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Registered number: 01691074
Knott-Avonride Limited
Strategic Report, Directors' Report and
Financial Statements
For The Year Ended 31 December 2023
Financial Statements
Contents
Page
Strategic Report 1
Directors' Report 2—3
Independent Auditor's Report 4—7
Statement of Comprehensive Income 8
Balance Sheet 9
Statement of Changes in Equity 10
Statement of Cash Flows 11
Notes to the Statement of Cash Flows 12
Notes to the Financial Statements 13—22
Page 1
Strategic Report
The directors present their strategic report for the year ended 31 December 2023.
Principal Activity
The company's principal activity during the year continued to be the manufacture, assembly and sale of brakes, couplings, axles, chassis and accessories.
Review of the Business
Within this report the directors aim to present a balanced and comprehensive review of the development and performance of our business during the year and its position at the year end. Our review is consistent with the size and non-complex nature of our business and is written in the context of the risks and uncertainties that we all face.
Principal Risks and Uncertainties
As for a significant number of businesses of our size, the business environment in which we operate continued to present challenges in 2023. We, like many others, are subject to the changing economic climate inherent within the current global economic environment. This is due in no small part to the continued risks of exchange, the increased costs of materials and the uncertainties surrounding the global economic climate.
The company remains focused and committed to managing the factors which affected our business.
Future Developments
The directors are constantly looking at new processes, machinery and materials to improve productivity and the overall profitability of the company.
The directors are confident that their experience within the sector and the expansion of the Company's range of own products manufactured will deliver significant revenue growth over the coming years.
Key Performance Indicators
We consider that our key financial performance indicators are those that communicate the financial performance and position of the company as a whole, these being operating margin and return on capital employed.
Overall operating margin is a loss of £642,806 (2022: £641,024) resulting in a loss before taxation of £1,067,985 (2022: £856,659). The return on capital employed was a return of (29.77)% (2022: (21.98%)). Return on capital employed is calculated as profit before tax and interest divided by capital employed, which constitutes total assets less current liabilities. 
On behalf of the board
Mr N P Collins
Director
8 April 2024
Page 1
Page 2
Directors' Report
The directors present their report and the financial statements for the year ended 31 December 2023.
Directors
The directors who held office during the year were as follows:
Mr P A Brown Resigned 01/02/2023
Mr V Knott
Mr N P Collins
Mr M G Nugent Resigned 05/05/2023
Mr P D Birch Appointed 01/03/2023
Going concern
Current trading conditions in the market in which the company operates have remained stable over the year. 
The company gained additional new business this year and has good prospects of more new projects in the coming years. The company has further improved its efficiency over the last 12 months with·this, the directors are confident the company will seek to continue to trade profitably and will continue to manage its business risks successfully over the forthcoming year.
Current forecasts, extending for a period of at least 12 months from the date of approval of these financial statements, which also take into account a range of possible changes in trading performance.
After making all reasonable enquiries and taking into consideration the ongoing support from the immediate parent, the director has reached the conclusion that the company has adequate resources to continue in operational existence for the foreseeable future. Accordingly, they continue to adopt the going concern basis in preparing the financial statements. In doing so, the director has had regard to the latest guidelines from the Financial Reporting Council regarding preparation of financial statements on a going concern basis.
Matters covered in the Strategic Report
Disclosures required under s416(4) of the Companies Act 2006 are commented upon in the Strategic Report as the directors consider them to be of strategic importance to the business.
Statement of Directors' Responsibilities
The directors are responsible for preparing the Strategic Report, the Directors' 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, comprising FRS102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland', 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 the financial statements the directors are required to:
  • select suitable accounting policies and then apply them consistently;
  • make judgments and accounting estimates that are reasonable and prudent;
  • state whether applicable United Kingdom Accounting Standards, comprising FRS102, have been followed subject to any material departures disclosed and explained in the financial statements;
  • prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.
The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company's 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.
The directors are responsible for the maintenance and integrity of the corporate and financial information included on the company's website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.
