Company registration number 00781553 (England and Wales)
KIMPTON LTD
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2023
KIMPTON LTD
COMPANY INFORMATION
Directors
Mr R L Kimpton
Mr R Tierney
Mr C Swanick
Secretaries
Mr D Kimpton
Mrs L Kelly
Company number
00781553
Registered office
Unit 5
Hawkshead Road
Greenfields Technology Park, Bromborough
Wirral
Merseyside
CH62 3RJ
Auditor
Mitchell Charlesworth (Audit) Limited
24 Nicholas Street
Chester
CH1 2AU
KIMPTON LTD
CONTENTS
Page
Strategic report
1 - 2
Directors' report
3 - 4
Independent auditor's report
5 - 8
Statement of comprehensive income
9
Balance sheet
10
Statement of changes in equity
11
Statement of cash flows
12
Notes to the financial statements
13 - 26
KIMPTON LTD
STRATEGIC REPORT
FOR THE YEAR ENDED 30 SEPTEMBER 2023
- 1 -
The directors present the strategic report for the year ended 30 September 2023.
Review of the business
The principal activities of the company remain as the design installation and maintenance of Mechanical Building Services, as well as the design and construction of Acoustic Enclosures/Screens.
Due to an increase in the number of projects the company is involved with turnover has increased significantly from the prior year.
This year the businesses renewable capabilities were tested with major BTR schemes now being served by heat pumps, wholesale replacement of conventional boiler plant with air source heat pumps and PV installations of significant proportions.
An excellent geographic spread was achieved without undue impact on profitability.
The service and maintenance offering has been enhanced and is now confidently offering a full FM service to some of the most prestigious facilities in the region.
Principal risks and uncertainties
Accessing skilled labour remains an issue. Rather than rely on external agents we have strengthened our recruitment and training regimes in readiness for future years.
Volatility in prices of certain materials such copper tube and sheet steel has affected the nett profitability of several schemes. Offerings for major schemes are now caveated wherever possible to avoid further unnecessary losses.
Development and performance
Departmental Sales pipeline indicators are strong for the coming year/s. Every effort will be made to ensure the growth achieved is sustained. Strategic sales activities will continue to identify suitable new customers.
We will continue to improve on our renewable energy services offering and look to attract and retain team members that appreciate the company’s purpose and shared values.
Key performance indicators
Historically, Turnover, Gross Profit and Net Profitability before tax have been simple key performance indicators. We recently added Staff Engagement and Health and Safety to our considerations. Enterprise managers are now incentivised by overall group performance ahead of any individual departmental successes.
Other information and explanations
Future developments
Continue to implement strategies in both technology and training in order to improve performance. Monitor costs and servicing in order to improve profitability.
Research and development activities
Research and development activities are carried out by the company.
KIMPTON LTD
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2023
- 2 -
Mr R L Kimpton
Director
18 April 2024
KIMPTON LTD
DIRECTORS' REPORT
FOR THE YEAR ENDED 30 SEPTEMBER 2023
- 3 -
The directors present their annual report and financial statements for the year ended 30 September 2023.
Results and dividends
The results for the year are set out on page 9.
Ordinary dividends were paid amounting to £198,054. The directors do not recommend payment of a final dividend.
Directors
The directors who held office during the year and up to the date of signature of the financial statements were as follows:
Mr D A Kimpton
(Resigned 7 September 2023)
Mr R L Kimpton
Mr R Tierney
Mr C Swanick
Auditor
The auditor, Mitchell Charlesworth (Audit) Limited, is deemed to be reappointed under section 487(2) of the Companies Act 2006.
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 company and of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to:
select suitable accounting policies and then apply them consistently;
make judgements and accounting estimates that are reasonable and prudent;
prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.
The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company’s transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
KIMPTON LTD
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2023
- 4 -
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 company’s auditor 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 company’s auditor is aware of that information.
On behalf of the board
Mr R L Kimpton
Director
18 April 2024
KIMPTON LTD
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF KIMPTON LTD
- 5 -
Opinion
We have audited the financial statements of Kimpton Ltd (the 'company') for the year ended 30 September 2023 which comprise the statement of comprehensive income, the balance sheet, the statement of changes in equity, the statement of cash flows and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).
