Company registration number 07380589 (England and Wales)
KW VENTURES LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
KW VENTURES LIMITED
CONTENTS
Page
Company information
1
Strategic report
2 - 3
Director's report
4
Director's responsibilities statement
5
Independent auditor's report
6 - 9
Group statement of comprehensive income
10
Group balance sheet
11
Company balance sheet
12
Group statement of changes in equity
13
Company statement of changes in equity
14
Group statement of cash flows
15
Notes to the financial statements
16 - 33
KW VENTURES LIMITED
COMPANY INFORMATION
- 1 -
Director
Mr K Witheford
Secretary
Mrs J E Witheford
Company number
07380589
Registered office
37 Commercial Road
Poole
Dorset
BH14 0HU
Auditor
Azets Audit Services
37 Commercial Road
Poole
Dorset
BH14 0HU
KW VENTURES LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 2 -

The director presents the strategic report for the year ended 31 December 2023.

Introduction
The group started as the UK and Ireland distributor for German based tray sealing machines built by Sealpac GmbH in 1996, building a strong partnership that saw the development and introduction of Traysealing machines into the UK packing industry. Soon after that we delivered the first line solution project, working closely with a customer to bring the concept to life including tray handling, weighing, depositing and sealing in a single, seamless line.
Since then, by forming strategic partnerships with other suppliers and manufacturers, Sealpac are now Sealpac UK & Partners. These partnerships have enabled the group to expand our offering, utilising the very best technologies available to ensure that we can deliver the most complex, flexible and efficient line solutions available. Our ever-improving product range covers processing, weighing, depositing, packaging machine options, quality control and case packing – meaning we can now cover every aspect of the packaging line.
From the beginning Sealpac have remained focused on 3 core strengths which are at the heart of the business:
•   Highly Experienced and knowledgeable people
•   The very best range of quality machinery
•   Class-leading after sales, support and training
Today the project team manages anything from a simple standalone machine up to a full line. The group take complete ownership of the project and work hand in hand with the customers to deliver tailored, sophisticated fully-automated line solutions.
This is all backed up by an after-sales team who can offer service & maintenance packages, along with training and advice on how to maximise efficiencies. This is all backed up by a dedicated spare parts service team that aim to keep downtime to an absolute minimum for our customers.
Review of the business

Turnover continues to increase due to an increase in customer projects and servicing contracts. In the current year the revenue income has risen from £10.4 million to £13.3 million which is an increase of 27.9%.

 

The gross profit percentage has fallen by 6.1% .This is due to the lower level of profit achieved on a higher mix of project and sales for partner equipment.

 

During the year the company invested in the property that operates as the head office for the business. Significant investments were made to install new demonstration facilities within the property and to install solar panels to reduce the company’s carbon footprint with the added benefit of reducing ongoing energy costs.

Principal risks and uncertainties

Key risks such as credit risk – the risk of payment default by customers has been mitigated by requesting staged payments for all capital equipment, actively managing all customer debts regularly and being in constant contact with customers to resolve account queries.

 

Good relationships are maintained with bankers and any other potential funders to ensure that if any funding was required in the future, adequate facilities could be sought after to support the needs of the business.

 

Any risks in price with the movement in supplier prices are also mitigated by receiving annual prices from suppliers and setting these for the year. Exchange rate fluctuations are also monitored regularly to avoid any unexpected losses.

 

KW VENTURES LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 3 -
Key performance indicators

The increase in turnover is one of the key performance indicators but the improved net asset position (an increase of £578k) indicates that this has not been at the expense of working capital.

 

Several large projects were completed during the year which have contributed to the increase in turnover.

Future Developments

Current order pipelines are looking strong in all areas and are now being driven by planned marketing campaigns. This will ensure the company continues its upward trend in sales and margins. The pipeline includes existing and potentially new customers which will enable the whole portfolio to be presented to them, rather than individual machinery.

On behalf of the board

Mr K Witheford
Director
23 September 2024
KW VENTURES LIMITED
DIRECTOR'S REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 4 -

The director presents his annual report and financial statements for the year ended 31 December 2023.

Principal activities

The principal activity of the company and group is the supply of packaging equipment to the food industry, that of a boat agent and a holding company.

