Caseware UK (AP4) 2023.0.135 2023.0.135 2023-12-312023-12-31falsetruetrue722023-01-01false69truefalse 07683788 2023-01-01 2023-12-31 07683788 2022-01-01 2022-12-31 07683788 2023-12-31 07683788 2022-12-31 07683788 2022-01-01 07683788 c:Director1 2023-01-01 2023-12-31 07683788 c:Director2 2023-01-01 2023-12-31 07683788 c:Director3 2023-01-01 2023-12-31 07683788 c:Director4 2023-01-01 2023-12-31 07683788 c:Director5 2023-01-01 2023-12-31 07683788 c:RegisteredOffice 2023-01-01 2023-12-31 07683788 d:PlantMachinery 2023-01-01 2023-12-31 07683788 d:MotorVehicles 2023-01-01 2023-12-31 07683788 d:MotorVehicles 2023-12-31 07683788 d:MotorVehicles 2022-12-31 07683788 d:FurnitureFittings 2023-01-01 2023-12-31 07683788 d:OfficeEquipment 2023-01-01 2023-12-31 07683788 d:CurrentFinancialInstruments 2023-12-31 07683788 d:CurrentFinancialInstruments 2022-12-31 07683788 d:Non-currentFinancialInstruments 2023-12-31 07683788 d:Non-currentFinancialInstruments 2022-12-31 07683788 d:CurrentFinancialInstruments d:WithinOneYear 2023-12-31 07683788 d:CurrentFinancialInstruments d:WithinOneYear 2022-12-31 07683788 d:Non-currentFinancialInstruments d:AfterOneYear 2023-12-31 07683788 d:Non-currentFinancialInstruments d:AfterOneYear 2022-12-31 07683788 d:UKTax 2023-01-01 2023-12-31 07683788 d:UKTax 2022-01-01 2022-12-31 07683788 d:ShareCapital 2023-12-31 07683788 d:ShareCapital 2022-12-31 07683788 d:ShareCapital 2022-01-01 07683788 d:RetainedEarningsAccumulatedLosses 2023-01-01 2023-12-31 07683788 d:RetainedEarningsAccumulatedLosses 2023-12-31 07683788 d:RetainedEarningsAccumulatedLosses 2022-01-01 2022-12-31 07683788 d:RetainedEarningsAccumulatedLosses 2022-12-31 07683788 d:RetainedEarningsAccumulatedLosses 2022-01-01 07683788 d:FinancialAssetsDesignatedFairValueThroughProfitOrLoss 2023-12-31 07683788 d:FinancialAssetsDesignatedFairValueThroughProfitOrLoss 2022-12-31 07683788 d:FurtherSpecificTypeProvisionContingentLiability1ComponentTotalProvisionsContingentLiabilities 2023-01-01 2023-12-31 07683788 d:FurtherSpecificTypeProvisionContingentLiability1ComponentTotalProvisionsContingentLiabilities 2023-12-31 07683788 d:FurtherSpecificTypeProvisionContingentLiability1ComponentTotalProvisionsContingentLiabilities 2022-12-31 07683788 c:OrdinaryShareClass1 2023-01-01 2023-12-31 07683788 c:OrdinaryShareClass1 2023-12-31 07683788 c:OrdinaryShareClass1 2022-12-31 07683788 c:FRS102 2023-01-01 2023-12-31 07683788 c:Audited 2023-01-01 2023-12-31 07683788 c:FullAccounts 2023-01-01 2023-12-31 07683788 c:PrivateLimitedCompanyLtd 2023-01-01 2023-12-31 07683788 d:FinancialLiabilitiesFairValueThroughProfitOrLoss d:ListedExchangeTraded 2023-12-31 07683788 d:FinancialLiabilitiesFairValueThroughProfitOrLoss d:ListedExchangeTraded 2022-12-31 07683788 d:Subsidiary1 2023-01-01 2023-12-31 07683788 d:Subsidiary1 1 2023-01-01 2023-12-31 07683788 d:WithinOneYear 2023-12-31 07683788 d:WithinOneYear 2022-12-31 07683788 d:BetweenOneFiveYears 2023-12-31 07683788 d:BetweenOneFiveYears 2022-12-31 07683788 6 2023-01-01 2023-12-31 07683788 d:MotorVehicles d:LeasedAssetsHeldAsLessee 2023-12-31 07683788 d:MotorVehicles d:LeasedAssetsHeldAsLessee 2022-12-31 07683788 d:LeasedAssetsHeldAsLessee 2023-12-31 07683788 d:LeasedAssetsHeldAsLessee 2022-12-31 07683788 e:PoundSterling 2023-01-01 2023-12-31 xbrli:shares iso4217:GBP xbrli:pure

