Company registration number 04334155 (England and Wales)
KITEWOOD HOLDINGS LIMITED
ANNUAL REPORT AND CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 APRIL 2023
KITEWOOD HOLDINGS LIMITED
COMPANY INFORMATION
Directors
Mr J Faith
Mr D Faith
Mr P O Van Reyk
Ms R M Van Reyk
Mr S Millgate
Mr A N Meredith
Secretary
Mrs S T Nicklen
Company number
04334155
Registered office
7 Dacre Street
London
England
SW1H 0DJ
Auditor
HJS (Reading) Limited
3 Richfield Place
Richfield Avenue
Reading
Berkshire
RG1 8EQ
KITEWOOD HOLDINGS LIMITED
CONTENTS
Page
Chairman's report
1
Strategic report
2
Directors' report
4
Directors' responsibilities statement
3
Independent auditor's report
5 - 7
Statement of comprehensive income
8
Group balance sheet
9
Company balance sheet
10 - 11
Group statement of changes in equity
12
Company statement of changes in equity
13
Notes to the financial statements
14 - 23
KITEWOOD HOLDINGS LIMITED
CHAIRMAN'S STATEMENT
FOR THE YEAR ENDED 30 APRIL 2023
- 1 -

I am pleased to report on another strong set of results that reflect our selective investment strategy, despite the latest macro-economic inflation pressures coming through.

Our gross rental income reflects a fully let position, targeted upon the lower end of market range on individual properties adding to the security of income position. Our void position reflects also the lower end of the market average.

 

Whilst there is still a little lag from the 'Covid' downturn, the primary cost arises through financing. Our exposure to rate rises is partly mitigated by our hedging policy which is constantly under review.

 

In summary

 

 

As previously reported, we adopt a conservative funding policy, our bank leveraged exposure is 38% of asset value at the balance sheet date. The bank loans underpinning the assets at the year-end stands at £23.4m (2022: £21.79m).

 

We continue to look for further sound investment opportunities that will provide long term investment growth for the business.

John Faith
Chairman
16 January 2024
KITEWOOD HOLDINGS LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 30 APRIL 2023
- 2 -

The Directors present the strategic report for the year ended 30 April 2023.

Fair review of the business

The business has continued with its investment strategy during the year. The investment portfolio now stands at £61.9m (2022: £61.8m).

 

The underlying results for the year are as follows and are more fully set out in the Financial Report:

 

 

 

2023

2022

 

£ m

£ m

Operating pre Tax Profit

1.96

1.75

Purchase & Revaluations

0.33

7.54

Net Asset Value of Group

28.80

27.80

 

The Directors have restated the Group’s investment portfolio, having due regard to open market values achievable on its PRS stock, whilst it has used Lambert Hampton Smith guide values on its commercial portfolio.

Principal risks and uncertainties

The company maintains a strategy to mitigate key risks in freehold and long-leasehold property and the perceived financial risks are:

 

 

Finance

 

The macro-economic impacts from oil price rises, global shortage of goods (due to the pandemic and Brexit) and latterly the war in Ukraine, are now feeding through into the UK economy with inflationary impacts leading to rising bank of England base rates.

 

The company took advantage of extending its loan deal with Lloyds at a reduced margin, which together with new hedging, should insulate the business in part from interest risks.

By order of the board

Mr P Van Reyk
Director
16 January 2024
KITEWOOD HOLDINGS LIMITED
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 30 APRIL 2023
- 3 -

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). 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 group and company, and of the profit or loss of the group for that period. In preparing these financial statements, the Directors are required to:

 

 

The Directors are responsible for keeping adequate accounting records that are sufficient to show and explain the group’s and company’s transactions and disclose with reasonable accuracy at any time the financial position of the group and 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 group and company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

KITEWOOD HOLDINGS LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 30 APRIL 2023
- 4 -

The Directors present their annual report and financial statements for the year ended 30 April 2023.

