Company registration number 02846010 (England and Wales)
KILNBRIDGE GROUP LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2023
KILNBRIDGE GROUP LIMITED
COMPANY INFORMATION
Directors
Dermot McDermott
Monica McDermott
John Tolan F.C.A.
Tim Larkin F.C.C.A
Secretary
John Tolan F.C.A
Company number
02846010
Registered office
McDermott House
South Crescent
Cody Road Business Park
London
E16 4TL
Auditor
Gravita II LLP
30 City Road
London
EC1Y 2AB
Bankers
Santander UK PLC
Santander House
100 Ludgate Hill
London
EC4M 7RE
KILNBRIDGE GROUP LIMITED
CONTENTS
Page
Strategic report
1 - 11
Directors' report
12 - 18
Independent auditor's report
19 - 21
Group statement of comprehensive income
22
Group statement of financial position
23
Company statement of financial position
24
Group statement of changes in equity
25
Company statement of changes in equity
26
Group statement of cash flows
27
Company statement of cash flows
28
Notes to the financial statements
29 - 47
KILNBRIDGE GROUP LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 30 JUNE 2023
- 1 -

The Directors present the Strategic Report for the year ended 30 June 2023.

 

Principal activity

The Group acts as a parent company for its wholly owned subsidiary Company.

 

The trading subsidiary, Kilnbridge Construction Services Limited, is an award-winning engineering and construction business with advanced capabilities. Operating as a Tier 2 turnkey specialist structures contractor Kilnbridge specialises in reinforced concrete construction, along with enabling and civil engineering works, temporary works design and installation, structural steelwork and complex structural alterations. Its specialist businesses provide concrete cutting and controlled demolition, hydro demolition, waste management and passive fire protection services.

 

The business is supported by in-house capabilities that underpin the delivery of its works: including Engineering and Design service which assists projects with design, detailing, buildability, methodology, preconstruction support and multi-disciplinary advice and expertise; K PLANT, which supplies, manages and maintains a comprehensive range of plant, equipment and capabilities and K FAB, its specialist structural steelwork fabricator.

 

The Group invests in its subsidiary and provides resources to generate profits either as dividends or as charges for resources provided.

 

Capital expenditure is required each year in information technology systems, plant, equipment and vehicles to ensure that its subsidiary can work more efficiently and increase turnover and profits.

Our sectors

We work on national infrastructure projects such as major transport hubs, nuclear energy and defence facilities along with heritage buildings, public buildings and commercial offices.

 

Major Infrastructure and Rail Programmes

Kilnbridge has been involved in the delivery of many structures and civil engineering packages on major infrastructure and rail schemes. Recent and current projects include Crossrail, High Speed 2 (HS2) and the Gatwick Station Upgrade Project.

 

We have also successfully delivered a wide range of projects and construction services for customers including Network Rail, and TFL on London Underground and Overground stations and their infrastructure networks.

 

We have worked on major infrastructure and rail projects nationally for many years and continue to support the ongoing investment in infrastructure expansion and improvements that are of significant importance to the nation's economic growth and environmental sustainability.

 

The key to our success continues to be our ability to develop solutions to deliver complex and challenging projects safely. As such, we continually invest in performance improvement to meet the demands of this safety critical and highly regulated environment.

 

Major Commercial and Mixed-Use Projects

Our knowledge and expertise in these sectors have created long-standing relationships with many of the UK’s leading commercial and residential property developers and their professional teams and delivery partners who value Kilnbridge as a trusted contractor.

 

Over the past 30 years, we have successfully delivered our services on some of the largest and most prestigious developments across London and the South-east. These include the major Wood Wharf Development scheme for the Canary Wharf Group and the Stratford Waterfront Development for the London Legacy Development Corporation.

 

Aviation

Kilnbridge has a diverse portfolio of projects successfully delivered on many of the UK’s major airports, most notably Heathrow, Gatwick and London City. We understand the unique issues that our clients and all stakeholders face in these highly regulated environments. We therefore work closely at all stages of the project to deliver it safely and to the highest standards with minimal disruption and environmental impact.

KILNBRIDGE GROUP LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2023
- 2 -

Energy

Our diverse and innovative approach has complemented the needs of this highly challenging and regulated sector. Kilnbridge completed projects in the past at Sizewell B Nuclear Power Plant and more recently the construction of the intake and outfall head structures for the new Hinkley Point C Nuclear Power Plant.

 

Trading and operating review

Turnover increased 24% year on year to £120.1m (2022: £97.3m). This performance translated into a pre-tax profit of £6.4m profit, a 61% increase from £4.0m in the previous year. We are pleased with these results, especially considering the notable impact of escalated commodity, energy, and labour costs.

 

The pre-tax profit margin grew to 5.4% from 4.1% in 2022. This impressive margin underscores our ability to navigate challenges and effectively integrate inflation recovery mechanisms within contracts. Furthermore, it reflects the successful culmination of various final account agreements, all of which were concluded by year-end.

 

Order book

Our three-year order book at FY2023 stood at £60m, providing us with a strong foundation to build on. This order book excludes turnover generated by our specialist business units, which consistently generate around £25m in turnover each year through concrete cutting, hydro demolition, fire protection, and waste management services.

 

Major projects

Most notable amongst our projects during the year and ongoing are:

 

 

 

 

 

KILNBRIDGE GROUP LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2023
- 3 -

Major new contracts awarded during the year included:

 

 

 

 

Measuring our performance

 

The Directors use the following financial KPIs as a measure of the Group's performance against its defined strategic priorities.

 

 

Year to

Year to

Variance

 

30/06/2023

30/06/2022

 

Turnover

£120.1m

£97.3m

24%

PBT

£6.4m

£4.0m

61%

Pre-tax profit margin

5.4%

4.1%

 

EBITDA

£9.9m

£6.5m

52%

Cash at Bank

£17.7m

£19.3m

-8%

 

Employee-Owned Trust "EOT" bonus scheme

 

Under the EOT bonus scheme all staff members who have served for six months or more are entitled to join the scheme, whereby all profits are divided equally amongst staff regardless of seniority or length of service. This profit-related bonus is a key recruitment tool for the Group in a highly competitive labour market. It is designed to attract and retain the best talent in a highly competitive labour market and is based on profit distribution after debt repayments.

 

We were very pleased to distribute our second EOT bonus shortly after the year end, through which every qualifying member of staff received £862 (FY2022: £545), distributing a total of £310,000 (FY2022: £160,000) under the scheme to qualifying staff members. The pay-out is in addition to other incentive and bonus schemes in place.

 

For more information on employee involvement, please see page 9.

 

KILNBRIDGE GROUP LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2023
- 4 -
Mitigating our risks

The Board has overall responsibility for identifying, managing and mitigating the Group's risks. The Board assesses the Group's exposure to its principal risks on a continuous basis, with day-to-day risk managed under delegated authorities by the operation leaders of the specialist business units.

 

The Group has robust risk controls and policies that are integrated at all levels of the business.

 

The principal risks that the Board believe are the most likely to affect the business operations, impact strategy, financial performance, and influence the Group's reputation are set out below.

 

Risk

Mitigating controls

Significant health, safety or environmental incident

Due to the nature of our work, there is the potential to cause significant harm to our employees, our business partners or members of the public, or to damage the environment. We are committed to safeguarding our people and protecting the environment wherever we operate.

 

  • Operating an integrated Health, Safety, Quality and Environment Management system, which is accredited to ISO 45001, ISO 9001 and ISO 14001 by an independent UKAS accredited third party.

 

  • Providing our own bespoke health and safety behavioural programme, Safety in Action. It has been delivered to all personnel, at all levels, within the business since 2015.

 

  • Requiring staff to report and log incidents immediately through a cloud-based safety reporting and observation App.

 

  • Discussing any incidents reported at weekly senior management meetings to identify any failings and instigating follow up actions.

 

  • Providing regular training to all staff to identify potential health and safety risks and ensure that Group policies and procedures are well understood.

 

  • Working with authorities and taking appropriate action as required.

