Registration number:
Karmel Development Co. Limited
for the Year Ended 31 March 2026
Karmel Development Co. Limited
Contents
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Company Information |
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Balance Sheet |
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Notes to the Unaudited Financial Statements |
Karmel Development Co. Limited
Company Information
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Directors |
J L Karmel S Karmel H Karmel |
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Company secretary |
P Karmel |
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Registered office |
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Accountants |
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Karmel Development Co. Limited
(Registration number: 0679204)
Balance Sheet as at 31 March 2026
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Note |
2026 |
2025 |
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Fixed assets |
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Tangible assets |
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Investment property |
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Other financial assets |
157,015 |
134,706 |
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Current assets |
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Debtors |
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Cash at bank and in hand |
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Creditors: Amounts falling due within one year |
( |
( |
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Net current assets |
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Total assets less current liabilities |
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Creditors: Amounts falling due after more than one year |
( |
( |
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Net assets |
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Capital and reserves |
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Called up share capital |
100 |
100 |
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Revaluation reserve |
(72,756) |
(104,880) |
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Profit and loss account |
998,555 |
817,212 |
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Shareholders' funds |
925,899 |
712,432 |
For the financial year ending 31 March 2026 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.
Directors' responsibilities:
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The directors acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and the preparation of accounts. |
Karmel Development Co. Limited
(Registration number: 0679204)
Balance Sheet as at 31 March 2026
Approved and authorised by the
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Karmel Development Co. Limited
Notes to the Unaudited Financial Statements for the Year Ended 31 March 2026
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General information |
The company is a private company limited by share capital, incorporated in England and Wales.
The address of its registered office is:
England
The principal place of business is:
Toorak
Arkley Lane
Arkley
Herts
EN5 3JW
These financial statements were authorised for issue by the
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Accounting policies |
Summary of significant accounting policies and key accounting estimates
The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.
Statement of compliance
These financial statements have been prepared in accordance with Financial Reporting Standard 102 Section 1A smaller entities - 'The Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland' and the Companies Act 2006 (as applicable to companies subject to the small companies' regime).
Basis of preparation
These financial statements have been prepared using the historical cost convention except that as disclosed in the accounting policies certain items are shown at fair value.
The financial statements are presented in Pounds Sterling, which is also the functional currency of the Company. Rounding of amounts shown in the financial statements is to the nearest Pound.
Going concern
The financial statements have been prepared on a going concern basis.
Karmel Development Co. Limited
Notes to the Unaudited Financial Statements for the Year Ended 31 March 2026
Judgements
In the application of the Company's accounting policies, which are described above, management is required to make judgements, estimates, and assumptions about the carrying value of assets and liabilities that are not readily apparent from other sources. The estimates and underlying assumptions are based on judgement and experience together with any other factors that are considered to be relevant. Actual results may differ from these estimates. |
Estimates and any underlying assumptions used are reviewed on a continuing 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 the current period and subsequent periods. |
Key sources of estimation uncertainty
The key sources of estimation uncertainty that have a significant effect on the amounts recognised in the financial statements are described below:
Valuation of freehold land and buildings held as investment properties
As discussed in the notes to the financial statements, freehold land and buildings held as investment property are stated at fair value on an open market existing use basis. This policy requires that a reasonable assessment of fair value is capable of being made and that market value reflects fair value. The carrying amount is £406,898 (2025 -£371,092).
Valuation of investments held as fixed assets
As discussed in the notes to the financial statements, investments held as fixed assets are stated at fair value. This policy requires that a reasonable assessment of fair value is capable of being made and that market value reflects fair value. The carrying amount is £157,015 (2025 -£134,706).
Revenue recognition
Turnover comprises the fair value of the consideration received or receivable for rents and provision of services in the ordinary course of the company’s activities. Turnover is shown net of returns, rebates and discounts.
The company recognises revenue when:
The amount of revenue can be reliably measured;
it is probable that future economic benefits will flow to the entity;
and specific criteria have been met for each of the company's activities.
Foreign currency transactions and balances
Non-monetary items measured in terms of historical cost in a foreign currency are not retranslated.
Karmel Development Co. Limited
Notes to the Unaudited Financial Statements for the Year Ended 31 March 2026
Tax
The tax expense for the period comprises current and deferred tax. Tax is recognised in profit or loss, except that a change attributable to an item of income or expense recognised as other comprehensive income is also recognised directly in other comprehensive income.
The current corporation tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the reporting date in the countries where the company operates and generates taxable income.
Deferred corporation tax is recognised on temporary differences arising between the tax bases of assets and liabilities and their carrying amounts in the financial statements and on unused tax losses or tax credits in the company. Deferred corporation tax is determined using tax rates and laws that have been enacted or substantively enacted by the reporting date.
