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Registration number: 02118777

Kellaway Building Supplies Limited

Annual Report and Consolidated Financial Statements

for the Year Ended 31 August 2023

 

Kellaway Building Supplies Limited

Contents

Company Information

1

Directors' Report

2

Strategic Report

3 to 5

Statement of Directors' Responsibilities

6

Independent Auditor's Report

7 to 9

Consolidated Profit and Loss Account

10

Consolidated Balance Sheet

11

Balance Sheet

12

Consolidated Statement of Changes in Equity

13

Statement of Changes in Equity

14

Consolidated Statement of Cash Flows

15

Notes to the Financial Statements

16 to 33

 

Kellaway Building Supplies Limited

Company Information

Directors

B D Fleetwood

E Milligan

J E Milligan

S Morgan

M N Turner

Company secretary

J E Milligan

Registered office

Olympus House
Britannia Road
Patchway
Bristol
BS34 5TA

Solicitors

Harrison Clark Rickerbys LLP
5 Deansway
Worcester
WR1 2JG

Bankers

HSBC Bank PLC
6 Broad Street
Worcester
WR1 2EJ

Auditors

Hazlewoods LLP
Windsor House
Bayshill Road
Cheltenham
GL50 3AT

 

Kellaway Building Supplies Limited

Directors' Report for the Year Ended 31 August 2023

The directors present their report and the for the year ended 31 August 2023.

Directors of the company

The directors who held office during the year were as follows:

B D Fleetwood

E Milligan

J E Milligan

S Morgan

M N Turner

Future developments

The external commercial environment is expected to remain competitive in 2023/24, but the directors are confident in our ability to trade well and remain committed to growing and developing the business.

Disclosure of information to the auditor

Each director has taken the steps that they ought to have taken as a director in order to make themselves aware of any relevant audit information and to establish that the company's auditor is aware of that information. The directors confirm that there is no relevant information that they know of and of which they know the auditor is unaware.

Reappointment of auditors

Hazlewoods LLP have expressed their willingness to continue in office.

Approved by the Board on 9 February 2024 and signed on its behalf by:


J E Milligan
Director

 

Kellaway Building Supplies Limited

Strategic Report for the Year Ended 31 August 2023

The directors present their strategic report for the year ended 31 August 2023.

Principal activity

The principal activity of the company and group is that of the purchase and sale of building materials.

Fair review of the business

The directors consider that the result for the year and the financial position at the year end are satisfactory given the current economic environment.

At the end of the year, net assets totalled £11,124,504 (2022 - £10,406,923).

2023

2022

2021

2020

2019

Turnover

50,574,868

52,729,567

51,788,190

49,197,988

48,997,507

Turnover growth

-4%

2%

5%

1%

3%

Gross profit margin

23%

23%

23%

21%

21%

Profit before tax

1,383,889

2,891,043

2,631,148

1,472,145

1,097,084

Development and performance of the business

Financial instruments

Objectives and policies

The group is exposed to the usual credit and cash flow risk associated with selling on credit and manages this through credit control procedures. The nature of its financial instruments means that price and liquidity risks are minimised by the predetermination of the group funding facilities and terms. The board monitors the group's trading results with a view to ensuring that the group can meet its future obligations as they fall due.

Price risk, credit risk, liquidity risk and cash flow risk

The business' principal financial instruments comprise bank balances, trade debtors, trade creditors, loans to the
business and finance lease agreements. The main purpose of these instruments is to finance the business' operations.

In respect of bank balances, the liquidity risk is managed by maintaining a balance between the continuity of funding and flexibility through the use of overdrafts at floating rates of interest. All of the business' cash balances
are held in such a way that achieves a competitive rate of interest.

The bank loans are subject to price and liquidity risk, and is disclosed further in note 16 to the financial statements.

The business makes use of money market facilities where funds are available.

Trade debtors are managed in respect of credit and cash flow risk by policies concerning the credit offered to customers and the regular monitoring of amounts outstanding for both time and credit limits. The amounts presented in the balance sheet are net of allowances for doubtful debtors.

Trade creditors' liquidity risk is managed by ensuring sufficient funds are available to meet amounts due. Loans comprise loans from the directors and from financial institutions. The interest rate and monthly repayments on the loans from financial institutions are fixed. The business manages the liquidity risk by ensuring that there are sufficient funds to meet the payments.

The business is a lessee in respect of finance leased assets. The liquidity risk in respect of these is managed by
ensuring that there are sufficient funds to meet the payments.

 

Kellaway Building Supplies Limited

Strategic Report for the Year Ended 31 August 2023

Section 172 statement

The Directors believe that they have effectively implemented their duties under section 172 of the Companies Act 2006. The Company has considered the long term strategy of the business and consider that this strategy will continue to deliver long term success to the business and its stakeholders.

The Company is committed to maintain an excellent reputation and strives to achieve high standards. We are highly selective about the employees that we take on in order to deliver the best value to customers while also maintaining an awareness of the environmental impact of the work done and strive to reduce carbon footprint where possible. Continual training is also provided to ensure strong retention of staff, as well as employee involvement in ongoing strategic discussions.

The Directors recognise the importance of wider stakeholders in delivering their strategy and achieving sustainability within the business. The main stakeholders in the company are considered to be the employees, suppliers and customers.

In ensuring that all relevant stakeholders are considered as part of every decision process, we believe we act fairly between all members of the Company.

Strategy
The Group's primary area of activity was the purchase and sale of building materials. The Group believes that the key three drivers for its success are the continual focus on the high quality provision of services, the high level of effort from staff and strong financial control. These drivers support the delivery of the Group's objectives, customer's priorities and future opportunities.

Environment
The Group is aware of its environmental impact and is monitoring this. There have been some initiatives implemented to aid in decreasing the Group's carbon footprint, including a continued programme of fleet upgrades to improve fuel efficiency, installing more energy efficient lights, measures to minimise waste across the Group where possible, with items being recycled wherever possible and training of managers on environmental awareness.

Outlook for the business
The Directors expect that the next year will have a mix of challenges. However, the Directors believe that the Group is well positioned to manage resultant risk and prosper during the period due to its;

• committed workforce;
• broad spectrum of customers;
• strong balance sheet; and
• continued investment in staff development, best practice and modern processes and systems

Longer term prospects for Kellaway Building Supplies Limited are heavily linked with the wider UK economy.

Principal risks and uncertainties
Principal risks to the organisation are managed through organisation risk registers. These identify all of the potential risks to the business with mitigating controls for managing and monitoring risk. All risks are profiled, and the Board is regularly updated on the current status of risks to the organisation and commensurate risk mitigation strategies.

