Company registration number 12839862 (England and Wales)
KOUT 30 PROPERTY INVESTMENTS LIMITED
FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
PAGES FOR FILING WITH REGISTRAR
KOUT 30 PROPERTY INVESTMENTS LIMITED
CONTENTS
Page
Statement of financial position
1
Notes to the financial statements
2 - 7
KOUT 30 PROPERTY INVESTMENTS LIMITED
STATEMENT OF FINANCIAL POSITION
AS AT
31 DECEMBER 2023
31 December 2023
- 1 -
2023
2022
Notes
£
£
£
£
Fixed assets
Investment property
6
7,695,000
8,105,000
Current assets
Debtors
7
87,831
107,030
Cash at bank and in hand
170,191
154,664
258,022
261,694
Creditors: amounts falling due within one year
8
(2,915,070)
(2,706,453)
Net current liabilities
(2,657,048)
(2,444,759)
Total assets less current liabilities
5,037,952
5,660,241
Creditors: amounts falling due after more than one year
9
(5,986,500)
(5,986,500)
Net liabilities
(948,548)
(326,259)
Capital and reserves
Called up share capital
10
1
1
Profit and loss reserves
(948,549)
(326,260)
Total equity
(948,548)
(326,259)

The director of the company has elected not to include a copy of the income statement 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 and signed by the director and authorised for issue on 9 September 2024
Ms H S A Alwazzan
Director
Company registration number 12839862 (England and Wales)
KOUT 30 PROPERTY INVESTMENTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
- 2 -
1
Accounting policies
Company information

Kout 30 Property Investments Limited is a private company limited by shares incorporated in England and Wales. The registered office is 2nd Floor, 5 Conduit Street, London, United Kingdom, W15 2XD.

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

1.2
Going concern

The financial statements have been prepared on a going concern basis, the validity of which is dependent upon the continued financial support from the company's bank, creditors and shareholders. true

 

Management have prepared a cash flow forecast covering a period of 12 months from the date of these financial statements. This forecast contains certain assumptions about the performance of the business and other economic factors that may affect the cash flow of the company. These are the continued occupancy of the investment properties, this being founded on the viability of the tenants and an expectation of a minimum leasehold period based upon a forecasted level of achievement and the stability of interest rates on loans. The existing lease agreements for the investment properties last between 9 and 15 years.

 

The forecast breaks down quarterly rental payments that will be used to repay the amounts due to the bank and a mezzanine loan provider. This debt and the associated interest will have seniority over the remaining amounts due to shareholders.

 

The shareholder, Nohoudh Foundation for Development Studies have confirmed in writing that they will not require any repayment of of any monies due to them, if to do so means the Company will not be able to meet its debts as and when they fall due for a period of at least twelve months from the date of approval of the financial statements. There are no indications that the financial covenants of other bank loans would not be met and as at the date of the approval of these financial statements, no bank covenants have been breached. As such it is expected that the support from the bank would continue for the foreseeable future.

 

If support of the company's bank, shareholders and creditors ceased, then the company would need to dispose of one or a number of the investment properties or seek alternative finance in order to be able to remain as a going concern. The financial statements do not include any adjustments that would result if this support were withdrawn. 

1.3
Turnover

Turnover is recognised at the fair value of the consideration received or receivable for rental income and services provided in the normal course of business. 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

KOUT 30 PROPERTY INVESTMENTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 3 -
1.4
Investment property

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.

1.5
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.

1.6
Financial instruments

The company 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 company's statement of financial position when the company becomes party to the contractual provisions of the instrument.

 

Financial assets and liabilities are offset, with 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.

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.

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 company 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. 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.

1.7
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.

1.8
Taxation

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

KOUT 30 PROPERTY INVESTMENTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 4 -
Current tax

The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the income statement 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 income statement, 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.

2
Judgements and key sources of estimation uncertainty

In the application of the company’s accounting policies, the director is 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
1
1
4
Interest payable and similar expenses
2023
2022
£
£
Interest payable and similar expenses includes the following:
Interest payable to group undertakings
570,528
543,230
KOUT 30 PROPERTY INVESTMENTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 5 -
5
Taxation
2023
2022
£
£
Current tax
Tax relating to prior year adjustments recognised in profit or loss
68,944
-
0

The actual charge for the year can be reconciled to the expected credit for the year based on the profit or loss and the standard rate of tax as follows:

