Company registration number 11739441 (England and Wales)
KLIPSPRINGER HOLDINGS LIMITED (CONSOLIDATED)
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
KLIPSPRINGER HOLDINGS LIMITED (CONSOLIDATED)
COMPANY INFORMATION
Directors
Mr J M Carlyon
Mrs E J Carlyon
Mr J J Carlyon
Mr T A Carlyon
Company number
11739441
Registered office
Rynor House
Farthing Road
Ipswich
IP1 5AP
Auditor
Benee Consulting Limited
48 Durrell Drive
Rugby
Warwickshire
CV22 7GW
Accountant
Oldfield Advisory LLP
Santis House
Curriers Close
Coventry
CV4 8AW
KLIPSPRINGER HOLDINGS LIMITED (CONSOLIDATED)
CONTENTS
Page
Strategic report
1 - 2
Directors' report
3 - 4
Directors' responsibilities statement
5
Independent auditor's report
6 - 9
Profit and loss account
10
Group statement of comprehensive income
11
Group balance sheet
12
Company balance sheet
13
Group statement of changes in equity
14
Company statement of changes in equity
15
Group statement of cash flows
16
Company statement of cash flows
17
Notes to the financial statements
18 - 36
KLIPSPRINGER HOLDINGS LIMITED (CONSOLIDATED)
STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 1 -

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

Principal activities

The principal activity of the group continued to be that of supplying specialist safety and compliance products and services to the food and beverage industry.

Review of the business

Business environment

The main sector the group operates in is the food and beverage sector. Customers rely on a secure and efficient supply chain and the group has a long established and stable supply chain with key suppliers across the UK and Europe.

 

There have been no specific negative impacts on the supply chain during the financial year and the group is continually working with its suppliers to ensure this remains the case in the short, medium and long term.

 

The group's three-year plan for growth focuses upon excelling in delivering solutions to customers utilising its product range, by region, across the UK and Europe. The business monitors targets against the three-year plan ensuring that it identifies key detractors to enable it to manage any risks and uncertainties that have the potential to affect the achievement of its targets.

 

Strategy

As part of a family-controlled group, the directors have strong values and hold themselves to the highest standards. This is reflected in the group's values which include: care, competence and focus.

 

The success and longevity of the business is built upon revenue growth, profit growth, sustainable cash flow and debtor management. To ensure the continued success of the business, management regularly evaluate and monitor KPIs and take appropriate remedial actions.

 

During the year ended 31 December 2023 the group's parent undertaking has invested in a new premises which will provide state-of-the-art production and warehouse facilities to support the continuing demands of the group. This is expected to become operational in September 2024. The directors consider this an investment in meeting the demands of both existing and future customers whilst supporting staff in continuing to fulfil the volume, and high standards of quality, that customers expect.

 

Principal risks and uncertainties

Risk acceptance and risk management is continually monitored by means of a framework of policies, procedures and internal controls. All such policies and procedures are overseen by the board of directors and senior management and are constantly under review to comply with statutory regulations and best practice.

 

The principal risks to the business are inflation and supply chain uncertainty due to global unrest. The group continues to monitor inflation and the effect this has on the cost of incoming goods and overhead costs. The group concentrates the bulk of their sourcing of products and materials from the UK and Europe to minimise supply chain challenges.

 

Following the outbreak of war in Ukraine, in February 2022, the group carried out a review of its supply chain and client base to assess and manage impacts on various stakeholder groups. The group has identified no significant exposure to Ukraine or Russia through its operations but will continue to monitor escalating energy prices and the potential for further impact on supply chain costs more generally.

 

In the wider macro environment shortages of resources, and skilled staff at all levels, is constraining all sectors of industry. Resource planning and talent reviews ensure the group can build the pipeline of talent it needs to meet its business requirements. A robust talent acquisition process, with line managers trained to make the best hiring decisions and on boarding processes, ensures new starters are integrated into the business effectively.

KLIPSPRINGER HOLDINGS LIMITED (CONSOLIDATED)
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 2 -
Principal risks and uncertainties

Policies and procedures

Senior management are responsible for the Integrated Management System which they are committed to reviewing monthly ensuring that particular focus is given to driving continuing improvements to achieve scalable processes for future growth.

 

In the food sector, standards are high, markets are demanding and the margin for error is non-existent. The group’s rigorous commitment to compliance and continuous improvement is underpinned by external accreditation including UKAS, ISO 9001 and an ongoing BRCGS partnership.

 

The groups approach to managing liquidity and credit risk are provided in the financial instrument section of the directors report.

Development and performance

As anticipated by the directors, sales for 2023 were stronger than in 2022 and grew by 11.9%. The gross profit margin and operating profit percentages have remained consistent in 2023 when compared to 2022.

 

The directors are confident that the company's three year plan has enabled the business to retain a strong financial position and together with the dedication of its staff, new premises, and an accountable leadership team, will successfully deliver the company's objectives for 2024.