Reputational risk
Provision of poor quality materials or bad customer satisfaction could cause severe damage to the Group's brand and ability to attract new business. The business operates sophisticated levels of performance monitoring with regular reporting to senior management and the Board of any potential issues as well as customer satisfaction reviews.

Health and safety
We believe that no serious injury to staff, residents, their guests or anyone else on our premises is acceptable. Everyone in our business has accountability for health and safety, and they are given the necessary tools (including training, safety equipment and resources) to operate safely.

Cost base inflation
The principal costs for the successful operation of the business include staff costs, premises rent and also cost of materials purchased. All of these areas are subject to on-going cost pressures in excess of inflation. In order to mitigate these issues, the Group has a well organised procurement process to source energy and materials at the best possible rates. The Group also has a well organised operations structure to ensure that labour is employed as effectively as possible.








Carbon energy reporting

Kellaway Building Supplies Limited require a substantial amount of energy to keep the business running due to its principal activity and number of sites operated from. Detailed accounting records have been maintained in order to help put together our energy usage, including detailed logs of all company mileage, vehicles utilised, business mileage by employees as well as electricity and gas per branch of the business. This report covers Kellaway Building Supplies Limited as a company only, due too all subsidiaries being medium sized or below, and the numbers are for the year ended 31 August 2023. The information obtained focusses on kilowatt hours of energy used across the business. The fuels consumed in the course of business are electricity, natural gas and fuel for our cars, vans and delivery vehicles, predominantly powered by diesel, which has been factored into below calculations.

To calculate greenhouse emissions, we have used the calculators as provided by the Department for Business, Energy & Industrial Strategy.

 

Kellaway Building Supplies Limited

Strategic Report for the Year Ended 31 August 2023

Section 172 statement

The Directors believe that they have effectively implemented their duties under section 172 of the Companies Act 2006. The Company has considered the long term strategy of the business and consider that this strategy will continue to deliver long term success to the business and its stakeholders.

The Company is committed to maintain an excellent reputation and strives to achieve high standards. We are highly selective about the employees that we take on in order to deliver the best value to customers while also maintaining an awareness of the environmental impact of the work done and strive to reduce carbon footprint where possible. Continual training is also provided to ensure strong retention of staff, as well as employee involvement in ongoing strategic discussions.

The Directors recognise the importance of wider stakeholders in delivering their strategy and achieving sustainability within the business. The main stakeholders in the company are considered to be the employees, suppliers and customers.

In ensuring that all relevant stakeholders are considered as part of every decision process, we believe we act fairly between all members of the Company.

Strategy
The Group's primary area of activity was the purchase and sale of building materials. The Group believes that the key three drivers for its success are the continual focus on the high quality provision of services, the high level of effort from staff and strong financial control. These drivers support the delivery of the Group's objectives, customer's priorities and future opportunities.

Environment
The Group is aware of its environmental impact and is monitoring this. There have been some initiatives implemented to aid in decreasing the Group's carbon footprint, including a continued programme of fleet upgrades to improve fuel efficiency, installing more energy efficient lights, measures to minimise waste across the Group where possible, with items being recycled wherever possible and training of managers on environmental awareness.

Outlook for the business
The Directors expect that the next year will have a mix of challenges. However, the Directors believe that the Group is well positioned to manage resultant risk and prosper during the period due to its;

• committed workforce;
• broad spectrum of customers;
• strong balance sheet; and
• continued investment in staff development, best practice and modern processes and systems

Longer term prospects for Kellaway Building Supplies Limited are heavily linked with the wider UK economy.

Principal risks and uncertainties
Principal risks to the organisation are managed through organisation risk registers. These identify all of the potential risks to the business with mitigating controls for managing and monitoring risk. All risks are profiled, and the Board is regularly updated on the current status of risks to the organisation and commensurate risk mitigation strategies.

Reputational risk
Provision of poor quality materials or bad customer satisfaction could cause severe damage to the Group's brand and ability to attract new business. The business operates sophisticated levels of performance monitoring with regular reporting to senior management and the Board of any potential issues as well as customer satisfaction reviews.

Health and safety
We believe that no serious injury to staff, residents, their guests or anyone else on our premises is acceptable. Everyone in our business has accountability for health and safety, and they are given the necessary tools (including training, safety equipment and resources) to operate safely.

Cost base inflation
The principal costs for the successful operation of the business include staff costs, premises rent and also cost of materials purchased. All of these areas are subject to on-going cost pressures in excess of inflation. In order to mitigate these issues, the Group has a well organised procurement process to source energy and materials at the best possible rates. The Group also has a well organised operations structure to ensure that labour is employed as effectively as possible.








Carbon energy reporting

Kellaway Building Supplies Limited require a substantial amount of energy to keep the business running due to its principal activity and number of sites operated from. Detailed accounting records have been maintained in order to help put together our energy usage, including detailed logs of all company mileage, vehicles utilised, business mileage by employees as well as electricity and gas per branch of the business. This report covers Kellaway Building Supplies Limited as a company only, due too all subsidiaries being medium sized or below, and the numbers are for the year ended 31 August 2023. The information obtained focusses on kilowatt hours of energy used across the business. The fuels consumed in the course of business are electricity, natural gas and fuel for our cars, vans and delivery vehicles, predominantly powered by diesel, which has been factored into below calculations.

To calculate greenhouse emissions, we have used the calculators as provided by the Department for Business, Energy & Industrial Strategy.

Amounts in units

Tonnes of Co2e

Electricity

524,187 kwh

122

Natural gas

199,415 kwh

41

Transport

963,318 kwh

398

The total tonnes of Co2e is 561, compared to sales of £44,392,405 and EBITDA of £2,458,965, which equates to 1 tonne of Co2e for every £79,194 of revenue and 1 tonne of Co2e for every £4,387 of EBITDA earned.

Energy efficiency is something that is constantly being considered by management, whether that be by reducing emissions wherever possible, upgrading equipment when required to more efficient ones and sourcing more environmentally materials where possible.

Approved by the Board on 9 February 2024 and signed on its behalf by:


J E Milligan
Director

 

Kellaway Building Supplies Limited

Statement of Directors' Responsibilities

The directors are responsible for preparing the Directors' Report, Strategic 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 of the company and of the profit or loss of the group for that period. In preparing these financial statements, the directors are required to:

select suitable accounting policies and apply them consistently;

make judgements and accounting estimates that are reasonable and prudent;

state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; and

prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the group's and the company's transactions and disclose with reasonable accuracy at any time the financial position of the group and the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the group and the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

 

Kellaway Building Supplies Limited

Independent Auditor's Report to the Members of Kellaway Building Supplies Limited

Opinion

We have audited the financial statements of Kellaway Building Supplies Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 August 2023, which comprise the Consolidated Profit and Loss Account, Consolidated Balance Sheet, Balance Sheet, Consolidated Statement of Changes in Equity, Statement of Changes in Equity, Consolidated Statement of Cash Flows, and Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

give a true and fair view of the state of the group's and the parent company's affairs as at 31 August 2023 and of the group's profit for the year then ended;

have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and

have been prepared in accordance with the requirements of the Companies Act 2006.

