Broad Oak KM Limited
Annual report and Financial Statements
For the year ended 31 March 2024
Broad Oak KM Limited
Company information
Directors
Mrs S J Harrison
Mr A P Harrison
Company number
08414364
Registered office
Broad Oak Farm Little Green Head
Kingsley Moor
Stoke-On-Trent
ST10 2EL
Auditor
BK Plus Audit Limited
Azzurri House
Walsall Business Park
Aldridge
Walsall
West Midlands
WS9 0RB
Broad Oak KM Limited
Contents
Page
Strategic report
1 - 2
Directors' report
3 - 4
Independent auditor's report
5 - 7
Income statement
8
Group statement of comprehensive income
9
Group statement of financial position
10
Company statement of financial position
11
Group statement of changes in equity
12
Company statement of changes in equity
13
Group statement of cash flows
14
Notes to the financial statements
15 - 34
Broad Oak KM Limited
Strategic report
For the year ended 31 March 2024
- 1 -

The directors present the strategic report for the year ended 31 March 2024.

 

The Group operates in a number of sectors including construction, property renovation, renewable energy, heating services, biomass, property sales and corporate hospitality. The Group has a wide range of customers and contracts within the sectors they operate. The Group's focus continues to be driven by high customer service levels with a strong focus on quality and long term relationships with both the customer and the supply chains.

Review of the business

The Group’s strong customer relationships and ability to deliver on their requirements was demonstrated during the current financial year by strong revenue growth. Despite the strong revenue growth, we maintained a strict view on costs within the Group.

 

Turnover for the year increased to £47.7m from £26.9m. The increase was predominantly driven by growth in the heating and renewable areas of the business. A key part of the success was our ability to deliver at volume with high quality, whilst a number of competitors struggled with their delivery.

 

Cost of sales increased from £20.1m to £34.6m however, by maintaining focus on costs, we were able to increase gross profit margin from 25.1% to 27.5%.

 

Administrative expenses increased to £2.5m from £1.4m however, this was in line with expectations due to the growth of the business.

 

Profit before tax increased to £10.9m from £5.3m in the prior year.

 

Over the financial year our cash flow was mainly based on cash within the business and we were largely supported by the fact that our customers have continued to be prompt with their payments. Over the next financial year our cash flow will continue to be based on cash and profit within the business. Cash at bank and in hand has increased to £10.2m from £3.3m the prior year.

 

For the year ending 31st March 2024, there was a revaluation of properties.

 

Future Developments

The ongoing green agenda for the Government should ensure that the Group continues to see strong demand for its services over the coming financial year.

Principal risks and uncertainties

Financial Risks

The current trading environment within the construction sector remains very competitive alongside the renewable and government funded schemes being subject to change and financial review. However, as a Group we are more than aware of the need to adapt and change according to our trading environment. We have proved in the past that we are more than capable, if necessary, of seeking and securing new opportunities and work for the business.

 

Credit Risk

Due to the nature of the business we undertake, there will always be the risk of a customer's failure to honour their obligations to pay within the terms set out by our companies. We attempt to minimise this by undertaking credit checks, external credit insurance, third party information and implementing credit terms and contracts before proceeding works with customers. A large proportion of our business is operated with Local Authorities and energy company grants. Our debtors are also monitored regularly between both the Financial Department and the Managing Director.

 

Other Business risks

Liquidity/cashflow risks - the Group has strong credit control processes in place to ensure credit customers pay within their credit terms in order to maintain cashflow. The Group is also currently in a strong cash position to mitigate any liquidity risk.

Broad Oak KM Limited
Strategic report (continued)
For the year ended 31 March 2024
- 2 -
Key performance indicators

The key performance indicators used to monitor the development, performance and

position of the Group include:

 

Key Performance Indicators

 

Turnover

Mar24             Mar23

Turnover            £47,682,856            £26,900,692

Increase /

(decrease)            £20,782,164             £11,939,226

% change             77.3%             79.8%

 

This KPI is calculated by taking the turnover for the year and comparing to the previous year. The movement is shown as both an absolute value and a percentage.

 

Gross Profit

Mar24             Mar23

Gross Profit             £13,093,252            £6,759,668

Gross Profit %         27.5%             25.1%

 

This KPI is calculated by taking the gross profit achieved as a percentage of turnover.

Gross profit margin has increased during the year due to the growth of the business changing the turnover mix along with a continued focus on cost control.

 

On behalf of the board

Mr A P Harrison
Director
4 September 2024
Broad Oak KM Limited
Directors' report
For the year ended 31 March 2024
- 3 -

The directors present their annual report and financial statements for the year ended 31 March 2024.

Principal activities

The principal activities of the group in the year under review were those of providing contracting services,

property development and subletting.

 

The principal activity of the company in the year under review was that of providing management

services and property letting.

Results and dividends

The results for the year are set out on page 8.

Ordinary dividends were paid amounting to £77,000 (2023 - £215,000). The directors do not recommend payment of a further dividend.

