K & R Management Services Limited - Period Ending 2019-06-30

Registration number: 09100060

Prepared for the registrar

K & R Management Services Limited

Annual Report and Unaudited Financial Statements

for the Year Ended 30 June 2019

K & R Management Services Limited

(Registration number: 09100060)
Balance Sheet as at 30 June 2019

	Note	2019  £	2018  £
Fixed assets
Tangible assets	4	1,125	6,750
Investment property	5	3,440,000	1,746,691
Investments	6	1,000	-
		3,442,125	1,753,441
Current assets
Debtors	7	100,890	1,000
Cash at bank and in hand		1,342	2,450
		102,232	3,450
Creditors: Amounts falling due within one year	8	(2,176,340)	(1,809,494)
Net current liabilities		(2,074,108)	(1,806,044)
Net assets/(liabilities)		1,368,017	(52,603)
Capital and reserves
Called up share capital		1,000	1,000
Revaluation reserve		1,472,109	-
Profit and loss account		(105,092)	(53,603)
Total equity		1,368,017	(52,603)

For the financial year ending 30 June 2019 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 accounts for the year in question in accordance with section 476; and
•	The directors acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and the preparation of accounts.

These financial statements have been prepared in accordance with the special provisions relating to companies subject to the small companies regime within Part 15 of the Companies Act 2006.

These financial statements have been delivered in accordance with the provisions applicable to companies subject to the small companies regime and the option not to file the Profit and Loss Account has been taken.

Approved and authorised by the Board on 29 October 2020 and signed on its behalf by:
 

K J Bell

Director

R J Slater

Director

The notes on pages 2 to 6 form an integral part of these financial statements.
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K & R Management Services Limited

Notes to the Financial Statements for the Year Ended 30 June 2019

1

General information

The company is a private company limited by share capital, incorporated in England and Wales.

The address of its registered office is:
Windsor House
Bayshill Road
Cheltenham
GL50 3AT

2

Accounting policies

Summary of significant accounting policies and key accounting estimates

The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.

Statement of compliance

These financial statements have been prepared in accordance with Financial Reporting Standard 102 Section 1A - 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' and the Companies Act 2006.

Basis of preparation

These financial statements have been prepared using the historical cost convention except for, where disclosed in these accounting policies, certain items that are shown at fair value.

The presentational currency of the financial statements is Pounds Sterling, being the functional currency of the primary economic environment in which the company operates. Monetary amounts in these financial statements are rounded to the nearest Pound.

Going concern

After reviewing the company's current forecasts and projections, together with the facilities available to the company, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. The company therefore continues to adopt the going concern basis in preparing its financial statements. This statement is made subject to all of the potential implications of the current COVID-19 outbreak on the company’s trade, employees, customers, suppliers and the wider economy, as these are difficult to evaluate. Actual results could therefore be significantly different from the current forecasts and projections.

Revenue recognition

Turnover comprises the fair value of the consideration received or receivable for rental income in the ordinary course of the company’s activities. Turnover is shown net of sales/value added tax, returns, rebates and discounts and after eliminating sales within the company.

The company recognises revenue when:
The amount of revenue can be reliably measured;
it is probable that future economic benefits will flow to the entity;
and specific criteria have been met for each of the company's activities.

Tax

The tax expense for the period comprises current and deferred tax. Tax is recognised in the profit and loss account, except that a charge attributable to an item of income or expense recognised as other comprehensive income is also recognised directly in other comprehensive income.

The current tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the reporting date in the countries where the company operates and generates taxable income.

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K & R Management Services Limited

Notes to the Financial Statements for the Year Ended 30 June 2019

Tangible assets

Tangible assets are stated in the statement of financial position at cost, less any subsequent accumulated depreciation and subsequent accumulated impairment losses.

The cost of tangible assets includes directly attributable incremental costs incurred in their acquisition and installation.

Depreciation

Depreciation is charged so as to write off the cost of assets, other than land and properties under construction over their estimated useful lives, as follows:

Asset class	Depreciation method and rate
Motor vehicles	25% reducing balance

Investment property

Investment property is carried at fair value, derived from the current market prices for comparable real estate. Changes in fair value are recognised in profit or loss.

Investments

Investments in equity shares which are publicly traded or where the fair value can be measured reliably are initially measured at fair value, with changes in fair value recognised in profit or loss. Investments in equity shares which are not publicly traded and where fair value cannot be measured reliably are measured at cost less impairment.

Interest income on debt securities, where applicable, is recognised in income using the effective interest method. Dividends on equity securities are recognised in income when receivable.

Trade debtors

Debtors are amounts due from tenants in respect of the rental properties and services performed in the ordinary course of business.

Debtors are recognised initially at the transaction price. All debtors are repayable within one year and hence are included at the undiscounted cost of cash expected to be received. A provision for the impairment of debtors is established when there is objective evidence that the company will not be able to collect all amounts due according to the original terms of the debtors.

