Company Registration number:
KONG Company Limited
for the Year Ended 31 December 2023
KONG Company Limited
Contents
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Company Information |
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Strategic Report |
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Directors' Report |
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Statement of Directors' Responsibilities |
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Independent Auditor's Report |
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Profit and Loss Account |
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Statement of Comprehensive Income |
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Balance Sheet |
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Statement of Changes in Equity |
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Statement of Cash Flows |
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Notes to the Financial Statements |
KONG Company Limited
Company Information
Directors |
J J Nelson K Decker |
Registered office |
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Auditors |
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KONG Company Limited
Strategic Report for the Year Ended 31 December 2023
The directors present their strategic report for the year ended 31 December 2023.
Principal activity
The principal activity of the company is wholesale distribution of pet toys and associated products.
Fair review of the business
Turnover decreased this year by c4%, as a continued result of EU customers now trading direct with our related company based in Germany. Turnover for the combined UK and German entities remained static in 2023 which we consider to be a sound result given the significant increases in turnover in both 2020 and 2021 because of increases in demand for KONG products during the Covid-19 pandemic. Indeed, cumulative turnover is in excess of that in our business plan.
Profitability remains in line with expectations and Directors remain confident in the financial strength of the company.
The company's key financial and other performance indicators during the year were as follows:
Financial KPIs |
Unit |
2023 |
2022 |
Turnover |
£'000 |
23,896 |
24,869 |
Gross profit |
£'000 |
4,855 |
5,718 |
Net profit before taxation |
£'000 |
1,580 |
2,140 |
Future developments
The company remains cautious as it moves into the 2024 financial year. 2023 has again shown that even in times of economic uncertainty people across Europe have continued to purchase KONG products for their pets who are often regarded as part of their family. Our supply chain has remained resilient in meeting the demand for our products. However, the long-term economic impact of the pandemic is still unclear and that, coupled with the uncertainty in the economic outlook of the UK and Europe, means the company has to observe and react to any changes to consumer demand as the effects of the pandemic disperse.
With the support of our parent company, the impact of Brexit and a slowing economy will be managed to ensure the company remains profitable and well positioned to capitalise on any growth opportunities in the UK market.
Principal risks and uncertainties
The KONG brand underpins our success and the worldwide KONG group take steps to protect our brand.
We are confident that the company remains in a strong position. Having assessed the cash and other funding available to us, alongside the support of the KONG group worldwide, we are confident of the ability of the company to continue to trade and accordingly, these financial statements are prepared on a going concern basis.
The cost-of-living crisis continues to be an issue worldwide but, given the results achieved in both 2022 and 2023 we do not anticipate it having a substantial negative impact on trade.
KONG Company Limited
Strategic Report for the Year Ended 31 December 2023
Approved by the Board on
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KONG Company Limited
Directors' Report for the Year Ended 31 December 2023
The directors present their report and the financial statements for the year ended 31 December 2023.
Directors of the company
The directors who held office during the year were as follows:
Directors' liabilities
As permitted by the Companies Act 2006, the Company has indemnified the directors in respect of proceedings brought by third parties and qualifying third party indemnity insurance was in place throughout the year and up to the date of approval of the financial statements.
Disclosure of information to the auditors
Each director has taken steps that they ought to have taken as a director in order to make themselves aware of any relevant audit information and to establish that the company's auditors are aware of that information. The directors confirm that there is no relevant information that they know of and of which they know the auditors are unaware.
Future Developments
The future developments of the business are included within the strategic report.
Financial instruments
Objectives and policies
The company's principal financial instruments at the year-end comprise bank balances, trade creditors and debtors, a working capital facility, long term bank borrowing and loans to other group companies. The main purpose of these instruments is to provide finance for the company's operations.
Price risk, credit risk, liquidity risk and cash flow risk
Due to the nature of the financial instruments used by the company, there is little exposure to price risk. The company's approach to managing other risks applicable to the financial instruments concerned is outlined below.
