KITEWOOD ESTATES LIMITED CONSOLIDATED ANNUAL REPORT … · KITEWOOD ESTATES LIMITED CONSOLIDATED...

Company Registration No. 02852063 (England and Wales)

KITEWOOD ESTATES LIMITED

CONSOLIDATED ANNUAL REPORT

FOR THE YEAR ENDED 30 APRIL 2015

KITEWOOD ESTATES LIMITED DIRECTORS AND ADVISERS

Directors Mr J Faith Mr R Grylls Mr Philip Van Reyk Mr D Tatterton (Appointed 1 May 2015) Mr D Faith (Appointed 25 August 2015) Ms R M Van Reyk (Appointed 25 August 2015) Secretary Mrs A C Newman Company number 02852063 Registered office 85 Gracechurch Street London England EC3V 0AA Registered auditors HJS Accountants Limited Chartered Accountants and Statutory Auditors 12 -14 Carlton Place Southampton Hampshire England SO15 2EA

KITEWOOD ESTATES LIMITED CONTENTS

Page Chairman's statement 1

Chief Executives review 2 - 5

Strategic report 6

Directors' report 7 - 8

Independent auditors' report 9 - 10

Profit and loss account 11

Statement of total recognised gains and losses 12

Balance sheet 13

Cash flow statement 14

KITEWOOD ESTATES LIMITED CHAIRMAN'S REPORT FOR THE YEAR ENDED 30 APRIL 2015

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After another progressive year for Kitewood I am pleased to report a significant growth in activity and profits for the year. The year has seen a consolidation of the re-structuring of the Group and management whilst also benefiting from more favourable trading conditions. Progress on the various sites is outlined in the Chief Executives Report which will elaborate on the re-focused Group activities of Residential Development, Strategic Land, Care and Commercial Development. We are also exploring various options to retain some or all of certain future projects for investment either directly or via a new Investment Company of which Kitewood Estates will earn asset management fees. During the year our policy of reducing Group debt has continued and will form part of our ongoing strategy for the foreseeable future. The group continues to enjoy a long standing relationship with its historic funders and has successfully found further project funding sources with a number of new forward thinking lenders. We look forward to the forthcoming year which will see the Group benefit further from the great effort made by the entireteam at Kitewood and I am grateful for all their hard work and energy. Following the year end the shareholding within the Group has been re-organised and will see the business jointly controlled by our CEO Philip Van Reyk and myself and family. I have to report that after many years of being a highly valued core member of our organisation Barbara Condon will bestepping down as a director and retiring. We thank her for her contribution over the years. John Faith MRICS Chairman Kitewood Estates Limited 11 November 2015

KITEWOOD ESTATES LIMITED CHIEF EXECUTIVE'S REVIEW FOR THE YEAR ENDED 30 APRIL 2015

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Further to the Chairman’s statement, I am pleased to report a successful year for Kitewood with improved gross profits and retained earnings. The year has seen the achievement of the objectives that were set and further cements our focus on core activities which are all now managed from our central office in The City. The company is now well placed to further expand utilising its in-house skills. I set out below a number of key achievements:- Residential Development The Peltons, Greenwich, London The site was acquired from Royal Borough of Greenwich following the grant of planning for 138 houses and apartments. During this financial year the first phase was pre-sold to Peabody with a smaller second phase undertaken as a joint-venture with their private housing arm. The final phase is now nearing completion with the majority of properties having been pre-sold.

Bluebird Gate, Horley, Surrey This scheme for 9 executive detached houses where consent was gained in 2011 has commenced development and been received well by the market achieving a number of off plan sales.


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Tavistock Gardens, West Drayton, Middlesex This site which has been assembled over a period of time received planning consent from London Borough of Hillingdon for 208 apartments. Following the acquisition of additional land at the end of 2014 a further consent has been achieved to increase the number to 308 apartments. The project is located within 500m of the new Crossrail station which is due to open in 2018, and will further enhance an area which has seen great regeneration and investment. We look forward to bringing forward this development over the forthcoming years.

Woods Road, Peckham, London During the year Kitewood successfully achieved planning consent for the redevelopment of this highly desirable site in Peckham adjoining Cossall Park with 122 apartments. A joint venture company, Kitewood (Cossall) Limited, has been established with Crest Nicholson PLC to build out the scheme.

Future Residential Projects Woodacres, Hailsham, East Sussex - A scheme of 70 units is under construction and marketing will commence in Autumn 2015. Dittons Road, Polegate, East Sussex - The site is controlled by a number of options and an outline consent has been granted for 57 houses. A further application is being made. Creekside Village East, Deptford, London - This site has been secured and a planning application has been submitted for 216 apartments and commercial space.


