REGISTERED NUMBER: 05161212 (England and Wales) |
GROUP STRATEGIC REPORT, |
REPORT OF THE DIRECTORS AND |
CONSOLIDATED FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
FOR |
THE KESWICK ENTERPRISES GROUP LIMITED |
REGISTERED NUMBER: 05161212 (England and Wales) |
GROUP STRATEGIC REPORT, |
REPORT OF THE DIRECTORS AND |
CONSOLIDATED FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
FOR |
THE KESWICK ENTERPRISES GROUP LIMITED |
THE KESWICK ENTERPRISES GROUP LIMITED (REGISTERED NUMBER: 05161212) |
CONTENTS OF THE CONSOLIDATED FINANCIAL STATEMENTS |
for the year ended 31 December 2023 |
Page |
Company Information | 1 |
Group Strategic Report | 2 |
Report of the Directors | 5 |
Report of the Independent Auditors | 7 |
Consolidated Statement of Comprehensive Income | 11 |
Consolidated Balance Sheet | 12 |
Company Balance Sheet | 13 |
Consolidated Statement of Changes in Equity | 14 |
Company Statement of Changes in Equity | 15 |
Consolidated Cash Flow Statement | 16 |
Notes to the Consolidated Cash Flow Statement | 17 |
Notes to the Consolidated Financial Statements | 19 |
THE KESWICK ENTERPRISES GROUP LIMITED |
COMPANY INFORMATION |
for the year ended 31 December 2023 |
DIRECTORS: |
SECRETARY: |
REGISTERED OFFICE: |
REGISTERED NUMBER: |
AUDITORS: |
Chartered Certified Accountants |
19-20 Bourne Court |
Southend Road |
Woodford Green |
Essex |
IG8 8HD |
THE KESWICK ENTERPRISES GROUP LIMITED (REGISTERED NUMBER: 05161212) |
GROUP STRATEGIC REPORT |
for the year ended 31 December 2023 |
The directors present their strategic report of the company and the group for the year ended 31 December 2023. |
REVIEW OF BUSINESS |
The Keswick Enterprises Group remains focused on development of its fulfilment capabilities servicing customers in the food and confectionery, the giftware and health care and consumer hospitality sectors. It offers packaging design and sourcing, supply chain management, domestic and international logistics, e-commerce fulfilment, co-packing and is now moving in to niche co-manufacturing. |
2023 continued to be a challenging year for the Group with volumes from key customers remaining uncertain and some new initiatives taking longer to come to fruition . Group turnover grew to £44.2m (2022: £43.9m), gross margins improved slightly to 20% (2022: 19%). Operating loss was at £1.1m (2022: £1.6m). |
The group has with net liabilities of £211k (2022: net assets - £840k) at the balance sheet date. |
A review of the individual business activities within the group is given below:- |
The Keswick Enterprises Group Ltd (parent company) |
The consultancy division of Keswick provided minimal revenue to the group during the year. Keswick's role has been to support the management across the Group. |
The state of affairs at the balance sheet date is considered to be satisfactory. |
Spatial Global Ltd. (100% subsidiary) |
The principal activities of Spatial are intercontinental freight forwarding by sea, air and intra European road transport, international mail consolidation and increasingly domestic and international e-fulfilment. The Heathrow based freight forwarder, Hollyport Logistics Limited, acquired in early 2023 performed to expectations. In 2024, it has been successfully integrated with Spatial operations and has enhanced geographical presence and capabilities. |
Turnover was £10.1m (2022: £10.6m), with increased gross margins. Profit before tax was £103k (2022: £210k) |
Freight volumes improved on all routes including the EU and across all sectors. New business activity improved as the year progressed. The shipping lines had profited greatly in 2022 but faced a rapidly changing market and prices in Q4 which has helped Spatial retain and add new business. However, the deflationary effect did result in more activity but turnover down. |
Mail volumes increased modestly, and whilst the fulfilment and delivery of business magazines, trade shows and exhibitions are, in the long-term reducing, with the switch to digital, there is a growing magazine market at the top-end of the interest and hobby sector including cars, music, space, dining and accommodation. This comes with high quality content and a first-class physical finish. Spatial has captured a number of titles in this segment. The e-commerce growth continues and we are adding capacity at Castle Donington warehouse. |
Keswick Fulfilment Services Group Ltd (a 75% subsidiary) comprises 3 business units:- |
SGL - SGL Co-Packing Ltd |
SGL is an accredited quality co-packing business established 30 years ago and based in the North West. It is primarily focused on confectionary, food related items and selective non-foods. |
The loss for the year before tax amounted to £487k (2022: £338k). The state of affairs at the balance sheet is considered to be satisfactory with net assets of £1.42m (2022: £1.78m). |
The environment for the business has remained challenging during the year with key customers continuing to experience historically low volumes and hence affecting throughput in SGL. However, some longer term projects that have been developed in 2023 are starting to bear fruit with new volumes starting in the second and third quarters of 2024, unfortunately somewhat later than originally planned. The additional activities bodes well for the future. During 2023, new business was brought in from elsewhere in the Group and provided new demand for SGL services and an expansion of e-commerce fulfilment into food. |
THE KESWICK ENTERPRISES GROUP LIMITED (REGISTERED NUMBER: 05161212) |
GROUP STRATEGIC REPORT |
for the year ended 31 December 2023 |
The management team continues to maintain a high quality working environment whilst providing uninterrupted service throughout the year. SGL's high standards and excellence were again evidenced through multiple independent and customer audits during the year. |
APS - Assembly and Packaging Services Ltd |
APS is an assembly and co-packing business based in Blythe. |
The loss for the year before tax amounted to £783k (2022: £962k). |
The balance shows a net liability position at year end of £1.26m (2022: £494k), but the business continues to have the support of the Group. |
2023 was a very challenging year with the loss of long-term customer Body Shop reducing their volumes significantly and ultimately going into administration. While the business has continued to diversify into new areas with some success, the speed of development of additional activities is still progressing in the fields of chemical packaging, paint and protective coatings and other associated products. The focus remains on adding higher value-added work to the existing portfolio. |
Throughout the business and despite these difficulties, APS has maintained high quality standards, retained existing customers and the core management whilst further upgrading facilities. |
We continue to capitalise on the synergies and other fulfilment capabilities within the Keswick Enterprises Network which are being introduced to the company's client base. |
