ACCOUNTS - Final Accounts preparation

An analysis of turnover by class of business is as follows:

7 months

31 December

MCL KS PROPCO LIMITED - Company Information

Caseware UK (AP4) 2020.0.247 2020.0.247 truetruetruetruetrue2020-01-01falseNo description of principal activity22true 12062086 2020-01-01 2020-12-31 12062086 2019-06-20 2019-12-31 12062086 2020-12-31 12062086 2019-12-31 12062086 2019-06-20 12062086 1 2020-01-01 2020-12-31 12062086 d:CompanySecretary1 2020-01-01 2020-12-31 12062086 d:Director1 2020-01-01 2020-12-31 12062086 d:Director2 2020-01-01 2020-12-31 12062086 d:RegisteredOffice 2020-01-01 2020-12-31 12062086 c:Buildings 2020-01-01 2020-12-31 12062086 c:Buildings 2020-12-31 12062086 c:Buildings 2019-12-31 12062086 c:Buildings c:OwnedOrFreeholdAssets 2020-01-01 2020-12-31 12062086 c:CurrentFinancialInstruments 2020-12-31 12062086 c:CurrentFinancialInstruments 2019-12-31 12062086 c:Non-currentFinancialInstruments 2020-12-31 12062086 c:Non-currentFinancialInstruments 2019-12-31 12062086 c:CurrentFinancialInstruments c:WithinOneYear 2020-12-31 12062086 c:CurrentFinancialInstruments c:WithinOneYear 2019-12-31 12062086 c:Non-currentFinancialInstruments c:AfterOneYear 2020-12-31 12062086 c:Non-currentFinancialInstruments c:AfterOneYear 2019-12-31 12062086 c:Non-currentFinancialInstruments c:BetweenOneTwoYears 2020-12-31 12062086 c:Non-currentFinancialInstruments c:BetweenOneTwoYears 2019-12-31 12062086 c:Non-currentFinancialInstruments c:BetweenTwoFiveYears 2020-12-31 12062086 c:Non-currentFinancialInstruments c:BetweenTwoFiveYears 2019-12-31 12062086 c:ReportableOperatingSegment1 2020-01-01 2020-12-31 12062086 c:ReportableOperatingSegment1 2019-06-20 2019-12-31 12062086 c:UKTax 2020-01-01 2020-12-31 12062086 c:UKTax 2019-06-20 2019-12-31 12062086 c:ShareCapital 2020-01-01 2020-12-31 12062086 c:ShareCapital 2020-12-31 12062086 c:ShareCapital 2019-06-20 2019-12-31 12062086 c:ShareCapital 2019-12-31 12062086 c:ShareCapital 2019-06-20 12062086 c:RetainedEarningsAccumulatedLosses 2020-01-01 2020-12-31 12062086 c:RetainedEarningsAccumulatedLosses 2020-12-31 12062086 c:RetainedEarningsAccumulatedLosses 2019-06-20 2019-12-31 12062086 c:RetainedEarningsAccumulatedLosses 2019-12-31 12062086 c:RetainedEarningsAccumulatedLosses 2019-06-20 12062086 d:OrdinaryShareClass1 2020-01-01 2020-12-31 12062086 d:OrdinaryShareClass1 2020-12-31 12062086 d:OrdinaryShareClass1 2019-12-31 12062086 d:FRS101 2020-01-01 2020-12-31 12062086 d:Audited 2020-01-01 2020-12-31 12062086 d:FullAccounts 2020-01-01 2020-12-31 12062086 d:PrivateLimitedCompanyLtd 2020-01-01 2020-12-31 iso4217:GBP xbrli:shares xbrli:pure

Registered number: 12062086

MCL KS PropCo Ltd
(Formerly THG KS PropCo Ltd)

Directors' Report and Financial Statements

For the Year Ended 31 December 2020

MCL KS PropCo Ltd

Company Information

Directors	J A Gallemore
	J P Pochin


Company secretary	J P Pochin


Registered number	12062086


Registered office	5th Floor Voyager House
	Chicago Avenue
	Manchester Airport
	Manchester
	M90 3DQ


Independent auditors	Hurst Accountants Limited
	Chartered Accountants & Statutory Auditors
	Lancashire Gate
	21 Tiviot Dale
	Stockport
	SK1 1TD

MCL KS PropCo Ltd

Contents

	Page
Directors' Report	1 - 2
Independent Auditors' Report	3 - 7
Statement of Comprehensive Income	8
Statement of Financial Position	9
Statement of Changes in Equity	10
Notes to the Financial Statements	11 - 20

MCL KS PropCo Ltd

Directors' Report

For the Year Ended 31 December 2020

The directors present their report and the financial statements for the year ended 31 December 2020.

