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REGISTERED NUMBER: 00434982 (England and Wales)















Kellands (Holdings) Limited

Group Strategic Report, Report of the Directors and

Audited Consolidated Financial Statements

for the Year Ended 31 December 2023






Kellands (Holdings) Limited (Registered number: 00434982)






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




Page

Company Information 1

Group Strategic Report 2

Report of the Directors 5

Report of the Independent Auditors 7

Consolidated Statement of Comprehensive Income 11

Consolidated Statement of Financial Position 12

Company Statement of Financial Position 13

Consolidated Statement of Changes in Equity 14

Company Statement of Changes in Equity 15

Consolidated Statement of Cash Flows 16

Notes to the Consolidated Statement of Cash Flows 17

Notes to the Consolidated Financial Statements 19


Kellands (Holdings) Limited

Company Information
for the Year Ended 31 December 2023







DIRECTORS: F D Jeanes
T L E Miller
N J Smith
G Bagwell



REGISTERED OFFICE: Salmon Parade
Bridgwater
Somerset
TA6 5JY



REGISTERED NUMBER: 00434982 (England and Wales)



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



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

Kellands (Holdings) Limited (Registered number: 00434982)

Group Strategic Report
for the Year Ended 31 December 2023

The directors present their strategic report of the company and the group for the year ended 31 December 2023.

The principal activity of the group was the distribution and maintenance of industrial and construction machinery.

REVIEW OF BUSINESS
The turnover has decreased this year and is mainly explained by a general contraction in the construction industry.
The directors remain convinced that we are continuing to build a group 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 group 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 30,359 33,355 2,996 (9)%
Gross Profit 2,873 3,207 (334) (10%)
Profit before tax 235 919 (684) (74%)

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 group has an excellent range of products, although we are always looking to review and strengthen the product base.

Turnover
The decrease in turnover mainly reflects the challenges faced in the construction industry during the year.
There was a significant decrease in the level of activity in the second half of the year.
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 margins on new machines and increased direct staffing costs. 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 group. 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 (Holdings) Limited (Registered number: 00434982)

Group 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.

Pension asset
The pension asset reflects the difference between the fair value of the pension scheme assets less the present value of the scheme liabilities at the balance sheet date.
The liabilities are valued on the basis of corporate bond yields at the date of calculation with the assets being taken at market value. The balance sheet surplus is therefore significantly dependent on market conditions at the date of the calculation and the movement of this figure during the year can be volatile depending on changes in market conditions.

PRINCIPAL RISKS AND UNCERTAINTIES
The group 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 group 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 group seeks to manage financial risk by ensuring sufficient liquidity is available to meet foreseeable needs and to invest cash assets safely and profitably.

Interest rate risk
The group 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 group'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 group's carbon emissions where possible and this also has an impact on reducing costs which directly affect the group's 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 (Holdings) Limited (Registered number: 00434982)

Group Strategic Report
for the Year Ended 31 December 2023

N J Smith - Director


16 September 2024

Kellands (Holdings) Limited (Registered number: 00434982)

Report of the Directors
for the Year Ended 31 December 2023

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

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

DIVIDENDS
A dividend of £44,237 was paid on 14 December 2023 This represents a dividend of 5 pence per share.

DIRECTORS
The directors during the year under review were:

F D Jeanes
T L E Miller
N J Smith
G Bagwell

The beneficial interests of the directors holding office on 31 December 2023 in the issued share capital of the company were as follows:
31.12.23 1.1.23
Ordinary £1 shares

F D Jeanes 27,284 24,008
T L E Miller 9,960 9,960
N J Smith 29,000 29,000
G Bagwell 1,300 1,300

STATEMENT OF DIRECTORS' RESPONSIBILITIES
The directors are responsible for preparing the Group 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 the group and of the profit or loss of the group for that period. In preparing these financial statements, the directors are required to:

- select suitable accounting policies 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 and the group's transactions and disclose with reasonable accuracy at any time the financial position of the company and the group 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 the group 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 group'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 group's auditors are aware of that information.

Kellands (Holdings) Limited (Registered number: 00434982)

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:





N J Smith - Director


16 September 2024

Report of the Independent Auditors to the Members of
Kellands (Holdings) Limited

Opinion
We have audited the financial statements of Kellands (Holdings) Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 December 2023 which comprise the Consolidated Statement of Comprehensive Income, Consolidated Statement of Financial Position, Company Statement of Financial Position, Consolidated Statement of Changes in Equity, Company Statement of Changes in Equity, Consolidated Statement of Cash Flows and Notes to the Consolidated 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 group's and of the parent company affairs as at 31 December 2023 and of the group's profit for the year then ended;
-have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
-have been prepared in accordance with the requirements of the Companies Act 2006.