Directors

The directors who held office during the year and up to the date of signature of the financial statements were as follows:

Mrs S J Harrison
Mr A P Harrison
Auditor

BK Plus Audit Limited, has indicated its willingness to continue in office and will be proposed for re-appointment in accordance with section 485 Companies Act 2006.

Statement of directors' responsibilities

The directors are responsible for preparing the Annual 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). 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 group and company, and of the profit or loss of the group for that period. In preparing these financial statements, the directors are required to:

 

 

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the group’s and company’s transactions and disclose with reasonable accuracy at any time the financial position of the group and 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 group and company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Broad Oak KM Limited
Directors' report (continued)
For the year ended 31 March 2024
- 4 -
Statement of disclosure to auditor

So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the auditor of the company is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the auditor of the company is aware of that information.

Disclosure in the strategic report

The company has chosen in accordance with Companies Act 2006, s. 414C(11) to set out in the company's strategic report information required by Large and Medium-sized Companies and Groups (Accounts and Reports) Regulations 2008, Sch. 7 to be contained in the directors' report.

Medium-sized companies exemption

This report has been prepared in accordance with the provisions applicable to companies entitled to the medium-sized companies exemption.

On behalf of the board
Mr A P Harrison
Director
4 September 2024
Broad Oak KM Limited
Independent auditor's report
To the members of Broad Oak KM Limited
- 5 -
Opinion

We have audited the financial statements of Broad Oak KM Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 March 2024 which comprise the group income statement, the group statement of comprehensive income, the group statement of financial position, the company statement of financial position, the group statement of changes in equity, the company statement of changes in equity, the group statement of cash flows and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the group and parent company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

 

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the group's and 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 other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The directors are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. 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 course of 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.

Broad Oak KM Limited
Independent auditor's report (continued)
To the members of Broad Oak KM Limited
- 6 -

Opinions on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of our audit:

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 their environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the directors' report.

 

We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:

Responsibilities of directors

As explained more fully in the directors' responsibilities statement, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the directors are responsible for assessing the 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 parent company or to cease operations, or have no realistic alternative but to do so.

Auditor's responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.

- the engagement partner ensured that the engagement team collectively had the appropriate competence, capabilities and skills to identify or recognise non-compliance with applicable laws and regulations;

- we identified the laws and regulations applicable to the company through discussions with directors and other management;

- we focused on specific laws and regulations which we considered may have a direct material effect on the financial statements or the operations of the company, including legislation such as the Companies Act 2006, taxation legislation, data protection, employment, and health and safety legislation;

- we assessed the extent of compliance with the laws and regulations through making enquiries of management and reviewing legal and professional fee invoices.

 

Broad Oak KM Limited
Independent auditor's report (continued)
To the members of Broad Oak KM Limited
- 7 -

We assessed the susceptibility of the company's financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by:

- making enquiries of management as to where they considered there was susceptibility to fraud, their knowledge of actual, suspected and alleged fraud; and

- considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations.

To address the risk of fraud through management bias and override of controls, we:

- performed analytical procedures to identify any unusual or unexpected relationships;

- tested journal entries posted during the period and at the period end to identify unusual transactions;

- investigated the rationale behind significant or unusual transactions; and

- performed walkthrough tests on major transaction cycles.

 

In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to:

- agreeing financial statement disclosures to underlying supporting documentation;

- enquiring of management as to actual and potential litigation and claims;

- reviewing correspondence with HMRC;

- reviewing legal and professional fees incurred during the period to identify any potential indications of non-compliance with laws and regulations.

There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the directors and other management and the inspection of regulatory and legal correspondence, if any.

 

Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion.

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.

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 an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company’s members as a body, for our audit work, for this report, or for the opinions we have formed.

