Company registration number 13054515 (England and Wales)
GLOBE KINGSTON LTD
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
GLOBE KINGSTON LTD
CONTENTS
Page
Strategic report
1 - 2
Directors' report
3 - 4
Independent auditor's report
5 - 7
Statement of comprehensive income
8
Balance sheet
9
Statement of changes in equity
10
Notes to the financial statements
11 - 17
GLOBE KINGSTON LTD
COMPANY INFORMATION
Directors
Mr R D Morley
Mr R M Topps
Secretary
S E Johns
Company number
13054515
Registered office
National Farmers Union
Mutual Insurance Society Limited
Tiddington Road
Stratford-Upon-Avon
United Kingdom
CV37 7BJ
Auditor
Henton & Co LLP
Stag House
Old London Road
Hertford
Hertfordshire
SG13 7LA
GLOBE KINGSTON LTD
STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 1 -
The directors present the strategic report for the year ended 31 December 2023.
Review of the business
The Company acts as developer in respect of a single site known as the Unilever Campus, Kingston. The development is subject to a development finance agreement (‘DFA’) under which the forward funder has appointed the Company as developer. The development is also subject to an Agreement For Lease (‘AFL’) between the forward funder and Unilever as tenant.
The DFA commenced in May 2022, with practical completion of the development scheduled for late 2024. The project is currently being delivered within the agreed development appraisal and in accordance with both the DFA and AFL.
The directors expects the Company to continue its current activities for the foreseeable future.
Key Performance Indicators
The directors are of the opinion that as the Company is developing a single site, the financial statements and accompanying notes provide a suitable overview of the Company’s financial position without providing additional information which is commercially sensitive.
Business Risk
Management of the project risk of the development of the Unilever Campus is a key business activity. Project risk includes, but is not limited to, the following material risks:
The development is not completed on time.
The development is not completed to cost.
The development does not comply with planning permission and building regulations.
The development is not completed in accordance with the either the DFA or the AFL.
The Company has appointed a development manager, project manager and a main contractor each of whom is considered to have the necessary experience and financial capability to deliver the project in accordance with the DFA and AFL.
The Directors are of the opinion that the Company has limited its exposure to market factors such as funding risk and market demand for the development through entering into the DFA and AFL prior to the development commencing.
At the date of this report, there are a number of factors, such as the conflict in Ukraine, increased tension if the Middle East and the forthcoming US Presidential election, which are likely to have an impact on the global economy. The directors consider that the business is sufficiently robust and that its operations will not be significantly affected. The directors monitor the Company's cost base on a continuing basis and will take action wherever necessary in order to protect its stakeholders where the Directors consider that such factors may have an adverse impact on the Company or the delivery of the Unilever Campus.
Liquidity Risk
The Directors monitor company cash requirements through the preparation of cash flow forecasts which show the company has sufficient resources to meet its obligations under the AFL, DFA and related construction contracts.
Where costs are incurred that fall outside of the DFA, the Company is reliant on the support of its shareholders. Accordingly, the Company has entered into a funding agreement with its ultimate parent company The National Farmers Union Mutual Insurance Society Limited to provide the necessary funding required to make payments under the quarterly corporation tax regime.
Credit Risk
The Company places its cash with creditworthy institutions and performs ongoing credit evaluation of the forward funder and key contractors. Trade debtors are reviewed on a regular basis and provision is made for doubtful debts when necessary.
GLOBE KINGSTON LTD
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 2 -
Going Concern
The Directors have reviewed the Company's business activities and have prepared cashflow forecasts covering the period until practical completion of the development, and the end of the DFA. The Company is dependent on the continued financial support of its ultimate Parent Company to meet its funding requirements outside of the DFA agreement.
The ultimate Parent Company has provided a signed, formalised funding agreement which confirms that it will provide the necessary funding in order to meet these obligations as they fall due.
The Directors consider that the Company has adequate resources and funding to meet its liabilities as they fall due for at least 12 months from the date that the financial statements are approved. For this reason, the Directors continue to adopt the going concern basis in preparing the financial statements.
