Company Registration No. 04067748 (England and Wales)
L.A. KATTENHORN & PARTNERS (HOLDINGS) LIMITED
CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED
30 APRIL 2023
3 Acorn Business Centre
Northarbour Road
Cosham
Portsmouth
Hampshire
PO6 3TH
L.A. KATTENHORN & PARTNERS (HOLDINGS) LIMITED
CONTENTS
Page
Strategic report
1 - 3
Directors' report
4 - 5
Independent auditor's report
6 - 8
Group statement of comprehensive income
9
Group balance sheet
10
Company balance sheet
11 - 12
Group statement of changes in equity
13
Company statement of changes in equity
14
Group statement of cash flows
15
Notes to the financial statements
16 - 30
L.A. KATTENHORN & PARTNERS (HOLDINGS) LIMITED
COMPANY INFORMATION
Directors
Mr. D Kattenhorn
Mr. L Kattenhorn
Mrs. C Kattenhorn
Secretary
Mrs. C Kattenhorn
Company number
04067748
Registered office
New Lane
Havant
Hampshire
United Kingdom
PO9 2NE
Auditor
TC Group
3 Acorn Business Centre
Northarbour Road
Cosham
Portsmouth
Hampshire
PO6 3TH
L.A. KATTENHORN & PARTNERS (HOLDINGS) LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 30 APRIL 2023
- 1 -

The directors present the strategic report for the year ended 30 April 2023.

Fair review of the business

The group 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 (HOLDINGS) LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2023
- 2 -
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 (HOLDINGS) LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2023
- 3 -
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 7.0%

 

Net Assets £9,653,852

By order of the board

Mrs. C Kattenhorn
Secretary
2 November 2023
L.A. KATTENHORN & PARTNERS (HOLDINGS) LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 30 APRIL 2023
- 4 -

The directors present their annual report and financial statements for the year ended 30 April 2023.

Principal activities

The principal activity of the company during the year was that of a holding company, although the company commenced property development activity during the year.

 

The principal activity of the group continued to be that of tarmacadam specialists.

Directors

The directors who held office during the year and up to the date of signature of the financial statements were as follows:

Mr. D Kattenhorn
Mr. L Kattenhorn
Mrs. C Kattenhorn
Results and dividends

The results for the year are set out on page 9.

Ordinary dividends were paid amounting to £270,500. The directors do not recommend payment of a further dividend.

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 group and company, and of the profit or loss of the group for that period. In preparing these financial statements, the directors are required to:

 

 

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the group’s and company’s transactions and disclose with reasonable accuracy at any time the financial position of the group and 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 group and company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Auditor

The auditor, TC Group, is deemed to be reappointed under section 487(2) of the Companies Act 2006.

L.A. KATTENHORN & PARTNERS (HOLDINGS) LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2023
- 5 -
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 auditor of the company 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 auditor of the company is aware of that information.

By order of the board
Mrs. C Kattenhorn
Secretary
2 November 2023
L.A. KATTENHORN & PARTNERS (HOLDINGS) LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF L.A. KATTENHORN & PARTNERS (HOLDINGS) LIMITED
- 6 -
Opinion

We have audited the financial statements of L.A. Kattenhorn & Partners (Holdings) Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 30 April 2023 which comprise the group statement of comprehensive income, the group balance sheet, the company balance sheet, the group statement of changes in equity, the company statement of changes in equity, the group statement of cash flows 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:

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 Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the group and parent 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 group's and 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.

L.A. KATTENHORN & PARTNERS (HOLDINGS) LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF L.A. KATTENHORN & PARTNERS (HOLDINGS) LIMITED
- 7 -

Other information

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.

Opinions on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of our audit:

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 their 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:

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 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 parent company or to cease operations, or have no realistic alternative but to do so.

L.A. KATTENHORN & PARTNERS (HOLDINGS) LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF L.A. KATTENHORN & PARTNERS (HOLDINGS) LIMITED
- 8 -
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.

The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.

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.

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 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.

