REGISTERED NUMBER: 10808167 (England and Wales) |
GROUP STRATEGIC REPORT, REPORT OF THE DIRECTORS AND |
AUDITED CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022 |
FOR |
KAMMAC HOLDINGS LIMITED |
REGISTERED NUMBER: 10808167 (England and Wales) |
GROUP STRATEGIC REPORT, REPORT OF THE DIRECTORS AND |
AUDITED CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022 |
FOR |
KAMMAC HOLDINGS LIMITED |
KAMMAC HOLDINGS LIMITED (REGISTERED NUMBER: 10808167) |
CONTENTS OF THE CONSOLIDATED FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 31 DECEMBER 2022 |
Page |
Company Information | 1 |
Group Strategic Report | 2 | to | 5 |
Report of the Directors | 6 | to | 8 |
Report of the Independent Auditors | 9 | to | 12 |
Consolidated Statement of Comprehensive Income | 13 |
Consolidated Statement of Financial Position | 14 |
Company Statement of Financial Position | 15 |
Consolidated Statement of Changes in Equity | 16 |
Company Statement of Changes in Equity | 17 |
Consolidated Statement of Cash Flows | 18 |
Notes to the Consolidated Statement of Cash Flows | 19 |
Notes to the Consolidated Financial Statements | 20 | to | 37 |
KAMMAC HOLDINGS LIMITED |
COMPANY INFORMATION |
FOR THE YEAR ENDED 31 DECEMBER 2022 |
DIRECTORS: |
REGISTERED OFFICE: |
BUSINESS ADDRESS: |
REGISTERED NUMBER: |
AUDITORS: |
Chartered accountants & statutory auditors |
Stone House |
Stone Road Business Park |
Stoke-On-Trent |
ST4 6SR |
KAMMAC HOLDINGS LIMITED (REGISTERED NUMBER: 10808167) |
GROUP STRATEGIC REPORT |
FOR THE YEAR ENDED 31 DECEMBER 2022 |
The directors present their strategic report of the company and the group for the year ended 31 December 2022. |
The principal activity of the company is that of a holding company. The principal activities of the group during the year continued to be Warehousing, Distribution, Onsite Logistics and Value Added Services. |
REVIEW OF BUSINESS |
Overall, there has been a 25% increase in turnover during the period, which is a result of both the securement of new opportunities in 2022 and the growth of existing contracts throughout the year. Warehousing was the growth area of the business, whilst Logistics and Pallet Network revenue remained steady during the period, as anticipated. |
Towards the latter part of 2022 the group acquired several well positioned warehouses, providing an additional 872,000 square foot of storage space. This represents an increase of 39% to our overall property estate. The additional space was used to facilitate new key clients for the business and support existing customers who had an increased requirement for warehousing, for the period and beyond. |
Gross Profit has increased by 30.42% resulting in an increase in gross profits between 2021 and 2022 of £14.2m. |
The operating profit margin of the group was 22.98% (2021: 11.42%) which reflects a steady state position after recent rapid growth in prior years. The net profits before taxation increased by £12.36m over the same period for 2021. |
During the period, the employee average headcount increased by 41. The company has invested in attaining additional skilled resource in order to realise future business opportunities. |
The profits in 2022 are reflective of a full year's trading. With the amount of business that is already known to be secured for 2023 and the company's continued desire for new opportunities, it is anticipated that the sales growth and profitability will continue in 2023. |
The business closed the year with a strong balance sheet and healthy cash flow position. |
Development and performance of the business |
The company success is driven by our strength in working closely with our customers and their individual requirements, whilst continually evolving better ways of working. This can be delivered with investments in innovation, people, systems and technology to retain opportunity whilst also assisting in the development of new relationships. |
Contracts which are held are regularly reviewed, particularly with reference to term remaining. Costs are continually monitored with bench marking exercises being undertaken on a regular basis to determine best price / best service which is reflective in the gross profit margin. |
KAMMAC HOLDINGS LIMITED (REGISTERED NUMBER: 10808167) |
GROUP STRATEGIC REPORT |
FOR THE YEAR ENDED 31 DECEMBER 2022 |
PRINCIPAL RISKS AND UNCERTAINTIES |
The business operates and monitors any key principal risks that could be considered material to have an adverse effect on its activities. The Board and Senior Management are able to do this by reviewing operational and financial performance to identify any such risks. This is a key point of discussion in Management meetings throughout the year, and is always high priority as one the main areas for consideration. As well as recognising any new challenges, the group also makes sure it keeps ahead of current best practice within its market sector. |
Credit risk is mitigated by carrying out thorough credit checks prior to working for any potential customers. Credit checks are done through a reputable credit risk agency. From this the group can establish credit limits and ensure that credit terms are set in advance. The business also has an established process for handling overdue accounts, as well as holding a provision for doubtful debts on the balance sheet. |
The group has invested in a robust compliance team that ensures the business adheres to external rules and internal controls. This minimises environmental, health and safety, quality, social and process risks within the business. |
KAMMAC HOLDINGS LIMITED (REGISTERED NUMBER: 10808167) |
GROUP STRATEGIC REPORT |
FOR THE YEAR ENDED 31 DECEMBER 2022 |
SECTION 172(1) STATEMENT |
The directors of the group must act collectively and individually with a set of general duties. |
These duties are detailed in section 172 of the UK Companies Act 2006. The directors and the group are |
committed to ensuring that in all business dealings they have regards to: |
1) The likely consequences of any long-term decisions made by directors and how these are decided: |
The KAMMAC board reviewed the group's strategy, as disclosed in the strategic report, during the year and concluded that it remains appropriate to support the long-term success of the group. |
The annual budgeting process supports short-term planning, which forms part of the overall group strategy. Performance of the group is monitored on a weekly and monthly basis against the annual budget, with decision making during the year cognisant of the budget and overall long-term strategy which is geared towards further growth. |
2) The interest of the group's employees and how these are engaged in the business each year: |
Our people are very important to achieving success as a business and a core component of our business model. We endeavour to recruit the high quality, skilled people and give them the opportunity to be successful with the business. Their individual success in turn ensures that KAMMAC collectively provides the best possible service for our customers. |
KAMMAC supports local employment at all of our respective operational sites, and we have several initiatives in place to train and develop people, including a 'Warehouse to wheels' driver training programme, and KAMMAC also supports staff through our apprenticeship scheme. |
There is an active programme for employee engagement that runs each year, and we have also introduced an in-house quality excellence programme that aims to further enhance the skills of our people and promote a high performance culture. |
KAMMAC has a significant proportion of staff that have been with the group for an extended period, which is a testament to the fact that we are providing a work environment that is positive and |