In our opinion the financial statements:
give a true and fair view of the state of the company's affairs as at 30 September 2023 and of its profit for the year then ended;
have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
have been prepared in accordance with the requirements of the Companies Act 2006.
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 company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.
Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.
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:
the information given in the strategic report and the directors' report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
the strategic report and the directors' report have been prepared in accordance with applicable legal requirements.
KIMPTON LTD
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF KIMPTON LTD
- 6 -
Matters on which we are required to report by exception
In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the 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:
adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
the financial statements are not in agreement with the accounting records and returns; or
certain disclosures of remuneration specified by law are not made; or
we have not received all the information and explanations we require for our audit.
Responsibilities of directors
As explained more fully in the 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 company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.
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.
KIMPTON LTD
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF KIMPTON LTD
- 7 -
Extent to which the audit was considered capable of detecting irregularities, including fraud
We identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and then design and perform audit procedures responsive to those risks, including obtaining audit evidence that is sufficient and appropriate to provide a basis for our opinion.
Identifying and assessing potential risks related to irregularities
In identifying and assessing risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, we considered the following:
As a result of these procedures, we considered the opportunities and incentives that may exist within the organisation for fraud and identified the greatest potential for fraud in the following areas:
(i) The presentation of the company's Statement of Comprehensive Income and (ii) the company's accounting policy for revenue recognition. In common with all audits under ISAs (UK), we are also required to perform specific procedures to respond to the risk of management override.
We also obtained an understanding of the legal and regulatory framework that the company operates in, focusing on provisions of those laws and regulations that had a direct effect on the determination of material amounts and disclosures in the financial statements. The key laws and regulations we considered in this context included the UK Companies Act, and GDPR legislation.
In addition, we considered provisions of other laws and regulations that do not have a direct effect on the financial statements but compliance with which may be fundamental to the company's ability to operate or to avoid a material penalty. This includes regulations concerning Data Protection.
KIMPTON LTD
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF KIMPTON LTD
- 8 -
Audit response to risks identified
As a result of performing the above, we identified revenue recognition as the key audit matters related to the potential risk of fraud.
Our procedures to respond to risks identified included the following:
in addressing the risk of fraud through management override of controls, testing the appropriateness of journal entries and other adjustments; assessing whether the judgements made in making accounting estimates are indicative of a potential bias; and evaluating the business rationale of any significant transactions that are unusual or outside the normal course of business.
We also communicated relevant identified laws and regulations and potential fraud risks to all engagement team members and remained alert to any indications of fraud or non-compliance with laws and regulations throughout the audit.
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.
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.
Robert Hall
Senior Statutory Auditor
For and on behalf of Mitchell Charlesworth (Audit) Limited
18 April 2024
Accountants
Statutory Auditor
24 Nicholas Street
Chester
CH1 2AU
KIMPTON LTD
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 30 SEPTEMBER 2023
- 9 -
2023
2022
Notes
£
£
Turnover
3
25,752,573
14,625,240
Cost of sales
(20,581,186)
(11,408,491)
Gross profit
5,171,387
3,216,749
Distribution costs
(392,815)
(302,238)
Administrative expenses
(2,964,744)
(2,162,683)
Profit before taxation
1,813,828
751,828
Tax on profit
7
(358,527)
(45,151)
Profit for the financial year
1,455,301
706,677
Other comprehensive income
Revaluation of tangible fixed assets
74,870
Total comprehensive income for the year
1,455,301
781,547
The profit and loss account has been prepared on the basis that all operations are continuing operations.
