REGISTERED NUMBER: 11920973 (England and Wales) |
Group Strategic Report, |
Report of the Director and |
Consolidated Financial Statements |
for the Year Ended 30 November 2023 |
for |
KEENAN HOLDINGS LIMITED |
REGISTERED NUMBER: 11920973 (England and Wales) |
Group Strategic Report, |
Report of the Director and |
Consolidated Financial Statements |
for the Year Ended 30 November 2023 |
for |
KEENAN HOLDINGS LIMITED |
KEENAN HOLDINGS LIMITED (REGISTERED NUMBER: 11920973) |
Contents of the Consolidated Financial Statements |
for the Year Ended 30 November 2023 |
Page |
Company Information | 1 |
Group Strategic Report | 2 |
Report of the Director | 4 |
Report of the Independent Auditors | 5 |
Consolidated Statement of Comprehensive Income | 8 |
Consolidated Balance Sheet | 9 |
Company Balance Sheet | 10 |
Consolidated Statement of Changes in Equity | 11 |
Company Statement of Changes in Equity | 12 |
Consolidated Cash Flow Statement | 13 |
Notes to the Consolidated Cash Flow Statement | 14 |
Notes to the Consolidated Financial Statements | 15 |
KEENAN HOLDINGS LIMITED |
Company Information |
for the Year Ended 30 November 2023 |
Director: |
Registered office: |
Registered number: |
Senior statutory auditor: | Simon Davies MMath FCA |
Auditors: |
Accountants and Statutory Auditor |
43 Coniscliffe Road |
Darlington |
Co. Durham |
DL3 7EH |
KEENAN HOLDINGS LIMITED (REGISTERED NUMBER: 11920973) |
Group Strategic Report |
for the Year Ended 30 November 2023 |
The director presents her strategic report of the company and the group for the year ended 30 November 2023. |
Review of business |
The business uses a number of key performance indicators in assessing and driving performance, as shown below: |
2023 | 2022 |
Gross profit margin | 18.28% | 16.09% |
Operating profit margin | 5.59% | 5.28% |
Liquidity (current ratio) | 1.88 | 1.92 |
The Group has generated a pre tax profit of £546,210 (2022: £648,351). |
Although turnover was reduced from the levels achieved in 2022 the company has been able to increase gross margin to 18.28% (2022: 16.09%) which was due to factory led efficiencies and improved procurement of materials. |
The supply of materials has normalised in the year, therefore the need to bulk order stock has reduced, and the group has been able to utilise its stock and reduce re-order levels. This coupled with a marginal increase in creditors has resulted in an increase in net current assets to £3,355,702 (2022: £3,146,372) |
The Group has a strong secured orderbook to 30th November 2024 and with a number of large contracts being forecast as "highly likely". |
The balance sheet on page 9 shows, in the opinion of the directors, a strong financial position at the year-end demonstrating the solid financial position of the Group. |
Principal risks and uncertainties |
The Group operates in a competitive market and the majority of it's output serves one main customer, and this is key to the workflow. The director and management of the group have very close links with the related party and jointly price works to ensure that the work being procured for the group is secured at the best returns. The directors and management have full visibility of these workflows to enable it to efficiently programme the works into the factory in order to maximise quality and margin. |
Risks to the market in which the group operates inherently come from the competitive nature of the industry, with factors such as price of raw materials, labour only subcontractors and competitor margins. These risks are mitigated well by the group by ensuring each job is completed to an excellent standard. Risks within the macro environment, being supply chain and price of materials always remains at the forefront of the group's discussions and strategy of a fixed price policy being adhered to where possible. The stabilising of material along with the normalisation of prices has enabled the group to effectively price and forecast margins for new contracts. Inflationary increases have been priced into current tendering process and the group continues to operate a fix priced policy for the main system components. |
Review of developments |
With a strong secured forward order book and with visibility of a number of large contracts becoming "highly likely", the director believes that the Group can continue its strategy of sustainable level of trading in the next financial year. |
The Group continues to develop and invest in innovation in order to give the best product and supply offering to its clients. |
