Company registration number 10713368 (England and Wales)
K & Z PROPERTY LTD
FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024
PAGES FOR FILING WITH REGISTRAR
K & Z PROPERTY LTD
CONTENTS
Page
Balance sheet
1
Statement of changes in equity
2
Notes to the financial statements
3 - 9
K & Z PROPERTY LTD
BALANCE SHEET
AS AT
31 MARCH 2024
31 March 2024
- 1 -
2024
2023
Notes
£
£
£
£
Fixed assets
Tangible assets
5
2,505,138
2,537,100
Current assets
Debtors
6
194,160
190,149
Cash at bank and in hand
15,083
72,040
209,243
262,189
Creditors: amounts falling due within one year
7
(529,181)
(556,459)
Net current liabilities
(319,938)
(294,270)
Total assets less current liabilities
2,185,200
2,242,830
Creditors: amounts falling due after more than one year
8
(1,837,353)
(1,924,481)
Net assets
347,847
318,349
Capital and reserves
Called up share capital
100
100
Profit and loss reserves
347,747
318,249
Total equity
347,847
318,349
These financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime.
The directors of the company have elected not to include a copy of the profit and loss account within the financial statements.true
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 number 10713368 (England and Wales)
K & Z PROPERTY LTD
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
250,256
250,356
Year ended 31 March 2023:
Profit and total comprehensive income
-
67,993
67,993
Balance at 31 March 2023
100
318,249
318,349
Year ended 31 March 2024:
Profit and total comprehensive income
-
29,498
29,498
Balance at 31 March 2024
100
347,747
347,847
K & Z PROPERTY LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024
- 3 -
1
Accounting policies
Company information
K & Z Property Ltd 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.
1.2
Going concern
The company made a trueprofit in the year of £29,498 (2023: £67,993), has net assets of £347,847 (2023: £318,349) and net current liabilities of £319,938 (2023: £294,270).
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.
In addition, the directors aren't aware of any unlikely event, conditions and business risks beyond this point that may cast a significant doubt on the company's ability to continue as a going concern.
Based on this, we confirmed that the application of the going concern basis for the preparation of the financial statements continued to be appropriate.
K & Z PROPERTY LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
1
Accounting policies
(Continued)
- 4 -
1.3
Turnover
Turnover represents amounts receivable for rent net of VAT.
Revenue from rental income is accrued by reference to time on a straight line basis over the lease term.
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:
Freehold land and buildings
2% on the cost of buildings,
Freehold land is not depreciated.
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.
If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.
Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.
1.6
Cash at bank and in hand
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.
K & Z PROPERTY LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
1
Accounting policies
(Continued)
- 5 -
1.7
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.
1.8
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.
Changes in the fair value of derivatives that are designated and qualify as fair value hedges are recognised in profit or loss immediately, together with any changes in the fair value of the hedged asset or liability that are attributable to the hedged risk.
K & Z PROPERTY LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 6 -
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.
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.
Useful lives of property, plant and equipment
Management reviews the useful lives and residual values of the items of property, plant and equipment on a regular basis. During the financial year, the directors determined no significant changes in the useful lives and residual values.
3
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2024
2023
Number
Number
Total
4
Taxation
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
29,498
67,993
Expected tax charge based on the standard rate of corporation tax in the UK of 25.00% (2023: 19.00%)
7,375
12,919
Tax effect of expenses that are not deductible in determining taxable profit
600
Group relief
(13,947)
(17,296)
Permanent capital allowances in excess of depreciation
5,972
4,377
Taxation charge for the year
-
-
K & Z PROPERTY LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 7 -
5
Tangible fixed assets
Freehold land and buildings
£
Cost
At 1 April 2023 and 31 March 2024
2,687,727
Depreciation and impairment
At 1 April 2023
150,627
Depreciation charged in the year
31,962
At 31 March 2024
182,589
Carrying amount
At 31 March 2024
2,505,138
At 31 March 2023
2,537,100
6
Debtors
2024
2023
Amounts falling due within one year:
£
£
Other debtors
194,160
190,149
7
Creditors: amounts falling due within one year
2024
2023
£
£
Bank loans
81,796
114,093
Trade creditors
480
Amounts owed to group undertakings
419,401
419,401
Taxation and social security
10,861
13,820
Other creditors
16,643
9,145
529,181
556,459
K & Z PROPERTY LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 8 -
8
Creditors: amounts falling due after more than one year
2024
2023
Notes
£
£
Bank loans
1,737,353
1,824,481
Other creditors
100,000
100,000
1,837,353
1,924,481
The bank loan is secured by following:
Composite Company Unlimited Multilateral Guarantee dated 20 October 2017 given by K&Z Newhaven Limited, K&Z Property Limited, K&Z South London Limited, K&Z Crawley Limited, K&Z Group Limited and K&Z Holdings Limited to secure all liabilities of each other.
Debenture including fixed and floating debenture charges over all present freehold and leasehold property, other debts, chattels, goodwill and uncalled capital, both present and future dated 13 July 2017.
First legal charge dated 22 September 2017 over freehold of 94 High Street, Crawley, West Sussex.
First legal charge dated 2 October 2017 over freehold of 94 High Street, Crawley, West Sussex.
First legal charge dated 13 September 2019 over freehold of 63-64 Western Road, Brighton.
The loans are subject to monthly repayments and commercial rates of interest.
Amounts included above which fall due after five years are as follows:
Payable by instalments
1,410,168
1,368,114
9
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
10
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 within creditors are amounts payable to associated companies, K & Z Enterprises Ltd of £50,000 (2023: £50,000) and K & Z Wallington Ltd of £50,000 (2023: £50,000).
11
Parent company
The immediate parent company is K & Z Newhaven Limited and its registered office is Kalamu House, 11 Coldbath Square London, EC1R 5HL.
K & Z PROPERTY LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
11
Parent company
(Continued)
- 9 -
The ultimate parent undertaking 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.
12
Contingent Liability
The company has given unlimited cross guarantees as a security for the debts of group companies.
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