ACCOUNTS - Final Accounts

Operating profit

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

Registered number: OC356471

KITE LAKE CAPITAL MANAGEMENT (UK) LLP

ANNUAL REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2025

KITE LAKE CAPITAL MANAGEMENT (UK) LLP

INFORMATION

Designated Members	M Khadjenouri
	J P Lernout
	R B Haworth-Booth
	Kite Lake Capital Management Ltd
Members	C F Filionescu
	F H Dalby
	A D Pyke (appointed 1 April 2024)
	F J Sherman
	L Farina
	J Turner
	N McEwen
	A Coutand
	Canepa KL Holdings, Ltd
	KL Investments 1 Limited
	KL Investments 2 Limited
	P Dalla
	A Markham
	A Finsterbusch
	N Slikker
	KL Investments 3 Limited
	M Boeckmann
	I Parkinson
	A Rozanov

LLP registered number

OC356471

Registered office

6th Floor

1 Knightsbridge Green

London

SW1X 7QA

Independent auditor

Blick Rothenberg Audit LLP

Chartered Accountants

16 Great Queen Street

Covent Garden

London

WC2B 5AH

Bankers

HSBC Bank plc

West End Commercial Centre

16 King Street

Covent Garden

London

WC2E 8JF

KITE LAKE CAPITAL MANAGEMENT (UK) LLP

CONTENTS

	Page
Members' report	1 - 2
Independent auditor's report	3 - 5
Statement of comprehensive income	6
Balance sheet	7
Reconciliation of members' interests	8
Statement of cash flows	9
Notes to the financial statements	10 - 16

KITE LAKE CAPITAL MANAGEMENT (UK) LLP

MEMBERS' REPORT

FOR THE YEAR ENDED 31 MARCH 2025

The members present their annual report together with the audited financial statements of Kite Lake Capital Management (UK) LLP (the "LLP") for the year ended 31 March 2025.

Principal activities

The principal activity of the LLP is the provision of investment management services. The firm is authorised and regulated by the Financial Conduct Authority ('FCA').

Designated Members

M Khadjenouri, J P Lernout, R B Haworth-Booth and Kite Lake Capital Management Ltd were designated members of the LLP throughout the year.

Members' capital and interests

Members share profits and losses in accordance with agreed profit sharing agreements.

Members' capital and drawings are determined by the regulatory capital requirements of the FCA and any trading needs of the LLP. Members' capital is not repayable except where allowed under FCA rules.

Public disclosure

The firm has documented the disclosures required by the FCA under MIFIDPRU. These are available from the website at www.kitelake.com.

Members' responsibilities statement

The members are responsible for preparing the annual report and the financial statements in accordance with applicable law and regulations.

Company law (as applied by The Limited Liability Partnerships (Accounts and Audit) (Application of Companies Act 2006) Regulations 2008) requires the members to prepare financial statements for each financial year. Under that law the members have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law, (as applied by The Limited Liability Partnerships (Accounts and Audit) (Application of Companies Act 2006) Regulations 2008) the members 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 LLP and of the profit or loss of the LLP for that period.

In preparing these financial statements, the members are required to:

∙select suitable accounting policies 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 LLP will continue in business.

The members are responsible for keeping adequate accounting records that are sufficient to show and explain the LLP's transactions and disclose with reasonable accuracy at any time the financial position of the LLP and to enable them to ensure that the financial statements comply with the Companies Act 2006 (as applied by The Limited Liability Partnerships (Accounts and Audit) (Application of the Companies Act 2006) Regulations 2008). They are also responsible for safeguarding the assets of the LLP and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Disclosure of information to auditor

Page 1

KITE LAKE CAPITAL MANAGEMENT (UK) LLP

MEMBERS' REPORT (CONTINUED)

FOR THE YEAR ENDED 31 MARCH 2025

Disclosure of information to auditor

Each of the persons who are members at the time when this members' report is approved has confirmed that:

∙so far as that member is aware, there is no relevant audit information of which the LLP's auditor is unaware, and

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

Auditor

The auditor, Blick Rothenberg Audit LLP, has indicated its willingness to continue in office.

