In the application of the company’s accounting policies, the director is required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.
Kings Leisure Limited is a private company limited by shares incorporated in England and Wales . The registered office is 2nd Floor Gadd House, Arcadia Avenue, London, N3 2JU.
The financial statements are prepared in sterling , which is the functional currency of the company. Monetary a mounts in these financial statements are rounded to the nearest £.
The company has taken advantage of the exemption under section 399 of the Companies Act 2006 not to prepare consolidated accounts , on the basis that the group of which this is the parent qualifies as a small group . The financial statements present information about the company as an individual entity and not about its group .
T he company has net current assets of £ 1 3 , 598 , 438 (20 20 - £ 13,628,294 ) and has made a loss of £ 158 , 258 (20 20 - 408,149 ).
These financial statements are prepared on the going concern basis. The director has a reasonable expectation that the company will continue in operational existence for the foreseeable future.
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 .
At each reporting period end date, the company reviews the carrying amounts of its tangible 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). 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.
Recoverable amount is the higher of fair value less costs to sell and 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.
If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. 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.
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 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, 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 paymen ts 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. A m ounts 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.
Equity instruments issued by the company are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.
The average monthly number of persons (including directors) employed by the company during the year was:
The investment property comprises a property at 4 North Avenue, Canvey Island. The fair value of the investment property has been arrived at on the basis of a valuation carried out on 30 September 202 1 by independent, professional valuers . The valuation was made on an open market value basis by reference to market evidence of transaction prices for similar properties.
Included within other creditors above are amounts owed by non-group related parties £ 5,285,486 ( 2020 - £1,148,319) as disclosed in full in note 11 below with an amount of £982,985 (2020 - £1,233,485 ) being accruals and deferred income.
The above amount relates to a tax liability that has been deferred by the sale proceeds being invested in to an allowable asset.
As at the balance sheet date the following amounts were owed to the company by the following companies and individuals:
Pemican Limited £ 4,471,756 20 20 - £4,166,676
Thorney Bay Park Limited £ 7,564,907 20 20 - £ 8, 642 , 871
C B King £ 564,761 20 20 - £552,993
H W King £4 , 782,485 20 20 - £2,233,173
L King £ 123,302 20 20 - £120,733
Sandy Bay Developments Limited £ 603,396 2020 - £ Nil
Thorney Bay Developments Limited £ 17,93 1 2020 - £ Nil
T B Developments Limited £ 11,560 2020 - £ Nil
Sandy Bay Resorts Limited £ 185,111 2020 - £ Nil
Kings Aviation Limited £ 1,288.634 2020 - £ Nil
Steve's Radio Cars Limited £ 62,283 20 20 - £ Nil
Additionally, the following amounts were owed by the company to the following companies and individuals:
Kings Executive Pension Scheme £ 820,253 20 20 - £ 901,501
Steve's Radio Cars Limited £40,000 20 20 - £3,633
J G King £637,250 20 20 - £243,185
Nairn Consultancy £730,302 2020 - £Nil
Kings' Children £73,804 2020 - £Nil
Clear Springs Management £427,641 2020 - £Nil
H E King £72,601 2020 - £Nil
Kings Aviation £150,302 2020 - £Nil
S King £2,333,333 2020 - £Nil
The above companies are related by virtue of common directorships, shareholding and where the company is the sponsoring employer.
All of the above balances are unsecured, interest free and repayable on demand.
The directors believe that the ultimate controlling party is Ms H King by virtue of her directorship and family ties.