REGISTERED NUMBER: 01211144 (England and Wales) |
GROUP STRATEGIC REPORT, |
REPORT OF THE DIRECTOR AND |
CONSOLIDATED FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 31 MARCH 2024 |
FOR |
KABY ENGINEERS LIMITED |
REGISTERED NUMBER: 01211144 (England and Wales) |
GROUP STRATEGIC REPORT, |
REPORT OF THE DIRECTOR AND |
CONSOLIDATED FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 31 MARCH 2024 |
FOR |
KABY ENGINEERS LIMITED |
KABY ENGINEERS LIMITED (REGISTERED NUMBER: 01211144) |
CONTENTS OF THE CONSOLIDATED FINANCIAL STATEMENTS |
for the Year Ended 31 March 2024 |
Page |
Company Information | 1 |
Group Strategic Report | 2 |
Report of the Director | 3 |
Report of the Independent Auditors | 5 |
Consolidated Income Statement | 8 |
Consolidated Other Comprehensive Income | 9 |
Consolidated Balance Sheet | 10 |
Company Balance Sheet | 11 |
Consolidated Statement of Changes in Equity | 12 |
Company Statement of Changes in Equity | 13 |
Consolidated Cash Flow Statement | 14 |
Notes to the Consolidated Cash Flow Statement | 15 |
Notes to the Consolidated Financial Statements | 16 |
KABY ENGINEERS LIMITED |
COMPANY INFORMATION |
for the Year Ended 31 March 2024 |
DIRECTOR: |
REGISTERED OFFICE: |
REGISTERED NUMBER: |
AUDITORS: |
Chartered Accountants |
Statutory Auditor |
Unit 8 Oak Spinney Park |
Ratby Lane |
Leicester Forest East |
Leicester |
LE3 3AW |
BANKERS: | Santander UK PLC |
BBAM |
Bridle Road |
Bootle |
Merseyside |
L304GB |
KABY ENGINEERS LIMITED (REGISTERED NUMBER: 01211144) |
GROUP STRATEGIC REPORT |
for the Year Ended 31 March 2024 |
The director presents his strategic report of the company and the group for the year ended 31 March 2024. |
REVIEW OF BUSINESS |
We 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 nature of our business and is written in the context of the risks and uncertainties we face. |
We consider that our key financial performance indicators are those that communicate the financial performance and strength of the group as a whole, these being turnover, gross margin and return on investment. |
The accounts show a decrease in turnover for the year and gross profit decreasing from £4,911,811 to £4,871,015. The group made a operating profit of £437,868 for the year as compared to a profit of £403,968 in 2023. |
The group declared a net profit after tax and other comprehensive income of £145,473 in the period compared to a profit of £67,647 in 2023. |
The groups results for the year reflect the continued challenging environment for the global economy. The group with the support of its customers, suppliers and staff has been able to increase total comprehensive income from previous year. The coming year will continue to be challenging for us and the global economy but with a strong order book, valued staff support and continued controlling of costs we hope to see improvement in our results. |
ON BEHALF OF THE BOARD: |
KABY ENGINEERS LIMITED (REGISTERED NUMBER: 01211144) |
REPORT OF THE DIRECTOR |
for the Year Ended 31 March 2024 |
The director presents his report with the financial statements of the company and the group for the year ended 31 March 2024. |
PRINCIPAL ACTIVITY |
The principal activity of the company continued to be that of light engineering. |
DIVIDENDS |
No dividends will be distributed for the year ended 31 March 2024. |
DIRECTORS |
Other changes in directors holding office are as follows: |
EMPLOYEE INVOLVEMENT |
The company's policy is to consult and discuss with employees, through unions, staff councils and at meetings, matters likely to affect employees' interests. |
Information of matters of concern to employees is given through information bulletins and reports which seek to achieve a common awareness on the part of all employees of the financial and economic factors affecting the group's performance. |
DISABLED PERSONS |
The company's policy is to recruit disabled workers for those vacancies that they are able to fill. All necessary assistance with initial training courses is given. Once employed, a career plan is developed so as to ensure suitable opportunities for each disabled person. Arrangements are made, wherever possible, for retraining employees who become disabled, to enable them to perform work identified as appropriate to their aptitudes and abilities. |
