Company registration number 10735579 (England and Wales)
KITESWARMS LIMITED
Unaudited financial statements
For the year ended 29 February 2024
Pages for filing with registrar
KITESWARMS LIMITED
CONTENTS
Page
Balance sheet
1
Notes to the financial statements
2 - 6
KITESWARMS LIMITED
BALANCE SHEET
As at 29 February 2024
- 1 -
2024
2023
Notes
£
£
£
£
Fixed assets
Intangible assets
4
4,578,953
4,570,561
Tangible assets
5
10,965
31,627
4,589,918
4,602,188
Current assets
Debtors
7
528,252
527,527
Investments
50,305
60,000
Cash at bank and in hand
13,177
60,206
591,734
647,733
Creditors: amounts falling due within one year
8
(6,349,489)
(6,174,842)
Net current liabilities
(5,757,755)
(5,527,109)
Net liabilities
(1,167,837)
(924,921)
Capital and reserves
Called up share capital
3,600
3,600
Profit and loss reserves
(1,171,437)
(928,521)
Total equity
(1,167,837)
(924,921)
The director of the company has elected not to include a copy of the profit and loss account within the financial statements.true
For the financial year ended 29 February 2024 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.
The director acknowledges his responsibilities for complying with the requirements of the Companies Act 2006 with respect to accounting records and the preparation of financial statements.
The members have not required the company to obtain an audit of its financial statements for the year in question in accordance with section 476.
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 and signed by the director and authorised for issue on 29 November 2024
Mr R G Paelinck
Director
Company Registration No. 10735579
KITESWARMS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
For the year ended 29 February 2024
- 2 -
1
Accounting policies
Company information
Kiteswarms Limited is a private company limited by shares incorporated in England and Wales. The registered office is Connect House, 133-137 Alexandra Road, London, SW19 7JY.
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. The principal accounting policies adopted are set out below.
1.2
Going concern
The company has net current liabilities and net total liabilities at the balance sheet date. The company relies on the continued financial support of Malpertuus Anstalt whose ultimate controlling party is the owners of Kitewarms Limited (Reinhart Paelinck). The company has assurances from Malpertuus Anstalt that the financial support will continue for the foreseeable future. Accordingly the director has a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future and the going concern basis of accounting in preparing the financial statements continues to be appropriate.true
1.3
Research and development expenditure
Research expenditure is written off against profits in the year in which it is incurred. Identifiable development expenditure is capitalised to the extent that the technical, commercial and financial feasibility can be demonstrated.
1.4
Intangible fixed assets other than goodwill
Intangible assets acquired separately from a business are recognised at cost and are subsequently measured at cost less accumulated amortisation and accumulated impairment losses.
Intangible assets acquired on business combinations are recognised separately from goodwill at the acquisition date where it is probable that the expected future economic benefits that are attributable to the asset will flow to the entity and the fair value of the asset can be measured reliably; the intangible asset arises from contractual or other legal rights; and the intangible asset is separable from the entity.
Amortisation will begin when the intangible asset is ready and available for use.
1.5
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:
Plant & Machinery
20% Straight Line
Motor Vehicles
20% Straight Line
KITESWARMS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
For the year ended 29 February 2024
1
Accounting policies
(Continued)
- 3 -
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.
1.6
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.
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.
KITESWARMS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
For the year ended 29 February 2024
1
Accounting policies
(Continued)
- 4 -
1.9
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.
1.10
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.
2
Judgements and key sources of estimation uncertainty
In the application of the company’s accounting policies, the director is 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.
3
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2024
2023
Number
Number
Total
1
1
KITESWARMS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
For the year ended 29 February 2024
- 5 -
4
Intangible fixed assets
Other
£
Cost
At 1 March 2023
4,570,561
Additions
8,392
At 29 February 2024
4,578,953
Amortisation and impairment
At 1 March 2023 and 29 February 2024
Carrying amount
At 29 February 2024
4,578,953
At 28 February 2023
4,570,561
5
Tangible fixed assets
Plant and machinery etc
£
Cost
At 1 March 2023 and 29 February 2024
106,931
Depreciation and impairment
At 1 March 2023
75,305
Depreciation charged in the year
20,661
At 29 February 2024
95,966
Carrying amount
At 29 February 2024
10,965
At 28 February 2023
31,627
6
Subsidiaries
Details of the company's subsidiaries at 29 February 2024 are as follows:
Name of undertaking
Registered office
Class of
% Held
shares held
Direct
Kiteswarms GmbH
Germany
Ordinary shares
100.00
In the prior period a loan of £60,000 was provided to Kiteswarms Gmbh to aid the Company through the liquidation process. The Director's best estimate is that the balance will be repaid on liquidation within 12 months. As such it is classified as a current asset.
KITESWARMS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
For the year ended 29 February 2024
- 6 -
7
Debtors
2024
2023
Amounts falling due within one year:
£
£
Corporation tax recoverable
100
Other debtors
528,252
527,427
528,252
527,527
8
Creditors: amounts falling due within one year
2024
2023
£
£
Taxation and social security
369
263
Other creditors
6,349,120
6,174,579
6,349,489
6,174,842
9
Related party transactions
During the year, the company was loaned money from a company under the control and influence of the director, R Paelinck. The amount due to the related party at 29 February 2024 is £6,245,836 (2023: £6,078,672).
Interest is accrued on the loan at a rate of 2.75%. Interest for the period totalled £167,163 (2023: £162,690).
During the year, the company loaned money to a company under the control and influence of the director, R Paelinck. The amount due from the related party at 29 February 2024 is £525,625 (2023: £525,625). The loan is not interest bearing and is repayable on demand.