 

Irrecoverable cost over-runs on individual contracts.

Delivering on our contractual obligations on time and on budget, and meeting and reporting against agreed service levels has a strong impact on our financial performance, reputation, and on our ability to win business.

The risk is increased during high inflationary periods as we are currently experiencing.

 

 

 

  • Applying pre-contractual procedures, to ensure that bids and tenders are priced appropriately.

 

  • Building inflation recovery mechanisms into contracts.

 

  • Employing good management procedures.

 

  • Maintaining strong lines of communication with clients throughout the duration of a project.

 

  • Rigorously pursuing contractual entitlements.

 

KILNBRIDGE GROUP LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2023
- 5 -

Risk

Mitigating controls

Cancellation or delays to major contracts

  • Monitoring government policy

 

  • Manage relationships with clients to manage work load or works programmes

 

  • Mixed work force of PAYEs and contractors to provide flexibility in cost base

 

  • Maintaining a strong balance sheet

 

  • Maintain relationships with suppliers to secure best prices in the event of delays

Safety regulation changes

The Building Safety Act has the potential to allow clients to make claims against historic works and that may require remedial action.

 

  • Monitoring legislation changes

 

  • Identifying current and historic projects that may be affected

 

  • Making provision for remedial works as required

 

  • Working closely with clients to resolve issues

Losing clients to cheaper competition.

Our industry faces strong competition, particularly for general construction works and non-specialist skills, which can lead to price-pressure from competitors.

 

  • Continuous monitoring and reviewing of the performance of our clients and competitors to ensure the quality and value of service that we provide remains competitive.

 

  • Continuous improvement and refinement of the bid and tender process.

 

  • Targeting business that requires specialist skills and infrastructure projects, which have higher barriers to entry and face less competition.

 

  • Driving improvement of our people and processes with our “Right First Time” culture to ensure our position and reputation as a leading engineering business.

 

Reputational management

Maintaining our reputation is vital to the success of our business. A loss in confidence from clients and our sector would affect our ability to win business. This can, in turn, adversely affect our financial performance and growth prospects.

 

  • Applying standard procedures and strong management to avoid reputational damage arising from failure to maintain the high quality

of service for which the group is recognised.

 

  • Fostering a positive working relationship underpinned by respect, trust and loyalty with our employees, clients and suppliers.

 

KILNBRIDGE GROUP LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2023
- 6 -

Risk

Mitigating controls

Price inflation

Inflationary pressures have an impact on input prices including labour, materials and energy.

 

  • Inflation recovery mechanisms are built into

contracts.

 

  • Front-line staff costs are directly related to

client contracts and are covered by price

adjustment factors.

 

  • Head office energy contracts are fixed

until September 2024.

 

  • The procurement department is responsible

for managing suppliers. During the year

the department focused on

  • bulk purchasing where possible to

benefit from preferential price, and

  • forward purchasing materials

and increasing the amount of stock held

in order to mitigate future price increases.

Increased competition for skilled labour

An ongoing shortage of skilled and semi-skilled labour in the construction industry has the potential to impact on the delivery of our contractual obligations.

 

  • Providing training and development to our

own staff to upskill employees and fill

roles internally

 

  • Sponsoring apprentices to create a

new generation of skilled workers

 

  • Reviewing and benchmarking our pay and

benefits packages to make them more

competitive

 

  • All staff who work at Kilnbridge join

the employee owned trust and are eligible

for a share of profit-related bonuses.

 

  • Using skilled worker licences to recruit

from overseas where required.

Financial controls

Failure to impose strong financial controls may result in a heightened risk of error in reporting, inaccurate financial forecasting, bad debts, a lack of liquidity, exposure to uninsured losses, and exposure to liabilities arising from inter-company guarantees.

 

  • Operating a central treasury function

with extensive control over working capital and

cash management.

 

  • Conducting monthly cost value

reconciliations on all projects to monitor

and measure expenditures against budgets.

 

  • Maintaining relationships with banks,

together with the continuing support of

its holding company, ensures the Group

has adequate liquidity and cash flow

for foreseeable needs.

 

  • Using the advice of insurance brokers, the

Group believes it has adequate

insurance in respect of foreseeable

and insurable risks.

  • Careful management and monitoring

of operations, with support from its banks, aims

to minimise the risk of exposure to liabilities

arising from inter-Company guarantees.

KILNBRIDGE GROUP LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2023
- 7 -

In addition to the above, the Board would like to highlight an additional matter:

 

HSE Investigation

Following a fatal workplace incident on the Gatwick Rail Station project at the start of FY2023, the Group continues to work with the authorities and the client in the ongoing investigation to gain a complete understanding of the events that took place. The Group will continue to cooperate with the authorities, taking appropriate action as required.

 

Business Transformation - Vision 2025

The Group has made considerable progress in its business transformation programme, Vision 2025, since its launch in early 2022. The programme has involved all staff at all levels to shape the business and meet its vision.

 

“To deliver construction projects and services that have an enduring legacy on the UK’s infrastructure and built environment, transforming the way people live and work.”

 

The key priorities of Vision 2025 were to:

 

 

The business has made good progress across key financial indicators and has made improvement to internal communication, IT, and HR including recruitment, training and onboarding programmes, senior leadership development and succession planning. Internal reorganisation initiatives have enhanced operational efficiency and overhead effectiveness. Examples include:

 

 

One of the priorities for Vision 2025 was to set a long-term Business Strategy to replace Vision 2025 and set the tone for long-term, sustainable growth. This exercise began in 2023 involving the Board and senior leadership team in light of the current opportunities and risks. The business strategy was finalised post year-end.

KILNBRIDGE GROUP LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2023
- 8 -
Section 172 Statement

Engaging with our stakeholders

 

The Board seeks to understand the expectations and interests of the Group's stakeholders, and to reflect these in the choices it makes in its efforts towards the long-term success of the business.

 

Engagement with our stakeholders, including employees, clients, contractors, suppliers, and banks forms a central part in our decision-making process. The Board tailors its engagement approach to each stakeholder group in order to foster effective, sustainable and mutually beneficial relationships.

 

The Board’s understanding of its stakeholder interests is taken into consideration within Boardroom discussions in relation to strategy and planning. The Board considers how stakeholder expectations may be addressed and how the Board’s decisions may impact stakeholder interests. Stakeholder expectations are determined through information gathered and provided by management and by direct engagement. The priority of each stakeholder group may increase or decrease, depending on the impact a decision may have on a particular stakeholder group.

 

This section of the report serves as our Section 172 Statement and should be read in conjunction with the Strategic Report. Section 172 of the Companies Act 2006 requires the Directors to act in a way that they consider, in good faith, would most likely promote the success of the Group for the benefit of its members as a whole, taking into account the factors listed in Section 172.

 

The table below set out the key stakeholder groups, their interests and how Kilnbridge has engaged with them over the reporting period.

 

Key decisions made in FY2023

  1. Review of business strategy – the Board made the decision to review the Group's strategy in light of the current opportunities and risks. The business strategy was finalised post year-end.

  2. Appointment of a full-time HR Director – to set the people strategy, manage training and development and recruitment.

  3. Appointment of a Head of Communications – appointed post year-end to manage internal and external communications with key stakeholders.

  4. Centralised procurement and appointed a Head of Procurement – to manage suppliers and procurement.

  5. Appointment of a Head of Sustainability – to refresh and drive the Group's sustainability agenda.

 

KILNBRIDGE GROUP LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2023
- 9 -

Employees

 

Our employees are our primary asset, and the Board recognises that our employees are the key resource which enables delivery of the Group's vision and goals.

 

Their interests

  • Training, development and career

prospects

  • Health and safety

  • Working conditions

  • Fair pay and employee benefits

  • Diversity and inclusion

  • Human rights and modern slavery

 

How we engage

  • Employee benefits packages

  • Ongoing training and development

  • Formulation of career paths

  • Freely available Group policies and

procedures

  • Staff engagement surveys

  • Personal development reviews and work

appraisals

  • Vision 2025 change

management programme involving all

staff in the Group, including workshops

to identify key priorities, planning,

and regular meetings to provide updates on

progress and achievements.

