REGISTERED NUMBER: |
Kellands (Plant Sales) Limited |
Strategic Report, Report of the Directors and |
Audited Financial Statements |
for the Year Ended 31 December 2023 |
REGISTERED NUMBER: |
Kellands (Plant Sales) Limited |
Strategic Report, Report of the Directors and |
Audited Financial Statements |
for the Year Ended 31 December 2023 |
Kellands (Plant Sales) Limited (Registered number: 00479957) |
Contents of the Financial Statements |
for the Year Ended 31 December 2023 |
Page |
Company Information | 1 |
Strategic Report | 2 |
Report of the Directors | 4 |
Report of the Independent Auditors | 6 |
Statement of Comprehensive Income | 10 |
Statement of Financial Position | 11 |
Statement of Changes in Equity | 12 |
Statement of Cash Flows | 13 |
Notes to the Statement of Cash Flows | 14 |
Notes to the Financial Statements | 16 |
Kellands (Plant Sales) Limited |
Company Information |
for the Year Ended 31 December 2023 |
DIRECTORS: |
REGISTERED OFFICE: |
REGISTERED NUMBER: |
AUDITORS: |
Chartered Accountants |
and Statutory Auditor |
4 King Square |
Bridgwater |
Somerset |
TA6 3YF |
BANKERS: |
9 York Buildings |
Cornhill |
Bridgwater |
Somerset |
TA6 3BA |
Kellands (Plant Sales) Limited (Registered number: 00479957) |
Strategic Report |
for the Year Ended 31 December 2023 |
The directors present their strategic report for the year ended 31 December 2023. |
The principal activity of the company for the year under review was the distribution and maintenance of industrial and construction machinery. |
REVIEW OF BUSINESS |
The turnover is significantly lower than the previous year and this is mainly explained by our continued expansion into the South East during the year, but our trading activity in the South East is now reported in the accounts of a fellow subsidiary company, Kellands Plant (SE) Limited. |
The directors remain convinced that we are continuing to build a company that has a firm base from which we can deliver future expansion and profits. All employees and management have worked hard during the year to deliver a profit, and a great deal of credit is due to them all for their continuing support. |
The company continues to invest in cyber security technology and staff training as well as evolving its compliance with GDPR requirements and the continuous improvement of health and safety for staff and customers. |
Financial Performance |
2023 £'000 |
2022 £'000 |
Change £'000 |
% |
Turnover | 27,801 | 33,135 | (5,334) | (16%) |
Gross Profit | 2,437 | 3,256 | (819) | (25%) |
Profit before tax | 136 | 792 | (656) | (83%) |
Strategy |
Going forward we will continue with our plans to increase the number of customers for all of our departments. |
The directors are confident that the company has an excellent range of products, although we are always looking to review and strengthen the product base. |
Turnover |
The decrease in turnover during the year mainly reflects the effect of the re-allocation of the south-east trade. |
Exports are higher than the previous year but the consequences of the UK leaving the European Union are still having an effect. |
Gross profit |
The decrease in gross profit reflects the lower turnover. The overall margin during the year was similar to the previous year because of the mix of sales. |
Operating costs |
Our costs increased during the year reflecting the inflationary climate. The directors are continually reviewing the overheads and monitoring the current economic situation. |
Capital expenditure |
We continue to invest to improve the company. Our main expenditure during the year was updating our motor fleet. |
Performance indicators |
The board of directors monitors key performance indicators in addition to the more traditional financial statements and sales pipeline information that is provided to the board each month. |
Kellands (Plant Sales) Limited (Registered number: 00479957) |
Strategic Report |
for the Year Ended 31 December 2023 |
REVIEW OF BUSINESS (CONTINUED) |
Principal risks |
We recognise that stock valuation and stock turnover are the key to our profitability and management monitors these areas on a regular basis. Our fixed overheads and staffing levels are under constant review to enable us to respond to any downturn or upturn in the market that may require an overhead adjustment. All areas of our business review stock values on a regular basis, and adjustments are and will be made for slow moving and obsolete items. |
PRINCIPAL RISKS AND UNCERTAINTIES |
