KENSINGTON_DEVELOPMENTS_H - Accounts
KENSINGTON_DEVELOPMENTS_H - Accounts
The director presents the strategic report for the period ended 31 December 2021.
The results for the period show a pre-tax profit of £14,536,749 (2020: £703,883) and turnover of £34,444,496 (2020: £18,876,876)
General
During this period, the group sold its two larger scale residential developments at Richmond Point and Redwood Point due to the relative strength of the residential land market and given the group’s concerns over the on-going COVID-19 pandemic, the long-term availability of finance, the availability of skilled labour and global inflationary pressures.
The group continues to hold land stock as of 31st December 2021 and is looking to exploit this land stock for profit with a view to disposing of it in the mid to long term.
Issue | Risk | Mitigation |
Land Market | Market Failure/Asset Price Deflation | The group continues to investigate ways in which it can enhance and exploit the value of its remaining land bank. |
Overheads | Inflation | The group continues to investigate ways in which it can reduce and eliminate unnecessary overhead. |
The directors review a number of KPI’s in order to monitor the performance of the group as set out below.
2021 2020
Legal completions 19 59
Profit before taxation £14,536,755 £703,833
Profit before taxation as a % of sales 43.5% 3.7%
Units held in land bank 0 854
On behalf of the board
The director presents his annual report and financial statements for the period ended 31 December 2021.
The results for the period are set out on page 7.
Ordinary dividends were paid amounting to £8,050,000. The director does not recommend payment of a further dividend.
The director who held office during the period and up to the date of signature of the financial statements was as follows:
The auditor, MHA Moore and Smalley, is deemed to be reappointed under section 487(2) of the Companies Act 2006.
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 ; prepare the on the going concern basis unless it is inappropriate to presume that the group and company will continue in business.
We have audited the financial statements of Kensington Developments Holdings Limited (the 'parent company') and its subsidiaries (the 'group') for the period ended 31 December 2021 which comprise the group statement of comprehensive income, the group balance sheet, the company balance sheet, the group statement of changes in equity, the company statement of changes in equity, the group statement of cash flows and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).
give a true and fair view of the state of the group's and the parent company's affairs as at 31 December 2021 and of the group's profit for the period 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.
Basis for opinion
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the group and parent company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Conclusions relating to going concern
In auditing the financial statements, we have concluded that the director's use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the group's and parent company’s ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.
Our responsibilities and the responsibilities of the director with respect to going concern are described in the relevant sections of this report.
Other information
The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The director is responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of our audit:
the information given in the strategic report and the director's report for the financial period for which the financial statements are prepared is consistent with the financial statements; and
the strategic report and the director's report have been prepared in accordance with applicable legal requirements.
In the light of the knowledge and understanding of the group and the parent company and their environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the director's report. We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:
adequate accounting records have not been kept by the parent company, or returns adequate for our audit have not been received from branches not visited by us; or
the parent company 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.
As explained more fully in the director's responsibilities statement, the director is responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the director determines is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the director is responsible for assessing the parent company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the director either intends to liquidate the parent company or to cease operations, or has no realistic alternative but to do so.
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The specific procedures for this engagement and the extent to which these are capable of detecting irregularities, including fraud, are detailed below:
Enquiries with management about any known or suspected instances of non-compliance with laws and regulations;
Enquiries with management about any known or suspected instances of fraud;
Examination of journal entries and other adjustments to test for appropriateness and to identify instances of management override of controls;
Review of purchase existence and that development costs have been allocated to the correct site;
Challenging assumptions and judgements made by management in their accounting estimates; and
Review of legal and professional expenditure to identify any evidence of ongoing litigation or enquiries.
Because of the field in which the company and group operate we identified that employment law, health and safety legislation and compliance with UK Companies Act are the areas most likely to have a material impact on the financial statements.
Owing to the inherent limitations of an audit, there is an unavoidable risk that some material misstatements in the financial statements may not be detected, even though the audit is properly planned and performed in accordance with the ISAs (UK). For instance, the further removed non-compliance is from the events and transactions reflected in the financial statements, the less likely the auditor is to become aware of it or to recognize the non-compliance.
A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.
Use of our report
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 auditor's 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.
