Company registration number 02985507 (England and Wales)
KELERBAY LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 1 DECEMBER 2023
KELERBAY LIMITED
COMPANY INFORMATION
Directors
G Lyall
G Watson
W Rawkins
Apadana Management Limited
J Herbert
S Norrington
Company number
02985507
Registered office
International House
19 Kennet Road
Dartford
Kent
DA1 4QN
Auditor
Beavis Morgan Audit Limited
82 St John Street
London
EC1M 4JN
KELERBAY LIMITED
CONTENTS
Page
Strategic report
1 - 3
Directors' report
4
Directors' responsibilities statement
5
Independent auditor's report
6 - 8
Statement of income and retained earnings
9
Balance sheet
10
Notes to the financial statements
11 - 25
KELERBAY LIMITED
STRATEGIC REPORT
FOR THE PERIOD ENDED 1 DECEMBER 2023
- 1 -

The directors present the strategic report for the period ended 1 December 2023.

 

Introduction

 

During 2023 the company continued its recovery from the COVID-19 pandemic which severely impacted the 2020 financial performance of the company.

The company's turnover remained strong and consistent, being £17.2 million in 2023 and £17.3 million in 2022.

As with all UK businesses the group saw increases in costs throughout 2023 driven by increased inflation in the UK economy but was able to mitigate those increases and saw an increase in Gross Profit of £862,199 and GPM increasing from 30.7% in 2022 to 35.9% in 2023.

The company's continued mix of customers and sectors within the removals and storage industry also supported the strong financial performance in 2023.

The company continues to look to grow and on 31st December 2022 the company acquired 100% of the issue share capital of Advanced Removals & Storage Limited, a removals and storage business based in Gloucester.

The company also restructured its finances during the period and on 1st December 2023 repaid the loan due to Connection Capital of £2.3 million. On 1st December the company also took out a new loan with Close Invoice Finance Limited for £1.25 million repayable over 3 years. This restructuring resulted in some exceptional costs in 2023.

To give a true reflection of the trading performance of the company, the Profit and Loss for the period was as follows:

 

 

2023
2022
£'000s
£'000s
Turnover
17,225
17,310
Cost of sales (before depreciation and amortisation)
(10,604)
(11,576)
Gross profit (before depreciation and amortisation)
6,622
5,734
Administrative expenses (before depreciation, amortisation and exceptional items)
(4,724)
(3,699)
Operating profit before depreciation, amortisation and exceptional items
1,897
2,035
Depreciation and related charges
(493)
(461)
Amortisation
(43)
(43)
Exceptional items
(367)
-
Reported operating profit
995
1,531
KELERBAY LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE PERIOD ENDED 1 DECEMBER 2023
- 2 -
Fair review of the business

The directors are pleased to report that the company generated an operating profit of £994,780(2022: 1,530,861).

Cash and cash equivalents decreased during 2023 ending the period at £687,462 compared to £1,195,149 at the beginning of the period.

The balance sheet remains strong with net assets of £2,965,383 (2022: £4,361,256) and current assets, inclusive of intra-group balances, of £8,443,997 (2022: £11,107,633) which are 1.14 times (2022: 1.40 times) larger than current liabilities.

Given the nature of the business, the company’s directors are of the opinion that analysis using KPI’s, other than those which emerge from the financial statements and discussed in the business review above are not necessary for an understanding of the development.

 

Future Developments

The company continues its strategy to grow the business by developing existing revenue streams and existing customers. The company also continues to review opportunities to grow the business through acquisitions as well as expanding the customer base.

In addition, the company continues its annual fleet investment to ensure operational efficiency and compliance with regulation.

 

Principle risks and uncertainties

Its primary commercial risk is in generating and continuing to generate turnover which it does through maintaining its reputation in the market place for good and comprehensive removal and storage services. It also has an extremely diverse customer base in terms of the markets it operates in and the geographic spread of its branches assists this process.

Financial risk operations

The board of the company is responsible for managing the liquidity, interest and foreign currency risks associated with the company's activities.

In addition to cash and borrowings held with the company's bankers the company has other financial assets and liabilities such as trade debtors and trade creditors arising directly from operations.

Liquidity risk

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

KELERBAY LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE PERIOD ENDED 1 DECEMBER 2023
- 3 -

Interest rate risk

The company limits its exposure to interest rate risk on its fixed rate borrowings by ensuring that they are taken out at the most competitive rates available and by keeping borrowings to the minimum conducive to the profitable growth of the business.