Directors' responsibilities statement

The directors are responsible for preparing the Directors' Report and the financial statements in accordance with applicable law and regulations.

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 applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including Financial Reporting Standard 101 ‘Reduced Disclosure Framework’. 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;

∙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 to 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.

Directors

The directors who served during the year were:

J A Gallemore

J P Pochin

Disclosure of information to auditors

Each of the persons who are directors at the time when this Directors' Report is approved has confirmed that:

∙so far as the director is aware, there is no relevant audit information of which the Company's auditors are unaware, and

∙the director has taken all the steps that ought to have been taken as a director in order to be aware of any relevant audit information and to establish that the Company's auditors are aware of that information.

Going concern
In March 2020, the World Health Organisation declared Coronavirus (COVID-19) as a worldwide pandemic. The directors have reviewed the current and projected financial position of the Company, making reasonable assumptions about trading performance. On the basis of the review, the Directors have reasonable expectation that the Company has adequate resources to continue as a going concern for a period of at least 12 months from the date of approval of the financial statements. Accordingly, they continue to adopt the going concern basis in preparing the Annual Report and Financial Statements.

Page 1

MCL KS PropCo Ltd

Directors' Report (continued)

For the Year Ended 31 December 2020

Post balance sheet events

The Group to which the Company belongs has refinanced with new lenders post year end. The Company is party to the fixed and floating charge of these liabilities.

Auditors

The auditors, Hurst Accountants Limited, were appointed in the year and will be proposed for reappointment in accordance with section 485 of the Companies Act 2006.

Small companies note

In preparing this report, the directors have taken advantage of the small companies exemptions provided by section 415A of the Companies Act 2006.

This report was approved by the board and signed on its behalf.

J A Gallemore

Director

Date: 17 September 2021

Page 2

MCL KS PropCo Ltd

Independent Auditors' Report to the Members of MCL KS PropCo Ltd

Opinion

We have audited the financial statements of MCL KS PropCo Ltd (the 'Company') for the year ended 31 December 2020, which comprise the Statement of Comprehensive Income, the Statement of Financial Position, the Statement of Changes in Equity and the related notes, including a summary of 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 101 ‘Reduced Disclosure Framework’ (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

∙give a true and fair view of the state of the Company's affairs as at 31 December 2020 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.

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 Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the Company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the United Kingdom, including the Financial Reporting Council'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 directors' 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 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 directors 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 Auditors' Report thereon. The directors are 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.

Page 3

MCL KS PropCo Ltd

Independent Auditors' Report to the Members of MCL KS PropCo Ltd (continued)

Opinion on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of the audit:

∙the information given in the Directors' Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and

∙the Directors' Report has been prepared in accordance with applicable legal requirements.

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the Company and its environment obtained in the course of the audit, we have not identified material misstatements in the Directors' 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, 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; or

∙the directors were not entitled to prepare the financial statements in accordance with the small companies regime and take advantage of the small companies' exemptions in preparing the Directors' Report and from the requirement to prepare a Strategic Report.

Responsibilities of directors

As explained more fully in the Directors' Responsibilities Statement set out on page 1, the directors are 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 directors determine 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 directors are responsible for assessing the 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 directors either intend to liquidate the Company or to cease operations, or have no realistic alternative but to do so.