As permitted by s408 Companies Act 2006, the company has not presented its own profit and loss account and related notes. The company’s profit for the year was £7,849,167 (2020 - £25 loss).
Kensington Developments Holdings Limited (“the company”) is a private limited company domiciled and incorporated in England and Wales. The registered office is 216 Whitegate Drive, Blackpool, FY3 9JL.
The group consists of Kensington Developments Holdings Limited and all of its subsidiaries.
The reporting period was extended to cover the 16 month period to 31 December 2021. The period has been extended as to align with other group companies. Comparative amounts presented in the financial statements are not entirely comparable.
These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.
The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.
The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.
The company is a qualifying entity for the purposes of FRS 102, being a member of a group where the parent of that group prepares publicly available consolidated financial statements, including this company, which are intended to give a true and fair view of the assets, liabilities, financial position and profit or loss of the group. The company has therefore taken advantage of exemptions from the following disclosure requirements for parent company information presented within the consolidated financial statements:
Section 7 ‘Statement of Cash Flows’: Presentation of a statement of cash flow and related notes and disclosures;
Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instrument Issues’: Carrying amounts, interest income/expense and net gains/losses for each category of financial instrument;
Section 33 ‘Related Party Disclosures’: Compensation for key management personnel.
The consolidated group financial statements consist of the financial statements of the parent company Kensington Developments Holdings Limited together with all entities controlled by the parent company (its subsidiaries) and the group’s share of its interests in joint ventures and associates.
All financial statements are made up to 31 December 2021. Where necessary, adjustments are made to the financial statements of subsidiaries to bring the accounting policies used into line with those used by other members of the group.
All intra-group transactions, balances and unrealised gains on transactions between group companies are eliminated on consolidation. Unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred.
Subsidiaries are consolidated in the group’s financial statements from the date that control commences until the date that control ceases.
At the time of approving the financial statements, the director has a reasonable expectation that the group has adequate liquid resources to meet all liabilities as they fall due for payment during this next phase of the group's operations and therefore to continue in operational existence for the foreseeable future.
Thus the director continues to adopt the going concern basis of accounting in preparing the financial statements.
Turnover is recognised at the fair value of the consideration received or receivable the sale of new build property, land disposals and associated revenues. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates. Turnover is shown net of VAT and is recognised on legal completion of property or land sales.
The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in the profit and loss account.
Equity investments are measured at fair value through profit or loss, except for those equity investments that are not publicly traded and whose fair value cannot otherwise be measured reliably, which are recognised at cost less impairment until a reliable measure of fair value becomes available.
In the parent company financial statements, investments in subsidiaries are initially measured at cost and subsequently measured at cost less any accumulated impairment losses.
A subsidiary is an entity controlled by the group. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.
At each reporting period end date, the group reviews the carrying amounts of its tangible and intangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.
The carrying amount of the investments accounted for using the equity method is tested for impairment as a single asset. Any goodwill included in the carrying amount of the investment is not tested separately for impairment.
Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.
If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss.
Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss.
The group has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the group's balance sheet when the group becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset and the net amounts presented in the financial statements when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.
Financial assets are assessed for indicators of impairment at each reporting end date.
Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.
If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.
Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the group transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.
Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the group after deducting all of its liabilities.
Basic financial liabilities, including creditors and bank loans are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.
Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.
Financial liabilities are derecognised when the group's contractual obligations expire or are discharged or cancelled.
Equity instruments issued by the group are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the group.
The 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 net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The group’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.
Deferred tax liabilities are generally recognised for all timing differences and 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. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.
The carrying amount of deferred tax assets is reviewed at each reporting end date 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 is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset if, and only if, there is a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.
The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.
The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.
Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leased asset are consumed.
Rental income from operating leases is recognised on a straight line basis over the term of the relevant lease. Initial direct costs incurred in negotiating and arranging an operating lease are added to the carrying amount of the leased asset and recognised on a straight line basis over the lease term.
Government grants are recognised at the fair value of the asset received or receivable when there is reasonable assurance that the grant conditions will be met and the grants will be received.
A grant that specifies performance conditions is recognised in income when the performance conditions are met. Where a grant does not specify performance conditions it is recognised in income when the proceeds are received or receivable. A grant received before the recognition criteria are satisfied is recognised as a liability.
