Caseware UK (AP4) 2023.0.135 2023.0.135 2023-12-312023-12-312023-12-3131163false2023-01-01falseholding company3falsefalse 09540612 2023-01-01 2023-12-31 09540612 2022-01-01 2022-12-31 09540612 2023-12-31 09540612 2022-12-31 09540612 2022-01-01 09540612 c:Director1 2023-01-01 2023-12-31 09540612 c:Director2 2023-01-01 2023-12-31 09540612 c:Director3 2023-01-01 2023-12-31 09540612 c:RegisteredOffice 2023-01-01 2023-12-31 09540612 d:Buildings d:LongLeaseholdAssets 2023-01-01 2023-12-31 09540612 d:Buildings d:LongLeaseholdAssets 2023-12-31 09540612 d:Buildings d:LongLeaseholdAssets 2022-12-31 09540612 d:PlantMachinery 2023-01-01 2023-12-31 09540612 d:PlantMachinery 2023-12-31 09540612 d:PlantMachinery 2022-12-31 09540612 d:PlantMachinery d:OwnedOrFreeholdAssets 2023-01-01 2023-12-31 09540612 d:PlantMachinery d:LeasedAssetsHeldAsLessee 2023-01-01 2023-12-31 09540612 d:MotorVehicles 2023-01-01 2023-12-31 09540612 d:MotorVehicles 2023-12-31 09540612 d:MotorVehicles 2022-12-31 09540612 d:MotorVehicles d:OwnedOrFreeholdAssets 2023-01-01 2023-12-31 09540612 d:MotorVehicles d:LeasedAssetsHeldAsLessee 2023-01-01 2023-12-31 09540612 d:FurnitureFittings 2023-01-01 2023-12-31 09540612 d:FurnitureFittings 2023-12-31 09540612 d:FurnitureFittings 2022-12-31 09540612 d:FurnitureFittings d:OwnedOrFreeholdAssets 2023-01-01 2023-12-31 09540612 d:FurnitureFittings d:LeasedAssetsHeldAsLessee 2023-01-01 2023-12-31 09540612 d:OwnedOrFreeholdAssets 2023-01-01 2023-12-31 09540612 d:LeasedAssetsHeldAsLessee 2023-01-01 2023-12-31 09540612 d:Goodwill 2023-01-01 2023-12-31 09540612 d:CurrentFinancialInstruments 2023-12-31 09540612 d:CurrentFinancialInstruments 2022-12-31 09540612 d:Non-currentFinancialInstruments 2023-12-31 09540612 d:Non-currentFinancialInstruments 2022-12-31 09540612 d:CurrentFinancialInstruments d:WithinOneYear 2023-12-31 09540612 d:CurrentFinancialInstruments d:WithinOneYear 2022-12-31 09540612 d:Non-currentFinancialInstruments d:AfterOneYear 2023-12-31 09540612 d:Non-currentFinancialInstruments d:AfterOneYear 2022-12-31 09540612 d:Non-currentFinancialInstruments d:BetweenOneTwoYears 2023-12-31 09540612 d:Non-currentFinancialInstruments d:BetweenOneTwoYears 2022-12-31 09540612 d:Non-currentFinancialInstruments d:BetweenTwoFiveYears 2023-12-31 09540612 d:Non-currentFinancialInstruments d:BetweenTwoFiveYears 2022-12-31 09540612 d:ShareCapital 2023-12-31 09540612 d:ShareCapital 2022-12-31 09540612 d:ShareCapital 2022-01-01 09540612 d:RetainedEarningsAccumulatedLosses 2023-01-01 2023-12-31 09540612 d:RetainedEarningsAccumulatedLosses 2023-12-31 09540612 d:RetainedEarningsAccumulatedLosses 2022-01-01 2022-12-31 09540612 d:RetainedEarningsAccumulatedLosses 2022-12-31 09540612 d:RetainedEarningsAccumulatedLosses 2022-01-01 09540612 d:FinancialAssetsDesignatedFairValueThroughProfitOrLoss 2023-12-31 09540612 d:FinancialAssetsDesignatedFairValueThroughProfitOrLoss 2022-12-31 09540612 d:FinancialLiabilitiesFairValueThroughProfitOrLoss d:ListedExchangeTraded 2023-12-31 09540612 d:FinancialLiabilitiesFairValueThroughProfitOrLoss d:ListedExchangeTraded 2022-12-31 09540612 d:AcceleratedTaxDepreciationDeferredTax 2023-12-31 09540612 d:AcceleratedTaxDepreciationDeferredTax 2022-12-31 09540612 c:OrdinaryShareClass1 2023-01-01 2023-12-31 09540612 c:OrdinaryShareClass1 2023-12-31 09540612 c:OrdinaryShareClass1 2022-12-31 09540612 c:OrdinaryShareClass2 2023-01-01 2023-12-31 09540612 c:OrdinaryShareClass2 2023-12-31 09540612 c:OrdinaryShareClass2 2022-12-31 09540612 c:OrdinaryShareClass3 2023-01-01 2023-12-31 09540612 c:OrdinaryShareClass3 2023-12-31 09540612 c:OrdinaryShareClass3 2022-12-31 09540612 c:OrdinaryShareClass4 2023-01-01 2023-12-31 09540612 c:OrdinaryShareClass4 2023-12-31 09540612 c:OrdinaryShareClass4 2022-12-31 09540612 c:OrdinaryShareClass5 2023-01-01 2023-12-31 09540612 c:OrdinaryShareClass5 2023-12-31 09540612 c:OrdinaryShareClass5 2022-12-31 09540612 c:FRS102 2023-01-01 2023-12-31 09540612 c:Audited 2023-01-01 2023-12-31 09540612 c:FullAccounts 2023-01-01 2023-12-31 09540612 c:PrivateLimitedCompanyLtd 2023-01-01 2023-12-31 09540612 d:Subsidiary1 2023-01-01 2023-12-31 09540612 d:Subsidiary2 2023-01-01 2023-12-31 09540612 d:Subsidiary2 1 2023-01-01 2023-12-31 09540612 d:HirePurchaseContracts d:WithinOneYear 2023-12-31 09540612 d:HirePurchaseContracts d:WithinOneYear 2022-12-31 09540612 d:HirePurchaseContracts d:BetweenOneFiveYears 2023-12-31 09540612 d:HirePurchaseContracts d:BetweenOneFiveYears 2022-12-31 09540612 c:Consolidated 2023-12-31 09540612 c:ConsolidatedGroupCompanyAccounts 2023-01-01 2023-12-31 09540612 4 2023-01-01 2023-12-31 09540612 6 2023-01-01 2023-12-31 09540612 e:PoundSterling 2023-01-01 2023-12-31 xbrli:shares iso4217:GBP xbrli:pure

