REGISTERED NUMBER: 07523813 (England and Wales)

KIMS PROPERTY COMPANY LIMITED

FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30 APRIL 2025

Page

Company Information

1

Balance Sheet

2

Notes to the Financial Statements

3

DIRECTORS:

Mrs P Subaskaran

M R Selvarajah

P Sara

REGISTERED OFFICE:

Kims Hospital Newnham Court Way

Weavering

Maidstone

Kent

ME14 5FT

REGISTERED NUMBER:

07523813 (England and Wales)

AUDITORS:

Spurling Cannon

Statutory Auditors

424 Margate Road

Westwood

Ramsgate

Kent

CT12 6SJ

FIXED ASSETS

Investment property

4

63,057,606

63,057,606

CURRENT ASSETS

Debtors

5

291,865

349,226

Cash at bank

77,158

6,468

369,023

355,694

CREDITORS

Amounts falling due within one year

6

(60,092,157

)

(60,179,936

)

NET CURRENT LIABILITIES

(59,723,134

)

(59,824,242

)

TOTAL ASSETS LESS CURRENT LIABILITIES

3,334,472

3,233,364

PROVISIONS FOR LIABILITIES

8

(4,589,942

)

-

NET (LIABILITIES)/ASSETS

(1,255,470

)

3,233,364

CAPITAL AND RESERVES

Called up share capital

38,394,682

38,394,682

Retained earnings

(39,650,152

)

(35,161,318

)

SHAREHOLDERS' FUNDS

(1,255,470

)

3,233,364

The financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime.

In accordance with Section 444 of the Companies Act 2006, the Income Statement has not been delivered.

The financial statements were approved by the Board of Directors and authorised for issue on 14 July 2026 and were signed on its behalf by:

Mrs P Subaskaran - Director

1.	STATUTORY INFORMATION

Kims Property Company Limited is a private company, limited by shares , registered in England and Wales. The company's registered number and registered office address can be found on the Company Information page.

2.	ACCOUNTING POLICIES

Basis of preparing the financial statements

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

Going concern

During the year, the company made a loss of £4.49 million, primarily arising from the recognition of the HMRC settlement provision (2024: profit of £27.1K) and at the balance sheet date had net liabilities of £1.26 million (2024: net assets £3.2 million).

The company owns the KIMS Hospital in Kent, which is leased and operated by KIMS Hospital Limited (KHL) as the tenant. KIMS Hospital, in its eleventh year of trading, saw continued growth in both caseload and revenues and had the benefit of a nominal rent period until 30 April 2019. From this date, KHL has paid a minimum annual rent of £2 million, excluding VAT.

Since March 2020, the company and its tenant have operated in an environment impacted by the COVID-19 pandemic. While there has been no direct effect on the company other than uncertainty regarding investment property valuations, the tenant faced certain risks. However, general restrictions imposed as a result of the pandemic were minimal during the year under review. KIMS Hospital Limited continues to enforce strict admission criteria to ensure patient safety and maintain the hospital as a COVID-19 "green site," although these policies have since been relaxed somewhat.

As disclosed in Note 9, during the year the Company concluded discussions with HM Revenue & Customs in relation to a long-running VAT enquiry. Following this process, a settlement was reached and, accordingly, a provision of £4,589,942 has been recognised in the financial statements at the reporting date. The Directors are satisfied that this represents the Company's best estimate of the liability based on the agreed terms with HMRC. A significant proportion of this liability will be satisfied from funds held in escrow, which were established in connection with the matter. The remaining liability will be settled in accordance with the agreed payment arrangement. The Company continues to have the support of its immediate parent undertaking and ultimate shareholders, who have confirmed their intention to provide financial support as required, ensuring that the Company is able to meet its obligations as they fall due.

In addition, KIMS Kent Property Holding Limited and its owner will provide financial support to the extent necessary to enable the company to meet its liabilities as they fall due for at least twelve months from the date of approval of these financial statements. Accordingly, the directors consider that it is appropriate for the financial statements to be prepared on a going concern basis.

Financial instruments

The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.

Financial instruments are recognised 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 other debtors and amounts due from group undertakings, 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 financial asset is measured at the present value of the future receipts discounted at a market rate of interest.

Impairment of financial assets

Financial assets are assessed for indicators of impairment at each reporting end date.

Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. 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.

Derecognition of financial assets

Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the company transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.

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 theassets of the company after deducting all of its liabilities.

Basic financial liabilities

Basic financial liabilities, including trade and other payables, bank loans 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.

Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

Derecognition of financial liabilities

Financial liabilities are derecognised when and only when the company's contractual obligations are discharged, cancelled or they expire.

Taxation

Current tax is based on taxable profit for the year. Current tax assets and liabilities are measured using tax rates that have been enacted or substantively enacted by the reporting period.

Deferred tax

Deferred tax is calculated at the tax rates that are expected to apply to the period when the asset is realised or the liability is settled based on tax rates that have been enacted or substantively enacted by the reporting date. Deferred tax is not discounted.

