REGISTERED NUMBER: SC533323 (Scotland) |
Group Strategic Report, |
Report of the Director and |
Consolidated Financial Statements |
for the Year Ended 31 December 2023 |
for |
K C Holdings (Scotland) Limited |
REGISTERED NUMBER: SC533323 (Scotland) |
Group Strategic Report, |
Report of the Director and |
Consolidated Financial Statements |
for the Year Ended 31 December 2023 |
for |
K C Holdings (Scotland) Limited |
K C Holdings (Scotland) Limited (Registered number: SC533323) |
Contents of the Consolidated Financial Statements |
for the Year Ended 31 December 2023 |
Page |
Company Information | 1 |
Group Strategic Report | 2 |
Report of the Director | 4 |
Report of the Independent Auditors | 5 |
Consolidated Statement of Income and Retained Earnings | 9 |
Consolidated Balance Sheet | 10 |
Company Balance Sheet | 11 |
Consolidated Cash Flow Statement | 12 |
Notes to the Consolidated Cash Flow Statement | 13 |
Notes to the Consolidated Financial Statements | 14 |
K C Holdings (Scotland) Limited |
Company Information |
for the Year Ended 31 December 2023 |
DIRECTOR: |
REGISTERED OFFICE: |
REGISTERED NUMBER: |
AUDITORS: |
Statutory Auditor |
Ground Floor (part) |
8000 Academy Business Park |
51 Gower Street |
GLASGOW |
G51 1PR |
K C Holdings (Scotland) Limited (Registered number: SC533323) |
Group Strategic Report |
for the Year Ended 31 December 2023 |
The director presents his strategic report of the company and the group for the year ended 31 December 2023. |
REVIEW OF BUSINESS |
Introduction: |
The year 2023 has proven to be one of significant achievement for the KC Group Glasgow, once again. In the face of significant headwinds within the global logistics sector, we have maintained our position as a leading provider of innovative and reliable shipping solutions. This report outlines our strategic achievements, financial performance, and the resilient approach we adopted in navigating the challenges of a dynamic and often unpredictable global market. |
Market Overview: |
The international logistics sector faced another year of uncertainty as global trade levels saw a marked downturn, coupled with fluctuating economic conditions and reduced freight volumes. Despite these challenges, KC Group not only adapted but thrived. As the global market returned to "normal freight levels" and "conditions" following the volatility of previous years, we continued to solidify our reputation for service excellence and operational efficiency. |
Financial Performance: |
KC Group is delighted to report a robust financial performance for 2023. Despite the global downturn, we have successfully delivered a turnover exceeding £12 million, with a profit before tax of over £750,000. This result reflects our strategic focus on optimising operations, expanding our service portfolio, and enhancing client relationships across the UK and beyond. |
Strategic Initiatives: |
Throughout 2023, KC Group implemented several key initiatives designed to strengthen our market position and drive profitability: |
Operational Efficiency: Continued investment in digital technologies and process automation has enhanced our service delivery, reducing costs and improving the reliability and speed of our operations. |
Customer-Centric Growth: We focused on deepening client engagement and broadening our service offerings, particularly in sectors where our expertise in handling complex logistics is in high demand. |
Sustainability and Innovation: |
We advanced our commitment to sustainable logistics by exploring greener solutions and minimizing our environmental impact, in alignment with industry best practices and emerging regulations. |
Resilience Amidst Challenges: |
While many operators within the sector struggled with volatile conditions and reduced freight rates, our resilience, agility, and proactive approach allowed us to maintain stability, albeit with reduced financials. By carefully managing costs and strategically targeting niche markets where demand remained steady, we achieved results that reflect both financial strength and strategic foresight. |
Outlook for 2024: |
As we move into 2024, KC Group remains well-positioned to continue growth trajectory. Our focus will remain on driving operational excellence, expanding into new markets, and further enhancing our digital capabilities to meet the evolving needs of our clients. The economic landscape remains challenging, but with our proven strategy and dedicated team, we are confident in our ability to continue delivering outstanding results. |