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 responsibilities for the audit of the financial statements section of our report. We are independent of the group 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 ability to continue as a going concern for a period of at least twelve months from when the original financial statements were 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 directors are responsible for the other information. The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report thereon. 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.

In connection with our audit of the financial statements, 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 audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. 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.

 

Kellaway Building Supplies Limited

Independent Auditor's Report to the Members of Kellaway Building Supplies Limited

Opinion on other matter prescribed by the Companies Act 2006

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

the information given in the Strategic Report and Directors' Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and

the Strategic Report and Directors' Report have been prepared in accordance with applicable legal requirements.

Matters on which we are required to report by exception

In the light of our knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic Report and the Directors' Report.

We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion:

adequate accounting records have not been kept by the parent company, or returns adequate for our audit have not been received from branches not visited by us; or

the parent company financial statements are not in agreement with the accounting records and returns; or

certain disclosures of directors' remuneration specified by law are not made; or

we have not received all the information and explanations we require for our audit.

Responsibilities of directors

As explained more fully in the Statement of Directors' Responsibilities set out on page 6, 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 group’s and 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 group or 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.

Extent to which the audit was 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, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

We considered the nature of the group’s industry and its control environment and reviewed the groups’s documentation of their policies and procedures relating to fraud and compliance with laws and regulations. We also enquired of management about their own identification and assessment of the risks of irregularities.

We obtained an understanding of the legal and regulatory framework that the group operates in and identified the key laws and regulations that had a direct effect on the determination of material amounts and disclosures in the financial statements, including the UK Companies Act and tax legislation, and, those that do not have a direct effect on the financial statements but compliance with which may be fundamental to the group’s ability to operate or to avoid a material penalty.

We discussed among the audit engagement team regarding the opportunities and incentives that may exist within the organisation for fraud and how and where fraud might occur in the financial statements.

 

Kellaway Building Supplies Limited

Independent Auditor's Report to the Members of Kellaway Building Supplies Limited

In common with all audits under ISAs (UK), we are also required to perform specific procedures to respond to the risk of management override of controls. In addressing the risk of fraud through management override of controls, we tested the appropriateness of journal entries and other adjustments; assessed whether the judgments made in accounting estimates are indicative of a potential bias; and evaluated the business rationale of any significant transactions that are unusual or outside the normal course of business.

In addition to the above, our procedures to respond to the risks identified included the following:

reviewing financial statement disclosures by testing to supporting documentation to assess compliance with provisions of relevant laws and regulations described as having a direct effect on the financial statements;

performing analytical procedures to identify any unusual or unexpected relationships that may indicate risks of material misstatements due to fraud;

enquiring of management concerning actual and potential litigation and claims and instances of non-compliance with laws and regulations; and

reading minutes of meetings of those charged with governance.

Our audit procedures were designed to respond to risks of material misstatement in the financial statements, recognising that the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery, misrepresentations or through collusion. There are inherent limitations in the audit procedures performed and the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we are to become aware of it.

A further description of our responsibilities is available on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. 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.





Simon Worsley (Senior Statutory Auditor)
For and on behalf of Hazlewoods LLP, Statutory Auditor

Windsor House
Bayshill Road
Cheltenham
GL50 3AT

9 February 2024

 

Kellaway Building Supplies Limited

Consolidated Profit and Loss Account for the Year Ended 31 August 2023

Note

2023
 £

2022
 £

Turnover

3

50,574,868

52,729,567

Cost of sales

 

(38,989,829)

(40,750,047)

Gross profit

 

11,585,039

11,979,520

Distribution costs

 

(628,200)

(631,822)

Administrative expenses

 

(9,156,386)

(8,378,675)

Group operating profit

4

1,800,453

2,969,023

Other interest receivable and similar income

-

316

Interest payable and similar charges

5

(416,564)

(78,296)

Profit before tax

 

1,383,889

2,891,043

Taxation

9

(524,708)

(718,633)

Profit for the financial year

 

859,181

2,172,410

The above results were derived from continuing operations.

The group has no other comprehensive income for the year.

 

Kellaway Building Supplies Limited

(Registration number: 02118777)
Consolidated Balance Sheet as at 31 August 2023

Note

2023
 £

2022
 £

Fixed assets

 

Intangible assets

10

1,377,840

1,677,761

Tangible assets

11

6,744,676

5,771,989

Other investments

12

4,919

4,919

 

8,127,435

7,454,669

Current assets

 

Stocks

13

5,292,765

5,341,600

Debtors: Amounts falling due within one year

14

13,242,235

12,141,309

Cash at bank and in hand

 

754,291

574,357

 

19,289,291

18,057,266

Creditors: Amounts falling due within one year

15

(14,821,696)

(13,440,335)

Net current assets

 

4,467,595

4,616,931

Total assets less current liabilities

 

12,595,030

12,071,600

Creditors: Amounts falling due after more than one year

15

(1,403,981)

(1,693,800)

Provisions for liabilities

9

(66,545)

29,123

Net assets

 

11,124,504

10,406,923

Capital and reserves

 

Called up share capital

18

100

100

Revaluation reserve

140,000

140,000

Other reserves

1

1

Profit and loss account

10,984,403

10,266,822

Equity attributable to owners of the company

 

11,124,504

10,406,923

Total equity

 

11,124,504

10,406,923

Approved and authorised by the Board on 9 February 2024 and signed on its behalf by:
 

J E Milligan
Director

 

Kellaway Building Supplies Limited

(Registration number: 02118777)
Balance Sheet as at 31 August 2023

Note

2023
 £

2022
 £

Fixed assets

 

Intangible assets

10

668,274

872,967

Tangible assets

11

5,031,230

4,049,477

Investments

12

1,187,150

1,187,150

 

6,886,654

6,109,594

Current assets

 

Stocks

13

4,231,404

4,259,471

Debtors: Amounts falling due within one year

14

8,424,677

9,161,973

Debtors: Amounts falling due after more than one year

14

4,080,637

3,046,620

Cash at bank and in hand

 

742,834

469,377

 

17,479,552

16,937,441

Creditors: Amounts falling due within one year

15

(12,517,036)

(11,213,287)

Net current assets

 

4,962,516

5,724,154

Total assets less current liabilities

 

11,849,170

11,833,748

Creditors: Amounts falling due after more than one year

15

(1,403,981)

(1,693,800)

Provisions for liabilities

9

(294,221)

(164,260)

Net assets

 

10,150,968

9,975,688

Capital and reserves

 

Called up share capital

18

100

100

Other reserves

1

1

Profit and loss account

10,150,867

9,975,587

Total equity

 

10,150,968

9,975,688

The company made a profit after tax for the financial year of £316,880 (2022 - profit of £2,121,235).

