Company No: SC588775 (Scotland)

Contents

• Balance Sheet
• Notes to the Financial Statements

	Note	2022		2021
		£		£
Fixed assets
Tangible assets	3	4,372		5,040
Investment property	4	262,800		262,800
		267,172		267,840
Current assets
Stocks		333,292		333,292
Debtors	5	6,477		12,546
Cash at bank and in hand		2,598		3,006
		342,367		348,844
Creditors: amounts falling due within one year	6	( 4,195)		( 10,733)
Net current assets		338,172		338,111
Total assets less current liabilities		605,344		605,951
Creditors: amounts falling due after more than one year	7	( 620,729)		( 620,715)
Provision for liabilities		( 2,171)		( 5,700)
Net liabilities		( 17,556)		( 20,464)
Capital and reserves
Called-up share capital	8	1		1
Revaluation reserve		17,100		17,100
Profit and loss account		( 34,657 )		( 37,565 )
Total shareholder's deficit		( 17,556)		( 20,464)

For the financial year ending 30 September 2022 the Company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.

Director's responsibilities:

• The member has not required the Company to obtain an audit of its financial statements for the financial year in accordance with section 476;
• The director acknowledges their responsibilities for complying with the requirements of the Companies Act 2006 with respect to accounting records and the preparation of financial statements; and
• These financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime and a copy of the Profit and Loss Account has not been delivered.

The financial statements of Kingsford Residential Limited (registered number: SC588775) were approved and authorised for issue by the Director on 15 April 2023. They were signed on its behalf by:

Mr J A Watts Director

1. Accounting policies

The principal accounting policies are summarised below. They have all been applied consistently throughout the financial year and to the preceding financial year, unless otherwise stated.

General information and basis of accounting

Kingsford Residential Limited (the Company) is a private company, limited by shares, incorporated in the United Kingdom under the Companies Act 2006 and is registered in Scotland. The address of the Company's registered office is 14 Albany Street, Edinburgh, EH1 3QB, United Kingdom.

The financial statements have been prepared under the historical cost convention, modified to include investment properties at fair value, and in accordance with Section 1A of Financial Reporting Standard 102 (FRS 102) ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland’ issued by the Financial Reporting Council and the requirements of the Companies Act 2006 as applicable to companies subject to the small companies regime.

The financial statements are presented in pounds sterling which is the functional currency of the company and rounded to the nearest £.

Going concern

At the balance sheet date the company had net liabilities of £21,085 however had net current assets of £338,172. The market value of the properties held as stock exceed the cost by £351,708 and therefore provide sufficient cover for the bank debt that the company has. The director has assessed the forecasted cashflow for the forthcoming 12 months and believes the company to have sufficient reserves to meet the company's debts as they fall due and on the basis believe the preparation of the accounts on a going concern basis is appropriate.

Turnover

Turnover represents amounts receivable for rental income.

Taxation

Current tax
Current tax is provided at amounts expected to be paid (or recoverable) using the tax rates and laws that have been enacted or substantively enacted at the Balance Sheet date.

Deferred tax
Deferred tax arises as a result of including items of income and expenditure in taxation computations in periods different from those in which they are included in the Company's financial statements. Deferred tax is provided in full on timing differences which result in an obligation to pay more or less tax at a future date, at the average tax rates that are expected to apply when the timing differences reverse, based on current tax rates and laws. Deferred tax assets and liabilities are not discounted.

The carrying amount of deferred tax assets are reviewed at each reporting date and a valuation allowance is set up against deferred tax assets so that the net carrying amount equals the highest amount that is more likely than not to be recovered based on current or future taxable profit.

Tangible fixed assets

Tangible fixed assets are stated at cost or valuation, net of depreciation and any provision for impairment. Depreciation is provided on all tangible fixed assets, other than investment property and freehold land, at rates calculated to write off the cost or valuation, less estimated residual value, of each asset on a straight-line or reducing balance basis over its expected useful life, as follows:

Fixtures and fittings

5 years straight line

Residual value represents the estimated amount which would currently be obtained from disposal of an asset, after deducting estimated costs of disposal, if the asset were already of the age and in the condition expected at the end of its useful life.