Conclusion: |
The success of KC Group in 2023 is a testament to our unwavering commitment to excellence and our ability to adapt to market conditions. The strategic decisions made over the past year have placed us in a strong financial position, and we look forward to building on this success in the years ahead. |
We would like to extend our heartfelt thanks to our clients, partners, and team for their continued support and dedication. Together, we have once again demonstrated that KC Group is a leader in the field of international logistics. |
K C Holdings (Scotland) Limited (Registered number: SC533323) |
Group Strategic Report |
for the Year Ended 31 December 2023 |
PRINCIPAL RISKS AND UNCERTAINTIES |
As the Managing Director of KC Holdings (Scotland) Limited, it is imperative to provide a comprehensive overview of the principal risks and uncertainties that the group faces. This review aims to outline the strategies undertaken to mitigate these risks and navigate through uncertainties. |
Currency Fluctuations: |
One of the key risks affecting our operations is exposure to currency movements. With purchases conducted in both Euros and Dollars, the group faces potential fluctuations in currency exchange rates, particularly concerning Euros to Sterling and Dollars to Sterling. To mitigate this risk, the group has implemented proactive measures, which include financial instruments to hedge against adverse currency movements. These efforts contribute to stabilising our financial position and enhancing predictability in an ever-changing currency landscape. |
Credit Risk Management: |
The group's credit risk remains largely centred on trade debtors. This risk is managed meticulously through a multifaceted approach. Regular credit checks are conducted, encompassing both existing and prospective clients. The group diligently monitors payment patterns and credit levels, facilitating early detection of potential credit issues. This proactive approach to credit risk minimisation ensures that the group maintains a healthy balance between credit extension and risk containment. |
Cash Flow Monitoring and Projection: |
Cash flow stands as a lifeline of our operations. Our day-to-day procedures include rigorous cash flow monitoring and projection assessments on a monthly basis. This practice enables us to proactively address any liquidity challenges that may arise. Furthermore, ensuring the availability of adequate facilities to address unforeseen needs bolsters our financial resilience. |
Navigating Global Market Conditions: |
The ever-changing global market conditions, marked by escalating prices, have posed significant challenges. Despite this backdrop, the group has demonstrated resilience and adaptability. Through a steadfast commitment to excellent customer service, we have not only retained our market standing but have also worked in tandem with suppliers to ensure a consistent supply chain. This collaborative approach has not only contributed to operational stability but also strengthened our global market position. |
In conclusion, KC Holdings (Scotland) Limited acknowledges and addresses the principal risks and uncertainties that are inherent in our business landscape. Our strategic measures to manage currency fluctuations, credit risks, and cash flow challenges, coupled with a customer-centric and collaborative approach, position us favourably to navigate the complexities of the global market. |
ON BEHALF OF THE BOARD: |
K C Holdings (Scotland) Limited (Registered number: SC533323) |
Report of the Director |
for the Year Ended 31 December 2023 |
The director presents his report with the financial statements of the company and the group for the year ended 31 December 2023. |
DIVIDENDS |
No interim dividend was paid during the year. The director recommends a final dividend of 940 per share. |
The total distribution of dividends for the year ended 31 December 2023 will be £ 46,999 . |
DIRECTOR |
STATEMENT OF DIRECTOR'S RESPONSIBILITIES |
The director is responsible for preparing the Group Strategic Report, the Report of the Director and the financial statements in accordance with applicable law and regulations. |