KEENAN HOLDINGS LIMITED (REGISTERED NUMBER: 11920973) |
Group Strategic Report |
for the Year Ended 30 November 2023 |
Future developments |
The directors expect the general level of activity to be stable for the forthcoming year and have also successfully secured a number of key contracts that will fulfil factory operations in the forthcoming year. The company plans to invest in new equipment during the 2024 year in order to further improve efficiencies and gross margin. |
On behalf of the board: |
KEENAN HOLDINGS LIMITED (REGISTERED NUMBER: 11920973) |
Report of the Director |
for the Year Ended 30 November 2023 |
The director presents her report with the financial statements of the company and the group for the year ended 30 November 2023. |
Principal activity |
The principal activity of the group in the year under review was that of aluminium fabricators and the manufacture of aluminium windows and doors. |
Dividends |
No dividends will be distributed for the year ended 30 November 2023. |
Director |
Statement of director's responsibilities |
The director is responsible for preparing the Group Strategic Report, the Report of the Director and the financial statements in accordance with applicable law and regulations. |
Company law requires the director to prepare financial statements for each financial year. Under that law the director has 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 director must not approve the financial statements unless she is 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 director is 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 director is 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 her to ensure that the financial statements comply with the Companies Act 2006. She is 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 director is 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 she has taken all the steps that she ought to have taken as a director in order to make herself aware of any relevant audit information and to establish that the group's auditors are aware of that information. |
Auditors |
The auditors, Mitchell Gordon LLP, will be proposed for re-appointment at the forthcoming Annual General Meeting. |
On behalf of the board: |
Report of the Independent Auditors to the Members of |
Keenan Holdings Limited |
Opinion |
We have audited the financial statements of Keenan Holdings Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 30 November 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 30 November 2023 and of the group's profit for the year then ended; |
- | have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and |
- | have been prepared in accordance with the requirements of the Companies Act 2006. |
Basis for opinion |
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the 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 director's 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 director with respect to going concern are described in the relevant sections of this report. |
Emphasis of matter |
We draw attention to Note 3 of the financial statements, which describes the rationale for the basis of preparation of the financial statements. Our opinion is not modified in respect of this matter. |
Other information |
The director is responsible for the other information. The other information comprises the information in the Group Strategic Report and the Report of the Director, 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 Director 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 Director have been prepared in accordance with applicable legal requirements. |
Report of the Independent Auditors to the Members of |
Keenan Holdings 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 Director. |
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 director's remuneration specified by law are not made; or |
- | we have not received all the information and explanations we require for our audit. |
Responsibilities of director |
As explained more fully in the Statement of Director's Responsibilities set out on page four, the director is 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 director determines 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 director is 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 director either intends to liquidate the group or the parent company or to cease operations, or has no realistic alternative but to do so. |
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. |
The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below: |