KIMPTON LTD
BALANCE SHEET
AS AT
30 SEPTEMBER 2023
30 September 2023
- 10 -
2023
2022
Notes
£
£
£
£
Fixed assets
Tangible assets
9
851,289
723,104
Investments
10
1,000
851,289
724,104
Current assets
Stocks
11
109,264
98,640
Debtors
12
7,903,891
5,076,311
Cash at bank and in hand
1,755,843
659,838
9,768,998
5,834,789
Creditors: amounts falling due within one year
13
(6,104,115)
(3,320,438)
Net current assets
3,664,883
2,514,351
Total assets less current liabilities
4,516,172
3,238,455
Creditors: amounts falling due after more than one year
14
(53,656)
(59,571)
Provisions for liabilities
Deferred tax liability
16
85,573
59,188
(85,573)
(59,188)
Net assets
4,376,943
3,119,696
Capital and reserves
Called up share capital
18
353
353
Revaluation reserve
74,870
74,870
Capital redemption reserve
100
100
Own shares
15,700
15,700
Profit and loss reserves
4,285,920
3,028,673
Total equity
4,376,943
3,119,696
These financial statements have been prepared in accordance with the provisions relating to medium-sized companies.true
The financial statements were approved by the board of directors and authorised for issue on 18 April 2024 and are signed on its behalf by:
Mr R L Kimpton
Director
Company registration number 00781553 (England and Wales)
KIMPTON LTD
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 SEPTEMBER 2023
- 11 -
Share capital
Revaluation reserve
Capital redemption reserve
Own shares
Profit and loss reserves
Total
Notes
£
£
£
£
£
£
Balance at 1 October 2021
353
100
15,700
2,659,296
2,675,449
Year ended 30 September 2022:
Profit
-
-
-
-
706,677
706,677
Other comprehensive income:
Revaluation of tangible fixed assets
-
74,870
-
-
-
74,870
Total comprehensive income
-
74,870
-
-
706,677
781,547
Dividends
8
-
-
-
-
(337,300)
(337,300)
Balance at 30 September 2022
353
74,870
100
15,700
3,028,673
3,119,696
Year ended 30 September 2023:
Profit and total comprehensive income
-
-
-
-
1,455,301
1,455,301
Dividends
8
-
-
-
-
(198,054)
(198,054)
Balance at 30 September 2023
353
74,870
100
15,700
4,285,920
4,376,943
KIMPTON LTD
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 30 SEPTEMBER 2023
- 12 -
2023
2022
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
21
1,588,565
797,190
Income taxes (paid)/refunded
(21,506)
35,543
Net cash inflow from operating activities
1,567,059
832,733
Investing activities
Purchase of tangible fixed assets
(184,157)
(185,501)
Proceeds from disposal of tangible fixed assets
4,411
15,900
Proceeds from disposal of investments
1,000
Repayment of loans
(85,201)
49,941
Net cash used in investing activities
(263,947)
(119,660)
Financing activities
Payment of finance leases obligations
(9,053)
72,585
Dividends paid
(198,054)
(337,300)
Net cash used in financing activities
(207,107)
(264,715)
Net increase in cash and cash equivalents
1,096,005
448,358
Cash and cash equivalents at beginning of year
659,838
211,480
Cash and cash equivalents at end of year
1,755,843
659,838
KIMPTON LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2023
- 13 -
1
Accounting policies
Company information
Kimpton Ltd is a private company limited by shares incorporated in England and Wales. The registered office is Unit 5, Hawkshead Road, Greenfields Technology Park, Bromborough, Wirral, Merseyside, CH62 3RJ.
1.1
Accounting convention
These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.
The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.
The financial statements have been prepared under the historical cost convention, modified to include the revaluation of freehold properties and to include investment properties and certain financial instruments at fair value. The principal accounting policies adopted are set out below.
1.2
Going concern
Atruet the time of approving the financial statements, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.
1.3
Turnover
Turnover represents amounts receivable for goods and services net of VAT and trade discounts.
In respect of long-term contracts and contracts for on-going services, turnover represents the value of work done in the year, including estimates of amounts not invoiced. Turnover in respect of long-term contracts and contracts for on-going services is recognised by reference to the stage of completion.
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.
1.4
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.
KIMPTON LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2023
1
Accounting policies
(Continued)
- 14 -
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:
Land and buildings Leasehold
Nil
Leasehold improvements
4% straight line
Fixtures, fittings & equipment
20% reducing balance
Motor vehicles
25% reducing balance
The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is credited or charged to profit or loss.
1.5
Fixed asset investments
Interests in subsidiaries, associates and jointly controlled entities are initially measured at cost and subsequently measured at cost less any accumulated impairment losses. The investments are assessed for impairment at each reporting date and any impairment losses or reversals of impairment losses are recognised immediately in profit or loss.
