REGISTERED NUMBER: |
Strategic Report, Report of the Directors and |
Financial Statements |
for the Year Ended 31 December 2023 |
for |
Kelston Sparkes Contractors Limited |
REGISTERED NUMBER: |
Strategic Report, Report of the Directors and |
Financial Statements |
for the Year Ended 31 December 2023 |
for |
Kelston Sparkes Contractors Limited |
Kelston Sparkes Contractors Limited (Registered number: 01157216) |
Contents of the Financial Statements |
for the Year Ended 31 December 2023 |
Page |
Company Information | 1 |
Strategic Report | 2 |
Report of the Directors | 3 |
Statement of Directors' Responsibilities | 4 |
Report of the Independent Auditors | 5 |
Statement of Comprehensive Income | 8 |
Balance Sheet | 9 |
Statement of Changes in Equity | 10 |
Cash Flow Statement | 11 |
Notes to the Cash Flow Statement | 12 |
Notes to the Financial Statements | 13 |
Kelston Sparkes Contractors Limited |
Company Information |
for the Year Ended 31 December 2023 |
DIRECTORS: |
SECRETARY: |
REGISTERED OFFICE: |
REGISTERED NUMBER: |
SENIOR STATUTORY AUDITOR: |
AUDITORS: |
Chartered Accountants |
& Statutory Auditor |
Stafford House |
Blackbrook Park Avenue |
Taunton |
Somerset |
TA1 2PX |
Kelston Sparkes Contractors Limited (Registered number: 01157216) |
Strategic Report |
for the Year Ended 31 December 2023 |
The directors present their strategic report for the year ended 31 December 2023. |
REVIEW OF BUSINESS |
The results for the year and financial position of the company are shown in the annexed financial statements. |
The company undertakes comprehensive business planning to define long term strategic objectives and goals. Annual budgets and operational plans are prepared utilising financial Key Performance Indicators ("KPI's"). Business performance, measured by KPI's (including monitoring of actual results against budget targets) and bank balances is reported to the directors on a monthly basis. |
The turnover for the company for the year was £20,517,164 (2022 - £18,663,978) and the gross profit margin achieved was 14.2% (2022 - 12.8%). |
The company has had another very strong year and continues the growth we have seen in recent years. The provision of materials and third party subcontractors within our large contracts has enabled the company to continue its growth. Crucially, this growth has been achieved without sacrificing our gross profit margin. |
The Directors anticipate that the company will trade profitably for the forthcoming year. |
PRINCIPAL RISKS AND UNCERTAINTIES |
As with any business, Kelston Sparkes Contractors Limited faces a number of risks and uncertainties in the course of its day to day operations. By effectively identifying and managing these risks their effects can be mitigated. |
The principal risk to the company is a deterioration in demand from the UK Construction Industry. Any deterioration in economic conditions may significantly decrease demand which could have a material effect on revenues, margins, profits and debt levels. |
The Directors also constantly monitor the state of receivables, as this remains a key factor in protecting the company's cash flow in the short and medium term. |
FUTURE DEVELOPMENTS |
The directors will continue to monitor costs closely in order to maintain profitability, whilst not compromising on quality and service. The directors will also continue to diversify into new products and markets when appropriate. |
ON BEHALF OF THE BOARD: |
Kelston Sparkes Contractors Limited (Registered number: 01157216) |
Report of the Directors |
for the Year Ended 31 December 2023 |
The directors present their report with the financial statements of the company for the year ended 31 December 2023. |
PRINCIPAL ACTIVITY |
The principal activity of the company in the year under review was that of earth-moving contractors. |
DIVIDENDS |
No dividends will be distributed for the year ended 31 December 2023. |
DIRECTORS |
The directors shown below have held office during the whole of the period from 1 January 2023 to the date of this report. |
FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES |
The directors are responsible for monitoring financial risk. Appropriate policies have been developed and implemented to identify, evaluate and manage the key risks. |
a) Price risk - The company is exposed to price risk as a result of its operations. Due to the economic climate the company has to quote competitive prices to win work. The directors are aware of the risks in selling and providing services at low margins and as the trading environment improves the directors will consider improving margins. |
