Company registration number 10806913 (England and Wales)
KENNELPAK HOLDINGS LTD
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023
KENNELPAK HOLDINGS LTD
COMPANY INFORMATION
Directors
Mrs C L Bayliss
Mr J C M Woolley
Mr L M Abbott
Company number
10806913
Registered office
Palmer Drive
Stapleford
Nottingham
United Kingdom
NG9 7BW
Auditor
Azets Audit Services
2 Regan Way
Chetwynd Business Park
Chilwell
Nottingham
United Kingdom
NG9 6RZ
KENNELPAK HOLDINGS LTD
CONTENTS
Page
Strategic report
1 - 3
Directors' report
4 - 5
Directors' responsibilities statement
6
Independent auditor's report
7 - 9
Group statement of comprehensive income
10
Group balance sheet
11 - 12
Company balance sheet
13
Group statement of changes in equity
14
Company statement of changes in equity
15
Group statement of cash flows
16
Notes to the financial statements
17 - 34
KENNELPAK HOLDINGS LTD
STRATEGIC REPORT
FOR THE YEAR ENDED 31 MARCH 2023
- 1 -

The DIrectors present the strategic report for the year ended 31 March 2023.

Fair review of the business

As Kennelpak approaches its 50th anniversary, it is uniquely positioned within the UK pet care sector to be the trusted pet specialist for pets, their parents and its partners, offering a pet care ecosystem that monetises its portfolio of own and distributor brands, bringing together a range of products, services, expertise and strategic partnerships across its wholesale and retail divisions.

Kennelpak is a specialist wholesaler, brand owner & distributor providing a turnkey solution for manufacturers and customers alike. With an established nationwide customer base, including all pet wholesalers, the division has access to all specialist retail channels which, coupled with Kennelpak’s unique solution for secondary and residual product handling, makes the group the go to partner for manufacturers, brand owners and retailers.

The retail division, Pets and Friends, consists of 19 stores and 16 grooming salons including the recently opened concession within Brigg Garden Centre and an enhanced ecommerce and subscription platform enabling a truly omnichannel customer proposition. Its vision is to build on the expertise and passion of its colleagues to create a community of happy, healthy pets and responsible pet parents, becoming the number one choice for pet parents, providing all they need in one place, offering expert advice and support, giving them ultimate peace of mind.

Following the appointment of a new CEO in June 2021, the group has invested in:

 

Kennelpak is well placed to maximise the opportunity in pet ownership and the continuing trend in the humanisation of pets, offering significant headroom for growth.

Principal risks and uncertainties including financial risk management objectives and policies

The principal risks and uncertainties faced by the business and their mitigating activities are as follows:

 

Key performance indicators

The key performance indicator of the Group is considered by the Directors to be EBITDA.  The EBITDA for the year ended 31 March 2023 is £474,364  (2022: £1,282,875). The decline in EBITDA is due to investment in the growth strategy.  EBITDA is calculated by taking the operating profit, adding back the amortisation, depreciation and exceptional items.  The full reconciliation is provided in Note 8.

 

The Directors' assessment of performance is analysed below:

2023
2022
£
£
Turnover
33,878,769
33,853,471
EBITDA
474,364
1,282,875
KENNELPAK HOLDINGS LTD
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 2 -

Environmental, Social and Governance

 

There is an Environmental, Social and Governance charter that defines Kennelpak’s objectives in ensuring a better future for its colleagues, pet communities and the planet. It has been created with extensive input from colleagues across the business in collaborative forums and the delivery of the promises set out in its charter is governed by a colleague wide ESG Steering Group. The objectives are both short and long term and includes colleague wellbeing and personal development; using waste beneficially; management of its carbon footprint; and supporting pet health and wellbeing within multiple pet communities through various initiatives.

 

The Group has policies that raise awareness of modern slavery, ethical trading and human rights. The policies set out standards concerning safe and fair working conditions for colleagues, responsible management of social and environmental issues and standards in the international supply chain. The Group continues to work with its supply chain to ensure there is a zero-tolerance policy to slavery, we carry out audits on key partners to monitor this.

    

The Group has policies that promote equality and diversity in the workplace as well as prohibiting discrimination in any form. One of the Group’s core values is respect for others which displays an active commitment to diversity and inclusion across the organisation. We conduct a gender pay review and we are making progress to close the gap.

    

Applications for employment by disabled persons are always fully considered, bearing in mind the aptitudes of the applicant concerned. In the event of members of staff becoming disabled, every effort is made to ensure that their employment within the group continues and that the appropriate training is arranged. It is the policy of the group that the training, career development and promotion of disabled persons should, as far as possible, be identical to that of other colleagues.

 

Employee/Colleague Involvement

 

The Group carries out an annual engagement survey. The output of this is reviewed in detail with focus groups to address any areas of concern or opportunities for improvement.