The Board has ultimate responsibility for ensuring that the group's decisions consider the interests of our employees. |
3) The details of business relationships with customers and suppliers and other key stakeholders and how the directors ensure needs of these are met |
Managing the group's relationships with suppliers and customer is critical in ensuring that KAMMAC delivers on its strategy. Management at all levels are dedicated to ensuring that we maintain an ongoing, expedient and always available dialogue with customers and suppliers. |
There is a total focus on Customer service at all times, and the number of long-term and repeat customers indicates that our responsive, customer focused approach is successful. |
We strive to treat our suppliers in a manner that we would like to be treated ourselves and foster & maintain mutually beneficial relationships in order to achieve sustainable business success. |
4) The impact of the group's trading on the local community and the general environmental impact of the trade: |
KAMMAC seeks to have a positive impact on communities in which it operates by ensuring that all staff act with integrity and respect. Our premises are maintained to a high standard, and security is both visible and professional, which helps to ensure that KAMMAC is a respected part of the local business community. |
KAMMAC HOLDINGS LIMITED (REGISTERED NUMBER: 10808167) |
GROUP STRATEGIC REPORT |
FOR THE YEAR ENDED 31 DECEMBER 2022 |
KAMMAC seeks to minimise the environmental impact on our operations. Further details are provided in the Energy and Carbon report contained within the financial statements. |
5) Details of how the directors maintain the group's reputation and high standards of conduct: |
KAMMAC regularly reviews and updates, where appropriate, its business conduct and ethics policies, and ensures that these are positively communicated to employees, customers and suppliers. Appropriate training is provided to relevant employees on a regular basis to reinforce the Company policies, which includes specific anti-bribery, Modern slavery and equal opportunities policies. KAMMAC's business ethics and conduct policies are approved by the board and is communicated to all relevant stakeholders. |
6) Details of how the directors ensure the need to act fairly between all members |
KAMMAC always seeks to ensure that its communications are transparent, honest and fair, and that I's actions are in accordance with the group's stated strategic aims to promote long-term success of the group. |
All shareholders are involved in the day-to-day strategic direction of the business and have daily interaction with senior management, who are committed to keeping all relevant stakeholders informed via the open, transparent communication structures in place. |
WORKING CAPITAL |
The group meets its day to day working capital requirements through an invoice discounting facility, and cash receipts from customers. These are closely monitored to ensure adherence to agreed credit terms. Stock is regularly reviewed to ensure that the valuations is in line with UK accounting standards, and is deemed fully recoverable. Any obsolete stock that is identified is fully provided for within these financial statements. |
CORPORATE AND SOCIAL RESPONSIBILITY |
The group recognises its responsibilities in terms of equality and human rights towards its employees and individuals involved with the group. To these ends a high priority is given to ethical considerations in supplier and employee selection and partnership. The group has well established codes in respect of employee welfare and respect for the community. The group is aware of its environmental responsibilities, and operates best practices to fulfil these. |
POST BALANCE SHEET EVENTS |
The business has continued to sustain performance at the start of the trading year for 2022, with several key contracts secured to continue throughout the year. |
The business always endeavours to identify any potential risks to activities, and adapt the workplace if required for its employees and processes, to enable continuity. |
The business will continue to make key strategic decisions based on the constant changes which are presented. |
ON BEHALF OF THE BOARD: |
KAMMAC HOLDINGS LIMITED (REGISTERED NUMBER: 10808167) |
REPORT OF THE DIRECTORS |
FOR THE YEAR ENDED 31 DECEMBER 2022 |
The directors present their report with the financial statements of the company and the group for the year ended 31 December 2022. |
DIVIDENDS |
Particulars of recommended dividends are detailed in the notes to the financial statements. |
EVENTS SINCE THE END OF THE YEAR |
Information relating to events since the end of the year is given in the notes to the financial statements. |
DIRECTORS |
The directors shown below have held office during the whole of the period from 1 January 2022 to the date of this report. |
Other changes in directors holding office are as follows: |
EMPLOYMENT OF DISABLED PERSONS |
The group's policy is to recruit disabled workers for those vacancies which they are able to fill. All necessary assistance with initial training course is given once employed and a career plan is developed so as to ensure suitable opportunities for each disabled person. |
ENGAGEMENT WITH EMPLOYEES |
It is the group's policy to consult and discuss with employees on matters likely to affect their interests. |
In the recruitment of staff and their future career development, individuals are considered having regard to their aptitudes and abilities, irrespective of race, sex, marital status or disability. |
STREAMLINED ENERGY AND CARBON REPORTING |
This section includes our mandatory reporting of energy and greenhouse gas emissions for the period 1 January 2022 to 31 December 2022, pursuant to the Companies (Director's Report) and Limited Liability Partnerships (Energy and Carbon Report) Regulations 2018, implementing the government's Streamlined Energy and Carbon Reporting (SECR) policy. |
All conversion factors and fuel properties used in this disclosure have been taken from the 2021 "UK Government Greenhouse Gas Conversion Factors for Company Reporting" published by the Department for Business, Energy & Industrial Strategy (BEIS) and the Department for Environment, Food & Rural Affairs (DEFRA). All greenhouse gas emissions have been expressed in terms of their carbon dioxide equivalence |
We report using a financial control approach to define our organsational boundary. We have reported all material emission sources required by the regulations for which we deem ourselves to be responsible and have maintained records of all source data and calculations. |
As tenants in most of our sites we have limited scope for capital expenditure projects and limited visibility of our energy consumption. |
In 2022 we have built a new warehouse with BREEAM accreditation which has increased the energy efficiency. Also, we continue to request green energy contracts from the site Landlords to reduce the emissions. In the next financial year, ESOS surveys will be completed to look for further consumption-based savings. |
The table below includes total energy consumption (reported as MWh) and carbon produced. |
KAMMAC HOLDINGS LIMITED (REGISTERED NUMBER: 10808167) |
REPORT OF THE DIRECTORS |
FOR THE YEAR ENDED 31 DECEMBER 2022 |
01/12/2021 - 31/12/2021 |
01/12/2022 - 31/12/2022 |
Total Energy Consumption - Used for Emissions Calculations (MWh) |
44,552.69 |
44,255.19 |
Natural Gas Combustion Emissions, Scope 1 (MWh) | 1,822.20 | 931.62 |
Vehicle Fuel Combustion Emissions, Scope 1 (MWh) | 39,183.58 | 39,630.66 |
Electricity Generated Emission, Scope 2 (MWh) | 3,546.91 | 3,692.91 |
Tonnes of carbon produced (indicative) | 10,367.89 | 10,441.13 |
Turnover (£m) | 68 | 84 |
DISCLOSURE IN THE STRATEGIC REPORT |
