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Registration number: 10406393

Prepared for the registrar

Kito Asset Holding Limited

Annual Report and Unaudited Financial Statements

for the Year Ended 27 February 2023

 

Kito Asset Holding Limited

Contents

Company Information

1

Balance Sheet

2

Notes to the Unaudited Financial Statements

3 to 10

 

Kito Asset Holding Limited

Company Information

Directors

A M Patel

A C Patel

Registered office

Windsor House
Bayshill Road
Cheltenham
Gloucestershire
GL50 3AT

Accountants

Hazlewoods LLP
Windsor House
Bayshill Road
Cheltenham
GL50 3AT

 

Kito Asset Holding Limited

(Registration number: 10406393)
Balance Sheet as at 27 February 2023

Note

2023
£

(As restated)

2022
£

Fixed assets

 

Tangible assets

4

107,709

26,270

Investment property

5

5,295,427

4,603,208

Investments

6

32

32

 

5,403,168

4,629,510

Current assets

 

Debtors

7

157,339

140,640

Cash at bank and in hand

 

371,119

701,579

 

528,458

842,219

Creditors: Amounts falling due within one year

8

(363,267)

(49,131)

Net current assets

 

165,191

793,088

Total assets less current liabilities

 

5,568,359

5,422,598

Creditors: Amounts falling due after more than one year

8

(5,280,310)

(5,137,831)

Deferred tax liabilities

10

(77,468)

(59,519)

Net assets

 

210,581

225,248

Capital and reserves

 

Called up share capital

5

5

Revaluation reserve

500,787

714,706

Profit and loss account

(290,211)

(489,463)

Shareholders' funds

 

210,581

225,248

For the financial year ending 27 February 2023 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.

Directors' responsibilities:

The members have not required the company to obtain an audit of its accounts for the year in question in accordance with section 476; and

The directors acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and the preparation of accounts.

These financial statements have been prepared in accordance with the special provisions relating to companies subject to the small companies regime within Part 15 of the Companies Act 2006.

These financial statements have been delivered in accordance with the provisions applicable to companies subject to the small companies regime and the option not to file the Profit and Loss Account has been taken.

Approved and authorised by the Board on 5 September 2024 and signed on its behalf by:
 


A M Patel
Director

 

Kito Asset Holding Limited

Notes to the Unaudited Financial Statements for the Year Ended 27 February 2023

 

1

General information

The company is a private company limited by share capital, incorporated in England and Wales.

The address of its registered office is:
Windsor House
Bayshill Road
Cheltenham
Gloucestershire
GL50 3AT

 

2

Accounting policies

Summary of significant accounting policies and key accounting estimates

The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.

Statement of compliance

These financial statements have been prepared in accordance with Financial Reporting Standard 102 Section 1A smaller entities - 'The Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland' and the Companies Act 2006 (as applicable to companies subject to the small companies' regime).

Basis of preparation

These financial statements have been prepared using the historical cost convention except for, where disclosed in these accounting policies, certain items that are shown at fair value.

The presentational currency of the financial statements is Pounds Sterling, being the functional currency of the primary economic environment in which the company operates. Monetary amounts in these financial statements are rounded to the nearest Pound.

Group accounts not prepared

The company has taken advantage of the exemption in section 398 of the Companies Act 2006 from the requirement to prepare consolidated financial statements, on the grounds that it is a small group.

Going concern

After reviewing the company's forecasts and projections, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. The company therefore continues to adopt the going concern basis in preparing its financial statements.

Prior period errors

The value of investment property held has been corrected to remove one property from the company's register, held at a cost and valuation of £527,931. It had been discovered that this property had been included in the accounts in error, via an entry made to other borrowings. The property is owned personally by a director of the company, so both the property cost and associated borrowings balances have been removed. The impact of this has been to reduce both investment property asset and other borrowings liability balances by £527,931. There is no impact on the profit and loss.

Critical accounting 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 amounts 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 if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods.
 

Judgements

No significant judgements have been made by management in preparing these financial statements.

 

Kito Asset Holding Limited

Notes to the Unaudited Financial Statements for the Year Ended 27 February 2023

Key sources of estimation uncertainty

No key sources of estimation uncertainty have been identified by management in preparing these financial statements other than those detailed in these accounting policies.

Revenue recognition

Turnover comprises the fair value of the consideration received or receivable for the sale of goods and provision of services in the ordinary course of the company’s activities. Turnover is shown net of sales/value added tax, returns, rebates and discounts and after eliminating sales within the company. The company recognises revenue when the amount of revenue can be reliably measured, it is probable that future economic benefits will flow to the entity and specific criteria have been met for each of the company's activities.

Tax

The tax expense for the period comprises and deferred tax. Tax is recognised in the profit and loss account, except that a charge attributable to an item of income or expense recognised as other comprehensive income is also recognised directly in other comprehensive income.

The current tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the reporting date in the countries where the company operates and generates taxable income.

Deferred tax is recognised on temporary differences arising between the tax bases of assets and liabilities and their carrying amounts in the financial statements and on unused tax losses or tax credits in the company. Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the reporting date.

