Kestrel Equities Limited - Accounts to registrar (filleted) - small 23.2.5

REGISTERED NUMBER: SC065363

KESTREL EQUITIES LIMITED

UNAUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2023

Page

Balance Sheet

1

Notes to the Financial Statements

3

FIXED ASSETS

Tangible assets

4

3,517

2,449

Investments

5

732,289

732,289

Investment property

6

5,297,500

5,357,500

6,033,306

6,092,238

CURRENT ASSETS

Debtors

7

162,239

123,113

Cash at bank

133,231

110,817

295,470

233,930

CREDITORS

Amounts falling due within one year

8

2,505,424

2,352,919

NET CURRENT LIABILITIES

(2,209,954

)

(2,118,989

)

TOTAL ASSETS LESS CURRENT LIABILITIES

3,823,352

3,973,249

CREDITORS

Amounts falling due after more than one year

9

2,043,564

2,120,491

NET ASSETS

1,779,788

1,852,758

CAPITAL AND RESERVES

Called up share capital

286,002

286,002

Non-distributable reserve

796,306

856,306

Retained earnings

697,480

710,450

1,779,788

1,852,758

The company is entitled to exemption from audit under Section 477 of the Companies Act 2006 for the year ended 30 June 2023.

The members have not required the company to obtain an audit of its financial statements for the year ended 30 June 2023 in accordance with Section 476 of the Companies Act 2006.

The directors acknowledge their responsibilities for:

(a)	ensuring that the company keeps accounting records which comply with Sections 386 and 387 of the Companies Act 2006 and

(b)

preparing financial statements which give a true and fair view of the state of affairs of the company as at the end of each financial year and of its profit or loss for each financial year in accordance with the requirements of Sections 394 and 395 and which otherwise comply with the requirements of the Companies Act 2006 relating to financial statements, so far as applicable to the company.

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

In accordance with Section 444 of the Companies Act 2006, the Profit and Loss Account has not been delivered.

The financial statements were approved by the Board of Directors and authorised for issue on 18 March 2024 and were signed on its behalf by:

A R Wolfson - Director

1.	STATUTORY INFORMATION

Kestrel Equities Limited is a private company, limited by shares, registered in Scotland. The registered office is 5th Floor, 19 Waterloo Street, Glasgow, G2 6BQ.

The financial statements are presented in Sterling (£).

2.	ACCOUNTING POLICIES

Basis of preparing the financial statements

These financial statements have been prepared in accordance with the provisions of Section 1A "Small Entities" of Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" and the Companies Act 2006. There were no material departures from this standard. The financial statements have been prepared under the historical cost convention as modified by the revaluation of certain fixed assets.

Preparation of consolidated financial statements

The financial statements contain information about Kestrel Equities Limited as an individual company and do not contain consolidated financial information as the parent of a group. The company is exempt under Section 399(2A) of the Companies Act 2006 from the requirements to prepare consolidated financial statements.

Judgements

The company considers on an annual basis the judgements that are made by management when applying its significant accounting policies that would have the most significant effect on amounts that are recognised in the financial statements. The directors consider there are no such significant judgements.

Provisions

Provisions are recognised when the company has a legal or constructive obligation at the reporting date as a result of a past event, it is probable that the company will be required to settle the obligation and the amount of the obligation can be reliably estimated. Provisions are recognised at the best estimate of the amount required to settle the obligation at the reporting date.

Turnover

Turnover represents the total invoice value, excluding value added tax, of rents and commissions receivable during the year. The company's policy is to recognise income in accordance with lease agreements.

Tangible fixed assets

Depreciation is provided at the following annual rates in order to write off the cost less estimated residual value of each asset over their estimated useful life.

Plant and machinery etc - 25% on reducing balance, 33.33% on cost and 10% on reducing balance.

Tangible fixed assets are included at cost less accumulated depreciation and accumulated impairment losses.

Impairment of non-financial assets

At each reporting date non-financial assets not carried at fair value, like plant and equipment, are reviewed to determine whether there is an indication that an asset may be impaired. If there is an indication of possible impairment, the recoverable amount which is the higher of value in use and the fair value less cost to sell, is estimated and compared with the carrying amount. If the recoverable amount is lower, the carrying amount of the asset is reduced to its recoverable amount and an impairment loss is recognised immediately in profit and loss.

Investment property

All of the company's properties are held for long term investment. Investment properties are accounted for as follows:-

(i) Investment properties are initially recorded at cost which includes purchase cost and any directly attributable expenditure.

(ii) Thereafter, investment properties are revalued at each balance sheet date to their fair value, where this can be measured reliably.

(iii) The surplus or deficit arising on revaluation in the financial year is recognised in the profit and loss account for that year. Revaluation gains and losses are accumulated in the profit and loss account reserve, unless the revaluation amount exceeds original cost in which case, a transfer is made of the surplus to a non-distributable reserve in the balance sheet.

(iv) Deferred taxation is provided on any gains at the rate expected to apply when a property is sold.

Taxation

Taxation represents the sum of tax currently payable and deferred tax. The company's liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the end of the reporting period.