Approved and authorised by the Board on 9 February 2024 and signed on its behalf by:
 

J E Milligan
Director

 

Kellaway Building Supplies Limited

Consolidated Statement of Changes in Equity for the Year Ended 31 August 2023
Equity attributable to the parent company

Share capital
£

Revaluation reserve
£

Other reserves
£

Profit and loss account
£

Total
£

At 1 September 2022

100

140,000

1

10,266,822

10,406,923

Profit for the year

-

-

-

859,181

859,181

Dividends

-

-

-

(141,600)

(141,600)

At 31 August 2023

100

140,000

1

10,984,403

11,124,504

Share capital
£

Revaluation reserve
£

Other reserves
£

Profit and loss account
£

Total
£

At 1 September 2021

100

140,000

1

8,473,012

8,613,113

Profit for the year

-

-

-

2,172,410

2,172,410

Dividends

-

-

-

(378,600)

(378,600)

At 31 August 2022

100

140,000

1

10,266,822

10,406,923

 

Kellaway Building Supplies Limited

Statement of Changes in Equity for the Year Ended 31 August 2023

Share capital
£

Other reserves
£

Profit and loss account
£

Total
£

At 1 September 2022

100

1

9,975,587

9,975,688

Profit for the year

-

-

316,880

316,880

Dividends

-

-

(141,600)

(141,600)

At 31 August 2023

100

1

10,150,867

10,150,968

Share capital
£

Other reserves
£

Profit and loss account
£

Total
£

At 1 September 2021

100

1

8,232,952

8,233,053

Profit for the year

-

-

2,121,235

2,121,235

Dividends

-

-

(378,600)

(378,600)

At 31 August 2022

100

1

9,975,587

9,975,688

 

Kellaway Building Supplies Limited

Consolidated Statement of Cash Flows for the Year Ended 31 August 2023

Note

2023
 £

2022
 £

Cash flows from operating activities

Profit for the year

 

859,181

2,172,410

Adjustments to cash flows from non-cash items

 

Depreciation and amortisation

4

664,174

560,095

Loss on disposal of intangible assets

5,600

-

Finance income

-

(316)

Finance costs

5

416,564

88,721

Income tax expense

9

524,708

718,633

 

2,470,227

3,539,543

Working capital adjustments

 

Decrease in stocks

13

48,835

65,187

Increase in debtors

14

(67,305)

(470,814)

Increase/(decrease) in creditors

15

1,311,893

(1,033,806)

Cash generated from operations

 

3,763,650

2,100,110

Income taxes paid

9

(475,000)

(697,898)

Net cash flow from operating activities

 

3,288,650

1,402,212

Cash flows from investing activities

 

Interest received

-

316

Acquisitions of tangible assets

(1,336,938)

(1,904,591)

Proceeds from sale of tangible assets

 

39,000

1,733

Net cash flows from investing activities

 

(1,297,938)

(1,902,542)

Cash flows from financing activities

 

Interest paid

 

(248,683)

(85,387)

Proceeds from bank borrowing draw downs

 

-

644,000

Repayment of bank borrowing

 

(342,581)

(361,788)

Increase in related party loans

 

(1,020,322)

(1,690,233)

Payments to finance lease creditors

 

(60,961)

(21,122)

Dividends paid

(141,600)

(378,600)

Net cash flows from financing activities

 

(1,814,147)

(1,893,130)

Net increase/(decrease) in cash and cash equivalents

 

176,565

(2,393,460)

Cash and cash equivalents at 1 September

 

196,401

2,589,861

Cash and cash equivalents at 31 August

 

372,966

196,401

 

Kellaway Building Supplies Limited

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

 

1

General information

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

The address of its registered office is:
Olympus House
Britannia Road
Patchway
Bristol
BS34 5TA

 

2

Accounting policies

Statement of compliance

These financial statements were prepared in accordance with Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland and the Companies Act 2006'.

Basis of preparation

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

The presentational currency of the financial statements is Pounds Sterling, being the functional currency of the primary economic environment in which the company operates. Monetary amounts in these financial statements are rounded to the nearest Pound.

Summary of significant accounting policies and key accounting estimates

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

Basis of consolidation

The consolidated financial statements consolidate the financial statements of the company and its subsidiary undertakings drawn up to 31 August 2023.

No Profit and Loss Account is presented for the company as permitted by section 408 of the Companies Act 2006. The company made a profit after tax for the financial year of £316,880 (2022 - profit of £2,121,235).

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

The results of subsidiaries acquired or disposed of during the year are included in the Profit and Loss Account from the effective date of acquisition or up to the effective date of disposal, as appropriate. Where necessary, adjustments are made to the financial statements of subsidiaries to bring their accounting policies into line with those used by the group.

The purchase method of accounting is used to account for business combinations that result in the acquisition of subsidiaries by the group. The cost of a business combination is measured as the fair value of the assets given, equity instruments issued and liabilities incurred or assumed at the date of exchange, plus costs directly attributable to the business combination. Identifiable assets acquired and liabilities and contingent liabilities assumed in a business combination are measured initially at their fair values at the acquisition date. Any excess of the cost of the business combination over the acquirer’s interest in the net fair value of the identifiable assets, liabilities and contingent liabilities recognised is recorded as goodwill.

Inter-company transactions, balances and unrealised gains on transactions between the company and its subsidiaries, which are related parties, are eliminated in full.

Intra-group losses are also eliminated but may indicate an impairment that requires recognition in the consolidated financial statements.

Accounting policies of subsidiaries have been changed where necessary to ensure consistency with the policies adopted by the group. Non-controlling interests in the net assets of consolidated subsidiaries are identified separately from the group’s equity therein. Non-controlling interests consist of the amount of those interests at the date of the original business combination and the non-controlling shareholder’s share of changes in equity since the date of the combination.

 

Kellaway Building Supplies Limited

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

Going concern

After reviewing the company's forecasts and projections, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. The company therefore continues to adopt the going concern basis in preparing its financial statements.

Judgements and estimation uncertainty

These financial statements do not contain any significant judgements or estimation uncertainty.

Revenue recognition

Turnover comprises the fair value of the consideration received or receivable for the sale of goods and provision of services in the ordinary course of the group’s activities. Turnover is shown net of sales/value added tax, returns, rebates and discounts and after eliminating sales within the group. The group recognises revenue when the amount of revenue can be reliably measured, it is probable that future economic benefits will flow to the entity and specific criteria have been met for each of the group's activities.

