KING PROPERTIES COMPANY LIMITED |
Notes to the Accounts |
for the year ended 31 March 2023 |
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1 |
Accounting policies |
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Basis of preparation |
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The accounts have been prepared under the historical cost convention and in accordance with FRS 102, The Financial Reporting Standard applicable in the UK and Republic of Ireland (as applied to small entities by section 1A of the standard). The company meets its working capital requirements out of rental income but also relies on support from Eversleigh Investment and Property Co Ltd, of which Mr King is a director and a person with significant control. At the balance sheet date, there is no loan agreement in place but the directors of Eversleigh Investment and Property Co Ltd have agreed to not seek repayment in full of this loan. The directors therefore consider that the accounts should be prepared on a going concern basis. |
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Rental income |
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Rental income represents the value of rents receivable under occupational leases and lease extension proceeds received during the year. Rental income is credited to the profit and loss account on a straight line basis over the terms of the leases. |
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Investment properties |
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Investment properties are included at the purchased cost, including directly attributable expenditure. Changes in fair value of the property are recognised through the profit and loss account of the period. Depreciation is not provided in respect of freehold investment properties. |
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Tangible fixed assets |
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Tangible fixed assets are measured at cost less accumulative depreciation and any accumulative impairment losses. Depreciation is provided on all tangible fixed assets, other than freehold land, at rates calculated to write off the cost, less estimated residual value, of each asset over its expected useful life, as follows: |
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Plant and machinery |
25% reducing balance |
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Investments |
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An entity is treated as a joint venture where the company holds a long term interest and shares control. The company's interest in a joint venture is carried at its share of the fair value of the joint venture and incorporates the fair values of the tangible fixed assets held within it. The company is entitled to a fixed percentage share of the results of the joint venture which is recognised through the profit and loss. Changes in fair value are included in the profit and loss. |
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Debtors |
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Short term debtors are measured at transaction price (which is usually the invoice price), less any impairment losses for bad and doubtful debts. Loans and other financial assets are initially recognised at transaction price including any transaction costs and subsequently measured at amortised cost determined using the effective interest method, less any impairment losses for bad and doubtful debts. |
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Creditors |
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Short term creditors are measured at transaction price (which is usually the invoice price). Loans and other financial liabilities are initially recognised at transaction price net of any transaction costs and subsequently measured at amortised cost determined using the effective interest method. |
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Taxation |
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A current tax liability is recognised for the tax payable on the taxable profit of the current and past periods. A current tax asset is recognised in respect of a tax loss that can be carried back to recover tax paid in a previous period. Deferred tax is recognised in respect of all timing differences between the recognition of income and expenses in the financial statements and their inclusion in tax assessments. Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Deferred tax is measured using the tax rates and laws that have been enacted or substantively enacted by the reporting date and that are expected to apply to the reversal of the timing difference, except for revalued land and investment property where the tax rate that applies to the sale of the asset is used. Current and deferred tax assets and liabilities are not discounted. |
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Provisions |
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Provisions (ie liabilities of uncertain timing or amount) are recognised when there is an obligation at the reporting date as a result of a past event, it is probable that economic benefit will be transferred to settle the obligation and the amount of the obligation can be estimated reliably. |
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2 |
Employees |
2023 |
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2022 |
Number |
Number |
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Average number of persons employed by the company |
3 |
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3 |
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3 |
Tangible fixed assets |
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Investment properties |
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Plant and machinery etc |
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Total |
£ |
£ |
£ |
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Cost |
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At 1 April 2022 |
370,000 |
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42,990 |
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412,990 |
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Disposals |
- |
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(42,990) |
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(42,990) |
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At 31 March 2023 |
370,000 |
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- |
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370,000 |
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Depreciation |
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At 1 April 2022 |
- |
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24,853 |
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24,853 |
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On disposals |
- |
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(24,853) |
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(24,853) |
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At 31 March 2023 |
- |
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- |
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- |
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Net book value |
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At 31 March 2023 |
370,000 |
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- |
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370,000 |
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At 31 March 2022 |
370,000 |
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18,137 |
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388,137 |
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Freehold land and buildings: |
2023 |
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2022 |
£ |
£ |
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Historical cost |
122,661 |
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122,661 |
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Cumulative depreciation based on historical cost |
- |
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- |
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122,661 |
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122,661 |