Key performance indicators

The directors were pleased to report a group operating profit of 29.5% for the year (2022 – 33.6%), which continues a track record of strong performance.

 

At the year end the group had shareholders funds of £11,713,393 (2022 - £10,642,493). The directors believe the group's position to be satisfactory, especially as the company's current assets exceed its current liabilities by £6,929,676 (2022 - £9,764,704), resulting in a strong current ratio, at the end of the year, of 2.75 (2022 - 4.95). The reduction in the current ratio relates primarily to the acquisition of the group's new premises during 2023. This has reduced current assets, but correspondingly increased fixed assets.

Other performance indicators

Client satisfaction is a key non-financial indicator. NPI (net promotor indicator) feedback is formally requested from clients, usually upon delivery of goods.

 

Future developments

The company continues to invest in product development conformance, undertaking research and development into both new and existing products and their application methodologies.

On behalf of the board

Mr T A Carlyon
Director
23 August 2024
KLIPSPRINGER HOLDINGS LIMITED (CONSOLIDATED)
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 3 -

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

Results and dividends

The results for the year are set out on page 10.

Ordinary dividends were paid amounting to £2,279,460. The directors do not recommend payment of a further dividend.

No preference dividends were paid. The directors do not recommend payment of a final dividend.

Directors

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

Mr J M Carlyon
Mrs E J Carlyon
Mr J J Carlyon
Mr T A Carlyon
Financial instruments

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

Investments of cash surpluses, borrowings and derivative instruments are made through banks and companies which must fulfil credit rating criteria approved by the Board.

 

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

Post reporting date events

During the year ended 31 December 2023 the company invested in a new premises which will provide state-of-the-art production and warehouse facilities to support the continuing demands of the company and its subsidiary. This is expected to become operational in September 2024 and the sale of company's current premises, at Farthing Road, is also expected to complete in September 2024. The company's new premises are located at: Foxtail House, Foxtail Road, Ransomes Industrial Estate, Ipswich, Suffolk, IP3 9RX and this will become the company's registered office in due course.

Future developments

Details of future developments are given in the Strategic Report.

Auditor

The auditor, , is deemed to be reappointed under section 487(2) of the Companies Act 2006.

Statement of disclosure to auditor

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

Medium-sized companies exemption

This report has been prepared in accordance with the provisions applicable to companies entitled to the medium-sized companies exemption.

KLIPSPRINGER HOLDINGS LIMITED (CONSOLIDATED)
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 4 -
On behalf of the board
Mr T A Carlyon
Director
23 August 2024
KLIPSPRINGER HOLDINGS LIMITED (CONSOLIDATED)
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 5 -

The directors are responsible for preparing the Annual Report and the financial statements in accordance with applicable law and regulations.

 

Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the group and company, and of the profit or loss of the group for that period. In preparing these financial statements, the directors are required to:

 

 

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the group’s and company’s transactions and disclose with reasonable accuracy at any time the financial position of the group and company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the group and company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

KLIPSPRINGER HOLDINGS LIMITED (CONSOLIDATED)
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF KLIPSPRINGER HOLDINGS LIMITED (CONSOLIDATED)
- 6 -

Qualified Opinion on the financial statements

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

In our opinion, except for the effects of the matter described in the Basis for Qualified Opinion paragraph, the financial statements:

Basis for qualified opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the group and parent company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion except for the evidence relating to stock. We were not appointed as auditor of the group until after 31 December 2022 and thus did not observe the counting of physical stocks and we were unable to satisfy ourselves by alternative means, or by using other audit procedures, concerning the stock quantities held at 31 December 2022, valued at £1,509,944, and which are included in cost of sales during the year ended 31 December 2023. Consequently we were unable to determine whether any adjustment to this amount was necessary.

Conclusions relating to going concern

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

 

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

 

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

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

Other information

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

 

As described in the basis for qualified opinion section of our report, we were unable to satisfy ourselves concerning the stock quantities of £1,509,944 held at 31 December 2022. We have concluded that where the other information refers to the stock balance or related balances such as cost of sales, it may be materially misstated for the same reason.

Qualified opinions on other matters prescribed by the Companies Act 2006

We were not appointed as auditor of the company until after 31 December 2022 and thus did not observe the counting of physical stocks for the year ended 31 December 2022. We were unable to satisfy ourselves by alternative means concerning the stock quantities acquired at 31 December 2022 of £1,509,944 by using other audit procedures. Consequently we were unable to determine whether any adjustment to this amount was necessary. In addition, were any adjustment to this stock balance required, the strategic report would also need to be amended.

 

Except for the possible effects of the matter described in the basis for qualified opinion section of our report, in our opinion, based on the work undertaken in the course of the audit:

 

 

Matters on which we are required to report by exception

Except for the matter described in the basis for qualified opinion section of our report, 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.

In respect solely of the limitation on our work relating to stock, described above:

 

 

 

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:

 

 

 

KLIPSPRINGER HOLDINGS LIMITED (CONSOLIDATED)
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF KLIPSPRINGER HOLDINGS LIMITED (CONSOLIDATED)
- 8 -
Responsibilities of directors

As explained more fully in the directors' responsibilities statement, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the directors are responsible for assessing the parent company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the parent company or to cease operations, or have no realistic alternative but to do so.