 

There are robust channels of communication with colleagues across the Group through huddles; town halls; the fortnightly publication of The Repawter, the Group’s internal newspaper; a quarterly colleague panel; and monthly people surgeries, all of which seek to achieve a common awareness on the part of all colleagues of the financial and economic factors affecting the group's performance in addition to celebrating success and delivering the business strategy.

 

The group has a number of fundamental principles that it believes are the foundation of sound and fair business practice, one of which is a zero tolerance on bribery and corruption.

 

Health and Safety

 

The Group considers this an important consideration. There is a Health and Safety report that is reviewed at the monthly Board meeting. There are representatives from across the business that are tasked with delivering the 2-year plan to ensure our ongoing compliance including regular training.

KENNELPAK HOLDINGS LTD
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 3 -

Future Developments    

 

The Directors anticipate the business environment will remain competitive within retail and online, however they believe the Group is in a good financial position to respond to any changes in market conditions.

    

The Group will continue to look for further opportunities for growth in all areas of the business through:

 

Going Concern

 

The Directors have reviewed the detailed financial projections, including both profit and loss forecasts as well as cash-flow forecasts and considered all reasonably foreseeable potential scenarios and uncertainties, they have satisfied themselves that the group will continue in operational existence for a period of at least 12 months from the signing of these financial statements and have therefore prepared the financial statement on a going concern basis and that no material uncertainty exists.

On behalf of the board

Mrs C L Bayliss
Director
6 July 2023
KENNELPAK HOLDINGS LTD
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 MARCH 2023
- 4 -

The Directors present their annual report and financial statements for the year ended 31 March 2023.

Principal activities

The principal activity of the company was that of holding investments in subsidiary companies. The principal activities of the subsidiary companies were that of the processing and distribution of pet foods and related accessories.

Results and dividends

The results for the year are set out on page 10.

No ordinary dividends were paid. The Directors do not recommend payment of a further dividend.

Directors

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

Mrs C L Bayliss
Mr J C M Woolley
Mr J W Black
(Appointed 24 May 2022 and resigned 2 December 2022)
Mr L M Abbott
(Appointed 2 December 2022)
Disabled persons

Applications for employment by disabled persons are always fully considered, bearing in mind the aptitudes of the applicant concerned. In the event of members of staff becoming disabled, every effort is made to ensure that their employment within the group continues and that the appropriate training is arranged. It is the policy of the group that the training, career development and promotion of disabled persons should, as far as possible, be identical to that of other employees.

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

Strategic report

The trueGroup has chosen in accordance with Companies Act 2006, s. 414C(11) to set out in the Group's strategic report information required by Large and Medium-sized Companies and Groups (Accounts and Reports) Regulations 2008, Sch. 7 to be contained in the directors' report. It has done so in respect of future developments, employee involvement and financial risk management objectives and policies

Auditor

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

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.

KENNELPAK HOLDINGS LTD
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 5 -
On behalf of the board
Mrs C L Bayliss
Director
6 July 2023
KENNELPAK HOLDINGS LTD
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 31 MARCH 2023
- 6 -

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.

KENNELPAK HOLDINGS LTD
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF KENNELPAK HOLDINGS LTD
- 7 -
Opinion

We have audited the financial statements of Kennelpak Holdings Ltd (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 March 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.

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:

KENNELPAK HOLDINGS LTD
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF KENNELPAK HOLDINGS LTD
- 8 -
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.

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.

A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.

KENNELPAK HOLDINGS LTD
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF KENNELPAK HOLDINGS LTD
- 9 -

Extent to which the audit was considered capable of detecting irregularities, including fraud

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above and on the Financial Reporting Council’s website, to detect material misstatements in respect of irregularities, including fraud.

 

We obtain and update our understanding of the entity, its activities, its control environment, and likely future developments, including in relation to the legal and regulatory framework applicable and how the entity is complying with that framework.  Based on this understanding, we identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion.  This includes consideration of the risk of acts by the entity that were contrary to applicable laws and regulations, including fraud.

 

In response to the risk of irregularities and non-compliance with laws and regulations, including fraud, we designed procedures which included:

 

 

Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation.  This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance.  The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.

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.

Mr Mitesh Thakrar (Senior Statutory Auditor)
For and on behalf of Azets Audit Services
6 July 2023
Chartered Accountants
Statutory Auditor
2 Regan Way
Chetwynd Business Park
Chilwell
Nottingham
United Kingdom
NG9 6RZ
KENNELPAK HOLDINGS LTD
GROUP STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 MARCH 2023
- 10 -
2023
2022
Notes
£
£
Turnover
3
33,878,769
33,853,471
Cost of sales
(25,544,775)
(25,784,733)
Gross profit
8,333,994
8,068,738
Distribution costs
(3,814,355)
(3,239,448)
Administrative expenses
(5,318,354)
(4,770,019)
Exceptional item
4
(29,224)
(196,227)
Operating loss
6
(827,939)
(136,956)
Interest payable and similar expenses
10
(906,898)
(882,874)
Loss before taxation
(1,734,837)
(1,019,830)
Tax on loss
11
-
0
-
0
Loss for the financial year
28
(1,734,837)
(1,019,830)
Loss 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 17 to 34 form part of these financial statements.

