IRIS Accounts Production v24.1.9.2 05161212 Board of Directors 31.12.23 1.1.23 31.12.23 31.12.23 a) participative investment, strategic management and consultancy services in the logistics and supply chain sector; b) the provision of international export and import freight forwarding services and UK and international courier services; c) the provision, within the United Kingdom and across mainland Europe, of logistics services for food and other goods at chill, frozen and ambient temperatures; d) the provision of contract packing and ancillary services to the confectionary and food industries; e) the provision of contract logistics, freight forwarding and multimodal operations across Eastern Europe. true true true false true true false false false false false true false iso4217:GBPiso4217:USDiso4217:EURxbrli:sharesxbrli:pure051612122022-12-31051612122023-12-31051612122023-01-012023-12-31051612122021-12-31051612122022-01-012022-12-31051612122022-12-3105161212ns16:EnglandWales2023-01-012023-12-3105161212ns15:PoundSterling2023-01-012023-12-3105161212ns11:Director12023-01-012023-12-3105161212ns11:Consolidated2023-12-3105161212ns11:ConsolidatedGroupCompanyAccounts2023-01-012023-12-3105161212ns11:PrivateLimitedCompanyLtd2023-01-012023-12-3105161212ns11:FRS102ns11:Consolidated2023-01-012023-12-3105161212ns11:Auditedns11:Consolidated2023-01-012023-12-3105161212ns11:SmallCompaniesRegimeForAccounts2023-01-012023-12-3105161212ns11:Consolidatedns11:LargeMedium-sizedCompaniesRegimeForDirectorsReport2023-01-012023-12-3105161212ns11:LargeMedium-sizedCompaniesRegimeForAccountsns11:Consolidated2023-01-012023-12-3105161212ns11:FullAccounts2023-01-012023-12-3105161212ns6:Subsidiary12023-01-012023-12-3105161212ns6:Subsidiary22023-01-012023-12-310516121212023-01-012023-12-3105161212ns11:Consolidated2023-01-012023-12-3105161212ns11:Director22023-01-012023-12-3105161212ns11:Director32023-01-012023-12-3105161212ns11:Director42023-01-012023-12-3105161212ns11:Director52023-01-012023-12-3105161212ns11:CompanySecretary12023-01-012023-12-3105161212ns11:RegisteredOffice2023-01-012023-12-3105161212ns11:Consolidated2022-01-012022-12-3105161212ns6:CurrentFinancialInstruments2023-12-3105161212ns6:CurrentFinancialInstruments2022-12-3105161212ns6:Non-currentFinancialInstruments2023-12-3105161212ns6:Non-currentFinancialInstruments2022-12-3105161212ns6:ShareCapital2023-12-3105161212ns6:ShareCapital2022-12-3105161212ns6:FurtherSpecificReserve1ComponentTotalEquity2023-12-3105161212ns6:FurtherSpecificReserve1ComponentTotalEquity2022-12-3105161212ns6:RetainedEarningsAccumulatedLosses2023-12-3105161212ns6:RetainedEarningsAccumulatedLosses2022-12-3105161212ns6:ShareCapital2021-12-3105161212ns6:RetainedEarningsAccumulatedLosses2021-12-3105161212ns6:FurtherSpecificReserve1ComponentTotalEquity2021-12-3105161212ns6:RetainedEarningsAccumulatedLosses2022-01-012022-12-3105161212ns6:FurtherSpecificReserve1ComponentTotalEquity2022-01-012022-12-3105161212ns6:ShareCapital2023-01-012023-12-3105161212ns6:RetainedEarningsAccumulatedLosses2023-01-012023-12-3105161212ns6:FurtherSpecificReserve1ComponentTotalEquity2023-01-012023-12-3105161212ns6:NetGoodwill2023-01-012023-12-3105161212ns6:IntangibleAssetsOtherThanGoodwill2023-01-012023-12-3105161212ns6:ComputerEquipment2022-12-3105161212ns6:ComputerEquipment2023-12-3105161212ns6:ComputerEquipment2022-12-3105161212ns6:CostValuation2022-12-31051612121ns6:Subsidiary12023-01-012023-12-3105161212ns6:Subsidiary12023-12-3105161212ns6:Subsidiary12022-12-3105161212ns6:Subsidiary12022-01-012022-12-3105161212ns6:Subsidiary232023-01-012023-12-3105161212ns6:Subsidiary22023-12-3105161212ns6:Subsidiary22022-12-3105161212ns6:Subsidiary22022-01-012022-12-3105161212ns6:WithinOneYearns6:CurrentFinancialInstruments2023-12-3105161212ns6:WithinOneYearns6:CurrentFinancialInstruments2022-12-3105161212ns6:BetweenOneTwoYearsns6:Non-currentFinancialInstruments2023-12-3105161212ns6:BetweenOneTwoYearsns6:Non-currentFinancialInstruments2022-12-3105161212ns6:BetweenTwoFiveYearsns6:Non-currentFinancialInstruments2023-12-3105161212ns6:BetweenTwoFiveYearsns6:Non-currentFinancialInstruments2022-12-3105161212ns6:Secured2023-12-3105161212ns6:Secured2022-12-31
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: Mr J A Harvey CBE BA(Hons) FCILT
Mr G M Gillo
Mr M Wallis LLB FCILT
Mr G D Withers BSc ACMA
Mr S L Ross





SECRETARY: Mr G M Gillo





REGISTERED OFFICE: 19-20 Bourne Court
Southend Road
Woodford Green
Essex
IG8 8HD





REGISTERED NUMBER: 05161212 (England and Wales)





AUDITORS: Raffingers LLP, Statutory Auditor
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:





Mr G M Gillo - Director


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.

