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Registered number: 03329074










KLT UTILITIES LIMITED










ANNUAL REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2024

 
KLT UTILITIES LIMITED
 
 
COMPANY INFORMATION


Directors
Mr R Taylor 
Mr M Harmer 
Mr J Gilbert 
Mrs S Parrott (appointed 15 September 2023)
Mrs J Taylor (appointed 15 September 2023)




Company secretary
Mrs J Taylor



Registered number
03329074



Registered office
6th Floor
2 London Wall Place

London

EC2Y 5AU




Independent auditors
MHA
Statutory Auditor

6th Floor

2 London Wall Place

London

EC2Y 5AU




Bankers
HSBC Bank Plc
73 High Street

Watford

Hertfordshire

WD17 2DS





 
KLT UTILITIES LIMITED
 

CONTENTS



Page
Strategic report
 
1 - 2
Directors' report
 
3 - 4
Independent auditors' report
 
5 - 7
Statement of comprehensive income
 
8
Balance sheet
 
9
Statement of changes in equity
 
10
Notes to the financial statements
 
11 - 25

 
KLT UTILITIES LIMITED
 
 
STRATEGIC REPORT
FOR THE YEAR ENDED 31 MARCH 2024

Introduction
 
The Directors present their strategic report for the Company, the strategy and business model for KLT Utilities Limited is as below.
The strategy of the business is to provide services to the Gas Distribution Networks and Independent Gas Transporters. These services include the replacement of gas mains and services, the installation of new gas mains and services, and individual connections to both domestic and non-domestic customers. We provide these services to our clients ensuring that our core values in safety, customer care, profitability and sustainability are delivered. 
The principal activity of the company was the replacement of gas pipes and the installation of new gas pipes and apparatus.

Business review
 
Revenue in year increased by 23% to £38,613,869 in 2024 from £31,464,887 in 2023. This increase is as a direct result of managing and controlling costs, and retaining Client Contracts. In reaction to this challenge, we committed to capital investments in Plant and Transport by purchasing two vacuum excavators, and additional support vehicles to support client contract requirements and our health and safety commitments. 
Gross margin in the period increased by 2.8% from 13.3% in 2023 to 16.1% in 2024. Net assets have increased by £1,898,893 in 2024. 
The Directors are confident the strategic improvements delivered over the last 12 months have now been embedded within the company, and the business remains in a steady position to maintain the improved profit margins thus providing a solid platform to build additional growth in the coming years.

Principal risks and uncertainties
 
The principal risks faced by the group would be as follows:
Health & Safety – Managing the safety of all our employees and sub-contractors remains our first priority and the business continues to focus on improving skills through training and experience, providing regular communications on incidents within the sector and providing assurance that our plant, transport, and equipment meet all industry requirements.
Carrying out works in the public highway continues to be more onerous as Local Authorities become more stringent in their approach to permit conditions and works durations, therefore increasing the risk of NRSWA fines and risk to the business.
The risk around the management of our plant & transport business including that of driver risk, plant operation and plant and transport maintenance are all recognised as continued risks to the Group.
The commercial expectations from clients to procure contracts on tighter margins continues to presents a risk to the Group.
The Group controls and manages its risks including those above using a comprehensive risk register and scheduled governance meetings both internally and externally.

Page 1

 
KLT UTILITIES LIMITED
 

STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024

Financial key performance indicators
 
The Group's key performance indicators are its turnover, gross profit, EBITDA and net profit. These are as follows for the last two years: 
 

2024
2023
Turnover
£38,613,869
£31,464,887
Gross Profit
£6,211,366
£4,195,540
EBITDA
£2,391,929
£598,180
Net Profit
£1,898,893
£444,225



This report was approved by the board and signed on its behalf.



Mr R Taylor
Director

Date: 15 August 2024
Page 2

 
KLT UTILITIES LIMITED
 
 
 
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 MARCH 2024

The directors present their report and the financial statements for the year ended 31 March 2024.

Directors' responsibilities statement

The directors are responsible for preparing the Strategic report, the Directors' 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 applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland'. Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the Company and of the profit or loss of the Company for that period.

 In preparing these financial statements, the directors are required to:


select suitable accounting policies for the Company's financial statements and then apply them consistently;

make judgments and accounting estimates that are reasonable and prudent;

prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Company will continue in business.

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the Company's transactions and disclose with reasonable accuracy at any time the financial position of the Company and to enable them to ensure that the financial statements comply with the Companies Act 2006They 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.