Page 4

MCL KS PropCo Ltd

Independent Auditors' Report to the Members of MCL KS PropCo Ltd (continued)

Auditors' responsibilities for the audit of the financial statements

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 Auditors' 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 extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

We identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and then design and perform audit procedures responsive to those risks, including obtaining audit evidence that is sufficient and appropriate to provide a basis for our opinion.
Identifying and assessing potential risks related to irregularities
In identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, we considered the following:
• The nature of the industry and sector in which the company operates; the control environment and business performance including key drivers for directors' remuneration, bonus levels and performance targets.
• The outcome of enquiries of local management and parent company management, including whether management as aware of any instances of non-compliance with laws and regulations, and whether management had knowledge of any actual, suspected, or alleged fraud.
• Supporting documentation relating to the Company's policies and procedures for:
- Identifying, evaluating, and complying with laws and regulations
- Detecting and responding to the risks of fraud
• The internal controls established to mitigate risks related to fraud or non-compliance with laws and regulations.
• The outcome of discussions amongst the engagement team regarding how and where fraud might occur in the financial statements and any potential indicators of fraud.

• The legal and regulatory framework in which the Company operates, particularly those laws and regulations which have a direct effect on the financial statements, such as the Companies Act 2006, pensions and tax legislation, or which had a fundamental effect on the operations of the Company, including General Data Protection requirements, and Anti-bribery and Corruption.

Page 5

MCL KS PropCo Ltd

Independent Auditors' Report to the Members of MCL KS PropCo Ltd (continued)

Audit response to risks identified
Our procedures to respond to the risks identified included the following:
• Reviewing the financial statements disclosures and testing to supporting documentation to assess compliance with the provisions of those relevant laws and regulations which have a direct effect on the financial statements.
• Discussions with management, including consideration of known or suspected instances of non-compliance with laws and regulations and fraud.
• Evaluation and testing of the operating effectiveness of management’s controls designed to prevent and detect irregularities.
• Enquiring of management about any actual and potential litigation and claims.
• Performing analytical procedures to identify any unusual or unexpected relationships which may indicate risks of material misstatement due to fraud.
We have also considered the risk of fraud through management override of controls by:
• Testing the appropriateness of journal entries and other adjustments.
• Challenging assumptions made by management in their significant accounting estimates, and assessing whether the judgements made in making accounting estimates are indicative of a potential bias; and
• Evaluating the business rationale of any significant transactions that are unusual or outside the normal course of business.
We also communicated relevant identified laws and regulations and potential fraud risks to all engagement team members and remained alert to any indications of fraud or non-compliance with laws and regulations throughout the audit.

There are inherent limitations in the audit procedures described above, and the further removed non-compliance with laws and regulations are from the events and transactions reflected in the financial statements, the less likely we would become aware of them. Also, the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentations, or through collusion.

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our Auditors' Report.

Page 6

MCL KS PropCo Ltd

Independent Auditors' Report to the Members of MCL KS PropCo Ltd (continued)

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 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.

Helen Besant-Roberts (Senior Statutory Auditor)

for and on behalf of

Hurst Accountants Limited

Chartered Accountants

Statutory Auditors

Lancashire Gate

21 Tiviot Dale

Stockport

SK1 1TD

17 September 2021

Page 7

MCL KS PropCo Ltd

Statement of Comprehensive Income

For the Year Ended 31 December 2020

	31 December	7 months 31 December
	2020	2019
Note	£000	£000


Turnover	4	750	41
Administrative expenses		(210)	(75)
Operating profit/(loss)	5	540	(34)
Interest payable and expenses	8	(374)	(17)
Profit/(loss) before tax		166	(51)
Tax on profit/(loss)	9	(75)	-
Profit/(loss) for the financial year		91	(51)

There was no other comprehensive income for 2020 (2019: £nil)..

The notes on pages 11 to 20 form part of these financial statements.

Page 8

MCL KS PropCo Ltd

Registered number: 12062086

Statement of Financial Position

As at 31 December 2020

		2020		2019
Note		£000		£000


Fixed assets
Investment property	10		7,032		7,059
Current assets
Debtors: amounts falling due within one year	11	11,152		10,636
Creditors: amounts falling due within one year	12	(2,294)		(1,703)
Net current assets			8,858		8,933
Total assets less current liabilities			15,890		15,992
Creditors: amounts falling due after more than one year	13		(8,783)		(8,976)
Net assets			7,107		7,016

Capital and reserves
Called up share capital	16	7,067	7,067
Profit and loss account	17	40	(51)
		7,107	7,016

The financial statements were approved and authorised for issue by the board and were signed on its behalf by:

J A Gallemore

Director

Date: 17 September 2021

The notes on pages 11 to 20 form part of these financial statements.

