KHK One Limited
Financial Statements
For the year ended 31 December 2023
Pages for Filing with Registrar
Company Registration No. 12967470 (England and Wales)
KHK One Limited
Balance Sheet
As at 31 December 2023
Page 1
2023
2022
Notes
£
£
£
£
Current assets
Debtors
4
71,606,829
47,433,959
Cash at bank and in hand
1,397,031
847,021
73,003,860
48,280,980
Creditors: amounts falling due within one year
5
(1,611,202)
(33,358,862)
Net current assets
71,392,658
14,922,118
Creditors: amounts falling due after more than one year
6
(69,468,200)
(13,800,481)
Net assets
1,924,458
1,121,637
Capital and reserves
Called up share capital
7
1
1
Profit and loss reserves
1,924,457
1,121,636
Total equity
1,924,458
1,121,637
The directors of the company have elected not to include a copy of the profit and loss account within the financial statements.true
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 by the board of directors and authorised for issue on 28 March 2024 and are signed on its behalf by:
A Kent
Director
Company Registration No. 12967470
KHK One Limited
Statement of Changes in Equity
For the year ended 31 December 2023
Page 2
Share capital
Profit and loss reserves
Total
Notes
£
£
£
Balance at 1 January 2022
1
203,608
203,609
Year ended 31 December 2022:
Profit and total comprehensive income for the year
-
918,028
918,028
Balance at 31 December 2022
1
1,121,636
1,121,637
Year ended 31 December 2023:
Profit and total comprehensive income for the year
-
1,402,821
1,402,821
Dividends
-
(600,000)
(600,000)
Balance at 31 December 2023
1
1,924,457
1,924,458
KHK One Limited
Notes to the Financial Statements
For the year ended 31 December 2023
Page 3
1
Accounting policies
Company information
KHK One Limited is a private company limited by shares incorporated in England and Wales. The registered office is 7 Stratford Place, London, W1C 1AY
1.1
Accounting convention
These financial statements have been prepared in accordance with Section 1A of 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 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. The principal accounting policies adopted are set out below.
1.2
Going concern
The directors have a reasonable expectation that the Company has adequate resources to continue in operational existence for at least one year from the date of approval of these financial statements. This is supported by the Directorstrue' assessment of the Company's ability to settle its liabilities as they fall due. Due to the nature of the company’s activities the directors are confident that the current economic climate has not impacted the going concern status of the company. The company also has a revolving credit facility with a third party lender acting as a security agent which is used to finance the loans in issue. In assessing the ability of the company to continue as a going concern the company has also considered the level of security held against each loan in issue. The company has deemed the level of security held sufficient to cover the loans.
As a result the directors believe that the company will be able to continue in business and meet its liabilities as they fall due for a period of at least twelve months from the date of approval of the financial statements..
1.3
Turnover
Turnover represents arrangement fees and redemption fees on loan finance. Arrangement fees are recognised once loans are accepted by the borrowers and redemption fees are recognised when loans are redeemed.
Interest receivable represents interest on loan finance and is recognised using the effective interest method.
1.4
Financial instruments
The company only has financial instruments classified as basic and measured at amortised cost. The company has no financial instruments that are classified as 'other' or financial instruments measured at fair value.
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.
KHK One Limited
Notes to the Financial Statements (Continued)
For the year ended 31 December 2023
1
Accounting policies
(Continued)
Page 4
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.
1.5
Taxation
The tax expense represents the sum of the tax currently payable and deferred tax.
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.
KHK One Limited
Notes to the Financial Statements (Continued)
For the year ended 31 December 2023
Page 5
2
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 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
3
3
4
Debtors
2023
2022
Amounts falling due within one year:
£
£
Other debtors
71,515,292
47,133,548
Prepayments and accrued income
91,537
300,411
71,606,829
47,433,959
5
Creditors: amounts falling due within one year
2023
2022
£
£
Trade creditors
3,900
5,033
Corporation tax
432,127
220,053
Other creditors
1,175,175
33,133,776
1,611,202
33,358,862
KHK One Limited
Notes to the Financial Statements (Continued)
For the year ended 31 December 2023
Page 6
6
Creditors: amounts falling due after more than one year
2023
2022
£
£
Other creditors
69,468,200
13,800,481
7
Called up share capital
2023
2022
£
£
Ordinary share capital
Issued and fully paid
1 Ordinary share of £1
1
1
1
1
8
Audit report information
As the income statement has been omitted from the filing copy of the financial statements, the following information in relation to the audit report on the statutory financial statements is provided in accordance with s444(5B) of the Companies Act 2006:
The auditor's report was unqualified.
Senior Statutory Auditor:
Ian Matthews
Statutory Auditor:
Moore Kingston Smith LLP
9
Related party transactions
The company is a wholly owned subsidiary of KHK Capital Limited and has taken the exemption under FRS 102 not to disclose transactions within the group.
10
Parent company
The company is a wholly owned subsidiary of KHK Capital Limited, a company registered in England and Wales. The company registered office is 7 Stratford Place, London, W1C 1AY.
11
Charges
Shawbrook Bank Limited holds a fixed charge over all assets of the company.
TMF Trustee Limited holds two fixed charges over all assets of the company.
All charges are in relation to loan facilities owed to Shawbrook Bank Limited and TMF Trustee Limited.