This report was approved by the members and signed on their behalf by:

M Khadjenouri

Designated member

Date: 7 July 2025

Page 2

KITE LAKE CAPITAL MANAGEMENT (UK) LLP

INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF KITE LAKE CAPITAL MANAGEMENT (UK) LLP

FOR THE YEAR ENDED 31 MARCH 2025

Opinion

We have audited the financial statements of Kite Lake Capital Management (UK) LLP (the 'LLP') for the year ended 31 March 2025, which comprise the statement of comprehensive income, the balance sheet, the reconciliation of members' interests, the statement of cash flows and the notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

∙give a true and fair view of the state of the LLP's affairs as at 31 March 2025 and of its profit for the year then ended;

∙have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and

∙have been prepared in accordance with the requirements of the Companies Act 2006, as applied to limited liability partnerships by The Limited Liability Partnerships (Accounts and Audit) (Application of Companies Act 2006) Regulations 2008.

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 LLP 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 members' 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 LLP'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 members 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 members are responsible for the other information contained within the Annual Report. Our opinion on the financial statements does not cover the other information and 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 3

KITE LAKE CAPITAL MANAGEMENT (UK) LLP

INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF KITE LAKE CAPITAL MANAGEMENT (UK) LLP (CONTINUED)

FOR THE YEAR ENDED 31 MARCH 2025

Matters on which we are required to report by exception

We have nothing to report in respect of the following matters in relation to which the Companies Act 2006, as applied to limited liability partnerships, 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

∙we have not received all the information and explanations we require for our audit.

Responsibilities of members

As explained more fully in the members' responsibilities statement set out on page 1, the members 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 members 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 members are responsible for assessing the LLP'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 members either intend to liquidate the LLP or to cease operations, or have no realistic alternative but to do so.

Auditors' 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:

We identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and then design and perform audit procedures responsive to those risks, including obtaining audit evidence that is sufficient and appropriate to provide a basis for our opinion.
In identifying and assessing risks of material misstatement in respect of irregularities, including fraud, an non-compliance with laws and regulations, our procedures included the following: enquiring of management concerning the LLP’s policies with regards identifying, evaluating and complying with laws and regulations and whether they were aware of any instances of non-compliance; enquiring of management concerning the LLP’s policies for detecting and responding to the risks of fraud and whether they have knowledge of any actual, suspected or alleged fraud; enquiring of management concerning the LLP’s policies in relation to the internal controls established to mitigate risks related to fraud or non-compliance with laws and regulations; discussing among the engagement team where fraud might occur in the financial statements and any potential indicators of fraud; and obtaining an understanding of the legal and regulatory framework that the LLP operates in and focusing on those laws and regulations that had a direct effect on the financial statements or that had a fundamental effect on the operations of the LLP. The key laws and regulations we considered in this context included the UK Companies Act 2006 and the Financial Services and Markets Act 2000.
One particular focus area was the risk of fraud through management override of controls. Our procedures to respond to risks identified included the following: performing analytical procedures to identify any unusual or unexpected relationships that may indicate risks of material misstatement due to fraud; reviewing the bank statements of the LLP for evidence of any large or unusual activity which may be indicative of fraud; enquiring of management in relation to any potential litigation and claims; and testing the appropriateness of journal entries

Page 4

KITE LAKE CAPITAL MANAGEMENT (UK) LLP

INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF KITE LAKE CAPITAL MANAGEMENT (UK) LLP (CONTINUED)

FOR THE YEAR ENDED 31 MARCH 2025

and other adjustments.
Another focus area was non-compliance with the rules of the Financial Conduct Authority (‘the FCA’). The LLP was authorised and regulated by the FCA throughout the period. Our procedures to respond to risks identified included the following: reviewing correspondence between the LLP and the FCA; performing analytical review to detect receipts of client money and remaining alert to the possibility of accidental receipt of client monies; and discussion of regulatory matters with the appointed officers of the LLP.
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 members and other management and the inspection of regulatory and legal correspondence, if any.

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 LLP's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006, as applied by Part 12 of The Limited Liability Partnerships (Accounts and Audit) (Applications of Companies Act 2006) Regulations 2008. Our audit work has been undertaken so that we might state to the LLP'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 LLP and the LLP's members, as a body, for our audit work, for this report, or for the opinions we have formed.

Simon Lewis (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

7 July 2025

Page 5

KITE LAKE CAPITAL MANAGEMENT (UK) LLP

STATEMENT OF COMPREHENSIVE INCOME

FOR THE YEAR ENDED 31 MARCH 2025

	2025	2024
Note	£	£


Turnover		47,409,409	38,654,654
Cost of sales		(237,099)	(262,457)
Gross profit		47,172,310	38,392,197
Administrative expenses		(3,748,789)	(3,382,376)
Operating profit	4	43,423,521	35,009,821
Interest receivable and similar income		198,561	85,214
Profit before tax		43,622,082	35,095,035
Profit for the year before members' remuneration and profit shares available for discretionary division among members		43,622,082	35,095,035

There was no other comprehensive income for 2025(2024:£NIL).