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The Haven, Sydenham, London - The Salvation Army has granted Kitewood an option to acquire this 3.5 acre site and we have now achieved planning consent for the redevelopment to provide 46 houses and apartments. Construction is to commence in the new year. Clarendon Walk, Salisbury, Wiltshire – Construction has commenced for this development of 8 houses and marketing will begin in January 2016. Strategic Land Hillborough Nr Canterbury, Kent - This land was acquired a number of years ago and has been sold to Taylor Wimpey following its allocation for development within the Canterbury Draft Local Plan. Kitewood have retained options to acquire certain elements of residential and commercial land once planning consent has been granted.

Chestfield, Kent - This land owned by the company is being promoted for development via the Local Plan process. New Haw, Surrey - The company have secured 12.8 hectares of land which has development potential and will be considered as an option site when Runnymede Borough Council review their Local Plan. Care Sector Following the successful transaction in Epsom, the company has acquired further Care opportunities. Egham - This project provides a 68 bedroom care home and 56 extra care apartments. The care home site has been sold to Cinnamon Capital. Sevenoaks - Planning was granted on appeal for the development of an 80 bed care home. Kitewood have secured the pre-let with Care UK Ltd and pre-funded and sold the scheme to MedicX Health Limited.

Further opportunities are being pursued and we continue to search for well-located sites with known demand.


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Commercial Development Greenwich - The commercial space within the Peltons is now being marketed for lease and good interest has been received. We hope to finalise terms on the majority of these units shortly. Southbury Road, Enfield - All of the commercial space here has now been let and is retained for investment. Alitra Business Park, Kent - Following the grant of planning for a Sainsburys superstore, the sale of the land has now taken place. Urban & Civic (formerly Terrace Hill) have commenced work on the building. Kitewood and Urban & Civic have formed a joint-venture to develop parts of the remaining 14 acres of land.

We look forward to the coming year and these various projects contributing to the growth of the business. Philip Van Reyk Chief Executive 11 November 2015

KITEWOOD ESTATES LIMITED STRATEGIC REPORT FOR THE YEAR ENDED 30 APRIL 2015

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The directors present the strategic report and financial statements for the year ended 30 April 2015. Review of the business The group's turnover for the period was £23.89m compared to the previous period total of £14.95m. The grouphas made a profit before taxation of £4.30m compared with a profit before taxation of £0.94m. The directors are confident that profitability can be sustained, and it is proposed that the group policy, to retain profits to supplement the group's reserves and finance the ongoing future developments, should remain. Description of principal risks and uncertaintiesThe directors have undertaken an assessment of the main financial risks to which the group has become exposed,excluding normal commercial risks some of which are subject to insurances. The main activities are thedevelopment of, and investment in, freehold property and the perceived financial risks are considered to be as follows: a) Increase in interest rates on borrowing and the adequacy of income to offset increases in borrowing costs. b) Lack of liquidity and cash flow risk in respect of properties being developed. The directors have sought to address these factors in conjunction with the group's financiers by establishing: i) A borrowing structure in respect of investment properties at a level of gearing to provide adequate margin ofrevenues over interest on related borrowings. ii) Borrowing or securing adequate financial facilities specific to properties being developed, which borrowing isnormally repaid on practical completion or disposal of the property concerned.

Analysis of development and performance The overall development property interests in the group have an aggregate value of £22.82m (2014: £20.78m)which is £7.9m (2014: £10.70m) in excess of attributable cost values, and the revaluation surplus of £7.19m (2014:£9.36m), net of deferred tax, has been transferred to the revaluation reserve. Each property interest has been evaluated by specialist R.I.C.S surveyors. By order of the board

Mrs A C Newman Secretary 11 November 2015

KITEWOOD ESTATES LIMITED DIRECTORS' REPORT FOR THE YEAR ENDED 30 APRIL 2015

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The directors present their report and financial statements for the year ended 30 April 2015. Principal activities The principal activities of the group during the year were those of land and property owning, management and development of commercial, residential, affordable and key worker accommodation. Results and dividends The consolidated profit and loss account for the year is set out on page 11. The directors do not recommend payment of an ordinary dividend. Market value of land and buildings The overall development property interests in the group have an aggregate value of £22.82m (2014: £20.78m) which is £7.9m (2014: £10.70m) in excess of attributable cost values, and the revaluation surplus of £7.19m (2014: £9.36m), net of deferred tax, has been transferred to the revaluation reserve. Each property interest has been evaluated by specialist R.I.C.S surveyors. Post balance sheet events On 26 August 2015 the company purchased 1,125 of its own shares for £500,000 which were subsequently cancelled. Future developments The company has chosen in accordance with Companies Act 2006, s. 414C(11) to set out in the company's Strategic Report information required by Large and Medium-sized Companies and Groups (Accounts and Reports) Regulations 2008, Sch. 7 to be contained in the Directors' Report. It has done so in respect of future developments. Directors The following directors have held office since 1 May 2014: Mr J Faith Mr R Grylls Mrs B Condon (Resigned 30 April 2015)Ms C Faith (Resigned 25 August 2015)Mr Philip Van Reyk Mr D Tatterton (Appointed 1 May 2015)Mr D Faith (Appointed 25 August 2015)Ms R M Van Reyk (Appointed 25 August 2015) Auditors The auditors, HJS Accountants Limited, are deemed to be reappointed under section 487(2) of the Companies Act 2006.