Page 9

MCL KS PropCo Ltd

Statement of Changes in Equity

For the Year Ended 31 December 2020

	Called up share capital	Profit and loss account	Total equity
	£000	£000	£000
At 1 January 2020	7,067	(51)	7,016

Profit for the year	-	91	91
Total comprehensive income for the year	-	91	91
At 31 December 2020	7,067	40	7,107

Statement of Changes in Equity

For the 7 Month Period Ended 31 December 2019

	Called up share capital	Profit and loss account	Total equity
	£000	£000	£000
At 20 June 2019	7,067	-	7,067

Loss for the period	-	(51)	(51)
Total comprehensive income for the period	-	(51)	(51)
At 31 December 2019	7,067	(51)	7,016

The notes on pages 11 to 20 form part of these financial statements.

Page 10

MCL KS PropCo Ltd

Notes to the Financial Statements

For the Year Ended 31 December 2020

1.	General information

MCL KS PropCo Limited is a private company limited by shares incorporated in England and Wales, company number 12062086. The address of the registered office is 5th Floor Voyager House, Chicago Avenue, Manchester Airport, Manchester, United Kingdom, M90 3DQ.

2.Accounting policies

2.1

Basis of preparation of financial statements

The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Financial Reporting Standard 101 'Reduced Disclosure Framework' and the Companies Act 2006.

The preparation of financial statements in compliance with FRS 101 requires the use of certain critical accounting estimates. It also requires management to exercise judgement in applying the Company's accounting policies (see note 3).

The following principal accounting policies have been applied:

2.2

Financial reporting standard 101 - reduced disclosure exemptions

The company has taken advantage of the following disclosure exemptions under FRS 101:

∙the requirements of IFRS 7 Financial Instruments: Disclosures

∙the requirements of IAS 7 Statement of Cash Flows

∙the requirements of paragraphs 30 and 31 of IAS 8 Accounting Policies, Changes in Accounting Estimates and Errors

∙the requirements of paragraph 17 and 18A of IAS 24 Related Party Disclosures

∙the requirements in IAS 24 Related Party Disclosures to disclose related party transactions entered into between two or more members of a group, provided that any subsidiary which is a party to the transaction is wholly owned by such a member

2.3

Going concern

In March 2020, the World Health Organisation declared Coronavirus (COVID-19) as a worldwide pandemic. The directors have reviewed the current and projected financial position of the Company, making reasonable assumptions about trading performance. On the basis of the review, the Directors have reasonable expectation that the Company has adequate resources to continue as a going concern for a period of at least 12 months from the date of approval of the financial statements. Accordingly, they continue to adopt the going concern basis in preparing the Annual Report and Financial Statements.

Page 11

MCL KS PropCo Ltd

Notes to the Financial Statements

For the Year Ended 31 December 2020

2.Accounting policies (continued)

2.4

Revenue

Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Company and the revenue can be reliably measured. Revenue is measured as the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. The following criteria must also be met before revenue is recognised:

Revenue represents income from property rental and is accounted for on an accruals basis. Amounts are invoiced in advance.
Rental income from operating leases is credited to the profit or loss on a straight line basis over the lease term.
Amounts paid and payable as an incentive to sign an operating lease are recognised as a reduction to income over the lease term on a straight line basis, unless another systematic basis representative of the time patter over which the lessor's benefit from the leased asset is diminished.

2.5

Finance costs

Finance costs are charged to profit or loss over the term of the debt using the effective interest method so that the amount charged is at a constant rate on the carrying amount. Issue costs are initially recognised as a reduction in the proceeds of the associated capital instrument.

2.6

Taxation

Tax is recognised in profit or loss except that a charge attributable to an item of income and expense recognised as other comprehensive income or to an item recognised directly in equity is also recognised in other comprehensive income or directly in equity respectively.

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

2.7

Investment property

Investment Property, which is property held to earn rentals for capital appreciation is recognised on the statement of financial position using the cost model and is stated at cost less accumulated depreciation and any accumulated impairment losses. Investment property includes the interior fixtures and fittings.
Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, using the straight line method.
Depreciation is provided on the following basis:
Freehold property 2% Straight line
Fixtures and fittings 20% Straight line

2.8

Debtors

Short term debtors are measured at transaction price, less any impairment. Loans receivable are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method, less any impairment.

