Company registration number 03295013 (England and Wales)
KINGSWOOD CORPORATION LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 28 FEBRUARY 2024
KINGSWOOD CORPORATION LIMITED
COMPANY INFORMATION
Directors
J M Rolph
P J Williamson
G C Whitehouse
(Appointed 23 August 2023)
Company number
03295013
Registered office
Browne Jacobson LLP (Cs)
Mowbray House
Castle Meadow Road
Nottingham
NG2 1BJ
Auditor
Morgan Berkeley Limited
Westgate Chambers
8a Elm Park Road
Pinner
Middlesex
HA5 3LA
Business address
Mercury House
Kingswood Road
Hampton Lovett
Droitwich Spa
WR9 0QH
Bankers
Barclays Bank Plc
One Snowhill, Snow Hill Queensway
Birmingham
B4 6GH
KINGSWOOD CORPORATION LIMITED
CONTENTS
Page
Strategic report
1
Directors' report
2 - 3
Independent auditor's report
4 - 6
Income statement
7
Statement of comprehensive income
8
Statement of financial position
9
Statement of changes in equity
10
Notes to the financial statements
11 - 19
KINGSWOOD CORPORATION LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 28 FEBRUARY 2024
- 1 -
The Directors present the strategic report for the year ended 28 February 2024.
Review of the business
The company is an investment holding company for Erinstar Limited and Willowbrook Limited. Both ceased to trade on 1 March 2023 and transferred their trade and assets to Ashley Anderson Limited, a fellow group company, as part of a group structure simplification as of that date. The ownership of Ashley Anderson Limited and Assistive Bathing Limited was also transferred to Kingswood Mobility Group Ltd, the parent company, as of this date. The company remains an investment holding company for Home Mobility Logistics Limited, a dormant company.
Results and performance
The results of the company for the year, as set out on page 7, show a profit on ordinary activities before tax of £nil (2023: £4.94m).
Key performance indicators
The directors monitor the progress of the Group by reference to the following KPI's:
2024 2023
Turnover £0.00m £0.08m
Operating Profit/(Loss) £0.00m (£0.06m)
Profit on ordinary activities before tax £0.00m £4.94m
G C Whitehouse
Director
3 September 2024
KINGSWOOD CORPORATION LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 28 FEBRUARY 2024
- 2 -
The Directors present their annual report and financial statements for the year ended 28 February 2024.
Principal activities
The principal activity of the company continued to be that of an investment holding company. It's subsidiary entities ceased to trade on 1 March 2023 and transferred their trade and assets to Ashley Anderson Limited, a fellow group company, as part of a group structure simplification as of that date.
Results and dividends
The results for the year are set out on page 7.
Ordinary dividends were paid to Kingswood Mobility Group Limited amounting to £nil (2023: £10,000,000). The Directors do not recommend payment of a further dividend.
Directors
The Directors who held office during the year and up to the date of signature of the financial statements were as follows:
J M Rolph
P J Williamson
S A Thomas
(Resigned 5 July 2023)
G C Whitehouse
(Appointed 23 August 2023)
Financial instruments
Treasury operations and financial instruments
The company operates a treasury function which is responsible for managing the liquidity, interest and credit risks associated with the company’s activities.
Liquidity risk
The company manages its cash and borrowing requirements in order to maximise interest income and minimise interest expense, whilst ensuring the company has sufficient liquid resources to meet the operating needs of the business.
Credit risk
Investments of cash surpluses, borrowings and derivative instruments are made through banks and companies which must fulfil credit rating criteria approved by the Board.
All customers who wish to trade on credit terms are subject to credit verification procedures. Trade debtors are monitored on an ongoing basis and provision is made for doubtful debts where necessary.
Auditor
The auditor, Morgan Berkeley Limited, are deemed to be reappointed under section 487(2) of the Companies Act 2006.
