Company registration number 13532780 (England and Wales)
K & Z GROUP LIMITED
FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024
PAGES FOR FILING WITH REGISTRAR
K & Z GROUP LIMITED
CONTENTS
Page
Balance sheet
1
Notes to the financial statements
3 - 11
K & Z GROUP LIMITED
BALANCE SHEET
AS AT 31 MARCH 2024
31 March 2024
- 1 -
2024
2023
Notes
£
£
£
£
Fixed assets
Tangible assets
5
3,781,889
2,122,908
Current assets
Stocks
60,383
30,752
Debtors
6
1,527,477
596,320
Cash at bank and in hand
510,682
530,079
2,098,542
1,157,151
Creditors: amounts falling due within one year
7
(2,442,896)
(1,765,216)
Net current liabilities
(344,354)
(608,065)
Total assets less current liabilities
3,437,535
1,514,843
Creditors: amounts falling due after more than one year
8
(3,261,354)
(1,412,257)
Provisions for liabilities
(456,918)
(223,796)
Net liabilities
(280,737)
(121,210)
Capital and reserves
Called up share capital
100
100
Profit and loss reserves
(280,837)
(121,310)
Total equity
(280,737)
(121,210)
The directors of the company have elected not to include a copy of the profit and loss account within the financial statements.true
These financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime.
The financial statements were approved by the board of directors and authorised for issue on 13 September 2024 and are signed on its behalf by:
Mr S M Nanji
Director
Company Registration No. 13532780
K & Z GROUP LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 MARCH 2024
- 2 -
Share capital
Profit and loss reserves
Total
£
£
£
Balance at 1 April 2022
100
100
Year ended 31 March 2023:
Loss and total comprehensive income
-
(121,310)
(121,310)
Balance at 31 March 2023
100
(121,310)
(121,210)
Year ended 31 March 2024:
Loss and total comprehensive income
-
(159,527)
(159,527)
Balance at 31 March 2024
100
(280,837)
(280,737)
K & Z GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024
- 3 -
1
Accounting policies
Company information
K & Z Group Limited is a private company limited by shares incorporated in England and Wales. The registered office is Kalamu House, 11 Coldbath Square, London, EC1R 5HL.
1.1
Accounting convention
These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006 as applicable to companies subject to the small companies regime. The disclosure requirements of section 1A of FRS 102 have been applied other than where additional disclosure is required to show a true and fair view.
The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.
The financial statements have been prepared under the historical cost convention, modified to include the revaluation of freehold properties and to include investment properties and certain financial instruments at fair value. The principal accounting policies adopted are set out below.
The 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 for parent company information presented within the consolidated financial statements:
Section 4 ‘Statement of Financial Position’ – Reconciliation of the opening and closing number of shares;
Section 7 ‘Statement of Cash Flows’ – Presentation of a statement of cash low and related notes and disclosures;
Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instrument Issues’ – Carrying amounts, interest income/expense and net gains/losses for each category of financial instrument; 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 26 ‘Share based Payment’ – Share-based payment expense charged to profit or loss, reconciliation of opening and closing number and weighted average exercise price of share options, how the fair value of options granted was measured, measurement and carrying amount of liabilities for cash-settled share-based payments, explanation of modifications to arrangements;
Section 33 ‘Related Party Disclosures’ – Compensation for key management personnel.
K & Z GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
1
Accounting policies
(Continued)
- 4 -
1.2
Going concern
The company made a trueloss in the year of £159,527 (2023: £121,310), has net liabilities of £280,737 (2023: £121,210), net current liabilities of £344,354 (2023:£608,065) and earnings before interest, tax, depreciation and amortisation (EBITDA) of £923,011 (2023: £538,477).
The parent company and the company's lenders will continue to provide financial support to the company as required and thus the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future.
The directors have reviewed and assessed forecast budgets for the potential impact of uncertainties including inflationary pressures. The directors also considered the company’s financing facilities and future funding plans. Based on this, we confirmed that the application of the going concern basis for the preparation of the financial statements continued to be appropriate.
In accordance with their responsibilities, the directors have considered the appropriateness of the going concern basis for the preparation of the financial statements. The directors are not aware of any likely events, conditions or business risks beyond this period that may cast significant doubt on the company's ability to continue as a going concern. Accordingly, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future and so continue to prepare to prepare these financial statements on the going concern basis.
1.3
Turnover
Turnover represents the invoiced value, net of Value Added Tax, of food and beverage provided to customers. Turnover from restaurants is recognised when payment is tendered by the customer at the point of sale.
1.4
Tangible fixed assets
Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.
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:
Leasehold improvements
Enter depreciation rate via StatDB - cd99988
Plant and equipment
25% reducing balance method
Fixtures and fittings
25% reducing balance method
Motor vehicles
25% reducing balance method
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
Impairment of fixed 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.
Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.
K & Z GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
1
Accounting policies
(Continued)
- 5 -
1.6
Stocks
Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition.
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 balance sheet when the company becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
Basic financial assets
Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.
Classification of financial liabilities
Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.
Basic financial liabilities
Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.
Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.
1.9
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.
K & Z GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
1
Accounting policies
(Continued)
- 6 -
Current tax
The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.
Deferred tax
Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.
The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset when the company has a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.
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 fixed 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
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
1.13
Leases
Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leases asset are consumed.
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.
K & Z GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
2
Judgements and key sources of estimation uncertainty
(Continued)
- 7 -
Key sources of estimation uncertainty
The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are as follows.