 

 

Clients

 

The Board recognises that a strong reputation based around responsibility, integrity, teamwork and excellence is a vital part of the Group's growth.

 

Their interests

  • Safety and wellbeing

  • Delivery of projects on time and within

budget

  • Working with organisations whose goals

and values are aligned to their own

  • Close working relationships based on trust

and quality of delivery

 

How we engage

  • Day-to-day working relationships and

project management

  • Progress reports

  • Client meetings

  • Marketing and communications

  • Group website

 

 

Suppliers and contractors

 

Our contractors provide additional resources and specialist skills when required to complete projects.

 

Their interests

  • Terms and conditions of contracts

  • Health and safety

  • Working conditions

  • Credit ratings

  • Prompt payment to agreed terms

 

How we engage

  • Seeking comparable business behaviours

to our own by applying the same values,

ethics and policies relevant to our own

staff

  • Ensuring prompt payment of invoices

  • Regular day-to-day communication by our

management team

 

 

 

KILNBRIDGE GROUP LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2023
- 10 -

Banks and debt providers

 

The Group has access to lines of credit in order to satisfy working capital requirements with banks and HP providers.

 

Their interests

  • Review of financial performance, balance

sheet, net asset base, gearing and interest

cover

  • High standards of corporate governance

  • Ethical behaviour

  • Awareness of strategy and potential risks

How we engage

  • Regular meetings

  • Submission of management information

and reporting.

  • Presentations

  • Communication through briefings with

management

  • Annual report

  • Group website

 

 

Community and environment

 

The Group is committed to its social responsibility by actively embracing the communities in which it operates as well as the ongoing protection and enhancement of the environment.

 

Their interests

  • Sustainable and responsible business

  • Regulatory compliance

  • Health and safety

  • Protection and enhancement of the

environment

  • Commitment towards net-zero carbon

  • Positive impact on society, resulting in

mutually beneficial relationships

How we engage

  • Working with clients, staff, or with locally

supported bodies to provide charitable

support and assistance to local

communities.

  • Providing STEM ambassadors to schools

and colleges.

  • ISO 14001 Environmental Management

System accreditation.

  • Partners and Gold membership of the Supply Chain Sustainability School

  • Independently audited systems for waste

management.

  • Independently assessed energy and

carbon management systems.

 

KILNBRIDGE GROUP LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2023
- 11 -

Outlook and future prospects

 

We started the year with an order book of approximately £60m through to 2025, providing us with a strong foundation. This order book excludes the turnover generated by our specialist business units, which consistently generate around £25m each year through concrete cutting, fire protection, and waste management services.

 

The cancellation of Phase 2 of HS2, announced in October 2023, put an immediate stop to tenders under development by the pre-construction team, although HS2 Phase 1 contracts will continue to FY2025. This announcement led the Board to evaluate what impact the HS2 cancellation would have on Kilnbridge’s future prospects, balancing this against other national infrastructure construction opportunities available.

 

The Board concluded that whilst the cancellation of HS2 is disappointing, there remain significant opportunities in major national infrastructure and energy projects. Our sector continues to benefit from a planned and projected £700-775b of expected public and private investment over the next decade. The majority of this investment will be on transport, energy, utilities, and social infrastructure and are all areas where Kilnbridge has a strong track record and an established client base.

 

As a group that has successfully delivered complex projects, the Board is confident that the Group remains well-positioned to participate in a number of these schemes over the coming years. To target these opportunities we began developing our Group Strategy which will sit alongside the Vision 2025 business transformation programme. This strategy will bring clarity to the type and scale of projects we will pursue and how we will go about delivering them.

 

We continue to target approximately 80% of revenues towards infrastructure and energy with the remainder delivering commercial projects such as complex structural alterations.

 

While inflation stabilises we continue to maintain strong cost control measures and forward procurement planning to secure the best prices for materials and major plant investments.

 

In summary, we are focused on our core business activities and remain well-positioned to participate in major projects scheduled to take place in the UK over the coming years.

On behalf of the board

Dermot McDermott
Director
28 March 2024
KILNBRIDGE GROUP LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 30 JUNE 2023
- 12 -

The Directors present their annual report and financial statements for the year ended 30 June 2023.

Results and dividends

The results for the year are set out on page 22.

Ordinary dividends were paid amounting to £6,000,000 (2022: £2,240,000). The Directors do not recommend payment of a further dividend.

Directors

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

Dermot McDermott
Monica McDermott
John Tolan F.C.A.
Tim Larkin F.C.C.A

ISO 4001 certification

The business has successfully continued to maintain its accreditation to the ISO 45001 standard. There were no non-conformances identified during the two visits by our UKAS accredited third party auditors during the reporting period.

The Integrated Management System and our business operations have all been successfully audited against the Achilles Utility Vendors Database (UVDB) & Building Confidence Schemes as well as Rail Industry Safety Qualification Scheme (RISQS) to demonstrate compliance across the Utilities, Construction and Rail Sectors

 

Sustainability report - growing our business responsibly

Operating in a responsible manner is integral to our vision to create an enduring legacy, which defines us as a sustainable business providing the best service to our clients.

Sustainability sits at the forefront of the business agenda, and our strategy is aligned to addressing the key risks and expectations of the business, our workforce, and its stakeholders, with the aim of delivering and achieving sustainable growth, economically, environmentally, and socially.

We recognise that our people are our most valuable asset and, therefore, the protection of their health, safety and wellbeing extends beyond our moral and legal requirements, ensuring that they are fit for work. In addition, we acknowledge that by tackling climate change and reducing emissions, we will help to safeguard the health and wellbeing of our people and the environment both now and for future generations.

We are very proud to have won several prestigious industry awards, which acknowledge our achievements in delivering an excellent service to our clients and rewards the hard work of our dedicated and professional employees.

Our main focus remains linked to our vision and values and we are dedicated to embedding these into every aspect of our day-to-day operations and culture.

During the period we reviewed our sustainability strategy to reflect the continuing development and increasing importance of operating in a environmentally and socially responsible manner. These have been linked to the UN Sustainable Development Goals. During this exercise we expanded and set new targets to focus our activities and ensure that we make meaningful and impactful progress in our sustainability objectives. We have published a separate sustainability report for the first time, of which a summary is included below.

KILNBRIDGE GROUP LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2023
- 13 -
KILNBRIDGE GROUP LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2023
- 14 -

Outstanding workplaces

 

Thrive together

 

We encourage and support our people’s continuous personal and professional development and recognise that we operate in a highly competitive labour market and have strategies in place to encourage staff retention and develop our own talent from within.

 

In 2023, we enhanced our onboarding programme and extended our compliance inductions to include all staff across all sites. We also introduced a buddy scheme to support new joiners and apprentices in their first 90 days with us. We will be training new buddies in their responsibilities and how they can help smooth a new joiner’s entry into Kilnbridge. 

 

A key target is to see an increase in female representation at all levels of the business year on year, as we acknowledge that at Kilnbridge this sits below the industry norm of 14%. This goal was achieved at management and senior levels of the organisation with the recruitment of a permanent HR Director who sits on the Board, a Head of Communications, a Head of Sustainability, Safety & Wellbeing Manager, Lifting Manager and two Senior Project Leaders.

 

Foster inclusive change

 

Kilnbridge is an equal opportunities employer committed to creating a diverse workplace where everyone is treated fairly and with respect.

 

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

 

To support our HR strategy, we have trained and appointed four FIRs ambassadors, five STEM ambassadors, and continue to provide EDI training to the workforce.

 

Enhancing the environment

We are committed to the ongoing protection and enhancement of the environment. This is achieved through education, knowledge, and practical applications.

Our policy and ISO 14001 accredited Environmental Management System seeks to minimise the negative environmental impacts of our operations through the efficient use of resources, energy and carbon management, and creating processes to deliver our services in a more sustainable way.