KENNELPAK HOLDINGS LTD
GROUP BALANCE SHEET
AS AT
31 MARCH 2023
31 March 2023
- 11 -
2023
2022
Notes
£
£
£
£
Fixed assets
Goodwill
12
2,276,749
2,767,812
Other intangible assets
12
209,220
65,596
Total intangible assets
2,485,969
2,833,408
Tangible assets
13
4,496,251
4,517,835
6,982,220
7,351,243
Current assets
Stocks
16
3,755,212
3,426,770
Debtors
17
3,102,077
2,812,547
Cash at bank and in hand
284,937
205,157
7,142,226
6,444,474
Creditors: amounts falling due within one year
18
(10,048,190)
(7,787,012)
Net current liabilities
(2,905,964)
(1,342,538)
Total assets less current liabilities
4,076,256
6,008,705
Creditors: amounts falling due after more than one year
19
(11,199,002)
(11,396,614)
Provisions for liabilities
Provisions
23
551,681
551,681
Deferred tax liability
22
164,284
164,284
(715,965)
(715,965)
Net liabilities
(7,838,711)
(6,103,874)
Capital and reserves
Called up share capital
24
696
696
Share premium account
25
90,829
90,829
Revaluation reserve
26
52,407
52,407
Profit and loss reserves
28
(7,982,643)
(6,247,806)
Total equity
(7,838,711)
(6,103,874)

The notes on pages 17 to 34 form part of these financial statements.

KENNELPAK HOLDINGS LTD
GROUP BALANCE SHEET (CONTINUED)
AS AT
31 MARCH 2023
31 March 2023
- 12 -
The financial statements were approved by the board of directors and authorised for issue on 6 July 2023 and are signed on its behalf by:
06 July 2023
Mrs C L Bayliss
Director
KENNELPAK HOLDINGS LTD
COMPANY BALANCE SHEET
AS AT 31 MARCH 2023
31 March 2023
- 13 -
2023
2022
Notes
£
£
£
£
Fixed assets
Investments
14
1
1
Current assets
-
-
Creditors: amounts falling due within one year
18
(393,088)
(388,088)
Net current liabilities
(393,088)
(388,088)
Net liabilities
(393,087)
(388,087)
Capital and reserves
Called up share capital
24
696
696
Share premium account
25
90,829
90,829
Profit and loss reserves
28
(484,612)
(479,612)
Total equity
(393,087)
(388,087)

The notes on pages 17 to 34 form part of these financial statements.

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 £5,000 (2022 - £5,000 loss).

The financial statements were approved by the board of directors and authorised for issue on 6 July 2023 and are signed on its behalf by:
06 July 2023
Mrs C L Bayliss
Director
Company Registration No. 10806913
KENNELPAK HOLDINGS LTD
GROUP STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 MARCH 2023
- 14 -
Share capital
Share premium account
Revaluation reserve
Profit and loss reserves
Total
£
£
£
£
£
Balance at 1 April 2021
696
90,829
52,407
(5,227,976)
(5,084,044)
Year ended 31 March 2022:
Loss and total comprehensive income for the year
-
-
-
(1,019,830)
(1,019,830)
Balance at 31 March 2022
696
90,829
52,407
(6,247,806)
(6,103,874)
Year ended 31 March 2023:
Loss and total comprehensive income for the year
-
-
-
(1,734,837)
(1,734,837)
Balance at 31 March 2023
696
90,829
52,407
(7,982,643)
(7,838,711)

The notes on pages 17 to 34 form part of these financial statements.

KENNELPAK HOLDINGS LTD
COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 MARCH 2023
- 15 -
Share capital
Share premium account
Profit and loss reserves
Total
£
£
£
£
Balance at 1 April 2021
696
90,829
(474,612)
(383,087)
Year ended 31 March 2022:
Loss and total comprehensive income for the year
-
-
(5,000)
(5,000)
Balance at 31 March 2022
696
90,829
(479,612)
(388,087)
Year ended 31 March 2023:
Loss and total comprehensive income for the year
-
-
(5,000)
(5,000)
Balance at 31 March 2023
696
90,829
(484,612)
(393,087)

The notes on pages 17 to 34 form part of these financial statements.