Foreign currency risk

The company's principal foreign currency exposure arises from trading with overseas companies. This is limited by the regular settlement of balances with overseas trading partners.

On behalf of the board

S Norrington
Director
28 August 2024
KELERBAY LIMITED
DIRECTORS' REPORT
FOR THE PERIOD ENDED 1 DECEMBER 2023
- 4 -

The directors present their annual report and financial statements for the period ended 1 December 2023.

Principal activities
The principal activity of the company continued to be that of the provision of removals and storage services.
Results and dividends

The results for the period are set out on page 9.

Ordinary dividends were paid amounting to 2,000,000 (2022: £nil). The directors do not recommend payment of a further dividend.

Directors

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

G Lyall
G Watson
W Rawkins
Apadana Management Limited
J Herbert
S Norrington
Future developments

Likely future developments in the business of the company are included in the strategic report.

Auditor

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

Statement of disclosure to auditor

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

On behalf of the board
S Norrington
Director
28 August 2024
KELERBAY LIMITED
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE PERIOD ENDED 1 DECEMBER 2023
- 5 -

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

 

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

 

 

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

KELERBAY LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF KELERBAY LIMITED
- 6 -
Opinion

We have audited the financial statements of Kelerbay Limited (the 'company') for the period ended 1 December 2023 which comprise the statement of income and retained earnings, the balance sheet and 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 FRS 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:

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

 

We have nothing to report in this regard.

KELERBAY LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF KELERBAY LIMITED
- 7 -

Opinions on other matters prescribed by the Companies Act 2006

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

Matters on which we are required to report by exception

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

 

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

Responsibilities of directors

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

Auditor's responsibilities for the audit of the financial statements

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

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

KELERBAY LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF KELERBAY LIMITED
- 8 -
Extent to which the audit was considered capable of detecting irregularities, including fraud

Discussions with and enquiries of management and those charged with governance were held with a view to identifying those laws and regulations that could be expected to have a material impact on the financial statements. During the engagement team briefing, the outcomes of these discussions and enquiries were shared with the team, as well as consideration as to where and how fraud may occur in the entity.

 

The following laws and regulations were identified as being of significance to the entity:

 

 

 

Audit procedures undertaken in response to the potential risks relating to irregularities (which include fraud and non-compliance with laws and regulations) comprised of: inquiries of management and those charged with governance as to whether the entity complies with such laws and regulations; enquiries with the same concerning any actual or potential litigation or claims; testing the appropriateness of journal entries; and the performance of analytical review to identify unexpected movements in account balances which may be indicative of fraud.

 

No instances of material non-compliance were identified. However, the likelihood of detecting irregularities, including fraud, is limited by the inherent difficulty in detecting irregularities, the effectiveness of the entity’s controls, and the nature, timing and extent of the audit procedures performed. Irregularities that result from fraud might be inherently more difficult to detect than irregularities that result from error. As explained above, there is an unavoidable risk that material misstatements may not be detected, even though the audit has been planned and performed in accordance with ISAs (UK).

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

Use of our report

This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's members as a body, for our audit work, for this report, or for the opinions we have formed.

Richard Thacker (Senior Statutory Auditor)
For and on behalf of Beavis Morgan Audit Limited
29 August 2024
Chartered Accountants
Statutory Auditor
82 St John Street
London
EC1M 4JN
KELERBAY LIMITED
STATEMENT OF INCOME AND RETAINED EARNINGS
FOR THE PERIOD ENDED 1 DECEMBER 2023
- 9 -
Period
Year
ended
ended
1 December
30 November
2023
2022
Notes
£
£
Turnover
3
17,225,323
17,310,389
Cost of sales
(11,042,150)
(11,989,415)
Gross profit
6,183,173
5,320,974
Administrative expenses
(5,188,393)
(3,790,113)
Operating profit
4
994,780
1,530,861
Interest receivable and similar income
3
1,781
777
Interest payable and similar expenses
7
(359,510)
(391,228)
Profit before taxation
637,051
1,140,410
Tax on profit
8
(32,924)
(134,717)
Profit for the financial period
604,127
1,005,693
Retained earnings brought forward
4,321,256
3,315,563
Dividends
9
(2,000,000)
-
0
Retained earnings carried forward
2,925,383
4,321,256

The profit and loss account has been prepared on the basis that all operations are continuing operations.