b) Credit risk - The company has implemented policies that require appropriate credit checks on customers before contracts are entered into. The credit given to customers is subject to limits which are determined and reassessed by the directors. |
c) Liquidity risk - The company is reliant upon the continued support of its bankers. Budgets and cash flow projections are prepared and regularly monitored to ensure that the company operates within these facilities. |
d) Interest rate cash flow risk - The company has a bank overdraft facility which is repayable on demand. The interest charged on the overdraft is at a competitive rate of interest. |
e) Economic risk - The company's performance is directly impacted by the economic environment. In order to manage this risk the company strives to deliver competitively priced services. The company is actively concentrating on improving efficiency and reducing costs. |
GOING CONCERN |
The company has net current liabilities at the balance sheet date. It is reliant on the continued support of its parent company Kelston Sparkes Holdings Limited and other group companies, who have confirmed they will continue to provide support to Kelston Sparkes Quarry Services Limited. |
STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS |
So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the company's auditors are unaware, and each director has taken all the steps that he ought to have taken as a director in order to make himself aware of any relevant audit information and to establish that the company's auditors are aware of that information. |
AUDITORS |
The auditors, A C Mole LLP, will be proposed for re-appointment at the forthcoming Annual General Meeting. |
ON BEHALF OF THE BOARD: |
Kelston Sparkes Contractors Limited (Registered number: 01157216) |
Statement of Directors' Responsibilities |
for the Year Ended 31 December 2023 |
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) and applicable law, including Financial Reporting Standard 102 Reduced Disclosure Framework (FRS 102). |
Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to: |
- | select suitable accounting policies and then apply them consistently; |
- | make judgements and accounting estimates that are reasonable and prudent; |
- | state whether applicable United Kingdom Accounting Standards, including FRS 102, have been followed, subject to any material departures disclosed and explained in the financial statements; |
- | notify the company's shareholders in writing about the use of disclosure exemptions, if any, of FRS 102 used in the preparation of financial statements; and |
- | 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. |
Report of the Independent Auditors to the Members of |
Kelston Sparkes Contractors Limited |
Opinion |
We have audited the financial statements of Kelston Sparkes Contractors Limited (the 'company') for the year ended 31 December 2023 which comprise the Statement of Comprehensive Income, Balance Sheet, Statement of Changes in Equity, Cash Flow Statement and Notes to the 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 company's affairs as at 31 December 2023 and of its 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 company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. |
Conclusions relating to going concern |
In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate. |
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue. |
Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report. |
Other information |
The directors are responsible for the other information. The other information comprises the information in the Strategic Report, the Report of the Directors and the Statement of Directors' Responsibilities, 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 Strategic Report and the Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and |
- | the Strategic Report and the Report of the Directors have been prepared in accordance with applicable legal requirements. |
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 Report of the Directors. |
We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion: |
- | adequate accounting records have not been kept, 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 and returns; or |
- | certain disclosures of directors' remuneration specified by law are not made; or |
- | we have not received all the information and explanations we require for our audit. |
Report of the Independent Auditors to the Members of |
Kelston Sparkes Contractors Limited |
Responsibilities of directors |
As explained more fully in the Statement of Directors' Responsibilities set out on page four, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. |
