IRIS Accounts Production v24.2.0.383 00479957 Board of Directors Board of Directors 1.1.23 31.12.23 31.12.23 true false true true false false true false Defined benefit pension plans Ordinary 1.00000 Ordinary 1.00000 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s5:RetainedEarningsAccumulatedLosses2022-12-31
REGISTERED NUMBER: 00479957 (England and Wales)















Kellands (Plant Sales) Limited

Strategic Report, Report of the Directors and

Audited Financial Statements

for the Year Ended 31 December 2023






Kellands (Plant Sales) Limited (Registered number: 00479957)






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




Page

Company Information 1

Strategic Report 2

Report of the Directors 4

Report of the Independent Auditors 6

Statement of Comprehensive Income 10

Statement of Financial Position 11

Statement of Changes in Equity 12

Statement of Cash Flows 13

Notes to the Statement of Cash Flows 14

Notes to the Financial Statements 16


Kellands (Plant Sales) Limited

Company Information
for the Year Ended 31 December 2023







DIRECTORS: N J Smith
F D Jeanes
T L E Miller
T P Hill
P V Watts



REGISTERED OFFICE: Salmon Parade
Bridgwater
Somerset
TA6 5JY



REGISTERED NUMBER: 00479957 (England and Wales)



AUDITORS: Maxwells
Chartered Accountants
and Statutory Auditor
4 King Square
Bridgwater
Somerset
TA6 3YF



BANKERS: National Westminster Bank plc
9 York Buildings
Cornhill
Bridgwater
Somerset
TA6 3BA

Kellands (Plant Sales) Limited (Registered number: 00479957)

Strategic Report
for the Year Ended 31 December 2023

The directors present their strategic report for the year ended 31 December 2023.

The principal activity of the company for the year under review was the distribution and maintenance of industrial and construction machinery.

REVIEW OF BUSINESS
The turnover is significantly lower than the previous year and this is mainly explained by our continued expansion into the South East during the year, but our trading activity in the South East is now reported in the accounts of a fellow subsidiary company, Kellands Plant (SE) Limited.
The directors remain convinced that we are continuing to build a company that has a firm base from which we can deliver future expansion and profits. All employees and management have worked hard during the year to deliver a profit, and a great deal of credit is due to them all for their continuing support.
The company continues to invest in cyber security technology and staff training as well as evolving its compliance with GDPR requirements and the continuous improvement of health and safety for staff and customers.

Financial Performance

2023
£'000
2022
£'000
Change
£'000

%

Turnover 27,801 33,135 (5,334) (16%)
Gross Profit 2,437 3,256 (819) (25%)
Profit before tax 136 792 (656) (83%)

Strategy
Going forward we will continue with our plans to increase the number of customers for all of our departments.

The directors are confident that the company has an excellent range of products, although we are always looking to review and strengthen the product base.

Turnover
The decrease in turnover during the year mainly reflects the effect of the re-allocation of the south-east trade.
Exports are higher than the previous year but the consequences of the UK leaving the European Union are still having an effect.

Gross profit
The decrease in gross profit reflects the lower turnover. The overall margin during the year was similar to the previous year because of the mix of sales.

Operating costs
Our costs increased during the year reflecting the inflationary climate. The directors are continually reviewing the overheads and monitoring the current economic situation.

Capital expenditure
We continue to invest to improve the company. Our main expenditure during the year was updating our motor fleet.

Performance indicators
The board of directors monitors key performance indicators in addition to the more traditional financial statements and sales pipeline information that is provided to the board each month.


Kellands (Plant Sales) Limited (Registered number: 00479957)

Strategic Report
for the Year Ended 31 December 2023

REVIEW OF BUSINESS (CONTINUED)
Principal risks
We recognise that stock valuation and stock turnover are the key to our profitability and management monitors these areas on a regular basis. Our fixed overheads and staffing levels are under constant review to enable us to respond to any downturn or upturn in the market that may require an overhead adjustment. All areas of our business review stock values on a regular basis, and adjustments are and will be made for slow moving and obsolete items.

PRINCIPAL RISKS AND UNCERTAINTIES

The company uses various financial instruments. These include loans, cash and various items, such as trade debtors and trade creditors that arise directly from its operations. The main purpose of these financial instruments is to raise finance for the company's operations.