The company has, in accordance with section 414C(11) of the Companies Act 2006 (Strategic Report and Directors' Report) Regulations 2013 set out in the company's strategic report information required by schedule 7 of the Large and Medium-sized Companies and Groups (Accounts and Reports) Regulations 2008. The strategic report can be found on pages 2-3 of the financial statements. |
STATEMENT OF DIRECTORS' RESPONSIBILITIES |
The directors are responsible for preparing the Group Strategic Report, the Report of the Directors 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 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 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 and the group'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 AS TO DISCLOSURE OF INFORMATION TO AUDITORS |
So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the group's auditors are unaware, and each director has taken all the steps that he or she ought to have taken as a director in order to make himself or herself aware of any relevant audit information and to establish that the group's auditors are aware of that information. |
KAMMAC HOLDINGS LIMITED (REGISTERED NUMBER: 10808167) |
REPORT OF THE DIRECTORS |
FOR THE YEAR ENDED 31 DECEMBER 2022 |
AUDITORS |
The auditors is deemed to have been re-appointed in accordance with section 487 of the Companies Act 2006. |
ON BEHALF OF THE BOARD: |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
KAMMAC HOLDINGS LIMITED |
Opinion |
We have audited the financial statements of Kammac Holdings Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 December 2022 which comprise the Consolidated Statement of Comprehensive Income, Consolidated Statement of Financial Position, Company Statement of Financial Position, Consolidated Statement of Changes in Equity, Company Statement of Changes in Equity, Consolidated Statement of Cash Flows and Notes to the Consolidated Statement of Cash Flows, Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice). |
In our opinion the financial statements: |
- | give a true and fair view of the state of the group's and of the parent company affairs as at 31 December 2022 and of the group's profit for the year 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. |
Basis for opinion |
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the group in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. |
Conclusions relating to going concern |
In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate. |
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the group's and the parent company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue. |
Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report. |
Other information |
The directors are responsible for the other information. The other information comprises the information in the Group Strategic Report and the Report of the Directors, but does not include the financial statements and our Report of the Auditors thereon. |
Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. |
In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard. |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
KAMMAC HOLDINGS LIMITED |
Opinions on other matters prescribed by the Companies Act 2006 |
In our opinion, based on the work undertaken in the course of the audit: |
- | the information given in the Group Strategic Report and the Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and |
- | the Group Strategic Report and the Report of the Directors have been prepared in accordance with applicable legal requirements. |
Matters on which we are required to report by exception |
In the light of the knowledge and understanding of the group and the parent company and its environment obtained in the course of the audit, we have not identified material misstatements in the Group Strategic Report or the Report of the Directors. |
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 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. |
Responsibilities of directors |
As explained more fully in the Statement of Directors' Responsibilities set out on page seven, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. |
In preparing the financial statements, the directors are responsible for assessing the group's and the parent company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the group or the parent company or to cease operations, or have no realistic alternative but to do so. |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
KAMMAC HOLDINGS LIMITED |
Auditors' responsibilities for the audit of the financial statements |
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue a Report of the Auditors that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements. |
The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below: |
We identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and then design and perform audit procedures responsive to those risks, including obtaining audit evidence that is sufficient and appropriate to provide a basis for our opinion. |
Identifying and assessing potential risks related to irregularities |
In identifying and assessing risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, we considered the following: |
- the nature of the industry and sector, control environment and business performance including the design of the company's remuneration policies, key drivers for directors' remuneration, bonus levels and performance targets; |
- results of our enquiries of management about their own identification and assessment of the risks of irregularities; |
- any matters we identified having obtained and reviewed the group's documentation of their policies and procedures relating to: |
- Identifying, evaluating and complying with laws and regulations and whether they were aware of any instances of noncompliance; |
- detecting and responding to the risks of fraud and whether they have knowledge of any actual, suspected or alleged fraud; |
- the internal controls established to mitigate risks of fraud or non-compliance with laws and regulations; |
- the matters discussed among the audit engagement team regarding how and where fraud might occur in the financial statements and any potential indicators of fraud. |
Based on this approach, we were able to assess the Group risks and ensure the risks were considered throughout all areas of audit testing, across all group companies. The audit team was professionally sceptical throughout the audit and remained alert for inaccurate or misleading information. |
Audit response to risks identified |
As a result of performing the above, we did not identify any key audit matters related to the potential risk of fraud or irregularities. Our procedures to identify any potential fraud or irregularities are as follows: |
- reviewing the financial statement disclosures and testing to supporting documentation to assess compliance with provisions of relevant laws and regulations described as having a direct effect on the financial statements; |
- enquiring of management concerning actual and potential litigation and claims; |
- performing analytical procedures to identify any unusual or unexpected relationships that may indicate risks of material misstatement due to fraud; |
- obtained an understanding of provisions and held discussions with management to understand the basis of recognition or non-recognition of tax provisions; and |
- in addressing the risk of fraud through management override of controls, testing the appropriateness of journal entries and other adjustments; assessing whether the judgements made in making accounting estimates are indicative of a potential bias; and evaluating the business rationale of any significant transactions that are unusual or outside the normal course of business. |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