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 he 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 him to ensure that the financial statements comply with the Companies Act 2006. He 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 he has taken all the steps that he ought to have taken as a director in order to make himself aware of any relevant audit information and to establish that the group's auditors are aware of that information. |
KABY ENGINEERS LIMITED (REGISTERED NUMBER: 01211144) |
REPORT OF THE DIRECTOR |
for the Year Ended 31 March 2024 |
AUDITORS |
The auditors, SFB Group Limited, 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 |
KABY ENGINEERS LIMITED |
Opinion |
We have audited the financial statements of Kaby Engineers Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 March 2024 which comprise the Consolidated Income Statement, Consolidated Other Comprehensive Income, Consolidated Balance Sheet, Company Balance Sheet, Consolidated Statement of Changes in Equity, Company Statement of Changes in Equity, Consolidated Cash Flow Statement and Notes to the Consolidated Cash Flow Statement, Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice). |
In our opinion the financial statements: |
- | give a true and fair view of the state of the group's and of the parent company affairs as at 31 March 2024 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. |
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 |
KABY ENGINEERS 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 three, 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: |
- 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; |
- Enquiry of management around actual and potential litigation and claims; |
- Enquiry of management to identify any instances of non-compliance with laws and regulations; |
- We reviewed correspondence with legal and regulatory bodies where applicable; |
- We agreed the financial statements disclosures to underlying supporting documentation |
- We reviewed the detail of certain nominal accounts for indications of management override; |
- We gained an understanding of the design and implementation of the processes and controls in place within the group which are designed to prevent, detect or correct fraud or error within the financial statements |
- We challenged the accounting treatment applied in respect of revenue recognised during the year, in particular in relation to manual adjustments made to revenue, cut off between accounting periods; |
- We identified and tested journal entries which we considered to be unusual and maybe indicative of bias on the part of management or those charged with governance, investigating the rationale behind significant or unusual transactions. |
Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation. |
A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Auditors. |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
KABY ENGINEERS LIMITED |
Use of our report |
This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in a Report of the Auditors and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's members as a body, for our audit work, for this report, or for the opinions we have formed. |
for and on behalf of |
Chartered Accountants |
Statutory Auditor |
Unit 8 Oak Spinney Park |
Ratby Lane |
Leicester Forest East |
Leicester |
LE3 3AW |
KABY ENGINEERS LIMITED (REGISTERED NUMBER: 01211144) |
CONSOLIDATED |
INCOME STATEMENT |
for the Year Ended 31 March 2024 |
2024 | 2023 |
Notes | £ | £ | £ | £ |
TURNOVER | 3 | 17,656,014 | 20,467,072 |
Cost of sales | 12,784,999 | 15,555,261 |
GROSS PROFIT | 4,871,015 | 4,911,811 |
Distribution costs | 197,863 | 208,766 |
Administrative expenses | 4,235,284 | 4,336,629 |
4,433,147 | 4,545,395 |
437,868 | 366,416 |
Other operating income | - | 37,551 |
OPERATING PROFIT | 6 | 437,868 | 403,967 |
Interest receivable and similar income | 7 | 248 | - |
438,116 | 403,967 |
Interest payable and similar expenses | 8 | 392,643 | 336,321 |
PROFIT BEFORE TAXATION | 45,473 | 67,646 |
Tax on profit | 9 | - | - |
PROFIT FOR THE FINANCIAL YEAR |
Profit attributable to: |
Owners of the parent | 45,473 | 67,646 |