The carrying amount of deferred tax assets are reviewed at each reporting date and a valuation allowance is set up against deferred tax assets so that the net carrying amount equals the highest amount that is more likely than not to be recovered based on current or future taxable profit.
Tangible assets
Tangible assets are stated in the statement of financial position at cost, less any subsequent accumulated depreciation and subsequent accumulated impairment losses.
The cost of tangible assets includes directly attributable incremental costs incurred in their acquisition and installation.
Depreciation
Depreciation is charged so as to write off the cost of assets, other than land and properties under construction over their estimated useful lives, as follows:
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Asset class |
Depreciation method and rate |
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Land and buildings |
25% reducing balance |
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Fixtures and fittings |
25% reducing balance |
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Motor vehicles |
20% reducing balance |
Investment property
Investments
Investments in equity shares which are publicly traded or where the fair value can be measured reliably are initially measured at fair value, with changes in fair value recognised in profit or loss. Investments in equity shares which are not publicly traded and where fair value cannot be measured reliably are measured at cost less impairment.
Interest income on debt securities, where applicable, is recognised in income using the effective interest method. Dividends on equity securities are recognised in income when receivable.
Karmel Development Co. Limited
Notes to the Unaudited Financial Statements for the Year Ended 31 March 2026
Cash and cash equivalents
Cash and cash equivalents comprise cash on hand and call deposits, and other short-term highly liquid investments that are readily convertible to a known amount of cash and are subject to an insignificant risk of change in value.
Trade debtors
Trade debtors are amounts due from customers for merchandise sold or services performed in the ordinary course of business.
Trade debtors are recognised initially at the transaction price. They are subsequently measured at amortised cost using the effective interest method, less provision for impairment. A provision for the impairment of trade debtors is established when there is objective evidence that the company will not be able to collect all amounts due according to the original terms of the receivables.
Stocks
Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost is determined using the first-in, first-out (FIFO) method.
The cost of finished goods and work in progress comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the inventories to their present location and condition. At each reporting date, stocks are assessed for impairment. If stocks are 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.
Trade creditors
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Accounts payable are classified as current liabilities if the company does not have an unconditional right, at the end of the reporting period, to defer settlement of the creditor for at least twelve months after the reporting date. If there is an unconditional right to defer settlement for at least twelve months after the reporting date, they are presented as non-current liabilities.
Trade creditors are recognised initially at the transaction price and subsequently measured at amortised cost using the effective interest method.
Borrowings
Interest-bearing borrowings are initially recorded at fair value, net of transaction costs. Interest-bearing borrowings are subsequently carried at amortised cost, with the difference between the proceeds, net of transaction costs, and the amount due on redemption being recognised as a charge to the Profit and Loss Account over the period of the relevant borrowing.
Interest expense is recognised on the basis of the effective interest method and is included in interest payable and similar charges.
Borrowings are classified as current liabilities unless the company has an unconditional right to defer settlement of the liability for at least twelve months after the reporting date.
Karmel Development Co. Limited
Notes to the Unaudited Financial Statements for the Year Ended 31 March 2026
Provisions
Provisions are recognised when the company has an obligation at the reporting date as a result of a past event, it is probable that the company will be required to settle that obligation and a reliable estimate can be made of the amount of the obligation.
Share capital
Ordinary shares are classified as equity. Equity instruments are measured at the fair value of the cash or other resources received or receivable, net of the direct costs of issuing the equity instruments. If payment is deferred and the time value of money is material, the initial measurement is on a present value basis.
Dividends
Dividend distribution to the company’s shareholders is recognised as a liability in the financial statements in the reporting period in which the dividends are declared.
Defined contribution pension obligation
A defined contribution plan is a pension plan under which fixed contributions are paid into a pension fund and the company has no legal or constructive obligation to pay further contributions even if the fund does not hold sufficient assets to pay all employees the benefits relating to employee service in the current and prior periods.
Contributions to defined contribution plans are recognised as employee benefit expense when they are due. If contribution payments exceed the contribution due for service, the excess is recognised as a prepayment.
Financial instruments
Classification
Recognition and measurement
Impairment
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Staff numbers |
The average number of persons employed by the company (including directors) during the year, was
Karmel Development Co. Limited
Notes to the Unaudited Financial Statements for the Year Ended 31 March 2026
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Tangible assets |
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Furniture, fittings and equipment |
Total |
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Cost or valuation |
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At 1 April 2025 |
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Additions |
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At 31 March 2026 |
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Depreciation |
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At 1 April 2025 |
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Charge for the year |
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At 31 March 2026 |
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Carrying amount |
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At 31 March 2026 |
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At 31 March 2025 |
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Investment properties |
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2026 |
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At 1 April |
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Additions |
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Disposals |
( |
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Fair value adjustments |
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At 31 March |
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The investment properties class of fixed assets has been revalued at each year end by one of the directors who is internal to the company. The basis of this valuation was open market value. This class of assets has a historical cost of £310,512 (2025 - £282,934). All revaluation surpluses and deficits have been transferred to a revaluation reserve. Should the investment properties be sold at the valuation shown, a tax charge not exceeding £22,150 (2025 - £20,084) would arise.