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 company through discussions with directors and other management, and from our commercial knowledge and experience of the sectors in which the company operates; |
- | 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 company, including the Companies Act 2006, taxation legislation, data protection compliance, anti-bribery, employment, environmental 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; and |
- | identified laws and regulations were communicated within the audit team regularly and the team remained alert to instances of non-compliance throughout the audit. |
These procedures did not identify any potentially material actual or suspected non-compliance. |
We assessed the susceptibility of the company'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. |
Report of the Independent Auditors to the Members of |
Keenan Holdings Limited |
To address the risk of fraud through management bias and override of controls, we: |
- | performed analytical procedures to identify any unusual or unexpected relationships; |
- | reviewed material journal entries to identify unusual transactions or posting by unusual users; |
- | assessed whether judgements and assumptions made in determining the accounting estimates were indicative of potential bias; and |
- | investigated the rationale behind significant or unusual transactions. |
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; |
- | reading the minutes of meetings of those charged with governance; |
- | enquiring of management as to actual and potential litigation and claims; and |
- | reviewing correspondence with HMRC and the company's legal advisors. |
Owing to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material misstatements in the financial statements, even though we have properly planned and performed our audit in accordance with auditing standards. For example, the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely the inherently limited procedures required by auditing standards would identify it. |
In addition, as with any audit, there remains a higher risk of non-detection of fraud, as these may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal controls. Our audit procedures are designed to detect material misstatement. We are not responsible for preventing non-compliance of fraud and cannot be expected to detect non-compliance with all laws & regulations. |
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. |
Use of our report |
This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in a Report of the Auditors and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's members as a body, for our audit work, for this report, or for the opinions we have formed. |
for and on behalf of |
Accountants and Statutory Auditor |
43 Coniscliffe Road |
Darlington |
Co. Durham |
DL3 7EH |
KEENAN HOLDINGS LIMITED (REGISTERED NUMBER: 11920973) |
Consolidated |
Statement of Comprehensive |
Income |
for the Year Ended 30 November 2023 |
30/11/23 | 30/11/22 |
Notes | £ | £ |
Turnover | 4 | 11,553,154 | 13,566,188 |
Cost of sales | 9,440,819 | 11,382,807 |
Gross profit | 2,112,335 | 2,183,381 |
Administrative expenses | 1,954,142 | 1,955,202 |
158,193 | 228,179 |
Other operating income | 487,644 | 488,644 |
Operating profit | 6 | 645,837 | 716,823 |
Interest receivable and similar income | 3,185 | 775 |
649,022 | 717,598 |
Interest payable and similar expenses | 8 | 102,812 | 69,246 |
Profit before taxation | 546,210 | 648,352 |
Tax on profit | 9 | 85,064 | 213,630 |
Profit for the financial year |
Other comprehensive income | - | - |
Total comprehensive income for the year | 461,146 | 434,722 |
Profit attributable to: |
Owners of the parent | 461,146 | 434,722 |
Total comprehensive income attributable to: |
Owners of the parent | 461,146 | 434,722 |
KEENAN HOLDINGS LIMITED (REGISTERED NUMBER: 11920973) |
Consolidated Balance Sheet |
30 November 2023 |
30/11/23 | 30/11/22 |
Notes | £ | £ | £ | £ |
Fixed assets |
Intangible assets | 11 | 319,971 | 377,702 |
Tangible assets | 12 | 2,664,508 | 2,773,034 |
Investments | 13 | - | - |
2,984,479 | 3,150,736 |
Current assets |
Stocks | 14 | 726,951 | 1,050,368 |
Debtors | 15 | 5,737,569 | 5,116,136 |
Cash at bank and in hand | 363,599 | 415,647 |
6,828,119 | 6,582,151 |
Creditors |
Amounts falling due within one year | 16 | 3,472,416 | 3,435,778 |
Net current assets | 3,355,703 | 3,146,373 |
Total assets less current liabilities | 6,340,182 | 6,297,109 |
Creditors |
Amounts falling due after more than one year |