KITEWOOD ESTATES LIMITED DIRECTORS' REPORT (CONTINUED) FOR THE YEAR ENDED 30 APRIL 2015

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Statement of directors' responsibilities The directors are responsible for preparing the Strategic Report, 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 United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). 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 group and of the profit or loss of the group 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; - state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; - prepare the financial statements on the going concern basis unless it is inappropriate to presume that the group 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 the group and 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 the group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Statement of disclosure to auditors So far as the directors are aware, there is no relevant audit information of which the group's auditors are unaware. Additionally, the directors have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the group's auditors are aware of that information. By order of the board

Mrs A C Newman Secretary 11 November 2015

KITEWOOD ESTATES LIMITED INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF KITEWOOD ESTATES LIMITED

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We have audited the group and parent company financial statements (the "financial statements") of KitewoodEstates Limited for the year ended 30 April 2015 set out on pages 11 to 31. The financial reporting frameworkthat has been applied in their preparation is applicable law and United Kingdom Accounting Standards (UnitedKingdom Generally Accepted Accounting Practice). This report is made solely to the company’s members, as a body, in accordance with Chapter 3 of Part 16 of theCompanies Act 2006. Our audit work has been undertaken so that we might state to the company’s membersthose matters we are required to state to them in an auditors' report and for no other purpose. To the fullest extentpermitted by law, we do not accept or assume responsibility to anyone other than the company and the company’smembers as a body, for our audit work, for this report, or for the opinions we have formed.

Respective responsibilities of directors and auditorsAs explained more fully in the Directors' Responsibilities Statement set out on pages 7 - 8, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fairview. Our responsibility is to audit and express an opinion on the financial statements in accordance with applicable law and International Standards on Auditing (UK and Ireland). Those standards require us to complywith the Auditing Practices Board's Ethical Standards for Auditors. Scope of the audit of the financial statementsAn audit involves obtaining evidence about the amounts and disclosures in the financial statements sufficient togive reasonable assurance that the financial statements are free from material misstatement, whether caused byfraud or error. This includes an assessment of: whether the accounting policies are appropriate to the group'sand the company's circumstances and have been consistently applied and adequately disclosed; thereasonableness of significant accounting estimates made by the directors; and the overall presentation of the financial statements. In addition, we read all the financial and non-financial information in the Annual Report to identify material inconsistencies with the audited financial statements and to identify any information that is apparently materially incorrect based on, or materially inconsistent with, the knowledge acquired by us in thecourse of performing the audit. If we become aware of any apparent material misstatements or inconsistencieswe consider the implications for our report.

KITEWOOD ESTATES LIMITED INDEPENDENT AUDITORS' REPORT (CONTINUED) TO THE MEMBERS OF KITEWOOD ESTATES LIMITED

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Basis of qualified opinion on the financial statementsThe group's work in progress is carried in the balance sheet at £15,010,736. This carrying value is assessed by the directors on the basis explained in note 1 to the accounts. As explained in the notes to the accounts, the surplus on revaluation above cost of net realisable value is taken to the revaluation reserve after provision for appropriate taxation. The directors consider that where planning consent has been granted on sites not previously consented and where the value of the site is verified by by Chartered Surveyors then this provides a conservative but true and fair view of the value of those assets, however this treatment does represent a departure from UK Generally Accepted Accounting Practice. The group's records indicate that had the directors stated work in progress at the lower of cost and net realisable value, the carrying value of stock and work in progress would have been reduced by £1,850,000, the deferred tax provision reduced by £370,000, the revaluation reserve reduced by £1,480,000. There would have been no effect on the Profit and Loss Account. Accordingly, net current assets would have been reduced by £1,850,000, and shareholders' funds would have been reduced by £1,480,000.