KABY ENGINEERS LIMITED (REGISTERED NUMBER: 01211144) |
CONSOLIDATED |
OTHER COMPREHENSIVE INCOME |
for the Year Ended 31 March 2024 |
2024 | 2023 |
Notes | £ | £ |
PROFIT FOR THE YEAR | 45,473 | 67,646 |
OTHER COMPREHENSIVE INCOME |
Revaluation on freehold property | 100,000 | - |
Income tax relating to other comprehensive income |
- |
- |
OTHER COMPREHENSIVE INCOME FOR THE YEAR, NET OF INCOME TAX |
100,000 |
- |
TOTAL COMPREHENSIVE INCOME FOR THE YEAR | 145,473 | 67,646 |
Total comprehensive income attributable to: |
Owners of the parent | 145,473 | 67,646 |
KABY ENGINEERS LIMITED (REGISTERED NUMBER: 01211144) |
CONSOLIDATED BALANCE SHEET |
31 March 2024 |
2024 | 2023 |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Intangible assets | 11 | 94,612 | 189,208 |
Tangible assets | 12 | 4,797,757 | 4,862,509 |
Investments | 13 | - | - |
4,892,369 | 5,051,717 |
CURRENT ASSETS |
Stocks | 14 | 1,927,916 | 2,057,443 |
Debtors | 15 | 2,492,896 | 3,376,126 |
Cash at bank | 106,493 | 440,973 |
4,527,305 | 5,874,542 |
CREDITORS |
Amounts falling due within one year | 16 | 3,950,612 | 5,260,498 |
NET CURRENT ASSETS | 576,693 | 614,044 |
TOTAL ASSETS LESS CURRENT LIABILITIES | 5,469,062 | 5,665,761 |
CREDITORS |
Amounts falling due after more than one year | 17 | 2,783,003 | 3,125,175 |
NET ASSETS | 2,686,059 | 2,540,586 |
CAPITAL AND RESERVES |
Called up share capital | 20 | 100,000 | 100,000 |
Fair value reserve | 1,711,216 | 1,611,216 |
Retained earnings | 874,843 | 829,370 |
SHAREHOLDERS' FUNDS | 2,686,059 | 2,540,586 |
The financial statements were approved by the director and authorised for issue on 4 September 2024 and were signed by: |
S T Williams - Director |
KABY ENGINEERS LIMITED (REGISTERED NUMBER: 01211144) |
COMPANY BALANCE SHEET |
31 March 2024 |
2024 | 2023 |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Intangible assets | 11 |
Tangible assets | 12 |
Investments | 13 |
CURRENT ASSETS |
Stocks | 14 |
Debtors | 15 |
Cash at bank |
CREDITORS |
Amounts falling due within one year | 16 |
NET CURRENT ASSETS |
TOTAL ASSETS LESS CURRENT LIABILITIES |
CREDITORS |
Amounts falling due after more than one year | 17 |
NET ASSETS |
CAPITAL AND RESERVES |
Called up share capital | 20 |
Fair value reserve |
Retained earnings |
SHAREHOLDERS' FUNDS |
Company's (loss)/profit for the financial year | (14,905 | ) | 7,248 |
The financial statements were approved by the director and authorised for issue on |
KABY ENGINEERS LIMITED (REGISTERED NUMBER: 01211144) |
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY |
for the Year Ended 31 March 2024 |
Called up | Fair |
share | Retained | value | Total |
capital | earnings | reserve | equity |
£ | £ | £ | £ |
Balance at 1 April 2022 | 100,000 | 761,724 | 1,611,216 | 2,472,940 |
Changes in equity |
Total comprehensive income | - | 67,646 | - | 67,646 |
Balance at 31 March 2023 | 100,000 | 829,370 | 1,611,216 | 2,540,586 |
Changes in equity |
Total comprehensive income | - | 45,473 | 100,000 | 145,473 |
Balance at 31 March 2024 | 100,000 | 874,843 | 1,711,216 | 2,686,059 |
KABY ENGINEERS LIMITED (REGISTERED NUMBER: 01211144) |
COMPANY STATEMENT OF CHANGES IN EQUITY |
for the Year Ended 31 March 2024 |
Called up | Fair |
share | Retained | value | Total |
capital | earnings | reserve | equity |
£ | £ | £ | £ |
Balance at 1 April 2022 |
Changes in equity |
Total comprehensive income | - |
Balance at 31 March 2023 |
Changes in equity |
Total comprehensive income | - | ( |
) |
Balance at 31 March 2024 |
KABY ENGINEERS LIMITED (REGISTERED NUMBER: 01211144) |
CONSOLIDATED CASH FLOW STATEMENT |
for the Year Ended 31 March 2024 |
2024 | 2023 |
Notes | £ | £ |
Cash flows from operating activities |
Cash generated from operations | 1 | 544,875 | (1,016,009 | ) |
Interest paid | (386,234 | ) | (319,776 | ) |
Interest element of hire purchase payments paid | (6,409 | ) | (16,545 | ) |
Tax paid | - | (18,494 | ) |
Net cash from operating activities | 152,232 | (1,370,824 | ) |
Cash flows from investing activities |
Purchase of tangible fixed assets | (157,531 | ) | (67,682 | ) |
Sale of tangible fixed assets | 13,500 | 5,400 |
Interest received | 248 | - |
Net cash from investing activities | (143,783 | ) | (62,282 | ) |
Cash flows from financing activities |