Registered number: 07683788










AKV CLADDING PRODUCTS LIMITED










ANNUAL REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2023

 
AKV CLADDING PRODUCTS LIMITED
 
 
COMPANY INFORMATION


DIRECTORS
K J Everitt 
L Hammond 
K M Everitt 
M Jones 
A Sneddon 




REGISTERED NUMBER
07683788



REGISTERED OFFICE
Unit 3 Hackworth Industrial Park

Shildon

DH4 1HF




INDEPENDENT AUDITORS
Waltons Business Advisers Limited
Chartered Accountants & Statutory Auditors

Maritime House

Harbour Walk

The Marina

Hartlepool

Teesside

TS24 0UX





 
AKV CLADDING PRODUCTS LIMITED
 

CONTENTS



Page
Directors' report
1 - 2
Strategic report
3
Independent auditors' report
4 - 7
Statement of comprehensive income
8
Balance sheet
9
Statement of changes in equity
10
Notes to the financial statements
11 - 23


 
AKV CLADDING PRODUCTS LIMITED
 
 
 
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023

The directors present their report and the financial statements for the year ended 31 December 2023.

DIRECTORS' RESPONSIBILITIES STATEMENT

The directors are responsible for preparing the strategic report, the directors' report and the financial statements in accordance with applicable law and regulations.
 
Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), 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 for the company's financial statements 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 to enable them to ensure that the financial statements comply with the Companies Act 2006They 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.

PRINCIPAL ACTIVITY

The principal activities of the company for the year were those of the design, manufacture, and supply of industrial roofing and architectural cladding ancilliaries.

RESULTS AND DIVIDENDS

The profit for the year, after taxation, amounted to £1,786,702 (2022 - £2,176,618).

During the year a dividend of £1,950,000 was paid.

DIRECTORS

The directors who served during the year were:

K J Everitt 
L Hammond 
K M Everitt 
M Jones 
A Sneddon 

Page 1

 
AKV CLADDING PRODUCTS LIMITED
 
 
 
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023

FUTURE DEVELOPMENTS

The board considers the company to be in a strong financial position to support continued trade, and to fund any organic growth. Intentions for the immediate future are to continue to look for ways to achieve improved operating margins and maximise profitability through operational efficiencies and overhead reduction.

RESEARCH AND DEVELOPMENT ACTIVITIES

The board have continued to make significant investments into activities which meet the definition of Research and Development. The board believes this investment is essential to improve standards across the industry as well as improving the range of products and services offered to customers. 
The board considers that the R&D projects worked on during the period represent significant advances in technology and experimental development. The R&D work involves developing technologies that enable companies to benefit from the capability these technologies deliver in terms of increased operational efficiency and security
Investment into innovative technology and products, in conjunction with further process improvement will continue in order to maximise the performance of the company, and of its customers.

MATTERS COVERED IN THE STRATEGIC REPORT

The business review, principal risks and uncertainties and financial key performance indicators are included in the strategic report.

DISCLOSURE OF INFORMATION TO AUDITORS

Each of the persons who are directors at the time when this directors' report is approved has confirmed that:
 
so far as the director is aware, there is no relevant audit information of which the company's auditors are unaware, and

the director has taken all the steps that ought to have been taken as a director in order to be aware of any relevant audit information and to establish that the company's auditors are aware of that information.

AUDITORS

The auditorsWaltons Business Advisers Limitedwill be proposed for reappointment in accordance with section 485 of the Companies Act 2006.

This report was approved by the board and signed on its behalf.
 