For and on behalf of TC Group
3 November 2023
Graham Figgins
3 Acorn Business Centre
Statutory Auditor
Northarbour Road
Cosham
Portsmouth
Hampshire
L.A. KATTENHORN & PARTNERS (HOLDINGS) LIMITED
GROUP STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 30 APRIL 2023
- 9 -
2023
2022
Notes
£
£
Turnover
3
14,249,808
13,974,625
Cost of sales
(13,253,139)
(12,657,153)
Gross profit
996,669
1,317,472
Administrative expenses
(1,157,626)
(962,139)
Other operating income
34,790
33,630
Operating (loss)/profit
5
(126,167)
388,963
Interest receivable and similar income
10
32,284
1,311
Interest payable and similar expenses
8
(2,302)
(1,126)
(Loss)/profit before taxation
(96,185)
389,148
Tax on (loss)/profit
9
(3,568)
(76,645)
(Loss)/profit for the financial year
(99,753)
312,503
(Loss)/profit for the financial year is all attributable to the owners of the parent company.
Total comprehensive income for the year is all attributable to the owners of the parent company,

The profit and loss account has been prepared on the basis that all operations are continuing operations.

The notes on pages 16 to 30 form part of these financial statements
L.A. KATTENHORN & PARTNERS (HOLDINGS) LIMITED
GROUP BALANCE SHEET
AS AT 30 APRIL 2023
30 April 2023
- 10 -
2023
2022
Notes
£
£
£
£
Fixed assets
Tangible assets
14
1,914,176
1,842,024
Current assets
Stocks
15
762,155
4,047
Debtors
16
2,197,299
2,684,640
Cash at bank and in hand
7,324,601
7,931,148
10,284,055
10,619,835
Creditors: amounts falling due within one year
17
(2,226,956)
(2,191,823)
Net current assets
8,057,099
8,428,012
Total assets less current liabilities
9,971,275
10,270,036
Creditors: amounts falling due after more than one year
18
(108,805)
(52,022)
Provisions for liabilities
20
(208,618)
(193,909)
Net assets
9,653,852
10,024,105
Capital and reserves
Called up share capital
21
150
150
Profit and loss reserves
9,653,702
10,023,955
Total equity
9,653,852
10,024,105
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:
02 November 2023
Mr. D Kattenhorn
Mr. L Kattenhorn
Mrs. C Kattenhorn
Director
Director
Director
The notes on pages 16 to 30 form part of these financial statements
L.A. KATTENHORN & PARTNERS (HOLDINGS) LIMITED
COMPANY BALANCE SHEET
AS AT 30 APRIL 2023
30 April 2023
- 11 -
2023
2022
Notes
£
£
£
£
Fixed assets
Tangible assets
14
1,817,336
1,753,358
Investments
12
150
150
1,817,486
1,753,508
Current assets
Stocks
15
759,154
-
Debtors
16
672,559
946,240
Cash at bank and in hand
1,190,710
1,946,878
2,622,423
2,893,118
Creditors: amounts falling due within one year
17
(39,672)
(18,736)
Net current assets
2,582,751
2,874,382
Total assets less current liabilities
4,400,237
4,627,890
Creditors: amounts falling due after more than one year
18
(108,805)
(52,022)
Provisions for liabilities
20
(194,424)
(181,059)
Net assets
4,097,008
4,394,809
Capital and reserves
Called up share capital
21
150
150
Profit and loss reserves
4,096,858
4,394,659
Total equity
4,097,008
4,394,809
L.A. KATTENHORN & PARTNERS (HOLDINGS) LIMITED
COMPANY BALANCE SHEET (CONTINUED)
AS AT 30 APRIL 2023
30 April 2023
- 12 -

As permitted by s408 Companies Act 2006, the company has not presented its own profit and loss account and related notes. The company’s loss for the year was £27,301 (2022 - £32,417).