Principal activities

The principal activity of the group continued to be that of property investment.

Directors

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

Mr J Faith
Mr D Faith
Mr P O Van Reyk
Ms R M Van Reyk
Mr S Millgate
Mr A N Meredith
Results and dividends

No ordinary dividends were paid. The Directors do not recommend payment of a further dividend.

Auditor

HJS (Reading) Limited were appointed as auditor to the group and in accordance with section 485 of the Companies Act 2006, a resolution proposing that they be re-appointed will be put at a General Meeting.

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 auditor of the company is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the auditor of the company is aware of that information.

Small companies exemption

This report has been prepared in accordance with the provisions applicable to companies entitled to the small companies exemption.

By order of the board
Mrs S T Nicklen
Secretary
16 January 2024
KITEWOOD HOLDINGS LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF KITEWOOD HOLDINGS LIMITED
- 5 -
Opinion

We have audited the financial statements of Kitewood Holdings Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 30 April 2023 which comprise the group statement of comprehensive income, the group balance sheet, the company balance sheet, the group statement of changes in equity, the company statement of changes in equity and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

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 group and parent 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 group's and parent 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 our audit:

KITEWOOD HOLDINGS LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF KITEWOOD HOLDINGS LIMITED
- 6 -
Matters on which we are required to report by exception

In the light of the knowledge and understanding of the group and parent company and their 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:

 

Responsibilities of Directors

As explained more fully in the Directors' responsibilities statement, 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 parent 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 parent 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 these financial statements.

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

Based on our understanding of the company and industry, we identified that the principal risks of noncompliance with laws and regulations related to breaches of UK regulatory principles, such as those governed by the relevant Landlord/tenancy regulations within the UK. We also considered the laws and regulations which have a direct impact on the financial statements such as the Companies Act 2006.

 

We evaluated management's incentives and opportunities for fraudulent manipulation of the financial statements (including the risk of override of controls), and determined that the principal risks were related to management bias in accounting estimates and judgemental areas of the financial statements.

 

Audit procedures performed by the audit engagement team included:

 

KITEWOOD HOLDINGS LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF KITEWOOD HOLDINGS LIMITED
- 7 -

There are inherent limitations in the audit procedures described above. We are less likely to become aware of instances of non-compliance with laws and regulations that are not closely related to events and transactions reflected in the financial statements. Also, the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentations, or though collusion.

A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.

Use of our 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.

Mark H Rogers FCCA (Senior Statutory Auditor)
For and on behalf of HJS (Reading) Limited
17 January 2024
Chartered Accountants and Statutory Auditor
3 Richfield Place
Richfield Avenue
Reading
Berkshire
RG1 8EQ
KITEWOOD HOLDINGS LIMITED
GROUP STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 30 APRIL 2023
- 8 -
2023
2022
Notes
£
£
Turnover
2,654,490
2,517,445
Cost of sales
(566,508)
(686,915)
Gross profit
2,087,982
1,830,530
Administrative expenses
(124,783)
(81,527)
Operating profit
1,963,199
1,749,003
Interest receivable and similar income
4
527
3
Interest payable and similar expenses
(1,078,441)
(926,501)
Fair value gains and losses on investment properties
6
-
0
3,115,900
Profit before taxation
885,285
3,938,405
Tax on profit
(175,553)
(2,708,548)
Profit for the financial year
709,732
1,229,857
Other comprehensive income
Cash flow hedges gain arising in the year
331,022
193,903
Tax relating to other comprehensive income
(82,756)
(39,814)
Total comprehensive income for the year
957,998
1,383,946
Profit for the financial year is all attributable to the owners of the parent company.
Total comprehensive income for the year is all attributable to the owners of the parent company.
KITEWOOD HOLDINGS LIMITED
GROUP BALANCE SHEET
AS AT
30 APRIL 2023
30 April 2023
- 9 -
2023
2022
Notes
£
£
£
£
Fixed assets
Tangible assets
5
85,771
127,113
Investment properties
6
61,807,006
61,806,976
61,892,777
61,934,089
Current assets
Debtors
10
1,731,911
3,144,294
Cash at bank and in hand
1,325,782
2,977,033
3,057,693
6,121,327
Creditors: amounts falling due within one year
11
(1,064,535)
(6,828,235)
Net current assets/(liabilities)
1,993,158
(706,908)
Total assets less current liabilities
63,885,935
61,227,181
Creditors: amounts falling due after more than one year
12
(26,906,000)
(25,288,000)
Provisions for liabilities
(8,222,692)
(8,139,936)
Net assets
28,757,243
27,799,245
Capital and reserves
Called up share capital
20
20
Hedging reserve
285,423
37,157
Other reserves
23,803,176
23,803,176
Profit and loss reserves
4,668,624
3,958,892
Total equity
28,757,243
27,799,245