The existence of these financial instruments exposes the company to a number of financial risks, which are described below in more detail.

The main risks arising are cash flow interest rate risk, credit risk and liquidity risk. The directors review and agree policies for managing each of these risks and they are summarised below. These policies have remained unchanged from previous years.

Liquidity risk
The company seeks to manage financial risk by ensuring sufficient liquidity is available to meet foreseeable needs and to invest cash assets safely and profitably. The maturity of any borrowings is set out in the notes to the financial statements.

Interest rate risk
The company finances its operations through a mixture of retained profits and asset finance. The exposure to interest rate fluctuations on borrowings is managed by the use of fixed facilities.

Credit risk
The company's principal financial assets are cash and trade debtors. The credit risk associated with cash is limited. The principal credit risk arises therefore from its trade debtors.

In order to manage credit risk the directors set limits for customers based on a combination of payment history and third party credit references. Credit limits are reviewed by the credit controller on a regular basis in conjunction with debt ageing and collection history.

Climate sustainability
As a business supplying and servicing goods for use in the construction industry we feel a need to take actions where possible to reduce our impact on the climate and work towards being a sustainable business. We are using energy efficient boilers for areas where heating is required, and these are regularly serviced. Additionally we have made the business decision that where possible for all packaging and paper materials we will try and purchase recyclable products to reduce the amount of waste going to landfill.
The directors are constantly working to reduce the company's carbon emissions where possible and this also has an impact on reducing costs which directly affect the companys profitability.

At 31 December 2023 and 31 December 2022 there was no concentration of credit risk with exposure being spread over a large number of customers.

ON BEHALF OF THE BOARD:





F D Jeanes - Director


16 September 2024

Kellands (Plant Sales) Limited (Registered number: 00479957)

Report of the Directors
for the Year Ended 31 December 2023

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

PRINCIPAL ACTIVITY
The principal activity of the company in the year under review was that of the distribution and maintenance of industrial and construction machinery.

DIVIDENDS
A dividend of £50,000 was paid on 31 December 2023. This represents a dividend of 50p per share.

DIRECTORS
The directors set out in the table below have held office during the whole of the period from 1 January 2023 to the date of this report unless otherwise stated.

Other changes in directors holding office are as follows:

M A Payne - resigned 31.8.23

The directors shown below were in office at 31 December 2023 but did not hold any interest in the Ordinary shares of £1 each at 1 January 2023 or 31 December 2023.

N J Smith
F D Jeanes
T L E Miller
T P Hill
P V Watts

STATEMENT OF DIRECTORS' RESPONSIBILITIES
The directors are responsible for preparing the Strategic Report, the Report of the Directors and the financial statements in accordance with applicable law and regulations.

Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law), including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'. Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to:

-select suitable accounting policies and then apply them consistently;
-make judgements and accounting estimates that are reasonable and prudent;
-prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company's transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS
So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the company's auditors are unaware, and each director has taken all the steps that he ought to have taken as a director in order to make himself aware of any relevant audit information and to establish that the company's auditors are aware of that information.

Kellands (Plant Sales) Limited (Registered number: 00479957)

Report of the Directors
for the Year Ended 31 December 2023


AUDITORS
The auditors, Maxwells, will be proposed for re-appointment at the forthcoming Annual General Meeting.

ON BEHALF OF THE BOARD:





F D Jeanes - Director


16 September 2024

Report of the Independent Auditors to the Members of
Kellands (Plant Sales) Limited

Opinion
We have audited the financial statements of Kellands (Plant Sales) Limited (the 'company') for the year ended 31 December 2023 which comprise the Statement of Comprehensive Income, Statement of Financial Position, Statement of Changes in Equity, Statement of Cash Flows and Notes to the Statement of Cash Flows, Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:
-give a true and fair view of the state of the company's affairs as at 31 December 2023 and of its profit for the year then ended;
-have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
-have been prepared in accordance with the requirements of the Companies Act 2006.

Basis for opinion
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the 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 company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.

Other information
The directors are responsible for the other information. The other information comprises the information in the Strategic Report and the Report of the Directors, but does not include the financial statements and our Report of the Auditors thereon.

Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of the audit:
- the information given in the Strategic Report and the Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and
- the Strategic Report and the Report of the Directors have been prepared in accordance with applicable legal requirements.

Report of the Independent Auditors to the Members of
Kellands (Plant Sales) Limited


Matters on which we are required to report by exception
In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic Report or the Report of the Directors.

We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion:
- adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
- the financial statements are not in agreement with the accounting records and returns; or
- certain disclosures of directors' remuneration specified by law are not made; or
- we have not received all the information and explanations we require for our audit.

Responsibilities of directors
As explained more fully in the Statement of Directors' Responsibilities set out on page four, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the directors are responsible for assessing the 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 company or to cease operations, or have no realistic alternative but to do so.

Report of the Independent Auditors to the Members of
Kellands (Plant Sales) Limited


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

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

Identifying and assessing potential risks to irregularities
In identifying and assessing risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, our procedures included the following:

- Obtaining an understanding of the nature of the industry and sector in which the business operates and focusing on those laws and regulations that had a direct effect on the financial statements or that had a fundamental effect on the operations of the company.
- Enquiring of management, including reviewing supporting documentation concerning the company's policies and procedures relating to:
a) Identifying, evaluating and complying with laws and regulations and whether they were aware of any instances of non-compliance.
b) Detecting and responding to the risks of fraud and whether they have knowledge of any factual, suspected or alleged fraud.
c) The internal controls established to mitigate risks related to fraud or non- compliance with laws and regulations
- Discussing with the audit engagement team regarding how and where fraud might occur in the financial statements and potential indications of fraud.

Audit response to risks identified
As a result of performing the above, we did not identify any key audit matters related to the potential risk of fraud or non-compliance with laws and regulations.

Our procedures to respond to risks identified included the following:
- Enquiring of management and those charged with governance concerning actual and potential litigation and claims.
- Reviewing minutes of meetings of those charged with governance and reviewing correspondence with HMRC.
- Performing analytical review procedures to identify and unusual or unexpected transactions that may indicate risks of material misstatement due to fraud.
- Reviewing financial statement disclosures and testing to supporting documentation to assess compliance with applicable laws and regulations; and
- In addressing the risk of fraud through management override of controls, testing the appropriateness of journal entries and other adjustments; assessing whether the judgements made in making accounting estimates are indicative of potential bias; and evaluating the business rationale of significant transactions that are unusual or outside the normal course of business.

There are inherent limitations in our audit procedures described above. The more removed those 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.

Report of the Independent Auditors to the Members of
Kellands (Plant Sales) Limited


Use of our report
This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in a Report of the Auditors and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's members as a body, for our audit work, for this report, or for the opinions we have formed.




Nigel Blannin (Senior Statutory Auditor)
for and on behalf of Maxwells
Chartered Accountants
and Statutory Auditor
4 King Square
Bridgwater
Somerset
TA6 3YF

16 September 2024

Kellands (Plant Sales) Limited (Registered number: 00479957)

Statement of Comprehensive Income
for the Year Ended 31 December 2023

31.12.23 31.12.22
Notes £    £   

TURNOVER 4 27,801,212 33,134,977

Cost of sales 25,364,220 29,879,409
GROSS PROFIT 2,436,992 3,255,568

Administrative expenses 2,449,526 2,477,246
(12,534 ) 778,322

Other operating income 125,000 20,000
OPERATING PROFIT 6 112,466 798,322

Interest receivable and similar income 10,566 2,870
123,032 801,192

Interest payable and similar expenses 7 (12,944 ) 9,018
PROFIT BEFORE TAXATION 135,976 792,174

Tax on profit 8 51,114 132,793
PROFIT FOR THE FINANCIAL YEAR 84,862 659,381

OTHER COMPREHENSIVE (LOSS)/INCOME
Pension scheme actuarial adjustments (622,000 ) 1,210,000
Income tax relating to other comprehensive
(loss)/income

-

-
OTHER COMPREHENSIVE
(LOSS)/INCOME FOR THE YEAR, NET
OF INCOME TAX


(622,000


)