Company law requires the director to prepare financial statements for each financial year. Under that law the director has elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the director must not approve the financial statements unless he is 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 director is 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 director is 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 him to ensure that the financial statements comply with the Companies Act 2006. He is 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 director is 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 he 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. |
AUDITORS |
The auditors, TB Dunn & Co, 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 |
K C Holdings (Scotland) Limited |
Opinion |
We have audited the financial statements of K C Holdings (Scotland) Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 December 2023 which comprise the Consolidated Statement of Income and Retained Earnings, Consolidated Balance Sheet, Company Balance Sheet, Consolidated Cash Flow Statement and Notes to the Consolidated Cash Flow Statement, 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 director's 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 director with respect to going concern are described in the relevant sections of this report. |
Other information |
The director is responsible for the other information. The other information comprises the information in the Group Strategic Report and the Report of the Director, 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 Director 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 Director have been prepared in accordance with applicable legal requirements. |
Report of the Independent Auditors to the Members of |
K C Holdings (Scotland) 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 Director. |
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 director's remuneration specified by law are not made; or |
- | we have not received all the information and explanations we require for our audit. |
Responsibilities of director |
As explained more fully in the Statement of Director's Responsibilities set out on page four, the director is 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 director determines 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 director is 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 director either intends to liquidate the group or the parent company or to cease operations, or has no realistic alternative but to do so. |
Report of the Independent Auditors to the Members of |
K C Holdings (Scotland) 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: |
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below: |
We identify and assess the risks of material misstatements of the financial statements, whether due to fraud or error, and then design and perform audit procedures responsive to those risks, including obtaining audit evidence that is sufficient and appropriate to provide a basis for our opinion. |
In identifying and assessing risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, we consider the following: |
- the nature of the industry and sector, control environment and business performance including the key drivers for Director's remuneration, bonus levels and performance targets; |
- results of our enquiries of management about their own identification and assessment of the risks of irregularities; |
- any matters we identified having obtained and reviewed the Group's documentation of their policies and procedures relating to: |
- identifying, evaluating and complying with laws and regulations and whether they were aware of any instances of non-compliance; |
- detecting and responding to the risks of fraud and whether they have knowledge of any actual, suspected or alleged fraud; |
- the internal controls established to mitigate risks of fraud or non-compliance with laws and regulations; |
- the matters discussed among the audit engagement team regarding how and where fraud might occur in the financial statements and any potential indicators of fraud. |
As a result of these procedures, we consider the opportunities and incentives that may exist within the organisation for fraud and identified the greatest potential for fraud in the cut-off of revenue recognition. In common with all audits under ISAs(UK), we are also required to perform specific procedures to respond to the risk of management override. |
