REGISTERED NUMBER: |
STRATEGIC REPORT, REPORT OF THE DIRECTORS AND |
FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 31 MAY 2023 |
FOR |
KSD SUPPORT SERVICES LIMITED |
REGISTERED NUMBER: |
STRATEGIC REPORT, REPORT OF THE DIRECTORS AND |
FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 31 MAY 2023 |
FOR |
KSD SUPPORT SERVICES LIMITED |
KSD SUPPORT SERVICES LIMITED (REGISTERED NUMBER: 04212679) |
CONTENTS OF THE FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 31 MAY 2023 |
Page |
Company Information | 1 |
Strategic Report | 2 |
Report of the Directors | 3 |
Report of the Independent Auditors | 5 |
Statement of Comprehensive Income | 7 |
Balance Sheet | 8 |
Statement of Changes in Equity | 9 |
Cash Flow Statement | 10 |
Notes to the Cash Flow Statement | 11 |
Notes to the Financial Statements | 13 |
KSD SUPPORT SERVICES LIMITED |
COMPANY INFORMATION |
FOR THE YEAR ENDED 31 MAY 2023 |
DIRECTORS: |
SECRETARY: |
REGISTERED OFFICE: |
REGISTERED NUMBER: |
SENIOR STATUTORY AUDITOR: |
AUDITORS: |
Statutory Auditor |
20 Havelock Road |
Hastings |
East Sussex |
TN34 1BP |
KSD SUPPORT SERVICES LIMITED (REGISTERED NUMBER: 04212679) |
STRATEGIC REPORT |
FOR THE YEAR ENDED 31 MAY 2023 |
The directors present their strategic report for the year ended 31 May 2023. |
REVIEW OF BUSINESS |
KSD Support Services Limited (the "Company") is a provider of building maintenance and facilities management support services within the United Kingdom including assisting with project requirements and fit outs. Its major customers operate within food retail, commercial property and banking as well as the public sector and these account for over 90% of the turnover. At the end of the period net assets totalled £13,226,885 compared to £11,369,813 in 2022. The Company's key financial and other performance indicators during the period were as follows: |
2023 | 2022 |
£ | £ |
Gross margin | 32.11% | 30.51% |
EBITDA | £3,943,409 | £3,787,581 |
EBITDA as % of turnover | 14.81% | 13.42% |
The year proved to be buoyant and positive given some seismic changes concerning the insolvency of a major client and loss of work. This led to increased business levels with retained, blue-chip clients across key baselines and this trend is set to continue into 2024 and beyond. |
We are proud to announce that KSD Support Services Ltd achieved the ISO 14001 environmental accreditation to add to its ISO 9001 and ISO 45001 marks and this will enable the business to galvanise market sector shares across its business client portfolio. |
FUTURE DEVELOPMENTS |
Several prominent clients were engaged during the year by the company's business development department which augment existing growth models for 2024 and beyond. |
Of particular note is an area of healthcare infrastructure support in the built-environment and we are honoured to be able to report on this exciting new opportunity. |
PRINCIPAL RISKS AND UNCERTAINTIES |
In furtherance and continuation the Directors believe risks of losing any large client, due to unforeseen circumstances, would have a minimal impact as the owners have the ability to manoeuvre and repurpose most of it resources. |
For the majority of our contracts, the company would be protected by resources being transferred under TUPE protocols, amongst other directives. |
Further diversification in terms of business sector exposures has also decreased the company's reliance on any one sector in particular. |
In conclusion, prospects remain wholly positive for the company going forwards. |
ON BEHALF OF THE BOARD: |
KSD SUPPORT SERVICES LIMITED (REGISTERED NUMBER: 04212679) |
REPORT OF THE DIRECTORS |
FOR THE YEAR ENDED 31 MAY 2023 |
The directors present their report with the financial statements of the company for the year ended 31 May 2023. |
DIVIDENDS |
The total distribution of dividends to the parent company for the year ended 31 May 2023 will be £450,000. |
DIRECTORS |
The directors shown below have held office during the whole of the period from 1 June 2022 to the date of this report. |
FINANCIAL INSTRUMENTS |
The company's principal financial instruments comprise bank balances, trade creditors, trade debtors, operating lease agreements, bank loans and directors' loans. The main purpose of these instruments is to finance the company's operations. |
Due to the nature of the financial instruments used by the company there is no exposure to price risk. The company's approach to managing other risks applicable to the financial instruments concerned is shown below. |
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. |