1,210,000
TOTAL COMPREHENSIVE
(LOSS)/INCOME FOR THE YEAR

(537,138

)

1,869,381

Kellands (Plant Sales) Limited (Registered number: 00479957)

Statement of Financial Position
31 December 2023

31.12.23 31.12.22
Notes £    £    £    £   
FIXED ASSETS
Tangible assets 10 669,429 660,901

CURRENT ASSETS
Stocks 11 7,086,270 7,782,536
Debtors 12 1,286,599 1,769,054
Cash at bank 1,965 1,415,125
8,374,834 10,966,715
CREDITORS
Amounts falling due within one year 13 4,272,332 6,764,074
NET CURRENT ASSETS 4,102,502 4,202,641
TOTAL ASSETS LESS CURRENT
LIABILITIES

4,771,931

4,863,542

CREDITORS
Amounts falling due after more than one
year

14

(55,038

)

(153,511

)

PROVISIONS FOR LIABILITIES 18 (150,000 ) (115,000 )

PENSION ASSET 21 1,454,000 2,013,000
NET ASSETS 6,020,893 6,608,031

CAPITAL AND RESERVES
Called up share capital 19 100,000 100,000
Retained earnings 20 5,920,893 6,508,031
SHAREHOLDERS' FUNDS 6,020,893 6,608,031

The financial statements were approved by the Board of Directors and authorised for issue on 16 September 2024 and were signed on its behalf by:




F D Jeanes - Director



P V Watts - Director


Kellands (Plant Sales) Limited (Registered number: 00479957)

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

Called up
share Retained Total
capital earnings equity
£    £    £   
Balance at 1 January 2022 100,000 4,688,650 4,788,650

Changes in equity
Dividends - (50,000 ) (50,000 )
Total comprehensive income - 1,869,381 1,869,381
Balance at 31 December 2022 100,000 6,508,031 6,608,031

Changes in equity
Dividends - (50,000 ) (50,000 )
Total comprehensive loss - (537,138 ) (537,138 )
Balance at 31 December 2023 100,000 5,920,893 6,020,893

Kellands (Plant Sales) Limited (Registered number: 00479957)

Statement of Cash Flows
for the Year Ended 31 December 2023

31.12.23 31.12.22
Notes £    £   
Cash flows from operating activities
Cash generated from operations 1 (1,425,870 ) 1,402,772
Interest paid 94,000 15,000
Interest element of hire purchase payments
paid

(81,056

)

(24,018

)
Tax paid 108,088 (103,687 )
Net cash from operating activities (1,304,838 ) 1,290,067

Cash flows from investing activities
Purchase of tangible fixed assets (458,826 ) (460,032 )
Sale of tangible fixed assets 253,250 95,350
Interest received 10,566 2,870
Net cash from investing activities (195,010 ) (361,812 )

Cash flows from financing activities
New finance leases 67,700 243,558
Capital repayments in year (118,477 ) (99,461 )
Equity dividends paid (50,000 ) (50,000 )
Net cash from financing activities (100,777 ) 94,097

(Decrease)/increase in cash and cash equivalents (1,600,625 ) 1,022,352
Cash and cash equivalents at beginning of
year

2

1,411,940

389,588

Cash and cash equivalents at end of year 2 (188,685 ) 1,411,940

Kellands (Plant Sales) Limited (Registered number: 00479957)

Notes to the Statement of Cash Flows
for the Year Ended 31 December 2023

1. RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM
OPERATIONS
31.12.23 31.12.22
£    £   
Profit before taxation 135,976 792,174
Depreciation charges 259,019 218,543
Profit on disposal of fixed assets (61,971 ) (55,804 )
Finance costs (12,944 ) 9,018
Finance income (10,566 ) (2,870 )
309,514 961,061
Decrease/(increase) in stocks 696,266 (1,488,463 )
Decrease/(increase) in trade and other debtors 291,824 (469,664 )
(Decrease)/increase in trade and other creditors (2,723,474 ) 2,399,838
Cash generated from operations (1,425,870 ) 1,402,772

2. CASH AND CASH EQUIVALENTS

The amounts disclosed on the Statement of Cash Flows in respect of cash and cash equivalents are in respect of these Statement of Financial Position amounts:

Year ended 31 December 2023
31.12.23 1.1.23
£    £   
Cash and cash equivalents 1,965 1,415,125
Bank overdrafts (190,650 ) (3,185 )
(188,685 ) 1,411,940
Year ended 31 December 2022
31.12.22 1.1.22
£    £   
Cash and cash equivalents 1,415,125 391,021
Bank overdrafts (3,185 ) (1,433 )
1,411,940 389,588


Kellands (Plant Sales) Limited (Registered number: 00479957)

Notes to the Statement of Cash Flows
for the Year Ended 31 December 2023

3. ANALYSIS OF CHANGES IN NET FUNDS/(DEBT)

At 1.1.23 Cash flow At 31.12.23
£    £    £   
Net cash
Cash at bank 1,415,125 (1,413,160 ) 1,965
Bank overdrafts (3,185 ) (187,465 ) (190,650 )
1,411,940 (1,600,625 ) (188,685 )
Debt
Finance leases (298,454 ) 118,477 (179,977 )
(298,454 ) 118,477 (179,977 )
Total 1,113,486 (1,482,148 ) (368,662 )

Kellands (Plant Sales) Limited (Registered number: 00479957)

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

1. STATUTORY INFORMATION

Kellands (Plant Sales) Limited is a private company, limited by shares , registered in England and Wales. The company's registered number and registered office address can be found on the Company Information page.

2. STATEMENT OF COMPLIANCE

These financial statements have been prepared in accordance with Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" and the Companies Act 2006.

3. ACCOUNTING POLICIES

Basis of preparing the financial statements
The financial statements have been prepared under the historical cost convention.

The financial statements have been prepared in accordance with applicable accounting standards and estimation techniques, and on a going concern basis.

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 wholly owned subsidiaries within the group.

Critical accounting judgements and key sources of estimation uncertainty
In applying the company's accounting policies, which are described in note 3, management is required to make:

- judgements (other than those involving estimations) that have a significant impact on the amounts recognised; and

- estimates and assumptions about the carrying values of assets and liabilities that are not readily apparent from other sources. The estimates and underlying 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 if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods

Turnover
Turnover is measured at the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes.

Turnover is recognised at invoice date for all classes of income.

Tangible fixed assets
Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life or, if held under a finance lease, over the lease term, whichever is the shorter.
Short leasehold - over life of lease
Plant and machinery - 25% on reducing balance
Fixtures and fittings - 20% on reducing balance
Motor vehicles - 30% reducing balance
I.T. Equipment - 30% reducing balance

Stocks
Machine stock is stated at invoice cost plus additional enhancement work, as amended by any provision for obsolescence.

Parts stock is stated at average cost, as amended for any slow-moving or obsolescence provision.

Work-in-progress is stated at average parts costs and chargeable labour costs based on job card valuations.


Kellands (Plant Sales) Limited (Registered number: 00479957)

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

3. ACCOUNTING POLICIES - continued
Taxation
Taxation for the year comprises current and deferred tax. Tax is recognised in the Statement of Comprehensive Income, except to the extent that it relates to items recognised in other comprehensive income or directly in equity.

Current or deferred taxation assets and liabilities are not discounted.

Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the statement of financial position date.

Deferred tax
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the statement of financial position date.

Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference.

Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits.

Foreign currencies
Assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the statement of financial position date. Transactions in foreign currencies are translated into sterling at the rate of exchange ruling at the date of transaction. Exchange differences are taken into account in arriving at the operating result.

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

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

Rentals paid under operating leases are charged to profit or loss on a straight line basis over the period of the lease.

Pension costs and other post-retirement benefits
The pension scheme surplus is stated at the actuarial valuation at the year-end. Costs are charged to the profit and loss in the period in accordance with the actuarial review disclosures.

The group operates a defined contribution pension scheme in addition to the defined benefit scheme (noted above - which is now closed to new members). Contributions payable to the group's defined contribution pension scheme are charged to profit or loss in the period to which they relate.