KINGSWOOD CORPORATION LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 28 FEBRUARY 2024
- 3 -
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
(a) so far as the directors are aware, there is no relevant audit information of which the company's auditors are unaware, and
(b) they have taken all the steps that they ought to have taken as directors in order to make themselves aware of any relevant audit information and to establish that the company's auditors are 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.
On behalf of the board
G C Whitehouse
Director
13 September 2024
KINGSWOOD CORPORATION LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF KINGSWOOD CORPORATION LIMITED
- 4 -
Opinion
We have audited the financial statements of Kingswood Corporation Limited (the 'company') for the year ended 28 February 2024 which comprise the income statement, the statement of comprehensive income, the statement of financial position, 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 28 February 2024 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.
KINGSWOOD CORPORATION LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF KINGSWOOD CORPORATION LIMITED (CONTINUED)
- 5 -
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.
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. We also considered laws and regulations that have a direct impact on the preparation of the financial statements, such as the Companies Act 2006.
We evaluated the directors’ and management’s incentives and opportunities for fraudulent manipulation of the financial statements (including the risk of override of controls) and determined that the principal risks were related to posting manual journal entries to manipulate financial performance.
Our audit procedures were designed to respond to those identified risks, including non-compliance with laws and regulations (irregularities) and fraud that are material to the financial statements. Our audit procedures included but were not limited to:
Discussing with the directors and management their policies and procedures regarding compliance with laws and regulations;
Communicating identified laws and regulations throughout our engagement team and remaining alert to any indications of non-compliance throughout our audit; and
Considering the risk of acts by the company which were contrary to applicable laws and regulations, including fraud.
KINGSWOOD CORPORATION LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF KINGSWOOD CORPORATION LIMITED (CONTINUED)
- 6 -
Our audit procedures in relation to fraud included but were not limited to:
Making enquiries of the directors and management on whether they had knowledge of any actual, suspected or alleged fraud;
Gaining an understanding of the internal controls established to mitigate risks related to fraud;
Discussing amongst the engagement team the risks of fraud; and
Addressing the risks of fraud through management override of controls by performing journal entry testing.
There are inherent limitations in the audit procedures described above and the primary responsibility for the prevention and detection of irregularities including fraud rests with management. As with any audit, there remained a risk of non-detection of irregularities, as these may involve collusion, forgery, intentional omissions, misrepresentations or the override of internal controls.
A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's 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.
Pierre Yat Keung Leong
Senior Statutory Auditor
For and on behalf of Morgan Berkeley Limited
15 September 2024
Chartered Certified Accountants
Statutory Auditor
Westgate Chambers
8a Elm Park Road
Pinner
Middlesex
HA5 3LA
KINGSWOOD CORPORATION LIMITED
INCOME STATEMENT
FOR THE YEAR ENDED 28 FEBRUARY 2024
- 7 -
2024
2023
Notes
£
£
Revenue
3
-
82,992
Administrative expenses
(145,486)
Other operating income
4
Operating profit/(loss)
4
-
(62,494)
Investment income
6
5,000,168
Profit before taxation
4,937,674
Tax on profit
7
16,175
Profit for the financial year
4,953,849
The income statement has been prepared on the basis that all operations are continuing operations.