Mr Chris Hession (Senior Statutory Auditor)
For and on behalf of BK Plus Audit Limited
4 September 2024
Accountants
Statutory Auditor
Azzurri House
Walsall Business Park
Aldridge
Walsall
West Midlands
WS9 0RB
Broad Oak KM Limited
Group income statement
For the year ended 31 March 2024
- 8 -
2024
2023
Notes
£
£
Turnover
3
47,682,856
26,900,692
Cost of sales
(34,589,604)
(20,141,024)
Gross profit
13,093,252
6,759,668
Administrative expenses
(2,464,963)
(1,361,912)
Other operating income
72,059
30,643
Operating profit
4
10,700,348
5,428,399
Interest receivable and similar income
7
162,207
1,790
Interest payable and similar expenses
8
(8,783)
(16,781)
Amounts written off investments
9
-
(122,246)
Profit before taxation
10,853,772
5,291,162
Tax on profit
10
(2,721,677)
(1,017,483)
Profit for the financial year
26
8,132,095
4,273,679
Profit for the financial year is all attributable to the owners of the parent company.
Broad Oak KM Limited
Group statement of comprehensive income
For the year ended 31 March 2024
- 9 -
2024
2023
£
£
Profit for the year
8,132,095
4,273,679
Other comprehensive income
-
-
Total comprehensive income for the year
8,132,095
4,273,679
Total comprehensive income for the year is all attributable to the owners of the parent company.
Broad Oak KM Limited
Group statement of financial position
As at 31 March 2024
- 10 -
2024
2023
Notes
£
£
£
£
Fixed assets
Tangible assets
13
1,674,493
991,190
Investment property
14
6,595,127
6,270,000
8,269,620
7,261,190
Current assets
Stocks
17
1,034,205
1,158,408
Debtors
18
14,892,856
9,923,455
Cash at bank and in hand
10,188,383
3,269,661
26,115,444
14,351,524
Creditors: amounts falling due within one year
19
(8,177,167)
(3,317,086)
Net current assets
17,938,277
11,034,438
Total assets less current liabilities
26,207,897
18,295,628
Creditors: amounts falling due after more than one year
20
-
(279,885)
Provisions for liabilities
Deferred tax liability
22
1,078,406
941,347
(1,078,406)
(941,347)
Net assets
25,129,491
17,074,396
Capital and reserves
Called up share capital
25
300
300
Profit and loss reserves
26
25,129,191
17,074,096
Total equity
25,129,491
17,074,396

These financial statements have been prepared in accordance with the provisions relating to medium-sized groups.

The financial statements were approved by the board of directors and authorised for issue on 4 September 2024 and are signed on its behalf by:
04 September 2024
Mr A P Harrison
Director
Company registration number 08414364 (England and Wales)
Broad Oak KM Limited
Company statement of financial position
As at 31 March 2024
31 March 2024
- 11 -
2024
2023
Notes
£
£
£
£
Fixed assets
Tangible assets
13
1,259,763
990,582
Investment property
14
6,615,127
6,290,000
Investments
15
361
201
7,875,251
7,280,783
Current assets
Debtors
18
8,714,712
8,771,182
Cash at bank and in hand
6,243,194
418,048
14,957,906
9,189,230
Creditors: amounts falling due within one year
19
(1,370,907)
(819,077)
Net current assets
13,586,999
8,370,153
Total assets less current liabilities
21,462,250
15,650,936
Creditors: amounts falling due after more than one year
20
-
(279,885)
Provisions for liabilities
Deferred tax liability
22
994,210
945,347
(994,210)
(945,347)
Net assets
20,468,040
14,425,704
Capital and reserves
Called up share capital
25
300
300
Profit and loss reserves
26
20,467,740
14,425,404
Total equity
20,468,040
14,425,704

As permitted by s408 Companies Act 2006, the company has not presented its own profit and loss account and related notes. The company’s profit for the year was £6,119,336 (2023 - £2,764,018 profit).

These financial statements have been prepared in accordance with the provisions relating to medium-sized companies.

The financial statements were approved by the board of directors and authorised for issue on 4 September 2024 and are signed on its behalf by:
04 September 2024
Mr A P Harrison
Director
Company registration number 08414364 (England and Wales)
Broad Oak KM Limited
Group statement of changes in equity
For the year ended 31 March 2024
- 12 -
Share capital
Profit and loss reserves
Total
Notes
£
£
£
Balance at 1 April 2022
300
13,015,417
13,015,717
Year ended 31 March 2023:
Profit and total comprehensive income
-
4,273,679
4,273,679
Dividends
11
-
(215,000)
(215,000)
Balance at 31 March 2023
300
17,074,096
17,074,396
Year ended 31 March 2024:
Profit and total comprehensive income
-
8,132,095
8,132,095
Dividends
11
-
(77,000)
(77,000)
Balance at 31 March 2024
300
25,129,191
25,129,491
Broad Oak KM Limited
Company statement of changes in equity
For the year ended 31 March 2024
- 13 -
Share capital
Profit and loss reserves
Total
Notes
£
£
£
Balance at 1 April 2022
300
11,876,386
11,876,686
Year ended 31 March 2023:
Profit and total comprehensive income for the year
-
2,764,018
2,764,018
Dividends
11
-
(215,000)
(215,000)
Balance at 31 March 2023
300
14,425,404
14,425,704
Year ended 31 March 2024:
Profit and total comprehensive income
-
6,119,336
6,119,336
Dividends
11
-
(77,000)
(77,000)
Balance at 31 March 2024
300
20,467,740
20,468,040
Broad Oak KM Limited
Group statement of cash flows
For the year ended 31 March 2024
- 14 -
2024
2023
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
30
10,203,186
2,342,868
Interest paid
(8,783)
(16,781)
Income taxes paid
(1,725,954)
(290,894)
Net cash inflow from operating activities
8,468,449
2,035,193
Investing activities
Purchase of tangible fixed assets
(1,069,781)
(567,686)
Proceeds from disposal of tangible fixed assets
49,910
40,124
Purchase of investment property
(325,127)
-
Proceeds from disposal of investment property
-
122,754
Interest received
162,207
1,790
Net cash used in investing activities
(1,182,791)
(403,018)
Financing activities
Repayment of bank loans
(289,936)
(680,293)
Dividends paid to equity shareholders
(77,000)
(215,000)
Net cash used in financing activities
(366,936)
(895,293)
Net increase in cash and cash equivalents
6,918,722
736,882
Cash and cash equivalents at beginning of year
3,269,661
2,532,779
Cash and cash equivalents at end of year
10,188,383
3,269,661
Broad Oak KM Limited
Notes to the group financial statements
For the year ended 31 March 2024
- 15 -
1
Accounting policies
Company information