Qualified opinion on financial statements In our opinion, except for the effects of the matter described in the Basis for Qualified Opinion paragraph, the financial statements: - give a true and fair view of the state of the group’s and parent company's affairs as at 30 April 2015 and of

the group's profit for the year then ended; and - 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. Opinion on other matter prescribed by the Companies Act 2006In our opinion the information given in the Strategic Report and Directors' Report for the financial year for which the financial statements are prepared is consistent with the financial statements. Matters on which we are required to report by exceptionWe have nothing to report in respect of the following matters where 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.

Mark Rogers (Senior Statutory Auditor) for and on behalf of HJS Accountants Limited 17 November 2015

Chartered Accountants and Statutory Auditors12 -14 Carlton Place Southampton Hampshire England SO15 2EA

KITEWOOD ESTATES LIMITED CONSOLIDATED PROFIT AND LOSS ACCOUNT FOR THE YEAR ENDED 30 APRIL 2015

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2015 2014 Notes £ £ Turnover 2 24,065,361 14,945,626 Cost of sales (18,170,757) (12,109,428)

Gross profit 5,894,604 2,836,198 Administrative expenses (1,445,047) (1,076,600)Other operating income 33,325 29,887

Operating profit 3 4,482,882 1,789,485 Other interest receivable and similar income 2,288 668Interest payable and similar charges 5 (424,155) (848,673)

Profit on ordinary activities before taxation

4,061,015

941,480

Tax on profit on ordinary activities 7 (512,214) (23,099)

Profit on ordinary activities after taxation 3,548,801 918,381

The profit and loss account has been prepared on the basis that all operations are continuing operations.

KITEWOOD ESTATES LIMITED STATEMENT OF RECOGNISED GAINS AND LOSSES FOR THE YEAR ENDED 30 APRIL 2015

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2015 2014 £ £ Profit for the financial year 3,548,801 918,381 Unrealised (deficit)/surplus on revaluation of properties

-

680,000

Total recognised gains and losses relating to the year 3,548,801 1,598,381

KITEWOOD ESTATES LIMITED BALANCE SHEETS AS AT 30 APRIL 2015

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Group Company 2015 2014 2015 2014 Notes £ £ £ £ Fixed assets Tangible assets 9 & 10 7,836,446 5,803,880 5,830,736 5,803,880Investments 11 - - 124 22

7,836,446 5,803,880 5,830,860 5,803,902

Current assets Stocks 12 14,831,183 14,997,965 10,433,459 12,088,492Debtors 13 4,466,180 2,017,977 5,993,808 2,178,831Cash at bank and in hand 1,489,140 1,681,409 1,367,060 1,495,570

20,786,503 18,697,351 17,794,327 15,762,893Creditors: amounts falling due within one year 14 (10,197,536) (7,335,321) (4,794,119) (3,282,728)

Net current assets 10,588,967 11,362,030 13,000,208 12,480,165

Total assets less current liabilities 18,425,413 17,165,910 18,831,068 18,284,067 Creditors: amounts falling due after more than one year 15 (1,949,196) (1,464,196) (1,949,196) (1,464,196) Provisions for liabilities 16 (710,000) (1,333,439) (710,000) (1,333,439)

15,766,217 14,368,275 16,171,872 15,486,432

Capital and reserves Called up share capital 17 25,000 25,000 25,000 25,000Revaluation reserve 18 7,186,743 9,363,015 7,186,743 9,363,015Profit and loss account 18 8,554,474 4,980,260 8,960,129 6,098,417

Shareholders' funds 19 15,766,217 14,368,275 16,171,872 15,486,432

Approved by the Board and authorised for issue on 11 November 2015.

Mr J Faith Director Company Registration No. 02852063

KITEWOOD ESTATES LIMITED CONSOLIDATED CASH FLOW STATEMENT FOR THE YEAR ENDED 30 APRIL 2015

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2015 2014 Note £ £ £ £ Net cash inflow from operating activities 21

437,398

384,093

Returns on investments and servicing of finance

Interest received 2,288 668 Interest paid (424,155) (848,673)

Net cash outflow for returns on investments and servicing of finance

(421,867)

(848,005)

Taxation (132,509) 1 Capital expenditure Payments to acquire tangible assets (2,037,949) (1,676) Receipts from sales of tangible assets - 638,574

Net cash (outflow)/inflow for capital expenditure

(2,037,949)

636,898

Acquisitions and disposals Purchase of subsidiary undertakings (net of cash acquired)

19,406

-

Sale of subsidiary undertakings (net of cash acquired)

(76)

-

Net cash outflow for acquisitions and disposals

19,330

-

Net cash (outflow)/inflow before management of liquid resources and financing

(2,135,597)

172,987 Financing

Other new long term loans 485,000 - Other new short term loans 1,458,256 2,558,533 Repayment of other long term loans - (161,766) Repayment of other short term loans - (1,015,718)

Net cash inflow from financing 1,943,256 1,381,049

Increase in cash in the year 22, 23 (192,341) 1,554,036

KITEWOOD ESTATES LIMITED NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 APRIL 2015

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1 Accounting policies 1.1 Accounting convention The financial statements are prepared under the historical cost convention modified to include the revaluation

of freehold land and buildings. 1.2 Compliance with accounting standards The financial statements are prepared in accordance with applicable United Kingdom Accounting Standards

(United Kingdom Generally Accepted Accounting Practice), which have been applied consistently (except asotherwise stated).

