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Registered number:
FOR THE YEAR ENDED 31 DECEMBER 2024
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KITCHEN ARCHITECTURE LIMITED
COMPANY INFORMATION
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KITCHEN ARCHITECTURE LIMITED
CONTENTS
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KITCHEN ARCHITECTURE LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2024
The principal activity of the company in the year was that of the design, supply and installation of premium quality furniture and equipment via Design Centres in London, Oxford and Cheshire.
The results for the year ending 31 December 2024 and the financial position of the company are as shown in the annexed financial statements.
With intelligent, client focussed kitchen and interior solutions the company continues to enjoy successful trading in 2024 with turnover, gross profit and balance sheet value all increasing on 2023.
Sales growth of 5.3% from £15.181m in 2023 to £15.990m in 2024 is testament to our continued hard work in becoming the company of choice for discerning clients looking for a strong, reputable company providing a high end service from conception to completion for their living space requirements, whether it be a new kitchen or a whole house furniture project. Profits before tax (excluding the gain from investment property) of 10% have decreased slightly on 2023 (11%). This is mainly as a result of increased staff costs, but also other small increases in insurances, motor running costs and rates all of which have shown increases but monitored closely. 2025 is going to be a year of significant investment to further enhance not only our offering to clients, but also our operating efficiencies and training commitments to staff. This will include a fantastic new Design Centre in North London which we plan on opening towards the end of 2025, offering exciting new ranges from our London workshop. A new marketing strategy to enhance the recognition of the Kitchen Architecture brand will run in conjunction with the new Design Centre Launch and a new website will support the marketing activities and help to provide us more data and information on visitors as well as enhancing the customer experience. We are also exploring further opportunities to improve our internal CRM system with field integration technology, which will further improve our administration efficiencies.
The general global unrests, market and political conditions still create uncertainty. Such as material costs, exchange rate fluctuations and consumer confidence. The UK itself has been facing considerable cost of living challenges, high inflation and mortgage borrowings all impacting the housing and interiors market.
The company continually monitors these risks and takes all the necessary steps to mitigate them . We seek to manage risk by ensuring sufficient liquidity is available to meet foreseeable needs and to invest cash assets as safely and profitably as possible. We continue to maintain cash balances to fund all working capital requirements.
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KITCHEN ARCHITECTURE LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
The directors review and assess the financial KPI’s on an ongoing basis throughout the year to ensure that the performance and financial position of the business is maintained at expected levels. Any unexpected results are investigated and action taken to rectify any issues.
As mentioned above within the business review these include: • Sales growth 5.3% • Gross profit 40% • Profit before tax 10% As well as these we also undertake other measures throughout the year such as short and long term order intake, review marketing data, monitor design manager activity levels, overhead analysis and cashflow levels.
The quality of our people plays a huge role in our business success. We have continued to invest in people both from a recruitment and training perspective ensuring we provide engaging, high performing consultants for our clients.
We encourage staff to be fully involved with the future direction of the business and meet regularly to discuss strategic priorities. Employee turnover remains low and we have many long serving staff members. A third of our employees have been with us for over a decade with a number of those celebrating 20 years with the business in 2025.
We respect and value our staff and encourage them to support each other through teamwork to meet the needs of our clients.
Since 2009 we have had clear vision and values in place to help support and guide our team. Our business is built to give our clients the best service possible. By understanding their needs and requirements we aim to exceed expectations with an unrivalled service, high end products and excellent aftercare. We continue to invest in our Design Centres. This ensures we showcase the most desirable and influential furniture and products that meet the demands of the market and provide our clients with an experience that would be hard to surpass. Repeat business, close client relationships and consistent referrals show that this commitment to excellence in everything we do is key to our success.
This report was approved by the board and signed on its behalf.
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KITCHEN ARCHITECTURE LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2024
The directors present their report and the financial statements for the year ended 31 December 2024.
The directors are responsible for preparing the Strategic Report, the Directors' Report and the financial statements in accordance with applicable law and regulations.
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;
∙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 2006. They 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.