Page 2
Page 3
Statement of Disclosure of Information to Auditors
In the case of each director in office at the date the Directors' Report is approved:
  • so far as the director is aware, there is no relevant audit information of which the company's auditors are unaware; and
  • they have taken all the steps that they ought to have taken as directors in order to make themselves aware of any relevant audit information and to establish that the company's auditors are aware of that information.
Independent Auditors
The auditors, Nuvo Audit Limited, have indicated their willingness to continue in office and a resolution concerning their re-appointment will be proposed at the Annual General Meeting.
On behalf of the board
Mr N P Collins
Director
8 April 2024
Page 3
Page 4
Independent Auditor's Report
Opinion
We have audited the financial statements of Knott-Avonride Limited for the year ended 31 December 2023 which comprise the Statement of Comprehensive Income, Balance Sheet, Statement of Changes of Equity, Cash Flow Statement and the related notes, 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 (United Kingdom Generally Accepted Accounting Practice), including FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland".
In our opinion the financial statements:
  • give a true and fair view of the state of the company's affairs as at 31 December 2023 and of its profit/(loss) for the year then ended;
  • have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
  • have been prepared in accordance with the requirements of the Companies Act 2006.
Basis for Opinion
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the 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 entity's ability to continue as a going concern for a period of at least 12 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. 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 Strategic Report and Directors' Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
  • the Strategic Report and Directors' Report have been prepared in accordance with applicable legal requirements.
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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:
  • adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
  • the financial statements are not in agreement with the accounting records or returns; or
  • certain disclosures of directors' remuneration specified by law are not made; or
  • we have not received all the information and explanations we require for our audit.
Responsibilities of Directors
As explained more fully in the Directors' Responsibilities Statement set out on page 2—3, 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.
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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: 
The Company is subject to many laws and regulations within the country it operates, where the consequences of non-compliance could have a material effect on amounts or disclosures in the financial statements. We identified the following laws and regulations as the most likely to have a material effect if non-compliance were to occur; financial reporting legislation, Companies Act legislation, tax legislation, anti-bribery legislation and employment law;
We communicated relevant laws and regulations and potential fraud risks to all engagement team members and remained alert to any indications of fraud or non-compliance with laws and regulations throughout the audit;
We understood how the Company is complying with those legal and regulatory frameworks by making enquiries of management. We corroborated our enquiries through our review of board minutes;
We assessed the susceptibility of the Company’s financial statements to material misstatement, including how fraud might occur by meeting with employees from different parts of the business to understand where it is considered there was susceptibility to fraud. We also considered performance targets and their propensity to influence efforts made by management to manage earnings. We considered the programs and controls that the Company has established to address risks identified, or that otherwise prevent, deter and detect fraud; and how senior management monitors those programs and controls. Where the risk was considered to be higher, we performed audit procedures to addressed identified fraud risk;
Our audit procedures involved: journal entry testing, with a focus on manual credits to revenue and journals indicating large or unusual transactions based on our understanding of the business and enquiries of management. In addition, we completed audit procedures to conclude on the compliance of disclosures in the annual report and accounts with applicable financial reporting requirements; 
Assessment and appropriateness of the collective competence and capabilities of the engagement team included consideration of the engagement team’s:
  • Knowledge of the industry in which the client operates
  • Understanding the legal and regulatory requirements specific to the entity including:
  • The provisions of the applicable legislation
  • The regulators rules and related guidance, including guidance issued by relevant authorities that interprets those rules
  • The provisions of the applicable legislation
  • The regulators rules and related guidance, including guidance issued by relevant authorities that interprets those rules
  • The applicable statutory provisionsIn assessing the potential risks of material misstatement, we obtained an understanding of:
  • The entity’s operations, including the nature of its revenue sources, products and services and of its objectives and strategies to understand classes of transactions, account balances, expected financial statement disclosures and business risks that may result in risks of material misstatement. 
