Company registration number 12256614 (England and Wales)
KATMAX UK HOLDINGS LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
KATMAX UK HOLDINGS LIMITED
COMPANY INFORMATION
Directors
Mr K H Brackhaus
Mrs S Brackhaus
Mr E West
Company number
12256614
Registered office
Unit 2
Greenways Business Park
Bellinger Close
CHIPPENHAM
Wiltshire
SN15 1BN
Auditor
Old Mill Audit Limited
Unit 2
Greenways Business Park
Bellinger Close
CHIPPENHAM
Wiltshire
England
SN15 1BN
KATMAX UK HOLDINGS LIMITED
CONTENTS
Page
Strategic report
1
Directors' report
2 - 3
Directors' responsibilities statement
4
Independent auditor's report
5 - 7
Profit and loss account
8
Group statement of comprehensive income
10
Group balance sheet
11
Company balance sheet
12
Group statement of changes in equity
13
Company statement of changes in equity
14
Group statement of cash flows
15
Notes to the financial statements
16 - 38
KATMAX UK HOLDINGS LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 1 -

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

Review of the business

Katmax UK Holdings Limited owns Natural Instinct Limited, which is the trading entity of the group.

 

This review presents a balanced and comprehensive review of the development and performance of the group during the financial year ended 31 December 2023, and of its financial position at the year end. The review is consistent with the size and non-complex nature of the business.

The trading entity is a UK manufacturer and retailer of frozen raw pet food and complimentary natural treats for the UK dog and cat market.

During the year a number of challenges presented themselves, including increases to energy prices as seen globally, and the cost of living crisis impacting consumer spending. However, despite the challenges faced, the group maintained a gross profit of £5.46m.

The resulting pre-tax profits of £0.94m (2022: £0.69) have since, in part, been invested into developing a new website and other capital expenditure to improve business operations. The groups key objectives continue to be:

The Directors have reviewed the risks to which the Group is exposed to as a result of the current economic climate, labour market and industry market. They are satisfied that both the systems in place and those that are being introduced appropriately monitor and control these risks to mitigate any impact they may have on the group.

Principal risks and uncertainties

The principal risks and uncertainties facing the Group include the following:

 

The Directors recognise the risks and vulnerabilities in regard to future trading and are taking steps to mitigate these where possible including focus on quality control, wider sourcing of materials and automation.

Key performance indicators

The Directors consider that the key financial performance indicators are turnover and gross profit which allows the monitoring of growth and the profitability of product lines which, in turn, communicates the financial performance and strength of Natural Instinct Limited.

On behalf of the board

Mr K H Brackhaus
Director
24 May 2024
KATMAX UK HOLDINGS LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 2 -

The directors present their annual report and financial statements for the year ended 31 December 2023.

Principal activities

The principal activity of the company is to be a holding entity for its subsidiaries. The principal activity of the group is to be a natural raw dog and cat food manufacture and retailer.

Results and dividends

The results for the year are set out on page 8.

Ordinary dividends were paid amounting to £500,000.

 

The directors recommend the payment of post year end dividends of £250,000 in March 2024 and £100,000 in June 2024.

Directors

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

Mr K H Brackhaus
Mrs S Brackhaus
Mr E West
Qualifying third party indemnity provisions

The group has made qualifying third party indemnity provisions for the benefit of its directors during the year. These provisions remain in force at the reporting date.

Financial instruments
Liquidity risk

The group manages its cash and borrowing requirements in order to maximise interest income and minimise interest expense, whilst ensuring the group has sufficient liquid resources to meet the operating needs of the business.

Credit risk

All customers who wish to trade on credit terms are subject to credit verification procedures. Trade debtors are monitored on an ongoing basis and provision is made for doubtful debts where necessary.

Research and development

The Group is committed to finding efficient and sustainable manufacturing methods and raw materials, as well as bringing new products to customers.

Future developments

Following a strong performance in 2023, the Group aims to continue to provide quality products and outstanding customer service to our existing customers. The Group also aims to continue to reach new customers, and to add new products to the current range that match the Groups ethos.

Auditor

In accordance with the company's articles, a resolution proposing that Old Mill Audit Limited be reappointed as auditor of the group will be put at a General Meeting.

