REGISTERED NUMBER: 09796628 (England and Wales) |
Group Strategic Report, Report of the Directors and |
Consolidated Financial Statements for the Year Ended 31 December 2023 |
for |
Kingstown Associates (Holdings) Limited |
REGISTERED NUMBER: 09796628 (England and Wales) |
Group Strategic Report, Report of the Directors and |
Consolidated Financial Statements for the Year Ended 31 December 2023 |
for |
Kingstown Associates (Holdings) Limited |
Kingstown Associates (Holdings) Limited (Registered number: 09796628) |
Contents of the Consolidated Financial Statements |
for the Year Ended 31 December 2023 |
Page |
Company Information | 1 |
Group Strategic Report | 2 |
Report of the Directors | 4 |
Report of the Independent Auditors | 6 |
Consolidated Income Statement | 10 |
Consolidated Other Comprehensive Income | 11 |
Consolidated Statement of Financial Position | 12 |
Company Statement of Financial Position | 13 |
Consolidated Statement of Changes in Equity | 14 |
Company Statement of Changes in Equity | 15 |
Consolidated Statement of Cash Flows | 16 |
Notes to the Consolidated Statement of Cash Flows | 17 |
Notes to the Consolidated Financial Statements | 18 |
Kingstown Associates (Holdings) Limited |
Company Information |
for the Year Ended 31 December 2023 |
DIRECTORS: |
REGISTERED OFFICE: |
REGISTERED NUMBER: |
AUDITORS: |
Chartered Accountants and Statutory Auditors |
Suite 1 |
The Riverside Building |
Hessle |
East Yorkshire |
HU13 0DZ |
Kingstown Associates (Holdings) Limited (Registered number: 09796628) |
Group Strategic Report |
for the Year Ended 31 December 2023 |
The directors present their strategic report of the company and the group for the year ended 31 December 2023. |
REVIEW OF BUSINESS |
We aim to present a balanced and comprehensive review of the development and performance of the business during the year and its position at the year end. Our review is consistent with the size and non-complex nature of the business and is written in the context of the risks and uncertainties we face. |
The turnover in the year is £13,486,055 (2022: £15,511,408) which is a decrease of 13.1% on 2022. The gross profit margin has decreased to 14.6% compared with 15.9% in the prior year. Product margins have stabilised, the increase in material costs and increased cost of labour led the company to increase its selling prices in line with inflation. Initially the company chose not to pass on the increases further impacting the 'cost of living crisis' and absorbed these additional costs for as long as possible. The company experienced a small decline in turnover as was seen across the consumables sector; consumers heeded caution when purchasing any non-essential items through fear of further interest rises and speculation that the country was heading into a recession. This temporary downturn was mainly seen in the winter months were people nervously awaited their winter fuel bills. The company had previously cleared down all historical debt which strengthened the balance sheet and boosted cash reserves. The company also actively reserved cash through the year to purchase the building in which it operates. Completion took place September 2023; the group's balance sheet was further strengthened with the addition of the investment property. |
Key Performance Indicators |
We consider that our key financial performance indicators are those that communicate the financial performance and strength of the company, these being turnover, gross profit and operating profit. Efficiency KPI's such as cost per order processed/picked and parcels per order are used to monitor our fulfilment process. We also closely monitor delivery costs as a percentage of sales and our marketing spend as a percentage of sales which has a direct correlation to sales and indicates its effectiveness. |
2023 | 2022 |
£m | £m |
Turnover | 13.5 | 15.5 |
Gross Profit | 2.0 | 2.5 |
Operating Profit | 0.1 | 0.3 |
PRINCIPAL RISKS AND UNCERTAINTIES |
Financial Risk Management and Policies |
The main financial risks of the company relate to foreign exchange and credit (in relation to trade receivables). |
Foreign exchange risk |
Currency risk management relating to transactional business, if significant, is dealt with through the use of foreign currency forward contracts. |
Credit risk (trade receivables) |
The company's credit risk is primarily attributable to trade receivables. It is company policy that all customers are granted credit subject to credit verification procedures. A rigorous system of credit control is applied, and receivables are continually monitored. The amounts presented in the balance sheet are net of allowances for doubtful debts. |
Kingstown Associates (Holdings) Limited (Registered number: 09796628) |
Group Strategic Report |
for the Year Ended 31 December 2023 |
FUTURE DEVELOPMENTS |
The Company has explored different ways in how it reaches out to its customers throughout the year and continues to concentrate on customer retention. Whilst the recruitment of new customers took a slight back seat in 2023, the intention for 2024 is to grow the existing database and increase the demographic spread of customers. The Company has continued to find interesting new products to create excitement alongside the staple and longstanding bestselling items which it provides to its customers. The company has always had the ethos of providing value for money and bringing products to the market which are not readily available to its target audience. The company will continue with this approach. |
The Company's focus for 2023 was on customer reactivation and retention; in 2024 the focus is on growing the database, so the focus is on recruitment and retention of those new customers. The company's intention is to focus on obtaining 3 orders from a new customer, after which it is the expectation a customer will remain loyal to a brand. That said the promotions offered are tailored to each brand to build on customer spending habits and offer brand stability. |
The company aims to maintain strong product margins and encourage a higher average order value, both of which affect the overall profitability and success of the company. The merchandise team, whilst keeping the product selection fresh, also actively resource the best value for money products whilst ensuring the quality of products sourced remain high and meet the customer expectations. |