  • The entity’s control environment, including policies and procedures implemented to comply with the entity’s relevant regulatory requirements, including the adequacy of procedures for authorisation of transactions, internal review procedures over the entity’s compliance with regulatory requirements and procedures to ensure that possible breaches of requirements are appropriately investigated and reported. 
A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website 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 that 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.
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Mr D Johnson FCCA (Senior Statutory Auditor)
for and on behalf of Nuvo Audit Limited , Statutory Auditor
8 April 2024
Nuvo Audit Limited
7 Faraday Court
First Avenue
Burton Upon Trent
Staffordshire
DE14 2WX
Page 7
Page 8
Statement of Comprehensive Income
2023 2022
Notes £ £
TURNOVER 4 26,851,327 33,915,687
Cost of sales (20,209,424 ) (26,955,448 )
GROSS PROFIT 6,641,903 6,960,239
Distribution costs (1,168,424 ) (1,496,438 )
Administrative expenses (6,120,969 ) (6,109,509 )
Other operating income 4,684 4,684
OPERATING LOSS 6 (642,806 ) (641,024 )
Profit on disposal of fixed assets 32,470 23,000
Other interest receivable and similar income 11 - 3,988
Interest payable and similar charges 12 (457,649 ) (242,623 )
LOSS BEFORE TAXATION (1,067,985 ) (856,659 )
Tax on Loss 13 311,668 188,914
LOSS AFTER TAXATION BEING LOSS FOR THE FINANCIAL YEAR (756,317 ) (667,745 )
OTHER COMPREHENSIVE INCOME FOR THE YEAR - -
TOTAL COMPREHENSIVE INCOME FOR THE YEAR (756,317 ) (667,745 )
The notes on pages 12 to 22 form part of these financial statements.
Page 8
Page 9
Balance Sheet
Registered number: 01691074
2023 2022
Notes £ £ £ £
FIXED ASSETS
Tangible Assets 14 3,522,437 3,411,940
Investments 15 50,419 50,419
3,572,856 3,462,359
CURRENT ASSETS
Stocks 16 7,846,417 8,920,446
Debtors 17 4,095,865 4,476,240
Cash at bank and in hand 203,436 219,919
12,145,718 13,616,605
Creditors: Amounts Falling Due Within One Year 18 (13,386,453 ) (13,985,842 )
NET CURRENT ASSETS (LIABILITIES) (1,240,735 ) (369,237 )
TOTAL ASSETS LESS CURRENT LIABILITIES 2,332,121 3,093,122
Creditors: Amounts Falling Due After More Than One Year 19 (172,930 ) (177,614 )
NET ASSETS 2,159,191 2,915,508
CAPITAL AND RESERVES
Called up share capital 22 750 750
Capital redemption reserve 250 250
Profit and Loss Account 2,158,191 2,914,508
SHAREHOLDERS' FUNDS 2,159,191 2,915,508
On behalf of the board
Mr N P Collins
Director
8 April 2024
The notes on pages 12 to 22 form part of these financial statements.