Registered number: 09540612










AKV GROUP LTD










ANNUAL REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2023

 
AKV GROUP LTD
 
 
COMPANY INFORMATION


DIRECTORS
K M Everitt 
K J Everitt 
L Hammond 




REGISTERED NUMBER
09540612



REGISTERED OFFICE
The Old Forge Site Hackworth Industrial Park
Byerley Road

Shildon

Co. Durham

United Kingdom

DL4 1HF




INDEPENDENT AUDITORS
Waltons Business Advisers Limited
Chartered Accountants & Statutory Auditors

Maritime House

The Marina

Hartlepool

Teesside

TS24 0UX





 
AKV GROUP LTD
 

CONTENTS



Page
Directors' report
1 - 2
Group strategic report
3
Independent auditors' report
4 - 7
Consolidated profit and loss account
8
Consolidated balance sheet
9 - 10
Company balance sheet
11
Consolidated statement of changes in equity
12
Company statement of changes in equity
13
Consolidated statement of cash flows
14 - 15
Consolidated analysis of net debt
16
Notes to the financial statements
17 - 38


 
AKV GROUP LTD
 
 
 
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 group strategic report, the directors' report and the consolidated 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 the Group and of the profit or loss of the Group for that period.

 In preparing these financial statements, the directors are required to:


select suitable accounting policies for the Group'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 Group 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 the Group 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 the Group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

RESULTS AND DIVIDENDS

The profit for the year, after taxation, amounted to £1,556,356 (2022 - £2,025,920).

Dividends of £345,246 were paid in the year.

DIRECTORS

The directors who served during the year were:

K M Everitt 
K J Everitt 
L Hammond 

FUTURE DEVELOPMENTS

The board consider the group 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.

Page 1

 
AKV GROUP LTD
 
 
 
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023

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 our group, and of its customers.

MATTERS COVERED IN THE STRATEGIC REPORT

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

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 and the Group'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 and the Group'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 GROUP LTD
 
 
GROUP 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 improved its gross margin from 28.3% to 31.6%, albeit on a reduced turnover of 9.5% 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 of 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:
ole4621.png


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


K J Everitt
Director

Date: 19 September 2024

Page 3

 
AKV GROUP LTD
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF AKV GROUP LTD
 

UNQUALIFIED OPINION


We have audited the financial statements of AKV Group LTD (the 'parent company') and its subsidiaries (the 'Group') for the year ended 31 December 2023, which comprise the consolidated profit and loss account, the Consolidated Balance Sheet, the Company Balance Sheet, the Consolidated Statement of Cash Flows, the Consolidated Statement of Changes in Equity, the Company 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 Group's and of the parent company's affairs as at 31 December 2023 and of the Group's 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 Group 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 Group's or the parent company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.


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


Page 4

 
AKV GROUP LTD
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF AKV GROUP LTD (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 group 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 group 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 Group and the parent company and its environment obtained in the course of the audit, we have not identified material misstatements in the group 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 by the parent company, or returns adequate for our audit have not been received from branches not visited by us; or
the parent company 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 Group's and the parent company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the Group or the parent company or to cease operations, or have no realistic alternative but to do so.