Auditor's responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

 

A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.

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

Extent to which the audit was considered capable of detecting irregularities, including fraud

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above and on the Financial Reporting Council’s website, to detect material misstatements in respect of irregularities, including fraud.

 

We obtain and update our understanding of the entity, its activities, its control environment, and likely future developments, including in relation to the legal and regulatory framework applicable and how the entity is complying with that framework. Based on this understanding, we identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. This includes consideration of the risk of acts by the entity that were contrary to applicable laws and regulations, including fraud.

In response to the risk of irregularities and non-compliance with laws and regulations, including fraud, we designed procedures which included:

 

 

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 of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.

KLIPSPRINGER HOLDINGS LIMITED (CONSOLIDATED)
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF KLIPSPRINGER HOLDINGS LIMITED (CONSOLIDATED)
- 9 -

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.

Sarah Flint BSc FCA (Senior Statutory Auditor)
For and on behalf of Benee Consulting Limited
23 August 2024
Chartered Accountants
Statutory Auditor
48 Durrell Drive
Rugby
Warwickshire
CV22 7GW
KLIPSPRINGER HOLDINGS LIMITED (CONSOLIDATED)
GROUP PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 10 -
2023
2022
Notes
£
£
Turnover
3
14,376,092
12,848,792
Cost of sales
(6,848,988)
(6,136,568)
Gross profit
7,527,104
6,712,224
Administrative expenses
(3,282,402)
(2,393,799)
Operating profit
4
4,244,702
4,318,425
Interest receivable and similar income
7
147,823
17,201
Interest payable and similar expenses
8
-
0
(1,531)
Profit before taxation
4,392,525
4,334,095
Tax on profit
9
(1,042,167)
(824,966)
Profit for the financial year
22
3,350,358
3,509,129
Profit for the financial year is all attributable to the owners of the parent company.
KLIPSPRINGER HOLDINGS LIMITED (CONSOLIDATED)
GROUP STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2023
- 11 -
2023
2022
£
£
Profit for the year
3,350,358
3,509,129
Other comprehensive income
-
-
Total comprehensive income for the year
3,350,358
3,509,129
Total comprehensive income for the year is all attributable to the owners of the parent company.
KLIPSPRINGER HOLDINGS LIMITED (CONSOLIDATED)
GROUP BALANCE SHEET
AS AT
31 DECEMBER 2023
31 December 2023
- 12 -
2023
2022
Notes
£
£
£
£
Fixed assets
Intangible assets
11
19,414
-
0
Tangible assets
12
4,851,868
894,232
4,871,282
894,232
Current assets
Stocks
15
1,601,564
1,509,944
Debtors
16
3,027,653
2,386,363
Cash at bank and in hand
6,260,994
8,337,976
10,890,211
12,234,283
Creditors: amounts falling due within one year
17
(3,960,535)
(2,469,579)
Net current assets
6,929,676
9,764,704
Total assets less current liabilities
11,800,958
10,658,936
Provisions for liabilities
Deferred tax liability
19
87,565
16,443
(87,565)
(16,443)
Net assets
11,713,393
10,642,493
Capital and reserves
Called up share capital
21
1,101,002
1,101,000
Capital redemption reserve
22
900,000
900,000
Profit and loss reserves
22
9,712,391
8,641,493
Total equity
11,713,393
10,642,493

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

The financial statements were approved by the board of directors and authorised for issue on 23 August 2024 and are signed on its behalf by:
23 August 2024
Mr T A Carlyon
Director
Company registration number 11739441 (England and Wales)
KLIPSPRINGER HOLDINGS LIMITED (CONSOLIDATED)
COMPANY BALANCE SHEET
AS AT 31 DECEMBER 2023
31 December 2023
- 13 -
2023
2022
Notes
£
£
£
£
Fixed assets
Intangible assets
11
250,000
300,000
Tangible assets
12
5,147,754
1,557,360
Investments
13
1,101,000
1,101,000
6,498,754
2,958,360
Current assets
Debtors
16
454,137
643,674
Cash at bank and in hand
4,611,064
6,916,849
5,065,201
7,560,523
Creditors: amounts falling due within one year
17
(3,743,499)
(1,214,873)
Net current assets
1,321,702
6,345,650
Net assets
7,820,456
9,304,010
Capital and reserves
Called up share capital
21
1,101,002
1,101,000
Profit and loss reserves
22
6,719,454
8,203,010
Total equity
7,820,456
9,304,010

 

 

As permitted by s408 Companies Act 2006, the company has not presented its own profit and loss account and related notes. The company’s profit for the year was £795,904 (2022 - £3,513,495 profit).

