Kindred Agency Limited Company Accounts

KINDRED AGENCY LIMITED - Company Information

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COMPANY REGISTRATION NUMBER: 07387574

Kindred Agency Limited

Unaudited Financial Statements

31 December 2016

Kindred Agency Limited

Financial Statements

Year ended 31 December 2016

Contents	Page

Directors' report	1

Statement of income and retained earnings	2

Statement of financial position	3

Notes to the financial statements	5

The following pages do not form part of the financial statements

Detailed income statement	13

Kindred Agency Limited

Directors' Report

Year ended 31 December 2016

The directors present their report and the unaudited financial statements of the company for the year ended 31 December 2016 .

Directors

The directors who served the company during the year were as follows:

N Mustoe
M Harding
A Scott
R Garavand
A Ravan

Small company provisions

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

This report was approved by the board of directors on 31 July 2017 and signed on behalf of the board by:

N Mustoe

Director

Registered office:

4th Floor

Dean Bradley House

52 Horseferry Road

London

SW1P 2AF

Kindred Agency Limited

Statement of Income and Retained Earnings

Year ended 31 December 2016

	2016	2015
Note	£	£
Turnover	5,376,961	7,626,017

Cost of sales	4,537,240	5,713,637
	------------	------------
Gross profit	839,721	1,912,380

Administrative expenses	1,353,084	1,459,134
Other operating income	65,000	65,000
	------------	------------
Operating (loss)/profit	( 448,363)	518,246

Other interest receivable and similar income		399	1,356
Interest payable and similar expenses		1,238	–
		------------	------------
(Loss)/profit before taxation	6	( 449,202)	519,602

Tax on (loss)/profit	( 84,334)	93,746
	---------	---------
(Loss)/profit for the financial year and total comprehensive income	( 364,868)	425,856
	---------	---------

Dividends paid and payable	–	( 303,280)

Retained earnings at the start of the year	1,094,631	972,055
	------------	------------
Retained earnings at the end of the year	729,763	1,094,631
	------------	------------

All the activities of the company are from continuing operations.

Kindred Agency Limited

Statement of Financial Position

31 December 2016

	2016	2015
Note	£	£

Fixed assets

Tangible assets	7	169,475	240,806
Investments	8	–	1
		---------	---------
		169,475	240,807

Current assets

Debtors	9	1,411,592	1,699,612
Cash at bank and in hand		217,278	421,347
		------------	------------
		1,628,870	2,120,959

Creditors: amounts falling due within one year	10	1,068,486	1,267,039
		------------	------------
Net current assets		560,384	853,920
		---------	------------
Total assets less current liabilities		729,859	1,094,727
		---------	------------
Net assets		729,859	1,094,727
		---------	------------

Capital and reserves

Called up share capital	12	96	96
Profit and loss account		729,763	1,094,631
		---------	------------
Members funds		729,859	1,094,727
		---------	------------

These financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies' regime and in accordance with FRS 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'.

For the year ending 31 December 2016 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.

Directors' responsibilities:

- The members have not required the company to obtain an audit of its financial statements for the year in question in accordance with section 476 ;

- The directors acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and the preparation of financial statements .

Kindred Agency Limited

Statement of Financial Position (continued)

31 December 2016

These financial statements were approved by the board of directors and authorised for issue on 31 July 2017 , and are signed on behalf of the board by:

N Mustoe

Director

Company registration number: 07387574

Kindred Agency Limited

Notes to the Financial Statements

Year ended 31 December 2016

1. General information

The company is a private company limited by shares, registered in England and Wales. The address of the registered office is 4th Floor, Dean Bradley House, 52 Horseferry Road, London, SW1P 2AF.

2. Statement of compliance

These financial statements have been prepared in compliance with the provisions of FRS 102 Section 1A, 'The Financial Reporting Standard applicable in the UK and the Republic of Ireland'.

3. Accounting policies

Basis of preparation

The financial statements have been prepared on the historical cost basis, as modified by the revaluation of certain financial assets and liabilities and investment properties measured at fair value through profit or loss.

The financial statements are prepared in sterling, which is the functional currency of the entity.

Revenue recognition

Turnover is measured at the fair value of the consideration received or receivable for goods supplied and services rendered, net of discounts and Value Added Tax. Revenue from the sale of goods is recognised when the significant risks and rewards of ownership have transferred to the buyer (usually on despatch of the goods); the amount of revenue can be measured reliably; it is probable that the associated economic benefits will flow to the entity; and the costs incurred or to be incurred in respect of the transactions can be measured reliably.

