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REGISTERED NUMBER: 01456314 (England and Wales)













Group Strategic Report,

Report of the Directors and

Consolidated Financial Statements

for the Year Ended 31 December 2023

for

Kelston Sparkes Holdings Limited

Kelston Sparkes Holdings Limited (Registered number: 01456314)






Contents of the Consolidated Financial Statements
for the Year Ended 31 December 2023




Page

Company Information 1

Group Strategic Report 2

Report of the Directors 3

Statement of Directors' Responsibilities 4

Report of the Independent Auditors 5

Consolidated Statement of 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


Kelston Sparkes Holdings Limited

Company Information
for the Year Ended 31 December 2023







DIRECTORS: A K Sparkes
R Stark
K D Stark
D Swann



SECRETARY: R Stark



REGISTERED OFFICE: Bromley
Stanton Drew
Bristol
Somerset
BS39 4DE



REGISTERED NUMBER: 01456314 (England and Wales)



SENIOR STATUTORY AUDITOR: Michael Cook BSc FCA



AUDITORS: A C Mole LLP
Chartered Accountants
& Statutory Auditor
Stafford House
Blackbrook Park Avenue
Taunton
Somerset
TA1 2PX

Kelston Sparkes Holdings Limited (Registered number: 01456314)

Group Strategic Report
for the Year Ended 31 December 2023

The directors present their strategic report of the company and the group 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 group 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 group for the year was £33,686,122 (2022 - £32,954,456) and the gross profit margin achieved was 19.4% (2022 - 15.5%).

The group has continued its growth over the past few years and has seen an increase in turnover and gross profit margin from all companies within the group. The growth is expected to continue over the coming years and the group is currently in a very healthy position to move forward.

The Directors anticipate that the group will continue to trade profitably for the forthcoming year.

PRINCIPAL RISKS AND UNCERTAINTIES
As with any business, Kelston Sparkes Holdings 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 and the group 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 and group'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:





R Stark - Director


2 September 2024

Kelston Sparkes Holdings Limited (Registered number: 01456314)

Report of the Directors
for the Year Ended 31 December 2023

The directors present their report with the financial statements of the company and the group for the year ended 31 December 2023.

DIVIDENDS
The total distribution of dividends for the year ended 31 December 2023 will be £ 343,500 .

DIRECTORS
The directors shown below have held office during the whole of the period from 1 January 2023 to the date of this report.

A K Sparkes
R Stark
K D Stark
D Swann

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 group meets its day-to-day working capital requirements through its bank facilities and borrowings. The group forecasts and projections, taking account of reasonably possible changes in trading conditions, show the group should be able to operate within the level of its current bank facilities and borrowings.

The Directors therefore continue to adopt the going concern basis in preparing the financial statements.

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 group'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 group'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:





R Stark - Director


2 September 2024

Kelston Sparkes Holdings Limited (Registered number: 01456314)

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 Holdings Limited

Opinion
We have audited the financial statements of Kelston Sparkes Holdings Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 December 2023 which comprise the Consolidated Statement of Comprehensive Income, Consolidated Balance Sheet, Company Balance Sheet, Consolidated Statement of Changes in Equity, Company Statement of Changes in Equity, Consolidated Cash Flow Statement and Notes to the Consolidated Cash Flow Statement, Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).

In our opinion the revised financial statements:
- give a true and fair view, seen as at the date the original financial statements were approved, of the state of the group's and of the parent company affairs as at 31 December 2020 and of the group's profit for the year then ended;
- have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice seen as at the date the original financial statements were approved; and
- have been prepared in accordance with the requirements of the Companies Act 2006 as they have effect under the Companies (Revision of Defective Accounts and Reports) Regulations 2008.

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 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 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 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 Group 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 Group 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 Group Strategic Report and the Report of the Directors have been prepared in accordance with applicable legal requirements.

Report of the Independent Auditors to the Members of
Kelston Sparkes Holdings Limited


Matters on which we are required to report by exception
In the light of the knowledge and understanding of the group and the parent company and its environment obtained in the course of the audit, we have not identified material misstatements in the Group Strategic Report or the Report of the 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 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 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 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 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 directors either intend to liquidate the group or the parent company or to cease operations, or have no realistic alternative but to do so.

Report of the Independent Auditors to the Members of
Kelston Sparkes Holdings Limited


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.
- Substantive and additional testing of provisions on work in progress
- Controls testing over sales together with additional substantive procedures to agree to third party certificates.
- 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 Holdings 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.