The notes on pages 10 to 16 form part of these financial statements.

Page 6

REGISTERED NUMBER:OC356471

KITE LAKE CAPITAL MANAGEMENT (UK) LLP

BALANCE SHEET

AS AT 31 MARCH 2025

		2025		2024
Note		£		£

Fixed assets
Tangible fixed assets			35,925		53,810
Current assets
Debtors: amounts falling due within one year	8	2,396,193		1,576,784
Bank and cash balances		7,863,609		6,387,170
		10,259,802		7,963,954
Creditors: amounts falling due within one year	9	(433,070)		(300,147)
Net current assets			9,826,732		7,663,807
Net assets attributable to members			9,862,657		7,717,617

Represented by:
Loans and other debts due to members within one year
Other amounts	10	8,763,657	6,619,617
Members' other interests
Members' capital classified as equity		1,099,000	1,098,000
		9,862,657	7,717,617

Total members' interests
Amounts due from members (included in debtors)	8	(439,286)	(316,455)
Loans and other debts due to members	10	8,763,657	6,619,617
Members' other interests		1,099,000	1,098,000
		9,423,371	7,401,162

The financial statements were approved and authorised for issue by the members and were signed on their behalf by:

M Khadjenouri

Designated member

Date: 7 July 2025

Page 7

KITE LAKE CAPITAL MANAGEMENT (UK) LLP

RECONCILIATION OF MEMBERS' INTERESTS

FOR THE YEAR ENDED 31 MARCH 2025


	EQUITY Members' other interests			DEBT Loans and other debts due to members less any amounts due from members in debtors		Total members' interests
	Members' capital (classified as equity)	Other reserves	Total	Other amounts	Total	Total
	£	£	£	£	£	£
Amounts due to members				6,514,754	6,514,754
Balance at 1 April 2023	697,100	-	697,100	6,514,754	6,514,754	7,211,854
Profit for the year available for discretionary division among members	-	35,095,035	35,095,035	-	-	35,095,035
Members' interests after profit for the year	697,100	35,095,035	35,792,135	6,514,754	6,514,754	42,306,889
Other division of profits	-	(35,095,035)	(35,095,035)	35,095,035	35,095,035	-
Amounts introduced by members	401,900	-	401,900	188,015	188,015	589,915
Repayment of capital	(1,000)	-	(1,000)	-	-	(1,000)
Drawings on account and distribution of profit	-	-	-	(34,769,554)	(34,769,554)	(34,769,554)
Other movements	-	-	-	(725,088)	(725,088)	(725,088)
Amounts due to members				6,619,617	6,619,617
Amounts due from members				(316,455)	(316,455)
Balance at 31 March 2024	1,098,000	-	1,098,000	6,303,162	6,303,162	7,401,162
Profit for the year available for discretionary division among members	-	43,622,082	43,622,082	-	-	43,622,082
Members' interests after profit for the year	1,098,000	43,622,082	44,720,082	6,303,162	6,303,162	51,023,244
Other division of profits	-	(43,622,082)	(43,622,082)	43,622,082	43,622,082	-
Amounts introduced by members	1,000	-	1,000	1,099,241	1,099,241	1,100,241
Drawings on account and distribution of profit	-	-	-	(41,922,243)	(41,922,243)	(41,922,243)
Other movements	-	-	-	(777,871)	(777,871)	(777,871)
Amounts due to members				8,763,657	8,763,657
Amounts due from members				(439,286)	(439,286)
Balance at 31 March 2025	1,099,000	-	1,099,000	8,324,371	8,324,371	9,423,371

The notes on pages 10 to 16 form part of these financial statements.

The ability of the members of the LLP to reduce the amount of members' other interests is restricted by the regulatory capital requirements of the FCA.

