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Registered number: 11126669












KINGSTON 048 LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

 

KINGSTON 048 LIMITED

CONTENTS



Page
Company information
 
1
Strategic report
 
2 - 4
Directors' report
 
5
Directors' responsibilities statement
 
6
Independent auditor's report
 
7 - 10
Profit and loss account
 
11
Balance sheet
 
12
Statement of changes in equity
 
13
Notes to the financial statements
 
14 - 25

 

KINGSTON 048 LIMITED
 
COMPANY INFORMATION


Directors
Y Wang 
T Luan 




Company secretary
Taylor Wessing Secretaries Limited



Registered number
11126669



Registered office
5 New Street Square

London

United Kingdom

EC4A 3TW




Independent auditor
Blick Rothenberg Audit LLP
Chartered Accountants & Statutory Auditor

16 Great Queen Street

Covent Garden

London

WC2B 5AH




Page 1 -

 

KINGSTON 048 LIMITED
 
STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023

Introduction
 
The directors present their strategic report and financial statements for the year ended 31 December 2023. 
The principal activity of the company during the year continued to be that of property development.

Business review
 
The profit and loss account on page 11 of the financial statements provides a summary of the company's trading results for the year. The performance and results for the year are in line with the directors' expectations.
During the year, the company faced significant challenges due to turbulent market conditions and broader economic uncertainties. While the fundamental shortage of homes in the United Kingdom continues to support long-term demand, market volatility has impacted financial performance.
The company recorded a turnover decrease of 82% from £53.1m to £9.3m, primarily due to the timing of project completions and prevailing market conditions. Additionally, an impairment loss (£28.03m) was recognised during the year, reflecting adjustments to asset valuations in response to market fluctuations.
Despite these challenges, the company successfully sold residential units in London. However, due to the impairment and lower turnover, the company reported a loss for the year. The directors remain committed to strengthening the business, optimising project execution, and positioning the company for future recovery and sustainable growth.
The company's balance sheet reflects the impact of the impairment adjustments, with net liabilities of £20.66m as of 31 December 2023 (compared to net assets of £5.82m in 2022). The directors continue to focus on prudent financial management and strategic investments to support future development opportunities.
The directors continue to review the business and industry to minimise or mitigate the risks that are prevalent in a commercial environment. The company continues to monitor the market closely in order to make informed decisions on future phases of development.

Principal risks and uncertainties
 
The principal uncertainties our business face are macroeconomic uncertainties which revolve primarily around heightened inflationary pressures. Variables such as shifts in interest rates may exert consequential effects on employment, wage growth, house prices, and consumer spending and confidence. The Help to Buy: Equity Loan scheme for new reservations ended in October 2022 and the scheme ended in March 2023. There was a notable absence of further measures being announced by HM Government that would incentivise house building and therefore we consider the market will continue to be a challenge in the short term.
The Board will actively monitor and adapt to market and economic fluctuations. Despite these challenges, we are confident in our operational performance, robust forward order book, and strong balance sheet. This positions us favourably, endowing us with the resilience and adaptability required to respond effectively to evolving market conditions.
The financial instruments used by the company arise wholly and directly from its activities. The main financial instruments comprise debtors, cash at bank and creditors. The financial risks arising from these financial instruments are considered low. The mature financial stability of the business ensures the company maintains excellent terms with preferred suppliers and their credit partners.
Cash reserves have remained healthy over the year and the company continues to trade with the support of its parent undertakings. Working capital will continue to be monitored on a regular basis by the directors.
 
Page 2 -

 

KINGSTON 048 LIMITED

STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023

Principal risks and uncertainties (continued)
The directors have not delegated the responsibility of monitoring financial risk management and the company's finance department implements the policies set by the company's directors. The department has specific guidelines agreed by the directors to manage credit risk.
Liquidity and cash flow risk
The directors consider the company to have sufficient available funds for operations. The directors are presented with cashflow reporting on a monthly basis when future plans, opportunities and risks are discussed.
Price risk
Expenditure made by the company is authorised prior to it being made by management in order to ensure that goods and services are not obtained at a higher price than necessary.
Data and compliance risk
The company is aware of the increased risk of ransomware and other IT security issues. To mitigate this risk, the company ensures it is running the latest versions of all software and maintains a strict firewall discipline. Data is regularly backed up.