Broad Oak KM Limited (“the company”) is a private limited company domiciled and incorporated in England and Wales. The registered office is Broad Oak Farm, Little Green Head, Kingsley Moor, Stoke On Trent, Staffordshire, ST10 2EL.

 

The group consists of Broad Oak KM Limited and all of its subsidiaries.

1.1
Accounting convention

These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.

The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.

The financial statements have been prepared under the historical cost convention, modified to include the revaluation of investment properties and certain financial instruments at fair value. The principal accounting policies adopted are set out below.

The company is a qualifying entity for the purposes of FRS 102, being a member of a group where the parent of that group prepares publicly available consolidated financial statements, including this company, which are intended to give a true and fair view of the assets, liabilities, financial position and profit or loss of the group. The company has therefore taken advantage of exemptions from the following disclosure requirements for parent company information presented within the consolidated financial statements:

 

Related party exemption

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 other group entities where the relationship is one of being wholly owned.

Broad Oak KM Limited
Notes to the group financial statements (continued)
For the year ended 31 March 2024
1
Accounting policies
(Continued)
- 16 -
1.2
Basis of consolidation

The consolidated group financial statements consist of the financial statements of the parent company Broad Oak KM Limited together with all entities controlled by the parent company (its subsidiaries) and the group’s share of its interests in joint ventures and associates.

 

All financial statements are made up to 31 March 2024. Where necessary, adjustments are made to the financial statements of subsidiaries to bring the accounting policies used into line with those used by other members of the group.

 

All intra-group transactions, balances and unrealised gains on transactions between group companies are eliminated on consolidation. Unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred.

 

Subsidiaries are consolidated in the group's financial statements from the date that control commences until the date that control ceases.

1.3
Going concern

At the time of approving the financial statements, the directors have a reasonable expectation that the group has adequate resources to continue in operational existence for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.

1.4
Turnover

Turnover is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business, and is shown net of VAT and other sales related taxes. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.

 

When cash inflows are deferred and represent a financing arrangement, the fair value of the consideration is the present value of the future receipts. The difference between the fair value of the consideration and the nominal amount received is recognised as interest income.

Broad Oak KM Limited
Notes to the group financial statements (continued)
For the year ended 31 March 2024
1
Accounting policies
(Continued)
- 17 -

Construction contracts

Where the outcome of a construction contract can be estimated reliably, revenue and costs are

recognised by reference to the stage of completion of the contract activity at the balance sheet

date. This is normally measured by the proportion that contract costs incurred for work performed

to date bear to the estimated total contracts costs, except where this would not be representative

of the stage of completion. Variations in contract work, claims and incentive payments are included

to the extent that the amount can be measured reliably and its receipt is considered payable.

 

Where the outcome of a construction contract cannot be estimated reliably, contract revenue is

recognised to the extent of contract costs incurred where it is probable they will be recoverable.

Contract costs are recognised as expenses in the period in which they are incurred.

When it is probable that the total contract costs will exceed total contract revenue, the expected

loss is recognised as an expense immediately.

 

Property sales

Trading property sales are accounted for on a legal completion basis.

 

Installations

Installation revenue from contracts for the provision of professional services is recognised by reference to the stage of completion when the stage of completion, costs incurred and costs to complete can be estimated reliably. The stage of completion is calculated using the costs incurred to date as a percentage of total expected costs.

 

Turnover and costs on contracts are recognised as activity progresses once the outcome can be assessed with reasonable certainty. Full provision is made for anticipated future losses. Where contract payments received exceed amounts recoverable, these amounts are included in creditors.

1.5
Intangible fixed assets - goodwill

Goodwill represents the excess of the cost of acquisition of a business over the fair value of net assets acquired. It is initially recognised as an asset at cost and is subsequently measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is considered to have a finite useful life and is amortised on a systematic basis over its expected life, it has been fully amortised.

1.6
Tangible fixed assets

Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.

Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

Leasehold improvements
10% on cost
Plant and equipment
20% on cost and 15% on reducing balance
Fixtures and fittings
25% on cost and 25% on reducing balance
Motor vehicles
25% on reducing balance

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in the income statement.

1.7
Investment properties

Investment property, which is property held to earn rentals and/or for capital appreciation, is initially recognised at cost, which includes the purchase cost and any directly attributable expenditure. Subsequently it is measured at fair value at the reporting end date. Changes in fair value are recognised in profit or loss.