Income tax

The taxation expense represents the aggregate amount of current and deferred tax recognised in the reporting period. Tax is recognised in profit or loss, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. In this case, tax is recognised in other comprehensive income or directly in equity, respectively. Current tax is recognised on taxable profit for the current and past periods. Current tax is measured at the amounts of tax expected to pay or recover using the tax rates and laws that have been enacted or substantively enacted at the reporting date.

Deferred tax is recognised in respect of all timing differences at the reporting date. Unrelieved tax losses and other deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Deferred tax is measured using the tax rates and laws that have been enacted or substantively enacted by the reporting date that are expected to apply to the reversal of the timing difference.

Operating leases

Lease payments are recognised as an expense over the lease term on a straight-line basis. The aggregate benefit of lease incentives is recognised as a reduction to expense over the lease term, on a straight-line basis.

Tangible assets

Tangible assets are initially recorded at cost, and subsequently stated at cost less any accumulated depreciation and impairment losses. Any tangible assets carried at revalued amounts are recorded at the fair value at the date of revaluation less any subsequent accumulated depreciation and subsequent accumulated impairment losses. An increase in the carrying amount of an asset as a result of a revaluation, is recognised in other comprehensive income and accumulated in equity, except to the extent it reverses a revaluation decrease of the same asset previously recognised in profit or loss. A decrease in the carrying amount of an asset as a result of revaluation, is recognised in other comprehensive income to the extent of any previously recognised revaluation increase accumulated in equity in respect of that asset. Where a revaluation decrease exceeds the accumulated revaluation gains accumulated in equity in respect of that asset, the excess shall be recognised in profit or loss.

Depreciation

Depreciation is calculated so as to write off the cost or valuation of an asset, less its residual value, over the useful economic life of that asset as follows:

Short leasehold property	-	Over the lease term
Fixtures and fittings	-	25% straight line
Equipment	-	25% straight line
Computer equipment	-	33 % straight line

Investments

Fixed asset investments are initially recorded at cost, and subsequently stated at cost less any accumulated impairment losses.

Listed investments are measured at fair value with changes in fair value being recognised in profit or loss.

Investments in associates

Investments in associates accounted for in accordance with the cost model are recorded at cost less any accumulated impairment losses. Investments in associates accounted for in accordance with the fair value model are initially recorded at the transaction price. At each reporting date, the investments are measured at fair value, with changes in fair value recognised in other comprehensive income/profit or loss. Where it is impracticable to measure fair value reliably without undue cost or effort, the cost model will be adopted. Dividends and other distributions received from the investment are recognised as income without regard to whether the distributions are from accumulated profits of the associate arising before or after the date of acquisition.

Investments in joint ventures

Investments in jointly controlled entities accounted for in accordance with the cost model are recorded at cost less any accumulated impairment losses. Investments in jointly controlled entities accounted for in accordance with the fair value model are initially recorded at the transaction price. At each reporting date, the investments are measured at fair value, with changes in fair value recognised in other comprehensive income/profit or loss. Where it is impracticable to measure fair value reliably without undue cost or effort, the cost model will be adopted. Dividends and other distributions received from the investment are recognised as income without regard to whether the distributions are from accumulated profits of the joint venture arising before or after the date of acquisition.

Impairment of fixed assets

A review for indicators of impairment is carried out at each reporting date, with the recoverable amount being estimated where such indicators exist. Where the carrying value exceeds the recoverable amount, the asset is impaired accordingly. Prior impairments are also reviewed for possible reversal at each reporting date. For the purposes of impairment testing, when it is not possible to estimate the recoverable amount of an individual asset, an estimate is made of the recoverable amount of the cash-generating unit to which the asset belongs. The cash-generating unit is the smallest identifiable group of assets that includes the asset and generates cash inflows that largely independent of the cash inflows from other assets or groups of assets. For impairment testing of goodwill, the goodwill acquired in a business combination is, from the acquisition date, allocated to each of the cash-generating units that are expected to benefit from the synergies of the combination, irrespective of whether other assets or liabilities of the company are assigned to those units.