Principal activity

The company's principal activity of the company during the year was that of excavation of land and pipe laying.

Results and dividends

The profit for the year, after taxation, amounted to £1,898,893 (2023 - £444,225).

Dividends of £Nil (2023 - £Nil) were declared in the year.

Directors

The directors who served during the year were:

Mr R Taylor 
Mr M Harmer 
Mr J Gilbert 
Mrs S Parrott (appointed 15 September 2023)
Mrs J Taylor (appointed 15 September 2023)

Page 3

 
KLT UTILITIES LIMITED
 
 
 
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024

Future developments

The trading prospects for the company are positive after being successful in the award of a number of contracts with both Cadent and SGN. With the GIRs Accreditation we are also receiving small work orders and currently working on the HS2 Project.
The directors have decided to focus more on controlling costs and improving gross margin than higher revenues due to additional competitors, nature of contract awards and availability of skilled resources.

Qualifying third party indemnity provisions

Directors' liability and indemnity insurance was in force throughout the year to cover the directors and officers of
the company against actions brought against them in their personal capacities. Cover is not provided where the
individual has acted fraudulently or dishonestly.

Disclosure of information to auditors

Each of the persons who are directors at the time when this Directors' report is approved has confirmed that:
 
so far as the director is aware, there is no relevant audit information of which the Company's auditors are unaware, and

the director has taken all the steps that ought to have been taken as a director in order to be aware of any relevant audit information and to establish that the Company's auditors are aware of that information.

Auditors

The auditors, MHA, will be proposed for reappointment in accordance with section 485 of the Companies Act 2006.

This report was approved by the board and signed on its behalf.
 





Mr R Taylor
Director

Date: 15 August 2024
Page 4

 
KLT UTILITIES LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF KLT UTILITIES LIMITED
 

Opinion


We have audited the financial statements of KLT Utilities Limited (the 'Company') for the year ended 31 March 2024, which comprise the Statement of comprehensive income, the Balance sheet, the Statement of changes in equity and the related notes, including a summary of significant accounting policiesThe 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 March 2024 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 Auditors' 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 United Kingdom, including the Financial Reporting Council's Ethical Standard and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.


Conclusions relating to going concern


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


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


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


Page 5

 
KLT UTILITIES LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF KLT UTILITIES LIMITED (CONTINUED)


Other information


The other information comprises the information included in the Annual Report other than the financial statements and our Auditors' report thereon. The directors are responsible for the other information contained within the Annual ReportOur 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.


Opinion on other matters prescribed by the Companies Act 2006
 

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


the information given in the Strategic report and the Directors' report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
the Strategic report and the Directors' report have been prepared in accordance with applicable legal requirements.


Matters on which we are required to report by exception
 

In the light of the knowledge and understanding of the Company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic report or the Directors' report.


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


adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
the financial statements are not in agreement with the accounting records and returns; or
certain disclosures of 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 Directors' responsibilities statement set out on page 3, 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.


Page 6

 
KLT UTILITIES LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF KLT UTILITIES LIMITED (CONTINUED)


Auditors' 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 Auditors' 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:

•   Obtaining an understanding of the legal and regulatory frameworks that the company operates in.
•   Reviewing key correspondence with regulatory authorities.
•   Enquiry of management to identify any instances of non-compliance with laws and regulations.
•   Enquiry of management around actual and potential litigation and claims.
•   Enquiry of management to identify any instances of known or suspected instances of fraud.
•   Discussing and reviewing among the engagement team regarding how and where fraud might occur.
Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including
those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk
increases the more that compliance with a law or regulation is removed from the events and transactions
reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance.
The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves
intentional concealment, forgery, collusion, omission or misrepresentation.


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 Auditors' 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 2006Our 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 Auditors' 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.





Neil Stern FCA (Senior statutory auditor)
for and on behalf of
MHA
Statutory Auditor
London, United Kingdom
 
MHA is the trading name of MacIntyre Hudson LLP, a limited liability partnership in England and Wales (registered number OC312313)

19 August 2024
Page 7

 
KLT UTILITIES LIMITED
 
 
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 MARCH 2024

2024
2023
Note
£
£

  

Turnover
 4 
38,613,869
31,464,887

Cost of sales
  
(32,402,503)
(27,269,347)

Gross profit
  
6,211,366
4,195,540

Administrative expenses
  
(3,870,050)
(3,697,946)

Operating profit
 5 
2,341,316
497,594

Interest receivable and similar income
 9 
82,236
49,857

Interest payable and similar expenses
 10 
(42,109)
(85,320)

Profit before tax
  
2,381,443
462,131

Tax on profit
 11 
(482,550)
(17,906)

Profit for the financial year
  
1,898,893
444,225

There was no other comprehensive income for 2024 (2023:£NIL).