Michael Cook BSc FCA (Senior Statutory Auditor)
for and on behalf of A C Mole LLP
Chartered Accountants
& Statutory Auditor
Stafford House
Blackbrook Park Avenue
Taunton
Somerset
TA1 2PX

4 September 2024

Kelston Sparkes Holdings Limited (Registered number: 01456314)

Consolidated Statement of Comprehensive Income
for the Year Ended 31 December 2023

2023 2022
Notes £    £   

TURNOVER 4 33,686,122 32,954,456

Cost of sales 27,135,767 27,842,711
GROSS PROFIT 6,550,355 5,111,745

Administrative expenses 3,211,071 2,930,418
OPERATING PROFIT 6 3,339,284 2,181,327

Interest receivable and similar income 444 1,054
3,339,728 2,182,381

Interest payable and similar expenses 7 682,314 567,701
PROFIT BEFORE TAXATION 2,657,414 1,614,680

Tax on profit 8 722,292 121,951
PROFIT FOR THE FINANCIAL YEAR 1,935,122 1,492,729

OTHER COMPREHENSIVE INCOME - -
TOTAL COMPREHENSIVE INCOME FOR
THE YEAR

1,935,122

1,492,729

Profit attributable to:
Owners of the parent 1,935,141 1,492,808
Non-controlling interests (19 ) (79 )
1,935,122 1,492,729

Total comprehensive income attributable to:
Owners of the parent 1,935,141 1,492,757
Non-controlling interests (19 ) (28 )
1,935,122 1,492,729

Kelston Sparkes Holdings Limited (Registered number: 01456314)

Consolidated Balance Sheet
31 December 2023

2023 2022
Notes £    £    £    £   
FIXED ASSETS
Intangible assets 11 588,046 615,945
Tangible assets 12 27,198,296 28,371,510
Investments 13 - -
Investment property 14 1,845,000 1,845,000
29,631,342 30,832,455

CURRENT ASSETS
Stocks 15 298,336 282,046
Debtors: amounts falling due within one year 16 8,961,088 7,466,250
Cash at bank and in hand 2,228,819 1,199,416
11,488,243 8,947,712
CREDITORS
Amounts falling due within one year 17 13,146,040 11,754,902
NET CURRENT LIABILITIES (1,657,797 ) (2,807,190 )
TOTAL ASSETS LESS CURRENT
LIABILITIES

27,973,545

28,025,265

CREDITORS
Amounts falling due after more than one
year

18

(10,183,450

)

(12,549,083

)

PROVISIONS FOR LIABILITIES 23 (3,634,569 ) (2,912,277 )
NET ASSETS 14,155,526 12,563,905

CAPITAL AND RESERVES
Called up share capital 24 3,952,100 3,952,100
Revaluation reserve 25 865,096 865,096
Retained earnings 25 9,337,896 7,746,255
SHAREHOLDERS' FUNDS 14,155,092 12,563,451

NON-CONTROLLING INTERESTS 26 434 454
TOTAL EQUITY 14,155,526 12,563,905

The financial statements were approved by the Board of Directors and authorised for issue on 2 September 2024 and were signed on its behalf by:




A K Sparkes - Director



R Stark - Director


Kelston Sparkes Holdings Limited (Registered number: 01456314)

Company Balance Sheet
31 December 2023

2023 2022
Notes £    £    £    £   
FIXED ASSETS
Intangible assets 11 - -
Tangible assets 12 3,630,000 3,630,000
Investments 13 4,228,201 4,228,101
Investment property 14 1,845,000 1,845,000
9,703,201 9,703,101

CURRENT ASSETS
Debtors: amounts falling due within one year 16 10,250 19,165
Debtors: amounts falling due after more than
one year

16

643,751

437,848
Cash at bank 36,782 87,748
690,783 544,761
CREDITORS
Amounts falling due within one year 17 76,850 74,918
NET CURRENT ASSETS 613,933 469,843
TOTAL ASSETS LESS CURRENT
LIABILITIES

10,317,134

10,172,944

CREDITORS
Amounts falling due after more than one
year

18

(5,170,577

)

(5,051,781

)

PROVISIONS FOR LIABILITIES 23 (288,366 ) (288,366 )
NET ASSETS 4,858,191 4,832,797

CAPITAL AND RESERVES
Called up share capital 24 3,952,100 3,952,100
Revaluation reserve 25 865,096 865,096
Retained earnings 25 40,995 15,601
SHAREHOLDERS' FUNDS 4,858,191 4,832,797

Company's profit for the financial year 25,394 87,895

The financial statements were approved by the Board of Directors and authorised for issue on 2 September 2024 and were signed on its behalf by:





A K Sparkes - Director


Kelston Sparkes Holdings Limited (Registered number: 01456314)

Consolidated Statement of Changes in Equity
for the Year Ended 31 December 2023

Called up
share Retained Revaluation
capital earnings reserve
£    £    £   
Balance at 1 January 2022 3,952,100 6,533,447 865,096

Changes in equity
Dividends - (280,000 ) -
Total comprehensive income - 1,492,808 -
Balance at 31 December 2022 3,952,100 7,746,255 865,096

Changes in equity
Dividends - (343,500 ) -
Total comprehensive income - 1,935,141 -
Balance at 31 December 2023 3,952,100 9,337,896 865,096
Non-controlling Total
Total interests equity
£    £    £   
Balance at 1 January 2022 11,350,643 482 11,351,125

Changes in equity
Dividends (280,000 ) - (280,000 )
Total comprehensive income 1,492,808 (28 ) 1,492,780
Balance at 31 December 2022 12,563,451 454 12,563,905