Statement of disclosure to auditor

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

KATMAX UK HOLDINGS LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 3 -
On behalf of the board
Mr K H Brackhaus
Director
24 May 2024
KATMAX UK HOLDINGS LIMITED
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 4 -

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.

KATMAX UK HOLDINGS LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF KATMAX UK HOLDINGS LIMITED
- 5 -
Opinion

We have audited the financial statements of Katmax UK Holdings Ltd (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 December 2023 which comprise the group profit and loss account, the group statement of comprehensive income, the group balance sheet, the company balance sheet, the group statement of changes in equity, the company statement of changes in equity, the group statement of cash flows and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

Basis for opinion

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

Conclusions relating to going concern

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

 

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

 

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

Other information

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

 

We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

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

KATMAX UK HOLDINGS LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF KATMAX UK HOLDINGS LIMITED
- 6 -
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.

The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.

We gained an understanding of the legal and regulatory framework applicable to the company and the industry in which it operates, and considered the risk of acts by the company that were contrary to applicable laws and regulations, including fraud. We designed audit procedures to respond to the risk, recognising that the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentations, or through collusion.

We focussed on laws and regulations which could give rise to a material misstatement in the financial statements, including, but not limited to, the Companies Act 2006 and UK tax legislation. Our tests included agreeing the financial statement disclosures to underlying supporting documentation and enquiries with management. There are inherent limitations in the audit procedures described above and, the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we would become aware of it. We did not identify any key audit matters relating to irregularities, including fraud. As in all our audits, we also addressed the risk of management override of internal controls, including testing journals and evaluating whether there was evidence of bias by the directors that represented a risk of material misstatement due to fraud.

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.

KATMAX UK HOLDINGS LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF KATMAX UK HOLDINGS LIMITED
- 7 -

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.

Tim Lerwill BSc BFP FCA (Senior Statutory Auditor)
For and on behalf of Old Mill Audit Limited
29 May 2024
Statutory Auditor
Unit 2
Greenways Business Park
Bellinger Close
CHIPPENHAM
Wiltshire
England
SN15 1BN
KATMAX UK HOLDINGS LIMITED
GROUP PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 8 -
2023
2022
Notes
£
£
Turnover
3
11,975,709
11,007,106
Cost of sales
(6,517,999)
(6,019,322)
Gross profit
5,457,710
4,987,784
Distribution costs
(1,028,008)
(945,189)
Administrative expenses
(3,380,769)
(3,233,438)
Other operating income
10,605
138,955
Operating profit
4
1,059,538
948,112
Interest receivable and similar income
8
3,640
754
Interest payable and similar expenses
9
(119,893)
(260,348)
Profit before taxation
943,285
688,518
Tax on profit
10
(293,670)
(140,947)
Profit for the financial year
28
649,615
547,571
Profit for the financial year is all attributable to the owners of the parent company.
KATMAX UK HOLDINGS LIMITED
COMPANY PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 9 -
2023
2022
£
£
Administrative expenses
(12,004)
(10,805)
Interest receivable and similar income
500,000
950,000
Profit before taxation
487,996
939,195
Tax on profit
-
0
-
0
Profit for the financial year
487,996
939,195
KATMAX UK HOLDINGS LIMITED
GROUP STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2023
- 10 -
2023
2022
£
£
Profit for the year
649,615
547,571
Other comprehensive income
-
-
Total comprehensive income for the year
649,615
547,571
Total comprehensive income for the year is all attributable to the owners of the parent company.
KATMAX UK HOLDINGS LIMITED
GROUP BALANCE SHEET
AS AT
31 DECEMBER 2023
31 December 2023
- 11 -
2023
2022
Notes
£
£
£
£
Fixed assets
Intangible assets
13
7,406
57,079
Tangible assets
14
7,747,432
8,005,820
Investments
15
1
-
0
7,754,839
8,062,899
Current assets
Stocks
18
421,177
375,896
Debtors
19
611,490
599,693
Cash at bank and in hand
801,829
984,243
1,834,496
1,959,832
Creditors: amounts falling due within one year
20
(6,834,094)
(7,278,510)
Net current liabilities
(4,999,598)
(5,318,678)
Total assets less current liabilities
2,755,241
2,744,221
Creditors: amounts falling due after more than one year
21
(68,308)
(206,903)
Net assets
2,686,933
2,537,318
Capital and reserves
Called up share capital
25
1
1
Share premium account
26
13,325
13,325
Capital redemption reserve
27
2
2
Profit and loss reserves
28
2,673,605
2,523,990
Total equity
2,686,933
2,537,318

These financial statements have been prepared in accordance with the provisions relating to medium-sized groups.

