Korda Developments Limited
Annual Report and Financial Statements
For the year ended 31 December 2023
Company Registration No. 04336137 (England and Wales)
Korda Developments Limited
Company Information
Directors
D Fairbrass
D Clarke
T Dove
N Spooner
A Rooney
T Pashley
(Appointed 18 July 2023)
Secretary
T Dye
(Appointed 24 April 2024)
Company number
04336137
Registered office
Orbital House
20 Eastern Road
Romford
Essex
RM1 3PJ
Auditors
Moore Kingston Smith LLP
Orbital House
20 Eastern Road
Romford
Essex
RM1 3PJ
Business address
Kazoku House
Honywood Road
Basildon
Essex
United Kingdom
SS14 3DS
Korda Developments Limited
Contents
Page
Strategic report
1 - 2
Directors' report
3 - 4
Independent auditor's report
5 - 9
Statement of comprehensive income
10
Balance sheet
11
Statement of changes in equity
12
Statement of cash flows
13
Notes to the financial statements
14 - 28
Korda Developments Limited
Strategic Report
For the year ended 31 December 2023
Page 1

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

Fair review of the business

The principal activity of the company continued to be the manufacture and development of specialist carp fishing tackle.

 

The company distributes its goods through retailers in the UK, as well as to U.S.A, South Africa and Japan. Our sister company, Korda Europe BV located in Holland, distributes to the rest of Western Europe, Russia and some Eastern European countries.

 

Continuing from the end of 2022 and the overstock position carrying forward into 2023, we had a period of tight cash flow through Q1/Q2. With focused attention on marketing activities ensuring anglers got out on the bank and fishing through that first six months of the year and hugely positive effect on sales. We worked closely with retailers and by the end of 2023 had managed our over stock position back down to the correct level without the need to dump or heavily discount.

Principal risks and uncertainties

Exchange rates are still our main concern currently. Given the current economic uncertainty, the value of the Pound is having a major impact on our margins. These issues compounded with the rate of inflation, ongoing elevated shipping costs and rising labour costs in China are pushing all prices, both goods in and out, to ever increasing levels each year.

 

Going concern

The directors believe that preparing the financial statements on the going concern basis is appropriate due to the continued success of the company’s operations and its now strong cash position.

 

Future developments

The company will continue to innovate and develop product across both Korda and all associated brands. Our future growth will focus on complimentary business acquisitions to bolster our strength in the marketplace.

 

We will also consider business to consumer platforms, notably for clothing. Our range consists of many products that are not been sold or stocked by many retailers. It's our belief to move forward with a sustainable clothing brand we need B2C development.

Carp Porter development has taken far longer than anticipated due to the total redesign of all aspects of the product range. Notably, electronics and drive controls which have been designed, developed, and manufactured within the UK. This business was acquired with already strong B2C sales which continue. We have new ranges expected to drop in the Spring of 2025.

 

In general Korda, Guru and Carp Porter continue to be market leading brands. As such, we rely heavily on the influence and experience of the directors and associated professional anglers for product design and development. This has been and always will be a priority for the company. By our very nature, we are competitive and are always looking for improvements to all aspects of angling.

 

Objectives and policies

The company is exposed to a variety of financial risks. The company's overall risk management programme seeks to minimise potential risks for the company. The board reviews and agrees policies for managing risks. The most important components of financial risk affecting the company are as follows:

 

Market Risk

The angling market is very stable with huge participation in this country and around Europe. Our brands in particular focus on the most popular styles and techniques associated with fishing for carp across the UK and Western Europe. We would consider any risks to our market very low.

Korda Developments Limited
Strategic Report (Continued)
For the year ended 31 December 2023
Page 2

Environmental risk

We endeavour to update and maintain sustainable packaging and manufacturing methods. The company was and still is one of the largest lead weight suppliers in the UK and EU. We continue to work and are developing non lead alternatives that will be cost effective and sustainable in price to make them a serious alternative to well established lead components that are readily available from retailers and anglers who can easily manufacture at home.

 

Exchange rate risk

The company deals with multiple suppliers who transact in US Dollars. We therefore actively participate in hedging our exposure, in order to minimise any potential negative movements in the exchange rates.