Kellands (Plant Sales) Limited (Registered number: 00479957)

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

4. TURNOVER

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

An analysis of turnover by geographical market is given below:

31.12.23 31.12.22
£    £   
United Kingdom 26,776,846 32,312,919
Europe and rest of world 1,024,366 822,058
27,801,212 33,134,977

5. EMPLOYEES AND DIRECTORS
31.12.23 31.12.22
£    £   
Wages and salaries 1,753,947 1,968,561
Social security costs 206,003 211,738
Other pension costs 99,726 101,330
2,059,676 2,281,629

The average number of employees during the year was as follows:
31.12.23 31.12.22

Sales staff 9 9
Office and management 9 8
Parts 9 10
Service 28 27
General labour 4 3
59 57

Defined benefit pension scheme

The company is a member of a group defined benefit scheme which is funded by the payment of contributions to a separately administered trust fund.

The contributions to this scheme are determined with the advice of independent qualified actuaries on the basis of full actuarial triennial valuations. The most recent full actuarial valuation was conducted on 6 April 2021.

31.12.23 31.12.22
£    £   
Directors' remuneration 348,495 388,824
Compensation to director for loss of office 50,928 -

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

Money purchase schemes 3 3

Kellands (Plant Sales) Limited (Registered number: 00479957)

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

5. EMPLOYEES AND DIRECTORS - continued

Information regarding the highest paid director is as follows:
31.12.23 31.12.22
£    £   
Emoluments etc 147,819 155,593

6. OPERATING PROFIT

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

31.12.23 31.12.22
£    £   
Other operating leases 84,508 80,627
Depreciation - owned assets 132,155 90,493
Depreciation - assets on hire purchase contracts 126,864 128,050
Profit on disposal of fixed assets (61,971 ) (55,804 )
Auditors' remuneration 18,250 18,460

7. INTEREST PAYABLE AND SIMILAR EXPENSES
31.12.23 31.12.22
£    £   
Interest received on pension
scheme assets (315,000 ) (132,000 )
Interest paid on pension
scheme liabilities 221,000 117,000
Hire purchase interest 20,157 11,824
Stocking loan charges 60,899 12,194
(12,944 ) 9,018

8. TAXATION

Analysis of the tax charge
The tax charge on the profit for the year was as follows:
31.12.23 31.12.22
£    £   
Current tax:
UK corporation tax 16,114 82,543
Prior year adjustments - (4,750 )
Total current tax 16,114 77,793

Deferred tax 35,000 55,000
Tax on profit 51,114 132,793

UK corporation tax has been charged at 25% (2022 - 19%).

Kellands (Plant Sales) Limited (Registered number: 00479957)

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

8. TAXATION - continued

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

31.12.23 31.12.22
£    £   
Profit before tax 135,976 792,174
Profit multiplied by the standard rate of corporation tax in the UK of 25%
(2022 - 19%)

33,994

150,513

Effects of:
Expenses not deductible for tax purposes 613 332
Capital allowances in excess of depreciation - (10,452 )
Depreciation in excess of capital allowances 32,257 -
Adjustments to tax charge in respect of previous periods - (4,750 )
Pension scheme adjustments (15,750 ) (2,850 )
Total tax charge 51,114 132,793

Tax effects relating to effects of other comprehensive income

31.12.23
Gross Tax Net
£    £    £   
Pension scheme actuarial adjustments (622,000 ) - (622,000 )

31.12.22
Gross Tax Net
£    £    £   
Pension scheme actuarial adjustments 1,210,000 - 1,210,000

9. DIVIDENDS
31.12.23 31.12.22
£    £   
Interim 50,000 50,000

Kellands (Plant Sales) Limited (Registered number: 00479957)

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

10. TANGIBLE FIXED ASSETS
Fixtures
Short Plant and and
leasehold machinery fittings
£    £    £   
COST
At 1 January 2023 163,598 235,612 134,945
Additions - 121,929 900
Disposals - (3,859 ) -
At 31 December 2023 163,598 353,682 135,845
DEPRECIATION
At 1 January 2023 120,833 109,855 82,372
Charge for year 24,628 41,765 8,680
Eliminated on disposal - (3,787 ) -
At 31 December 2023 145,461 147,833 91,052
NET BOOK VALUE
At 31 December 2023 18,137 205,849 44,793
At 31 December 2022 42,765 125,757 52,573