The company uses various financial instruments. These include loans, cash and various items, such as trade debtors and trade creditors that arise directly from its operations. The main purpose of these financial instruments is to raise finance for the company's operations. |
The existence of these financial instruments exposes the company to a number of financial risks, which are described below in more detail. |
The main risks arising are cash flow interest rate risk, credit risk and liquidity risk. The directors review and agree policies for managing each of these risks and they are summarised below. These policies have remained unchanged from previous years. |
Liquidity risk |
The company seeks to manage financial risk by ensuring sufficient liquidity is available to meet foreseeable needs and to invest cash assets safely and profitably. The maturity of any borrowings is set out in the notes to the financial statements. |
Interest rate risk |
The company finances its operations through a mixture of retained profits and asset finance. The exposure to interest rate fluctuations on borrowings is managed by the use of fixed facilities. |
Credit risk |
The company's principal financial assets are cash and trade debtors. The credit risk associated with cash is limited. The principal credit risk arises therefore from its trade debtors. |
In order to manage credit risk the directors set limits for customers based on a combination of payment history and third party credit references. Credit limits are reviewed by the credit controller on a regular basis in conjunction with debt ageing and collection history. |
Climate sustainability |
As a business supplying and servicing goods for use in the construction industry we feel a need to take actions where possible to reduce our impact on the climate and work towards being a sustainable business. We are using energy efficient boilers for areas where heating is required, and these are regularly serviced. Additionally we have made the business decision that where possible for all packaging and paper materials we will try and purchase recyclable products to reduce the amount of waste going to landfill. |
The directors are constantly working to reduce the company's carbon emissions where possible and this also has an impact on reducing costs which directly affect the companys profitability. |
At 31 December 2023 and 31 December 2022 there was no concentration of credit risk with exposure being spread over a large number of customers. |
ON BEHALF OF THE BOARD: |
Kellands (Plant Sales) Limited (Registered number: 00479957) |
Report of the Directors |
for the Year Ended 31 December 2023 |
The directors present their report with the financial statements of the company for the year ended 31 December 2023. |
PRINCIPAL ACTIVITY |
The principal activity of the company in the year under review was that of the distribution and maintenance of industrial and construction machinery. |
DIVIDENDS |
A dividend of £50,000 was paid on 31 December 2023. This represents a dividend of 50p per share. |
DIRECTORS |
The directors set out in the table below have held office during the whole of the period from 1 January 2023 to the date of this report unless otherwise stated. |
Other changes in directors holding office are as follows: |
The directors shown below were in office at 31 December 2023 but did not hold any interest in the Ordinary shares of £1 each at 1 January 2023 or 31 December 2023. |
STATEMENT OF DIRECTORS' RESPONSIBILITIES |
The directors are responsible for preparing the Strategic Report, the Report of the Directors and the financial statements in accordance with applicable law and regulations. |
Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law), including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'. Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to: |
- | select suitable accounting policies and then apply them consistently; |
- | make judgements and accounting estimates that are reasonable and prudent; |
- | prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business. |
The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company's transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. |
STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS |
So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the company's auditors are unaware, and each director has taken all the steps that he ought to have taken as a director in order to make himself aware of any relevant audit information and to establish that the company's auditors are aware of that information. |
Kellands (Plant Sales) Limited (Registered number: 00479957) |
Report of the Directors |
for the Year Ended 31 December 2023 |
AUDITORS |