In preparing the financial statements, the directors are responsible for assessing the 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. |
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: |
Identifying and assessing potential risks of material misstatement due to irregularities. |
We considered the following when identifying and assessing risks of material misstatement due to irregularities, |
including fraud and non-compliance with laws and regulations; |
- the legal and regulatory framework within which the business operates |
- the nature of the industry in which the business operates |
- the control environment and internal controls established to mitigate such risks |
- the results of our enquiries of management about their own identification and assessment of risks of irregularities |
- discussions within the audit engagement team and with the group auditors about where fraud might occur. |
Laws and regulations which are considered to be significant to the entity include those relating to the construction |
industry, the requirements of the financial reporting framework FRS 102, the Companies Act 2006 and UK tax |
legislation. In addition we considered other laws and regulations which may not directly impact the financial statements but may impact on the operations of the company, such as the changes arising following Brexit. |
As a result of these procedures we concluded that the greatest potential for material misstatements due to fraud arose in respect of sales being overstated. In common with all audits under International Auditing Standards we also |
concluded that a risk in relation to the potential for management override of controls existed. |
Audit responses to the risks identified |
We undertook audit procedures to respond to the risks identified, and designed our audit testing to respond to these |
risks. The additional procedures we undertook included the following: |
- Gaining an understanding of the company's procedures for ensuring compliance with laws and regulations. |
- Controls testing over sales |
- Substantive and additional testing of provisions on work in progress |
- Testing the appropriateness of journal entries and other adjustments |
- Considering whether accounting estimates were indicative of potential bias |
- Considering any transactions which arose outside the normal course of business |
- Making enquiries of management |
- Corroborating our enquiries through the review of Board Minutes and review of correspondence. |
We also communicated relevant identified laws and regulations and potential fraud risks to all engagement team |
members. We remained alert to any indications of fraud or non-compliance with laws and regulations throughout the |
audit. |
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 |
Kelston Sparkes Contractors 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 |
Stafford House |
Blackbrook Park Avenue |
Taunton |
Somerset |
TA1 2PX |
Kelston Sparkes Contractors Limited (Registered number: 01157216) |
Statement of Comprehensive Income |
for the Year Ended 31 December 2023 |
2023 | 2022 |
Notes | £ | £ |
TURNOVER | 4 |
Cost of sales |
GROSS PROFIT |
Administrative expenses |
763,072 | 410,029 |
Other operating income |
OPERATING PROFIT | 6 |
Interest receivable and similar income |
2,027,701 | 1,361,064 |
Interest payable and similar expenses | 7 |
PROFIT BEFORE TAXATION |
Tax on profit | 8 |
PROFIT FOR THE FINANCIAL YEAR |
OTHER COMPREHENSIVE INCOME | - | - |
TOTAL COMPREHENSIVE INCOME FOR THE YEAR |
Kelston Sparkes Contractors Limited (Registered number: 01157216) |
Balance Sheet |
31 December 2023 |
2023 | 2022 |
Notes | £ | £ |
CURRENT ASSETS |
Debtors: amounts falling due within one year | 9 |
Debtors: amounts falling due after more than one year |
9 |
Cash at bank |
CREDITORS |
Amounts falling due within one year | 10 |
NET CURRENT ASSETS |
TOTAL ASSETS LESS CURRENT LIABILITIES |
CREDITORS |
Amounts falling due after more than one year |
11 |
NET ASSETS |
CAPITAL AND RESERVES |
Called up share capital | 13 |
Retained earnings | 14 |
SHAREHOLDERS' FUNDS |
The financial statements were approved by the Board of Directors and authorised for issue on |
Kelston Sparkes Contractors Limited (Registered number: 01157216) |
Statement of Changes in Equity |
for the Year Ended 31 December 2023 |
Called up |
share | Retained | Total |
capital | earnings | equity |
£ | £ | £ |
Balance at 1 January 2022 |
Changes in equity |
Total comprehensive income | - |
Balance at 31 December 2022 |
Changes in equity |
Total comprehensive income | - |
Balance at 31 December 2023 |
Kelston Sparkes Contractors Limited (Registered number: 01157216) |
Cash Flow Statement |