Tangible and intangible assets
Depreciation and amortisation is provided on all tangible and intangible assets respectively, calculated to write off the cost of each asset over it estimated useful life. The estimation of an asset's useful economic life has a significant effect on the annual depreciation and amortisation charge. The Directors review the useful lives and residual values of the items of tangible and intangible assets on a regular basis.
3
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2024
2023
Number
Number
Total
141
91
4
Taxation
2024
2023
£
£
Deferred tax
Origination and reversal of timing differences
233,122
223,796
The actual charge for the year can be reconciled to the expected charge for the year based on the profit or loss and the standard rate of tax as follows:
2024
2023
£
£
Profit before taxation
73,595
102,486
Expected tax charge based on the standard rate of corporation tax in the UK of 25.00% (2023: 19.00%)
18,399
19,472
Tax effect of expenses that are not deductible in determining taxable profit
14,668
886
Unutilised tax losses carried forward
84,338
95,712
Group relief
50,326
45,850
Permanent capital allowances in excess of depreciation
(169,754)
(161,920)
Lease premium
3,837
Deferred tax adjustment for the year
233,122
223,796
Revenue item capitalised
(1,814)
Taxation charge for the year
233,122
223,796
K & Z GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 8 -
5
Tangible fixed assets
Leasehold improvements
Plant and equipment
Fixtures and fittings
Motor vehicles
Total
£
£
£
£
£
Cost
At 1 April 2023
1,348,162
114,252
973,782
25,340
2,461,536
Additions
696,139
1,473,533
66,693
81,750
2,318,115
At 31 March 2024
2,044,301
1,587,785
1,040,475
107,090
4,779,651
Depreciation and impairment
At 1 April 2023
168,326
25,652
142,227
2,423
338,628
Depreciation charged in the year
298,334
129,623
214,745
16,432
659,134
At 31 March 2024
466,660
155,275
356,972
18,855
997,762
Carrying amount
At 31 March 2024
1,577,641
1,432,510
683,503
88,235
3,781,889
At 31 March 2023
1,179,836
88,600
831,555
22,917
2,122,908
6
Debtors
2024
2023
Amounts falling due within one year:
£
£
Trade debtors
300,621
123,485
Amounts owed by group undertakings
20,111
14,761
Other debtors
1,206,745
458,074
1,527,477
596,320
7
Creditors: amounts falling due within one year
2024
2023
£
£
Bank loans
625,855
374,834
Trade creditors
503,261
306,152
Amounts owed to group undertakings
702,249
686,278
Taxation and social security
228,429
97,749
Other creditors
383,102
300,203
2,442,896
1,765,216
K & Z GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 9 -
8
Creditors: amounts falling due after more than one year
2024
2023
Notes
£
£
Bank loans and overdrafts
9
3,161,354
1,412,257
Other borrowings
9
100,000
3,261,354
1,412,257
The Bank loans are secured by the following:
Debenture in our favour from K & Z Group Limited.
Debenture in our favour from K & Z Holdings Limited.
Guarantee in our favour from K & Z Group Limited, K & Z Newhaven Limited, K & Z Group Limited
K & Z Property Limited, K & Z South London Limited and K & Z Crawley Limited.
The loans are subject to monthly repayments and commercial rates of interest.
9
Loans and overdrafts
2024
2023
£
£
Bank loans
3,787,209
1,787,091
Other loans
100,000
3,887,209
1,787,091
Payable within one year
625,855
374,834
Payable after one year
3,261,354
1,412,257
The bank loans are secured by debentures from K & Z Group Limited, K & Z Holdings Limited, K & Z Newhaven Limited, K & Z Property Limited, K & Z South London Limited, K & Z Crawley Limited as noted above. The loans are subject to monthly repayments and commercial rates of interest.
10
Deferred taxation
The following are the major deferred tax liabilities and assets recognised by the company and movements thereon:
Liabilities
Liabilities
2024
2023
Balances:
£
£
Accelerated capital allowances
456,918
223,796
K & Z GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
10
Deferred taxation
(Continued)
- 10 -
2024
Movements in the year:
£
Liability at 1 April 2023
223,796
Charge to profit or loss
233,122
Liability at 31 March 2024
456,918
The deferred tax liability set out above is expected to reverse within [12 months] and relates to accelerated capital allowances that are expected to mature within the same period.
11
Audit report information
As the income statement has been omitted from the filing copy of the financial statements, the following information in relation to the audit report on the statutory financial statements is provided in accordance with s444(5B) of the Companies Act 2006:
The auditor's report was unqualified.
Senior Statutory Auditor:
Shilpa Chheda
Statutory Auditor:
KLSA LLP
Date of audit report:
13 September 2024
12
Operating lease commitments
Lessee
At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, as follows:
2024
2023
£
£
Within one year
793,200
423,200
Between two and five years
2,013,200
1,026,400
In over five years
1,560,000
560,000
4,366,400
2,009,600
13
Related party transactions
The company has taken advantage of the exemption available in FRS 102 (s33 "Related Party Disclosure"), whereby it has not disclosed transactions with the parent company or any wholly owned subsidiary undertakings of the group.
Included in other borrowings falling due after one year is a Director's loan amounting to £100,000 (2023: £0).
K & Z GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 11 -
14
Parent company
The parent company is K & Z Holdings Limited and its registered office is Kalamu House, 11 Coldbath Square London, EC1R 5HL.
The largest group in which the entity is consolidated is K & Z Holdings Limited. The copies of the consolidated financial statements can be obtained from Kalamu House, 11 Coldbath Square, London EC1R 5HL.
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