The financial statements were approved by the board of directors and authorised for issue on 24 May 2024 and are signed on its behalf by:
24 May 2024
Mr K H Brackhaus
Director
Company registration number 12256614 (England and Wales)
KATMAX UK HOLDINGS LIMITED
COMPANY BALANCE SHEET
AS AT 31 DECEMBER 2023
31 December 2023
- 12 -
2023
2022
Notes
£
£
£
£
Fixed assets
Investments
15
106
106
Current assets
Debtors
19
2,997
402,031
Cash at bank and in hand
17,178
7,483
20,175
409,514
Creditors: amounts falling due within one year
20
(13,174)
(390,509)
Net current assets
7,001
19,005
Net assets
7,107
19,111
Capital and reserves
Called up share capital
25
1
1
Profit and loss reserves
28
7,106
19,110
Total equity
7,107
19,111

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 £487,996 (2022 - £939,195 profit).

These financial statements have been prepared in accordance with the provisions relating to medium-sized companies.

The financial statements were approved by the board of directors and authorised for issue on 24 May 2024 and are signed on its behalf by:
24 May 2024
Mr K H Brackhaus
Director
Company registration number 12256614 (England and Wales)
KATMAX UK HOLDINGS LIMITED
GROUP STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2023
- 13 -
Share capital
Share premium account
Capital redemption reserve
Profit and loss reserves
Total
Notes
£
£
£
£
£
Balance at 1 January 2022
1
13,325
2
3,288,419
3,301,747
Year ended 31 December 2022:
Profit and total comprehensive income
-
-
-
547,571
547,571
Dividends
11
-
-
-
(1,312,000)
(1,312,000)
Balance at 31 December 2022
1
13,325
2
2,523,990
2,537,318
Year ended 31 December 2023:
Profit and total comprehensive income
-
-
-
649,615
649,615
Dividends
11
-
-
-
(500,000)
(500,000)
Balance at 31 December 2023
1
13,325
2
2,673,605
2,686,933
KATMAX UK HOLDINGS LIMITED
COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2023
- 14 -
Share capital
Profit and loss reserves
Total
Notes
£
£
£
Balance at 1 January 2022
1
391,915
391,916
Year ended 31 December 2022:
Profit and total comprehensive income for the year
-
939,195
939,195
Dividends
11
-
(1,312,000)
(1,312,000)
Balance at 31 December 2022
1
19,110
19,111
Year ended 31 December 2023:
Profit and total comprehensive income
-
487,996
487,996
Dividends
11
-
(500,000)
(500,000)
Balance at 31 December 2023
1
7,106
7,107
KATMAX UK HOLDINGS LIMITED
GROUP STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2023
- 15 -
2023
2022
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
34
910,115
1,705,352
Interest paid
(119,893)
(260,348)
Income taxes paid
(49,902)
(533,178)
Net cash inflow from operating activities
740,320
911,826
Investing activities
Purchase of intangible assets
-
(2,200)
Purchase of tangible fixed assets
(425,517)
(162,317)
Proceeds from disposal of tangible fixed assets
176,560
-
Repayment of loans
1,697
-
Interest received
3,640
754
Net cash used in investing activities
(243,620)
(163,763)
Financing activities
Payment of finance leases obligations
(179,114)
(125,825)
Dividends paid to equity shareholders
(500,000)
(1,312,000)
Net cash used in financing activities
(679,114)
(1,437,825)
Net decrease in cash and cash equivalents
(182,414)
(689,762)
Cash and cash equivalents at beginning of year
984,243
1,674,005
Cash and cash equivalents at end of year
801,829
984,243
KATMAX UK HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
- 16 -
1
Accounting policies
Company information

Katmax UK Holdings Ltd (“the company”) is a private limited company limited by shares and incorporated in England and Wales. The registered office is Unit 2, Greenways Business Park, Bellinger Close, CHIPPENHAM, Wiltshire, England, SN15 1BN.