 

We are proud to be Partners and have maintained Gold membership of the Supply Chain Sustainability School, allowing us to collaborate with like-minded businesses in helping shape the sustainable agenda both within the industry and our supply chain

 

Accelerated net zero transition

As a group, we are actively working towards achieving a better future with a lower overall impact on the environment. Our immediate focus is on energy efficiency, investing in new carbon reducing technologies and waste reduction. With each project, product or service delivered we are becoming more and more environmentally conscious and collaborative with clients and industry partners who share our commitments. 

We are a Carbon Neutral Group, a Co2nstruct Zero Business Champion and have recently joined The Climate Group’s Concrete Zero and Steel Zero groups as part of our commitment to achieving Net Zero.

KILNBRIDGE GROUP LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2023
- 15 -

We have established a near-term Science Based Targets Initiative (SBTi) target, aiming for a 46.2% reduction in Scope 1 & 2 greenhouse gas (GHG) emissions by 2030. Additionally, our target entails a 90% reduction in Scopes 1, 2, and 3 GHG emissions by 2040, based on the FY22 as the baseline year. At the end of 2023 we submitted our application to SBTi for our targets to be validated. 

We continue to invest in new plant and equipment technologies to meet the needs of the business’s innovative construction methods and to improve project performance in terms of sustainability, programme, and cost. This includes, use of electric plant to reduce CO2 emissions on our project sites, inclusion of electric vehicles in our group car fleet and using REGO-backed renewable energy sources.

In 2023, we set a Carbon Reduction Plan (PPN 06/21) which aims to reduce our carbon emission both in absolute terms and intensity. 

Kilnbridge’s carbon intensity has reduced by 30% since FY2021 but rose 21% between FY2022 and FY2023. The main reason for this is the Government’s reform of rebated fuels entitlement that came into effect from April 2022, which resulted in the price of HVO fuel averaging 10% to 20% more than standard diesel, impacting our direct impact carbon emissions data.

Our Head Office, Consolidation Centre (K PLANT) and the Northampton Steel Fabrication (K FAB) facilities use renewable energy. For the entire business in FY22, 91% of electricity consumption is derived from renewable sources. Furthermore, on our sites, 26% of the energy consumption is attributed to renewable diesel, specifically HVO D+. 

 

GHG Emissions Data

2023

2022

2021

 

 

 

 

Total energy consumed (kWh)

9,615,290

8,475,654

7,248,715

 

 

 

 

Scope 1 emissions from gas, transport and construction site fuel use (tCO2e)

2,088.54

1,311.32

1,755.26

Scope 2 emissions from electricity use (tCO2e)

17.96

115.75

117.03

Scope 3 emissions from vehicle business travel (tCO2e)

39.67

23.70

18.53

Total gross tCO2e

2,146.17

1,450.77

1,890.82

 

 

 

 

Intensity ratio: Tonnes CO2e per £m turnover

18.02

14.89

25.66

 

We have applied the most relevant emission factors sourced from DEFRA’s 2021 UK Greenhouse Gas (‘GHG’) Conversion Factors for Group Reporting.

 

Pursue circular outcomes

 

We achieve a lower overall impact on the environment by pursuing circular economy principles. We adopt recycle, reuse and repurpose approaches.

 

Our Waste Management Facility has successfully been audited against the requirements of PAS 402; which provides a standardised framework for the demonstration of performance against key areas for waste contractors.

 

Kilnbridge Waste Management Facility diverts 100% of waste from landfill and feeds it back into industry for reuse, ensuring the maximum use of resources whilst contributing towards a circular economy. The implementation of a trade waste collection software has enabled us to deliver an online customer portal with full electronic duty of care documentation; which improves workflows both within the business and for our customers whilst providing a sustainable and innovative solution.

KILNBRIDGE GROUP LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2023
- 16 -

Health, safety and wellbeing

Since its inception in 2015, our “Safety in Actionstrategy and behavioural programme has contributed to an improving and maturing culture for health, safety, and wellbeing. This is underpinned by our values and by working to a set of golden rules, to help create an environment where everyone understands the behaviours expected, the health and safety requirements for their task and where everyone believes accidents, incidents and ill health are preventable.

 

Leading indicators for our cultural development focused on improvements in leadership, confidence in competence, controls, health, and wellbeing. There has been a total of 101 Leadership Engagement Tours carried out during the reporting period, leadership representation at all our bi-annual Safety and Wellbeing stand-downs, with delivery of designated topics such as work at height, dust, musculoskeletal disorders, mental health & wellbeing: together with the development of supervisor assessment standards and the management of lifting operations.

 

Our Reportable Accident Frequency Rate during the year was 0.09, (2022: nil) 2021 (nil). Regrettably, shortly after the year's commencement, one of our colleagues lost their life in a workplace incident on the Gatwick Rail Station project. We are deeply saddened by this tragic occurrence and are working closely with the authorities and our client to conduct a thorough investigation to gain a complete understanding of the events that took place. Our utmost priority is to offer support to the bereaved family and ensure the wellbeing of our colleagues. This incident reminds us that, despite our unwavering emphasis on safety, the construction industry is still inherently hazardous. The Board is committed to driving improvements across the business to ensure the safety and protection of all who work within our operations

People

Health surveillance and medicals continue to be delivered by our approved Occupational Health Providers in line with the requirement of our clients. Safety critical medicals and drug and alcohol screening for workers on rail projects are also being undertaken in accordance with Network Rail requirements.

 

The mental health of our workforce and their families has never been more important. In line with our “Safety in Action” strategy, the business continues to provide Mental Health Awareness training for our workforce; to end the stigma surrounding mental health.

 

Modern slavery

 

We operate a zero-tolerance approach to modern slavery with our Anti-Slavery and Human Trafficking policy consistent with the requirements of the Modern Slavery Act 2015.

KILNBRIDGE GROUP LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2023
- 17 -
Statement of directors' responsibilities

 

The directors are responsible for preparing the Annual Report and the financial statements in accordance with applicable law and regulations.

 

Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the group and company, and of the profit or loss of the group for that period. In preparing these financial statements, the directors are required to:

 

 

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

Strategic report

 

The trueGroup has chosen in accordance with Companies Act 2006, s. 414C(11) to set out in the Group's strategic report information required by Large and Medium-sized Companies and Groups (Accounts and Reports) Regulations 2008, Sch. 7 to be contained in the Directors' Report.

Auditor

 

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

Statement of disclosure to auditor

 

So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the auditor of the Group is unaware. Additionally, the Directors individually have taken all the necessary steps that they ought to have taken as Directors in order to make themselves aware of all relevant audit information and to establish that the auditor of the Group is aware of that information.

KILNBRIDGE GROUP LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2023
- 18 -
Going concern

 

The financial information for the year to 30th June 2023 has been prepared assuming that the Group will continue as a going concern.

Under the going concern assumption, the Board of Directors is required to consider the Groups ability to continue as a going concern over a period of at least 12 months from the date of approval of the financial statements.

 

The Directors are confident that the Group can continue to trade successfully for the foreseeable future because we have a satisfactory order book from well-established clients, good liquidity and consistent profits.

On behalf of the board
Dermot McDermott
Director
28 March 2024
KILNBRIDGE GROUP LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF KILNBRIDGE GROUP LIMITED
- 19 -
Opinion

We have audited the financial statements of Kilnbridge Group Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 30 June 2023 which comprise the group statement of comprehensive income, the group statement of financial position, the company statement of financial position, the group statement of changes in equity, the company statement of changes in equity, the group statement of cash flows, the company statement of cash flows and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including FRS 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

 

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the group's and parent company’s ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue. However, because not all future events or conditions can be predicted this statement is not a guarantee as to the group’s and parent company's ability to continue as a going concern.

 

Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.

Other information

The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The directors are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

 

We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

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

KILNBRIDGE GROUP LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF KILNBRIDGE GROUP LIMITED
- 20 -
Matters on which we are required to report by exception

In the light of the knowledge and understanding of the group and the parent company and their environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the directors' report.