The company continues to maintain and improve the current stock forecasting system. With stock being one of the key assets it is essential the company maintains this at an optimum level whereby stock is available to fulfil orders without holding excess volumes and tying up free cash. A keen eye is still placed on slow movers and seasonal items to ensure current stock levels remain in line with demand. |
The Company's plans for the current financial year are to increase and maintain the customer database with emphasis placed on customer retention. It continues to improve efficiencies in all areas and explore different ways to maximise the return on investment in marketing spend. The company has had to absorb hefty increases in 'National minimum wage' and will again in 2024, with that in mind it is essential that costs are managed with optimum efficiency, with all areas seeking to reduce costs by streamlining processes and renegotiating contracts or even changing suppliers. |
Furthermore, with the completion of the building purchase finalised the company intends to build on this investment by increasing the value of the asset with investment in its internal infrastructure and by enhancing the external structure. |
MATTERS OF STRATEGIC IMPORTANCE |
As for many companies of our size, the business environment in which we operate continues to be challenging given the current global slowdown. The company approaches the new year with optimism of economic growth but still bears in mind the risks and uncertainties of an unstable economy. Whilst future development of the business may be subject to unforeseen future events outside of our control, we strive to grow and build value to strengthen the company's position. We will continue to show flexibility and respond to market conditions and opportunities as they arise. |
ON BEHALF OF THE BOARD: |
Kingstown Associates (Holdings) Limited (Registered number: 09796628) |
Report of the Directors |
for the Year Ended 31 December 2023 |
The directors present their report with the financial statements of the company and the group for the year ended 31 December 2023. |
PRINCIPAL ACTIVITY |
The principal activity of the group in the year under review was that of engagement in the UK mail order catalogue market. |
DIVIDENDS |
No dividends will be distributed for the year ended 31 December 2023. |
DIRECTORS |
The directors shown below have held office during the whole of the period from 1 January 2023 to the date of this report. |
Qualifying third party indemnity provision is in place for the benefit of the directors of the Company. |
STATEMENT OF DIRECTORS' RESPONSIBILITIES |
The directors are responsible for preparing the Group Strategic Report, the Report of the Directors 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 the group and of the profit or loss of the group 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 and the group's transactions and disclose with reasonable accuracy at any time the financial position of the company and the group 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 the group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. |
STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS |
So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the group's auditors are unaware, and each director has taken all the steps that he or she ought to have taken as a director in order to make himself or herself aware of any relevant audit information and to establish that the group's auditors are aware of that information. |
Kingstown Associates (Holdings) Limited (Registered number: 09796628) |
Report of the Directors |
for the Year Ended 31 December 2023 |
AUDITORS |
The auditors, Harris Lacey and Swain, will be proposed for re-appointment at the forthcoming Annual General Meeting. |
ON BEHALF OF THE BOARD: |
Report of the Independent Auditors to the Members of |
Kingstown Associates (Holdings) Limited |
Opinion |
We have audited the financial statements of Kingstown Associates (Holdings) Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 December 2023 which comprise the Consolidated Income Statement, Consolidated Other Comprehensive Income, Consolidated Statement of Financial Position, Company Statement of Financial Position, Consolidated Statement of Changes in Equity, Company Statement of Changes in Equity, Consolidated Statement of Cash Flows and Notes to the Consolidated Statement of Cash Flows, Notes to the Financial Statements, including a summary of 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 group's and of the parent company affairs as at 31 December 2023 and of the group's loss 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. |
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 Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the group 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 the 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 directors are responsible for the other information. The other information comprises the information in the Group Strategic Report and the Report of the Directors, but does not include the financial statements and our Report of the Auditors thereon. |
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. |
In connection with our audit of the financial statements, 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 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 the audit: |
- | the information given in the Group Strategic Report and the Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and |
- | the Group Strategic Report and the Report of the Directors have been prepared in accordance with applicable legal requirements. |
Report of the Independent Auditors to the Members of |
Kingstown Associates (Holdings) Limited |
Matters on which we are required to report by exception |
In the light of the knowledge and understanding of the group and the parent company and its environment obtained in the course of the audit, we have not identified material misstatements in the Group Strategic Report or the Report of the Directors. |
We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion: |
- | adequate accounting records have not been kept by the parent company, or returns adequate for our audit have not been received from branches not visited by us; or |
- | the parent company financial statements are not in agreement with the accounting records and returns; or |