 

Price risk

Manufacturing costs are forever increasing in Asia, China’s push to make suppliers far more environmentally aware and the closure of many small companies has pushed prices up. The small margins that a lot of Chinese companies work on are unsustainable and so we believe price increases will continue to be a regular issue.

On the flip side, anglers still need the consumable products that we sell. Our investment in stock and the fact that our purchasing is so large with our manufacturers. This combined with solid relationships forged over many years of purchasing goods from the same manufacturers means we are able to negotiate and manage the purchase prices and manage this at source.

 

Liquidity risk

The company continues to trade from cash generated from its ongoing activities. Other long-term liabilities due from related parties are reviewed regularly to ensure that the company’s operations are not jeopardised.

 

Credit risk

The credit rating of our customer base is monitored regularly, and provisions are made for doubtful debts where necessary.

Key performance indicators

The company has defined its key performance indicators to align performance and accountability to its strategic plan. The key focus of KPI's is on a number of financial and operational performance measures, designed to ensure that the strategy successfully ensures that the business continues to thrive.

 

2023      2022

Gross profit margin     28.6% 34.3%

Wages as % of turnover     15.6% 18.7%

 

The reasons for the changes in KPIs are set out in the fair review of the business.

 

On behalf of the board

D Clarke
Director
20 September 2024
Korda Developments Limited
Directors' Report
For the year ended 31 December 2023
Page 3

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

Results and dividends

The results for the year are set out on page 10.

Ordinary dividends were paid amounting to £nil (2022: £50,000). The directors do not recommend payment of a dividend.

Directors

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

D Fairbrass
D Clarke
T Dove
N Spooner
A Rooney
T Pashley
(Appointed 18 July 2023)
Research and development

The company and its associated brands are well known for reliable and innovative developments in fishing tackle. To understand the passion that goes into our products you need to understand that the company is managed by anglers and so the product that we design are generally designed or developed to solve problems or issues within their own angling. This is one of our strongest areas.

 

Over the next 3 – 5 years it is our intention to move forward and outside of our normal product categories. For sustained growth, investment in design and CAD staff, electronic engineers, carbon expertise and company acquisitions to develop new areas are very much on our agenda.

Auditor
The auditor, Moore Kingston Smith LLP, are deemed to be reappointed under section 487(2) of the Companies Act 2006.
Korda Developments Limited
Directors' Report (Continued)
For the year ended 31 December 2023
Page 4
Statement of directors' responsibilities

The directors are responsible for preparing the annual 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 United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). 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:

 

 

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

Matters included in the strategic report

The company has chosen in accordance with Companies Act 2006, s. 414C(11) to set out in the company's strategic report information required by Large and Medium-sized Companies and Groups (Accounts and Reports) Regulations 2008, Sch. 7 to be contained in the directors' report. It has done so in respect of risk management and future developments.

Statement of disclosure to auditor

So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the company’s auditor is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the company’s auditor is aware of that information.

On behalf of the board
D Clarke
Director
20 September 2024
Korda Developments Limited
Independent Auditor's Report
To the Members of Korda Developments Limited
Page 5
Opinion

We have audited the financial statements of Korda Developments 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, the Statement of Cash Flows and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including FRS 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

 

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

 

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

Other information

The other information comprises the information included in the annual report, other than the financial statements and our auditor's report thereon. The directors are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

 

Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

 

We have nothing to report in this regard.

Korda Developments Limited
Independent Auditor's Report (Continued)
To the Members of Korda Developments Limited
Page 6

Opinions on other matters prescribed by the Companies Act 2006

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

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:

 

Responsibilities of directors

As explained more fully in the Directors' Responsibilities Statement, 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.

Korda Developments Limited
Independent Auditor's Report (Continued)
To the Members of Korda Developments Limited
Page 7
Auditor's responsibilities for the audit of the financial statements

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

 

As part of an audit in accordance with ISAs (UK) we exercise professional judgement and maintain professional scepticism throughout the audit. We also:

 

 

We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.

 

 

Korda Developments Limited
Independent Auditor's Report (Continued)
To the Members of Korda Developments Limited
Page 8

Explanation as to what extent the audit was considered capable of detecting irregularities, including fraud

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, 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.