K J Everitt
Director

Date: 19 September 2024

Page 2

 
AKV CLADDING PRODUCTS LIMITED
 
 
STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023

BUSINESS REVIEW
 
The board are pleased to report the results for the year ended 31 December 2023, which represent trade within an increasingly challenging market.  These challenges have arisen as a result of volatile raw material prices and availability, increasing interest rates, tighter credit insurance limits, increased competition and increased complexity of works.   Despite these risks, the directors are happy to report that Company has maintained its gross margin at 27.8%, albeit on a reduced turnover of 9.1% less than the previous year.
Credit risk has continued to be monitored closely and the directors are happy to accept the level of credit risk exposure. Efforts are made to mitigate this risk through the operation of a credit insurance policy.
Risks posed by volatile market prices and material availability were managed by maintaining dialogue with key suppliers. Directors strive to improve relationships with customers and suppliers, rather than just maintaining them.  The directors are happy to report that no significant issues arose during the year.
Interest rate risk assessments were carried out at the start of 2023, and the decision was made to settle significant debt that attracted variable rates of interest. This has had no significant detrimental effect on group reserves of cash, given the levels that were in hand.

PRINCIPAL RISKS AND UNCERTAINTIES
 
Various business risks have been discussed within the Business Review, however the directors consider that the level of demand of cladding and cladding products, along with increased competitive pressure, are considered to be the key risks faced by the group.
As with any company, trade receivables are exposed to credit risk. The board feels that given the use of credit insurance and credit reviews these risks are managed to an acceptable level. The general reserves are large enough to cover any current risk.

FINANCIAL KEY PERFORMANCE INDICATORS
 
The board monitors company performance using a range of indicators, some of the most significant of which
are as follows:-
ole21b5.png


This report was approved by the board and signed on its behalf.



K J Everitt
Director

Date: 19 September 2024

Page 3

 
AKV CLADDING PRODUCTS LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF AKV CLADDING PRODUCTS LIMITED
 

UNQUALIFIED OPINION


We have audited the financial statements of AKV Cladding Products Limited (the 'company') for the year ended 31 December 2023, which comprise the statement of comprehensive income, the balance sheet, the statement of changes in equity and the related notes, including a summary of significant accounting policiesThe 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 United Kingdom, including the Financial Reporting Council'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.


Page 4

 
AKV CLADDING PRODUCTS LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF AKV CLADDING PRODUCTS LIMITED (CONTINUED)


OTHER INFORMATION


The other information comprises the information included in the Annual Report other than the financial statements and our auditors' report thereon. The directors are responsible for the other information contained within the Annual ReportOur 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.


OPINION 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 directors' report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
the strategic report and the directors' report have been prepared in accordance with applicable legal requirements.


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 directors' report.


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


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 directors' responsibilities statement set out on page 1, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.


In preparing the financial statements, the directors are responsible for assessing the 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.


Page 5

 
AKV CLADDING PRODUCTS LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF AKV CLADDING PRODUCTS LIMITED (CONTINUED)


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 an auditors' 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.


Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

We gained an understanding of the legal and regulatory framework applicable to the company and the area in which it operates, and considered the risk of acts by the company that were contrary to applicable laws and regulations, including fraud. We designed audit procedures to respond to the risk, recognising that the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentations, or through collusion.
We focussed on laws and regulations which could give rise to a material misstatement in the financial statements, including, but not limited to, the Companies Act 2006 and UK tax legislation. Our tests included agreeing the financial statement disclosures to underlying supporting documentation and enquiries with management. There are inherent limitations in the audit procedures described above and, the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we would become aware of it. We did not identify any key audit matters relating to irregularities, including fraud. As in all our audits, we also addressed the risk of management override of internal controls, including testing journals, review of provisions and evaluating whether there was evidence of bias by the directors that represented a risk of material misstatement due to fraud.
We identified the greatest potential for fraud in the following areas: existence and timing of recognition of income and the posting of unusual journals. We discussed these risks with management and designed audit procedures to test the timing and existence of revenue. We reviewed journals posted during the year and around the year end and around the year to look for potential “window dressing”. 


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 auditors' report.


Page 6

 
AKV CLADDING PRODUCTS LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF AKV CLADDING PRODUCTS LIMITED (CONTINUED)


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 2006Our 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 auditors' 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.