Financial key performance indicators
 
The key performance indicators used by the company include gross profit margin, which before impairment declined from 18.3% to 13.3%, primarily due to the impact of lower sales volume. Turnover also decreased significantly from £53.1m to £9.3m, reflecting market volatility and project completion timing.
Given the challenging market conditions and the necessary financial adjustments, the results for the year reflect the prudent approach taken by the company in assessing asset values and managing operational risks. The directors remain focused on stabilising financial performance and positioning the business for future recovery.

Other key performance indicators
 
The non-financial key performance indicators include ensuring that developments are built to the highest specification in line with modern construction designs.
The directors are mindful of environmental issues and have sought to minimise the impact of the company's activities on the environment.
Key performance indicators are maintained across all parts of the business to ensure we are constantly monitoring and challenging our results.

Future developments

The board recognises the long-term demand for housing in the UK and the potential for future growth in housebuilding. However, achieving sustainable growth will depend on broader economic conditions, including a stable mortgage framework that ensures access to competitive and affordable high loan-to-value mortgages. This also requires improved consumer confidence in employment prospects and overall economic stability.
Given the highly regulated and capital-intensive nature of the real estate sector, macroeconomic uncertainties and market volatility continue to pose significant challenges. The ability to scale operations effectively will depend on coordinated and consistent government policies at both the national and local levels, particularly in areas related to housing supply, planning regulations, and financial support mechanisms.
In light of these factors, the company is prioritising financial prudence and risk management while remaining focused on delivering high-value residential projects. Our strategy has been adjusted to reflect current market conditions, ensuring that new developments remain viable in a period of economic uncertainty. The directors remain committed to positioning the company for long-term recovery and growth while navigating the cyclical risks inherent in the industry.

Page 3 -

 

KINGSTON 048 LIMITED

STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023

Statement by the directors on performance of their statutory duties in accordance with S172 (1) Companies Act 2006
 
The board of directors of Kingston 048 Limited consider, both individually and together, that they have acted in the way they consider, in good faith, would be most likely to promote the success of the company for the benefit of its members as a whole in decisions taken during the year ended 31 December 2023. In particular:
 
Our long term objective is to build high quality developments which will positively contribute to the United Kingdom's housing supply. We firmly believe that providing modern designs at a fair and transparent price is the best strategy for growing the business over the long term.
 
Our employees are fundamental to the delivery of our plan. We aim to be a responsible employer and the health, safety and wellbeing of our employees and the employees of contractors is one of our primary considerations in the way we conduct business.
 
The satisfaction of our customers is one of the principal key performance indicators for the directors. Reports are made to the directors on prospective customers, feedback from customers and business development opportunities.
 
We work with our suppliers to help drive change in our organisation through promoting new ideas, whilst working with our suppliers to ensure that they reflect the same values and behaviours that we expect from our own people. The board has oversight of the procurement and contract management processes in place and receives regular updates on any matters of significance.
 
As well as customers and suppliers, we seek to build strong relationships with other key stakeholders in the areas in which we operate. Our directors take an active interest in these connections and participate where possible in building such relationships.
 
The directors recognise the importance of the company's role in managing social, economic and environmental issues in the course of running its business.
 
As the board of directors, our intention is to behave responsibly and ensure that management operate the business in a responsible manner, operating within the high standards of business conduct and good governance expected for a business such as ours and in doing so, will contribute to the delivery of our plan The intention is to nurture our reputation, through both the construction and delivery of our plan, that reflects our responsible behaviour.
 
As the board of directors, our intention is to behave responsibly toward our shareholders and treat them fairly and equally, so they too may benefit from the successful delivery of our plan.


This report was approved by the board and signed on its behalf.



T Luan
Director

Date: 11 February 2025
Page 4 -

 

KINGSTON 048 LIMITED

DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023

The directors present their report and the financial statements for the year ended 31 December 2023.

