Registered number |
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Financial Conduct Authority registered number 688914 |
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Kinnerton Credit Management Limited | |
Report and accounts | |
Contents | |
Page | |
Company information | 1 |
Directors' report | 2 |
Strategic report | 4 |
Independent auditors' report | 5 |
Income statement | 6 |
Statement of comprehensive income | 6 |
Statement of financial position | 7 |
Statement of changes in equity | 8 |
Statement of cash flows | 9 |
Notes to the financial statements | 10 |
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Company Information |
Directors |
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Auditors |
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Chartered Accountants |
25 Farringdon Street |
London |
EC4A 44AB |
Registered number |
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Registered number: |
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Directors' Report | |||||||
The directors present their report and financial statements for the period ended |
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Principal activities | |||||||
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Future developments | |||||||
The company became registered with the Financial Conduct Authority on 1 March 2016 and since that date the company has been able to generate income from its main activity. | |||||||
Directors | |||||||
The following persons served as directors during the period: | |||||||
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Directors' responsibilities |
The directors are responsible for preparing the Strategic report, Directors' report and 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 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 profit or loss of the company for that period. In preparing these financial statements, the directors are required to: | |||||||
● | select suitable accounting policies and then apply these 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 company 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 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 hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. |
Disclosure of information to auditors |
Each person who was a director at the time this report was approved confirms that: | |||||||
● | so far as he is aware, there is no relevant audit information of which the company's auditor is unaware; and | ||||||
● | he has taken all the steps that he ought to have taken as a director in order to make himself aware of any relevant audit information and to establish that the company's auditor is aware of that information. |
This report was approved by the board on |
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M Roberts | |||||||
Director | |||||||
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Strategic Report | |||||||
Principal activities | |||||||
The company was incorporated on 18 March 2015 and its principal activity during the period was preparing to become an authorised Alternative Investment Fund Manager (AIFM). | |||||||
Future developments | |||||||
The company became registered with the Financial Conduct Authority on 1 March 2016 and from 1 April 2016 the company has been able to generate income from its main activity of investment management. Consequently, there is no income for the period ended 31 March 2016, merely expenses incurred in setting up the business. For the year ended 31 March 2017 the company is budgeting for a profit. | |||||||
Principle risks and uncertainties | |||||||
The risks outlined below are those risks and uncertainties that the directors consider material to the Company. They are not presented in any order of priority. There may be other risks that are either currently unknown, or considered by the directors to be immaterial, which could adversely affect the Company's business, results of operation or financial condition. The directors routinely monitor risks that could materially and adversely affect the Company's ability to achieve strategic goals, financial condition and results of operations. Regulatory risk Given the nature of the Company's business streams, there is always a possibility that regulations could change, the Company could provide wrong or mis-leading advice. The compliance officer regularly reviews upcoming legislation and ensures the required changes are put in place on a timely basis. Reputational risk There is a risk that clients could complain and / or claim for compensation if they have cause to believe they have been provided with negligent advice or have experienced poor or suboptimal client administration. The Company has adequate control processes and systems in place, and staff are also suitably qualified and trained such that the risk of complaints and/or claims is minimised. The board continually reviews the existing processes and controls employed by the business to ensure that improvements when identified can be implemented as soon as possible. Reliance on key employees The Company's future success depends on the continued service of senior management and key technical personnel, the retention of which cannot be guaranteed. |
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Dependence on technology The Company may be adversely affected by activities such as system intrusions, service attacks, virus spreading and phishing. The Company has in place data recovery and systems recovery procedures, security measures and business continuity plans in the event of failure or disruption, or damage to, the Company's technology or systems. |
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The Company's operations are highly dependent on technology and advanced information systems and there is a risk that such technology or systems could fail. | |||||||
This report was approved by the board on 13 December 2016 and signed on its behalf. | |||||||
M Roberts | |||||||
Director | |||||||
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Independent auditors' report | ||
to the member of Kinnerton Credit Management Limited | ||
We have audited the financial statements on pages 6 to 15. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland”. | ||
This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in an auditors' report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's members as a body, for our audit work, for this report, or for the opinions we have formed. | ||
Respective responsibilities of directors and auditors | ||
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Scope of the audit of the accounts | ||
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Opinion on the accounts |
In our opinion the accounts: | ||
● | give a true and fair view of the state of the company's affairs as at 31 March 2016 and of its loss for the period then ended; | |
