Knucklehead Properties Limited
Unaudited Financial Statements
For the year ended 31 December 2023
Pages for Filing with Registrar
Company Registration No. 14089188 (England and Wales)
Knucklehead Properties Limited
Contents
Page
Balance sheet
1 - 2
Statement of changes in equity
3
Notes to the financial statements
4 - 7
Knucklehead Properties Limited
Balance Sheet
As at 31 December 2023
Page 1
2023
2022
Notes
£
£
£
£
Fixed assets
Investment properties
3
1,828,319
1,828,319
Current assets
Debtors
4
495
Cash at bank and in hand
71,677
76,094
72,172
76,094
Creditors: amounts falling due within one year
5
(1,043,703)
(1,104,260)
Net current liabilities
(971,531)
(1,028,166)
Total assets less current liabilities
856,788
800,153
Creditors: amounts falling due after more than one year
6
(749,562)
(771,714)
Net assets
107,226
28,439
Capital and reserves
Called up share capital
7
100
100
Profit and loss reserves
107,126
28,339
Total equity
107,226
28,439
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 2023 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.
Knucklehead Properties Limited
Balance Sheet (Continued)
As at 31 December 2023
Page 2
The financial statements were approved by the board of directors and authorised for issue on 3 September 2024 and are signed on its behalf by:
T Katz
Director
Company Registration No. 14089188
Knucklehead Properties Limited
Statement of Changes in Equity
For the year ended 31 December 2023
Page 3
Share capital
Profit and loss reserves
Total
Notes
£
£
£
Balance at 5 May 2022
-
Period ended 31 December 2022:
Profit and total comprehensive income for the period
-
28,339
28,339
Issue of share capital
7
100
-
100
Balance at 31 December 2022
100
28,339
28,439
Year ended 31 December 2023:
Profit and total comprehensive income for the year
-
78,787
78,787
Balance at 31 December 2023
100
107,126
107,226
Knucklehead Properties Limited
Notes to the Financial Statements
For the year ended 31 December 2023
Page 4
1
Accounting policies
Company information
Knucklehead Properties Limited is a private company limited by shares incorporated in England and Wales. The registered office is c/o Moore Kingston Smith LLP, 6th Floor, Charlotte Building, 17 Gresse Street, London, United Kingdom, W1T 1QL.
1.1
Reporting period
The comparative period in the financial statements cover the 7 month and 27 day period from incorporation to the first statutory year end of 31 December 2022. A December year end has been chosen as a sensible cut off date for operations.
1.2
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 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.
1.3
Going concern
At the time of approving the financial statements, the directors have a reasonable expectation that thetrue company has adequate resources to continue to trade in operational existence for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.
1.4
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.
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
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.
Knucklehead Properties Limited
Notes to the Financial Statements (Continued)
For the year ended 31 December 2023
1
Accounting policies
(Continued)
Page 5
1.7
Financial instruments
The company only has basic financial instruments measured at amortised cost with no financial instruments as other or basic instruments measured at fair value.
1.8
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.
1.9
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.
1.10
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:
2023
2022
Number
Number
Total
3
Investment property
2023
£
Fair value
At 1 January 2023 and 31 December 2023
1,828,319
Investment property comprises of the property purchased on 5 August 2022. The fair value of the investment property has been arrived at on the basis of the property being purchased during the prior year.
Knucklehead Properties Limited
Notes to the Financial Statements (Continued)
For the year ended 31 December 2023
Page 6
4
Debtors
2023
2022
Amounts falling due within one year:
£
£
Prepayments and accrued income
495
5
Creditors: amounts falling due within one year
2023
2022
£
£
Bank loans
21,181
19,842
Trade creditors
4,781
Corporation tax
22,036
6,648
Other taxation and social security
5,000
8,570
Other creditors
964,524
1,023,800
Accruals and deferred income
30,962
40,619
1,043,703
1,104,260
6
Creditors: amounts falling due after more than one year
2023
2022
£
£
Bank loans and overdrafts
749,562
771,714
The loan was interest bearing at a rate of of 1.75% over LIBOR per annum. The loan was secured with a fixed charge over the assets of the company.
7
Called up share capital
2023
2022
2023
2022
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
100
100
100
100
In the prior period, 2 ordinary shares of £1 each were allotted at par on incorporation of the company. On 24 May 2022 a further 98 shares of £1 each were allotted at par.
Knucklehead Properties Limited
Notes to the Financial Statements (Continued)
For the year ended 31 December 2023
Page 7
8
Operating lease commitments
Lessor
At the reporting end date the company had contracted with tenants for the following minimum lease payments:
2023
2022
£
£
440,250
601,250
9
Related party transactions
During the year the company recorded rental income of £119,167 (2022: 50,000) from Knucklehead Limited, a company under common control. During the prior year the company received a loan of £1,011,374 from Knucklehead Limited. At the year end a net balance of £951,974 (2022: £1,011,374) was owed from the company in relation to the trade and loan balances. At the year end a balance of £18,000 (2022: £27,667) was included in deferred income relating to prepaid rent by Knucklehead Limited.
10
Parent company
There is no ultimate controlling party.