The charge for taxation takes into account taxation deferred as a result of timing differences between the treatment of certain items for taxation and accounting purposes. In general, deferred taxation is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date. However, deferred tax assets are recognised only to the extent that the directors consider that it is 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 taxation is measured on a non-discounted basis at the tax rates that are expected to apply in the periods in which the timing differences reverse, based on tax rates and laws enacted or substantively enacted at the balance sheet date.

With the exception of changes arising on the initial recognition of a business combination, the tax expense is presented either in profit or loss, other comprehensive income or statement of changes in equity depending on the transaction that resulted in the tax expense.

Deferred tax liabilities are presented within provisions for liabilities and deferred tax assets within debtors.

Pension costs and other post-retirement benefits

The company operates a defined contribution pension scheme. Contributions payable to the company's pension scheme are charged to profit or loss in the period to which they relate.

Fixed asset investments

All investments in subsidiaries are stated at cost less accumulated impairment losses.

Financial instruments

The company only enters into basic financial instruments transactions that result in the recognition of financial assets and liabilities like trade and other accounts receivable and payable, loans from banks and other third parties, loans to related parties and investments.

Debt instruments like loans and other accounts receivable and payable are initially measured at present value of the future payments and subsequently at amortised cost using the effective interest method. Debt instruments that are payable or receivable within one year, typically trade debtors and trade creditors, are measured, initially and subsequently, at the undiscounted amount of cash or other consideration expected to be paid or received.

Investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transactions price, (adjusted for transaction costs, except in the initial measurement, where the investment thereafter is measured at fair value in profit or loss). Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.

Financial assets measured at cost and amortised cost are assessed at the end of each reporting period for evidence of impairment and if found, an impairment loss is recognised in profit or loss.

Financial liabilities are derecognised when the liability is extinguished, that is when the contractual obligation is discharged, cancelled or expires.

Cash and cash equivalents includes cash in hand and cash held at banks.

3.	EMPLOYEES AND DIRECTORS

The average number of employees during the year was 5 (2022 - 5 ) .

4.	TANGIBLE FIXED ASSETS

Plant and

machinery

etc

£

COST

At 1 July 2022

32,585

Additions

2,485

At 30 June 2023

35,070

DEPRECIATION

At 1 July 2022

30,136

Charge for year

1,417

At 30 June 2023

31,553

NET BOOK VALUE

At 30 June 2023

3,517

At 30 June 2022

2,449

5.	FIXED ASSET INVESTMENTS

Other

investments

£

COST

At 1 July 2022

and 30 June 2023

732,289

NET BOOK VALUE

At 30 June 2023

732,289

At 30 June 2022

732,289

6.	INVESTMENT PROPERTY

Total

£

FAIR VALUE

At 1 July 2022

5,357,500

Revaluations

(60,000

)

At 30 June 2023

5,297,500

NET BOOK VALUE

At 30 June 2023

5,297,500

At 30 June 2022

5,357,500

The company's investment properties are held for use under operating leases. The fair value of the investment property at 30 June 2023 has been arrived at on the basis of a valuation carried out at that date by the company directors. The valuation was arrived at by reference to a consideration of the current state of the market for the type of investment property and the terms and duration of the leases held.

7.

DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2023

2022

£

£

Other debtors

162,239

123,113

8.

CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2023

2022

£

£

Bank loans and overdrafts

76,800

76,000

Amounts owed to group undertakings

2,378,311

2,228,311

Taxation and social security

4,105

5,873

Other creditors

46,208

42,735

2,505,424

2,352,919

9.

CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR

2023

2022

£

£

Bank loans

2,043,564

2,120,491

10.	SECURED DEBTS

The following secured debts are included within creditors:

2023

2022

£

£

Bank loans

2,120,364

2,196,491

In respect of the bank loan, there are a number of charges in favour of the Royal Bank of Scotland plc over some of the company's properties.

11.	DIRECTORS' ADVANCES, CREDITS AND GUARANTEES

The following advances and credits to a director subsisted during the years ended 30 June 2023 and 30 June 2022:

2023

2022

£

£

A R Wolfson

Balance outstanding at start of year

101,893

142,086

Amounts advanced

193,625

204,307

Amounts repaid

(154,500

)

(244,500

)

Amounts written off

-

-

Amounts waived

-

-

Balance outstanding at end of year

141,018

101,893

The amount due is included in debtors and is unsecured, interest free and has no fixed repayment terms.

12.	RELATED PARTY DISCLOSURES

Kestrel Equities Limited has granted the Royal Bank of Scotland Plc an unlimited guarantee in respect of sums due to the bank by Kingfisher Equities Limited. Kingfisher Equities Limited and Gander Equities Limited have granted the Royal Bank of Scotland Plc an unlimited guarantee in respect of sums due to the bank by Kestrel Equities Limited. Gander Equities Limited is a subsidiary of Kestrel Equities Limited and Kingfisher Equities Limited is a company controlled by a director of Kestrel Equities Limited.

At the balance sheet date, the company owed £2,378,311 (2022 - £2,228,311) to subsidiary undertakings. The amount is included in creditors and is unsecured, interest free and has no fixed repayment terms.

At the balance sheet date, the company owed £2,768 (2022 - £419) to a business controlled by a director. The amount is included in creditors and is unsecured, interest free and has no fixed repayment terms.

Additional related party information is provided in note 11.