Changes in equity
Dividends (343,500 ) - (343,500 )
Total comprehensive income 1,935,141 (19 ) 1,935,122
Balance at 31 December 2023 14,155,092 435 14,155,527

Kelston Sparkes Holdings Limited (Registered number: 01456314)

Company Statement of Changes in Equity
for the Year Ended 31 December 2023

Called up
share Retained Revaluation Total
capital earnings reserve equity
£    £    £    £   
Balance at 1 January 2022 3,952,100 (72,294 ) 865,096 4,744,902

Changes in equity
Total comprehensive income - 87,895 - 87,895
Balance at 31 December 2022 3,952,100 15,601 865,096 4,832,797

Changes in equity
Total comprehensive income - 25,394 - 25,394
Balance at 31 December 2023 3,952,100 40,995 865,096 4,858,191

Kelston Sparkes Holdings Limited (Registered number: 01456314)

Consolidated Cash Flow Statement
for the Year Ended 31 December 2023

2023 2022
Notes £    £   
Cash flows from operating activities
Cash generated from operations 1 8,003,574 5,734,447
Interest paid - (4,418 )
Tax paid - 418,081
Net cash from operating activities 8,003,574 6,148,110

Cash flows from investing activities
Purchase of tangible fixed assets (521,295 ) (170,358 )
Sale of tangible fixed assets 2,039,608 2,037,317
Interest received 444 1,054
Net cash from investing activities 1,518,757 1,868,013

Cash flows from financing activities
Loan repayments in year (118,040 ) (132,386 )
Hire purchase repayments in year (6,447,458 ) (5,627,192 )
Amount introduced by directors (507,366 ) 153,600
Amount withdrawn by directors - (883,560 )
Movement in debt factoring account (394,250 ) (287,774 )
Interest paid (147,686 ) (106,012 )
Interest on hire purchase payments (534,628 ) (457,271 )
Equity dividends paid (343,500 ) (280,000 )
Net cash from financing activities (8,492,928 ) (7,620,595 )

Increase in cash and cash equivalents 1,029,403 395,528
Cash and cash equivalents at beginning
of year

2

1,199,416

803,888

Cash and cash equivalents at end of year 2 2,228,819 1,199,416

Kelston Sparkes Holdings Limited (Registered number: 01456314)

Notes to the Consolidated 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 2,657,414 1,614,680
Depreciation charges 4,116,991 4,192,523
Profit on disposal of fixed assets (264,892 ) (249,586 )
Amounts recoverable on contracts (214,401 ) (706,177 )
Finance costs 682,314 567,701
Finance income (444 ) (1,054 )
6,976,982 5,418,087
Increase in stocks (16,290 ) (28,647 )
(Increase)/decrease in trade and other debtors (1,280,437 ) 353,434
Increase/(decrease) in trade and other creditors 2,323,319 (8,427 )
Cash generated from operations 8,003,574 5,734,447

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 2,228,819 1,199,416
Year ended 31 December 2022
31.12.22 1.1.22
£    £   
Cash and cash equivalents 1,199,416 803,888


3. ANALYSIS OF CHANGES IN NET DEBT

Other
non-cash
At 1.1.23 Cash flow changes At 31.12.23
£    £    £    £   
Net cash
Cash at bank
and in hand 1,199,416 1,029,403 2,228,819
1,199,416 1,029,403 2,228,819
Debt
Finance leases (16,291,998 ) 6,447,457 (4,169,299 ) (14,013,840 )
Debts falling due
within 1 year (521,412 ) 512,290 (115,552 ) (124,674 )
Debts falling due
after 1 year (1,566,224 ) - 115,552 (1,450,672 )
(18,379,634 ) 6,959,747 (4,169,299 ) (15,589,186 )
Total (17,180,218 ) 7,989,150 (4,169,299 ) (13,360,367 )

Kelston Sparkes Holdings Limited (Registered number: 01456314)

Notes to the Consolidated Financial Statements
for the Year Ended 31 December 2023

1. STATUTORY INFORMATION

Kelston Sparkes Holdings Limited is a private company, limited by shares , registered in England and Wales. The company's registered number and registered office address can be found on the General Information page.

The presentation currency of the financial statements is the Pound Sterling (£).


The company is engaged in renting and leasing of property and is a parent company.

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 group meets its day-to-day working capital requirements through its bank facilities and borrowings. The group forecasts and projections, taking account of possible changes in trading conditions, show the group should be able to operate within the level of its current bank facilities and borrowings.

The Directors therefore continue to adopt the going concern basis in preparing the financial statements.

Basis of consolidation
The consolidated financial statements incorporate the results of Kelston Sparkes Holdings Limited and all of its subsidiary undertakings for the year. All financial statements are made up to 31 December 2022.

Related party exemption
The Group and 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.

Transactions between group entities which have been eliminated on consolidation are not disclosed with the 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.

(i) Property rental
Revenue is recognised in the accounting period in which the rental relates.