These financial statements have been prepared in accordance with the provisions applicable to groups and companies subject to the small companies regime.

The financial statements were approved by the board of directors and authorised for issue on 16 January 2024 and are signed on its behalf by:
16 January 2024
Mr J Faith
Director
KITEWOOD HOLDINGS LIMITED
COMPANY BALANCE SHEET
AS AT 30 APRIL 2023
30 April 2023
- 10 -
2023
2022
Notes
£
£
£
£
Fixed assets
Investment property
6
30
-
0
Investments
7
1
1
31
1
Current assets
Debtors
10
1,375,351
1,375,352
Creditors: amounts falling due within one year
11
(215,643)
(166,953)
Net current assets
1,159,708
1,208,399
Net assets
1,159,739
1,208,400
Capital and reserves
Called up share capital
20
20
Profit and loss reserves
1,159,719
1,208,380
Total equity
1,159,739
1,208,400
KITEWOOD HOLDINGS LIMITED
COMPANY BALANCE SHEET (CONTINUED)
AS AT 30 APRIL 2023
30 April 2023
- 11 -

As permitted by s408 Companies Act 2006, the company has not presented its own profit and loss account and related notes. The company’s loss for the year was £48,660 (2022 - £20,710 loss).

These financial statements have been prepared 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 16 January 2024 and are signed on its behalf by:
16 January 2024
Mr J Faith
Director
Company registration number 04334155 (England and Wales)
KITEWOOD HOLDINGS LIMITED
GROUP STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 APRIL 2023
- 12 -
Share capital
Hedging reserve
Other reserves
Profit and loss reserves
Total
£
£
£
£
£
Balance at 1 May 2021
20
(116,932)
23,229,909
3,302,302
26,415,299
Year ended 30 April 2022:
Profit for the year
-
-
-
1,229,857
1,229,857
Other comprehensive income:
Cash flow hedges gains arising in the year
-
193,903
-
-
193,903
Tax relating to other comprehensive income
-
(39,814)
-
-
0
(39,814)
Total comprehensive income for the year
-
154,089
-
1,229,857
1,383,946
Transfers
-
-
573,267
(573,267)
-
Balance at 30 April 2022
20
37,157
23,803,176
3,958,892
27,799,245
Year ended 30 April 2023:
Profit for the year
-
-
-
709,732
709,732
Other comprehensive income:
Cash flow hedges gains arising in the year
-
331,022
-
-
331,022
Tax relating to other comprehensive income
-
(82,756)
-
-
0
(82,756)
Total comprehensive income for the year
-
248,266
-
709,732
957,998
Balance at 30 April 2023
20
285,423
23,803,176
4,668,624
28,757,243
KITEWOOD HOLDINGS LIMITED
COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 APRIL 2023
- 13 -
Share capital
Profit and loss reserves
Total
£
£
£
Balance at 1 May 2021
20
1,229,090
1,229,110
Year ended 30 April 2022:
Loss and total comprehensive income for the year
-
(20,710)
(20,710)
Balance at 30 April 2022
20
1,208,380
1,208,400
Year ended 30 April 2023:
Loss and total comprehensive income for the year
-
(48,661)
(48,661)
Balance at 30 April 2023
20
1,159,719
1,159,739
KITEWOOD HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 APRIL 2023
- 14 -
1
Accounting policies
Company information

Kitewood Holdings Limited is a private company limited by shares incorporated in England and Wales. The registered office is 7 Dacre Street, London, England, SW1H 0DJ.