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Statement of Changes in Equity
Share Capital Capital Redemption Profit and Loss Account Total
£ £ £ £
As at 1 January 2022 750 250 3,582,253 3,583,253
Loss for the year and total comprehensive income - - (667,745 ) (667,745)
Dividends paid - - - -
As at 31 December 2022 and 1 January 2023 750 250 2,914,508 2,915,508
Loss for the year and total comprehensive income - - (756,317 ) (756,317)
Dividends paid - - - -
As at 31 December 2023 750 250 2,158,191 2,159,191
Page 10
Page 11
Statement of Cash Flows
2023 2022
Notes £ £
Cash flows from operating activities
Net cash generated from operations 1 20,955 1,268,922
Interest paid (457,650 ) (242,623 )
Tax paid - (110,657 )
Net cash (used in)/generated from operating activities (436,695 ) 915,642
Cash flows from investing activities
Purchase of tangible assets (412,277 ) (405,403 )
Proceeds from disposal of tangible assets 32,470 25,750
Grants received 4,684 4,684
Interest received - 3,988
Net cash used in investing activities (375,123 ) (370,981 )
(Decrease)/increase in cash and cash equivalents (811,818 ) 544,661
Cash and cash equivalents at beginning of year 2 (1,137,798 ) (1,682,459 )
Cash and cash equivalents at end of year 2 (1,949,616 ) (1,137,798 )
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Notes to the Statement of Cash Flows
1. Reconciliation of loss for the financial year to cash generated from operations
2023 2022
£ £
Loss for the financial year (756,317 ) (667,745 )
Adjustments for:
Tax on loss (311,668 ) (188,914 )
Interest expense 457,649 242,623
Interest income - (3,988 )
Depreciation of tangible assets 301,781 279,845
Profit on disposal of tangible assets (32,470) (23,000)
Grant income (4,684) (4,684)
Movements in working capital:
Decrease/(increase) in stocks 1,074,029 (886,847 )
Decrease/(increase) in trade and other debtors 692,043 (492,732 )
(Decrease)/increase in trade and other creditors (1,399,408 ) 3,014,364
Net cash generated from operations 20,955 1,268,922
2. Cash and cash equivalents
Cash and cash equivalents, as stated in the Statement of Cash Flows, relates to the following items in the Balance Sheet:
2023 2022
£ £
Cash at bank and in hand 203,436 219,919
Overdraft facilities repayable on demand (2,153,052 ) (1,357,717 )
Cash and cash equivalents as stated in the Statement of Cash Flows (1,949,616) (1,137,798)
3. Analysis of changes in net debt
As at 1 January 2023 Cash flows As at 31 December 2023
£ £ £
Cash at bank and in hand 219,919 (16,483) 203,436
Overdraft facilities repayable on demand (1,357,717) (795,335) (2,153,052)
Cash and cash equivalents (1,137,798 ) (811,818) (1,949,616 )
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Notes to the Financial Statements
1. General Information
Knott-Avonride Limited is a private company, limited by shares, incorporated in England & Wales, registered number 01691074 . The registered office is Europa House, Second Avenue, Burton Upon Trent, DE14 2WF.
2. Statement of Compliance
The 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
3.1. Basis of Preparation of Financial Statements
The financial statements have been prepared under the historical cost convention.
3.2. Turnover
Turnover is measured at the fair value of the consideration received or receivable, net of discounts and value added taxes. Turnover includes revenue earned from the sale of goods and from the rendering of services. Turnover is reduced for estimated customer returns, rebates and other similar allowances.
Sale of goods
Turnover from the sale of goods is recognised when the significant risks and rewards of ownership of the goods has transferred to the buyer. This is usually at the point that the customer has signed for the delivery of the goods.
Rendering of services
Turnover from the rendering of services is recognised by reference to the stage of completion of the contract. The stage of completion of a contract is measured by comparing the costs incurred for work performed to date to the total estimated contract costs. Turnover is only recognised to the extent of recoverable expenses when the outcome of a contract cannot be estimated reliably.
3.3. Tangible Fixed Assets and Depreciation
Tangible fixed assets are measured at cost less accumulated depreciation and any accumulated impairment losses. Depreciation is provided at rates calculated to write off the cost of the fixed assets, less their estimated residual value, over their expected useful lives on the following bases:
Freehold 2% straight line
Leasehold 2% straight line
Plant & Machinery 10-25% straight line
Motor Vehicles 10-25% straight line
Fixtures & Fittings 10-25% straight line
Computer Equipment 10-25% straight line
3.4. Investments
Investments in unquoted equity instruments are measured at fair value. Changes in fair value are recognised in profit or loss. Fair value is estimated by using a valuation technique.
3.5. Leasing and Hire Purchase Contracts
Assets obtained under finance leases are capitalised as tangible fixed assets. Assets acquired under finance leases are depreciated over the shorter of the lease term and their useful lives. Assets acquired under hire purchase contracts are depreciated over their useful lives. Finance leases are those where substantially all of the benefits and risks of ownership are assumed by the company. Obligations under such agreements are included in the creditors net of the finance charge allocated to future periods. The finance element of the rental payment is charged to the profit and loss account so as to produce a constant periodic rate of charge on the net obligation outstanding in each period.