In respect of the CBILS loan, the directors are aware of the company's finance requirements and have determined that the liquidity risk inherent in this formal bank loan is acceptable. |
The loans from the directors do not have interest charged but are repayable on demand. The directors are aware of the company's required finance and have determined that these will only be repaid, in whole or in part, when finance is available. |
The credit risk arising from loans made to directors is considered to be acceptable, given the substantial asset portfolio supporting them. |
The company's operating lease commitments are in respect of the property from which the company operates as well as motor vehicles. The liquidity risk in respect of these is managed in the same way as loans above. |
The company' uses Invoice Discounting for its trade debtors and the company retains all significant benefits and risks in respect of these. These 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. |
Trade creditors liquidity risk is managed by ensuring sufficient funds are available to meet amounts due. |
DONATIONS AND SIMILAR EXPENDITURE |
Donations of £7,209 (2022: £9,253) have been made to local charities in the year. |
STATEMENT OF DIRECTORS' RESPONSIBILITIES |
The directors are responsible for preparing the Strategic Report, the Report of the Directors 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), including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'. Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to: |
- | select suitable accounting policies and then apply them consistently; |
- | make judgements and accounting estimates that are reasonable and prudent; |
- | prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business. |
KSD SUPPORT SERVICES LIMITED (REGISTERED NUMBER: 04212679) |
REPORT OF THE DIRECTORS |
FOR THE YEAR ENDED 31 MAY 2023 |
STATEMENT OF DIRECTORS' RESPONSIBILITIES - continued |
The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company's transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. |
STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS |
So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the company's auditors are unaware, and each director has taken all the steps that he or she ought to have taken as a director in order to make himself or herself aware of any relevant audit information and to establish that the company's auditors are aware of that information. |
AUDITORS |
The auditors, Ashdown Hurrey Auditors Limited, will be proposed for re-appointment at the forthcoming Annual General Meeting. |
ON BEHALF OF THE BOARD: |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
KSD SUPPORT SERVICES LIMITED |
Opinion |
We have audited the financial statements of KSD Support Services Limited (the 'company') for the year ended 31 May 2023 which comprise the Statement of Comprehensive Income, Balance Sheet, Statement of Changes in Equity, Cash Flow Statement and Notes to the Cash Flow Statement, 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 company's affairs as at 31 May 2023 and of its 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 Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. |
Conclusions relating to going concern |
In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate. |
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue. |
Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report. |
Other information |
The directors are responsible for the other information. The other information comprises the information in the Strategic Report and the Report of the Directors, but does not include the financial statements and our Report of the Auditors 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 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 the audit: |
- | the information given in the Strategic Report and the Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and |
- | the Strategic Report and the Report of the Directors have been prepared in accordance with applicable legal requirements. |
Matters on which we are required to report by exception |
In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic Report or the Report of the Directors. |
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, or returns adequate for our audit have not been received from branches not visited by us; or |
- | the financial statements are not in agreement with the accounting records and returns; or |
- | certain disclosures of directors' remuneration specified by law are not made; or |
