KINGS_LETTINGS_PLC - Accounts
KINGS_LETTINGS_PLC - Accounts
Company Registration No. 02470366 (England and Wales)
(FORMERLY KINGS PROPERTY MANAGEMENT PLC)
FOR THE YEAR ENDED 31 MARCH 2015
(FORMERLY KINGS PROPERTY MANAGEMENT PLC)
COMPANY INFORMATION
Directors
Secretary
Company number
Registered office
Auditors
Business address
103 High Street
MAIDENHEAD
Berkshire
SL6 1JX
(FORMERLY KINGS PROPERTY MANAGEMENT PLC)
CONTENTS
Page
Strategic report
1
Directors' report
2 - 3
Independent auditors' report
4 - 5
Profit and loss account
6
Balance sheet
7
Cash flow statement
8
Notes to the cash flow statement
9
Notes to the financial statements
10 - 19
(FORMERLY KINGS PROPERTY MANAGEMENT PLC)
STRATEGIC REPORT
FOR THE YEAR ENDED 31 MARCH 2015
- 1 -
The directors present the strategic report and financial statements for the year ended 31 March 2015.
Review of the business
The directors are satisfied with the performance of the company for the year.
The company's operations expose it to a variety of financial risks that include the effects of changes in credit risk, liquidity risk and interest rate risk.
The company has in place a risk management programme that seeks to limit the possible adverse effects on the financial performance of the company, by monitoring levels of cash and performing a thorough appraisal of any potential new projects.
Given the size of the company, the directors have not delegated the responsibility of monitoring financial risk management, and the company's finance department implements the policies set by the board of directors. The department has specific guidelines agreed by the directors to manage interest rate risk, credit risk and circumstances where it would be appropriate to use financial instruments to manage these.
Credit risk
The company has implemented policies that require appropriate credit checks on potential customers before the accounts are accepted.
The amount of exposure to any individual debtor is limited and is assessed continually by the board.
Interest rate risk
The company has interest bearing assets, but no such liabilities. Interest bearing assets include only cash balances that earn interest at a floating rate.
Price risk
Expenditure made by the company is authorised prior to it being made by management, in order to ensure that goods and services are not obtained at a higher price than necessary.
The company has in place a risk management programme that seeks to limit the possible adverse effects on the financial performance of the company, by monitoring levels of cash and performing a thorough appraisal of any potential new projects.
Given the size of the company, the directors have not delegated the responsibility of monitoring financial risk management, and the company's finance department implements the policies set by the board of directors. The department has specific guidelines agreed by the directors to manage interest rate risk, credit risk and circumstances where it would be appropriate to use financial instruments to manage these.
Credit risk
The company has implemented policies that require appropriate credit checks on potential customers before the accounts are accepted.
The amount of exposure to any individual debtor is limited and is assessed continually by the board.
Interest rate risk
The company has interest bearing assets, but no such liabilities. Interest bearing assets include only cash balances that earn interest at a floating rate.
Price risk
Expenditure made by the company is authorised prior to it being made by management, in order to ensure that goods and services are not obtained at a higher price than necessary.
The directors consider the state of the company's affairs at the year end to be satisfactory.
The directors consider turnover and operating profit to be the key performance indicators of the company. During the year the company generated turnover of £296,352 and an operating profit of £102,372 compared to £253,738 and an operating profit of £93,207 in the last financial year. By boosting turnover and other operating income, the company has been able to increase its operating profits for the year.
On behalf of the board
Director
29 September 2015
(FORMERLY KINGS PROPERTY MANAGEMENT PLC)
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 MARCH 2015
- 2 -
The directors present their report and financial statements for the year ended 31 March 2015.
Principal activities and review of the business
Results and dividends
The results for the year are set out on page 6.
An interim ordinary dividend was paid amounting to £26,921. The directors do not recommend payment of a final dividend.
Directors
The following directors have held office since 1 April 2014:
(Appointed 16 April 2015)
(Appointed 23 May 2014 and resigned 16 January 2015)
Auditors
The auditors, Harwood Hutton Limited, are deemed to be reappointed under section 487(2) of the Companies Act 2006.
Statement of directors' responsibilities
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;
- state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements;
- 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.
(FORMERLY KINGS PROPERTY MANAGEMENT PLC)
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2015
- 3 -
Statement of disclosure to auditors
On behalf of the board
Director
(FORMERLY KINGS PROPERTY MANAGEMENT PLC)
INDEPENDENT AUDITORS' REPORT
TO THE MEMBERS OF KINGS LETTINGS PLC
- 4 -
We have audited the financial statements of Kings Lettings Plc for the year ended 31 March 2015 set out on pages 6 to 19. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).
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 an auditors' report 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.