We also obtained an understanding of the legal and regulatory framework that the group operates in, focusing on provisions of those laws and regulations that had a direct effect on the determination of material amounts and disclosure in the financial statements. The key laws and regulations we considered in this context included the UK Companies Act, tax legislation and Health and Safety legislation. |
In addition to the above, our procedures to respond to risks identified included the following: |
- reviewing the financial statement disclosures and testing to supporting documentation to assess compliance with provision of relevant laws and regulations described as having a direct effect on the financial statements; |
- enquiring of management concerning actual and potential litigation and claims; |
- performing analytical procedures to identify any unusual or unexpected relationships that may indicate risks of material misstatement due to fraud; |
- reading minutes of meeting of those charged with governance; |
- in addressing the fraud risk in revenue cut-off, we have tested a sample of revenue/purchases recorded pre year end and post year end and agreed to invoice, and purchase ledger records to assess timing or cut-off and ensure that revenue is only recognised when services are receivable; 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 any significant transactions that are unusual or outside the normal course of business. |
We also communicated relevant identified laws and regulations and potential fraud risks to all engagement team members and remained alert to any indications of fraud or non-compliance with laws and regulations through the audit. |
Report of the Independent Auditors to the Members of |
K C Holdings (Scotland) Limited |
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. |
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 |
Statutory Auditor |
Ground Floor (part) |
8000 Academy Business Park |
51 Gower Street |
GLASGOW |
G51 1PR |
K C Holdings (Scotland) Limited (Registered number: SC533323) |
Consolidated |
Statement of Income and |
Retained Earnings |
for the Year Ended 31 December 2023 |
2023 | 2022 |
Notes | £ | £ |
TURNOVER | 3 | 12,796,510 | 24,815,556 |
Cost of sales | 10,149,988 | 20,932,684 |
GROSS PROFIT | 2,646,522 | 3,882,872 |
Administrative expenses | 1,946,765 | 2,164,636 |
699,757 | 1,718,236 |
Other operating income | 74,239 | 70,823 |
OPERATING PROFIT | 5 | 773,996 | 1,789,059 |
Interest receivable and similar income | 3,572 | - |
777,568 | 1,789,059 |
Interest payable and similar expenses | 6 | 29,778 | 19,742 |
PROFIT BEFORE TAXATION | 747,790 | 1,769,317 |
Tax on profit | 7 | 233,245 | 240,679 |
PROFIT FOR THE FINANCIAL YEAR |
Retained earnings at beginning of year | 2,344,199 | 815,561 |
Dividends | 9 | (46,999 | ) | - |
RETAINED EARNINGS FOR THE GROUP AT END OF YEAR |
2,811,745 |
2,344,199 |
Profit attributable to: |
Owners of the parent | 514,545 | 1,528,638 |
K C Holdings (Scotland) Limited (Registered number: SC533323) |
Consolidated Balance Sheet |
31 December 2023 |
2023 | 2022 |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Intangible assets | 10 | 330,000 | 440,000 |
Tangible assets | 11 | 338,334 | 280,231 |
Investments | 12 | - | - |
668,334 | 720,231 |
CURRENT ASSETS |
Debtors | 13 | 1,818,240 | 3,130,010 |
Cash at bank | 3,220,263 | 2,686,087 |
5,038,503 | 5,816,097 |
CREDITORS |
Amounts falling due within one year | 14 | 2,755,955 | 3,593,296 |
NET CURRENT ASSETS | 2,282,548 | 2,222,801 |
TOTAL ASSETS LESS CURRENT LIABILITIES |
2,950,882 |
2,943,032 |
CREDITORS |
Amounts falling due after more than one year | 15 | (72,188 | ) | (536,385 | ) |
PROVISIONS FOR LIABILITIES | 19 | (56,949 | ) | (52,448 | ) |
NET ASSETS | 2,821,745 | 2,354,199 |
CAPITAL AND RESERVES |
Called up share capital | 20 | 5,000 | 5,000 |
Capital redemption reserve | 21 | 5,000 | 5,000 |
Retained earnings | 21 | 2,811,745 | 2,344,199 |
SHAREHOLDERS' FUNDS | 2,821,745 | 2,354,199 |
The financial statements were approved by the director and authorised for issue on 12 September 2024 and were signed by: |
D W Milne - Director |
K C Holdings (Scotland) Limited (Registered number: SC533323) |
Company Balance Sheet |
31 December 2023 |
2023 | 2022 |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Intangible assets | 10 |