- | we have not received all the information and explanations we require for our audit. |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
KSD SUPPORT SERVICES LIMITED |
Responsibilities of directors |
As explained more fully in the Statement of Directors' Responsibilities set out on pages three and four, 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 necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. |
In preparing the financial statements, the directors are responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so. |
Auditors' 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 a Report of the Auditors that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements. |
The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below: |
We gained an understanding of the legal and regulatory framework applicable to the Company and the industry in which it operates, and considered the risk of acts by the Company that were not in line with the applicable laws and regulations, including fraud. |
We understood how the Company is complying with those laws and regulations by making enquiries of management concerning actual and potential litigation and claims. We corroborated our enquiries through our review of board minutes and any correspondence with regulatory bodies to evaluate whether there were any instances of non-compliance. Additionally, we obtained an understanding of management's procedures relating to detecting and responding to risks of fraud and whether they have knowledge of any actual, suspected or alleged fraud. |
Our procedures included agreeing the financial statement disclosures to underlying supporting documentation where relevant and challenging the assumptions and judgements made by management in relation to significant accounting items, including recognition of revenue. We have also identified amd challenged management on any journal entries outside our usual expectation for this type of business. |
We also communicated relevant identified laws and regulations and potential fraud risks to all engagement team members and remained alert to any indications of fraud or non-compliance with laws and regulations throughout the audit.k |
A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Auditors. |
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 a Report of the Auditors and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's members as a body, for our audit work, for this report, or for the opinions we have formed. |
for and on behalf of |
Statutory Auditor |
20 Havelock Road |
Hastings |
East Sussex |
TN34 1BP |
KSD SUPPORT SERVICES LIMITED (REGISTERED NUMBER: 04212679) |
STATEMENT OF COMPREHENSIVE INCOME |
FOR THE YEAR ENDED 31 MAY 2023 |
31.5.23 | 31.5.22 |
Notes | £ | £ |
TURNOVER |
Cost of sales | ( |
) | ( |
) |
GROSS PROFIT |
Administrative expenses | ( |
) | ( |
) |
2,903,027 | 3,218,445 |
Other operating income | 3 |
Gain/loss on revaluation of investment property |
- |
771,893 |
OPERATING PROFIT | 5 |
Interest receivable and similar income |
3,498,611 | 4,801,001 |
Interest payable and similar expenses | 6 | ( |
) | ( |
) |
PROFIT BEFORE TAXATION |
Tax on profit | 7 | ( |
) | ( |
) |
PROFIT FOR THE FINANCIAL YEAR |
OTHER COMPREHENSIVE INCOME | - | - |
TOTAL COMPREHENSIVE INCOME FOR THE YEAR |
KSD SUPPORT SERVICES LIMITED (REGISTERED NUMBER: 04212679) |
BALANCE SHEET |
31 MAY 2023 |
31.5.23 | 31.5.22 |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Intangible assets | 9 |
Tangible assets | 10 |
Investment property | 11 |
CURRENT ASSETS |
Stocks | 12 |
Debtors | 13 |
Cash at bank |
CREDITORS |
Amounts falling due within one year | 14 |
NET CURRENT ASSETS |
TOTAL ASSETS LESS CURRENT LIABILITIES |
CREDITORS |
Amounts falling due after more than one year |
15 |
( |
) |
( |
) |
PROVISIONS FOR LIABILITIES | 19 | ( |
) | ( |
) |
NET ASSETS |
CAPITAL AND RESERVES |
Called up share capital | 20 |
Capital redemption reserve | 21 |
Retained earnings | 21 |
SHAREHOLDERS' FUNDS |
The financial statements were approved by the Board of Directors and authorised for issue on |
KSD SUPPORT SERVICES LIMITED (REGISTERED NUMBER: 04212679) |
STATEMENT OF CHANGES IN EQUITY |
FOR THE YEAR ENDED 31 MAY 2023 |
Called up | Capital |
share | Retained | redemption | Total |
capital | earnings | reserve | equity |
£ | £ | £ | £ |
Balance at 1 June 2021 |
Changes in equity |
Total comprehensive income | - |
Balance at 31 May 2022 |
Changes in equity |
Dividends | - | ( |
) | - | ( |
) |
Total comprehensive income | - |
Balance at 31 May 2023 |