 

The principal business address is Unit 10-12, Trade City Frimley, Lyon Way, Camberley, Surrey, GU16 7AL.

 

The group consists of Katmax UK Holdings Ltd and all of its subsidiaries.

1.1
Accounting convention

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

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

The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.

The company is a qualifying entity for the purposes of FRS 102, being a member of a group where the parent of that group prepares publicly available consolidated financial statements, including this company, which are intended to give a true and fair view of the assets, liabilities, financial position and profit or loss of the group. The company has therefore taken advantage of exemptions from the following disclosure requirements for parent company information presented within the consolidated financial statements:

 

1.2
Business combinations

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

 

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

KATMAX UK HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 17 -
1.3
Basis of consolidation

The consolidated group financial statements consist of the financial statements of the parent company Katmax UK Holdings Ltd together with all entities controlled by the parent company (its subsidiaries) and the group’s share of its interests in joint ventures and associates. This is the largest and smallest group for which group accounts including this company are drawn up.

 

All financial statements are made up to 31 December 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.

Subsidiaries are consolidated in the group’s financial statements from the date that control commences until the date that control ceases.

Entities in which the group holds an interest and which are jointly controlled by the group and one or more other venturers under a contractual arrangement are treated as joint ventures. Entities other than subsidiary undertakings or joint ventures, in which the group has a participating interest and over whose operating and financial policies the group exercises a significant influence, are treated as associates.

Investments in joint ventures and associates are carried in the group balance sheet at cost plus post-acquisition changes in the group’s share of the net assets of the entity, less any impairment in value. The carrying values of investments in joint ventures and associates include acquired goodwill.

 

If the group’s share of losses in a joint venture or associate equals or exceeds its investment in the joint venture or associate, the group does not recognise further losses unless it has incurred obligations to do so or has made payments on behalf of the joint venture or associate.

 

Unrealised gains arising from transactions with joint ventures and associates are eliminated to the extent of the group’s interest in the entity.

1.4
Going concern

At the time of approving the financial statements, the directors have a reasonable expectation that the group 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.

1.5
Turnover

Turnover is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business, and is shown net of VAT and other sales related taxes. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.

 

When cash inflows are deferred and represent a financing arrangement, the fair value of the consideration is the present value of the future receipts. The difference between the fair value of the consideration and the nominal amount received is recognised as interest income.

Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer (usually on dispatch of the goods), the amount of revenue can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the entity and the costs incurred or to be incurred in respect of the transaction can be measured reliably.

KATMAX UK HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 18 -
1.6
Intangible fixed assets other than goodwill

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

 

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

Amortisation is recognised in administrative costs within the profit and loss so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

Trademarks
10% straight line
Website & IT systems
10% and 33% straight line
1.7
Tangible fixed assets

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

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

Freehold land
Not depreciated
Leasehold improvements
Over the life of the lease
Plant and equipment
10% - 20% straight line
Fixtures and fittings
25% reducing balance
Computers
25% reducing balance
Motor vehicles
20% straight line
Factory building
5% - 20% straight line

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in the profit and loss account.

1.8
Fixed asset investments

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, associates and jointly controlled entities are initially measured at cost and subsequently measured at cost less any accumulated impairment losses.

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

Entities in which the group has a long term interest and shares control under a contractual arrangement are classified as jointly controlled entities.

KATMAX UK HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 19 -
1.9
Impairment of fixed assets

At each reporting period end date, the group reviews the carrying amounts of its tangible and intangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). 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.

1.10
Stocks

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

 

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.

1.11
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.

KATMAX UK HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 20 -
1.12
Financial instruments

The group has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.

 

Financial instruments are recognised in the group's balance sheet when the group becomes party to the contractual provisions of the instrument.

 

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

Basic financial assets

Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost 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.

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.

KATMAX UK HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 21 -
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 group's contractual obligations expire or are discharged or cancelled.

1.13
Equity instruments

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

1.14
Taxation

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

Current tax

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

KATMAX UK HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 22 -
Deferred tax

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

 

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

1.15
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.

1.16
Retirement benefits

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

1.17
Leases

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

 

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

Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leased asset are consumed.

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.

KATMAX UK HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 23 -
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.

Critical judgements

The following judgements (apart from those involving estimates) have had the most significant effect on amounts recognised in the financial statements.