(ii) Rental of machinery and equipment
Revenue is recognised when the rental of machinery and equipment has been provided to the customer.

(iii) Long-term contracts
Revenue is recognised in-line with monthly valuations for individual contracts. The overall profit margin on each contract is reviewed and where necessary, a cost accrual provided to bring the actual profit margin recognised in turnover to date in line with overall profit margin the for the contact.

(iv) Provision of training services
Revenue is recognised in the accounting period in which the training services have been provided.

(v) Sale of vehicles
Revenue is recognised when the significant risks and rewards of ownership have been transferred to the buyer which generally occurs when the vehicle has been delivered to the customer and title has passed.

Goodwill
Goodwill, being purchased goodwill acquired in 2014, is carried at cost less accumulated amortisation and impairment losses, if any. Amortisation is calculated on a straight-line basis over the useful economic life of 20 years.

Kelston Sparkes Holdings Limited (Registered number: 01456314)

Notes to the Consolidated Financial Statements - continued
for the Year Ended 31 December 2023

3. ACCOUNTING POLICIES - continued

Tangible fixed assets
Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life or, if held under a finance lease, over the lease term, whichever is the shorter.

Major Plant (Excluding Crushers)- 11% on straight line for first 5 years and then 12.5% on reducing balance
thereafter
Major Plant (Crushers) - 16.66% on straight line for first 5 years and then 12.5% on reducing
balance thereafter
Dumper Trucks - 11% on straight line for first 5 years and then 12.5% on reducing balance
thereafter
Sundry Plant (Excluding GPS)- 12.5% on reducing balance
Sundry Plant (GPS Equipment)- 33.3% on straight line
Motor Vehicles- 25% and 20% on reducing balance

Freehold property is included at valuation, all other fixed assets are included at cost.

The freehold property from which the group operates has been revalued and is not depreciated as it is considered that the residual value of the property is in excess of its cost and therefore, in accordance with FRS 102, there is no depreciable amount. Annual impairment reviews are undertaken in respect of this property to ensure its carrying value can be supported.

Investment property
Investment property is shown at most recent valuation. Any aggregate surplus or deficit arising from changes in fair value is recognised in profit or loss.

Stocks
Stocks are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items.

Stocks comprise consumables.

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.

Hire purchase and leasing commitments
Assets obtained under hire purchase contracts or finance leases are capitalised in the balance sheet. Those held under hire purchase contracts are depreciated over their estimated useful lives. Those held under finance leases are depreciated over their estimated useful lives or the lease term, whichever is the shorter.

The interest element of these obligations is charged to profit or loss over the relevant period using the sum of digits method. The capital element of the future payments is treated as a liability.

Kelston Sparkes Holdings Limited (Registered number: 01456314)

Notes to the Consolidated Financial Statements - continued
for the Year Ended 31 December 2023

3. ACCOUNTING POLICIES - continued

Pension costs and other post-retirement benefits
The Group and the company operate 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.

Investments - company
Investments in subsidiary companies are held at cost less accumulated impairment losses.

Cash and cash equivalents
Cash and cash equivalents includes cash in hand, that are readily convertible to cash with insignificant risk of change in value and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

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 loans, are initially recognised at transaction price and subsequently measured at amortised cost.

Related party transactions
The Group discloses transactions with related parties which are not wholly owned within the Group. Where appropriate, transactions of a similar nature are aggregated unless, in the opinion of the directors, separate disclosure is necessary to understand the effect of the transactions on the Group financial statements.

Minority interest
Equity minority interests represent the share of profits or losses on ordinary activities attributable to the interests of equity shareholders in subsidiaries which are not wholly owned by the group.

Critical accounting policies and estimation uncertainty
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 amount of assets and liabilities within the financial statements, the directors are of the opinion that the only material judgements or estimates relate to the annual depreciation charge and deferred taxation.

(i) Useful economic lives of tangible assets

The annual depreciation charge for tangible assets is sensitive to changes in the estimates of useful economic lives and residual values of the assets. The useful economic lives and residual values are reviewed annually. They are amended when necessary to reflect current estimates, based on technological advancement, future investments, economic utilisation and the physical condition of the assets. See note 12 for the carrying amount of the property plant and equipment and note 3 for the useful economic lives for each class of assets.

(ii) Cost accrual in respect of long term contracts: £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.

(iii) Deferred Taxation

Management estimation is required to determine the amount of deferred tax assets that can be recognised, based upon likely timing and level of future taxable profits together with an assessment of the effect of future tax planning strategies. Further details are contained in note 8.

Kelston Sparkes Holdings Limited (Registered number: 01456314)

Notes to the Consolidated Financial Statements - continued
for the Year Ended 31 December 2023

4. TURNOVER

The turnover and profit before taxation are attributable to the one principal activity of the group.