The notes on pages 11 to 25 form part of these financial statements.

Page 8

 
KLT UTILITIES LIMITED
REGISTERED NUMBER: 03329074

BALANCE SHEET
AS AT 31 MARCH 2024

As restated
2024
2023
Note
£
£

Fixed assets
  

Tangible assets
 12 
157,030
183,130

  
157,030
183,130

Current assets
  

Debtors: amounts falling due after more than one year
 13 
579,887
559,587

Debtors: amounts falling due within one year
 13 
6,712,157
5,831,933

Cash at bank and in hand
 14 
3,441,103
1,404,556

  
10,733,147
7,796,076

Creditors: amounts falling due within one year
 15 
(6,721,761)
(5,711,683)

Net current assets
  
 
 
4,011,386
 
 
2,084,393

Total assets less current liabilities
  
4,168,416
2,267,523

Provisions for liabilities
  

Other provisions
 17 
(503,500)
(501,500)

  
 
 
(503,500)
 
 
(501,500)

Net assets
  
3,664,916
1,766,023


Capital and reserves
  

Called up share capital 
 18 
10,000
10,000

Profit and loss account
 19 
3,654,916
1,756,023

  
3,664,916
1,766,023


The financial statements were approved and authorised for issue by the board and were signed on its behalf on 15 August 2024.




Mr R Taylor
Director

The notes on pages 11 to 25 form part of these financial statements.

Page 9

 
KLT UTILITIES LIMITED
 

STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 MARCH 2024


Called up share capital
Profit and loss account
Total equity

£
£
£


At 1 April 2022
10,000
1,311,798
1,321,798


Comprehensive income for the year

Profit for the year
-
444,225
444,225
Total comprehensive income for the year
-
444,225
444,225



At 1 April 2023
10,000
1,756,023
1,766,023


Comprehensive income for the year

Profit for the year
-
1,898,893
1,898,893
Total comprehensive income for the year
-
1,898,893
1,898,893


At 31 March 2024
10,000
3,654,916
3,664,916


The notes on pages 11 to 25 form part of these financial statements.

Page 10

 
KLT UTILITIES LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024

1.


General information

The entity is a private company, limited by shares, incorporated in England and Wales in the UK. The registered office is 6th Floor, 2 London Wall Place, London, EC2Y 5AU. The nature of the company's operations is excavation of land and pipe laying.

2.Accounting policies

 
2.1

Basis of preparation of financial statements

The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and the Companies Act 2006.

The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires management to exercise judgment in applying the Company's accounting policies (see note 3).

The financial statements are prepared in pounds sterling, the functional currency, rounded to the nearest £1.
The financial statements include a prior year adjustment in respect of the figures as at 31 March 2023. The figures for 31 March 2023 have therefore been restated, see note 20.

The following principal accounting policies have been applied:

 
2.2

Financial Reporting Standard 102 - reduced disclosure exemptions

The Company has taken advantage of the following disclosure exemptions in preparing these financial statements, as permitted by the FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland":
the requirements of Section 7 Statement of Cash Flows;
the requirements of Section 3 Financial Statement Presentation paragraph 3.17(d);
the requirements of Section 11 Financial Instruments paragraphs 11.42, 11.44 to 11.45, 11.47, 11.48(a)(iii), 11.48(a)(iv), 11.48(b) and 11.48(c);
the requirements of Section 12 Other Financial Instruments paragraphs 12.26 to 12.27, 12.29(a), 12.29(b) and 12.29A;
the requirements of Section 33 Related Party Disclosures paragraph 33.7.

This information is included in the consolidated financial statements of KLT Group of Companies Limited as at 31 March 2024 and these financial statements may be obtained from the registered office of the holding company..

Page 11

 
KLT UTILITIES LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024

2.Accounting policies (continued)

 
2.3

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:

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:
the amount of revenue can be measured reliably;
it is probable that the Company will receive the consideration due under the contract;
the stage of completion of the contract at the end of the reporting period can be measured reliably; and
the costs incurred and the costs to complete the contract can be measured reliably.

 
2.4

Operating leases: the Company as lessee

Rentals paid under operating leases are charged to profit or loss 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.