Tangible assets | 11 |
Investments | 12 |
CURRENT ASSETS |
Debtors | 13 |
CREDITORS |
Amounts falling due within one year | 14 |
NET CURRENT LIABILITIES | ( |
) | ( |
) |
TOTAL ASSETS LESS CURRENT LIABILITIES |
CREDITORS |
Amounts falling due after more than one year | 15 |
NET ASSETS |
CAPITAL AND RESERVES |
Called up share capital | 20 |
Retained earnings | 21 |
SHAREHOLDERS' FUNDS |
Company's profit for the financial year | 493,916 | 1,237,699 |
The financial statements were approved by the director and authorised for issue on |
K C Holdings (Scotland) Limited (Registered number: SC533323) |
Consolidated Cash Flow Statement |
for the Year Ended 31 December 2023 |
2023 | 2022 |
Notes | £ | £ |
Cash flows from operating activities |
Cash generated from operations | 1 | 1,447,127 | 2,379,401 |
Interest paid | (20,759 | ) | (14,739 | ) |
Interest element of hire purchase payments paid | (9,019 | ) | (5,003 | ) |
Tax paid | (158,331 | ) | (229,187 | ) |
Net cash from operating activities | 1,259,018 | 2,130,472 |
Cash flows from investing activities |
Purchase of tangible fixed assets | (117,115 | ) | (87,741 | ) |
Sale of tangible fixed assets | - | 10,000 |
Interest received | 3,572 | - |
Net cash from investing activities | (113,543 | ) | (77,741 | ) |
Cash flows from financing activities |
Loan repayments in year | (549,845 | ) | (130,703 | ) |
Capital repayments in year | (14,455 | ) | (14,558 | ) |
Equity dividends paid | (46,999 | ) | - |
Net cash from financing activities | (611,299 | ) | (145,261 | ) |
Increase in cash and cash equivalents | 534,176 | 1,907,470 |
Cash and cash equivalents at beginning of year |
2 |
2,686,087 |
778,617 |
Cash and cash equivalents at end of year | 2 | 3,220,263 | 2,686,087 |
K C Holdings (Scotland) Limited (Registered number: SC533323) |
Notes to the Consolidated Cash Flow Statement |
for the Year Ended 31 December 2023 |
1. | RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS |
2023 | 2022 |
£ | £ |
Profit before taxation | 747,790 | 1,769,317 |
Depreciation charges | 169,012 | 162,686 |
Loss on disposal of fixed assets | - | 16,550 |
Finance costs | 29,778 | 19,742 |
Finance income | (3,572 | ) | - |
943,008 | 1,968,295 |
Decrease in trade and other debtors | 1,074,792 | 1,105,485 |
Decrease in trade and other creditors | (570,673 | ) | (694,379 | ) |
Cash generated from operations | 1,447,127 | 2,379,401 |
2. | CASH AND CASH EQUIVALENTS |
The amounts disclosed on the Cash Flow Statement in respect of cash and cash equivalents are in respect of these Balance Sheet amounts: |
Year ended 31 December 2023 |
31.12.23 | 1.1.23 |
£ | £ |
Cash and cash equivalents | 3,220,263 | 2,686,087 |
Year ended 31 December 2022 |
31.12.22 | 1.1.22 |
£ | £ |
Cash and cash equivalents | 2,686,087 | 778,617 |
3. | ANALYSIS OF CHANGES IN NET FUNDS |
At 1.1.23 | Cash flow | At 31.12.23 |
£ | £ | £ |
Net cash |
Cash at bank | 2,686,087 | 534,176 | 3,220,263 |
2,686,087 | 534,176 | 3,220,263 |
Debt |
Finance leases | (101,098 | ) | 14,455 | (86,643 | ) |
Debts falling due within 1 year | (100,000 | ) | 100,000 | - |
Debts falling due after 1 year | (449,845 | ) | 449,845 | - |
(650,943 | ) | 564,300 | (86,643 | ) |
Total | 2,035,144 | 1,098,476 | 3,133,620 |
K C Holdings (Scotland) Limited (Registered number: SC533323) |
Notes to the Consolidated Financial Statements |
for the Year Ended 31 December 2023 |
1. | STATUTORY INFORMATION |
K C Holdings (Scotland) Limited is a |
The presentation currency of the financial statements is the Pound Sterling (£). |
2. | ACCOUNTING POLICIES |
Basis of preparing the financial statements |
The group consists of K C Holdings (Scotland) Limited and all of its subsidiaries. |
Basis of consolidation |
In the parent company financial statements, the cost of a business combination is the fair value at the acquisition date of the assets given, equity instruments issued and liabilities incurred or assumed, plus costs directly attributable to the business combination. The excess of the cost of a business combination over the fair value of the identifiable assets, liabilities and contingent liabilities acquired is recognised as goodwill. The cost of the combination includes the estimated amount of contingent consideration that is probable and can be measured reliably, and is adjusted for changes in contingent consideration after the acquisition date. Provisional fair values recognised for business combinations in previous periods are adjusted retrospectively for final fair values determined in the 12 months following the acquisition date. Investments in subsidiaries, joint ventures and associates are accounted for at cost less impairment. |
