Company registration number 01010528 (England and Wales)
L.A. KATTENHORN & PARTNERS LIMITED
FINANCIAL STATEMENTS
FOR THE YEAR ENDED
30 APRIL 2023
3 Acorn Business Centre
Northarbour Road
Cosham
Portsmouth
Hampshire
PO6 3TH
L.A. KATTENHORN & PARTNERS LIMITED
CONTENTS
Page
Company information
1
Strategic report
2 - 4
Directors' report
5 - 6
Independent auditor's report
7 - 10
Statement of comprehensive income
11
Balance sheet
12
Statement of changes in equity
13
Notes to the financial statements
14 - 24
L.A. KATTENHORN & PARTNERS LIMITED
COMPANY INFORMATION
- 1 -
Directors
Mr. L Kattenhorn
Mr. D Kattenhorn
Mrs. C Kattenhorn
Secretary
Mrs. C Kattenhorn
Company number
01010528
Registered office
New Lane
Havant
Hampshire
United Kingdom
PO9 2NE
Auditor
TC Group
3 Acorn Business Centre
Northarbour Road
Cosham
Portsmouth
Hampshire
PO6 3TH
Business address
New Lane
Havant
Hampshire
United Kingdom
PO9 2NE
L.A. KATTENHORN & PARTNERS LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 30 APRIL 2023
- 2 -
The directors present the strategic report for the year ended 30 April 2023.
Fair review of the business
L. A. Kattenhorn and Partners Limited can report we have had a good but challenging year. We have been achieving a very good turnover set to slightly exceed the previous years. We have continued to work through tough conditions within the construction industry. We have seen major changes within the construction industry including the abolishment of red diesel and ever-increasing material costs. This has caused a significant number of challenges with regards to passing those higher costs onto ongoing contracts.
The impact to our business has been very significant this financial year. Whilst we have tried to work with our customers and suppliers to try and ensure we maintain the strong relationships we have found it increasingly difficult passing on our direct costs to our clients, we have had to absorb some of these costs. We continue to secure a lot of projects and working with some larger main contractors on bigger projects such as the A30 Brighton Hill Basingstoke for Milestone (M Group).
We are continuing to maintain our very well-established relationships with our suppliers, but the material increases have had a major impact on both current and future works. We have seen an over 40% rise in the cost per tonne of material over the past financial year and it is only just starting to level out now. In previous years our suppliers would work with us to absorb some of these increases, but this has not been as easy this financial year.
As a company we are extremely considerate with purchases so ensuring all purchases are necessary for the business. This is demonstrated by the health of the business. We continue to invest heavily into our plant and transport. Our tarmac lorry has enabled us to go and collect our own loads of tarmac to help aid woks and get jobs completed rather than waiting for loads on turn around. Our external hire costs have reduced again demonstrating how self-sufficient we are.
Overall, this has been a tough year for all businesses in construction but from the review of our accounts we have assessed the position of the business and confident with some immediate changes we will be able to come back stronger within the next financial year.
Safety, Health, Environmental and Quality
We continue to manage all of our health and safety and quality assurance in house. We continue to invest heavily in our staff to ensure the highest level of training and competency that we can offer to ensure all our works both office and site based operations are safely carried out. We continue to maintain our ISO 9001:2015 certification which we have successfully renewed this this year.
We are audited twice a year for quality assurance to maintain our quality assured status of ISO 9001:2015- NHSS Sector scheme 16.
L.A. KATTENHORN & PARTNERS LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2023
- 3 -
Safety, Health, Environmental and Quality (continued)
As in the previous year have also maintained a number of other accreditations which are listed below:-
We continue to renew as members of the Hampshire Construction Training association (HCTA) this demonstrates our commitment to health and safety always ensuring we are up to date with all current legislation and are aware of changes to health and safety in our industry. Health and safety will always be of great importance to our company and something the company will never hesitate to invest in to ensure all of our staff have the best possible knowledge to carry out their works to the safest possible standard for both the employee and the general public.
Principal risks and uncertainties
The Company Directors anticipate future growth within the business due to our planning division being fully supported now. We have seen a great deal of growth over the last year with our team in the office ensuring the best maximum output of each contract. We are continually reviewing our policies and procedures to ensure we are continuing to work in the most economical and effective manner.
We continue to invest highly in our tools, plant and equipment so hope that will continue to contribute to the growth.