Paul Harrison MSc, BSc, FCA (senior statutory auditor)
  
for and on behalf of
Waltons Business Advisers Limited
 
Chartered Accountants
Statutory Auditors
  
Maritime House
Harbour Walk
The Marina
Hartlepool
Teesside
TS24 0UX

23 September 2024
Page 7

 
AKV CLADDING PRODUCTS LIMITED
 
 
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2023

2023
2022
Note
£
£

  

Turnover
 4 
16,351,089
17,983,585

Cost of sales
  
(11,807,740)
(12,977,857)

GROSS PROFIT
  
4,543,349
5,005,728

Administrative expenses
  
(2,623,133)
(2,786,609)

OPERATING PROFIT
 5 
1,920,216
2,219,119

Income from shares in group undertakings
  
380,000
360,000

Interest receivable and similar income
 9 
7,969
2,965

Interest payable and similar expenses
 10 
(22,662)
(16,466)

PROFIT BEFORE TAX
  
2,285,523
2,565,618

Tax on profit
 11 
(498,821)
(389,000)

PROFIT FOR THE FINANCIAL YEAR
  
1,786,702
2,176,618

There were no recognised gains and losses for 2023 or 2022 other than those included in the statement of comprehensive income.

There was no other comprehensive income for 2023 (2022:£NIL).

The notes on pages 11 to 23 form part of these financial statements.

Page 8

 
AKV CLADDING PRODUCTS LIMITED
REGISTERED NUMBER: 07683788

BALANCE SHEET
AS AT 31 DECEMBER 2023

2023
2022
Note
£
£

FIXED ASSETS
  

Tangible assets
 13 
91,065
-

Investments
 14 
100
100

  
91,165
100

CURRENT ASSETS
  

Stocks
 15 
545,714
589,249

Debtors: amounts falling due within one year
 16 
3,662,231
4,353,059

Cash at bank and in hand
 17 
904,350
1,159,708

  
5,112,295
6,102,016

Creditors: amounts falling due within one year
 18 
(4,057,582)
(4,764,915)

NET CURRENT ASSETS
  
 
 
1,054,713
 
 
1,337,101

TOTAL ASSETS LESS CURRENT LIABILITIES
  
1,145,878
1,337,201

Creditors: amounts falling due after more than one year
 19 
(24,475)
-

PROVISIONS FOR LIABILITIES
  

Other provisions
 21 
-
(52,500)

NET ASSETS
  
1,121,403
1,284,701


CAPITAL AND RESERVES
  

Called up share capital 
 22 
100
100

Profit and loss account
 23 
1,121,303
1,284,601

  
1,121,403
1,284,701


The financial statements were approved and authorised for issue by the board and were signed on its behalf on 19 September 2024.




K J Everitt
Director

The notes on pages 11 to 23 form part of these financial statements.

Page 9

 
AKV CLADDING PRODUCTS LIMITED
 

STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2023


Called up share capital
Profit and loss account
Total equity

£
£
£

At 1 January 2023
100
1,284,601
1,284,701



Profit for the year
-
1,786,702
1,786,702

Dividends: Equity capital
-
(1,950,000)
(1,950,000)


AT 31 DECEMBER 2023
100
1,121,303
1,121,403



STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2022


Called up share capital
Profit and loss account
Total equity

£
£
£

At 1 January 2022
100
1,897,983
1,898,083



Profit for the year
-
2,176,618
2,176,618

Dividends: Equity capital
-
(2,790,000)
(2,790,000)


AT 31 DECEMBER 2022
100
1,284,601
1,284,701


The notes on pages 11 to 23 form part of these financial statements.

Page 10

 
AKV CLADDING PRODUCTS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

1.


GENERAL INFORMATION

The company is a private company, limited by share capital, incorporated in England and Wales and its registered office is:
AKV Buildings
Hackworth Industrial Park
Byerley Road
Shildon
Co Durham
DL4 1HF
The ultimate parent company is AKV Group Ltd.

2.ACCOUNTING POLICIES

 
2.1

Basis of preparation of financial statements

The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and the Companies Act 2006.

The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires management to exercise judgement in applying the company's accounting policies (see note 3).

The following principal accounting policies have been applied:

 
2.2

Financial reporting standard 102 - reduced disclosure exemptions

The company has taken advantage of the following disclosure exemptions in preparing these financial statements, as permitted by the FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland":
the requirements of Section 7 Statement of Cash Flows;
the requirements of Section 3 Financial Statement Presentation paragraph 3.17(d).

This information is included in the consolidated financial statements of AKV Group Ltd as at 31 December 2023 and these financial statements may be obtained from Companies House.

 
2.3

Going concern

The directors, having made due and careful enquiry and preparing forecasts, are of the opinion that the company has, with the support of the invoice factoring arrangement and significant cash reserves, adequate working capital to execute its operations over the next 12 months. 
The directors, therefore, have made an informed judgement, at the time of approving the financial statements, that there is reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. As a result the directors have continued to adopt the going concern basis of accounting in preparing the annual financial statements.