 

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

Responsibilities of directors

As explained more fully in the directors' responsibilities statement, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the directors are responsible for assessing the parent company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the parent company or to cease operations, or have no realistic alternative but to do so.

Auditor's responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

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. However, the primary responsibility for the prevention and detection of fraud rests with both those charged with governance of the entity and management.

The extent to which the audit was considered capable of detecting irregularities including fraud

Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was as follows:

KILNBRIDGE GROUP LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF KILNBRIDGE GROUP LIMITED
- 21 -

We assessed the susceptibility of the group and the parent company’s financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by:

To address the risk of fraud through management bias and override of controls, we:

In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to:

There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the directors and other management and the inspection of regulatory and legal correspondence, if any.

 

Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment by for example forgery, or intentional misrepresentation or through collusion. Our audit procedures are designed to detect material misstatement. We are not responsible for preventing non-compliance or fraud and cannot be expected to detect non-compliance with all laws and regulations.

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

Ian Hughes ACA (Senior Statutory Auditor)
For and on behalf of Gravita II LLP
29 March 2024
Chartered Accountants
Statutory Auditor
30 City Road
London
EC1Y 2AB
KILNBRIDGE GROUP LIMITED
GROUP STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 30 JUNE 2023
- 22 -
2023
2022
Notes
£
£
Turnover
3
120,094,822
97,264,090
Cost of sales
(109,639,947)
(89,954,259)
Gross profit
10,454,875
7,309,831
Administrative expenses
(4,242,933)
(3,295,797)
Other operating income
71,866
11,993
Operating profit
4
6,283,808
4,026,027
Interest receivable and similar income
8
229,176
18,605
Interest payable and similar expenses
9
(78,332)
(44,728)
Profit before taxation
6,434,652
3,999,904
Tax on profit
10
1,810,615
(875,661)
Profit for the financial year
8,245,267
3,124,243
Profit for the financial year is all attributable to the owners of the parent company.
Total comprehensive income for the year is all attributable to the owners of the parent company.

The income statement has been prepared on the basis that all operations are continuing operations.

KILNBRIDGE GROUP LIMITED
GROUP STATEMENT OF FINANCIAL POSITION
AS AT
30 JUNE 2023
30 June 2023
- 23 -
2023
2022
Notes
£
£
£
£
Fixed assets
Tangible assets
12
6,407,577
6,830,922
Investments
13
49,400
49,400
6,456,977
6,880,322
Current assets
Stocks
15
351,592
357,371
Debtors
16
23,287,518
19,041,424
Cash at bank and in hand
17,733,867
19,274,544
41,372,977
38,673,339
Creditors: amounts falling due within one year
17
(24,609,199)
(24,861,184)
Net current assets
16,763,778
13,812,155
Total assets less current liabilities
23,220,755
20,692,477
Creditors: amounts falling due after more than one year
18
(1,331,418)
(1,037,879)
Provisions for liabilities
Deferred tax liability
20
372,996
383,524
(372,996)
(383,524)
Net assets
21,516,341
19,271,074
Capital and reserves
Called up share capital
22
10,000
10,000
Other reserves
23
326,352
326,352
Profit and loss reserves
23
21,179,989
18,934,722
Total equity
21,516,341
19,271,074
The financial statements were approved by the board of directors and authorised for issue on 28 March 2024 and are signed on its behalf by:
28 March 2024
Dermot McDermott
Director
Company registration number 02846010 (England and Wales)
KILNBRIDGE GROUP LIMITED
COMPANY STATEMENT OF FINANCIAL POSITION
AS AT 30 JUNE 2023
30 June 2023
- 24 -
2023
2022
Notes
£
£
£
£
Fixed assets
Tangible assets
12
6,040,593
6,222,838
Investments
13
54,400
54,400
6,094,993
6,277,238
Current assets
Debtors
16
284,685
399,404
Cash at bank and in hand
10,379,243
10,752,233
10,663,928
11,151,637
Creditors: amounts falling due within one year
17
(9,398,635)
(12,450,501)
Net current assets/(liabilities)
1,265,293
(1,298,864)
Total assets less current liabilities
7,360,286
4,978,374
Creditors: amounts falling due after more than one year
18
(1,331,418)
(1,037,879)
Provisions for liabilities
20
(344,175)
(354,703)
Net assets
5,684,693
3,585,792
Capital and reserves
Called up share capital
22
10,000
10,000
Profit and loss reserves
23
5,674,693
3,575,792
Total equity
5,684,693
3,585,792

As permitted by s408 Companies Act 2006, the company has not presented its own profit and loss account and related notes. The company’s profit for the year was £6,906,154 (2022: £1,607,166).

The financial statements were approved by the board of directors and authorised for issue on 28 March 2024 and are signed on its behalf by:
28 March 2024
Dermot McDermott
Director
Company Registration No. 02846010
KILNBRIDGE GROUP LIMITED
GROUP STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 JUNE 2023
- 25 -
Share capital
Other reserves
Profit and loss reserves
Total
Notes
£
£
£
£
Balance at 1 July 2021
10,000
326,352
18,050,479
18,386,831
Year ended 30 June 2022:
Profit and total comprehensive income for the year
-
-
3,124,243
3,124,243
Dividends
11
-
-
(2,240,000)
(2,240,000)
Balance at 30 June 2022
10,000
326,352
18,934,722
19,271,074
Year ended 30 June 2023:
Profit and total comprehensive income for the year
-
-
8,245,267
8,245,267
Dividends
11
-
-
(6,000,000)
(6,000,000)
Balance at 30 June 2023
10,000
326,352
21,179,989
21,516,341
KILNBRIDGE GROUP LIMITED
COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 JUNE 2023
- 26 -
Share capital
Profit and loss reserves
Total
Notes
£
£
£
Balance at 1 July 2021
10,000
4,208,626
4,218,626
Year ended 30 June 2022:
Profit and total comprehensive income for the year
-
1,607,166
1,607,166
Dividends
11
-
(2,240,000)
(2,240,000)
Balance at 30 June 2022
10,000
3,575,792
3,585,792
Year ended 30 June 2023:
Profit and total comprehensive income for the year
-
8,098,901
8,098,901
Dividends
11
-
(6,000,000)
(6,000,000)
Balance at 30 June 2023
10,000
5,674,693
5,684,693
KILNBRIDGE GROUP LIMITED
GROUP STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 30 JUNE 2023
- 27 -
2023
2022
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
29
5,928,937
5,838,110
Interest paid
(78,332)
(44,728)
Income taxes (paid)/refunded
(786,892)
416,255
Net cash inflow from operating activities
5,063,713
6,209,637
Investing activities
Purchase of tangible fixed assets
(2,660,714)
(2,484,618)
Proceeds from disposal of tangible fixed assets
996,540
403,889
Increase in hire purchase assets
1,136,489
-
Proceeds from disposal of investments
-
11,100
Interest received
229,176
18,605
Net cash used in investing activities
(298,509)
(2,051,024)
Financing activities
Payment of finance leases obligations
(305,881)
(193,771)
Dividends paid to equity shareholders
(6,000,000)
(2,240,000)
Net cash used in financing activities
(6,305,881)
(2,433,771)
Net (decrease)/increase in cash and cash equivalents
(1,540,677)
1,724,842
Cash and cash equivalents at beginning of year
19,274,544
17,549,702
Cash and cash equivalents at end of year
17,733,867
19,274,544
KILNBRIDGE GROUP LIMITED
COMPANY STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 30 JUNE 2023
- 28 -
2023
2022
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
30
591,375
6,658,001
Interest paid
(76,095)
(44,264)
Income taxes paid
(280,681)
(213,781)
Net cash inflow from operating activities
234,599
6,399,956
Investing activities
Purchase of tangible fixed assets
(2,611,631)
(2,389,302)
Proceeds from disposal of tangible fixed assets
996,540
403,889
Increase in hire purchase assets
1,136,489
-
0
Proceeds from disposal of investments
-
0
11,100
Interest received
176,894
13,164
Dividends received
6,000,000
-
0
Net cash generated from/(used in) investing activities
5,698,292
(1,961,149)
Financing activities
Payment of finance leases obligations
(305,881)
(193,771)
Dividends paid to equity shareholders
(6,000,000)
(2,240,000)
Net cash used in financing activities
(6,305,881)
(2,433,771)
Net (decrease)/increase in cash and cash equivalents
(372,990)
2,005,036
Cash and cash equivalents at beginning of year
10,752,233
8,747,197
Cash and cash equivalents at end of year
10,379,243
10,752,233
KILNBRIDGE GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2023
- 29 -
1
Accounting policies
Company information

Kilnbridge Group Limited (“the company”) is a company limited by shares incorporated in England and Wales. The registered office is McDermott House, South Crescent, Cody Road Business Park, London, E16 4TL.