The business is well poised for continued growth and development on a wider customer base. |
FSWW - Food Services World Wide Ltd |
FSWW is a Midlands based business focussed on supply chain sourcing, stock holding and distribution of food, packaging, uniforms and associated goods and products to the food service, QSR, fast food and takeaway sector. |
The company has a wholly owned subsidiary company in Dublin, Ireland to assist customers with trade post Brexit. |
The group had a successful year in terms of revenue growth as it emerged from the effects of the global pandemic. Turnover increased slightly to £24.6m (2022:£24.5m). However, gross margin reduced from 7.4% to 6.8%. The loss before tax amounted to £16k (2022: profit post extraordinary item - £472k). The state of affairs at the balance sheet date are considered to be satisfactory with group net assets at £550k (2022: £554k). |
GROUP KEY PERFORMANCE INDICATORS (KPI'S) |
KPI'S | 2023 | 2022 |
Gross profit margin | 20% | 19% |
Debtor days | 30 days | 27 days |
Creditor days | 51 days | 52 days |
GROUP RESOURCES |
The directors believe that the group has adequate financial resources in place to meet its forecast trading requirements and all risks and uncertainties are managed appropriately. Since the year end, further preference shares have been issued and taken up to give the Group additional cash reserves. |
THE KESWICK ENTERPRISES GROUP LIMITED (REGISTERED NUMBER: 05161212) |
GROUP STRATEGIC REPORT |
for the year ended 31 December 2023 |
PRINCIPAL RISKS AND UNCERTAINTIES |
- Retention of customers - the group companies maintain strong relationships with key customers and the group has established procedures for monitoring performance and service levels. |
- Competitive risk - although the group operates in highly competitive markets the diversity of the operations of consultancy services, freight forwarding and courier services, warehousing, logistics and contract packing helps to mitigate the possible effect of action by any one single competitor. |
- Energy costs - the group consumes significant levels of electricity supplies. The group places great importance on energy efficiencies with improved consumption levels being recorded. |
- Fuel costs - diesel fuel is a major cost element of the group's activities. The group actively manages the purchasing process and carefully monitors efficient consumption. |
FUTURE OUTLOOK |
There are undoubtedly some challenging conditions facing the various markets the group operates in over the next 12 months, in terms of margin pressure as well as the continuing effect of Covid, the political and economic issues surrounding Brexit and the war in Ukraine and the Middle East. |
With effect from 1st January 2024, the parent's other trading interests held in Keswick International Holdings Ltd along with those in The Keswick Enterprises Group Ltd have been brought together with a new holding company The Keswick Enterprises Network Ltd being the ultimate holding company for all. |
The group is well placed both operationally and financially to meet these challenges and will continue to focus on maximising profitability and growth through its customer offerings. |
ON BEHALF OF THE BOARD: |
13 August 2024 |
THE KESWICK ENTERPRISES GROUP LIMITED (REGISTERED NUMBER: 05161212) |
REPORT OF THE DIRECTORS |
for the year ended 31 December 2023 |
The directors present their report with the financial statements of the company and the group for the year ended 31 December 2023. |
DIVIDENDS |
Interim dividends per share were paid as follows: |
Ordinary £1 shares £Nil |
Preference shares £115,125 |
The directors recommend that no final dividends to be paid. The total distribution of dividends for the year ended 31 December 2023 will be £115,125. |
DIRECTORS |
The directors shown below have held office during the whole of the period from 1 January 2023 to the date of this report. |
Other changes in directors holding office are as follows: |
FINANCIAL INSTRUMENTS |
The group operates within its agreed overdraft facilities with the bank. The group has not entered into complex financial instruments. |
EMPLOYEES |
The group's policy is that where it is reasonable and practicable, all employees, including disabled persons, are treated in the same way in matters relating to employment, training, career development and promotion. |
The group is aware of the impact of legislation on age discrimination in respect of Retirement, Agency Workers and Drivers CPC. It has strengthened its HR resources to ensure it continues its stance as an employer that recognises the importance of its employees during these difficult times. |
The directors thank all the employees of the group for their continued support and efforts as we compete in the difficult economic conditions across the global markets where our clients operate. |
THE "GREEN AGENDA" |
We continue to work closely with our clients on various initiatives including more efficient new equipment (e.g. double deck trailers to reduce road miles), energy efficiencies from refrigeration equipment, improved insulation and motive unit selection and other areas of operation (e.g. reduction in packaging waste). Management attention ensures that they continue to achieve 100% rebate in the Climate Change Levy scheme. |
THE KESWICK ENTERPRISES GROUP LIMITED (REGISTERED NUMBER: 05161212) |
REPORT OF THE DIRECTORS |
for the year ended 31 December 2023 |
STATEMENT OF DIRECTORS' RESPONSIBILITIES |
The directors are responsible for preparing the Group Strategic Report, the Report of the Directors and the financial statements in accordance with applicable law and regulations. |
Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and the group and of the profit or loss of the group for that period. In preparing these financial statements, the directors are required to: |
- | select suitable accounting policies and then apply them consistently; |
- | make judgements 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 and the group's transactions and disclose with reasonable accuracy at any time the financial position of the company and the group and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and the group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. |
STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS |
So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the group's auditors are unaware, and each director has taken all the steps that he ought to have taken as a director in order to make himself aware of any relevant audit information and to establish that the group's auditors are aware of that information. |
ON BEHALF OF THE BOARD: |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
THE KESWICK ENTERPRISES GROUP LIMITED |
Opinion |