Page 5

 
AKV GROUP LTD
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF AKV GROUP LTD (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 Group 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 group and 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 GROUP LTD
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF AKV GROUP LTD (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
The Marina
Hartlepool
Teesside
TS24 0UX

23 September 2024
Page 7

 
AKV GROUP LTD
 
 
CONSOLIDATED PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 31 DECEMBER 2023

2023
2022
Note
£
£

  

Turnover
 4 
18,747,620
21,200,252

Cost of sales
  
(12,885,152)
(15,191,473)

GROSS PROFIT
  
5,862,468
6,008,779

Administrative expenses
  
(3,288,668)
(3,039,055)

Exceptional administrative expenses
  
(385,374)
(385,374)

OPERATING PROFIT
 5 
2,188,426
2,584,350

Interest receivable and similar income
 9 
152,050
28,167

Interest payable and similar expenses
 10 
(30,721)
(82,149)

PROFIT BEFORE TAX
  
2,309,755
2,530,368

Tax on profit
 11 
(753,399)
(504,448)

PROFIT FOR THE FINANCIAL YEAR
  
1,556,356
2,025,920

PROFIT FOR THE YEAR ATTRIBUTABLE TO:
  

Owners of the parent
  
1,556,356
2,025,920

  
1,556,356
2,025,920

There are no items of other comprehensive income for 2023 or 2022 other than the profit for the yearAs a result, no separate Statement of Comprehensive Income has been presented.

The notes on pages 17 to 38 form part of these financial statements.

Page 8

 
AKV GROUP LTD
REGISTERED NUMBER: 09540612

CONSOLIDATED BALANCE SHEET
AS AT 31 DECEMBER 2023

2023
2022
Note
£
£

FIXED ASSETS
  

Intangible assets
 14 
574,252
959,626

Tangible assets
 15 
823,218
846,293

Investment property
 17 
2,300,000
2,300,000

  
3,697,470
4,105,919

CURRENT ASSETS
  

Stocks
 18 
674,595
828,321

Debtors: amounts falling due within one year
 19 
3,705,537
4,426,645

Cash at bank and in hand
 20 
6,726,879
6,789,742

  
11,107,011
12,044,708

Creditors: amounts falling due within one year
 21 
(4,427,072)
(6,107,722)

NET CURRENT ASSETS
  
 
 
6,679,939
 
 
5,936,986

TOTAL ASSETS LESS CURRENT LIABILITIES
  
10,377,409
10,042,905

Creditors: amounts falling due after more than one year
 22 
(27,475)
(875,000)

PROVISIONS FOR LIABILITIES
  

Deferred taxation
 26 
(188,419)
(165,000)

Other provisions
 27 
(25,000)
(77,500)

  
 
 
(213,419)
 
 
(242,500)

NET ASSETS
  
10,136,515
8,925,405


CAPITAL AND RESERVES
  

Called up share capital 
 28 
1,442,000
1,442,000

Profit and loss account
 29 
8,694,515
7,483,405

  
10,136,515
8,925,405


Page 9

 
AKV GROUP LTD
REGISTERED NUMBER: 09540612
    
CONSOLIDATED BALANCE SHEET (CONTINUED)
AS AT 31 DECEMBER 2023

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 17 to 38 form part of these financial statements.

Page 10

 
AKV GROUP LTD
REGISTERED NUMBER: 09540612

COMPANY BALANCE SHEET
AS AT 31 DECEMBER 2023

2023
2022
Note
£
£

FIXED ASSETS
  

Tangible assets
 15 
732,153
846,293

Investments
 16 
4,639,080
4,639,080

Investment property
 17 
2,300,000
2,300,000

  
7,671,233
7,785,373

CURRENT ASSETS
  

Debtors: amounts falling due within one year
 19 
578,457
556,486

Cash at bank and in hand
 20 
5,573,802
5,532,844

  
6,152,259
6,089,330

Creditors: amounts falling due within one year
 21 
(566,903)
(1,528,016)

NET CURRENT ASSETS
  
 
 
5,585,356
 
 
4,561,314

TOTAL ASSETS LESS CURRENT LIABILITIES
  
13,256,589
12,346,687

  

Creditors: amounts falling due after more than one year
 22 
(3,000)
(875,000)

PROVISIONS FOR LIABILITIES
  

Deferred taxation
 26 
(188,419)
(165,000)

NET ASSETS
  
13,065,170
11,306,687


CAPITAL AND RESERVES
  

Called up share capital 
 28 
1,442,000
1,442,000

Profit and loss account brought forward
  
9,864,687
7,402,618

Profit for the year
  
2,103,729
3,059,569

Dividends

 12 

(345,246)
(597,500)

Profit and loss account carried forward
  
11,623,170
9,864,687

  
13,065,170
11,306,687


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 17 to 38 form part of these financial statements.