Rentals applicable to operating leases where substantially all of the benefits and risks of ownership remain with the lessor are charged to profit and loss account as incurred.
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3.6. Stocks and Work in Progress
Stocks and work in progress are valued at the lower of cost and net realisable value after making due allowance for obsolete and slow-moving stocks.
Cost is determined using the first-in, first-out method. Cost includes all direct costs and an appropriate proportion of fixed and variable overheads.
Work in progress is reflected in the accounts on a contract by contract basis by recording turnover and related costs as contract activity progresses.
At the end of each reporting period stocks are assessed for impairment. If an item of stock is impaired, the identified stock is reduced to its selling price less costs to complete and sell and an impairment charge is recognised in the profit and loss account. Where a reversal of the impairment is required the impairment charge is reversed, up to the original impairment loss, and is recognised as a credit in the profit and loss account.
3.7. Cash and Cash Equivalents
Cash and cash equivalents are basic financial assets and include cash in hand and deposits held at call with banks, other short-term highly liquid investments that mature in no more than three months from the date of acquisition and are readily convertible to a known amount of cash with insignificant risk of change in value, and bank overdrafts.
3.8. Foreign Currencies
Monetary assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the balance sheet date. Transactions in foreign currencies are translated into sterling at the rate ruling on the date of the transaction. Exchange differences are taken into account in arriving at the operating profit.
3.9. Taxation
Income tax expense represents the sum of the tax currently payable and deferred tax.
The tax currently payable is based on taxable profit for the year. Taxable profit differs from profit as reported in the statement of comprehensive income because of items of income or expense that are taxable or deductible in other years and items that are never taxable or deductible. The company's liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the end of the reporting period.
Deferred tax is recognised on timing differences between the carrying amounts of assets and liabilities in the financial statements and the corresponding tax bases used in the computation of taxable profit. Deferred tax liabilities are generally recognised for all taxable timing differences. Deferred tax assets are generally recognised for all deductible temporary differences to the extent that it is probable that taxable profits will be available against which those deductible timing differences can be utilised. The carrying amount of deferred tax assets is reviewed at the end of each reporting period and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered.
Deferred tax assets and liabilities are measured at the tax rates that are expected to apply in the period in which the liability is settled or the asset realised, based on tax rates (and tax laws) that have been enacted or substantively enacted by the end of the reporting period. Deferred tax liabilities are presented within provisions for liabilities and deferred tax assets within debtors. The measurement of deferred tax liabilities and assets reflect the tax consequences that would follow from the manner in which the Company expects, at the end of the reporting period, to recover or settle the carrying amount of its assets and liabilities.
Current or deferred tax for the year is recognised in profit or loss, except when they related to items that are recognised in other comprehensive income or directly in equity, in which case, the current and deferred tax is also recognised in other comprehensive income or directly in equity respectively.
3.10. Pensions
The company operates a defined pension contribution scheme. Contributions are charged to the profit and loss account as they become payable in accordance with the rules of the scheme.
4. Turnover
Analysis of turnover by class of business is as follows:
2023 2022
£ £
Sale of Goods 26,851,327 33,915,687
In accordance with UKSI 2008/410, schedule 1, paragraph 68, the company has not disclosed an analysis of turnover by geographical market as the directors are of the opinion it would be seriously prejudicial to the interests of the company.