The auditors, Maxwells, will be proposed for re-appointment at the forthcoming Annual General Meeting. |
ON BEHALF OF THE BOARD: |
Report of the Independent Auditors to the Members of |
Kellands (Plant Sales) Limited |
Opinion |
We have audited the financial statements of Kellands (Plant Sales) Limited (the 'company') for the year ended 31 December 2023 which comprise the Statement of Comprehensive Income, Statement of Financial Position, Statement of Changes in Equity, Statement of Cash Flows and Notes to the Statement of Cash Flows, Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice). |
In our opinion the financial statements: |
- | give a true and fair view of the state of the company's affairs as at 31 December 2023 and of its profit for the year then ended; |
- | have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and |
- | have been prepared in accordance with the requirements of the Companies Act 2006. |
Basis for opinion |
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. |
Conclusions relating to going concern |
In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate. |
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue. |
Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report. |
Other information |
The directors are responsible for the other information. The other information comprises the information in the Strategic Report and the Report of the Directors, but does not include the financial statements and our Report of the Auditors thereon. |
Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. |
In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard. |
Opinions on other matters prescribed by the Companies Act 2006 |
In our opinion, based on the work undertaken in the course of the audit: |
- | the information given in the Strategic Report and the Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and |
- | the Strategic Report and the Report of the Directors have been prepared in accordance with applicable legal requirements. |
Report of the Independent Auditors to the Members of |
Kellands (Plant Sales) Limited |
Matters on which we are required to report by exception |
In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic Report or the Report of the Directors. |
We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion: |
- | adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or |
- | the financial statements are not in agreement with the accounting records and returns; or |
- | certain disclosures of directors' remuneration specified by law are not made; or |
- | we have not received all the information and explanations we require for our audit. |
Responsibilities of directors |
As explained more fully in the Statement of Directors' Responsibilities set out on page four, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. |
In preparing the financial statements, the directors are responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so. |
Report of the Independent Auditors to the Members of |
Kellands (Plant Sales) Limited |
Auditors' responsibilities for the audit of the financial statements |
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue a Report of the Auditors that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements. |
The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below: |
Identifying and assessing potential risks to irregularities |
In identifying and assessing risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, our procedures included the following: |
- Obtaining an understanding of the nature of the industry and sector in which the business operates and focusing on those laws and regulations that had a direct effect on the financial statements or that had a fundamental effect on the operations of the company. |
- Enquiring of management, including reviewing supporting documentation concerning the company's policies and procedures relating to: |
a) Identifying, evaluating and complying with laws and regulations and whether they were aware of any instances of non-compliance. |
b) Detecting and responding to the risks of fraud and whether they have knowledge of any factual, suspected or alleged fraud. |
c) The internal controls established to mitigate risks related to fraud or non- compliance with laws and regulations |
- Discussing with the audit engagement team regarding how and where fraud might occur in the financial statements and potential indications of fraud. |
Audit response to risks identified |
As a result of performing the above, we did not identify any key audit matters related to the potential risk of fraud or non-compliance with laws and regulations. |