Doubtful debts

The directors have reviewed all significant debts on a case by case basis and have made a provision for doubtful debts of £3,212 (2022: £6,846) based upon their knowledge of both the specific customer and the current economic conditions within the industry.

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.

Depreciation and amortisation

The directors use their knowledge of the business and the industry to estimate the useful life and residual value of property, plant and equipment in order to arrive at applicable depreciation and amortisation rates. In accordance with Sections 17 and 18 of FRS 102, the directors review and update these estimates if there are indicators that current estimates should change.

 

It must be noted that there is inherent uncertainty within these estimates as factors such as unexpected wear and tear, technological advancements and changes in market prices may result in future changes to the appropriate rate of depreciation and amortisation. The carrying value of property, plant and equipment at the balance sheet date is set out in the notes to these financial statements.

3
Turnover and other revenue
2023
2022
£
£
Turnover analysed by class of business
Pet food supplies
11,975,709
11,007,106
2023
2022
£
£
Turnover analysed by geographical market
United Kingdom
11,975,709
11,007,106
KATMAX UK HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
3
Turnover and other revenue
(Continued)
- 24 -
2023
2022
£
£
Other revenue
Interest income
3,640
754
4
Operating profit
2023
2022
£
£
Operating profit for the year is stated after charging/(crediting):
Exchange losses
2,559
2,989
Depreciation of owned tangible fixed assets
498,336
412,972
Depreciation of tangible fixed assets held under finance leases
107,572
58,899
Impairment of owned tangible fixed assets
-
16,401
Reversal of past impairment of tangible fixed assets
(23,731)
-
0
(Profit)/loss on disposal of tangible fixed assets
(74,832)
12,460
Amortisation of intangible assets
49,673
49,599
Operating lease charges
453,856
385,430
5
Auditor's remuneration
2023
2022
Fees payable to the company's auditor and associates:
£
£
For audit services
Audit of the financial statements of the group and company
5,500
5,000
Audit of the financial statements of the company's subsidiaries
23,254
20,910
28,754
25,910
KATMAX UK HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 25 -
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
Production & Packing
28
26
-
-
Customer Service
4
5
-
-
Admin
5
7
-
-
Finance
3
3
-
-
Director
4
3
3
3
Shop
1
1
-
-
Marketing
3
2
-
-
Total
48
47
3
3

Their aggregate remuneration comprised:

Group
Company
2023
2022
2023
2022
£
£
£
£
Wages and salaries
1,594,943
1,534,592
-
0
-
0
Social security costs
148,057
153,298
-
-
Pension costs
18,976
18,761
-
0
-
0
1,761,976
1,706,651
-
0
-
0
7
Directors' remuneration
2023
2022
£
£
Remuneration for qualifying services
50,000
52,624
8
Interest receivable and similar income
2023
2022
£
£
Interest income
Interest on bank deposits
3,640
754
KATMAX UK HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 26 -
9
Interest payable and similar expenses
2023
2022
£
£
Interest payable to group undertakings
116,374
255,744
Interest on finance leases and hire purchase contracts
3,519
4,604
Total finance costs
119,893
260,348
10
Taxation
2023
2022
£
£
Current tax
UK corporation tax on profits for the current period
239,416
136,117
Adjustments in respect of prior periods
(14,577)
(68,477)
Total current tax
224,839
67,640
Deferred tax
Origination and reversal of timing differences
68,831
73,307
Total tax charge
293,670
140,947

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
943,285
688,518
Expected tax charge based on the standard rate of corporation tax in the UK of 23.52% (2022: 19.00%)
221,861
130,818
Tax effect of expenses that are not deductible in determining taxable profit
-
0
3,250
Adjustments in respect of prior years
(143)
-
0
Group relief
-
0
(2,053)
Depreciation on assets not qualifying for tax allowances
83,916
63,824
Research and development tax credit
-
0
(50,405)
Under/(over) provided in prior years
(14,434)
359
30% additional relief on 130% super deduction
(715)
(16,849)
Other timing differences
-
0
(5,505)
Deferred tax rate difference
3,185
17,508
Taxation charge
293,670
140,947
KATMAX UK HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 27 -
11
Dividends
2023
2022
Recognised as distributions to equity holders:
£
£
Final paid
500,000
1,312,000
12
Impairments

Impairment tests have been carried out where appropriate and the following impairment losses have been recognised in profit or loss:

2023
2022
Notes
£
£
In respect of:
Property, plant and equipment
14
-
16,401
Recognised in:
Administrative expenses
-
16,401

The impairment losses in respect of financial assets are recognised in other gains and losses in the profit and loss account.