Page 11

 
AKV CLADDING PRODUCTS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

2.ACCOUNTING POLICIES (CONTINUED)

  
2.4

Revenue

Revenue, which represents the sale of industrial roofing and architectural cladding ancilliaries, is recognised to the extent that it is probable that the economic benefits will flow to the company and the revenue can be reliably measured. Revenue is measured as the fair value of the consideration received or receivable, excluding discounts and value added tax. The following criteria must also be met before revenue is recognised:
Revenue from the sale of goods is recognised when all of the following conditions are satisfied:

the company has transferred the significant risks and rewards of ownership to the buyer;
the company retains neither continuing managerial involvement to the degree usually associated with ownership nor effective control over the goods sold;
the amount of revenue can be measured reliably;
it is probable that the company will receive the consideration due under the transaction; and
the costs incurred or to be incurred in respect of the transaction can be measured reliably.

 
2.5

Tangible fixed assets

Tangible fixed assets under the cost model are stated at historical cost less accumulated depreciation and any accumulated impairment losses. Historical cost includes expenditure that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management.

Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives.

Depreciation is provided on the following basis:

Plant & machinery
-
20%
reducing balance & 5 - 10 years straight line
Motor vehicles
-
25%
reducing balance
Fixtures & fittings
-
20%
reducing balance
Office equipment
-
20%
reducing balance & 3 - 5 years straight line

 
2.6

Valuation of investments

Investments in subsidiaries are measured at cost less accumulated impairment.

  
2.7

Stocks

Stocks are stated at the lower of cost and net realisable value. Cost is based on the cost of purchase on a first in, first out basis. Work in progress and finished goods include labour and attributable overheads.
At each balance sheet date, stocks and work in progress are assessed for impairment. If stock and work in progress is impaired, the carrying amount is reduced to its selling price less costs to complete and sell. The impairment loss is recognised immediately in profit or loss.

Page 12

 
AKV CLADDING PRODUCTS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

2.ACCOUNTING POLICIES (CONTINUED)

 
2.8

Debtors

Short-term debtors are measured at transaction price, less any impairment. Loans receivable are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method, less any impairment.

 
2.9

Cash and cash equivalents

Cash is represented by cash in hand and deposits.
The company obtains finance in respect of its trade debtors under an invoice discounting agreement. This is regarded as a financing arrangement only, and the gross amount of the factored trade debtors is included in debtors with any advances received against these debts being included in other creditors. 

 
2.10

Financial instruments

The company only enters into basic financial instrument transactions that result in the recognition of financial assets and liabilities like trade and other debtors and creditors, and loans from related parties. 

 
2.11

Creditors

Short-term creditors are measured at the transaction price. Other financial liabilities, including bank loans, are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method.

  
2.12

Provisions for liabilities

Provisions are made where an event has taken place that gives the group a legal or constructive obligation that probably requires settlement by a transfer of economic benefit, and a reliable estimate can be made of the amount of the obligation. 
Provisions are charged as an expense to profit or loss in the year that the group becomes aware of the obligation, and are measured at the best estimate at the balance sheet date of the expenditure required to settle the obligation, taking into account relevant risks and uncertainties. 
When payments are eventually made, they are charged to the provision carried in the balance sheet.
 Increases in provisions are generally charged as an expense to profit or loss.

 
2.13

Taxation

Tax is recognised in profit or loss except that a charge attributable to an item of income and expense recognised as other comprehensive income or to an item recognised directly in equity is also recognised in other comprehensive income or directly in equity respectively.

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

Page 13

 
AKV CLADDING PRODUCTS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

3.



JUDGEMENTS IN APPLYING ACCOUNTING POLICIES AND KEY SOURCES OF ESTIMATION UNCERTAINTY

The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the amounts reported. These estimates and judgements are continually reviewed and are based on experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.
The financial statements incorporate an obsolete stock and work in progress provision (Note 6). This provision exists to recognise the possibility of over-ordering, leading to potential write-offs when materials remain unused and the costs associated with un-invoiced jobs.
Also included in the financial statements is a remedial provision (note 20). 


4.


TURNOVER

The whole of the turnover is attributable to the design, manufacture, and supply of industrial roofing and architectural cladding ancilliaries.

All turnover arose within the United Kingdom.