Results and dividends

The profit for the year, after taxation, amounted to £1,143,306 (2022: £1,169,427).

Ordinary dividends were paid amounting to £557,392. The director does not recommend payment of a further dividend.

Director

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

Mr K Witheford
Auditor

Azets Audit Services were appointed as auditor to the group and in accordance with section 485 of the Companies Act 2006, a resolution proposing that they be re-appointed will be put at a General Meeting.

Directors’ confirmations

In the case of each director in office at the date the directors’ report is approved:

On behalf of the board
Mr K Witheford
Director
23 September 2024
KW VENTURES LIMITED
DIRECTOR'S RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 5 -

Statement of directors’ responsibilities in respect of the financial statements

The directors are responsible for preparing the Annual Report and the financial statements in accordance with applicable law and regulation.

Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have prepared the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards, comprising FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland”, and applicable law).

Under company law, 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 the financial statements, the directors are required to:

The directors are responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

The directors are also 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.

 

KW VENTURES LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF KW VENTURES LIMITED
- 6 -
Opinion

We have audited the financial statements of KW Ventures Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 December 2023 which comprise the group statement of comprehensive income, the group balance sheet, the company balance sheet, 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 director's 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 director 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 director is 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.

Opinions on other matters prescribed by the Companies Act 2006

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

KW VENTURES LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF KW VENTURES LIMITED
- 7 -
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 director's 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 director

As explained more fully in the director's responsibilities statement, the director is 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 director determines 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 director is 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 director either intends to liquidate the parent company or to cease operations, or has 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.

A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.

KW VENTURES LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF KW VENTURES LIMITED
- 8 -

Extent to which the audit was considered capable of detecting irregularities, including fraud

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above and on the Financial Reporting Council’s website, to detect material misstatements in respect of irregularities, including fraud.

 

We obtain and update our understanding of the entity, its activities, its control environment, and likely future developments, including in relation to the legal and regulatory framework applicable and how the entity is complying with that framework.  Based on this understanding, we identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion.  This includes consideration of the risk of acts by the entity that were contrary to applicable laws and regulations, including fraud.

 

In response to the risk of irregularities and non-compliance with laws and regulations, including fraud, we designed procedures which included:

 

 

Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation.  This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance.  The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.

 

Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was as follows:

 

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

Comparative Figures
The comparative figures have not been audited
KW VENTURES LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF KW VENTURES LIMITED
- 9 -

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 Andrew Singleton (Senior Statutory Auditor)
For and on behalf of Azets Audit Services
23 September 2024
Statutory Auditor
37 Commercial Road
Poole
Dorset
BH14 0HU
KW VENTURES LIMITED
GROUP STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2023
- 10 -
2023
2022
Notes
£
£
Turnover
3
13,304,070
10,397,921
Cost of sales
(8,653,899)
(6,127,497)
Gross profit
4,650,171
4,270,424
Administrative expenses
(3,312,906)
(2,810,852)
Other operating income
29,045
18,507
Operating profit
4
1,366,310
1,478,079
Interest receivable and similar income
96
4,206
Interest payable and similar expenses
8
(29,434)
(22,758)
Profit before taxation
1,336,972
1,459,527
Tax on profit
9
(191,496)
(301,024)
Profit for the financial year
1,145,476
1,158,503
Other comprehensive income
Currency translation (loss)/gain taken to retained earnings
(2,170)
10,924
Total comprehensive income for the year
1,143,306
1,169,427
Profit for the financial year is all attributable to the owners of the parent company.

The notes on pages 16 to 33 form part of these financial statements.