Tax

The tax expense for the period comprises current and deferred tax. Tax is recognised in the profit and loss account, except that a charge attributable to an item of income or expense recognised as other comprehensive income is also recognised directly in other comprehensive income.

The current tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the reporting date in the countries where the group operates and generates taxable income.

Deferred tax is recognised on temporary differences arising between the tax bases of assets and liabilities and their carrying amounts in the consolidated financial statements and on unused tax losses or tax credits in the group. Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the reporting date.

The carrying amount of deferred tax assets are reviewed at each reporting date and a valuation allowance is set up against deferred tax assets so that the net carrying amount equals the highest amount that is more likely than not to be recovered based on current or future taxable profit.

Tangible assets

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

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

Depreciation

Depreciation is charged so as to write off the cost of assets over their estimated useful lives, as follows:

Asset class

Depreciation method and rate

Freehold land and buildings

Nil

Improvements to leasehold property

10% on cost

Motor vehicles, tractors and forklifts

20% on cost/10% on cost

Fixtures, fittings and equipment

10% on cost

Computer equipment

10% on cost

Business combinations

Business combinations are accounted for using the purchase method. The consideration for each acquisition is measured at the aggregate of the fair values at acquisition date of assets given, liabilities incurred or assumed, and equity instruments issued by the group in exchange for control of the acquired, plus any costs directly attributable to the business combination. When a business combination agreement provides for an adjustment to the cost of the combination contingent on future events, the group includes the estimated amount of that adjustment in the cost of the combination at the acquisition date if the adjustment is probable and can be measured reliably.

 

Kellaway Building Supplies Limited

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

Intangible assets

Goodwill arising on the acquisition of an entity represents the excess of the cost of acquisition over the group’s interest in the net fair value of the identifiable assets, liabilities and contingent liabilities of the entity recognised at the date of acquisition. Goodwill is initially recognised as an asset at cost and is subsequently measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is held in the currency of the acquired entity and revalued to the closing rate at each reporting period date.

Negative goodwill arising on an acquisition is recognised on the face of the balance sheet on the acquisition date and subsequently the excess up to the fair value of non-monetary assets acquired is recognised in profit or loss in the periods in which the non-monetary assets are recovered.

Amortisation

Amortisation is provided on intangible assets so as to write off the cost, less any estimated residual value, over their useful life as follows:

Asset class

Amortisation method and rate

Goodwill

5 - 15 years straight line

Investments

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

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

Cash and cash equivalents

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

Trade debtors

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

Trade debtors are recognised initially at the transaction price. All trade debtors are repayable within one year and hence are included at the undiscounted cost of cash expected to be received. A provision for the impairment of trade debtors is established when there is objective evidence that the group will not be able to collect all amounts due according to the original terms of the debtors.

Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost is determined using the First In First Out (FIFO) method.

The cost of finished goods and work in progress comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the inventories to their present location and condition. At each reporting date, stocks are assessed for impairment. If stocks are impaired, the carrying amount is reduced to its selling price less costs to complete and sell; the impairment loss is recognised immediately in profit or loss.

Trade creditors

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

Trade creditors are recognised initially at the transaction price and all are repayable within one year and hence are included at the undiscounted amount of cash expected to be paid.

 

Kellaway Building Supplies Limited

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

Borrowings

Interest-bearing borrowings are initially recorded at fair value, net of transaction costs. Interest-bearing borrowings are subsequently carried at amortised cost, with the difference between the proceeds, net of transaction costs, and the amount due on redemption being recognised as a charge to the profit and loss account over the period of the relevant borrowing.

Interest expense is recognised on the basis of the effective interest method and is included in interest payable and similar charges.

Borrowings are classified as current liabilities unless the group has an unconditional right to defer settlement of the liability for at least twelve months after the reporting date.

Leases

Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessee.

Assets held under finance leases are recognised at the lower of their fair value at inception of the lease and the present value of the minimum lease payments. These assets are depreciated on a straight-line basis over the shorter of the useful life of the asset and the lease term. The corresponding liability to the lessor is included in the Balance Sheet as a finance lease obligation.

Lease payments are apportioned between finance costs in the Profit and Loss Account and reduction of the lease obligation so as to achieve a constant periodic rate of interest on the remaining balance of the liability.

Share capital

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

Dividends

Dividend distribution to the group’s shareholders is recognised as a liability in the financial statements in the reporting period in which the dividends are declared.

Defined contribution pension obligation

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

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

Employee Benefit Trust

In accordance with UITF 32, "Employee Benefits Trusts (EBTs) and other intermediate payment arrangements", the Group does not include the assets and liabilities of its EBT on its Balance Sheet. It considers that it will not retain any present economic benefit from the assets of the EBT, nor will it have control of the rights or other access to those present economic benefits. All contributions made to the EBT vest unconditionally in identified beneficiaries.

 

Kellaway Building Supplies Limited

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

Financial instruments


Classification
Financial instruments are classified and accounted for according to the substance of the contractual arrangement, as financial assets, financial liabilities or equity instruments. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities. Where shares are issued, any component that creates a financial liability of the company is presented as a liability on the balance sheet. The corresponding dividends relating to the liability component are charged as interest expenses in the profit and loss account.

 Recognition and measurement
All financial assets and liabilities are initially measured at transaction price (including transaction costs), except for those financial assets classified as at fair value through profit or loss, which are initially measured at fair value (which is normally the transaction price excluding transaction costs), unless the arrangement constitutes a financing transaction. If an arrangement constitutes a financing transaction, the financial asset or financial liability is measured at the present value of the future payments discounted at a market rate of interest for a similar debt instrument.

Financial assets and liabilities are only offset in the statement of financial position when, and only when there exists a legally enforceable right to set off the recognised amounts and the Group intends either to settle on a net basis, or to realise the asset and settle the liability simultaneously.


 Impairment
Assets, other than those measured at fair value, are assessed for indicators of impairment at each balance sheet date. If there is objective evidence of impairment, an impairment loss is recognised in profit or loss as described below.

A non financial asset is impaired where there is objective evidence that, as a result of one or more events that occurred after initial recognition, the estimated recoverable value of the asset has been reduced. The recoverable amount of an asset is the higher of its fair value less costs to sell and its value in use.

The recoverable amount of goodwill is derived from measurement of the present value of the future cash flows of the cash-generating units ('CGUs') of which the goodwill is a part. Any impairment loss in respect of a CGU is allocated first to the goodwill attached to that CGU, and then to other assets within that CGU on a pro-rata basis.