KENNELPAK HOLDINGS LTD
GROUP STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 MARCH 2023
- 16 -
2023
2022
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
32
565,569
114,159
Interest paid
(166,613)
(164,152)
Income taxes paid
-
(51,418)
Net cash inflow/(outflow) from operating activities
398,956
(101,411)
Investing activities
Purchase of intangible assets
(165,097)
(950)
Purchase of tangible fixed assets
(387,005)
(464,690)
Proceeds on disposal of tangible fixed assets
-
2,500
Net cash used in investing activities
(552,102)
(463,140)
Financing activities
Proceeds of new bank loans
-
50,000
Repayment of bank loans
269,811
309,275
Payment of finance leases obligations
(36,885)
(7,348)
Net cash generated from financing activities
232,926
351,927
Net increase/(decrease) in cash and cash equivalents
79,780
(212,624)
Cash and cash equivalents at beginning of year
205,157
417,781
Cash and cash equivalents at end of year
284,937
205,157
KENNELPAK HOLDINGS LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023
- 17 -
1
Accounting policies
Company information

Kennelpak Holdings Ltd (“the company”) is a private limited company limited by shares and domiciled and incorporated in England and Wales. The registered office is Palmer Drive, Stapleford, Nottingham, United Kingdom, NG9 7BW.

 

The group consists of Kennelpak Holdings Ltd 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 under the historical cost convention, modified to include the revaluation of freehold properties and to include investment properties and certain financial instruments at fair value. The principal accounting policies adopted are set out below.

The 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 for parent company information presented within the consolidated financial statements:

 

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 cost of the combination includes the estimated amount of contingent consideration that is probable and can be measured reliably, and is adjusted for changes in contingent consideration after the acquisition date. Provisional fair values recognised for business combinations in previous periods are adjusted retrospectively for final fair values determined in the 12 months following the acquisition date. Investments in subsidiaries, joint ventures and associates are accounted for at cost less impairment.

 

Deferred tax is recognised on differences between the value of assets (other than goodwill) and liabilities recognised in a business combination accounted for using the purchase method and the amounts that can be deducted or assessed for tax, considering the manner in which the carrying amount of the asset or liability is expected to be recovered or settled. The deferred tax recognised is adjusted against goodwill or negative goodwill.

KENNELPAK HOLDINGS LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
1
Accounting policies
(Continued)
- 18 -

The consolidated group financial statements consist of the financial statements of the parent company Kennelpak Holdings Ltd together with all entities controlled by the parent company (its subsidiaries) and the group’s share of its interests in joint ventures and associates.

 

All financial statements are made up to 31 March 2023. Where necessary, adjustments are made to the financial statements of subsidiaries to bring the accounting policies used into line with those used by other members of the group.

 

All intra-group transactions, balances and unrealised gains on transactions between group companies are eliminated on consolidation. Unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred.

Kennelpak Limited has been included in the group financial statements using the purchase method of accounting. Accordingly, the group profit and loss account and statement of cash flows include the results and cash flows of Kennelpak Limited for the period from its acquisition on 7 July 2017. The purchase consideration has been allocated to the assets and liabilities on the basis of fair value at the date of acquisition.

 

The group profit and loss account and statement of cash flows also include the results and cash flows of Kennelpak Group Ltd for the period from its incorporation on 7 June 2017.

1.3
Going concern

The Directors have reviewed detailed financial projections, including both profit and loss forecasts as well as cash-flow forecasts and considered all reasonably foreseeable potential scenarios and uncertainties in respect of the Group. As a result, the Directors have satisfied themselves that the Group will continue in operational existence for a period of at least 12 months from the signing of these financial statements and have therefore prepared the financial statement on a going concern basis and that no material uncertainty exists.

1.4
Turnover

Turnover is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business, and is shown net of VAT.

Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer on dispatch of the goods.

1.5
Intangible fixed assets - goodwill

Goodwill represents the excess of the cost of acquisition of a business over the fair value of net assets acquired. It is initially recognised as an asset at cost and is subsequently measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill arising on the acquisition of Kennelpak Group Ltd and its subsidiary Kennelpak Limited is considered to have a finite useful life and is amortised on a systematic basis over its expected life, which is 10 years.

 

For the purposes of impairment testing, goodwill is allocated to the cash-generating units expected to benefit from the acquisition. Cash-generating units to which goodwill has been allocated are tested for impairment at least annually, or more frequently when there is an indication that the unit may be impaired. If the recoverable amount of the cash-generating unit is less than the carrying amount of the unit, the impairment loss is allocated first to reduce the carrying amount of any goodwill allocated to the unit and then to the other assets of the unit pro-rata on the basis of the carrying amount of each asset in the unit.

KENNELPAK HOLDINGS LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
1
Accounting policies
(Continued)
- 19 -
1.6
Intangible fixed assets other than goodwill

Intangible assets acquired separately from a business are recognised at cost and are subsequently measured at cost less accumulated amortisation and accumulated impairment losses.