Karmel Development Co. Limited
Notes to the Unaudited Financial Statements for the Year Ended 31 March 2026
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Other financial assets (current and non-current) |
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Financial assets at fair value through profit and loss |
Total |
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Non-current financial assets |
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Cost or valuation |
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At 1 April 2025 |
134,706 |
134,706 |
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Fair value adjustments |
23,895 |
23,895 |
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Additions |
6,752 |
6,752 |
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Disposals |
(8,338) |
(8,338) |
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At 31 March 2026 |
157,015 |
157,015 |
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Impairment |
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Carrying amount |
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At 31 March 2026 |
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157,015 |
The historical cost of the listed investments was £317,875 (2025 - £311,123). The historical cost of the unlisted investments was £8,283 (2025 - £16,621). Should all of the listed investments and unlisted investments be sold at the valuation shown, a tax charge not exceeding £nil (2025 - £nil) would arise.
Unlisted investments included within the above totals and amounting to £36,315 (2025 - £44,653) were held by a nominee in trust for the benefit of the company.
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Debtors |
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Current |
2026 |
2025 |
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Prepayments |
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Other debtors |
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85,569 |
23,606 |
Karmel Development Co. Limited
Notes to the Unaudited Financial Statements for the Year Ended 31 March 2026
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Creditors |
Creditors: amounts falling due within one year
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Note |
2026 |
2025 |
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Due within one year |
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Loans and borrowings |
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Taxation and social security |
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Accruals and deferred income |
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Other creditors |
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All loans included within other creditors are interest free and repayable on demand.
Karmel Development Co. Limited
Notes to the Unaudited Financial Statements for the Year Ended 31 March 2026
Creditors: amounts falling due after more than one year
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Note |
2026 |
2025 |
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Due after one year |
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Loans and borrowings |
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Share capital |
Allotted, called up and fully paid shares
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2026 |
2025 |
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No. |
£ |
No. |
£ |
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100 |
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100 |
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Loans and borrowings |
Non-current loans and borrowings
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2026 |
2025 |
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Bank borrowings |
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Current loans and borrowings
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2026 |
2025 |
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Bank borrowings |
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Bank borrowings
The company has a bank loan under the Bounce Back Loan Scheme as backed by the Secretary of State for Business, Energy and Industrial Strategy and as guaranteed by HM Government. The Bounce Back loan as at
year end is denominated in Pounds Sterling with a nominal interest rate of 2.5%, and the final instalment is due in May 2027. The interest due for the first twelve months is paid directly to the bank by HM Government as a
business interruption payment. The carrying amount at year end is £11,666 (2025 - £21,667).
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Related party transactions |
Other related party transactions
Karmel Development Co. Limited
Notes to the Unaudited Financial Statements for the Year Ended 31 March 2026
During the year the company made the following related party transactions:
H Karmel (Director):
H Karmel had a loan account with the company during the year. No interest was applicable to this loan account and it is repayable on demand. The amount is included in other creditors within current liabilities. At the balance sheet date the amount due to H Karmel was £11,957 (2025 - £34,941).
J L Karmel (Director):
J L Karmel had a loan account with the company during the year. Interest of £1,099 (2025 - £nil) was applicable to this loan account and it is repayable on demand. The amount is included in other creditors within current liabilities. At the balance sheet date the amount due to J L Karmel was £59,715 owed to the company (2025 - £16,143 owed by the company).
S Karmel (Director):
S Karmel had a loan account with the company during the year. No interest was applicable to this loan account and it is repayable on demand. The amount is included in other creditors within current liabilities. At the balance sheet date the amount due to S Karmel was £19,763 (2025 - £24,435).
D Landes (Close relative of directors and shareholders):
D Landes had a loan account with the company during the year. No interest was applicable to this loan account and it is repayable on demand. The amount is included in other creditors within current liabilities or other debtors within debtors within current assets as applicable. At the balance sheet date the amount owed to D Landes was £2,842 (2025 - £2,493).
P Karmel (Close relative of directors and shareholders):
P Karmel had a loan account with the company during the year. No interest was applicable to this loan account and it is repayable on demand. The amount is included in other creditors within current liabilities. At the balance sheet date the amount due to P Karmel was £357 (2025 - £3,434).