As with the rest of the Country and other construction-based companies, this year has not been easy. The expense of running a business from unrealistic price increases and restrictions have had a knock-on effect. We have reviewed and assessed our costs over the next twelve months to ensure we are meeting those costs and will re assess this position throughout the next financial year and adjust where necessary.
L.A. KATTENHORN & PARTNERS LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2023
- 4 -
Key performance indicators
Given the straightforward nature of the business, the directors are of the opinion that the use of non financial KPI's is not necessary to obtain an understanding of the company's performance. The directors and management monitor the following KPI's:
Revenue growth 2.0%
Gross margin 8.0%
Net Assets £5,556,993
Mrs. C Kattenhorn
Secretary
2 November 2023
L.A. KATTENHORN & PARTNERS LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 30 APRIL 2023
- 5 -
The directors present their annual report and financial statements for the year ended 30 April 2023.
Principal activities
The principal activity of the company was that of tarmacadum specialists.
Results and dividends
The results for the year are set out on page 11.
No ordinary dividends were paid. The directors do not recommend payment of a final dividend.
Directors
The directors who held office during the year and up to the date of signature of the financial statements were as follows:
Mr. L Kattenhorn
Mr. D Kattenhorn
Mrs. C Kattenhorn
Statement of directors' responsibilities
The directors are responsible for preparing the annual report 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 of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to:
select suitable accounting policies and then apply them consistently;
make judgements and accounting estimates that are reasonable and prudent;
prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.
The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company’s transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
L.A. KATTENHORN & PARTNERS LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2023
- 6 -
Statement of disclosure to auditor
So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the company’s auditor is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the company’s auditor is aware of that information.
By order of the board
Mrs. C Kattenhorn
Secretary
2 November 2023
L.A. KATTENHORN & PARTNERS LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF L.A. KATTENHORN & PARTNERS LIMITED
- 7 -
Opinion
We have audited the financial statements of L.A. Kattenhorn & Partners Limited (the 'company') for the year ended 30 April 2023 which comprise the statement of comprehensive income, the balance sheet, the statement of changes in equity and notes to the financial statements, including 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 company's affairs as at 30 April 2023 and of its loss 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.
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 Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the company 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 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.
The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The directors are responsible for the other information contained within the annual report. 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. 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 course of 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.
L.A. KATTENHORN & PARTNERS LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF L.A. KATTENHORN & PARTNERS LIMITED
- 8 -
Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of our audit:
the information given in the strategic report and the directors' report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
the strategic report and the directors' report 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 company and its environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the directors' report.
We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:
adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
the financial statements are not in agreement with the accounting records and returns; or
certain disclosures of 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 directors' responsibilities statement, 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 is 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 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 company or to cease operations, or have no realistic alternative but to do so.
Auditor's 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 an auditor's report 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.
Irregularities, including fraud, are instances of non-compliance with laws and regulations. The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.
Extent to which the audit was considered capable of detecting irregularities, including fraud
The objectives of our audit, in respect to fraud, are: to identify and assess the risks of material misstatement of the financial statements due to fraud; to obtain sufficient appropriate audit evidence regarding the assessed risks of material misstatement due to fraud, through designing and implementing appropriate responses; and to respond appropriately to fraud or suspected fraud identified during the audit. However, the primary responsibility for the prevention and detection of fraud rests with both those charged with governance of the entity and its management.
L.A. KATTENHORN & PARTNERS LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF L.A. KATTENHORN & PARTNERS LIMITED
- 9 -
Our approach was as follows:
We identified areas of laws and regulations that could reasonably be expected to have a material effect on the financial statements from our general commercial and sector experience, and through discussion with the directors and other management (as required by auditing standards), and discussed with the directors and other management the policies and procedures regarding compliance with laws and regulations;
We considered the legal and regulatory frameworks directly applicable to the financial statements reporting framework (FRS 102 and the Companies Act 2006) and the relevant tax compliance regulations in the UK;
We considered the nature of the industry, the control environment and business performance, including the key drivers for management’s remuneration;
We communicated identified laws and regulations throughout our team and remained alert to any indications of non-compliance throughout the audit;
We considered the procedures and controls that the company has established to address risks identified, or that otherwise prevent, deter and detect fraud; and how senior management monitors those programmes and controls.