KAMMAC HOLDINGS LIMITED |
Audit testing was completed on a targeted sample basis based on our assessment of risk and materiality. Due to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material misstatements in the financial statements, even though we have properly planned and performed our audit in accordance with auditing standards. For example, as with any audit, there remained a higher risk of non-detection of irregularities, as these may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal controls. We are not responsible for preventing fraud or non-compliance with laws and regulations and cannot be expected to detect all fraud and non-compliance with laws and regulations. |
As part of an audit in accordance with ISAs (UK), we exercise professional judgement and maintain professional scepticism throughout the audit. We also: |
- | Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. |
- | Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the group's internal control. |
- | Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the directors. |
- | Conclude on the appropriateness of the directors' use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the group or the parent company's ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our Report of the Auditors to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our Report of the Auditors. However, future events or conditions may cause the group or the parent company to cease to continue as a going concern. |
- | Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation. |
- | Obtain sufficient appropriate audit evidence regarding the financial information of the entities or business activities within the group to express and opinion on the consolidated financial statements. |
We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit. |
Use of our report |
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 a Report of the Auditors 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. |
for and on behalf of |
Chartered accountants & statutory auditors |
Stone House |
Stone Road Business Park |
Stoke-On-Trent |
ST4 6SR |
KAMMAC HOLDINGS LIMITED (REGISTERED NUMBER: 10808167) |
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME |
FOR THE YEAR ENDED 31 DECEMBER 2022 |
31.12.22 | 31.12.21 |
Notes | £ | £ |
TURNOVER | 4 | 84,221,467 | 67,609,328 |
Cost of sales | (37,511,474 | ) | (35,108,371 | ) |
GROSS PROFIT | 46,709,993 | 32,500,957 |
Administrative expenses | (27,364,704 | ) | (25,045,818 | ) |
19,345,289 | 7,455,139 |
Other operating income | 11,995 | 267,392 |
OPERATING PROFIT | 6 | 19,357,284 | 7,722,531 |
Interest receivable and similar income | 14,890 | 238 |
19,372,174 | 7,722,769 |
Interest payable and similar expenses | 8 | (155,891 | ) | (862,164 | ) |
PROFIT BEFORE TAXATION | 19,216,283 | 6,860,605 |
Tax on profit | 9 | (3,896,236 | ) | (1,471,486 | ) |
PROFIT FOR THE FINANCIAL YEAR |
OTHER COMPREHENSIVE INCOME | - | - |
TOTAL COMPREHENSIVE INCOME FOR THE YEAR |
15,320,047 |
5,389,119 |
Profit attributable to: |
Owners of the parent | 15,065,929 | 5,389,119 |
Non-controlling interests | 254,118 | - |
15,320,047 | 5,389,119 |
Total comprehensive income attributable to: |
Owners of the parent | (892,296 | ) | - |
Non-controlling interests | 892,296 | - |
KAMMAC HOLDINGS LIMITED (REGISTERED NUMBER: 10808167) |
CONSOLIDATED STATEMENT OF FINANCIAL POSITION |
31 DECEMBER 2022 |
31.12.22 | 31.12.21 |
Notes | £ | £ |
FIXED ASSETS |
Intangible assets | 12 | 8,276,874 | 8,694,196 |
Tangible assets | 13 | 8,079,131 | 5,213,675 |
Investments | 14 | - | - |
Investment property | 15 | 258,101 | 258,101 |
16,614,106 | 14,165,972 |
CURRENT ASSETS |
Stocks | 16 | 96,926 | 123,728 |
Debtors | 17 | 32,608,276 | 25,881,849 |
Cash at bank and in hand | 9,832,050 | 4,272,566 |
42,537,252 | 30,278,143 |
CREDITORS |
Amounts falling due within one year | 18 | (23,397,653 | ) | (21,948,874 | ) |
NET CURRENT ASSETS | 19,139,599 | 8,329,269 |
TOTAL ASSETS LESS CURRENT LIABILITIES |
35,753,705 |
22,495,241 |
CREDITORS |
Amounts falling due after more than one year |
19 |
(6,542,587 |
) |
(9,179,777 |
) |
PROVISIONS FOR LIABILITIES | 23 | (1,672,012 | ) | (617,217 | ) |
NET ASSETS | 27,539,106 | 12,698,247 |
CAPITAL AND RESERVES |
Called up share capital | 24 | 2,009,999 | 10,000 |
Share premium | 25 | 3,541,560 | 3,541,560 |
Retained earnings | 25 | 21,673,332 | 9,146,687 |
SHAREHOLDERS' FUNDS | 27,224,891 | 12,698,247 |
NON-CONTROLLING INTERESTS | 26 | 314,215 | - |
TOTAL EQUITY | 27,539,106 | 12,698,247 |
The financial statements were approved by the Board of Directors and authorised for issue on 29 September 2023 and were signed on its behalf by: |
L J Olson - Director |
KAMMAC HOLDINGS LIMITED (REGISTERED NUMBER: 10808167) |
COMPANY STATEMENT OF FINANCIAL POSITION |
31 DECEMBER 2022 |
31.12.22 | 31.12.21 |
Notes | £ | £ |
FIXED ASSETS |
Intangible assets | 12 |
Tangible assets | 13 |
Investments | 14 |
Investment property | 15 |
CURRENT ASSETS |
Debtors | 17 |
Cash at bank |
CREDITORS |
Amounts falling due within one year | 18 | ( |
) | ( |
) |
NET CURRENT ASSETS |
TOTAL ASSETS LESS CURRENT LIABILITIES |
PROVISIONS FOR LIABILITIES | 23 | ( |
) |
NET ASSETS |
CAPITAL AND RESERVES |
Called up share capital | 24 |
Share premium | 25 |
Retained earnings | 25 |
SHAREHOLDERS' FUNDS |
Company's profit for the financial year | 9,285,632 | 5,178,866 |
The financial statements were approved by the Board of Directors and authorised for issue on |
KAMMAC HOLDINGS LIMITED (REGISTERED NUMBER: 10808167) |
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY |
FOR THE YEAR ENDED 31 DECEMBER 2022 |
Called up |
share | Retained | Share |
capital | earnings | premium |
£ | £ | £ |
Balance at 1 January 2021 | 10,000 | 4,383,737 | 3,541,560 |
Changes in equity |
Dividends | - | (626,169 | ) | - |
Total comprehensive income | - | 5,389,119 | - |
Balance at 31 December 2021 | 10,000 | 9,146,687 | 3,541,560 |
Changes in equity |
Issue of share capital | 1,999,999 | - | - |
Dividends | - | (1,901,107 | ) | - |
Total comprehensive income | - | 14,427,752 | - |
Balance at 31 December 2022 | 2,009,999 | 21,673,332 | 3,541,560 |
Non-controlling | Total |
Total | interests | equity |
£ | £ | £ |
Balance at 1 January 2021 | 7,935,297 | - | 7,935,297 |
Changes in equity |
Dividends | (626,169 | ) | - | (626,169 | ) |
Total comprehensive income | 5,389,119 | - | 5,389,119 |
Balance at 31 December 2021 | 12,698,247 | - | 12,698,247 |
Changes in equity |
Issue of share capital | 1,999,999 | - | 1,999,999 |
Dividends | (1,901,107 | ) | (578,081 | ) | (2,479,188 | ) |
Total comprehensive income | 14,427,752 | 892,296 | 15,320,048 |
Balance at 31 December 2022 | 27,224,891 | 314,215 | 27,539,106 |
KAMMAC HOLDINGS LIMITED (REGISTERED NUMBER: 10808167) |
COMPANY STATEMENT OF CHANGES IN EQUITY |
FOR THE YEAR ENDED 31 DECEMBER 2022 |
Called up |
share | Retained | Share | Total |
capital | earnings | premium | equity |
£ | £ | £ | £ |
Balance at 1 January 2021 |
Changes in equity |
Dividends | - | ( |
) | - | ( |
) |
Total comprehensive income | - | - |
Balance at 31 December 2021 |
Changes in equity |
Issue of share capital | - |
Dividends | - | ( |
) | - | ( |
) |
Total comprehensive income | - | - |
Balance at 31 December 2022 |
KAMMAC HOLDINGS LIMITED (REGISTERED NUMBER: 10808167) |
CONSOLIDATED STATEMENT OF CASH FLOWS |
FOR THE YEAR ENDED 31 DECEMBER 2022 |
31.12.22 | 31.12.21 |
Notes | £ | £ |
Cash flows from operating activities |
Cash generated from operations | 1 | 12,249,420 | 7,705,773 |
Interest paid | (130,523 | ) | (821,970 | ) |
Interest element of hire purchase payments paid |
(25,368 |
) |
(40,194 |
) |
Tax paid | (1,329,597 | ) | (1,488,304 | ) |
Net cash from operating activities | 10,763,932 | 5,355,305 |