Page 11

 
AKV GROUP LTD
 

CONSOLIDATED 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
1,442,000
7,483,405
8,925,405



Profit for the year
-
1,556,356
1,556,356

Dividends: Equity capital
-
(345,246)
(345,246)


AT 31 DECEMBER 2023
1,442,000
8,694,515
10,136,515



CONSOLIDATED 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
1,442,000
6,054,985
7,496,985



Profit for the year
-
2,025,920
2,025,920

Dividends: Equity capital
-
(597,500)
(597,500)


AT 31 DECEMBER 2022
1,442,000
7,483,405
8,925,405


The notes on pages 17 to 38 form part of these financial statements.

Page 12

 
AKV GROUP LTD
 

COMPANY 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
1,442,000
9,864,687
11,306,687



Profit for the year
-
2,103,729
2,103,729

Dividends: Equity capital
-
(345,246)
(345,246)


AT 31 DECEMBER 2023
1,442,000
11,623,170
13,065,170



COMPANY 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
1,442,000
7,402,618
8,844,618



Profit for the year
-
3,059,569
3,059,569

Dividends: Equity capital
-
(597,500)
(597,500)


AT 31 DECEMBER 2022
1,442,000
9,864,687
11,306,687


The notes on pages 17 to 38 form part of these financial statements.

Page 13

 
AKV GROUP LTD
 

CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2023

2023
2022
£
£

CASH FLOWS FROM OPERATING ACTIVITIES

PROFIT FOR THE FINANCIAL YEAR
1,556,356
2,025,920

ADJUSTMENTS FOR:

Amortisation of intangible assets
385,374
385,374

Depreciation of tangible assets
215,782
224,720

Loss on disposal of tangible assets
(6,617)
-

Interest paid
30,721
82,149

Interest received
(152,050)
(28,167)

Taxation charge
753,399
504,448

Decrease in stocks
153,726
580,444

Decrease in debtors
721,108
204,102

(Decrease)/increase in creditors
(1,161,140)
48,692

(Decrease) in provisions
(52,500)
(52,500)

Corporation tax (paid)
(704,801)
(444,610)

NET CASH GENERATED FROM OPERATING ACTIVITIES

1,739,358
3,530,572


CASH FLOWS FROM INVESTING ACTIVITIES

Purchase of tangible fixed assets
(167,640)
(15,238)

Sale of tangible fixed assets
22,600
-

Interest received
152,050
28,167

HP interest paid
(4,933)
(10,395)

NET CASH FROM INVESTING ACTIVITIES

2,077
2,534

CASH FLOWS FROM FINANCING ACTIVITIES

Repayment of loans
(1,293,989)
(149,170)

Repayment of/new finance leases
(139,275)
(158,013)

Dividends paid
(345,246)
(597,500)

Interest paid
(25,788)
(71,754)

NET CASH USED IN FINANCING ACTIVITIES
(1,804,298)
(976,437)

(DECREASE)/INCREASE IN CASH AND CASH EQUIVALENTS
(62,863)
2,556,669
Page 14

 
AKV GROUP LTD
 

CONSOLIDATED STATEMENT OF CASH FLOWS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023


2023
2022

£
£



Cash and cash equivalents at beginning of year
6,789,742
4,233,073

CASH AND CASH EQUIVALENTS AT THE END OF YEAR
6,726,879
6,789,742


CASH AND CASH EQUIVALENTS AT THE END OF YEAR COMPRISE:

Cash at bank and in hand
6,726,879
6,789,742

6,726,879
6,789,742


The notes on pages 17 to 38 form part of these financial statements.

Page 15

 
AKV GROUP LTD
 

CONSOLIDATED ANALYSIS OF NET DEBT
FOR THE YEAR ENDED 31 DECEMBER 2023




At 1 January 2023
Cash flows
At 31 December 2023
£

£

£

Cash at bank and in hand

6,789,742

(62,863)

6,726,879

Debt due after 1 year

(875,000)

875,000

-

Debt due within 1 year

(534,336)

466,812

(67,524)

Finance leases

(184,872)

98,225

(86,647)


5,195,534
1,377,174
6,572,708

The notes on pages 17 to 38 form part of these financial statements.

Page 16

 
AKV GROUP LTD
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

1.


GENERAL INFORMATION

The company is a private limited by share capital, incorporated in England and Wales, and the registered office is:
The Old Forge Site Hackworth Industrial Park
Byerley Road
Shildon
Co. Durham
United Kingdom
DL4 1HF

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 Group management to exercise judgement in applying the Group's accounting policies (see note 3).

The company has taken advantage of the exemption allowed under section 408 of the Companies Act 2006 and has not presented its own profit and loss account in these financial statements.