 

The group consists of Kilnbridge Group Limited and its subsidiary.

1.1
Accounting convention

These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.

The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.

The financial statements have been prepared under the historical cost convention, modified to include the revaluation of investment properties. The principal accounting policies adopted are set out below.

1.2
Basis of consolidation

In the parent company financial statements, the cost of a business combination is the fair value at the acquisition date of the assets given, equity instruments issued and liabilities incurred or assumed, plus costs directly attributable to the business combination. The excess of the cost of a business combination over the fair value of the identifiable assets, liabilities and contingent liabilities acquired is recognised as goodwill. The cost of the combination includes the estimated amount of contingent consideration that is probable and can be measured reliably, and is adjusted for changes in contingent consideration after the acquisition date. Provisional fair values recognised for business combinations in previous periods are adjusted retrospectively for final fair values determined in the 12 months following the acquisition date. Investments in subsidiaries are accounted for at cost less impairment.

The consolidated financial statements incorporate those of Kilnbridge Group Limited and all of its subsidiaries (i.e. entities that the group controls through its power to govern the financial and operating policies so as to obtain economic benefits). Subsidiaries acquired during the year are consolidated using the purchase method. Their results are incorporated from the date that control passes.

 

All financial statements are made up to 30 June 2023. Where necessary, adjustments are made to the financial statements of subsidiaries to bring the accounting policies used into line with those used by other members of the group.

 

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

1.3
Going concern

At the time of approving the financial statements, the directors have a reasonable expectation that the group and company have adequate resources to continue in operational existence for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.

KILNBRIDGE GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2023
1
Accounting policies
(Continued)
- 30 -
1.4
Turnover

The group recognises revenue when it transfers control over the product or service to its client. Revenue is measured at the fair value of the consideration received or receivable, net of sales tax.

 

Revenue recognition is based on the satisfaction of our performance obligations which are satisfied over the duration of a contract.  Therefore, contract revenue and costs are recognised by reference to the stage of completion of each contract, as measured by the proportion of total costs at the balance sheet date to the total expected costs of the contract.

 

Revenue from services and construction contracts is recognised by reference to the stage of completion of the contract, as set out in the accounting policy for construction contracts.

 

Where the consideration is not specified in the contract with a customer and is subject to variability, the company estimates the amount of consideration to be received from its clients.

 

Revenue is only recognised to the extent that it is highly probable and that a significant reversal in the amount of cumulative revenue will not occur. 

Interest income is recognised when it is probable that the economic benefits will flow to the company and the amount of revenue can be measured reliably. Interest income is accrued on a time basis, by reference to the principal outstanding and the effective interest rate applicable.

1.5
Tangible fixed assets

Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.

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

Leasehold improvements
Over the life of the lease
Plant and equipment
Plant and machinery: 25% reducing balance, Small tool and equipment: 50% on cost per year, Formwork: 14.28% on cost per year, Cranes: 10% on cost per year, Skips: 25% reducing balance
Fixtures and fittings
25% reducing balance/over the life of the lease
Computer equipment
50% on cost per year
Motor vehicles
25% reducing balance

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is credited or charged to profit or loss in the income statement.

 

The assets' residual values and useful lives are reviewed, and adjusted, if appropriate, at the end of each reporting period. The effect of any change is accounted for prospectively.

1.6
Fixed asset investments

Equity investments are measured at fair value through profit or loss, except for those equity investments that are not publicly traded and whose fair value cannot otherwise be measured reliably, which are recognised at cost less impairment until a reliable measure of fair value becomes available.

 

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

KILNBRIDGE GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2023
1
Accounting policies
(Continued)
- 31 -

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

1.7
Impairment of fixed assets

At each reporting period end date, the group reviews the carrying amounts of its tangible and intangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.

 

The carrying amount of the investments accounted for using the equity method is tested for impairment as a single asset. Any goodwill included in the carrying amount of the investment is not tested separately for impairment.

Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.

 

If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.

Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.

1.8
Stocks

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

 

Cost of raw materials is determined on a first in first out basis.

At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.

KILNBRIDGE GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2023
1
Accounting policies
(Continued)
- 32 -
1.9
Construction contracts

Where the outcome of a construction contract can be estimated reliably, revenue and costs are recognised by reference to the stage of completion of the contract activity at the reporting end date. Variations in contract work, claims and incentive payments are included to the extent that the amount can be measured reliably and its receipt is considered probable.

 

When it is probable that total contract costs will exceed total contract turnover, the expected loss is recognised as an expense immediately.

 

Where the outcome of a construction contract cannot be estimated reliably, contract revenue is recognised to the extent of contract costs incurred where it is probable that they will be recoverable. Contract costs are recognised as expenses in the period in which they are incurred. When costs incurred in securing a contract are recognised as an expense in the period in which they are incurred, they are not included in contract costs if the contract is obtained in a subsequent period.

The “percentage of completion method” is used to determine the appropriate amount to recognise in a given period. The stage of completion is measured by the proportion of contract costs incurred for work performed to date compared to the estimated total contract costs. Costs incurred in the year in connection with future activity on a contract are excluded from contract costs in determining the stage of completion. These costs are presented as stocks, prepayments or other assets depending on their nature, and provided it is probable they will be recovered.

1.10
Cash at bank and in hand

Cash at bank and in hand are basic financial assets and include cash in hand and at bank.

1.11
Financial instruments

The group has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ of FRS 102 to all of its financial instruments.

 

Financial instruments are recognised in the group's statement of financial position when the group becomes party to the contractual provisions of the instrument.

 

Financial assets and liabilities are offset and the net amounts presented in the financial statements when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

Basic financial assets

Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.

KILNBRIDGE GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2023
1
Accounting policies
(Continued)
- 33 -
Impairment of financial assets

Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.

 

Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.

 

If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.

Derecognition of financial assets

Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the group transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.

Classification of financial liabilities

Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the group after deducting all of its liabilities.

Basic financial liabilities

Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future receipts discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

 

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

 

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

Derecognition of financial liabilities

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

1.12
Equity instruments

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

1.13
Taxation

The tax expense represents the sum of the tax currently payable and deferred tax.

KILNBRIDGE GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2023
1
Accounting policies
(Continued)
- 34 -
Current tax

The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the income statement because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The group’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.

Deferred tax

Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.

 

The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the income statement, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset if, and only if, there is a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.

1.14
Employee benefits

The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.

 

The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.

 

Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

1.15
Retirement benefits

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

1.16
Leases

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

 

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

1.17
Government grants

Government grants are recognised at the fair value of the asset received or receivable when there is reasonable assurance that the grant conditions will be met and the grants will be received.

 

A grant that specifies performance conditions is recognised in income when the performance conditions are met. Where a grant does not specify performance conditions it is recognised in income when the proceeds are received or receivable. A grant received before the recognition criteria are satisfied is recognised as a liability.

KILNBRIDGE GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2023
1
Accounting policies
(Continued)
- 35 -
1.18
Foreign exchange

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

1.19

Research and development

The group incurs expenditure on its research and development in order to solve problems in connection with the work for which it contracts or seeks to win. This includes solving technical problems, reducing risk and seeking to provide effective and efficient solutions to problems. Where higher tax relief is available, this is accounted for when quantified with a degree of confidence. This may be after the end of the financial year, which can result in prior year adjustments on tax.