KINGSWOOD CORPORATION LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 28 FEBRUARY 2024
- 8 -
2024
2023
£
£
Profit for the year
4,953,849
Other comprehensive income
-
-
Total comprehensive income for the year
4,953,849
KINGSWOOD CORPORATION LIMITED
STATEMENT OF FINANCIAL POSITION
AS AT
28 FEBRUARY 2024
28 February 2024
- 9 -
2024
2023
Notes
£
£
£
£
Non-current assets
Property, plant and equipment
9
83,970
Investments
10
400
1,206,402
400
1,290,372
Current assets
Trade and other receivables
12
10,011,552
10,034,706
Cash and cash equivalents
154,317
10,011,552
10,189,023
Current liabilities
13
(8,921,186)
(10,378,118)
Net current assets/(liabilities)
1,090,366
(189,095)
Total assets less current liabilities
1,090,766
1,101,277
Provisions for liabilities
Deferred tax liability
14
10,511
-
(10,511)
Net assets
1,090,766
1,090,766
Equity
Called up share capital
15
400
400
Retained earnings
1,090,366
1,090,366
Total equity
1,090,766
1,090,766
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 13 September 2024 and are signed on its behalf by:
G C Whitehouse
Director
Company registration number 03295013 (England and Wales)
KINGSWOOD CORPORATION LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 28 FEBRUARY 2024
- 10 -
Share capital
Retained earnings
Total
Notes
£
£
£
Balance at 1 March 2022
400
6,136,517
6,136,917
Year ended 28 February 2023:
Profit and total comprehensive income
-
4,953,849
4,953,849
Dividends
8
-
(10,000,000)
(10,000,000)
Balance at 28 February 2023
400
1,090,366
1,090,766
Year ended 28 February 2024:
Profit and total comprehensive income
-
Balance at 28 February 2024
400
1,090,366
1,090,766
KINGSWOOD CORPORATION LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 28 FEBRUARY 2024
- 11 -
1
Accounting policies
Company information
Kingswood Corporation Limited is a private company limited by shares incorporated in England and Wales. The registered office is Browne Jacobson LLP (Cs), Mowbray House, Castle Meadow Road, Nottingham, NG2 1BJ. The principal place of business is Mercury House, Kingswood Road, Hampton Lovett, Droitwich Spa, WR9 0QH.
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 £.
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:
Section 7 ‘Statement of Cash Flows’: Presentation of a statement of cash flow and related notes and disclosures;
Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instrument Issues: Interest income/expense and net gains/losses for financial instruments not measured at fair value; basis of determining fair values; details of collateral, loan defaults or breaches, details of hedges, hedging fair value changes recognised in profit or loss and in other comprehensive income;
Section 33 ‘Related Party Disclosures’: Compensation for key management personnel.
The company has taken advantage of the exemption under section 400 of the Companies Act 2006 not to prepare consolidated accounts. The financial statements present information about the company as an individual entity and not about its group.
Kingswood Corporation Limited is a wholly owned subsidiary of Kingswood Mobility Group Limited and the results of Kingswood Corporation Limited are included in the consolidated financial statements of Kingswood Mobility Group Limited which are available from the Companies House.
1.2
Going concern
Atruet the time of approving the financial statements, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.
1.3
Revenue
Turnover represents amounts receivable for rental income and management charges net of VAT and is recognised when entitled to the income.
1.4
Property, plant and equipment
Property, plant and equipment are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.
KINGSWOOD CORPORATION LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 28 FEBRUARY 2024
1
Accounting policies
(Continued)
- 12 -
Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:
Plant and machinery
25% per annum on straight line basis
Fixtures, fittings & equipment
20-25% per annum on straight line basis
Motor vehicles
25-33.33% per annum on straight line basis
The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is credited or charged to profit or loss.
1.5
Non-current investments
Interests in subsidiaries are initially measured at cost and subsequently measured at cost less any accumulated impairment losses. The investments are assessed for impairment at each reporting date and any impairment losses or reversals of impairment losses are recognised immediately in profit or loss.
A subsidiary is an entity controlled by the company. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.
1.6
Impairment of non-current assets
At each reporting period end date, the company reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.
1.7
Cash and cash equivalents
Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.
1.8
Financial instruments
The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the company's statement of financial position when the company becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
Basic financial assets
Basic financial assets, which include trade and other receivables and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.
KINGSWOOD CORPORATION LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 28 FEBRUARY 2024
1
Accounting policies
(Continued)
- 13 -
Other financial assets
Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.
Impairment of financial assets
Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.
Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.
If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.
Derecognition of financial assets
Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the company transfers the financial asset and substantially all the risks and rewards of ownership to another entity, 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.
Classification of financial liabilities
Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.