17 |
(992,497 |
) |
(1,372,805 |
) |
Provisions for liabilities | 21 | (185,587 | ) | (223,352 | ) |
Net assets | 5,162,098 | 4,700,952 |
Capital and reserves |
Called up share capital | 22 | 50 | 50 |
Capital redemption reserve | 23 | 50,000 | 50,000 |
Fair value reserve | 23 | 1,949,950 | 1,949,950 |
Retained earnings | 23 | 3,162,098 | 2,700,952 |
Shareholders' funds | 5,162,098 | 4,700,952 |
The financial statements were approved by the director and authorised for issue on 30 August 2024 and were signed by: |
D Keenan - Director |
KEENAN HOLDINGS LIMITED (REGISTERED NUMBER: 11920973) |
Company Balance Sheet |
30 November 2023 |
30/11/23 | 30/11/22 |
Notes | £ | £ | £ | £ |
Fixed assets |
Intangible assets | 11 |
Tangible assets | 12 |
Investments | 13 |
Current assets |
Debtors | 15 |
Creditors |
Amounts falling due within one year | 16 |
Net current liabilities | ( |
) | ( |
) |
Total assets less current liabilities |
Creditors |
Amounts falling due after more than one year |
17 |
Net assets |
Capital and reserves |
Called up share capital | 22 |
Retained earnings | 23 |
Shareholders' funds |
Company's (loss)/profit for the financial year | (32,287 | ) | 220,552 |
The financial statements were approved by the director and authorised for issue on |
KEENAN HOLDINGS LIMITED (REGISTERED NUMBER: 11920973) |
Consolidated Statement of Changes in Equity |
for the Year Ended 30 November 2023 |
Called up | Capital | Fair |
share | Retained | redemption | value | Total |
capital | earnings | reserve | reserve | equity |
£ | £ | £ | £ | £ |
Balance at 1 December 2021 | 50 | 2,266,230 | 50,000 | 1,949,950 | 4,266,230 |
Changes in equity |
Total comprehensive income | - | 434,722 | - | - | 434,722 |
Balance at 30 November 2022 | 50 | 2,700,952 | 50,000 | 1,949,950 | 4,700,952 |
Changes in equity |
Total comprehensive income | - | 461,146 | - | - | 461,146 |
Balance at 30 November 2023 | 50 | 3,162,098 | 50,000 | 1,949,950 | 5,162,098 |
KEENAN HOLDINGS LIMITED (REGISTERED NUMBER: 11920973) |
Company Statement of Changes in Equity |
for the Year Ended 30 November 2023 |
Called up |
share | Retained | Total |
capital | earnings | equity |
£ | £ | £ |
Balance at 1 December 2021 |
Changes in equity |
Total comprehensive income | - |
Balance at 30 November 2022 |
Changes in equity |
Total comprehensive income | - | ( |
) | ( |
) |
Balance at 30 November 2023 |
KEENAN HOLDINGS LIMITED (REGISTERED NUMBER: 11920973) |
Consolidated Cash Flow Statement |
for the Year Ended 30 November 2023 |
30/11/23 | 30/11/22 |
Notes | £ | £ |
Cash flows from operating activities |
Cash generated from operations | 1 | 752,393 | 224,965 |
Interest paid | (97,235 | ) | (61,474 | ) |
Interest element of hire purchase payments paid |
(5,577 |
) |
(7,772 |
) |
Tax paid | (144,105 | ) | (11,794 | ) |
Net cash from operating activities | 505,476 | 143,925 |
Cash flows from investing activities |
Purchase of tangible fixed assets | (49,206 | ) | (80,946 | ) |
Sale of tangible fixed assets | 9,000 | - |
Interest received | 3,185 | 775 |
Net cash from investing activities | (37,021 | ) | (80,171 | ) |
Cash flows from financing activities |
Loan repayments in year | (77,703 | ) | (109,727 | ) |
Capital repayments in year | (91,800 | ) | (89,606 | ) |
Other loan repayments | (351,000 | ) | (351,000 | ) |
Net cash from financing activities | (520,503 | ) | (550,333 | ) |
Decrease in cash and cash equivalents | (52,048 | ) | (486,579 | ) |
Cash and cash equivalents at beginning of year |
2 |
415,647 |
902,226 |
Cash and cash equivalents at end of year | 2 | 363,599 | 415,647 |
KEENAN HOLDINGS LIMITED (REGISTERED NUMBER: 11920973) |
Notes to the Consolidated Cash Flow Statement |
for the Year Ended 30 November 2023 |
1. | RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS |
30/11/23 | 30/11/22 |
£ | £ |
Profit before taxation | 546,210 | 648,352 |
Depreciation charges | 206,463 | 210,744 |
Loss on disposal of fixed assets | - | 12,023 |
Finance costs | 102,812 | 69,246 |
Finance income | (3,185 | ) | (775 | ) |
852,300 | 939,590 |
Decrease in stocks | 323,417 | 776,476 |
Increase in trade and other debtors | (621,433 | ) | (861,544 | ) |
Increase/(decrease) in trade and other creditors | 198,109 | (629,557 | ) |
Cash generated from operations | 752,393 | 224,965 |
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 30 November 2023 |
30/11/23 | 1/12/22 |
£ | £ |
Cash and cash equivalents | 363,599 | 415,647 |
Year ended 30 November 2022 |
30/11/22 | 1/12/21 |
£ | £ |
Cash and cash equivalents | 415,647 | 902,226 |