Where indicators exist for a decrease in impairment loss, the prior impairment loss is tested to determine reversal. An impairment loss is reversed on an individual impaired asset to the extent that the revised recoverable value does not lead to a revised carrying amount higher than the carrying value had no impairment been recognised. Where a reversal of impairment occurs in respect of a CGU, the reversal is applied first to the assets (other than goodwill) of the CGU on a pro-rata basis and then to any goodwill allocated to that CGU.

For financial assets carried at amortised cost, the amount of an impairment is the difference between the asset’s carrying amount and the present value of estimated future cash flows, discounted at the financial asset’s original effective interest rate.

For financial assets carried at cost less impairment, the impairment loss is the difference between the asset’s carrying amount and the best estimate of the amount that would be received for the asset if it were to be sold at the reporting date.

Where indicators exist for a decrease in impairment loss, and the decrease can be related objectively to an event occurring after the impairment was recognised, the prior impairment loss is tested to determine reversal. An impairment loss is reversed on an individual impaired financial asset to the extent that the revised recoverable value does not lead to a revised carrying amount higher than the carrying value had no impairment been recognised.

 

3

Turnover

The total turnover of the Group has been derived from its principal activity wholly undertaken in the United Kingdom.

 

Kellaway Building Supplies Limited

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

 

4

Operating profit

Arrived at after charging

2023
 £

2022
 £

Depreciation expense

364,251

252,310

Amortisation expense

299,921

324,947

Operating lease expense - property

1,286,373

1,227,176

Operating lease expense - plant and machinery

96,345

138,254

Operating lease expense - other

649,252

621,642

Auditor's remuneration - The audit of the company's annual accounts

37,800

40,672

 

5

Interest payable and similar expenses

2023
 £

2022
 £

Interest on bank overdrafts and borrowings

248,683

67,816

Interest on obligations under finance leases and hire purchase contracts

8,796

2,780

Other interest payable

159,085

7,700

416,564

78,296

 

6

Staff costs

The aggregate payroll costs (including directors' remuneration) were as follows:

2023
 £

2022
 £

Wages and salaries

6,823,340

6,323,494

Social security costs

677,041

645,971

Staff pension costs

322,252

294,697

7,822,633

7,264,162

The average number of persons employed by the group (including directors) during the year, analysed by category was as follows:

2023
 No.

2022
 No.

Administration and support

28

22

Sales and distribution

171

178

Management

16

15

215

215

 

Kellaway Building Supplies Limited

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

Company
The aggregate payroll costs (including directors' remuneration) were as follows:

2023
 £

2022
 £

Wages and salaries

5,573,558

5,164,550

Social security costs

554,827

534,131

Pension costs, defined contribution scheme

270,359

248,368

6,398,744

5,947,049

The average number of persons employed by the company (including directors) during the year, analysed by category was as follows:

2023
 No.

2022
 No.

Sales and distribution

126

118

Administration and support

16

19

Management

28

19

170

156

 

7

Directors' remuneration

The directors' remuneration for the year was as follows:

2023
£

2022
£

Remuneration

522,884

540,855

Contributions paid to money purchase schemes

86,040

77,905

608,924

618,760

During the year, the number of directors who were receiving benefits and share incentives was as follows:

2023
No.

2022
No.

Accruing benefits under money purchase pension scheme

3

3

In respect of the highest paid director:

2023
£

2022
£

Remuneration

125,483

160,382

Company contributions to money purchase pension schemes

41,976

34,720

 

Kellaway Building Supplies Limited

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

 

8

Auditors' remuneration

2023
 £

2022
 £

Audit services

24,600

29,000

Non-audit services

13,200

12,222

37,800

41,222

 

9

Taxation

Tax charged/(credited) in the consolidated profit and loss account

2023
£

2022
£

Current taxation

UK corporation tax

420,396

519,520

UK corporation tax adjustment to prior periods

8,644

11,465

429,040

530,985

Deferred taxation

Arising from origination and reversal of timing differences

95,668

187,648

Tax expense in the income statement

524,708

718,633

The tax on profit before tax for the year is higher than the standard rate of corporation tax in the UK (2022 - higher than the standard rate of corporation tax in the UK) of 21.5% (2022 - 19%).

The differences are reconciled below:

2023
£

2022
£

Profit before tax

1,383,889

2,891,043

Corporation tax at standard rate

297,536

549,298

Tax increase/(decrease) from effect of capital allowances and depreciation

59,573

(16,356)

Effect of expense not deductible in determining taxable profit (tax loss)

1,330

30,439

Effect of tax losses

61,957

(43,861)

UK deferred tax expense relating to changes in tax rates or laws

95,668

187,648

Other tax effects for reconciliation between accounting profit and tax expense (income)

8,644

11,465

Total tax charge

524,708

718,633

 

Kellaway Building Supplies Limited

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

Deferred tax

Group

Deferred tax assets and liabilities

2023

Liability
£

Fixed asset timing differences

337,995

Other timing differences

(6,864)

Tax losses carried forward

(264,586)

66,545

2022

Asset
£

Fixed asset timing differences

288,679

Other timing differences

(96,042)

Tax losses carried forward

(221,760)

(29,123)

Company

Deferred tax assets and liabilities

2023

Liability
£

Fixed asset timing differences

308,896

Other timing differences

(14,675)

294,221

2022

Liability
£

Fixed asset timing differences

259,677

Other timing differences

(95,417)

164,260

 

Kellaway Building Supplies Limited

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

 

10

Intangible assets

Group

Goodwill
 £

Cost

At 1 September 2022 and at 31 August 2023

4,509,893

Amortisation

At 1 September 2022

2,832,132

Amortisation charge

299,921

At 31 August 2023

3,132,053

Carrying amount

At 31 August 2023

1,377,840

At 31 August 2022

1,677,761

Company

Goodwill
 £

Cost

At 1 September 2022 and at 31 August 2023

3,313,441

Amortisation

At 1 September 2022

2,440,474

Amortisation charge

204,693

At 31 August 2023

2,645,167

Carrying amount

At 31 August 2023

668,274

At 31 August 2022

872,967

 

Kellaway Building Supplies Limited

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

 

11

Tangible assets

Group

Land and buildings included at cost
£

Land and buildings included at valuation
 £

Fixtures, fittings and equipment
 £

Motor vehicles
 £

Total
£

Cost or valuation

At 1 September 2022

4,633,859

900,000

3,309,441

292,505

9,135,805

Additions

955,771

-

356,166

25,001

1,336,938

Disposals

-

-

-

(12,388)

(12,388)

At 31 August 2023

5,589,630

900,000

3,665,607

305,118

10,460,355

Depreciation

At 1 September 2022

938,805

-

2,255,544

169,467

3,363,816

Charge for the year

122,415

-

207,019

34,817

364,251

Eliminated on disposal

-

-

-

(12,388)

(12,388)

At 31 August 2023

1,061,220

-

2,462,563

191,896

3,715,679

Carrying amount

At 31 August 2023

4,528,410

900,000

1,203,044

113,222

6,744,676

At 31 August 2022

3,695,054

900,000

1,053,897

123,038

5,771,989

Included within land and buildings is freehold property of £4,541,322 (2022 - 3,695,054).