 

The group consists of Kitewood Holdings Limited and all of its subsidiaries.

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 investment properties and certain financial instruments at fair value. The principal accounting policies adopted are set out below.

1.2
Basis of consolidation

In the parent company financial statements, the cost of a business combination is the fair value at the acquisition date of the assets given, equity instruments issued and liabilities incurred or assumed, plus costs directly attributable to the business combination. The excess of the cost of a business combination over the fair value of the identifiable assets, liabilities and contingent liabilities acquired is recognised as goodwill. The cost of the combination includes the estimated amount of contingent consideration that is probable and can be measured reliably, and is adjusted for changes in contingent consideration after the acquisition date. Provisional fair values recognised for business combinations in previous periods are adjusted retrospectively for final fair values determined in the 12 months following the acquisition date. Investments in subsidiaries, joint ventures and associates are accounted for at cost less impairment.

 

Deferred tax is recognised on differences between the value of assets (other than goodwill) and liabilities recognised in a business combination accounted for using the purchase method and the amounts that can be deducted or assessed for tax, considering the manner in which the carrying amount of the asset or liability is expected to be recovered or settled. The deferred tax recognised is adjusted against goodwill or negative goodwill.

The consolidated group financial statements consist of the financial statements of the parent company Kitewood Holdings Limited together with all entities controlled by the parent company (its subsidiaries) and the group’s share of its interests in joint ventures and associates.

 

All financial statements are made up to 30 April 2023. Where necessary, adjustments are made to the financial statements of subsidiaries to bring the accounting policies used into line with those used by other members of the group.

 

All intra-group transactions, balances and unrealised gains on transactions between group companies are eliminated on consolidation. Unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred.

1.3
Turnover

Rental income from operating leases is recognised on a straight line basis over the term of the relevant lease. Initial direct costs incurred in negotiating and arranging an operating lease are added to the carrying amount of the leased asset and recognised on a straight line basis over the lease term.

KITEWOOD HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2023
1
Accounting policies
(Continued)
- 15 -
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
33% reducing balance

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 recognised in the profit and loss account.

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
Fixed asset investments

In the parent company financial statements, investments in subsidiaries, are held at cost less accumulated impairment.

1.7
Impairment of fixed assets

At each reporting period end date, the group assesses whether there is any indication of impairment of its fixed assets. If such indication exists, the recoverable of the asset is estimated in order to determine the extent of the impairment loss (if any).

 

The recoverable amount is the higher of fair value less costs to sell and value in use. 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.

 

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 and 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.

1.8
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.

1.9
Financial instruments

The group 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 group's balance sheet when the group becomes party to the contractual provisions of the instrument.

 

Financial assets and liabilities are offset and 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.

KITEWOOD HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2023
1
Accounting policies
(Continued)
- 16 -
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.

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 group 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. The financial liabilities are subsequently measured at amortised cost using the effective interest rate method.

Other financial liabilities

Derivatives, including interest rate swaps and forward foreign exchange contracts, are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in profit or loss in finance costs or finance income as appropriate, unless hedge accounting is applied and the hedge is a cash flow hedge.

Derecognition of financial liabilities

Financial liabilities are derecognised when the group's contractual obligations expire or are discharged or cancelled.

1.10
Equity instruments

Equity instruments issued by the group 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 group.

1.11
Hedge accounting

Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently remeasured to their fair value at each reporting date. The accounting for subsequent changes in fair value depends on whether the derivative is designated as a hedging instrument, and if so, the nature of the item being hedged.