The financial statements were approved by the board of directors and authorised for issue on 23 August 2024 and are signed on its behalf by:
23 August 2024
Mr T A Carlyon
Director
Company registration number 11739441 (England and Wales)
KLIPSPRINGER HOLDINGS LIMITED (CONSOLIDATED)
GROUP STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2023
- 14 -
Share capital
Capital redemption reserve
Profit and loss reserves
Total
Notes
£
£
£
£
Balance at 1 January 2022
1,101,000
900,000
6,767,827
8,768,827
Year ended 31 December 2022:
Profit and total comprehensive income
-
-
3,509,129
3,509,129
Dividends
10
-
-
(1,635,463)
(1,635,463)
Balance at 31 December 2022
1,101,000
900,000
8,641,493
10,642,493
Year ended 31 December 2023:
Profit and total comprehensive income
-
-
3,350,358
3,350,358
Issue of share capital
21
2
-
-
2
Dividends
10
-
-
(2,279,460)
(2,279,460)
Balance at 31 December 2023
1,101,002
900,000
9,712,391
11,713,393
KLIPSPRINGER HOLDINGS LIMITED (CONSOLIDATED)
COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2023
- 15 -
Share capital
Profit and loss reserves
Total
Notes
£
£
£
Balance at 1 January 2022
1,101,000
6,324,978
7,425,978
Year ended 31 December 2022:
Profit and total comprehensive income for the year
-
3,513,495
3,513,495
Dividends
10
-
(1,635,463)
(1,635,463)
Balance at 31 December 2022
1,101,000
8,203,010
9,304,010
Year ended 31 December 2023:
Profit and total comprehensive income
-
795,904
795,904
Issue of share capital
21
2
-
2
Dividends
10
-
(2,279,460)
(2,279,460)
Balance at 31 December 2023
1,101,002
6,719,454
7,820,456
KLIPSPRINGER HOLDINGS LIMITED (CONSOLIDATED)
GROUP STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2023
- 16 -
2023
2022
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
26
3,600,813
2,632,670
Interest paid
-
0
(1,531)
Income taxes paid
(896,896)
(486,858)
Net cash inflow from operating activities
2,703,917
2,144,281
Investing activities
Purchase of intangible assets
(20,730)
-
Purchase of tangible fixed assets
(4,180,017)
(128,410)
Proceeds from disposal of tangible fixed assets
51,583
-
Interest received
147,823
17,201
Net cash used in investing activities
(4,001,341)
(111,209)
Financing activities
Proceeds from issue of shares
2
-
Repayment of borrowings
1,499,900
-
Payment of finance leases obligations
-
(7,687)
Dividends paid to equity shareholders
(2,279,460)
(1,635,463)
Net cash used in financing activities
(779,558)
(1,643,150)
Net (decrease)/increase in cash and cash equivalents
(2,076,982)
389,922
Cash and cash equivalents at beginning of year
8,337,976
7,948,054
Cash and cash equivalents at end of year
6,260,994
8,337,976
KLIPSPRINGER HOLDINGS LIMITED (CONSOLIDATED)
COMPANY STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2023
- 17 -
2023
2022
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from/(absorbed by) operations
27
1,471,736
(1,160,501)
Income taxes paid
(112,478)
(43,843)
Net cash inflow/(outflow) from operating activities
1,359,258
(1,204,344)
Investing activities
Purchase of tangible fixed assets
(3,624,578)
-
0
Interest received
139,093
15,718
Dividends received
600,000
3,112,893
Net cash (used in)/generated from investing activities
(2,885,485)
3,128,611
Financing activities
Proceeds from issue of shares
2
-
Repayment of borrowings
1,499,900
-
Dividends paid to equity shareholders
(2,279,460)
(1,635,463)
Net cash used in financing activities
(779,558)
(1,635,463)
Net (decrease)/increase in cash and cash equivalents
(2,305,785)
288,804
Cash and cash equivalents at beginning of year
6,916,849
6,628,045
Cash and cash equivalents at end of year
4,611,064
6,916,849
KLIPSPRINGER HOLDINGS LIMITED (CONSOLIDATED)
NOTES TO THE GROUP FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
- 18 -
1
Accounting policies
Company information

Klipspringer Holdings Limited (“the company”) is a private limited company domiciled and incorporated in England and Wales. The registered office is .

 

The group consists of Klipspringer Holdings Limited and all of its subsidiaries.

 

The principal activity of the group continued to be that of supplying specialist safety and compliance products and services to the food and beverage industry.

1.1
Accounting convention

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

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

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

1.2
Business combinations

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

 

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

1.3
Basis of consolidation

The consolidated group financial statements consist of the financial statements of the parent company Klipspringer Holdings Limited together with all entities controlled by the parent company (its subsidiaries) and the group’s share of its interests in joint ventures and associates.

 

All financial statements are made up to 31 December 2023. Where necessary, adjustments are made to the financial statements of subsidiaries to bring the accounting policies used into line with those used by other members of the group.

 

All intra-group transactions, balances and unrealised gains on transactions between group companies are eliminated on consolidation. Unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred.