 

Reversals of previous impairment losses have been recognised in profit or loss as follows:

2023
2022
Notes
£
£
In respect of:
Property, plant and equipment
14
23,731
-
Recognised in:
Administrative expenses
23,731
-

The impairment reversal relates to an asset which was previously impaired due to a misinterpretation of its carrying value at the time. This has now been identified and the carrying value of the asset is now understood to have been appropriate prior to the recognition of an impairment. As a result the previously recognised impairment has been reversed.

KATMAX UK HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 28 -
13
Intangible fixed assets
Group
Trademarks
Website & IT systems
Total
£
£
£
Cost
At 1 January 2023 and 31 December 2023
3,332
151,304
154,636
Amortisation and impairment
At 1 January 2023
3,332
94,225
97,557
Amortisation charged for the year
-
0
49,673
49,673
At 31 December 2023
3,332
143,898
147,230
Carrying amount
At 31 December 2023
-
0
7,406
7,406
At 31 December 2022
-
0
57,079
57,079
The company had no intangible fixed assets at 31 December 2023 or 31 December 2022.

The amortisation charge in respect of Website & IT systems has been recognised in the profit and loss within administrative expenses.

KATMAX UK HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 29 -
14
Tangible fixed assets
Group
Freehold land
Leasehold improvements
Plant and equipment
Fixtures and fittings
Computers
Motor vehicles
Factory building
Total
£
£
£
£
£
£
£
£
Cost
At 1 January 2023
2,779,120
147,501
1,243,761
39,638
46,962
20,451
6,245,972
10,523,405
Additions
-
0
316,661
86,062
19,895
2,899
-
0
-
0
425,517
Disposals
-
0
-
0
(164,129)
(619)
-
0
(20,451)
-
0
(185,199)
At 31 December 2023
2,779,120
464,162
1,165,694
58,914
49,861
-
0
6,245,972
10,763,723
Depreciation and impairment
At 1 January 2023
-
0
17,404
853,479
23,252
28,226
20,451
1,574,773
2,517,585
Depreciation charged in the year
-
0
103,671
139,016
11,366
15,944
-
0
335,911
605,908
Reversal of past impairment
-
0
-
0
(23,731)
-
0
-
0
-
0
-
0
(23,731)
Eliminated in respect of disposals
-
0
-
0
(62,463)
(557)
-
0
(20,451)
-
0
(83,471)
At 31 December 2023
-
0
121,075
906,301
34,061
44,170
-
0
1,910,684
3,016,291
Carrying amount
At 31 December 2023
2,779,120
343,087
259,393
24,853
5,691
-
0
4,335,288
7,747,432
At 31 December 2022
2,779,120
130,097
390,282
16,386
18,736
-
0
4,671,199
8,005,820
The company had no tangible fixed assets at 31 December 2023 or 31 December 2022.
KATMAX UK HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
14
Tangible fixed assets
(Continued)
- 30 -

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
170,348
379,586
-
0
-
0

The leased assets disclosed above are pledged as security against the associated lease liabilities through which they are financed.

More information on impairment movements in the year is given in note 12.

15
Fixed asset investments
Group
Company
2023
2022
2023
2022
Notes
£
£
£
£
Investments in subsidiaries
16
-
0
-
0
106
106
Investments in joint ventures
17
1
-
0
-
0
-
0
1
-
0
106
106
Movements in fixed asset investments
Group
Shares in joint ventures
£
Cost or valuation
At 1 January 2023
-
Investments not previously recognised
1
At 31 December 2023
1
Carrying amount
At 31 December 2023
1
At 31 December 2022
-
KATMAX UK HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
15
Fixed asset investments
(Continued)
- 31 -
Movements in fixed asset investments
Company
Shares in subsidiaries
£
Cost or valuation
At 1 January 2023 and 31 December 2023
106
Carrying amount
At 31 December 2023
106
At 31 December 2022
106
16
Subsidiaries