An analysis of turnover by class of business is given below:

2023 2022
£    £   
Renting of equipment 12,683,317 13,817,262
Earth moving contracts 20,517,164 18,663,978
Training 270,204 253,714
Rental income 215,437 219,502
33,686,122 32,954,456

5. EMPLOYEES AND DIRECTORS

2023 2022
£ £

Wages and salaries 7,298,771 6,790,287
Social security 762,532 778,089
Pension costs 298,373 299,164
8,359,676 7,867,540

The average monthly number of employees during the year was as follows:
2023 2022

Administration 34 31
Site personnel 135 141
169 172


Key management compensation
Key management includes the directors and members of senior management. The compensation paid to key management for employee services totalled £967,040 (2022 - £965,431).

2023 2022
£    £   
Directors' remuneration 278,713 247,998
Directors' pension contributions to money purchase schemes 155,362 159,251

The number of directors to whom retirement benefits were accruing was as follows:

Money purchase schemes 6 6

Information regarding the highest paid director is as follows:
2023 2022
£    £   
Emoluments etc 94,235 72,896
Pension contributions to money purchase schemes 56,487 76,321

Kelston Sparkes Holdings Limited (Registered number: 01456314)

Notes to the Consolidated Financial Statements - continued
for the Year Ended 31 December 2023

6. OPERATING PROFIT

The operating profit is stated after charging/(crediting):

2023 2022
£    £   
Depreciation - owned assets 964,925 840,741
Depreciation - assets on hire purchase contracts 3,124,167 3,323,883
Profit on disposal of fixed assets (264,892 ) (249,586 )
Goodwill amortisation 27,899 27,899
Auditors' remuneration of group 19,000 17,100
Auditors' remuneration taxation compliance services 6,000 4,750
Auditors' remuneration non-audit services 19,210 16,979
Hire of plant and machinery 622,665 758,929

7. INTEREST PAYABLE AND SIMILAR EXPENSES
2023 2022
£    £   
Bank loan interest 105,675 55,515
HMRC interest 5 1,066
Directors loan interest 42,006 53,849
Hire purchase 534,628 457,271
682,314 567,701

8. TAXATION

Analysis of the tax charge
The tax charge on the profit for the year was as follows:
2023 2022
£    £   
Deferred tax 722,292 121,951
Tax on profit 722,292 121,951

Reconciliation of total tax charge included in profit and loss
The tax assessed for the year is higher than the standard rate of corporation tax in the UK. The difference is explained below:

2023 2022
£    £   
Profit before tax 2,657,414 1,614,680
Profit multiplied by the standard rate of corporation tax in the UK of 23.500
% (2022 - 19 %)

624,492

306,789

Effects of:
Expenses not deductible for tax purposes 54,462 30,800
Re-calculation of deferred tax - previous year - 3,194
in previous year to 25%
Re-measurement of deferred tax - change in rate 18,249 212,459
Loss carried forward expected to reverse 25,089 (191,251 )
Research and development enhanced expenditure - (239,032 )
credit
Previous period adjustment - (15,095 )
Accelerated Capital Allowances understated in previous year - 14,087
allowance
Total tax charge 722,292 121,951

Kelston Sparkes Holdings Limited (Registered number: 01456314)

Notes to the Consolidated Financial Statements - continued
for the Year Ended 31 December 2023

9. INDIVIDUAL STATEMENT OF COMPREHENSIVE INCOME

As permitted by Section 408 of the Companies Act 2006, the Statement of Comprehensive Income of the parent company is not presented as part of these financial statements.


10. DIVIDENDS

2023 2022
£ £

'A' Ordinary Shares of £1 each - Interim 160,000 160,000
'B' Ordinary Shares of £1 each - Interim 63,500 -
'C' Ordinary Shares of £1 each - Interim 40,000 40,000
'D' Ordinary Shares of £1 each - Interim 80,000 80,000
343,500 280,000

The above dividends have been paid on the 'A', 'B', 'C' and 'D' Ordinary Shares issued in Kelston Sparkes (Group) Limited which are not owned by Kelston Sparkes Holdings Limited.

11. INTANGIBLE FIXED ASSETS

Group
Goodwill
£   
COST
At 1 January 2023
and 31 December 2023 857,730
AMORTISATION
At 1 January 2023 241,785
Amortisation for year 27,899
At 31 December 2023 269,684
NET BOOK VALUE
At 31 December 2023 588,046
At 31 December 2022 615,945

Kelston Sparkes Holdings Limited (Registered number: 01456314)

Notes to the Consolidated Financial Statements - continued
for the Year Ended 31 December 2023

12. TANGIBLE FIXED ASSETS

Group
Freehold Major Dumper
property plant trucks
£    £    £   
COST
At 1 January 2023 3,630,000 23,953,605 14,670,078
Additions - 2,382,456 1,172,480
Disposals - (2,202,595 ) (1,905,952 )
At 31 December 2023 3,630,000 24,133,466 13,936,606
DEPRECIATION
At 1 January 2023 - 9,335,637 6,254,575
Charge for year - 2,358,587 1,284,443
Eliminated on disposal - (1,319,915 ) (1,130,088 )
At 31 December 2023 - 10,374,309 6,408,930
NET BOOK VALUE
At 31 December 2023 3,630,000 13,759,157 7,527,676
At 31 December 2022 3,630,000 14,617,968 8,415,503