The objectives of our audit in respect of fraud, are; to identify and assess the risks of material misstatement of the financial statements due to fraud; to obtain sufficient appropriate audit evidence regarding the assessed risks of material misstatement due to fraud, through designing and implementing appropriate responses to those assessed risks; and to respond appropriately to instances of fraud or suspected fraud identified during the audit. However, the primary responsibility for the prevention and detection of fraud rests with both management and those charged with governance of the company.

Our approach was as follows:

 

 

There are inherent limitations in the audit procedures described above. We are less likely to become aware of instances of non-compliance with laws and regulations that are not closely related to events and transactions reflected in the financial statements. Also, 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.

Korda Developments Limited
Independent Auditor's Report (Continued)
To the Members of Korda Developments Limited
Page 9
Use of our report

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

Paul Springfield (Senior Statutory Auditor)
for and on behalf of Moore Kingston Smith LLP
23 September 2024
Chartered Accountants
Statutory Auditor
Orbital House
20 Eastern Road
Romford
Essex
RM1 3PJ
Korda Developments Limited
Statement of Comprehensive Income
For the year ended 31 December 2023
Page 10
2023
2022
Notes
£
£
Turnover
3
33,581,756
29,754,398
Cost of sales
(23,992,480)
(19,537,411)
Gross profit
9,589,276
10,216,987
Administrative expenses
(6,781,984)
(7,821,858)
Operating profit
4
2,807,292
2,395,129
Interest receivable and similar income
8
125,477
11,488,990
Interest payable and similar expenses
9
(361,813)
(107,342)
Fair value gains and losses
10
-
(200)
Loan write off
11
(308,854)
(7,000,000)
Profit before taxation
2,262,102
6,776,577
Tax on profit
12
(783,195)
(384,680)
Profit for the financial year
1,478,907
6,391,897

The profit and loss account has been prepared on the basis that all operations are continuing operations.

Korda Developments Limited
Balance Sheet
As at 31 December 2023
Page 11
2023
2022
Notes
£
£
£
£
Fixed assets
Goodwill
14
1,708,333
2,208,333
Other intangible assets
14
-
0
-
0
Tangible assets
15
1,655,839
1,664,400
Investments
16
-
0
-
0
3,364,172
3,872,733
Current assets
Stock
17
15,929,851
23,531,483
Debtors
19
12,745,904
17,268,079
Cash at bank and in hand
7,003,877
394,424
35,679,632
41,193,986
Creditors: amounts falling due within one year
20
(6,730,074)
(12,802,636)
Net current assets
28,949,558
28,391,350
Total assets less current liabilities
32,313,730
32,264,083
Creditors: amounts falling due after more than one year
21
(750,000)
(2,250,000)
Provisions for liabilities
Provisions
23
(300,000)
(250,000)
Deferred tax liability
24
(280,807)
(260,067)
(580,807)
(510,067)
Net assets
30,982,923
29,504,016
Capital and reserves
Called up share capital
26
10,637
10,637
Profit and loss reserves
30,972,286
29,493,379
Total equity
30,982,923
29,504,016
The financial statements were approved by the board of directors and authorised for issue on 20 September 2024 and are signed on its behalf by:
D Fairbrass
Director
Company Registration No. 04336137
Korda Developments Limited
Statement of Changes in Equity
For the year ended 31 December 2023
Page 12
Share capital
Profit and loss reserves
Total
Notes
£
£
£
Balance at 1 January 2022
10,437
23,151,482
23,161,919
Year ended 31 December 2022:
Profit and total comprehensive income for the year
-
6,391,897
6,391,897
Issue of share capital
26
200
-
200
Dividends
13
-
(50,000)
(50,000)
Balance at 31 December 2022
10,637
29,493,379
29,504,016
Year ended 31 December 2023:
Profit and total comprehensive income for the year
-
1,478,907
1,478,907
Balance at 31 December 2023
10,637
30,972,286
30,982,923
Korda Developments Limited
Statement of Cash Flows
For the year ended 31 December 2023
Page 13
2023
2022
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from/(absorbed by) operations
32
9,228,360
(2,861,907)
Interest paid
(360,800)
(53,600)
Income taxes paid
(989,000)
(318,422)
Net cash inflow/(outflow) from operating activities
7,878,560
(3,233,929)
Investing activities
Purchase of intangible assets
-
0
(2,500,000)
Purchase of tangible fixed assets
(263,806)
(239,597)
Proceeds on disposal of tangible fixed assets
500
-
0
Interest received
111,944
782
Net cash used in investing activities
(151,362)
(2,738,815)
Financing activities
Issue of loans to related parties
(308,854)
(750,771)
Proceeds of new loans
-
5,894,222
Repayment of borrowing
(808,891)
-
Proceeds from loan repayments
-
820,001
Dividends paid
-
0
(50,000)
Net cash (used in)/generated from financing activities
(1,117,745)
5,913,452
Net increase/(decrease) in cash and cash equivalents
6,609,453
(59,292)
Cash and cash equivalents at beginning of year
394,424
453,716
Cash and cash equivalents at end of year
7,003,877
394,424
Korda Developments Limited
Notes to the Financial Statements
For the year ended 31 December 2023
Page 14
1
Accounting policies
Company information