The following principal accounting policies have been applied:

 
2.2

Basis of consolidation

The consolidated financial statements present the results of the company and its own subsidiaries ("the group") as if they form a single entity. Intercompany transactions and balances between group companies are therefore eliminated in full.
The consolidated financial statements incorporate the results of business combinations using the purchase method. In the balance sheet, the acquiree's identifiable assets, liabilities and contingent liabilities are initially recognised at their fair values at the acquisition date. The results of acquired operations are included in the consolidated profit and loss account from the date on which control is obtained. They are deconsolidated from the date control ceases.

 
2.3

Going concern

The directors, having made due and careful enquiry, are of the opinion that the group has, with the support of the invoice factoring arrangement, adequate working capital to execute its operations over the next 12 months. In addition to this, the Everitt family jointly own 100% of the share capital on a separate group of companies with significant cash reserves and very little commitment to costs.
The directors, therefore, have made an informed judgement, at the time of approving the financial statements, that there is reasonable expectation that the group 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 17

 
AKV GROUP LTD
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

2.ACCOUNTING POLICIES (CONTINUED)

 
2.4

Revenue

Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Group and the revenue can be reliably measured. Revenue is measured as the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. The following criteria must also be met before revenue is recognised:

Sale of goods

Revenue from the sale of goods is recognised when all of the following conditions are satisfied:
the Group has transferred the significant risks and rewards of ownership to the buyer;
the Group 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 Group 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.

Rendering of services

Revenue from a contract to provide services is recognised in the period in which the services are provided in accordance with the stage of completion of the contract when all of the following conditions are satisfied:
the amount of revenue can be measured reliably;
it is probable that the Group will receive the consideration due under the contract;
the stage of completion of the contract at the end of the reporting period can be measured reliably; and
the costs incurred and the costs to complete the contract can be measured reliably.

Page 18

 
AKV GROUP LTD
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

2.ACCOUNTING POLICIES (CONTINUED)

 
2.5

Current and deferred taxation

The tax expense for the year comprises current and deferred tax. 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 and the Group operate and generate income.

Deferred tax balances are recognised in respect of all timing differences that have originated but not reversed by the balance sheet date, except that:
The recognition of deferred tax assets is limited to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits;
Any deferred tax balances are reversed if and when all conditions for retaining associated tax allowances have been met; and
Where they relate to timing differences in respect of interests in subsidiaries, associates, branches and joint ventures and the Group can control the reversal of the timing differences and such reversal is not considered probable in the foreseeable future.

Deferred tax balances are not recognised in respect of permanent differences except in respect of business combinations, when deferred tax is recognised on the differences between the fair values of assets acquired and the future tax deductions available for them and the differences between the fair values of liabilities acquired and the amount that will be assessed for tax. Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the balance sheet date.

 
2.6

Exceptional items

Exceptional items are transactions that fall within the ordinary activities of the Group but are presented separately due to their size or incidence.

 
2.7

Intangible assets

Goodwill

Goodwill represents the difference between amounts paid on the cost of a business combination and the acquirer’s interest in the fair value of the Group's share of its identifiable assets and liabilities of the acquiree at the date of acquisition. Subsequent to initial recognition, goodwill is measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is amortised on a straight-line basis to the consolidated profit and loss account over its useful economic life of 10 years.




Page 19

 
AKV GROUP LTD
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

2.ACCOUNTING POLICIES (CONTINUED)

 
2.8

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, using the straight-line method.

Depreciation is provided on the following basis:

Long-term leasehold property
-
2%
to 33% on cost.
Plant and machinery
-
10%
to 25% on cost. 20% reducing balance.
Motor vehicles
-
20%
to 25% on cost. 25% reducing balance.
Fixtures and fittings
-
20%
to 30% on cost. 20% reducing balance.

The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.

Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in profit or loss.

 
2.9

Investment property

Investment property is carried at fair value which has been determined by the directors based on a professional valuation carried out in 2020. No depreciation is provided. Changes in fair value are recognised in profit or loss. 

 
2.10

Valuation of investments

Investments in subsidiaries are measured at cost less accumulated impairment.

 
2.11

Stocks

Stocks are stated at the lower of cost and net realisable value, being the estimated selling price less costs to complete and sell. 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 are assessed for impairment. If stock 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.

 
2.12

Invoice discounting

The Group 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. 



Page 20

 
AKV GROUP LTD
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

2.ACCOUNTING POLICIES (CONTINUED)

 
2.13

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.

  
2.14

Financial instruments

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


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.
Included in the financial statements is a remedial provision which represents the estimated costs in respect of a specific contract. The directors expect that the provision will be utilised during the financial year ended 31 December 2024 (note 27).
Included in the financial statements is an obsolete stock and work in progress provision which is based on judgement by the directors (note 18). 
Included in the financial statements is an investment property which is valued at fair value based on the directors assessment. This assessment is considered to reflect the current fair value of the investment property at 31 December 2023 which has not changed since it was valued in 2020 by an independent professional valuer (note 17).

Page 21

 
AKV GROUP LTD
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

4.