- | certain disclosures of directors' 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 Statement of Directors' Responsibilities set out on page four, 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 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 group's and 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 group or the parent company or to cease operations, or have no realistic alternative but to do so. |
Report of the Independent Auditors to the Members of |
Kingstown Associates (Holdings) Limited |
Auditors' 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 a Report of the Auditors 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: |
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. |
Identifying and assessing potential risks related to irregularities |
In identifying and assessing risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, we considered the following: |
Audit response to risks identified |
- the nature of the industry and sector, control environment and business performance including key drivers for directors' remuneration, bonus levels and performance targets |
- results of our enquiries of management and their own identification and assessment of the risks of irregularities; |
- any matters we identified having obtained and reviewed the companies' documentation of their policies and procedures relating to: |
- identifying, evaluating and complying with laws and regulations and whether they were aware of any instances of noncompliance; |
- detecting and responding to the risks of fraud and whether they have knowledge of any actual, suspected or alleged fraud; |
- the internal controls established to mitigate risks of fraud or non-compliance with laws and regulations; |
- the matters discussed among the audit engagement team including regarding how and where fraud might occur in the financial statements and any potential indicators of fraud. |
As a result of these procedures, we considered the opportunities and incentives that may exist within the organisation for fraud and identified the greatest potential for fraud in relation to revenue deferrals. In common with all audits under ISAs (UK), we are also required to perform specific procedures to respond to the risk of management override. |
We also obtained an understanding of the legal and regulatory frameworks that the company operates in, focusing on provisions of those laws and regulations that had a direct effect on the determination of material amounts and disclosures in the financial statements. The key laws and regulations we considered in this context included the UK Companies Act, UK Corporate Governance Code and local tax legislation. |
In addition, we considered provisions of other laws and regulations that do not have a direct effect on the financial statements but compliance with which may be fundamental to the company's ability to operate or to avoid a material penalty. |
Audit response to risks identified |
Our procedures to respond to risks identified included the following: |
- reviewing the financial statement disclosures and testing to supporting documentation to assess compliance with provisions of relevant laws and regulations described as having a direct effect on the financial statements; |
- enquiring of management concerning actual and potential litigation and claims; |
- performing analytical procedures to identify any unusual or unexpected relationships that may indicate risks of material misstatement due to fraud; |
- reading minutes of meetings of those charged with governance |
- obtained an understanding of provisions and held discussions with management to understand the basis of recognition or non-recognition of tax provisions; and |
Report of the Independent Auditors to the Members of |
Kingstown Associates (Holdings) Limited |
- in addressing the risk of fraud through management override of controls, testing the appropriateness of journal entries and other adjustments; assessing whether the judgements made in making accounting estimates are indicative of a potential bias; and evaluating the business rationale of any significant transactions that are unusual or outside the normal course of business. |
We also communicated relevant identified laws and regulations and potential fraud risks to all engagement team members, and remained alert to any indications of fraud or noncompliance with laws and regulations throughout the audit. |
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. |
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 a Report of the Auditors 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. |
for and on behalf of |
Chartered Accountants and Statutory Auditors |
Suite 1 |
The Riverside Building |
Hessle |
East Yorkshire |
HU13 0DZ |
Kingstown Associates (Holdings) Limited (Registered number: 09796628) |
Consolidated |
Income Statement |
for the Year Ended 31 December 2023 |
2023 | 2022 |
Notes | £ | £ |
TURNOVER | 13,486,055 | 15,511,408 |
Cost of sales | (11,521,924 | ) | (13,043,784 | ) |
GROSS PROFIT | 1,964,131 | 2,467,624 |
Administrative expenses | (1,897,333 | ) | (2,125,532 | ) |
OPERATING PROFIT | 4 | 66,798 | 342,092 |
Interest payable and similar expenses | 6 | (38,401 | ) | (13,675 | ) |
PROFIT BEFORE TAXATION | 28,397 | 328,417 |
Tax on profit | 7 | (54,444 | ) | (59,246 | ) |
(LOSS)/PROFIT FOR THE FINANCIAL YEAR |
( |
) |
(Loss)/profit attributable to: |
Owners of the parent | (26,047 | ) | 269,171 |
Kingstown Associates (Holdings) Limited (Registered number: 09796628) |
Consolidated |
Other Comprehensive Income |
for the Year Ended 31 December 2023 |
2023 | 2022 |
Notes | £ | £ |
(LOSS)/PROFIT FOR THE YEAR | (26,047 | ) | 269,171 |
OTHER COMPREHENSIVE INCOME | - | - |
TOTAL COMPREHENSIVE INCOME FOR THE YEAR |
(26,047 |
) |
269,171 |
Total comprehensive income attributable to: |
Owners of the parent | (26,047 | ) | 269,171 |
Kingstown Associates (Holdings) Limited (Registered number: 09796628) |
Consolidated Statement of Financial Position |
31 December 2023 |
2023 | 2022 |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Intangible assets | 10 | 3,799 | 73,809 |
Tangible assets | 11 | 100,866 | 71,731 |
Investments | 12 | - | 80 |
Investment property | 13 | 2,221,645 | - |
2,326,310 | 145,620 |
CURRENT ASSETS |
Stocks | 14 | 1,328,927 | 1,407,527 |
Debtors | 15 | 382,627 | 399,367 |
Cash at bank and in hand | 152,761 | 460,267 |
1,864,315 | 2,267,161 |
CREDITORS |
Amounts falling due within one year | 16 | 1,436,848 | 1,150,696 |