We have audited the financial statements of The Keswick Enterprises Group Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 December 2023 which comprise the Consolidated Statement of Comprehensive Income, Consolidated Balance Sheet, Company Balance Sheet, Consolidated Statement of Changes in Equity, Company Statement of Changes in Equity, Consolidated Cash Flow Statement and Notes to the Consolidated Cash Flow Statement, Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice). |
In our opinion the financial statements: |
- | give a true and fair view of the state of the group's and of the parent company affairs as at 31 December 2023 and of the group's loss 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 group in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. |
Conclusions relating to going concern |
In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate. |
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the group's and the parent company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue. |
Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report. |
Other information |
The directors are responsible for the other information. The other information comprises the information in the Group Strategic Report and the Report of the Directors, but does not include the financial statements and our Report of the Auditors thereon. |
Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. |
In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard. |
Opinions on other matters prescribed by the Companies Act 2006 |
In our opinion, based on the work undertaken in the course of the audit: |
- | the information given in the Group Strategic Report and the Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and |
- | the Group Strategic Report and the Report of the Directors have been prepared in accordance with applicable legal requirements. |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
THE KESWICK ENTERPRISES GROUP LIMITED |
Matters on which we are required to report by exception |
In the light of the knowledge and understanding of the group and the parent company and its environment obtained in the course of the audit, we have not identified material misstatements in the Group Strategic Report or the Report of the Directors. |
We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion: |
- | adequate accounting records have not been kept by the parent company, or returns adequate for our audit have not been received from branches not visited by us; or |
- | the parent company financial statements are not in agreement with the accounting records and returns; or |
- | certain disclosures of directors' remuneration specified by law are not made; or |
- | we have not received all the information and explanations we require for our audit. |
Responsibilities of directors |
As explained more fully in the Statement of Directors' Responsibilities set out on page six, 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 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 group's and 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 group or the parent company or to cease operations, or have no realistic alternative but to do so. |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
THE KESWICK ENTERPRISES GROUP LIMITED |
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 a Report of the Auditors 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. |
Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was as follows: |
- the engagement partner ensured that the engagement team collectively had the appropriate competence, capabilities and skills to identify or recognise non-compliance with applicable laws and regulations; |
- we identified the laws and regulations applicable to the group through discussions with directors and other management, and from our commercial knowledge and experience of the group sector; |
- we focused on specific laws and regulations which we considered may have a direct material effect on the financial statements or the operations of the group, including the Companies Act 2006, taxation legislation and data protection, employment, and health and safety legislation; |
- we assessed the extent of compliance with the laws and regulations identified above through making enquiries of management and inspecting legal correspondence where necessary. |
We assessed the susceptibility of the group's financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by: |
- making enquiries of management as to where they considered there was susceptibility to fraud, their knowledge of actual, suspected and alleged fraud; and |
- considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations. |
To address the risk of fraud through management bias and override of controls, we: |
- performed analytical procedures to identify any unusual or unexpected transactions; |
- agreed income to underlying contracts; |
- tested the appropriateness of journal entries; |
- investigated the rationale behind significant or unusual transactions. |
To address the risk that revenue could be misstated due to fraud, we: |
- obtained an understanding of the group's revenue recognition policies and compared these to the accounting standard; |
- performed a walkthrough to confirm our understanding of the processes and controls through which the group initiates, records, processes and reports revenue transactions; |
- tested a sample of revenue transactions to supporting evidence; and |
- tested, on a sample basis, revenue related balances in the balance sheet. |
In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to: |
- agreeing financial statement disclosures to underlying supporting documentation; |
- enquiring of management as to actual and potential litigation and claims; and |
- reviewing legal expenses for any potential issues. |
There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the directors and other management and the inspection of regulatory and legal correspondence, if any. |
Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion. |
A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Auditors. |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
THE KESWICK ENTERPRISES GROUP LIMITED |
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 a Report of the Auditors and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's members as a body, for our audit work, for this report, or for the opinions we have formed. |
for and on behalf of |
Chartered Certified Accountants |
19-20 Bourne Court |
Southend Road |
Woodford Green |
Essex |
IG8 8HD |
THE KESWICK ENTERPRISES GROUP LIMITED (REGISTERED NUMBER: 05161212) |
CONSOLIDATED |
STATEMENT OF COMPREHENSIVE |
INCOME |
for the year ended 31 December 2023 |
2023 | 2022 |
Notes | £ | £ |
TURNOVER | 4 | 44,195,999 | 43,860,325 |
Cost of sales | (35,430,409 | ) | (35,537,191 | ) |
GROSS PROFIT | 8,765,590 | 8,323,134 |
Distribution costs | (9,827 | ) | (10,027 | ) |
Administrative expenses | (9,906,046 | ) | (9,931,901 | ) |
(1,150,283 | ) | (1,618,794 | ) |
Other operating income | 37,785 | 16,310 |
