Halkyn Design Limited

	Page
Balance Sheet	1—2
Notes to the Financial Statements	3—6

1. General Information

Halkyn Design Limited is a private company, limited by shares, incorporated in England & Wales, registered number 16252231 . The registered office is 40-46 Headfort Place Knightsbridge, London, England, SW1X 7DH.

2. Accounting Policies

2.1. Early Adoption of Amendments to FRS 102 (Periodic Review 2024)

The company has early adopted the amendments to FRS 102, arising from the Financial Reporting Council's Periodic Review 2024, issued in March 2024. These amendments are effective for accounting periods beginning on or after 1 January 2026, but the company has elected to apply them in these financial statements for the period ended 28 February 2026.

The amendments primarily affect the company's accounting for lease accounting.

The impact of early adoption has resulted in the recognition of a right-of-use asset and a corresponding lease liability for the company’s lease of business premises, with depreciation and interest expenses recognised in place of rental expenses.

Further details of the transition and the effect on the financial statements are provided in the notes.

2.2. Basis of Preparation of Financial Statements

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

2.3. Going Concern Disclosure

The directors have not identified any material uncertainties related to events or conditions that may cast significant doubt about the company's ability to continue as a going concern.

In assessing whether the going concern assumption is appropriate, the directors have considered all available information about the future, which is at least, but is not limited to, 12 months from the date when the financial statements are authorised for issue.

2.4. Turnover

Turnover is measured at the fair value of the consideration received or receivable, net of discounts and value added taxes. Turnover includes revenue earned from the sale of goods and from the rendering of services. Turnover is reduced for estimated customer returns, rebates and other similar allowances.

Sale of goods

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

Rendering of services

Turnover from the rendering of services is recognised by reference to the stage of completion of the contract. The stage of completion of a contract is measured by comparing the costs incurred for work performed to date to the total estimated contract costs. Turnover is only recognised to the extent of recoverable expenses when the outcome of a contract cannot be estimated reliably.

2.5. Tangible Fixed Assets and Depreciation

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

Plant & Machinery	5 years straight line with 5% residual value
Fixtures & Fittings	5 years straight line
Computer Equipment	3 years straight line with 5% residual value

2.6. Foreign Currencies

Monetary assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the balance sheet date. Transactions in foreign currencies are translated into sterling at the rate ruling on the date of the transaction. Exchange differences are taken into account in arriving at the operating profit.

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Halkyn Design Limited

Notes to the Financial Statements (continued)

For the Period 14 February 2025 to 28 February 2026

2.7. Taxation

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

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

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

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

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

3. Average Number of Employees

Average number of employees, including directors, during the period was: 3

4. Tax on Profit

The tax (credit)/charge on the loss for the period was as follows:

	Tax Rate	28 February 2026
	28 February 2026	£
Current tax
UK Corporation Tax	25.0%	-
Deferred Tax
Deferred taxation		-


Total tax charge for the period		-

The actual (credit)/charge for the period can be reconciled to the expected credit for the period based on the loss and the standard rate of corporation tax as follows:

		28 February 2026
		£
Profit before tax		(954,750)

Breakdown of tax charge is:
Tax on profit at 25% (UK standard rate)		(238,687 )
Goodwill/depreciation not allowed for tax		5,497
Expenses not deductible for tax purposes		17,093
Capital allowances		(5,497 )
Tax losses for which no deferred tax was recognised		221,594

Total tax charge for the period		-

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Halkyn Design Limited

Notes to the Financial Statements (continued)

For the Period 14 February 2025 to 28 February 2026

5. Tangible Assets

	Plant & Machinery	Fixtures & Fittings	Computer Equipment	Total
	£	£	£	£
Cost
As at 14 February 2025	-	-	-	-
Additions	169,937	185,871	11,854	367,662

As at 28 February 2026	169,937	185,871	11,854	367,662

Depreciation
As at 14 February 2025	-	-	-	-
Provided during the period	10,334	11,046	607	21,987

As at 28 February 2026	10,334	11,046	607	21,987

Net Book Value
As at 28 February 2026	159,603	174,825	11,247	345,675

As at 14 February 2025	-	-	-	-

6. Right-of-use Assets

	Land and Buildings
	£
Cost
As at 14 February 2025	-
Additions	2,146,651

As at 28 February 2026	2,146,651

Depreciation
As at 14 February 2025	-
Provided during the period	178,888

As at 28 February 2026	178,888

Net Book Value
As at 28 February 2026	1,967,763

As at 14 February 2025	-

7. Debtors

	28 February 2026
	£
Due within one year
Trade debtors	12,496
Other debtors	140,375

	152,871
Due after more than one year
Other debtors	434,419

	587,290

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Halkyn Design Limited

Notes to the Financial Statements (continued)

For the Period 14 February 2025 to 28 February 2026

8. Creditors: Amounts Falling Due Within One Year

	28 February 2026
	£
Lease liabilities	178,653
Trade creditors	103,243
Other creditors	110,922
Taxation and social security	18,518

	411,336

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

	28 February 2026
	£
Lease liabilities	1,967,881
Amounts owed to participating interests	1,348,270

	3,316,151

10. Lease Liabilities

	28 February 2026
	£
Not later than one year	178,653
Later than five years	1,967,881

	2,146,534

11. Deferred Taxation

The provision for deferred tax is made up as follows:

	28 February 2026
	£
Other timing differences	86,419

12. Share Capital

	28 February 2026
	£
Allotted, Called up and fully paid	100,000

13. Related Party Transactions

At 28 February 2026, the company owed £1,348,270 to its parent company, Cheng Chung Design (H.K.) Limited. The balance is interest-free, unsecured and repayable on demand.

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		28 February 2026
	Notes	£	£
FIXED ASSETS
Tangible Assets	5		345,675
Right-of-use Assets	6		1,967,763

			2,313,438
CURRENT ASSETS
Debtors	7	587,290
Cash at bank and in hand		58,428

		645,718
Creditors: Amounts Falling Due Within One Year	8	(411,336 )

NET CURRENT ASSETS (LIABILITIES)			234,382

TOTAL ASSETS LESS CURRENT LIABILITIES			2,547,820

Creditors: Amounts Falling Due After More Than One Year	9		(3,316,151 )

PROVISIONS FOR LIABILITIES
Deferred Taxation	11		(86,419 )

NET LIABILITIES			(854,750 )

CAPITAL AND RESERVES
Called up share capital	12		100,000
Profit and Loss Account			(954,750 )

SHAREHOLDERS' FUNDS			(854,750)