 

Intangible assets acquired on business combinations are recognised separately from goodwill at the acquisition date where it is probable that the expected future economic benefits that are attributable to the asset will flow to the entity and the fair value of the asset can be measured reliably; the intangible asset arises from contractual or other legal rights; and the intangible asset is separable from the entity.

Amortisation 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:

Software costs
20% straight line
1.7
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.

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 buildings
2% straight line
Short leasehold improvements
Over term of the lease
Plant and equipment
15% straight line
Fixtures, fittings & computer equipment
15% - 33% straight line
Motor vehicles
20% straight line

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.

1.8
Fixed asset investments

In the parent company financial statements, investments in subsidiaries 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.

1.9
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).

 

If the recoverable amount of an asset is estimated to be less than its carrying amount, the carrying amount of the asset is reduced to its recoverable amount.

1.10
Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition.

KENNELPAK HOLDINGS LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
1
Accounting policies
(Continued)
- 20 -
1.11
Cash and cash equivalents

Cash at bank and in hand 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.

1.12
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.

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 less impairment.

Impairment of financial assets

Financial assets are assessed for indicators of impairment at each reporting end date. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.

Derecognition of financial assets

Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the group transfers the financial asset and substantially all the risks and rewards of ownership to another entity.

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, bank loans and loan notes 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.

 

Trade payables are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers.

 

Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

Derecognition of financial liabilities

Financial liabilities are derecognised when the group's contractual obligations expire or are discharged or cancelled.

1.13
Equity instruments

Equity instruments issued by the group are recorded at the proceeds received. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the group.

KENNELPAK HOLDINGS LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
1
Accounting policies
(Continued)
- 21 -
1.14
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.

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.

1.15
Provisions

Provisions are recognised when the group has a legal or constructive present obligation as a result of a past event, it is probable that the group will be required to settle that obligation and a reliable estimate can be made of the amount of the obligation.

 

The amount recognised as a provision is the best estimate of the consideration required to settle the present obligation at the reporting end date, taking into account the risks and uncertainties surrounding the obligation. Where the effect of the time value of money is material, the amount expected to be required to settle the obligation is recognised at present value. When a provision is measured at present value, the unwinding of the discount is recognised as a finance cost in profit or loss in the period in which it arises.

 

Dilapidation provisions relating to leasehold properties are capitalised and depreciated over the life of the respective lease.

1.16
Employee benefits

The costs of short-term employee benefits are recognised as a liability and an expense. The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received. Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

1.17
Retirement benefits

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

KENNELPAK HOLDINGS LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
1
Accounting policies
(Continued)
- 22 -
1.18
Leases

Leases are classified as finance leases 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 finance leases 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 income on a straight line basis over the term of the relevant lease.

1.19
Foreign exchange

Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation in the period are included in profit or loss.

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.

Key sources of estimation uncertainty

The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are as follows.

Impairment of goodwill

Determining whether goodwill is impaired requires an estimation of the value in use of the cash generating units to which goodwill has been allocated. The value in use calculation requires the entity to estimate the future cash flows expected to arise from the cash generating unit and a suitable discount rate in order to calculate present value. The carrying amount of goodwill at the reporting end date was £2,276,749. No impairment loss was recognised during the year.

 

Freehold property valuation

At each reporting date, management makes an assessment of the value of freehold land and buildings. These estimates take into account previous professional valuations and an estimate of any changes, which involves an element of estimation. At the 31 March 2023 the valuation made by the Directors was £3,235,000.

Dilapidation provision

The Directors assess the cost of dilapidations each year end based upon the state of the leasehold properties at each year end. This assessment includes an estimate of the state of remedial works required and the associated costs that would be incurred at the expected date of exiting the respective premises. These estimates take into account the most recent professional review of dilapidations together with a review of any significant changes since. Details of the dilapidation provision are shown in note 23.

KENNELPAK HOLDINGS LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 23 -
3
Turnover
2023
2022
£
£
Turnover analysed by class of business
Wholesale sales of pet foods and related accessories
18,042,952
19,917,231
Retail sales of pet foods and related accessories including wesbite
15,835,817
13,936,240
33,878,769
33,853,471
2023
2022
£
£
Turnover analysed by geographical market
United Kingdom
32,611,807
32,993,482
Overseas
1,266,962
859,989
33,878,769
33,853,471
4
Exceptional costs
2023
2022
£
£
Strategy consultations
-
58,100
Recruitment fees
-
57,750
Legal costs
23,095
5,000
Employee related costs
6,128
75,377
29,224
196,227
5
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
5,000
5,000
Audit of the financial statements of the company's subsidiaries
33,450
18,965
38,450
23,965
KENNELPAK HOLDINGS LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 24 -
6
Operating loss
2023
2022
£
£
Operating loss for the year is stated after charging:
Depreciation of owned tangible fixed assets
433,141
368,948
Depreciation of tangible fixed assets held under finance leases
23,857
-
(Profit)/loss on disposal of tangible fixed assets
-
3,156
Amortisation of intangible assets
512,536
574,099
Operating lease charges
582,667
442,081

The amortisation of intangible assets is included within administration expenses.

