REGISTERED NUMBER: 10969765 (England and Wales)

KIMS KENT PROPERTY HOLDING LIMITED

REPORT OF THE DIRECTORS AND

FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 APRIL 2025

Page

Company Information

1

Report of the Directors

2

Report of the Independent Auditors

4

Income Statement

8

Balance Sheet

9

Notes to the Financial Statements

11

DIRECTORS:

P Sara

Mrs P Subaskaran

REGISTERED OFFICE:

Kims Hospital Newnham Court Way

Weavering

Maidstone

Kent

ME14 5FT

REGISTERED NUMBER:

10969765 (England and Wales)

AUDITORS:

Spurling Cannon

Statutory Auditors

424 Margate Road

Westwood

Ramsgate

Kent

CT12 6SJ

The directors present their report with the financial statements of the company for the year ended 30 April 2025.

PRINCIPAL ACTIVITY

The principal activity of the company in the year under review was that of a holding company.

DIRECTORS

The directors shown below have held office during the whole of the period from 1 May 2024 to the date of this report.

P Sara

Mrs P Subaskaran

STATEMENT OF DIRECTORS' RESPONSIBILITIES

The directors are responsible for preparing the Report of the Directors and the financial statements in accordance with applicable law and regulations.

Company law requires the directors to prepare financial statements for each financial year. Under that law the directors 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 the directors 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 company and of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to:

-	select suitable accounting policies and then apply them consistently;

-	make judgements 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 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.

STATEMENT OF DISCLOSURE TO AUDITOR

So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the company's auditors are unaware, and each director has taken all the steps that he or she ought to have taken as a director in order to make himself or herself aware of any relevant audit information and to establish that the company's auditors are aware of that information.

Going concern

In assessing the appropriateness of the going concern basis, the directors have taken account of all relevant information covering a period of at least twelve months from the date of approval of the financial statements. The impact of COVID-19 on the economy and businesses has been visible but the direct impact on the company and its subsidiary has been minimal. The directors believe they are taking the necessary actions to address risks arising and are confident that there will be sufficient appropriate support from its shareholders. Therefore, the financial statements have been prepared on a going concern basis as disclosed in note 1 on accounting policies.

This report has been prepared in accordance with the provisions applicable to companies entitled to the small companies exemption.

This report has been prepared in accordance with the provisions of Part 15 of the Companies Act 2006 relating to small companies.

ON BEHALF OF THE BOARD:

Mrs P Subaskaran - Director

30 June 2026

Opinion

We have audited the financial statements of Kims Kent Property Holding Limited (the 'company') for the year ended 30 April 2025 which comprise the Income Statement, Balance Sheet and 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 company's affairs as at 30 April 2025 and of its loss 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.

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 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 UK, including the FRC'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 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.

Other information

The directors are responsible for the other information. The other information comprises the information in the Report of the Directors, but does not include the financial statements and our Report of the Auditors thereon.

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.

In connection with our audit of the financial statements, 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 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.

Opinions on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of the audit:

-	the information given in the Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and

-	the Report of the Directors has been prepared in accordance with applicable legal requirements.

Matters on which we are required to report by exception

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 Report of the Directors.

We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 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

-certain disclosures of directors' remuneration specified by law are not made; or

-we have not received all the information and explanations we require for our audit; or

-the directors were not entitled to prepare the financial statements in accordance with the small companies regime and take advantage of the small companies exemption from the requirement to prepare a strategic report or in preparing the directors' report.

Responsibilities of directors

As explained more fully in the Statement of Directors' Responsibilities set out on page two, the directors 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 directors determine 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 directors are responsible for assessing the company'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 directors either intend to liquidate the company 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 a Report of the Auditors 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.

The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

Irregularities are instances of non-compliance with laws and regulations. The objectives of our audit are to obtain sufficient appropriate audit evidence regarding compliance with laws and regulations that have a direct effect on the determination of material amounts and disclosures in the financial statements, to perform audit procedures to help identify instances of non-compliance with other laws and regulations that may have a material effect on the financial statements, and to respond appropriately to identified or suspected non-compliance with laws and regulations identified during the audit.

In relation to fraud, the objectives of our audit are to identify and assess the risk of material misstatement of the financial statements due to fraud, to obtain sufficient appropriate audit evidence regarding the assessed risks of material misstatement due to fraud through designing and implementing appropriate responses and to respond appropriately to fraud or suspected fraud identified during the audit.

However, it is the primary responsibility of management, with the Oversight Of those charged with governance, to ensure that the entity's operations are conducted in accordance with the provisions of laws and regulations and for the prevention and detection of fraud.