for the Year Ended 31 December 2023 |
2023 | 2022 |
Notes | £ | £ |
Cash flows from operating activities |
Cash generated from operations | 1 |
Tax paid |
Net cash from operating activities |
Cash flows from investing activities |
Interest received |
Net cash from investing activities |
Cash flows from financing activities |
(Increase) in intergroup debtors | (3,759,052 | ) | (1,019,337 | ) |
Increase in intergroup creditors | 76,574 | 27,009 |
Interest paid | ( |
) | ( |
) |
Net cash from financing activities | ( |
) | ( |
) |
(Decrease)/increase in cash and cash equivalents | ( |
) |
Cash and cash equivalents at beginning of year |
2 |
770,863 |
Cash and cash equivalents at end of year | 2 | 9,532 | 1,019,706 |
Kelston Sparkes Contractors Limited (Registered number: 01157216) |
Notes to the Cash Flow Statement |
for the Year Ended 31 December 2023 |
1. | RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS |
2023 | 2022 |
£ | £ |
Profit before taxation |
Decrease/(Increase) on contracts | (214,401 | ) | (706,177 | ) |
Finance costs | 16,578 | 7,009 |
Finance income | (344,498 | ) | (90,691 | ) |
1,468,802 | 564,196 |
Increase in trade and other debtors | ( |
) | ( |
) |
Increase in trade and other creditors |
Cash generated from operations |
2. | CASH AND CASH EQUIVALENTS |
The amounts disclosed on the Cash Flow Statement in respect of cash and cash equivalents are in respect of these Balance Sheet amounts: |
Year ended 31 December 2023 |
31.12.23 | 1.1.23 |
£ | £ |
Cash and cash equivalents | 9,532 | 1,019,706 |
Year ended 31 December 2022 |
31.12.22 | 1.1.22 |
£ | £ |
Cash and cash equivalents | 1,019,706 | 770,863 |
3. | ANALYSIS OF CHANGES IN NET FUNDS |
At 1.1.23 | Cash flow | At 31.12.23 |
£ | £ | £ |
Net cash |
Cash at bank | 1,019,706 | (1,010,174 | ) | 9,532 |
1,019,706 | ( |
) | 9,532 |
Total | 1,019,706 | (1,010,174 | ) | 9,532 |
Kelston Sparkes Contractors Limited (Registered number: 01157216) |
Notes to the Financial Statements |
for the Year Ended 31 December 2023 |
1. | STATUTORY INFORMATION |
Kelston Sparkes Contractors Limited is a |
The presentation currency of the financial statements is the Pound Sterling (£). |
The company is an earth-moving contractor. |
2. | STATEMENT OF COMPLIANCE |
These financial statements have been prepared in accordance with UK accounting standards, including Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" ("FRS 102") and the Companies Act 2006. |
3. | ACCOUNTING POLICIES |
Basis of preparation |
These financial statements are prepared on a going concern basis, under the historical cost convention, as modified by certain financial assets and liabilities measured at fair value through profit or loss. |
Going concern |
The company meets its day-to-day working capital requirements through the Kelston Sparkes Holdings Limited group bank facilities and borrowings. The Kelston Sparkes Holdings Limited group forecasts and projections, taking account of possible changes in trading conditions, show that the group should be able to operate within the level of its current bank facilities and borrowings. |
The company has net current liabilities at the balance sheet date. It is reliant on the continued support of its parent company Kelston Sparkes Holdings Limited and other group companies, who have confirmed they will continue to provide support to Kelston Sparkes Contractors Limited. |
The Directors therefore continue to adopt the going concern basis in preparing the financial statements. |
Related party exemption |
The company has taken advantage of the 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. |
Turnover |
Turnover represents net invoiced contracting services excluding VAT. Where revenue has been earned but not yet invoiced an appropriate proportion of revenue is recognised and an amount included within debtors as amounts recoverable on contracts. |
Kelston Sparkes Contractors Limited (Registered number: 01157216) |
Notes to the Financial Statements - continued |
for the Year Ended 31 December 2023 |
3. | ACCOUNTING POLICIES - continued |
Taxation |
The taxation expense for the period comprises current and deferred tax recognised in the reporting period. Tax is recognised in the income statement, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. In this case tax is also recognised in other comprehensive income or directly into equity respectively. |
i) Current tax |
Current tax is the amount of income tax payable in respect of the taxable profit for the year or prior years. Tax is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the balance sheet date. |
ii) Deferred tax |
