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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: D W Milne





REGISTERED OFFICE: South Suite
5 Seaward Place
Glasgow
G41 1HH





REGISTERED NUMBER: SC533323 (Scotland)





AUDITORS: TB Dunn & Co
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:





D W Milne - Director


12 September 2024

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
D W Milne held office during the whole of the period from 1 January 2023 to the date of this report.

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:





D W Milne - Director


12 September 2024

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.




Mark Blair FCCA (Senior Statutory Auditor)
for and on behalf of TB Dunn & Co
Statutory Auditor
Ground Floor (part)
8000 Academy Business Park
51 Gower Street
GLASGOW
G51 1PR

12 September 2024

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 514,545 1,528,638

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 2,233,700 2,233,700
2,233,700 2,233,700

CURRENT ASSETS
Debtors 13 32,525 33,723

CREDITORS
Amounts falling due within one year 14 99,478 172,007
NET CURRENT LIABILITIES (66,953 ) (138,284 )
TOTAL ASSETS LESS CURRENT
LIABILITIES

2,166,747

2,095,416

CREDITORS
Amounts falling due after more than one year 15 - 375,586
NET ASSETS 2,166,747 1,719,830

CAPITAL AND RESERVES
Called up share capital 20 5,000 5,000
Retained earnings 21 2,161,747 1,714,830
SHAREHOLDERS' FUNDS 2,166,747 1,719,830

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 12 September 2024 and were signed by:





D W Milne - Director


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 private company, limited by shares , registered in Scotland. The company's registered number and registered office address can be found on the General Information page.

The presentation currency of the financial statements is the Pound Sterling (£).


2. ACCOUNTING POLICIES

Basis of preparing the financial statements
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. The financial statements have been prepared under the historical cost convention.

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
Goodwill, being the amount paid in connection with the acquisition of a business in 2016, is being amortised evenly over its estimated useful life of ten years.

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
Depreciation is provided at the following annual rates in order to write off the cost less estimated residual value of each asset over its estimated useful life or, if held under a finance lease, over the lease term, whichever is the shorter.
Fixtures and fittings - 20% on cost and 10% on cost
Motor vehicles - 25% on cost
Computer equipment - 25% on cost

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
31 29

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 2,233,700
NET BOOK VALUE
At 31 December 2023 2,233,700
At 31 December 2022 2,233,700

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 - - 32,525 33,723
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 32,525 33,723

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 - 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 99,478 82,007
2,755,955 3,593,296 99,478 172,007

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 - 375,586
Hire purchase contracts (see note 17) 72,188 86,540 - -
72,188 536,385 - 375,586

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 - 90,000
- 100,000 - 90,000
Amounts falling due between one and two years:
Other loans - 1-2 years - 302,411 - 302,411
Amounts falling due between two and five years:
Bank loans - 2-5 years - 74,259 - -
Other loans - 2-5 years - 57,586 - 57,586
- 131,845 - 57,586
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: £    £   
5,000 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 1,714,830
Profit for the year 493,916
Dividends (46,999 )
At 31 December 2023 2,161,747


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