Results and dividends

The loss for the year, after taxation, amounted to £26,429,204 (2022 - profit £7,062,861).

An interim ordinary dividend was paid amounting to £50,000 (2022: £nil). The directors do no recommend payment of a final dividend.

Directors

The directors who served during the year were:

J He (resigned 13 April 2023)
Y Wang 
Z Li (resigned 13 April 2023)
T Luan (appointed 13 April 2023)


Streamlined Energy and Carbon Reporting (SECR)

The company has not disclosed information in respect of greenhouse gas emissions, energy consumption and energy efficiency action as its energy consumption in the United Kingdom for the year is 40,000kWh or lower.

Matters covered in the Strategic report

As permitted by s414c(11) of the Companies Act 2006, the directors have elected to disclose information, required to be in the directors' report by Schedule 7 of the 'Large and Medium-sized Companies and Groups (Accounts and Reports) Regulations 2008', in the strategic report.

Disclosure of information to auditor

Each of the persons who are directors at the time when this directors' report is approved has confirmed that:
 
so far as the director is aware, there is no relevant audit information of which the company's auditor is unaware, and

the director has taken all the steps that ought to have been taken as a director in order to be aware of any relevant audit information and to establish that the company's auditor is aware of that information.

This report was approved by the board and signed on its behalf.
 





T Luan
Director

Date: 11 February 2025
Page 5 -

 

KINGSTON 048 LIMITED
 
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 31 DECEMBER 2023

The directors are responsible for preparing the strategic report, the directors' 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 applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland'. 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 for the company's financial statements and then apply them consistently;

make judgments and accounting estimates that are reasonable and prudent;

state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements;

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 to enable them to ensure that the financial statements comply with the Companies Act 2006They 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.

Page 6 -

 

KINGSTON 048 LIMITED

INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF KINGSTON 048 LIMITED
FOR THE YEAR ENDED 31 DECEMBER 2022

Opinion


We have audited the financial statements of Kingston 048 Limited (the 'company') for the year ended 31 December 2023, which comprise the profit and loss account, the balance sheet, the statement of changes in equity and the notes to the financial statements, including significant accounting policiesThe 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 31 December 2023 and of its 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 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 United Kingdom, including the Financial Reporting Council'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.


Other information


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 reportOur 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.


Page 7 -

 

KINGSTON 048 LIMITED

INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF KINGSTON 048 LIMITED (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023

Opinion 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 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.


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 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 directors' responsibilities statement set out on page 6, 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.


Page 8 -

 

KINGSTON 048 LIMITED

INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF KINGSTON 048 LIMITED (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023

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. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

the engagement partner ensured that the engagement team collectively had the appropriate competence, capabilities and skills to identify or recognise non-compliance with applicable laws and regulations;
we identified the laws and regulations applicable to the company through discussions with directors and other management, and from our commercial knowledge and experience of the real estate development sector;
we focused on specific laws and regulations which we considered may have a direct material effect on the financial statements or the operations of the company, including the Companies Act 2006, taxation legislation;
we assessed the extent of compliance with the laws and regulations identified above through making enquiries of management and inspecting legal correspondence; and
identified laws and regulations were communicated within the audit team regularly and the team remained alert to instances of non-compliance throughout the audit.
 
We assessed the susceptibility of the company’s financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by:

making enquiries of management as to where they considered there was susceptibility to fraud, their knowledge of actual, suspected and alleged fraud; and
considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations.
 
To address the risk of fraud through management bias and override of controls, we:

performed analytical procedures to identify any unusual or unexpected relationships;
tested a sample of journal entries to identify unusual transactions; and
investigated the rationale behind significant or unusual transactions.
 
In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to:

agreeing financial statement disclosures to underlying supporting documentation;
enquiring of management as to actual and potential litigation and claims; and
reviewing correspondence with HM Revenue and Customs.
 
Page 9 -

 

KINGSTON 048 LIMITED

INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF KINGSTON 048 LIMITED (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023

Auditor's responsibilities for the audit of the financial statements (continued)
There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the directors and other management and the inspection of regulatory and legal correspondence, if any.
Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion.