KELERBAY LIMITED
BALANCE SHEET
AS AT
1 DECEMBER 2023
01 December 2023
- 10 -
1 December 2023
30 November 2022
Notes
£
£
£
£
Fixed assets
Goodwill
10
247,239
290,235
Tangible assets
11
2,432,012
2,153,322
Investments
12
1,419,618
38,740
4,098,869
2,482,297
Current assets
Stocks
14
91,924
77,054
Debtors
15
7,664,611
9,835,430
Cash at bank and in hand
687,462
1,195,149
8,443,997
11,107,633
Creditors: amounts falling due within one year
16
(7,348,135)
(7,942,065)
Net current assets
1,095,862
3,165,568
Total assets less current liabilities
5,194,731
5,647,865
Creditors: amounts falling due after more than one year
17
(1,730,400)
(864,135)
Provisions for liabilities
Deferred tax liability
19
498,948
422,474
(498,948)
(422,474)
Net assets
2,965,383
4,361,256
Capital and reserves
Called up share capital
21
40,000
40,000
Profit and loss reserves
2,925,383
4,321,256
Total equity
2,965,383
4,361,256
The financial statements were approved by the board of directors and authorised for issue on 28 August 2024 and are signed on its behalf by:
S Norrington
Director
Company registration number 02985507 (England and Wales)
KELERBAY LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 1 DECEMBER 2023
- 11 -
1
Accounting policies
Company information

Kelerbay Limited is a private company limited by shares incorporated in England and Wales. The registered office is International House, 19 Kennet Road, Dartford, Kent, DA1 4QN.

1.1
Accounting convention

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

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

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

 

The company has taken advantage of the exemption under section 400 of the Companies Act 2006 not to prepare consolidated accounts. The financial statements present information about the company as an individual entity and not about its group.

This company is a qualifying entity for the purposes of FRS 102, being a member of a group where the parent of that group prepares publicly available consolidated financial statements, including this company, which are intended to give a true and fair view of the assets, liabilities, financial position and profit or loss of the group. The company has therefore taken advantage of exemptions from the following disclosure requirements:

 

 

The financial statements of the company are consolidated in the financial statements of Doree Bonner Holdings Limited. These consolidated financial statements are available from its registered office; C/O A2E Industries Limited, No 1 Marsden Street, Manchester, United Kingdom, M2 1HW.

1.2
Going concern

The truecompany, together with its holding company, are financed through a combination of external debt and shareholder loans and enjoys the continued support of its shareholders. The directors have considered these matters and believe it is appropriate to adopt the going concern basis of preparation of the financial statements.

1.3
Reporting period

The accounting period for 2023 has been extended by 1 day to include the completion of the refinancing of the parent company's debt which was in progress at 30 November 2023. All future financial statements will be made up to 30 November 2023.

1.4
Turnover

Turnover represents amounts receivable for removal services net of VAT. Turnover is recognised when a job is fully wrapped, packed and collected for dispatch. Should the collection of the job straddle the period end, the relevant proportion of the revenue relating to the services is accrued. All freight and shipping costs, including insurance costs, relating to the job are recognised on the same basis.

 

Storage revenue is recognised in the period in which the service is provided.

KELERBAY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 1 DECEMBER 2023
1
Accounting policies
(Continued)
- 12 -
1.5
Intangible fixed assets - goodwill

Goodwill represents the excess of the cost of acquisition of businesses over the fair value of net assets acquired. It is initially recognised as an asset at cost and is subsequently measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is considered to have a finite useful life and is amortised on a systematic basis over its expected life, which is 10 years. Useful economic life of goodwill has been assessed on the basis of future expected profits contributed by the acquired businesses over its expected life. Included in goodwill are other intangibles such as brand and customer databases for which the value cannot be reliably estimated.

 

For the purposes of impairment testing, goodwill is allocated to the cash-generating units expected to benefit from the acquisition. Cash-generating units to which goodwill has been allocated are tested for impairment at least annually, or more frequently when there is an indication that the unit may be impaired.