A subsidiary is an entity controlled by the company. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.
An associate is an entity, being neither a subsidiary nor a joint venture, in which the company holds a long-term interest and where the company has significant influence. The company considers that it has significant influence where it has the power to participate in the financial and operating decisions of the associate.
Entities in which the company has a long term interest and shares control under a contractual arrangement are classified as jointly controlled entities.
1.6
Impairment of fixed assets
At each reporting period end date, the company reviews the carrying amounts of its tangible 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.
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.
KIMPTON LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2023
1
Accounting policies
(Continued)
- 15 -
1.7
Stocks
Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition.
Stocks held for distribution at no or nominal consideration are measured at the lower of cost and replacement cost, adjusted where applicable for any loss of service potential.
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.
1.8
Cash and cash equivalents
Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.
1.9
Financial instruments
The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the company's balance sheet when the company becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset, with 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.
Other financial assets
Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.
KIMPTON LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2023
1
Accounting policies
(Continued)
- 16 -
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 company 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 company 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 payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.
Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.
Other financial liabilities
Derivatives, including interest rate swaps and forward foreign exchange contracts, are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in profit or loss in finance costs or finance income as appropriate, unless hedge accounting is applied and the hedge is a cash flow hedge.
Debt instruments that do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured at fair value through profit or loss. Debt instruments may be designated as being measured at fair value through profit or loss to eliminate or reduce an accounting mismatch or if the instruments are measured and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy.
Derecognition of financial liabilities
Financial liabilities are derecognised when the company’s contractual obligations expire or are discharged or cancelled.
KIMPTON LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2023
1
Accounting policies
(Continued)
- 17 -
1.10
Equity instruments
Equity instruments issued by the company 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 company.
1.11
Derivatives
Derivatives are initially recognised at fair value at the date a derivative contract is entered into and are subsequently remeasured to fair value at each reporting end date. The resulting gain or loss is recognised in profit or loss immediately unless the derivative is designated and effective as a hedging instrument, in which event the timing of the recognition in profit or loss depends on the nature of the hedge relationship.
A derivative with a positive fair value is recognised as a financial asset, whereas a derivative with a negative fair value is recognised as a financial liability.
1.12
Taxation
The tax expense represents the sum of the tax currently payable and deferred tax.
Current tax
The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.
Deferred tax
Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.
The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset when the company has a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.
1.13
Employee benefits
The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.
The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.
Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.
1.14
Retirement benefits
The company operates defined contribution pension schemes for employees. The assets of the schemes are held separately from those of the company. The annual contributions payable are charged to the profit and loss account.
KIMPTON LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2023
1
Accounting policies
(Continued)
- 18 -
1.15
Leases
Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessees. All other leases are classified as operating leases.
Assets held under finance leases are recognised as assets at the lower of the assets fair value at the date of inception and the present value of the minimum lease payments. The related liability is included in the balance sheet as a finance lease obligation. Lease payments are treated as consisting of capital and interest elements. The interest is charged to profit or loss so as to produce a constant periodic rate of interest on the remaining balance of the liability.
1.16
Foreign exchange
Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation in the period are included in profit or loss.
2
Judgements and key sources of estimation uncertainty
In the application of the company’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.
3
Turnover
2023
2022
£
£
Turnover analysed by class of business
Services
25,752,573
14,625,240
4
Operating profit
2023
2022
Operating profit for the year is stated after charging/(crediting):
£
£
Fees payable to the company's auditor for the audit of the company's financial statements
8,000
8,000
Depreciation of owned tangible fixed assets
52,676
34,464
Profit on disposal of tangible fixed assets
(1,115)
(4,567)
KIMPTON LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2023
- 19 -
5
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2023
2022
Number
Number
Air conditioning
-
5
Acoustic
-
3
Maintenance
18
17
Contract
55
39
Other
10
9
Total
83
73
Their aggregate remuneration comprised:
2023
2022
£
£
Wages and salaries
4,331,238
3,056,075
Social security costs
384,801
311,084
Pension costs
178,819
164,435
4,894,858
3,531,594
6
Directors' remuneration
2023
2022
£
£
Remuneration for qualifying services
81,386
79,440
Company pension contributions to defined contribution schemes
25,169
23,200
106,555
102,640
The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 3 (2022: 4).