Motor I.T.
vehicles Equipment Totals
£    £    £   
COST
At 1 January 2023 755,975 155,648 1,445,778
Additions 306,404 29,593 458,826
Disposals (356,828 ) - (360,687 )
At 31 December 2023 705,551 185,241 1,543,917
DEPRECIATION
At 1 January 2023 350,800 121,017 784,877
Charge for year 172,382 11,564 259,019
Eliminated on disposal (165,621 ) - (169,408 )
At 31 December 2023 357,561 132,581 874,488
NET BOOK VALUE
At 31 December 2023 347,990 52,660 669,429
At 31 December 2022 405,175 34,631 660,901

Kellands (Plant Sales) Limited (Registered number: 00479957)

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

10. TANGIBLE FIXED ASSETS - continued

Fixed assets, included in the above, which are held under hire purchase contracts are as follows:
Motor
vehicles
£   
COST
At 1 January 2023 482,146
Additions 94,005
Disposals (121,913 )
At 31 December 2023 454,238
DEPRECIATION
At 1 January 2023 151,291
Charge for year 126,864
Eliminated on disposal (58,467 )
At 31 December 2023 219,688
NET BOOK VALUE
At 31 December 2023 234,550
At 31 December 2022 330,855

11. STOCKS
31.12.23 31.12.22
£    £   
Work-in-progress 56,712 36,104
Spares 1,784,430 1,776,643
Machines 5,245,128 5,969,789
7,086,270 7,782,536

Machine stock includes machines which are secured under stocking loans, as noted in creditors.

12. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
31.12.23 31.12.22
£    £   
Trade debtors 1,253,879 1,563,228
Other debtors - 2,700
Tax - 190,631
Prepayments 32,720 12,495
1,286,599 1,769,054

Kellands (Plant Sales) Limited (Registered number: 00479957)

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

13. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
31.12.23 31.12.22
£    £   
Bank loans and overdrafts (see note 15) 190,650 3,185
Hire purchase contracts (see note 16) 124,939 144,943
Trade creditors 1,599,945 3,977,544
Stocking loans 838,485 1,739,614
Amounts owed to group undertakings 952,620 467,252
Corporation Tax 16,114 82,543
Social security and other taxes 281,459 55,703
Other creditors 119,350 104,307
Accruals & deferred income 148,770 188,983
4,272,332 6,764,074

14. CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE
YEAR
31.12.23 31.12.22
£    £   
Hire purchase contracts (see note 16) 55,038 153,511

15. LOANS

An analysis of the maturity of loans is given below:

31.12.23 31.12.22
£    £   
Amounts falling due within one year or on demand:
Bank overdrafts 190,650 3,185

16. LEASING AGREEMENTS

Minimum lease payments fall due as follows:

Hire purchase contracts
31.12.23 31.12.22
£    £   
Net obligations repayable:
Within one year 124,939 144,943
Between one and five years 55,038 153,511
179,977 298,454

Non-cancellable operating leases
31.12.23 31.12.22
£    £   
Within one year 11,330 112,100
Between one and five years 69,620 1,840
In more than five years - 82,440
80,950 196,380

Kellands (Plant Sales) Limited (Registered number: 00479957)

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

17. SECURED DEBTS

The following secured debts are included within creditors:

31.12.23 31.12.22
£    £   
Bank overdraft 190,650 -
Hire purchase contracts 179,977 298,454
Stocking loans 838,485 1,739,614
1,209,112 2,038,068

Stocking loans are secured by a fixed charge over the specific financed assets held in stock.

Finance leases and hire purchase contracts are secured by a fixed charge over the specific financed assets.

Bank overdrafts are secured by a charge over the general assets of the company.

18. PROVISIONS FOR LIABILITIES
31.12.23 31.12.22
£    £   
Deferred tax 150,000 115,000

Deferred
tax
£   
Balance at 1 January 2023 115,000
Charge to Statement of Comprehensive Income during year 35,000
Balance at 31 December 2023 150,000

No deferred tax has been provided on the defined benefit pension scheme asset in the accounts, on the basis that this asset is deemed to reduce and reverse in future years.