NET CURRENT ASSETS | 427,467 | 1,116,465 |
TOTAL ASSETS LESS CURRENT LIABILITIES |
2,753,777 |
1,262,085 |
CREDITORS |
Amounts falling due after more than one year |
17 |
(1,484,967 |
) |
- |
PROVISIONS FOR LIABILITIES | 20 | (52,885 | ) | (20,113 | ) |
NET ASSETS | 1,215,925 | 1,241,972 |
TRANSFER |
Called up share capital | 21 | 907 | 907 |
Share premium | 22 | 5,170 | 5,170 |
Capital redemption reserve | 22 | 251 | 251 |
Retained earnings | 22 | 1,209,597 | 1,235,644 |
SHAREHOLDERS' FUNDS | 1,215,925 | 1,241,972 |
The financial statements were approved by the Board of Directors and authorised for issue on 16 September 2024 and were signed on its behalf by: |
Mr W Barry - Director |
Ms E A Curd - Director |
Kingstown Associates (Holdings) Limited (Registered number: 09796628) |
Company Statement of Financial Position |
31 December 2023 |
2023 | 2022 |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Intangible assets | 10 |
Tangible assets | 11 |
Investments | 12 |
Investment property | 13 |
CURRENT ASSETS |
Cash at bank |
CREDITORS |
Amounts falling due within one year | 16 |
NET CURRENT LIABILITIES | ( |
) | ( |
) |
TOTAL ASSETS LESS CURRENT LIABILITIES |
CREDITORS |
Amounts falling due after more than one year |
17 |
NET ASSETS |
TRANSFER |
Called up share capital | 21 |
Share premium | 22 |
Capital redemption reserve | 22 |
Retained earnings | 22 |
SHAREHOLDERS' FUNDS |
Company's profit for the financial year | 21,507 | 792,858 |
The financial statements were approved by the Board of Directors and authorised for issue on |
Kingstown Associates (Holdings) Limited (Registered number: 09796628) |
Consolidated Statement of Changes in Equity |
for the Year Ended 31 December 2023 |
Called up |
share | Retained | Share |
capital | earnings | premium |
£ | £ | £ |
Balance at 1 January 2022 | 1,000 | 880,784 | 5,000 |
Changes in equity |
Issue of share capital | (93 | ) | - | 170 |
Dividends | - | (56,534 | ) | - |
Total comprehensive income | - | 411,394 | - |
Balance at 31 December 2022 | 907 | 1,235,644 | 5,170 |
Changes in equity |
Total comprehensive income | - | (26,047 | ) | - |
Balance at 31 December 2023 | 907 | 1,209,597 | 5,170 |
Share |
Capital | based |
redemption | payment | Total |
reserve | reserve | equity |
£ | £ | £ |
Balance at 1 January 2022 | - | 142,393 | 1,029,177 |
Changes in equity |
Issue of share capital | - | - | 77 |
Dividends | - | - | (56,534 | ) |
Total comprehensive income | 251 | (142,393 | ) | 269,252 |
Balance at 31 December 2022 | 251 | - | 1,241,972 |
Changes in equity |
Total comprehensive income | - | - | (26,047 | ) |
Balance at 31 December 2023 | 251 | - | 1,215,925 |
Kingstown Associates (Holdings) Limited (Registered number: 09796628) |
Company Statement of Changes in Equity |
for the Year Ended 31 December 2023 |
Called up |
share | Retained | Share |
capital | earnings | premium |
£ | £ | £ |
Balance at 1 January 2022 | ( |
) |
Changes in equity |
Issue of share capital | ( |
) | - |
Dividends | - | ( |
) | - |
Total comprehensive income | - | - |
Balance at 31 December 2022 |
Changes in equity |
Total comprehensive income | - | - |
Balance at 31 December 2023 |
Share |
Capital | based |
redemption | payment | Total |
reserve | reserve | equity |
£ | £ | £ |
Balance at 1 January 2022 | ( |
) |
Changes in equity |
Issue of share capital | - | - |
Dividends | - | - | ( |
) |
Total comprehensive income | ( |
) |
Balance at 31 December 2022 |
Changes in equity |
Total comprehensive income |
Balance at 31 December 2023 |
Kingstown Associates (Holdings) Limited (Registered number: 09796628) |
Consolidated Statement of Cash Flows |
for the Year Ended 31 December 2023 |
2023 | 2022 |
Notes | £ | £ |
Cash flows from operating activities |
Cash generated from operations | 1 | 545,189 | 237,435 |
Interest paid | (38,401 | ) | (13,675 | ) |
Tax paid | (74,484 | ) | (292,569 | ) |
Net cash from operating activities | 432,304 | (68,809 | ) |
Cash flows from investing activities |
Purchase of intangible fixed assets | (5,200 | ) | - |
Purchase of tangible fixed assets | (57,902 | ) | (38,155 | ) |
Purchase of investment property | (2,221,645 | ) | - |
Sale of fixed asset investments | - | (80 | ) |
Revaluation of intangible fixed assets | - | 628,483 |
Net cash from investing activities | (2,284,747 | ) | 590,248 |
Cash flows from financing activities |
New loans in year | 1,559,250 | - |
Loan repayments in year | (14,313 | ) | (575,000 | ) |
Share issue | - | 1,581 |
Share buyback | - | (1,504 | ) |
Equity dividends paid | - | (56,534 | ) |
Net cash from financing activities | 1,544,937 | (631,457 | ) |
Decrease in cash and cash equivalents | (307,506 | ) | (110,018 | ) |
Cash and cash equivalents at beginning of year |
2 |
460,267 |
570,285 |
Cash and cash equivalents at end of year | 2 | 152,761 | 460,267 |
Kingstown Associates (Holdings) Limited (Registered number: 09796628) |
Notes to the Consolidated Statement of Cash Flows |
for the Year Ended 31 December 2023 |
1. | RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS |
2023 | 2022 |
£ | £ |
Profit before taxation | 28,397 | 328,417 |
Depreciation charges | 104,058 | 103,365 |
Finance costs | 38,401 | 13,675 |
170,856 | 445,457 |
Decrease in stocks | 78,600 | 949,634 |
Decrease in trade and other debtors | 16,740 | 65,431 |
Increase/(decrease) in trade and other creditors | 278,993 | (1,223,087 | ) |
Cash generated from operations | 545,189 | 237,435 |
2. | CASH AND CASH EQUIVALENTS |
The amounts disclosed on the Statement of Cash Flows in respect of cash and cash equivalents are in respect of these Statement of Financial Position amounts: |
Year ended 31 December 2023 |
31.12.23 | 1.1.23 |
£ | £ |
Cash and cash equivalents | 152,761 | 460,267 |
Year ended 31 December 2022 |
31.12.22 | 1.1.22 |
£ | £ |
Cash and cash equivalents | 460,267 | 570,285 |
3. | ANALYSIS OF CHANGES IN NET FUNDS/(DEBT) |
At 1.1.23 | Cash flow | At 31.12.23 |
£ | £ | £ |
Net cash |
Cash at bank and in hand | 460,267 | (307,506 | ) | 152,761 |
460,267 | (307,506 | ) | 152,761 |
Debt |
Debts falling due within 1 year | - | (59,971 | ) | (59,971 | ) |
Debts falling due after 1 year | - | (1,484,967 | ) | (1,484,967 | ) |
- | (1,544,938 | ) | (1,544,938 | ) |
Total | 460,267 | (1,852,444 | ) | (1,392,177 | ) |
Kingstown Associates (Holdings) Limited (Registered number: 09796628) |
Notes to the Consolidated Financial Statements |
for the Year Ended 31 December 2023 |