The profit for the year, after taxation, amounted to £1,146,649 (2023 - £1,613,535).
Details of dividends can be found in the notes.
The directors who served during the year were:
Indication of future developments can be found in the company's strategic report.
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KITCHEN ARCHITECTURE LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
The directors confirm that so far as they are aware, there is no relevant audit information (as defined by section 418(3) of the Companies Act 2006) of which the company’s auditors are unaware. They have taken all the steps that they ought to have taken as directors in order to make themselves aware of any relevant audit information and to establish that the company's auditors are aware of that information.
The auditors, Alder Demain & Akers Limited, will be proposed for reappointment in accordance with section 485 of the Companies Act 2006.
This report was approved by the board and signed on its behalf.
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KITCHEN ARCHITECTURE LIMITED
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF KITCHEN ARCHITECTURE LIMITED
We have audited the financial statements of KITCHEN ARCHITECTURE LIMITED (the 'Company') for the year ended 31 December 2024, which comprise the Statement of Income and Retained Earnings, the Balance Sheet, the Statement of Cash Flows and the related notes, 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).
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 Auditors' 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.
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.
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KITCHEN ARCHITECTURE LIMITED
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF KITCHEN ARCHITECTURE LIMITED (CONTINUED)
The other information comprises the information included in the Annual Report other than the financial statements and our Auditors' Report thereon. The directors are responsible for the other information contained within the Annual Report. Our 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.
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.
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.
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KITCHEN ARCHITECTURE LIMITED
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF KITCHEN ARCHITECTURE LIMITED (CONTINUED)
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 Auditors' 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 obtained an understanding of the legal and regulatory frameworks within which the company operates through discussion with directors and management and from our general commercial experience. - We considered the laws and regulations that have a direct effect on the determination of material amounts and disclosures in the financial statements were the Companies Act 2006 and FRS102. - We also considered tax compliance regulations, GDPR, employment legislation and health and safety legislation. - The identified laws and regulations were communicated to the audit team so that they could identify potential areas of non compliance throughout the audit Our main audit procedures to identify non-compliance with these laws and regulations was enquiry of the directors’ and other management and inspection of regulatory and legal correspondence. Other audit procedures that could help to identify non-compliance included the testing of journal entries, tests to supporting documents, performance of analytical procedures and the review of financial statement disclosures. Owing to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material misstatements in the financial statements, even though we have properly planned and performed our audit in accordance with auditing standards. For example, the further removed non-compliance with laws and regulations (irregularities) is from the events and transactions reflected in the financial statements, the less likely the inherently limited procedures required by auditing standards would identify it. In addition, as with any audit, there remained a higher risk of nondetection of irregularities, as these may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal controls. We are not responsible for preventing non-compliance and cannot be expected to detect non-compliance with all laws and regulations.
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 Auditors' 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 2006. Our 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 Auditors' 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.
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KITCHEN ARCHITECTURE LIMITED
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF KITCHEN ARCHITECTURE LIMITED (CONTINUED)
for and on behalf of
Accountants
Statutory auditors
2 Michaels Court
Hanney Road
Southmoor
OX13 5HR
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KITCHEN ARCHITECTURE LIMITED
STATEMENT OF INCOME AND RETAINED EARNINGS
FOR THE YEAR ENDED 31 DECEMBER 2024
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KITCHEN ARCHITECTURE LIMITED
REGISTERED NUMBER: 04389240
BALANCE SHEET
AS AT 31 DECEMBER 2024
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KITCHEN ARCHITECTURE LIMITED
REGISTERED NUMBER: 04389240
BALANCE SHEET (CONTINUED)
AS AT 31 DECEMBER 2024
The financial statements were approved and authorised for issue by the board and were signed on its behalf on
The notes on pages 15 to 34 form part of these financial statements.
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KITCHEN ARCHITECTURE LIMITED
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2024
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KITCHEN ARCHITECTURE LIMITED
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KITCHEN ARCHITECTURE LIMITED
ANALYSIS OF NET DEBT
FOR THE YEAR ENDED 31 DECEMBER 2024
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KITCHEN ARCHITECTURE LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
Kitchen Architecture Limited is a Private Company limited by shares which was incorporated in England and Wales.