 
2.5

Interest income

Interest income is recognised in profit or loss using the effective interest method.

 
2.6

Finance costs

Finance costs are charged to profit or loss 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.

 
2.7

Borrowing costs

All borrowing costs are recognised in profit or loss in the year in which they are incurred.

Page 12

 
KLT UTILITIES LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024

2.Accounting policies (continued)

 
2.8

Pensions

Defined contribution pension plan

The Company operates a defined contribution pension 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 profit or loss 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.

 
2.9

Taxation

Tax is recognised in profit or loss except that a charge attributable to an item of income and expense recognised as other comprehensive income or to an item recognised directly in equity is also recognised in other comprehensive income or directly in equity respectively.

The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the balance sheet date in the countries where the Company operates and generates income.

Deferred tax balances are recognised in respect of all timing differences that have originated but not reversed by the balance sheet date, except that:
The recognition of deferred tax assets is limited to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits; and
Any deferred tax balances are reversed if and when all conditions for retaining associated tax allowances have been met.

Deferred tax balances are not recognised in respect of permanent differences except in respect of business combinations, when deferred tax is recognised on the differences between the fair values of assets acquired and the future tax deductions available for them and the differences between the fair values of liabilities acquired and the amount that will be assessed for tax. Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the balance sheet date.

 
2.10

Tangible fixed assets

Tangible fixed assets under the cost model are stated at historical cost less accumulated depreciation and any accumulated 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.

Page 13

 
KLT UTILITIES LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024

2.Accounting policies (continued)


2.10
Tangible fixed assets (continued)

Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, using the straight-line method.

Depreciation is provided on the following basis:

Plant and machinery
-
20%
Straight line
Fixtures and fittings
-
25%
Reducing balance

The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.

Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in profit or loss.

 
2.11

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.

 
2.12

Cash and cash equivalents

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.

 
2.13

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.

 
2.14

Provisions for liabilities

Provisions are recognised when an event has taken place that gives rise to a legal or constructive obligation, a transfer of economic benefits is probable and a reliable estimate can be made.
Provisions are measured as the best estimate of the amount required to settle the obligation, taking into account the related risks and uncertainties.
 
Increases in provisions are generally charged as an expense to profit or loss.

Page 14

 
KLT UTILITIES LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024

2.Accounting policies (continued)

 
2.15

Financial instruments

The Company has elected to apply the provisions of Section 11 “Basic Financial Instruments” of FRS 102 to all of its financial instruments.

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

Basic financial assets

Basic financial assets, which include trade and other receivables, cash and bank balances, are initially measured at their transaction price including transaction costs and are subsequently carried at their amortised cost using the effective interest method, less any provision for impairment, 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.

Discounting is omitted where the effect of discounting is immaterial. The Company's cash and cash equivalents, trade and most other receivables due with the operating cycle fall into this category of financial instruments.

Financial liabilities

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

Basic financial liabilities, which include trade and other payables, bank loans and other loans are initially measured at their transaction price after transaction costs. When this constitutes a financing transaction, whereby the debt instrument is measured at the present value of the future receipts discounted at a market rate of interest. Discounting is omitted where the effect of discounting is immaterial.

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

Trade payables are obligations to pay for goods and services that have been acquired in the ordinary course of business from suppliers. Trade payables are classified as current liabilities if the payment is due within one year. If not, they represent non-current liabilities. Trade payables are initially recognised at their transaction price and subsequently are measured at amortised cost using the effective interest method. Discounting is omitted where the effect of discounting is immaterial.


3.


Judgments in applying accounting policies and key sources of estimation uncertainty

The directors consider that the critical accounting policies where judgements and estimations have been applied relate to the tangible asset lives, in particular the useful economic life and residual values of plant and machinery, the recoverability of other debtors and the accuracy of provisions. The directors have concluded that the asset values and residual values are appropriate, recoverability of debtors is fairly stated and that provisions are accurate.

Page 15

 
KLT UTILITIES LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024

4.


Turnover

An analysis of turnover by class of business is as follows:


2024
2023
£
£

Excavation of land and pipe laying
38,613,869
31,464,887

38,613,869
31,464,887


All turnover arose within the United Kingdom.


5.


Operating profit

The operating profit is stated after charging:

2024
2023
£
£

Depreciation
50,613
90,585

Operating lease rentals
278,552
231,140


6.