Deferred tax liabilities are recognised in respect of all timing differences that exist at the reporting date. Timing differences are differences between taxable profits and total comprehensive income that arise from the inclusion of income and expenses in tax assessments in different periods from their recognition in the financial statements. Deferred tax assets are recognised only to the extent that it is probable that they will be recovered by the reversal of deferred tax liabilities or other future taxable profits.

For non-depreciable assets measured using the revaluation model and investment properties measured at fair value (except investment property with a limited useful life held by the company to consume substantially all of its economic benefit), deferred tax is measured using the tax rates and allowances that apply to the sale of the asset or property.

Turnover

Turnover represents the fair value of the consideration received or receivable and is comprised of rental income from investment properties, net of VAT. Fair value reflects the amount expected to be recoverable from tenants.

Investment properties

Investment properties are initially measured at cost and subsequently measured at fair value whilst a reliable measure of fair value is available. Changes in fair value are recognised in profit or loss.

The investment property, which is freehold, was valued to fair value of £63,057,606 as at 30 April 2025 based on a valuation performed by Colliers (2024: £63,057,606 valued by the Colliers). This was based on an assessment of its open market value as an operational hospital taking in to account current and future rental together with the expected future yield.

3.	EMPLOYEES AND DIRECTORS

The average number of employees during the year was NIL (2024 - NIL).

4.	INVESTMENT PROPERTY

Total

£

FAIR VALUE

At 1 May 2024

and 30 April 2025

63,057,606

NET BOOK VALUE

At 30 April 2025

63,057,606

At 30 April 2024

63,057,606

Investment property is comprised of the freehold of a hospital building. The fair value of the investment property is assessed on a regular basis based on a valuation performed by Colliers. The valuation was made on an open market basis. The directors are of the view that there is no material difference between this valuation and the year end carrying value.

5.

DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2025

2024

£

£

Other debtors

291,865

349,226

6.

CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2025

2024

£

£

Amounts owed to group undertakings

59,696,916

59,718,647

Taxation and social security

263,747

324,760

Other creditors

131,494

136,529

60,092,157

60,179,936

7.	AMOUNTS OWED TO GROUP UNDERTAKINGS

2025 2024

£ £

Amount Owed to KIMS Kent Property Holdings Ltd 59,568,315 59,590,046

Amount owed to KKPHL is borrowing of mezzanine facilities form the immediate parent undertaking. The borrowings are unsecured, interest free and technically repayable on demand.

8.	PROVISIONS FOR LIABILITIES

2025

2024

£

£

Other provisions

4,589,942

-

During the year, the Company concluded discussions with HM Revenue & Customs (HMRC) in relation to a long running enquiry concerning the VAT treatment of rental income from its investment property. HMRC had previously challenged whether the rent charged was at an open market value and, on this basis, assessed the Company for additional VAT, together with associated interest and penalties.

Following a period of review, negotiation, and professional advice, the Company reached a formal settlement agreement with HMRC in respect of these liabilities.

As a result of this settlement, the Directors have determined that a present obligation exists at the reporting date and that the amount of the liability can now be measured reliably. Accordingly, in line with FRS 102, Section 21 Provisions and Contingencies, the obligation has been recognised as a provision in the financial statements rather than disclosed as a contingent liability.

A provision of £4,589,942 has been recognised, comprising:

VAT: £3,448,273

Interest: £519,501

Penalties: £622,168

This provision represents management's best estimate of the total expenditure required to settle the obligation based on the agreed terms with HMRC.

The liability will be settled in accordance with the agreed payment arrangement with HMRC and is expected to be paid over the agreed period.

9.	DISCLOSURE UNDER SECTION 444(5B) OF THE COMPANIES ACT 2006

The Report of the Auditors was unqualified.

Jon Spurling FCCA (Senior Statutory Auditor)

for and on behalf of Spurling Cannon

10.	CONTROLLING PARTY

The company’s immediate parent company is KIMS Kent Property Holding Limited, incorporated in England and Wales. The registered office address of KIMS Kent Property Holding Limited is:

KIMS Hospital, Newnham Court Way, Weavering, Maidstone, Kent, United Kingdom, ME14 5FT.

The ultimate parent company is Lyca Leasing Holding Limited, also incorporated in England and Wales. Lyca Leasing Holding Limited is the smallest and largest group for which consolidated financial statements are prepared. Copies of these financial statements can be obtained from its registered office at: 3rd Floor, Walbrook Building, 195 Marsh Wall, London, United Kingdom, E14 9SG.

In the opinion of the directors, the ultimate controlling party is P. Subaskaran, by virtue of her shareholding in Lyca Leasing Holding Limited.

11.	RELATED PARTY TRANSACTIONS

During the year, the company charged rent of £4,403,211 (2024: £2,281,629) to a group company. At the year end, £3,485,646 (2024: £3,320,334) was due from the related party (KIMS Hospital Limited).This balance was impaired last year and remains impaired during the current year; therefore, no amount has been recognised on the balance sheet in respect of this receivable.