The company's activities expose it primarily to the financial risks of changes in foreign currency exchange rates and interest rates. The exchange rate risk is mitigated by the purchase and sale of a proportion of goods in Euros. The interest rate risk is mitigated by entering into low fixed interest rate loan agreements.
Liquidity risk is managed by maintaining a balance between the continuity of funding and flexibility through the use of long term loans and a short working capital facility to ensure that funds are available for ongoing operations and future developments.
Credit risk is primarily attributable to trade debtors. Close management of credit policies and credit limits for customers mitigates this risk.
KONG Company Limited
Directors' Report for the Year Ended 31 December 2023
Reappointment of auditors
The auditors Albert Goodman LLP are deemed to be reappointed under section 487(2) of the Companies Act 2006.
Approved by the Board on
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KONG Company Limited
Statement of Directors' Responsibilities
The directors acknowledge their responsibilities 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:
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select suitable accounting policies and apply them consistently; |
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make judgements and accounting estimates that are reasonable and prudent; |
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state whether applicable United Kingdom Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; and |
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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.
KONG Company Limited
Independent Auditor's Report to the Members of KONG Company Limited
Opinion
We have audited the financial statements of KONG Company Limited (the 'company') for the year ended 31 December 2023, which comprise the Profit and Loss Account, Statement of Comprehensive Income, Balance Sheet, Statement of Changes in Equity, Statement of Cash Flows, and Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).
In our opinion the financial statements:
• | give a true and fair view of the state of the company's affairs as at 31 December 2023 and of its profit for the year then ended; |
• | have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and |
• | have been prepared in accordance with the requirements of the Companies Act 2006. |
Basis for opinion
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the auditor 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 director's 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 original financial statements were authorised for issue.
Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.
KONG Company Limited
Independent Auditor's Report to the Members of KONG Company Limited
Other information
The directors are responsible for the other information. The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report thereon. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.
In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
Opinion on other matter prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of the audit:
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the information given in the Strategic Report and Directors' Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and |
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the Strategic Report and Directors' Report have been prepared in accordance with applicable legal requirements. |
In the light of our knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic Report and the Directors' Report.
Matters on which we are required to report by exception
We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion:
• | adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or |
• | the financial statements are not in agreement with the accounting records and returns; or |
• | certain disclosures of directors' remuneration specified by law are not made; or |
• | we have not received all the information and explanations we require for our audit. |
Responsibilities of directors
As explained more fully in the Statement of Directors' Responsibilities set out on page 6, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.
In preparing the financial statements, the directors are responsible for assessing the 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.
KONG Company Limited
Independent Auditor's Report to the Members of KONG Company Limited
Auditor 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:
The extent to which the audit was considered capable of detecting irregularities including fraud
Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was as follows:
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the engagement partner ensured that the engagement team collectively had the appropriate competence, capabilities and skills to identify or recognise non-compliance with applicable laws and regulations; |
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we identified the laws and regulations applicable to the company through discussions with directors and other management, and from our commercial knowledge and experience of the sector; |
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we focused on specific laws and regulations which we considered may have a direct material effect on the financial statements or the operations of the company, including the Companies Act 2006, taxation legislation, data protection/GDPR, employment law, bribery & modern slavery act and health and safety legislation; |
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we assessed the extent of compliance with the laws and regulations identified above through making enquiries of management and inspecting legal costs; and |
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identified laws and regulations were communicated within the audit team regularly and the team remained alert to instances of non-compliance throughout the audit. |
We assessed the susceptibility of the company’s financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by:
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making enquiries of management as to where they considered there was susceptibility to fraud, their knowledge of actual, suspected and alleged fraud; and |
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considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations. |
To address the risk of fraud through management bias and override of controls, we:
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performed analytical procedures to identify any unusual or unexpected relationships; |
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tested journal entries to identify unusual transactions; |
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assessed whether judgements and assumptions made in determining the accounting estimates were indicative of potential bias; and |
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investigated the rationale behind significant or unusual transactions. |
In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to:
KONG Company Limited
Independent Auditor's Report to the Members of KONG Company Limited
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agreeing financial statement disclosures to underlying supporting documentation; |
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reading the minutes of meetings of those charged with governance; |
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enquiring of management as to actual and potential litigation and claims; and |
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reviewing correspondence with HMRC, the entity's management and management of the entity's parent company. |
There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the directors and other management and the inspection of regulatory and legal correspondence, if any.
Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion.
A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.
Use of our report
This report is made solely to the company’s members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company’s members those matters we are required to state to them in an auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company’s members as a body, for our audit work, for this report, or for the opinions we have formed.
For and on behalf of
Goodwood House
Blackbrook Park Avenue
Somerset
TA1 2PX
KONG Company Limited
Profit and Loss Account
for the Year Ended 31 December 2023
Note |
2023 |
2022 |
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Turnover |
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Cost of sales |
( |
( |
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Gross profit |
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Administrative expenses |
( |
( |
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Other operating income |
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Operating profit |
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Other interest receivable and similar income |
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Interest payable and similar charges |
( |
- |
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Profit before tax |
|
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Taxation |
( |
( |
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Profit for the financial year |
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The above results were derived from continuing operations.
KONG Company Limited
Statement of Comprehensive Income
for the Year Ended 31 December 2023
2023 |
2022 |
|
Profit for the year |
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Total comprehensive income for the year |
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KONG Company Limited
(Registration number: 06341271)
Balance Sheet as at 31 December 2023
Note |
2023 |
2022 |
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Fixed assets |
|||
Tangible assets |
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Current assets |
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Debtors: amounts falling due within one year |
5,503,444 |
5,632,290 |
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Debtors: amounts falling due after one year |
425,112 |
737,150 |
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Cash at bank and in hand |
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Creditors: Amounts falling due within one year |
( |
( |
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Net current assets |
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Net assets |
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Capital and reserves |
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Called up share capital |
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Profit and loss account |
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Shareholders' funds |
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Approved and authorised by the
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KONG Company Limited
Statement of Changes in Equity
for the Year Ended 31 December 2023
Share capital |
Retained earnings |
Total |
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At 1 January 2023 |
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Profit for the year |
- |
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At 31 December 2023 |
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Share capital |
Retained earnings |
Total |
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At 1 January 2022 |
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Profit for the year |
- |
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At 31 December 2022 |
1 |
10,526,693 |
10,526,694 |
KONG Company Limited
Statement of Cash Flows
for the Year Ended 31 December 2023
Note |
2023 |
2022 |
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Cash flows from operating activities |
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Profit for the year |
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Adjustments to cash flows from non-cash items |
|||
Depreciation and amortisation |
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Finance income |
( |
( |
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Finance costs |
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- |
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Income tax expense |
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Working capital adjustments |
|||
Decrease in trade and other debtors |
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Decrease in trade and other creditors |
( |
( |
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Cash generated from operations |
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Income taxes paid |
( |
( |
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Net cash flow from operating activities |
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Cash flows from investing activities |
|||
Interest received |
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Acquisitions of tangible assets |
( |
( |
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Cash receipts from repayment of loans, classified as investing activities |
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Net cash flows from investing activities |
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Cash flows from financing activities |
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Interest paid |
( |
- |
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Repayment of bank borrowing |
- |
(698,224) |
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Net cash flows from financing activities |
( |
( |
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Net increase in cash and cash equivalents |
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Cash and cash equivalents at 1 January 2023 |
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Cash and cash equivalents at 31 December 2023 |
3,662,323 |
2,640,318 |
KONG Company Limited
Notes to the Financial Statements
for the Year Ended 31 December 2023
General information |
The company is a private company limited by share capital, incorporated in England & Wales.
The address of its registered office is:
England
Accounting policies |
Statement of compliance
These financial statements were prepared in accordance with Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland and the Companies Act 2006'.