Mr R D Morley
Director
11 September 2024
GLOBE KINGSTON LTD
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 3 -
The directors present their annual report and financial statements for the year ended 31 December 2023.
Principal activities
The principal activity of the company was that of a property developer.
Results and dividends
The results for the year are set out on page 8.
No ordinary dividends were paid. The directors do not recommend payment of a final dividend.
Directors
The directors who held office during the year and up to the date of signature of the financial statements were as follows:
Mr R D Morley
Mr R M Topps
Auditor
The auditors, Henton & Co LLP, will be proposed for re-appointment at the forthcoming Annual General Meeting.
Statement of directors' responsibilities
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 company and of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to:
select suitable accounting policies and then apply them consistently;
make judgements and accounting estimates that are reasonable and prudent;
prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.
The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company’s transactions and disclose with reasonable accuracy at any time the financial position of the 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 company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
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 company’s auditor 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 company’s auditor is aware of that information.
Medium-sized companies exemption
This report has been prepared in accordance with the provisions applicable to companies entitled to the medium-sized companies exemption.
GLOBE KINGSTON LTD
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 4 -
On behalf of the board
Mr R D Morley
Director
11 September 2024
GLOBE KINGSTON LTD
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBER OF GLOBE KINGSTON LTD
- 5 -
Opinion
We have audited the financial statements of Globe Kingston Ltd (the 'company') for the year ended 31 December 2023 which comprise the statement of comprehensive income, the balance sheet, the 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:
give a true and fair view of the state of the company's affairs as at 31 December 2023 and of its profit for the year then ended;
have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
have been prepared in accordance with the requirements of the Companies Act 2006.
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 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 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.
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:
the information given in the strategic report and the directors' report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
the strategic report and the directors' report have been prepared in accordance with applicable legal requirements.
GLOBE KINGSTON LTD
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBER OF GLOBE KINGSTON LTD
- 6 -
Matters on which we are required to report by exception
In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or 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:
adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
the financial statements are not in agreement with the accounting records and returns; or
certain disclosures of remuneration specified by law are not made; or
we have not received all the information and explanations we require for our audit.
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 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 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.
The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.
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:
We identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and then design and perform audit procedures responsive to those risks, including obtaining audit evidence that is sufficient and appropriate to provide a basis for our opinion.
In identifying and assessing risks of material misstatement in respect of irregularities, including fraud, and non-compliance with laws and regulations, our procedures included the following: enquiring of management concerning the company's policies with regards identifying, evaluating and complying with laws and regulations and whether they were aware of any instances of non-compliance; enquiring of management concerning the company's policies detecting and responding to the risks of fraud and whether they have knowledge of any actual, suspected or alleged fraud; enquiring of management concerning the company's policies in relation to the internal controls established to mitigate risks related to fraud or non- compliance with laws and regulations; discussing among the engagement team where fraud might occur in the financial statements and any potential indicators of fraud; and obtaining an understanding of the legal and regulatory framework that the company operates in and focusing on those laws and regulations that had a direct effect on the financial statements or that had a fundamental effect on the operations of the company. The key laws and regulations we considered in this context included the UK Companies Act 2006, Financial Reporting Standard 102, applicable tax legislation and health and safety laws.
Audit procedures undertaken in response to the potential risks relating to irregularities (which include fraud and non-compliance with laws and regulations) comprised of: enquiries of management and those charged with governance concerning compliance with such laws and regulations and any actual or potential litigation or claims; inspection of relevant legal correspondence; testing the appropriateness of journal entries; and the performance of analytical review to identify unexpected movements in account balances which may be indicative of fraud.
GLOBE KINGSTON LTD
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBER OF GLOBE KINGSTON LTD
- 7 -
No instances of material non-compliance were identified. However, the likelihood of detecting irregularities, including fraud, is limited by the inherent difficulty in detecting irregularities, the effectiveness of the entity's controls, and the nature, timing and extent of the audit procedures performed. Irregularities that result from fraud might be inherently more difficult to detect than irregularities that result from error. As explained above, there is an unavoidable risk that material misstatements may not be detected, even though the audit has been planned and performed in accordance with ISAs (UK). We are not responsible for preventing non compliance and cannot be expected to detect non-compliance with all laws and regulations.