Our procedures to respond to risks identified included the following: |
- Enquiring of management and those charged with governance concerning actual and potential litigation and claims. |
- Reviewing minutes of meetings of those charged with governance and reviewing correspondence with HMRC. |
- Performing analytical review procedures to identify and unusual or unexpected transactions that may indicate risks of material misstatement due to fraud. |
- Reviewing financial statement disclosures and testing to supporting documentation to assess compliance with applicable laws and regulations; and |
- In addressing the risk of fraud through management override of controls, testing the appropriateness of journal entries and other adjustments; assessing whether the judgements made in making accounting estimates are indicative of potential bias; and evaluating the business rationale of significant transactions that are unusual or outside the normal course of business. |
There are inherent limitations in our audit procedures described above. The more removed those laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the directors and other management and the inspection of regulatory and legal correspondence, if any. |
Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion. |
A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Auditors. |
Report of the Independent Auditors to the Members of |
Kellands (Plant Sales) Limited |
Use of our report |
This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in a Report of the Auditors and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's members as a body, for our audit work, for this report, or for the opinions we have formed. |
for and on behalf of |
Chartered Accountants |
and Statutory Auditor |
4 King Square |
Bridgwater |
Somerset |
TA6 3YF |
Kellands (Plant Sales) Limited (Registered number: 00479957) |
Statement of Comprehensive Income |
for the Year Ended 31 December 2023 |
31.12.23 | 31.12.22 |
Notes | £ | £ |
TURNOVER | 4 |
Cost of sales |
GROSS PROFIT |
Administrative expenses |
(12,534 | ) | 778,322 |
Other operating income |
OPERATING PROFIT | 6 |
Interest receivable and similar income |
123,032 | 801,192 |
Interest payable and similar expenses | 7 | ( |
) |
PROFIT BEFORE TAXATION |
Tax on profit | 8 |
PROFIT FOR THE FINANCIAL YEAR |
OTHER COMPREHENSIVE (LOSS)/INCOME |
Pension scheme actuarial adjustments | ( |
) |
Income tax relating to other comprehensive (loss)/income |
OTHER COMPREHENSIVE (LOSS)/INCOME FOR THE YEAR, NET OF INCOME TAX |
( |
) |
TOTAL COMPREHENSIVE (LOSS)/INCOME FOR THE YEAR |
( |
) |
Kellands (Plant Sales) Limited (Registered number: 00479957) |
Statement of Financial Position |
31 December 2023 |
31.12.23 | 31.12.22 |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Tangible assets | 10 |
CURRENT ASSETS |
Stocks | 11 |
Debtors | 12 |
Cash at bank |
CREDITORS |
Amounts falling due within one year | 13 |
NET CURRENT ASSETS |
TOTAL ASSETS LESS CURRENT LIABILITIES |
CREDITORS |
Amounts falling due after more than one year |
14 |
( |
) |
( |
) |
PROVISIONS FOR LIABILITIES | 18 | ( |
) | ( |
) |
PENSION ASSET | 21 |
NET ASSETS |
CAPITAL AND RESERVES |
Called up share capital | 19 |
Retained earnings | 20 |
SHAREHOLDERS' FUNDS |
The financial statements were approved by the Board of Directors and authorised for issue on |
Kellands (Plant Sales) Limited (Registered number: 00479957) |
Statement of Changes in Equity |
for the Year Ended 31 December 2023 |
Called up |
share | Retained | Total |
capital | earnings | equity |
£ | £ | £ |
Balance at 1 January 2022 |
Changes in equity |
Dividends | - | ( |
) | ( |
) |
Total comprehensive income | - |
Balance at 31 December 2022 |
Changes in equity |
Dividends | - | ( |
) | ( |
) |
Total comprehensive loss | - | ( |
) | ( |
) |
Balance at 31 December 2023 |
Kellands (Plant Sales) Limited (Registered number: 00479957) |
Statement of Cash Flows |
for the Year Ended 31 December 2023 |
31.12.23 | 31.12.22 |
Notes | £ | £ |
Cash flows from operating activities |
Cash generated from operations | 1 | ( |
) |
Interest paid |
Interest element of hire purchase payments paid |
( |
) |
( |
) |
Tax paid | ( |
) |
Net cash from operating activities | ( |
) |
Cash flows from investing activities |
Purchase of tangible fixed assets | ( |
) | ( |
) |
Sale of tangible fixed assets |
Interest received |
Net cash from investing activities | ( |
) | ( |
) |
Cash flows from financing activities |
New finance leases |
Capital repayments in year | ( |
) | ( |
) |
Equity dividends paid | ( |
) | ( |
) |
Net cash from financing activities | ( |
) |