2023
2022
£
£
Loss before taxation
(553,345)
(315,397)
Expected tax credit based on the standard rate of corporation tax in the UK of 19.00%
(105,136)
(59,925)
Tax effect of expenses that are not deductible in determining taxable profit
-
0
2,333
Tax effect of income not taxable in determining taxable profit
-
0
(1,884)
Adjustments in respect of prior years
68,944
-
0
Effect of revaluations of investments
77,900
130,484
Under/(over) provided in prior years
-
0
(68,944)
Non-trade loan relationship
108,340
-
0
Non-trade financial losses
(81,104)
(2,064)
Taxation charge for the year
68,944
-

The Company has tax losses of up to £143,345 (2022: £nil) to carry forward against future profits. The deferred tax asset on tax losses at 25% of £35,836 (2022: £nil) has not been recognised due to uncertainty of the recovery.

6
Investment property
2023
£
Fair value
At 1 January 2023
8,105,000
Revaluations
(410,000)
At 31 December 2023
7,695,000

Investment property comprises of 3 petrol service stations located at Rochester, Bristol and Wigston. The fair value of the investment properties was measured at the year end by directors based on the valuation carried out by Colliers Limited, an independent valuer in December 2023. The basis of the valuation is fair value which is the market value of the property. The properties were assessed on an individual basis taking into the covenant, unexpired term,the rental growth, and future potential. We’ve relied on transactional investment sales to inform our opinion applied Net Initial Yields.

KOUT 30 PROPERTY INVESTMENTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 6 -
7
Debtors
2023
2022
Amounts falling due within one year:
£
£
Trade debtors
-
0
5,668
Other debtors
87,831
101,362
87,831
107,030
8
Creditors: amounts falling due within one year
2023
2022
£
£
Trade creditors
900
12,913
Taxation and social security
24,246
14,808
Other creditors
2,889,924
2,678,732
2,915,070
2,706,453

Included within other creditors are £2,371,999 (2022: £2,371,999) unsecured loans from shareholder, Nohoudh Foundation for Development Studies, bearing no interest.

 

Also included within other creditors are accrued interests of £6,524(2022: £4,840) on QIB (UK) Plc (Qatar Islamic Bank) loan of £2,886,500 (2022: £2,886,500) (see note 9) at the rate of BoE base rate + 3.3%.

 

As at 31 December 2023 the Company also owed £3,100,000 (2022: £3,100,000) in respect of unsecured loans received from Al-Ahliya Technological Industries Co., which is included in creditors greater than one year. Accrued interest on the loan amounted to £344,087 (2022: £164,771), which is included in other creditors (Bank of England base rate + 3.3% on £1,550,000 and Bank of England +10% on £1,550,000).

9
Creditors: amounts falling due after more than one year
2023
2022
£
£
Other creditors
5,986,500
5,986,500

Included within Other creditors are QIB (UK) Plc (Qatar Islamic Bank) loan of £2,886,500 (2022: £2,886,500) and Al-Ahliya Technological Industries loan of £3,100,000 (2022: £3,100,000). Maturity dates for both loans are 60 months from the effective date of the loans. Interests on these loans are outlined in note 8.

10
Called up share capital
2023
2022
2023
2022
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary Share Capital of £1 each
1
1
1
1

On incorporation date, 1 ordinary share was issued at £1. The share carries full rights to dividends and distribution of capital.

KOUT 30 PROPERTY INVESTMENTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 7 -
11
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:
Sachin Ramaiya
Statutory Auditor:
Gravita Audit Limited
Date of audit report:
9 September 2024
12
Events after the reporting date

In March 2024, the Company sold the Keynsham property for £3.0 million. The proceeds were used to pay off the QIB (UK) Plc (Qatar Islamic Bank) loan.

13
Related party transactions

Kout Capital Limited is a related party because the individual controlling Kout Capital Limited was a director of the Company during the period. Kout Capital Limited was appointed the Company’s asset manager in December 2021.

 

Nohoudh Foundation for Development Studies ("Nohoudh") is a significant and controlling shareholder of the Company as it owns 100% of the Share Capital of the Company. In 2022, Nohoudh entered into a shareholder loan with the Company to the value of £2,371,999. The same amount remained due at the year end. The amount is interest-free.

 

The Company has taken advantage of the exemption available in accordance with FRS 102 1AC.35 not to disclose transactions entered into between two or more members of a group as the company is a wholly owned subsidiary undertaking of the Group to which it is party to the transactions.

14
Parent company

The controlling party is Nohoudh Foundation for Development Studies Limited, a company registered in the Cayman Islands, by virtue of their 100% shareholding.

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