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:
02 November 2023
Mr. D Kattenhorn
Mr. L Kattenhorn
Mrs. C Kattenhorn
Director
Director
Director
Company Registration No. 04067748
The notes on pages 16 to 30 form part of these financial statements
L.A. KATTENHORN & PARTNERS (HOLDINGS) LIMITED
GROUP STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 APRIL 2023
- 13 -
Share capital
Profit and loss reserves
Total
Notes
£
£
£
Balance at 1 May 2021
150
9,988,952
9,989,102
Year ended 30 April 2022:
Profit and total comprehensive income for the year
-
312,503
312,503
Dividends
11
-
(277,500)
(277,500)
Balance at 30 April 2022
150
10,023,955
10,024,105
Year ended 30 April 2023:
Loss and total comprehensive income for the year
-
(99,753)
(99,753)
Dividends
11
-
(270,500)
(270,500)
Balance at 30 April 2023
150
9,653,702
9,653,852
The notes on pages 16 to 30 form part of these financial statements
L.A. KATTENHORN & PARTNERS (HOLDINGS) LIMITED
COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 APRIL 2023
- 14 -
Share capital
Profit and loss reserves
Total
Notes
£
£
£
Balance at 1 May 2021
150
4,704,576
4,704,726
Year ended 30 April 2022:
Loss and total comprehensive income for the year
-
(32,417)
(32,417)
Dividends
11
-
(277,500)
(277,500)
Balance at 30 April 2022
150
4,394,659
4,394,809
Year ended 30 April 2023:
Loss and total comprehensive income for the year
-
(27,301)
(27,301)
Dividends
11
-
(270,500)
(270,500)
Balance at 30 April 2023
150
4,096,858
4,097,008
The notes on pages 16 to 30 form part of these financial statements
L.A. KATTENHORN & PARTNERS (HOLDINGS) LIMITED
GROUP STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 30 APRIL 2023
- 15 -
2023
2022
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
23
122,546
1,022,165
Interest paid
(2,302)
(1,126)
Income taxes paid
(51,691)
(121,383)
Net cash inflow from operating activities
68,553
899,656
Investing activities
Purchase of tangible fixed assets
(511,856)
(557,376)
Proceeds on disposal of tangible fixed assets
153,501
63,950
Interest received
32,284
1,311
Net cash used in investing activities
(326,071)
(492,115)
Financing activities
Payment of finance lease obligations
(78,529)
23,699
Dividends paid to equity shareholders
(270,500)
(277,500)
Net cash used in financing activities
(349,029)
(253,801)
Net (decrease)/increase in cash and cash equivalents
(606,547)
153,740
Cash and cash equivalents at beginning of year
7,931,148
7,777,408
Cash and cash equivalents at end of year
7,324,601
7,931,148
The notes on pages 16 to 30 form part of these financial statements
L.A. KATTENHORN & PARTNERS (HOLDINGS) LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 APRIL 2023
- 16 -
1
Accounting policies
Company information

L.A. Kattenhorn & Partners (Holdings) Limited (“the company”) is a private limited company domiciled and incorporated in England and Wales. The registered office is New Lane, Havant, Hampshire, United Kingdom, PO9 2NE.

 

The group consists of L.A. Kattenhorn & Partners (Holdings) Limited and all of its subsidiaries.

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.

1.2
Basis of consolidation

In the parent company financial statements, the cost of a business combination is the fair value at the acquisition date of the assets given, equity instruments issued and liabilities incurred or assumed, plus costs directly attributable to the business combination. The excess of the cost of a business combination over the fair value of the identifiable assets, liabilities and contingent liabilities acquired is recognised as goodwill.

The consolidated financial statements incorporate those of the parent company and all of its subsidiaries (ie entities that the group controls through its power to govern the financial and operating policies so as to obtain economic benefits).

 

All intra-group transactions, balances and unrealised gains on transactions between group companies are eliminated on consolidation.

1.3
Going concern

At the time of approving the financial statements, the directors have a reasonable expectation that the group 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.

1.4
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.

1.5
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 (HOLDINGS) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2023
1
Accounting policies
(Continued)
- 17 -

Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

Freehold land and buildings
50 years straight line
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 recognised in the profit and loss account.