OPERATING LOSS | 6 | (1,112,498 | ) | (1,602,484 | ) |
Exceptional item | 7 | - | 500,000 |
Goodwill amortisation | 7 | (381,957 | ) | (321,568 | ) |
(1,494,455 | ) | (1,424,052 | ) |
Interest receivable and similar income | 433 | 18,740 |
Interest payable and similar expenses | 8 | (111,675 | ) | (60,863 | ) |
LOSS BEFORE TAXATION | (1,605,697 | ) | (1,466,175 | ) |
Tax on loss | 9 | 188,898 | 158,552 |
LOSS FOR THE FINANCIAL YEAR | ( |
) | ( |
) |
OTHER COMPREHENSIVE INCOME | - | - |
TOTAL COMPREHENSIVE INCOME FOR THE YEAR |
(1,416,799 |
) |
(1,307,623 |
) |
Loss attributable to: |
Owners of the parent | (1,136,939 | ) | (1,074,860 | ) |
Non-controlling interests | (279,860 | ) | (232,763 | ) |
(1,416,799 | ) | (1,307,623 | ) |
Total comprehensive income attributable to: |
Owners of the parent | (1,136,939 | ) | (1,074,860 | ) |
Non-controlling interests | (279,860 | ) | (232,763 | ) |
(1,416,799 | ) | (1,307,623 | ) |
THE KESWICK ENTERPRISES GROUP LIMITED (REGISTERED NUMBER: 05161212) |
CONSOLIDATED BALANCE SHEET |
31 December 2023 |
2023 | 2022 |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Intangible assets | 12 | 1,229,482 | 1,007,552 |
Tangible assets | 13 | 1,558,838 | 1,843,233 |
Investments | 14 | - | - |
2,788,320 | 2,850,785 |
CURRENT ASSETS |
Stocks | 15 | 873,095 | 962,500 |
Debtors | 16 | 5,000,097 | 4,095,650 |
Cash at bank and in hand | 701,406 | 3,119,733 |
6,574,598 | 8,177,883 |
CREDITORS |
Amounts falling due within one year | 17 | 8,933,633 | 9,387,530 |
NET CURRENT LIABILITIES | (2,359,035 | ) | (1,209,647 | ) |
TOTAL ASSETS LESS CURRENT LIABILITIES |
429,285 |
1,641,138 |
CREDITORS |
Amounts falling due after more than one year |
18 |
(339,727 |
) |
(570,717 |
) |
PROVISIONS FOR LIABILITIES | 22 | (330,360 | ) | (229,299 | ) |
NET (LIABILITIES)/ASSETS | (240,802 | ) | 841,122 |
CAPITAL AND RESERVES |
Called up share capital | 23 | 4,000,001 | 3,550,001 |
Revaluation reserve | 24 | 105,765 | 105,765 |
Other reserves | 24 | 2,000,000 | 2,000,000 |
Retained earnings | 24 | (6,064,082 | ) | (4,812,018 | ) |
SHAREHOLDERS' FUNDS | 41,684 | 843,748 |
NON-CONTROLLING INTERESTS | 25 | (282,486 | ) | (2,626 | ) |
TOTAL EQUITY | (240,802 | ) | 841,122 |
The financial statements were approved by the Board of Directors and authorised for issue on 13 August 2024 and were signed on its behalf by: |
Mr G M Gillo - Director |
THE KESWICK ENTERPRISES GROUP LIMITED (REGISTERED NUMBER: 05161212) |
COMPANY BALANCE SHEET |
31 December 2023 |
2023 | 2022 |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Intangible assets | 12 |
Tangible assets | 13 |
Investments | 14 |
CURRENT ASSETS |
Debtors | 16 |
Cash at bank |
CREDITORS |
Amounts falling due within one year | 17 |
NET CURRENT LIABILITIES | ( |
) | ( |
) |
TOTAL ASSETS LESS CURRENT LIABILITIES |
CREDITORS |
Amounts falling due after more than one year |
18 |
NET ASSETS |
CAPITAL AND RESERVES |
Called up share capital | 23 |
Other reserves |
Retained earnings |
SHAREHOLDERS' FUNDS |
Company's loss for the financial year | (266,383 | ) | (197,773 | ) |
The financial statements were approved by the Board of Directors and authorised for issue on |
THE KESWICK ENTERPRISES GROUP LIMITED (REGISTERED NUMBER: 05161212) |
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY |
for the year ended 31 December 2023 |
Called up |
share | Retained | Revaluation |
capital | earnings | reserve |
£ | £ | £ |
Balance at 1 January 2022 | 3,550,001 | (3,632,158 | ) | 105,765 |
Changes in equity |
Dividends | - | (105,000 | ) | - |
Total comprehensive income | - | (1,074,860 | ) | - |
Balance at 31 December 2022 | 3,550,001 | (4,812,018 | ) | 105,765 |
Changes in equity |
Issue of share capital | 450,000 | - | - |
Dividends | - | (115,125 | ) | - |
Total comprehensive income | - | (1,136,939 | ) | - |
Balance at 31 December 2023 | 4,000,001 | (6,064,082 | ) | 105,765 |
Other | Non-controlling | Total |
reserves | Total | interests | equity |
£ | £ | £ | £ |
Balance at 1 January 2022 | 2,000,000 | 2,023,608 | 230,137 | 2,253,745 |
Changes in equity |
Dividends | - | (105,000 | ) | - | (105,000 | ) |
Total comprehensive income | - | (1,074,860 | ) | (232,763 | ) | (1,307,623 | ) |
Balance at 31 December 2022 | 2,000,000 | 843,748 | (2,626 | ) | 841,122 |
Changes in equity |
Issue of share capital | - | 450,000 | - | 450,000 |
Dividends | - | (115,125 | ) | - | (115,125 | ) |
Total comprehensive income | - | (1,136,939 | ) | (279,860 | ) | (1,416,799 | ) |
Balance at 31 December 2023 | 2,000,000 | 41,684 | (282,486 | ) | (240,802 | ) |
THE KESWICK ENTERPRISES GROUP LIMITED (REGISTERED NUMBER: 05161212) |
COMPANY STATEMENT OF CHANGES IN EQUITY |
for the year ended 31 December 2023 |
Called up |
share | Retained | Other | Total |
capital | earnings | reserves | equity |
£ | £ | £ | £ |
Balance at 1 January 2022 |
Changes in equity |
Dividends | - | ( |
) | - | ( |
) |
Total comprehensive income | - | ( |
) | ( |
) |
Balance at 31 December 2022 |
Changes in equity |
Issue of share capital | - | - |
Dividends | - | ( |
) | - | ( |
) |
Total comprehensive income | - | ( |
) | ( |
) |
Balance at 31 December 2023 |
THE KESWICK ENTERPRISES GROUP LIMITED (REGISTERED NUMBER: 05161212) |
CONSOLIDATED CASH FLOW STATEMENT |
for the year ended 31 December 2023 |
2023 | 2022 |
Notes | £ | £ |
Cash flows from operating activities |
Cash generated from operations | 1 | (672,482 | ) | 389,485 |
Interest paid | (111,597 | ) | (54,407 | ) |
Interest element of hire purchase payments paid |
(78 |
) |
(6,456 |
) |
Tax received | - | 37,378 |
Net cash from operating activities | (784,157 | ) | 366,000 |
Cash flows from investing activities |
Purchase of tangible fixed assets | (161,569 | ) | (664,322 | ) |
Sale of fixed assets | - | 8,300 |
Purchase of subsidiary | (1,214,098 | ) | - |
Cash on acquisition | 569,577 | - |
Interest received | 433 | 18,740 |
Net cash from investing activities | (805,657 | ) | (637,282 | ) |
Cash flows from financing activities |
New repayments during the year | (230,990 | ) | (331,308 | ) |
Hire purchase finance | (5,184 | ) | (80,020 | ) |
Amount withdrawn by directors | 250,000 | - |
Redemption of shares | 450,000 | - |
Equity dividends paid | (115,125 | ) | (105,000 | ) |
Net cash from financing activities | 348,701 | (516,328 | ) |
Decrease in cash and cash equivalents | (1,241,113 | ) | (787,610 | ) |
Cash and cash equivalents at beginning of year |
2 |
262,596 |
1,050,206 |
Cash and cash equivalents at end of year | 2 | (978,517 | ) | 262,596 |
THE KESWICK ENTERPRISES GROUP LIMITED (REGISTERED NUMBER: 05161212) |
NOTES TO THE CONSOLIDATED CASH FLOW STATEMENT |
for the year ended 31 December 2023 |
1. | RECONCILIATION OF LOSS BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS |
2023 | 2022 |
£ | £ |
Loss before taxation | (1,605,697 | ) | (1,466,175 | ) |
Depreciation charges | 445,965 | 483,634 |
Loss on disposal of fixed assets | - | 1,347 |