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5. Other Operating Income
2023 2022
£ £
Grant income 4,684 4,684
4,684 4,684
6. Operating Loss
The operating loss is stated after charging:
2023 2022
£ £
Bad debts 3,962 6,107
Depreciation of tangible fixed assets 301,781 279,845
7. Auditor's Remuneration
Remuneration received by the company's auditors and their associates during the year was as follows:
2023 2022
£ £
Audit Services
Audit of the company's financial statements 12,000 12,000
Non-Audit Services
Other non-audit services 8,100 5,260
8. Staff Costs
Staff costs, including directors' remuneration, were as follows:
2023 2022
£ £
Wages and salaries 3,498,534 3,583,829
Social security costs 332,360 345,282
Other pension costs 182,298 187,022
4,013,192 4,116,133
9. Average Number of Employees
Average number of employees, including directors, during the year was as follows:
2023 2022
Office and administration 38 40
Manufacturing 65 76
Directors 3 4
106 120
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10. Directors' remuneration
2023 2022
£ £
Emoluments 326,391 363,111
Company contributions to money purchase pension schemes 27,180 38,552
353,571 401,663
The number of directors to whom retirement benefits were accruing was as follows:
2023 2022
Money purchase pension schemes 3 3
Information regarding the highest paid director was as follows:
2023 2022
£ £
Emoluments 138,728 147,000
Company contributions to money purchase pension schemes 14,567 19,641
153,295 166,641
11. Interest Receivable and Similar Income
2023 2022
£ £
Bank interest receivable - 3,988
- 3,988
12. Interest Payable and Similar Charges
2023 2022
£ £
Bank loans and overdrafts 417,510 249,451
Foreign exchange (gains)/losses 40,139 (6,828 )
457,649 242,623
13. Tax on Profit
The tax credit on the loss for the year was as follows:
Tax Rate 2023 2022
2023 2022 £ £
Current tax
UK Corporation Tax 25.0% 19.0% - (127,041 )
Deferred Tax
Deferred taxation (311,668 ) (61,873 )
Total tax charge for the period (311,668 ) (188,914 )
The actual credit for the year can be reconciled to the expected credit for the year based on the loss and the standard rate of corporation tax as follows:
...CONTINUED
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2023 2022
£ £
Profit before tax (1,067,985) (856,659)
Tax on profit at 25% (UK standard rate) - -
Tax losses utilised - (127,041 )
Short term timing differences (311,668 ) (61,873 )
Total tax charge for the period (311,668) (188,914)
14. Tangible Assets
Land & Property
Freehold Leasehold Plant & Machinery Motor Vehicles
£ £ £ £
Cost
As at 1 January 2023 1,213,519 2,554,654 1,515,859 869,536
Additions - - 238,511 94,151
Disposals - - (1,160 ) (251,127 )
As at 31 December 2023 1,213,519 2,554,654 1,753,210 712,560
Depreciation
As at 1 January 2023 346,334 569,250 1,341,712 604,522
Provided during the period 26,380 40,670 94,344 88,449
Disposals - - (1,160 ) (251,127 )
As at 31 December 2023 372,714 609,920 1,434,896 441,844
Net Book Value
As at 31 December 2023 840,805 1,944,734 318,314 270,716
As at 1 January 2023 867,185 1,985,404 174,147 265,014
Fixtures & Fittings Computer Equipment Total
£ £ £
Cost
As at 1 January 2023 560,848 222,980 6,937,396
Additions 72,816 6,799 412,277
Disposals (70,632 ) (2,390 ) (325,309 )
As at 31 December 2023 563,032 227,389 7,024,364
Depreciation
As at 1 January 2023 493,692 169,946 3,525,456
Provided during the period 32,661 19,276 301,780
Disposals (70,632 ) (2,390 ) (325,309 )
As at 31 December 2023 455,721 186,832 3,501,927
Net Book Value
As at 31 December 2023 107,311 40,557 3,522,437
As at 1 January 2023 67,156 53,034 3,411,940
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15. Investments
Unlisted
£
Cost
As at 1 January 2023 50,419
As at 31 December 2023 50,419
Provision
As at 1 January 2023 -
As at 31 December 2023 -
Net Book Value
As at 31 December 2023 50,419
As at 1 January 2023 50,419
Subsidiaries
Details of the company's subsidiaries as at 31 December 2023 are as follows:
Name of undertaking Registered Office Class of shares held Direct holding Indirect holding
Avonride Limited Europa House, Second Avenue, Centrum 100, Burton Upon Trent, DE14 2WF Ordinary 100.00% -
