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Registration number: 02045485

KME Yorkshire Limited

Filleted Financial Statements

for the Year Ended 31 December 2022

 

KME Yorkshire Limited

Contents

Company Information

1

Balance Sheet

2

Notes to the Financial Statements

3 to 10

 

KME Yorkshire Limited

Company Information

Directors

John James Dodd

Marco Miniati

Christopher John Meese

Registered office

Severn House
Prescott Drive
Wardon Business Park
Worcester
WR4 9NE

Auditors

Williamson & Croft Audit Ltd
Statutory Auditor
York House
20 York Street
Manchester
M2 3BB

 

KME Yorkshire Limited

(Registration number: 02045485)
Balance Sheet as at 31 December 2022

Note

2022
£

2021
£

Fixed assets

 

Tangible assets

7

9,738

13,132

Investments

8

109

109

 

9,847

13,241

Current assets

 

Debtors

9

309,179

268,293

Cash at bank and in hand

 

947,555

963,617

 

1,256,734

1,231,910

Creditors: Amounts falling due within one year

10

(173,521)

(448,226)

Net current assets

 

1,083,213

783,684

Net assets

 

1,093,060

796,925

Capital and reserves

 

Called up share capital

11

10,014,603

10,014,603

Share premium reserve

114,286

114,286

Capital redemption reserve

30,022,000

30,022,000

Retained earnings

(39,057,829)

(39,353,964)

Shareholders' funds

 

1,093,060

796,925

These financial statements have been prepared in accordance with the special provisions relating to companies subject to the small companies regime within Part 15 of the Companies Act 2006.

Approved and authorised by the Board on 29 September 2023 and signed on its behalf by:
 

.........................................
John James Dodd
Director

 

KME Yorkshire Limited

Notes to the Financial Statements for the Year Ended 31 December 2022

1

General information

The company is a private company limited by share capital, incorporated in England and Wales.

The address of its registered office is:
Severn House
Prescott Drive
Wardon Business Park
Worcester
WR4 9NE

These financial statements were authorised for issue by the Board on 29 September 2023.

2

Accounting policies

Summary of significant accounting policies and key accounting estimates

The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.

Statement of compliance

These financial statements have been prepared in accordance with Financial Reporting Standard 102 Section 1A smaller entities - 'The Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland' and the Companies Act 2006 (as applicable to companies subject to the small companies' regime).

Basis of preparation

These financial statements have been prepared using the historical cost convention except that as disclosed in the accounting policies certain items are shown at fair value.

The financial statements are presented in sterling which is the functional currency of the company.

Summary of disclosure exemptions

The accounts do not include a cash flow statement because the company, as a small reporting entity, is exempt from the requirements to prepare such a statement.

Going concern

The financial statements have been prepared on the going concern basis. The company is reliant on the continued financial support from the parent company, KME SE. As stated in note 6 the company is designated to meet the payment of deficit pension contributions in respect of the Yorkshire Copper Tube Pension Scheme. KME SE has confirmed it will continue to provide financial support to KME Yorkshire Ltd in order for the company to continue to maintain operations and to meet its liabilities in full, at least through to 30 September 2024.

 

KME Yorkshire Limited

Notes to the Financial Statements for the Year Ended 31 December 2022

Audit report

The Independent Auditor's Report was unqualified. . The name of the Senior Statutory Auditor who signed the audit report on 29 September 2023 was Tor Stringfellow FCA, who signed for and on behalf of Williamson & Croft Audit Ltd.

.........................................

Revenue recognition

Turnover comprises the fair value of the consideration received or receivable for the sale of goods and provision of services in the ordinary course of the company’s activities. Turnover is shown net of sales/value added tax, returns, rebates and discounts.

The company recognises revenue when:
The amount of revenue can be reliably measured;
it is probable that future economic benefits will flow to the entity;
and specific criteria have been met for each of the company's activities.