Goodwill amortisation | 381,957 | 321,568 |
Finance costs | 111,675 | 60,863 |
Finance income | (433 | ) | (18,740 | ) |
(666,533 | ) | (617,503 | ) |
Decrease/(increase) in stocks | 89,405 | (18,202 | ) |
(Increase)/decrease in trade and other debtors | (296,686 | ) | 377,036 |
Increase in trade and other creditors | 201,332 | 648,154 |
Cash generated from operations | (672,482 | ) | 389,485 |
2. | CASH AND CASH EQUIVALENTS |
The amounts disclosed on the Cash Flow Statement in respect of cash and cash equivalents are in respect of these Balance Sheet amounts: |
Year ended 31 December 2023 |
31.12.23 | 1.1.23 |
£ | £ |
Cash and cash equivalents | 701,406 | 3,119,733 |
Bank overdrafts | (1,679,923 | ) | (2,857,137 | ) |
(978,517 | ) | 262,596 |
Year ended 31 December 2022 |
31.12.22 | 1.1.22 |
£ | £ |
Cash and cash equivalents | 3,119,733 | 2,364,682 |
Bank overdrafts | (2,857,137 | ) | (1,314,476 | ) |
262,596 | 1,050,206 |
THE KESWICK ENTERPRISES GROUP LIMITED (REGISTERED NUMBER: 05161212) |
NOTES TO THE CONSOLIDATED CASH FLOW STATEMENT |
for the year ended 31 December 2023 |
3. | ANALYSIS OF CHANGES IN NET DEBT |
At 1.1.23 | Cash flow | At 31.12.23 |
£ | £ | £ |
Net cash |
Cash at bank and in hand | 3,119,733 | (2,418,327 | ) | 701,406 |
Bank overdrafts | (2,857,137 | ) | 1,177,214 | (1,679,923 | ) |
262,596 | (1,241,113 | ) | (978,517 | ) |
Debt |
Finance leases | (5,184 | ) | 5,184 | - |
Debts falling due within 1 year | (118,044 | ) | - | (118,044 | ) |
Debts falling due after 1 year | (570,717 | ) | 230,990 | (339,727 | ) |
(693,945 | ) | 236,174 | (457,771 | ) |
Total | (431,349 | ) | (1,004,939 | ) | (1,436,288 | ) |
THE KESWICK ENTERPRISES GROUP LIMITED (REGISTERED NUMBER: 05161212) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS |
for the year ended 31 December 2023 |
1. | STATUTORY INFORMATION |
The Keswick Enterprises Group Limited is a |
The presentation currency of the financial statements is the Pound Sterling (£). |
2. | ACCOUNTING POLICIES |
Basis of preparing the financial statements |
Basis of consolidation |
The group financial statements consolidate the results and balance sheets of the parent and its material subsidiaries at the year end. The results of the material subsidiaries acquired are consolidated for the period from which control passed to the parent company using the acquisition basis of accounting. The results of the material subsidiaries disposed of during the period are consolidated up to the date of disposal. |
In the parent financial statements, investments in subsidiaries are carried at cost less impairment. |
Going concern |
The assessment as to whether the going concern basis is appropriate takes into account events after the reporting period. The directors have therefore prepared forecasts including projected cash flows for twelve months from the date of their approval of these financial statements. These forecasts indicate that the group will be able to meet its working capital requirements through its existing facilities. |
Turnover |
Turnover represents the earned value of services provided by the group companies net of Value Added Tax and trade discounts. Turnover is recognised when services are performed. |
Purchased goodwill |
Purchased goodwill is the excess of the fair value of the purchase consideration over the fair value of the net assets acquired on acquisition of the subsidiary undertakings and is capitalised and amortised over its useful economic life, subject to a maximum period of 10 years. Purchased goodwill in the year of acquisition is amortised on a pro-rata basis from the date of acquisition to the end of the accounting period. For subsidiaries disposed of during the year, any purchased goodwill not previously amortised is written off in the profit and loss account. Where impairment of an investment occurs, the amount is written off in the year concerned. |
Intangible assets |
Intangible assets are initially measured at cost. After initial recognition, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses. |
THE KESWICK ENTERPRISES GROUP LIMITED (REGISTERED NUMBER: 05161212) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
for the year ended 31 December 2023 |
2. | ACCOUNTING POLICIES - continued |
Tangible fixed assets |
Depreciation is provided on all tangible fixed assets at rates calculated to write off the cost of each asset evenly over its expected useful economic life as follows: |
Freehold property | 25 years |
Leasehold property | Period of lease |
Plant and machinery | 2-14 years |
Fixtures and fittings | 1-5 years |
Motor vehicles | 1-10 years |
Office equipment | 3-5 years |
Depreciation methods, useful lives and residual values are reviewed if there is an indication of a significant change since last annual reporting date in the pattern by which the company expects to consume an asset's future economic benefits. |
Stocks |
Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell (net realisable value). Costs, which comprise direct production costs, are based on the method most appropriate to the type of inventory class. Overheads are charged to profit or loss as incurred. Net realisable value is based on the estimated selling price less any estimated completion or selling costs. |
When stocks are sold, the carrying amount of those stocks is recognised as an expense in the period in which the related revenue is recognised. The amount of any write-down of stocks to net realisable value and all losses of stocks are recognised as an expense in the period in which the write-down or loss occurs. The amount of any reversal of any write-down of stocks is recognised as a reduction in the amount of stocks recognised as an expense in the period in which the reversal occurs. |
Financial instruments |
Basic financial assets, including trade and other receivables and cash and bank balances are initially recognised at transaction price, 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. |
Such assets are subsequently carried at amortised cost using the effective interest method. |
Basic financial liabilities, including trade and other payables, 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 receipts discounted at a market rate of interest. |
Debt instruments are subsequently carried at amortised cost, using the effective interest rate method. |
THE KESWICK ENTERPRISES GROUP LIMITED (REGISTERED NUMBER: 05161212) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
for the year ended 31 December 2023 |
2. | ACCOUNTING POLICIES - continued |
Taxation |
Taxation for the year comprises current and deferred tax. |
The tax currently payable is based on taxable profit for the year. Taxable profit differs from profit as reported in the statement of comprehensive income because of items of income or expense that are taxable or deductible in other years and 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 end of the reporting period. |