1. | STATUTORY INFORMATION |
Kingstown Associates (Holdings) Limited is a |
2. | ACCOUNTING POLICIES |
Basis of preparing the financial statements |
Monetary amounts in these financial statements are rounded to the nearest whole £1. The financial statements are presented in sterling which is also the functional currency of the company. |
Basis of consolidation |
The consolidated financial statements incorporate those of the company and its subsidiaries (i.e. entities that the group controls through its power to govern the financial and operating policies so as to obtain economic benefits) other than those disclosed in note 11. |
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. |
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 directly attributable costs. 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. |
Kingstown Associates (Holdings) Limited (Registered number: 09796628) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 December 2023 |
2. | ACCOUNTING POLICIES - continued |
Critical accounting judgements and key sources of estimation uncertainty |
Estimates and judgements are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. |
Critical accounting estimates and assumptions |
The group makes estimates and assumptions concerning the future. The resulting accounting estimates and assumptions will, by definition, seldom equal the related actual results. The estimates and assumptions that have significant risk of causing material adjustment to the carrying amounts of assets and liabilities within the next financial year are discussed below. |
Useful economic lives of tangible assets |
The annual depreciation charge for tangible assets is sensitive to changes in the estimated useful economic lives and residual values of the assets. The useful economic lives and residual values are reassessed annually. They are amended when necessary to reflect current estimates, based on technological advancement, future investments, economic utilisation and the physical condition of the assets. See note 10 for the carrying amount of the property plant and equipment, and the accounting policy above for the useful economic lives for each class of assets. |
Stock provisioning |
The group retails in perishable goods and as a result it is necessary to consider the recoverability of the cost of the stock and the associated provisioning required. When calculating the stock provision management considers the ageing of the goods and anticipated sale price. See note 12 for the net carrying amount of the stock and associated provision. |
Useful economic lives of intangible assets |
The annual amortisation charge and the economic useful life of intangibles is considered to be a key accounting estimate and judgement. Management have based the estimated life on the period over which repeat customer sales are expected to be generated from the capitalised customer database. |
Fair value of share options |
The fair value of share options at the date of grant is based upon market conditions at that specific date. This requires estimates of the current share price, together with requiring valuation assumptions to incorporate expected volatility and return on the shares over which an option exists. |
Critical areas of judgement |
In categorising leases as finance leases or operating leases, management makes judgements as to whether significant risks and rewards of ownership have transferred to the group. |
In considering the impairment of stock, management make judgements as to the estimated selling price less selling costs for obsolete and slow-moving items and whether impairment losses recognised in previous years have reversed. |
In assessing impairment of the customer database acquired in November 2015, the directors make judgements concerning the repeat business of current customers and the expected cash flows which will arise from this customer group. |
Kingstown Associates (Holdings) Limited (Registered number: 09796628) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 December 2023 |
2. | ACCOUNTING POLICIES - continued |
Turnover |
Turnover represents the amount receivable from customers, excluding Value Added Tax and discounts, from their mail order trade. Turnover is recognised at the performance date, provided the amount can be reliably measured and it is probable that the economic benefits will flow to the entity. When merchandise is sold to customers, the performance date is normally defined as the point in time at which the customer becomes beneficial owner of the merchandise. The point at which the customer is considered to become the beneficial owner is at the point of dispatch. This transfer of beneficial ownership does not necessarily correspond to the transfer of legal ownership. |
Goodwill |
Goodwill is capitalised and written off evenly over 10 years as in the opinion of the directors, this represents the period over which the goodwill is expected to give rise to economic benefits. |
Intangible fixed assets (other than goodwill) |
Other intangible assets |
Intangible assets purchased other than in a business combination are recognised when future economic benefits are probable and the cost or value of the asset can be measured reliably. |
Intangible assets arising on a business combination are recognised, except where the asset arises from legal or contractual rights, and there is no history or evidence of exchange transactions for the same or similar assets and estimating the asset's fair value would depend on immeasurable variables. |
Intangible assets are initially recognised at cost (which for intangible assets acquired in a business combination is the fair value at acquisition date) and are subsequently measured at cost less accumulated amortisation and accumulated impairment losses. Intangible assets are amortised to profit or loss on a straight-line basis over their useful lives, as follows:- |
Customer database - over 10 years |
Purchased computer software - 10 - 20% reducing balance or straight line determined on an asset by asset basis |
The customer database intangible represents the projected revenue achievable from existing customers at the business combination date who are estimated to have sales spanning a 10 year period. As such, the directors' have estimated the economic life of the customer database to be finite at 10 years, given the projection based on historic sales data. |