(Decrease)/increase in cash and cash equivalents | ( |
) |
Cash and cash equivalents at beginning of year |
2 |
1,411,940 |
389,588 |
Cash and cash equivalents at end of year | 2 | ( |
) |
Kellands (Plant Sales) Limited (Registered number: 00479957) |
Notes to the Statement of Cash Flows |
for the Year Ended 31 December 2023 |
1. | RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS |
31.12.23 | 31.12.22 |
£ | £ |
Profit before taxation |
Depreciation charges |
Profit on disposal of fixed assets | ( |
) | ( |
) |
Finance costs | (12,944 | ) | 9,018 |
Finance income | (10,566 | ) | (2,870 | ) |
309,514 | 961,061 |
Decrease/(increase) in stocks | ( |
) |
Decrease/(increase) in trade and other debtors | ( |
) |
(Decrease)/increase in trade and other creditors | ( |
) |
Cash generated from operations | ( |
) |
2. | CASH AND CASH EQUIVALENTS |
The amounts disclosed on the Statement of Cash Flows in respect of cash and cash equivalents are in respect of these Statement of Financial Position amounts: |
Year ended 31 December 2023 |
31.12.23 | 1.1.23 |
£ | £ |
Cash and cash equivalents | 1,965 | 1,415,125 |
Bank overdrafts | ( |
) | ( |
) |
(188,685 | ) | 1,411,940 |
Year ended 31 December 2022 |
31.12.22 | 1.1.22 |
£ | £ |
Cash and cash equivalents | 1,415,125 | 391,021 |
Bank overdrafts | ( |
) | ( |
) |
1,411,940 | 389,588 |
Kellands (Plant Sales) Limited (Registered number: 00479957) |
Notes to the Statement of Cash Flows |
for the Year Ended 31 December 2023 |
3. | ANALYSIS OF CHANGES IN NET FUNDS/(DEBT) |
At 1.1.23 | Cash flow | At 31.12.23 |
£ | £ | £ |
Net cash |
Cash at bank | 1,415,125 | (1,413,160 | ) | 1,965 |
Bank overdrafts | (3,185 | ) | (187,465 | ) | (190,650 | ) |
1,411,940 | ( |
) | (188,685 | ) |
Debt |
Finance leases | (298,454 | ) | 118,477 | (179,977 | ) |
(298,454 | ) | 118,477 | (179,977 | ) |
Total | 1,113,486 | (1,482,148 | ) | (368,662 | ) |
Kellands (Plant Sales) Limited (Registered number: 00479957) |
Notes to the Financial Statements |
for the Year Ended 31 December 2023 |
1. | STATUTORY INFORMATION |
Kellands (Plant Sales) Limited is a |
2. | STATEMENT OF COMPLIANCE |
3. | ACCOUNTING POLICIES |
Basis of preparing the financial statements |
The financial statements have been prepared in accordance with applicable accounting standards and estimation techniques, and on a going concern basis. |
Related party exemption |
The company has taken advantage of exemption, under the terms of Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland', not to disclose related party transactions with wholly owned subsidiaries within the group. |
Critical accounting judgements and key sources of estimation uncertainty |
In applying the company's accounting policies, which are described in note 3, management is required to make: |
- judgements (other than those involving estimations) that have a significant impact on the amounts recognised; and |
- estimates and assumptions about the carrying values of assets and liabilities that are not readily apparent from other sources. The estimates and underlying assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates. The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods |
Turnover |
Turnover is measured at the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. |
Turnover is recognised at invoice date for all classes of income. |
Tangible fixed assets |
Short leasehold | - |
Plant and machinery | - |
Fixtures and fittings | - |
Motor vehicles | - |
I.T. Equipment | - |
Stocks |
Machine stock is stated at invoice cost plus additional enhancement work, as amended by any provision for obsolescence. |
Parts stock is stated at average cost, as amended for any slow-moving or obsolescence provision. |
Work-in-progress is stated at average parts costs and chargeable labour costs based on job card valuations. |
Kellands (Plant Sales) Limited (Registered number: 00479957) |
Notes to the Financial Statements - continued |
for the Year Ended 31 December 2023 |
3. | ACCOUNTING POLICIES - continued |
Taxation |
Taxation for the year comprises current and deferred tax. Tax is recognised in the Statement of Comprehensive Income, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. |
Current or deferred taxation assets and liabilities are not discounted. |
Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the statement of financial position date. |
Deferred tax |
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the statement of financial position date. |
Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference. |
Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. |
Foreign currencies |
Assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the statement of financial position date. Transactions in foreign currencies are translated into sterling at the rate of exchange ruling at the date of transaction. Exchange differences are taken into account in arriving at the operating result. |
Hire purchase and leasing commitments |
Assets obtained under hire purchase contracts or finance leases are capitalised in the balance sheet. Those held under hire purchase contracts are depreciated over their estimated useful lives. Those held under finance leases are depreciated over their estimated useful lives or the lease term, whichever is the shorter. |
The interest element of these obligations is charged to profit or loss over the relevant period. The capital element of the future payments is treated as a liability. |
Rentals paid under operating leases are charged to profit or loss on a straight line basis over the period of the lease. |
Pension costs and other post-retirement benefits |
The pension scheme surplus is stated at the actuarial valuation at the year-end. Costs are charged to the profit and loss in the period in accordance with the actuarial review disclosures. |
The group operates a defined contribution pension scheme in addition to the defined benefit scheme (noted above - which is now closed to new members). Contributions payable to the group's defined contribution pension scheme are charged to profit or loss in the period to which they relate. |
Kellands (Plant Sales) Limited (Registered number: 00479957) |
Notes to the Financial Statements - continued |
for the Year Ended 31 December 2023 |
4. | TURNOVER |
The turnover and profit before taxation are attributable to the one principal activity of the company. |
An analysis of turnover by geographical market is given below: |
31.12.23 | 31.12.22 |
£ | £ |
United Kingdom |
Europe and rest of world | 1,024,366 | 822,058 |
5. | EMPLOYEES AND DIRECTORS |
31.12.23 | 31.12.22 |
£ | £ |
Wages and salaries |
Social security costs |
Other pension costs |
The average number of employees during the year was as follows: |
31.12.23 | 31.12.22 |
Sales staff | 9 | 9 |
Office and management | 9 | 8 |
Parts | 9 | 10 |
Service | 28 | 27 |
General labour | 4 | 3 |
Defined benefit pension scheme |
The company is a member of a group defined benefit scheme which is funded by the payment of contributions to a separately administered trust fund. |
The contributions to this scheme are determined with the advice of independent qualified actuaries on the basis of full actuarial triennial valuations. The most recent full actuarial valuation was conducted on 6 April 2021. |
31.12.23 | 31.12.22 |
£ | £ |
Directors' remuneration |
Compensation to director for loss of office |
The number of directors to whom retirement benefits were accruing was as follows: |
Money purchase schemes |
Kellands (Plant Sales) Limited (Registered number: 00479957) |
Notes to the Financial Statements - continued |
for the Year Ended 31 December 2023 |
5. | EMPLOYEES AND DIRECTORS - continued |
Information regarding the highest paid director is as follows: |
31.12.23 | 31.12.22 |
£ | £ |
Emoluments etc |
6. | OPERATING PROFIT |
The operating profit is stated after charging/(crediting): |
31.12.23 | 31.12.22 |
£ | £ |
Other operating leases |
Depreciation - owned assets |
Depreciation - assets on hire purchase contracts |
Profit on disposal of fixed assets | ( |
) | ( |
) |
Auditors' remuneration |
7. | INTEREST PAYABLE AND SIMILAR EXPENSES |
31.12.23 | 31.12.22 |
£ | £ |
Interest received on pension |
scheme assets | ( |
) | ( |
) |
Interest paid on pension |
scheme liabilities |
Hire purchase interest |
Stocking loan charges |
( |
) |
8. | TAXATION |
Analysis of the tax charge |
The tax charge on the profit for the year was as follows: |
31.12.23 | 31.12.22 |
£ | £ |
Current tax: |
UK corporation tax |
Prior year adjustments | - | (4,750 | ) |
Total current tax |
Deferred tax |
Tax on profit |
UK corporation tax has been charged at 25% (2022 - 19%). |
Kellands (Plant Sales) Limited (Registered number: 00479957) |
Notes to the Financial Statements - continued |
for the Year Ended 31 December 2023 |
8. | TAXATION - continued |
Reconciliation of total tax charge included in profit and loss |
The tax assessed for the year is higher than the standard rate of corporation tax in the UK. The difference is explained below: |
31.12.23 | 31.12.22 |
£ | £ |
Profit before tax |
Profit multiplied by the standard rate of corporation tax in the UK of (2022 - |
Effects of: |
Expenses not deductible for tax purposes |