1.3 Basis of consolidation The consolidated profit and loss account and balance sheet include the financial statements of the company

and its subsidiary undertakings made up to 30 April 2015. The results of subsidiaries sold or acquired areincluded in the profit and loss account up to, or from the date control passes. Intra-group sales and profits are eliminated fully on consolidation.

1.4 Turnover Turnover represents amounts receivable for goods and services net of VAT and trade discounts.

Revenue is recognised when all the risks and rewards are passed to the customer. For agreed contractdevelopments this is based on stage of completion, for speculative builds this is on completion of sale. Profit is recognised on long-term contracts, if the final outcome can be assessed with reasonable certainty, byincluding in the profit and loss account turnover and related costs as contract activity progresses. Turnover is calculated as that proportion of total contract value which costs to date bear to total expected costs for thatcontract.

1.5 Goodwill Acquired goodwill is written off in equal annual instalments over its estimated useful economic life. 1.6 Tangible fixed assets and depreciation Tangible fixed assets include investment properties professionally valued by Chartered Surveyors on an

existing use open market value basis. Other tangible fixed assets are stated at cost or valuation less depreciation. Depreciation is provided at rates calculated to write off the cost or valuation less estimatedresidual value of each asset over its expected useful life, as follows:

Fixtures, fittings & equipment 15% on reducing balance basis Investment properties are included in the balance sheet at their open market value. Depreciation is provided

only on those investment properties which are leasehold and where the unexpired lease term is less than 20years. Although this accounting policy is in accordance with the applicable accounting standard, SSAP 19, Accountingfor investment properties, it is a departure from the general requirement of the Companies Act 2006 for alltangible assets to be depreciated. In the opinion of the directors compliance with the standard is necessary for the financial statements to give a true and fair view. Depreciation or amortisation is only one of many factorsreflected in the annual valuation and the amount of this which might otherwise have been charged cannot be separately identified or quantified.

1.7 Leasing Rentals payable under operating leases are charged against income on a straight line basis over the lease

term.

KITEWOOD ESTATES LIMITED NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 30 APRIL 2015

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1 Accounting policies

1.8 Investments Fixed asset investments are stated at cost less provision for diminution in value. 1.9 Stock and work in progress Work in progress is valued on the basis of direct costs plus attributable overheads based on normal level of

activity. Provision is made for any foreseeable losses where appropriate. No element of profit is included in thevaluation of work in progress. Property interests included in work in progress Interest in property assets are revalued annually to open market value. Surpluses and deficits on individualproperties are transferred to the revaluation reserve, except that a deficit which is expected to be permanentand which is in excess of any previously recognised surplus over cost relating to the same property, or reversalof such deficit is charged to the profit and loss account. The directors consider this accountancy policy, whichrepresents a departure from the statutory accounting rules, is is necessary to provide a true and fair view asrequired under SSAP 19 Accounting for Investment Properties.

1.10 Pensions The Group operates a defined contribution scheme for the benefit of its employees. Contributions payable are

charged to the profit and loss account in the year they are payable.

1.11 Deferred taxation Deferred taxation is provided in full in respect of taxation deferred by timing differences between the treatment

of certain items for taxation and accounting purposes. The deferred tax balance has not been discounted.

1.12 Foreign currency translation Monetary assets and liabilities denominated in foreign currencies are translated into sterling at the rates of

exchange ruling at the balance sheet date. Transactions in foreign currencies are recorded at the rate rulingat the date of the transaction. All differences are taken to profit and loss account.