Basis of preparation
These financial statements have been prepared using the historical cost convention except for the modification to a fair value basis for certain financial instruments as specified in the accounting policies below.
These financial statements are presented in Sterling (£).
Summary of significant accounting policies and key accounting estimates
The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.
Judgements
As described in the Strategic Report the Directors have made the assessment that the company is a going concern and these financial statements are prepared on that basis. The company is reliant on its parent company to continue to supply all of the KONG products and the Directors have concluded that this supply will continue as required. |
Turnover recognition
Turnover comprises the fair value of the consideration received or receivable for the sale of goods in the ordinary course of the Company’s activity. Turnover is shown net of VAT, returns and discounts. The turnover is recognised when the goods have been despatched to the customer.
Foreign currency transactions and balances
Non-monetary items measured in terms of historical cost in a foreign currency are not retranslated.
KONG Company Limited
Notes to the Financial Statements
for the Year Ended 31 December 2023
Tax
The tax expense for the period comprises current and deferred tax. Tax is recognised in the profit and loss account.
The current tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the reporting date in the countries where the company operates and generates taxable income.
Deferred income tax is recognised on temporary differences arising between the tax bases of assets and liabilities and their carrying amounts in the financial statements and on unused tax losses or tax credits in the Company. Deferred income tax is determined using tax rates and laws that have been enacted or substantively enacted by the reporting date. The carrying value of deferred tax is recognised as a provision in the balance sheet.
Tangible assets
Tangible assets are stated in the balance sheet at cost, less any subsequent accumulated depreciation and subsequent accumulated impairment losses.
The cost of tangible assets includes directly attributable incremental costs incurred in their acquisition and installation.
Depreciation
Depreciation is charged so as to write off the cost of assets, other than land and properties under construction over their estimated useful lives, as follows:
Asset class |
Depreciation method and rate |
Land and buildings |
Straight line over the useful economic life of the assets |
Furniture, fittings and equipment |
Straight line over 3 - 5 years |
Intangible assets
Acquired intangible assets are measured at cost less accumulated amortisation and accumulated impairment losses. The cost includes the purchase price and any directly attributable cost of preparing the asset for its intended use.
Amortisation
Amortisation is charged through administrative expenses and is provided on intangible assets, when they are available for use, so as to write off the cost, less any estimated residual value, over their useful life as follows:
Asset class |
Amortisation method and rate |
Computer software |
Straight line over 3 years |
Cash and cash equivalents
Cash and cash equivalents comprise cash on hand and call deposits, and other short-term highly liquid investments that are readily convertible to a known amount of cash and are subject to an insignificant risk of change in value.
KONG Company Limited
Notes to the Financial Statements
for the Year Ended 31 December 2023
Debtors
Trade debtors are amounts due from customers for merchandise sold or services performed in the ordinary course of business.
Trade and other debtors are recognised initially at the transaction price. They are subsequently measured at amortised cost using the effective interest method, less provision for impairment. A provision for the impairment of trade or other debtors is established when there is objective evidence that the company will not be able to collect all amounts due according to the original terms of the receivables.
Loan notes
Loan notes to group entities which are basic financial instruments are intially recorded at the value of cash advanced, and are subsequently measured at amortised cost using the effective interest method. The amounts per the loan agreement receivable in more than one year are shown in non current debtors.
Stocks
Under agreement with its parent company KONG LLC, KONG Company Limited is allocated consignment stock. Where it is considered the risks and rewards of ownership have been transferred to the company during the consignment period and the company has in substance control over the stock it is recognised in the balance sheet with an equivalent liability. Otherwise, until such time as legal title passes at the end of the consignment period, this stock is not included in the balance sheet and the commitment is disclosed in the notes to the financial statements.
Stocks are stated at the lower of cost or net realisable value. Cost includes all costs incurred in bringing each product to its present location and condition. Net realisable value is based on estimated selling price less any further costs expected to be incurred.