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The investment properties were valued on 31 March 2023 by a director, M J G King. A chartered surveyor, on an open market existing use basis. |
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4 |
Investments |
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Other |
investments |
£ |
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Cost |
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At 1 April 2022 |
1,571,057 |
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Additions |
12,000 |
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Revaluation |
(30,000) |
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At 31 March 2023 |
1,553,057 |
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The above represents the company's 20% interest in an unincorporated joint venture, Frimley Properties and a 20% interest in the issued share capital of Orient Estates Limited. The investment properties held by these businesses were valued on 31 March 2023 by a director, M J G King, a chartered surveyor, on an open market existing use basis. |
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At 31 March 2023 the net assets of Frimley Properties were £5,478,250 (2022: £5,629,002). |
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At 30 September 2022 the net assets of Orient Estates Limited were shown as £2,165,743. (30 September 2021: £3,372,271). |
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5 |
Debtors |
2023 |
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2022 |
£ |
£ |
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Amounts due from companies under common ownership and undertakings in which the company has a participating interest |
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474,301 |
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455,301 |
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Other debtors |
35,912 |
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2,997 |
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510,213 |
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458,298 |
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Included in Amounts due from companies under common ownership and undertakings in which the company has a participating interest is an amount of £238,600 due from Hoe Leasing Ltd. At 31 March 2023 Hoe Leasing Ltd financial statements showed net liabilities amounting to £(355,663) (2022: £(309,563)). Hoe Leasing Ltd is controlled and owned by M J G King. M J G King has given a personal guarantee to King Properties Company Limited to repay the debt if Hoe Leasing Ltd is unable to do so. |
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6 |
Creditors: amounts falling due within one year |
2023 |
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2022 |
£ |
£ |
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Bank loans and overdrafts |
985 |
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- |
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Obligations under finance lease and hire purchase contracts |
- |
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16,999 |
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Amounts due to companies under common ownership and undertakings in which the company has a participating interest |
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104,350 |
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100,000 |
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Taxation and social security costs |
8,995 |
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11,478 |
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Other creditors |
3,355 |
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9,521 |
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117,685 |
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137,998 |
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7 |
Creditors: amounts falling due after one year |
2023 |
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2022 |
£ |
£ |
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Amounts due to companies under common ownership and undertakings in which the company has a participating interest |
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185,265 |
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186,664 |
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8 |
Loans to directors |
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Description and conditions |
B/fwd |
Paid |
Repaid |
C/fwd |
£ |
£ |
£ |
£ |
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M J G King |
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Loan 1 |
2,997 |
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- |
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(2,997) |
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- |
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Loan 2 |
- |
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35,912 |
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- |
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35,912 |
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2,997 |
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35,912 |
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(2,997) |
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35,912 |
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The loan is unsecured and interest is payable at 2%. Accrued interest at 31 March 2023 was £514. |
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9 |
Related party transactions |
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2023 |
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2022 |
£ |
£ |
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During the year the company entered into transactions on a commercial basis with undertakings in which a director, M J G King, holds material interests, as follows: |
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Income: Joint Venture profit share from Frimley Properties |
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62,650 |
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64,019 |
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Expense: Eversleigh Investment and Property Co Ltd - Services |
2,280 |
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1,980 |
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Expense: Eversleigh Investment and Property Co Ltd - Loan interest |
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7,613 |
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9,173 |
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At the balance sheet date, included within debtors were amounts due to the company from the following related parties |
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Hertingfordbury Investments Ltd |
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235,701 |
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231,001 |
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Hoe Leasing Ltd |
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238,600 |
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222,500 |
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At the balance sheet date, included within creditors were amounts due from the company to the following related parties |
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Eversleigh Investment and Property Co Ltd |
144,465 |
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141,264 |
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Orient Estates Ltd |
140,800 |
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145,400 |
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10 |
Controlling party |
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The company is controlled by the director, M J G King. |
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11 |
Other information |
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KING PROPERTIES COMPANY LIMITED is a private company limited by shares and incorporated in England. Its registered office is: |
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124 Great North Road |
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Hatfield |
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Hertfordshire |
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AL9 5JN |