In the application of the group’s accounting policies, the director is required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.
The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are as follows.
To determine the profits which the group is able to recognise on its developments in each financial period, it must allocate site wide development costs between units built and sold in the current period and in to the future.
The group must also estimate costs to complete on such developments and make estimates relating to future sales price margins on each development and the differing units within them.
This is a natural area of estimation uncertainty given the industry in which the group operates. As an integral part of the internal controls to assess and review carrying values and the appropriateness of the estimates made, the group uses suitably qualified Quantity Surveyors to assess the level of work done, expected revenue and thus profit recognition. These assessments are then reviewed by the group’s finance team, providing an additional level of internal assurance that reduces the estimation uncertainty to an appropriate level.
Owing to the disposal of its principal land banks, the group changed this accounting estimate in the prior year from assessing profitability on a blended rate over its two principal land banks, on the basis they were treated in every way as a single development, to recognising profit individually across each land bank and associated development work. The estimated impact of this change in the prior year was to reduce development work in progress and profits in the year ended 31 August 2020 by £3,927,738.
During the period the group waived its right to recover certain balances owed by related companies. This was part of a wider effort to restructure the group for the future. The net charge against, or credit to, profit is therefore presented separately in the relevant entity financial statements to better show the underlying trading result. The residual credit to profit presented above is related to an entity which is no longer a member of the group at the balance sheet date.
The average monthly number of persons (including directors) employed by the group and company during the period was:
Their aggregate remuneration comprised:
During the period various related parties agreed to waive their right to receive interest as the group was able to make an accelerated repayment of a significant majority of the outstanding amounts owed at the previous balance sheet date.
The actual charge/(credit) for the period can be reconciled to the expected charge for the period based on the profit or loss and the standard rate of tax as follows:
The Chancellor stated his intention to maintain the main rate of corporation tax at 19%. This change to previously announced policy was substantively enacted on 17 March 2020. The Chancellor subsequently announced his intention to increase the headline rate of corporation tax to 25% from 1 April 2023, this policy was substantively enacted on 25 May 2021.
As a consequence of the group reorganisation which took place during the period, an impairment charge was recognised within the company's financial statements such that the carrying value of the investments in the subsidiary companies was equivalent to the net assets at the balance sheet date.
Details of the company's subsidiaries at 31 December 2021 are as follows:
Bank borrowings
Bank borrowings form part of the revolving credit facility that was made available to the group. Interest was payable on bank loans at varying rates above LIBOR. All amounts have been fully repaid.
Bank borrowings were secured over the group's development land and work in progress.
Other borrowings
Non-convertible debentures of £Nil (2020: £1,110,000) attracted an interest rate of 2% above base rate per annum.
The loan facility with the M. A. Hawe Settlement was secured by way of a debenture over the group's assets dated 30th April 1996.
The following are the major deferred tax liabilities and assets recognised by the group and company, and movements thereon:
The deferred tax provision movement is not estimated to be material over the 12 months subsequent to the balance sheet date.
A defined contribution pension scheme is operated for all qualifying employees. The assets of the scheme are held separately from those of the group in an independently administered fund.
On 15 November 2006 Kensington Developments Holdings Limited entered into a share for share exchange agreement with Cypress Point Holdings Limited in order to acquire this company and the majority of its subsidiaries at that date.
At the date of the share for share exchange Kensington Developments Holdings Limited transferred the investments held by Cypress Point Holdings Limited at cost as stated in Cypress Point Holdings Limited audited financial statements. On consolidation of the group financial statements a Merger Reserve arose being the difference between the cost value of the investments held and the fair value of shares acquired in the subsidiaries.
The group's bankers have guaranteed £472,653 (2020: £537,653) in favour of local authorities for road and sewer bonds on behalf of the group.