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 credited or charged to profit or loss.

Impairment of assets

Assets, other than those measured at fair value, are assessed for indicators of impairment at each Balance Sheet date. If there is objective evidence of impairment, an impairment loss is recognised in the Profit and Loss Account as described below.

Non-financial assets
At each balance sheet date, the company reviews 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). The recoverable amount of an asset is the higher of its fair value less costs to sell and its 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.

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. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.

Investment property

Investment property, which is property held to earn rentals and/or for capital appreciation, is initially recognised at cost, which includes the purchase cost and any directly attributable expenditure. Subsequently it is measured at fair value at the reporting end date. Changes in fair value are recognised in profit or loss.

Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to sell, which is equivalent to the net realisable value.

Stocks held for distribution at no or nominal consideration are measured at the lower of replacement cost and cost, adjusted where applicable for any loss of service potential.

At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.

Cash and cash equivalents

Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

Financial instruments

Financial assets and financial liabilities are recognised when the Company becomes a party to the contractual provisions of the instrument.

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.

Financial assets and liabilities are only offset in the Balance Sheet when, and only when there exists a legally enforceable right to set off the recognised amounts and the Company intends either to settle on a net basis, or to realise the asset and settle the liability simultaneously.

Basic financial assets
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 when and only when the contractual rights to the cash flows from the financial asset expire or are settled, or the Company transfers to another party substantially all of the risks and rewards of ownership of the financial asset, or the Company, despite having retained some, but not all, significant risks and rewards of ownership, has transferred control of the asset to another party.

Basic financial liabilities
Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, 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 company’s contractual obligations expire or are discharged or cancelled.

Equity instruments
Equity instruments issued by the Company are recorded at the fair value of cash or other resources received or receivable, net of direct issue costs. If payment is deferred and the time value of money is material, the initial measurement is on a present value basis. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the Company.

2. Employees

	2022		2021
	Number		Number
Monthly average number of persons employed by the Company during the year, including the director	1		1

3. Tangible assets

	Fixtures and fittings		Total
	£		£
Cost
At 01 October 2021	9,532		9,532
Additions	1,316		1,316
At 30 September 2022	10,848		10,848
Accumulated depreciation
At 01 October 2021	4,492		4,492
Charge for the financial year	1,984		1,984
At 30 September 2022	6,476		6,476
Net book value
At 30 September 2022	4,372		4,372
At 30 September 2021	5,040		5,040

4. Investment property

	Investment property
	£
Valuation
As at 01 October 2021	262,800
As at 30 September 2022	262,800

Valuation

Investment property comprises one property. The valuation of investment property was made as at 30 September 2022 by the director on an open market basis. No depreciation is provided in respect of the property.

5. Debtors

	2022		2021
	£		£
Trade debtors	5,977		9,974
Other debtors	500		2,572
	6,477		12,546

6. Creditors: amounts falling due within one year

	2022		2021
	£		£
Trade creditors	1,322		1,804
Amounts owed to associates	93		0
Other creditors	2,780		8,929
	4,195		10,733

7. Creditors: amounts falling due after more than one year

	2022		2021
	£		£
Other creditors	620,729		620,715

Bank loans of £620,729 (2021: £620,715) are secured over the property and stock of the company.

Amounts repayable after more than 5 years are included in creditors falling due over one year:

	2022		2021
	£		£
Other creditors	620,729		620,715

8. Called-up share capital

	2022		2021
	£		£
Allotted, called-up and fully-paid
100 Ordinary shares of £ 0.01 each	1		1

9. Related party transactions

During the period, expenses were paid for and transfers took place between Kingsford Residential Limited and Kingsford Estates Limited, a company under common control.

At the end of the period Kingsford Residential Limited owed Kingsford Estates Limited £50 (2021: £46).

During the period Kingsford Residential paid Kingsford Estates Limited £1,217 (2021: £492) in respect of management fees.

Included within trade debtors is an amount of £13 (2021: £Nil) due from Alex Watts, a director of the company.

10. Ultimate controlling party

Parent Company:

Kingsford Estates Limited

14 Albany Street Edinburgh EH1 3QB