Based on this understanding we designed our audit procedures to identify non-compliance with such laws and regulations. Where the risk was considered to be higher, we performed audit procedures to address each identified fraud risk. These procedures included: testing manual journals; reviewing the financial statement disclosures and testing to supporting documentation; performing analytical procedures; and enquiring of management, and were designed to provide reasonable assurance that the financial statements were free from fraud or error.
Owing 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, the further removed non-compliance with laws and regulations (irregularities) is from the events and transactions reflected in the financial statements, the less likely the inherently limited procedures required by auditing standards would identify it. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation. We are not responsible for preventing non-compliance and cannot be expected to detect non-compliance with all laws and regulations.
A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/Our-Work/Audit/Audit-and-assurance/Standards-and-guidance/Standards-and-guidance-for-auditors/Auditors-responsibilities-for-audit/Description-of-auditors-responsibilities-for-audit.aspx. This description forms part of our auditor’s report.
L.A. KATTENHORN & PARTNERS LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF L.A. KATTENHORN & PARTNERS LIMITED
- 10 -
This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's members as a body, for our audit work, for this report, or for the opinions we have formed.
Graham Figgins FCA (Senior Statutory Auditor)
For and on behalf of TC Group
Statutory Auditor
3 November 2023
Office: Portsmouth
L.A. KATTENHORN & PARTNERS LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 30 APRIL 2023
- 11 -
2023
2022
Notes
£
£
Turnover
3
14,249,808
13,974,625
Cost of sales
(13,115,998)
(12,527,642)
Gross profit
1,133,810
1,446,983
Administrative expenses
(1,242,241)
(1,053,101)
Operating (loss)/profit
4
(108,431)
393,882
Interest receivable and similar income
7
26,182
994
(Loss)/profit before taxation
(82,249)
394,876
Tax on loss/profit
8
9,797
(49,956)
(Loss)/profit for the financial year
(72,452)
344,920
The profit and loss account has been prepared on the basis that all operations are continuing operations.
The notes on pages 14 to 24 form part of these financial statements
L.A. KATTENHORN & PARTNERS LIMITED
BALANCE SHEET
AS AT
30 APRIL 2023
30 April 2023
- 12 -
2023
2022
Notes
£
£
£
£
Fixed assets
Tangible assets
9
96,840
88,666
Current assets
Stocks
10
3,001
4,047
Debtors
11
2,166,096
2,673,260
Cash at bank and in hand
6,133,891
5,984,270
8,302,988
8,661,577
Creditors: amounts falling due within one year
12
(2,828,641)
(3,107,948)
Net current assets
5,474,347
5,553,629
Total assets less current liabilities
5,571,187
5,642,295
Provisions for liabilities
(14,194)
(12,850)
Net assets
5,556,993
5,629,445
Capital and reserves
Called up share capital
15
150
150
Profit and loss reserves
5,556,843
5,629,295
Total equity
5,556,993
5,629,445
The financial statements were approved by the board of directors and authorised for issue on 2 November 2023 and are signed on its behalf by:
Mr. L Kattenhorn
Mr. D Kattenhorn
Director
Director
Mrs. C Kattenhorn
Director
Company Registration No. 01010528
The notes on pages 14 to 24 form part of these financial statements
L.A. KATTENHORN & PARTNERS LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 APRIL 2023
- 13 -
Share capital
Profit and loss reserves
Total
£
£
£
Balance at 1 May 2021
150
5,284,375
5,284,525
Year ended 30 April 2022:
Profit and total comprehensive income for the year
-
344,920
344,920
Balance at 30 April 2022
150
5,629,295
5,629,445
Year ended 30 April 2023:
Loss and total comprehensive income for the year
-
(72,452)
(72,452)
Balance at 30 April 2023
150
5,556,843
5,556,993
The notes on pages 14 to 24 form part of these financial statements
L.A. KATTENHORN & PARTNERS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 APRIL 2023
- 14 -
1
Accounting policies
Company information
L.A. Kattenhorn & Partners Limited is a private company limited by shares incorporated in England and Wales. The registered office is New Lane, Havant, Hampshire, United Kingdom, PO9 2NE.
1.1
Accounting convention
These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.
The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.
The financial statements have been prepared on the historical cost convention. The principal accounting policies adopted are set out below.