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

KLIPSPRINGER HOLDINGS LIMITED (CONSOLIDATED)
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 19 -

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

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

 

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

 

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

1.4
Going concern

At the time of approving the financial statements, the directors have a reasonable expectation that the group has adequate resources to continue in operational existence for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.

1.5
Turnover

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

 

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

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

Revenue from contracts for the provision of professional services is recognised by reference to the stage of completion when the stage of completion, costs incurred and costs to complete can be estimated reliably. The stage of completion is calculated by comparing costs incurred, mainly in relation to contractual hourly staff rates and materials, as a proportion of total costs. Where the outcome cannot be estimated reliably, revenue is recognised only to the extent of the expenses recognised that it is probable will be recovered.

1.6
Intangible fixed assets - goodwill

Goodwill represents the excess of the cost of acquisition of a business over the fair value of net assets acquired. It is initially recognised as an asset at cost and is subsequently measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is considered to have a finite useful life and is amortised on a systematic basis over its expected life, which is ten years.

 

For the purposes of impairment testing, goodwill is allocated to the cash-generating units expected to benefit from the acquisition. Cash-generating units to which goodwill has been allocated are tested for impairment at least annually, or more frequently when there is an indication that the unit may be impaired. If the recoverable amount of the cash-generating unit is less than the carrying amount of the unit, the impairment loss is allocated first to reduce the carrying amount of any goodwill allocated to the unit and then to the other assets of the unit pro-rata on the basis of the carrying amount of each asset in the unit.

KLIPSPRINGER HOLDINGS LIMITED (CONSOLIDATED)
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 20 -
1.7
Intangible fixed assets other than goodwill

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

 

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

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

Software licences
Straight line over 10 years
1.8
Tangible fixed assets

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

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

Freehold land and buildings
2% on cost
Property improvements
25% on cost
Equipment and moulds
25% reducing balance
Fixtures and fittings
25% reducing balance
Computers
33.3% on cost
Motor vehicles
25% reducing balance or period of lease

Freehold land is not depreciated.

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

1.9
Fixed asset investments

Equity investments are measured at fair value through profit or loss, except for those equity investments that are not publicly traded and whose fair value cannot otherwise be measured reliably, which are recognised at cost less impairment until a reliable measure of fair value becomes available.

 

In the parent company financial statements, investments in subsidiaries, associates and jointly controlled entities are initially measured at cost and subsequently measured at cost less any accumulated impairment losses.

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

KLIPSPRINGER HOLDINGS LIMITED (CONSOLIDATED)
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 21 -

An associate is an entity, being neither a subsidiary nor a joint venture, in which the company holds a long-term interest and where the company has significant influence. The group considers that it has significant influence where it has the power to participate in the financial and operating decisions of the associate.

 

Investments in associates are initially recognised at the transaction price (including transaction costs) and are subsequently adjusted to reflect the group’s share of the profit or loss, other comprehensive income and equity of the associate using the equity method. Any difference between the cost of acquisition and the share of the fair value of the net identifiable assets of the associate on acquisition is recognised as goodwill. Any unamortised balance of goodwill is included in the carrying value of the investment in associates.

 

Losses in excess of the carrying amount of an investment in an associate are recorded as a provision only when the company has incurred legal or constructive obligations or has made payments on behalf of the associate.

 

In the parent company financial statements, investments in associates are accounted for at cost less impairment.

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

1.10
Impairment of fixed assets

At each reporting period end date, the group reviews the carrying amounts of its tangible and intangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.

 

The carrying amount of the investments accounted for using the equity method is tested for impairment as a single asset. Any goodwill included in the carrying amount of the investment is not tested separately for impairment.

Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.

 

If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.

Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.

KLIPSPRINGER HOLDINGS LIMITED (CONSOLIDATED)
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 22 -
1.11
Stocks

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

 

Stocks held for distribution at no or nominal consideration are measured at the lower of cost and replacement cost, adjusted where applicable for any loss of service potential.

Stock is measured on a weighted average cost basis.

At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.

1.12
Cash and cash equivalents

Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

1.13
Financial instruments

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

 

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

 

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

Basic financial assets

Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.

Other financial assets

Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.

KLIPSPRINGER HOLDINGS LIMITED (CONSOLIDATED)
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 23 -
Impairment of financial assets

Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.

 

Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.

 

If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.

Derecognition of financial assets

Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the group transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.

Classification of financial liabilities

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

Basic financial liabilities

Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

 

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

 

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

Other financial liabilities

Derivatives, including interest rate swaps and forward foreign exchange contracts, are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in profit or loss in finance costs or finance income as appropriate, unless hedge accounting is applied and the hedge is a cash flow hedge.

 

Debt instruments that do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured at fair value through profit or loss. Debt instruments may be designated as being measured at fair value through profit or loss to eliminate or reduce an accounting mismatch or if the instruments are measured and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy.

KLIPSPRINGER HOLDINGS LIMITED (CONSOLIDATED)
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 24 -
Derecognition of financial liabilities

Financial liabilities are derecognised when the group's contractual obligations expire or are discharged or cancelled.

