Registration number:
Kidd Holdings Limited
for the Year Ended 31 March 2020
Kidd Holdings Limited
Contents
Company Information |
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Balance Sheet |
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Notes to the Financial Statements |
Kidd Holdings Limited
Company Information
Directors |
Mr C W M Kidd Mr N G Kidd Mr S J Kidd Mrs M W Kidd |
Company secretary |
Mr A J Fletcher |
Registered office |
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Auditors |
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Kidd Holdings Limited
(Registration number: SC195094)
Balance Sheet as at 31 March 2020
Note |
2020 |
2019 |
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Fixed assets |
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Investment property |
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Investments |
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|
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Current assets |
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Cash at bank and in hand |
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Creditors: Amounts falling due within one year |
( |
( |
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Net current liabilities |
( |
( |
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Total assets less current liabilities |
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|
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Creditors: Amounts falling due after more than one year |
( |
( |
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Net assets |
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Capital and reserves |
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Called up share capital |
40,000 |
40,000 |
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Non distributable reserve |
218,174 |
218,174 |
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Profit and loss account |
450,355 |
432,660 |
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Total equity |
708,529 |
690,834 |
These financial statements have been prepared in accordance with the special provisions relating to companies subject to the small companies regime within Part 15 of the Companies Act 2006.
These financial statements have been delivered in accordance with the provisions applicable to companies subject to the small companies regime and the option not to file the Profit and Loss Account has been taken.
Approved and authorised by the
.........................................
Director
Kidd Holdings Limited
Notes to the Financial Statements for the Year Ended 31 March 2020
General information |
The company is a private company limited by share capital, incorporated in Scotland, registration number SC195094.
The address of its registered office is:
United Kingdom
The principal place of business is:
24-36 Dunedin Street
Edinburgh
EH7 4JG
United Kingdom
Accounting policies |
Summary of significant accounting policies and key accounting estimates
The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.
Statement of compliance
These financial statements have been prepared in accordance with Financial Reporting Standard 102 Section 1A - 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' and the Companies Act 2006.
Basis of preparation
These financial statements have been prepared using the historical cost convention except that as disclosed in the accounting policies certain items are shown at fair value.
The functional and presentation currency is sterling.
Group accounts not prepared
Going concern
The financial statements have been prepared on the going concern basis. The directors consider this basis is appropriate as the company is supported by the value of its investments and it continues to meet its working capital requirements as they fall due. The directors have a reasonable expectation the company will have adequate working capital to continue operating for the foreseeable future in consequence of a partial realisation of a director's loan due to the company's subsidiary and successful outcome to a business interruption insurance claim in its subsidiary (see note 12).
Audit report
Kidd Holdings Limited
Notes to the Financial Statements for the Year Ended 31 March 2020
Turnover
Turnover represents rental income receivable for the accounting period.
Tax
The tax expense for the period comprises current tax. Tax is recognised in profit or loss, except that a change attributable to an item of income or expense recognised as other comprehensive income is also recognised directly in other comprehensive income.
The current corporation tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the reporting date in the countries where the company operates and generates taxable income.
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date. There is currently no deferred tax liability.
Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference.
Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits.
Tax losses surrendered to a group company are paid in full by the claimant company.
Investment property
Investments
Investments in equity shares which are not publicly traded and where fair value cannot be measured reliably are measured at cost less impairment.
Cash and cash equivalents
Cash and cash equivalents comprise cash on hand and call deposits, and other short-term highly liquid investments that are readily convertible to a known amount of cash and are subject to an insignificant risk of change in value.
Trade creditors
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Accounts payable are classified as current liabilities if the company does not have an unconditional right, at the end of the reporting period, to defer settlement of the creditor for at least twelve months after the reporting date. If there is an unconditional right to defer settlement for at least twelve months after the reporting date, they are presented as non-current liabilities.
Borrowings
Kidd Holdings Limited
Notes to the Financial Statements for the Year Ended 31 March 2020
Interest-bearing borrowings are initially recorded at fair value, net of transaction costs. Interest-bearing borrowings are subsequently carried at amortised cost, with the difference between the proceeds, net of transaction costs, and the amount due on redemption being recognised as a charge to the Profit and Loss Account over the period of the relevant borrowing.
Interest expense is recognised on the basis of the effective interest method and is included in interest payable and similar charges.
Borrowings are classified as current liabilities unless the company has an unconditional right to defer settlement of the liability for at least twelve months after the reporting date.