This company is a qualifying entity for the purposes of FRS 102, being a member of a group where the parent of that group prepares publicly available consolidated financial statements, including this company, which are intended to give a true and fair view of the assets, liabilities, financial position and profit or loss of the group. The company has therefore taken advantage of exemptions from the following disclosure requirements:
- Section 7 ‘Statement of Cash Flows’: Presentation of a statement of cash flow and related notes and disclosures;
The financial statements of the company are consolidated in the financial statements of L.A. Kattenhorn & Partners Holdings Limited. These consolidated financial statements are available from its registered office New Lane, Havant, Hampshire, PO9 2NE.
1.2
Going concern
Atruet the time of approving the financial statements, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.
1.3
Turnover
The turnover in the profit and loss account represents amounts invoiced during the year, exclusive of Value Added Tax. Turnover is recognised once the service has been provided to the customer.
In respect of long-term contracts and contracts for on-going services, turnover represents the value of work undertaken in the year, including estimates of amounts not invoiced.
1.4
Tangible fixed assets
Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.
L.A. KATTENHORN & PARTNERS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2023
1
Accounting policies
(Continued)
- 15 -
Tangible fixed assets are stated at cost less depreciation. Depreciation is provided at rates calculated to write off the cost less estimated residual value of each asset over its expected useful life, as follows:
Plant and machinery
25% reducing balance
Fixtures, fittings & equipment
25% reducing balance
Motor vehicles
25% reducing balance
The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is credited or charged to profit or loss.
1.5
Impairment of fixed assets
At each reporting period end date, the company reviews the carrying amounts of its tangible and intangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any).
1.6
Stocks
Stocks comprise of fuel used in operating the fleet of vehicles and tarmac materials. Stocks are valued at cost less impairment, where cost is measured as the most recent purchase price.
1.7
Cash at bank and in hand
Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.
1.8
Financial instruments
The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the company's balance sheet when the company becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
Basic financial assets
Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.
Impairment of financial assets
Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.
L.A. KATTENHORN & PARTNERS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2023
1
Accounting policies
(Continued)
- 16 -
Classification of financial liabilities
Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.
Basic financial liabilities
Basic financial liabilities, including creditors and loans from fellow group companies that are classified as debt, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.
Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.
1.9
Equity instruments
Equity instruments issued by the company are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.
1.10
Taxation
The tax expense represents the sum of the tax currently payable and deferred tax.
Current tax
The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.
L.A. KATTENHORN & PARTNERS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2023
1
Accounting policies
(Continued)
- 17 -
Deferred tax
Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.
The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset when the company has a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.
1.11
Employee benefits
The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.
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.
1.12
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
1.13
Leases
Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leases asset are consumed.
L.A. KATTENHORN & PARTNERS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2023
- 18 -
2
Judgements and key sources of estimation uncertainty
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.
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.
Critical judgements
The following judgements (apart from those involving estimates) have had the most significant effect on amounts recognised in the financial statements.
Amounts recoverable on contracts
Due to the nature of the industry, the directors have considered the valuation of amounts recoverable on contracts to be an area of key judgement. As such the recoverability of debtors is regularly reviewed in line with all available information. Given the company's long association with it's largest customers the directors feel they have adequate historical experience to enable them to assess the likelihood of recoverability with accuracy.
In the case of contracts treated as long term the directors assess the stage of completion by comparing the current costs with the total expected costs for the project. Consideration is given to external factors that may affect the overall outcome of the project.
3
Turnover and other revenue
An analysis of the company's turnover is as follows:
2023
2022
£
£
United Kingdom
14,249,808
13,974,625
4
Operating (loss)/profit
2023
2022
Operating (loss)/profit for the year is stated after charging/(crediting):
£
£
Fees payable to the company's auditor for the audit of the company's financial statements
9,000
8,750
Depreciation of owned tangible fixed assets
31,185
29,557
Profit on disposal of tangible fixed assets
(1,482)
-
Operating lease charges
92,237
128,472
L.A. KATTENHORN & PARTNERS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2023
- 19 -
5
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2023
2022
Number
Number
Production staff
44
45
Administrative staff
16
15
Total
60
60
Their aggregate remuneration comprised:
2023
2022
£
£
Wages and salaries
2,746,443
2,853,576
Social security costs
340,155
317,160
Pension costs
166,811
149,115
3,253,409
3,319,851
L.A. KATTENHORN & PARTNERS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2023
- 20 -
6
Directors' remuneration
2023
2022
£
£
Remuneration for qualifying services
37,589
39,285
Company pension contributions to defined contribution schemes
40,000
40,000
77,589
79,285
The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 1 (2022 - 1).
The directors are also considered to be the key management personnel of the company.