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

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

Other information
The directors are responsible for the other information. The other information comprises the information in the Group 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 Group 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 Group 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 (Holdings) Limited


Matters on which we are required to report by exception
In the light of the knowledge and understanding of the group and the parent company and its environment obtained in the course of the audit, we have not identified material misstatements in the Group Strategic Report or the 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 by the parent company, or returns adequate for our audit have not been received from branches not visited by us; or
- the parent company financial statements are not in agreement with the accounting records and returns; or
- certain disclosures of directors' remuneration specified by law are not made; or
- we have not received all the information and explanations we require for our audit.

Responsibilities of directors
As explained more fully in the Statement of Directors' Responsibilities set out on page five, 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 group's and the parent company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the group or the parent company or to cease operations, or have no realistic alternative but to do so.

Report of the Independent Auditors to the Members of
Kellands (Holdings) 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 (Holdings) Limited


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




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

16 September 2024

Kellands (Holdings) Limited (Registered number: 00434982)

Consolidated Statement of Comprehensive Income
for the Year Ended 31 December 2023

31.12.23 31.12.22
Notes £    £   

TURNOVER 4 30,359,249 33,354,801

Cost of sales 27,486,687 30,147,689
GROSS PROFIT 2,872,562 3,207,112

Administrative expenses 2,672,503 2,316,299
200,059 890,813

Other operating income 5 2,982 33,086
OPERATING PROFIT 7 203,041 923,899

Interest receivable and similar income 8 19,231 3,724
222,272 927,623

Interest payable and similar expenses 9 (12,944 ) 9,018
PROFIT BEFORE TAXATION 235,216 918,605

Tax on profit 10 79,546 161,321
PROFIT FOR THE FINANCIAL YEAR 155,670 757,284

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

-

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


(622,000


)


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

(466,330

)

1,967,284

Profit attributable to:
Owners of the parent 155,670 757,284

Total comprehensive (loss)/income attributable to:
Owners of the parent (466,330 ) 1,967,284

Kellands (Holdings) Limited (Registered number: 00434982)

Consolidated Statement of Financial Position
31 December 2023

31.12.23 31.12.22
Notes £    £    £    £   
FIXED ASSETS
Tangible assets 14 1,880,210 1,881,609
Investments 15 - -
1,880,210 1,881,609

CURRENT ASSETS
Stocks 16 8,129,236 8,626,034
Debtors 17 1,356,495 1,903,411
Cash at bank 24,415 2,018,090
9,510,146 12,547,535
CREDITORS
Amounts falling due within one year 18 4,352,778 7,379,926
NET CURRENT ASSETS 5,157,368 5,167,609
TOTAL ASSETS LESS CURRENT
LIABILITIES

7,037,578

7,049,218

CREDITORS
Amounts falling due after more than one
year

19

(55,038

)

(153,511

)

PROVISIONS FOR LIABILITIES 23 (196,900 ) (158,500 )

PENSION ASSET 26 1,454,000 2,013,000
NET ASSETS 8,239,640 8,750,207

CAPITAL AND RESERVES
Called up share capital 24 884,733 884,733
Revaluation reserve 25 1,045,030 1,045,030
Capital redemption reserve 25 56,003 56,003
Retained earnings 25 6,253,874 6,764,441
SHAREHOLDERS' FUNDS 8,239,640 8,750,207

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




F D Jeanes - Director



N J Smith - Director


Kellands (Holdings) Limited (Registered number: 00434982)

Company Statement of Financial Position
31 December 2023

31.12.23 31.12.22
Notes £    £    £    £   
FIXED ASSETS
Tangible assets 14 1,205,000 1,213,000
Investments 15 104,994 104,994
1,309,994 1,317,994

CURRENT ASSETS
Stocks 16 1,214 18,309
Debtors 17 1,040,508 451,587
Cash at bank 8,007 597,997
1,049,729 1,067,893
CREDITORS
Amounts falling due within one year 18 55,356 117,735
NET CURRENT ASSETS 994,373 950,158
TOTAL ASSETS LESS CURRENT
LIABILITIES