Sundry Motor
plant vehicles Totals
£    £    £   
COST
At 1 January 2023 1,015,818 2,282,265 45,551,766
Additions 165,442 970,216 4,690,594
Disposals - (301,112 ) (4,409,659 )
At 31 December 2023 1,181,260 2,951,369 45,832,701
DEPRECIATION
At 1 January 2023 592,844 997,200 17,180,256
Charge for year 132,595 313,467 4,089,092
Eliminated on disposal - (184,940 ) (2,634,943 )
At 31 December 2023 725,439 1,125,727 18,634,405
NET BOOK VALUE
At 31 December 2023 455,821 1,825,642 27,198,296
At 31 December 2022 422,974 1,285,065 28,371,510

Kelston Sparkes Holdings Limited (Registered number: 01456314)

Notes to the Consolidated Financial Statements - continued
for the Year Ended 31 December 2023

12. TANGIBLE FIXED ASSETS - continued

Group

Fixed assets, included in the above, which are held under hire purchase contracts are as follows:
Major Dumper Sundry Motor
plant trucks plant vehicles Totals
£    £    £    £    £   
COST
At 1 January 2023 16,359,735 10,685,899 335,271 1,556,728 28,937,633
Additions 2,006,456 1,172,480 52,989 937,374 4,169,299
Disposals (585,500 ) (1,717,952 ) - (185,043 ) (2,488,495 )
Transfer to ownership (3,270,912 ) - (62,000 ) (154,941 ) (3,487,853 )
At 31 December 2023 14,509,779 10,140,427 326,260 2,154,118 27,130,584
DEPRECIATION
At 1 January 2023 4,585,115 3,773,476 110,976 526,125 8,995,692
Charge for year 1,785,057 1,004,853 85,175 249,082 3,124,167
Eliminated on disposal (265,756 ) (1,003,457 ) - (102,826 ) (1,372,039 )
Transfer to ownership (1,205,012 ) (460,631 ) (32,378 ) (95,031 ) (1,793,052 )
At 31 December 2023 4,899,404 3,314,241 163,773 577,350 8,954,768
NET BOOK VALUE
At 31 December 2023 9,610,375 6,826,186 162,487 1,576,768 18,175,816
At 31 December 2022 11,774,620 6,912,423 224,295 1,030,603 19,941,941

Company
Freehold
property
£   
COST OR VALUATION
At 1 January 2023
and 31 December 2023 3,630,000
NET BOOK VALUE
At 31 December 2023 3,630,000
At 31 December 2022 3,630,000

The freehold property owned by the company was independently valued by Colliers International Valuation UK LLP on 11 August 2021.

Cost or valuation at 31 December 2023 is represented by:

Freehold
property
£   
Valuation in 2021 554,079
Cost 3,075,921
3,630,000

Kelston Sparkes Holdings Limited (Registered number: 01456314)

Notes to the Consolidated Financial Statements - continued
for the Year Ended 31 December 2023

13. FIXED ASSET INVESTMENTS

Company
Shares in
group
undertakings
£   
COST
At 1 January 2023 4,228,101
Additions 100
At 31 December 2023 4,228,201
NET BOOK VALUE
At 31 December 2023 4,228,201
At 31 December 2022 4,228,101

The group or the company's investments at the Balance Sheet date in the share capital of companies include the following:

Subsidiaries

Kelston Sparkes (Group) Limited
Registered office: England
Nature of business: Plant Hire and Earthmoving
%
Class of shares: holding
Ordinary 99.99
2023 2022
£    £   
Aggregate capital and reserves 6,847,381 7,465,997
Loss for the year (275,116 ) (67,465 )

Kelston Sparkes Contractors Limited
Registered office: England
Nature of business: Earthmoving contractors
%
Class of shares: holding
Ordinary 100.00
2023 2022
£    £   
Aggregate capital and reserves 6,312,067 4,300,944
Profit for the year 2,011,123 1,354,055

KSG Training Services Limited
Registered office: England
Nature of business: Training Services
%
Class of shares: holding
Ordinary 100.00
2023 2022
£    £   
Aggregate capital and reserves 73,663 51,011
Profit/(loss) for the year 22,652 (5,326 )

Kelston Sparkes Holdings Limited (Registered number: 01456314)

Notes to the Consolidated Financial Statements - continued
for the Year Ended 31 December 2023

13. FIXED ASSET INVESTMENTS - continued

KSG Vehicle Solutions Limited
Registered office: England
Nature of business: Vehicle Hire Company
%
Class of shares: holding
Ordinary 100.00
2023 2022
£    £   
Aggregate capital and reserves 304,681 181,225
Profit for the year 123,456 93,593

Kelston Sparkes Quarry Services Limited
Registered office: England
Nature of business: Rent & Lease of Machinery & Equipment
%
Class of shares: holding
Ordinary 100.00
2023
£   
Aggregate capital and reserves (2,264 )
Loss for the year (2,364 )

The shares in Kelston Sparkes Quarry Services Limited were acquired on its incorporation on 7 February 2023.