New loans in year | - | 2,737,000 |
Loan repayments in year | (354,250 | ) | (886,583 | ) |
Capital advances / (repayments) in year | 11,321 | (92,278 | ) |
Amount introduced by directors | - | 42,906 |
Net cash from financing activities | (342,929 | ) | 1,801,045 |
(Decrease)/increase in cash and cash equivalents | (334,480 | ) | 367,939 |
Cash and cash equivalents at beginning of year | 2 | 440,973 | 73,034 |
Cash and cash equivalents at end of year | 2 | 106,493 | 440,973 |
KABY ENGINEERS LIMITED (REGISTERED NUMBER: 01211144) |
NOTES TO THE CONSOLIDATED CASH FLOW STATEMENT |
for the Year Ended 31 March 2024 |
1. | RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS |
2024 | 2023 |
£ | £ |
Profit before taxation | 45,473 | 67,646 |
Depreciation charges | 416,879 | 460,721 |
Profit on disposal of fixed assets | (13,500 | ) | (5,400 | ) |
Finance costs | 392,643 | 336,321 |
Finance income | (248 | ) | - |
841,247 | 859,288 |
Decrease/(increase) in stocks | 129,527 | (334,591 | ) |
Decrease in trade and other debtors | 883,230 | 361,536 |
Decrease in trade and other creditors | (1,309,129 | ) | (1,902,242 | ) |
Cash generated from operations | 544,875 | (1,016,009 | ) |
2. | CASH AND CASH EQUIVALENTS |
The amounts disclosed on the Cash Flow Statement in respect of cash and cash equivalents are in respect of these Balance Sheet amounts: |
Year ended 31 March 2024 |
31.3.24 | 1.4.23 |
£ | £ |
Cash and cash equivalents | 106,493 | 440,973 |
Year ended 31 March 2023 |
31.3.23 | 1.4.22 |
£ | £ |
Cash and cash equivalents | 440,973 | 73,034 |
3. | ANALYSIS OF CHANGES IN NET DEBT |
At 1.4.23 | Cash flow | At 31.3.24 |
£ | £ | £ |
Net cash |
Cash at bank | 440,973 | (334,480 | ) | 106,493 |
440,973 | (334,480 | ) | 106,493 |
Debt |
Finance leases | (29,212 | ) | (11,321 | ) | (40,533 | ) |
Debts falling due within 1 year | (354,250 | ) | - | (354,250 | ) |
Debts falling due after 1 year | (2,117,063 | ) | 354,250 | (1,762,813 | ) |
(2,500,525 | ) | 342,929 | (2,157,596 | ) |
Total | (2,059,552 | ) | 8,449 | (2,051,103 | ) |
KABY ENGINEERS LIMITED (REGISTERED NUMBER: 01211144) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS |
for the Year Ended 31 March 2024 |
1. | STATUTORY INFORMATION |
Kaby Engineers Limited is a |
The presentation currency of the financial statements is the Pound Sterling (£). |
2. | ACCOUNTING POLICIES |
Compliance with accounting standards |
These financial statements have been prepared in accordance with Financial Reporting Standard 102 "The Financial Reporting Standard Applicable in the UK and Republic of Ireland" and the Companies Act 2006. The financial statements have been prepared on a going concern basis under the historical cost convention, modified to include certain items at fair value. |
The financial statements are prepared in accordance with applicable United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), which have been applied consistently (except as otherwise stated). |
Basis of consolidation |
The consolidated profit and loss account and balance sheet include the financial statements of the company and its subsidiary undertakings made up to 31 March 2024. The results of subsidiaries sold or acquired are included in the profit and loss account up to, or from the date control passes. Intra-group sales and profits are eliminated fully on consolidation. |
Going concern |
The group has carried out assessments of the future trading performance and cash flows with sensitivities completed to reflect the current uncertain environment. The results of these assessments were reviewed considering the financial position of the Group at 31 March 2024, the cost and cash mitigation measures available to it, and the access to ongoing funding facilities. Based on these assessments the director has a reasonable expectation that the Group will be able to meet its financial obligations for the foreseeable future and have adequate resources to continue to operate for at least 12 months from the date of this annual report. The director therefore considers it appropriate to adopt the going concern basis in preparing these financial statements. |
Turnover |
Turnover is measured at the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. |