7
Employees

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

Group
Company
2023
2022
2023
2022
Number
Number
Number
Number
Central support
59
47
3
2
Factory
18
23
-
-
Store
205
183
-
-
Warehouse and distribution
16
15
-
-
Total
298
268
3
2

Their aggregate remuneration comprised:

Group
Company
2023
2022
2023
2022
£
£
£
£
Wages and salaries
6,183,783
5,368,959
-
0
-
0
Social security costs
513,703
406,904
-
-
Pension costs
133,183
102,801
-
0
-
0
6,830,669
5,878,664
-
0
-
0
KENNELPAK HOLDINGS LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 25 -
8
Earnings before interest, taxation, depreciation and amortisation

The group's EBITDA and reconciliation to loss before taxation is as follows:

2023
2022
£
£
Loss before taxation
(1,734,837)
(1,019,830)
Depreciation
456,998
368,948
Loss on disposal of fixed assets
-
3,156
Amortisation
512,536
574,099
Interest
906,898
882,874
Exceptional costs
29,224
196,227
Other non operational costs
303,545
277,401
EBITDA
474,364
1,282,875
9
Directors' remuneration
2023
2022
£
£
Remuneration for qualifying services
262,734
229,656
Remuneration disclosed above includes the following amounts paid to the highest paid director:
2023
2022
£
£
Remuneration for qualifying services
262,734
154,496
10
Interest payable and similar expenses
2023
2022
£
£
Interest on bank overdrafts and loans
72,827
53,861
Interest on finance leases and hire purchase contracts
6,935
4,347
Interest on debenture loan notes
819,345
816,875
Other interest
-
7,791
Total finance costs
906,898
882,874
KENNELPAK HOLDINGS LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 26 -
11
Taxation

The actual charge for the year can be reconciled to the expected credit for the year based on the profit or loss and the standard rate of tax as follows:

2023
2022
£
£
Loss before taxation
(1,734,837)
(1,019,830)
Expected tax credit based on the standard rate of corporation tax in the UK of 19.00% (2022: 19.00%)
(329,619)
(193,768)
Tax effect of expenses that are not deductible in determining taxable profit
103,558
168,324
Change in unrecognised deferred tax assets
230,282
60,892
Permanent capital allowances in excess of depreciation
(4,945)
(14,338)
Depreciation on assets not qualifying for tax allowances
56,563
44,205
Other permanent differences
(571)
340
Impact of changes in tax rates
(55,268)
(65,655)
Taxation charge
-
-
12
Intangible fixed assets
Group
Goodwill
Software costs
Total
£
£
£
Cost
At 1 April 2022
5,357,056
187,732
5,544,788
Additions
-
0
165,097
165,097
Transfers
-
0
23,349
23,349
At 31 March 2023
5,357,056
376,178
5,733,234
Amortisation and impairment
At 1 April 2022
2,589,244
122,136
2,711,380
Amortisation charged for the year
491,063
21,473
512,536
Transfers
-
0
23,349
23,349
At 31 March 2023
3,080,307
166,958
3,247,265
Carrying amount
At 31 March 2023
2,276,749
209,220
2,485,969
At 31 March 2022
2,767,812
65,596
2,833,408
The company had no intangible fixed assets at 31 March 2023 or 31 March 2022.
KENNELPAK HOLDINGS LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 27 -
13
Tangible fixed assets
Group
Freehold buildings
Other fixed assets
Total
£
£
£
Cost or valuation
At 1 April 2022 as restated
3,235,000
1,671,848
4,906,848
Additions
-
0
443,556
443,556
Transfers
-
0
(12,021)
(12,021)
At 31 March 2023
3,235,000
2,103,383
5,338,383
Depreciation and impairment
At 1 April 2022 as restated
-
0
389,013
389,013
Depreciation charged in the year
-
0
456,998
456,998
Transfers
-
0
(3,879)
(3,879)
At 31 March 2023
-
842,132
842,132
Carrying amount
At 31 March 2023
3,235,000
1,261,251
4,496,251
At 31 March 2022 as restated
3,235,000
1,282,835
4,517,835
The company had no tangible fixed assets at 31 March 2023 or 31 March 2022.

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 equipment
30,487
36,472
-
0
-
0
Fixtures, fittings & computer equipment
106,285
124,157
-
0
-
0
136,772
160,629
-
-

Included in other fixed assets is short leasehold improvements with a net book value of £602,372 (2022: £716,021).

Freehold buildings were revalued during the year based on a directors valuation and no changes have arisen from the directors' valuation of £3,235,000 during the previous year.