7
Taxation
2023
2022
£
£
Current tax
UK corporation tax on profits for the current period
332,142
21,506
Adjustments in respect of prior periods
(27,218)
Total current tax
332,142
(5,712)
KIMPTON LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2023
7
Taxation
2023
2022
£
£
(Continued)
- 20 -
Deferred tax
Origination and reversal of timing differences
26,385
50,863
Total tax charge
358,527
45,151
The actual 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
1,813,828
751,828
Expected tax charge based on the standard rate of corporation tax in the UK of 22.01% (2022: 19.00%)
399,224
142,847
Tax effect of expenses that are not deductible in determining taxable profit
4,393
1,217
Gains not taxable
6,040
Adjustments in respect of prior years
(27,218)
Effect of change in corporation tax rate
2,866
Research and development tax credit
(47,802)
(91,503)
Other permanent differences
(437)
Deferred tax adjustments in respect of prior years
14,205
Fixed asset timing difference
(154)
Taxation charge for the year
358,527
45,151
8
Dividends
2023
2022
£
£
Interim paid
198,054
337,300
KIMPTON LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2023
- 21 -
9
Tangible fixed assets
Land and buildings Leasehold
Leasehold improvements
Fixtures, fittings & equipment
Motor vehicles
Total
£
£
£
£
£
Cost or valuation
At 1 October 2022
440,000
380,649
284,760
1,105,409
Additions
31,154
92,298
60,705
184,157
Disposals
(26,790)
(26,790)
At 30 September 2023
440,000
31,154
472,947
318,675
1,262,776
Depreciation and impairment
At 1 October 2022
316,445
65,860
382,305
Depreciation charged in the year
104
8,769
43,803
52,676
Eliminated in respect of disposals
(23,494)
(23,494)
At 30 September 2023
104
325,214
86,169
411,487
Carrying amount
At 30 September 2023
440,000
31,050
147,733
232,506
851,289
At 30 September 2022
440,000
64,204
218,900
723,104
The NBV of fixed assets held under finance leases is £60,761 (2022: £75,443).
Land and buildings with a carrying amount of £440,000 were revalued at 17 June 2021 by Smith and Sons Property Consultants, independent valuers not connected with the company on the basis of market value. The valuation conforms to International Valuation Standards. The directors believe that the value of the property at the year end is not significantly different from this valuation.
Land and buildings are carried at valuation. If land and buildings were measured using the cost model, the carrying amounts would have been £356,805.
Land and Buildings Leasehold
2023
2022
£
£
Cost
356,805
356,805
KIMPTON LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2023
- 22 -
10
Fixed asset investments
2023
2022
£
£
Unlisted investments
1,000
The company had an investment at the balance sheet date in the share capital of TKR (Services) Limited, a company that was dissolved on 8 August 2023. This company was registered in England and Wales. The Registered office of the company was Hastings House, 79/83 Station Road, Ellesmere Port, Wirral, CH65 4BN. The company owned 33.3% of the issued share capital in TKR (Services) Limited. The shares were fully paid and are held at £1 each.
The latest available accounts for TKR (Services) Limited made up to 30 September 2021 showed a loss for the year of £1,138 (2020 - loss of £1,134) and shareholders' funds of £25,012 (2021 - £26,150).
TKR (Services) Limited was operated as a joint venture with no party having overall control.
Movements in fixed asset investments
Investments
£
Cost or valuation
At 1 October 2022
1,000
Write off
(1,000)
At 30 September 2023
-
Carrying amount
At 30 September 2023
-
At 30 September 2022
1,000
11
Stocks
2023
2022
£
£
Raw materials and consumables
109,264
98,640
12
Debtors
2023
2022
Amounts falling due within one year:
£
£
Trade debtors
5,904,538
3,504,830
Other debtors
1,969,797
1,494,871
Prepayments and accrued income
29,556
76,610
7,903,891
5,076,311
KIMPTON LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2023
12
Debtors
(Continued)
- 23 -
Included in other debtors above are the overdrawn directors' loan accounts of £731,718 (2022 - £646,517). During the year £283,255 was advanced to the directors and £198,054 was repaid by the directors.