Mr J A Harvey CBE BA(Hons) FCILT
Mr G M Gillo
Mr M Wallis LLB FCILT
Mr G D Withers BSc ACMA

Other changes in directors holding office are as follows:

Mr S L Ross - appointed 1 August 2023

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:





Mr G M Gillo - Director


13 August 2024

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.




Mr Paul Dell FCA (Senior Statutory Auditor)
for and on behalf of Raffingers LLP, Statutory Auditor
Chartered Certified Accountants
19-20 Bourne Court
Southend Road
Woodford Green
Essex
IG8 8HD

13 August 2024

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 (1,416,799 ) (1,307,623 )

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 7,352,724 7,352,724
7,352,724 7,352,724

CURRENT ASSETS
Debtors 16 2,886,846 2,331,470
Cash at bank 19,146 19,641
2,905,992 2,351,111
CREDITORS
Amounts falling due within one year 17 3,824,804 3,163,415
NET CURRENT LIABILITIES (918,812 ) (812,304 )
TOTAL ASSETS LESS CURRENT
LIABILITIES

6,433,912

6,540,420

CREDITORS
Amounts falling due after more than one
year

18

204,167

379,167
NET ASSETS 6,229,745 6,161,253

CAPITAL AND RESERVES
Called up share capital 23 4,000,001 3,550,001
Other reserves 2,000,000 2,000,000
Retained earnings 229,744 611,252
SHAREHOLDERS' FUNDS 6,229,745 6,161,253

Company's loss for the financial year (266,383 ) (197,773 )

The financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies regime.

The financial statements were approved by the Board of Directors and authorised for issue on 13 August 2024 and were signed on its behalf by:





Mr G M Gillo - Director


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 3,550,001 914,025 2,000,000 6,464,026

Changes in equity
Dividends - (105,000 ) - (105,000 )
Total comprehensive income - (197,773 ) - (197,773 )
Balance at 31 December 2022 3,550,001 611,252 2,000,000 6,161,253

Changes in equity
Issue of share capital 450,000 - - 450,000
Dividends - (115,125 ) - (115,125 )
Total comprehensive income - (266,383 ) - (266,383 )
Balance at 31 December 2023 4,000,001 229,744 2,000,000 6,229,745

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 private company, limited by shares , registered in England and Wales. The company's registered number and registered office address can be found on the General Information page.

The presentation currency of the financial statements is the Pound Sterling (£).


2. ACCOUNTING POLICIES

Basis of preparing the financial statements
These financial statements have been prepared in accordance with Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention.

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 property25 years
Leasehold propertyPeriod of lease
Plant and machinery2-14 years
Fixtures and fittings1-5 years
Motor vehicles1-10 years
Office equipment3-5 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
232 277

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 2,556
DEPRECIATION
At 1 January 2023
and 31 December 2023 2,556
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 7,352,724
NET BOOK VALUE
At 31 December 2023 7,352,724
At 31 December 2022 7,352,724

The group or the company's investments at the Balance Sheet date in the share capital of companies include the following:

Subsidiaries

Spatial Global Ltd
Registered office: England and Wales
Nature of business: Freight forwarding and mail fulfilment
%
Class of shares: holding
Ordinary 100.00
2023 2022
£    £   
Aggregate capital and reserves 1,656,364 1,582,416
Profit for the year 73,948 150,605

Keswick Fulfilment Services Group Ltd
Registered office: England and Wales
Nature of business: Contract logistics and Co packing
%
Class of shares: holding
Ordinary 75.00
2023 2022
£    £   
Aggregate capital and reserves (1,129,943 ) (10,504 )
Loss for the year (1,119,439 ) (931,052 )


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 3,274,478 187,384 10,404
Amounts owed by group undertakings - - 2,157,742 2,084,271
Other debtors 489,234 296,449 436,815 193,195
Tax 337,761 - 62,500 -
Prepayments 377,657 391,319 42,405 43,600
4,866,693 3,962,246 2,886,846 2,331,470

Amounts falling due after more than one year:
Tax 133,404 133,404 - -

Aggregate amounts 5,000,097 4,095,650 2,886,846 2,331,470

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 1,739,388 1,424,689
Hire purchase contracts (see note 20) - 5,184 - -
Trade creditors 4,969,658 5,026,204 189,216 148,753
Amounts owed to group undertakings - - 1,366,188 1,359,956
Tax 39,363 - - -
Social security and other taxes 391,490 398,812 32,263 22,491
VAT 26,641 7,653 66,795 26,348
Other creditors 509,806 290,714 - 100,000
Directors' loan accounts 250,000 - 250,000 -
Accruals and deferred income 948,708 683,782 180,954 81,178
8,933,633 9,387,530 3,824,804 3,163,415

18. CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE
YEAR

Group Company
2023 2022 2023 2022
£    £    £    £   
Bank loans (see note 19) 339,727 570,717 204,167 379,167

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 1,681,055 1,366,356
Bank loans 118,044 118,044 58,333 58,333
1,797,967 2,975,181 1,739,388 1,424,689
Amounts falling due between one and two years:
Bank loans 59,711 59,711 - -
Amounts falling due between two and five years:
Bank loans 280,016 511,006 204,167 379,167

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 1,681,055 1,366,356
Bank loans 457,771 688,761 262,500 437,500
Hire purchase contracts - 5,184 - -
2,137,694 3,551,082 1,943,555 1,803,856

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.