1.6
Fixed asset investments

In the parent company financial statements, investments in subsidiaries, associates and jointly controlled entities are initially measured at cost and subsequently measured at cost less any accumulated impairment losses.

A subsidiary is an entity controlled by the group. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.

1.7
Impairment of fixed assets

At each reporting period end date, the group 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).

1.8
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.

 

Work in Progress relates to costs incurred in relation to a property being developed.

1.9
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.

1.10
Financial instruments

The group 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 group's balance sheet when the group becomes party to the contractual provisions of the instrument.

 

Financial assets and liabilities are offset and 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.

L.A. KATTENHORN & PARTNERS (HOLDINGS) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2023
1
Accounting policies
(Continued)
- 18 -
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.

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 group 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.

1.11
Equity instruments

Equity instruments issued by the group 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 group.

1.12
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 group’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 (HOLDINGS) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2023
1
Accounting policies
(Continued)
- 19 -
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 if, and only if, there is 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.

1.13
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.

1.14
Retirement benefits

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

1.15
Leases

Leases are classified as hire purchase obligations whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessees. All other leases are classified as operating leases.

 

Assets held under hire purchase are recognised as assets at the lower of the assets fair value at the date of inception and the present value of the minimum lease payments. The related liability is included in the balance sheet as a finance lease obligation. Lease payments are treated as consisting of capital and interest elements. The interest is charged to profit or loss so as to produce a constant periodic rate of interest on the remaining balance of the liability.

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 leased asset are consumed.

Rental income from operating leases is recognised on a straight line basis over the term of the relevant lease. Initial direct costs incurred in negotiating and arranging an operating lease are added to the carrying amount of the leased asset and recognised on a straight line basis over the lease term.

L.A. KATTENHORN & PARTNERS (HOLDINGS) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2023
- 20 -
2
Judgements and key sources of estimation uncertainty

In the application of the group’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
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 group's long association with it's largest customer's 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 group's turnover is as follows:

2023
2022
£
£
Turnover analysed by class of business
United Kingdom
14,249,808
13,974,625
4
Auditor's remuneration
2023
2022
Fees payable to the company's auditor and associates:
£
£
For audit services
Audit of the financial statements of the group and company
4,133
3,800
Audit of the financial statements of the company's subsidiaries
9,000
8,750
13,133
12,550
L.A. KATTENHORN & PARTNERS (HOLDINGS) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2023
- 21 -
5
Operating (loss)/profit
2023
2022
£
£
Operating (loss)/profit for the year is stated after charging/(crediting):
Depreciation of owned tangible fixed assets
468,910
500,172
Depreciation of tangible fixed assets held under finance leases
60,750
22,077
Profit on disposal of tangible fixed assets
(66,687)
(31,638)
Operating lease charges
12,737
48,972
6
Employees

The average monthly number of persons (including directors) employed by the group and company during the year was:

Group
2023
2022
Number
Number
Number of production staff
47
48
Number of administrative staff
16
15
63
63

Their aggregate remuneration comprised:

Group
2023
2022
£
£
Wages and salaries
2,746,443
2,853,576
Social security costs
376,542
317,160
Pension costs
166,811
149,115
3,289,796
3,319,851
L.A. KATTENHORN & PARTNERS (HOLDINGS) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2023
- 22 -
7
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 directors are also considered to be the key management personnel of the group.

8
Interest payable and similar expenses
2023
2022
£
£
Other finance costs:
Interest on finance leases and hire purchase contracts
2,302
1,126
9
Taxation
2023
2022
£
£
Current tax
UK corporation tax on profits for the current period
-
0
51,691
Tax losses carried back to prior period
(11,141)
-
0
Total current tax
(11,141)
51,691
Deferred tax
Origination and reversal of timing differences
(35,360)
24,954
Changes in tax rates
50,069
-
0
Total deferred tax
14,709
24,954
Total tax charge
3,568
76,645
L.A. KATTENHORN & PARTNERS (HOLDINGS) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2023
9
Taxation
(Continued)
- 23 -

The charge for the year can be reconciled to the loss per the profit and loss account as follows:

2023
2022
£
£
(Loss)/profit before taxation
(96,185)
389,148
Expected tax (credit)/charge based on the standard rate of corporation tax in the UK of 19.00% (2022: 19.00%)
(18,275)
73,938
Tax effect of expenses that are not deductible in determining taxable profit
5,037
3,277
Deferred tax adjustments in respect of prior years
664
(184)
Deferred tax due to change in effective future tax rate
50,069
(386)
Enhanced capital allowances
(33,927)
-
0
Taxation charge
3,568
76,645

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.