2,304,367

2,268,152

PROVISIONS FOR LIABILITIES 23 45,500 42,000
NET ASSETS 2,258,867 2,226,152

CAPITAL AND RESERVES
Called up share capital 24 884,733 884,733
Revaluation reserve 25 550,400 550,400
Capital redemption reserve 25 56,003 56,003
Retained earnings 25 767,731 735,016
SHAREHOLDERS' FUNDS 2,258,867 2,226,152

Company's profit for the financial year 76,952 131,853

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




F D Jeanes - Director



N J Smith - Director


Kellands (Holdings) Limited (Registered number: 00434982)

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

Called up Capital
share Retained Revaluation redemption Total
capital earnings reserve reserve equity
£    £    £    £    £   
Balance at 1 January 2022 884,733 4,841,394 1,045,030 56,003 6,827,160

Changes in equity
Dividends - (44,237 ) - - (44,237 )
Total comprehensive income - 1,967,284 - - 1,967,284
Balance at 31 December 2022 884,733 6,764,441 1,045,030 56,003 8,750,207

Changes in equity
Dividends - (44,237 ) - - (44,237 )
Total comprehensive loss - (466,330 ) - - (466,330 )
Balance at 31 December 2023 884,733 6,253,874 1,045,030 56,003 8,239,640

Kellands (Holdings) Limited (Registered number: 00434982)

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

Called up Capital
share Retained Revaluation redemption Total
capital earnings reserve reserve equity
£    £    £    £    £   
Balance at 1 January 2022 884,733 647,400 550,400 56,003 2,138,536

Changes in equity
Dividends - (44,237 ) - - (44,237 )
Total comprehensive income - 131,853 - - 131,853
Balance at 31 December 2022 884,733 735,016 550,400 56,003 2,226,152

Changes in equity
Dividends - (44,237 ) - - (44,237 )
Total comprehensive income - 76,952 - - 76,952
Balance at 31 December 2023 884,733 767,731 550,400 56,003 2,258,867

Kellands (Holdings) Limited (Registered number: 00434982)

Consolidated 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 (2,056,558 ) 1,492,856
Interest paid 94,000 15,000
Interest element of hire purchase payments
paid

(81,056

)

(24,018

)
Tax paid 143,833 (232,041 )
Net cash from operating activities (1,899,781 ) 1,251,797

Cash flows from investing activities
Purchase of tangible fixed assets (458,826 ) (469,667 )
Sale of tangible fixed assets 253,250 95,350
Interest received 19,231 3,724
Net cash from investing activities (186,345 ) (370,593 )

Cash flows from financing activities
New finance leases 67,700 243,558
Capital repayments in year (118,477 ) (99,461 )
Equity dividends paid (44,237 ) (44,237 )
Net cash from financing activities (95,014 ) 99,860

(Decrease)/increase in cash and cash equivalents (2,181,140 ) 981,064
Cash and cash equivalents at beginning of
year

2

2,014,905

1,033,841

Cash and cash equivalents at end of year 2 (166,235 ) 2,014,905

Kellands (Holdings) Limited (Registered number: 00434982)

Notes to the Consolidated 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 235,216 918,605
Depreciation charges 268,946 228,470
Profit on disposal of fixed assets (61,971 ) (55,804 )
Finance costs (12,944 ) 9,018
Finance income (19,231 ) (3,724 )
410,016 1,096,565
Decrease/(increase) in stocks 496,798 (2,142,942 )
Decrease/(increase) in trade and other debtors 546,916 (523,453 )
(Decrease)/increase in trade and other creditors (3,510,288 ) 3,062,686
Cash generated from operations (2,056,558 ) 1,492,856

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 24,415 2,018,090
Bank overdrafts (190,650 ) (3,185 )
(166,235 ) 2,014,905
Year ended 31 December 2022
31.12.22 1.1.22
£    £   
Cash and cash equivalents 2,018,090 1,035,274
Bank overdrafts (3,185 ) (1,433 )
2,014,905 1,033,841


Kellands (Holdings) Limited (Registered number: 00434982)

Notes to the Consolidated 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 2,018,090 (1,993,675 ) 24,415
Bank overdrafts (3,185 ) (187,465 ) (190,650 )
2,014,905 (2,181,140 ) (166,235 )
Debt
Finance leases (298,454 ) 118,477 (179,977 )
(298,454 ) 118,477 (179,977 )
Total 1,716,451 (2,062,663 ) (346,212 )

Kellands (Holdings) Limited (Registered number: 00434982)

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

1. STATUTORY INFORMATION

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

2. STATEMENT OF COMPLIANCE

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

3. ACCOUNTING POLICIES

Basis of preparing the financial statements
The financial statements have been prepared under the historical cost convention as modified by the revaluation of certain assets.