Capital allowances in excess of depreciation | - | ( |
) |
Depreciation in excess of capital allowances | - |
Adjustments to tax charge in respect of previous periods | ( |
) |
Pension scheme adjustments | (15,750 | ) | (2,850 | ) |
Total tax charge | 51,114 | 132,793 |
Tax effects relating to effects of other comprehensive income |
31.12.23 |
Gross | Tax | Net |
£ | £ | £ |
Pension scheme actuarial adjustments | ( |
) | - | (622,000 | ) |
31.12.22 |
Gross | Tax | Net |
£ | £ | £ |
Pension scheme actuarial adjustments | - | 1,210,000 |
9. | DIVIDENDS |
31.12.23 | 31.12.22 |
£ | £ |
Interim |
Kellands (Plant Sales) Limited (Registered number: 00479957) |
Notes to the Financial Statements - continued |
for the Year Ended 31 December 2023 |
10. | TANGIBLE FIXED ASSETS |
Fixtures |
Short | Plant and | and |
leasehold | machinery | fittings |
£ | £ | £ |
COST |
At 1 January 2023 |
Additions |
Disposals | ( |
) |
At 31 December 2023 |
DEPRECIATION |
At 1 January 2023 |
Charge for year |
Eliminated on disposal | ( |
) |
At 31 December 2023 |
NET BOOK VALUE |
At 31 December 2023 |
At 31 December 2022 |
Motor | I.T. |
vehicles | Equipment | Totals |
£ | £ | £ |
COST |
At 1 January 2023 |
Additions |
Disposals | ( |
) | ( |
) |
At 31 December 2023 |
DEPRECIATION |
At 1 January 2023 |
Charge for year |
Eliminated on disposal | ( |
) | ( |
) |
At 31 December 2023 |
NET BOOK VALUE |
At 31 December 2023 |
At 31 December 2022 |
Kellands (Plant Sales) Limited (Registered number: 00479957) |
Notes to the Financial Statements - continued |
for the Year Ended 31 December 2023 |
10. | TANGIBLE FIXED ASSETS - continued |
Fixed assets, included in the above, which are held under hire purchase contracts are as follows: |
Motor |
vehicles |
£ |
COST |
At 1 January 2023 |
Additions |
Disposals | ( |
) |
At 31 December 2023 |
DEPRECIATION |
At 1 January 2023 |
Charge for year |
Eliminated on disposal | ( |
) |
At 31 December 2023 |
NET BOOK VALUE |
At 31 December 2023 |
At 31 December 2022 |
11. | STOCKS |
31.12.23 | 31.12.22 |
£ | £ |
Work-in-progress |
Spares |
Machines |
Machine stock includes machines which are secured under stocking loans, as noted in creditors. |
12. | DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
31.12.23 | 31.12.22 |
£ | £ |
Trade debtors |
Other debtors |
Tax |
Prepayments |
Kellands (Plant Sales) Limited (Registered number: 00479957) |
Notes to the Financial Statements - continued |
for the Year Ended 31 December 2023 |
13. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
31.12.23 | 31.12.22 |
£ | £ |
Bank loans and overdrafts (see note 15) |
Hire purchase contracts (see note 16) |
Trade creditors |
Stocking loans | 838,485 | 1,739,614 |
Amounts owed to group undertakings |
Corporation Tax |
Social security and other taxes |
Other creditors |
Accruals & deferred income |
14. | CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR |
31.12.23 | 31.12.22 |
£ | £ |
Hire purchase contracts (see note 16) |
15. | LOANS |
An analysis of the maturity of loans is given below: |
31.12.23 | 31.12.22 |
£ | £ |
Amounts falling due within one year or on demand: |
Bank overdrafts |
16. | LEASING AGREEMENTS |
Minimum lease payments fall due as follows: |
Hire purchase contracts |
31.12.23 | 31.12.22 |
£ | £ |
Net obligations repayable: |
Within one year |
Between one and five years |
Non-cancellable | operating leases |
31.12.23 | 31.12.22 |
£ | £ |
Within one year |
Between one and five years |
In more than five years |
Kellands (Plant Sales) Limited (Registered number: 00479957) |
Notes to the Financial Statements - continued |
for the Year Ended 31 December 2023 |
17. | SECURED DEBTS |
The following secured debts are included within creditors: |
31.12.23 | 31.12.22 |
£ | £ |
Bank overdraft |
Hire purchase contracts | 179,977 | 298,454 |
Stocking loans | 838,485 | 1,739,614 |
Stocking loans are secured by a fixed charge over the specific financed assets held in stock. |
Finance leases and hire purchase contracts are secured by a fixed charge over the specific financed assets. |
Bank overdrafts are secured by a charge over the general assets of the company. |
18. | PROVISIONS FOR LIABILITIES |
31.12.23 | 31.12.22 |
£ | £ |
Deferred tax | 150,000 | 115,000 |
Deferred |
tax |
£ |
Balance at 1 January 2023 |
Charge to Statement of Comprehensive Income during year |
Balance at 31 December 2023 |
No deferred tax has been provided on the defined benefit pension scheme asset in the accounts, on the basis that this asset is deemed to reduce and reverse in future years. |
19. | CALLED UP SHARE CAPITAL |
Allotted, issued and fully paid: |
Number: | Class: | Nominal | 31.12.23 | 31.12.22 |