1.6
Tangible fixed assets

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

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

Land and buildings - Long leasehold
Over the period of the lease
Plant and machinery
10% to 25% reducing balance and straight line
Fixtures, fittings & equipment
15% to 25% reducing balance and straight line
Motor vehicles
25% reducing balance

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

1.7
Fixed asset investments

Investments in subsidiaries are measured at cost and subsequently measured at cost less provision for impairment.

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

1.8
Impairment of fixed assets

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

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

 

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

KELERBAY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 1 DECEMBER 2023
1
Accounting policies
(Continued)
- 13 -

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

1.9
Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell on a FIFO basis.

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

1.10
Cash at bank and in hand

Cash and cash equivalents include cash in hand, deposits held at call with banks, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

1.11
Financial instruments

The company has applied the provisions of Section 11 ‘Basic Financial Instruments' of FRS 102 to all of its financial instruments.

 

Financial instruments are recognised in the company's statement of financial position when the company becomes party to the contractual provisions of the instrument.

 

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

Basic financial assets

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

Impairment of financial assets

Financial assets are assessed for indicators of impairment at each reporting end date.

 

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

 

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

KELERBAY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 1 DECEMBER 2023
1
Accounting policies
(Continued)
- 14 -
Derecognition of financial assets

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

Classification of financial liabilities

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

Basic financial liabilities

Basic financial liabilities, including creditors, invoice discounting, finance leases, bank loans and overdrafts, and amounts due to group members, are initially recognised at transaction price. Financial liabilities classified as payable within one year are not amortised.

 

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

 

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

Derecognition of financial liabilities

Financial liabilities are derecognised when the company’s contractual obligations expire or are discharged or cancelled.

1.12
Equity instruments

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

1.13
Taxation

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

Current tax

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

KELERBAY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 1 DECEMBER 2023
1
Accounting policies
(Continued)
- 15 -
Deferred tax

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

 

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

1.14
Employee benefits

The costs of short-term employee benefits are recognised as a liability and an expense.

 

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

 

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

1.15
Retirement benefits

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

1.16
Leases

Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessees. All other leases are classified as operating leases.

 

Assets held under finance leases are recognised as assets at the lower of the assets fair value at the date of inception and the present value of the minimum lease payments. The related liability is included in the balance sheet as a finance lease obligation. Lease payments are treated as consisting of capital and interest elements. The interest is charged to the profit and loss account so as to produce a constant periodic rate of interest on the remaining balance of the liability.

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

1.17
Foreign exchange

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

1.18

Contingent liabilities

A contingent liability is either a possible but uncertain obligation or a present obligation that is not recognised because it fails to meet one or both of the conditions of a provision. Contingent liabilities are not recognised as a liability in the financial statements. See note 22.

KELERBAY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 1 DECEMBER 2023
- 16 -
2
Judgements and key sources of estimation uncertainty

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

 

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

Key sources of estimation uncertainty

The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are as follows.

Useful economic lives of intangible and tangible assets

Estimation is required in determining the useful lives of such assets and their residual values. The amortisation and depreciation charge is sensitive to changes in the estimated useful economic lives of such assets. The carrying value of intangible assets and tangible assets is disclosed in notes 10 and 11 respectively.

3
Turnover and other revenue

An analysis of the company's turnover is as follows:

2023
2022
£
£
Turnover analysed by class of business
Removal and storage services
17,225,323
17,310,389
2023
2022
£
£
Other revenue
Interest income
1,781
777
2023
2022
£
£
Turnover analysed by geographical market
United Kingdom
11,612,965
10,953,908
Europe
310,864
664,579
Rest of the World
5,301,494
5,691,902
17,225,323
17,310,389
KELERBAY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 1 DECEMBER 2023
- 17 -
4
Operating profit
2023
2022
Operating profit for the period is stated after charging/(crediting):
£
£
Exchange (gains)/losses
(19,391)
10,622
Fees payable to the company's auditor for the audit of the company's financial statements
26,500
29,500
Depreciation of owned tangible fixed assets
162,038
125,494
Depreciation of tangible fixed assets held under finance leases
330,528
335,549
(Profit)/loss on disposal of tangible fixed assets
(5,203)
3,345
Amortisation of intangible assets
42,996
42,996
Operating lease charges
1,230,719
1,145,640
5
Employees

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

2023
2022
Number
Number
Administration
51
52
Operations
106
100
157
152

Their aggregate remuneration comprised:

2023
2022
£
£
Wages and salaries
5,704,888
4,946,400
Social security costs
571,236
552,906
Pension costs
183,404
142,499
6,459,528
5,641,805
6
Directors' remuneration
2023
2022
£
£
Remuneration
473,257
302,953
Benefits in kind
61,945
60,070
Company pension contributions to defined contribution schemes
15,937
15,500
551,139
378,523

The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 2 (2022 - 2).

