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K M Elite Products Ltd

Annual Report and Unaudited Financial Statements

for the Year Ended 31 May 2024

Registration number: 04763484

 

K M Elite Products Ltd

Contents

Statement of financial position

1 to 2

Notes to the Unaudited Financial Statements

3 to 9

 

K M Elite Products Ltd

(Registration number: 04763484)
Statement of financial position as at 31 May 2024

Note

2024
£

2023
£

Fixed assets

 

Intangible assets

4

-

500

Tangible assets

5

180,073

213,785

Other financial assets

6

250

31,700

 

180,323

245,985

Current assets

 

Stocks

7

855,730

1,071,082

Debtors

8

954,357

545,782

Cash at bank and in hand

 

681,367

625,674

 

2,491,454

2,242,538

Creditors: Amounts falling due within one year

9

(327,679)

(263,205)

Net current assets

 

2,163,775

1,979,333

Total assets less current liabilities

 

2,344,098

2,225,318

Creditors: Amounts falling due after more than one year

9

(55,771)

(64,456)

Provisions for liabilities

(25,256)

(23,415)

Net assets

 

2,263,071

2,137,447

Capital and reserves

 

Called up share capital

10

100

100

Retained earnings

2,262,971

2,137,347

Shareholders' funds

 

2,263,071

2,137,447

 

K M Elite Products Ltd

(Registration number: 04763484)
Statement of financial position as at 31 May 2024

For the financial year ending 31 May 2024 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.

Director's responsibilities:

The members have not required the company to obtain an audit of its accounts for the year in question in accordance with section 476; and

The director acknowledges his responsibilities for complying with the requirements of the Act with respect to accounting records and the preparation of accounts.

These financial statements have been prepared in accordance with the special provisions relating to companies subject to the small companies regime within Part 15 of the Companies Act 2006.

These financial statements have been delivered in accordance with the provisions applicable to companies subject to the small companies regime. As permitted by section 444 (5A) of the Companies Act 2006, the director has not delivered to the registrar a copy of the Income statement.

Approved and authorised by the director on 27 August 2024
 

.........................................
Mr K Middleton
Director

 

K M Elite Products Ltd

Notes to the Unaudited Financial Statements for the Year Ended 31 May 2024

1

General information

The company is a private company limited by share capital, incorporated in England and Wales.

The address of its registered office is:
Solo House
The Courtyard
London Road
Horsham
West Sussex
RH12 1AT

These financial statements were authorised for issue by the director on 27 August 2024.

2

Accounting policies

Summary of significant accounting policies and key accounting estimates

The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.

Statement of compliance

These financial statements have been prepared in accordance with Financial Reporting Standard 102 Section 1A smaller entities - 'The Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland' and the Companies Act 2006 (as applicable to companies subject to the small companies' regime).

Basis of preparation

These financial statements have been prepared using the historical cost convention except that as disclosed in the accounting policies certain items are shown at fair value.

Going concern

The financial statements have been prepared on a going concern basis.

Revenue recognition

Turnover comprises the fair value of the consideration received or receivable for the sale of goods in the ordinary course of the company’s activities. Turnover is shown net of sales/value added tax, returns, rebates and discounts.

The company recognises revenue when:
The amount of revenue can be reliably measured;
it is probable that future economic benefits will flow to the entity;
and specific criteria have been met for each of the company's activities.

Foreign currency transactions and balances

Transactions in foreign currencies are initially recorded at the functional currency rate prevailing at the date of the transaction. Monetary assets and liabilities denominated in foreign currencies are retranslated into the respective functional currency of the entity at the rates prevailing on the reporting period date. Non-monetary items carried at fair value that are denominated in foreign currencies are retranslated at the rate on the date when the fair value is re-measured.

Non-monetary items measured in terms of historical cost in a foreign currency are not retranslated.