Creditors
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Accounts payable are classified as current liabilities if the company does not have an unconditional right, at the end of the reporting period, to defer settlement of the creditor for at least twelve months after the reporting date. If there is an unconditional right to defer settlement for at least twelve months after the reporting date, they are presented as non-current liabilities.
Trade creditors are recognised initially at the transaction price and subsequently measured at amortised cost using the effective interest method.
Reserves
Called up share capital represents the nominal value of shares that have been issued.
Profit and loss account includes all current and prior period profits and losses.
Leases
Leases in which substantially all the risks and rewards of ownership are retained by the lessor are classified as operating leases. Payments made under operating leases are charged to profit or loss on a straight-line basis over the period of the lease.
KONG Company Limited
Notes to the Financial Statements
for the Year Ended 31 December 2023
Defined contribution pension obligation
The company operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the company pays fixed contributions into a separate entity. Once the contributions have been paid the company has no further payments obligations.
The contributions are recognised as an expense in the profit and loss account when they fall due. Amounts not paid are shown in accruals as a liability in the balance sheet. The assets of the plan are held separately from the company in independently administered funds.
Share capital
Ordinary shares are classified as equity. Equity instruments are measured at the fair value of the cash or other resources received or receivable, net of the direct costs of issuing the equity instruments. If payment is deferred and the time value of money is material, the initial measurement is on a present value basis.
Financial instruments
Classification
Financial assets – trade and other debtors, accrued income, amounts owed by group undertakings and other debtors are basic financial instruments, and are debt instruments measured at amortised cost. Prepayments are not financial instruments.
Cash at bank – is classified as a basic financial instrument and is measured at face value.
Financial liabilities – trade creditors, amounts owed to group undertakings, bank loans, accrued expenses and other creditors are financial instruments, and are measured at amortised cost. Taxation and social security and corporation tax creditors are not included in the financial instruments disclosure definition.
Turnover |
The analysis of the company's Turnover for the year from continuing operations is as follows:
2023 |
2022 |
|
Sale of goods |
|
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The analysis of the company's Turnover for the year by market is as follows:
2023 |
2022 |
|
UK |
|
|
Europe |
|
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Rest of world |
|
|
|
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KONG Company Limited
Notes to the Financial Statements
for the Year Ended 31 December 2023
Operating profit |
Arrived at after charging/(crediting)
2023 |
2022 |
|
Depreciation expense |
|
|
Foreign exchange losses |
|
|
Other interest receivable and similar income |
2023 |
2022 |
|
Interest income on financial assets |
|
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Interest payable and similar expenses |
2023 |
2022 |
|
Interest expense on other finance liabilities |
|
- |
Staff costs |
The aggregate payroll costs (including directors' remuneration) were as follows:
2023 |
2022 |
|
Wages and salaries |
|
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Social security costs |
|
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Pension costs, defined contribution scheme |
|
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Other employee expense |
|
|
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The average number of persons employed by the company (including directors) during the year, analysed by category was as follows:
2023 |
2022 |
|
Administration and support |
|
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Sales |
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Distribution |
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KONG Company Limited
Notes to the Financial Statements
for the Year Ended 31 December 2023
Directors' remuneration |
The directors' remuneration for the year was as follows:
2023 |
2022 |
|
Remuneration |
|
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Auditors' remuneration |
2023 |
2022 |
|
Audit of the financial statements |
|
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Other fees to auditors |
||
All other non-audit services |
|
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Taxation |
Tax charged/(credited) in the profit and loss account
2023 |
2022 |
|
Current taxation |
||
UK corporation tax |
|
|
Deferred taxation |
||
Arising from origination and reversal of timing differences |
|
( |
Tax expense in the income statement |
|
|
The tax on profit before tax for the year is higher than the standard rate of corporation tax in the UK (2022 - higher than the standard rate of corporation tax in the UK) of
The differences are reconciled below:
2023 |
2022 |
|
Profit before tax |
|
|
Corporation tax at standard rate |
|
|
Tax decrease from effect of capital allowances and depreciation |
( |
- |
Tax decrease from other short-term timing differences |
( |
- |
Effect of expense not deductible in determining taxable profit (tax loss) |
|
|
Total tax charge |
|
|
KONG Company Limited
Notes to the Financial Statements
for the Year Ended 31 December 2023
Intangible assets |
Computer software |
Total |
|
Cost or valuation |
||
At 1 January 2023 |
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|
At 31 December 2023 |
|
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Amortisation |
||
At 1 January 2023 |
|
|
At 31 December 2023 |
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Carrying amount |
||
At 31 December 2023 |
- |
- |
At 31 December 2022 |
- |
- |
Tangible assets |
Land and buildings |
Furniture, fittings and equipment |
Total |
|
Cost or valuation |
|||
At 1 January 2023 |
|
|
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Additions |
|
|
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At 31 December 2023 |
|
|
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Depreciation |
|||
At 1 January 2023 |
|
|
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Charge for the year |
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At 31 December 2023 |
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|
Carrying amount |
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At 31 December 2023 |
|
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|
At 31 December 2022 |
|
|
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Included within the net book value of land and buildings above is £4,141,799 (2022 - £4,256,814) in respect of freehold land and buildings.