1.14
Equity instruments

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

1.15
Taxation

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

Current tax

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

Deferred tax

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

 

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

1.16
Employee benefits

The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.

 

The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.

 

Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

1.17
Retirement benefits

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

1.18
Leases

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

KLIPSPRINGER HOLDINGS LIMITED (CONSOLIDATED)
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 25 -
1.19
Foreign exchange

Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation in the period are included in profit or loss.

2
Judgements and key sources of estimation uncertainty

In the application of the group’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

 

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

3
Turnover and other revenue
2023
2022
£
£
Turnover analysed by class of business
Food safety and compliance products
13,286,544
12,013,062
Lab services
1,089,548
835,730
14,376,092
12,848,792
2023
2022
£
£
Turnover analysed by geographical market
United Kingdom
13,348,984
11,998,089
Ireland
583,323
470,410
European Union
212,612
181,615
Rest of the World
231,173
198,678
14,376,092
12,848,792
2023
2022
£
£
Other revenue
Interest income
147,823
17,201
KLIPSPRINGER HOLDINGS LIMITED (CONSOLIDATED)
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 26 -
4
Operating profit
2023
2022
£
£
Operating profit for the year is stated after charging/(crediting):
Exchange (gains)/losses
(4,764)
2,741
Fees payable to the group's auditor for the audit of the group's financial statements
1,500
-
Depreciation of owned tangible fixed assets
185,397
87,001
(Profit)/loss on disposal of tangible fixed assets
(14,599)
47
Amortisation of intangible assets
1,316
-
Operating lease charges
1,476
984
5
Auditor's remuneration
2023
2022
Fees payable to the company's auditor and associates:
£
£
For audit services
Audit of the financial statements of the group and company
1,500
-
Audit of the financial statements of the company's subsidiaries
12,500
-
14,000
-
6
Employees

The average monthly number of persons (including directors) employed by the group and company during the year was:

Group
Company
2023
2022
2023
2022
Number
Number
Number
Number
58
55
-
0
-
0

Their aggregate remuneration comprised:

Group
Company
2023
2022
2023
2022
£
£
£
£
Wages and salaries
2,365,165
2,008,492
-
0
-
0
Social security costs
240,298
214,807
-
-
Pension costs
148,285
101,872
-
0
-
0
2,753,748
2,325,171
-
0
-
0
KLIPSPRINGER HOLDINGS LIMITED (CONSOLIDATED)
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 27 -
7
Interest receivable and similar income
2023
2022
£
£
Interest income
Interest on bank deposits
145,929
17,201
Other interest income
1,894
-
Total income
147,823
17,201
2023
2022
Investment income includes the following:
£
£
Interest on financial assets not measured at fair value through profit or loss
145,929
17,201
8
Interest payable and similar expenses
2023
2022
£
£
Other finance costs:
Interest on finance leases and hire purchase contracts
-
1,531
9
Taxation
2023
2022
£
£
Current tax
UK corporation tax on profits for the current period
971,367
815,669
Adjustments in respect of prior periods
(322)
(4,425)
Total current tax
971,045
811,244
Deferred tax
Origination and reversal of timing differences
71,122
13,722
Total tax charge
1,042,167
824,966
KLIPSPRINGER HOLDINGS LIMITED (CONSOLIDATED)
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
9
Taxation
(Continued)
- 28 -

The actual charge for the year can be reconciled to the expected charge for the year based on the profit or loss and the standard rate of tax as follows:

2023
2022
£
£
Profit before taxation
4,392,525
4,334,095
Expected tax charge based on the standard rate of corporation tax in the UK of 23.50% (2022: 19.00%)
1,032,243
823,478
Tax effect of expenses that are not deductible in determining taxable profit
66,323
32,625
Permanent capital allowances in excess of depreciation
(69,868)
(12,079)
Under/(over) provided in prior years
(183)
(4,359)
Tax relief in respect of gift aid
(57,470)
(28,421)
Deferred tax adjustment
71,122
13,722
Taxation charge
1,042,167
824,966

Deferred tax of £87,565 is expected to reverse in the next year as accelerated capital allowances reduce (see note 21).

 

Factors that may affect future tax charges

 

From 1 April 2023, the main rate of ccorporation tax increased from 19% to 25% for companies in the United Kingdom with profits exceeding £250,000. This change will place a greater tax burden on the company in future accounting periods, in comparison with previous years.