10
Interest receivable and similar income
2023
2022
£
£
Interest income
Interest on bank deposits
31,854
1,311
Corporation tax interest received
430
-
Total income
32,284
1,311
11
Dividends
2023
2022
£
£
Final paid
270,500
277,500
L.A. KATTENHORN & PARTNERS (HOLDINGS) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2023
- 24 -
12
Fixed asset investments
Group
Company
2023
2022
2023
2022
Notes
£
£
£
£
Investments in subsidiaries
13
-
0
-
0
150
150
13
Subsidiaries

Details of the company's subsidiaries at 30 April 2023 are as follows:

Name of undertaking
Registered office
Class of
% Held
shares held
Direct
L.A. Kattenhorn & Partners Limited
England & Wales
Ordinary shares
100.00
14
Tangible fixed assets
Group
Freehold land and buildings
Plant and Machinery
Fixtures, fittings & equipment
Motor vehicles
Total
£
£
£
£
£
Cost
At 1 May 2022
639,037
3,248,573
78,586
1,028,932
4,995,128
Additions
18,180
528,621
51,788
90,037
688,626
Disposals
-
0
(440,119)
-
0
(161,533)
(601,652)
At 30 April 2023
657,217
3,337,075
130,374
957,436
5,082,102
Depreciation and impairment
At 1 May 2022
275,082
2,215,385
35,316
627,321
3,153,104
Depreciation charged in the year
12,826
372,653
23,765
120,416
529,660
Eliminated in respect of disposals
-
0
(368,907)
-
0
(145,931)
(514,838)
At 30 April 2023
287,908
2,219,131
59,081
601,806
3,167,926
Carrying amount
At 30 April 2023
369,309
1,117,944
71,293
355,630
1,914,176
At 30 April 2022
363,955
1,033,187
43,270
401,612
1,842,024
L.A. KATTENHORN & PARTNERS (HOLDINGS) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2023
14
Tangible fixed assets
(Continued)
- 25 -
Company
Freehold land and buildings
Plant and Machinery
Motor vehicles
Total
£
£
£
£
Cost
At 1 May 2022
639,037
2,953,139
990,542
4,582,718
Additions
18,180
525,032
90,037
633,249
Disposals
-
0
(350,119)
(161,533)
(511,652)
At 30 April 2023
657,217
3,128,052
919,046
4,704,315
Depreciation and impairment
At 1 May 2022
275,082
1,961,505
592,773
2,829,360
Depreciation charged in the year
12,826
366,194
119,455
498,475
Eliminated in respect of disposals
-
0
(294,925)
(145,931)
(440,856)
At 30 April 2023
287,908
2,032,774
566,297
2,886,979
Carrying amount
At 30 April 2023
369,309
1,095,278
352,749
1,817,336
At 30 April 2022
363,955
991,634
397,769
1,753,358

The net carrying value of tangible fixed assets includes the following in respect of assets held under finance leases or hire purchase contracts.