7
Interest receivable and similar income
2023
2022
£
£
Interest income
Interest on bank deposits
25,752
994
Corporation tax interest received
430
Total income
26,182
994
8
Taxation
2023
2022
£
£
Current tax
UK corporation tax on profits for the current period
51,691
Tax losses carried back to prior period
(11,141)
Total current tax
(11,141)
51,691
Deferred tax
Origination and reversal of timing differences
(2,063)
(1,735)
Changes in tax rates
3,407
Total deferred tax
1,344
(1,735)
Total tax (credit)/charge
(9,797)
49,956
L.A. KATTENHORN & PARTNERS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2023
8
Taxation
(Continued)
- 21 -
The actual (credit)/charge for the year can be reconciled to the expected (credit)/charge for the year based on the profit or loss and the standard rate of tax as follows:
2023
2022
£
£
(Loss)/profit before taxation
(82,249)
394,876
Expected tax (credit)/charge based on the standard rate of corporation tax in the UK of 19.00% (2022: 19.00%)
(15,627)
75,026
Tax effect of expenses that are not deductible in determining taxable profit
2,609
848
Group relief
(25,348)
Deferred tax adjustments in respect of prior years
664
(184)
Differences arising from changes in effective tax rates
3,407
(386)
Enhanced capital allowances
(850)
Taxation (credit)/charge for the year
(9,797)
49,956
Deferred tax assets and liabilities are calculated using the future rate of corporation tax of 25% applicable from from 1 April 2023, in order to accurately reflect the prevailing rate which is expected to apply at the time of the the reversal of timing differences.
L.A. KATTENHORN & PARTNERS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2023
- 22 -
9
Tangible fixed assets
Plant and machinery
Fixtures, fittings & equipment
Motor vehicles
Total
£
£
£
£
Cost
At 1 May 2022
295,434
78,586
38,390
412,410
Additions
3,589
51,788
55,377
Disposals
(90,000)
(90,000)
At 30 April 2023
209,023
130,374
38,390
377,787
Depreciation and impairment
At 1 May 2022
253,880
35,316
34,548
323,744
Depreciation charged in the year
6,459
23,765
961
31,185
Eliminated in respect of disposals
(73,982)
(73,982)
At 30 April 2023
186,357
59,081
35,509
280,947
Carrying amount
At 30 April 2023
22,666
71,293
2,881
96,840
At 30 April 2022
41,553
43,270
3,843
88,666
10
Stocks
2023
2022
£
£
Fuel and tarmac materials
3,001
4,047
11
Debtors
2023
2022
Amounts falling due within one year:
£
£
Trade debtors
1,432,482
1,752,165
Amounts recoverable on contracts
485,525
559,149
Corporation tax recoverable
11,141
VAT recoverable
130,221
308,062
Other debtors
12,389
-
Prepayments and accrued income
94,338
53,884
2,166,096
2,673,260
L.A. KATTENHORN & PARTNERS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2023
- 23 -
12
Creditors: amounts falling due within one year
2023
2022
£
£
Trade creditors
1,955,643
1,905,836
Amounts due to group undertakings
641,357
934,861
Corporation tax
51,691
Other taxation and social security
71,217
66,710
Other creditors
20,209
10,532
Accruals and deferred income
140,215
138,318
2,828,641
3,107,948
13
Provisions for liabilities
This is in respect of deferred tax.
Deferred tax assets and liabilities are offset where the company has a legally enforceable right to do so. The following is the analysis of the deferred tax balances (after offset) for financial reporting purposes:
Liabilities
Liabilities
2023
2022
Balances:
£
£
Accelerated capital allowances
14,584
13,147
Retirement benefit obligations
(390)
(297)
14,194
12,850
2023
Movements in the year:
£
Liability at 1 May 2022
12,850
Charge to profit or loss
1,344
Liability at 30 April 2023
14,194
L.A. KATTENHORN & PARTNERS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2023
- 24 -
14
Retirement benefit schemes
2023
2022
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
166,811
149,115
The company operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the company in an independently administered fund.
15
Share capital
2023
2022
2023
2022
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
150
150
150
150
16
Related party transactions
As a wholly owned subsidiary of L A Kattenhorn and Partners (Holdings) Limited, the company is exempt from the requirements of FRS 102 to disclose transactions with other members of the group, headed by L A Kattenhorn and Partners (Holdings) Limited.
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