Company Registration No. 03629720 (England and Wales)
GENUS WATER LIMITED
FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
PAGES FOR FILING WITH REGISTRAR
GENUS WATER LIMITED
CONTENTS
Page
Balance sheet
1
Notes to the financial statements
2 - 9
GENUS WATER LIMITED
BALANCE SHEET
AS AT
31 DECEMBER 2023
31 December 2023
- 1 -
2023
2022
Notes
£
£
£
£
Fixed assets
Tangible assets
3
89,492
119,003
Current assets
Stocks
4
572,468
691,984
Debtors
5
547,477
526,498
Cash at bank and in hand
468,096
260,370
1,588,041
1,478,852
Creditors: amounts falling due within one year
6
(472,555)
(609,493)
Net current assets
1,115,486
869,359
Total assets less current liabilities
1,204,978
988,362
Creditors: amounts falling due after more than one year
7
(3,074)
Provisions for liabilities
8
(16,530)
(24,013)
Net assets
1,188,448
961,275
Capital and reserves
Called up share capital
10
100
100
Profit and loss reserves
1,188,348
961,175
Total equity
1,188,448
961,275
The directors of the company have elected not to include a copy of the profit and loss account within the financial statements.true
These financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime.
The financial statements were approved by the board of directors and authorised for issue on 30 July 2024 and are signed on its behalf by:
L D Blunden
Director
Company Registration No. 03629720
The notes on pages 9 to 15 form part of these financial statements.
GENUS WATER LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
- 2 -
1
Accounting policies
Company information
Genus Water Limited is a private company limited by shares incorporated in England and Wales. The registered office is Bridge House Park Gate Business Centre, Park Gate Chandlers Way, Southampton, Hampshire, England, SO31 1FQ.
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 as applicable to companies subject to the small companies regime. The disclosure requirements of section 1A of FRS 102 have been applied other than where additional disclosure is required to show a true and fair view.
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.
1.2
Going concern
On 30 April 2024, Kinetico UK Limited purchased the trade and assets of Genus Water Limited for true£3,439,832. Both Kinetico UK Limited and Genus Water Limited are wholly owned subsidiaries of Kinetico UK Holdings Limited.
Following completion of the purchase of the trade and assets by Kinetico UK Limited, Genus Water Limited has ceased to trade as a supplier and installer of water purification systems and its trade and operations continued, seamlessly, within Kinetico UK Limited. In due course, the directors intend to wind up the company. Accordingly, the financial statements have been prepared on a basis other than going concern.
1.3
Reporting period
The current period relates to the year ended 31 December 2023. The comparative figures relates to 18 months from 1 July 2021 to 31 December 2022.
1.4
Revenue
Revenue is recognised to the extent that it is probable that the economic benefits will flow to the company and the revenue can be reliably measured. Revenue is measured as the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. The following criteria must also be met before revenue is recognised:
Sale of goods
Revenue from the sale of goods is recognised when all of the following conditions are satisfied:
GENUS WATER LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 3 -
Rendering of services
Revenue from a contract to provide services is recognised in the period in which the services are provided in accordance with the stage of completion of the contract when all of the following conditions are satisfied:
1.5
Tangible fixed assets
Tangible fixed assets are initially measured at cost and subsequently measured at cost, net of depreciation and any impairment losses. Historical cost includes expenditure that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management.
The carrying value of tangible fixed assets is reviewed for impairment if events or changes in circumstances indicate the carrying value may not be recoverable.
Depreciation is recognised so as to write off the cost of assets less their residual values over their useful lives on the following bases:
Improvements to property
25% on reducing balance
Plant and equipment
25% on reducing balance
Fixtures and fittings
25% on reducing balance
Motor vehicles
25% on reducing balance
The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is credited or charged to profit or loss.
1.6
Stocks
Stocks are stated at the lower of cost and net realisable value, being the estimated selling price less costs to complete and sell. Cost is based on the cost of purchase on a first in, first out basis. Work in progress and finished goods include labour and attributable overheads.
At each reporting date, stocks are assessed for impairment. If stock is impaired, the carrying amount is reduced to its selling price less costs to complete and sell. The impairment loss is recognised immediately in profit and loss.