The company's Registered Office and principal place of business is: Brasenose Farm, Brasenose Driftway, Oxford, Oxfordshire, OX4 2QZ. The principal activity of the company in the year was the design, supply and installation of premium indoor and outdoor furniture and equipment via Design Centres in Oxford, London and Cheshire. Persons of significant control are Mr R Gelling and Mrs J Gelling.
2.Accounting policies
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 following principal accounting policies have been applied:
After reviewing the company's forecasts and projections, the directors have a reasonable expectation that the group has adequate resources to continue in operational existence for the foreseeable future.
The company therefore continues to adopt the going concern basis in preparing its financial statements.
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KITCHEN ARCHITECTURE LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
2.Accounting policies (continued)
Functional and presentation currency
Transactions and balances
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KITCHEN ARCHITECTURE LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
2.Accounting policies (continued)
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KITCHEN ARCHITECTURE LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
2.Accounting policies (continued)
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KITCHEN ARCHITECTURE LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
2.Accounting policies (continued)
At each reporting date the company assesses whether there is any indication of impairment. If such indication exists, the recoverable amount of the asset is determined which is the higher of its fair value less costs to sell and its value in use. An impairment loss is recognised where the carrying amount exceeds the recoverable amount.
All intangible assets are considered to have a finite useful life. If a reliable estimate of the useful life cannot be made, the useful life shall not exceed ten years.
The estimated useful lives range as follows:
At each reporting date the Company assesses whether there is any indication of impairment. If such indication exists, the recoverable amount of the asset is determined which is the higher of its fair value less costs to sell and its value in use. An impairment loss is recognised where the carrying amount exceeds the recoverable amount.
Land is not depreciated. Depreciation on other assets 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:
The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.
Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in profit or loss.
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KITCHEN ARCHITECTURE LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
2.Accounting policies (continued)
Provisions are measured as the best estimate of the amount required to settle the obligation, taking into account the related risks and uncertainties.
The Company has elected to apply the provisions of Section 11 “Basic Financial Instruments” of FRS 102 to all of its financial instruments.
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KITCHEN ARCHITECTURE LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
2.Accounting policies (continued)
The Company has elected to apply the recognition and measurement provisions of IFRS 9 Financial Instruments (as adopted by the UK Endorsement Board) with the disclosure requirements of Sections 11 and 12 and the other presentation requirements of FRS 102.
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 trade and other debtors, cash and bank balances, are initially measured at their transaction price (adjusted for transaction costs except in the initial measurement of financial assets that are subsequently measured at fair value through profit and loss) and are subsequently carried at their amortised cost using the effective interest method, less any provision for impairment, 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.
Discounting is omitted where the effect of discounting is immaterial. The Company's cash and cash equivalents, trade and most other debtors due with the operating cycle fall into this category of financial instruments.
Other financial assets
Other financial assets, which includes investments in equity instruments which are not classified as subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the recognised transaction price. Such assets are subsequently measured at fair value with the changes in fair value being recognised in the profit or loss. Where other financial assets are not publicly traded, hence their fair value cannot be measured reliably, they are measured at cost less impairment.
Impairment of financial assets
At the end of each reporting period financial assets measured at amortised cost are assessed for objective evidence of impairment. If an asset is impaired the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.
Financial assets are impaired when events, subsequent to their initial recognition, indicate the estimated future cash flows derived from the financial asset(s) have been adversely impacted. The impairment loss will be the difference between the current carrying amount and the present value of the future cash flows at the asset(s) original effective interest rate.
If there is a favourable change in relation to the events surrounding the impairment loss then the impairment can be reviewed for possible reversal. The reversal will not cause the current carrying amount to exceed the original carrying amount had the impairment not been recognised. The impairment reversal is recognised in the profit or loss.
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KITCHEN ARCHITECTURE LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
2.Accounting policies (continued)
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 the deduction of all its liabilities.