Broad Oak KM Limited
Notes to the group financial statements (continued)
For the year ended 31 March 2024
1
Accounting policies
(Continued)
- 18 -
1.8
Fixed asset investments

Equity investments are measured at fair value through profit or loss, except for those equity investments that are not publicly traded and whose fair value cannot otherwise be measured reliably, which are recognised at cost less impairment until a reliable measure of fair value becomes available.

 

In the parent company financial statements, investments in subsidiaries, are initially measured at cost and subsequently measured at cost less any accumulated impairment losses.

A subsidiary is an entity controlled by the group. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.

1.9
Impairment of fixed assets

At each reporting period end date, the group reviews the carrying amounts of its tangible and intangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.

 

The carrying amount of the investments accounted for using the equity method is tested for impairment as a single asset. Any goodwill included in the carrying amount of the investment is not tested separately for impairment.

Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.

 

If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.

Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.

1.10
Stocks

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

 

Cost is determined on the first-in, first-out (FIFO) method. Cost includes the purchase price, including taxes and duties and transport and handling directly attributable to bringing the inventory to its present location and condition. The cost of manufactured finished goods and work in progress includes design costs, raw materials, direct labour and other direct costs and related production overheads (based on normal operating capacity).

Broad Oak KM Limited
Notes to the group financial statements (continued)
For the year ended 31 March 2024
1
Accounting policies
(Continued)
- 19 -

At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.

1.11
Cash and cash equivalents

Cash and cash equivalents are basic financial assets and include cash in hand.

1.12
Financial instruments

The group has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.

 

Financial instruments are recognised in the group's statement of financial position when the group becomes party to the contractual provisions of the instrument.

 

Financial assets and liabilities are offset and the net amounts presented in the financial statements when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

Basic financial assets

Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.

Impairment of financial assets

Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.

 

Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.

 

If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.

Derecognition of financial assets

Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the group transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.

Classification of financial liabilities

Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the group after deducting all of its liabilities.

Broad Oak KM Limited
Notes to the group financial statements (continued)
For the year ended 31 March 2024
1
Accounting policies
(Continued)
- 20 -
Basic financial liabilities

Basic financial liabilities, including creditors, bank loans and loans from fellow group companies, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

 

Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

 

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

Derecognition of financial liabilities

Financial liabilities are derecognised when the group's contractual obligations expire or are discharged or cancelled.

1.13
Equity instruments

Equity instruments issued by the group are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the group.

1.14
Taxation

The tax expense represents the sum of the tax currently payable and deferred tax.

Current tax

The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the income statement because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The group’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.

Deferred tax

Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.

 

The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the income statement, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset if, and only if, there is a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.

Broad Oak KM Limited
Notes to the group financial statements (continued)
For the year ended 31 March 2024
1
Accounting policies
(Continued)
- 21 -
1.15
Employee benefits

The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.

 

The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.

1.16
Retirement benefits

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

1.17
Leases

Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leased asset are consumed.

2
Judgements and key sources of estimation uncertainty

In the application of the company’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

 

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

Broad Oak KM Limited
Notes to the group financial statements (continued)
For the year ended 31 March 2024
2
Judgements and key sources of estimation uncertainty
(Continued)
- 22 -
Key sources of estimation uncertainty

The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are as follows.

Valuation of Investment Properties

Investment properties are measured using the fair value model and as such requires significant estimation from the director. The valuation has been based on the director's knowledge of the portfolio of investment properties taking account of geographical locations and estimated rental values.

Revenue and Profit Recognition

Recognition of revenue and profit is based on estimates of the ultimate profitability of a contract which is arrived at by estimating the costs and value of work performed to date and to be performed in completing the contracts. Further detail is provided in the ''Construction contracts'' accounting policy.

Property and Installation Sales

Management review each installation job/contract ongoing at the year end in order to obtain an accurate valuation of the work completed to date and therefore any profits or losses on contract to recognise. Management recognise profits on contracts once the outcome can be measured with reasonable certainty. Management will review the level of work completed and the costs incurred on each individual contract at the year end and then use an estimate of the total costs to complete the contract in order to determine the stage of completion.

 

Any anticipated future losses are provided for in full. Uncertainties in the valuation of individual contracts relate to the actual value of recoverable on the contracts.