value: | £ | £ |
Ordinary | £1 | 100,000 | 100,000 |
20. | RESERVES |
Retained |
earnings |
£ |
At 1 January 2023 |
Profit for the year |
Dividends | ( |
) |
Pension value increase/ |
(decrease) | (622,000 | ) |
At 31 December 2023 |
Kellands (Plant Sales) Limited (Registered number: 00479957) |
Notes to the Financial Statements - continued |
for the Year Ended 31 December 2023 |
21. | EMPLOYEE BENEFIT OBLIGATIONS |
The assets of the scheme consist wholly of a Commercial Union with-profits insurance policy, held by Aviva plc. |
An actuarial valuation has been undertaken for the year ended 31 December 2023, and a comparative valuation for the year ended 31 December 2022. The valuation for accounting disclosure purposes is £1,454,000 (2022: £2,013,000). The valuation represents an excess of scheme assets over anticipated future liabilities. |
A full actuarial valuation was undertaken on 6 April 2021 in accordance with the triennial valuation schedule. The next valuation is anticipated in April 2024. |
The scheme is now closed to new members, and there are now no active employed members. |
The employer meets all expenses, PPF levies and insurance premiums for death in service premiums. |
Present values of scheme liabilities, fair value of assets and surplus/(deficit): |
31/12/23 | 31/12/22 |
£'000s | £'000s |
Fair value of scheme assets | 5,905 | 7,005 |
Present value of scheme liabilities | 4,451 | 4,992 |
Surplus in scheme | 1,454 | 2,013 |
Unrecognised surplus | 0 | 0 |
Asset to be recognised in the balance sheet | 1,454 | 2,013 |
Reconciliation of opening and closing balances of the present value of the scheme liabilities: |
31/12/23 |
£'000s |
Scheme liabilities at start of period | 4,992 |
Expenses | 0 |
Current service cost | 0 |
Interest cost | 221 |
Contributions by scheme participants | 0 |
Settlements or curtailments | 0 |
Actuarial losses/(gains) | (191 | ) |
Benefits paid | (571 | ) |
Past service costs | 0 |
Scheme liabilities at end of period | 4,451 |
Reconciliation of opening and closing balances of the fair value of scheme assets: |
31/12/23 |
£'000s |
Fair value of scheme assets at start of period | 7,005 |
Interest income | 315 |
Actuarial (losses)/gains | (813 | ) |
Contributions by employer | 0 |
Expenses paid | (31 | ) |
Contributions by scheme participants | 0 |
Benefits paid | (571 | ) |
Fair value of scheme assets at end of year | 5,905 |
Kellands (Plant Sales) Limited (Registered number: 00479957) |
Notes to the Financial Statements - continued |
for the Year Ended 31 December 2023 |
Defined benefit costs recognised in the Profit and Loss statement: |
31/12/23 | 31/12/22 |
£'000s | £'000s |
Included within operating profit: |
Current service cost | 0 | 0 |
Included within other finance costs: |
Net interest income (315k received - 221k paid) | (94 | ) | (15 | ) |
Expenses | 31 | 0 |
Net income/(costs) disclosed in the accounts | (63 | ) | (15 | ) |
Assets |
31/12/23 | 31/12/22 |
£'000s | £'000s |
Aviva With Profits Policy | 5,905 | 7,005 |
None of the fair values of the assets shown above include any of the Employer's own financial instruments or any property occupied by, other than assets used by, the Employer. |
Assumptions: |
31/12/23 | 31/12/22 |
Inflation | 3.15% | 3.35% |
Rate of discount | 4.55% | 4.7% |
Allowance for pension payments inflationary increases | 3.60% | 3.65% |
Allowance for commutation of pension for cash at retirement | 75% | 75% |
The mortality assumptions adopted at 31 December 2023 imply the following life expectancies: |
Retiring at age 65 in 2022: male - 22.2; female - 24.6 |
Retiring at age 65 in 2042: male - 23.4; female - 26 |
22. | ULTIMATE PARENT COMPANY |
The company's ultimate parent undertaking at the balance sheet date was Kellands (Holdings) Limited, a company incorporated in England and Wales. |
23. | OTHER FINANCIAL COMMITMENTS |
The company has issued a guarantee in favour of HM Revenue & Customs in respect of deferment of duties, taxes, levies and charges for £8,000. |
24. | RELATED PARTY DISCLOSURES |
During the year the company traded with Diggers & Dumpers Limited, a company controlled by G Bagwell (a director of the parent), and with FG Jeanes & Son, a firm controlled by FD Jeanes (a director of the parent). All transactions were at arms length and open market value. |
Kellands (Plant Sales) Limited (Registered number: 00479957) |
Notes to the Financial Statements - continued |
for the Year Ended 31 December 2023 |
25. | ULTIMATE CONTROLLING PARTY |
The company was controlled during the current and previous period by its parent, Kellands (Holdings) Limited. |