KT Sports (Orkney) Limited

	Page
Balance Sheet	1—2
Notes to the Financial Statements	3—7

1. General Information

KT Sports (Orkney) Limited is a private company, limited by shares, incorporated in Scotland, registered number SC363572 . The registered office is 1a Mounthoolie Place, Kirkwall, KW15 1JZ.

2. Accounting Policies

2.1. Basis of Preparation of Financial Statements

The financial statements have been prepared under the historical cost convention and in accordance with Financial Reporting Standard 102 section 1A Small Entities "The Financial Reporting Standard applicable in the UK and Republic of Ireland" and the Companies Act 2006.

2.2. Turnover

Turnover represents retail cash sales plus invoices sales for the year, net of VAT.

Sale of goods

Turnover from the sale of goods is recognised when the significant risks and rewards of ownership of the goods has transferred to the buyer. This is usually at the point that the customer has signed for the delivery of the goods.

2.3. Intangible Fixed Assets and Amortisation - Goodwill

Goodwill is the difference between amounts paid on the acquisition of a business and the fair value of the separable net assets. It is amortised to the profit and loss account over its estimated economic life of ten years.

2.4. Tangible Fixed Assets and Depreciation

Tangible fixed assets are measured at cost less accumulated depreciation and any accumulated impairment losses. Depreciation is provided at rates calculated to write off the cost of the fixed assets, less their estimated residual value, over their expected useful lives on the following bases:

Freehold	2% on cost
Plant & Machinery	25% reducing balance
Motor Vehicles	25% reducing balance
Fixtures & Fittings	25% reducing balance
Computer Equipment	25% reducing balance

2.5. Stocks and Work in Progress

Stocks and work in progress are valued at the lower of cost and net realisable value after making due allowance for obsolete and slow-moving stocks. Cost includes all direct costs and an appropriate proportion of fixed and variable overheads. Work-in-progress is reflected in the accounts on a contract by contract basis by recording turnover and related costs as contract activity progresses.

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KT Sports (Orkney) Limited

Notes to the Financial Statements (continued)

For The Year Ended 31 January 2025

2.6. Financial Instruments

Financial instruments

The company has elected to apply the provisions of Section 11 'Basic Financial Instruments' 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 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 re 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.

2.7. Taxation

Income tax expense represents the sum of the tax currently payable and deferred tax.

The tax currently payable is based on taxable profit for the year. Taxable profit differs from profit as reported in the statement of comprehensive income because of items of income or expense that are taxable or deductible in other years and items that are never taxable or deductible. The company's liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the end of the reporting period.

Deferred tax is recognised on timing differences between the carrying amounts of assets and liabilities in the financial statements and the corresponding tax bases used in the computation of taxable profit. Deferred tax liabilities are generally recognised for all taxable timing differences. Deferred tax assets are generally recognised for all deductible temporary differences to the extent that it is probable that taxable profits will be available against which those deductible timing differences can be utilised. The carrying amount of deferred tax assets is reviewed at the end of each reporting period and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered.

...CONTINUED

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KT Sports (Orkney) Limited

Notes to the Financial Statements (continued)

For The Year Ended 31 January 2025

2.7. Taxation - continued

Deferred tax assets and liabilities are measured at the tax rates that are expected to apply in the period in which the liability is settled or the asset realised, based on tax rates (and tax laws) that have been enacted or substantively enacted by the end of the reporting period. Deferred tax liabilities are presented within provisions for liabilities and deferred tax assets within debtors. The measurement of deferred tax liabilities and assets reflect the tax consequences that would follow from the manner in which the Company expects, at the end of the reporting period, to recover or settle the carrying amount of its assets and liabilities.

Current and deferred tax are recognised in profit or loss for the year, except when they relate to items that are recognised in other comprehensive income or directly in equity, in which case current and deferred tax are recognised in other comprehensive income or directly in equity respectively.

2.8. Government Grant

Government grants are recognised in the profit and loss account in an appropriate manner that matches them with the expenditure towards which they are intended to contribute.