Cash flows from investing activities |
Purchase of tangible fixed assets | (5,472,917 | ) | (3,057,883 | ) |
Sale of tangible fixed assets | 701,827 | 113,428 |
Sale of fixed asset investments | - | 10,000 |
Interest received | 14,890 | 238 |
Net cash from investing activities | (4,756,200 | ) | (2,934,217 | ) |
Cash flows from financing activities |
Loan repayments in year | (34,438 | ) | (37,708 | ) |
Capital repayments in year | (393,556 | ) | 139,286 |
Amount introduced by directors | 2,148,670 | 547,669 |
Amount withdrawn by directors | (1,689,735 | ) | (409,111 | ) |
Share issue | 1,999,999 | - |
Equity dividends paid | (1,901,107 | ) | (626,169 | ) |
Dividends paid to minority interests | (578,081 | ) | - |
Net cash from financing activities | (448,248 | ) | (386,033 | ) |
Increase in cash and cash equivalents | 5,559,484 | 2,035,055 |
Cash and cash equivalents at beginning of year |
2 |
4,272,566 |
2,237,511 |
Cash and cash equivalents at end of year |
2 |
9,832,050 |
4,272,566 |
KAMMAC HOLDINGS LIMITED (REGISTERED NUMBER: 10808167) |
NOTES TO THE CONSOLIDATED STATEMENT OF CASH FLOWS |
FOR THE YEAR ENDED 31 DECEMBER 2022 |
1. | RECONCILIATION OF PROFIT FOR THE FINANCIAL YEAR TO CASH GENERATED FROM OPERATIONS |
31.12.22 | 31.12.21 |
£ | £ |
Profit for the financial year | 15,320,047 | 5,389,119 |
Depreciation charges | 2,421,238 | 1,992,812 |
Profit on disposal of fixed assets | (98,283 | ) | (7,966 | ) |
Finance costs | 155,891 | 862,164 |
Finance income | (14,890 | ) | (238 | ) |
Taxation | 3,896,236 | 1,471,486 |
21,680,239 | 9,707,377 |
Decrease in stocks | 26,802 | 5,623 |
Increase in trade and other debtors | (6,726,425 | ) | (4,904,433 | ) |
(Decrease)/increase in trade and other creditors | (2,731,196 | ) | 2,897,206 |
Cash generated from operations | 12,249,420 | 7,705,773 |
2. | CASH AND CASH EQUIVALENTS |
The amounts disclosed on the Statement of Cash Flows in respect of cash and cash equivalents are in respect of these Statement of Financial Position amounts: |
Year ended 31 December 2022 |
31.12.22 | 1.1.22 |
£ | £ |
Cash and cash equivalents | 9,832,050 | 4,272,566 |
Year ended 31 December 2021 |
31.12.21 | 1.1.21 |
£ | £ |
Cash and cash equivalents | 4,272,566 | 2,237,511 |
3. | ANALYSIS OF CHANGES IN NET FUNDS |
At 1.1.22 | Cash flow | At 31.12.22 |
£ | £ | £ |
Net cash |
Cash at bank and in hand | 4,272,566 | 5,559,484 | 9,832,050 |
4,272,566 | 5,559,484 | 9,832,050 |
Debt |
Finance leases | (896,707 | ) | 393,556 | (503,151 | ) |
Debts falling due within 1 year | (34,438 | ) | 25,555 | (8,883 | ) |
Debts falling due after 1 year | (149,883 | ) | 8,883 | (141,000 | ) |
(1,081,028 | ) | 427,994 | (653,034 | ) |
Total | 3,191,538 | 5,987,478 | 9,179,016 |
KAMMAC HOLDINGS LIMITED (REGISTERED NUMBER: 10808167) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 31 DECEMBER 2022 |
1. | STATUTORY INFORMATION |
Kammac Holdings Limited is a |
The presentation currency of the financial statements is the Pound Sterling (£). |
2. | STATEMENT OF COMPLIANCE |
These financial statements have been prepared in accordance with Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" and the Companies Act 2006. |
3. | ACCOUNTING POLICIES |
BASIS OF PREPARING THE FINANCIAL STATEMENTS |
The accounts have been prepared under the going concern basis. |
FINANCIAL REPORTING STANDARD 102 - REDUCED DISCLOSURE EXEMPTIONS |
The group has taken advantage of the following disclosure exemption in preparing these financial statements, as permitted by FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland": |
• | the requirements of paragraphs 11.42, 11.44, 11.45, 11.47, 11.48(a)(iii), 11.48(a)(iv), 11.48(b) and 11.48(c). |
BASIS OF CONSOLIDATION |
The financial statements consolidate the financial statements of Kammac Holdings Limited and all of its subsidiary undertakings. |
The results of subsidiaries acquired or disposed of during the period are included from or to the date that control passes. |
The parent company has applied the exemption contained in section 408 of the Companies Act 2006 and has not presented its individual profit and loss account. |
KAMMAC HOLDINGS LIMITED (REGISTERED NUMBER: 10808167) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2022 |
3. | ACCOUNTING POLICIES - continued |
SIGNIFICANT JUDGEMENTS AND ESTIMATES |
In the application of the company's accounting policies, the directors are 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. |
In categorising leases as finance leases or operating leases, management make judgements as to whether the significant risk and rewards of ownership have transferred to the company. |
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. |
(i) Valuation of investment property |
As described in the notes to the financial statements, the investment properties are stated in the balance sheet at fair value, based on the valuation performed by the directors. The directors are of the opinion that the year-end valuation is not materially different to current market prices observed. |
Investment properties have been recognised at fair value by the directors and they are of the opinion that there has been no material change since 31 December 2022. |
INVESTMENTS |
Fixed asset investments are initially recorded at cost, and subsequently stated at cost less any accumulated impairment losses. |
KAMMAC HOLDINGS LIMITED (REGISTERED NUMBER: 10808167) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2022 |
3. | ACCOUNTING POLICIES - continued |
REVENUE RECOGNITION |
Turnover is measured at the fair value of the consideration received or receivable and represents amounts receivable for goods supplied and services rendered, in the normal course of business, and is shown net of Value Added Tax and other sales related taxes. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates. |
Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have transferred to the buyer, usually on despatch of the goods, the amount of revenue can be measured reliably, it is probable that the associated economic benefits will flow to the entity, and the costs incurred or to be incurred in respect of the transactions can be measured reliably. |
GOODWILL |
Goodwill arises on business acquisitions and represents the excess of the cost of the acquisition over the company's interest in the net amount of the identifiable assets, liabilities and contingent liabilities of the acquired business. |
Goodwill is measured at cost less accumulated amortisation and accumulated impairment losses. It is amortised on a straight-line basis over its useful life. Where a reliable estimate of the useful life of goodwill or intangible assets cannot be made, the life is presumed not to exceed five years. |
Amortisation |
Amortisation is calculated so as to write off the cost of an asset, less its estimated residual value, over the useful economic life of that asset as follow: |
Goodwill - 4% straight line |
If there is an indication that there has been a significant change in amortisation rate, useful life or residual value of an intangible asset, the amortisation is revised prospectively to reflect the new estimates. |
KAMMAC HOLDINGS LIMITED (REGISTERED NUMBER: 10808167) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2022 |
3. | ACCOUNTING POLICIES - continued |
TANGIBLE FIXED ASSETS |
Tangible assets are initially recorded at cost, and subsequently stated at cost less any accumulated depreciation and impairment losses. Any tangible assets carried at revalued amounts are recorded at fair value at the date of revaluation less any subsequent accumulated depreciation and subsequent accumulated impairment losses. |