TURNOVER

An analysis of turnover by class of business is as follows:


2023
2022
£
£

Sale of cladding
18,747,620
21,200,252

18,747,620
21,200,252


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
8,818
9,856

Other operating lease rentals
-
56,795


6.


AUDITORS' REMUNERATION

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


2023
2022
£
£

Fees payable to the group's auditors for the audit of the consolidated and parent company's financial statements
15,450
13,970


Fees payable to the group's auditors in respect of other services relating to taxation
1,140
1,370

Fees payable to the group's auditors in respect of all other services
5,840
5,825

Page 22

 
AKV GROUP LTD
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

7.


EMPLOYEES

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


Group
Group
2023
2022
£
£


Wages and salaries
2,822,732
2,649,176

Social security costs
304,410
287,774

Cost of defined contribution scheme
61,893
63,472

3,189,035
3,000,422


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



Group
Group
Company
Company
        2023
        2022
        2023
        2022
            No.
            No.
            No.
            No.









Production
52
51
-
-



Administration and directors
18
21
3
3

70
72
3
3


8.


DIRECTORS' REMUNERATION

2023
2022
£
£

Directors' emoluments
22,731
50,000

Group contributions to defined contribution pension schemes
495
1,313

23,226
51,313


During the year retirement benefits were accruing to 1 director (2022 - 1) in respect of defined contribution pension schemes.


9.


INTEREST RECEIVABLE

2023
2022
£
£


Other interest receivable
152,050
28,167

152,050
28,167

Page 23

 
AKV GROUP LTD
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

10.


INTEREST PAYABLE AND SIMILAR EXPENSES

2023
2022
£
£


Bank interest payable
6,141
71,754

Finance leases and hire purchase contracts
4,933
10,395

Other interest payable
19,647
-

30,721
82,149


11.


TAXATION


2023
2022
£
£

Corporation tax


Current tax on profits for the year
673,472
556,221

Adjustments in respect of previous periods
56,508
-


Total current tax
729,980
556,221

Deferred tax


Origination and reversal of timing differences
23,419
(51,773)

Total deferred tax
23,419
(51,773)


Taxation on profit on ordinary activities
753,399
504,448
Page 24

 
AKV GROUP LTD
 
 
 
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 higher than (2022 - higher 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
2,329,402
2,530,368


Profit on ordinary activities multiplied by standard rate of corporation tax in the UK of 23.5% (2022 - 19%)
547,888
480,770

Effects of:


Non-tax deductible amortisation of goodwill and impairment
90,642
73,221

Expenses not deductible for tax purposes, other than goodwill amortisation and impairment
14,760
4,518

Depreciation in excess of Capital allowances for year
20,182
38,881

Short-term timing difference leading to an increase (decrease) in taxation
23,419
(51,773)

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

Under provision of corporation tax charge for the year
-
(12,669)

Adjustment in respect of previous period
56,508
-

Total tax charge for the year
753,399
504,448


Factors that may affect furture tax charges

There were no factors that may affect future tax charges.

Page 25

 
AKV GROUP LTD
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

12.


DIVIDENDS

2023
2022
£
£


A £1 Ordinary shares
101,215
22,500


B £1 Ordinary shares
68,175
15,000


C £1 Ordinary shares
-
200,000


D £1 Ordinary shares
-
200,000


E £1 Ordinary shares
80,623
17,500


F £1 Ordinary shares
9,802
-


G £1 Ordinary shares
85,431
142,500

345,246
597,500


13.


EXCEPTIONAL ITEMS

2023
2022
£
£


Amortisation of goodwill
385,374
385,374

385,374
385,374

Page 26

 
AKV GROUP LTD
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

14.


INTANGIBLE ASSETS

Group and Company





Goodwill

£



Cost


At 1 January 2023
3,853,783



At 31 December 2023

3,853,783



Amortisation


At 1 January 2023
2,894,157


Charge for the year on owned assets
385,374



At 31 December 2023

3,279,531



Net book value



At 31 December 2023
574,252



At 31 December 2022
959,626



Page 27

 
AKV GROUP LTD
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

15.


TANGIBLE FIXED ASSETS

Group






Long-term leasehold property
Plant and machinery
Motor vehicles
Fixtures and fittings
Total

£
£
£
£
£



Cost or valuation


At 1 January 2023
136,810
1,815,545
68,765
160,017
2,181,137


Additions
93,722
23,903
91,065
-
208,690


Disposals
-
-
(47,711)
-
(47,711)



At 31 December 2023

230,532
1,839,448
112,119
160,017
2,342,116



Depreciation


At 1 January 2023
14,490
1,161,231
33,310
125,813
1,334,844


Charge for the year on owned assets
3,116
104,314
3,354
17,322
128,106


Charge for the year on financed assets
-
78,056
9,620
-
87,676


Disposals
-
-
(31,728)
-
(31,728)