Auditors' remuneration

2024
2023
£
£

Fees payable to the Company's auditors for the audit of the Company's financial statements
22,000
18,000

The Company has taken advantage of the exemption not to disclose amounts paid for non-audit services as these are disclosed in the consolidated accounts of the parent Company.

Page 16

 
KLT UTILITIES LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024

7.


Employees

Staff costs, including directors' remuneration, were as follows:


2024
2023
£
£

Wages and salaries
2,784,981
1,899,195

Social security costs
299,454
223,577

Cost of defined contribution pension scheme
33,827
30,508

3,118,262
2,153,280


The average monthly number of employees, including the directors, during the year was as follows:


        2024
        2023
            No.
            No.







Operating staff
9
10



Administrative staff
27
21

36
31


8.


Directors' remuneration

2024
2023
£
£

Directors' emoluments
753,750
477,499

753,750
477,499


The highest paid director received remuneration of £399,500 (2023 - £399,500).

The directors are considered to be the only members of key management personnel of the company. 
There are no retirement benefits accruing under defined contribution pension schemes for any directors.


9.


Interest receivable

2024
2023
£
£


Other interest receivable
82,236
49,857

82,236
49,857

Page 17

 
KLT UTILITIES LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024

10.


Interest payable and similar expenses

2024
2023
£
£


Bank interest payable
42,109
61,237

Other loan interest payable
-
23,250

Finance leases and hire purchase contracts
-
833

42,109
85,320


11.


Taxation


2024
2023
£
£

Corporation tax


Current tax on profits for the year
521,134
38,584

Adjustments in respect of previous periods
(38,584)
(20,678)


482,550
17,906


Total current tax
482,550
17,906


Taxation on profit on ordinary activities
482,550
17,906
Page 18

 
KLT UTILITIES LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024
 
11.Taxation (continued)


Factors affecting tax charge for the year

The tax assessed for the year is lower than (2023 - lower than) the standard rate of corporation tax in the UK of 25% (2023 - 19%). The differences are explained below:

2024
2023
£
£


Profit on ordinary activities before tax
2,381,443
462,131


Profit on ordinary activities multiplied by standard rate of corporation tax in the UK of 25% (2023 - 19%)
595,361
87,805

Effects of:


Expenses not deductible for tax purposes, other than goodwill amortisation and impairment
21,274
36,136

Depreciation in excess of capital allowances
3,449
11,033

Adjustments to tax charge in respect of prior periods
(38,584)
(20,648)

Group relief
(98,950)
(96,420)

Total tax charge for the year
482,550
17,906


Factors that may affect future tax charges

On 1 April 2023 the corporation tax rate increased to 25%.

Page 19

 
KLT UTILITIES LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024

12.


Tangible fixed assets





Plant and machinery
Fixtures and fittings
Total

£
£
£



Cost or valuation


At 1 April 2023
369,862
489,886
859,748


Additions
1,182
23,331
24,513



At 31 March 2024

371,044
513,217
884,261



Depreciation


At 1 April 2023
338,709
337,909
676,618


Charge for the year
12,045
38,568
50,613



At 31 March 2024

350,754
376,477
727,231



Net book value



At 31 March 2024
20,290
136,740
157,030



At 31 March 2023
31,153
151,977
183,130

Page 20

 
KLT UTILITIES LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024

13.


Debtors

As restated
2024
2023
£
£

Due after more than one year

Other debtors
579,887
559,587

579,887
559,587


As restated
2024
2023
£
£

Due within one year

Trade debtors
907,694
1,208,088

Amounts owed by group undertakings
53,778
7,926

Other debtors
4,327,158
2,994,775

Prepayments and accrued income
1,423,527
1,621,144

6,712,157
5,831,933



14.


Cash and cash equivalents

2024
2023
£
£

Cash at bank and in hand
3,441,103
1,404,556

3,441,103
1,404,556


Page 21

 
KLT UTILITIES LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024

15.


Creditors: Amounts falling due within one year

2024
2023
£
£

Bank loans
-
312,500

Trade creditors
2,506,553
2,292,016

Amounts owed to group undertakings
490,000
490,000

Corporation tax
521,134
38,584

Other taxation and social security
1,291,455
1,043,346

Other creditors
299,635
238,522

Accruals and deferred income
1,612,984
1,296,715

6,721,761
5,711,683


Bank overdrafts and bank loans of £Nil (2023 - £312,500) are secured on the assets of the company. 
HSBC Bank PLC has a debenture created 16 October 2014 secured on all of the present and future assets of the group.