2 Turnover The total turnover of the group for the year has been derived from its principal activity wholly undertaken in the

United Kingdom. 3 Operating profit 2015 2014 £ £ Operating profit is stated after charging: Depreciation of tangible assets 5,383 4,214 Operating lease rentals 152,279 85,630 Fees payable to the group's auditor for the audit of the group's annual

accounts (company £29,750; 2014 £27,000) 29,750 27,000 and after crediting: Profit on disposal of tangible assets - (73,291)


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4 Directors' remuneration 2015 2014 £ £ Remuneration for qualifying services 1,763,046 280,746

5 Interest payable 2015 2014 £ £ On bank loans and overdrafts 424,155 848,673

6 Employees Number of employees The average monthly number of employees (including directors) during the

year was:

2015 2014 Number Number Admin staff 3 3 Management staff 7 4 Direct costs staff - 4

10 11

Employment costs 2015 2014 £ £ Wages and salaries 2,771,132 736,383 Social security costs 75,347 72,936 Other pension costs 155,650 9,440

3,002,129 818,759


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7 Taxation 2015 2014 £ £ Domestic current year tax U.K. corporation tax 720,343 30,529 Adjustment for prior years (208,129) (7,430)

Total current tax 512,214 23,099

Factors affecting the tax charge for the year Profit on ordinary activities before taxation 4,061,015 941,480

Profit on ordinary activities before taxation multiplied by standard rate of UK corporation tax of 20.92% (2014 - 22.67%) 849,564 213,434

Effects of: Non deductible expenses 233 835 Depreciation add back 1,126 (15,660) Capital allowances (9,406) (9,491) Tax losses utilised 3,622 (176,506) Adjustments to previous periods (208,129) - Chargeable disposals - 9,209 Other tax adjustments (124,796) 1,278

(337,350) (190,335)

Current tax charge for the year 512,214 23,099

8 Profit for the financial year As permitted by section 408 Companies Act 2006, the holding company's profit and loss account has not been

included in these financial statements. The profit for the financial year is made up as follows:

2015 2014 £ £ Holding company's profit for the financial year 2,861,712 461,840


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9 Tangible fixed assets Group Fixtures,

fittings & equipment

£ Cost or valuation At 1 May 2014 92,026 Additions 12,005

At 30 April 2015 104,031

Depreciation At 1 May 2014 68,146 Charge for the year 5,383

At 30 April 2015 73,529

Net book value At 30 April 2015 30,502

At 30 April 2014 23,880


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9 Tangible fixed assets Company Fixtures,

fittings & equipment

£ Cost or valuation At 1 May 2014 92,026 Additions 12,005

At 30 April 2015 104,031

Depreciation At 1 May 2014 68,146 Charge for the year 5,383

At 30 April 2015 73,529

Net book value At 30 April 2015 30,502

At 30 April 2014 23,880


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10 Tangible fixed assets Investment properties Group Company £ £ Cost or valuation At 1 May 2014 5,780,000 5,780,000 Additions 2,025,944 20,234

At 30 April 2015 7,805,944 5,800,234

Depreciation At 1 May 2014 & at 30 April 2015 - -

Net book value At 30 April 2015 7,805,944 5,800,234

Company The investment property, was valued on an open market basis at 30 April 2015 by Mr J S Faith who is a directorand are RICS qualified. The historic cost of the investment property was £1,651,618 (2014: £1,631,384). Group The investment property, was valued on an open market basis at 30 April 2015 by Mr J S Faith who is a directorand are RICS qualified. The historic cost of the investment property was £3,657,328 (2014: £1,631,384).

11 Fixed asset investments Company Unlisted

investments

£ Cost or valuation At 1 May 2014 22 Additions 104 Disposals (2)

At 30 April 2015 124

Net book value At 30 April 2015 124

At 30 April 2014 22

Holdings of more than 20% The company holds more than 20% of the share capital of the following companies: Company Country of registration or

incorporation Shares held

Class % Subsidiary undertakings Kitewood Resolution Limited England & Wales Ordinary 100.00


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11 Fixed asset investments

Crowncoast Limited England & Wales Ordinary 75.00 Kitewood Development Projects Ltd England & Wales Ordinary 100.00 May Street Developments Limited England & Wales Ordinary 100.00 Neville Way Limited England & Wales Ordinary 100.00 Bentinck Projects Limited England & Wales Ordinary 100.00 Peckham Developments Limited England & Wales Ordinary 100.00 Tavistock Road Ltd England & Wales Ordinary 100.00 Tavistock Projects Ltd England & Wales Ordinary 100.00 Kitewood Residential Ltd England & Wales Ordinary 100.00 Octave Developments Ltd England & Wales Ordinary 100.00 Kitewood (Charlwood) Ltd England & Wales Ordinary 100.00 Kitewood (Staveley) Ltd England & Wales Ordinary 100.00 Kitewood (Cossall) Ltd England & Wales Ordinary 50.00 The principal activity of these undertakings for the last relevant financial year was as follows: Principal activity Kitewood Resolution Limited Dormant company Crowncoast Limited Property development Kitewood Development Projects Ltd Property development May Street Developments Limited Property development Neville Way Limited Property development Bentinck Projects Limited Property development Peckham Developments Limited Property development Tavistock Road Ltd Dormant company Tavistock Projects Ltd Dormant company Kitewood Residential Ltd Dormant company Octave Developments Ltd Holding company Kitewood (Charlwood) Ltd Property development Kitewood (Staveley) Ltd Property development Kitewood (Cossall) Ltd Dormant company Neville Way Limited and May Street Developments Limited are indirect holdings.