KSD SUPPORT SERVICES LIMITED (REGISTERED NUMBER: 04212679) |
CASH FLOW STATEMENT |
FOR THE YEAR ENDED 31 MAY 2023 |
31.5.23 | 31.5.22 |
Notes | £ | £ |
Cash flows from operating activities |
Cash generated from operations | 1 |
Interest paid | ( |
) | ( |
) |
Interest element of hire purchase payments paid |
( |
) |
( |
) |
Tax paid | ( |
) | ( |
) |
Net cash from operating activities |
Cash flows from investing activities |
Purchase of tangible fixed assets | ( |
) | ( |
) |
Sale of tangible fixed assets |
Financing of Group companies | ( |
) | ( |
) |
Financing of related entities | ( |
) |
Interest received |
Net cash from investing activities | ( |
) | ( |
) |
Cash flows from financing activities |
Loan repayments in year | ( |
) | ( |
) |
Capital repayments in year | ( |
) | ( |
) |
Amount introduced by directors | 45,916 | 558,834 |
Amount withdrawn by directors | (66,311 | ) | (611,533 | ) |
Financing of debtors |
Government grants |
Equity dividends paid | ( |
) |
Net cash from financing activities | ( |
) | ( |
) |
Increase/(decrease) in cash and cash equivalents | ( |
) |
Cash and cash equivalents at beginning of year |
2 |
(392,240 |
) |
(317,162 |
) |
Cash and cash equivalents at end of year |
2 |
( |
) |
( |
) |
KSD SUPPORT SERVICES LIMITED (REGISTERED NUMBER: 04212679) |
NOTES TO THE CASH FLOW STATEMENT |
FOR THE YEAR ENDED 31 MAY 2023 |
1. | RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS |
31.5.23 | 31.5.22 |
£ | £ |
Profit before taxation |
Depreciation charges |
Loss/(profit) on disposal of fixed assets | ( |
) |
Gain on revaluation of fixed assets | - | (771,893 | ) |
Impairments | - | (262,424 | ) |
Bad debt movement | (190,918 | ) | 22,547 |
Government grants | ( |
) |
Finance costs | 468,275 | 414,987 |
Finance income | (358,146 | ) | (504,973 | ) |
3,729,276 | 3,784,992 |
Increase in stocks | ( |
) | ( |
) |
Decrease/(increase) in trade and other debtors | ( |
) |
Increase in trade and other creditors |
Cash generated from operations |
2. | CASH AND CASH EQUIVALENTS |
The amounts disclosed on the Cash Flow Statement in respect of cash and cash equivalents are in respect of these Balance Sheet amounts: |
Year ended 31 May 2023 |
31.5.23 | 1.6.22 |
£ | £ |
Cash and cash equivalents | 605 | 14,034 |
Bank overdrafts | ( |
) | ( |
) |
(367,038 | ) | (392,240 | ) |
Year ended 31 May 2022 |
31.5.22 | 1.6.21 |
£ | £ |
Cash and cash equivalents | 14,034 | 4,489 |
Bank overdrafts | ( |
) | ( |
) |
(392,240 | ) | (317,162 | ) |
KSD SUPPORT SERVICES LIMITED (REGISTERED NUMBER: 04212679) |
NOTES TO THE CASH FLOW STATEMENT |
FOR THE YEAR ENDED 31 MAY 2023 |
3. | ANALYSIS OF CHANGES IN NET DEBT |
Other |
non-cash |
At 1.6.22 | Cash flow | changes | At 31.5.23 |
£ | £ | £ | £ |
Net cash |
Cash at bank | 14,034 | (13,429 | ) | 605 |
Bank overdrafts | (406,274 | ) | 38,631 | (367,643 | ) |
(392,240 | ) | (367,038 | ) |
Debt |
Finance leases | (2,496,086 | ) | 694,345 | - | (2,647,445 | ) |
Debts falling due |
within 1 year | (2,868,638 | ) | (47,081 | ) | - | (2,915,719 | ) |
Debts falling due |
after 1 year | (2,921,350 | ) | 976,700 | - | (1,944,650 | ) |
(8,286,074 | ) | 1,623,964 | - | (7,507,814 | ) |
Total | (8,678,314 | ) | 1,649,166 | - | (7,874,852 | ) |
KSD SUPPORT SERVICES LIMITED (REGISTERED NUMBER: 04212679) |
NOTES TO THE FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 31 MAY 2023 |
1. | STATUTORY INFORMATION |
KSD Support Services Limited is a |
2. | ACCOUNTING POLICIES |
Basis of preparing the financial statements |
These financial statements have been prepared in accordance with Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention. |
The financial statements are presented in sterling which is the functional currency of the company and rounded to the nearest £1. |
Going concern |
In preparing the financial statements, the directors are required to make an assessment of the ability of the company to continue as a going concern. The directors have prepared a cash flow forecast for the company which covers the 12 month period from the date of signing these financial statements. |
On the basis of these forecasts and the fact that the company has substantial net current assets and net assets, the directors are confident that the company has adequate resources to continue in operational existence and to meet its liabilities as they fall due for the foreseeable future. In reaching this conclusion they are satisfied that no material uncertainty exists. As a result of the above, the directors have concluded that it remains appropriate to adopt a going concern basis of preparation in these financial statements and that no material uncertainty exists in reaching this conclusion. |