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 auditor's report.


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 2006Our 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.





Heather Powell (senior statutory auditor)
  
for and on behalf of
Blick Rothenberg Audit LLP
 
Chartered Accountants
Statutory Auditor
  
16 Great Queen Street
Covent Garden
London
WC2B 5AH

 
Date: 
17 February 2025
Page 10 -

 

KINGSTON 048 LIMITED
 
PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 31 DECEMBER 2023

As restated
2023
2022
Note
£
£

  

Turnover
 4 
9,338,443
53,105,444

Cost of sales
  
(36,130,379)
(43,406,443)

Gross (loss)/profit
  
(26,791,936)
9,699,001

Selling costs
  
(264,724)
(1,355,748)

Administrative expenses
  
(423,238)
(343,312)

Other operating income
 6 
-
411,965

Operating (loss)/profit
 5 
(27,479,898)
8,411,906

Interest receivable and similar income
 8 
11,974
7,481

Interest payable and similar expenses
 9 
(585)
(90,345)

(Loss)/profit before taxation
  
(27,468,509)
8,329,042

Tax on (loss)/profit
 10 
1,039,305
(1,266,181)

(Loss)/profit for the financial year
  
(26,429,204)
7,062,861

There are no items of other comprehensive income for either the year or the prior year other than the (loss)/ profit for the year. Accordingly, no statement of other comprehensive income has been presented.
Page 11 -


 
REGISTERED NUMBER: 11933185
KINGSTON 048 LIMITED

BALANCE SHEET
AS AT 31 DECEMBER 2023

As restated
2023
2022
Note
£
£

Current assets
  

Stocks
 11 
53,837,266
87,697,840

Debtors: amounts falling due within one year
 12 
528,018
854,420

Cash at bank and in hand
 13 
28,927
442,233

  
54,394,211
88,994,493

Creditors: amounts falling due within one year
 14 
(75,051,893)
(83,172,971)

Net current (liabilities)/assets
  
 
 
(20,657,682)
 
 
5,821,522

Total assets less current liabilities
  
(20,657,682)
5,821,522

  

Net (liabilities)/assets
  
(20,657,682)
5,821,522


Capital and reserves
  

Called up share capital 
 15 
100
100

Profit and loss account
 18 
(20,657,782)
5,821,422

Total equity
  
(20,657,682)
5,821,522


The financial statements were approved and authorised for issue by the board and were signed on its behalf by: 




T Luan
Director

Date: 11 February 2025

The notes on pages 14 to 25 form part of these financial statements.
Page 12 -

 

KINGSTON 048 LIMITED

STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2023


Called up share capital
Profit and loss account
Total equity

£
£
£


At 1 January 2022 (as previously stated)
100
(1,087,228)
(1,087,128)

Prior year adjustment - correction of error
-
(154,211)
(154,211)


At 1 January 2022 (as restated)
100
(1,241,439)
(1,241,339)


Comprehensive income for the year

Profit for the financial year
-
7,062,861
7,062,861



At 1 January 2023 (as previously stated)
100
6,172,877
6,172,977

Prior year adjustment - correction of error
-
(351,455)
(351,455)


At 1 January 2023 (as restated)
100
5,821,422
5,821,522


Comprehensive income for the year

Loss for the financial year
-
(26,429,204)
(26,429,204)


Contributions by and distributions to owners

Dividends: Equity capital
-
(50,000)
(50,000)


At 31 December 2023
100
(20,657,782)
(20,657,682)


The notes on pages 14 to 25 form part of these financial statements.

Page 13 -

 

KINGSTON 048 LIMITED

NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

1.


General information

Kingston 048 Limited is a private company limited by shares and incorporated in England and Wales. The address of its registered office is 5 New Street Square, London, United Kingdom, EC4A 3TW.
The financial statements are presented in Sterling (£), which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.

2.Accounting policies

 
2.1

Basis of preparation of financial statements

The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and the Companies Act 2006.

The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires management to exercise judgment in applying the company's accounting policies (see note 3).