Details of the company's subsidiaries at 31 December 2023 are as follows:

Name of undertaking
Registered office
Nature of business
Class of
% Held
shares held
Direct
Katmax Properties Limited
Unit 2 Greenways Business Park, Bellinger Close, Chippenham, Wiltshire, England, SN15 1BN
Rental Property
Ordinary
100.00
Natural Instinct Limited
Unit 2 Greenways Business Park, Bellinger Close, Chippenham, Wiltshire, England, SN15 1BN
Pet food supplier
Ordinary
100.00
17
Joint ventures

Details of joint ventures at 31 December 2023 are as follows:

Name of undertaking
Registered office
Nature of business
Interest
% Held
held
Direct
Indirect
Frimley Logistics City Limited
see below
Management of real estate on a free contract basis
Ordinary
0
33.33

The registered office of the joint venture is C/O Hurst Warne Commercial Property Management Ltd Atlantic House, 96a Clarence Road, Fleet, Hampshire, England, GU51 3XU.

18
Stocks
Group
Company
2023
2022
2023
2022
£
£
£
£
Raw materials and consumables
421,177
375,896
-
-
KATMAX UK HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 32 -
19
Debtors
Group
Company
2023
2022
2023
2022
Amounts falling due within one year:
£
£
£
£
Trade debtors
257,187
272,596
-
0
-
0
Corporation tax recoverable
-
0
28,377
-
0
-
0
Amounts owed by group undertakings
-
-
2,694
401,567
Other debtors
85,914
87,000
303
464
Prepayments and accrued income
260,077
134,577
-
0
-
0
603,178
522,550
2,997
402,031
Amounts falling due after more than one year:
Deferred tax asset (note 23)
8,312
77,143
-
0
-
0
Total debtors
611,490
599,693
2,997
402,031
20
Creditors: amounts falling due within one year
Group
Company
2023
2022
2023
2022
Notes
£
£
£
£
Obligations under finance leases
22
62,445
102,964
-
0
-
0
Trade creditors
528,807
576,923
1,832
-
0
Amounts owed to group undertakings
5,840,005
6,220,005
5
380,005
Corporation tax payable
174,530
27,970
-
0
-
0
Other taxation and social security
59,900
39,096
-
-
Other creditors
6,994
24,127
-
0
-
0
Accruals and deferred income
161,413
287,425
11,337
10,504
6,834,094
7,278,510
13,174
390,509

The hire purchase liability of £62,445 (2022: £102,964) is secured against the asset to which it relates.

 

Within other taxation and social security are pension contributions due of £3,700 (2022: £4,198).

 

Within amounts owed to group undertakings is the amount under one year worth £5,840,000 (2022: £5,840,000) provided by TFC Holding Corporation to Katmax Properties Limited which is secured by fixed charges over investment properties acquired in the year. Interest is charged at 2% plus base rate per annum. There are no repayment terms. Further information on this loan is shown on note 32.

KATMAX UK HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 33 -
21
Creditors: amounts falling due after more than one year
Group
Company
2023
2022
2023
2022
Notes
£
£
£
£
Obligations under finance leases
22
68,308
206,903
-
0
-
0

The hire purchase liability of £68,308 (2022: £206,903) is secured against the asset to which it relates.

22
Finance lease obligations
Group
Company
2023
2022
2023
2022
£
£
£
£
Future minimum lease payments due under finance leases:
Within one year
62,445
102,964
-
0
-
0
In two to five years
68,308
206,903
-
0
-
0
130,753
309,867
-
-

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 lease terms range from 3 to 5 years. All leases are on a fixed repayment basis and no arrangements have been entered into for contingent rental payments.

 

23
Deferred taxation

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

Assets
Assets
2023
2022
Group
£
£
Accelerated capital allowances
7,966
77,143
Tax losses
346
-
8,312
77,143
The company has no deferred tax assets or liabilities.
KATMAX UK HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
23
Deferred taxation
(Continued)
- 34 -
Group
Company
2023
2023
Movements in the year:
£
£
Asset at 1 January 2023
(77,143)
-
Charge to profit or loss
68,831
-
Asset at 31 December 2023
(8,312)
-

The deferred tax asset set out above is expected to reverse within 12 months and relates to accelerated capital allowances and other timing differences. A change in tax rate from 19% to 25% year is anticipated to affect reversal on deferred tax, therefore this has further affected the current year deferred tax and is represented in the above note.