14. INVESTMENT PROPERTY

Group
Total
£   
FAIR VALUE
At 1 January 2023
and 31 December 2023 1,845,000
NET BOOK VALUE
At 31 December 2023 1,845,000
At 31 December 2022 1,845,000

Fair value at 31 December 2023 is represented by:
£   
Valuation in 2018 323,121
Valuation in 2019 46,431
Valuation in 2020 229,831
Cost 1,245,617
1,845,000

Company
Total
£   
FAIR VALUE
At 1 January 2023
and 31 December 2023 1,845,000
NET BOOK VALUE
At 31 December 2023 1,845,000
At 31 December 2022 1,845,000

Kelston Sparkes Holdings Limited (Registered number: 01456314)

Notes to the Consolidated Financial Statements - continued
for the Year Ended 31 December 2023

14. INVESTMENT PROPERTY - continued

Company

The investment property owned by the company was independently valued on an existing use basis by Colliers International Valuation UK LLP on 11 August 2021. The valuation was £1,845,000 subject to the existing lease.

Fair value at 31 December 2023 is represented by:
£   
Valuation in 2018 323,121
Valuation in 2019 46,431
Valuation in 2020 229,831
Cost 1,245,617
1,845,000

15. STOCKS

Group
2023 2022
£    £   
Stocks 298,336 282,046

16. DEBTORS

Group Company
2023 2022 2023 2022
£    £    £    £   
Amounts falling due within one year:
Trade debtors 6,070,141 4,648,464 10,250 19,165
Amounts recoverable on contract 2,720,115 2,505,714 - -
Other debtors 170,832 147,414 - -
VAT - 164,658 - -
8,961,088 7,466,250 10,250 19,165

Amounts falling due after more than one year:
Amounts owed by group undertakings - - 643,751 437,848

Aggregate amounts 8,961,088 7,466,250 654,001 457,013

Company
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 Holdings Limited (Registered number: 01456314)

Notes to the Consolidated Financial Statements - continued
for the Year Ended 31 December 2023

17. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

Group Company
2023 2022 2023 2022
£    £    £    £   
Bank loans and overdrafts (see note 19) 124,674 521,412 - -
Hire purchase contracts (see note 20) 5,376,686 5,938,627 - -
Trade creditors 3,023,626 3,350,030 - 101
Social security and other taxes 211,167 180,320 - -
VAT 568,422 - 10,770 10,804
Other creditors 1,055,503 995,889 66,080 64,013
Interest free loan < 1 year 27,581 45,406 - -
Accruals and deferred income 2,758,381 723,218 - -
13,146,040 11,754,902 76,850 74,918

18. CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR

Group Company
2023 2022 2023 2022
£    £    £    £   
Bank loans (see note 19) 1,450,672 1,566,224 - -
Hire purchase contracts (see note 20) 8,637,154 10,353,371 - -
Amounts owed to group undertakings - - 5,170,577 5,051,781
Interest free loan 1 - 2 years 1,083 27,581 - -
Directors' loan accounts 94,541 601,907 - -
10,183,450 12,549,083 5,170,577 5,051,781

Company
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.

19. LOANS

An analysis of the maturity of loans is given below:

Group
2023 2022
£    £   
Amounts falling due within one year or on demand:
Bank loans 124,674 127,162
Debt factoring account - 394,250
124,674 521,412
Amounts falling due between one and two years:
Bank loans - 1-2 years 133,886 134,201
Amounts falling due between two and five years:
Bank loans - 2-5 years 463,995 448,846
Amounts falling due in more than five years:
Repayable by instalments
Bank loans more 5 yr by instal 852,791 983,177

The short term overdraft carries interest at the rate of 2.79% above base rate.

The bank loan was drawn down in April 2018. The loan carries interest at the rate of 1.9% above HSBC Bank plc's base rate and is repayable in 180 monthly instalments. The loan is repayable by April 2033.

Kelston Sparkes Holdings Limited (Registered number: 01456314)

Notes to the Consolidated Financial Statements - continued
for the Year Ended 31 December 2023

20. LEASING AGREEMENTS

Minimum lease payments fall due as follows:

Group
Hire purchase contracts
2023 2022
£    £   
Gross obligations repayable:
Within one year 5,857,771 6,300,119
Between one and five years 9,165,231 10,711,807
15,023,002 17,011,926

Finance charges repayable:
Within one year 481,085 361,492
Between one and five years 528,077 358,436
1,009,162 719,928

Net obligations repayable:
Within one year 5,376,686 5,938,627
Between one and five years 8,637,154 10,353,371
14,013,840 16,291,998

21. SECURED DEBTS

The following secured debts are included within creditors:

Group
2023 2022
£    £   
Bank loans 1,575,346 2,087,636
Hire purchase contracts 14,013,840 16,291,998
15,589,186 18,379,634

Group

The above bank borrowings are secured by HSBC Bank plc with a fixed floating charge over all the assets and undertakings.