The company has taken advantage of the following disclosure exemptions in preparing these financial statements, as permitted by FRS 102: 
 
Section 3 Financial Statement Presentation paragraph 3.17(d) (inclusion of statement of cash flows);
Section 7 Statement of Cash Flows (inclusion of statement of cash flows);
Section 11 Financial Instruments paragraphs 11.42, 11.44, 11.45, 11.47, 11.48 (a) (iii), 11.48 (a) (iv), 11.48 (b) and 11.48 (c), (disclosures relating to financial instruments); and
Section 33 Related Party Disclosures paragraph 33.7 (disclosures of key management personnel compensation)
 
The company is included in the consolidated financial statements of Poly (UK) Real Estate Development Limited for the year ended 31 December 2023. These financial statements may be obtained from Companies House, Crown Way, Cardiff, CF14 3UZ.

The following principal accounting policies have been applied:

Page 14 -

 

KINGSTON 048 LIMITED

NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

2.Accounting policies (continued)

 
2.2

Going concern

The financial statements have been prepared on a going concern basis.
The directors have considered future financial forecasts and funding of the company and making a profit in the future. 
The directors have considered future financial forecasts and the ability of the group to provide ongoing support. In making their going concern assessment, the directors have obtained written confirmation from their immediate parent company and also from the intermediate parent company that it will provide financial support to the company for a period of at least twelve months from the date of approval of the financial statements to assist in meeting the company's liabilities as and when they fall due to the extent that it is not available from its existing resources. The directors are not aware of any reasons why this support would be withdrawn in the foreseeable future.
The directors have made enquiries as to the financial position and performance of Hengfu (Hong Kong) Developments Limited. As disclosed in the most recent financial statements, Hengfu (Hong Kong) Developments Limited has a solvent balance sheet and has sufficient cash reserves to finance the company. After making enquiries of the directors of Hengfu (Hong Kong) Developments Limited, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence and meet its liabilities as they fall due for the foreseeable future, being a period of at least twelve months from the date these financial statements were approved. Accordingly, they continue to adopt the going concern basis in preparing the financial statements.

 
2.3

Foreign currency translation

Functional and presentation currency

The company's functional and presentational currency is GBP.

Transactions and balances

Foreign currency transactions are translated into the functional currency using the spot exchange rates at the dates of the transactions.

At each period end foreign currency monetary items are translated using the closing rate. Non-monetary items measured at historical cost are translated using the exchange rate at the date of the transaction and non-monetary items measured at fair value are measured using the exchange rate when fair value was determined.

 
2.4

Revenue

Revenue is measured at the fair value of the consideration received or receivable, and represents amounts receivable from the sale of properties, stated net of discounts and gross of any costs of sale.
The company recognises revenue when the amount of revenue can be reliably measured; when it is probable that future economic benefits will flow to the entity; and when specific criteria have been met for each of the company's activities. This usually occurs upon the completion of property contracts.

 
2.5

Interest income

Interest income is recognised in profit or loss using the effective interest method.

Page 15 -

 

KINGSTON 048 LIMITED

NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

2.Accounting policies (continued)

 
2.6

Current and deferred taxation

Tax is recognised in profit or loss except that a charge attributable to an item of income and expense recognised as other comprehensive income or to an item recognised directly in equity is also recognised in other comprehensive income or directly in equity respectively.

The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the balance sheet date in the countries where the company operates and generates income.

Deferred tax balances are recognised in respect of all timing differences that have originated but not reversed by the balance sheet date, except that:
The recognition of deferred tax assets is limited to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits; and
Any deferred tax balances are reversed if and when all conditions for retaining associated tax allowances have been met.

Deferred tax balances are not recognised in respect of permanent differences. Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the balance sheet date.


 
2.7

Finance costs

Finance costs are charged to profit or loss over the term of the debt using the effective interest method so that the amount charged is at a constant rate on the carrying amount. Issue costs are initially recognised as a reduction in the proceeds of the associated capital instrument.

 
2.8

Stocks

Stocks represent work in progress and finished properties relating to property development, and are stated at the lower of cost and net realisable value. The cost of work in progress comprises land, buildings, design costs, construction costs including raw materials, direct labour, and other direct costs incurred in bringing the property sites to their present condition. Net realisable value is the estimated selling price less all estimated costs of completion and costs to be incurred in marketing and selling.