At 31 December 2023

17,606
1,343,601
14,556
143,135
1,518,898



Net book value



At 31 December 2023
212,926
495,847
97,563
16,882
823,218



At 31 December 2022
122,320
654,314
35,455
34,204
846,293

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


2023
2022
£
£



Plant and machinery
314,865
392,921

Motor vehicles
91,065
25,603

405,930
418,524

Page 28

 
AKV GROUP LTD
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

Company






Long-term leasehold property
Plant and machinery
Motor vehicles
Fixtures and fittings
Total

£
£
£
£
£

Cost or valuation


At 1 January 2023
136,810
1,815,545
68,765
160,017
2,181,137


Additions
93,722
23,903
-
-
117,625


Disposals
-
-
(47,711)
-
(47,711)



At 31 December 2023

230,532
1,839,448
21,054
160,017
2,251,051



Depreciation


At 1 January 2023
14,490
1,161,231
33,310
125,813
1,334,844


Charge for the year on owned assets
3,116
104,314
3,354
17,322
128,106


Charge for the year on financed assets
-
78,056
9,620
-
87,676


Disposals
-
-
(31,728)
-
(31,728)



At 31 December 2023

17,606
1,343,601
14,556
143,135
1,518,898



Net book value



At 31 December 2023
212,926
495,847
6,498
16,882
732,153



At 31 December 2022
122,320
654,314
35,455
34,204
846,293






Page 29

 
AKV GROUP LTD
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

16.


FIXED ASSET INVESTMENTS

Company





Investments in subsidiary companies

£



Cost 


At 1 January 2023
4,639,080



At 31 December 2023
4,639,080





DIRECT SUBSIDIARY UNDERTAKING


The following was a direct subsidiary undertaking of the company:

Name

Registered office

Class of shares

Holding

AKV Cladding Products Limited
AKV Buildings
Hackworth Industrial Park
Byerley Road
Shildon
Co Durham
DL4 1HF
Ordinary
100%

The aggregate of the share capital and reserves as at 31 December 2023 and the profit or loss for the year ended on that date for the subsidiary undertaking were as follows:

Name
Aggregate of share capital and reserves
Profit/(Loss)

AKV Cladding Products Limited
1,306,050
1,971,349

Page 30

 
AKV GROUP LTD
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

INDIRECT SUBSIDIARY UNDERTAKING


The following was an indirect 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%

The aggregate of the share capital and reserves as at 31 December 2023 and the profit or loss for the year ended on that date for the subsidiary undertaking were as follows:

Name
Aggregate of share capital and reserves
Profit/(Loss)

AKV Architectural Facades Limited
13,907
381,299


17.


INVESTMENT PROPERTY

Group and Company


Freehold investment property

£



Valuation


At 1 January 2023
2,300,000



At 31 December 2023
2,300,000

The 2023 valuations were made by the directors based on an external valuation in 2020, on an open market value for existing use basis.






Page 31

 
AKV GROUP LTD
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

18.


STOCKS

Group
Group
2023
2022
£
£

Raw materials and consumables
492,082
654,905

Work in progress (goods to be sold)
182,513
173,416

674,595
828,321


The carrying value of stocks are stated net of impairment losses totalling £130,000 (2022 - £263,078). Impairment gains totalling  £133,078 (2022 - £158,223) were recognised in profit and loss.


19.


DEBTORS

Group
Group
Company
Company
2023
2022
2023
2022
£
£
£
£


Trade debtors
3,395,387
4,296,507
-
-

Amounts owed by group undertakings
-
-
414,134
520,577

Other debtors
192,525
76,460
164,323
35,909

Prepayments and accrued income
117,625
53,678
-
-

3,705,537
4,426,645
578,457
556,486


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


20.


CASH AND CASH EQUIVALENTS

Group
Group
Company
Company
2023
2022
2023
2022
£
£
£
£

Cash at bank and in hand
6,726,879
6,789,742
5,573,802
5,532,844

6,726,879
6,789,742
5,573,802
5,532,844


Page 32

 
AKV GROUP LTD
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

21.


CREDITORS: Amounts falling due within one year

Group
Group
Company
Company
2023
2022
2023
2022
£
£
£
£

Bank loans
-
418,989
-
134,167

Trade creditors
2,894,008
3,350,912
12,828
-

Amounts owed to group undertakings
-
-
-
177,371

Corporation tax
556,972
531,793
109,873
94,501

Other taxation and social security
405,705
561,275
296,744
411,080

Obligations under finance lease and hire purchase contracts
59,172
184,872
45,921
184,872

Other creditors
321,260
589,515
70,037
519,586

Accruals and deferred income
189,955
470,366
31,500
6,439

4,427,072
6,107,722
566,903
1,528,016





22.