The carrying amount of deferred tax assets are reviewed at each reporting date and a valuation allowance is set up against deferred tax assets so that the net carrying amount equals the highest amount that is more likely than not to be recovered based on current or future taxable profit.

Tangible assets

Tangible assets are stated in the statement of financial position at cost, less any subsequent accumulated depreciation and subsequent accumulated impairment losses.

The cost of tangible assets includes directly attributable incremental costs incurred in their acquisition and installation.

Depreciation

Depreciation is charged so as to write off the cost of assets, other than land and properties under construction over their estimated useful lives, as follows:

Asset class

Depreciation method and rate

Motor vehicles

25% reducing balance

Fixtures, fittings and equipment

20% straight line

Investment property

Investment property is carried at fair value, derived from the current market prices for comparable real estate determined annually by external valuers. The valuers use observable market prices, adjusted if necessary for any difference in the nature, location or condition of the specific asset. Changes in fair value are recognised in profit or loss.

Investments

Investments in equity shares which are publicly traded or where the fair value can be measured reliably are initially measured at fair value, with changes in fair value recognised in profit or loss. Investments in equity shares which are not publicly traded and where fair value cannot be measured reliably are measured at cost less impairment.

Trade debtors

Trade debtors are amounts due from customers for merchandise sold or services performed in the ordinary course of business.

Trade debtors are recognised initially at the transaction price. All trade debtors are repayable within one year and hence are included at the undiscounted cost of cash expected to be received. A provision for the impairment of trade debtors is established when there is objective evidence that the company will not be able to collect all amounts due according to the original terms of the debtors.

 

Kito Asset Holding Limited

Notes to the Unaudited Financial Statements for the Year Ended 27 February 2023

Trade creditors

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Accounts payable are classified as current liabilities if the company does not have an unconditional right, at the end of the reporting period, to defer settlement of the creditor for at least twelve months after the reporting date. If there is an unconditional right to defer settlement for at least twelve months after the reporting date, they are presented as non-current liabilities.

Trade creditors are recognised initially at the transaction price and all are repayable within one year and hence are included at the undiscounted amount of cash expected to be paid.

Borrowings

Interest-bearing borrowings are initially recorded at fair value, net of transaction costs. Interest-bearing borrowings are subsequently carried at amortised cost, with the difference between the proceeds, net of transaction costs, and the amount due on redemption being recognised as a charge to the profit and loss account over the period of the relevant borrowing.

Interest expense is recognised on the basis of the effective interest method and is included in interest payable and similar charges.

Borrowings are classified as current liabilities unless the company has an unconditional right to defer settlement of the liability for at least twelve months after the reporting date.

Share capital

Ordinary shares are classified as equity. Equity instruments are measured at the fair value of the cash or other resources received or receivable, net of the direct costs of issuing the equity instruments. If payment is deferred and the time value of money is material, the initial measurement is on a present value basis.

Dividends

Dividend distribution to the company’s shareholders is recognised as a liability in the financial statements in the reporting period in which the dividends are declared.

Financial Instruments

Classification
Financial instruments are classified and accounted for according to the substance of the contractual arrangement, as financial assets, financial liabilities or equity instruments. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities. Where shares are issued, any component that creates a financial liability of the company is presented as a liability on the balance sheet. The corresponding dividends relating to the liability component are charged as interest expenses in the profit and loss account.

 Recognition and measurement
All financial assets and liabilities are initially measured at transaction price (including transaction costs), except for those financial assets classified as at fair value through profit or loss, which are initially measured at fair value (which is normally the transaction price excluding transaction costs), unless the arrangement constitutes a financing transaction. If an arrangement constitutes a financing transaction, the financial asset or financial liability is measured at the present value of the future payments discounted at a market rate of interest for a similar debt instrument.
 

 

Kito Asset Holding Limited

Notes to the Unaudited Financial Statements for the Year Ended 27 February 2023

Financial Instruments (cont)

Impairment
Assets, other than those measured at fair value, are assessed for indicators of impairment at each balance sheet date. If there is objective evidence of impairment, an impairment loss is recognised in profit or loss as described below.

A non financial asset is impaired where there is objective evidence that, as a result of one or more events that occurred after initial recognition, the estimated recoverable value of the asset has been reduced. The recoverable amount of an asset is the higher of its fair value less costs to sell and its value in use.

The recoverable amount of goodwill is derived from measurement of the present value of the future cash flows of the cash-generating units ('CGUs') of which the goodwill is a part. Any impairment loss in respect of a CGU is allocated first to the goodwill attached to that CGU, and then to other assets within that CGU on a pro-rata basis.

Where indicators exist for a decrease in impairment loss, the prior impairment loss is tested to determine reversal. An impairment loss is reversed on an individual impaired asset to the extent that the revised recoverable value does not lead to a revised carrying amount higher than the carrying value had no impairment been recognised. Where a reversal of impairment occurs in respect of a CGU, the reversal is applied first to the assets (other than goodwill) of the CGU on a pro-rata basis and then to any goodwill allocated to that CGU.