 

3
Turnover and other revenue
2024
2023
£
£
Turnover analysed by class of business
Property sales
124,000
520,337
Contracting work
47,558,856
26,380,355
47,682,856
26,900,692
2024
2023
£
£
Other revenue
Interest income
162,207
1,790
Broad Oak KM Limited
Notes to the group financial statements (continued)
For the year ended 31 March 2024
- 23 -
4
Operating profit
2024
2023
£
£
Operating profit for the year is stated after charging/(crediting):
Depreciation of owned tangible fixed assets
336,568
259,474
Profit on disposal of tangible fixed assets
-
(10,532)
Operating lease charges
40,992
89,162
5
Auditor's remuneration
2024
2023
Fees payable to the company's auditor and associates:
£
£
For audit services
Audit of the financial statements of the group and company
4,000
15,000
Audit of the financial statements of the company's subsidiaries
14,750
40,000
18,750
55,000
6
Employees

The average monthly number of persons (including directors) employed by the group and company during the year was:

Group
Company
2024
2023
2024
2023
Number
Number
Number
Number
Cost of sales
193
149
-
-
Administration
8
10
-
-
Directors
1
-
-
-
Total
202
159
-
0
-
0

Their aggregate remuneration comprised:

Group
Company
2024
2023
2024
2023
£
£
£
£
Wages and salaries
7,061,871
4,776,801
-
0
-
0
Social security costs
565,628
393,854
-
-
Pension costs
185,280
92,326
-
0
-
0
7,812,779
5,262,981
-
0
-
0
Broad Oak KM Limited
Notes to the group financial statements (continued)
For the year ended 31 March 2024
- 24 -
7
Interest receivable and similar income
2024
2023
£
£
Interest income
Interest on bank deposits
162,207
-
0
Other interest income
-
1,790
Total income
162,207
1,790
8
Interest payable and similar expenses
2024
2023
£
£
Interest on bank overdrafts and loans
6,417
21,301
Other interest
2,366
(4,520)
Total finance costs
8,783
16,781
9
Amounts written off investments
2024
2023
£
£
Changes in the fair value of investment properties
-
(122,246)
10
Taxation
2024
2023
£
£
Current tax
UK corporation tax on profits for the current period
2,578,257
964,136
Adjustments in respect of prior periods
6,361
-
0
Total current tax
2,584,618
964,136
Deferred tax
Origination and reversal of timing differences
137,059
53,347
Total tax charge
2,721,677
1,017,483
Broad Oak KM Limited
Notes to the group financial statements (continued)
For the year ended 31 March 2024
10
Taxation
(Continued)
- 25 -

The actual charge for the year can be reconciled to the expected charge for the year based on the profit or loss and the standard rate of tax as follows:

2024
2023
£
£
Profit before taxation
10,853,772
5,291,162
Expected tax charge based on the standard rate of corporation tax in the UK of 25.00% (2023: 19.00%)
2,713,443
1,005,321
Tax effect of expenses that are not deductible in determining taxable profit
5,641
3,032
Unutilised tax losses carried forward
375
-
0
Adjustments in respect of prior years
6,361
-
0
Depreciation on assets not qualifying for tax allowances
624
316
Over/under provision of DT
134
4,901
Over/under provision of DT in the prior year
(4,901)
9,392
Deferred tax calculated at increased rates
-
0
9,373
Enhanced capital allowances (130%)
-
(7,717)
Taxation over/under provided for
-
(7,135)
Taxation charge
2,721,677
1,017,483
11
Dividends
2024
2023
Recognised as distributions to equity holders:
£
£
Interim paid
77,000
215,000
Broad Oak KM Limited
Notes to the group financial statements (continued)
For the year ended 31 March 2024
- 26 -
12
Intangible fixed assets
Group
Goodwill
£
Cost
At 1 April 2023 and 31 March 2024
50,000
Amortisation and impairment
At 1 April 2023 and 31 March 2024
50,000
Carrying amount
At 31 March 2024
-
0
At 31 March 2023
-
0
The company had no intangible fixed assets at 31 March 2024 or 31 March 2023.
13
Tangible fixed assets
Group
Leasehold improvements
Plant and equipment
Fixtures and fittings
Motor vehicles
Total
£
£
£
£
£
Cost
At 1 April 2023
16,759
708,319
28,135
1,426,460
2,179,673
Additions
414,213
91,238
23,404
540,926
1,069,781
Disposals
-
0
(13,010)
-
0
(36,900)
(49,910)
At 31 March 2024
430,972
786,547
51,539
1,930,486
3,199,544
Depreciation and impairment
At 1 April 2023
16,759
496,156
19,799
655,769
1,188,483
Depreciation charged in the year
-
0
82,072
2,496
252,000
336,568
At 31 March 2024
16,759
578,228
22,295
907,769
1,525,051
Carrying amount
At 31 March 2024
414,213
208,319
29,244
1,022,717
1,674,493
At 31 March 2023
-
0
212,163
8,336
770,691
991,190
Broad Oak KM Limited
Notes to the group financial statements (continued)
For the year ended 31 March 2024
13
Tangible fixed assets
(Continued)
- 27 -
Company
Plant and equipment
Fixtures and fittings
Motor vehicles
Total
£
£
£
£
Cost
At 1 April 2023
438,556
10,000
1,255,258
1,703,814
Additions
91,238
23,404
540,926
655,568
Disposals
(13,010)
-
0
(36,900)
(49,910)
At 31 March 2024
516,784
33,404
1,759,284
2,309,472
Depreciation and impairment
At 1 April 2023
227,001
1,664
484,567
713,232
Depreciation charged in the year
81,981
2,496
252,000
336,477
At 31 March 2024
308,982
4,160
736,567
1,049,709
Carrying amount
At 31 March 2024
207,802
29,244
1,022,717
1,259,763
At 31 March 2023
211,555
8,336
770,691
990,582
14
Investment property
Group
Company
2024
2024
£
£
Fair value
At 1 April 2023
6,270,000
6,290,000
Additions through external acquisition
325,127
325,127
At 31 March 2024
6,595,127
6,615,127