The consolidated financial statements incorporate those of K C Holdings (Scotland) Limited and all of its subsidiaries (ie entities that the group controls through its power to govern the financial and operating policies so as to obtain economic benefits). |
The consolidated financial statements are made up to 31 December 2023. Where necessary, adjustments are made to the financial statements of subsidiaries to bring the accounting policies used into line with those used by their members of the group. |
All intra-group transactions, balances and unrealised gains on transactions between group companies are eliminated on consolidation. Unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred. |
Turnover |
Turnover is measured at the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. |
Goodwill |
Intangible assets |
Intangible assets are initially measured at cost. After initial recognition, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses. |
Tangible fixed assets |
Fixtures and fittings | - |
Motor vehicles | - |
Computer equipment | - |
K C Holdings (Scotland) Limited (Registered number: SC533323) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 December 2023 |
2. | ACCOUNTING POLICIES - continued |
Taxation |
Taxation for the year comprises current and deferred tax. Tax is recognised in the Consolidated Income Statement, 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 balance sheet date. |
Deferred tax |
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet 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 balance sheet 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 group operates a defined contribution pension scheme. Contributions payable to the group's pension scheme are charged to profit or loss in the period to which they relate. |
3. | 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: |
2023 | 2022 |
£ | £ |
United Kingdom | 10,976,801 | 20,709,359 |
Europe | 781,156 | 1,664,454 |
Rest of the world | 1,038,553 | 2,441,743 |
12,796,510 | 24,815,556 |
K C Holdings (Scotland) Limited (Registered number: SC533323) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 December 2023 |
4. | EMPLOYEES AND DIRECTORS |
2023 | 2022 |
£ | £ |
Wages and salaries | 1,042,469 | 1,137,209 |
Social security costs | 117,679 | 125,517 |
Other pension costs | 50,317 | 96,615 |
1,210,465 | 1,359,341 |
The average number of employees during the year was as follows: |
2023 | 2022 |
Director | 1 | 1 |
Administration | 30 | 28 |
The average number of employees by undertakings that were proportionately consolidated during the year was 31 (2022 - 29 ) . |
2023 | 2022 |
£ | £ |
Director's remuneration | 90,000 | 125,738 |
Director's pension contributions to money purchase schemes | 18,900 | 74,715 |
5. | OPERATING PROFIT |
The operating profit is stated after charging/(crediting): |
2023 | 2022 |
£ | £ |
Hire of plant and machinery | 58,047 | 65,772 |
Other operating leases | 20,199 | 29,212 |
Depreciation - owned assets | 42,059 | 35,731 |
Depreciation - assets on hire purchase contracts | 16,953 | 16,954 |
Loss on disposal of fixed assets | - | 16,550 |
Goodwill amortisation | 110,000 | 110,000 |
Auditors' remuneration | 8,580 | 8,600 |
Foreign exchange differences | 3,036 | (133,235 | ) |
6. | INTEREST PAYABLE AND SIMILAR EXPENSES |
2023 | 2022 |
£ | £ |
Bank loan interest | 743 | 1,114 |
Interest paid | 19,548 | 12,511 |
Loan | 468 | 1,114 |
Hire purchase | 5,106 | 5,003 |
HMRC interest on late payment | 3,913 | - |
29,778 | 19,742 |
K C Holdings (Scotland) Limited (Registered number: SC533323) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 December 2023 |
7. | TAXATION |
Analysis of the tax charge |
The tax charge on the profit for the year was as follows: |
2023 | 2022 |
£ | £ |
Current tax: |
UK corporation tax | 222,122 | 238,979 |
Corporation tax prior year | 6,622 | - |
Total current tax | 228,744 | 238,979 |
Deferred tax | 4,501 | 1,700 |
Tax on profit | 233,245 | 240,679 |
8. | INDIVIDUAL INCOME STATEMENT |
As permitted by Section 408 of the Companies Act 2006, the Income Statement of the parent company is not presented as part of these financial statements. |