Kitewood (Cossall) Ltd results above are to 30 April 2014. The company has extended it's year end and thenext set of accounts are to be prepared to 31 October 2015 so as yet not completed.

12 Work in progress Group Company 2015 2014 2015 2014 £ £ £ £ Work in progress 14,831,183 14,997,965 10,433,459 12,088,492


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13 Debtors Group Company 2015 2014 2015 2014 £ £ £ £ Trade debtors 3,573 1 1 1 Amounts owed by group undertakings - - 3,294,176 846,493 Other debtors 4,462,464 2,015,747 2,699,631 1,332,337 Prepayments and accrued income 143 2,229 - -

4,466,180 2,017,977 5,993,808 2,178,831

14 Creditors : amounts falling due within one year Group Company 2015 2014 2015 2014 £ £ £ £ Bank loans and overdrafts 4,546,400 3,088,072 699,039 699,039 Trade creditors 607,980 1,126,518 110,664 747,124 Amounts owed to group undertakings - - 23 - Corporation tax 720,343 340,638 620,986 321,129 Taxes and social security costs 248,911 193,061 - 193,046 Other creditors 4,042,669 2,584,180 3,363,407 1,322,390 Accruals and deferred income 31,233 2,852 - -

10,197,536 7,335,321 4,794,119 3,282,728

The group's bank loans and overdrafts are secured by way of charges over the company's properties which are currently held as work in progress and as fixed assets.


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15 Creditors : amounts falling due after more than one year Group Company 2015 2014 2015 2014 £ £ £ £ Other loans 1,949,196 1,464,196 1,949,196 1,464,196

Analysis of loans Wholly repayable within five years 6,495,524 5,182,763 2,648,235 2,163,235 Included in current liabilities (4,546,328) (3,718,567) (699,039) (699,039)

1,949,196 1,464,196 1,949,196 1,464,196

Loan maturity analysis In more than one year but not more than two

years 4,546,328 3,718,567 699,039 699,039 In more than two years but not more than five

years 1,949,196 1,464,196 1,949,196 1,464,196

The group's bank loans and overdrafts are secured by way of charges over the company's properties whichare currently held as work in progress and as fixed assets.

16 Provisions for liabilities Group Deferred

taxation

£ Balance at 1 May 2014 1,333,439 Revaluation reserve (623,439)

Balance at 30 April 2015 710,000

Company Balance at 1 May 2014 1,333,439 Revaluation reserve (623,439)

Balance at 30 April 2015 710,000

The deferred tax liability is made up as follows: Group Company 2015 2014 2015 2014 £ £ £ £

Surplus on revaluation of land and buildings 710,000 1,333,439 710,000 1,333,439


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17 Share capital 2015 2014 £ £ Allotted, called up and fully paid 22,500 Ordinary A of £1 each 22,500 22,500 2,500 Ordinary B of £1 each 2,500 2,500

25,000 25,000

18 Statement of movements on reserves Group Revaluation

reserveProfit

and lossaccount

£ £ Balance at 1 May 2014 9,363,015 5,005,673 Profit for the year - 3,548,801 Revaluation during the year (2,176,272) -

Balance at 30 April 2015 7,186,743 8,554,474

Company Revaluation

reserveProfit

and lossaccount

£ £ Balance at 1 May 2014 9,363,015 6,098,417 Profit for the year - 2,861,712 Revaluation during the year (2,176,272) -

Balance at 30 April 2015 7,186,743 8,960,129


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19 Reconciliation of movements in shareholders' funds 2015 2014 Group £ £ Profit for the financial year 3,548,801 918,381 Other recognised gains and losses (2,176,272) 76,858

Net addition to shareholders' funds 1,372,529 995,239 Opening shareholders' funds 14,368,275 13,373,036

Closing shareholders' funds 15,766,217 14,368,275

2015 2014 Company £ £ Profit for the financial year 2,861,712 461,840 Other recognised gains and losses (2,176,272) 76,858

Net addition to shareholders' funds 685,440 538,698 Opening shareholders' funds 15,486,432 14,947,734

Closing shareholders' funds 16,171,872 15,486,432


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20 Related party transactions Group Purchases of goods and services 2015 2014 £ £ Purchases of goods Associated companies - - Entities controlled by the directors - - Purchases of fixed assets Associated companies - - Entities controlled by the directors - - Purchases of services Associated companies - - Entities controlled by the directors 550,795 726,796