3. | ANALYSIS OF CHANGES IN NET DEBT |
At 1/12/22 | Cash flow | At 30/11/23 |
£ | £ | £ |
Net cash |
Cash at bank and in hand | 415,647 | (52,048 | ) | 363,599 |
415,647 | (52,048 | ) | 363,599 |
Debt |
Finance leases | (281,983 | ) | 91,800 | (190,183 | ) |
Debts falling due within 1 year | (99,246 | ) | (3,863 | ) | (103,109 | ) |
Debts falling due after 1 year | (977,872 | ) | 81,564 | (896,308 | ) |
(1,359,101 | ) | 169,501 | (1,189,600 | ) |
Total | (943,454 | ) | 117,453 | (826,001 | ) |
KEENAN HOLDINGS LIMITED (REGISTERED NUMBER: 11920973) |
Notes to the Consolidated Financial Statements |
for the Year Ended 30 November 2023 |
1. | STATUTORY INFORMATION |
Keenan Holdings Limited is a |
The presentation currency of the financial statements is the Pound Sterling (£). |
2. | STATEMENT OF COMPLIANCE |
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. |
3. | ACCOUNTING POLICIES |
Basis of preparing the financial statements |
The financial statements are prepared under the going concern basis of accounting. |
A majority of the group's turnover is derived from its main customer. The group has received written assurances from its main customer that it has sufficient secured workload to support the group for at least 12 months from the date of signing of the audit report. Whilst written assurances have been provided, there is no legally binding agreement to pass work in place and this therefore represents a fundamental uncertainty. The director believes that there is a good commercial rationale for this work to be passed to the group and foresees no reason why such work would not be provided and has therefore chosen to adopt the going concern basis of accounting. |
Basis of consolidation |
All subsidiaries are consolidated on the acquisition method of accounting, with the exception of Nolanda Limited which has been consolidated on the merger method of accounting. All subsidiary undertakings were acquired on 14 June 2019. |
Turnover |
Turnover is measured at the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. |
The policies adopted for the recognition of turnover are as follows: |
Sale of goods |
Turnover from the sale of goods is recognised when significant risks and rewards of ownership of the goods have transferred to the buyer, the amount of turnover can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the company and the costs incurred or to be incurred in respect of the transaction can be measured reliably. This is usually on dispatch of the goods |
Goodwill |
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. |
KEENAN HOLDINGS LIMITED (REGISTERED NUMBER: 11920973) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 30 November 2023 |
3. | ACCOUNTING POLICIES - continued |
Tangible fixed assets |
Freehold property | - |
Plant and machinery | - |
Fixtures and fittings | - |
Motor vehicles | - |
Computer equipment | - |
No depreciation is charged against Freehold Property on the basis that the building is maintained to a level where the residual value is not expected to be materially different for the historical cost. |
Stocks |
Stocks are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items. |
KEENAN HOLDINGS LIMITED (REGISTERED NUMBER: 11920973) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 30 November 2023 |
3. | ACCOUNTING POLICIES - continued |
Financial instruments |
The group has elected to apply the provisions of Section 11 'Basic Financial Instruments' and Section 12 'Other Financial Instruments Issues' of FRS 102 to all of its financial instruments. |
Financial instruments are recognised in the group's balance sheet when the group becomes party to the contractual provisions of the instrument. |
Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously. |
Basic financial assets |
Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised. |
Other financial assets |
Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment. |
Impairment of financial assets |
Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date. |
Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset's original effective interest rate. The impairment loss is recognised in profit and loss. |
If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss. |
Derecognition of financial assets |
Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the group transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party. |
Classification of financial liabilities |
Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities. |