Cash flow hedges are used to cover the group's exposure to variability in cash flows that is attributable to particular risks associated with a recognised asset or liability or a firm commitment which could affect profit or loss. The effective portion of the gain or loss on the hedging instrument is recognised in other comprehensive income through the hedging reserve in equity, whilst the ineffective portion is recognised in profit or loss.

1.12
Taxation

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

KITEWOOD HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2023
1
Accounting policies
(Continued)
- 17 -
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 group’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 if, and only if, there is 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.

 

Deferred tax arising in respect of revaluation gains and losses of investment properties is transferred to or from Other reserves respectively.

1.13
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.

2
Auditor's remuneration
2023
2022
Fees payable to the company's auditor and associates:
£
£
For audit services
Audit of the financial statements of the group and company
20,500
19,250
KITEWOOD HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2023
- 18 -
3
Employees

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

Group
Company
2023
2022
2023
2022
Number
Number
Number
Number
Total
1
1
1
1

The company is operated by the directors who are remunerated in Kitewood Estates Limited.

4
Interest receivable and similar income
2023
2022
£
£
Other interest receivable and similar income
527
3
5
Tangible fixed assets
Group
Fixtures and fittings
£
Cost
At 1 May 2022
313,120
Additions
1,470
At 30 April 2023
314,590
Depreciation and impairment
At 1 May 2022
186,007
Depreciation charged in the year
42,812
At 30 April 2023
228,819
Carrying amount
At 30 April 2023
85,771
At 30 April 2022
127,113
The company had no tangible fixed assets at 30 April 2023 or 30 April 2022.
KITEWOOD HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2023
- 19 -
6
Investment property
Group
Company
2023
2023
£
£
Fair value
At 1 May 2022
57,378,930
30
Additions
4,428,076
-
At 30 April 2023
61,807,006
30

Investment property comprises of property interests held for their rental income, and capital appreciation. The investment property has been valued on an open market basis on the 26 January 2022 by Lambert Smith Hampton which makes reference to market evidence of transaction prices for similar properties. The valuation was made on behalf of the group's funders. The directors consider the valuation of the investment property to be higher than the valuation provided by Lambert Smith Hampton and therefore the revaluation of investment property has been increased accordingly.

7
Fixed asset investments
Group
Company
2023
2022
2023
2022
£
£
£
£
Investments
-
-
1
1
Movements in fixed asset investments
Company
Shares in group undertakings
£
Cost or valuation
At 1 May 2022 and 30 April 2023
1
Carrying amount
At 30 April 2023
1
At 30 April 2022
1
KITEWOOD HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2023
- 20 -
8
Subsidiaries

Details of the company's subsidiaries at 30 April 2023 are as follows:

Name of undertaking
Registered office
Class of
% Held
shares held
Direct
Indirect
Altira Business Park II Limited
1
Ordinary
-
100.00
Clapham Park Road Limited
1
Ordinary
-
100.00
Greenwich 1 Limited
1
Ordinary
-
100.00
Greenwich 2 Limited
1
Ordinary
-
100.00
Greenwich Heights Limited
1
Ordinary
-
100.00
Kitewood (Holland Park) Limited
1
Ordinary
-
100.00
Kitewood (Southbury) Limited
1
Ordinary
-
100.00
Kitewood Investment Holdings Limited
1
Ordinary
100.00
-
Kitewood Property Investments Limited
1
Ordinary
-
100.00
Mary Developments Limited
1
Ordinary
-
100.00
Tavistock Road Limited
1
Ordinary
-
100.00
Yiewsley Limited
1
Ordinary
-
100.00
Tavistock Investment 1 Limited
1
Ordinary
-
100.00
Tavistock Investment 2 Limited
1
Ordinary
-
100.00
Kitewood (Peckham) Limited
1
Ordinary
-
100.00
Kitewood (St James) Limited
1
Ordinary
-
100.00