13
Creditors: amounts falling due within one year
2023
2022
Notes
£
£
Obligations under finance leases
15
9,876
13,014
Trade creditors
3,416,154
2,641,040
Corporation tax
332,142
21,506
Other taxation and social security
254,084
263,002
Other creditors
71,835
99,360
Accruals and deferred income
2,020,024
282,516
6,104,115
3,320,438
14
Creditors: amounts falling due after more than one year
2023
2022
Notes
£
£
Obligations under finance leases
15
53,656
59,571
15
Finance lease obligations
2023
2022
Future minimum lease payments due under finance leases:
£
£
Within one year
9,876
13,014
In two to five years
53,656
59,571
63,532
72,585
Finance lease payments represent rentals payable by the company 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 4 years. All leases are on a fixed repayment basis and no arrangements have been entered into for contingent rental payments.
KIMPTON LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2023
- 24 -
16
Deferred taxation
Deferred tax assets and liabilities are offset where the 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
Balances:
£
£
Accelerated capital allowances
81,144
50,568
Revaluations
8,325
8,325
Short term timing differences
(3,896)
295
85,573
59,188
2023
Movements in the year:
£
Liability at 1 October 2022
59,188
Charge to profit or loss
26,385
Liability at 30 September 2023
85,573
The deferred tax liability set out above relates to accelerated capital allowances and is expected to reverse within the same period that these allowances are expected to mature.
17
Retirement benefit schemes
2023
2022
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
178,819
164,435
The company operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the company in an independently administered fund.
18
Share capital
2023
2022
2023
2022
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary A shares of 0.1p each
291,000
291,000
291
291
Ordinary C shares of 0.1p each
9,000
9,000
9
9
Ordinary D shares of 0.1p each
26,000
26,000
26
26
Ordinary E shares of 0.1p each
18,000
18,000
18
18
Ordinary F shares of 0.1p each
9,000
9,000
9
9
353,000
353,000
353
353
KIMPTON LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2023
18
Share capital
(Continued)
- 25 -
Each class of share ranks pari passu and hold full voting rights and rights to dividends.
19
Operating lease commitments
At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:
2023
2022
£
£
Within one year
5,862
3,120
Between two and five years
6,183
1,560
12,045
4,680
20
Directors' transactions
Advances or credits have been granted by the company to its directors as follows:
Dividends totalling £198,054 (2022 - £337,300) were paid in the year in respect of shares held by the company's directors.
The advances above have been included within current assets (other debtors) as the amounts due from directors are repayable on demand (see note 12)
21
Cash generated from operations
2023
2022
£
£
Profit for the year after tax
1,455,301
706,677
Adjustments for:
Taxation charged
358,527
36,825
Gain on disposal of tangible fixed assets
(1,115)
(4,567)
Depreciation and impairment of tangible fixed assets
52,676
34,465
Movements in working capital:
(Increase)/decrease in stocks
(10,624)
14,660
Increase in debtors
(2,742,379)
(814,214)
Increase in creditors
2,476,179
823,344
Cash generated from operations
1,588,565
797,190
KIMPTON LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2023
- 26 -
22
Analysis of changes in net funds
1 October 2022
Cash flows
30 September 2023
£
£
£
Cash at bank and in hand
659,838
1,096,005
1,755,843
Obligations under finance leases
(72,585)
9,053
(63,532)
587,253
1,105,058
1,692,311