2
Judgements and key sources of estimation uncertainty

In the application of the group’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

 

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

Key sources of estimation uncertainty

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

Construction contracts

The group recognises revenue and costs by reference to stage of completion of the contract.  When assessing the value of construction contracts, management considers factors including final projected contract value, predicated final costs to complete, their assessment whether its receipt is probable and their historical experience

 

Estimates of the final outcome on each contract may include cost contingencies to take account of specific risks within each contract.  Cost contingencies are reviewed on a regular basis throughout the life of the contract and are adjusted where appropriate.  However, the nature of the risks on projects are such that they often cannot be resolved until the end of the project and therefore may not reverse until the end of the project. The estimated final outcomes on projects are continuously reviewed and adjustments are made where necessary.

3
Turnover and other revenue

An analysis of the group's turnover is as follows:

2023
2022
£
£
Turnover analysed by class of business
Construction, civil engineering and related services
120,094,822
97,264,090
KILNBRIDGE GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2023
3
Turnover and other revenue
(Continued)
- 36 -
2023
2022
£
£
Other revenue
Interest income
229,176
18,605
Grants received
-
7,001

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

4
Operating profit
2023
2022
£
£
Operating profit for the year is stated after charging/(crediting):
Exchange losses/(gains)
44
(488)
Government grants
-
(7,001)
Depreciation of owned tangible fixed assets
2,577,068
2,511,842
Depreciation of tangible fixed assets held under finance leases
1,254,580
1,088,879
Profit on disposal of tangible fixed assets
(489,549)
(169,558)
5
Auditor's remuneration
2023
2022
Fees payable to the company's auditor and associates:
£
£
For audit services
Audit of the financial statements of the group and company
48,400
54,352
For other services
Taxation compliance services
-
4,125
6
Employees

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

Group
Company
2023
2022
2023
2022
Number
Number
Number
Number
Technical and Management
102
94
3
3
Site based
255
236
1
1
Total
357
330
4
4
KILNBRIDGE GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2023
6
Employees
(Continued)
- 37 -

Their aggregate remuneration comprised:

Group
Company
2023
2022
2023
2022
£
£
£
£
Wages and salaries
26,030,053
19,476,033
367,058
369,006
Social security costs
2,534,420
2,312,433
46,243
49,078
Pension costs
458,496
336,689
3,000
12,000
29,022,969
22,125,155
416,301
430,084
7
Directors' remuneration
2023
2022
£
£
Remuneration for qualifying services
1,432,500
637,688
Company pension contributions to defined contribution schemes
22,028
10,000
1,454,528
647,688
The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 1 (2022 - 1).
Remuneration disclosed above includes the following amounts paid to the highest paid director:
Remuneration for qualifying services
311,507
294,910
Company pension contributions to defined contribution schemes
1,321
10,000
8
Interest receivable and similar income
2023
2022
£
£
Interest income
Interest on bank deposits
229,126
17,507
Other interest income
50
1,098
Total income
229,176
18,605
2023
2022
Investment income includes the following:
£
£
Interest on financial assets not measured at fair value through profit or loss
229,126
17,507
KILNBRIDGE GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2023
- 38 -
9
Interest payable and similar expenses
2023
2022
£
£
Interest on financial liabilities measured at amortised cost:
Interest on bank overdrafts and loans
1,191
464
Other interest on financial liabilities
375
835
1,566
1,299
Other finance costs:
Interest on finance leases and hire purchase contracts
71,543
43,429
Other interest
5,223
-
Total finance costs
78,332
44,728
10
Taxation
2023
2022
£
£
Current tax
UK corporation tax on profits for the current period
1,002,947
520,958
Other tax reliefs
(3,157,737)
-
0
Total current tax
(2,154,790)
520,958
Deferred tax
Origination and reversal of timing differences
344,175
354,703
Total tax (credit)/charge
(1,810,615)
875,661
KILNBRIDGE GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2023
10
Taxation
(Continued)
- 39 -

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

2023
2022
£
£
Profit before taxation
6,434,652
3,999,904
Expected tax charge based on the standard rate of corporation tax in the UK of 20.50% (2022: 19.00%)
1,319,104
759,982
Tax effect of expenses that are not deductible in determining taxable profit
232,361
7,397
Permanent capital allowances in excess of depreciation
(539,682)
(572,302)
Depreciation on assets not qualifying for tax allowances
468,812
367,245
Research and development tax credit
(3,481,190)
-
0
Loss on disposal of tangible fixed assets
(100,391)
(32,216)
Lease asset deduction
2,321
-
0
Deferred tax
344,175
354,703
Other tax adjustments
(56,125)
(9,148)
Taxation (credit)/charge
(1,810,615)
875,661
11
Dividends
2023
2022
Recognised as distributions to equity holders:
£
£
Interim paid
6,000,000
2,240,000
KILNBRIDGE GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2023
- 40 -
12
Tangible fixed assets
Group
Leasehold improvements
Plant and equipment
Fixtures and fittings
Computer equipment
Motor vehicles
Total
£
£
£
£
£
£
Cost
At 1 July 2022
2,511,029
16,953,208
1,715,657
51,771
3,819,475
25,051,140
Additions
-
0
2,291,486
32,833
16,250
320,145
2,660,714
Disposals
-
0
(1,458,498)
-
0
-
0
(166,653)
(1,625,151)
At 30 June 2023
2,511,029
17,786,196
1,748,490
68,021
3,972,967
26,086,703
Depreciation and impairment
At 1 July 2022
2,044,688
12,361,819
1,512,023
47,002
2,254,686
18,220,218
Depreciation charged in the year
201,178
1,823,527
97,029
5,446
449,888
2,577,068
Eliminated in respect of disposals
-
0
(965,721)
-
0
-
0
(152,439)
(1,118,160)
At 30 June 2023
2,245,866
13,219,625
1,609,052
52,448
2,552,135
19,679,126
Carrying amount
At 30 June 2023
265,163
4,566,571
139,438
15,573
1,420,832
6,407,577
At 30 June 2022
466,341
4,591,389
203,634
4,769
1,564,789
6,830,922
Company
Plant and equipment
Fixtures and fittings
Motor vehicles
Total
£
£
£
£
Cost
At 1 July 2022
16,919,350
1,278,704
3,819,475
22,017,529
Additions
2,291,486
-
0
320,145
2,611,631
Disposals
(1,458,498)
-
0
(166,653)
(1,625,151)
At 30 June 2023
17,752,338
1,278,704
3,972,967
23,004,009
Depreciation and impairment
At 1 July 2022
12,332,204
1,207,801
2,254,686
15,794,691
Depreciation charged in the year
1,819,284
17,713
449,888
2,286,885
Eliminated in respect of disposals
(965,721)
-
0
(152,439)
(1,118,160)
At 30 June 2023
13,185,767
1,225,514
2,552,135
16,963,416
Carrying amount
At 30 June 2023
4,566,571
53,190
1,420,832
6,040,593
At 30 June 2022
4,587,146
70,903
1,564,789
6,222,838
KILNBRIDGE GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2023
12
Tangible fixed assets
(Continued)
- 41 -

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

Group
Company
2023
2022
2023
2022
£
£
£
£
Plant and equipment
1,399,625
2,273,254
1,399,625
2,273,254
Motor vehicles
1,148,854
1,121,855
1,148,854
1,121,855
2,548,479
3,395,109
2,548,479
3,395,109
13
Fixed asset investments
Group
Company
2023
2022
2023
2022
Notes
£
£
£
£
Investments in subsidiaries
14
-
0
-
0
5,000
5,000
Unlisted investments
49,400
49,400
49,400
49,400
49,400
49,400
54,400
54,400
Movements in fixed asset investments
Group
Investments
£
Cost or valuation
At 1 July 2022 and 30 June 2023
49,400
Carrying amount
At 30 June 2023
49,400
At 30 June 2022
49,400
Movements in fixed asset investments
Company
Shares in subsidiaries
Other investments
Total
£
£
£
Cost or valuation
At 1 July 2022 and 30 June 2023
5,000
49,400
54,400
Carrying amount
At 30 June 2023
5,000
49,400
54,400
At 30 June 2022
5,000
49,400
54,400
KILNBRIDGE GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2023
- 42 -
14
Subsidiaries