Financial instruments

A financial asset or a financial liability is recognised only when the company becomes a party to the contractual provisions of the instrument. Basic financial instruments are initially recognised at the transaction price, unless the arrangement constitutes a financing transaction, where it is recognised at the present value of the future payments discounted at a market rate of interest for a similar debt instrument. Debt instruments are subsequently measured at amortised cost. Where investments in non-convertible preference shares and non-puttable ordinary shares or preference shares are publicly traded or their fair value can otherwise be measured reliably, the investment is subsequently measured at fair value with changes in fair value recognised in profit or loss. All other such investments are subsequently measured at cost less impairment. Other financial instruments, including derivatives, are initially recognised at fair value, unless payment for an asset is deferred beyond normal business terms or financed at a rate of interest that is not a market rate, in which case the asset is measured at the present value of the future payments discounted at a market rate of interest for a similar debt instrument. Other financial instruments are subsequently measured at fair value, with any changes recognised in profit or loss, with the exception of hedging instruments in a designated hedging relationship.

Financial assets that are measured at cost or amortised cost are reviewed for objective evidence of impairment at the end of each reporting date. If there is objective evidence of impairment, an impairment loss is recognised in profit or loss immediately. For all equity instruments regardless of significance, and other financial assets that are individually significant, these are assessed individually for impairment. Other financial assets are either assessed individually or grouped on the basis of similar credit risk characteristics. Any reversals of impairment are recognised in profit or loss immediately, to the extent that the reversal does not result in a carrying amount of the financial asset that exceeds what the carrying amount would have been had the impairment not previously been recognised.

Defined contribution plans

Contributions to defined contribution plans are recognised as an expense in the period in which the related service is provided. Prepaid contributions are recognised as an asset to the extent that the prepayment will lead to a reduction in future payments or a cash refund. When contributions are not expected to be settled wholly within 12 months of the end of the reporting date in which the employees render the related service, the liability is measured on a discounted present value basis. The unwinding of the discount is recognised as a finance cost in profit or loss in the period in which it arises.

4. Auditor's remuneration

	2016	2015
	£	£
Fees payable for the audit of the financial statements	–	22,200
	----	--------

5. Employee numbers

The average number of persons employed by the company during the year amounted to 63 (2015: 64 ).

6. Profit before taxation

(Loss)/profit before taxation is stated after charging:

	2016	2015
	£	£
Depreciation of tangible assets	93,941	89,746
	--------	--------

7. Tangible assets

	Short leasehold property	Fixtures and fittings	Equipment	Computer Equipment	Total
	£	£	£	£	£
Cost
At 1 January 2016	324,047	10,611	3,234	127,859	465,751
Additions	–	10,891	–	11,719	22,610
Disposals	–	–	–	( 50,027)	( 50,027)
	---------	--------	-------	---------	---------
At 31 December 2016	324,047	21,502	3,234	89,551	438,334
	---------	--------	-------	---------	---------
Depreciation
At 1 January 2016	136,549	3,166	2,380	82,850	224,945
Charge for the year	64,812	3,688	767	24,674	93,941
Disposals	–	–	–	( 50,027)	( 50,027)
	---------	--------	-------	---------	---------
At 31 December 2016	201,361	6,854	3,147	57,497	268,859
	---------	--------	-------	---------	---------
Carrying amount
At 31 December 2016	122,686	14,648	87	32,054	169,475
	---------	--------	-------	---------	---------
At 31 December 2015	187,498	7,445	854	45,009	240,806
	---------	--------	-------	---------	---------

8. Investments

	Shares in group undertakings
	£
Cost
At 1 January 2016	1
Disposals	( 1)
	----
At 31 December 2016	–
	----
Impairment
At 1 January 2016 and 31 December 2016	–
	----

Carrying amount
At 31 December 2016	–
	----
At 31 December 2015	1
	----

9. Debtors

	2016	2015
	£	£
Trade debtors	952,038	399,527
Other debtors	459,554	1,300,085
	------------	------------
	1,411,592	1,699,612
	------------	------------

Included within other debtors is an amount of £25,000 (2015: £300,000) due from N Mustoe . This amount does not bear interest. The maximum amount owed during the year was £300,000 (2015: £300,000) and this amount was repaid in full subsequent to the year end.

10. Creditors: amounts falling due within one year

	2016	2015
	£	£
Trade creditors	182,808	273,894
Corporation tax	–	93,747
Social security and other taxes	327,512	108,104
Other creditors	558,166	791,294
	------------	------------
	1,068,486	1,267,039
	------------	------------

11. Share-based payments

Equity-settled share-based payments

Kindred Agency Limited has a share option scheme for all employees (including directors). There are no performance conditions. If the options remain unexercised after a period of 10 years from the date of grant, the options expire. Options are forfeited if the employee leaves the company before the options vest.

The number of share options outstanding at the end of the year was 1,455 (2015: 1,455).

No adjustment has been made in the accounts for the share based payments because they are immaterial.