19. CALLED UP SHARE CAPITAL

Allotted, issued and fully paid:
Number: Class: Nominal 31.12.23 31.12.22
value: £    £   
100,000 Ordinary £1 100,000 100,000

20. RESERVES
Retained
earnings
£   

At 1 January 2023 6,508,031
Profit for the year 84,862
Dividends (50,000 )
Pension value increase/
(decrease) (622,000 )
At 31 December 2023 5,920,893

Kellands (Plant Sales) Limited (Registered number: 00479957)

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

21. EMPLOYEE BENEFIT OBLIGATIONS

The assets of the scheme consist wholly of a Commercial Union with-profits insurance policy, held by Aviva plc.

An actuarial valuation has been undertaken for the year ended 31 December 2023, and a comparative valuation for the year ended 31 December 2022. The valuation for accounting disclosure purposes is £1,454,000 (2022: £2,013,000). The valuation represents an excess of scheme assets over anticipated future liabilities.

A full actuarial valuation was undertaken on 6 April 2021 in accordance with the triennial valuation schedule. The next valuation is anticipated in April 2024.

The scheme is now closed to new members, and there are now no active employed members.

The employer meets all expenses, PPF levies and insurance premiums for death in service premiums.


Present values of scheme liabilities, fair value of assets and surplus/(deficit):

31/12/23 31/12/22
£'000s£'000s

Fair value of scheme assets5,9057,005
Present value of scheme liabilities4,451 4,992
Surplus in scheme 1,4542,013
Unrecognised surplus 0 0
Asset to be recognised in the balance sheet 1,454 2,013


Reconciliation of opening and closing balances of the present value of the scheme liabilities:

31/12/23
£'000s

Scheme liabilities at start of period4,992
Expenses0
Current service cost0
Interest cost221
Contributions by scheme participants0
Settlements or curtailments0
Actuarial losses/(gains)(191)
Benefits paid(571)
Past service costs 0
Scheme liabilities at end of period4,451


Reconciliation of opening and closing balances of the fair value of scheme assets:

31/12/23
£'000s

Fair value of scheme assets at start of period7,005
Interest income315
Actuarial (losses)/gains(813)
Contributions by employer0
Expenses paid(31)
Contributions by scheme participants0
Benefits paid (571)
Fair value of scheme assets at end of year5,905


Kellands (Plant Sales) Limited (Registered number: 00479957)

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


Defined benefit costs recognised in the Profit and Loss statement:
31/12/2331/12/22
£'000s£'000s

Included within operating profit:
Current service cost00
Included within other finance costs:
Net interest income (315k received - 221k paid)(94)(15)
Expenses 31 0
Net income/(costs) disclosed in the accounts (63)(15)



Assets
31/12/23 31/12/22
£'000s£'000s

Aviva With Profits Policy5,9057,005



None of the fair values of the assets shown above include any of the Employer's own financial instruments or any property occupied by, other than assets used by, the Employer.

Assumptions:

31/12/2331/12/22

Inflation3.15%3.35%
Rate of discount4.55%4.7%
Allowance for pension payments inflationary increases3.60%3.65%
Allowance for commutation of pension for cash at retirement75%75%

The mortality assumptions adopted at 31 December 2023 imply the following life expectancies:

Retiring at age 65 in 2022: male - 22.2; female - 24.6
Retiring at age 65 in 2042: male - 23.4; female - 26


22. ULTIMATE PARENT COMPANY

The company's ultimate parent undertaking at the balance sheet date was Kellands (Holdings) Limited, a company incorporated in England and Wales.


23. OTHER FINANCIAL COMMITMENTS

The company has issued a guarantee in favour of HM Revenue & Customs in respect of deferment of duties, taxes, levies and charges for £8,000.

24. RELATED PARTY DISCLOSURES

During the year the company traded with Diggers & Dumpers Limited, a company controlled by G Bagwell (a director of the parent), and with FG Jeanes & Son, a firm controlled by FD Jeanes (a director of the parent). All transactions were at arms length and open market value.

Kellands (Plant Sales) Limited (Registered number: 00479957)

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

25. ULTIMATE CONTROLLING PARTY

The company was controlled during the current and previous period by its parent, Kellands (Holdings) Limited.