A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Auditors.
Other matters which we are required to address
The corresponding figures are unaudited.
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.
Ralph Sears
Senior Statutory Auditor
For and on behalf of Henton & Co LLP
13 September 2024
Chartered Accountants
Statutory Auditor
Stag House
Old London Road
Hertford
Hertfordshire
SG13 7LA
GLOBE KINGSTON LTD
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2023
- 8 -
2023
2022
Notes
£
£
Turnover
3
68,802,775
13,785,824
Cost of sales
(62,251,041)
(13,785,824)
Gross profit
6,551,734
-
Administrative expenses
(72,036)
(4,000)
Operating profit/(loss)
4
6,479,698
(4,000)
Interest payable and similar expenses
6
(52,350)
Profit/(loss) before taxation
6,427,348
(4,000)
Tax on profit/(loss)
7
(755,404)
Profit/(loss) for the financial year
5,671,944
(4,000)
The profit and loss account has been prepared on the basis that all operations are continuing operations.
GLOBE KINGSTON LTD
BALANCE SHEET
AS AT
31 DECEMBER 2023
31 December 2023
- 9 -
2023
2022
Notes
£
£
£
£
Current assets
Stocks
8
-
2,843,870
Debtors
9
23,550,216
2
Cash at bank and in hand
9,607,960
5,167,918
33,158,176
8,011,790
Creditors: amounts falling due within one year
10
(25,676,428)
(6,761,284)
Net current assets
7,481,748
1,250,506
Creditors: amounts falling due after more than one year
11
(1,813,802)
(1,254,504)
Net assets/(liabilities)
5,667,946
(3,998)
Capital and reserves
Called up share capital
12
2
2
Profit and loss reserves
5,667,944
(4,000)
Total equity
5,667,946
(3,998)
These financial statements have been prepared in accordance with the provisions relating to medium-sized companies.
The financial statements were approved by the board of directors and authorised for issue on 11 September 2024 and are signed on its behalf by:
Mr R D Morley
Director
Company registration number 13054515 (England and Wales)
GLOBE KINGSTON LTD
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2023
- 10 -
Share capital
Profit and loss reserves
Total
£
£
£
Balance at 1 January 2022
2
2
Year ended 31 December 2022:
Loss and total comprehensive income
-
(4,000)
(4,000)
Balance at 31 December 2022
2
(4,000)
(3,998)
Year ended 31 December 2023:
Profit and total comprehensive income
-
5,671,944
5,671,944
Balance at 31 December 2023
2
5,667,944
5,667,946
GLOBE KINGSTON LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
- 11 -
1
Accounting policies
Company information
Globe Kingston Ltd is a private company limited by shares incorporated in England and Wales. The registered
office is NFU Mutual Insurance Society Limited, Tiddington Road, Stratford-Upon-Avon, United Kingdom, CV37 7BJ.
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.
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.
This company is a qualifying entity for the purposes of FRS 102, being a member of a group where the parent of that group prepares publicly available consolidated financial statements, including this company, which are intended to give a true and fair view of the assets, liabilities, financial position and profit or loss of the group. The company has therefore taken advantage of exemptions from the following disclosure requirements:
The Company has taken advantage of exemption, under the terms of Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland', not to disclose related party transactions with wholly owned subsidiaries within the group.
The financial statements of the company are consolidated in the financial statements of its ultimate parent company, The National Farmers Union Mutual Insurance Society Limited. These consolidated financial statements are available from its registered office, Tiddington Road, Stratford-upon-Avon, Warwickshire, CV37 7BJ.
1.2
Going concern
The Directors have reviewed the Company's business activities and have prepared cashflow forecasts covering the period until practical completion of the development, and the end of the DFA. The Company is dependent on the continued financial support of its ultimate Parent Company to meet its funding requirements outside of the DFA agreement. true
The ultimate Parent Company has provided a signed, formalised funding agreement which confirms that it will provide the necessary funding in order to meet these obligations as they fall due.