Page 8

KITE LAKE CAPITAL MANAGEMENT (UK) LLP

STATEMENT OF CASH FLOWS

FOR THE YEAR ENDED 31 MARCH 2025

			2025	2024
			£	£

Cash flows from operating activities
Profit for the financial year	43,622,082	35,095,035
Adjustments for:
Depreciation of tangible assets	34,763	41,671
Interest receivable	(198,561)	(85,214)
(Increase) in debtors	(1,474,450)	(511,245)
Increase/(decrease) in creditors	132,923	(50,565)
Net cash generated from operating activities	42,116,757	34,489,682

Cash flows from investing activities
Purchase of tangible fixed assets	(16,877)	(34,736)
Interest received	198,561	85,214
Net cash from investing activities	181,684	50,478
Cash flows from financing activities
Members' capital contributed	1,000	401,900
Members' capital repaid	-	(1,000)
Amounts introduced by members	1,099,241	188,015
Distribution paid to members	(41,922,243)	(34,769,554)
Net cash used in financing activities	(40,822,002)	(34,180,639)
Net increase in cash and cash equivalents	1,476,439	359,521
Cash and cash equivalents at beginning of year	6,387,170	6,027,649
Cash and cash equivalents at the end of year	7,863,609	6,387,170

Cash and cash equivalents at the end of year comprise:
Cash at bank and in hand	7,863,609	6,387,170

The notes on pages 10 to 16 form part of these financial statements.

Page 9

KITE LAKE CAPITAL MANAGEMENT (UK) LLP

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2025

1.	General information

Kite Lake Capital Management (UK) LLP is a limited liability partnership incorporated in the UK and registered in England & Wales. Its registered address is 6th Floor, 1 Knightsbridge Green, London SW1X 7QA.
The LLP's principal activity is the provision of investment management services.

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 and the requirements of the Statement of Recommended Practice "Accounting by Limited Liability Partnerships" published in December 2021.

Management do not consider there to be any significant accounting estimates or any material judgemental areas in applying the accounting policies.

2.2

Going concern

The members have prepared forecasts which, taking account of reasonably possible changes in trading performance, indicate that the LLP should be cash generative and able to meet its liabilities as they fall due and maintain a regulatory capital surplus. The members therefore have a reasonable expectation that the LLP has adequate resources to continue in operation for the foreseeable future. Thus they adopt the going concern basis of accounting in preparing the annual financial statements.

2.3

Foreign currency translation

Functional and presentation currency

The LLP'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.

Foreign exchange gains and losses resulting from the settlement of transactions and from the translation at period-end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognised in profit or loss.

2.4

Revenue

Revenue represents fees receivable during the period for discretionary investment management services. Management fees are recognised over the period over which management services are provided. Performance fees, which are based on the investment performance achieved for certain client portfolios relative to predefined benchmarks, are recognised as revenue at the end of the period over which the performance is measured. Revenue is stated net of any rebates due to third parties in respect of the related income.

Page 10

KITE LAKE CAPITAL MANAGEMENT (UK) LLP

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2025

2.Accounting policies (continued)

2.5

Operating leases: the LLP as lessee

Rentals paid under operating leases are charged to profit or loss on a straight-line basis over the lease term.

2.6

Pensions

Defined contribution pension plan

The LLP operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the LLP pays fixed contributions into a separate entity. Once the contributions have been paid the LLP has no further payment obligations.

The contributions are recognised as an expense in profit or loss when they fall due. Amounts not paid are shown in accruals as a liability in the balance sheet. The assets of the plan are held separately from the LLP in independently administered funds.

2.7

Tax provisions

The tax payable on profits is the personal liability of the members.

2.8

Members' remuneration and profit allocation

A member's share in the profit or the loss for the year is accounted for as an allocation of profits. Unallocated profits and losses are included within "other reserves."

2.9

Tangible fixed assets

Tangible fixed assets are stated at historical cost less accumulated depreciation.

Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, using the straight-line method.

Depreciation is provided on the following basis:

Leasehold improvements	-	Over the length of the lease
Fixtures and fittings	-	4 years
Office equipment	-	3 years

Page 11

KITE LAKE CAPITAL MANAGEMENT (UK) LLP

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2025

2.Accounting policies (continued)

2.10

Financial instruments

The LLP does not trade in financial instruments and all such instruments arise directly from operations.
All trade and other debtors are initially recognised at transaction value, as none contain in substance a financing transaction. Thereafter trade and other debtors are reviewed for impairment where there is objective evidence based on observable data that the balance may be impaired. The LLP does not hold collateral against its trade and other receivables so its exposure to credit risk is the net balance of trade and other debtors after allowance for impairment.
The LLP's cash holdings comprise on demand balances. All cash is held with banks with strong external credit ratings.
Trade and other creditors and accruals are initially recognised at transaction value as none represent a financing transaction. They are only derecognised when they are extinguished.
As the LLP only has short term receivables and payables, its net current asset position after taking account of amounts due to members is a reasonable measure of its liquidity at any given time.