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. |
Intangible fixed assets |
Intangible fixed assets represent capitalised research and development costs. No amortisation is to be applied in the year of acquisition. The balance as at 31 March 2024 will be amortised over one year. |
Tangible fixed assets |
Tangible fixed assets include investment properties professionally valued by Chartered Surveyors on an existing use open market value basis. Tangible fixed assets other than freehold land are stated at cost or valuation less depreciation. Depreciation is provided at rates calculated to write off the cost or valuation less estimated residual value of each asset over its expected useful life, as follows: |
Freehold buildings - 2% per annum of cost or valuation |
Leasehold property improvement - Straight line over 7 years |
Plant, machinery, fixtures and fittings - 10%-50% per annum of cost & 15% reducing balance |
Office equipment - 20% reducing balance |
Motor vehicles - 20% per annum of cost & 25% reducing balance |
KABY ENGINEERS LIMITED (REGISTERED NUMBER: 01211144) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
for the Year Ended 31 March 2024 |
2. | ACCOUNTING POLICIES - continued |
Stocks |
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 items. |
Cost includes all direct expenditure and an appropriate proportion of fixed and variable overheads. |
Debtors and creditors receivable / payable within one year |
Debtors and creditors with no stated interest rate and receivable or payable within one year are recorded at transaction price. Any losses arising from impairment are recognised in the profit and loss account in other administrative expenses. |
Deferred tax |
Deferred tax represents the future tax consequences of transactions and events recognised in the financial statements of current and previous periods. It is recognised in respect of all timing differences, with certain exceptions. Timing differences are differences between taxable profits and total comprehensive income as stated in the financial statements that arise from the inclusion of income and expense in tax assessments in periods different from those in which they are recognised in the financial statements. 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. |
Deferred tax is measured using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date that are expected to apply to the reversal of timing differences. Deferred tax on revalued non-depreciable tangible fixed assets and investment properties is measured using the rates and allowances that apply to the sale of the asset. |
Foreign currencies |
Assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the balance sheet date. Transactions in foreign currencies are translated into sterling at the rate of exchange ruling at the date of transaction. Exchange differences are taken into account in arriving at the operating result. |
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 or the lease term, whichever is the shorter. |
The interest element of these obligations is charged to the profit and loss account over the relevant period. The capital element of the future payments is treated as a liability. |
Rentals paid / received under operating leases are charged / credited to the profit and loss account 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. |
Investments |
Fixed asset investments are stated at cost less provision for diminution in value. |
KABY ENGINEERS LIMITED (REGISTERED NUMBER: 01211144) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
for the Year Ended 31 March 2024 |
2. | ACCOUNTING POLICIES - continued |
Critical accounting judgements and key sources of estimation uncertainty |
The group makes estimates and assumptions concerning the future. Management are also required to exercise judgement in the process of applying the group accounting policies. Estimates and judgements are continually evaluated and are based on historical experience and other factors,including expectations of future events that are believed to be reasonable under the circumstances. |
The estimates and assumptions that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are addressed below: |
Depreciation and residual values |