At each balance sheet date, the sites are assessed for impairment. If a site is impaired, the carrying amount is reduced to its selling price less costs to complete and sell. The impairment loss is recognised immediately in profit or loss.

Page 16 -

 

KINGSTON 048 LIMITED

NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

2.Accounting policies (continued)

  
2.9

Financial instruments

The company has elected to apply Sections 11 and 12 of FRS 102 in respect of financial instruments.
Financial assets and financial liabilities are recognised when the company becomes party to the contractual provisions of the instrument. 
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.
The company’s policies for its major classes of financial assets and financial liabilities are set out below. 
Financial assets
Basic financial assets, including trade and other debtors and cash and bank balances are initially recognised at transaction price, 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 for a similar debt instrument. Financing transactions are those in which payment is deferred beyond normal business terms or is financed at a rate of interest that is not a market rate.
Such assets are subsequently carried at amortised cost using the effective interest method, less any impairment.
Financial liabilities
Basic financial liabilities, including trade and other creditors and loans from fellow group companies 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 for a similar debt instrument. Financing transactions are those in which payment is deferred beyond normal business terms or is financed at a rate of interest that is not a market rate.
Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.
Impairment of financial assets
Financial assets measured at cost and amortised cost are assessed at the end of each reporting period for objective evidence of impairment. If objective evidence of impairment is found, an impairment loss is recognised in the profit and loss account. 
For financial assets measured at cost less impairment, the impairment loss is measured as the difference between the asset's carrying amount and the best estimate of the amount the company would receive for the asset if it were to be sold at the reporting date. 
For financial assets measured at amortised cost, the impairment loss is measured as the difference between the asset's carrying amount and the present value of estimated cash flows discounted at the asset's original effective interest rate. If the financial asset has a variable interest rate, the discount rate for measuring any impairment loss is the current effective interest rate determined under the contract.
 
Page 17 -

 

KINGSTON 048 LIMITED

NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

2.Accounting policies (continued)

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 and financial liabilities
Financial assets are derecognised when (a) the contractual rights to the cash flows from the asset expire or are settled, or (b) substantially all the risks and rewards of the ownership of the asset are transferred to another party or (c) despite having retained some significant risks and rewards of ownership, control of the asset has been transferred to another party who has the practical ability to unilaterally sell the asset to an unrelated third party without imposing additional restrictions. 
Financial liabilities are derecognised when the liability is extinguished, that is when the contractual obligation is discharged, cancelled or expires. 
Offsetting of financial assets and financial liabilities
Financial assets and liabilities are offset and the net amount reported in the balance sheet when there is an 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.

 
2.10

Cash and cash equivalents

Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours. Cash equivalents are highly liquid investments that mature in no more than three months from the date of acquisition and that are readily convertible to known amounts of cash with insignificant risk of change in value.

  
2.11

Share capital

Ordinary shares are classified as equity.

 
2.12

Dividends

Equity dividends are recognised when they become legally payable. Equity dividends are recognised when approved by the board.

Page 18 -

 

KINGSTON 048 LIMITED

NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

3.


Judgments in applying accounting policies 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, if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods.
The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are outlined below.
Carrying value of stock
The most critical estimates and assumptions for stock relate to the determination of carrying value at the lower of cost and net realisable value. During the year the company has conducted reviews of the net realisable value of its development sites. During these reviews the estimated net realisable value of the sites were found to be lower than their carrying value and so the company has impaired the stock valuation.
The key estimates in these reviews are those used to estimate the realisable value of a developed site, which is determined by forecast sales rates, expected sales prices and estimated costs to complete.
Inventory recognised to cost of sales on a percentage basis
The initial costs of acquiring the land and the expenditure incurred in developing the properties are initially recognised within stock on the balance sheet. Upon the completion of sales contracts of the properties, the company releases the cost recognised within stock to cost of sales on a percentage basis. This basis is calculated as a proportion of Gross Development Value (GDV) compared to total expected sales revenue.