KW VENTURES LIMITED
GROUP BALANCE SHEET
AS AT 31 DECEMBER 2023
31 December 2023
- 11 -
2023
2022
Notes
£
£
£
£
Fixed assets
Tangible assets
12
526,675
204,054
Investments
13
285,864
285,864
812,539
489,918
Current assets
Stocks
16
878,890
1,597,552
Debtors
17
2,302,814
1,766,438
Cash at bank and in hand
4,083,066
1,601,254
7,264,770
4,965,244
Creditors: amounts falling due within one year
18
(4,879,668)
(2,835,100)
Net current assets
2,385,102
2,130,144
Total assets less current liabilities
3,197,641
2,620,062
Creditors: amounts falling due after more than one year
19
(98,066)
(120,904)
Provisions for liabilities
Deferred tax liability
23
47,170
32,667
(47,170)
(32,667)
Net assets
3,052,405
2,466,491
Capital and reserves
Called up share capital
25
200
200
Profit and loss reserves
3,052,205
2,466,291
Total equity
3,052,405
2,466,491
The financial statements were approved by the board of directors and authorised for issue on 23 September 2024 and are signed on its behalf by:
23 September 2024
Mr K Witheford
Director
Company registration number 07380589 (England and Wales)
KW VENTURES LIMITED
COMPANY BALANCE SHEET
AS AT 31 DECEMBER 2023
31 December 2023
- 12 -
2023
2022
Notes
£
£
£
£
Fixed assets
Investments
13
580,520
590,520
Current assets
Debtors
17
105
204
Cash at bank and in hand
74,519
75,592
74,624
75,796
Creditors: amounts falling due within one year
18
(654,628)
(658,128)
Net current liabilities
(580,004)
(582,332)
Net assets
516
8,188
Capital and reserves
Called up share capital
25
200
200
Profit and loss reserves
316
7,988
Total equity
516
8,188

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 £549,720 (2022 - £480,820 profit).

For the financial year ended 31 December 2023 the company was entitled to exemption from audit under section 477 of the Companies Act 2006.

The director acknowledges his responsibilities for complying with the requirements of the Companies Act 2006 with respect to accounting records and the preparation of financial statements.

The members have not required the company to obtain an audit of its financial statements for the year in question in accordance with section 476.

The financial statements were approved by the board of directors and authorised for issue on 23 September 2024 and are signed on its behalf by:
23 September 2024
Mr K Witheford
Director
Company registration number 07380589 (England and Wales)
KW VENTURES LIMITED
GROUP STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2023
- 13 -
Share capital
Profit and loss reserves
Total
Notes
£
£
£
Balance at 1 January 2022
200
1,778,856
1,779,056
Year ended 31 December 2022:
Profit for the year
-
1,158,503
1,158,503
Other comprehensive income:
Currency translation differences
-
10,924
10,924
Total comprehensive income
-
1,169,427
1,169,427
Dividends
10
-
(481,992)
(481,992)
Balance at 31 December 2022
200
2,466,291
2,466,491
Year ended 31 December 2023:
Profit for the year
-
1,145,476
1,145,476
Other comprehensive income:
Currency translation differences
-
(2,170)
(2,170)
Total comprehensive income
-
1,143,306
1,143,306
Dividends
10
-
(557,392)
(557,392)
Balance at 31 December 2023
200
3,052,205
3,052,405
KW VENTURES LIMITED
COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2023
- 14 -
Share capital
Profit and loss reserves
Total
Notes
£
£
£
Balance at 1 January 2022
200
9,160
9,360
Year ended 31 December 2022:
Profit and total comprehensive income for the year
-
480,820
480,820
Dividends
10
-
(481,992)
(481,992)
Balance at 31 December 2022
200
7,988
8,188
Year ended 31 December 2023:
Profit and total comprehensive income
-
549,720
549,720
Dividends
10
-
(557,392)
(557,392)
Balance at 31 December 2023
200
316
516
KW VENTURES LIMITED
GROUP STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2023
- 15 -
2023
2022
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from/(absorbed by) operations
29
3,794,138
(1,478,546)
Interest paid
(29,434)
(22,758)
Income taxes paid
(247,167)
(155,721)
Net cash inflow/(outflow) from operating activities
3,517,537
(1,657,025)
Investing activities
Purchase of tangible fixed assets
(399,164)
(196,133)
Interest received
96
4,206
Net cash used in investing activities
(399,068)
(191,927)
Financing activities
Proceeds from borrowings
-
139,000
Repayment of borrowings
(64,249)
(54,825)
Repayment of bank loans
(11,716)
(8,981)
Payment of finance leases obligations
(3,300)
-
Dividends paid to equity shareholders
(557,392)
(481,992)
Net cash used in financing activities
(636,657)
(406,798)
Net increase/(decrease) in cash and cash equivalents
2,481,812
(2,255,750)
Cash and cash equivalents at beginning of year
1,601,254
3,857,004
Cash and cash equivalents at end of year
4,083,066
1,601,254
KW VENTURES LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
- 16 -
1
Accounting policies
Company information

KW Ventures Limited (“the company”) is a private limited company domiciled and incorporated in England and Wales. The registered office is 37 Commercial Road, Poole, Dorset, BH14 0HU. The trading address of the group is Concept House, 81 Sopers Lane, Poole, Dorset, BH17 7EN.