The director has reviewed the asset lives and associated residual values of all fixed asset classes, and in particular, the useful economic lives and residual values of fixture & fittings and plant & machinery, and have concluded that asset lives and residual values are appropriate. |
The actual lives of the assets and residual values are assessed annually and may vary depending on a number of factors. In re-assessing asset lives, factors such as technological innovation, product life cycles and maintenance programmes are taken into account. Residual value assessments consider issues such as future market conditions, the remaining life of the asset and project disposal values. |
Finished Goods |
Stock includes attributable labour and overheads and are based on management's estimate of the absorption of fixed and variable costs in the manufacturing process excluding selling and marketing costs. |
Leases |
The director determines whether leases entered into by the company either as a lessor or a lessee are operating lease or finance leases. These decisions depend on an assessment of whether the risks and rewards of ownership have been transferred from the lessor to the lessee on a lease by lease basis based on an evaluation of the terms and conditions of the arrangements, and accordingly whether the lease requires an asset and liability to be recognised in the statement of financial position. |
3. | TURNOVER |
The turnover and profit before taxation are attributable to the one principal activity of the group. |
An analysis of turnover by geographical market is given below: |
2024 | 2023 |
£ | £ |
United Kingdom | 13,031,650 | 14,734,624 |
Europe | 3,779,625 | 4,961,747 |
United States of America | 611,902 | 770,701 |
Rest of the world | 232,837 | - |
17,656,014 | 20,467,072 |
4. | EMPLOYEES AND DIRECTORS |
2024 | 2023 |
£ | £ |
Wages and salaries | 4,403,949 | 4,987,267 |
Social security costs | 366,827 | 436,502 |
Other pension costs | 78,383 | 77,878 |
4,849,159 | 5,501,647 |
KABY ENGINEERS LIMITED (REGISTERED NUMBER: 01211144) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
for the Year Ended 31 March 2024 |
4. | EMPLOYEES AND DIRECTORS - continued |
The average number of employees during the year was as follows: |
2024 | 2023 |
Staff | 23 | 23 |
Production | 126 | 141 |
5. | DIRECTORS' EMOLUMENTS |
2024 | 2023 |
£ | £ |
Directors' remuneration | 149,710 | 125,265 |
6. | OPERATING PROFIT |
The operating profit is stated after charging/(crediting): |
2024 | 2023 |
£ | £ |
Hire of plant and machinery | 19,678 | 19,441 |
Other operating leases | 143,500 | 166,769 |
Depreciation - owned assets | 295,120 | 340,336 |
Depreciation - assets on hire purchase contracts | 27,163 | 25,789 |
Profit on disposal of fixed assets | (13,500 | ) | (5,400 | ) |
Development costs amortisation | 94,596 | 94,596 |
Auditors' remuneration | 13,535 | 10,300 |
7. | INTEREST RECEIVABLE AND SIMILAR INCOME |
2024 | 2023 |
£ | £ |
Other interest | 248 | - |
8. | INTEREST PAYABLE AND SIMILAR EXPENSES |
2024 | 2023 |
£ | £ |
Bank interest | 137,832 | 93,523 |
Bank loan interest | 248,402 | 226,253 |
Hire purchase | 6,409 | 16,545 |
392,643 | 336,321 |
9. | TAXATION |
Analysis of the tax charge |
No liability to UK corporation tax arose for the year ended 31 March 2024 nor for the year ended 31 March 2023. |
Tax effects relating to effects of other comprehensive income |
2024 |
Gross | Tax | Net |
£ | £ | £ |
Revaluation on freehold property | 100,000 | - | 100,000 |
The amount of unused tax losses is £8,404,035 (2023 £8,382,675). There is no expiry date on timing differences and unused tax losses. |
KABY ENGINEERS LIMITED (REGISTERED NUMBER: 01211144) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
for the Year Ended 31 March 2024 |
10. | PROFIT OF PARENT COMPANY |
As permitted by Section 408 of the Companies Act 2006, the Profit and Loss Account of the parent company is not presented as part of these financial statements. The parent company's loss for the financial year was £14,905 (2023 - £7,248 profit). |
11. | INTANGIBLE FIXED ASSETS |
Group |
Development |
costs |
£ |
COST |
At 1 April 2023 |
and 31 March 2024 | 473,000 |
AMORTISATION |
At 1 April 2023 | 283,792 |
Amortisation for year | 94,596 |