Knott Limited Europa House, Second Avenue, Centrum 100, Burton Upon Trent, DE14 2WF Ordinary 100.00% -
The aggregate capital and reserves and the result for the year of the subsidiaries listed above was as follows:
Capital and Reserves Profit/(loss)
£ £
Avonride Limited 50,418 -
Knott Limited 1 -
16. Stocks
2023 2022
£ £
Materials 3,561,837 4,282,929
Finished goods 4,252,302 4,531,927
Work in progress 32,278 105,590
7,846,417 8,920,446
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17. Debtors
2023 2022
£ £
Due within one year
Trade debtors 3,161,349 3,776,541
Prepayments and accrued income 128,756 269,877
Other debtors 28,959 29,325
Corporation tax recoverable assets 147,116 147,116
Deferred tax current asset - 87,962
Amounts owed by group undertakings 230,055 165,419
3,696,235 4,476,240
Due after more than one year
Deferred tax current asset 399,630 -
399,630 -
4,095,865 4,476,240
18. Creditors: Amounts Falling Due Within One Year
2023 2022
£ £
Trade creditors 1,418,071 1,478,955
Bank loans and overdrafts 2,153,052 1,357,717
Amounts owed to group undertakings 8,669,066 10,499,717
Other creditors 681 5,594
Taxation and social security 705,538 343,979
Accruals and deferred income 440,045 299,880
13,386,453 13,985,842
Included within bank loans and overdrafts is an invoice discounting facility of £2,153,052 (2022: £1,357,717) which is secured against trade debtors.
Included within accruals and deferred income is deferred income of £4,684 (2022: £4,684) relating to grant income received as contribution toward capital expenditure. The income is being released to the profit and loss account in line with the assets' depreciation policies.
19. Creditors: Amounts Falling Due After More Than One Year
2023 2022
£ £
Accruals and deferred income 172,930 177,614
172,930 177,614
Included within accruals and deferred income is deferred income of £172,930 (2022: £177,614) relating to grant income received as contribution toward capital expenditure. The income is being released to the profit and loss account in line with the assets' depreciation policies.
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21. Capital Grants
2023 2022
£ £
Balance at 1 January 2023 182,298 186,982
Increase / (Decrease) in the year (4,684) (4,684)
Balance at 31 December 2023 177,614 182,298
Included within accruals and deferred income is deferred income relating to grant income received as contribution toward capital expenditure. The income is being released to the profit and loss account in line with the assets' depreciation policies.
22. Share Capital
2023 2022
Allotted, called up and fully paid £ £
750 Ordinary Shares of £ 1.00 each 750 750
23. Other Commitments
The total of future minimum lease payments under non-cancellable operating leases are as following:
2023 2022
£ £
Not later than one year 335,000 335,000
Later than one year and not later than five years 921,250 1,256,250
1,256,250 1,591,250
24. Pension Commitments
The company operates a defined contribution pension scheme. The assets of the scheme are held separately from those of the company in an independently administered fund.
During the year the charge to profit or loss in respect of defined contribution schemes was £182,298 (2022: £187,022).
At the balance sheet date contributions of £NIL were due to the fund.
25. Related Party Disclosures
As at 31 December 2023, there is an amount of £353 (2022: £2,220) due to Mr N Collins, a director of the company, from the company. The amount is unsecured, interest free and has no fixed repayment date.
As at 31 December 2023, there is an amount of £328 (2022: £328) due to Mr V Knott, a director of the company, from the company. The amount is unsecured, interest free and has no fixed repayment date.
During the year there were the following transactions with parent company:
Knott Holding GmbH (KHG)
Sales £1,110 (€1,276 (2022: £Nil, €Nil))
Purchases £25,955 (€29,840 (2022: £24,792, €29,073))
Interest Charged £Nil (€Nil)
At the balance sheet date included within debtors is £Nil (€Nil (2022: £Nil, €Nil)) and included within creditors is £Nil (€Nil (2022: £25,786, €29,073)).