KEENAN HOLDINGS LIMITED (REGISTERED NUMBER: 11920973) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 30 November 2023 |
3. | ACCOUNTING POLICIES - continued |
Basic financial liabilities |
Basic financial liabilities, including loans from fellow group companies, are initially recognised at transaction price unless the arrangement constitutes a financial transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised. |
Debt instruments are subsequently carried at amortised cost, using the effective interest rate method. |
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method. |
Derecognition of financial liabilities |
Financial liabilities are derecognised when the group's contractual obligations expire or are discharged or cancelled. |
Taxation |
Taxation for the year comprises current and deferred tax. Tax is recognised in the Consolidated Statement of Comprehensive Income, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. |
Current or deferred taxation assets and liabilities are not discounted. |
Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date. |
Deferred tax |
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date. |
Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference. |
Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. |
Hire purchase and leasing commitments |
Assets obtained under hire purchase contracts or finance leases are capitalised in the balance sheet. Those held under hire purchase contracts are depreciated over their estimated useful lives. Those held under finance leases are depreciated over their estimated useful lives or the lease term, whichever is the shorter. |
The interest element of these obligations is charged to profit or loss over the relevant period. The capital element of the future payments is treated as a liability. |
Rentals paid under operating leases are charged to profit or loss on a straight line basis over the period of the lease. |
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. |
KEENAN HOLDINGS LIMITED (REGISTERED NUMBER: 11920973) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 30 November 2023 |
4. | TURNOVER |
The turnover and profit before taxation are attributable to the one principal activity of the group. |
An analysis of turnover by class of business is given below: |
30/11/23 | 30/11/22 |
£ | £ |
Sale of goods | 11,553,154 | 13,566,188 |
11,553,154 | 13,566,188 |
All income is attributable to the United Kingdom |
5. | EMPLOYEES AND DIRECTORS |
30/11/23 | 30/11/22 |
£ | £ |
Wages and salaries | 2,559,312 | 2,828,413 |
Social security costs | 261,783 | 279,580 |
Other pension costs | 47,503 | 64,800 |
2,868,598 | 3,172,793 |
The average number of employees during the year was as follows: |
30/11/23 | 30/11/22 |
Production and sales | 71 | 72 |
Management and administration | 5 | 5 |
30/11/23 | 30/11/22 |
£ | £ |
Director's remuneration | 65,000 | 75,000 |
6. | OPERATING PROFIT |
The operating profit is stated after charging: |
30/11/23 | 30/11/22 |
£ | £ |
Hire of plant and machinery | 138,657 | 108,077 |
Depreciation - owned assets | 97,732 | 102,015 |
Depreciation - assets on hire purchase contracts | 51,000 | 51,000 |
Loss on disposal of fixed assets | - | 12,023 |
Goodwill amortisation | 57,731 | 57,731 |
7. | AUDITORS' REMUNERATION |
30/11/23 | 30/11/22 |
£ | £ |
Fees in relation to the audit of the financial statements | 24,122 | 17,374 |
KEENAN HOLDINGS LIMITED (REGISTERED NUMBER: 11920973) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 30 November 2023 |
8. | INTEREST PAYABLE AND SIMILAR EXPENSES |
30/11/23 | 30/11/22 |
£ | £ |
Bank loan interest | 71,056 | 38,070 |
Loan interest | 25,368 | 23,404 |
Corporation tax interest | 811 | - |
Hire purchase | 5,577 | 7,772 |
102,812 | 69,246 |
9. | TAXATION |
Analysis of the tax charge |
The tax charge on the profit for the year was as follows: |
30/11/23 | 30/11/22 |
£ | £ |
Current tax: |
UK corporation tax | 173,397 | 153,343 |
Overprovision in prior year | (50,568 | ) | - |
Total current tax | 122,829 | 153,343 |
Deferred tax | (37,765 | ) | 60,287 |
Tax on profit | 85,064 | 213,630 |
Reconciliation of total tax charge included in profit and loss |
The tax assessed for the year is lower than the standard rate of corporation tax in the UK. The difference is explained below: |
30/11/23 | 30/11/22 |
£ | £ |
Profit before tax | 546,210 | 648,352 |
Profit multiplied by the standard rate of corporation tax in the UK of 25 % (2022 - 19 %) |
136,553 |
123,187 |
Effects of: |
Expenses not deductible for tax purposes | 1,290 | 2,230 |
Depreciation in excess of capital allowances | 38,967 | 26,279 |