At 31 March 2024 | 378,388 |
NET BOOK VALUE |
At 31 March 2024 | 94,612 |
At 31 March 2023 | 189,208 |
Company |
Development |
costs |
£ |
COST |
At 1 April 2023 |
and 31 March 2024 |
AMORTISATION |
At 1 April 2023 |
Amortisation for year |
At 31 March 2024 |
NET BOOK VALUE |
At 31 March 2024 |
At 31 March 2023 |
KABY ENGINEERS LIMITED (REGISTERED NUMBER: 01211144) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
for the Year Ended 31 March 2024 |
12. | TANGIBLE FIXED ASSETS |
Group |
Freehold | Plant and | Motor |
property | machinery | vehicles | Totals |
£ | £ | £ | £ |
COST OR VALUATION |
At 1 April 2023 | 3,600,000 | 14,132,467 | 247,907 | 17,980,374 |
Additions | - | 92,492 | 65,039 | 157,531 |
Disposals | - | - | (186,525 | ) | (186,525 | ) |
Revaluations | 100,000 | - | - | 100,000 |
At 31 March 2024 | 3,700,000 | 14,224,959 | 126,421 | 18,051,380 |
DEPRECIATION |
At 1 April 2023 | - | 12,879,721 | 238,144 | 13,117,865 |
Charge for year | - | 304,180 | 18,103 | 322,283 |
Eliminated on disposal | - | - | (186,525 | ) | (186,525 | ) |
At 31 March 2024 | - | 13,183,901 | 69,722 | 13,253,623 |
NET BOOK VALUE |
At 31 March 2024 | 3,700,000 | 1,041,058 | 56,699 | 4,797,757 |
At 31 March 2023 | 3,600,000 | 1,252,746 | 9,763 | 4,862,509 |
Freehold land and buildings was revalued on 2 July 2024 by Avison Young (UK) Limited in accordance with the RICS Valuation Global Standards effective from 31 January 2022 and the Red Book UK National Supplement effective from 1 May 2024.This was incorporated into the 2024 accounts. If freehold land and buildings had not been revalued it would have been included at a cost of £2,157,363. |
The net book value of tangible fixed assets include £33,949 (2023 - £24,511) in respect of assets held under hire purchase contracts. |
Company |
Freehold | Plant and | Motor |
property | machinery | vehicles | Totals |
£ | £ | £ | £ |
COST OR VALUATION |
At 1 April 2023 |
Additions |
Disposals | ( |
) | ( |
) |
Revaluations |
At 31 March 2024 |
DEPRECIATION |
At 1 April 2023 |
Charge for year |
Eliminated on disposal | ( |
) | ( |
) |
At 31 March 2024 |
NET BOOK VALUE |
At 31 March 2024 |
At 31 March 2023 |
KABY ENGINEERS LIMITED (REGISTERED NUMBER: 01211144) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
for the Year Ended 31 March 2024 |
12. | TANGIBLE FIXED ASSETS - continued |
Company |
Freehold land and buildings was revalued on 2 July 2024 by Avison Young (UK) Limited in accordance with the RICS Valuation Global Standards effective from 31 January 2022 and the Red Book UK National Supplement effective from 1 May 2024.This was incorporated into the 2024 accounts. If freehold land and buildings had not been revalued it would have been included at a cost of £2,157,363. |
The net book value of tangible fixed assets include £33,949 (2023 - £24,511) in respect of assets held under hire purchase contracts. |
13. | FIXED ASSET INVESTMENTS |
Company |
Shares in |
group |
undertakings |
£ |
COST |
At 1 April 2023 |
and 31 March 2024 |
NET BOOK VALUE |
At 31 March 2024 |
At 31 March 2023 |
The group or the company's investments at the Balance Sheet date in the share capital of companies include the following: |
Subsidiary |
Registered office: 10 Sheene Road,Leicester,England,LE4 1BF |
Nature of business: |
% |
Class of shares: | holding |
2024 | 2023 |
£ | £ |
Aggregate capital and reserves | ( |
) | ( |
) |
Profit for the year |
14. | STOCKS |
Group | Company |
2024 | 2023 | 2024 | 2023 |
£ | £ | £ | £ |
Raw materials | 612,433 | 924,933 |
Work-in-progress | 731,089 | 620,205 |
Finished goods | 584,394 | 512,305 |
1,927,916 | 2,057,443 |
KABY ENGINEERS LIMITED (REGISTERED NUMBER: 01211144) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
for the Year Ended 31 March 2024 |
15. | DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
Group | Company |
2024 | 2023 | 2024 | 2023 |
£ | £ | £ | £ |
Trade debtors | 1,627,610 | 2,426,739 |
Amounts owed by group undertakings | - | - |
Other debtors | 752,217 | 780,298 |
Prepayments and accrued income | 113,069 | 169,089 |
2,492,896 | 3,376,126 |
16. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
Group | Company |
2024 | 2023 | 2024 | 2023 |
£ | £ | £ | £ |
Bank loans and overdrafts (see note 18) | 354,250 | 354,250 |