4.


Turnover

The whole of the turnover is attributable to the principal activity of the company's residential property development.

All turnover arose within the United Kingdom.


5.


Operating (loss)/profit

The operating (loss)/profit is stated after charging:

2023
2022
£
£

Audit fees payable to the company's auditor
22,200
31,300

Non-audit fees payable to the company's auditor
7,600
7,300

Intangible assets written off
-
56,038

Page 19 -

 

KINGSTON 048 LIMITED

NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

6.


Other operating income

2023
2022
£
£

Other operating income
-
411,965


Other operating income represents net deposits forfeited by customers unable to complete on the purchase of properties.


7.


Employees




The company has no employees other than the directors, who did not receive any remuneration (2022 - £NIL).


8.


Interest receivable

2023
2022
£
£


Bank interest receivable
11,974
7,481


9.


Interest payable

2023
2022
£
£


Other interest payable
585
90,345

Page 20 -

 

KINGSTON 048 LIMITED

NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

10.


Taxation


As restated
2023
2022
£
£



Current tax on profits for the year
-
1,039,305

Adjustments in respect of previous periods
(1,039,305)
-


Total current tax
(1,039,305)
1,039,305

Deferred tax


Origination and reversal of tax losses
-
226,876

Total deferred tax
-
226,876


Taxation on (loss)/profit on ordinary activities
(1,039,305)
1,266,181

Factors affecting tax charge for the year

The tax assessed for the year is higher than (2022 - lower than) the standard rate of corporation tax in the UK of 23.5% (2022 - 19%). The differences are explained below:

As restated
2023
2022
£
£


(Loss)/profit on ordinary activities before tax
(27,468,509)
8,329,042


(Loss)/profit on ordinary activities multiplied by standard rate of corporation tax in the UK of 23.5% (2022 - 19%)
(6,460,593)
1,582,518

Effects of:


Unrelieved tax losses carried forward
5,499,621
-

Other differences leading to an increase (decrease) in the tax charge
-
10,648

Group relief
-
(326,985)

Difference in tax rates
(78,333)
-

Total tax (credit)/ charge for the year
(1,039,305)
1,266,181


Factors that may affect future tax charges

From 1 April 2023 the corporation tax rate increased to 25% for companies with profits of over £250,000. Deferred taxes and unrelieved tax losses carried forward at the balance sheet date have been measured using these tax rates.

Page 21 -

 

KINGSTON 048 LIMITED

NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

11.


Stocks

As restated
2023
2022
£
£

Properties in the course of construction
37,788,554
64,234,118

Properties available for sale
16,048,712
23,463,722

53,837,266
87,697,840


There is no significant difference between the replacement cost of the stock and its carrying amount.
Stocks are stated after provisions for impairment of £28,036,056 (2022: £Nil).


12.


Debtors

2023
2022
£
£


Other debtors
528,018
741,910

Prepayments and accrued income
-
112,510

528,018
854,420



13.


Cash and cash equivalents

2023
2022
£
£

Cash at bank and in hand
28,927
442,233



14.


Creditors: Amounts falling due within one year

As restated
2023
2022
£
£

Amounts owed to group undertakings
74,061,875
80,993,062

Corporation tax
-
1,039,305

Accruals and deferred income
990,018
1,140,604

75,051,893
83,172,971


Amounts owed to group undertakings are interest free, have no fixed repayment date and are repayable on demand.

Page 22 -

 

KINGSTON 048 LIMITED

NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

15.


Share capital

2023
2022
£
£
Allotted, called up and fully paid



100 (2022 - 100) Ordinary shares of £1 each
100
100

The holders of ordinary shares are entitled to receive dividends as declared from time to time and are entitled to one vote per share at meetings of the company.



16.


Dividends

2023
2022
£
£

Ordinary


Interim ordinary dividend, declared and paid
50,000
-


17.


Related party transactions

The company has taken advantage of the exemption contained in FRS 102 section 33 "Related Party Disclosures" from disclosing transactions with entities which are a wholly owned part of the group.


18.