In identifying and assessing risks of material misstatement in respect of irregularities, including fraud, the audit engagement team:

-obtained an understanding of the nature of the industry and sector, including the legal and regulatory framework that the company operates in and how the company is complying with the legal and regulatory framework;

- inquired of management, and those charged with governance, about their own identification and assessment of the risks of irregularities, including any known actual, suspected or alleged instances of fraud;

- discussed matters about non-compliance with laws and regulations and how fraud might occur including assessment of how and where the financial statements may be susceptible to fraud. susceptible to fraud.

As a result of these procedures we consider the most significant laws and regulations that have a direct impact on the financial statements are FRS 102, the Companies Act 2006 and tax compliance regulations. We performed audit procedures to detect non-compliance which may have a material impact on the financial statements which included reviewing financial statement disclosures, assessing accounting policies for compliance with the reporting framework, agreeing tax calculations to supporting documentation and reviewing correspondence with tax authorities.

The audit engagement team identified the risk of management override of controls and revenue recognition as the areas where the financial statements were most susceptible to material misstatement due to fraud. Audit procedures performed for management override of controls included but were not limited to testing journal entries and other adjustments and evaluating the business rationale in relation to any significant, unusual transactions and transactions entered into outside the normal course of business.

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 Report of the Auditors.

Use of our 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 a Report of the Auditors 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.

Jon Spurling FCCA (Senior Statutory Auditor)

for and on behalf of Spurling Cannon

Statutory Auditors

424 Margate Road

Westwood

Ramsgate

Kent

CT12 6SJ

30 June 2026

TURNOVER

-

-

Administrative expenses

7,855,249

2,935,790

OPERATING LOSS

(7,855,249

)

(2,935,790

)

Interest receivable and similar income

3,374,228

2,913,848

LOSS BEFORE TAXATION

(4,481,021

)

(21,942

)

Tax on loss

-

-

LOSS FOR THE FINANCIAL YEAR

(4,481,021

)

(21,942

)

FIXED ASSETS

Investments

3

-

3,206,275

CURRENT ASSETS

Debtors

4

58,314,283

59,591,460

Cash at bank

779

1,098

58,315,062

59,592,558

CREDITORS

Amounts falling due within one year

5

65,077,250

65,080,000

NET CURRENT LIABILITIES

(6,762,188

)

(5,487,442

)

TOTAL ASSETS LESS CURRENT LIABILITIES

(6,762,188

)

(2,281,167

)

CAPITAL AND RESERVES

Called up share capital

100

100

Share premium

39,472,667

39,472,667

Retained earnings

(46,234,955

)

(41,753,934

)

SHAREHOLDERS' FUNDS

(6,762,188

)

(2,281,167

)

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

The financial statements were approved by the Board of Directors and authorised for issue on 30 June 2026 and were signed on its behalf by:

Mrs P Subaskaran - Director

1.	ACCOUNTING POLICIES

Company information

KIMS Kent Property Holding Limited is a private company limited by shares and is registered and incorporated in England and Wales. The registered office is KIMS Hospital, Newnham Court Way, Weavering, Maidstone, Kent, ME14 5FT.

Accounting convention

These financial statements have been prepared in accordance with FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" ("FRS 102") and the requirements of the Companies Act 2006 as applicable to companies subject to the small companies regime. The disclosure requirements of section 1A of FRS 102 have been applied other than where additional disclosure is required to show a true and fair view.

The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest pound.

The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.

The company has taken advantage of the exemption under section 399 of the Companies Act 2006 not to prepare consolidated accounts, on the basis that the group of which this is the parent qualifies as a small group. The financial statements present information about the company as an individual entity and not about its group.

Going concern

During the year, the Company recorded a loss of £4.5 million (2024: £21K loss). This was primarily driven by the impairment of an intercompany debtor balance with KIMS Property Company Limited and an impairment of the Company's investment in KIMS Property Company Limited amounting to £3.2 million, following the recognition of an HMRC VAT provision by the subsidiary. As a result, the Directors have concluded that the carrying value of the Company's investment in the subsidiary is impaired. At the balance sheet date, the Company reported net current liabilities of £6.8 million (2024: £5.5 million) and net liabilities of £6.8 million (2024: £2.3 million net liabilities).

The company is the holding company for KIMS Property Company Limited (KPCL), which it acquired on 10 October 2017. The subsidiary company owns the KIMS Hospital in Kent, which is leased and operated by KIMS Hospital Limited (KHL) as the tenant. KIMS Hospital, in its eighth year of trading, saw continued growth in both caseload and private revenues and has had the benefit of a nominal rent period until 30 April 2019. From this date KHL has paid a minimum annual rent of £2m excluding VAT.

Since March 2020 the company, the subsidiary and its tenant have been operating in an environment affected by the COVID-19 pandemic. There has been no direct effect on the company. For the subsidiary the specific effect is in uncertainty over investment property valuation. For the subsidiary's tenant company there were risks arising from the current situation. However, the general restrictions imposed as a result of the pandemic have slowly been lifted and removed during the year under review. KIMS Hospital Limited still operates strict admission criteria ensuring patient safety and that the Hospital remains a COVID-19 "green site", however these policies have been relaxed somewhat.