The Directors consider that the Company has adequate resources and funding to meet its liabilities as they fall due for at least 12 months from the date that the financial statements are approved. For this reason, the Directors continue to adopt the going concern basis in preparing the financial statements.
GLOBE KINGSTON LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 12 -
1.3
Turnover
Turnover is recognised to the extent that it is probable that the economic benefits will flow to the company and that the turnover can be reliably measured. Turnover is measured at the fair value of the consideration received from the value of long-term contract work completed, and is stated net of value added tax.
The company has entered into a long term contract and recognises revenue and costs associated with the contract using the percentage of completion method.
Percentage of completion is determined by comparing the proportion of costs incurred for work performed to date against the estimated total costs. Costs incurred for work performed to date do not include costs relating to future activity, such as prepayments. Where the recovery of costs is not probable then an expense is recognised immediately.
Profit on contract work is only recognised once the contract is sufficiently progressed to enable management to estimate this reliably.
Regular contract reviews are performed by management and where it is probable that contract costs will exceed total contract revenue the expected loss is recognised immediately.
1.4
Interest costs
All interest costs are recognised in the period in which they are incurred and are based on amounts drawn in accordance with a development funding agreement and costs capitalised. All other interest costs are recognised in the profit and loss account.
1.5
Stocks
Work in progress is valued at direct cost less amounts transferred to the profit and loss account in respect of work carried out, less foreseeable losses and payments on account.
1.6
Financial instruments
The company only enters into basic financial instrument transactions.
Debt instruments are initially measured at present value of the future payments and subsequently at amortised cost using the effective interest method; Debt instruments that are payable or receivable within one year, are measured initially and subsequently at the undiscounted amount of the cash or other consideration expected to be paid or received.
Financial assets that are measured at cost and amortised cost are assessed at the end of each reporting period for objective evidence of impairment. If objective evidence of impairment is found, an impairment loss is recognised in the income statement.
For financial assets measured at amortised cost, the impairment loss is measured as the difference between an asset's carrying amount and the present value of estimated cash flows discounted at the asset's original effective interest rate.
For financial assets measured at cost less impairment, the impairment loss is measured as the difference between an asset's carrying amount and the best estimate, which is an approximation, of the amount that the company would receive for the asset if it were to be sold at the reporting date.
GLOBE KINGSTON LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 13 -
1.7
Taxation
Taxation for the period comprises current and deferred tax. Tax is recognised in the Income Statement, except to the extent that it relates to items recognised in other comprehensive income or directly in equity.
A taxation credit is recognised where where losses utilised within the group and the company will receive cash in respect of these losses.
Current or deferred taxation assets and liabilities are not discounted.
Current tax
Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date.
Deferred tax
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date.
Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in the financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the period end and that are expected to apply to the reversal of the timing difference.
Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits.
The Company has not recognised deferred tax assets or liabilities for the current or previous year due to the absence of significant temporary tax differences that would necessitate such recognition as of the balance sheet date.
1.8
Cash and cash equivalents
Cash and cash equivalents are represented by short-term, highly liquid investments that are readily convertible to known amounts of cash and are subject to an insignificant risk to changes in value.
1.9
Short term debtors are measured at transaction price, less any impairment.
1.10
Short term creditors are measured at the transaction price. Other financial liabilities are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method.
GLOBE KINGSTON LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 14 -
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.
Critical judgments
The following judgements have had the most significant effect on amounts recognised in the financial statements.
Judgements have been made in respect of the likely outcome of incomplete development projects at the year end and their expected profitability. If the outcome can be estimated reliably, revenue and profit is recognised by reference to the stage of completion of the contract activity. If the contract cannot be estimated reliably, revenue is recognised only to the extent of contract costs incurred that are likely to be recoverable.
The company makes estimates of the recoverable value of trade and other debtors. When assessing the impairment of trade and other debtors management considers factors including the current credit rating of the debtor, the ageing profile of debtors and historical experience.
3
Turnover
All turnover recognised in the current and previous year was derived from property development services provided in the United Kingdom.