10
Dividends
2023
2022
Recognised as distributions to equity holders:
£
£
Interim paid
2,279,460
1,635,463
KLIPSPRINGER HOLDINGS LIMITED (CONSOLIDATED)
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 29 -
11
Intangible fixed assets
Group
Goodwill
Software licences
Total
£
£
£
Cost
At 1 January 2023
1,750,001
-
0
1,750,001
Additions
-
0
20,730
20,730
At 31 December 2023
1,750,001
20,730
1,770,731
Amortisation and impairment
At 1 January 2023
1,750,001
-
0
1,750,001
Amortisation charged for the year
-
0
1,316
1,316
At 31 December 2023
1,750,001
1,316
1,751,317
Carrying amount
At 31 December 2023
-
0
19,414
19,414
At 31 December 2022
-
0
-
0
-
0
Company
Patents & licences
£
Cost
At 1 January 2023 and 31 December 2023
500,000
Amortisation and impairment
At 1 January 2023
200,000
Amortisation charged for the year
50,000
At 31 December 2023
250,000
Carrying amount
At 31 December 2023
250,000
At 31 December 2022
300,000
KLIPSPRINGER HOLDINGS LIMITED (CONSOLIDATED)
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 30 -
12
Tangible fixed assets
Group
Freehold land and buildings
Property improvements
Equipment and moulds
Fixtures and fittings
Computers
Motor vehicles
Total
£
£
£
£
£
£
£
Cost
At 1 January 2023
851,732
195,543
349,574
111,283
215,758
178,080
1,901,970
Additions
3,624,578
-
0
370,745
-
0
15,766
168,928
4,180,017
Disposals
-
0
-
0
(101,000)
-
0
(945)
(31,545)
(133,490)
At 31 December 2023
4,476,310
195,543
619,319
111,283
230,579
315,463
5,948,497
Depreciation and impairment
At 1 January 2023
178,864
189,461
300,481
73,532
186,293
79,107
1,007,738
Depreciation charged in the year
25,640
5,432
82,324
9,437
20,657
41,907
185,397
Eliminated in respect of disposals
-
0
-
0
(87,878)
-
0
(892)
(7,736)
(96,506)
At 31 December 2023
204,504
194,893
294,927
82,969
206,058
113,278
1,096,629
Carrying amount
At 31 December 2023
4,271,806
650
324,392
28,314
24,521
202,185
4,851,868
At 31 December 2022
672,868
6,082
49,093
37,751
29,465
98,973
894,232
KLIPSPRINGER HOLDINGS LIMITED (CONSOLIDATED)
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 31 -
Company
Freehold land and buildings
£
Cost
At 1 January 2023
1,600,000
Additions
3,624,578
At 31 December 2023
5,224,578
Depreciation and impairment
At 1 January 2023
42,640
Depreciation charged in the year
34,184
At 31 December 2023
76,824
Carrying amount
At 31 December 2023
5,147,754
At 31 December 2022
1,557,360
13
Fixed asset investments
Group
Company
2023
2022
2023
2022
Notes
£
£
£
£
Investments in subsidiaries
14
-
0
-
0
1,101,000
1,101,000
Movements in fixed asset investments
Company
Shares in subsidiaries
£
Cost or valuation
At 1 January 2023 and 31 December 2023
1,101,000
Carrying amount
At 31 December 2023
1,101,000
At 31 December 2022
1,101,000
14
Subsidiaries

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

Name of undertaking
Registered office
Class of
% Held
shares held
Direct
Klipspringer Limited
Rynor House, Farthing Road, Ipswich, IP1 5AP
Ordinary & Preference
100.00
KLIPSPRINGER HOLDINGS LIMITED (CONSOLIDATED)
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 32 -
15
Stocks
Group
Company
2023
2022
2023
2022
£
£
£
£
Finished goods and goods for resale
1,601,564
1,509,944
-
0
-
0

The differences between purchase and replacement cost are not material.

16
Debtors
Group
Company
2023
2022
2023
2022
Amounts falling due within one year:
£
£
£
£
Trade debtors
2,487,128
2,309,578
-
0
383,999
Corporation tax recoverable
103,421
-
0
103,421
-
0
Amounts owed by group undertakings
-
-
-
244,173
Other debtors
393,687
52,247
347,132
15,502
Prepayments and accrued income
43,417
24,538
3,584
-
0
3,027,653
2,386,363
454,137
643,674
17
Creditors: amounts falling due within one year
Group
Company
2023
2022
2023
2022
Notes
£
£
£
£
Other borrowings
18
1,499,900
-
0
1,499,900
-
0
Trade creditors
376,557
421,123
1,116
-
0
Amounts owed to group undertakings
-
0
-
0
1,259,440
-
0
Corporation tax payable
614,893
437,323
191,685
112,617
Other taxation and social security
545,170
515,076
-
72,322
Other creditors
775,177
1,067,110
774,109
1,028,284
Accruals and deferred income
148,838
28,947
17,249
1,650
3,960,535
2,469,579
3,743,499
1,214,873
18
Loans and overdrafts
Group
Company
2023
2022
2023
2022
£
£
£
£
Loans from related parties
1,499,900
-
0
1,499,900
-
0
Payable within one year
1,499,900
-
0
1,499,900
-
0
KLIPSPRINGER HOLDINGS LIMITED (CONSOLIDATED)
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
18
Loans and overdrafts
(Continued)
- 33 -

Borrowings include unsecured interest free loans of £1,499,900 (2022 - £Nil) from non-group companies controlled by directors of the company. There are no formal repayment terms.