Significant judgements and estimates |
In the application of the accounting policies, management is required to make judgements, estimates and assumptions about the carrying values of assets and liabilities that are not readily apparent from other sources. |
The key judgements that management have made in applying the accounting policies relate to the valuation of investment property and recoverability of debtors, both trade and other. |
The investment property has been valued based upon historical property prices as well as actual and anticipated rental yields. These take into accounts known future rental receipts from let areas and use these to anticipate future potential rental income for the currently void areas. Development land is valued based upon the future potential income following development, this calculation uses industry expected standards for development. |
The estimates and underlying assumptions for debtors are based on historical experience and other factors that are considered to be relevant. In the case of companies which have gone into administration the company considers the likely recovery as indicated by the Administrators when providing for bad debts. 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 if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods. |
KSD SUPPORT SERVICES LIMITED (REGISTERED NUMBER: 04212679) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 MAY 2023 |
2. | ACCOUNTING POLICIES - continued |
Turnover |
Turnover is recognised when the work has been performed. Turnover represents amounts invoiced, net of value added tax, and adjusted for the value of work performed to date on contracts at the period end. |
When the outcome of a construction contract can be estimated reliably, contract costs and turnover are recognised by reference to the stage of completion at the balance sheet date. Stage of completion is measured by reference to the work completed to that date. |
Where the outcome cannot be measured reliably, contract costs are recognised as an expense in the period in which they are incurred and contract turnover is recognised to the extent of costs incurred that it is probable will be recoverable. |
When it is probable that contract costs will exceed the total contract turnover, the expected loss is recognised as an expense immediately, with a corresponding provision. |
Intangible assets |
Intangible assets are initially measured at cost. After initial recognition, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses. |
Website development is being amortised on a 25% reducing balance basis. |
Tangible fixed assets |
Plant and machinery | - |
Fixtures and fittings | - |
Motor vehicles | - |
Computer equipment | - |
Investment property |
Investment property is shown at most recent valuation. Any aggregate surplus or deficit arising from changes in fair value is recognised in profit or loss. |
Stocks |
Stocks have been valued at the lower of cost and estimated selling price less costs to sell. |
Cost is calculated using the first-in, first-out formula. Provision is made for damaged, obsolete and slow-moving stock where appropriate. |
Work in progress comprises costs incurred for a refurbishment projects and is valued at cost to the company less any anticipated losses. |
Taxation |
Taxation for the year comprises current and deferred tax. Tax is recognised in the Statement of Comprehensive Income, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. |
Current or deferred taxation assets and liabilities are not discounted. |
Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date. |
KSD SUPPORT SERVICES LIMITED (REGISTERED NUMBER: 04212679) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 MAY 2023 |
2. | ACCOUNTING POLICIES - continued |
Deferred tax |
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date. |
Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference. |
Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. |
Hire purchase and leasing commitments |
Assets obtained under hire purchase contracts or finance leases are capitalised in the balance sheet. Those held under hire purchase contracts are depreciated over their estimated useful lives. Those held under finance leases are depreciated over their estimated useful lives or the lease term, whichever is the shorter. |
The interest element of these obligations is charged to profit or loss over the relevant period. The capital element of the future payments is treated as a liability. |