Page 12

MCL KS PropCo Ltd

Notes to the Financial Statements

For the Year Ended 31 December 2020

2.Accounting policies (continued)

2.9

Creditors

Creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers.

Creditors are recognised initially at fair value and subsequently measured at amortised cost using the effective interest method.

2.10

Financial instruments

The Company recognises financial instruments when it becomes a party to the contractual arrangements of the instrument. Financial instruments are de-recognised when they are discharged or when the contractual terms expire. The Company's accounting policies in respect of financial instruments transactions are explained below:
Financial assets
All recognised financial assets are measured at amortised cost.
Impairment of financial assets
The Company always recognises lifetime expected credit losses ("ECL") for trade receivables and amounts due on contracts with customers. The expected credit losses on these financial assets are estimated based on the Company's historical credit loss experience, adjusted for factors that are specific to the debtors, general economic conditions and an assessment of both the current as well as the forecast direction of conditions at the reporting date, including time value of money where appropriate. Lifetime ECL represents the expected credit losses that will result from all possible default events over the expected life of a financial instrument.
Financial liabilities
Financial liabilities within the scope of IFRS 9 are classified as financial liabilities at amortised cost. The Company has no financial liabilities at fair value through profit and loss and has no derivatives designated as hedging instruments.

2.11

Share capital

Financial instruments issued by the company are classified as equity only to the extent that they do not meet the definition of a financial liability or financial asset.
The company’s ordinary shares are classified as equity instruments.

Page 13

MCL KS PropCo Ltd

Notes to the Financial Statements

For the Year Ended 31 December 2020

3.	Judgements in applying accounting policies and key sources of estimation uncertainty

Preparation of the financial statements requires management to make significant judgements, estimates and assumptions that affect the amount reported for assets and liabilities as at the balance sheet date. The nature of estimation means that the actual outcomes could differ from those estimates. The most significant effect on the amount recognised in the financial statements.
Investment Property
Management exercises judgement in estimating the useful life of investment property and its interior fixtures and fittings. Management estimates the useful life of investment property to be 50 years and for interior fixtures and fittings to be 5 years. Depreciation is recognised on a straight line basis and the charge recognised in the profit or loss account for the period is £154k.

	Rental income	750	41

All turnover arose within the United Kingdom.

Depreciation

154

6.	Auditors' remuneration

	The Company has taken advantage of the exemption not to disclose amounts paid for non audit services as these are disclosed in the group accounts of the parent Company.
	Auditors remuneration is borne by the ultimate parent company, Moulding Capital Limited, and the total fee is £50k.

Page 14

MCL KS PropCo Ltd

Notes to the Financial Statements

For the Year Ended 31 December 2020

Employees

The average monthly number of employees, including the directors, during the year was as follows:

	31 December	7 months 31 December
	2020	2019
	No.	No.

Directors	2	2

Directors are not remunerated by MCL KS PropCo Limited.

Bank interest payable

374

Corporation tax
Current tax on profits for the year	75	-

Total current tax	75	-

Page 15

MCL KS PropCo Ltd

Notes to the Financial Statements

For the Year Ended 31 December 2020

9.Taxation (continued)

Profit/(loss) on ordinary activities before tax

166

(51)

Profit/(loss) on ordinary activities multiplied by standard rate of corporation tax in the UK of 19% (2019 -19%)	32	(10)
Effects of:
Expenses not deductible for tax purposes	100	-
Utilisation of tax losses	(8)	-
Group relief	(49)	10
Total tax charge for the year/period	75	-

Factors that may affect future tax charges

There were no factors that may affect future tax charges.

Page 16

MCL KS PropCo Ltd

Notes to the Financial Statements

For the Year Ended 31 December 2020

10.	Investment property

		Freehold property
		£000
	Cost or valuation
	At 1 January 2020	7,067
	Additions	127
	At 31 December 2020	7,194
	Depreciation
	At 1 January 2020	8
	Charge for the year	154
	At 31 December 2020	162
	Net book value
	At 31 December 2020	7,032
	At 31 December 2019	7,059

The investment properties were valued at 30 June 2020 by external independent qualified valuers, Savills (UK) Limited, with recent experience valuing investment properties in the location held by the company. The valuations were undertaken in accordance with the Royal Institution of Chartered Surveyors' Appraisal and Valuation Manual. The investment properties were valued at £14,000k. The directors are of the opinion that market value at 30 June 2020 is not materially different to the market value at the balance sheet date.
During the period £750k was recognised in the statement of comprehensive income in relation to rental income from the investment properties (note 4). Direct operating expenses, including repairs and maintenance, arising from investment property that generated rental income amounted to £Nil. Direct operating expenses, including repairs and maintenance, arising from investment property that did not generate rental income during the year amounted to £Nil.
See note 15 for the undiscounted rent receivables for investment properties under operating leases.