The following assets are carried at valuation. If the assets were measured using the cost model, the carrying amounts would be as follows:

KENNELPAK HOLDINGS LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
13
Tangible fixed assets
(Continued)
- 28 -
2023
2022
£
£
Group
Cost
2,435,048
2,435,048
Accumulated depreciation
(194,800)
(146,100)
Carrying value
2,240,248
2,288,948
14
Fixed asset investments
Group
Company
2023
2022
2023
2022
Notes
£
£
£
£
Investments in subsidiaries
15
-
0
-
0
1
1
Fixed asset investments
Company
Shares in subsidiaries
£
Cost or valuation
At 1 April 2022 and 31 March 2023
1
Carrying amount
At 31 March 2023
1
At 31 March 2022
1
15
Subsidiaries

At 31 March 2021 the company owned 100% of the entire share capital of Kennelpak Group Ltd, a company registered in England and whose primary purpose is that of a investment company.

 

The following is the subsidiary undertaking of Kennelpak Group Ltd at 31 March 2021:

Name of undertaking
Nature of business
Class of
% Held
shares held
Direct
Kennelpak Limited
Wholesaler and retailer of pet food and related accessories
Ordinary
100

The registered office of both Kennelpak Group Ltd and Kennelpak Limited is Palmer Drive, Stapleford, Nottingham, England, NG9 7BW.

KENNELPAK HOLDINGS LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 29 -
16
Stocks
Group
Company
2023
2022
2023
2022
£
£
£
£
Raw materials and consumables
1,072,993
888,027
-
-
Finished goods and goods for resale
2,682,219
2,538,743
-
0
-
0
3,755,212
3,426,770
-
-
17
Debtors
Group
Company
2023
2022
2023
2022
Amounts falling due within one year:
£
£
£
£
Trade debtors
2,760,307
2,653,753
-
0
-
0
Other debtors
20,993
1,219
-
0
-
0
Prepayments and accrued income
320,777
157,575
-
0
-
0
3,102,077
2,812,547
-
-
18
Creditors: amounts falling due within one year
Group
Company
2023
2022
2023
2022
Notes
£
£
£
£
Bank loans
20
2,977,135
2,510,079
-
0
-
0
Obligations under finance leases
21
45,099
25,066
-
0
-
0
Trade creditors
3,429,502
2,225,237
-
0
-
0
Amounts owed to group undertakings
-
0
-
0
382,637
377,637
Other taxation and social security
659,374
493,891
-
-
Other creditors
32,353
35,994
1
1
Accruals and deferred income
2,904,727
2,496,745
10,450
10,450
10,048,190
7,787,012
393,088
388,088
19
Creditors: amounts falling due after more than one year
Group
Company
2023
2022
2023
2022
Notes
£
£
£
£
Debenture loans
20
10,276,908
10,276,908
-
0
-
0
Bank loans and overdrafts
20
858,243
1,055,488
-
0
-
0
Obligations under finance leases
21
63,851
64,218
-
0
-
0
11,199,002
11,396,614
-
-
KENNELPAK HOLDINGS LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 30 -
20
Loans and overdrafts
Group
Company
2023
2022
2023
2022
£
£
£
£
Debenture loans
10,276,908
10,276,908
-
0
-
0
Bank loans
3,835,378
3,565,567
-
0
-
0
14,112,286
13,842,475
-
-
Payable within one year
2,977,135
2,510,079
-
0
-
0
Payable after one year
11,135,151
11,332,396
-
0
-
0

The Debenture loans comprise £2,500,000 (2022: £2,500,000) 8% A1 loan notes repayable in July 2024, £6,754,675 (2022: £6,754,675) 8% A2 loan notes repayable in July 2024, and £1,022,233 (2022: £1,022,233) 8% loan notes repayable in July 2024 all of which are secured by a fixed and floating charge over the property and undertakings of the group.

 

Kennelpak Limited has entered into a Receivables finance facility, an Inventory facility and a Real property loan agreement. These are secured on book debts totalling £2,836,854, stock of £2,153,113 and the freehold properties of the company. Interest/discount rates are charged at 2.5%, 3.5% and 4.5% above the Bank of England's base rate on these facilities respectively. The liabilities due at the year end are £1,679,769 (2022: £1,735,305), £1,096,521 (2022: £524,479) and £1,058,247 (2022: £1,255,492) respectively and are wholly repayable within five years. Kennelpak Limited retains the risks and rewards of ownership of the related assets.

 

The finance company holds a fixed and floating charge under a Composite Debenture over the assets of the group.

