerEquipment2022-03-012023-02-2879454792021-03-012022-02-287945479core:FurnitureFittings2022-02-287945479core:ComputerEquipment2022-02-2879454792022-02-287945479core:WithinOneYear2023-02-287945479core:WithinOneYear2022-02-287945479core:Non-currentFinancialInstruments2023-02-287945479core:Non-currentFinancialInstruments2022-02-287945479bus:PrivateLimitedCompanyLtd2022-03-012023-02-287945479bus:SmallCompaniesRegimeForAccounts2022-03-012023-02-287945479bus:FRS1022022-03-012023-02-287945479bus:AuditExemptWithAccountantsReport2022-03-012023-02-287945479bus:FullAccounts2022-03-012023-02-28xbrli:purexbrli:sharesiso4217:GBP