On disposal, the difference between the net disposal proceeds and the carrying amount of the intangible asset is recognised in profit or loss. |
Kingstown Associates (Holdings) Limited (Registered number: 09796628) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 December 2023 |
2. | ACCOUNTING POLICIES - continued |
Tangible fixed assets |
Tangible fixed assets are initially measured at cost and subsequently measured at cost net of depreciation and any impairment losses. Cost represents purchase price together with any incidental costs of acquisition. |
Depreciation |
Depreciation is calculated so as to write off the cost of an asset to its estimated residual value, net of anticipated disposal proceeds, over the useful economic life of that asset as follows: |
Plant & Machinery - 10-20% reducing balance or straight line determined on an asset by asset basis |
Leasehold Improvements - over the term of the lease |
Residual value is calculated on prices prevailing at the reporting date, after estimated costs of disposal, for the asset as if it were at the age and in the condition expected at the end of its useful life. |
Impairment of fixed assets |
An assessment is made at each reporting date of whether there are indications that a fixed asset may be impaired or that an impairment loss previously recognised has fully or partially reversed. If such indications exist, the group estimates the recoverable amount of the asset. |
Shortfalls between the carrying value of fixed assets and their recoverable amounts, being the higher of fair value less costs to sell and value-in-use, are recognised as impairment losses. Impairments of revalued assets are treated as a revaluation loss. All other impairment losses are recognised in profit or loss. |
Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Reversals of impairment losses are recognised in profit or loss or, for revalued assets, as a revaluation gain. On reversal of an impairment loss, the depreciation or amortisation is adjusted to allocate the asset's revised carrying amount (less any residual value) over its remaining useful life. |
Investment property |
Investment property is shown at most recent valuation. Any aggregate surplus or deficit arising from changes in fair value is recognised in profit or loss. |
Stocks |
Stocks are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items. Net realisable value is based on selling price less anticipated costs to complete and selling costs. |
At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stock over its estimated selling price less selling costs is recognised as an impairment loss in the profit and loss. Reversals of impairment losses are also recognised in the profit and loss. |
Stocks held for distribution at no or nominal consideration are measured at the lower of replacement cost and cost, adjusted where applicable for any long service potential, i.e. benefits expected from use or sale of the stock. |
Kingstown Associates (Holdings) Limited (Registered number: 09796628) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 December 2023 |
2. | ACCOUNTING POLICIES - continued |
Financial instruments |
The group has elected to apply the provisions of section 11 'Basic Financial Instruments' and Section 12 'Other Financial Instrument Issues' of FRS 102, in full, to all of its financial instruments. |
Financial assets and financial liabilities are recognised when the group becomes a party to the contractual provisions of the instrument and are offset only when the company currently has legally enforceable right to set off the recognised amounts and intends to either settle on a net basis, or to realise the asset and settle the liability simultaneously. |
Financial Assets |
Trade debtors and other debtors |
Trade debtors and other debtors which are receivable within one year and which do not constitute a financing transaction are initially measured at the transaction price. Trade debtors are subsequently measured at amortised cost, being the transaction price less any settled and impairment losses. |
A provision for the impairment of trade debtors is established when there is objective evidence that the amounts due will not be collected according to the original terms of the contract. Impairment losses are recognised in profit or loss for the excess of the carrying value of the trade debtor over the present value of the future cash flows discounted using the original effective interest rate. Subsequent reversals of an impairment loss that objectively relate to an event occurring after the impairment loss was recognised, are recognised immediately in the profit or loss. |
Financial liabilities and equity |
Financial instruments are classified as liabilities and equity instruments 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. |
Equity instruments |
Financial instruments classified as equity instruments are recorded at the fair value of the cash or other resources received or receivable, net of direct costs of issuing the equity instruments. |
Trade creditors and other creditors |
Trade creditors, other creditors, group balances and accruals payable within one year that do not constitute a financing transaction are initially measured at the transaction price and subsequently measured at amortised cost, being the transaction price less any amounts settled. |
Borrowings |
Borrowings are initially recognised at the transaction price, including transaction costs, and subsequently measured at amortised cost using the effective interest method. Interest expense is recognised on the basis of the effective interest method and is included in interest payable and other similar expenses. |
Where the arrangement with a creditor constitutes a financing transaction, the creditor is initially measured at the present value of future payments discounted at a market rate of interest for a similar instrument and subsequently measured at amortised cost. |
Derecognition of financial assets and liabilities |
Kingstown Associates (Holdings) Limited (Registered number: 09796628) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 December 2023 |
2. | ACCOUNTING POLICIES - continued |
A financial asset is derecognised only when the contractual rights to cash flows expire or are settled, or substantially all the risks and rewards of ownership are transferred to another party, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party. A financial liability (or part thereof) is derecognised when the obligation specified in the contract is discharged, cancelled or expires. |