At the reporting end date the group had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:
The M. A. Hawe Settlement
One fixed term loan agreement has been granted by The M A Hawe Settlement, at an interest rate of 2% above the Royal Bank of Scotland base rate. The M A Hawe Settlement is a charity of which Mr M G Hawe is a trustee. Mr Hawe is also one of the trustees of the Malcolm Albert Hawe Kensington Settlement 2014 which was the principal shareholder and ultimate controlling party of the group throughout the year. The loan was repaid in full during the period. During the period the group was charged interest in respect of the loan totalling £7,797 (2020: £29,206). Accrued interest due to the settlement amounts to £Nil (2020: £171,637). At the balance sheet date the amount due to The M A Hawe Settlement was £Nil (2020: £1,110,000).
Kensington Developments (2002) Limited
During the period the group operated a non interest bearing current account with Kensington Developments (2002) Limited of which the trustees of The Malcolm Albert Hawe Kensington Settlement 2014 are the ultimate controlling party. At the balance sheet date the amount owed by Kensington Developments (2002) Limited was £442 (2020: £558 creditor).
KDL Pension Fund
During the period the group paid rent to the KDL Pension Fund of £21,580 (2020: £25,896). At the balance sheet date the amount due the KDL Pension Fund was £Nil (2020: £Nil)
The Kensington Partnership
During a previous period the group paid some expenses on behalf of the Kensington Partnership. The Kensington Partnership is comprised of two trusts for which the trustees of the Malcolm Albert Hawe Kensington Settlement 2014 and Mr D. Barrow were the settlors and beneficiaries. At the balance sheet date the amount due from The Kensington Partnership was £4,230 (2020: £4,230).
Kensington Developments Trustee Limited
On the 3rd January 2012 the company entered into a loan agreement with Kensington Developments (2002) Limited for £18,200,000 on normal commercial terms. The loan agreement as varied in 2014 states that the loan is repayable 12 months after the principal is demanded. On 4th January 2012 an agreement was made between Kensington Developments (2002) Limited and Kensington Developments Trustee Limited, where the debt owed by Kensington Developments Limited to Kensington Developments (2002) Limited was assigned from Kensington Developments (2002) Limited to Kensington Developments Trustee Limited.
Kensington Developments Trustee Limited is the corporate trustee of an Employee Benefit Trust for the benefit of the employees of Kensington Developments Limited. The terms of the original loan agreement (as varied in 2014) are not altered in any way other than the debt now being owed to Kensington Developments Trustee Limited. Interest is being charged on the loan at 0% from 1st September 2014 and total interest charged in the period was Nil (2020: Nil). Interest accrued to date was £Nil (2020: £985,331). At the balance sheet date the amount of capital due to Kensington Developments Trustee Limited was £3,800,000 (2020: £18,200,000).
Denley Barrow SIPP
During the period the group operated a non interest bearing current account with the Denley Barrow SIPP. Mr D Barrow was a director of the company during the period. The group also paid rent to Denley Barrow SIPP Fund of £9,250 (2020: £11,100) in the year. At the balance sheet date the amount due to Denley Barrow SIPP was £Nil (2020: £Nil).
Steven Barrow
During the period the group made sales totalling £236,512 (2020: £165,466) to Steven Barrow on normal commercial terms. Steven Barrow was an employee of the group until 30 June 2021 and a related party. At the balance sheet date the group was owed £Nil (2020: £27,158).
Kensington Trust
During the period the group made sales totalling £1,443 (2020: £4,779) to Kensington Trust on normal commercial terms. Kensington Trust is a related party. At the period end the company was owed £Nil (2020: £408).
The Trustees of The Malcolm Albert Hawe Kensington Settlement 2014
The Trustees of The Malcolm Albert Hawe Kensington Settlement 2014 (previously the Executors of the late Mr M A Hawe's estate), are the ultimate controlling party of the group. During the period interest has been charged to the group totalling £Nil (2019: £Nil) but all interest accrued to 31 August 2020 was waived and credited to profit. Accrued interest at the balance sheet date is £Nil (2020: £2,373,794). At the balance sheet date the principal loan amounts due to The Trustee of The Malcolm Albert Hawe Kensington Settlement 2014 was £Nil (2019: £Nil).
Kensington Developments (Queensway) Limited
During the period the group operated a non interest bearing current account with Kensington Developments (Queensway) Limited, which has common ultimate shareholders. At the balance sheet date the amount owed by Kensington Developments (Queensway) Limited was £Nil (2020: £230,969).