An increase in the carrying amount of an asset as a result of a revaluation, is recognised in other comprehensive income and accumulated in equity, except to the extent it reverses a revaluation decrease of the same asset previously recognised in other comprehensive income to the extent of any previously recognised revaluation increase accumulated in equity in respect of that asset. Where a revaluation decrease exceeds the accumulated revaluation gains accumulated in equity in respect of that asset, the excess shall be recognised in profit or loss. |
Depreciation |
Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life. |
Short leasehold - straight line over the life of the lease |
Plant and machinery - 10% - 20% straight line |
Fixture and fittings - 20% straight line |
Motor vehicles - 8% - 33% straight line |
Impairment of Fixed Assets |
A review for indicators of impairment is carried out at each reporting date, with recoverable amount being estimated where such indicators exist. Where the carrying value exceeds the recoverable amount, the asset is impaired accordingly. Prior impairments are also reviewed for possible reversal at each reporting date. |
For the purpose of impairment testing, when it is not possible to estimate the recoverable amount of an individual asset, an estimate is made of the recoverable amount of the cash- generating unit to which the asset belongs. The cash- generating unit is the smallest identifiable group of assets that includes the asset and generates cash inflows that largely independent of the cash inflows from other assets or group of assets. |
For impairment of goodwill, the goodwill acquired in a business combination is, from the acquisition date, allocated to each of the cash-generating units that are expected to benefit from the synergies of the combination, irrespective of whether other assets or liabilities of the company are assigned to those units. |
INVESTMENT PROPERTY |
Investment property is shown at most recent valuation. Any aggregate surplus or deficit arising from changes in fair value is recognised in profit or loss. |
STOCKS |
Stocks are measured at the lower of cost and estimated selling price less costs to complete and sell. Cost includes all costs of purchase, costs of conversion and other costs incurred in bringing the stock to its present location and condition. |
At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss. |
KAMMAC HOLDINGS LIMITED (REGISTERED NUMBER: 10808167) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2022 |
3. | ACCOUNTING POLICIES - continued |
FINANCIAL INSTRUMENTS |
A financial asset or a financial liability is recognised only when the entity becomes a party to the contractual provisions of the instrument. |
Basic financial instruments are initially recognised at the transaction price, unless the arrangement constitutes a financing transaction, where it is recognised at the present value of the future payments discounted at a market rate of interest for a similar debt instrument. |
Financial assets that are measured at cost or amortised cost are reviewed for objective evidence of impairment at the end of each reporting date. If there is objective evidence of impairment, an impairment loss is recognised in profit or loss immediately. |
For all equity instruments regardless of significance, and other financial assets that are individually significant, these are assessed individually for impairment. Other financial assets are either assessed individually or grouped on the basis of similar credit risk characteristics. |
TAXATION |
Taxation for the year comprises current and deferred tax. Tax is recognised in the Consolidated Statement of Comprehensive Income, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. |
Current or deferred taxation assets and liabilities are not discounted. |
Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the statement of financial position date. |
DEFERRED TAX |
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the statement of financial position date. |
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. |
FOREIGN CURRENCIES |
Assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the statement of financial position date. Transactions in foreign currencies are translated into sterling at the rate of exchange ruling at the date of transaction. Exchange differences are taken into account in arriving at the operating result. |
KAMMAC HOLDINGS LIMITED (REGISTERED NUMBER: 10808167) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2022 |
3. | ACCOUNTING POLICIES - continued |
HIRE PURCHASE AND LEASING COMMITMENTS |
Assets held under finance leases are recognised in the statement of financial position as assets and liabilities at the lower of the fair value of the assets and the present value of the minimum lease payments, which is determined at the inception of the lease term. Any initial direct costs of the lease are added to the amount recognised as an asset. |
Lease payments are apportioned between the finance charges and reduction of the outstanding lease liability using the effective interest method. Finance charges are allocated to each period so as to produce a constant rate of interest on the remaining balance of the liability. |
Operating leases |
Lease payments are recognised as an expense over the lease term on a straight-line basis. The aggregate benefit of lease incentives is recognised as a reduction to expense over the lease term, on a straight-line basis. |
PENSION COSTS AND OTHER POST-RETIREMENT BENEFITS |
The group operates a defined contribution pension scheme. Contributions payable to the group's pension scheme are charged to profit or loss in the period to which they relate. |
EMPLOYEE BENEFITS |
The costs of short-term employee benefits are recognised as a liability and an expense. |
The cost of any unused holiday entitlement is recognised in the period in which the employee's services are received. |
Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits. |
EMPLOYEE BENEFIT TRUST |
The directors are of the opinion that the provision of UITF 32 applies to the company. |
Following the implementation of FRS102, the Accounting Council decided to retain the accounting treat from UITF Abstract 32. |
Consequently, the directors have reported the substance of transactions with the Kammac Limited Employee Benefit Trust. |
Assets held in the Kammac Limited Employee Benefit Trust are recognised as assets of the company and the group until they vest unconditionally in identified beneficiaries. |
PROVISIONS |
Provisions are recognised when the entity has an obligation at the reporting date as a result of a past events, it is probable that the entity will be required to transfer economic benefits in settlement and the amount of the obligation can be estimated reliably. Provisions are recognised as a liability in the statement of financial position and the amount of the provision as an expense. |
Provisions are initially measured at the best estimate of the amount required to settle the obligation at the reporting date and subsequently reviewed at each reporting date and adjusted to reflect the current best estimate of the amount that would be required to settle the obligation. Any adjustments to the amounts previously recognised are recognised in profit or loss unless the provision was originally recognised as part of the cost of an asset. When a provision is measured at the present value of the amount expected to be required to settle the obligation, the unwinding of the discount is recognised as a finance cost in profit or loss in the period it arises. |
KAMMAC HOLDINGS LIMITED (REGISTERED NUMBER: 10808167) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2022 |
4. | TURNOVER |
The turnover and profit before taxation are attributable to the principal activities of the group. |
An analysis of turnover by geographical market is given below: |
31.12.22 | 31.12.21 |
£ | £ |
United Kingdom | 82,565,578 | 65,628,541 |