Deferred tax is recognised on timing differences between the carrying amounts of assets and liabilities in the financial statements and the corresponding tax bases used in the computation of taxable profit. Deferred tax liabilities are generally recognised for all taxable timing differences. Deferred tax assets are generally recognised for all deductible temporary differences to the extent that it is probable that taxable profits will be available against which those deductible timing differences can be utilised. The carrying amount of deferred tax assets is reviewed at the end of each reporting period 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 assets and liabilities are measured at the tax rates that are expected to apply in the period in which the liability is settled or the asset realised, based on tax rates (and tax laws) that have been enacted or substantively enacted by the end of the reporting period. The measurement of deferred tax liabilities and assets reflects the tax consequences that would follow from the manner in which the group expects, at the end of the reporting period, to recover or settle the carrying amount of its assets and liabilities. |
Current or deferred tax for the year is recognised in profit or loss, except when they relate to items that are recognised in other comprehensive income or directly in equity, in which case, the current and deferred tax is also recognised in other comprehensive income or directly in equity respectively. |
Foreign currencies |
Assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the balance sheet date. Transactions in foreign currencies are translated into sterling at the rate of exchange ruling at the date of transaction. Exchange differences are taken into account in arriving at the operating result.Where exchange differences arise on the translation of assets and liabilities of foreign subsidiary companies, these are taken directly to reserves. |
Hire purchase and leasing commitments |
Assets that are held by the group under leases which transfer to the group substantially all the risks and rewards of ownership are classified as being held under finance leases. Leases which do not transfer substantially all the risks and rewards of ownership to the group are classified as operating leases. |
Assets held under finance leases are initially recognised as assets of the group at their fair value at the inception of the lease or, if lower, at the present value of the minimum lease payments. The corresponding liability to the lessor is included in the statement of financial position as a finance lease obligation. Lease payments are apportioned between finance expenses and reduction of the lease obligation so as to achieve a constant rate of interest on the remaining balance of the liability. Finance expenses are recognised immediately in profit or loss, unless they are directly attributable to qualifying assets, in which case they are capitalised in accordance with the company's policy on borrowing costs. Contingent rentals are recognised as expenses in the periods in which they are incurred. |
Operating lease payments are recognised as an expense on a straight-line basis over the lease term, except where another systematic basis is more representative of the time pattern in which economic benefits from the leased asset are consumed. Contingent rentals arising under operating leases are recognised as an expense in the period in which they are incurred. |
In the event that lease incentives are received to enter into operating leases, such incentives are recognised as a liability. The aggregate benefit of incentives is recognised as a reduction of rental expense on a straight line basis over the lease term, except where another systematic basis is more representative of the time pattern in which economic benefits from the leased asset are consumed. |
THE KESWICK ENTERPRISES GROUP LIMITED (REGISTERED NUMBER: 05161212) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
for the year ended 31 December 2023 |
2. | ACCOUNTING POLICIES - continued |
Pension costs and other post-retirement benefits |
The group operates a defined contribution pension scheme. Contributions payable to the group's pension scheme are charged to profit or loss in the period to which they relate. |
Fixed asset investments |
Fixed asset investments are shown at acquisition cost subject to any provisions for permanent diminution in value. |
Related parties |
For the purposes of these financial statements, a party is considered to be related to the company if: |
- the party has the ability, directly or indirectly, through one or more intermediaries, to control the Company or exercise significant influence over the company in making financial and operating policy decisions, or has joint control over the company; or |
- the company and the party are subject to common control; or |
- the party is an associate of the company or a joint venture in which the company is a venturer; or |
- the party is a member of key management personnel of the company or the company's parent, or a close family member of such an individual, or is an entity under the control, joint control or significant influence of such individuals; or |
- the party is a close family member of a party referred to in (i) or is an entity under the control, joint control or significant influence of such individuals; or |
- the party is a post-employment benefit plan which is for the benefit of employees of the company or of any entity that is a related party of the company; or |
- the party, or any member of a group of which it is part, provides key management personnel services to the company or its parent. |
3. | CRITICAL ACCOUNTING JUDGEMENTS AND KEY SOURCES OF ESTIMATION UNCERTAINTY |
Estimates and judgments are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the |
circumstances. |
The items in the financial statements where these judgements and estimates have been made include: |
- assessing the useful economic lives attributed to tangible fixed assets used to determine the annual depreciation charge, |
- the provision required for any bad or doubtful debts and |
- any provision for slow moving or obsolete stock. |
THE KESWICK ENTERPRISES GROUP LIMITED (REGISTERED NUMBER: 05161212) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
for the year ended 31 December 2023 |
4. | TURNOVER |
The turnover is attributable to more than one activity within the group. |
An analysis of turnover by class of business is given below: |
Year ended 31.12.23 |
Year ended 31.12.22 |
£ | £ |
Freight and fulfilment services | 11,859,883 | 10,597,040 |
Co packing | 32,336,116 | 33,263,285 |
44,195,999 | 43,860,325 |
An analysis of turnover by geographical market is given below: |
Year ended 31.12.23 |
Year ended 31.12.22 |
£ | £ |
United Kingdom | 43,334,566 | 42,958,985 |
Europe | 79,915 | 86,339 |
Rest of the world | 781,518 | 815,001 |
44,195,999 | 43,860,325 |
5. | EMPLOYEES AND DIRECTORS |
2023 | 2022 |