5.


OPERATING PROFIT

The operating profit is stated after charging:

2023
2022
£
£

Research & development charged as an expense
-
150,000

Exchange differences
6,902
9,033

Other operating lease rentals
436,000
431,795


6.


AUDITORS' REMUNERATION

During the year, the company obtained the following services from the company's auditors:


2023
2022
£
£

Fees payable to the company's auditors for the audit of the company's financial statements
8,400
7,970

The company has taken advantage of the exemption not to disclose amounts paid for non-audit services as these are disclosed in the consolidated accounts of the parent company.

Page 14

 
AKV CLADDING PRODUCTS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

7.


EMPLOYEES

Staff costs, including directors' remuneration, were as follows:


2023
2022
£
£

Wages and salaries
2,832,030
2,658,884

Social security costs
304,410
287,774

Cost of defined contribution scheme
61,893
63,472

3,198,333
3,010,130


The average monthly number of employees, including the directors, during the year was as follows:


        2023
        2022
            No.
            No.







Production
52
51



Admin and directors
17
21

69
72


8.


DIRECTORS' REMUNERATION

2023
2022
£
£

Directors' emoluments
184,029
209,708

Company contributions to defined contribution pension schemes
3,126
3,940

187,155
213,648


During the year retirement benefits were accruing to 3 directors (2022 - 3) in respect of defined contribution pension schemes.

The value of the company's contributions paid to a defined contribution pension scheme in respect of the highest paid director amounted to £1,316 (2022 - £1,313).

Page 15

 
AKV CLADDING PRODUCTS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

9.


INTEREST RECEIVABLE

2023
2022
£
£


Other interest receivable
7,969
2,965

7,969
2,965


10.


INTEREST PAYABLE AND SIMILAR EXPENSES

2023
2022
£
£


Bank interest payable
2,915
16,466

Finance leases and hire purchase contracts
100
-

Interest payable on tax
19,647
-

22,662
16,466


11.


TAXATION


2023
2022
£
£

Corporation tax


Current tax on profits for the year
445,308
389,000

Adjustments in respect of previous periods
53,513
-


Total current tax
498,821
389,000
Page 16

 
AKV CLADDING PRODUCTS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
 
11.TAXATION (CONTINUED)


Factors affecting tax charge for the year

The tax assessed for the year is lower than (2022 - lower than) the standard rate of corporation tax in the UK of 23.5% (2022 - 19%). The differences are explained below:

2023
2022
£
£


Profit on ordinary activities before tax
2,305,170
2,565,618


Profit on ordinary activities multiplied by standard rate of corporation tax in the UK of 23.5% (2022 - 19%)
542,189
487,467

Effects of:


Expenses not deductible for tax purposes, other than goodwill amortisation and impairment
13,917
4,327

Capital allowances for year in excess of depreciation
(21,419)
-

Adjustments to tax charge in respect of prior periods
53,512
-

Adjustment in research and development tax credit leading to an increase (decrease) in the tax charge
-
(28,500)

Dividends from UK companies
(89,378)
(68,400)

Over stated tax charge
-
(5,894)

Total tax charge for the year
498,821
389,000


Factors that may affect future tax charges

There were no factors that may affect future tax charges.


12.


DIVIDENDS

2023
2022
£
£


Dividends
1,950,000
2,790,000

1,950,000
2,790,000

Page 17

 
AKV CLADDING PRODUCTS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

13.


TANGIBLE FIXED ASSETS





Motor vehicles

£



Cost


Additions
91,065



At 31 December 2023

91,065






Net book value



At 31 December 2023
91,065



At 31 December 2022
-

The net book value of assets held under finance leases or hire purchase contracts, included above, are as follows:


2023
2022
£
£



Motor vehicles
91,065
-

91,065
-


14.


FIXED ASSET INVESTMENTS





Investments in subsidiary companies

£



Cost


At 1 January 2023
100



At 31 December 2023
100




Page 18

 
AKV CLADDING PRODUCTS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

SUBSIDIARY UNDERTAKING


The following was a subsidiary undertaking of the company:

Name

Registered office

Class of shares

Holding

AKV Architectural Facades Limited
AKV Buildings Hackworth Industrial Park
Byerley Road
Shildon
 Co Durham
 DL4 1HF
£ Ordinary
100


15.