Investment property comprises of £6,595,127. The fair value of the investment property has been determined by the directors on an open market value for existing use basis. The valuation has been based on directors' knowledge of the portfolio of investment properties taking account of the geographical locations and their estimated rental values.

 

The investment properties have not been valued by external professional valuers.

15
Fixed asset investments
Group
Company
2024
2023
2024
2023
Notes
£
£
£
£
Investments in subsidiaries
16
-
0
-
0
361
201
Broad Oak KM Limited
Notes to the group financial statements (continued)
For the year ended 31 March 2024
15
Fixed asset investments
(Continued)
- 28 -
Movements in fixed asset investments
Company
Shares in subsidiaries
£
Cost or valuation
At 1 April 2023
201
Additions
160
At 31 March 2024
361
Carrying amount
At 31 March 2024
361
At 31 March 2023
201
16
Subsidiaries

Details of the company's subsidiaries at 31 March 2024 are as follows:

Name of undertaking
Registered office
Class of
% Held
shares held
Direct
Broad Oak Properties Limited
Broad Oak Farm, Little Green Head, Kingsley Moor, Stoke on Trent,  Staffordshire, ST10 2EL
Ordinary
100.00
Broad Oak Properties Eco Limited
Broad Oak Farm, Little Green Head, Kingsley Moor, Stoke on Trent,  Staffordshire, ST10 2EL
Ordinary
100.00
Broad Oak Management Services Limited
Broad Oak Farm, Little Green Head, Kingsley Moor, Stoke on Trent,
Staffordshire, ST10 2EL
Ordinary
100.00
Broad Oak Commercial Services Limited
Broad Oak Farm, Little Green Head, Kingsley Moor, Stoke on Trent,  Staffordshire, ST10 2EL
Ordinary
80.00

Broad Oak Commercial Services Limited was incorporated on 20 February 2024 and did not commence trading during the financial year.

17
Stocks
Group
Company
2024
2023
2024
2023
£
£
£
£
Finished goods and goods for resale
1,034,205
1,158,408
-
0
-
0
Broad Oak KM Limited
Notes to the group financial statements (continued)
For the year ended 31 March 2024
- 29 -
18
Debtors
Group
Company
2024
2023
2024
2023
Amounts falling due within one year:
£
£
£
£
Trade debtors
4,812,737
5,252,842
-
0
-
0
Gross amounts owed by contract customers
1,369,880
178,838
-
0
-
0
Amounts owed by group undertakings
-
-
2,499,436
1,300,058
Other debtors
6,499,866
61,022
-
0
-
0
Prepayments and accrued income
2,210,373
4,430,753
67,159
770,492
14,892,856
9,923,455
2,566,595
2,070,550
Amounts falling due after more than one year:
Amounts owed by group undertakings
-
-
6,148,117
6,700,632
Total debtors
14,892,856
9,923,455
8,714,712
8,771,182
19
Creditors: amounts falling due within one year
Group
Company
2024
2023
2024
2023
Notes
£
£
£
£
Bank loans
21
-
0
10,051
-
0
10,051
Trade creditors
2,382,384
1,201,483
-
0
-
0
Amounts owed to group undertakings
-
0
-
0
160
-
0
Corporation tax payable
1,734,312
875,648
242,800
185,167
Other taxation and social security
1,946,604
285,936
69,273
66,193
Deferred income
23
433,295
-
0
-
0
-
0
Other creditors
1,418,838
751,586
1,032,974
552,166
Accruals and deferred income
261,734
192,382
25,700
5,500
8,177,167
3,317,086
1,370,907
819,077
20
Creditors: amounts falling due after more than one year
Group
Company
2024
2023
2024
2023
Notes
£
£
£
£
Bank loans and overdrafts
21
-
0
279,885
-
0
279,885
Broad Oak KM Limited
Notes to the group financial statements (continued)
For the year ended 31 March 2024
- 30 -
21
Loans and overdrafts
Group
Company
2024
2023
2024
2023
£
£
£
£
Bank loans
-
0
289,936
-
0
289,936
Payable within one year
-
0
10,051
-
0
10,051
Payable after one year
-
0
279,885
-
0
279,885

The bank loans are secured by way of mortgages and debentures over the investment properties held by the group along with fixed and floating charges against all company assets.