Rentals paid under operating leases are charged to profit or loss on a straight line basis over the period of the lease. |
Pension costs and other post-retirement benefits |
The company operates a defined contribution pension scheme. Contributions payable to the company's pension scheme are charged to profit or loss in the period to which they relate. |
3. | OTHER OPERATING INCOME |
31.5.23 | 31.5.22 |
£ | £ |
Rents received |
Sundry receipts | 49,427 | 5,394 |
Government grants |
237,438 | 305,690 |
The entity has received the following from the UK government in respect of COVID 19 grants and reliefs: |
31.5.23 | 31.5.22 |
£ | £ |
Coronavirus Job Retention Scheme (CJRS) | - | 18,722 |
Local authority grants | - | 6,413 |
- | 25,135 |
There are no unfulfilled conditions or other contingencies attaching to any of the above amounts. |
4. | EMPLOYEES AND DIRECTORS |
31.5.23 | 31.5.22 |
£ | £ |
Wages and salaries |
Social security costs |
Other pension costs |
KSD SUPPORT SERVICES LIMITED (REGISTERED NUMBER: 04212679) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 MAY 2023 |
4. | EMPLOYEES AND DIRECTORS - continued |
The average number of employees during the year was as follows: |
31.5.23 | 31.5.22 |
Administration | 17 | 24 |
Direct | 44 | 51 |
Indirect | 61 | 41 |
31.5.23 | 31.5.22 |
£ | £ |
Directors' remuneration |
5. | OPERATING PROFIT |
The operating profit is stated after charging/(crediting): |
31.5.23 | 31.5.22 |
£ | £ |
Vehicle operating leases |
Other operating leases |
Depreciation - owned assets |
Depreciation - assets on hire purchase contracts |
Loss/(profit) on disposal of fixed assets | ( |
) |
Computer software amortisation |
Auditors' remuneration |
Auditors' remuneration for non audit work |
6. | INTEREST PAYABLE AND SIMILAR EXPENSES |
31.5.23 | 31.5.22 |
£ | £ |
Bank interest |
Other interest |
Loan interest |
Invoice discounting |
HMRC interest |
Hire purchase |
7. | TAXATION |
Analysis of the tax charge |
The tax charge on the profit for the year was as follows: |
31.5.23 | 31.5.22 |
£ | £ |
Current tax: |
UK corporation tax |
Deferred tax |
Tax on profit |
KSD SUPPORT SERVICES LIMITED (REGISTERED NUMBER: 04212679) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 MAY 2023 |
7. | TAXATION - continued |
Reconciliation of total tax charge included in profit and loss |
The tax assessed for the year is higher than the standard rate of corporation tax in the UK. The difference is explained below: |
31.5.23 | 31.5.22 |
£ | £ |
Profit before tax |
Profit multiplied by the standard rate of corporation tax in the UK of (2022 - |
Effects of: |
Expenses not deductible for tax purposes |
Capital allowances in excess of depreciation | ( |
) | - |
Depreciation in excess of capital allowances | - |
Property revaluation movement | - | (146,660 | ) |
Change in tax rates | 30,386 | - |
Loan interest receivable | 101,001 | - |
Total tax charge | 723,264 | 796,318 |
8. | DIVIDENDS |
31.5.23 | 31.5.22 |
£ | £ |
Ordinary shares of £0.01 each |
Interim |
9. | INTANGIBLE FIXED ASSETS |
Computer |
software |
£ |
COST |
At 1 June 2022 |
and 31 May 2023 |
AMORTISATION |
At 1 June 2022 |
Amortisation for year |
At 31 May 2023 |
NET BOOK VALUE |
At 31 May 2023 |
At 31 May 2022 |
KSD SUPPORT SERVICES LIMITED (REGISTERED NUMBER: 04212679) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 MAY 2023 |
10. | TANGIBLE FIXED ASSETS |
Fixtures |
Plant and | and | Motor | Computer |
machinery | fittings | vehicles | equipment | Totals |
£ | £ | £ | £ | £ |
COST |
At 1 June 2022 |
Additions |
Disposals | ( |
) | ( |
) |
At 31 May 2023 |
DEPRECIATION |
At 1 June 2022 |
Charge for year |
Eliminated on disposal | ( |
) | ( |
) |
At 31 May 2023 |
NET BOOK VALUE |
At 31 May 2023 |
At 31 May 2022 |
Fixed assets, included in the above, which are held under hire purchase contracts are as follows: |
Motor | Computer |
vehicles | equipment | Totals |
£ | £ | £ |
COST |
At 1 June 2022 |
Additions |
Disposals | ( |
) | ( |
) |
At 31 May 2023 |
DEPRECIATION |
At 1 June 2022 |
Charge for year |
Eliminated on disposal | ( |
) | ( |
) |
At 31 May 2023 |
NET BOOK VALUE |
At 31 May 2023 |
At 31 May 2022 |
11. | INVESTMENT PROPERTY |
Total |
£ |
FAIR VALUE |
At 1 June 2022 |
and 31 May 2023 |
NET BOOK VALUE |
At 31 May 2023 |
At 31 May 2022 |
KSD SUPPORT SERVICES LIMITED (REGISTERED NUMBER: 04212679) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 MAY 2023 |
11. | INVESTMENT PROPERTY - continued |
Fair value at 31 May 2023 is represented by: |