 

The group consists of KW Ventures 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 freehold properties and to include investment properties and certain financial instruments at fair value. The principal accounting policies adopted are set out below.

1.2
Business combinations

In the parent company financial statements, the cost of a business combination is the fair value at the acquisition date of the assets given, equity instruments issued and liabilities incurred or assumed, plus costs directly attributable to the business combination. The excess of the cost of a business combination over the fair value of the identifiable assets, liabilities and contingent liabilities acquired is recognised as goodwill. The cost of the combination includes the estimated amount of contingent consideration that is probable and can be measured reliably, and is adjusted for changes in contingent consideration after the acquisition date. Provisional fair values recognised for business combinations in previous periods are adjusted retrospectively for final fair values determined in the 12 months following the acquisition date. Investments in subsidiaries, joint ventures and associates are accounted for at cost less impairment.

 

Deferred tax is recognised on differences between the value of assets (other than goodwill) and liabilities recognised in a business combination accounted for using the purchase method and the amounts that can be deducted or assessed for tax, considering the manner in which the carrying amount of the asset or liability is expected to be recovered or settled. The deferred tax recognised is adjusted against goodwill or negative goodwill.

1.3
Basis of consolidation

The consolidated group financial statements consist of the financial statements of the parent company KW Ventures 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 December 2023. 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.

 

KW VENTURES LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 17 -

 

1.4
Going concern

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

1.5
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.

Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer (usually on dispatch of the goods), the amount of revenue can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the entity and the costs incurred or to be incurred in respect of the transaction can be measured reliably.

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 by comparing costs incurred, mainly in relation to contractual hourly staff rates and materials, as a proportion of total costs. Where the outcome cannot be estimated reliably, revenue is recognised only to the extent of the expenses recognised that it is probable will be recovered.

1.6
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.

 

For the purposes of impairment testing, goodwill is allocated to the cash-generating units expected to benefit from the acquisition. Cash-generating units to which goodwill has been allocated are tested for impairment at least annually, or more frequently when there is an indication that the unit may be impaired. If the recoverable amount of the cash-generating unit is less than the carrying amount of the unit, the impairment loss is allocated first to reduce the carrying amount of any goodwill allocated to the unit and then to the other assets of the unit pro-rata on the basis of the carrying amount of each asset in the unit.

1.7
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
33% straight line
Plant and equipment
33%, 25%, 20% straight line
Fixtures and fittings
33% straight line
Motor vehicles
25% straight line
KW VENTURES LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 18 -

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 profit and loss account.

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, associates and jointly controlled entities 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 stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition.

 

Stocks held for distribution at no or nominal consideration are measured at the lower of cost and replacement cost, adjusted where applicable for any loss of service potential.

KW VENTURES LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
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, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

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 balance sheet 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.

Other financial assets

Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.

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.

KW VENTURES LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 20 -
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.

Basic financial liabilities

Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, 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.

Other financial liabilities

Derivatives, including interest rate swaps and forward foreign exchange contracts, are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in profit or loss in finance costs or finance income as appropriate, unless hedge accounting is applied and the hedge is a cash flow hedge.

 

Debt instruments that do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured at fair value through profit or loss. Debt instruments may be designated as being measured at fair value through profit or loss to eliminate or reduce an accounting mismatch or if the instruments are measured and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy.

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 profit and loss account 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.

KW VENTURES LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 21 -
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 profit and loss account, 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.

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.

 

Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

1.16
Retirement benefits

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

1.17
Leases

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

 

Assets held under finance leases are recognised as assets at the lower of the assets fair value at the date of inception and the present value of the minimum lease payments. The related liability is included in the balance sheet as a finance lease obligation. Lease payments are treated as consisting of capital and interest elements. The interest is charged to profit or loss so as to produce a constant periodic rate of interest on the remaining balance of the liability.