Turnover

The whole of the turnover is attributable to the principal activity of the LLP.

All turnover arose within the United Kingdom.

Depreciation of tangible fixed asset	34,763	41,671
Fees payable to the LLP's auditor for the audit of the LLP's annual financial statements	10,000	10,000
Fees payable to the LLP's auditor for other services	44,450	61,588
Exchange differences	1,641	(18,613)
Operating lease rentals - land and buildings	303,444	303,944

Page 12

KITE LAKE CAPITAL MANAGEMENT (UK) LLP

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2025

Wages and salaries	1,187,190	828,022
Social security costs	165,426	106,763
Cost of defined contribution scheme	41,609	49,596
	1,394,225	984,381

The average monthly number of persons employed during the year was as follows:

	2025	2024
	No.	No.

Employees	5	5

6.	Information in relation to members
		2025	2024
		Number	Number


The average number of members during the year was	23	22

					2025	2024
					£	£

	The amount of profit attributable to the member with the largest entitlement was	8,334,750	6,361,157

Page 13

KITE LAKE CAPITAL MANAGEMENT (UK) LLP

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2025

7.	Tangible fixed assets

	Leasehold improvements	Fixtures and fittings	Office equipment	Total
	£	£	£	£
Cost or valuation
At 1 April 2024	83,828	36,126	221,072	341,026
Additions	-	601	16,276	16,877
At 31 March 2025	83,828	36,727	237,348	357,903
Depreciation
At 1 April 2024	78,634	33,481	175,101	287,216
Charge for the year	5,194	1,847	27,721	34,762
At 31 March 2025	83,828	35,328	202,822	321,978
Net book value
At 31 March 2025	-	1,399	34,526	35,925
At 31 March 2024	5,194	2,645	45,971	53,810

Debtors

					2025	2024
					£	£


Other debtors	360,984	310,981
Prepayments and accrued income	1,595,923	949,348
Amounts due from members	439,286	316,455
	2,396,193	1,576,784

Page 14

KITE LAKE CAPITAL MANAGEMENT (UK) LLP

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2025

9.	Creditors: amounts falling due within one year
		2025	2024
		£	£

Trade creditors	36,498	9,251
Other taxation and social security	23,937	21,803
Other creditors	32,007	2,856
Accruals and deferred income	340,628	266,237
	433,070	300,147


	Amounts due to members in respect of expenses incurred on behalf of the LLP and undrawn profits	8,763,657	6,619,617

Loans and other debts due to members rank equally with debts due to ordinary creditors in the event of a winding up.

11.	Analysis of net debt

		At 1 April 2024	Arising from cash flows	Profit allocation	At 31 March 2025
		£	£	£	£

Cash at bank and in hand	6,387,170	1,476,439	-	7,863,609
Net debt (before members' debt)	6,387,170	1,476,439	-	7,863,609
Loans and other debts due to members
Other amounts due to members	(6,619,617)	40,836,162	(42,980,202)	(8,763,657)
Net debt	(232,447)	42,312,601	(42,980,202)	(900,048)

Page 15

KITE LAKE CAPITAL MANAGEMENT (UK) LLP

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2025

Not later than 1 year

75,861

151,722

13.

Related party transactions

Included within turnover is £41,230,728 (2024: £32,410,746) received from parties related by virtue of common control. The amount due from these parties at the year end was £897,890 (2024: £289,650).
During the year the corporate member, Kite Lake Capital Management Ltd ('KLCML'), recharged to the LLP expenses incurred on its behalf of £20,303 (2024: £20,191). In addition the LLP allocated profit of £280,000 (2024: £375,000) to KLCML. The amount due to KLCML at the year end was £281,507 (2024: £316,455 due from).

14.	Controlling party

Kite Lake Capital Management Ltd is the immediate parent company and the head of the largest group for which consolidated accounts are prepared. Copies of these consolidated accounts can be obtained from the Company Secretary, Kite Lake Capital Management Ltd, 6th Floor, 1 Knightsbridge Green, London, SW1X 7QA.
The ultimate parent company is Kite Lake Capital Ltd., a company incorporated under the laws of the Cayman Islands.

Page 16