CREDITORS: Amounts falling due after more than one year

Group
Group
Company
Company
2023
2022
2023
2022
£
£
£
£

Bank loans
-
875,000
-
875,000

Net obligations under finance leases and hire purchase contracts
27,475
-
3,000
-

27,475
875,000
3,000
875,000


Details of security provided:
The net obligations under finance leases and hire purchase contracts are secured upon the assets to which they relate.
In relation to the obligations in AKV Cladding Products Limited, the bank has a debenture over all of its assets. 
A composite guarantee exists between all the group companies to Santander UK plc (the "lender").
The balance due under invoice discounting arrangement is secured on the trade debtors to which they relate.



Page 33

 
AKV GROUP LTD
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

23.


LOANS


Analysis of the maturity of loans is given below:


Group
Group
Company
Company
2023
2022
2023
2022
£
£
£
£

Amounts falling due within one year

Bank loans
-
418,989
-
134,167

Amounts falling due 1-2 years

Bank loans
-
100,000
-
100,000

Amounts falling due 2-5 years

Bank loans
-
775,000
-
775,000

-
1,293,989
-
1,009,167



24.


HIRE PURCHASE AND FINANCE LEASES


Minimum lease payments under hire purchase fall due as follows:

Group
Group
Company
Company
2023
2022
2023
2022
£
£
£
£

Within one year
59,271
121,926
45,921
121,926

Between 1-5 years
27,376
62,947
3,000
62,947

86,647
184,873
48,921
184,873

Page 34

 
AKV GROUP LTD
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

25.


FINANCIAL INSTRUMENTS

Group
Group
Company
Company
2023
2022
2023
2022
£
£
£
£

Financial assets

Financial assets measured at fair value through profit or loss
6,726,879
6,789,742
5,573,802
5,532,844

Financial assets that are debt instruments measured at amortised cost
3,587,912
4,372,967
877,176
556,486

10,314,791
11,162,709
6,450,978
6,089,330


Financial liabilities

Financial liabilites measured at amortised cost
(3,877,928)
(6,450,929)
(460,030)
(2,308,515)


Financial assets measured at fair value through profit or loss comprise cash at bank and in hand.


Financial assets that are debt instruments measured at amortised cost comprise trade debtors and other debtors.


Financial liabilities measured at amortised cost comprise bank loans, trade creditors, PAYE and VAT lliaiblites, other creditors, accruals, obligations under finance lease and hire purchase contracts.

Page 35

 
AKV GROUP LTD
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

26.


DEFERRED TAXATION


Group



2023
2022


£

£






At beginning of year
165,000
216,773


Charged to profit or loss
23,419
(51,773)



At end of year
188,419
165,000

Group
Group
Company
Company
2023
2022
2023
2022
£
£
£
£

Accelerated capital allowances
188,419
165,000
188,419
165,000

188,419
165,000
188,419
165,000


27.


PROVISIONS


Group



Remedial reserve

£





At 1 January 2023
77,500


Utilised in year
(52,500)



At 31 December 2023
25,000

The remedial provision represents the estimated costs in respect of a specific contract. The directors expect the provision will be utilised during the financial year ended 31 December 2024.

Page 36

 
AKV GROUP LTD
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

28.


SHARE CAPITAL

2023
2022
£
£
Allotted, called up and fully paid



367,709 (2022 - 367,709) A Ordinary shares of £1.00 each
367,709
367,709
367,709 (2022 - 367,709) B Ordinary shares of £1.00 each
367,709
367,709
1 (2022 - 1) C Ordinary share of £1.00
1
1
1 (2022 - 1) D Ordinary share of £1.00
1
1
259,560 (2022 - 259,560) E Ordinary shares of £1.00 each
259,560
259,560
158,620 (2022 - 158,620) F Ordinary shares of £1.00 each
158,620
158,620
288,400 (2022 - 288,400) G Ordinary shares of £1.00 each
288,400
288,400

1,442,000

1,442,000



29.


RESERVES

Profit and loss account

The profit and loss account represents accumulated profits less losses, dividends and other adjustments.


30.


PENSION COMMITMENTS

The group contributes to a defined contribution pension scheme. The assets of the scheme are held separately from those of the group in an independently administered fund. Contributions totalling £24,981 (2022: £26,667) were payable to the fund at the balance sheet date.


31.


COMMITMENTS UNDER OPERATING LEASES

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


Group
Group
2023
2022
£
£

Not later than 1 year
27,008
41,336

Later than 1 year and not later than 5 years
13,793
33,905

40,801
75,241
Page 37

 
AKV GROUP LTD
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

32.


RELATED PARTY TRANSACTIONS

At 31 December 2023 £67,524 (1 January 2023: £115,346) was due to the directors.
During the year the group paid management charges of £653,765 and recharged costs of £2,417 to a company in which the directors have an interest. At 31 December 2023 £120,969 (
1 January 2023: £43,309) was due from and £49,074 (1 January 2023: £485,948) was due to companies in which the 2 directors have an interest.


33.


CONTROLLING PARTY

The company is controlled by K M Everitt and his wife.

 
Page 38