Registered office addresses (all UK unless otherwise indicated):

1
7 Dacre Street, London, SW1H 0DJ

The following companies have taken exemption from audit under the Companies Act 2006, Section 479A:

 

Company Name

Company No:

Greenwich Heights Limited

06180433

Greenwich 1 Limited

08230380

Greenwich 2 Limited

07718748

Clapham Park Road Limited

05034160

Yiewsley Limited

06212345

Altira Business Park II Limited

06225143

Mary Developments Limited

06326740

Kitewood (Southbury) Limited

08123891

Kitewood Property Investments Limited

08005170

Tavistock Investment 2 Limited

11861168

Kitewood (St James) Limited

13676690

    

9
Financial instruments
Group
Company
2023
2022
2023
2022
£
£
£
£
Carrying amount of financial assets
Instruments measured at fair value through profit or loss
380,565
49,543
-
-
KITEWOOD HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2023
- 21 -
10
Debtors
Group
Company
2023
2022
2023
2022
Amounts falling due within one year:
£
£
£
£
Trade debtors
14,006
15,871
-
0
1
Amounts owed by group undertakings
-
-
1,375,000
1,375,000
Derivative financial instruments
380,565
49,543
-
-
Other debtors
1,279,921
3,007,776
321
351
Prepayments and accrued income
57,419
71,104
30
-
0
1,731,911
3,144,294
1,375,351
1,375,352
11
Creditors: amounts falling due within one year
Group
Company
2023
2022
2023
2022
£
£
£
£
Trade creditors
107,507
116,814
9,316
1,823
Corporation tax payable
175,519
165,915
-
0
-
0
Other taxation and social security
-
13,870
-
-
Other creditors
513,489
883,080
131,327
103,690
Accruals and deferred income
268,020
5,648,556
75,000
61,440
1,064,535
6,828,235
215,643
166,953
12
Creditors: amounts falling due after more than one year
Group
Company
2023
2022
2023
2022
Notes
£
£
£
£
Bank loans and overdrafts
13
23,406,000
21,788,000
-
0
-
0
Other borrowings
13
3,500,000
3,500,000
-
0
-
0
26,906,000
25,288,000
-
0
-
0
KITEWOOD HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2023
- 22 -
13
Loans and overdrafts
Group
Company
2023
2022
2023
2022
£
£
£
£
Bank loans
23,406,000
21,788,000
-
0
-
0
Other loans
3,500,000
3,500,000
-
-
26,906,000
25,288,000
-
-
Payable after one year
26,906,000
25,288,000
-
0
-
0

The bank loans are secured by fixed and floating charges over the assets of Kitewood Investment Holdings Limited and subsidiary entities.

 

The other loans are unsecured and are considered to be repayable on demand.

14
Deferred taxation

The following are the major deferred tax liabilities and assets recognised by the group and company, and movements thereon:

Liabilities
Liabilities
2023
2022
Group
£
£
Investment property revaluations
8,127,551
8,127,551
Interest rate swap revaluations
95,141
12,385
8,222,692
8,139,936
The company has no deferred tax assets or liabilities.
Group
Company
2023
2023
Movements in the year:
£
£
Liability at 1 May 2022
8,139,936
-
Charge to other comprehensive income
82,756
-
Liability at 30 April 2023
8,222,692
-

In accordance with the Finance Bill 2021, Deferred tax has been calculated at 25% in line with the rise to the corporation tax rates.

KITEWOOD HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2023
- 23 -
15
Related party transactions
Transactions with related parties

The following amounts were outstanding at the reporting end date:

Amounts due to related parties
2023
2022
£
£
Group
4,379,914
4,194,247

The following amounts were outstanding at the reporting end date:

Amounts due from related parties
2023
2022
Balance
Balance
£
£
Group
1,893,801
3,007,497

The above companies are considered related parties by virtue of common control.

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