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.

Rental income from operating leases is recognised on a straight line basis over the term of the relevant lease. Initial direct costs incurred in negotiating and arranging an operating lease are added to the carrying amount of the leased asset and recognised on a straight line basis over the lease term.

1.18
Foreign exchange

Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation in the period are included in profit or loss.

KW VENTURES LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 22 -
2
Judgements and key sources of estimation uncertainty

In the application of the group’s accounting policies, the director is 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.

 

Stock provision

An element of the company's stock slow moving, as a result it is necessary to consider the recoverability of the cost of inventory and the associated provisioning required. When calculating the inventory provision, management considers the nature and condition of the inventory, as well as applying assumptions around anticipated ability to sell finished goods. Stock is hard wearing and can be keep for long periods of time. Within the financial statements the company has made a provision of £219,397 (2022: £112,209).

 

Stock valuation method

To value its stock at the lower of cost and net realisable value the company uses the average value of cost (AVCO) method. This determines the value of ending inventory and cost of sales on the basis of average cost of units available for sale.

 

Revenue

Project revenue being the largest stream of income is recognised at each stage of completion where it is released from deferred income. Spares revenue is recognised on delivery and services revenue also upon delivery.

 

3
Turnover and other revenue
2023
2022
£
£
Turnover analysed by class of business
Machine sales
9,530,640
6,991,323
Spare parts sales
2,120,380
2,091,240
Contract service income
1,653,050
1,315,358
13,304,070
10,397,921
2023
2022
£
£
Turnover analysed by geographical market
United Kingdom
13,304,070
10,393,731
Europe
-
4,190
13,304,070
10,397,921
KW VENTURES LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
3
Turnover and other revenue
(Continued)
- 23 -
2023
2022
£
£
Other revenue
Interest income
96
4,206
Rental income
29,045
18,507
4
Operating profit
2023
2022
£
£
Operating profit for the year is stated after charging:
Exchange losses
78,365
6,830
Depreciation of owned tangible fixed assets
140,347
66,333
Depreciation of tangible fixed assets held under finance leases
2,475
-
Cost of stocks recognised as an expense
8,575,575
6,120,561
Operating lease charges
327,248
269,088
5
Auditor's remuneration
2023
2022
Fees payable to the company's auditor and associates:
£
£
For audit services
Audit of the financial statements of the group and company
2,000
-
Audit of the financial statements of the company's subsidiaries
14,250
13,500
16,250
13,500
For other services
All other non-audit services
4,750
3,500
6
Employees

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

Group
Company
2023
2022
2023
2022
Number
Number
Number
Number
Directors
2
2
1
1
Administration
2
2
-
-
Spares and Servicing
17
17
-
-
Sales
9
9
-
-
Total
30
30
1
1
KW VENTURES LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
6
Employees
(Continued)
- 24 -

Their aggregate remuneration comprised:

Group
Company
2023
2022
2023
2022
£
£
£
£
Wages and salaries
1,386,924
1,206,114
-
0
-
0
Social security costs
172,295
157,553
-
-
Pension costs
119,082
112,014
-
0
-
0
1,678,301
1,475,681
-
0
-
0
7
Director's remuneration
The directors do not receive remuneration from KW Ventures Limited as a standalone company, instead the directors have been remunerated by companies within the group. Total directors' remuneration has been detailed below:
2023
2022
£
£
Remuneration for qualifying services
24,000
24,000
8
Interest payable and similar expenses
2023
2022
£
£
Interest on financial liabilities measured at amortised cost:
Interest on bank overdrafts and loans
14,491
14,984
Other interest on financial liabilities
7,987
7,774
22,478
22,758
Other finance costs:
Other interest
6,956
-
Total finance costs
29,434
22,758
9
Taxation
2023
2022
£
£
Current tax
UK corporation tax on profits for the current period
321,484
270,586
Adjustments in respect of prior periods
(144,491)
-
0
Total current tax
176,993
270,586
KW VENTURES LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
9
Taxation
2023
2022
£
£
(Continued)
- 25 -
Deferred tax
Origination and reversal of timing differences
14,503
30,438
Total tax charge
191,496
301,024

