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REGISTERED NUMBER: NI049376 (Northern Ireland)













KHC Limited

Unaudited Financial Statements

for the Year Ended 31 January 2023






KHC Limited (Registered number: NI049376)

Contents of the Financial Statements
for the Year Ended 31 January 2023










Page

Company information 1

Statement of financial position 2 to 3

Notes to the financial statements 4 to 9


KHC Limited

Company Information
for the Year Ended 31 January 2023







Directors: Mr B McKinney
Mr K McKinney
Mrs S Ogle





Registered office: 44 Davis Street
Keady
Co Armagh
BT60 3RS





Registered number: NI049376 (Northern Ireland)





Accountants: Wylie Ruddell
Chartered Accountants
Armagh Business Centre
2 Loughgall Road
Armagh
BT61 7NH

KHC Limited (Registered number: NI049376)

Statement of Financial Position
31 January 2023

2023 2022
Notes £ £
Fixed assets
Property, plant and equipment 4 446,091 440,016

Current assets
Inventories 5 169,775 98,188
Receivables 6 81,857 93,286
Cash at bank 25,078 3,100
276,710 194,574
Payables
Amounts falling due within one year 7 (222,703 ) (185,087 )
Net current assets 54,007 9,487
Total assets less current liabilities 500,098 449,503

Payables
Amounts falling due after more than one
year

8

(59,532

)

(89,055

)

Provisions for liabilities 10 (73,494 ) (50,529 )
Net assets 367,072 309,919

Capital and reserves
Called up share capital 11 40,020 40,020
Retained earnings 327,052 269,899
Shareholders' funds 367,072 309,919

The company is entitled to exemption from audit under Section 477 of the Companies Act 2006 for the year ended 31 January 2023.

The members have not required the company to obtain an audit of its financial statements for the year ended 31 January 2023 in accordance with Section 476 of the Companies Act 2006.

The directors acknowledge their responsibilities for:
(a)ensuring that the company keeps accounting records which comply with Sections 386 and 387 of the Companies Act 2006 and
(b)preparing financial statements which give a true and fair view of the state of affairs of the company as at the end of each financial year and of its profit or loss for each financial year in accordance with the requirements of Sections 394 and 395 and which otherwise comply with the requirements of the Companies Act 2006 relating to financial statements, so far as applicable to the company.

KHC Limited (Registered number: NI049376)

Statement of Financial Position - continued
31 January 2023


The financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime.

In accordance with Section 444 of the Companies Act 2006, the Statement of income and retained earnings has not been delivered.

The financial statements were approved by the Board of Directors and authorised for issue on 18 October 2023 and were signed on its behalf by:




Mr B McKinney - Director Mr K McKinney - Director




Mrs S Ogle - Director


KHC Limited (Registered number: NI049376)

Notes to the Financial Statements
for the Year Ended 31 January 2023


1. Statutory information

KHC Limited is a private company, limited by shares , registered in Northern Ireland. The company's registered number and registered office address can be found on the Company Information page.

The presentation currency of the financial statements is the Pound Sterling (£).


2. Accounting policies

Basis of preparing the financial statements
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" including the provisions of Section 1A "Small Entities" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention.

Revenue
Revenue is measured at the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes.

Property, plant and equipment
Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life or, if held under a finance lease, over the lease term, whichever is the shorter.
Plant and machinery - 15% on reducing balance
Fixtures and fittings - 15% on reducing balance
Motor vehicles - 20% on reducing balance
Computer equipment - 25% on reducing balance

Inventories
Inventories are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items.

Taxation
Taxation for the year comprises current and deferred tax. Tax is recognised in the Statement of Income and Retained Earnings 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.

Hire purchase and leasing commitments
Assets obtained under hire purchase contracts or finance leases are capitalised in the balance sheet. Those held under hire purchase contracts are depreciated over their estimated useful lives. Those held under finance leases are depreciated over their estimated useful lives or the lease term, whichever is the shorter.

The interest element of these obligations is charged to profit or loss over the relevant period. The capital element of the future payments is treated as a liability.

KHC Limited (Registered number: NI049376)

Notes to the Financial Statements - continued
for the Year Ended 31 January 2023


2. Accounting policies - continued

Receivables
Short term receivables are measured at transaction price, less any impairment. Loans receivable are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method, less any impairment.

Cash and cash equivalents
Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours. Cash equivalents are highly liquid investments that mature in no more than three months from the date of acquisition and that are readily convertible to known amounts of cash with insignificant risk of change in value.

Payables
Short term payables are measured at the transaction price. Other financial liabilities, including bank loans, are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method.

Dividends
Equity dividends are recognised when they become legally payable. Interim equity dividends are recognised when paid. Final equity dividends are recognised when approved by the shareholders at an annual general meeting. Dividends on shares recognised as liabilities are recognised as expenses and classified within interest payable.

Provisions for liabilities
Provisions are made where an event has taken place that gives the Company a legal or constructive obligation that probably requires settlement by a transfer of economic benefit, and a reliable estimate can be made of the amount of the obligation. Provisions are charged as an expense to the Statement of Income and Retained Earnings in the year that the Company becomes aware of the obligation, and are measured at the best estimate at the Statement of Financial Position date of the expenditure required to settle the obligation, taking into account relevant risks and uncertainties. When payments are eventually made, they are charged to the provision carried in the Statement of Financial Position.