Included in the net book value is £771,325 (2022 - £771,325) of land and buildings which is not depreciated.


Leased as sets
Included within the net book value of tangible fixed assets is £124,998 (2022 - £nil) in respect of assets held under finance leases and similar hire purchase contracts. Depreciation for the year on these assets was £51,004 (2022 - £14,091).

In February 2010, the freehold land and buildings of Tamwood Property Services Limited were valued at £900,000 on an open market use basis by an independent valuer who is a Fellow of the Royal Institute of Chartered Surveyors. The original cost to the group at that time was £760,000. Other land and buildings within the group are valued at cost. The land and buildings held within Tamwood Property Services Limited are considered a separate class of asset to the other land and buildings within the group as they are considered to have greater development potential. Under the principles of FRS102, the directors have frozen the value of the properties and now utilise the cost model. Depreciation is not charged however due to the high estimated residual value and long term remaining useful economic life.
 

 

Kellaway Building Supplies Limited

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

Company

Land and buildings
£

Fixtures, fittings and equipment
 £

Motor vehicles
 £

Total
£

Cost

At 1 September 2022

3,910,398

3,171,583

279,501

7,361,482

Additions

969,513

306,771

25,001

1,301,285

Disposals

-

-

(12,388)

(12,388)

At 31 August 2023

4,879,911

3,478,354

292,114

8,650,379

Depreciation

At 1 September 2022

916,369

2,234,412

161,224

3,312,005

Charge for the year

110,074

174,641

34,817

319,532

Eliminated on disposal

-

-

(12,388)

(12,388)

At 31 August 2023

1,026,443

2,409,053

183,653

3,619,149

Carrying amount

At 31 August 2023

3,853,468

1,069,301

108,461

5,031,230

At 31 August 2022

2,994,029

937,171

118,277

4,049,477

Included within the net book value of land and buildings above is £3,853,468 (2022 - £2,994,029) in respect of freehold land and buildings. Freehold land of £260,000 (2022 - £260,000) is not depreciated.

Leased assets
Included within the net book value of tangible fixed assets is £124,998 (2022 - £176,002) in respect of assets held under finance leases and similar hire purchase contracts. Depreciation for the year on these assets was £51,004 (2022 - £22,291).

 

Kellaway Building Supplies Limited

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

 

12

Investments

Group

2023
 £

2022
 £

Financial assets at cost less impairment

4,919

4,919

Company

Subsidiaries

£

Cost

At 1 September 2022 and at 31 August 2023

1,187,150

Carrying amount

At 31 August 2023

1,187,150

At 31 August 2022

1,187,150

Details of undertakings

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

Undertaking

Registered office

Holding

Proportion of voting rights and shares held

     

2023

2022

Subsidiary undertakings

Gametry Limited *

Ordinary

100%

100%

 

England and Wales

     

Nailsea Builders Merchants Limited

Ordinary

100%

100%

 

England and Wales

     

Tamwood Builders Supplies Limited *

Ordinary

100%

100%

 

England and Wales

     

Tamwood Property Services Limited

Ordinary

100%

100%

 

England and Wales

     

Western Timber Building Supplies Limited *

Ordinary

100%

100%

 

England and Wales

     

Premier Timber & Builders Merchants Limited *

Ordinary

100%

100%

 

England and Wales

     

Joseph Griggs & Company Limited*

Ordinary

100%

100%

 

England and Wales

     

Bristol Tile Company Limited*

Ordinary

100%

100%

 

England and Wales

     

* indicates direct investment of the company

Subsidiary undertakings
The principal activity of Joseph Griggs and Company Limited is the importation and conversion of timber and the manufacture and supply of timber engineered products. The principal activity of Bristol Tile Company Limited is the distribution of tiles. The principal activity of all other subsidiary undertakings is that of dormant companies.

All subsidiary companies have the same registered office as Kellaway building Supplies Limited.




 


 

 

13

Stocks

 

Group

Company

2023
 £

2022
 £

2023
 £

2022
 £

Stock

5,292,765

5,341,600

4,231,404

4,259,471

 

Kellaway Building Supplies Limited

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

 

14

Debtors

 

Group

Company

2023
 £

2022
 £

2023
 £

2022
 £

Trade debtors

6,919,318

6,664,359

6,008,669

5,726,282

Amounts owed by related parties

5,203,552

4,183,230

5,642,206

5,401,350

Other debtors

26,613

16,797

(8,488)

(12,266)

Prepayments

1,092,752

1,276,923

862,927

1,093,227

 

13,242,235

12,141,309

12,505,314

12,208,593

 

15

Creditors

   

Group

Company

Note

2023
 £

2022
 £

2023
 £

2022
 £

Due within one year

 

Loans and borrowings

16

1,388,755

1,339,387

1,007,430

961,431

Trade creditors

 

8,695,309

9,285,243

7,458,262

8,325,756

Amounts owed by related parties

 

160,471

157,585

-

-

Social security and other taxes

 

541,699

436,240

431,223

314,337

Outstanding defined contribution pension costs

 

58,697

51,530

58,697

51,530

Other creditors

 

2,958,225

695,895

2,636,431

212,754

Accrued expenses

 

814,562

1,224,935

721,015

1,097,959

Corporation tax

9

203,978

249,520

203,978

249,520

 

14,821,696

13,440,335

12,517,036

11,213,287

Due after one year

 

Loans and borrowings

16

1,403,981

1,693,800

1,403,981

1,693,800

The banks loans and overdraft are secured on the property held by the company's subsidiaries, Tamwood Property Services Limited and Gametry Limited. The bank also has a first fixed charge on all stock and debtors of the company and a floating charge on all other assets.

Included within other creditors is £2,359,480 (2022 - £238,128) due under confidential invoice discounting arrangements. These are secured against the trade debtors of the group.

 

Kellaway Building Supplies Limited

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

 

16

Loans and borrowings

 

Group

Company

2023
£

2022
£

2023
£

2022
£

Current loans and borrowings

Bank borrowings

387,845

385,406

387,845

385,406

Bank overdrafts

381,325

377,956

-

-

Finance lease liabilities

50,337

19,111

50,337

19,111

Other borrowings

569,248

556,914

569,248

556,914

1,388,755

1,339,387

1,007,430

961,431

 

Group

Company

2023
£

2022
£

2023
£

2022
£

Non-current loans and borrowings

Bank borrowings

1,329,320

1,669,462

1,329,320

1,669,462

Finance lease liabilities

74,661

24,338

74,661

24,338

1,403,981

1,693,800

1,403,981

1,693,800

The bank loan is secured against all assets of Kellaway Building Supplies Limited and its subsidiaries together with Avonside Insulation Supplies Limited. The bank loan is repayable in equal monthly instalments with interest charged at 2.50% above the Bank of England base rate and has a maturity date of February 2025. During the prior year, the group took out additional bank loans of £644,000. This is repayable over 5 years and has interest charged at 2.50% plus base rate.