KONG Company Limited
Notes to the Financial Statements
for the Year Ended 31 December 2023
Debtors |
Note |
2023 |
2022 |
|
Trade debtors |
|
|
|
Amounts owed by group undertakings |
|
|
|
Other debtors |
|
|
|
Prepayments and accrued income |
|
|
|
Deferred tax |
|
|
|
|
|
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Less non-current portion |
( |
( |
|
Total current trade and other debtors |
|
|
Cash and cash equivalents |
2023 |
2022 |
|
Cash on hand |
|
|
Cash at bank |
|
|
|
|
Creditors |
Note |
2023 |
2022 |
|
Due within one year |
|||
Trade creditors |
|
|
|
Amounts owed to group undertakings |
|
|
|
Social security and other taxes |
- |
|
|
Other creditors |
|
|
|
Accrued expenses |
|
|
|
Corporation tax |
|
|
|
|
|
KONG Company Limited
Notes to the Financial Statements
for the Year Ended 31 December 2023
Obligations under leases and hire purchase contracts |
Operating leases
The total of future minimum lease payments is as follows:
2023 |
2022 |
|
Not later than one year |
|
- |
Later than one year and not later than five years |
|
- |
|
- |
The amount of non-cancellable operating lease payments recognised as an expense during the year was £
Commitments |
Other financial commitments
The total amount of other financial commitments not provided in the financial statements was £
Pension and other schemes |
Defined contribution pension scheme
The company operates a defined contribution pension scheme. The pension cost charge for the year represents contributions payable by the company to the scheme and amounted to £
KONG Company Limited
Notes to the Financial Statements
for the Year Ended 31 December 2023
Analysis of changes in net debt |
At 1 January 2023 |
Financing cash flows |
Foreign exchange movements |
At 31 December 2023 |
|
Cash and cash equivalents |
||||
Cash |
2,640,318 |
1,235,182 |
(213,177) |
3,662,323 |
Borrowings |
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Intercompany loans and debt |
(1,278,118) |
378,100 |
(232,082) |
(1,132,100) |
|
|
( |
|
|
|
Related party transactions |
Key management compensation
2023 |
2022 |
|
Salaries and other short term employee benefits |
|
|
Summary of transactions with group companies
Summary of transactions with other related parties
KONG Company Limited
Notes to the Financial Statements
for the Year Ended 31 December 2023
Income and receivables from related parties
2023 |
Entities of common control |
Sale of goods |
|
Amounts receivable from related party |
|
|
2022 |
Entities of common control |
Sale of goods |
|
Amounts receivable from related party |
|
|
Expenditure with and payables to related parties
2023 |
Key management |
Amounts payable to related party |
|
|
2022 |
Key management |
Amounts payable to related party |
|
|
Parent and ultimate parent undertaking |
The company's immediate parent is