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

Basis of consolidation
The group financial statements consolidate the financial statements for Kellands (Holdings) Limited and its subsidiary undertakings, and include the group proportion of the profits or losses and retained earnings of these subsidiary undertakings. No profit and loss account is presented for Kellands (Holdings) Limited, as provided by Section 408 of the Companies Act 2006.

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.

Transactions between group entities which have been eliminated on consolidation are not disclosed within the financial statements.

Critical accounting judgements and key sources of estimation uncertainty
In applying the group'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 represents net invoiced sales of goods and services, excluding value added tax.

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

Kellands (Holdings) Limited (Registered number: 00434982)

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

3. ACCOUNTING POLICIES - continued

Tangible fixed assets
Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life or, if held under a finance lease, over the lease term, whichever is the shorter.
Freehold land & buildings - 2% on cost
Short leasehold - over life of lease
Plant and machinery - 25% on reducing balance
Fixtures and fittings - 20% on reducing balance and 20% on cost
Motor vehicles - 30% reducing balance
Computer equipment - 33% on cost and 30% reducing balance

Freehold land is not depreciated.

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.

Taxation
Taxation for the year comprises current and deferred tax. Tax is recognised in the Consolidated 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.

Kellands (Holdings) Limited (Registered number: 00434982)

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

3. ACCOUNTING POLICIES - continued

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.

4. TURNOVER

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

An analysis of turnover by geographical market is given below:

31.12.23 31.12.22
£    £   
United Kingdom 29,334,883 32,532,743
Europe 1,024,366 822,058
30,359,249 33,354,801

5. OTHER OPERATING INCOME
31.12.23 31.12.22
£    £   
Rents received 2,982 33,086

6. EMPLOYEES AND DIRECTORS
31.12.23 31.12.22
£    £   
Wages and salaries 2,212,727 2,098,940
Social security costs 208,425 213,162
Other pension costs 107,646 103,219
2,528,798 2,415,321

Kellands (Holdings) Limited (Registered number: 00434982)

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

6. EMPLOYEES AND DIRECTORS - continued

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

Sales 9 9
Office and management 11 10
General labour 4 3
Parts 9 10
Service 28 27
61 59

Defined benefit pension scheme
The group operates a defined benefit pension scheme which is funded by the payment of contributions to a separately administered fund

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

31.12.23 31.12.22
£    £   
Directors' remuneration 426,315 446,824
Compensation to director for loss of office 50,928 -

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

Money purchase schemes 3 3

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

7. OPERATING PROFIT

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

31.12.23 31.12.22
£    £   
Other operating leases 84,608 76,552
Depreciation - owned assets 142,082 100,420
Depreciation - assets on hire purchase contracts 126,864 128,050
Profit on disposal of fixed assets (61,971 ) (55,804 )
Auditors' remuneration 25,750 25,460

8. INTEREST RECEIVABLE AND SIMILAR INCOME
31.12.23 31.12.22
£    £   
Deposit account interest 19,231 3,724

Kellands (Holdings) Limited (Registered number: 00434982)

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

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

10. 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 41,146 106,071
Prior year adjustments - (4,750 )
Total current tax 41,146 101,321

Deferred tax 38,400 60,000
Tax on profit 79,546 161,321

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

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 235,216 918,605
Profit multiplied by the standard rate of corporation tax in the UK of 25 %
(2022 - 19 %)

58,804

174,535

Effects of:
Expenses not deductible for tax purposes 613 332
Capital allowances in excess of depreciation - (5,946 )
Depreciation in excess of capital allowances 35,879 -
Adjustments to tax charge in respect of previous periods - (4,750 )
Pension scheme adjustments (15,750 ) (2,850 )
Total tax charge 79,546 161,321

Kellands (Holdings) Limited (Registered number: 00434982)

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

10. TAXATION - continued

Tax effects relating to effects of other comprehensive income

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

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

11. INDIVIDUAL STATEMENT OF COMPREHENSIVE INCOME

As permitted by Section 408 of the Companies Act 2006, the Statement of Comprehensive Income of the parent company is not presented as part of these financial statements.


12. DIVIDENDS
31.12.23 31.12.22
£    £   
Ordinary shares of £1 each
Interim 44,237 44,237

13. PENSION ASSET VALUATION

The pension asset was valued by an independent qualified actuary for the years ended 31 December 2023 and 2022.