● | 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 matters prescribed by the Companies Act 2006 | ||
In our opinion the information given in the Directors' Report and the Strategic Report for the financial period for which the financial statements are prepared is consistent with the financial statements. | ||
Matters on which we are required to report by exception |
We 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, or returns adequate for our audit have not been received from branches not visited by us; or | |
● | the accounts 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. |
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(Senior Statutory Auditor) | ||
for and on behalf of | ||
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Chartered Accountants | ||
25 Farringdon Street | ||
London | ||
EC4A 44AB | ||
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Statement of Comprehensive Income | ||||||
for the period from 18 March 2015 to |
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Notes | 2016 | |||||
£ | ||||||
Administrative expenses | ( |
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Operating loss | 3 | ( |
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Interest payable | 4 | ( |
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Loss on ordinary activities before taxation | ( |
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Tax on loss on ordinary activities | 5 | - | ||||
Total comprehensive loss for the period | ( |
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The operating loss for the period arises from the company's continuing operations | ||||||
The notes on pages 6 to 15 form part of these financial statements. | ||||||
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Statement of Financial Position | ||||
as at |
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Notes | 2016 | |||
£ | ||||
Current assets | ||||
Debtors | 6 |
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Cash at bank and in hand |
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Creditors: amounts falling due within one year | 7 | ( |
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Net current assets |
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Net assets |
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Capital and reserves | ||||
Called up share capital | 9 |
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Profit and loss account | 10 | ( |
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Total equity |
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The financial statements on pages 6 to 15 were approved by the Board and authorised for issue on 13 December 2016 and signed on its behalf by | ||||
M Roberts | ||||
Director | ||||
Approved by the board on |
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Statement of Changes in Equity | ||||||||||
for the period from 18 March 2015 to |
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Share | Share | Other | Profit | Total | ||||||
capital | premium | reserves | and loss | |||||||
account | ||||||||||
£ | £ | £ | £ | £ | ||||||
At 18 March 2015 | - | - | - | - | - | |||||
Profit for the period | ( |
( |
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Shares issued |
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- |
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At 31 March 2016 |
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- | - | ( |
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Statement of Cash Flows | |||
for the period from 18 March 2015 to |
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Notes | 2016 | ||
£ | |||
Operating activities | |||
Operating profit | (50,469) | ||
Increase in debtors | (9,662) | ||
Increase in creditors | 61,096 | ||
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Interest paid | ( |
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Cash generated by operating activities |
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Financing activities | |||
Proceeds from the issue of shares |
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Cash generated by financing activities |
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Net cash generated | |||
Cash generated by operating activities |
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Cash generated by financing activities |
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Net cash generated |
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Cash and cash equivalents at 18 March | - | ||
Cash and cash equivalents at 31 March | 620,444 | ||
Cash and cash equivalents comprise: | |||
Cash at bank |
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Kinnerton Credit Management Limited | ||||||||
Notes to the Accounts | ||||||||
for the period from 18 March 2015 to 31 March 2016 | ||||||||
1 | Summary of significant accounting policies | |||||||
Basis of preparation | ||||||||
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Turnover | ||||||||
Turnover from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have transferred to the buyer. Turnover from the rendering of services is recognised by reference to the stage of completion of the contract. The stage of completion of a contract is measured by comparing the costs incurred for work performed to date to the total estimated contract costs. |
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Financial assets and financial liabilities are recognised when the company becomes a party to the contractual provisions of the instrument, and are offset only when the company currently has a legally enforceable right to set off the recognised amounts and intends either to settle on a net basis, or to realise the asset and settle the liability simultaneously Financial assets Trade debtors Trade debtors are measured at transaction price (which is usually the invoice price), less any impairment losses for bad and doubtful debts. Loans and other financial assets are initially recognised at transaction price including any transaction costs and subsequently measured at amortised cost determined using the effective interest method, less any impairment losses for bad and doubtful debts. A provision for impairment of trade debtors is established when there is objective evidence that the amounts due will not be collected according to the original terms of the contract. Impairment losses are recognised in profit or loss for the excess of the carrying value of the trade debtor over the present value of the future cash flows discounted using the original effective interest rate. Subsequent reversals of an impairment loss that objectively relate to an event occurring after the impairment loss was recognised, are recognised immediately in profit or loss. |