Respective responsibilities of directors and auditors
As explained more fully in the Directors' Responsibilities Statement set out on pages 2 - 3, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view. Our responsibility is to audit and express an opinion on the financial statements in accordance with applicable law and International Standards on Auditing (UK and Ireland). Those standards require us to comply with the Auditing Practices Board's Ethical Standards for Auditors.
Scope of the audit of the financial statements
An audit involves obtaining evidence about the amounts and disclosures in the financial statements sufficient to give reasonable assurance that the financial statements are free from material misstatement, whether caused by fraud or error. This includes an assessment of: whether the accounting policies are appropriate to the company's circumstances and have been consistently applied and adequately disclosed; the reasonableness of significant accounting estimates made by the directors; and the overall presentation of the financial statements. In addition, we read all the financial and non-financial information in the Annual Report to identify material inconsistencies with the audited financial statements and to identify any information that is apparently materially incorrect based on, or materially inconsistent with, the knowledge acquired by us in the course of performing the audit. If we become aware of any apparent material misstatements or inconsistencies we consider the implications for our report.
Opinion on financial statements
-
give a true and fair view of the state of the company's affairs as at 31 March 2015 and of its profit 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.
Opinion on other matter prescribed by the Companies Act 2006
In our opinion the information given in the Strategic Report and Directors' Report for the financial year for which the financial statements are prepared is consistent with the financial statements.
(FORMERLY KINGS PROPERTY MANAGEMENT PLC)
INDEPENDENT AUDITORS' REPORT (CONTINUED)
TO THE MEMBERS OF KINGS LETTINGS PLC
- 5 -
Matters on which we are required to report by exception
We have nothing to report in respect of the following matters where 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.
for and on behalf of Harwood Hutton Limited
Chartered Accountants
Statutory Auditor
(FORMERLY KINGS PROPERTY MANAGEMENT PLC)
PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 31 MARCH 2015
- 6 -
2015
2014
Notes
£
£
Turnover
2
Administrative expenses
(214,318 )
(185,971 )
Other operating income
Operating profit
3
Other interest receivable and similar income
4
Interest payable and similar charges
5
(1,958 )
-
Profit on ordinary activities before taxation
Tax on profit on ordinary activities
6
(20,766 )
(19,480 )
Profit for the year
16
The accompanying accounting policies and notes form part of these financial statements.
The profit and loss account has been prepared on the basis that all operations are continuing operations.
There are no recognised gains and losses other than those passing through the profit and loss account.
(FORMERLY KINGS PROPERTY MANAGEMENT PLC)
BALANCE SHEET
AS AT
31 MARCH 2015
- 7 -
2015
2014
Notes
£
£
£
£
Fixed assets
Tangible assets
9 and 10
Current assets
Debtors
11
Cash at bank and in hand
Creditors: amounts falling due within one year
12
(63,155 )
(65,545 )
Net current assets
Total assets less current liabilities
Creditors: amounts falling due after more than one year
13
(145,217 )
(4,586 )
Provisions for liabilities
14
(3,301 )
(2,228 )
Capital and reserves
Called up share capital
15
Share premium account
16
Revaluation reserve
16
Profit and loss account
16
Shareholders' funds
17
The accompanying accounting policies and notes form part of these financial statements.
Approved by the Board and authorised for issue on 29 September 2015
Director
Company Registration No. 02470366
(FORMERLY KINGS PROPERTY MANAGEMENT PLC)
CASH FLOW STATEMENT
FOR THE YEAR ENDED 31 MARCH 2015
- 8 -
2015
2014
£
£
£
£
Net cash inflow from operating activities
71,592
95,768
Returns on investments and servicing of finance
Interest received
3,382
4,195
Interest paid
(1,958)
-
Net cash inflow for returns on investments and servicing of finance
1,424
4,195
Taxation
(19,841 )
(18,305 )
Capital expenditure
Payments to acquire tangible assets
(206,314)
(3,767)
Receipts from sales of tangible assets
-
1,898
Net cash outflow for capital expenditure
(206,314)
(1,869)
Equity dividends paid
(26,921)
(26,921)
Net cash (outflow)/inflow before management of liquid resources and financing
(180,060 )
Financing
New long term bank loan
142,669
-
Repayment of other short term loans
7,609
-
Capital element of hire purchase contracts
(2,038)
(2,038)
Net cash inflow/(outflow) from financing
148,240
(2,038)
(Decrease)/increase in cash in the year
(31,820 )
50,830
(FORMERLY KINGS PROPERTY MANAGEMENT PLC)
NOTES TO THE CASH FLOW STATEMENT
FOR THE YEAR ENDED 31 MARCH 2015
- 9 -
1
Reconciliation of operating profit to net cash inflow from operating activities
2015
2014
£
£
Operating profit
Depreciation of tangible assets
3,998
3,890
Amortisation of intangible assets
-
1,800
Increase in debtors
(24,927)
(7,653)
(Decrease)/Increase in creditors within one year
(9,851)
4,524
Net cash inflow from operating activities
71,592
95,768
2
Analysis of net funds
1 April 2014
Cash flow
Other non-cash changes
£
£
£
£
Net cash:
Cash at bank and in hand
(31,820)
-
Bank deposits
-
-
-
-
Debt:
Finance leases
(6,624)
2,038
-
(4,586)
Debts falling due within one year
-
(7,609)
-
(7,609)
Debts falling due after one year
-
(142,669)
-
(142,669)
(6,624)
(148,240)
-
(154,864)
Net funds
(180,060)
-
3
Reconciliation of net cash flow to movement in net funds
2015
2014
£
£
(Decrease)/increase in cash in the year
(31,820 )
Cash (inflow)/outflow from (increase)/decrease in debt and lease financing
(148,240)
2,038
Movement in net funds in the year
(180,060)
52,868
Opening net funds
197,076
Closing net funds
(FORMERLY KINGS PROPERTY MANAGEMENT PLC)
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2015
- 10 -
1
Accounting policies
1.1
Accounting convention
1.2
Compliance with accounting standards
The financial statements are prepared in accordance with applicable United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), which have been applied consistently (except as otherwise stated).