 

24
Retirement benefit schemes
2023
2022
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
18,976
18,761

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

25
Share capital
Group and company
2023
2022
2023
2022
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
1
1
1
1

Ordinary shares have full rights in the company with respect of voting, dividends and distributions.

26
Share premium account
Group
Company
2023
2022
2023
2022
£
£
£
£
At the beginning and end of the year
13,325
13,325
-
0
-
0
KATMAX UK HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 35 -
27
Capital redemption reserve
Group
Company
2023
2022
2023
2022
£
£
£
£
At the beginning and end of the year
2
2
-
0
-
0
28
Profit and loss reserves
Group
Company
2023
2022
2023
2022
£
£
£
£
At the beginning of the year
2,523,990
3,288,419
19,110
391,915
Profit for the year
649,615
547,571
487,996
939,195
Dividends
(500,000)
(1,312,000)
(500,000)
(1,312,000)
At the end of the year
2,673,605
2,523,990
7,106
19,110
29
Operating lease commitments
Lessee

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

Group
Company
2023
2022
2023
2022
£
£
£
£
Within one year
487,698
549,255
-
-
Between two and five years
711,329
1,186,816
-
-
1,199,027
1,736,071
-
-
30
Capital commitments

Amounts contracted for but not provided in the financial statements:

Group
Company
2023
2022
2023
2022
£
£
£
£
Acquisition of tangible fixed assets
6,095
370,590
-
-
KATMAX UK HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 36 -
31
Related party transactions
Remuneration of key management personnel

The remuneration of key management personnel is as follows.

2023
2022
£
£
Aggregate compensation
321,897
358,656

The following amounts were outstanding at the reporting end date:

Amounts due to related parties
2023
2022
£
£
Company
Entities with control, joint control or significant influence over the company
5
379,906

Balances owed to/from group companies disclosed above are interest free and repayable on demand.

The following amounts were outstanding at the reporting end date:

Amounts due from related parties
2023
2022
Balance
Balance
£
£
Company
Entities over which the company has control, joint control or significant influence
2,693
401,666

Balances owed to/from group companies disclosed above are interest free and repayable on demand.

Other information

At the year end, the Katmax Properties Limited had a loan balance due to TFC Holding Corporation of £5,840,000 (2022: £5,840,000), which is in relation to the purchase of investment property. TFC Holdings Corporation is based in The British Virgin Islands and wholly owns Katmax UK Holdings Limited.

 

Further information on this loan can be found in note 20.

KATMAX UK HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 37 -
32
Directors' transactions

Advances or credits have been granted by the group to its directors as follows:

Description
% Rate
Opening balance
Amounts repaid
Closing balance
£
£
£
Directors Loan Account
-
1,697
(1,697)
-
1,697
(1,697)
-
33
Controlling party

Katmax UK Holdings Limited is controlled by TFC Holding Corporation, who is the parent company of the company. The company is registered in the British Virgin Islands.

Karl Heinz Brackhaus is the ultimate controlling party of the company by virtue of 100% effective control.

The principal business address of the company is Bison Court, PO Box, 3460, Road Town, Tortola, British Virgin Islands.

34
Cash generated from group operations
2023
2022
£
£
Profit for the year after tax
649,615
547,571
Adjustments for:
Taxation charged
293,670
140,947
Finance costs
119,893
260,348
Investment income
(3,640)
(754)
(Gain)/loss on disposal of tangible fixed assets
(74,832)
12,460
Amortisation and impairment of intangible assets
49,673
49,599
Depreciation and impairment of tangible fixed assets
582,177
488,272
Movements in working capital:
Increase in stocks
(45,282)
(63,241)
(Increase)/decrease in debtors
(110,702)
148,457
(Decrease)/increase in creditors
(550,457)
121,693
Cash generated from operations
910,115
1,705,352
KATMAX UK HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 38 -
35
Analysis of changes in net funds - group
1 January 2023
Cash flows
31 December 2023
£
£
£
Cash at bank and in hand
984,243
(182,414)
801,829
Obligations under finance leases
(309,867)
179,114
(130,753)
674,376
(3,300)
671,076
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