Korda Developments Limited is a company limited by shares incorporated in England and Wales. The registered office is Orbital House, 20 Eastern Road, Romford, Essex, RM1 3PJ and its business address is Kazoku House, Honywood Road, Basildon, Essex, SS14 3DS.

1.1
Accounting convention

These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.

The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.

The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.

1.2
Going concern

At the time of approving the financial statements, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable futurtruee and for at least a period of twelve months following the approval of these financial statements. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.

1.3
Turnover

Turnover from the sale of goods represents amounts receivable for the sale of specialist fishing tackle and equipment, net of VAT and trade discounts. Income is recognised when the goods are dispatched, and a right to income arises.

 

Turnover from the rendering of services represents amounts receivable for the production of fishing television programmes. Income is recognised when the programmes are aired, and a right to income arises.

1.4
Intangible fixed assets - goodwill

Goodwill represents the excess of the cost of acquisition of the trade assets of a business over the fair value of net assets acquired. It is initially recognised as an asset at cost and is subsequently measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is considered to have a finite useful life and is amortised on a systematic basis over its expected life, which is 5 years.

 

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

1.5
Intangible assets - Patents

Patents are valued at cost less accumulated amortisation. Amortisation is calculated to write off the cost in equal annual instalments over their estimated useful lives of 5 years.

Korda Developments Limited
Notes to the Financial Statements (Continued)
For the year ended 31 December 2023
1
Accounting policies
(Continued)
Page 15
1.6
Tangible fixed assets

Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.

Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

Leasehold improvements - Kazoku House
15 years straight line
Plant and machinery
25% reducing balance
Motor vehicles
25% reducing balance

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is credited or charged to the profit and loss account.

1.7
Stock

Stock is stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stock to its present location and condition.

Net realisable value is the estimated selling price less all estimated costs of completion and costs to be incurred in marketing, selling and distribution.

1.8
Stock  provision

For each line of stock, a provision is made where the net reisable value is less than cost. Net realisable value is the estimated selling price for stocks less all estimated costs of completion and costs necessary to make the sale. The estimated selling price for each stock line is a judgement based mainly on recent selling patterns for that product.

1.9
Cash and cash equivalents

Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

1.10
Financial instruments

The Company only has basic financial instruments measured at amortised cost, with no financial instruments classified as other or basic instruments measured at fair value.

1.11
Taxation

The tax expense represents the sum of the tax currently payable and deferred tax.

Current tax

The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.

Korda Developments Limited
Notes to the Financial Statements (Continued)
For the year ended 31 December 2023
1
Accounting policies
(Continued)
Page 16
Deferred tax

Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.

 

The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account.

1.12
Provisions

Provisions are recognised when the company has a legal or constructive present obligation as a result of a past event, it is probable that the company will be required to settle that obligation and a reliable estimate can be made of the amount of the obligation.