21
Finance lease obligations
Group
Company
2023
2022
2023
2022
£
£
£
£
Future minimum lease payments due under finance leases:
Within one year
45,099
25,066
-
0
-
0
In two to five years
63,851
64,218
-
0
-
0
108,950
89,284
-
-

Finance lease payments represent rentals payable by the company or group for certain items of plant and machinery. Leases include purchase options at the end of the lease period, and no restrictions are placed on the use of the assets. The average lease term is five years. All leases are on a fixed repayment basis and no arrangements have been entered into for contingent rental payments.

KENNELPAK HOLDINGS LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 31 -
22
Deferred taxation

The following are the major deferred tax liabilities and assets recognised by the group and company, and movements thereon:

Liabilities
Liabilities
2023
2022
Group
£
£
Fair value adjustments on acquisition
164,284
164,284
The company has no deferred tax assets or liabilities.
There were no deferred tax movements in the year.
23
Provisions for liabilities
Group
Company
2023
2022 as restated
2023
2022
Notes
£
£
£
£
Dilapidations provision
551,681
551,681
-
-
Deferred tax liabilities
22
164,284
164,284
-
0
-
0
715,965
715,965
-
0
-
0
Movements on provisions apart from deferred tax liabilities:
Dilapidations provision
Group
£
At 1 April 2022 and 31 March 2023
551,681
24
Share capital
Group and company
2023
2022
2023
2022
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary A shares of 1p each
48,300
48,300
483
483
Ordinary B2 shares of 3p each
1,492
1,492
45
45
Ordinary C shares of 1p each
4,200
4,200
42
42
Ordinary B3 shares of 2p each
6,332
6,332
126
126
60,324
60,324
696
696
KENNELPAK HOLDINGS LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
24
Share capital
(Continued)
- 32 -

The A shares are entitled to dividends pari passu with the holders of the B and the C class of shares. Each holder of the A shares has one vote for each A share held, save that the holders of the B2 ordinary shares have, in aggregate, 5 per cent of the total voting rights capable of being passed and the holders of the B3 ordinary shares have 10.5 per cent of the total voting rights capable of being passed.

25
Share premium account
Group
Company
2023
2022
2023
2022
£
£
£
£
At the beginning and end of the year
90,829
90,829
90,829
90,829
26
Revaluation reserve
Group
Company
2023
2022
2023
2022
£
£
£
£
At the beginning and end of the year
52,407
52,407
-
0
-
27
Retirement benefit schemes
2023
2022
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
133,183
102,801

A defined contribution pension scheme is operated for all qualifying employees. The assets of the scheme are held separately from those of the group in an independently administered fund.

28
Profit and loss reserves
Group
Company
2023
2022
2023
2022
£
£
£
£
At the beginning of the year
(6,247,806)
(5,227,976)
(479,612)
(474,612)
Loss for the year
(1,734,837)
(1,019,830)
(5,000)
(5,000)
At the end of the year
(7,982,643)
(6,247,806)
(484,612)
(479,612)
KENNELPAK HOLDINGS LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 33 -
29
Operating lease commitments
Lessee

At the reporting end date the group had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:

Group
Company
2023
2022
2023
2022
£
£
£
£
Within one year
575,535
457,811
-
-
Between two and five years
1,637,357
1,410,067
-
-
In over five years
603,194
540,529
-
-
2,816,086
2,408,407
-
-
30
Related party transactions
Transactions with related parties

During the year the group entered into the following transactions with related parties:

Monitoring fees
Loan interest payable
2023
2022
2023
2022
£
£
£
£
Group
Entities with control, joint control or significant influence over the company
120,000
120,000
740,374
740,374

The following amounts were outstanding at the reporting end date:

Amounts due to related parties
2023
2022
£
£
Group
Entities with control, joint control or significant influence over the group
11,483,148
10,742,863
31
Controlling party

The ultimate controlling party is Endless Iv (Gp) Lp.

KENNELPAK HOLDINGS LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 34 -
32
Cash generated from group operations
2023
2022
£
£
Loss for the year after tax
(1,734,837)
(1,019,830)
Adjustments for:
Finance costs
906,898
882,874
(Gain)/loss on disposal of tangible fixed assets
-
3,156
Amortisation and impairment of intangible assets
512,536
574,099
Depreciation and impairment of tangible fixed assets
456,998
368,948
Movements in working capital:
(Increase)/decrease in stocks
(328,442)
201,199
(Increase)/decrease in debtors
(281,388)
365,159
Increase/(decrease) in creditors
1,033,804
(1,261,446)
Cash generated from operations
565,569
114,159
33
Analysis of changes in net debt - group
1 April 2022
Cash flows
New finance leases
31 March 2023
£
£
£
£
Cash at bank and in hand
205,157
79,780
-
284,937
Borrowings excluding overdrafts
(13,842,475)
(269,811)
-
(14,112,286)
Obligations under finance leases
(89,284)
36,885
(56,551)
(108,950)
(13,726,602)
(153,146)
(56,551)
(13,936,299)
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