STOCKS

2023
2022
£
£

Raw materials and consumables
374,425
501,871

Work in progress (goods to be sold)
171,289
87,378

545,714
589,249


The carrying value of stocks and work in progress are stated net of impairment losses totalling £85,000 (2022: £208,078).
Impairment (gains)/losses totalling £(123,078) (
2022: £123,223) were recognised in profit and loss.

Page 19

 
AKV CLADDING PRODUCTS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

16.


DEBTORS

2023
2022
£
£


Trade debtors
3,257,843
3,601,424

Amounts owed by group undertakings
259,659
657,406

Other debtors
27,104
40,551

Prepayments and accrued income
117,625
53,678

3,662,231
4,353,059


Included in trade debtors is £3,158,824 (2022: £3,617,769) which relates to debts under an invoice discounting arrangement.


17.


CASH AND CASH EQUIVALENTS

2023
2022
£
£

Cash at bank and in hand
904,350
1,159,708

904,350
1,159,708



18.


CREDITORS: Amounts falling due within one year

2023
2022
£
£

Bank loan
-
284,822

Trade creditors
2,788,991
3,245,828

Amounts owed to group undertakings
378,826
343,206

Corporation tax
328,808
360,792

Other taxation and social security
143,309
150,195

Obligations under finance lease and hire purchase contracts
13,251
-

Other creditors
253,146
70,890

Accruals and deferred income
151,251
309,182

4,057,582
4,764,915


Page 20

 
AKV CLADDING PRODUCTS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

19.


CREDITORS: Amounts falling due after more than one year

2023
2022
£
£

Net obligations under finance leases and hire purchase contracts
24,475
-

24,475
-



20.


FINANCIAL INSTRUMENTS

2023
2022
£
£

Financial assets


Financial assets measured at fair value through profit or loss
904,350
1,159,708

Financial assets that are debt instruments measured at amortised cost
3,544,606
4,299,381

4,448,956
5,459,089


Financial liabilities


Financial liabilities measured at amortised cost
(3,733,602)
(4,404,123)


Financial assets measured at fair value through profit or loss comprise of cash and cash equivalents.


Financial assets that are debt instruments measured at amortised cost comprise of trade debtors, other debtors and amounts due from group undertakings.


Financial liabilities measured at amortised cost comprise of loans, trade creditors, accruals and deferred income, other creditors, amonts due from group undertakings and PAYE & VAT.

Page 21

 
AKV CLADDING PRODUCTS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

21.


PROVISIONS


Remedial reserve

£





At 1 January 2023
52,500


Utilised in year
(52,500)



At 31 December 2023
-

The remedial provision represented the estimated costs in respect of a specific contract. 
In the year ended 31st December 2023, the provision has been fully utilised. There are no further costs expected at this time. 


22.


SHARE CAPITAL

2023
2022
£
£
Allotted, called up and fully paid



100 (2022 - 100) Ordinary shares of £1.00 each
100
100



23.


RESERVES

Profit & loss account

The profit and loss account represents accumulated profits less dividends paid.


24.


CONTINGENT LIABILITIES

A composite guarantee exists between all the group companies to Santander UK plc ("the lender").
In relation to the above obligation, AKV Cladding Products Limited has a debenture over all of its assets and undertakings.


25.


PENSION COMMITMENTS

Included within other creditors is an amount of £24,981 (1 January 2023: £26,667) in relation to pension contributions.

Page 22

 
AKV CLADDING PRODUCTS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

26.


COMMITMENTS UNDER OPERATING LEASES

At 31 December 2023 the company had future minimum lease payments due under non-cancellable operating leases for each of the following periods:

2023
2022
£
£


Not later than 1 year
27,008
41,336

Later than 1 year and not later than 5 years
6,896
33,905

33,904
75,241


27.


RELATED PARTY TRANSACTIONS

During the year the company paid management charges of £653,765 to a company in which 2 directors have an interest. At 31 December 2023 £9,834 (1 January 2023: £7,400) was due from and £208,518 (1 January 2023: £164,737) was due to companies in which 2 directors have an interest.


28.


CONTROLLING PARTY

The ultimate parent company is AKV Group Ltd (address: The Old Forge Site, Hackworth Industrial
Park, Byerley Road, Shildon, Co Durham, DL4 1HF) a company incorporated in England and Wales. 
The consolidated accounts for the group are publicly available from Companies House, Crown Way, Maindy, Cardiff.

 
Page 23