Europe | 1,484,930 | 1,800,231 |
United States of America | 170,959 | 180,556 |
84,221,467 | 67,609,328 |
5. | EMPLOYEES AND DIRECTORS |
31.12.22 | 31.12.21 |
£ | £ |
Wages and salaries | 16,215,764 | 12,859,778 |
Social security costs | 1,697,679 | 1,170,930 |
Other pension costs | 249,685 | 232,747 |
18,163,128 | 14,263,455 |
The average number of employees during the year was as follows: |
31.12.22 | 31.12.21 |
Distribution staff | 375 | 354 |
Management staff | 130 | 110 |
31.12.22 | 31.12.21 |
£ | £ |
Directors' remuneration | 38,916 | 35,098 |
Amounts of £NIL (2021: £500,000) were contributed to the director's pension scheme during the year. |
6. | OPERATING PROFIT |
The operating profit is stated after charging/(crediting): |
31.12.22 | 31.12.21 |
£ | £ |
Hire of plant and machinery | 19,852,177 | 13,488,106 |
Other operating leases | 268,148 | 860,337 |
Depreciation - owned assets | 2,003,917 | 1,575,491 |
Profit on disposal of fixed assets | (98,283 | ) | (7,966 | ) |
Goodwill amortisation | 417,322 | 417,321 |
Foreign exchange differences | (60,281 | ) | - |
KAMMAC HOLDINGS LIMITED (REGISTERED NUMBER: 10808167) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2022 |
7. | AUDITORS' REMUNERATION |
31.12.22 | 31.12.21 |
£ | £ |
Fees payable to the company's auditors and their associates for the audit of the company's financial statements |
30,000 |
15,000 |
8. | INTEREST PAYABLE AND SIMILAR EXPENSES |
31.12.22 | 31.12.21 |
£ | £ |
Bank loan interest | 115,093 | 69,130 |
Interest payable | 15,430 | 752,840 |
Hire purchase interest | 25,368 | 40,194 |
155,891 | 862,164 |
9. | TAXATION |
Analysis of the tax charge |
The tax charge on the profit for the year was as follows: |
31.12.22 | 31.12.21 |
£ | £ |
Current tax: |
UK corporation tax | 2,841,441 | 1,181,466 |
Deferred tax | 1,054,795 | 290,020 |
Tax on profit | 3,896,236 | 1,471,486 |
RECONCILIATION OF TOTAL TAX CHARGE INCLUDED IN PROFIT AND LOSS |
The tax assessed for the year is higher than the standard rate of corporation tax in the UK. The difference is explained below: |
31.12.22 | 31.12.21 |
£ | £ |
Profit before tax | 19,216,283 | 6,860,605 |
Profit multiplied by the standard rate of corporation tax in the UK of 19 % (2021 - 19 %) |
3,651,094 |
1,303,515 |
Effects of: |
Expenses not deductible for tax purposes | 106,437 | 35,870 |
Depreciation in excess of capital allowances | 137,955 | 132,101 |
Utilisation of tax losses | 750 | - |
Total tax charge | 3,896,236 | 1,471,486 |
10. | INDIVIDUAL STATEMENT OF COMPREHENSIVE INCOME |
As permitted by Section 408 of the Companies Act 2006, the Statement of Comprehensive Income of the parent company is not presented as part of these financial statements. |
KAMMAC HOLDINGS LIMITED (REGISTERED NUMBER: 10808167) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2022 |
11. | DIVIDENDS |
31.12.22 | 31.12.21 |
£ | £ |
Ordinary C shares of 1p each |
Interim | - | 43,977 |
Ordinary D shares of 1p each |
Interim | 12,402 | 12,725 |
Ordinary E shares of 1p each |
Interim | 14,468 | 9,647 |
Ordinary F shares of 1p each |
Interim | 10,067 | 8,650 |
Ordinary A shares of £1 each |
Interim | 932,085 | 275,585 |
Ordinary B shares of £1 each |
Interim | 932,085 | 275,585 |
1,901,107 | 626,169 |
12. | INTANGIBLE FIXED ASSETS |
Group |
Goodwill |
£ |
COST |
At 1 January 2022 |
and 31 December 2022 | 10,433,035 |
AMORTISATION |
At 1 January 2022 | 1,738,839 |
Amortisation for year | 417,322 |
At 31 December 2022 | 2,156,161 |
NET BOOK VALUE |
At 31 December 2022 | 8,276,874 |
At 31 December 2021 | 8,694,196 |
The company has no intangible assets. |
KAMMAC HOLDINGS LIMITED (REGISTERED NUMBER: 10808167) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2022 |
13. | TANGIBLE FIXED ASSETS |
Group |
Fixtures |
Short | Plant and | and | Motor |
leasehold | machinery | fittings | vehicles | Totals |
£ | £ | £ | £ | £ |
COST |
At 1 January 2022 | 530,457 | 354,114 | 2,996,052 | 2,710,839 | 6,591,462 |
Additions | - | 472,158 | 1,047,273 | 3,953,486 | 5,472,917 |
Disposals | - | (972,774 | ) | (256,699 | ) | (1,206,110 | ) | (2,435,583 | ) |
At 31 December 2022 | 530,457 | (146,502 | ) | 3,786,626 | 5,458,215 | 9,628,796 |
DEPRECIATION |
At 1 January 2022 | 530,457 | 184,162 | 1,016,218 | (353,050 | ) | 1,377,787 |
Charge for year | - | 69,168 | 685,611 | 1,249,138 | 2,003,917 |
Eliminated on disposal | - | (968,936 | ) | (245,082 | ) | (618,021 | ) | (1,832,039 | ) |
At 31 December 2022 | 530,457 | (715,606 | ) | 1,456,747 | 278,067 | 1,549,665 |
NET BOOK VALUE |
At 31 December 2022 | - | 569,104 | 2,329,879 | 5,180,148 | 8,079,131 |
At 31 December 2021 | - | 169,952 | 1,979,834 | 3,063,889 | 5,213,675 |
Finance leases and hire purchase contracts |
Included within the carrying value of tangible assets are the following amounts relating to assets |
held under finance leases or hire purchase agreements: |
Group and Company |
Fixtures and fittings |
Plant and machinery |
Motorvehicles |
Total |
At 31 December 2022 | 169,763 | 8,311 | 655,351 | 833,425 |
At 31 December 2021 | 237,264 | 10,389 | 697,498 | 945,151 |
Company |
Motor |
vehicles |
£ |
COST |
Additions |
At 31 December 2022 |
NET BOOK VALUE |
At 31 December 2022 |
KAMMAC HOLDINGS LIMITED (REGISTERED NUMBER: 10808167) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2022 |
14. | FIXED ASSET INVESTMENTS |
Company |
Shares in |
group |
undertaking |
£ |
COST |
At 1 January 2022 |
and 31 December 2022 |
NET BOOK VALUE |
At 31 December 2022 |
At 31 December 2021 |
Subsidiaries, associates and other investments |
Class of share |
Percentage of shares held |
Subsidiary undertakings |
Kammac Limited | Ordinary | 100 |
Kammac Warehousing Limited | Ordinary | 100 |
CapitalTeam Limited | Ordinary | 100 |
Brewery Support Limited | Ordinary | 100 |
Raw Extract Limited | Ordinary | 100 |
Stripes Support Services Limited | Ordinary | 100 |
The registered office for Kammac Limited is DPC, Stone House, Stone Road, Stoke On Trent, Staffordshire, ST4 6SR. The principal activity of the company during the year was that of facilities management. |
The registered office for Kammac Warehousing Limited is DPC, Stone House, Stone Road, Stoke On Trent, Staffordshire, ST4 6SR. The principal activity of the company during the year was that of warehousing and storage facility management. |
The registered office for CapitalTeam Limited, Brewery Support Limited and Raw Extract Limited is DPC, Stone House, Stone Road, Stoke On Trent, Staffordshire, ST4 6SR. All of the companies were dormant during the year. |
The registered office for Stripes Support Services Limited is Gratton Business Park, Unit 18, Clonshaugh Business & Technology Park, Dublin, D17 H680. The company was dormant during the year. |
KAMMAC HOLDINGS LIMITED (REGISTERED NUMBER: 10808167) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2022 |
15. | INVESTMENT PROPERTY |
Group |
Total |
£ |
FAIR VALUE |
At 1 January 2022 |
and 31 December 2022 | 258,101 |
NET BOOK VALUE |
At 31 December 2022 | 258,101 |
At 31 December 2021 | 258,101 |
Company |
Total |
£ |
FAIR VALUE |
At 1 January 2022 |
and 31 December 2022 |
NET BOOK VALUE |
At 31 December 2022 |
At 31 December 2021 |
The directors consider the investment properties to be stated at fair value as at 31 December 2022. |
In respect of tangible assets held at valuation, the aggregate cost, depreciation and carrying amount that would have been recognised if the assets had been carried under the historical cost model are: Aggregate cost £258,101 (2021: £258,101), Aggregate depreciation £nil (2021: £nil) and carrying value £258,101 (2021: £258,101). |
16. | STOCKS |
Group |
31.12.22 | 31.12.21 |
£ | £ |
Finished goods | 96,926 | 123,728 |
17. | DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
Group | Company |
31.12.22 | 31.12.21 | 31.12.22 | 31.12.21 |