Share capital
Ordinary shares are classified as equity. Equity instruments are measured at the fair value of the cash or other resources received or receivable, net of the direct costs of issuing the equity instruments. If payment is deferred and the time value of money is material, the initial measurement is on a present value basis.
Dividends
Dividend distribution to the company’s shareholders is recognised as a liability in the financial statements in the reporting period in which the dividends are declared.
Financial instruments
Classification
Recognition and measurement
Basic financial assets, including 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 value rate of interest. Financial assets classified as receivable within one year are not amortised.
Basic financial liabilities, including creditors and bank loans, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.
Staff numbers |
The average number of persons employed by the company (including directors) during the year, was
Kidd Holdings Limited
Notes to the Financial Statements for the Year Ended 31 March 2020
Taxation |
Analysis of the tax charge
The tax charge on the profit for the year was as follows:
2020 |
2019 |
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£ |
£ |
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Currect tax: |
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UK corporation tax |
16,592 |
16,427 |
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Tax on profit |
16,592 |
16,427 |
Investment properties |
2020 |
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At 1 April |
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The directors have reviewed the value of each of the company's investment properties as at 31 March 2020. The directors consider the book value of each of these properties at 31 March 2020 reflects fair value on an existing use basis. The directors do not consider any significant assumptions have been applied in their determination of the fair value of each property.
The directors' valuation of one of the properties is based upon an independent valuation of £750,000 undertaken in February 2016 on an existing use basis by Graham + Sibbald, Chartered Surveyors. The company's other heritable property was valued at £89,891 by the directors in March 2020 on an existing use basis. If investment properties had not been revalued they would have been stated at historic cost of £621,717 (2019 £621,717).
Investments |
2020 |
2019 |
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Investments in subsidiaries |
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Subsidiaries |
£ |
Cost or valuation |
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At 1 April 2019 |
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Carrying amount |
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At 31 March 2020 |
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At 31 March 2019 |
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Kidd Holdings Limited
Notes to the Financial Statements for the Year Ended 31 March 2020
Creditors |
Creditors: amounts falling due within one year
Note |
2020 |
2019 |
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Due within one year |
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Loans and borrowings |
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Taxation and social security |
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Accruals and deferred income |
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Creditors: amounts falling due after more than one year
Note |
2020 |
2019 |
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Due after one year |
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Loans and borrowings |
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Creditors due within and after more than one year includes a bank loan totalling £156,250 (2019 £181,250) which is secured by a standard security over one of the company's heritable properties and by a bond and floating charge over all the property or undertaking of the company in favour of Svenska Handelsbanken AB (publ).
Share capital |
Allotted, called up and fully paid shares
2020 |
2019 |
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No. |
£ |
No. |
£ |
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40,000 |
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40,000 |
Loans and borrowings |
2020 |
2019 |
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Non-current loans and borrowings |
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Bank borrowings |
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2020 |
2019 |
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Current loans and borrowings |
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Bank borrowings |
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Kidd Holdings Limited
Notes to the Financial Statements for the Year Ended 31 March 2020
Dividends |
2020 |
2019 |
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£ |
£ |
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Interim dividend of £
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45,000 |
42,000 |
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Events since the balance sheet date and going concern |
The company's subsidiary, James F Kidd & Son Limited is a wholesale supplier of paper, catering disposables, glassware and hygene products.
In March 2020 the government announced a lockdown of all non essential businesses with effect from 23 March 2020 in its response to the Covid-19 pandemic. This applied particularly to the hospitality and tourism sectors in Scotland, lasted for an initial four month period and has been followed by partial and again complete closure of these businesses over the subsequent year. As James F Kidd & Sons Limited is a principal supplier to this sector it has suffered a substantial fall in revenue and profit which has not been matched by government support although it has benefited from grants under the furlough scheme. In response it has also been forced to make a number of redundancies.
Following the Supreme Court’s ruling on business interruption insurance in January 2021, it has submitted a significant claim to its insurers for loss of profit. At this time the validity of the company’s claim has been accepted but it is still in negotiation with the appointed loss adjuster as to the level of claim which will be accepted.
Additionally one of the directors has a large loan from the company. At this time, it is his intention to repay a substantial portion of this loan within the next three months from the sale of a property. It is expected that this in conjunction with a successful outcome to the insurance claim will inject a minimum cash sum of £500,000 into the subsidiary company.
While the subsidiary has incurred losses in the current year the directors are satisfied that it still has net assets and remains solvent without the benefit of insurance proceeds.