Kellands (Holdings) Limited (Registered number: 00434982)

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

14. TANGIBLE FIXED ASSETS

Group
Freehold
land & Short Plant and
buildings leasehold machinery
£    £    £   
COST OR VALUATION
At 1 January 2023 1,285,000 163,598 235,612
Additions - - 121,929
Disposals - - (3,859 )
At 31 December 2023 1,285,000 163,598 353,682
DEPRECIATION
At 1 January 2023 72,000 120,833 109,855
Charge for year 8,000 24,628 41,765
Eliminated on disposal - - (3,787 )
At 31 December 2023 80,000 145,461 147,833
NET BOOK VALUE
At 31 December 2023 1,205,000 18,137 205,849
At 31 December 2022 1,213,000 42,765 125,757

Fixtures
and Motor Computer
fittings vehicles equipment Totals
£    £    £    £   
COST OR VALUATION
At 1 January 2023 144,580 755,975 155,648 2,740,413
Additions 900 306,404 29,593 458,826
Disposals - (356,828 ) - (360,687 )
At 31 December 2023 145,480 705,551 185,241 2,838,552
DEPRECIATION
At 1 January 2023 84,299 350,800 121,017 858,804
Charge for year 10,607 172,382 11,564 268,946
Eliminated on disposal - (165,621 ) - (169,408 )
At 31 December 2023 94,906 357,561 132,581 958,342
NET BOOK VALUE
At 31 December 2023 50,574 347,990 52,660 1,880,210
At 31 December 2022 60,281 405,175 34,631 1,881,609

Included in cost or valuation of land and buildings is freehold land of £885,000 (2022 - £885,000) which is not depreciated.

Kellands (Holdings) Limited (Registered number: 00434982)

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

14. TANGIBLE FIXED ASSETS - continued

Group

Cost or valuation at 31 December 2023 is represented by:

Freehold
land & Short Plant and
buildings leasehold machinery
£    £    £   
Valuation in 2014 185,000 - -
Valuation in 2008 380,000 - -
Cost 720,000 163,598 353,682
1,285,000 163,598 353,682

Fixtures
and Motor Computer
fittings vehicles equipment Totals
£    £    £    £   
Valuation in 2014 - - - 185,000
Valuation in 2008 - - - 380,000
Cost 145,480 705,551 185,241 2,273,552
145,480 705,551 185,241 2,838,552

If freehold land and buildings had not been revalued they would have been included at the following historical cost:

31.12.23 31.12.22
£    £   
Cost 720,000 720,000

Value of land in freehold land and buildings 700,000 700,000

Freehold land and buildings were valued on an open market basis on 4 November 2014 by Tamlyn & Son, Chartered Surveyors .

Kellands (Holdings) Limited (Registered number: 00434982)

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

14. TANGIBLE FIXED ASSETS - continued

Group

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

Company
Freehold
land &
buildings
£   
COST
At 1 January 2023
and 31 December 2023 1,285,000
DEPRECIATION
At 1 January 2023 72,000
Charge for year 8,000
At 31 December 2023 80,000
NET BOOK VALUE
At 31 December 2023 1,205,000
At 31 December 2022 1,213,000

Included in cost of land and buildings is freehold land of £ 885,000 (2022 - £ 885,000 ) which is not depreciated.

The freehold property valuation of £1,285,000 has been crystallised as deemed cost as part of the FRS 102 updates to the financial statements.

Kellands (Holdings) Limited (Registered number: 00434982)

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

15. FIXED ASSET INVESTMENTS

Company
Shares in
group
undertakings
£   
COST
At 1 January 2023
and 31 December 2023 104,994
NET BOOK VALUE
At 31 December 2023 104,994
At 31 December 2022 104,994

The group or the company's investments at the Statement of Financial Position date in the share capital of companies include the following:

Subsidiaries

Kellands (Plant Sales) Limited
Registered office: Salmon Parade, Bridgwater, Somerset TA6 5JY
Nature of business: Industrial machine distributors
%
Class of shares: holding
Ordinary shares 100.00

Kellands Plant (SE) Limited
Registered office: Salmon Parade, Bridgwater, Somerset TA6 5JY
Nature of business: Industrial machine distributors
%
Class of shares: holding
Ordinary shares 100.00