KELERBAY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 1 DECEMBER 2023
6
Directors' remuneration
(Continued)
- 18 -
Remuneration disclosed above include the following amounts paid to the highest paid director:
2023
2022
£
£
Remuneration for qualifying services
191,478
161,580
Company pension contributions to defined contribution schemes
9,000
8,750
7
Interest payable and similar expenses
2023
2022
£
£
Interest on loans
232,292
280,958
Interest on finance leases and hire purchase contracts
127,218
110,270
359,510
391,228
8
Taxation
2023
2022
£
£
Current tax
UK corporation tax on profits for the current period
83,750
168,101
Adjustments in respect of prior periods
(127,300)
4,345
Total current tax
(43,550)
172,446
Deferred tax
Origination and reversal of timing differences
76,474
(37,729)
Total tax charge
32,924
134,717

As of 1st April 2023, the main rate of UK corporation tax increased from 19% to 25%. As the company's financial period straddles this date, a corporation tax rate of 23.01% (2022: 19%) has been applied. This corporation tax rate is calculated by apportioning the two tax rates on a weighted basis for the proportion of the financial period for which the main tax rate was applicable.

KELERBAY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 1 DECEMBER 2023
8
Taxation
(Continued)
- 19 -

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

2023
2022
£
£
Profit before taxation
637,051
1,140,410
Expected tax charge based on the standard rate of corporation tax in the UK of 23.01% (2022: 19.00%)
146,585
216,678
Tax effect of expenses that are not deductible in determining taxable profit
30,782
6,040
Adjustments in respect of prior years
(127,300)
4,345
Group relief
(23,113)
(39,734)
Permanent capital allowances in excess of depreciation
(6,171)
(19,186)
Depreciation on assets not qualifying for tax allowances
6,048
4,369
Deferred tax adjustments in respect of prior years
-
0
(37,816)
Effect of change in deferred tax rate
6,093
21
Taxation charge for the period
32,924
134,717
9
Dividends
2023
2022
£
£
Final paid
2,000,000
-
0
10
Intangible fixed assets
Goodwill
£
Cost
At 1 December 2022 and 1 December 2023
429,976
Amortisation and impairment
At 1 December 2022
139,741
Amortisation charged for the period
42,996
At 1 December 2023
182,737
Carrying amount
At 1 December 2023
247,239
At 30 November 2022
290,235

Goodwill relates to the acquisition of the trade and assets of H.F. Luxford & Sons Ltd. The remaining amortisation period is 5.75 years.

KELERBAY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 1 DECEMBER 2023
- 20 -
11
Tangible fixed assets
Land and buildings - Long leasehold
Plant and machinery
Fixtures, fittings & equipment
Motor vehicles
Total
£
£
£
£
£
Cost
At 1 December 2022
490,489
1,423,597
364,153
3,938,549
6,216,788
Additions
18,527
104,303
17,655
649,518
790,003
Disposals
-
0
(14,963)
(4,446)
(144,406)
(163,815)
At 1 December 2023
509,016
1,512,937
377,362
4,443,661
6,842,976
Depreciation and impairment
At 1 December 2022
399,328
736,254
306,229
2,621,655
4,063,466
Depreciation charged in the period
26,284
29,394
27,781
409,107
492,566
Eliminated in respect of disposals
-
0
(8,777)
(4,064)
(132,227)
(145,068)
At 1 December 2023
425,612
756,871
329,946
2,898,535
4,410,964
Carrying amount
At 1 December 2023
83,404
756,066
47,416
1,545,126
2,432,012
At 30 November 2022
91,161
687,343
57,924
1,316,894
2,153,322

The net carrying value of tangible fixed assets includes the following in respect of assets held under finance leases or hire purchase contracts.

2023
2022
£
£
Plant and machinery
472,520
480,473
Fixtures, fittings & equipment
-
0
5,652
Motor vehicles
1,253,686
981,016
1,726,206
1,467,141

The hire purchase liability is secured over the assets to which it belongs.