1.3
Turnover
1.4
Goodwill
1.5
Tangible fixed assets and depreciation
Office Equipment
Fixtures, fittings & equipment
Motor vehicles
Investment properties are included in the balance sheet at their open market value. Depreciation is provided only on those investment properties which are leasehold and where the unexpired lease term is less than 20 years.
Although this accounting policy is in accordance with the applicable accounting standard, SSAP 19, Accounting for investment properties, it is a departure from the general requirement of the Companies Act 2006 for all tangible assets to be depreciated. In the opinion of the directors compliance with the standard is necessary for the financial statements to give a true and fair view. Depreciation or amortisation is only one of many factors reflected in the annual valuation and the amount of this which might otherwise have been charged cannot be separately identified or quantified.
Although this accounting policy is in accordance with the applicable accounting standard, SSAP 19, Accounting for investment properties, it is a departure from the general requirement of the Companies Act 2006 for all tangible assets to be depreciated. In the opinion of the directors compliance with the standard is necessary for the financial statements to give a true and fair view. Depreciation or amortisation is only one of many factors reflected in the annual valuation and the amount of this which might otherwise have been charged cannot be separately identified or quantified.
1.6
Deferred taxation
Deferred taxation is provided in full in respect of taxation deferred by timing differences between the treatment of certain items for taxation and accounting purposes. The deferred tax balance has not been discounted.
2
Turnover
The total turnover of the company for the year has been derived from its principal activity wholly undertaken in the United Kingdom.
(FORMERLY KINGS PROPERTY MANAGEMENT PLC)
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2015
- 11 -
3
Operating profit
2015
2014
£
£
Operating profit is stated after charging:
Amortisation of intangible assets
-
Depreciation of tangible assets
Auditors' remuneration
Fees payable to the company's auditor for the audit of the company's annual accounts
All other services
3,098
3,850
7,848
8,600
4
Investment income
2015
2014
£
£
Bank interest
3,382
4,195
5
Interest payable
2015
2014
£
£
Other interest
1,958
-
(FORMERLY KINGS PROPERTY MANAGEMENT PLC)
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2015
- 12 -
6
Taxation
2015
2014
£
£
Domestic current year tax
U.K. corporation tax
Total current tax
Deferred tax
Origination and reversal of timing differences
1,073
(361)
Factors affecting the tax charge for the year
Profit on ordinary activities before taxation
Profit on ordinary activities before taxation multiplied by standard rate of UK corporation tax of 20.00% (2014 - 20.00%)
Effects of:
Non deductible expenses
-
Deferred tax
(1,073)
361
(1,066)
361
Current tax charge for the year
7
Dividends
2015
2014
£
£
Ordinary interim paid
26,921
26,921
8
Intangible fixed assets
Goodwill
£
Cost
At 1 April 2014 & at 31 March 2015
Amortisation
At 1 April 2014 & at 31 March 2015
Net book value
At 31 March 2015
-
At 31 March 2014
-
(FORMERLY KINGS PROPERTY MANAGEMENT PLC)
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2015
- 13 -
9
Tangible fixed assets
Office Equipment
Fixtures, fittings & equipment
Motor vehicles
Total
£
£
£
£
Cost or valuation
At 1 April 2014
Additions
-
At 31 March 2015
Depreciation
At 1 April 2014
Charge for the year
At 31 March 2015
Net book value
At 31 March 2015
23,666
At 31 March 2014
19,874
Included above are assets held under finance leases or hire purchase contracts as follows:
Motor vehicles
£
Net book values
At 31 March 2015
At 31 March 2014
Depreciation charge for the year
At 31 March 2015
At 31 March 2014
(FORMERLY KINGS PROPERTY MANAGEMENT PLC)
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2015
- 14 -
10
Tangible fixed assets
Investment properties
£
Cost or valuation
At 1 April 2014
Additions
Revaluation
At 31 March 2015
Net book value
At 31 March 2015
At 31 March 2014
The investment property at 16 Victoria Road is shown at current open market value of £300,000 (2014 - £243,600). The valuation was made by N D Brandon-King, a director of the company.