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Financial liabilities and equity Financial instruments are classified as liabilities and equity instruments 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. Equity instruments Financial instruments classified as equity instruments are recorded at the fair value of the cash or other resources received or receivable, net of direct costs of issuing the equity instruments. Trade creditors Trade creditors are measured at transaction price (which is usually the invoice price). Loans and other financial liabilities are initially recognised at transaction price net of any transaction costs and subsequently measured at amortised cost determined using the effective interest method. Derecognition of financial assets and liabilities A financial asset is derecognised only when the contractual rights to cash flows expire or are settled, or substantially all the risks and rewards of ownership are transferred to another party, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party. A financial liability (or part thereof) is derecognised when the obligation specified in the contract is discharged, cancelled or expires. |
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Taxation | ||||||||
Deferred tax is recognised in respect of all timing differences between the recognition of income and expenses in the financial statements and their inclusion in tax assessments. 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. Deferred tax is measured using the tax rates and laws that have been enacted or substantively enacted by the reporting date and that are expected to apply to the reversal of the timing difference, except for revalued land and investment property where the tax rate that applies to the sale of the asset is used. Current and deferred tax assets and liabilities are not discounted. |
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Foreign currency translation | ||||||||
At the end of each reporting period foreign currency monetary items are translated at the closing rate of exchange. Non-monetary items that are measured at historical cost are translated at the rate ruling at the date of the transaction. All differences are charged to profit or loss. |
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Cash and cash equivalents | ||||||||
Cash and cash equivalents 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. | ||||||||
Going concern | ||||||||
The directors confirm that they are satisfied that the company has adequate resource to continue in business for the foreseeable future. They have taken into account the company's trading performance and have reviewed the cash flow forecasts for at least the next 12 months. Therefore the directors have adopted the going concern basis in preparing the financial statements. | ||||||||
2 | Critical accounting estimates and judgements | |||||||
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Critical areas of judgement | ||||||||
Provisions (ie liabilities of uncertain timing or amount) are recognised when there is an obligation at the reporting date as a result of a past event, it is probable that economic benefit will be transferred to settle the obligation and the amount of the obligation can be estimated reliably. | ||||||||
3 | Operating profit | 2016 | ||||||
£ | ||||||||
This is stated after charging: | ||||||||
Auditors' remuneration for audit services |
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Auditors' remuneration for other services |
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4 | Interest payable | 2016 | ||||||
£ | ||||||||
Bank loans and overdrafts |
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Other loans |
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5 | Taxation | 2016 | ||||||
£ | ||||||||
Analysis of charge in period | ||||||||
Tax on profit on ordinary activities | - | |||||||
Factors affecting tax charge for period | ||||||||
The differences between the tax assessed for the period and the standard rate of corporation tax are explained as follows: | ||||||||
2016 | ||||||||
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Loss on ordinary activities before tax | ( |
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Profit on ordinary activities multiplied by the standard rate of corporation tax | ( |
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Effects of: | ||||||||
Expenses not deductible for tax purposes |
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Current tax charge for period | - | |||||||
6 | Debtors | 2016 | ||||||
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VAT receivable |
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Prepayments and accrued income |
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7 | Creditors: amounts falling due within one year | 2016 | ||||||
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Amounts owed to group undertakings and undertakings in which the company has a participating interest |
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Accruals |
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8 | Financial instruments | 2016 | ||||||
£ | ||||||||
Financial liabilities | ||||||||
Measured at amortised cost | 61,096 | |||||||
61,096 | ||||||||
9 | Share capital | Nominal | 2016 | 2016 | ||||
value | Number | £ | ||||||
Allotted, called up and fully paid: | ||||||||
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10 | Profit and loss account | 2016 | ||||||
£ | ||||||||
At 18 March | - | |||||||
Loss for the period | ( |
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At 31 March | ( |
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11 | Subsequent events | |||||||
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12 | Related party transactions | |||||||
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During the accounting period M J Roberts Associates Limited, a company controlled by M Roberts, provided services the company totalling £2,112. At the balance sheet date £42 was due to M J Roberts Associates Limited. | ||||||||
The largest and smallest group of undertakings that the company is a subsidiary of and is included in the group accounts is Kinnerton Group A/S. | ||||||||
13 | Ultimate parent company | |||||||
The company is now controlled by Kinnerton Group A/S, a company incorporated in Denmark of Hammersgade 6,st.th. 1267 Kobenhavn K, Denmark. | ||||||||
14 | Presentation currency | |||||||
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15 | Legal form of entity and country of incorporation | |||||||
Kinnerton Credit Management Limited is a limited company incorporated in England. | ||||||||
16 | Principal place of business | |||||||
The address of the company's principal place of business and registered office is: | ||||||||
1st Floor, Regency House, Kings Place, Buckhurst Hill, Essex IG9 5EB |