KELERBAY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 1 DECEMBER 2023
- 21 -
12
Fixed asset investments
2023
2022
Notes
£
£
Investments in subsidiaries
13
1,419,618
38,740
Movements in fixed asset investments
Shares in group undertakings
£
Cost or valuation
At 1 December 2022
38,740
Additions
1,380,878
At 1 December 2023
1,419,618
Carrying amount
At 1 December 2023
1,419,618
At 30 November 2022
38,740
13
Subsidiaries

These financial statements are separate company financial statements for Kelerbay Limited.

Details of the company's subsidiaries at 1 December 2023 are as follows:

Name of undertaking
Address
Nature of
Class of
% Held
business
shares held
Direct
Indirect
Bonners of Welling Limited
1
Dormant
Ordinary
100.00
-
Express Removals Limited
2
Dormant
Ordinary
100.00
-
Express Removers Limited
2
Dormant
Ordinary
100.00
-
Glasgow Express Removals Limited
2
Dormant
Ordinary
100.00
-
Montgomery Removals Ltd
3
Dormant
Ordinary
-
100.00
Pack It In Limited
1
Dormant
Ordinary
100.00
-
Advanced Moving Solutions Limited
1
Dormant
Ordinary
100.00
-
Yorkie Removals & Storage Limited
1
Dormant
Ordinary
-
100.00
Advanced Removals - Storage Limited
1
Dormant
Ordinary
-
100.00
Advanced Removals & Storage Solutions Ltd
1
Dormant
Ordinary
-
100.00
Advanced Removals Ltd
1
Dormant
Ordinary
-
100.00
Advanced Storage UK Ltd
1
Dormant
Ordinary
-
100.00
Advanced Storage Solutions Ltd
1
Dormant
Ordinary
-
100.00
The D.I.Y Removal Company Limited
1
Dormant
Ordinary
-
100.00
Advanced Storage and Removals Limited
1
Dormant
Ordinary
-
100.00
Advanced Removals & Storage Ltd
4
Removals & Storage
Ordinary
100.00
-
KELERBAY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 1 DECEMBER 2023
13
Subsidiaries
(Continued)
- 22 -

Registered office addresses (all UK unless otherwise indicated):

1
International House, 19 Kennet Road, Dartford, Kent, United Kingdon, DA1 4QN
2
48 Clyde Street, Clydebank, Strathclyde, G81 1NW
3
48 Clyde Street, South Elgin Industrial Estate, Clydebank, G81 1BR
4
Beaumont House, 172 Southgate Street, Gloucester, Gloucestershire, GL1 2EZ
14
Stocks
2023
2022
£
£
Raw materials and consumables
91,924
77,054
15
Debtors
2023
2022
Amounts falling due within one year:
£
£
Trade debtors
2,115,875
1,777,010
Amounts owed by parent undertaking
4,541,237
5,793,281
Other debtors
139,078
1,732,292
Prepayments and accrued income
868,421
532,847
7,664,611
9,835,430
16
Creditors: amounts falling due within one year
2023
2022
Notes
£
£
Obligations under finance leases
18
494,764
584,818
Other borrowings
416,667
2,316,500
Trade creditors
1,656,689
1,610,534
Amounts owed to group undertakings
793,643
38,633
Amounts owed to undertakings in which the company has a participating interest
120,000
-
0
Corporation tax
124,551
168,101
Other taxation and social security
564,433
508,284
Other creditors
1,046,071
72,316
Accruals and deferred income
2,131,317
2,642,879
7,348,135
7,942,065

The company's bank has a charge on cash deposits up to a limit of £56,000 (2022: £56,000).

 

Included within other creditors is £1,000,591 (2022: £1,587,739 - other debtor) of funds owed by the company that relate to an invoice discount facility held with Close Invoice Finance Limited. Fixed and floating charges over all property and undertakings of the company are held by Close Invoice Finance Limited.

KELERBAY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 1 DECEMBER 2023
- 23 -
17
Creditors: amounts falling due after more than one year
2023
2022
Notes
£
£
Obligations under finance leases
18
897,067
864,135
Other borrowings
833,333
-
0
1,730,400
864,135

Other borrowings relates to a cash flow loan agreement with Close Invoice Finance Limited. At the balance sheet date the company owed £1,250,000 (2022: £nil) to Close Invoice Finance Limited in respect of the cash flow loan. Interest of 7% per annum over base rate is due on the loan and the loan matures in December 2026.