9. | DIVIDENDS |
2023 | 2022 |
£ | £ |
Ordinary shares of £1 each |
Final | 46,999 | - |
10. | INTANGIBLE FIXED ASSETS |
Group |
Goodwill |
£ |
COST |
At 1 January 2023 |
and 31 December 2023 | 1,100,000 |
AMORTISATION |
At 1 January 2023 | 660,000 |
Amortisation for year | 110,000 |
At 31 December 2023 | 770,000 |
NET BOOK VALUE |
At 31 December 2023 | 330,000 |
At 31 December 2022 | 440,000 |
K C Holdings (Scotland) Limited (Registered number: SC533323) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 December 2023 |
11. | TANGIBLE FIXED ASSETS |
Group |
Fixtures |
and | Motor | Computer |
fittings | vehicles | equipment | Totals |
£ | £ | £ | £ |
COST |
At 1 January 2023 | 168,899 | 145,649 | 86,417 | 400,965 |
Additions | 174 | 112,685 | 4,256 | 117,115 |
At 31 December 2023 | 169,073 | 258,334 | 90,673 | 518,080 |
DEPRECIATION |
At 1 January 2023 | 30,990 | 36,947 | 52,797 | 120,734 |
Charge for year | 16,799 | 21,661 | 20,552 | 59,012 |
At 31 December 2023 | 47,789 | 58,608 | 73,349 | 179,746 |
NET BOOK VALUE |
At 31 December 2023 | 121,284 | 199,726 | 17,324 | 338,334 |
At 31 December 2022 | 137,909 | 108,702 | 33,620 | 280,231 |
Fixed assets, included in the above, which are held under hire purchase contracts are as follows: |
Motor |
vehicles |
£ |
COST |
At 1 January 2023 |
and 31 December 2023 | 125,656 |
DEPRECIATION |
At 1 January 2023 | 16,954 |
Charge for year | 16,953 |
At 31 December 2023 | 33,907 |
NET BOOK VALUE |
At 31 December 2023 | 91,749 |
At 31 December 2022 | 108,702 |
K C Holdings (Scotland) Limited (Registered number: SC533323) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 December 2023 |
12. | FIXED ASSET INVESTMENTS |
Company |
Shares in |
group |
undertakings |
£ |
COST |
At 1 January 2023 |
and 31 December 2023 |
NET BOOK VALUE |
At 31 December 2023 |
At 31 December 2022 |
The group or the company's investments at the Balance Sheet date in the share capital of companies include the following: |
Subsidiaries |
K C Group Shipping Limited |
Registered office: South Suite, 5 Seaward Place, Glasgow, G41 1HH |
Nature of business: Shipping |
% |
Class of shares: | holding |
Ordinary | 100.00 |
2023 | 2022 |
£ | £ |
Aggregate capital and reserves | 2,366,903 | 2,256,072 |
Profit for the year | 853,847 | 1,714,464 |
Yang Ming Shipping (Scotland) Limited |
Registered office: South Suite, 5 Seaward Place, Glasgow, G41 1HH |
Nature of business: Shipping |
% |
Class of shares: | holding |
Ordinary | 100.00 |
2023 | 2022 |
£ | £ |
Aggregate capital and reserves | 45,625 | 38,797 |
Profit for the year | 8,438 | 13,907 |
K C Holdings (Scotland) Limited (Registered number: SC533323) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 December 2023 |
12. | FIXED ASSET INVESTMENTS - continued |
KC Liner Agencies Limited |
Registered office: South Suite, 5 Seaward Place, Glasgow, G41 1HH |
Nature of business: Shipping |
% |
Class of shares: | holding |
Ordinary | 100.00 |
2023 | 2022 |
£ | £ |
Aggregate capital and reserves | 146,171 | 133,202 |
Profit for the year | 16,588 | 163,248 |
The Wine & Spirits Logistics Alliance Limited |
Registered office: South Suite, 5 Seaward Place, Glasgow, G41 1HH |
Nature of business: Dormant |
% |
Class of shares: | holding |
Ordinary | 100.00 |
2023 | 2022 |
£ | £ |
Aggregate capital and reserves | 1 | 1 |
The company, The Wine & Spirits Logistics Alliance Limited, was dissolved on 30 May 2023. |
K C Holdings (Scotland) Limited has given a guarantee under section 479C of the Companies Act 2006 ("the Act") in respect of the year ended 31 December 2023 of its subsidiary companies, Yang Ming Shipping (Scotland) Limited, KC Liner Agencies Limited and The Wine & Spirits Logistics Alliance Limited and therefore these companies are exempt from the requirements of the Act relating to the audit of the individual financial statements by virtue of section 479A of the Companies Act 2006. |
13. | DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
Group | Company |
2023 | 2022 | 2023 | 2022 |
£ | £ | £ | £ |
Trade debtors | 1,448,309 | 2,458,179 |
Amounts owed by group undertakings | - | - |
Other debtors | 250,000 | 228,928 |
KC Logistics Limited | - | 36,423 | - | - |
Tax | - | 236,978 |
VAT | 89,340 | 124,384 |
Prepayments | 30,591 | 45,118 |
1,818,240 | 3,130,010 |