4
Operating profit/(loss)
2023
2022
Operating profit/(loss) for the year is stated after charging:
£
£
Fees payable to the company's auditor for the audit of the company's financial statements
27,000
Fees payable to the company's auditor for other services to the company
11,495
4,000
5
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2023
2022
Number
Number
2
2
GLOBE KINGSTON LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 15 -
6
Interest payable and similar expenses
2023
2022
£
£
Included within cost of sales
Other interest
5,049,724
-
Included within admin expenses
Interest payable on overdue taxation
52,350
5,101,875
Included within work in progress at 31 December 2023 are capitalised interest costs of £Nil (2022: £1,254,504).
7
Taxation
2023
2022
£
£
Current tax
UK corporation tax on profits for the current period
1,510,807
Group tax relief
(755,403)
Total current tax
755,404
The actual charge for the year can be reconciled to the expected charge/(credit) for the year based on the profit or loss and the standard rate of tax as follows:
2023
2022
£
£
Profit/(loss) before taxation
6,427,348
(4,000)
Expected tax charge based on the standard rate of corporation tax in the UK of 25% (2022: 19%)
1,606,837
(760)
Tax effect of utilisation of tax losses not previously recognised
(1,000)
Group relief
(755,403)
760
Effect of change in tax rate
(95,030)
Taxation charge for the year
755,404
-
8
Stocks
2023
2022
£
£
Work in progress
-
2,843,870
GLOBE KINGSTON LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 16 -
9
Debtors
2023
2022
Amounts falling due within one year:
£
£
Trade debtors
4,294,868
Amounts owed by group undertakings
334,801
Other debtors
2
2
Accrued income
17,106,743
21,736,414
2
2023
2022
Amounts falling due after more than one year:
£
£
Accrued income
1,813,802
Total debtors
23,550,216
2
Amounts owed by group undertakings are unsecured, interest free, have no fixed date of repayment and are repayable on demand.
10
Creditors: amounts falling due within one year
2023
2022
£
£
Trade creditors
10,233,488
6,297,980
Amounts owed to group undertakings
132,945
Corporation tax
755,403
Other taxation and social security
3,877,828
326,359
Accruals and deferred income
10,809,709
4,000
25,676,428
6,761,284
Amounts owed to group undertakings are unsecured, interest free, have no fixed date of repayment and are repayable on demand.
11
Creditors: amounts falling due after more than one year
2023
2022
£
£
Accruals
1,813,802
1,254,504
12
Share capital
2023
2022
2023
2022
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
2
2
2
2
GLOBE KINGSTON LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 17 -
13
Related party disclosures
2023
2022
Entities that have control, joint control or significant influence over the entity:
£
£
Hathaway Opportunity Fund General Partner Limited
Included within debtors
Other debtors
2
2
Transactions with other related parties:
Hathaway Opportunity Fund LP
Included within debtors
Amounts owed from group undertakings
334,801
-
Included within creditors
Amounts owed to group undertakings
-
132,945
Cube Limited
Included within direct costs
Development management fee
6,584,629
-
Included within creditors
Accruals and deferred income
5,504,629
-
14
Financial commitments, guarantees and contingent liabilities
The Company has received a guarantee of £20m from Hathaway Opportunity Fund LP in respect of the development which the company is undertaking.
The Company has entered into a contract with the principle contractor for construction works of £123m, of which £56.6m had been completed as at 31 December 2023.
The Company has also entered into a development finance agreement with the forward funder with a maximum commitment of £245.6m of which £109.5m had been drawn as at 31 December 2023.
15
Ultimate controlling party
The Parent Company is Hathaway Opportunity General Partner Limited, whose registered office is Tiddington Road, Stratford-upon-Avon, United Kingdom, CV37 7BJ.
The Ultimate Parent Company is The National Farmers Union Mutual Insurance Society Limited, whose registered office is Tiddington Road, Stratford-upon-Avon, United Kingdom, CV37 7BJ.
16
Non-adjusting events
On 3rd September 2024, the Company entered into an indemnity issue bond agreement with Kingston Council for £924k.
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