16.


Loans


Analysis of the maturity of loans is given below:


2024
2023
£
£

Amounts falling due within one year

Bank loans
-
312,500

-
312,500


Page 22

 
KLT UTILITIES LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024

17.


Provisions





Provisions

£





At 1 April 2023
501,500


Charged to profit or loss
115,500


Utilised in year
(113,500)



At 31 March 2024
503,500

The provision as at 31 March 2024 relates to the requirement to demobilise mains replacement works which took place during the year. The timing of the payment is unknown, but is expected to be paid over the next five years.


18.


Share capital

2024
2023
£
£
Allotted, called up and fully paid



10,000 (2023 - 10,000) Ordinary shares of £1.00 each
10,000
10,000



19.


Reserves

Profit and loss account

The Profit and Loss account is represented by retained earnings. Changes in reserves are set out in the Statement of Changes in Equity.


20.


Prior year adjustment

The financial statements of KLT Utilities Limited have been restated to reflect the reclassification of a debtor from due within one year to due over one year. The prior year adjustment has had no impact on either the net assets as at 31 March 2023 or the profits generated in the year.


21.


Pension commitments

The company operates a defined contribution pension scheme. The assets of the scheme are held separately from those of the company in an independently administered fund. The pension cost charge represents contributions payable by the company to the fund and amounted to £33,827 (2023 - £30,508).

Page 23

 
KLT UTILITIES LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024

22.


Commitments under operating leases

At 31 March 2024 the Company had future minimum lease payments due under non-cancellable operating leases for each of the following periods:

2024
2023
£
£


Not later than 1 year
439,360
276,360

Later than 1 year and not later than 5 years
772,740
958,320

1,212,100
1,234,680


23.


Transactions with directors

During the year the company made advances totalling £646,210 (2023 - £257,754) to Mr R Taylor, the director, and received credits of £708,916 (2023 - £137,145). Interest of £50,073 (2023 - £46,697) has been charged at commercial rates on overdrawn balances. As at 31 March 2024, Mr R Taylor owed the company £2,230,098 (2023 - £2,242,731). The loan is unsecured and repayable on demand.
During the year the company made advances totalling £2,132,907 (2023 - £408,546) to Mrs J Taylor, a director, and received credits of £1,253,523 (2023 - £261,500). Interest of £24,399 (2023 - £3,160) has been charged at commercial rates on overdrawn balances. As at 31 March 2024, Mrs J Taylor owed the company £1,054,239 (2023 - £150,456). The loan is unsecured and repayable on demand.
During the year the company made advances totalling £255,000 (2023 - £Nil) to Mr J Gilbert, a director, and received credits of £Nil (2023 - £Nil). Interest of £3,882 (2023 - £Nil) has been charged at commercial rates on overdrawn balances. As at 31 March 2024, Mr J Gilbert owed the company £258,882 (2023 - £Nil). The loan is unsecured and repayable on demand.
During the year the company made advances totalling £255,000 (2023 - £Nil) to Mr M Harmer, a director, and received credits of £Nil (2023 - £Nil). Interest of £3,882 (2023 - £Nil) has been charged at commercial rates on overdrawn balances. As at 31 March 2024, Mr M Harmer owed the company £258,882 (2023 - £Nil). The loan is unsecured and repayable on demand.


24.


Related party transactions

During the year, KLT Management Services LLP, a limited liability partnership of which the director, Mr R Taylor, is a designated member, provided services of £Nil (2023 - £610,360) to the company. At the balance sheet date, an amount of £Nil (2023 - £Nil) was owed from KLT Management Services LLP. All transactions were on commercial terms. 
During the year, Utility Consultancy Services Limited, a limited company of which the director, Mr M Harmer, is also a director, provided services of £Nil (2023 - £113,207) to the company. At the balance sheet date, an amount of £Nil (2023 - £Nil) was due to Utility Consultancy Services Limited. All transactions were on commercial terms.

Page 24

 
KLT UTILITIES LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024

25.


Parent entity and controlling party

The parent company is KLT Group of Companies Limited with a registered office of 6th Floor 2 London Wall Place, London, United Kingdom, EC2Y 5AU. The company was under the control of the director, Mrs J Taylor, as at 31 March 2024 as a result of her control of the parent company, KLT Group of Companies Limited, a company incorporated in England and Wales.
The largest and smallest groups in which the results of the company are consolidated are those headed by KLT Group of Companies Limited. 
 
Page 25