 

K M Elite Products Ltd

Notes to the Unaudited Financial Statements for the Year Ended 31 May 2024

Tax

The tax expense for the period comprises current and deferred tax. Tax is recognised in profit or loss, except that a change attributable to an item of income or expense recognised as other comprehensive income is also recognised directly in other comprehensive income.

The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the reporting date in the countries where the company operates and generates taxable income.

Deferred tax is recognised in respect of all timing differences between taxable profits and profits reported in the financial statements.

Unrelieved tax losses and other deferred tax assets are 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 the tax rates and laws that have been enacted or substantively enacted by the reporting date and that are expected to apply to the reversal of the timing difference.

Tangible assets

Tangible assets are stated in the statement of financial position at cost, less any subsequent accumulated depreciation and subsequent accumulated impairment losses.

The cost of tangible assets includes directly attributable incremental costs incurred in their acquisition and installation.

Depreciation

Depreciation is charged so as to write off the cost of assets, other than land and properties under construction over their estimated useful lives, as follows:

Asset class

Depreciation method and rate

Plant and machinery

25% reducing balance

Equipment

25% reducing balance

Motor vehicles

25% reducing balance

Leasehold improvements

5% straight line

Goodwill

Goodwill arising on the acquisition of an entity represents the excess of the cost of acquisition over the company’s interest in the net fair value of the identifiable assets, liabilities and contingent liabilities of the entity recognised at the date of acquisition. Goodwill is initially recognised as an asset at cost and is subsequently measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is held in the currency of the acquired entity and revalued to the closing rate at each reporting period date. Goodwill is amortised over its useful life, which shall not exceed ten years if a reliable estimate of the useful life cannot be made.

Intangible assets

Separately acquired trademarks and licences are shown at historical cost.

Trademarks, licences (including software) and customer-related intangible assets acquired in a business combination are recognised at fair value at the acquisition date.

Trademarks, licences and customer-related intangible assets have a finite useful life and are carried at cost less accumulated amortisation and any accumulated impairment losses.

Amortisation

Amortisation is provided on intangible assets so as to write off the cost, less any estimated residual value, over their useful life as follows:

 

K M Elite Products Ltd

Notes to the Unaudited Financial Statements for the Year Ended 31 May 2024

Asset class

Amortisation method and rate

Trademarks, patents and licenses

20% straight line

Cash and cash equivalents

Cash and cash equivalents comprise cash on hand and call deposits, and other short-term highly liquid investments that are readily convertible to a known amount of cash and are subject to an insignificant risk of change in value.

Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost is determined using the first-in, first-out (FIFO) method.

The cost of finished goods and work in progress comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the inventories to their present location and condition. At each reporting date, stocks are assessed for impairment. If stocks are impaired, the carrying amount is reduced to its selling price less costs to complete and sell; the impairment loss is recognised immediately in profit or loss.

Borrowings

Interest-bearing borrowings are initially recorded at fair value, net of transaction costs. Interest-bearing borrowings are subsequently carried at amortised cost, with the difference between the proceeds, net of transaction costs, and the amount due on redemption being recognised as a charge to the income statement over the period of the relevant borrowing.

Interest expense is recognised on the basis of the effective interest method and is included in interest payable and similar charges.

Borrowings are classified as current liabilities unless the company has an unconditional right to defer settlement of the liability for at least twelve months after the reporting date.

Leases

Leases in which substantially all the risks and rewards of ownership are retained by the lessor are classified as operating leases. Payments made under operating leases are charged to profit or loss on a straight-line basis over the period of the lease.

Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessee.

Assets held under finance leases are recognised at the lower of their fair value at inception of the lease and the present value of the minimum lease payments. These assets are depreciated on a straight-line basis over the shorter of the useful life of the asset and the lease term. The corresponding liability to the lessor is included in the statement of financial position as a finance lease obligation.

Lease payments are apportioned between finance costs in the income statement and reduction of the lease obligation so as to achieve a constant periodic rate of interest on the remaining balance of the liability.