Deferred tax arises from timing differences that are differences between taxable profits and total comprehensive income as stated in the financial statements. These timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in the financial statements. |
Deferred tax is recognised on all timing differences at the balance sheet date, except for certain exceptions. Unrelieved tax losses and other deferred tax assets are only recognised when 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 tax rates and laws that have been enacted or substantively enacted by the period end and that are expected to apply to the reversal of the timing difference. |
Pension costs and other post-retirement benefits |
The company operates a defined contribution pension scheme for its employees. A defined contribution plan is a pension plan under which the company pays fixed contributions to a separate entity. Once the contributions have been paid the company has no further payment obligations. The contributions are recognised as an expense when they fall due. Amounts not paid are shown in accruals in the balance sheet. The assets of the plan are held separately from the company in independently administered funds. |
Other operating income |
Other operating income consists of recharges of salaries to other group companies and reflect the time that individuals have worked for those companies throughout the year. |
Kelston Sparkes Contractors Limited (Registered number: 01157216) |
Notes to the Financial Statements - continued |
for the Year Ended 31 December 2023 |
3. | ACCOUNTING POLICIES - continued |
Financial instruments |
i) Financial assets |
Basic financial assets, including trade and other receivables and cash and bank balances are initially recognised at transaction price and subsequently measured at amortised cost. |
At the balance sheet date financial assets are assessed for evidence of impairment. If an asset is impaired the impairment loss is recognised in the income statement. |
ii) Financial liabilities |
Basic financial liabilities, including trade and other payables and bank overdrafts, are initially recognised at transaction price and subsequently measured at amortised cost. |
Critical accounting judgements and estimation uncertainty |
The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the application of policies and reported amounts of assets and liabilities, income and expenses. |
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 company makes estimates and assumptions concerning the future. The resulting accounting estimates will, by definition, seldom equal the related actual results. Having given due consideration to the estimates and assumptions that form part of the carrying amounts of assets and liabilities within the financial statements, the directors are of the opinion that the only material judgement or estimate relates to forecast profit margins on long term contracts. The accounting policy for long term contracts is summarised above. |
As at 31 December 2023 the cost accrual in relation to long term contracts amounted to £1,750,000. |
Management forecast total contract profit margins based on their experience of the industry, the specific contract, and contract performance to date. Where appropriate, contract performance after the balance sheet date is also taken into account. However, contracts may span a number of years, and actual profit margins could be materially different to those forecast. |
4. | TURNOVER |
The turnover and profit before taxation are attributable to the one principal activity of the company. |
An analysis of turnover by class of business is given below: |
2023 | 2022 |
£ | £ |
5. | EMPLOYEES AND DIRECTORS |
2023 | 2022 |
£ | £ |
Directors' remuneration |
Directors' pension contributions to money purchase schemes |
Kelston Sparkes Contractors Limited (Registered number: 01157216) |
Notes to the Financial Statements - continued |
for the Year Ended 31 December 2023 |
5. | EMPLOYEES AND DIRECTORS - continued |
Employee costs during year: | 2023 | 2022 |
£ | £ |
Wages and salaries | 2,324,760 | 1,924,613 |
Social security | 241,624 | 220,055 |
Pensions | 41,032 | 39,434 |
2,607,416 | 2,184,102 |
Average number of persons employed | No. | No. |
Administration | 21 | 19 |
Site personnel | 26 | 23 |
47 | 42 |
Key management compensation |
Key management includes the directors and members of senior management. The compensation paid to key management for their services totalled £696,575 (2022 - £644,417). |
The number of directors whom retirement benefits were accruing was as follows: |
Money purchase schemes | 2 | 2 |
6. | OPERATING PROFIT |
The operating profit is stated after charging: |
2023 | 2022 |
£ | £ |
Auditors' remuneration of company |