Taxation |
Taxation for the year comprises current and deferred tax. Tax is recognised in the Consolidated Income Statement, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. |
Current or deferred taxation assets and liabilities are not discounted. |
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 statement of financial position date. |
Deferred tax |
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the statement of financial position 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 financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year 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. |
Foreign currencies |
Transactions in currencies other than the functional currency (foreign currencies) are initially recorded at the exchange rate prevailing on the date of the transaction. |
Monetary assets and liabilities denominated in foreign currencies are translated at the rate of exchange ruling at the reporting date. Non-monetary assets and liabilities denominated in foreign currencies are translated at the rate ruling at the date of transaction or, if the asset or liability is measured at fair value, the rate when fair value was determined. |
All translation differences are taken to profit and loss, except to the extent that they relate to gains and losses recognised on non-monetary items recognised in other comprehensive income, when the related translation gain or loss is also recognised in other comprehensive income. |
Pension costs and other post-retirement benefits |
The group operates a defined contribution pension scheme. Contributions payable to the group's pension scheme are charged to profit or loss in the period to which they relate. |
3. | EMPLOYEES AND DIRECTORS |
2023 | 2022 |
£ | £ |
Wages and salaries | 2,266,974 | 2,547,316 |
Social security costs | 166,543 | 190,769 |
Other pension costs | 33,424 | 42,050 |
2,466,941 | 2,780,135 |
Kingstown Associates (Holdings) Limited (Registered number: 09796628) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 December 2023 |
3. | EMPLOYEES AND DIRECTORS - continued |
The average number of employees during the year was as follows: |
2023 | 2022 |
Distribution | 31 | 38 |
Administrative | 25 | 29 |
Call centre | 44 | 46 |
2023 | 2022 |
£ | £ |
Directors' remuneration | 308,222 | 342,763 |
Directors' pension contributions to money purchase schemes | 1,043 | 6,217 |
The number of directors to whom retirement benefits were accruing was as follows: |
Money purchase schemes | 5 | 5 |
Information regarding the highest paid director is as follows: |
2023 | 2022 |
£ | £ |
Emoluments etc | 70,954 | 78,438 |
Pension contributions to money purchase schemes | 220 | 1,321 |
4. | OPERATING PROFIT |
The operating profit is stated after charging: |
2023 | 2022 |
£ | £ |
Depreciation - owned assets | 28,767 | 21,494 |
Customer database amortisation | 69,893 | 69,974 |
Computer software amortisation | 5,317 | 11,897 |
5. | AUDITORS' REMUNERATION |
2023 | 2022 |
£ | £ |
Fees payable to the company's auditors for the audit of the company's financial statements |
10,390 |
9,600 |
6. | INTEREST PAYABLE AND SIMILAR EXPENSES |
2023 | 2022 |
£ | £ |
Loan note interest | - | 13,675 |
Interest payable | 38,401 | - |
38,401 | 13,675 |
Kingstown Associates (Holdings) Limited (Registered number: 09796628) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 December 2023 |
7. | TAXATION |
Analysis of the tax charge |
The tax charge on the profit for the year was as follows: |
2023 | 2022 |
£ | £ |
Current tax: |
UK corporation tax | 21,672 | 74,729 |
Deferred tax | 32,772 | (15,483 | ) |
Tax on profit | 54,444 | 59,246 |
Reconciliation of total tax charge included in profit and loss |
The tax assessed for the year is higher than the standard rate of corporation tax in the UK. The difference is explained below: |
2023 | 2022 |
£ | £ |
Profit before tax | 28,397 | 328,417 |
Profit multiplied by the standard rate of corporation tax in the UK of 23.160 % (2022 - 19 %) |
6,577 |
62,399 |
Effects of: |
Expenses not deductible for tax purposes | 16,206 | 34,866 |
Capital allowances in excess of depreciation | - | (25,134 | ) |
Depreciation in excess of capital allowances | 4,115 | - |
Utilisation of tax losses | (11,300 | ) | - |
Adjustments to tax charge in respect of previous periods | (245 | ) | - |
Trading loss carried forward | 6,319 | 2,598 |
Deferred tax | 32,772 | (15,483 | ) |
Total tax charge | 54,444 | 59,246 |
8. | INDIVIDUAL INCOME STATEMENT |
As permitted by Section 408 of the Companies Act 2006, the Income Statement of the parent company is not presented as part of these financial statements. |
9. | DIVIDENDS |
2023 | 2022 |
£ | £ |
Ordinary B shares of £0.10 each |
Interim | - | 36,046 |
Ordinary C shares of £0.10 each |
Interim | - | 20,488 |
- | 56,534 |
Kingstown Associates (Holdings) Limited (Registered number: 09796628) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 December 2023 |
10. | INTANGIBLE FIXED ASSETS |
Group |
Customer | Computer |
Goodwill | database | software | Totals |
£ | £ | £ | £ |
COST |
At 1 January 2023 | 506,727 | 699,731 | 343,778 | 1,550,236 |
Additions | - | - | 5,200 | 5,200 |
At 31 December 2023 | 506,727 | 699,731 | 348,978 | 1,555,436 |
AMORTISATION |
At 1 January 2023 | 646,873 | 495,648 | 333,906 | 1,476,427 |
Amortisation for year | - | 69,893 | 5,317 | 75,210 |
At 31 December 2023 | 646,873 | 565,541 | 339,223 | 1,551,637 |
NET BOOK VALUE |
At 31 December 2023 | (140,146 | ) | 134,190 | 9,755 | 3,799 |
At 31 December 2022 | (140,146 | ) | 204,083 | 9,872 | 73,809 |
11. | TANGIBLE FIXED ASSETS |
Group |
Improvements |
to | Plant and |
property | machinery | Totals |
£ | £ | £ |
COST |
At 1 January 2023 | 146,255 | 231,619 | 377,874 |
Additions | 56,825 | 1,077 | 57,902 |
Disposals | - | (19,425 | ) | (19,425 | ) |
At 31 December 2023 | 203,080 | 213,271 | 416,351 |
DEPRECIATION |
At 1 January 2023 | 111,648 | 194,495 | 306,143 |
Charge for year | 18,481 | 10,286 | 28,767 |
Eliminated on disposal | - | (19,425 | ) | (19,425 | ) |
At 31 December 2023 | 130,129 | 185,356 | 315,485 |
NET BOOK VALUE |
At 31 December 2023 | 72,951 | 27,915 | 100,866 |
At 31 December 2022 | 34,607 | 37,124 | 71,731 |
Kingstown Associates (Holdings) Limited (Registered number: 09796628) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 December 2023 |