Dividends

Dividend distribution to the company’s shareholders is recognised as a liability in the financial statements in the reporting period in which the dividends are declared.

 

K M Elite Products Ltd

Notes to the Unaudited Financial Statements for the Year Ended 31 May 2024

Defined contribution pension obligation

A defined contribution plan is a pension plan under which fixed contributions are paid into a pension fund and the company has no legal or constructive obligation to pay further contributions even if the fund does not hold sufficient assets to pay all employees the benefits relating to employee service in the current and prior periods.

Contributions to defined contribution plans are recognised as employee benefit expense when they are due. If contribution payments exceed the contribution due for service, the excess is recognised as a prepayment.

3

Staff numbers

The average number of persons employed by the company (including the director) during the year, was 13 (2023 - 13).

4

Intangible assets

Goodwill
 £

Trademarks, patents and licenses
 £

Total
£

Cost or valuation

At 1 June 2023

100,000

22,500

122,500

At 31 May 2024

100,000

22,500

122,500

Amortisation

At 1 June 2023

100,000

22,000

122,000

Amortisation charge

-

500

500

At 31 May 2024

100,000

22,500

122,500

Carrying amount

At 31 May 2024

-

-

-

At 31 May 2023

-

500

500

 

K M Elite Products Ltd

Notes to the Unaudited Financial Statements for the Year Ended 31 May 2024

5

Tangible assets

Leasehold improvements
£

Furniture, fittings and equipment
 £

Motor vehicles
 £

Total
£

Cost or valuation

At 1 June 2023

344,614

78,231

131,329

554,174

Additions

-

1,352

-

1,352

At 31 May 2024

344,614

79,583

131,329

555,526

Depreciation

At 1 June 2023

242,820

62,221

35,348

340,389

Charge for the year

6,729

4,340

23,995

35,064

At 31 May 2024

249,549

66,561

59,343

375,453

Carrying amount

At 31 May 2024

95,065

13,022

71,986

180,073

At 31 May 2023

101,794

16,010

95,981

213,785

6

Other financial assets (current and non-current)

Financial assets at cost less impairment
£

Total
£

Non-current financial assets

Cost or valuation

At 1 June 2023

31,700

31,700

Revaluations

(5,250)

(5,250)

Disposals

(26,200)

(26,200)

At 31 May 2024

250

250

Impairment

Carrying amount

At 31 May 2024

250

250

7

Stocks

2024
£

2023
£

Finished goods and goods for resale

855,730

1,071,082

 

K M Elite Products Ltd

Notes to the Unaudited Financial Statements for the Year Ended 31 May 2024

8

Debtors

Current

Note

2024
£

2023
£

Trade debtors

 

456,026

458,873

Amounts owed by related parties

488,500

83,000

Prepayments

 

9,050

2,052

Other debtors

 

781

1,857

   

954,357

545,782

9

Creditors

Creditors: amounts falling due within one year

Note

2024
£

2023
£

Due within one year

 

Loans and borrowings

11

8,685

9,363

Trade creditors

 

165,393

160,280

Taxation and social security

 

140,213

80,067

Accruals and deferred income

 

11,500

11,500

Other creditors

 

1,888

1,995

 

327,679

263,205

Creditors: amounts falling due after more than one year

Note

2024
£

2023
£

Due after one year

 

Loans and borrowings

11

55,771

64,456

 

K M Elite Products Ltd

Notes to the Unaudited Financial Statements for the Year Ended 31 May 2024

10

Share capital

Allotted, called up and fully paid shares

2024

2023

No.

£

No.

£

Ordinary of £1 each

100

100

100

100

       

11

Loans and borrowings

Non-current loans and borrowings

2024
£

2023
£

Hire purchase contracts

55,771

64,456

Current loans and borrowings

2024
£

2023
£

Bank overdrafts

-

2

Hire purchase contracts

8,685

9,361

8,685

9,363