£ |
Valuation in 2022 | 359,811 |
Cost | 8,045,189 |
8,405,000 |
If the investment property had not been revalued they would have been included at the following historical cost: |
31.5.23 | 31.5.22 |
£ | £ |
Cost | 8,045,189 | 8,045,189 |
The investment properties were valued on an open market basis on 31 May 2023 by the directors . |
12. | STOCKS |
31.5.23 | 31.5.22 |
£ | £ |
Goods for resale |
Work-in-progress |
Development costs | 87,624 | - |
13. | DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
31.5.23 | 31.5.22 |
£ | £ |
Trade debtors |
Amounts owed by group undertakings |
Other debtors |
Owed by entities under common control | 3,914,691 | 3,697,136 |
Loans receivable | 1,689,626 | 1,331,568 |
Tax |
Prepayments and accrued income |
14. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
31.5.23 | 31.5.22 |
£ | £ |
Bank loans and overdrafts (see note 16) |
Other loans (see note 16) |
Hire purchase contracts (see note 17) |
Trade creditors |
Amounts owed to group undertakings |
Tax |
Social security and other taxes |
VAT | 1,180,276 | 810,755 |
Other creditors |
Directors' loan accounts | 132,175 | 152,570 |
Deferred income |
Accrued expenses |
KSD SUPPORT SERVICES LIMITED (REGISTERED NUMBER: 04212679) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 MAY 2023 |
15. | CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR |
31.5.23 | 31.5.22 |
£ | £ |
Bank loans (see note 16) |
Hire purchase contracts (see note 17) |
16. | LOANS |
An analysis of the maturity of loans is given below: |
31.5.23 | 31.5.22 |
£ | £ |
Amounts falling due within one year or on demand: |
Bank overdrafts |
Bank loans |
Financing of trade debtors (see note 15) |
Amounts falling due between one and two years: |
Bank loans - 1-2 years |
Amounts falling due between two and five years: |
Bank loans - 2-5 years |
17. | LEASING AGREEMENTS |
Minimum lease payments fall due as follows: |
Hire purchase contracts |
31.5.23 | 31.5.22 |
£ | £ |
Gross obligations repayable: |
Within one year |
Between one and five years |
Finance charges repayable: |
Within one year |
Between one and five years |
Net obligations repayable: |
Within one year |
Between one and five years |
KSD SUPPORT SERVICES LIMITED (REGISTERED NUMBER: 04212679) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 MAY 2023 |
17. | LEASING AGREEMENTS - continued |
Non-cancellable operating | leases |
31.5.23 | 31.5.22 |
£ | £ |
Within one year |
Between one and five years |
The company pays a rent for its head office, Patcham Place, and also an office in Scotland. There are however no formal leases or unexpired leases in respect of these properties. |
18. | SECURED DEBTS |
The following secured debts are included within creditors: |
31.5.23 | 31.5.22 |
£ | £ |
Bank overdrafts |
Bank loans |
Financing of trade debtors | 1,939,019 | 1,891,938 |
The bank overdraft and loan account from National Westminster Bank plc are secured by way of a fixed and floating charge over the assets of the company. |
The financing of trade debtors by RBS Financial Services Ltd is secured by a fixed and floating change over the assets of the company. This charge contains a negative pledge. |
19. | PROVISIONS FOR LIABILITIES |
31.5.23 | 31.5.22 |
£ | £ |
Deferred tax |
Accelerated capital allowances |
Other timing differences | - | 179,948 |
777,659 | 745,609 |
Deferred |
tax |
£ |
Balance at 1 June 2022 |
Provided during year |
Changes in tax rates |
Balance at 31 May 2023 |
20. | CALLED UP SHARE CAPITAL |
Allotted, issued and fully paid: |
Number: | Class: | Nominal | 31.5.23 | 31.5.22 |
value: | £ | £ |
Ordinary | £0.01 | 3 | 3 |
KSD SUPPORT SERVICES LIMITED (REGISTERED NUMBER: 04212679) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 MAY 2023 |
21. | RESERVES |
Capital |
Retained | redemption |
earnings | reserve | Totals |
£ | £ | £ |
At 1 June 2022 | 11,369,810 |
Profit for the year |
Dividends | ( |
) | ( |
) |
At 31 May 2023 | 13,226,882 |
22. | ULTIMATE PARENT COMPANY |
TNC Group Holdings Ltd is regarded by the directors as being the company's ultimate parent company. |
23. | RELATED PARTY DISCLOSURES |
31.5.23 | 31.5.22 |
£ | £ |
Loan movements | 761,153 | 1,926,985 |
Dividends paid | 450,000 | - |
Amount due from related party |
31.5.23 | 31.5.22 |
£ | £ |
Compensation paid | 303,047 | 402,292 |
Loan movements | 64,139 | - |
Amount due to related party |
31.5.23 | 31.5.22 |
£ | £ |
Purchases |
31.5.23 | 31.5.22 |
£ | £ |
Movement on loans | 263,881 | 908,779 |
Amount due from related party |
Amount due to related party | ( |
) |