1.7
Cash at bank and in hands
Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours. Cash equivalents are highly liquid investments that mature in no more than three months from the date of acquisition and that are readily convertible to known amounts of cash with insignificant risk of change in value.
GENUS WATER LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 4 -
1.8
Financial instruments
The Company only enters into basic financial instrument transactions that result in the recognition of financial assets and liabilities like trade and other debtors and creditors, loans from banks and other third parties, loans to related parties and investments in ordinary shares.
Debt instruments (other than those wholly repayable or receivable within one year), including loans and other accounts receivable and payable, are initially measured at present value of the future cash flows and subsequently at amortised cost using the effective interest method. Debt instruments that are payable or receivable within one year, typically trade debtors and creditors, are measured, initially and subsequently, at the undiscounted amount of the cash or other consideration expected to be paid or received. However, if the arrangements of a short-term instrument constitute a financing transaction, like the payment of a trade debt deferred beyond normal business terms or in case of an out-right short-term loan that is not at market rate, the financial asset or liability is measured, initially at the present value of future cash flows discounted at a market rate of interest for a similar debt instrument and subsequently at amortised cost, unless it qualifies as a loan from a director in the case of a small company, or a public benefit entity concessionary loan.
Financial assets that are measured at cost and amortised cost are assessed at the end of each reporting period for objective evidence of impairment. If objective evidence of impairment is found, an impairment loss is recognised in the Statement of Income and Retained Earnings.
For financial assets measured at amortised cost, the impairment loss is measured as the difference between an asset's carrying amount and the present value of estimated cash flows discounted at the asset's original effective interest rate. If a financial asset has a variable interest rate, the discount rate for measuring any impairment loss is the current effective interest rate determined under the contract.
For financial assets measured at cost less impairment, the impairment loss is measured as the difference between an asset's carrying amount and best estimate of the recoverable amount, which is an approximation of the amount that the Company would receive for the asset if it were to be sold at the reporting date.
Financial assets and liabilities are offset and the net amount reported in the Statement of Financial Position when there is an 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.
Debtors
Short term debtors are measured at transaction price, less any impairment. Loans receivable are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method, less any impairment.
Creditors
Short term creditors are measured at the transaction price. Other financial liabilities, including bank loans, are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method.
1.9
Dividends
Equity dividends are recognised when they become legally payable. Interim equity dividends are recognised when paid. Final equity dividends are recognised when approved by the shareholders.
1.10
Taxation
The tax expense represents the sum of the tax currently payable and deferred tax.
Current tax
The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.
GENUS WATER LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 5 -
Deferred tax
Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.
The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset when the company has a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.
1.11
Provisions
Provisions are made where an event has taken place that gives the Company a legal or constructive obligation that probably requires settlement by a transfer of economic benefit, and a reliable estimate can be made of the amount of the obligation.
Provisions are charged as an expense to the Statement of Income and Retained Earnings in the year that the Company becomes aware of the obligation, and are measured at the best estimate at the Statement of Financial Position date of the expenditure required to settle the obligation, taking into account relevant risks and uncertainties.
When payments are eventually made, they are charged to the provision carried in the Statement of Financial Position.
1.12
Pensions
Defined contribution pension plan
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 payment obligations.
The contributions are recognised as an expense in the Statement of Income and Retained Earnings when they fall due. Amounts not paid are shown in accruals as a liability in the Statement of Financial Position. The assets of the plan are held separately from the Company in independently administered funds.
1.13
Finance costs
Finance costs are charged to the Statement of Income and Retained Earnings over the term of the debt using the effective interest method so that the amount charged is at a constant rate on the carrying amount. Issue costs are initially recognised as a reduction in the proceeds of the associated capital instrument.
1.14
Foreign exchange
Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation in the period are included in profit or loss.
1.15
Operating leases: the Company as lessee
Rentals paid under operating leases are charged to the Statement of Income and Retained Earnings on a straight line basis over the lease term.