Auditors' remuneration taxation compliance services |
Auditors' remuneration non-audit services |
Hire of plant and machinery |
7. | INTEREST PAYABLE AND SIMILAR EXPENSES |
2023 | 2022 |
£ | £ |
Bank interest |
Inter-company interest |
8. | TAXATION |
Analysis of the tax charge |
No liability to UK corporation tax arose for the year ended 31 December 2023 nor for the year ended 31 December 2022. |
Kelston Sparkes Contractors Limited (Registered number: 01157216) |
Notes to the Financial Statements - continued |
for the Year Ended 31 December 2023 |
8. | TAXATION - continued |
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: |
2023 | 2022 |
£ | £ |
Profit before tax |
Profit multiplied by the standard rate of corporation tax in the UK of |
Effects of: |
Expenses not deductible for tax purposes |
Research and development enhanced expenditure | - | (239,032 | ) |
credit |
Group relief | (474,170 | ) | (18,439 | ) |
Total tax charge | - | - |
9. | DEBTORS |
2023 | 2022 |
£ | £ |
Amounts falling due within one year: |
Trade debtors |
Amounts recoverable on contracts |
Other debtors |
VAT |
Amounts falling due after more than one year: |
Amounts owed by group undertakings |
Aggregate amounts |
A formal agreement is in place to charge interest at a commercial market rate of 2.25% above Bank of England base rate on inter-company loan balances. Inter-company loans are not repayable on demand and therefore are treated as falling due in more than one year. |
10. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
2023 | 2022 |
£ | £ |
Trade creditors |
Social security and other taxes |
VAT | 321,452 | - |
Accruals and deferred income |
11. | CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR |
2023 | 2022 |
£ | £ |
Amounts owed to group undertakings |
A formal agreement is in place to charge interest at a commercial market rate of 2.25% above Bank of England base rate on inter-company loan balances. Inter-company loans are not repayable on demand and therefore are treated as falling due in more than one year. |
Kelston Sparkes Contractors Limited (Registered number: 01157216) |
Notes to the Financial Statements - continued |
for the Year Ended 31 December 2023 |
12. | FINANCIAL INSTRUMENTS |
The company has the following financial instruments: |
Notes | 2023 | 2022 |
£ | £ |
Financial assets that are debt instruments measured at amortised cost |
Trade debtors | 9 | 1,665,400 | 152,939 |
Amounts owed by group undertakings | 9 | 7,180,661 | 3,421,609 |
Amounts recoverable on contracts | 9 | 2,720,115 | 2,505,714 |
11,566,176 | 6,080,262 |
Financial liabilities measured at amortised cost |
Trade creditors | 10 | 1,835,413 | 2,105,529 |
Amounts owed to group undertakings | 11 | 273,064 | 196,490 |
2,108,477 | 2,302,019 |
13. | CALLED UP SHARE CAPITAL |
Allotted, issued and fully paid: |
Number: | Class: | Nominal | 2023 | 2022 |
value: | £ | £ |
Ordinary | £1 | 276,000 | 276,000 |
There is a single class of ordinary shares. There are no restrictions on the distribution of dividends and the repayment of capital. |
14. | RESERVES |
Retained |
earnings |
£ |
At 1 January 2023 |
Profit for the year |
At 31 December 2023 |
15. | PARENT COMPANY |
Kelston Sparkes Holdings Limited is the company's parent company. |
Accounts for this company may be obtained from the Registrar of Companies, Cardiff. |
16. | CONTINGENT LIABILITIES |
The company is party to a cross company guarantee to HSBC Bank plc for Kelston Sparkes (Group) Limited, Kelston Sparkes Holdings Limited and KSG Training Services Limited which covers all assets held by these companies. These companies are controlled by the directors of Kelston Sparkes Contractors Limited. |
The company has contingent liabilities at 31 December 2023 amounting to £9,532 (2022 - £1,019,706) in respect of cash held by the company which may be offset against borrowing facilities granted by the bank to its holding company and fellow subsidiaries. |
At 31 December 2023 there were contingent liabilities in respect of loan and overdraft facilities granted to Kelston Sparkes (Group) Limited of £1,575,346 (2022 - £2,087,635). |
Kelston Sparkes Contractors Limited (Registered number: 01157216) |
Notes to the Financial Statements - continued |
for the Year Ended 31 December 2023 |
17. | RELATED PARTY DISCLOSURES |
2023 | 2022 |
£ | £ |
Purchases |
Loan interest receivable | 309,993 | 78,436 |
Amount due from related party |
2023 | 2022 |
£ | £ |
Purchases | ( |
) |
Amount due to related party |
18. | ULTIMATE CONTROLLING PARTY |
The ultimate controlling party for the Company is Mr A K Sparkes, by virtue of his 55% holding of the share capital in Kelston Sparkes Holdings Limited. |