£ | £ | £ | £ |
Trade debtors | 22,672,353 | 20,111,846 |
Other debtors | 4,168,322 | 189,903 |
Called up share capital not paid | 10,001 | 10,001 |
Prepayments | 5,757,600 | 5,570,099 |
32,608,276 | 25,881,849 |
KAMMAC HOLDINGS LIMITED (REGISTERED NUMBER: 10808167) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2022 |
17. | DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR - continued |
Included within other debtors are other loans which consist of loans made to other current and former employees of the company of £50,000 (2021: £50,000) |
The loans held by the Employee Benefit Trust are for the benefit of those qualifying employees only. |
18. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
Group | Company |
31.12.22 | 31.12.21 | 31.12.22 | 31.12.21 |
£ | £ | £ | £ |
Other loans (see note 20) | 8,883 | 34,438 |
Hire purchase contracts (see note 21) | 200,704 | 389,507 |
Trade creditors | 4,302,470 | 4,807,083 |
Amounts owed to group undertakings | - | - |
Tax | 2,098,924 | 587,080 |
Social security and other taxes | 487,116 | 720,721 |
VAT | 2,705,627 | 1,565,557 | - | - |
Other creditors | 7,530,799 | 7,660,054 |
Directors' loan accounts | 613,922 | 154,987 | 613,922 | 154,987 |
Accruals and deferred income | 5,449,208 | 6,029,447 |
23,397,653 | 21,948,874 |
19. | CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR |
Group |
31.12.22 | 31.12.21 |
£ | £ |
Other loans (see note 20) | 141,000 | 149,883 |
Hire purchase contracts (see note 21) | 302,447 | 507,200 |
Accruals and deferred income | 6,099,140 | 8,522,694 |
6,542,587 | 9,179,777 |
KAMMAC HOLDINGS LIMITED (REGISTERED NUMBER: 10808167) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2022 |
20. | LOANS |
An analysis of the maturity of loans is given below: |
Group |
31.12.22 | 31.12.21 |
£ | £ |
Amounts falling due within one year or | on demand: |
Other loans | 8,883 | 34,438 |
Amounts falling due between one and | two years: |
Other loans - 1-2 years | 8,883 | 8,883 |
Amounts falling due between two and | five years: |
Other loans - 2-5 years | 132,117 | 141,000 |
21. | LEASING AGREEMENTS |
Minimum lease payments fall due as follows: |
Group |
Hire purchase contracts |
31.12.22 | 31.12.21 |
£ | £ |
Net obligations repayable: |
Within one year | 200,704 | 389,507 |
Between one and five years | 302,447 | 507,200 |
503,151 | 896,707 |
Group |
Non-cancellable | operating leases |
31.12.22 | 31.12.21 |
£ | £ |
Within one year | 12,119,546 | 6,712,976 |
Between one and five years | 26,164,108 | 12,936,571 |
In more than five years | 13,191,364 | 317,745 |
51,475,018 | 19,967,292 |
KAMMAC HOLDINGS LIMITED (REGISTERED NUMBER: 10808167) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2022 |
21. | LEASING AGREEMENTS - continued |
Non-cancellable operating |
leases as lessor |
31.12.22 | 31.12.21 |
£ | £ |
Within one year | 211,487 | 353,309 |
Between one and five years | 53,605 | 214,087 |
In more than five years |
265,092 | 567,396 |
The interest payable on future hire purchase contract commitments is £24,115 (2021: £49,483). |
22. | SECURED DEBTS |
The following secured debts are included within creditors: |
Group |
31.12.22 | 31.12.21 |
£ | £ |
Other loans | 149,883 | 184,321 |
Hire purchase contracts | 503,151 | 896,707 |
Invoice discounting creditor | 6,594,463 | 5,964,696 |
7,247,497 | 7,045,724 |
The hire purchase contracts are secured on the assets which they relate. |
The invoice discounting creditor is secured on the book debts of Kammac Limited. |
There is a debenture in favour of RBS Invoice Finance Limited over all assets of the company. Created on 25 February 2011. |
There is a debenture in favour of National Westminster Bank PLC over all the assets of the company. Created on 01 May 1995. |
23. | PROVISIONS FOR LIABILITIES |
Group | Company |
31.12.22 | 31.12.21 | 31.12.22 | 31.12.21 |
£ | £ | £ | £ |
Deferred tax |
Accelerated capital allowances | 1,672,762 | 617,217 |
Tax losses carried forward | (750 | ) | - | ( |
) |
1,672,012 | 617,217 | 3,391 | - |
KAMMAC HOLDINGS LIMITED (REGISTERED NUMBER: 10808167) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2022 |
23. | PROVISIONS FOR LIABILITIES - continued |
Group |
Deferred |
tax |
£ |
Balance at 1 January 2022 | 617,217 |
Provided during year | 1,054,795 |
Balance at 31 December 2022 | 1,672,012 |
Company |
Deferred |
tax |
£ |
Provided during year |
Balance at 31 December 2022 |
24. | CALLED UP SHARE CAPITAL |
Allotted, issued and fully paid: |
Number: | Class: | Nominal | 31.12.22 | 31.12.21 |
value: | £ | £ |
Ordinary C | 1p | 25 | 25 |
Ordinary D | 1p | 25 | 25 |
Ordinary E | 1p | 25 | 25 |
Ordinary F | 1p | 25 | 25 |
6,500 | Ordinary A | £1 | 6,500 | 6,500 |
500 | Ordinary B | £1 | 500 | 500 |
1,595 | Ordinary G | £1 | 1,595 | 1,595 |
1,305 | Ordinary H | £1 | 1,305 | 1,305 |
2,000,000 | Preference | £1 | 2,000,000 | - |
2,010,000 | 10,000 |
Allotted and issued: |
Number: | Class: | Nominal | 31.12.22 | 31.12.21 |
value: | £ | £ |
2,000,000 | Share capital 10 | £1 | 2,000,000 | - |
The following shares were issued during the year for cash at par : |
2,000,000 Preference shares of £1 |
KAMMAC HOLDINGS LIMITED (REGISTERED NUMBER: 10808167) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2022 |
25. | RESERVES |
Group |
Retained | Share |
earnings | premium | Totals |
£ | £ | £ |
At 1 January 2022 | 9,146,687 | 3,541,560 | 12,688,247 |
Profit for the year | 15,065,929 | 15,065,929 |
Dividends | (1,901,107 | ) | (1,901,107 | ) |
No description | (638,177 | ) | - | (638,177 | ) |
At 31 December 2022 | 21,673,332 | 3,541,560 | 25,214,892 |
Company |
Retained | Share |
earnings | premium | Totals |
£ | £ | £ |
At 1 January 2022 | 13,016,907 |
Profit for the year |
Dividends | ( |
) | ( |
) |
At 31 December 2022 | 20,401,432 |
Profit and loss account - This reserve records retained earnings and accumulated losses. |
Share premium account - This reserve records the amount above the nominal value received for shares sold, less transaction costs. |
26. | NON-CONTROLLING INTERESTS |
The non-controlling interest represents a 5% equity shareholding in the subsidiary company, Kammac Limited. |
27. | OTHER FINANCIAL COMMITMENTS |
The company is also part of an action which has been orchestrated by the Industry to pursue a number of Vehicle and Trailer Manufacturers and Suppliers, who it is believed have formed a price fixing cartel, in breach of European Legislation. No formal conclusion has been reached but current advice suggests that the company has a strong claim and therefore the directors expect to received compensation in due course. Due to the complex structure of the case the directors do not consider it practicable to estimate the potential sum |
KAMMAC HOLDINGS LIMITED (REGISTERED NUMBER: 10808167) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2022 |
28. | RELATED PARTY DISCLOSURES |
Transactions with directors are under normal market conditions and/or not material. |
Group |
Included in creditors falling due within one year is a loan from Goodison Property Management Limited of £141,000 (2021: £141,000), The company is related by way of common control. |
During the year the group and company undertook transactions with the following related parties |
1) A shareholder, as follows: |
Amounts drawn by the related party totalled £4,232,811 and amounts repaid by the related party totalled £Nil amounts due from the related party at 31st December 2022 totalled £3,772,336. |
Company |
Details of transactions between fellow group companies have not been disclosed in line with paragraph 33.1A of FRS 102. |
29. | POST BALANCE SHEET EVENTS |
There were no material post balance sheet events up to the date of approvals of the financial statements by the board. |
30. | ULTIMATE CONTROLLING PARTY |
The controlling party is L J Olson. |