Details of the company's subsidiary at 30 June 2023 is as follows:

Name of undertaking
Registered
Nature of business
Class of
% Held
office
shares held
Direct
Indirect
Kilnbridge Construction Services Limited
McDermott House, Cody Road Business Park, South Crescent, London, E16 4TL
Construction services
Ordinary
100.00
-
15
Stocks
Group
Company
2023
2022
2023
2022
£
£
£
£
Raw materials and consumables
351,592
357,371
-
-
16
Debtors
Group
Company
2023
2022
2023
2022
Amounts falling due within one year:
£
£
£
£
Trade debtors
2,682,396
1,480,736
-
0
-
0
Gross amounts owed by contract customers
14,789,943
14,217,454
-
0
-
0
Corporation tax recoverable
2,625,965
144,058
28,453
144,058
Other debtors
1,749,370
1,697,030
252,903
252,017
Prepayments and accrued income
1,439,844
1,502,146
3,329
3,329
23,287,518
19,041,424
284,685
399,404
17
Creditors: amounts falling due within one year
Group
Company
2023
2022
2023
2022
Notes
£
£
£
£
Obligations under finance leases
19
1,166,531
629,462
1,166,531
629,462
Trade creditors
6,302,088
12,844,611
426,915
464,994
Amounts owed to group undertakings
4,176,252
658,980
7,395,363
8,977,200
Corporation tax payable
134,828
239,900
124,881
-
0
Other taxation and social security
1,057,387
740,746
204,556
38,693
Other creditors
225,775
2,517,432
25,375
2,285,613
Accruals and deferred income
11,546,338
7,230,053
55,014
54,539
24,609,199
24,861,184
9,398,635
12,450,501

The bank facilities are secured by a fixed and floating charge over the assets of the company and group by intercompany guarantees.

KILNBRIDGE GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2023
- 43 -
18
Creditors: amounts falling due after more than one year
Group
Company
2023
2022
2023
2022
Notes
£
£
£
£
Obligations under finance leases
19
1,331,418
1,037,879
1,331,418
1,037,879
19
Finance lease obligations
Group
Company
2023
2022
2023
2022
£
£
£
£
Future minimum lease payments due under finance leases:
Within one year
1,166,532
675,189
1,166,532
675,189
In two to five years
787,932
949,042
787,932
949,042
In over five years
543,485
126,090
543,485
126,090
2,497,949
1,750,321
2,497,949
1,750,321
Less: future finance charges
-
0
(82,980)
-
0
(82,980)
2,497,949
1,667,341
2,497,949
1,667,341

Finance lease payments represent rentals payable by the company or group for certain items of plant and machinery. Leases include purchase options at the end of the lease period, and no restrictions are placed on the use of the assets. The average lease term is 3 years. All leases are on a fixed repayment basis and no arrangements have been entered into for contingent rental payments.

20
Deferred taxation

Deferred tax assets and liabilities are offset where the group or company has a legally enforceable right to do so. The following is the analysis of the deferred tax balances (after offset) for financial reporting purposes:

Liabilities
Liabilities
2023
2022
Group
£
£
Accelerated capital allowances
372,996
383,524
Liabilities
Liabilities
2023
2022
Company
£
£
Accelerated capital allowances
344,175
354,703
KILNBRIDGE GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2023
20
Deferred taxation
(Continued)
- 44 -
Group
Company
2023
2023
Movements in the year:
£
£
Liability at 1 July 2022
383,524
354,703
Other
(10,528)
(10,528)
Liability at 30 June 2023
372,996
344,175
21
Retirement benefit schemes
2023
2022
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
458,496
336,689

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

22
Share capital
Group and company
2023
2022
2023
2022
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
10,000
10,000
10,000
10,000
23
Reserves
Other reserve

The other reserve was created on acquisition of Kilnbridge Construction Services Limited and represents the difference between the cost of investments and the net assets of the subsidiary on acquisition on 1 October 1996. The cost of acquisition was met by issuing 5,000 shares in Kilnbridge Group Limited in exchange for 5,000 shares in Kilnbridge Construction Services Limited.

Profit and loss reserve

Retained earnings represents accumulated comprehensive income for the year and prior periods less dividends paid.

24
Financial commitments, guarantees and contingent liabilities

The obligations under hire purchase agreements are secured on the related tangible fixed assets of the group.

 

As at 30 June 2023, the group had given guarantees under performance bonds taken out by a subsidiary company totalling £316,659 (2022: £829,147).

KILNBRIDGE GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2023
- 45 -
25
Operating lease commitments

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

Group
Company
2023
2022
2023
2022
£
£
£
£
Within one year
761,157
775,266
-
-
Between two and five years
1,394,345
2,626,379
-
-
In over five years
-
34,167
-
-
2,155,502
3,435,812
-
-
26
Related party transactions
Remuneration of key management personnel

The remuneration of key management personnel, who are also directors of the parent company and subsidiary companies, is as follows:

2023
2022
£
£
Aggregate compensation
1,685,692
1,682,668
Transactions with related parties

The Company and its subsidiaries occupy properties comprising its head office, manufacturing base and plant depot which are owned by the Directors Pension Fund at a current rental based on an independent professional valuation. A director and close family member are trustees and beneficiaries of that fund. Rent payments totalled £518,700 (2022: £520,492).

27
Directors' transactions

At the end of the year, there was a balance of £11,882 (2022: £2,251,883) owed to the directors.

28
Controlling party

The immediate parent undertaking and the largest group to consolidate these financial statements is NG Investments Limited. Copies of the NG Investments Limited consolidated financial statements can be obtained from its registered office, McDermott House, South Crescent, Cody Road Business Park, London, E16 4TL.

 

The ultimate controlling party is Kilnbridge Trustees Limited on behalf of the Kilnbridge Employee Ownership Trust.

KILNBRIDGE GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2023
- 46 -
29
Cash generated from group operations
2023
2022
£
£
Profit for the year after tax
8,245,267
3,124,243
Adjustments for:
Taxation (credited)/charged
(1,810,615)
875,661
Finance costs
78,332
44,728
Investment income
(229,176)
(18,605)
Gain on disposal of tangible fixed assets
(489,549)
(169,558)
Depreciation and impairment of tangible fixed assets
2,577,068
2,511,842
Movements in working capital:
Decrease/(increase) in stocks
5,779
(52,950)
Increase in debtors
(1,764,187)
(5,016,387)
(Decrease)/increase in creditors
(683,982)
4,539,136
Cash generated from operations
5,928,937
5,838,110
30
Cash generated from operations - company
2023
2022
£
£
Profit for the year after tax
8,098,901
1,607,166
Adjustments for:
Taxation charged
510,639
402,209
Finance costs
76,095
44,264
Investment income
(6,176,894)
(13,164)
Gain on disposal of tangible fixed assets
(489,549)
(169,558)
Depreciation and impairment of tangible fixed assets
2,286,885
1,932,869
Movements in working capital:
(Increase)/decrease in debtors
(886)
7,651
(Decrease)/increase in creditors
(3,713,816)
2,846,564
Cash generated from operations
591,375
6,658,001
31
Analysis of changes in net funds - group
1 July 2022
Cash flows
30 June 2023
£
£
£
Cash at bank and in hand
19,274,544
(1,540,677)
17,733,867
Obligations under finance leases
(1,667,341)
(830,608)
(2,497,949)
17,607,203
(2,371,285)
15,235,918
KILNBRIDGE GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2023
- 47 -
32
Analysis of changes in net funds - company
1 July 2022
Cash flows
30 June 2023
£
£
£
Cash at bank and in hand
10,752,233
(372,990)
10,379,243
Obligations under finance leases
(1,667,341)
(830,608)
(2,497,949)
9,084,892
(1,203,598)
7,881,294
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