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:

2023
2022
£
£
Profit before taxation
1,336,972
1,459,527
Expected tax charge based on the standard rate of corporation tax in the UK of 23.50% (2022: 19.00%)
314,188
277,310
Tax effect of expenses that are not deductible in determining taxable profit
21,296
19,994
Group relief
(1,071)
(454)
Permanent capital allowances in excess of depreciation
(12,929)
(26,264)
Research and development tax credit
(144,491)
-
0
Deferred tax
14,503
30,438
Taxation charge
191,496
301,024
10
Dividends
2023
2022
Recognised as distributions to equity holders:
£
£
Final paid
557,392
481,992
KW VENTURES LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 26 -
11
Intangible fixed assets
Group
Goodwill
Negative goodwill
Total
£
£
£
Cost
At 1 January 2023 and 31 December 2023
382,014
(29,583)
352,431
Amortisation and impairment
At 1 January 2023 and 31 December 2023
382,014
(29,583)
352,431
Carrying amount
At 31 December 2023
-
0
-
0
-
0
At 31 December 2022
-
0
-
0
-
0
The company had no intangible fixed assets at 31 December 2023 or 31 December 2022.
12
Tangible fixed assets
Group
Leasehold improvements
Plant and equipment
Fixtures and fittings
Motor vehicles
Total
£
£
£
£
£
Cost
At 1 January 2023
171,005
112,353
13,186
19,855
316,399
Additions
404,600
31,143
-
0
29,700
465,443
At 31 December 2023
575,605
143,496
13,186
49,555
781,842
Depreciation and impairment
At 1 January 2023
33,666
45,638
13,186
19,855
112,345
Depreciation charged in the year
105,271
35,076
-
0
2,475
142,822
At 31 December 2023
138,937
80,714
13,186
22,330
255,167
Carrying amount
At 31 December 2023
436,668
62,782
-
0
27,225
526,675
At 31 December 2022
137,339
66,715
-
0
-
0
204,054
The company had no tangible fixed assets at 31 December 2023 or 31 December 2022.

The net carrying value of tangible fixed assets includes the following in respect of assets held under finance leases or hire purchase contracts.

Group
Company
2023
2022
2023
2022
£
£
£
£
Motor vehicles
27,225
-
0
-
0
-
0
KW VENTURES LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 27 -
13
Fixed asset investments
Group
Company
2023
2022
2023
2022
Notes
£
£
£
£
Investments in subsidiaries
14
-
0
-
0
580,520
590,520
Unlisted investments
285,864
285,864
-
0
-
0
285,864
285,864
580,520
590,520
Movements in fixed asset investments
Group
Investments
£
Cost or valuation
At 1 January 2023 and 31 December 2023
285,864
Carrying amount
At 31 December 2023
285,864
At 31 December 2022
285,864
Movements in fixed asset investments
Company
Shares in subsidiaries
£
Cost or valuation
At 1 January 2023
590,520
Disposals
(10,000)
At 31 December 2023
580,520
Carrying amount
At 31 December 2023
580,520
At 31 December 2022
590,520
14
Subsidiaries

Details of the company's subsidiaries at 31 December 2023 are as follows:

Name of undertaking
Registered office
Class of
% Held
shares held
Direct
Sealpac UK Limited
England & Wales
Ordinary
100.00
Sealpac Process and Packaging Solutions Limited
Ireland
Ordinary
100.00
KW VENTURES LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 28 -
15
Financial instruments
Group
Company
2023
2022
2023
2022
£
£
£
£
Carrying amount of financial assets measured at amortised cost
Trade debtors
881,550
740,676
-
0
-
0
Other debtors
1,175,087
939,234
100
100
2,056,637
1,679,910
100
100
Carrying amount of financial liabilities measured at amortised cost
Other borrowings
94,229
158,478
-
0
-
0
Trade creditors
1,464,966
506,593
-
0
-
0
Bank loans and hire purchase
50,567
35,883
-
-
Other creditors
191,538
379,081
651,378
657,378
Accruals
916,491
412,747
3,250
750
2,717,791
1,492,782
654,628
658,128
16
Stocks
Group
Company
2023
2022
2023
2022
£
£
£
£
Machines and spare parts
878,890
1,597,552
-
-
17
Debtors
Group
Company
2023
2022
2023
2022
Amounts falling due within one year:
£
£
£
£
Trade debtors
881,550
740,676
-
0
-
0
Other debtors
1,157,651
919,597
105
204
Prepayments and accrued income
246,172
86,424
-
0
-
0
2,285,373
1,746,697
105
204
Amounts falling due after more than one year:
Other debtors
17,441
19,741
-
0
-
0
Total debtors
2,302,814
1,766,438
105
204
KW VENTURES LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 29 -
18
Creditors: amounts falling due within one year
Group
Company
2023
2022
2023
2022
Notes
£
£
£
£
Bank loans
20
9,441
9,208
-
0
-
0
Obligations under finance leases
21
9,900
-
0
-
0
-
0
Other borrowings
20
27,389
64,249
-
0
-
0
Trade creditors
1,464,966
506,593
-
0
-
0
Amounts owed to group undertakings
-
0
-
0
651,378
657,378
Corporation tax payable
159,482
229,656
-
0
-
0
Other taxation and social security
723,404
317,221
-
-
Deferred income
1,377,057
916,345
-
0
-
0
Other creditors
191,538
379,081
-
0
-
0
Accruals
916,491
412,747
3,250
750
4,879,668
2,835,100
654,628
658,128
19
Creditors: amounts falling due after more than one year
Group
Company
2023
2022
2023
2022
Notes
£
£
£
£
Bank loans and overdrafts
20
14,726
26,675
-
0
-
0
Obligations under finance leases
21
16,500
-
0
-
0
-
0
Other borrowings
20
66,840
94,229
-
0
-
0
98,066
120,904
-
-
20
Loans and overdrafts
Group
Company
2023
2022
2023
2022
£
£
£
£
Bank loans
24,167
35,883
-
0
-
0
Other loans
94,229
158,478
-
0
-
0
118,396
194,361
-
-
Payable within one year
36,830
73,457
-
0
-
0
Payable after one year
81,566
120,904
-
0
-
0

Borrowings are secured by fixed and floating charges over all assets of the company to which they relate.

 

KW VENTURES LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 30 -
21
Finance lease obligations
Group
Company
2023
2022
2023
2022
£
£
£
£
Future minimum lease payments due under finance leases:
Within one year
9,900
-
0
-
0
-
0
In two to five years
16,500
-
0
-
0
-
0
26,400
-
-
-

Finance lease payments represent rentals payable by the company or group for certain items of plant and machinery. Leases include purchase options at the end of the lease period, and no restrictions are placed on the use of the assets. The average lease term is 3 years. All leases are on a fixed repayment basis and no arrangements have been entered into for contingent rental payments.

 

Obligations under finance lease are secured against the assets to which they relate.

22
Creditors with security

Sealpac UK Limited has a loan from Sealpac UK SSAS of £94,229 (2022: £158,478), £27,389 (2022: £64,429) of which is included in creditors amounts falling due within one year. The remaining balance of £66,840 (2022: £94,229) is included within creditors due more than one year. The loan is repayable over the period to 28th February 2027. The interest rate on the loan is 5.75% to constitute a commercial rate.

 

On 9th September 2015 Rowanmoor Trustees Limited and Mr K Witheford as trustees of the Sealpac UK Ltd SSAS issued a fixed and floating charge over all assets of Sealpac UK Limited.

23
Deferred taxation

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

Liabilities
Liabilities
2023
2022
Group
£
£
Accelerated capital allowances
47,170
32,667
The company has no deferred tax assets or liabilities.
Group
Company
2023
2023
Movements in the year:
£
£
Liability at 1 January 2023
32,667
-
Charge to profit or loss
14,503
-
Liability at 31 December 2023
47,170
-
KW VENTURES LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
23
Deferred taxation
(Continued)
- 31 -
The deferred tax liability set out above is expected to reverse over the useful life of the assets and relates
to accelerated capital allowances that are expected to mature within the same period.
24
Retirement benefit schemes
2023
2022
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
119,082
112,014

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. At the balance sheet date the amount due to the pension fund was £10,760 (2022: £10,447).