During the year there were the following transactions with related parties. All parties are fellow subsidiaries of Knott Holding GmbH and occurred at arm’s length under normal commercial terms.
...CONTINUED
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25. Related Party Disclosures - continued
Autoflex-Knott Kft (AKK)
Sales £39,315 (€45,201 (2022: £162,455, €190,511))
Purchases £444,484 (€511,023 (2022: £1,871,525, €2,194,737))
At the balance sheet date included within debtors is £8,605 (€9,902 (2022: £66 €74)) and included within creditors is £Nil (€Nil (2022: £-173, €-195)).
Knott Brake Company (KBC)
Sales £66,622 (€76,595 (2022: £20,402, €23,925))
Purchases £Nil (€Nil (2022: £Nil, €Nil))
At the balance sheet date included within debtors is £Nil (€Nil (2022: £Nil, €Nil)) and included within creditors is £Nil (€Nil (2022: £Nil, €Nil)).
Knott S.p.A (KIT)
Sales £66,278 (€76,200 (2022: £92,365, €108,316))
Purchases £1,558,514 (€1,791,824 (2022: £2,299,234, €2,696,312))
At the balance sheet date included within debtors is £Nil (€Nil (2022: £Nil, €Nil)) and included within creditors is £28,475 (€32,766 (2022: £Nil, €Nil)).
Knott GmbH (KGE)
Sales £2,398,336 (€2,757,366 (2022: £2,381,088, €2,792,302))
Purchases £4,850,139 (€5,576,205 (2022: £6,218,040, €7,291,895))
At the balance sheet date included within debtors is £1,121 (€1,290 (2022: £Nil, €Nil)) and included within creditors is £330,497 (€380,296 (2022: £Nil, €Nil)).
Knott spol s.r.o (KSK)
Sales £104,757 (€120,439 (2022: £214,123, €251,101))
Purchases £2,433,274 (€2,797,535 (2022: £3,116,271, €3,654,450))
At the balance sheet date included within debtors is £-157 (€-181 (2022: £6,074, €6,848)) and included within creditors is £-157 (€-181 (2022: £Nil, €Nil)).
Knott sp.z.o.o (KPL)
Sales £37,937 (€43,617 (2022: £122,597, €143,769))
Purchases £132,230 (€152,024 (2022: £149,739, €175,599))
At the balance sheet date included within debtors is £Nil (€Nil (2022: £Nil, €Nil)) and included within creditors is £Nil (€Nil (2022: £Nil, €Nil)).
Knott-Technik-Flex Kft (TEC)
Sales £Nil (€Nil (2022: £Nil, €Nil))
Purchases £1,557,358 (€1,790,495 (2022: £1,622,599, €1,902,822))
At the balance sheet date included within debtors is £Nil (€Nil (2022: £Nil, €Nil)) and included within creditors is £56,244 (€64,719 (2022: £Nil, €Nil)).
Knott FS Management Services (KFS)
Sales £ Nil (€Nil (2022: £ Nil, €Nil))
Purchases £Nil (€Nil (2022: £ Nil, € Nil))
Interest Charged £417,581 (€480,093) (2022: £244,479 (€286,700)
At the balance sheet date included within debtors is £Nil (€Nil (2022: £Nil, €Nil)) and included within creditors is £8,620,660 (€9,919,621 (2022: £10,451,290, €11,783,829)).
Autoflex-Knott Iberica (AKI)
Sales £717,478 (€824,885 (2022: £473,936, €555,785))
Purchases £Nil (€Nil (2022: £Nil, €Nil))
At the balance sheet date included within debtors is £158,574 (€182,468 (2022: £88,352, €99,617)) and included within creditors is £Nil (€Nil (2022: £Nil, €Nil)). 
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26. Controlling Parties
The ultimate parent undertaking is Knott Holding GmbH (incorporated in Germany). Its registered office is Obinger Stasse 17, Eggstátt 83125, Germany.
Copies of the group accounts may be obtained from the company's registered office.
The company's ultimate controlling party is Mr V Knott by virtue of their interest in the share capital of the company.
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