2023-09-302022-10-01falseCCH SoftwareCCH Accounts Production 2023.200No description of principal activityMr R L KimptonMr R TierneyMr C SwanickMr C SwanickMr D Kimpton1455301007815532022-10-012023-09-3000781553bus:Director12022-10-012023-09-3000781553bus:Director22022-10-012023-09-3000781553bus:Director32022-10-012023-09-3000781553bus:CompanySecretary12022-10-012023-09-3000781553bus:CompanySecretaryDirector12022-10-012023-09-3000781553bus:Director42022-10-012023-09-3000781553bus:RegisteredOffice2022-10-012023-09-30007815532023-09-30007815532021-10-012022-09-3000781553core:RetainedEarningsAccumulatedLosses2021-10-012022-09-3000781553core:RetainedEarningsAccumulatedLosses2022-10-012023-09-3000781553core:RevaluationReserve2022-10-012023-09-30007815532022-09-3000781553core:LandBuildingscore:LeasedAssetsHeldAsLessee2023-09-3000781553core:LeaseholdImprovements2023-09-3000781553core:FurnitureFittings2023-09-3000781553core:MotorVehicles2023-09-3000781553core:LandBuildingscore:LeasedAssetsHeldAsLessee2022-09-3000781553core:LeaseholdImprovements2022-09-3000781553core:FurnitureFittings2022-09-3000781553core:MotorVehicles2022-09-3000781553core:CurrentFinancialInstrumentscore:WithinOneYear2023-09-3000781553core:CurrentFinancialInstrumentscore:WithinOneYear2022-09-3000781553core:Non-currentFinancialInstrumentscore:AfterOneYear2023-09-3000781553core:Non-currentFinancialInstrumentscore:AfterOneYear2022-09-3000781553core:CurrentFinancialInstruments2023-09-3000781553core:CurrentFinancialInstruments2022-09-3000781553core:ShareCapital2023-09-3000781553core:ShareCapital2022-09-3000781553core:RevaluationReserve2023-09-3000781553core:RevaluationReserve2022-09-3000781553core:CapitalRedemptionReserve2023-09-3000781553core:CapitalRedemptionReserve2022-09-3000781553core:OtherMiscellaneousReserve2023-09-3000781553core:OtherMiscellaneousReserve2022-09-3000781553core:RetainedEarningsAccumulatedLosses2023-09-3000781553core:RetainedEarningsAccumulatedLosses2022-09-3000781553core:ShareCapital2021-09-3000781553core:RevaluationReserve2021-09-3000781553core:CapitalRedemptionReserve2021-09-3000781553core:TreasurySharesOwnSharesReserve2021-09-3000781553core:RetainedEarningsAccumulatedLosses2021-09-3000781553core:TreasurySharesOwnSharesReserve2022-09-3000781553core:TreasurySharesOwnSharesReserve2023-09-3000781553core:ShareCapitalOrdinaryShares2023-09-3000781553core:ShareCapitalOrdinaryShares2022-09-30007815532022-09-30007815532021-09-3000781553core:LandBuildingscore:LongLeaseholdAssets2022-10-012023-09-3000781553core:LeaseholdImprovements2022-10-012023-09-3000781553core:FurnitureFittings2022-10-012023-09-3000781553core:MotorVehicles2022-10-012023-09-3000781553core:UKTax2022-10-012023-09-3000781553core:UKTax2021-10-012022-09-300078155312022-10-012023-09-300078155312021-10-012022-09-300078155322022-10-012023-09-300078155322021-10-012022-09-300078155332022-10-012023-09-300078155332021-10-012022-09-3000781553core:LandBuildingscore:LeasedAssetsHeldAsLessee2022-09-3000781553core:LeaseholdImprovements2022-09-3000781553core:FurnitureFittings2022-09-3000781553core:MotorVehicles2022-09-3000781553core:LandBuildingscore:LeasedAssetsHeldAsLessee2022-10-012023-09-3000781553core:Non-currentFinancialInstrumentscore:UnlistedNon-exchangeTraded2023-09-3000781553core:Non-currentFinancialInstrumentscore:UnlistedNon-exchangeTraded2022-09-3000781553core:Non-currentFinancialInstruments2023-09-3000781553core:Non-currentFinancialInstruments2022-09-3000781553core:WithinOneYear2023-09-3000781553core:WithinOneYear2022-09-3000781553core:BetweenTwoFiveYears2023-09-3000781553core:BetweenTwoFiveYears2022-09-3000781553bus:PrivateLimitedCompanyLtd2022-10-012023-09-3000781553bus:FRS1022022-10-012023-09-3000781553bus:Audited2022-10-012023-09-3000781553bus:FullAccounts2022-10-012023-09-30xbrli:purexbrli:sharesiso4217:GBP