£ | £ |
Wages and salaries | 5,073,575 | 5,234,391 |
Social security costs | 58,410 | 39,265 |
Other pension costs | 115,763 | 113,851 |
5,247,748 | 5,387,507 |
The average number of employees during the year was as follows: |
2023 | 2022 |
Administration and management | 70 | 77 |
Operations | 162 | 200 |
The average number of employees by undertakings that were proportionately consolidated during the year was 232 (2022 - 277 ) . |
THE KESWICK ENTERPRISES GROUP LIMITED (REGISTERED NUMBER: 05161212) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
for the year ended 31 December 2023 |
6. | OPERATING LOSS |
Year ended 31.12.23 |
Year ended 31.12.22 |
£ | £ |
Other operating leases | 959,428 | 847,263 |
Depreciation - owned assets | 365,266 | 401,961 |
Depreciation - assets on hire purchase contracts | 80,698 | 84,261 |
Loss/(Profit) on disposal of fixed assets | - | (1,241 | ) |
Goodwill amortisation | 381,957 | 321,568 |
Auditor's remuneration - paid to group auditor for the audit of the group accounts |
27,500 |
25,000 |
Non audit services - paid to the group auditor for other services | 25,676 | 33,909 |
Non audit services - paid to group auditors for the audit of subsidiary accounts and other services |
73,073 |
61,673 |
Foreign exchange differences | (3,654 | ) | (7,924 | ) |
Directors' pension costs | 16,896 | 16,896 |
Directors' remuneration (excluding pension contributions) | 284,554 | 270,274 |
The number of directors to whom retirement benefits were accruing was as follows: |
Money purchase schemes | 2 | 2 |
Information regarding the highest paid director is as follows: |
Year ended 31.12.23 |
Year ended 31.12.22 |
£ | £ |
Remuneration etc | 139,181 | 139,626 |
7. | EXCEPTIONAL ITEMS |
2023 | 2022 |
£ | £ |
Exceptional item | - | 500,000 |
Goodwill amortisation | (381,957 | ) | (321,568 | ) |
(381,957 | ) | 178,432 |
Last year's exceptional item related to keyman insurance proceeds. |
8. | INTEREST PAYABLE AND SIMILAR EXPENSES |
2023 | 2022 |
£ | £ |
Bank loan interest | 70,159 | 54,407 |
Other interest | 41,438 | - |
Hire purchase interest | 78 | 6,456 |
111,675 | 60,863 |
THE KESWICK ENTERPRISES GROUP LIMITED (REGISTERED NUMBER: 05161212) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
for the year ended 31 December 2023 |
9. | TAXATION |
Analysis of the tax credit |
The tax credit on the loss for the year was as follows: |
2023 | 2022 |
£ | £ |
Current tax: |
UK corporation tax | (289,959 | ) | (155,433 | ) |
Other tax adjustments | - | (24,017 | ) |
Total current tax | (289,959 | ) | (179,450 | ) |
Deferred tax: |
Origination and reversal of timing differences | 101,061 | 20,898 |
Tax on loss | (188,898 | ) | (158,552 | ) |
Reconciliation of total tax credit included in profit and loss |
The tax assessed for the year is higher than the standard rate of corporation tax in the UK. The difference is explained below: |
2023 | 2022 |
£ | £ |
Loss before tax | (1,605,697 | ) | (1,466,175 | ) |
Loss multiplied by the standard rate of corporation tax in the UK of 22.517 % (2022 - 19 %) |
(361,555 |
) |
(278,573 |
) |
Effects of: |
Expenses not deductible | 2,166 | (46,585 | ) |
Depreciation in excess of capital allowances | 147,211 | 16,119 |
Profit or loss on sale of asset | - | (321 | ) |
Deferred tax adjustment | 101,061 | 20,898 |
Losses carried forward | 233,710 | 273,899 |
Tax adjustments for losses carried forward | (175,598 | ) | (133,404 | ) |
Other credit for losses surrender | (128,731 | ) | (24,017 | ) |
Other adjustments | (7,162 | ) | 13,432 |
Total tax credit | (188,898 | ) | (158,552 | ) |
10. | INDIVIDUAL STATEMENT OF COMPREHENSIVE INCOME |
As permitted by Section 408 of the Companies Act 2006, the Income Statement of the parent company is not presented as part of these financial statements. |
11. | DIVIDENDS |
2023 | 2022 |
£ | £ |
Dividends- £1 preference shares | 115,125 | 105,000 |
THE KESWICK ENTERPRISES GROUP LIMITED (REGISTERED NUMBER: 05161212) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
for the year ended 31 December 2023 |
12. | INTANGIBLE FIXED ASSETS |
Group |
Goodwill |
£ |
COST |
At 1 January 2023 | 7,008,754 |
Additions | 603,887 |
At 31 December 2023 | 7,612,641 |
AMORTISATION |
At 1 January 2023 | 6,001,202 |
Amortisation for year | 381,957 |
At 31 December 2023 | 6,383,159 |
NET BOOK VALUE |
At 31 December 2023 | 1,229,482 |
At 31 December 2022 | 1,007,552 |
13. | TANGIBLE FIXED ASSETS |
Group |
Fixtures |
Short | Plant and | and |
leasehold | machinery | fittings |
£ | £ | £ |
COST |
At 1 January 2023 | 957,244 | 6,225,046 | 292,708 |
Additions | 32,981 | 80,374 | 32,511 |
Disposals | - | (20,287 | ) | (20,164 | ) |
At 31 December 2023 | 990,225 | 6,285,133 | 305,055 |
DEPRECIATION |
At 1 January 2023 | 531,280 | 5,162,347 | 269,075 |
Charge for year | 75,706 | 282,831 | 13,407 |
Eliminated on disposal | - | (20,287 | ) | (20,164 | ) |
At 31 December 2023 | 606,986 | 5,424,891 | 262,318 |
NET BOOK VALUE |
At 31 December 2023 | 383,239 | 860,242 | 42,737 |
At 31 December 2022 | 425,964 | 1,062,699 | 23,633 |
THE KESWICK ENTERPRISES GROUP LIMITED (REGISTERED NUMBER: 05161212) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
for the year ended 31 December 2023 |
13. | TANGIBLE FIXED ASSETS - continued |
Group |
Motor | Computer |
vehicles | equipment | Totals |
£ | £ | £ |
COST |
At 1 January 2023 | 59,300 | 1,180,377 | 8,714,675 |
Additions | - | 15,703 | 161,569 |
Disposals | - | - | (40,451 | ) |
At 31 December 2023 | 59,300 | 1,196,080 | 8,835,793 |
DEPRECIATION |
At 1 January 2023 | 51,198 | 857,542 | 6,871,442 |
Charge for year | 4,815 | 69,205 | 445,964 |
Eliminated on disposal | - | - | (40,451 | ) |
At 31 December 2023 | 56,013 | 926,747 | 7,276,955 |
NET BOOK VALUE |
At 31 December 2023 | 3,287 | 269,333 | 1,558,838 |
At 31 December 2022 | 8,102 | 322,835 | 1,843,233 |
The net book value of tangible assets included an amount of £69,029 (2022: £149,727) in respect of assets held under finance leases and hire purchases contracts. The related depreciation charge on these assets for the year was £80,698 (2022: £84,261). |
Company |
Computer |
equipment |
£ |
COST |
At 1 January 2023 |
and 31 December 2023 |
DEPRECIATION |
At 1 January 2023 |
and 31 December 2023 |
NET BOOK VALUE |
At 31 December 2023 |
At 31 December 2022 |
THE KESWICK ENTERPRISES GROUP LIMITED (REGISTERED NUMBER: 05161212) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
for the year ended 31 December 2023 |
14. | FIXED ASSET INVESTMENTS |
Company |
Shares in |
group |
undertakings |
£ |
COST |
At 1 January 2023 |
and 31 December 2023 |
NET BOOK VALUE |
At 31 December 2023 |
At 31 December 2022 |
The group or the company's investments at the Balance Sheet date in the share capital of companies include the following: |
Subsidiaries |
Registered office: England and Wales |
Nature of business: |
% |
Class of shares: | holding |
2023 | 2022 |
£ | £ |
Aggregate capital and reserves |
Profit for the year |