Grants for immediate financial support or to cover costs already incurred are recognised immediately in the profit and loss account. Grants towards general activities of the entity over a specific period are recognised in the profit and loss account over that period.

Grants towards fixed assets are recognised over the expected useful lives of the related assets and are treated as deferred income and released to the profit and loss account over the useful life of the asset concerned.

All grants in the profit and loss account are recognised when all conditions for receipt have been complied with.

3. Average Number of Employees

Average number of employees, including directors, during the year was: 7 (2024: 7)

4. Intangible Assets

	Goodwill
	£
Cost
As at 1 February 2024	81,800

As at 31 January 2025	81,800

Amortisation
As at 1 February 2024	81,800

As at 31 January 2025	81,800

Net Book Value
As at 31 January 2025	-

As at 1 February 2024	-

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KT Sports (Orkney) Limited

Notes to the Financial Statements (continued)

For The Year Ended 31 January 2025

5. Tangible Assets

	Land & Property
	Freehold	Plant & Machinery	Motor Vehicles	Fixtures & Fittings
	£	£	£	£
Cost
As at 1 February 2024	523,955	50,176	-	15,338
Additions	-	-	41,000	152
Disposals	-	-	(41,000 )	-

As at 31 January 2025	523,955	50,176	-	15,490

Depreciation
As at 1 February 2024	87,419	35,740	-	13,249
Provided during the period	10,479	3,609	-	561

As at 31 January 2025	97,898	39,349	-	13,810

Net Book Value
As at 31 January 2025	426,057	10,827	-	1,680

As at 1 February 2024	436,536	14,436	-	2,089


	Computer Equipment	Total
	£	£
Cost
As at 1 February 2024	3,921	593,390
Additions	-	41,152
Disposals	-	(41,000 )

As at 31 January 2025	3,921	593,542

Depreciation
As at 1 February 2024	2,612	139,020
Provided during the period	323	14,972

As at 31 January 2025	2,935	153,992

Net Book Value
As at 31 January 2025	986	439,550

As at 1 February 2024	1,309	454,370

6. Stocks

	2025	2024
	£	£
Stock	133,533	139,825

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KT Sports (Orkney) Limited

Notes to the Financial Statements (continued)

For The Year Ended 31 January 2025

7. Debtors

	2025	2024
	£	£
Due within one year
Trade debtors	2,551	8,899
Amounts owed by participating interests	2,248	-
Other debtors	5,883	13,867

	10,682	22,766

8. Creditors: Amounts Falling Due Within One Year

	2025	2024
	£	£
Trade creditors	39,367	24,467
Bank loans and overdrafts	-	14,747
Other creditors	3,147	25,677
Taxation and social security	44,568	19,647

	87,082	84,538

9. Creditors: Amounts Falling Due After More Than One Year

	2025	2024
	£	£
Bank loans	-	126,147
Other creditors	59,039	60,499

	59,039	186,646

10. Share Capital

	2025	2024
	£	£
Allotted, Called up and fully paid	100	100

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		2025		2024
	Notes	£	£	£	£
FIXED ASSETS
Tangible Assets	5		439,550		454,370

			439,550		454,370
CURRENT ASSETS
Stocks	6	133,533		139,825
Debtors	7	10,682		22,766
Cash at bank and in hand		48,955		80,589

		193,170		243,180
Creditors: Amounts Falling Due Within One Year	8	(87,082 )		(84,538 )

NET CURRENT ASSETS (LIABILITIES)			106,088		158,642

TOTAL ASSETS LESS CURRENT LIABILITIES			545,638		613,012

Creditors: Amounts Falling Due After More Than One Year	9		(59,039 )		(186,646 )

PROVISIONS FOR LIABILITIES
Deferred Taxation			(3,374 )		-

NET ASSETS			483,225		426,366

CAPITAL AND RESERVES
Called up share capital	10		100		100
Profit and Loss Account			483,125		426,266

SHAREHOLDERS' FUNDS			483,225		426,366