PALLADIAN_(KENLEY)_LIMITE - Accounts

The director of the company has elected not to include a copy of the profit and loss account within the financial statements.true

These financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime.

Palladian (Kenley) Limited is a private company limited by shares incorporated in England and Wales. The registered office is The Old House, 64 The Avenue, Egham, TW20 9AD.

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 as applicable to companies subject to the small companies regime. The disclosure requirements of section 1A of FRS 102 have been applied other than where additional disclosure is required to show a true and fair view.

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, modified to include investment properties at fair value. The principal accounting policies adopted are set out below.

The director is confident in the long term profitability of the company and has no reason to doubt the intention of funders and investors to continue to provide financial support to enable the company to meet its obligations as they fall due. Accordingly the financial statements have been prepared on a going concern basis.true

Turnover represents amounts attributable to the year, exclusive of Value Added Tax, in respect of rents receivable for the period.

Freehold investment property, which represents a completed care home held for use in an operating lease, is included in the balance sheet at its open market value and is not depreciated.

Cash at bank and in hand are basic financial assets and include cash in hand and deposits held at call with banks.

The company 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 company's balance sheet when the company becomes party to the contractual provisions of the instrument.

Financial assets and liabilities are offset, with 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 derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the company 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 company after deducting all of its liabilities.

Basic financial liabilities, including creditors, bank loans and loans from fellow group companies, 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.

Financial liabilities are derecognised when the company’s contractual obligations expire or are discharged or cancelled.

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 company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.

Full provision is made for deferred tax assets and liabilities arising from all timing differences between the recognition of gains and losses in the financial statements and recognition in the tax computation, other than in respect of permanent differences arising from non-depreciation of investment property.

A net deferred tax asset is recognised only if it can be regarded as more likely than not that there will be suitable taxable profits from which the future reversal of the underlying timing differences can be deducted.

Deferred tax assets and liabilities are calculated at the tax rates that have been enacted or substantively enacted at the balance sheet date.

Deferred tax assets and liabilities are not discounted.

During the current and preceding accounting periods, the average monthly number of staff employed by the company was nil.

The valuation of investment property was made as at 4 November 2020 by Sophia Sham MRICS and Henry Harris MRICS of Cushman & Wakefield on an open market for existing use basis with subsequent additions recorded at cost pending external valuation. It is the opinion of the director that the carrying value stated above remains a fair reflection of the market value of the property at the balance sheet date.

The bank loan is secured by way of a debenture incorporating a fixed and floating charge covering the property and undertaking of the company. Loan repayments are due to commence by quarterly instalments of £123,375 in June 2023 with a bullet repayment in August 2026.

The following are the major deferred tax liabilities and assets recognised by the company and movements thereon:

Included within retained earnings is a non distributable amount of £4,562,891 (2021: £4,961,703) relating to the revaluation of investment property, stated net of the related deferred tax liability.

As the income statement has been omitted from the filing copy of the financial statements, the following information in relation to the audit report on the statutory financial statements is provided in accordance with s444(5B) of the Companies Act 2006:

The auditor's report was unqualified.

The initial activities of the company are funded by way of loans from its immediate parent undertaking, Kenley Care Holdings Limited.

At the balance sheet date, the company owed £1,361,009 (2021: £2,318,124) to Kenley Care Holdings Limited. The balance is interest free and repayable on demand, however in view of the longer term nature of advances to the company by Kenley Care Holdings Limited it has been classified as falling due after more than one year.

Notional interest in the sum of £183,000 (2021: £146,000) has been recognised on the amounts due to Kenley Care Holdings Limited as required by FRS 102, and is presented in other creditors falling due after more than one year. The settlement of such interest is subordinated to advances from external funders.

At the balance sheet date the company was owed £157,174 by (2021: owed £6,192 to) Kenley Care Services Limited, a fellow subsidiary of Kenley Care Holdings Limited. The balance is interest free and repayable on demand and has been classified as falling due within one year.