Other borrowings under current loans and borrowings comprise loans made by directors as disclosed in note 22 to the financial statements.

 

Kellaway Building Supplies Limited

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

 

17

Obligations under leases and hire purchase contracts

Group

Operating leases

The total of future minimum lease payments is as follows:

2023
£

2022
£

Not later than one year

2,021,918

1,514,719

Later than one year and not later than five years

4,365,258

2,584,032

Later than five years

1,733,539

799,292

8,120,715

4,898,043

Company

Operating leases

The total of future minimum lease payments is as follows:

2023
£

2022
£

Not later than one year

1,853,453

1,439,963

Later than one year and not later than five years

3,945,054

2,534,194

Later than five years

1,548,827

799,292

7,347,334

4,773,449

 

18

Share capital

Allotted, called up and fully paid shares

 

2023

2022

 

No.

£

No.

£

Ordinary A shares of £0.10 each

950

95

950

95

Ordinary B shares of £0.10 each

50

5

50

5

 

1,000

100

1,000

100

Rights, preferences and restrictions

Each class of share pari passu in all respects, other than dividend rights.

 

19

Pension and other schemes

Defined contribution pension scheme

The group operates a defined contribution pension scheme. The pension cost charge for the year represents contributions payable by the group to the scheme and amounted to £322,252 (2022 - £294,697).

Contributions totalling £58,697 (2022 - £51,530) were payable to the scheme at the end of the year and are included in creditors.

 

20

Dividends

2023
 £

2022
 £

Dividends paid

141,600

378,600

 

Kellaway Building Supplies Limited

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

 

21

Financial guarantee

Kellaway Building Supplies Limited has given a guarantee under section 479A of the Companies Act 2006 to guarantee all outstanding liabilities of the subsidiary companies Bristol Tile Company Limited and Joseph Griggs and Company Limited at 31 August 2023. These companies are therefore exempt from the requirement of the Act relating to the audit of individual accounts. No other subsidiary companies have had the guarantee extended to them.

 

22

Related party transactions

During the year the company made the following related party transactions:

J E Milligan and Mrs L Milligan
(a director of the company and his wife)
Two of the premises from which the company carries out its business are owned by J E Milligan and Mrs L Milligan. During the year, rent of £86,000 (2022 - £117,800) was charged to the group.

J E Milligan, Mrs L Milligan and E Milligan
(a director of the company, his wife and his father)
One of the premises from which the group carried out its business is owned by J E Milligan, Mrs L Milligan and E Milligan. During the year, rent of £29,000 (2022 - £29,000) was payable.

E Milligan
(a director of the company)
During the year, cumulative interest of £5,753 (2022 - £5,560) was accrued to E Milligan in respect of a loan, which has no fixed repayment terms. At the balance sheet date, the amount due to E Milligan was £135,511 (2022 - £132,021).

J E Milligan
(a director of the company)
During the year, cumulative interest of £26,393 (2022 - £25,121) was accrued to J E Milligan in respect of a loan, which has no fixed repayment term. At the balance sheet date, the amount due to J E Milligan was £433,736 (2022 - £424,893).

Employee Benefit Trust
(a trust of which all Kellaway employees are potential beneficiaries)
During the year, the group paid rent of £210,000 (2022 - £210,000) in respect of a property owned by the Employee Benefit Trust.

MPH Merchant (South Coast) Limited
(a company controlled by J E Milligan)
During the year, the group made sales of £nil (2022 - £294,118) to MPH Merchant (South Coast) Limited. The group charged management charges of £85,544 (2022 - £84,672) to MPH Merchant (South Coast) Limited. At the balance sheet date, the amount owed to MPH Merchant (South Coast) Limited was £nil (2022 - £nil).

MPH Merchant Limited
(a company controlled by J E Milligan)
During the year, the group made sales of £309,120 (2022 - £301,469) to MPH Merchant Limited. The group charged management charges of £121,680 (2022 - £117,095) to MPH Merchant Limited. At the balance sheet date, the amount owed to MPH Merchant Limited was £4,110 (2022 - £nil).

168 UN Limited
(a company controlled by J E Milligan)
At the balance sheet date, the amount due from 168 UN Limited to the group was £1,136,610 (2022 - £1,136,610).

Jools Properties Limited
(a company controlled by J Milligan)
During the year, rent of £344,000 (2022 - £358,012) was charged to the group in respect of properties that the company trades from. At the balance sheet date, the amount due to the group from Jools Properties Limited was £2,620,460 (2022 - £1,514,181).

 

Kellaway Building Supplies Limited

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

Noble Earth Limited
(a company related to the Employee Benefit Trust)
At the balance sheet date, the amount due to Noble Earth Limited was £21,000 (2022 - £21,000).

Avonside Insulation Supplies Limited
(a company controlled by J E Milligan)
The group made purchases of £498,483 (2022 - £496,502) from, and sales of £773,879 (2022 - £1,124,214) to Avonside Insulation Supplies Limited. The group charged management charges of £249,900 (2022 - £237,996) to Avonside Insulation Supplies Limited.

At the balance sheet date, the amounts owed from the company was £63,546 (2022 - £21,468). The group was also owed £1,353,386 (2022 - £1,353,386) by Avonside Insulation Supplies Holdings Ltd, the parent company of Avonside Insulation Supplies Limited, which is a company registered in England and Wales and controlled by J E Milligan.

 

23

Parent and ultimate parent undertaking

The ultimate controlling party is J E MIlligan, by virtue of his holding in the ordinary share capital.

 

24

Analysis of changes in net debt

Group

At 1 September 2022
£

Financing cash flows
£

Other non-cash changes
£

At 31 August 2023
£

Cash and cash equivalents

Cash (net of bank overdraft)

196,401

176,565

-

372,966

Borrowings

Short term hire purchase

(19,111)

19,111

(50,337)

(50,337)

Short term bank borrowings

(389,516)

342,581

(340,910)

(387,845)

Long term hire purchase

(24,338)

41,850

(92,173)

(74,661)

Long term bank borrowings

(1,665,352)

-

336,032

(1,329,320)

(2,098,317)

403,542

(147,388)

(1,842,163)

 

(1,901,916)

580,107

(147,388)

(1,469,197)