Basic financial liabilities
Basic financial liabilities, including trade and other payables, bank loans, loans from fellow group companies and preference shares that are classified as debt, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.
Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.
Trade payables are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade payables are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.
KINGSWOOD CORPORATION LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 28 FEBRUARY 2024
1
Accounting policies
(Continued)
- 14 -
Other financial liabilities
Derivatives, including interest rate swaps and forward foreign exchange contracts, are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in profit or loss in finance costs or finance income as appropriate, unless hedge accounting is applied and the hedge is a cash flow hedge.
Debt instruments that do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured at fair value through profit or loss. Debt instruments may be designated as being measured at fair value through profit or loss to eliminate or reduce an accounting mismatch or if the instruments are measured and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy.
Derecognition of financial liabilities
Financial liabilities are derecognised when the company’s contractual obligations expire or are discharged or cancelled.
1.9
Equity instruments
Equity instruments issued by the company are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.
1.10
Taxation
The tax expense represents the sum of the tax currently payable and deferred tax.
Current tax
The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the income statement because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.
Deferred tax
Deferred taxation is provided at appropriate rates on all timing differences using the liability method only to the extent that, in the opinion of the directors, there is a reasonable probability that a liability or asset will crystallise in the foreseeable future.
1.11
Employee benefits
The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or non-current assets.
The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.
Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.
1.12
Foreign exchange
Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation in the period are included in profit or loss.
KINGSWOOD CORPORATION LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 28 FEBRUARY 2024
- 15 -
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. No critical accounting policies or significant estimation uncertainties have been identified.
The Directors do not deem there to be any significant judgements or key sources of estimation uncertainty.
3
Revenue
An analysis of the company's revenue is as follows:
2024
2023
£
£
Revenue analysed by class of business
Rent and management charges
-
82,992
2024
2023
£
£
Other revenue
Interest income
-
168
Dividends received
-
5,000,000
4
Operating profit/(loss)
2024
2023
Operating profit/(loss) for the year is stated after charging/(crediting):
£
£
Fees payable to the company's auditor for the audit of the company's financial statements
5,750
Depreciation of owned property, plant and equipment
-
98,219
Profit on disposal of property, plant and equipment
-
(25,792)
5
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2024
2023
Number
Number
Directors
3
3
The directors are remunerated through other entities within the group.
KINGSWOOD CORPORATION LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 28 FEBRUARY 2024
- 16 -
6
Investment income
2024
2023
£
£
Interest income
Interest on bank deposits
168
Income from fixed asset investments
Income from shares in group undertakings
5,000,000
Total income
5,000,168
7
Taxation
2024
2023
£
£
Current tax
Adjustments in respect of prior periods
(5,819)
Deferred tax
Origination and reversal of timing differences
(10,356)
Total tax charge/(credit)
(16,175)
The actual charge/(credit) for the year can be reconciled to the expected (credit)/charge for the year based on the profit or loss and the standard rate of tax as follows:
2024
2023
£
£
Profit before taxation
4,937,674
Expected tax charge based on the standard rate of corporation tax in the UK of 25.00% (2023: 19.00%)
938,158
Tax effect of income not taxable in determining taxable profit
(4,900)
Group relief
(1,036)
Permanent capital allowances in excess of depreciation
17,779
Under/(over) provided in prior years
(5,820)
Dividend income
(950,000)
Deferred tax movement
(10,356)
Taxation charge/(credit) for the year
-
(16,175)
In the budget on 3 March 2021, the UK Government announced an increase in the main UK corporation tax rate from 19% to 25% with effect from 1 April 2023. The change in rate was substantively enacted on 24 May 2023. Deferred tax has been calculated 25% which was the tax rate substantively enacted at 31 August 2023.
For accounting periods that straddle 1 April 2023, company profits/losses arising in an accounting period are apportioned between financial years in which the accounting period falls.