16. STOCKS

Group Company
31.12.23 31.12.22 31.12.23 31.12.22
£    £    £    £   
Work-in-progress 56,712 36,104 - -
Spares 2,827,396 2,620,141 1,214 18,309
Machines 5,245,128 5,969,789 - -
8,129,236 8,626,034 1,214 18,309

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

Kellands (Holdings) Limited (Registered number: 00434982)

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

17. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

Group Company
31.12.23 31.12.22 31.12.23 31.12.22
£    £    £    £   
Trade debtors 1,271,278 1,585,815 - 22,587
Amounts owed by group undertakings - - 1,040,508 429,000
Other debtors - 2,700 - -
Tax 52,497 302,401 - -
Prepayments 32,720 12,495 - -
1,356,495 1,903,411 1,040,508 451,587

18. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

Group Company
31.12.23 31.12.22 31.12.23 31.12.22
£    £    £    £   
Bank loans and overdrafts (see note 20) 190,650 3,185 - -
Hire purchase contracts (see note 21) 124,939 144,943 - -
Trade creditors 1,651,795 4,938,917 634 634
Stocking loans 1,740,364 1,739,614 - -
Corporation Tax 41,146 106,071 11,333 21,898
Social security and other taxes 285,181 111,180 3,722 55,477
Other creditors 144,433 122,533 18,167 18,226
Directors' fees 18,000 18,000 18,000 18,000
Accruals and deferred income 156,270 195,483 3,500 3,500
4,352,778 7,379,926 55,356 117,735

19. CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE
YEAR

Group
31.12.23 31.12.22
£    £   
Hire purchase contracts (see note 21) 55,038 153,511

20. LOANS

An analysis of the maturity of loans is given below:

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

Kellands (Holdings) Limited (Registered number: 00434982)

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

21. LEASING AGREEMENTS

Minimum lease payments fall due as follows:

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

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

22. SECURED DEBTS

The following secured debts are included within creditors:

Group
31.12.23 31.12.22
£    £   
Bank overdraft 190,650 3,185
Hire purchase contracts 179,977 298,454
Stocking loans 1,740,364 1,739,614
2,110,991 2,041,253

Bank overdrafts are secured by a fixed and floating charge over the assets of the group.

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

Stocking loans are secured over the specific stock items that have been financed.

23. PROVISIONS FOR LIABILITIES

Group Company
31.12.23 31.12.22 31.12.23 31.12.22
£    £    £    £   
Deferred tax 196,900 158,500 45,500 42,000

Kellands (Holdings) Limited (Registered number: 00434982)

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

23. PROVISIONS FOR LIABILITIES - continued

Group
Deferred
tax
£   
Balance at 1 January 2023 158,500
Charge to Statement of Comprehensive Income during year 38,400
Balance at 31 December 2023 196,900

Company
Deferred
tax
£   
Balance at 1 January 2023 42,000
Charge to Statement of Comprehensive Income during year 3,500
Balance at 31 December 2023 45,500

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

24. CALLED UP SHARE CAPITAL

Allotted, issued and fully paid:
Number: Class: Nominal 31.12.23 31.12.22
value: £    £   
884,733 Ordinary £1 884,733 884,733

25. RESERVES

Group
Capital
Retained Revaluation redemption
earnings reserve reserve Totals
£    £    £    £   

At 1 January 2023 6,764,441 1,045,030 56,003 7,865,474
Profit for the year 155,670 155,670
Dividends (44,237 ) (44,237 )
Pension asset actuarial
adjustment (622,000 ) - - (622,000 )
At 31 December 2023 6,253,874 1,045,030 56,003 7,354,907

Kellands (Holdings) Limited (Registered number: 00434982)

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

25. RESERVES - continued

Company
Capital
Retained Revaluation redemption
earnings reserve reserve Totals
£    £    £    £   

At 1 January 2023 735,016 550,400 56,003 1,341,419
Profit for the year 76,952 76,952
Dividends (44,237 ) (44,237 )
At 31 December 2023 767,731 550,400 56,003 1,374,134


Kellands (Holdings) Limited (Registered number: 00434982)

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

26. 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 (Holdings) Limited (Registered number: 00434982)

Notes to the Consolidated 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


27. OTHER FINANCIAL COMMITMENTS

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

28. RELATED PARTY DISCLOSURES

Any transactions which may be regarded as related party transactions within the group, according to Financial Reporting Standard 102, have been eliminated in the consolidated financial statements.

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

29. ULTIMATE CONTROLLING PARTY

The company was controlled during the current and previous period by its directors and shareholders.There is no one overall controlling party.