Basic financial liabilities, which include trade and other creditors, bank loans and other loans are initially measured at their transaction price (adjusting for transaction costs except in the initial measurement of financial liabilities that are subsequently measured at fair value through profit and loss). When this constitutes a financing transaction, whereby the debt instrument is measured at the present value of the future payments discounted at a market rate of interest, discounting is omitted where the effect of discounting is immaterial.
Debt instruments are subsequently carried at their amortised cost using the effective interest rate method.
Trade creditors are obligations to pay for goods and services that have been acquired in the ordinary course of business from suppliers. Trade creditors are classified as current liabilities if the payment is due within one year. If not, they represent non-current liabilities. Trade creditors are initially recognised at their transaction price and subsequently are measured at amortised cost using the effective interest method. Discounting is omitted where the effect of discounting is immaterial.
Other financial instruments
Derivatives, including forward exchange contracts, futures contracts and interest rate swaps, are not classified as basic financial instruments. These are initially recognised at fair value on the date the derivative contract is entered into, with costs being charged to the profit or loss. They are subsequently measured at fair value with changes in the profit or loss.
Debt instruments that do not meet the conditions as set out in FRS 102 paragraph 11.9 are subsequently measured at fair value through the profit or loss. This recognition and measurement would also apply to financial instruments where the performance is evaluated on a fair value basis as with a documented risk management or investment strategy.
Derecognition of financial instruments
Derecognition of financial assets
Financial assets are derecognised when their contractual right to future cash flow expire, or are settled, or when the Company transfers the asset and substantially all the risks and rewards of ownership to another party. If significant risks and rewards of ownership are retained after the transfer to another party, then the Company will continue to recognise the value of the portion of the risks and rewards retained.
Derecognition of financial liabilities
Financial liabilities are derecognised when the Company's contractual obligations expire or are discharged or cancelled.
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KITCHEN ARCHITECTURE LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
2.Accounting policies (continued)
estimates. The items in the financial statements where these judgments and estimates have been made include: - Provision for slow moving and obsolete stock. - Provision for bad debts - Useful life of the tangible and intangible assets.
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KITCHEN ARCHITECTURE LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
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KITCHEN ARCHITECTURE LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
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KITCHEN ARCHITECTURE LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
11.Taxation (continued)
There were no factors that may affect future tax charges.
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KITCHEN ARCHITECTURE LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
Page 27
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KITCHEN ARCHITECTURE LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
Page 28
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KITCHEN ARCHITECTURE LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
The 2024 valuations were made by BNP Paribas Real Estate, on an open market value for existing use basis.
Page 29
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KITCHEN ARCHITECTURE LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
Page 30
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KITCHEN ARCHITECTURE LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
Handlesbanken hold a fixed charge over the Freehold property known as Unit 5, Network 4, Lincoln Road Cressex Business Park, High Wycombe, HP12 3RF (land registry title number BM317190) and the freehold property known as 3 Kings Yard, Stanbridge Road, Putney, London, SW15 1DE (land registry title number TGL184873).
Page 31
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KITCHEN ARCHITECTURE LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
Handlesbanken hold a fixed charge over the Freehold property known as Unit 5, Network 4, Lincoln Road Cressex Business Park, High Wycombe, HP12 3RF (land registry title number BM317190) and the freehold property known as 3 Kings Yard, Stanbridge Road, Putney, London, SW15 1DE (land registry title number TGL184873).
Page 32
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KITCHEN ARCHITECTURE LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
Profit & loss account
The profit and loss account reserve includes a non-distributable amount of £342,449 in relation to the fair value movement of investment property and the associated deferred tax charge.
Page 33
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KITCHEN ARCHITECTURE LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
The Company operates a defined contributions pension scheme.
The assets of the scheme are held separately from those of the Company in an independently administered fund. The pension cost charge represents contributions payable by the Company to the fund and amounted to £299,931 (2023 - £33,808). There was £8,912 (2023 - £10,332) of contributions payable to the fund at the balance sheet date.
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