 

The amount recognised as a provision is the best estimate of the consideration required to settle the present obligation at the reporting end date, taking into account the risks and uncertainties surrounding the obligation. Where the effect of the time value of money is material, the amount expected to be required to settle the obligation is recognised at present value. When a provision is measured at present value, the unwinding of the discount is recognised as a finance cost in profit or loss in the period in which it arises.

1.13
Retirement benefits
The company operates a defined contribution scheme for the benefit of its employees. Contributions payable are charged to the profit and loss account in the year they are payable.
1.14
Leases

Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leases asset are consumed.

1.15
Foreign exchange

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

1.16

Research and development

Research and development expenditure is written off to the profit and loss account in the year in which it is incurred.

 

Development expenditure incurred on an individual project is carried forward when its future recoverability can be foreseen with reasonable assurance. Any expenditure carried forward is amortised in line with the sales received from the related project.

Korda Developments Limited
Notes to the Financial Statements (Continued)
For the year ended 31 December 2023
Page 17
2
Judgements and key sources of estimation uncertainty

In the application of the company’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

 

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised, if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods.

Key sources of estimation uncertainty

The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are as follows.

Useful economic lives of tangible fixed assets

The annual depreciation charge for property, plant and equipment is sensitive to changes in the estimated useful economic lives and residual values of the assets. The useful economic lives and residual values are re-assessed annually. They are amended when necessary to reflect current estimates, based on technological advancement, future investments, economic utilisation and the physical condition of the assets. See note 15 for the carrying amount of the property, plant and equipment and note 1.6 for the useful economic lives for each class of asset.

Useful economic lives of intangible fixed assets

The annual amortisation charge for intangible assets is sensitive to changes in the estimated lives and residual values of the assets. The useful economic lives and residual values are re-assessed annually. Goodwill impairment reviews are also performed annually. These reviews require an estimation of the value in use of the cash generating units to which goodwill has been allocated. The value in use calculation requires the entity to estimate the future cash flows expected to arise for the cash generating unit and a suitable discount rate to calculate present value. See note 14 for the carrying amount of the intangible assets and notes 1.4 and 1.5 for the useful economic lives for each class of asset.

Stock Provision

For each line of stock, a provision is made where the net realisable value is less than cost. Net realisable value is the estimated selling price for stocks less all estimated costs of completion and costs necessary to make the sale. The estimated selling price for each stock line is a judgement based mainly on recent selling patterns for that product.

Debtors Provision

The company makes an estimate of the recoverable value of trade and other debtors. When assessing impairment of trade and other debtors, management considers factors including the current credit rating of the debtor, the ageing profile of debtors and historical experience. See note 19 for the net carrying amount of the debtors and associated impairment provision.

Korda Developments Limited
Notes to the Financial Statements (Continued)
For the year ended 31 December 2023
Page 18
3
Turnover and other revenue

An analysis of the company's turnover is as follows:

2023
2022
£
£
Turnover analysed by class of business
Sale of goods
33,280,115
29,558,715
Television production services
301,641
195,683
33,581,756
29,754,398
2023
2022
£
£
Turnover analysed by geographical market
UK sales
22,914,067
19,048,362
European sales
10,485,204
10,543,681
Other region sales
182,485
162,355
33,581,756
29,754,398
2023
2022
£
£
Other significant revenue
Interest income
125,477
14,601
Dividends received
-
11,474,389
4
Operating profit
2023
2022
£
£
Operating profit for the year is stated after charging/(crediting):
Exchange gains
(47,858)
(586,983)
Depreciation of owned tangible fixed assets
271,802
274,165
Loss on disposal of tangible fixed assets
65
24,025
Amortisation of intangible assets
500,000
291,667
Operating lease charges
724,756
797,795
Korda Developments Limited
Notes to the Financial Statements (Continued)
For the year ended 31 December 2023
Page 19
5
Auditor's remuneration
2023
2022
Fees payable to the company's auditor and associates:
£
£
For audit services
Audit of the financial statements of the company
43,500
52,500
For other services
All other non-audit services
39,430
11,680
6
Employees

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

2023
2022
Number
Number
Sales and marketing
44
47
Warehouse and dispatch
30
32
Admin and finance
20
15
Product development
25
33
119
127

Their aggregate remuneration comprised:

2023
2022
£
£
Wages and salaries
5,236,359
5,557,487
Social security costs
583,683
691,296
Pension costs
228,446
211,715
6,048,488
6,460,498
7
Directors' remuneration
2023
2022
£
£
Remuneration for qualifying services
1,413,324
1,706,220
Korda Developments Limited
Notes to the Financial Statements (Continued)
For the year ended 31 December 2023
7
Directors' remuneration
(Continued)
Page 20
Remuneration disclosed above include the following amounts paid to the highest paid director:
2023
2022
£
£
Remuneration for qualifying services
402,158
804,366

The remuneration of key management personnel during the year amounted to £1,881,669 (2022: £2,680,626).

8
Interest receivable and similar income
2023
2022
£
£
Interest income
Interest on bank deposits
111,944
782
Other interest income
13,533
13,819
Total interest revenue
125,477
14,601
Other income from investments
Dividends received
-
0
11,474,389
125,477
11,488,990
9
Interest payable and similar expenses
2023
2022
£
£
Interest on financial liabilities measured at amortised cost:
Interest on bank overdrafts and loans
205,521
49,993
Other interest on financial liabilities
156,292
57,349
361,813
107,342
10
Fair value gains and losses
2023
2022
£
£
Other gains and losses
-
(200)
11
Exceptional item

The loan write off relates to a provision made against a loan balance to a related party.

Korda Developments Limited
Notes to the Financial Statements (Continued)
For the year ended 31 December 2023
Page 21
12
Taxation
2023
2022
£
£
Current tax
UK corporation tax on profits for the current period
707,178
365,771
Adjustments in respect of prior periods
55,277
-
0
Total current tax
762,455
365,771
Deferred tax
Origination and reversal of timing differences
20,740
18,909
Total tax charge
783,195
384,680

The actual charge for the year can be reconciled to the expected charge for the year based on the profit or loss and the standard rate of tax as follows:

2023
2022
£
£
Profit before taxation
2,262,102
6,776,577
Expected tax charge based on the applicable rate of corporation tax in the UK of 23.52% (2022: 19.00%)
532,046
1,287,550
Tax effect of expenses that are not deductible in determining taxable profit
190,352
1,355,578
Tax effect of income not taxable in determining taxable profit
-
0
(2,180,134)
Adjustments in respect of prior years
55,277
-
0
Permanent capital allowances in excess of depreciation
1,227
9,685
Depreciation on assets not qualifying for tax allowances
4,293
5,184
Research and development tax credit
-
0
(80,000)
Capital allowances - super deduction
-
0
(13,183)
Taxation charge for the year
783,195
384,680

On 1 April 2023, the standard rate of corporation tax in the UK changed from 19% to 25%. For the year ended 31 December 2023, this gives rise to an applicable rate of corporation tax of 23.52%.

13
Dividends
2023
2022
£
£
Final paid
-
0
50,000
Korda Developments Limited
Notes to the Financial Statements (Continued)
For the year ended 31 December 2023
Page 22
14
Intangible fixed assets
Goodwill
Patents
Total
£
£
£
Cost
At 1 January 2023
2,500,000
17,000
2,517,000
Disposals
-
0
(17,000)
(17,000)
At 31 December 2023
2,500,000
-
0
2,500,000
Amortisation and impairment
At 1 January 2023
291,667
17,000
308,667
Amortisation charged for the year
500,000
-
0
500,000
Disposals
-
0
(17,000)
(17,000)
At 31 December 2023
791,667
-
0
791,667
Carrying amount
At 31 December 2023
1,708,333
-
0
1,708,333
At 31 December 2022
2,208,333
-
0
2,208,333

During the prior year, the company purchased and trade and assets of a company in the same industry, including trademarks and patents held by the former company.