Adjustments to tax charge in respect of previous periods | (50,569 | ) | (78 | ) |
Other adjustments | - | 1,724 |
development relief |
Accelerated capital allowances | (37,765 | ) | (665 | ) |
Change in rate in taxation | (3,412 | ) | 60,953 |
Total tax charge | 85,064 | 213,630 |
10. | INDIVIDUAL STATEMENT OF COMPREHENSIVE INCOME |
As permitted by Section 408 of the Companies Act 2006, the Statement of Comprehensive Income of the parent company is not presented as part of these financial statements. |
KEENAN HOLDINGS LIMITED (REGISTERED NUMBER: 11920973) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 30 November 2023 |
11. | INTANGIBLE FIXED ASSETS |
Group |
Goodwill |
£ |
COST |
At 1 December 2022 |
and 30 November 2023 | 577,783 |
AMORTISATION |
At 1 December 2022 | 200,081 |
Amortisation for year | 57,731 |
At 30 November 2023 | 257,812 |
NET BOOK VALUE |
At 30 November 2023 | 319,971 |
At 30 November 2022 | 377,702 |
12. | TANGIBLE FIXED ASSETS |
Group |
Fixtures |
Freehold | Plant and | and |
property | machinery | fittings |
£ | £ | £ |
COST |
At 1 December 2022 | 1,876,575 | 1,512,819 | 147,180 |
Additions | - | 42,667 | 2,887 |
Disposals | - | (9,000 | ) | - |
At 30 November 2023 | 1,876,575 | 1,546,486 | 150,067 |
DEPRECIATION |
At 1 December 2022 | - | 706,548 | 87,920 |
Charge for year | - | 125,488 | 15,301 |
At 30 November 2023 | - | 832,036 | 103,221 |
NET BOOK VALUE |
At 30 November 2023 | 1,876,575 | 714,450 | 46,846 |
At 30 November 2022 | 1,876,575 | 806,271 | 59,260 |
KEENAN HOLDINGS LIMITED (REGISTERED NUMBER: 11920973) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 30 November 2023 |
12. | TANGIBLE FIXED ASSETS - continued |
Group |
Motor | Computer |
vehicles | equipment | Totals |
£ | £ | £ |
COST |
At 1 December 2022 | 3,977 | 41,965 | 3,582,516 |
Additions | - | 3,652 | 49,206 |
Disposals | - | - | (9,000 | ) |
At 30 November 2023 | 3,977 | 45,617 | 3,622,722 |
DEPRECIATION |
At 1 December 2022 | 3,229 | 11,785 | 809,482 |
Charge for year | 187 | 7,756 | 148,732 |
At 30 November 2023 | 3,416 | 19,541 | 958,214 |
NET BOOK VALUE |
At 30 November 2023 | 561 | 26,076 | 2,664,508 |
At 30 November 2022 | 748 | 30,180 | 2,773,034 |
Fixed assets, included in the above, which are held under hire purchase contracts are as follows: |
Plant and |
machinery |
£ |
COST |
At 1 December 2022 |
and 30 November 2023 | 510,000 |
DEPRECIATION |
At 1 December 2022 | 102,001 |
Charge for year | 51,000 |
At 30 November 2023 | 153,001 |
NET BOOK VALUE |
At 30 November 2023 | 356,999 |
At 30 November 2022 | 407,999 |
KEENAN HOLDINGS LIMITED (REGISTERED NUMBER: 11920973) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 30 November 2023 |
13. | FIXED ASSET INVESTMENTS |
Company |
Shares in |
group |
undertakings |
£ |
COST |
At 1 December 2022 |
and 30 November 2023 |
NET BOOK VALUE |
At 30 November 2023 |
At 30 November 2022 |
The group or the company's investments at the Balance Sheet date in the share capital of companies include the following: |
Subsidiaries |
Registered office: Durham Way South, Aycliffe Business Park, Newton Aycliffe, Co Durham, DL5 6XN |
Nature of business: |
% |
Class of shares: | holding |
30/11/23 | 30/11/22 |
£ | £ |
Aggregate capital and reserves |
Profit for the year |
Registered office: Durham Way South, Aycliffe Business Park, Newton Aycliffe, Co Durham, DL5 6XN |
Nature of business: |
% |
Class of shares: | holding |
30/11/23 | 30/11/22 |
£ | £ |
Aggregate capital and reserves |
Profit/(loss) for the year | ( |
) |
Registered office: Durham Way South, Aycliffe Business Park, Newton Aycliffe, Co Durham, DL5 6XN. |
Nature of business: |
% |
Class of shares: | holding |
30/11/23 | 30/11/22 |
£ | £ |
Aggregate capital and reserves |
Profit for the year |
KEENAN HOLDINGS LIMITED (REGISTERED NUMBER: 11920973) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 30 November 2023 |
13. | FIXED ASSET INVESTMENTS - continued |
Registered office: Merchants House, 24 North Quay, Douglas, Isle of Man, IM1 4LE |
Nature of business: |
% |
Class of shares: | holding |
30/11/23 | 30/11/22 |
£ | £ |
Aggregate capital and reserves |
Loss for the year | ( |
) | ( |
) |
14. | STOCKS |
Group |
30/11/23 | 30/11/22 |
£ | £ |
Stocks | 726,951 | 1,050,368 |
15. | DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
Group | Company |
30/11/23 | 30/11/22 | 30/11/23 | 30/11/22 |
£ | £ | £ | £ |
Trade debtors | 5,460,342 | 4,293,074 |
Amounts owed by group undertakings | - | - |
Other debtors | 8,488 | 12,183 |
Prepayments and accrued income | 268,739 | 810,879 |