K C Holdings (Scotland) Limited (Registered number: SC533323) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 December 2023 |
14. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
Group | Company |
2023 | 2022 | 2023 | 2022 |
£ | £ | £ | £ |
Bank loans and overdrafts (see note 16) | - | 10,000 |
Other loans (see note 16) | - | 90,000 |
Hire purchase contracts (see note 17) | 14,455 | 14,558 |
Trade creditors | 785,502 | 1,188,198 |
Tax | 194,608 | 361,173 |
Social security and other taxes | 79,281 | 117,313 |
Other creditors | 537,943 | 59,331 |
Sundry creditors | 1,411 | 1,411 | - | - |
Accrued expenses | 1,142,755 | 1,751,312 |
2,755,955 | 3,593,296 |
15. | CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR |
Group | Company |
2023 | 2022 | 2023 | 2022 |
£ | £ | £ | £ |
Bank loans (see note 16) | - | 74,259 |
Other loans (see note 16) | - | 375,586 |
Hire purchase contracts (see note 17) | 72,188 | 86,540 |
72,188 | 536,385 |
K C Holdings (Scotland) Limited (Registered number: SC533323) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 December 2023 |
16. | LOANS |
An analysis of the maturity of loans is given below: |
Group | Company |
2023 | 2022 | 2023 | 2022 |
£ | £ | £ | £ |
Amounts falling due within one year or on | demand: |
Bank loans | - | 10,000 |
Other loans | - | 90,000 |
- | 100,000 |
Amounts falling due between one and two years: |
Other loans - 1-2 years | - | 302,411 | - |
Amounts falling due between two and five years: |
Bank loans - 2-5 years | - | 74,259 |
Other loans - 2-5 years | - | 57,586 |
- | 131,845 |
Amounts falling due in more than five years: |
Repayable by instalments |
Other loans more 5yrs instal | - | 15,589 | - | 15,589 |
K C Holdings (Scotland) Limited (Registered number: SC533323) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 December 2023 |
17. | LEASING AGREEMENTS |
Minimum lease payments fall due as follows: |
Group |
Hire purchase contracts |
2023 | 2022 |
£ | £ |
Gross obligations repayable: |
Within one year | 19,561 | 19,561 |
Between one and five years | 77,402 | 96,963 |
96,963 | 116,524 |
Finance charges repayable: |
Within one year | 5,106 | 5,003 |
Between one and five years | 5,214 | 10,423 |
10,320 | 15,426 |
Net obligations repayable: |
Within one year | 14,455 | 14,558 |
Between one and five years | 72,188 | 86,540 |
86,643 | 101,098 |
Group |
Non-cancellable operating | leases |
2023 | 2022 |
£ | £ |
Within one year | 54,296 | 60,573 |
Between one and five years | 185,896 | 196,192 |
In more than five years | 106,333 | 150,333 |
346,525 | 407,098 |
18. | SECURED DEBTS |
The following secured debts are included within creditors: |
Group |
2023 | 2022 |
£ | £ |
Hire purchase contracts | 86,643 | 101,098 |
K C Holdings (Scotland) Limited (Registered number: SC533323) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 December 2023 |
19. | PROVISIONS FOR LIABILITIES |
Group |
2023 | 2022 |
£ | £ |
Deferred tax | 56,949 | 52,448 |
Group |
Deferred |
tax |
£ |
Balance at 1 January 2023 | 52,448 |
Accelerated capital allowances | 4,501 |
Balance at 31 December 2023 | 56,949 |
20. | CALLED UP SHARE CAPITAL |
Allotted and issued: |
Number: | Class: | Nominal | 2023 | 2022 |
value: | £ | £ |
Share capital 1 | £1 | 5,000 | 5,000 |
21. | RESERVES |
Group |
Capital |
Retained | redemption |
earnings | reserve | Totals |
£ | £ | £ |
At 1 January 2023 | 2,344,199 | 5,000 | 2,349,199 |
Profit for the year | 514,545 | 514,545 |
Dividends | (46,999 | ) | (46,999 | ) |
At 31 December 2023 | 2,811,745 | 5,000 | 2,816,745 |
Company |
Retained |
earnings |
£ |
At 1 January 2023 |
Profit for the year |
Dividends | ( |
) |
At 31 December 2023 |
K C Holdings (Scotland) Limited (Registered number: SC533323) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 December 2023 |
22. | PENSION COMMITMENTS |
The group operates a defined contribution pension scheme. the assets of the scheme are held separately from those of the group in an independently administered fund. The pension charge amounted to £50,317 (2022: £96,615). |
23. | RELATED PARTY DISCLOSURES |
Key management personnel of the entity or its parent (in the aggregate) |
2023 | 2022 |
£ | £ |
Sales | 669,528 | 130,141 |
Purchases | 192,748 | 180 |
Rent and expenses recharge | 250,000 | 53,978 |
Management charges | 37,800 | 107,072 |
Amount due from related parties | 339,315 | 417,902 |
Amount due to related party | 606,885 | 90 |