15
Tangible fixed assets
Leasehold improvements
Plant and machinery
Motor vehicles
Total
£
£
£
£
Cost
At 1 January 2023
1,843,132
1,277,036
59,389
3,179,557
Additions
75,945
138,386
49,475
263,806
Disposals
-
0
(1,005)
-
0
(1,005)
At 31 December 2023
1,919,077
1,414,417
108,864
3,442,358
Depreciation and impairment
At 1 January 2023
714,350
755,283
45,524
1,515,157
Depreciation charged in the year
122,709
144,454
4,639
271,802
Eliminated in respect of disposals
-
0
(440)
-
0
(440)
At 31 December 2023
837,059
899,297
50,163
1,786,519
Carrying amount
At 31 December 2023
1,082,018
515,120
58,701
1,655,839
At 31 December 2022
1,128,782
521,753
13,865
1,664,400
Korda Developments Limited
Notes to the Financial Statements (Continued)
For the year ended 31 December 2023
Page 23
16
Subsidiaries

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

Name of undertaking
Registered office
Nature of business
Class of
% Held
shares held
Direct
Tackle Guru Limited
England & Wales
Dormant
Ordinary
100.00
17
Stock
2023
2022
£
£
Finished goods and raw materials
15,929,851
23,531,483
18
Financial instruments
2023
2022
£
£
Carrying amount of financial assets
Debt instruments measured at amortised cost
12,377,127
17,147,166
Carrying amount of financial liabilities
Measured at amortised cost
7,011,042
14,448,480
19
Debtors
2023
2022
Amounts falling due within one year:
£
£
Trade debtors
8,281,523
8,011,921
Corporation tax recoverable
14,426
14,426
Other debtors
3,391,914
8,430,471
Prepayments and accrued income
354,351
106,487
12,042,214
16,563,305
2023
2022
Amounts falling due after more than one year:
£
£
Other debtors
703,690
704,774
Total debtors
12,745,904
17,268,079

Trade debtors disclosed above are measured at amortised cost.

Korda Developments Limited
Notes to the Financial Statements (Continued)
For the year ended 31 December 2023
Page 24
20
Creditors: amounts falling due within one year
2023
2022
Notes
£
£
Bank loans
22
1,500,000
750,000
Trade creditors
1,226,790
2,184,529
Corporation tax
158,272
383,804
Other taxation and social security
310,760
220,352
Other creditors
2,954,541
3,015,468
Accruals and deferred income
579,711
6,248,483
6,730,074
12,802,636
21
Creditors: amounts falling due after more than one year
2023
2022
£
£
Bank loans and overdrafts
22
750,000
2,250,000

Since the balance sheet date, the full loan balance including the element due in greater than one year has been fully repaid, ahead of the agreed loan terms.

22
Loans and overdrafts
2023
2022
£
£
Bank loans
2,250,000
3,000,000
Payable within one year
1,500,000
750,000
Payable after one year
750,000
2,250,000

Coutts & Company hold a fixed and floating charge with negative pledge over freehold and leasehold property and intellectual property rights. The loan has an interest rate of 2.75% above base rate. The loan is repayable in installments with a maturity date of 31 August 2025.

23
Provisions for liabilities
2023
2022
£
£
Dilapidations provision
300,000
250,000
Korda Developments Limited
Notes to the Financial Statements (Continued)
For the year ended 31 December 2023
23
Provisions for liabilities
(Continued)
Page 25
Movements on provisions:
Dilapidations provision
£
At 1 January 2023
250,000
Additional provisions in the year
50,000
At 31 December 2023
300,000
24
Deferred taxation

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

Liabilities
Liabilities
2023
2022
£
£
Accelerated capital allowances
280,807
260,067
2023
Movements in the year:
£
Liability at 1 January 2023
260,067
Charge to profit and loss account
20,740
Liability at 31 December 2023
280,807
25
Retirement benefit schemes
2023
2022
Defined contribution schemes
£
£
Charge to the profit or loss account in respect of defined contribution schemes
228,446
211,715

The company operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the company in an independently administered fund.

 

At the year end there were unpaid pension contributions of £31,762 (2022: £33,798).

Korda Developments Limited
Notes to the Financial Statements (Continued)
For the year ended 31 December 2023
Page 26
26
Share capital
2023
2022
£
£
Ordinary share capital
Issued and fully paid
50,000 Ordinary A shares of 1p each
500
500
10,000 Ordinary B shares of 1p each
100
100
43,677 Ordinary D shares of 1p each
437
437
960,000 Ordinary E shares of 1p each
9,600
9,600
10,637
10,637

All ordinary shares have full voting and capital distribution rights. The shares rank pari passu in all respects.