18
Finance lease obligations
2023
2022
Future minimum lease payments due under finance leases:
£
£
Within one year
494,764
584,818
In two to five years
897,067
864,135
1,391,831
1,448,953

Finance lease payments represent rentals payable by the company for certain items of plant and machinery, fixtures, fittings and equipment, and motor vehicles. Leases include purchase options at the end of the lease period, and no restrictions are placed on the use of the assets. The average lease term is 3 years. All leases are on a fixed repayment basis and no arrangements have been entered into for contingent rental payments. Within the total of hire purchase contract liabilities, £1,391,831 (2022: £1,448,953) is secured against certain assets.

19
Deferred taxation

Deferred tax assets and liabilities are offset where the company has a legally enforceable right to do so. The following is the analysis of the deferred tax balances (after offset) for financial reporting purposes:

Liabilities
Liabilities
2023
2022
Balances:
£
£
Accelerated capital allowances
518,050
440,546
Other short term timing differences
(19,102)
(18,072)
498,948
422,474

Deferred taxation is provided in full, without discounting, on all tax deferred resulting from reversing timing differences at the rate of corporation tax anticipated to apply at the time of the future reversal of the timing difference. Deferred tax liabilities are expected to reverse within the next 12 months. The future rate of corporation tax applied to timing differences is 25% (2022: 25%).

KELERBAY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 1 DECEMBER 2023
- 24 -
20
Retirement benefit schemes
2023
2022
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
183,404
142,499

The company operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the company in an independently administered fund.

At the balance sheet date the company owed £31,406 (2022: £27,289) to the scheme.

21
Share capital
2023
2022
£
£
Ordinary share capital
Issued and fully paid
40,000 Ordinary shares of £1 each
40,000
40,000
22
Contingent liabilities

Some rental agreements the company is party to include provisions to repair and redecorate the property before expiry of the lease. The amount of the future obligation cannot be reliably estimated due to uncertainties surrounding the cost and extent of any future repairs.

 

During the period, Doree Bonner Holdings Limited, the parent company, entered into a loan agreement with A2E Industries Limited, a related party of the company. Kelerbay Limited acts as a guarentor for the loan. Fixed and floating charges over all property and undertakings of the company are held by A2E Industries Limited.

23
Operating lease commitments
Lessee

At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:

2023
2022
£
£
Within one year
1,385,467
1,128,324
Between two and five years
4,326,346
3,508,607
In over five years
1,554,743
2,379,816
7,266,556
7,016,747
KELERBAY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 1 DECEMBER 2023
- 25 -
24
Related party transactions

The company has taken advantage of the exemptions under FRS 102 not to disclose transactions with fellow group members on the basis that fully consolidated accounts are prepared.

At the balance sheet date, the company owed £47 (2022: £29) to directors of the company. This balance is interest free and repayable on demand.

During the period, the company was charged £300,000 (2022: £120,000) in respect of management charges, recharged expenses, and bonuses by an entity which is a related party by virtue of having a shareholding in Doree Bonner Holdings Limited, the parent company. At the balance sheet date the company owed £120,000 (2022: £48,000) to the entity.

During the period, the company purchased advertising and marketing services totalling £52,686 (2022: £45,718) from an entity which is a related party by virtue of a shareholder's close family member having control over the entity. At the balance sheet date, the company owed £12,602 (2022: £nil) to the entity.

During the period, the company purchased supplies of sea containers totalling £20,525 (2022: £nil) from an entity which is a related party by virtue of common control. At the balance sheet date the company owed £5,790 (2022: £nil) to the entity.

 

25
Ultimate controlling party

The ultimate parent company is Pasargad 1 Limited through its indirect shareholding in the immediate parent company, Doree Bonner Holdings Limited. The ultimate controlling party is S A Amiri by virtue of his shareholding in Pasargad 1 Limited. Pasargad 1 Limited's registered office is 100 Avebury Boulevard, Milton Keynes, United Kingdom, MK9 1FH.

 

Doree Bonner Holdings Limited is the smallest and largest group for which group financial statements are prepared which are available to the public at its registered address; c/o A2e Industries Limited, No 1 Marsden Street, Manchester, United Kingdom, M2 1HW.

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