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Registered number: 01962842
KERRINGTON LIMITED
UNAUDITED
FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2021
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CONTENTS
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Statement of changes in equity
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Notes to the financial statements
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KERRINGTON LIMITED
REGISTERED NUMBER:01962842
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BALANCE SHEET
AS AT 31 MARCH 2021
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Debtors: amounts falling due within one year
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Current asset investments
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Creditors: amounts falling due within one year
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Total assets less current liabilities
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Provisions for liabilities
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Capital redemption reserve
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1
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KERRINGTON LIMITED
REGISTERED NUMBER:01962842
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BALANCE SHEET (CONTINUED)
AS AT 31 MARCH 2021
The directors consider that the company is entitled to exemption from audit under section 477 of the Companies Act 2006 and members have not required the company to obtain an audit for the year in question in accordance with section 476 of the Companies Act 2006.
The directors acknowledge their responsibilities for complying with the requirements of the Companies Act 2006 with respect to accounting records and the preparation of financial statements.
The financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies regime and in accordance with the provisions of FRS 102 Section 1A - small entities.
The financial statements have been delivered in accordance with the provisions applicable to companies subject to the small companies regime.
The company has opted not to file the profit and loss account in accordance with provisions applicable to companies subject to the small companies' regime.
The financial statements were approved and authorised for issue by the board and were signed on its behalf on 31 March 2022.
The notes on pages 4 to 9 form part of these financial statements.
2
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STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 MARCH 2021
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Capital redemption reserve
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Comprehensive income for the year
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Comprehensive income for the year
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Transfer to Profit and loss account
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Total comprehensive income for the year
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3
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2021
Kerrington Limited is principally engaged in property development and property trading.
The company is a private company, limited by shares and is registered in England and Wales. The address of its registered office and principal place of business is Grove Lodge, 287 Regents Park Road, London, N3 3JY.
2.Accounting policies
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Basis of preparation of financial statements
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The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Section 1A of Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and the Companies Act 2006.
The company's functional and presentational currency is pound sterling.
The following principal accounting policies have been applied:
The directors are assessing, on a daily basis, the impact of the significant uncertainty arising from the COVID-19 virus. Whilst the directors appreciate there is a significant uncertainty surrounding the future economic climate, the company is well placed to address these impacts. The directors are satisfied that the company will be able to satisfy its financial obligations for at least 12 months from the date of signature of the financial statements, which have been prepared on the going concern basis.
Turnover comprises:
∙Gross rental income receivable from investment properties;
∙The value of development work in progress sold; and
∙Fees from management of properties.
Revenue is recognised to the extent that it is probable that the economic benefits will flow to the company and the revenue can be reliably measured. Revenue is measured as the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. The following criteria must also be met before revenue is recognised:
Interest income is recognised in profit or loss using the effective interest method.
Finance costs are charged to profit or loss over the term of the debt using the effective interest method so that the amount charged is at a constant rate on the carrying amount. Issue costs are initially recognised as a reduction in the proceeds of the associated capital instrument.
All borrowing costs are recognised in profit or loss in the year in which they are incurred.
4
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2021
2.Accounting policies (continued)
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Current and deferred taxation
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The tax expense for the year comprises current and deferred tax. Tax is recognised in profit or loss except that a charge attributable to an item of income and expense recognised as other comprehensive income or to an item recognised directly in equity is also recognised in other comprehensive income or directly in equity respectively.
The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the balance sheet date in the countries where the company operates and generates income.
Deferred tax balances are recognised in respect of all timing differences that have originated but not reversed by the balance sheet date, except that:
∙The recognition of deferred tax assets is limited to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits; and
∙Any deferred tax balances are reversed if and when all conditions for retaining associated tax allowances have been met.
Deferred tax balances are not recognised in respect of permanent differences except in respect of business combinations, when deferred tax is recognised on the differences between the fair values of assets acquired and the future tax deductions available for them and the differences between the fair values of liabilities acquired and the amount that will be assessed for tax. Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the balance sheet date.
Investment property is carried at fair value determined annually by external valuers and derived from the current market rents and investment property yields for comparable real estate, adjusted if necessary for any difference in the nature, location or condition of the specific asset. No depreciation is provided. Changes in fair value are recognised in profit or loss.
Investments in subsidiaries are measured at cost less accumulated impairment.
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Associates and joint ventures
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Associates and Joint Ventures are held at cost less impairment.