 

The terms of the bank loans are both capital and interest repayment loans. Interest rates on the loans are 2.49% per annum over base. The loans are due to mature in March 2039.

 

Since the year-end, the remaining loans have been repaid in full and all charges in relation to these loans satisfied.

22
Deferred taxation

The following are the major deferred tax liabilities and assets recognised by the group and company, and movements thereon:

Liabilities
Liabilities
2024
2023
Group
£
£
Accelerated capital allowances
349,359
212,300
Revaluations
729,047
729,047
1,078,406
941,347
Liabilities
Liabilities
2024
2023
Company
£
£
Accelerated capital allowances
261,163
212,300
Revaluations
733,047
733,047
994,210
945,347
Broad Oak KM Limited
Notes to the group financial statements (continued)
For the year ended 31 March 2024
22
Deferred taxation
(Continued)
- 31 -
Group
Company
2024
2024
Movements in the year:
£
£
Liability at 1 April 2023
941,347
945,347
Charge to profit or loss
137,059
48,863
Liability at 31 March 2024
1,078,406
994,210
23
Deferred income
Group
Company
2024
2023
2024
2023
£
£
£
£
Other deferred income
433,295
-
-
-
24
Retirement benefit schemes
2024
2023
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
185,280
92,326

A defined contribution pension scheme is operated for all qualifying employees. The assets of the scheme are held separately from those of the group in an independently administered fund. Contributions totalling £13,965 (2023 - £8,388) were payable to the fund at the balance sheet date and are included in creditors.

25
Share capital
Group and company
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
300
300
300
300

The ordinary shares are non-redeemable voting shares which carry a right to receive dividends. There is no right to participate in a distribution of capital except on winding up.

Broad Oak KM Limited
Notes to the group financial statements (continued)
For the year ended 31 March 2024
- 32 -
26
Profit and loss reserves

Profit and loss reserves represents the accumulated profits less accumulated losses and distributions up to the reporting date. This is a distributable reserve.

 

Included within retained earnings of the group at 31 March 2024 is £2,637,748 (2023 - £2,637,748) of non-distributable reserves.

 

Included within retained earnings of the company at 31 March 2024 is £2,637,748 (2023 - £2,637,748) of non-distributable reserves.

27
Operating lease commitments
Lessee

At the reporting end date the group had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:

Group
Company
2024
2023
2024
2023
£
£
£
£
Within one year
29,761
23,958
-
-
Between two and five years
32,453
35,705
-
-
62,214
59,663
-
-

Total lease payments recognised as an expense during the period amounted to £40,992 (2023 - £18,691).

28
Events after the reporting date

On 6 April 2024, the group purchased the trading assets of Broad Oak Commercial LLP for £5m.

Broad Oak KM Limited
Notes to the group financial statements (continued)
For the year ended 31 March 2024
- 33 -
29
Related party transactions

Included within other creditors is a balance due to shareholders. At 31 March 2024 the amount due to the shareholders was £64,281 (2023 Due to the shareholders - £132,375).

 

During the year amounts were advanced to the directors of £523,459 (2023 - £75,494) and amounts were repaid by the directors of £1,072,174 (2023 - £292,989). Interest was charged on the amounts advanced of £753 (2023 - £1,790) at an interest rate of 2.25%. At the year end an amount of £948,063 (2023 - amounts due to the directors of the parent company of £400,101) was due to the directors of the parent company.

 

The amounts owed to shareholders are directors are unsecured and repayable on demand.

 

Dividends paid to directors during the year amounted to £Nil (2023 - £110,000).

 

Wage costs of £25,000 (2023 - £25,000) were recharged from an entity under common control. There is a year end balance with the entity of £Nil (2023 - £Nil).

 

During the year the group paid a total of £243,526 (2023 - £129,641) to key management personnel.

 

They also paid a total of £43,834 (2023 - £44,383) to close family members of key management personnel.

30
Cash generated from group operations
2024
2023
£
£
Profit for the year after tax
8,132,095
4,273,679
Adjustments for:
Taxation charged
2,721,677
1,017,483
Finance costs
8,783
16,781
Investment income
(162,207)
(1,790)
Gain on disposal of tangible fixed assets
-
(10,532)
Fair value (gain)/loss on investment properties
-
0
122,246
Depreciation and impairment of tangible fixed assets
336,568
259,474
Movements in working capital:
Decrease in stocks
124,203
101,642
Increase in debtors
(4,969,401)
(4,359,317)
Increase in creditors
3,578,173
923,202
Increase in deferred income
433,295
-
Cash generated from operations
10,203,186
2,342,868
Broad Oak KM Limited
Notes to the group financial statements (continued)
For the year ended 31 March 2024
- 34 -
31
Analysis of changes in net funds - group
1 April 2023
Cash flows
31 March 2024
£
£
£
Cash at bank and in hand
3,269,661
6,918,722
10,188,383
Borrowings excluding overdrafts
(289,936)
289,936
-
2,979,725
7,208,658
10,188,383
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