Group
Company
2023
2022
2023
2022
£
£
£
£
Plant and Machinery
182,250
66,229
182,250
66,229
Depreciation charge for the year in respect of leased assets
60,750
22,077
60,750
22,077
L.A. KATTENHORN & PARTNERS (HOLDINGS) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2023
- 26 -
15
Stocks
Group
Company
2023
2022
2023
2022
£
£
£
£
Work in progress
759,154
-
759,154
-
Fuel and tarmac materials
3,001
4,047
-
0
-
0
762,155
4,047
759,154
-
16
Debtors
Group
Company
2023
2022
2023
2022
Amounts falling due within one year:
£
£
£
£
Trade debtors
1,432,482
1,752,165
-
0
-
0
Amounts recoverable on contracts
485,525
559,149
-
0
-
0
Corporation tax recoverable
11,141
-
0
-
0
-
0
Amounts owed by group undertakings
-
-
641,356
934,860
Other debtors
173,813
319,442
31,203
11,380
Prepayments and accrued income
94,338
53,884
-
0
-
0
2,197,299
2,684,640
672,559
946,240
17
Creditors: amounts falling due within one year
Group
Company
2023
2022
2023
2022
Notes
£
£
£
£
Obligations under finance leases and hire purchase agreements
54,528
13,070
54,528
13,070
Trade creditors
1,957,636
1,906,489
1,993
653
Corporation tax payable
-
0
51,691
-
0
-
0
Other taxation and social security
71,217
66,710
-
-
Other creditors
(1,789)
10,647
(21,998)
115
Accruals and deferred income
145,364
143,216
5,149
4,898
2,226,956
2,191,823
39,672
18,736

The finance lease liabilities and hire purchase agreements are secured on the assets to which they relate.

L.A. KATTENHORN & PARTNERS (HOLDINGS) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2023
- 27 -
18
Creditors: amounts falling due after more than one year
Group
Company
2023
2022
2023
2022
Notes
£
£
£
£
Obligations under finance leases and hire purchase agreements
108,805
52,022
108,805
52,022

The finance lease liabilities and hire purchase agreements are secured on the assets to which they relate.

19
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 scheme for all qualifying employees. The assets of the scheme are held separately from those of the company in an independently administered fund.

L.A. KATTENHORN & PARTNERS (HOLDINGS) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2023
- 28 -
20
Deferred taxation

Deferred tax assets and liabilities are offset where the group or 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
Group
£
£
Accelerated capital allowances
319,915
194,206
Tax losses
(110,907)
-
Retirement benefit obligations
(390)
(297)
208,618
193,909
Liabilities
Liabilities
2023
2022
Company
£
£
Accelerated capital allowances
305,331
181,059
Tax losses
(110,907)
-
194,424
181,059
Group
Company
2023
2023
Movements in the year:
£
£
Liability at 1 May 2022
193,909
181,059
Charge to profit or loss
14,709
13,365
Liability at 30 April 2023
208,618
194,424

 

L.A. KATTENHORN & PARTNERS (HOLDINGS) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2023
- 29 -
21
Share capital
Group and company
2023
2022
Ordinary share capital
£
£
Issued and fully paid
80 Ordinary shares of £1 each
80
80
40 Ordinary A shares of £1 each
40
40
30 Ordinary B shares of £1 each
30
30
150
150
22
Related party transactions

Mr L A Kattenhorn is the controlling party of L A Kattenhorn and Partners (Holdings) Limited, by virtue of his majority shareholding in the equity share capital of the company.

23
Cash generated from group operations
2023
2022
£
£
(Loss)/profit for the year after tax
(99,753)
312,503
Adjustments for:
Taxation charged
3,568
76,645
Finance costs
2,302
1,126
Investment income
(32,284)
(1,311)
Gain on disposal of tangible fixed assets
(66,687)
(31,638)
Depreciation and impairment of tangible fixed assets
529,660
522,249
Movements in working capital:
(Increase)/decrease in stocks
(758,108)
15,869
Decrease in debtors
518,305
398,267
Increase/(decrease) in creditors
25,543
(271,545)
Cash generated from operations
122,546
1,022,165
L.A. KATTENHORN & PARTNERS (HOLDINGS) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2023
- 30 -
24
Analysis of changes in net funds - group
1 May 2022
Cash flows
New finance leases and hire purchase agreements
30 April 2023
£
£
£
£
Cash at bank and in hand
7,931,148
(606,547)
-
7,324,601
Obligations under finance leases
(65,092)
78,529
(176,770)
(163,333)
7,866,056
(528,018)
(176,770)
7,161,268
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