Trade creditors

Creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Accounts payable are classified as current liabilities if the company does not have an unconditional right, at the end of the reporting period, to defer settlement of the creditor for at least twelve months after the reporting date. If there is an unconditional right to defer settlement for at least twelve months after the reporting date, they are presented as non-current liabilities.

The creditors are recognised initially at the transaction price and all are repayable within one year and hence are included at the undiscounted amount of cash expected to be paid.

Borrowings

Interest-bearing borrowings are initially recorded at fair value, net of transaction costs. Interest-bearing borrowings are subsequently carried at amortised cost, with the difference between the proceeds, net of transaction costs, and the amount due on redemption being recognised as a charge to the Profit and Loss Account over the period of the relevant borrowing.

Interest expense is recognised on the basis of the effective interest method and is included in interest payable and similar charges.

Borrowings are classified as current liabilities unless the company has an unconditional right to defer settlement of the liability for at least twelve months after the reporting date.

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K & R Management Services Limited

Notes to the Financial Statements for the Year Ended 30 June 2019

Share capital

Ordinary shares are classified as equity. Equity instruments are measured at the fair value of the cash or other resources received or receivable, net of the direct costs of issuing the equity instruments. If payment is deferred and the time value of money is material, the initial measurement is on a present value basis.

Financial instruments

Classification
Financial instruments are classified and accounted for according to the substance of the contractual arrangement, as financial assets, financial liabilities or equity instruments. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities. Where shares are issued, any component that creates a financial liability of the company is presented as a liability on the balance sheet. The corresponding dividends relating to the liability component are charged as interest expenses in the profit and loss account.

 Recognition and measurement
All financial assets and liabilities are initially measured at transaction price (including transaction costs), except for those financial assets classified as at fair value through profit or loss, which are initially measured at fair value (which is normally the transaction price excluding transaction costs), unless the arrangement constitutes a financing transaction. If an arrangement constitutes a financing transaction, the financial asset or financial liability is measured at the present value of the future payments discounted at a market rate of interest for a similar debt instrument.

3

Staff numbers

The average number of persons employed by the company (including directors) during the year, was as follows:

	2019  No.	2018  No.
Average number of employees	3	3

4

Tangible assets

	Motor vehicles  £
Cost or valuation
At 1 July 2018	9,000
Additions	10,500
Disposals	(18,000)
At 30 June 2019	1,500
Depreciation
At 1 July 2018	2,250
Charge for the year	375
Eliminated on disposal	(2,250)
At 30 June 2019	375
Carrying amount
At 30 June 2019	1,125
At 30 June 2018	6,750

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K & R Management Services Limited

Notes to the Financial Statements for the Year Ended 30 June 2019

5

Investment properties

	2019 £
At 1 July 2018	1,746,691
Additions	321,200
Disposals	(100,000)
Fair value adjustments	1,472,109
At 30 June 2019	3,440,000

There has been no valuation of investment property by an independent valuer.

6

Investments

	2019 £	2018 £
Investments in subsidiaries	1,000	-

Subsidiaries	£
Cost
Additions	1,000
At 30 June 2019	1,000
Carrying amount
At 30 June 2019	1,000

Details of undertakings

Details of the investments (including principal place of business of unincorporated entities) in which the company holds 20% or more of the nominal value of any class of share capital are as follows:

Undertaking	Registered office	Holding	Proportion of voting rights and shares held
			2019	2018

Subsidiary undertakings
Bells Group Limited	Windsor House Bayshill Road Cheltenham GL50 3AT	Ordinary	100%	0%

Its financial period end is 31 August.

The loss for the financial period of Bells Group Limited was £7,421 and the aggregate amount of capital and reserves at the end of the period was £(1,798).

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K & R Management Services Limited

Notes to the Financial Statements for the Year Ended 30 June 2019

7

Debtors

	Note	2019  £	2018  £
Amounts owed by related parties	10	99,890	-
Other debtors		1,000	1,000
		100,890	1,000

8

Creditors

	Note	2019  £	2018  £
Due within one year
Loans and borrowings	9	2,166,989	1,788,871
Trade creditors		6,981	17,433
Social security and other taxes		-	1,590
Accrued expenses		1,600	1,600
Deferred income		770	-
		2,176,340	1,809,494

9

Loans and borrowings

	2019 £	2018 £
Current loans and borrowings
Other borrowings	2,166,989	1,788,871

10

Related party transactions

Summary of transactions with other related parties

At 30 June 2019, the company owed £2,166,989 (2018: £1,788,871) to the directors in the form of a director's loan account. No interest was charged on this balance and there are no fixed repayment terms.

At 30 June 2019, the company was owed £99,890 (2018: £nil) by Bells Group Limited, its wholly owned subsidiary. No interest was charged on this balance and there are no fixed repayment terms.
 

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