During the year, the subsidiary concluded discussions with HMRC regarding a long running enquiry into the VAT treatment of rental income. HMRC assessed additional VAT, interest, and penalties, challenging whether rents reflected open market value. Following negotiations and professional advice, a formal settlement was reached. The Directors therefore recognised a provision in accordance with FRS 102 Section 21, as a present obligation existed and could be reliably measured. A provision of £4,589,942 has been recognised (VAT £3,448,273; interest £519,501; penalties £622,168), representing the best estimate of the settlement. The liability was agreed with HMRC and was fully settled after the year end. The majority of the settlement was funded from monies previously held in escrow, meaning that the net cash outflow borne by the Group was substantially lower than the gross provision recognised in the financial statements.

The new investors 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.

Fixed asset investments

Interests in subsidiaries are initially measured at cost and subsequently measured at cost less any accumulated impairment losses. The investments are assessed for impairment at each reporting date and any impairment losses or reversals of impairment losses are recognised immediately in profit or loss.

A subsidiary is an entity controlled by the company. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.

Impairment of fixed assets

At each reporting period end date, the company reviews the carrying amounts of its fixed asset investments to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.

Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.

If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.

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, cash at bank and amounts owed by 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.

If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal 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 the assets of the company after deducting all of its liabilities.

Basic financial liabilities

Basic financial liabilities, including other creditors, 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.

Equity instruments.

Equity instruments issued by the company are recorded at the fair value of proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.

Judgements and key sources of estimation uncertainty

In the application of the company's accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

Critical judgements

The following judgements (apart from those involving estimates) have had the most significant effect on amounts recognised in the financial statements.

Recoverability of group balances

The directors review the recoverability of group debtors for indication of impairment at the reporting. Appropriate provision have been made for any amounts not considered to be recoverable.

Carrying value of investments

The directors review the carrying value of investments for indication of impairment at the reporting. Appropriate provision have been made for any amounts not considered to be recoverable.

2.	EMPLOYEES AND DIRECTORS

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

3.	FIXED ASSET INVESTMENTS

Investments (neither listed nor unlisted) were as follows:

2025

2024

£

£

Investments

-

3,206,275

4.

DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2025

2024

£

£

Amounts owed by group undertakings

58,312,845

59,590,046

Other debtors

1,438

1,414

58,314,283

59,591,460

Amount owed by group undertakings

Amounts owed by KIMS Property Company Ltd (a 100 % Owned Subsidiary) at the year-end totalled £59,568,315 (2024: £59,590,046). The loans are interest-free and, although technically repayable on demand, are not expected to be called in the short term.

Amount owed by KIMS Kent Holdings Ltd (Group company) at the year-end totalled £26,660,402 (2024: £23,286,174) represent mezzanine loans. Interest is charge at 14% per annum and is rolled up the capital every six months. This balance was fully impaired in the prior year and remains fully impaired in the current year; as a result, the net amount included in debtors is £nil. Impairment losses of £3,374,228 have been recognised within administrative expenses for the year.

5.

CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2025

2024

£

£

Amounts owed to group undertakings

65,069,999

65,069,999

Other creditors

7,251

10,001

65,077,250

65,080,000

6.	AMOUNTS OWED TO GROUP UNDERTAKINGS (CONTINUED)

Amount owed to group undertaking (Lyca Leasing Cormorant Limited Parent company) at the year-end totalled £65,069,999 (2024: £65,069,999) represent mezzanine loans with a group undertaking. The loans are interest-free and, although technically repayable on demand, are not expected to be called in the short term.

7.	RELATED PARTY TRANSACTIONS

Amount owed by group undertaking (KIMS Kent Holdings Ltd) During the year £Nil (2024: £Nil) Was repaid, interest of £3,374,228 (2024: £2,913,848) was charged in respect of this loan. At the balance sheet date £26,660,402 (2024: £23,286,174) represent mezzanine loans. Interest is charge at 14% per annum and is rolled up the capital every six months. This balance was fully impaired in the prior year and remains fully impaired in the current year; as a result, the net amount included in debtors is £nil.

8.	ULTIMATE CONTROLLING PARTY

The company's immediate parent company is Lyca Leasing (Cormorant) Limited, incorporated in England and Wales. The registered office address of Lyca Leasing (Cormorant) Limited is 3rd Floor Wallbrook Building, 195 Marsh Wall, London, United Kingdom, E14 9SG. The ultimate parent company is Lyca Leasing Holding Limited, a company incorporated in England and Wales. Lyca Leasing Holding Limited is the smallest and largest group for which consolidated financial statements are prepared and copies can be obtained from its registered office at 3rd Floor Wallbrook 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 majority shareholding in Lyca Leasing Holding Limited.