25
Share capital
Group and company
2023
2022
2023
2022
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary A Shares of £1 each
90
90
90
90
Ordinary B Shares of £1 each
10
10
10
10
Ordinary C Shares of £1 each
70
70
70
70
Ordinary D Shares of £1 each
10
10
10
10
Ordinary E Shares of £1 each
10
10
10
10
Ordinary F Shares of £1 each
10
10
10
10
200
200
200
200

All shares rank pari passu.

26
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
2023
2022
2023
2022
£
£
£
£
Within one year
267,225
271,408
-
-
Between two and five years
792,077
726,141
-
-
In over five years
672,000
840,000
-
-
1,731,302
1,837,549
-
-
KW VENTURES LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
26
Operating lease commitments
(Continued)
- 32 -
Lessor

At the reporting end date the group had contracted with tenants for the following minimum lease payments:

Group
Company
2023
2022
2023
2022
£
£
£
£
Within one year
46,640
46,640
-
-
Between two and five years
34,980
81,620
-
-
81,620
128,260
-
-
27
Related party transactions
Transactions with related parties

Sealpac UK Limited

(Directors in common)

The parent company operates an inter-company account with Sealpac UK Limited. At the balance sheet date the amount due from the parent company to Sealpac UK Limited was £651,378 (2022: £657,378).

 

The inter-company account is unsecured, no interest is charged and the balance is repayable on demand.

 

Jorgkind Limited

(Directors in common)

The group operates an inter-company account with Jorgkind Limited. At the balance sheet date the amount due from Jorgkind Limited was £711,663 (2022: £711,663). Within the year, Jorgkind Limited charged rent to Sealpac UK Limited totalling £168,000 (2022: £144,088).

 

The inter-company account is unsecured, no interest is charged and the balance is repayable on demand.

 

Sealpac Process & Packaging Solutions Limited

(Directors in common)

The group operates an inter-company account with Sealpac Process & Packaging Solutions Limited. At the balance sheet date the amount due form Sealpac Process & Packaging Solutions Limited was £50,000 (2022: £50,000).

 

The inter-company account is unsecured, no interest is charged and the balance is repayable on demand.

 

Sealpac UK Ltd SSAS

(Mr K Witheford is a trustee)

 

At the balance sheet date the amount due to Sealpac UK Ltd SSAS was £94,229 (2022: £158,478), see note 22.

KW VENTURES LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 33 -
28
Directors' transactions

Mr K Witheford

(A director of the company)

During the year, a total of £79,447 (2022: £190,501) was advanced to and a total of £190,823 (2022: £167,910 was credited by the director in respect of his director’s current account. In addition, interest totalling £1,963 (2022: £3,706) was charged on this balance. At the balance sheet date the amount due from the director was £74,999 (2022: £184,412).

 

Mr K Jones

(A director of the company)

During the year, a total of £27,715 (2022: £27,984) was advanced to and a total of £94,945 (2022: £80,530) was credited by the director in respect of his director’s current account. In addition, interest totalling £126 (2022: £491) was charged on this balance. At the balance sheet date the amount due to the director was £62,465 (in 2022 date the amount due from the director was: £4,639).

29
Cash generated from/(absorbed by) group operations
2023
2022
£
£
Profit for the year after tax
1,145,476
1,158,503
Adjustments for:
Taxation charged
191,496
301,024
Finance costs
29,434
22,758
Investment income
(96)
(4,206)
Depreciation and impairment of tangible fixed assets
142,822
66,333
Foreign exchange (gain)/loss on consolidation
(2,170)
10,924
Movements in working capital:
Decrease in stocks
718,662
1,495,170
(Increase)/decrease in debtors
(536,376)
574,674
Increase/(decrease) in creditors
1,644,178
(1,074,692)
Increase/(decrease) in deferred income
460,712
(4,029,034)
Cash generated from/(absorbed by) operations
3,794,138
(1,478,546)
30
Analysis of changes in net funds - group
1 January 2023
Cash flows
31 December 2023
£
£
£
Cash at bank and in hand
1,601,254
2,481,812
4,083,066
Borrowings excluding overdrafts
(194,361)
75,965
(118,396)
Obligations under finance leases
-
(26,400)
(26,400)
1,406,893
2,531,377
3,938,270
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