550,795 726,796

Year end balances arising from sales/purchases of goods/services 2015 2014 £ £ Payables to: Non-director shareholders (94,630) 240,370 Entities controlled by the directors - - Loans from related parties 2015 2014 £ £ Entities controlled by directors At 1st May 2014 - 40,000 Loan advances during the year - - Loan repayments - (152,000) Interest charged - 112,000 Interest received - -

- -


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20 Related party transactions

2015 2014 £ £ Associated companies At 1st May 2014 1,894,926 4,428,849 Loan advances during the year 214,780 564,125 Loan repayments (682,245) (3,120,548) Interest charged 13,750 22,500 Interest received - -

1,441,211 1,894,926

Loans to related parties 2015 2014 £ £ Associated companies At 1st May 2014 1,854,684 6,555,691 Loan advances during the year 3,265,762 896,647 Loan repayments (311,252) (5,597,654) Interest charged - - Interest received - - Provision for bad debts (1,341,389)

3,467,805 1,854,684

2015 2014 £ £ Non-wholly owned subsidiaries At 1st May 2014 - - Loan advances during the year 313,737 - Loan repayments - - Interest charged - - Interest received - - Provision for bad debts (127,783) -

185,954 -

The company has taken advantage of the exemption available in FRS 8 " Related party disclosures" wherby it has not disclosed transactions with any wholly owned subsidiary undertaking.


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Company Purchases of goods and services 2015 2014 £ £ Purchases of goods Associated companies - - Entities controlled by the directors - - Purchases of fixed assets Associated companies - - Entities controlled by the directors - - Purchases of services Associated companies - - Entities controlled by the directors 550,795 726,796

550,795 726,796


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20 Related party transactions

Year end balances arising from sales/purchases of goods/services 2015 2014 £ £ Payables to: Non-director shareholders (94,630) 240,370 Entities controlled by the directors - - Loans from related parties 2015 2014 £ £ Entities controlled by directors At 1st May 2014 - 40,000 Loan advances during the year - - Loan repayments - (152,000) Interest charged - 112,000 Interest received - -

- -

2015 2014 £ £ Associated companies At 1st May 2014 1,045,648 3,690,286 Loan advances during the year 214,780 449,807 Loan repayments (368,500) (3,094,445) Interest charged - - Interest received - -

891,928 1,045,648


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20 Related party transactions Loans to related parties 2015 2014

£ £ Associated companies At 1st May 2014 1,292,337 6,514,992 Loan advances during the year 1,805,231 374,999 Loan repayments - (5,597,654) Interest charged - - Interest received - - Provision for bad debts (1,386,399)

1,711,169 1,292,337

2015 2014 £ £ Non-wholly owned subsidiaries At 1st May 2014 - - Loan advances during the year 313,737 - Loan repayments - - Interest charged - - Interest received - - Provision for bad debts (127,783) -

185,954 -

The company has taken advantage of the exemption available in FRS 8 " Related party disclosures" wherby it has not disclosed transactions with any wholly owned subsidiary undertaking.


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21 Reconciliation of operating profit to net cash inflow from operating activities

2015 2014

£ £ Operating profit 4,482,882 1,789,485 Depreciation of tangible assets 5,383 4,214 Profit on disposal of tangible assets - (73,291) Decrease/(increase) in stocks 2,626,918 (4,307,769) (Increase)/decrease in debtors (2,448,203) 6,478,814 Increase in creditors within one year (1,203,807) 900,237

Net cash inflow from operating activities 3,463,173 4,791,690

22 Analysis of net debt 1 May 2014 Cash flow Other non-cash changes

30 April 2015

£ £ £ £ Net cash: Cash at bank and in hand 1,681,409 (192,269) - 1,489,140 Bank overdrafts - (72) - (72)

1,681,409 (192,341) - 1,489,068

Debts falling due within one year (3,718,567) (827,761) - (4,546,328) Debts falling due after one year (1,464,196) (485,000) - (1,949,196)

(5,182,763) (1,312,761) - (6,495,524)

Net debt (3,501,354) (1,505,102) - (5,006,456)

23 Reconciliation of net cash flow to movement in net debt 2015 2014 £ £ (Decrease)/increase in cash in the year (192,341) 1,554,036 Cash (inflow)/outflow from (increase)/decrease in debt (1,312,761) 4,548,500

Movement in net debt in the year (1,505,102) 6,102,536 Opening net debt (3,501,354) (9,603,890)

Closing net debt (5,006,456) (3,501,354)

KITEWOOD ESTATES LIMITED CONSOLIDATED ANNUAL REPORT … · KITEWOOD ESTATES LIMITED CONSOLIDATED...

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