Benefits received and receivable as an incentive to sign an operating lease are recognised on a straight line basis over the lease term, unless another systematic basis is representative of the time pattern of the lessee's benefit from the use of the leased asset
GENUS WATER LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 6 -
2
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2023
2022
Number
Number
Total
23
27
3
Tangible fixed assets
Improvements to property
Plant and equipment
Fixtures and fittings
Motor vehicles
Total
£
£
£
£
£
Cost
At 1 January 2023
18,126
29,440
31,595
133,259
212,420
Additions
3,388
7,082
10,470
Disposals
(17,642)
(17,642)
At 31 December 2023
18,126
29,440
34,983
122,699
205,248
Depreciation and impairment
At 1 January 2023
13,420
10,265
6,385
63,347
93,417
Depreciation charged in the year
1,177
4,794
6,796
16,779
29,546
Eliminated in respect of disposals
(7,207)
(7,207)
At 31 December 2023
14,597
15,059
13,181
72,919
115,756
Carrying amount
At 31 December 2023
3,529
14,381
21,802
49,780
89,492
At 31 December 2022
4,706
19,175
25,210
69,912
119,003
4
Stocks
2023
2022
£
£
Stocks
572,468
691,984
GENUS WATER LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 7 -
5
Debtors
2023
2022
Amounts falling due within one year:
£
£
Trade debtors
461,576
489,787
Corporation tax recoverable
30,067
Amounts owed by group undertakings
64
Other debtors
606
628
Prepayments and accrued income
55,164
36,083
547,477
526,498
6
Creditors: amounts falling due within one year
2023
2022
£
£
Obligations under finance leases
1,847
8,298
Trade creditors
155,230
219,677
Amounts owed to group undertakings
79,391
113,378
Corporation tax
75,666
Other taxation and social security
149,185
110,328
Other creditors
16,741
5,046
Accruals and deferred income
70,161
77,100
472,555
609,493
Amounts owed to group undertakings are interest free and repayable on demand.
7
Creditors: amounts falling due after more than one year
2023
2022
£
£
Obligations under finance leases
3,074
8
Provisions for liabilities
2023
2022
£
£
Deferred tax liabilities
9
16,530
24,013
GENUS WATER LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 8 -
9
Deferred taxation
The following are the major deferred tax liabilities and assets recognised by the company and movements thereon:
Liabilities
Liabilities
2023
2022
Balances:
£
£
Accelerated capital allowances
16,981
24,013
Short term timing differences
(451)
-
16,530
24,013
2023
Movements in the year:
£
Liability at 1 January 2023
24,013
Credit to profit or loss
(7,483)
Liability at 31 December 2023
16,530
10
Called up share capital
2023
2022
2023
2022
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
100
100
100
100
11
Audit report information
As the income statement has been omitted from the filing copy of the financial statements, the following information in relation to the audit report on the statutory financial statements is provided in accordance with s444(5B) of the Companies Act 2006:
The auditor's report was unqualified.
The senior statutory auditor was Jeremy Cooper.
Emphasis of matter – Financial statements prepared on a basis other than going concern
We draw attention to Note 1.2 to the financial statements which explains that the directors intend to liquidate the company and therefore do not consider it to be appropriate to adopt the going concern basis of accounting in preparing the financial statements. Accordingly the financial statements have been prepared on a basis other than going concern as described in Note 1.2. Our opinion is not modified in respect of this matter.
The auditor was Crowe U.K. LLP.
12
Financial commitments, guarantees and contingent liabilities
The company had total guarantees and commitments in relation to operating leases at the balance sheet date of £312,525 (2022: £332,935).
GENUS WATER LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 9 -
13
Related party transactions
Dividends of £Nil (2022: £18,821) were paid in the period to all the shareholders who were also directors of the company prior to its acquisition by Kinetico UK Holdings Limited in February 2022.
14
Controlling party
The smallest group consolidation to include the Company is Kinetico Incorporated, a company registered in the United States of America (accounts are available at the company's registered address: 10845 Kinsman Road, Newbury, OH 44065, USA).
The company's immediate parent company is Kinetico UK Holdings Limited.
15
Subsequent events
On 30 April 2024, Kinetico UK Limited purchased the trade and assets of Genus Water Limited for £3,439,832. Both Kinetico UK Limited and Genus Water Limited are wholly owned subsidiaries of Kinetico UK Holdings Limited.