KINGSWOOD CORPORATION LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 28 FEBRUARY 2024
- 17 -
8
Dividends
2024
2023
£
£
Final paid
10,000,000
9
Property, plant and equipment
Plant and machinery
Fixtures, fittings & equipment
Motor vehicles
Total
£
£
£
£
Cost
At 1 March 2023
20,520
429,549
335,158
785,227
Transfers to a fellow group company
(20,520)
(429,549)
(335,158)
(785,227)
At 28 February 2024
Depreciation and impairment
At 1 March 2023
16,562
425,374
259,321
701,257
Transfers to a fellow group company
(16,562)
(425,374)
(259,321)
(701,257)
At 28 February 2024
Carrying amount
At 28 February 2024
At 28 February 2023
3,958
4,175
75,837
83,970
10
Fixed asset investments
2024
2023
Notes
£
£
Investments in subsidiaries
11
400
1,206,402
Movements in non-current investments
Shares in subsidiaries
£
Cost or valuation
At 1 March 2023
1,206,402
Transfers to a fellow group company
(1,206,002)
At 28 February 2024
400
Carrying amount
At 28 February 2024
400
At 28 February 2023
1,206,402
KINGSWOOD CORPORATION LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 28 FEBRUARY 2024
10
Fixed asset investments
(Continued)
- 18 -
The 100% share capital of Ashley Anderson Limited and Assistive Bathing Limited was transferred from Kingswood Corporation Limited to Kingswood Mobility Group Limited as of 1 March 2023.
11
Subsidiaries
Details of the company's subsidiaries at 28 February 2024 are as follows:
Name of undertaking
Registered office
Nature of business
Class of
% Held
shares held
Direct
Erinstar Limited
Mowbray House, Castle Meadow Road, Nottingham, England, NG2 1BJ
Non-trading company
Ordinary
100.00
Willowbrook Limited
Mowbray House, Castle Meadow Road, Nottingham, England, NG2 1BJ
Non-trading company
Ordinary
100.00
Home Mobility Logistics Limited
Mowbray House, Castle Meadow Road, Nottingham, England, NG2 1BJ
Dormant company
Ordinary
100.00
12
Trade and other receivables
2024
2023
Amounts falling due within one year:
£
£
Amounts owed by group undertakings
10,011,552
10,028,121
Other receivables
3,155
Prepayments and accrued income
3,430
10,011,552
10,034,706
13
Current liabilities
2024
2023
£
£
Trade payables
10,630
Amounts owed to group undertakings
8,921,187
10,346,672
Taxation and social security
9,218
Accruals and deferred income
-
11,598
8,921,187
10,378,118
14
Deferred taxation
Deferred tax assets and liabilities are offset where the company has a legally enforceable right to do so. The following is the analysis of the deferred tax balances (after offset) for financial reporting purposes:
Liabilities
Liabilities
2024
2023
Balances:
£
£
Gains on interest rate SWAP
-
10,511
KINGSWOOD CORPORATION LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 28 FEBRUARY 2024
14
Deferred taxation
(Continued)
- 19 -
2024
Movements in the year:
£
Liability at 1 March 2023
10,511
Transfer on disposal
(10,511)
Liability at 28 February 2024
-
15
Share capital
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
400
400
400
400
16
Financial commitments, guarantees and contingent liabilities
Cross guarantee and debenture is provided by the company for the borrowings of its ultimate parent company, Kingswood Mobility Group Limited, and all of its subsidiaries.
The security is a fixed charge over all fixed assets, both tangible and intangible, and a floating charge over all other assets.
17
Ultimate controlling party
The parent company of Kingswood Corporation Limited is Kingswood Mobility Group Limited, a company registered in England and Wales, with its registered office situated at Browne Jacobson Llp (Cs) Mowbray House, Castle Meadow Road, Nottingham, England, NG2 1BJ.
The results of Kingswood Corporation Limited are consolidated in its parent company, Kingswood Mobility Group Limited, which prepares consolidated financial statements. Copies of the consolidated financial statements can be obtained from Companies House.
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