 

19
Deferred taxation

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

Liabilities
Liabilities
2023
2022
Group
£
£
Accelerated capital allowances
87,565
16,443
The company has no deferred tax assets or liabilities.
Group
Company
2023
2023
Movements in the year:
£
£
Liability at 1 January 2023
16,443
-
Charge to profit or loss
71,122
-
Liability at 31 December 2023
87,565
-

The deferred tax liability set out above is expected to reverse within 12 months and relates to accelerated capital allowances that are expected to mature within the same period.

20
Retirement benefit schemes
2023
2022
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
148,285
101,872

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

21
Share capital
Group and company
2023
2022
2023
2022
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
1,002
1,000
1,002
1,000
KLIPSPRINGER HOLDINGS LIMITED (CONSOLIDATED)
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
21
Share capital
(Continued)
- 34 -
2023
2022
2023
2022
Preference share capital
Number
Number
£
£
Issued and fully paid
Preference shares of £1 each
1,100,000
1,100,000
1,100,000
1,100,000
Preference shares classified as equity
1,100,000
1,100,000
Total equity share capital
1,101,002
1,101,000

The company has multiple classes of ordinary shares which carry no right to fixed income. Additionally, the company has in issue 1,100,000 preference shares of £1 each, classified as equity. The holders of the preference shares have a right to request a redemption, but the company has an unconditional right to reject any such request if it sees fit.

 

The company issued two £1 ordinary shares at nominal value during the year ended 31 December 2023. The shares were issued to non-group companies controlled by directors of the company.

22
Reserves
Capital redemption reserve

The capital redemption reserve represents amounts transferred from the profit and loss reserve following the redemption of the company's own shares.

Profit and loss reserves

The profit and loss reserve represents the cumulative retained profits generated since incorporation less distributions.

23
Events after the reporting date

During the year ended 31 December 2023 the company invested in a new premises which will provide state-of-the-art production and warehouse facilities to support the continuing demands of the company and its subsidiary. This is expected to become operational in September 2024 and the sale of company's current premises, at Farthing Road, is also expected to complete in September 2024. The company's new premises are located at: Foxtail House, Foxtail Road, Ransomes Industrial Estate, Ipswich, Suffolk, IP3 9RX and this will become the company's registered office in due course.

24
Related party transactions

Other debtors due within one year includes interest free loans to directors and their close family members totalling £312,414 (2022 - £5,502). The loans have been made on an interest free basis and are repayable on demand.

 

Included in other creditors due within one year are interest free loans of £1,499,900 (2022 - £Nil) from non-group companies controlled by directors of the company. There are no formal repayment terms.

 

Other creditors due within one year includes interest free loans from the directors and their close family members totalling £773,174 (2022 - £1,028,284). The loans have been made on an interest free basis and are repayable on demand.

25
Controlling party
KLIPSPRINGER HOLDINGS LIMITED (CONSOLIDATED)
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
25
Controlling party
(Continued)
- 35 -

The ultimate controlling party is the board of directors of Klipspringer Holdings Limited.

26
Cash generated from group operations
2023
2022
£
£
Profit for the year after tax
3,350,358
3,509,129
Adjustments for:
Taxation charged
1,042,167
824,966
Finance costs
-
0
1,531
Investment income
(147,823)
(17,201)
(Gain)/loss on disposal of tangible fixed assets
(14,599)
47
Amortisation and impairment of intangible assets
1,316
-
Depreciation and impairment of tangible fixed assets
185,397
87,001
Movements in working capital:
Increase in stocks
(91,620)
(227,561)
Increase in debtors
(537,869)
(529,441)
Decrease in creditors
(186,514)
(1,015,801)
Cash generated from operations
3,600,813
2,632,670
27
Cash generated from/(absorbed by) operations - company
2023
2022
£
£
Profit for the year after tax
795,904
3,513,495
Adjustments for:
Taxation charged
88,125
112,551
Investment income
(739,093)
(3,128,611)
Amortisation and impairment of intangible assets
50,000
50,000
Depreciation and impairment of tangible fixed assets
34,184
21,320
Movements in working capital:
Decrease/(increase) in debtors
292,958
(643,674)
Increase/(decrease) in creditors
949,658
(1,085,582)
Cash generated from/(absorbed by) operations
1,471,736
(1,160,501)
KLIPSPRINGER HOLDINGS LIMITED (CONSOLIDATED)
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 36 -
28
Analysis of changes in net funds - group
1 January 2023
Cash flows
31 December 2023
£
£
£
Cash at bank and in hand
8,337,976
(2,076,982)
6,260,994
Borrowings excluding overdrafts
-
(1,499,900)
(1,499,900)
8,337,976
(3,576,882)
4,761,094
29
Analysis of changes in net funds - company
1 January 2023
Cash flows
31 December 2023
£
£
£
Cash at bank and in hand
6,916,849
(2,305,785)
4,611,064
Borrowings excluding overdrafts
-
(1,499,900)
(1,499,900)
6,916,849
(3,805,685)
3,111,164
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