Critical accounting judgements and key sources of estimation uncertainty
Estimates and judgements are required when applying accounting policies. These are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. The company makes estimates and assumptions concerning the future, which can involve a high degree of judgement or complexity. The resulting accounting estimates will, by definition, seldom equal the related actual results. The estimates and assumptions that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are addressed below:

Useful economic lives of tangible assets
The annual depreciation charges for tangible assets is sensitive to changes in the estimated useful economic lives and residual values of the assets. The useful economic lives and residual values are re-assessed annually. They are amended when necessary to reflect current estimates, based on technological advancement, future investments, economic utilisation and the physical condition of the assets. See property, plant and equipment note for the carrying amount of the assets, and note 2 for the useful economic lives for each class of assets.

3. Employees and directors

The average number of employees during the year was 10 (2022 - 11 ) .

KHC Limited (Registered number: NI049376)

Notes to the Financial Statements - continued
for the Year Ended 31 January 2023


4. Property, plant and equipment
Fixtures
Freehold Plant and and
property machinery fittings
£ £ £
Cost
At 1 February 2022 107,563 736,652 7,673
Additions - 52,903 -
Disposals - (37,065 ) -
At 31 January 2023 107,563 752,490 7,673
Depreciation
At 1 February 2022 - 417,742 6,755
Charge for year - 49,793 137
Eliminated on disposal - (28,468 ) -
At 31 January 2023 - 439,067 6,892
Net book value
At 31 January 2023 107,563 313,423 781
At 31 January 2022 107,563 318,910 918

Motor Computer
vehicles equipment Totals
£ £ £
Cost
At 1 February 2022 50,000 5,155 907,043
Additions 14,299 710 67,912
Disposals - - (37,065 )
At 31 January 2023 64,299 5,865 937,890
Depreciation
At 1 February 2022 38,204 4,326 467,027
Charge for year 3,074 236 53,240
Eliminated on disposal - - (28,468 )
At 31 January 2023 41,278 4,562 491,799
Net book value
At 31 January 2023 23,021 1,303 446,091
At 31 January 2022 11,796 829 440,016

KHC Limited (Registered number: NI049376)

Notes to the Financial Statements - continued
for the Year Ended 31 January 2023


4. Property, plant and equipment - continued

Fixed assets, included in the above, which are held under hire purchase contracts are as follows:
Plant and Motor
machinery vehicles Totals
£ £ £
Cost
At 1 February 2022 94,763 23,000 117,763
Additions 29,000 - 29,000
Transfer to ownership - (23,000 ) (23,000 )
At 31 January 2023 123,763 - 123,763
Depreciation
At 1 February 2022 20,488 13,880 34,368
Charge for year 12,954 - 12,954
Transfer to ownership - (13,880 ) (13,880 )
At 31 January 2023 33,442 - 33,442
Net book value
At 31 January 2023 90,321 - 90,321
At 31 January 2022 74,275 9,120 83,395

5. Inventories
2023 2022
£ £
Finished goods 169,775 98,188

6. Receivables less than one year
2023 2022
£ £
Trade receivables 70,305 85,382
Other receivables 11,552 7,904
81,857 93,286

7. Payables less than one year
2023 2022
£ £
Bank loans and overdrafts 15,342 15,012
Hire purchase contracts (see note 9) 28,795 26,999
Trade payables 54,064 87,788
Taxation and social security 11,129 3,826
Other payables 113,373 51,462
222,703 185,087

Bank loans and overdrafts provided by Danske Bank are secured by a joint & several letter of guarantee for £110,000 completed by Mr K McKinney, Mr B McKinney, Mrs S Ogle (all directors of KHC) and Mrs M McKinney (wife of Mr B McKinney and previous director of KHC), supported by Equitable deposit over property at Davis Street Keady.

KHC Limited (Registered number: NI049376)

Notes to the Financial Statements - continued
for the Year Ended 31 January 2023


8. Payables more than one year
2023 2022
£ £
Bank loans 37,430 52,380
Hire purchase contracts (see note 9) 22,102 36,675
59,532 89,055

9. Leasing agreements

Minimum lease payments under hire purchase fall due as follows:

2023 2022
£ £
Net obligations repayable:
Within one year 28,795 26,999
Between one and five years 22,102 36,675
50,897 63,674

10. Provisions for liabilities
2023 2022
£ £
Deferred tax
Accelerated capital allowances 73,494 63,166
Tax losses carried forward - (12,637 )
73,494 50,529

Deferred tax
£
Balance at 1 February 2022 50,529
Provided during year 22,965
Balance at 31 January 2023 73,494

11. Called up share capital

Allotted, issued and fully paid:
Number: Class: Nominal 2023 2022
value: £ £
40,020 Ordinary Shares 1 40,020 40,020

KHC Limited (Registered number: NI049376)

Notes to the Financial Statements - continued
for the Year Ended 31 January 2023


12. Directors' advances, credits and guarantees

The following loans to the company from the directors subsisted during the years ended 31 January 2023 and 31 January 2022:

2023 2022
£ £
Mr B McKinney
Balance outstanding at start of year 7,471 9,631
Amounts advanced 2,000 2,000
Amounts repaid (3,960 ) (4,160 )
Amounts written off - -
Amounts waived - -
Balance outstanding at end of year 5,511 7,471

Mr K McKinney
Balance outstanding at start of year 17,752 15,752
Amounts advanced 2,000 2,000
Amounts repaid - -
Amounts written off - -
Amounts waived - -
Balance outstanding at end of year 19,752 17,752

Mrs S Ogle
Balance outstanding at start of year 17,772 15,772
Amounts advanced 2,000 2,000
Amounts repaid - -
Amounts written off - -
Amounts waived - -
Balance outstanding at end of year 19,772 17,772

The loan is interest free and repayable on demand.