Hire purchase contracts (see note 19) | 14,774 | 15,531 |
Invoice financing | 1,353,770 | 2,133,140 |
Trade creditors | 1,832,597 | 2,229,074 |
Social security and other taxes | 71,641 | 90,747 |
VAT | 152,166 | 164,873 | 152,166 | 164,873 |
Other creditors | 87,043 | 151,223 |
Accruals and deferred income | 84,371 | 121,660 |
3,950,612 | 5,260,498 |
17. | CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR |
Group | Company |
2024 | 2023 | 2024 | 2023 |
£ | £ | £ | £ |
Bank loans (see note 18) | 1,762,813 | 2,117,063 |
Hire purchase contracts (see note 19) | 25,759 | 13,681 |
Other creditors | 994,431 | 994,431 |
2,783,003 | 3,125,175 |
18. | LOANS |
An analysis of the maturity of loans is given below: |
Group | Company |
2024 | 2023 | 2024 | 2023 |
£ | £ | £ | £ |
Amounts falling due within one year or on | demand: |
Bank loans | 354,250 | 354,250 |
Amounts falling due between one and two years: |
Bank loans - 1-2 years | 354,250 | 354,250 |
Amounts falling due between two and five years: |
Bank loans - 2-5 years | 693,563 | 827,812 |
Amounts falling due in more than five years: |
Repayable by instalments |
Bank loans more 5 yr by instal | 715,000 | 935,001 | 715,000 | 935,001 |
KABY ENGINEERS LIMITED (REGISTERED NUMBER: 01211144) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
for the Year Ended 31 March 2024 |
18. | LOANS - continued |
The bank loans and overdraft are secured by a fixed and floating charge over the assets of the Group. |
The two bank loan terms of repayments are 99 and 27 months respectively at 31st March 2024. |
19. | LEASING AGREEMENTS |
Minimum lease payments fall due as follows: |
Group |
Hire purchase contracts |
2024 | 2023 |
£ | £ |
Net obligations repayable: |
Within one year | 14,774 | 15,531 |
Between one and five years | 25,759 | 13,681 |
40,533 | 29,212 |
Company |
Hire purchase contracts |
2024 | 2023 |
£ | £ |
Net obligations repayable: |
Within one year |
Between one and five years |
Group |
Non-cancellable operating | leases |
2024 | 2023 |
£ | £ |
Within one year | 131,250 | 143,500 |
Between one and five years | 186,667 | 201,250 |
In more than five years | - | 116,667 |
317,917 | 461,417 |
Company |
Non-cancellable operating | leases |
2024 | 2023 |
£ | £ |
Within one year |
Between one and five years |
In more than five years |
20. | CALLED UP SHARE CAPITAL |
Allotted, issued and fully paid: |
Number: | Class: | Nominal | 2024 | 2023 |
value: | £ | £ |
Ordinary | 20p | 100,000 | 100,000 |
KABY ENGINEERS LIMITED (REGISTERED NUMBER: 01211144) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
for the Year Ended 31 March 2024 |
21. | ULTIMATE PARENT PARTY |
The group is controlled by the Sanghera family trusts. |
22. | CAPITAL COMMITMENTS |
2024 | 2023 |
£ | £ |
Contracted but not provided for in the |
financial statements | - | 43,845 |
23. | RELATED PARTY DISCLOSURES |
The company has taken advantage of exemption, under the terms of Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland', not to disclose related party transactions with wholly owned subsidiaries within the group. |
The below are related by common persons with significant influence. |
Included in other creditors is a unsecured loan of £494,431 (2023 - £494,431). The amount is interest free and repayable on demand. |
Included in other debtors is a unsecured loan of £747,668 (2023 - £747,668). This amount is net of interest. |
The below are related by common control. |
Included in other debtors is a unsecured loan of NIL (2023 £14,136) due by previous director Mr B S Sanghera. |
During the year the company was charged rent and property insurance of £73,575 (2023 - £94,356) by BPC (Holdings) Ltd. |
Included in trade creditors is a rent deposit of £30,000 (2023 £30,000) paid to BPC Holdings Ltd. |
During the year the company received rent of £NIL (2023 £37,551) from BPC Electronics Ltd. |
During the year the company paid £42,991 (2023 £16,564) for IT services received during the year and reimbursements of Business rates to BPC Electronics Ltd. |
Included in other creditors is a secured loan of £500,000 (2023 £600,000) from The Sanghera Trust.The amount is net of interest. Interest accrued during the year amounted to £31,879 (2023 £41,000). |