Registered office: England and Wales |
Nature of business: |
% |
Class of shares: | holding |
2023 | 2022 |
£ | £ |
Aggregate capital and reserves | ( |
) | ( |
) |
Loss for the year | ( |
) | ( |
) |
15. | STOCKS |
Group |
2023 | 2022 |
£ | £ |
Stocks of finished goods | 873,095 | 962,500 |
THE KESWICK ENTERPRISES GROUP LIMITED (REGISTERED NUMBER: 05161212) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
for the year ended 31 December 2023 |
16. | DEBTORS |
Group | Company |
2023 | 2022 | 2023 | 2022 |
£ | £ | £ | £ |
Amounts falling due within one year: |
Trade debtors | 3,662,041 | 3,274,478 |
Amounts owed by group undertakings | - | - |
Other debtors | 489,234 | 296,449 |
Tax | 337,761 | - |
Prepayments | 377,657 | 391,319 |
4,866,693 | 3,962,246 |
Amounts falling due after more than one | year: |
Tax | 133,404 | 133,404 |
Aggregate amounts | 5,000,097 | 4,095,650 |
The deferred tax asset has been calculated based on the trading losses carried forward at 31 December 2023 and on the current Corporation Tax rate of 25%. Such losses are expected to be relieved in the financial years to December 2024 and 2025. |
17. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
Group | Company |
2023 | 2022 | 2023 | 2022 |
£ | £ | £ | £ |
Bank loans and overdrafts (see note 19) | 1,797,967 | 2,975,181 |
Hire purchase contracts (see note 20) | - | 5,184 |
Trade creditors | 4,969,658 | 5,026,204 |
Amounts owed to group undertakings | - | - |
Tax | 39,363 | - |
Social security and other taxes | 391,490 | 398,812 |
VAT | 26,641 | 7,653 | 66,795 | 26,348 |
Other creditors | 509,806 | 290,714 |
Directors' loan accounts | 250,000 | - | 250,000 | - |
Accruals and deferred income | 948,708 | 683,782 |
8,933,633 | 9,387,530 |
18. | CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR |
Group | Company |
2023 | 2022 | 2023 | 2022 |
£ | £ | £ | £ |
Bank loans (see note 19) | 339,727 | 570,717 |
THE KESWICK ENTERPRISES GROUP LIMITED (REGISTERED NUMBER: 05161212) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
for the year ended 31 December 2023 |
19. | LOANS |
An analysis of the maturity of loans is given below: |
Group | Company |
2023 | 2022 | 2023 | 2022 |
£ | £ | £ | £ |
Amounts falling due within one year or on | demand: |
Bank overdrafts | 1,679,923 | 2,857,137 |
Bank loans | 118,044 | 118,044 |
1,797,967 | 2,975,181 |
Amounts falling due between one and two | years: |
Bank loans | 59,711 | 59,711 |
Amounts falling due between two and five | years: |
Bank loans | 280,016 | 511,006 |
20. | LEASING AGREEMENTS |
Minimum lease payments fall due as follows: |
Group |
Hire purchase contracts |
2023 | 2022 |
£ | £ |
Net obligations repayable: |
Within one year | - | 5,184 |
Group |
Non-cancellable operating | leases |
2023 | 2022 |
£ | £ |
Within one year | 781,871 | 909,446 |
Between one and five years | 615,047 | 764,152 |
1,396,918 | 1,673,598 |
THE KESWICK ENTERPRISES GROUP LIMITED (REGISTERED NUMBER: 05161212) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
for the year ended 31 December 2023 |
21. | SECURED DEBTS |
The following secured debts are included within creditors: |
Group | Company |
2023 | 2022 | 2023 | 2022 |
£ | £ | £ | £ |
Bank overdrafts | 1,679,923 | 2,857,137 |
Bank loans | 457,771 | 688,761 |
Hire purchase contracts | - | 5,184 | - | - |
2,137,694 | 3,551,082 |
The hire purchase liabilities are secured on the assets concerned. |
At the year end, the group bank overdrafts were secured by way of debenture. |
Mr John Harvey, the ultimate controlling party, has also given a limited personal guarantee to Barclays Bank in support of the group borrowing. |
22. | PROVISIONS FOR LIABILITIES |
Group |
2023 | 2022 |
£ | £ |
Deferred tax |
Accelerated capital allowances | 330,360 | 229,299 |
Group |
Deferred |
tax |
£ |
Balance at 1 January 2023 | 229,299 |
Movement in the year | 101,061 |
Balance at 31 December 2023 | 330,360 |
23. | CALLED UP SHARE CAPITAL |
Allotted, issued and fully paid: |
Number: | Class: | Nominal | 2023 | 2022 |
value: | £ | £ |
50,000 | Ordinary | £1 | 50,000 | 50,000 |
1 | Preferred Ordinary | £1 | 1 | 1 |
3,950,000 (2022: 3,500,000) | Preference | £1 | 3,950,000 | 3,500,000 |
4,000,001 | 3,550,001 |
450,000 preference shares of £1 each were issued during the year. |
THE KESWICK ENTERPRISES GROUP LIMITED (REGISTERED NUMBER: 05161212) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
for the year ended 31 December 2023 |
24. | RESERVES |
Group |
Retained | Revaluation | Other |
earnings | reserve | reserves | Totals |
£ | £ | £ | £ |
At 1 January 2023 | (4,812,018 | ) | 105,765 | 2,000,000 | (2,706,253 | ) |
Deficit for the year | (1,136,939 | ) | (1,136,939 | ) |
Dividends | (115,125 | ) | (115,125 | ) |
At 31 December 2023 | (6,064,082 | ) | 105,765 | 2,000,000 | (3,958,317 | ) |
25. | NON-CONTROLLING INTERESTS |
The non controlling interest at the balance sheet date amounted to £282,486 (2022: £2,626). |
26. | PENSION COMMITMENTS |
The group operates defined contribution pension schemes. The assets of the schemes are held separately from those of the group in independently administered funds. The total pension charge for the year amounted to £216,501 (2022: £219,543) during the year. |
27. | CONTINGENT LIABILITIES |
The parent company has granted a fixed and floating charge to the Barclays Bank Plc over all of its assets as security for the borrowings of The Keswick Enterprises Group Limited companies. At 31 December 2023 group borrowings amounted to £4,455,551 (2022: £3,545,488). |
28. | RELATED PARTY DISCLOSURES |
The company has taken advantage of exemption, under the terms of Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland', not to disclose related party transactions with wholly owned subsidiaries within the group. |
Transactions between group entities which have been eliminated on consolidation are not disclosed within the financial statements. |
During the year, the parent company paid £25,290 (2022: £19,709) as consultancy fees to Beach Street Consulting Limited, a company under the common control of one of the directors. |
At the balance sheet date, the group was owed £402,253 (2022: £38,693) by Keswick International Holdings Limited and £Nil (2022:£24,968) by Icon Foods Ltd, all companies connected by common control. |
Total compensation of key management personnel in the year amounted to £284,554 (2022: £272,690). |
29. | AUDITOR LIABILITY LIMITATION AGREEMENT |
The company has entered into a liability limitation agreement with Raffingers LLP, the statutory auditor, in respect of the statutory audit for the year ended 31 December 2023. The proportionate liability agreement follows the standard terms in Appendix B to the Financial Reporting Council's June 2008 Guidance on Auditor Liability Agreements, and was approved by the members on 15 January 2024. |
30. | ULTIMATE CONTROLLING PARTY |
Mr J A Harvey controls the company by virtue of owning 70% of the company's voting shares. |