Stocks of development property are stated at the lower of cost and realisable value, being estimated selling price less costs to complete and sell. Cost is based on the cost of purchase on an actual basis.
At each balance sheet date, stocks are assessed for impairment. If stock is 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.
Short term debtors are measured at transaction price, less any impairment.
5
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2021
2.Accounting policies (continued)
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Cash and cash equivalents
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Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours.
Short term creditors are measured at the transaction price. Other financial liabilities, including bank loans, are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method.
The company only enters into basic financial instrument transactions that result in the recognition of financial assets and liabilities like trade and other debtors and creditors, loans from banks and other third parties, loans to related parties and investments in ordinary shares.
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The average monthly number of employees, including directors, during the year was 4 (2020 - 4).
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Investments in subsidiary companies
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Investment in joint ventures
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6
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2021
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Freehold investment property
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The 2021 valuations were made by the directors, on an open market value for existing use basis.
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If the investment properties had been accounted for under the historic cost accounting rules, the properties would have been measured as follows:
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Amounts owed by group undertakings
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Prepayments and accrued income
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Current asset investments
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7
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2021
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Cash and cash equivalents
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Creditors: Amounts falling due within one year
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Amounts owed to group undertakings
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Accruals and deferred income
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At 31 March 2021, the contingent liability, for which the company is jointly and severally liable, in respect of the intercompany unlimited cross guarantees amounts to £7,283,114 (2020 - £5,708,364).
There are cross guarantees between the following companies, of which G A Lee is a director:
Kerrington Developments Limited, Kerrington Property Services Limited, Eldington Holdings Limited,
Kerrington (Grove Lodge) Limited, Kerrington Limited, Vista Estates Ltd, Fletcher Gate Limited, Hilby
Limited and Kerrington Growth Limited.
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Charged to profit or loss
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The deferred taxation balance is made up as follows:
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Capital gains timing difference
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8
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2021
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Allotted, called up and fully paid
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12,220,886 ordinary shares of £0.50 each
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Related party transactions
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No disclosure has been made of transactions with wholly owned group companies in accordance with FRS102 Section 1A paragraph 1AC.35.
During the year, the company received repayments of £1,242,616 (2020 - £64,000) from Hilby Limited, a subsidiary company. At the year end, the company was owed £4,826,163 (2020 - £6,068,779) by Hilby Limited, of which £4,700,000 (2020 - £4,700,000) relates to a loan repayable within one year and the effective interest rate is 3%.
During the year, the company paid £579,700 (2020 - £785,081 received from) to Newark Property Development Limited, a subsidiary company. At the year end, the company was owed £128,249 (2020 - £451,451 owed to) by Newark Property Development Limited.
During the year, the company received net repayments of £81,016 (2020 - £73,000) from Fletcher Gate Limited, a subsidiary company. At the year end, the company was owed £495,081 (2020 - £576,097) by Fletcher Gate Limited of which £NIL (2020 - £1,750) relates to a loan repayable within one year and the effective interest rate is 3%.
At the year end, the company owed £184,622 (2020 - £184,622) to Plainrise Limited, a subsidiary company.
During the year, the company repaid £69 (2020 - £Nil) to Nisacrown Limited, a subsidiary company. At the year end, the company owed £3,440,956 (2020 - £3,441,025) to Nisacrown Limited. The loan is interest free and repayable on demand.
During the year, the company paid £12,033 (2020 - £46,000 received from) to Islandpost Limited, a subsidiary company. At the year end, the company was owed £1,698,802 (2020 - £1,686,769) from Islandpost Limited. The loan is interest free and receivable on demand.
At the year end, the company owed £300,981 (2020 - £394,300) to Finchley Road Properties Limited, a subsidiary company.
During the year, the company paid £40,000 (2020 - £640,745 received from) to Merchant City Limited, a subsidiary. At the year end, the company was owed £33,195 (2020 - £6,805 owed to) from Merchant City Limited.
At the year end, the company was owed £241,071 (2020 - £241,071) by Pathfinder Recovery 1 Limited, a subsidiary.
During the year, the company paid 25,280 (2020 - £86,659) to Total Health Limited, a subsidiary company. At the year end, the company was owed £210,134 (2020 - £184,854) by Total Health Limited.
During the year, the company received £278,367 (2020 - £431,089) from G A Lee, a director. At the year end, the company was owed £NIL (2020 - £278,367) by G A Lee.
At the year end, £624,000 (2020 - £624,000) was owed by a close family member of a director.
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9
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