27
Financial commitments, guarantees and contingent liabilities

There is a fixed and floating charge in favour of the bank, held over all the property and assets of the company.

 

There is a cross guarantee, in favour of the bank, between Korda Developments Limited, Tackle Guru Limited, Gigantica Carp Limited, Embryo Angling Habitats Limited and Carpfest Limited. The facility in use at the year end was £nil (2022: £nil).

 

 

28
Operating leases commitments
Lessee

At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:

2023
2022
£
£
Within one year
737,173
722,869
Between two and five years
2,373,940
2,401,023
In over five years
1,181,556
1,748,703
4,292,669
4,872,595
Korda Developments Limited
Notes to the Financial Statements (Continued)
For the year ended 31 December 2023
Page 27
29
Related party transactions

The following entities are related by virtue of common control: Gigantica Carp Limited, Gigantica Carp SARL, Carpfest Limited, Korda Europe BV, Korda Holdings BV and Embryo Angling Habitats Limited. Tackle Guru Limited is a wholly owned subsidiary and the company has taken the exemption available to not disclose transactions with 100% owned subsidiaries.

 

At the year end included in debtors is an amount of £150,554 (2022: £109,508) owed by Gigantica Carp Limited. No interest is being charged on this loan. During the year, the company made sales of £55,408 (2022: £44,258) to Gigantica Carp Limited.

 

At the year end included in debtors is a net amount of £76,308 (2022: £79,454) owed by Gigantica Carp SARL. During the year, the company made sales of £79,488 (2022 : £76,454) and purchases of £8,280 (2022: £nil) from Gigantica Carp SARL.

 

During the year the company made sales of £11,625,228 (2022: £10,551,144) to Korda Europe BV and purchases of £228,980 (2022: £317,132) from Korda Europe BV. At the balance sheet date, the company was owed £6,173,757 (2022: £6,352,849) by Korda Europe BV.

 

At the balance sheet date, the company was owed £703,690 (2022: £707,774) by Korda Holdings BV.

 

During the year the company made sales of £386,525 (2022: £314,283) to and purchases of £3,763 (2022: £7,552) from Embryo Angling Habitats Limited. At the balance sheet date the company was owed a net amount of £3,190,565 (2022: £3,208,504) by Embryo Angling Habitats Limited.

 

 

30
Directors' transactions

Included within other creditors is an amount of £2,922,779 (2022: £2,981,890) due to D Fairbrass. Interest of £139,764 (2022: £53,742) was charged to the company on this balance.

Included in other debtors is an amount of £nil (2022: £220) owed by D Clarke. Interest of £nil (2022: £nil) was charged on this balance during the year.

31
Ultimate controlling party

D Fairbrass is considered to be the controlling party by virtue of his majority shareholding.

Korda Developments Limited
Notes to the Financial Statements (Continued)
For the year ended 31 December 2023
Page 28
32
Cash generated from/(absorbed by) operations
2023
2022
£
£
Profit for the year after tax
1,478,907
6,391,897
Adjustments for:
Taxation charged
783,195
384,680
Finance costs
361,813
107,342
Investment income
(125,477)
(11,488,990)
Loss on disposal of tangible fixed assets
65
24,025
Loan write off
308,854
7,000,000
Amortisation and impairment of intangible assets
500,000
291,667
Depreciation and impairment of tangible fixed assets
271,802
274,165
Other gains and losses
-
200
Increase in provisions
50,000
50,000
Movements in working capital:
Decrease/(increase) in stock
7,601,632
(12,735,415)
Decrease in debtors
4,535,708
2,467,123
(Decrease)/increase in creditors
(6,538,139)
4,371,399
Cash generated from/(absorbed by) operations
9,228,360
(2,861,907)
33
Analysis of changes in net funds/(debt)
1 January 2023
Cash flows
31 December 2023
£
£
£
Cash at bank and in hand
394,424
6,609,453
7,003,877
Borrowings excluding overdrafts
(3,000,000)
750,000
(2,250,000)
(2,605,576)
7,359,453
4,753,877
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