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 |
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: |
SECRETARY: |
REGISTERED OFFICE: |
REGISTERED NUMBER: |
SENIOR STATUTORY AUDITOR: | Michael Cook BSc FCA |
AUDITORS: |
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: |
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. |
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: |
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. |
for and on behalf of |
Chartered Accountants |
& Statutory Auditor |
Stafford House |
Blackbrook Park Avenue |
Taunton |
Somerset |
TA1 2PX |
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 |
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 |
Investments | 13 |
Investment property | 14 |
CURRENT ASSETS |
Debtors: amounts falling due within one year | 16 |
Debtors: amounts falling due after more than one year |
16 |
Cash at bank |
CREDITORS |
Amounts falling due within one year | 17 |
NET CURRENT ASSETS |
TOTAL ASSETS LESS CURRENT LIABILITIES |
CREDITORS |
Amounts falling due after more than one year |
18 |
( |
) |
( |
) |
PROVISIONS FOR LIABILITIES | 23 | ( |
) | ( |
) |
NET ASSETS |
CAPITAL AND RESERVES |
Called up share capital | 24 |
Revaluation reserve | 25 |
Retained earnings | 25 |
SHAREHOLDERS' FUNDS |
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 |
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 | ( |
) |
Changes in equity |
Total comprehensive income | - |
Balance at 31 December 2022 |
Changes in equity |
Total comprehensive income | - |
Balance at 31 December 2023 |
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 |
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 |
NET BOOK VALUE |
At 31 December 2023 |
At 31 December 2022 |
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 |
Additions |
At 31 December 2023 |
NET BOOK VALUE |
At 31 December 2023 |
At 31 December 2022 |
The group or the company's investments at the Balance Sheet date in the share capital of companies include the following: |
Subsidiaries |
Registered office: England |
Nature of business: |
% |
Class of shares: | holding |
2023 | 2022 |
£ | £ |
Aggregate capital and reserves |
Loss for the year | ( |
) | ( |
) |
Registered office: England |
Nature of business: |
% |
Class of shares: | holding |
2023 | 2022 |
£ | £ |
Aggregate capital and reserves |
Profit for the year |
Registered office: England |
Nature of business: |
% |
Class of shares: | holding |
2023 | 2022 |
£ | £ |
Aggregate capital and reserves |
Profit/(loss) for the year | ( |
) |
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 |
Registered office: England |
Nature of business: |
% |
Class of shares: | holding |
2023 | 2022 |
£ | £ |
Aggregate capital and reserves |
Profit for the year |
Registered office: England |
Nature of business: |
% |
Class of shares: | holding |
2023 |
£ |
Aggregate capital and reserves | ( |
) |
Loss for the year | ( |
) |
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 |
NET BOOK VALUE |
At 31 December 2023 |
At 31 December 2022 |
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 |
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 |
Amounts falling due after more than one | year: |
Amounts owed by group undertakings | - | - |
Aggregate amounts | 8,961,088 | 7,466,250 |
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 |
Social security and other taxes | 211,167 | 180,320 |
VAT | 568,422 | - | 10,770 | 10,804 |
Other creditors | 1,055,503 | 995,889 |
Interest free loan < 1 year | 27,581 | 45,406 | - | - |
Accruals and deferred income | 2,758,381 | 723,218 |
13,146,040 | 11,754,902 |
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 |
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 |
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 |
Balance at 31 December 2023 |
24. | CALLED UP SHARE CAPITAL |
Allotted, issued and fully paid: |
Number: | Class: | Nominal | 2023 | 2022 |
value: | £ | £ |
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 | 880,697 |
Profit for the year |
At 31 December 2023 | 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. |