12. Called up share capital

Issued, called up and fully paid

	2016		2015
	No.	£	No.	£
A Ordinary shares of £ 0.01 each	5,350	54	5,350	54
B Ordinary shares of £ 0.01 each	3,618	36	3,618	36
C Ordinary shares of £ 0.01 each	655	7	655	7
	-------	----	-------	----
	9,623	96	9,623	96
	-------	----	-------	----

A ordinary and B ordinary shares The shares entitle the shareholders to vote and attend meetings. They also have the right to receive dividends and distributions. On repayment of capital or winding up, the A ordinary shares and B ordinary shares rank first for an amount per share equal to the par value of each A ordinary share and B ordinary share and, after any payment in respect of the deferred shares, any remaining balance shall belong to and be distributed amongst the holders of A ordinary shares and B ordinary shares in proportion to their holding. C ordinary shares The shares entitle the shareholders to vote and attend meetings. However they have no rights to receive dividends and distributions. On repayment of capital or winding up, the C ordinary shares have no rights to a return of capital.

13. Operating leases

The total future minimum lease payments under non-cancellable operating leases are as follows:

	2016	2015
	£	£
Later than 5 years	1,321,866	1,364,234
	------------	------------

14. Directors' advances, credits and guarantees

During the year the directors entered into the following advances and credits with the company:

	2016
	Balance brought forward	Advances/ (credits) to the directors	Amounts repaid	Balance outstanding
	£	£	£	£
N Mustoe	300,000	100,000	( 375,000)	25,000
	---------	---------	---------	--------

	2015
	Balance brought forward	Advances/ (credits) to the directors	Amounts repaid	Balance outstanding
	£	£	£	£
N Mustoe	–	300,000	–	300,000
	----	---------	----	---------

Kindred Agency Limited

Management Information

Year ended 31 December 2016

The following pages do not form part of the financial statements.

Kindred Agency Limited

Detailed Income Statement

Year ended 31 December 2016

	2016	2015
	£	£
Turnover	5,376,961	7,626,017

Cost of sales

Direct costs	2,008,152	2,966,099
Wages and salaries	1,836,216	2,101,889
Directors salaries	222,500	208,375
Social security costs	226,515	226,665
Pension costs - defined contribution	130,823	95,658
Directors pension costs	28,250	28,250
Hotels, travel and subsistence	78,945	65,468
Entertaining	5,839	21,233
	------------	------------
	4,537,240	5,713,637

	------------	------------
Gross profit	839,721	1,912,380

Overheads

Administrative expenses

Rent	181,875	179,677
Service charges	41,422	47,208
Rates and water	128,994	137,463
Insurance	22,539	26,673
Repairs and maintenance	35,413	9,941
Cleaning costs	33,040	35,444
Wages and salaries	184,526	185,841
Staff health insurance	42,535	43,582
Staff national insurance contributions	30,106	27,360
Staff pension contributions - defined contribution	8,279	6,155
Motor expenses	626	225
Travel and subsistence	23,696	37,682
Telephone	20,131	20,664
Printing postage and stationery	30,414	38,780
Staff training	10,570	13,232
Recruitment	84,169	56,923
Sundry expenses	12,446	47,708
Charitable donations (allowable)	160	350
Commissions payable	–	4,036
Computer costs	78,110	68,694
Advertising	12,656	17,225
Subscriptions	132,713	153,220
Entertaining	9,035	54,416
Bank charges	2,599	2,699
Legal and professional fees	24,716	19,849
Accountancy fees	3,000	–
Auditors remuneration	–	22,200
Directors salaries	100,000	104,293
Directors pensions	5,372	7,848
Depreciation of tangible assets	93,941	89,746
(Gain)/loss on disposal of shares in group undertakings	1	–
	------------	------------
	1,353,084	1,459,134

Kindred Agency Limited

Detailed Income Statement (continued)

Year ended 31 December 2016

	2016	2015
	£	£

Other operating income

Rent receivable	65,000	65,000

	---------	---------
Operating (loss)/profit	( 448,363)	518,246

Other interest receivable and similar income	399	1,356
Interest payable and similar expenses	(1,238)	–

	---------	---------
(Loss)/profit before taxation	(449,202)	519,602
	---------	---------

Kindred Agency Limited

Notes to the Detailed Income Statement

Year ended 31 December 2016

	2016	2015
	£	£

Other interest receivable and similar income

Interest on bank deposits	399	1,356
	----	-------

Interest payable and similar expenses

Interest on bank loans and overdrafts	1,238	–
	-------	----