12. | FIXED ASSET INVESTMENTS |
Group |
Unlisted |
investments |
£ |
COST |
At 1 January 2023 | 80 |
Disposals | (80 | ) |
At 31 December 2023 | - |
NET BOOK VALUE |
At 31 December 2023 | - |
At 31 December 2022 | 80 |
Company |
Unlisted |
investments |
£ |
COST |
At 1 January 2023 |
and 31 December 2023 |
NET BOOK VALUE |
At 31 December 2023 |
At 31 December 2022 |
Kingstown Associates (Holdings) Limited (Registered number: 09796628) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 December 2023 |
12. | FIXED ASSET INVESTMENTS - continued |
The company holds more than 20% of the share capital of the following companies: |
Name |
Country of incorporation |
Holding |
Proportion of voting rights |
Principal activity |
Direct | Indirect |
Kingstown Associates Limited |
England & Wales |
Ordinary shares |
100% |
- |
Engagement in the UK mail order catalogue market |
Fashion Friendly Limited |
England & Wales |
Ordinary shares |
- |
100% |
Dormant company* |
Healthy Living Direct Limited |
England & Wales |
Ordinary shares |
- |
100% |
Dormant company* |
Affordable Choices Limited |
England & Wales |
Ordinary shares |
- |
100% |
Dormant company* |
Housewares Direct Limited |
England & Wales |
Ordinary shares |
- |
100% |
Dormant company* |
Sparkling Touches Limited |
England & Wales |
Ordinary shares |
- |
100% |
Dormant company* |
* denotes subsidiary is exempt from audit by virtue of s480 of Companies Act 2006 and that shares in the company are held by Kingstown Associates Limited, a 100% subsidiary. |
The registered office of each subsidiary company is 1 Wadsworth Road, Kelleythorpe Industrial Estate, Driffield, East Yorkshire, YO25 9DJ. |
13. | INVESTMENT PROPERTY |
Group |
Total |
£ |
FAIR VALUE |
Additions | 2,221,645 |
At 31 December 2023 | 2,221,645 |
NET BOOK VALUE |
At 31 December 2023 | 2,221,645 |
Company |
Total |
£ |
FAIR VALUE |
Additions |
At 31 December 2023 |
NET BOOK VALUE |
At 31 December 2023 |
Kingstown Associates (Holdings) Limited (Registered number: 09796628) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 December 2023 |
14. | STOCKS |
Group |
2023 | 2022 |
£ | £ |
Finished goods | 1,328,927 | 1,407,527 |
15. | DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
Group |
2023 | 2022 |
£ | £ |
Trade debtors | 119,330 | 128,563 |
Amounts owed by group undertakings | 1 | 1 |
Prepayments and accrued income | 263,296 | 270,803 |
382,627 | 399,367 |
16. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
Group | Company |
2023 | 2022 | 2023 | 2022 |
£ | £ | £ | £ |
Bank loans and overdrafts (see note 18) | 59,971 | - |
Trade creditors | 755,217 | 727,576 |
Amounts owed to group undertakings | - | - |
Tax | 21,917 | 74,729 |
Social security and other taxes | 240,910 | 269,975 |
Other creditors | 34,541 | 10,071 |
Accrued expenses | 324,292 | 68,345 |
1,436,848 | 1,150,696 |
Included in other creditors is an amount of £7,562 (2022: £10,071) in relation to outstanding pension contributions. |
17. | CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR |
Group | Company |
2023 | 2022 | 2023 | 2022 |
£ | £ | £ | £ |
Bank loans (see note 18) | 1,484,967 | - |
Kingstown Associates (Holdings) Limited (Registered number: 09796628) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 December 2023 |
18. | LOANS |
An analysis of the maturity of loans is given below: |
Group | Company |
2023 | 2022 | 2023 | 2022 |
£ | £ | £ | £ |
Amounts falling due within one year or on | demand: |
Vendor loans | 59,971 | - |
Amounts falling due between one and two | years: |
Bank loans - 1-2 years | 64,577 | - |
Amounts falling due between two and five | years: |
Bank loans - 2-5 years | 1,420,390 | - |
The group's bankers and loan note holders hold a fixed charge over all freehold and leasehold properties, totalling £2,221,645, together with a floating charge over all assets of the group. The loan note ranks secondary to the bank loans until the bank loans are repaid in full. |
The loan is repayable over a 5 year period with an interest rate of 2% over the Bank of England base rate. |
19. | LEASING AGREEMENTS |
Minimum lease payments fall due as follows: |
Group |
Non-cancellable operating | leases |
2023 | 2022 |
£ | £ |
Within one year | 29,778 | 37,400 |
Between one and five years | 20,878 | - |
50,656 | 37,400 |
Lease payments have been recognised as an expense within the profit and loss account. |
20. | PROVISIONS FOR LIABILITIES |
Group |
2023 | 2022 |
£ | £ |
Deferred tax | 52,885 | 20,113 |
Kingstown Associates (Holdings) Limited (Registered number: 09796628) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 December 2023 |
20. | PROVISIONS FOR LIABILITIES - continued |
Group |
Deferred |
tax |
£ |
Balance at 1 January 2023 | 20,113 |
Provided during year | 32,772 |
Balance at 31 December 2023 | 52,885 |
Deferred taxation is measured at 23.16% (2022: 19%) which is the marginal rate of UK corporation tax substantively enacted at the balance sheet date. |
21. | CALLED UP SHARE CAPITAL |
Allotted, issued and fully paid: |
Number: | Class: | Nominal | 2023 | 2022 |
value: | £ | £ |
Ordinary A | £0.10 | - | - |
Ordinary B | £0.10 | 749 | 749 |
Ordinary C | £0.10 | 158 | 158 |
907 | 907 |
22. | TRANSFER |
Group |
Capital |
Retained | Share | redemption |
earnings | premium | reserve | Totals |
£ | £ | £ | £ |
At 1 January 2023 | 1,235,644 | 5,170 | 251 | 1,241,065 |
Deficit for the year | (26,047 | ) | (26,047 | ) |
At 31 December 2023 | 1,209,597 | 5,170 | 251 | 1,215,018 |
Company |
Capital |
Retained | Share | redemption |
earnings | premium | reserve | Totals |
£ | £ | £ | £ |
At 1 January 2023 | 466,043 |
Profit for the year |
At 31 December 2023 | 487,550 |
Kingstown Associates (Holdings) Limited (Registered number: 09796628) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 December 2023 |
22. | TRANSFER - continued |
Reserves of the company represent the following: |
Capital redemption reserve |
The nominal value of shares repurchased and still held at the end of the reporting period. |
Profit and loss account |
Cumulative profit and loss net of distributions to owners. |
Share premium reserve |
The amount the company raises on the issue of shares in excess of the nominal value of the shares. |
23. | PENSION COMMITMENTS |
The company operates defined contribution pension schemes. Contributions of £33,424 (2022: £42,050) were made during the year and expenses to the profit and loss account. |