5,737,569 | 5,116,136 |
16. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
Group | Company |
30/11/23 | 30/11/22 | 30/11/23 | 30/11/22 |
£ | £ | £ | £ |
Bank loans and overdrafts (see note 18) | 103,109 | 99,246 |
Hire purchase contracts (see note 19) | 93,994 | 91,800 |
Trade creditors | 2,357,358 | 2,166,424 |
Amounts owed to group undertakings | - | - |
Tax | 123,810 | 145,088 |
Social security and other taxes | 55,785 | 59,004 |
VAT | 180,507 | 166,458 | - | - |
Other creditors | 237,337 | 395,566 |
Accruals and deferred income | 320,516 | 312,192 |
3,472,416 | 3,435,778 |
KEENAN HOLDINGS LIMITED (REGISTERED NUMBER: 11920973) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 30 November 2023 |
17. | CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR |
Group | Company |
30/11/23 | 30/11/22 | 30/11/23 | 30/11/22 |
£ | £ | £ | £ |
Bank loans (see note 18) | 896,308 | 977,872 |
Hire purchase contracts (see note 19) | 96,189 | 190,183 |
Other creditors | - | 204,750 |
992,497 | 1,372,805 |
18. | LOANS |
An analysis of the maturity of loans is given below: |
Group |
30/11/23 | 30/11/22 |
£ | £ |
Amounts falling due within one year or on | demand: |
Bank loans | 103,109 | 99,246 |
Amounts falling due between one and two | years: |
Bank loans | 108,168 | 103,109 |
Amounts falling due between two and five | years: |
Bank loans | 357,407 | 340,689 |
Amounts falling due in more than five years: |
Repayable by instalments |
Bank loans | 430,733 | 534,074 |
The loan is subject to interest charged at 2.5% above the Bank of England base rate. |
19. | LEASING AGREEMENTS |
Minimum lease payments fall due as follows: |
Group |
Hire purchase contracts |
30/11/23 | 30/11/22 |
£ | £ |
Net obligations repayable: |
Within one year | 93,994 | 91,800 |
Between one and five years | 96,189 | 190,183 |
190,183 | 281,983 |
KEENAN HOLDINGS LIMITED (REGISTERED NUMBER: 11920973) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 30 November 2023 |
19. | LEASING AGREEMENTS - continued |
Group |
Non-cancellable operating | leases |
30/11/23 | 30/11/22 |
£ | £ |
Within one year | 82,500 | 198,000 |
Between one and five years | - | 82,500 |
82,500 | 280,500 |
20. | SECURED DEBTS |
The following secured debts are included within creditors: |
Group |
30/11/23 | 30/11/22 |
£ | £ |
Bank loans | 999,417 | 1,077,118 |
Hire purchase contracts | 190,183 | 281,983 |
1,189,600 | 1,359,101 |
Hire purchase borrowings are secured against the assets to which they relate. |
Bank loans are secured via a fixed and floating charge over all assets of the subsidiary company. |
21. | PROVISIONS FOR LIABILITIES |
Group |
30/11/23 | 30/11/22 |
£ | £ |
Deferred tax | 185,587 | 223,352 |
Group |
Deferred |
tax |
£ |
Balance at 1 December 2022 | 223,352 |
Accelerated capital allowances | (37,765 | ) |
Balance at 30 November 2023 | 185,587 |
The deferred tax balance relates to accelerated capital allowances. It is estimated that £19,973 (2022: £27,845) of this balance will reverse within the next 12 months. |
22. | CALLED UP SHARE CAPITAL |
Allotted, issued and fully paid: |
Number: | Class: | Nominal | 30/11/23 | 30/11/22 |
value: | £ | £ |
Ordinary | £1 | 50 | 50 |
KEENAN HOLDINGS LIMITED (REGISTERED NUMBER: 11920973) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 30 November 2023 |
22. | CALLED UP SHARE CAPITAL - continued |
Ordinary shares have rights to attend meetings, participate in dividends as recommended by the director and participate in a winding up. They carry one vote per ordinary share. |
23. | RESERVES |
Group |
Capital | Fair |
Retained | redemption | value |
earnings | reserve | reserve | Totals |
£ | £ | £ | £ |
At 1 December 2022 | 2,700,952 | 50,000 | 1,949,950 | 4,700,902 |
Profit for the year | 461,146 | 461,146 |
At 30 November 2023 | 3,162,098 | 50,000 | 1,949,950 | 5,162,048 |
Company |
Retained |
earnings |
£ |
At 1 December 2022 |
Deficit for the year | ( |
) |
At 30 November 2023 |
24. | CAPITAL COMMITMENTS |
30/11/23 | 30/11/22 |
£ | £ |
Contracted but not provided for in the |
financial statements | 154,000 | - |
25. | RELATED PARTY DISCLOSURES |
Other related parties |
30/11/23 | 30/11/22 |
£ | £ |
Sales | 11,506,553 | 13,250,147 |
Amount due from related party | 5,361,566 | 4,196,117 |
Other related parties relate to companies controlled by close persons of D Keenan. |
During the year, a total of key management personnel compensation of £ 265,121 (2022 - £ 302,863 ) was paid. |
26. | ULTIMATE CONTROLLING PARTY |
The ultimate controlling party is D Keenan. |