Reserves

Profit and loss account

The profit and loss account includes all current and prior period retained profits and losses.

19.


Prior year adjustment

A prior year adjustment has been recognised (i) to recognise development costs incurred that solely relate to specific phases of development, whereas previously they were spread across all developments; and (ii) to recognise the cost of purchasing the land by land area, whereas previously costs were allocated based on their relevant percentage of the Development Viability Assessment.
Accordingly, £154,212 of additional cost has been released to Cost of sales in 2021, consisting of additional development costs of £1,001,954 and a decrease in the value of the land released of £847,743. Further to this, £380,042 of cost has been reclassed within Stock from Work in Progress to Finished Goods, in relation to unsold stock which is subject to the same adjustment and is held within stock at 31 December 2021. This adjustment is reflected in the restated opening reserves for 2022 in the Statement of Changes in Equity.
in 2022, an additional £243,511 of cost was released from Stock to Cost of sales, consisting of additional development costs of £1,167,760 and a decrease in the value of the land released of £924,249. Further to this, £136,531 of cost has been reclassed within Stock from Work in Progress to Finished Goods, in relation to unsold stock which is subject to the same adjustment. This adjustment has had a net impact on the profit and loss for the year of £197,243, consisting of the £243,511 adjustment in relation to stock and a subsequent reduction in the tax charge of £46,267.
Page 23 -

 

KINGSTON 048 LIMITED

NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

19.

Prior year adjustment (continued)

The comparative amounts in the prior period presented have therefore been restated as detailed below:


As previously reported
Adjustment
As restated

£
£
£

Stock
 
 
 

As previously stated
 88,095,562
 -
 88,095,562

Effect of release of additional development costs
 -
 (2,169,714)
 (2,169,714)

Adjustment to land valuation
 -
 1,771,992
 1,771,992

 88,095,562
 (397,722)
 87,697,840

 
 
 

Corporation tax
 
 
 

As previously stated
 1,085,572
 -
 1,085,572

Impact on taxation from adjustment to stock
 -
 (46,267)
 (46,267)

 1,085,572
 (46,267)
 1,039,305

 
 
 

 89,181,134
 (443,989)
 88,737,145



1 January 2022
31 December 2022

£
£

Retained earnings as previously reported
 (1,087,228)
 6,172,877

Adjustments to prior year:
 
 

Effect of release of additional development costs
 (1,001,954)
 (2,169,714)

Adjustment to land valuation
 847,743
 1,771,992

Impact on taxation from adjustment to stock
 -
 46,267

 
 

Retained earnings as adjusted
 (1,241,439)
 5,821,422
Page 24 -

 

KINGSTON 048 LIMITED

NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

19.
Prior year adjustment (continued)

Reconciliation of changes in profit for the previous financial period


2022

£

Profit as previously stated
 7,260,105

Adjustments to prior year
 

Effect of release of additional development costs
 (1,167,760)

Adjustment to land valuations
 924,249

Impact on taxation from adjustment to stock
 46,267

 

Profit as adjusted
 7,062,861


20.


Controlling party

The immediate parent entity of Kingston 048 Limited is Poly (UK) Real Estate Development LimitedHengfu (Hong Kong) Developments Limited (Address: Unit 2301, 23/F Mira Place Tower A 132, Nathan Road, Tsimshatshui, Hong Kong) is the parent entity by virtue of its holding 100% of the share capital of the immediate parent entity.
The parent undertaking of the smallest group for which group financial statements are drawn up and of which the company is a member is Poly (UK) Real Estate Development Limited, a company incorporated in England and Wales, whose registered office is 5 New Street Square, London, United Kingdom, EC4A 3TW. Copies of these group financial statements are available to the public from Companies House, Crown Way, Cardiff, CF14 3UZ.
Poly Developments and Holdings Group Co. Limited (Address: 30-33F North Tower Poly International Square Guangzhou, 510308 China) is the ultimate parent entity by virtue of its holding 100% of the share capital of Hengfu (Hong Kong) Developments Limited and is the largest group for which group financial statements are prepared.
In the opinion of the directors, there is no ultimate controlling party.
 
Page 25 -