For financial assets carried at amortised cost, the amount of an impairment is the difference between the asset’s carrying amount and the present value of estimated future cash flows, discounted at the financial asset’s original effective interest rate.

For financial assets carried at cost less impairment, the impairment loss is the difference between the asset’s carrying amount and the best estimate of the amount that would be received for the asset if it were to be sold at the reporting date.

Where indicators exist for a decrease in impairment loss, and the decrease can be related objectively to an event occurring after the impairment was recognised, the prior impairment loss is tested to determine reversal. An impairment loss is reversed on an individual impaired financial asset to the extent that the revised recoverable value does not lead to a revised carrying amount higher than the carrying value had no impairment been recognised.

 

 

3

Staff numbers

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

 

Kito Asset Holding Limited

Notes to the Unaudited Financial Statements for the Year Ended 27 February 2023

 

4

Tangible assets

Fixtures, fittings and equipment
£

Motor vehicles
 £

Total
£

Cost

At 28 February 2022

24,166

13,465

37,631

Additions

42,515

57,174

99,689

At 27 February 2023

66,681

70,639

137,320

Depreciation

At 28 February 2022

6,529

4,832

11,361

Charge for the year

8,758

9,492

18,250

At 27 February 2023

15,287

14,324

29,611

Carrying amount

At 27 February 2023

51,394

56,315

107,709

At 27 February 2022

17,637

8,633

26,270

 

5

Investment properties

£

At 28 February 2022 as restated

4,603,208

Additions

877,219

Disposals

(185,000)

At 27 February 2023

5,295,427

The directors, who are not professionally qualified valuers, consider that the open market value of the property at 27 February 2023 is not significantly different to the carrying value of £5,295,427 (2022 - £4,603,208 as restated) having made reference to market evidence of transaction prices and investment yields for similar properties in its location.

 

6

Investments

2023
£

2022
£

Investments in subsidiaries

7

7

Investments in associates

25

25

32

32

Subsidiaries

£

Cost

At 28 February 2022 and as at 27 February 2023

7

Provision

Carrying amount

At 27 February 2023

7

At 27 February 2022

7

 

Kito Asset Holding Limited

Notes to the Unaudited Financial Statements for the Year Ended 27 February 2023

Associates

£

Cost

At 28 February 2022 and as at 27 February 2023

25

Provision

Carrying amount

At 27 February 2023

25

At 27 February 2022

25

Details of undertakings

Details of the investments (including principal place of business of unincorporated entities) in which the company holds 20% or more of the nominal value of any class of share capital are as follows:

Undertaking

Registered office

Holding

Proportion of voting rights and shares held

     

2023

2022

Subsidiary & associate undertakings

Tamar Hebask Limited

4-4a Blackburn Road
Accrington
Lancashire
BB5 1HD

Ordinary

100%

100%

Xaris Investments Limited

4-4a Blackburn Road
Accrington
Lancashire
BB5 1HD

Ordinary

100%

100%

Discovered Limited

4-4a Blackburn Road
Accrington
England
BB5 1HD

Ordinary

25%

25%

Active Care Organisation Limited

Windsor House
Bayshill Road
Cheltenham
Gloucestershire
GL50 3AT

Ordinary

100%

100%

 

Kito Asset Holding Limited

Notes to the Unaudited Financial Statements for the Year Ended 27 February 2023

 

7

Debtors

Note

2023
 £

2022
 £

Trade debtors

 

1,277

-

Amounts owed by group undertakings

70,360

5,275

Amounts owed by related parties

 

-

129,329

Prepayments

 

85,702

6,036

   

157,339

140,640

 

8

Creditors

Note

2023
 £

2022
 £

Due within one year

 

Loans and borrowings

9

1,636

9,167

Trade creditors

 

173,252

25,131

Amounts due to related parties

170,473

-

Other creditors

 

8,884

8

Accrued expenses

 

2,900

3,907

Deferred income

 

6,122

10,918

 

363,267

49,131

Note

2023
£

(As restated)

2022
£

Due after one year

 

Loans and borrowings

9

5,280,310

5,137,831

 

Kito Asset Holding Limited

Notes to the Unaudited Financial Statements for the Year Ended 27 February 2023

 

9

Loans and borrowings

2023
£

2022
£

Current loans and borrowings

Bank borrowings

-

9,167

HP and finance lease liabilities

1,636

-

1,636

9,167

2023
£

(As restated)

2022
£

Non-current loans and borrowings

Bank borrowings

-

40,833

HP and finance lease liabilities

1,500

-

Other borrowings

5,278,810

5,096,998

5,280,310

5,137,831

 

10

Deferred tax

Deferred tax assets and liabilities

2023

Liability
£

Accelerated tax depreciation

15,413

Revaluation of investment property

166,929

Tax losses carried forward

(104,874)

77,468

2022

Liability
£

Accelerated tax depreciation

6,568

Revaluation of investment property

177,485

Tax losses carried forward

(124,534)

59,519