Foreign currency transactions and balances

Transactions in foreign currencies are initially recorded at the functional currency rate prevailing at the date of the transaction. Monetary assets and liabilities denominated in foreign currencies are retranslated into the respective functional currency of the entity at the rates prevailing on the reporting period date. Non-monetary items carried at fair value that are denominated in foreign currencies are retranslated at the rate on the date when the fair value is re-measured.

Non-monetary items measured in terms of historical cost in a foreign currency are not retranslated.

Tangible assets

Tangible assets are stated in the balance sheet at cost, less any subsequent accumulated depreciation and subsequent accumulated impairment losses.

The cost of tangible assets includes directly attributable incremental costs incurred in their acquisition and installation.

Depreciation

Depreciation is charged so as to write off the cost of assets, other than land and properties under construction over their estimated useful lives, as follows:

Asset class

Depreciation method and rate

Plant and machinery, etc

10 - 25% on cost

 

KME Yorkshire Limited

Notes to the Financial Statements for the Year Ended 31 December 2022

Investments

Investments in equity shares which are publicly traded or where the fair value can be measured reliably are initially measured at fair value, with changes in fair value recognised in profit or loss. Investments in equity shares which are not publicly traded and where fair value cannot be measured reliably are measured at cost less impairment.

Interest income on debt securities, where applicable, is recognised in income using the effective interest method. Dividends on equity securities are recognised in income when receivable.

Cash and cash equivalents

Cash and cash equivalents comprise cash on hand and call deposits, and other short-term highly liquid investments that are readily convertible to a known amount of cash and are subject to an insignificant risk of change in value.

Trade debtors

Trade debtors are amounts due from customers for merchandise sold or services performed in the ordinary course of business.

Trade debtors are recognised initially at the transaction price. They are subsequently measured at amortised cost using the effective interest method, less provision for impairment. A provision for the impairment of trade debtors is established when there is objective evidence that the company will not be able to collect all amounts due according to the original terms of the receivables.

Trade creditors

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Accounts payable are classified as current liabilities if the company does not have an unconditional right, at the end of the reporting period, to defer settlement of the creditor for at least twelve months after the reporting date. If there is an unconditional right to defer settlement for at least twelve months after the reporting date, they are presented as non-current liabilities.

Trade creditors are recognised initially at the transaction price and subsequently measured at amortised cost using the effective interest method.

Share capital

Ordinary shares are classified as equity. Equity instruments are measured at the fair value of the cash or other resources received or receivable, net of the direct costs of issuing the equity instruments. If payment is deferred and the time value of money is material, the initial measurement is on a present value basis.

Defined contribution pension obligation

A defined contribution plan is a pension plan under which fixed contributions are paid into a pension fund and the company has no legal or constructive obligation to pay further contributions even if the fund does not hold sufficient assets to pay all employees the benefits relating to employee service in the current and prior periods.

Contributions to defined contribution plans are recognised as employee benefit expense when they are due. If contribution payments exceed the contribution due for service, the excess is recognised as a prepayment.

 

KME Yorkshire Limited

Notes to the Financial Statements for the Year Ended 31 December 2022

Defined benefit pension obligation

Typically defined benefit plans define an amount of pension benefit that an employee will receive on retirement, usually dependent on one or more factors such as age, years of service and compensation.

The Yorkshire Copper Tube Pension Scheme is administered by a separate board of trustees, which is legally separate from the company. KME Yorkshire Limited is a participating employer of the defined benefit pension scheme for which KME SE (note 12) is the principal employer. Contributions made by KME Yorkshire Limited are therefore accounted for as if they were made under a defined contribution scheme and are recognised as an expense in the profit and loss.

3

Staff numbers

The average number of persons employed by the company (including directors) during the year, was 7 (2021 - 7).