An unlimited composite company guarantee to Kelston Sparkes Holdings Limited, Kelston Sparkes (Group) Limited, Kelston Sparkes Contractors Limited and KSG Training Services Limited is also in place with HSBC Bank plc to secure all liabilities with the Bank that any of these companies may have.

Included within loans is £0 (2022 - £394,250) subject to invoice discounting arrangements with HSBC Bank Commercial Finance Limited. This is secured by an all asset debenture over the assets of the group.

Hire purchase debts are secured over the asset to which they relate.

Kelston Sparkes Holdings Limited (Registered number: 01456314)

Notes to the Consolidated Financial Statements - continued
for the Year Ended 31 December 2023

22. FINANCIAL INSTRUMENTS

Group

The group has the following financial instruments:
Notes 2023 2022
£ £
Financial assets that are debt instruments measured at amortised cost
Trade debtors 16 6,106,205 4,648,464
Amounts recoverable on contracts 16 845,115 2,505,714
6,951,320 7,154,178

Financial liabilities measured at amortised cost
Bank loans and overdrafts 17, 18 1,575,346 2,087,636
Trade creditors 17 3,023,627 3,350,030
Hire purchase contracts 17, 18 14,013,843 16,291,998
18,612,816 21,729,664

Company

The company has the following financial instruments:
Notes 2023 2022
£ £
Financial assets that are debt instruments measured at amortised cost
Trade debtors 16 10,250 19,165
Amounts owed by group undertakings 16 643,751 437,848
654,001 457,013

Financial liabilities measured at amortised cost
Trade creditors 17 - 101
Amounts owed to group undertakings 18 5,170,577 5,051,781
5,170,577 5,051,882

23. PROVISIONS FOR LIABILITIES

Group Company
2023 2022 2023 2022
£    £    £    £   
Deferred tax
Accelerated capital allowances 5,023,744 4,719,599 288,366 288,366
Tax losses carried forward (1,389,175 ) (1,807,322 ) - -
3,634,569 2,912,277 288,366 288,366

Group
Deferred
tax
£   
Balance at 1 January 2023 2,912,277
Provided during year 722,292
Balance at 31 December 2023 3,634,569

Kelston Sparkes Holdings Limited (Registered number: 01456314)

Notes to the Consolidated Financial Statements - continued
for the Year Ended 31 December 2023

23. PROVISIONS FOR LIABILITIES - continued

Company
Deferred
tax
£   
Balance at 1 January 2023 288,366
Balance at 31 December 2023 288,366

24. CALLED UP SHARE CAPITAL

Allotted, issued and fully paid:
Number: Class: Nominal 2023 2022
value: £    £   
3,952,100 Ordinary £1 3,952,100 3,952,100

There are no restrictions on the distribution of dividends and the repayment of capital on all classes of ordinary shares.

25. RESERVES

Group
Retained Revaluation
earnings reserve Totals
£    £    £   

At 1 January 2023 7,746,255 865,096 8,611,351
Profit for the year 1,935,141 1,935,141
Dividends (343,500 ) (343,500 )
At 31 December 2023 9,337,896 865,096 10,202,992

Company
Retained Revaluation
earnings reserve Totals
£    £    £   

At 1 January 2023 15,601 865,096 880,697
Profit for the year 25,394 25,394
At 31 December 2023 40,995 865,096 906,091


26. NON-CONTROLLING INTERESTS

The minority interest represents a 0.006% (2022 - 0.006%) interest in Kelston Sparkes (Group) Limited.

27. CONTINGENT LIABILITIES

Company

The company is party to a cross company guarantee to HSBC Bank plc for Kelston Sparkes (Group) Limited, Kelston Sparkes Contractors Limited and KSG Training Services Limited. These companies are controlled by the directors of Kelston Sparkes Holdings Limited.

The company has contingent liabilities at 31 December 2023 amounting to £36,782 (2022 - £87,748) 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 Holdings Limited (Registered number: 01456314)

Notes to the Consolidated Financial Statements - continued
for the Year Ended 31 December 2023

28. RELATED PARTY DISCLOSURES

During the year, total dividends of £343,500 (2022 - £280,000) were paid to the directors of Kelston Sparkes (Group) Limited.

Entities over which the entity has control, joint control or significant influence
2023 2022
£    £   
Sales 60,000 30,000
Transfers (176,566 ) (71,905 )
Loan interest receivable/(payable) 355,255 188,267
Amount due to related party 5,170,577 5,051,781

Key management personnel of the entity or its parent (in the aggregate)
2023 2022
£    £   
Loan interest (payable) (42,006 ) (53,849 )
Amount due to related party 758,850 1,372,709

Other related parties
2023 2022
£    £   
Paid on behalf of related party - (133,465 )
Loans repaid to related party - 7,500
Amount due from related party 117,654 117,654
Amount due to related party 46,966 43,480

29. ULTIMATE CONTROLLING PARTY

The ultimate controlling party for the Company and Group is Mr A K Sparkes, by virtue of his 55% holding of the share capital in Kelston Sparkes Holdings Limited.