Page 17

MCL KS PropCo Ltd

Notes to the Financial Statements

For the Year Ended 31 December 2020

11.

Debtors

					2020	2019
					£000	£000


Trade debtors	203	-
Amounts owed by group undertakings	10,949	9,169
Other debtors	-	1,467
	11,152	10,636

All amounts shown under debtors fall due for payment within one year.

12.	Creditors: Amounts falling due within one year
		2020	2019
		£000	£000

Bank loans	194	211
Amounts owed to group undertakings	1,628	1,480
Corporation tax	75	-
Other taxation and social security	128	12
Accruals and deferred income	269	-
	2,294	1,703

Bank loans are secured by fixed and floating charges against assets to which they relate.
Amounts owed to Group undertakings are unsecured, non-interest bearing and repayable on demand.

13.	Creditors: Amounts falling due after more than one year
		2020	2019
		£000	£000

	Bank loans	8,783	8,976

Bank loans are secured by fixed and floating charges against assets to which they relate.
The Group to which the Company belongs has refinanced with new lenders post year end.

Page 18

MCL KS PropCo Ltd

Notes to the Financial Statements

For the Year Ended 31 December 2020

Amounts falling due within one year
Bank loans	194	211
Amounts falling due 1-2 years
Bank loans	194	211
Amounts falling due 2-5 years
Bank loans	8,589	8,765

	8,977	9,187

The bank loan attracts an interest rate of LIBOR plus 3.5%.
The Group to which the Company belongs has refinanced with new lenders post year end.

15.

Leases

	Company as a lessor
	The Company has entered lease agreements as a lessor that are considered to be operating leases.

Operating leases
The following table summarises the undiscounted lease payments receivable after the reporting date.

	2020	2019
	£000	£000

Not later than one year	750	750
Between one and two years	750	750
Between two and three years	750	750
Between three and four years	750	750
Between four and five years	750	750
Later than five years	14,250	15,000
Total undiscounted lease payments receivable	18,000	18,750

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MCL KS PropCo Ltd

Notes to the Financial Statements

For the Year Ended 31 December 2020

16.	Share capital
		2020	2019
		£000	£000

Allotted, called up and fully paid

7,066,937 (2019 -7,066,937) Ordinary shares of £1.00 each	7,067	7,067

17.

Reserves

Profit and loss account

Comprises the retained profits and losses for the period.

18.

Related party transactions

The Company has taken advantage of the exemption under paragraph 8(k) of FRS 101 not to disclose transactions with fellow wholly owned subsidiaries.
The Company has taken advantage of the exemption under paragraph 8(j) of FRS 101 not to disclose transactions with key management personnel.
MCL KS PropCo Limited received rental income of £750k from a company with a common director. Amounts owed from a company with a common director at the year end totalled £203k.

19.	Post balance sheet events

The Group to which the Company belongs has refinanced with new lenders post year end. The Company is party to the fixed and floating charge of these liabilities.

20.	Controlling party

At the start of the period the Company's ultimate parent was THG Plc (formerly THG Holdings Plc). On 11 September 2020, the entire share capital of Moulding Capital Limited was transferred to Moulding Group Limited, a company registered in Guernsey, registered number 1-67166.
The company's immediate parent company is THG Property Hotel & Leisure Holdings Limited, a company registered in England and Wales, company number 12311243.
Moulding Capital Limited, a subsidiary of Moulding Group Limited, is the parent undertaking of the smallest and largest group of undertakings to consolidate these financial statements as at 31 December 2020. The consolidated financial statements of Moulding Capital Limited are available from 5th Floor, Voyager House, Chicago Avenue, Manchester Airport, Manchester, England, M90 3DQ.

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