4

Auditors' remuneration

2022
£

2021
£

Audit of the financial statements

8,500

8,000

Other fees to auditors

All other non-audit services

1,835

3,085


 

5

Profit before tax

Arrived at after charging/(crediting)

2022
£

2021
£

Depreciation expense

3,393

3,768

 

KME Yorkshire Limited

Notes to the Financial Statements for the Year Ended 31 December 2022

6

Exceptional items

Included within interest receivable and similar income is an amount of £5,497,077 (2021: £6,251,571) which relates to the group loan with the parent company, KME SE, which has this year been waived in full. KME SE has agreed to waive the full repayment of the loan in full and will no longer pursue this amount in order to assist and support the financial stability of the company. The loan arose principally as a result of the pension contributions of the Yorkshire Copper Tube Pension Scheme as stated below.

Included within administrative expenses are pension contributions of the Yorkshire Copper Tube Pension Scheme of £4,500,000 (2021: £4,450,000) and professional fees in relation thereto of £543,856 (2021: £597,544).

The above amounts relate to payments of deficit contributions in relation to the scheme. The last funding valuation of the pension scheme was carried out by a qualified actuary and as at 31 March 2020 and showed a deficit of £49.1M. The company is paying deficit contributions which, along with investment returns from return-seeking assets, are expected to make good this shortfall by 31 December 2028. The company has also agreed to pay additional contingent contributions into the scheme which are linked to the financial performance of the parent company, KME SE. The next funding valuation is due no later than 31 March 2023, at which progress towards full-funding will be reviewed.

A contribution of £5,000,000 is expected to be paid by the company during the year ending on 31 December 2023.

 

KME Yorkshire Limited

Notes to the Financial Statements for the Year Ended 31 December 2022

7

Tangible assets

Plant & Machinery etc. £

Cost or valuation

At 1 January 2022

27,191

At 31 December 2022

27,191

Depreciation

At 1 January 2022

14,059

Charge for the year

3,394

At 31 December 2022

17,453

Carrying amount

At 31 December 2022

9,738

At 31 December 2021

13,132

8

Investments

2022
£

2021
£

Investments in subsidiaries

109

109

Subsidiaries

£

Cost or valuation

At 1 January 2022

109

Provision

Carrying amount

At 31 December 2022

109

At 31 December 2021

109

Details of undertakings

Details of the investments in which the company holds 20% or more of the nominal value of any class of share capital are as follows:

 

KME Yorkshire Limited

Notes to the Financial Statements for the Year Ended 31 December 2022

Undertaking

Registered office

Holding

Proportion of voting rights and shares held

     

2022

2021

Subsidiary undertakings

Irish Metal Industries Limited

1 Stokes Place, Saint Stephens Green, Dublin 2

Ireland

Ordinary

100%

100%

Subsidiary undertakings

Irish Metal Industries Limited

The principal activity of Irish Metal Industries Limited is Dormant.

9

Debtors

Current

Note

2022
£

2021
£

Trade debtors

 

4,033

87,784

Amounts due from group undertakings

199,193

42,783

Other debtors

 

105,953

137,726

   

309,179

268,293

10

Creditors

Creditors: amounts falling due within one year

Note

2022
£

2021
£

Due within one year

 

Trade creditors

 

33,602

27,930

Amounts owed to group undertakings

35,794

353,644

Taxation and social security

 

39,916

12,511

Other creditors

 

64,209

54,141

 

173,521

448,226

KME SE, the owner of 100% of the share capital of KME Yorkshire Limited, has agreed that it will continue to provide the company with the necessary funding in order for it to maintain operations and meet liabilities in full. In particular it will not enforce KME Yorkshire Limited to repay outstanding loans or inter company advances arising up to 30 September 2024.

 

KME Yorkshire Limited

Notes to the Financial Statements for the Year Ended 31 December 2022

11

Share capital

Allotted, called up and fully paid shares

 

2022

2021

 

No.

£

No.

£

Ordinary of £1 each

10,014,603

10,014,603

10,014,603

10,014,603

         

12

Parent and ultimate parent undertaking

The company's immediate parent is KME SE, incorporated in Germany.

 The ultimate parent is KME Group SpA, incorporated in Italy.

 

13

APB Ethical Standards relevant circumstances

In common with many other businesses of our size and nature, we use our auditor to prepare and submit returns to
the tax authorities and assist with the preparation of the financial statements.