On an historical cost basis this would have been included at an original cost of £144,514 (2014 - £144,514).
The investment property addition at 219 Shepherds Bush Road is shown at cost.
11
Debtors
2015
2014
£
£
Trade debtors
Other debtors
Prepayments and accrued income
(FORMERLY KINGS PROPERTY MANAGEMENT PLC)
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2015
- 15 -
12
Creditors: amounts falling due within one year
2015
2014
£
£
Bank loans and overdrafts
-
Net obligations under finance leases
Trade creditors
Corporation tax
Other taxes and social security costs
Directors' current accounts
Other creditors
Accruals and deferred income
(FORMERLY KINGS PROPERTY MANAGEMENT PLC)
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2015
- 16 -
13
Creditors: amounts falling due after more than one year
2015
2014
£
£
Bank loans
-
Net obligations under finance leases
Analysis of loans
Not wholly repayable within five years by instalments:
(142,669)
-
Wholly repayable within five years
292,947
-
150,278
-
Included in current liabilities
(7,609)
-
142,669
-
Instalments not due within five years
104,624
-
Loan maturity analysis
In more than one year but not more than two years
-
In more than two years but not more than five years
-
In more than five years
-
The loan is secured by a fixed and floating charge over the assets of the company.
Net obligations under finance leases
Included in liabilities falling due within one year
(2,038 )
(2,038 )
(2,038)
(2,038)
(FORMERLY KINGS PROPERTY MANAGEMENT PLC)
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2015
- 17 -
14
Provisions for liabilities
Deferred tax liability
£
Balance at 1 April 2014
2,228
Profit and loss account
Balance at 31 March 2015
The deferred tax liability is made up as follows:
2015
2014
£
£
Accelerated capital allowances
15
Share capital
2015
2014
£
£
Allotted, called up and fully paid
3,842 Ordinary shares of £1 each
3,842
3,842
Allotted, called up and partly paid
50,000 Ordinary shares of £1 each 25p paid
12,500
12,500
16
Statement of movements on reserves
Share premium account
Revaluation reserve
Profit
and loss
account
and loss
account
£
£
£
Balance at 1 April 2014
Profit for the year
-
-
Dividends paid
-
-
(26,921 )
Revaluation during the year
-
-
Balance at 31 March 2015
(FORMERLY KINGS PROPERTY MANAGEMENT PLC)
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2015
- 18 -
17
Reconciliation of movements in Shareholders' funds
2015
2014
£
£
Profit for the financial year
Dividends
(26,921 )
(26,921 )
56,109
51,001
Other recognised gains and losses
56,400
-
Net addition to shareholders' funds
Opening Shareholders' funds
Closing Shareholders' funds
18
Directors' remuneration
2015
2014
£
£
Remuneration for qualifying services
19
Employees
Number of employees
The average monthly number of employees (including directors) during the year was:
2015
2014
Number
Number
Management and administration
6
5
Employment costs
2015
2014
£
£
Wages and salaries
Social security costs
20
Control
The ultimate controlling party is N D Brandon-King by virtue of his majority shareholding.
(FORMERLY KINGS PROPERTY MANAGEMENT PLC)
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2015
- 19 -
21
Related party relationships and transactions
During the year a dividend of £26,921 (2014 - £26,921) was declared and this was credited to N D Brandon-King's loan account. Payments of £24,000 (2014 - £29,841) were made to N D Brandon-King so that at the balance sheet date the company owed N D Brandon-King £8,762 (2014 - £5,841).
During the year the company incurred management charges of £12,000 (2014 - £12,000) for accounting and administration services provided by N D Brandon-King trading as Kings Property Management. The company also made payments of £2,852 (2014 - £3,077) on behalf of Kings Property Management and Kings Property Management made payments on behalf of the company of £47,940 (2014 - £42,257).
The company leased premises in Reading from Kings Property Management at the market rate of £12,000 (2014 - £12,000). During the year the company made payments of £69,536 (2014 - £67,051) to Kings Property Management so that at the balance sheet date, the company owed £4,005 (2014 - £4,453) to N D Brandon-King trading as Kings Property Management.