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REGISTERED NUMBER: SC110547 (Scotland)










Strategic Report, Report of the Director and

Financial Statements

for the Year Ended 31 December 2023

for

K C Group Shipping Limited

K C Group Shipping Limited (Registered number: SC110547)






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




Page

Company Information 1

Strategic Report 2

Report of the Director 4

Report of the Independent Auditors 5

Statement of Income and Retained Earnings 9

Balance Sheet 10

Cash Flow Statement 11

Notes to the Cash Flow Statement 12

Notes to the Financial Statements 13


K C Group Shipping 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: SC110547 (Scotland)





AUDITORS: TB Dunn & Co
Statutory Auditor
Ground Floor (part)
8000 Academy Business Park
51 Gower Street
GLASGOW
G51 1PR

K C Group Shipping Limited (Registered number: SC110547)

Strategic Report
for the Year Ended 31 December 2023

The director presents his strategic report for the year ended 31 December 2023.

REVIEW OF BUSINESS
Introduction:
The year 2023 has proven to be one of significant achievement for KC Group Shipping, 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 Shipping 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 Shipping is delighted to report a robust financial performance for 2023. Despite the global downturn, we have successfully delivered a turnover exceeding £11 million, with a profit before tax of over £850,000. 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 Shipping 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 Shipping 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 Shipping 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 Shipping is a leader in the field of international logistics.


K C Group Shipping Limited (Registered number: SC110547)

Strategic Report
for the Year Ended 31 December 2023

PRINCIPAL RISKS AND UNCERTAINTIES
As the Managing Director of KC Group Shipping Limited, it is imperative to provide a comprehensive overview of the principal risks and uncertainties that the company 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 company 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 company'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 company diligently monitors payment patterns and credit levels, facilitating early detection of potential credit issues. This proactive approach to credit risk minimisation ensures that the company 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 company 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 Group Shipping 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 Group Shipping Limited (Registered number: SC110547)

Report of the Director
for the Year Ended 31 December 2023

The director presents his report with the financial statements of the company for the year ended 31 December 2023.

PRINCIPAL ACTIVITY
The principal activity of the company in the year under review was that of international shipping, chartering and forwarding agents.

DIVIDENDS
An interim dividend of 103 per share was paid on 31 December 2023. The director recommends that no final dividend be paid.

The total distribution of dividends for the year ended 31 December 2023 will be £ 515,000 .

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 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), including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'. 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 of the profit or loss of the company 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 transactions and disclose with reasonable accuracy at any time the financial position of the company 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 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 company'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 company'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 Group Shipping Limited

Opinion
We have audited the financial statements of K C Group Shipping Limited (the 'company') for the year ended 31 December 2023 which comprise the Statement of Income and Retained Earnings, Balance Sheet, Cash Flow Statement and Notes to the 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 company's affairs as at 31 December 2023 and of its profit for the year then ended;
-have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
-have been prepared in accordance with the requirements of the Companies Act 2006.

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

Conclusions relating to going concern
In auditing the financial statements, we have concluded that the 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 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 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 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 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 Group Shipping Limited


Matters on which we are required to report by exception
In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic Report or the Report of the 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, or returns adequate for our audit have not been received from branches not visited by us; or
- the financial statements are not in agreement with the accounting records and returns; or
- certain disclosures of 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 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 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 Group Shipping 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 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 environments and business performance including 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 Company'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 company 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 judgement 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 the 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 Group Shipping 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 W Blair (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 Group Shipping Limited (Registered number: SC110547)

Statement of Income and
Retained Earnings
for the Year Ended 31 December 2023

2023 2022
Notes £    £   

TURNOVER 3 11,238,607 20,579,529

Cost of sales 8,990,419 17,548,020
GROSS PROFIT 2,248,188 3,031,509

Administrative expenses 1,782,988 1,823,391
465,200 1,208,118

Other operating income 396,639 515,823
OPERATING PROFIT 5 861,839 1,723,941

Interest receivable and similar income 3,572 -
865,411 1,723,941

Interest payable and similar expenses 6 11,564 9,477
PROFIT BEFORE TAXATION 853,847 1,714,464

Tax on profit 7 228,016 207,989
PROFIT FOR THE FINANCIAL YEAR 625,831 1,506,475

Retained earnings at beginning of year 2,246,072 1,989,597

Dividends 8 (515,000 ) (1,250,000 )

RETAINED EARNINGS AT END OF YEAR 2,356,903 2,246,072

K C Group Shipping Limited (Registered number: SC110547)

Balance Sheet
31 December 2023

2023 2022
Notes £    £    £    £   
FIXED ASSETS
Tangible assets 9 338,334 280,231

CURRENT ASSETS
Debtors 10 1,687,165 2,775,968
Cash at bank 2,981,050 2,325,535
4,668,215 5,101,503
CREDITORS
Amounts falling due within one year 11 2,510,509 2,949,544
NET CURRENT ASSETS 2,157,706 2,151,959
TOTAL ASSETS LESS CURRENT
LIABILITIES

2,496,040

2,432,190

CREDITORS
Amounts falling due after more than one year 12 (72,188 ) (123,670 )

PROVISIONS FOR LIABILITIES 16 (56,949 ) (52,448 )
NET ASSETS 2,366,903 2,256,072

CAPITAL AND RESERVES
Called up share capital 17 5,000 5,000
Capital redemption reserve 18 5,000 5,000
Retained earnings 18 2,356,903 2,246,072
SHAREHOLDERS' FUNDS 2,366,903 2,256,072

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 Group Shipping Limited (Registered number: SC110547)

Cash Flow Statement
for the Year Ended 31 December 2023

2023 2022
Notes £    £   
Cash flows from operating activities
Cash generated from operations 1 1,477,848 3,280,290
Interest paid (2,545 ) (4,474 )
Interest element of hire purchase payments paid (9,019 ) (5,003 )
Tax paid (125,641 ) (226,329 )
Net cash from operating activities 1,340,643 3,044,484

Cash flows from investing activities
Purchase of tangible fixed assets (117,115 ) (60,741 )
Interest received 3,572 -
Net cash from investing activities (113,543 ) (60,741 )

Cash flows from financing activities
Loan repayments in year (42,130 ) (5,555 )
Capital repayments in year (14,455 ) (14,558 )
Equity dividends paid (515,000 ) (1,250,000 )
Net cash from financing activities (571,585 ) (1,270,113 )

Increase in cash and cash equivalents 655,515 1,713,630
Cash and cash equivalents at beginning of
year

2

2,325,535

611,905

Cash and cash equivalents at end of year 2 2,981,050 2,325,535

K C Group Shipping Limited (Registered number: SC110547)

Notes to the 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 853,847 1,714,464
Depreciation charges 59,012 52,236
Finance costs 11,564 9,477
Finance income (3,572 ) -
920,851 1,776,177
Decrease in trade and other debtors 829,350 2,431,759
Decrease in trade and other creditors (272,353 ) (927,646 )
Cash generated from operations 1,477,848 3,280,290

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 2,981,050 2,325,535
Year ended 31 December 2022
31.12.22 1.1.22
£    £   
Cash and cash equivalents 2,325,535 611,905


3. ANALYSIS OF CHANGES IN NET FUNDS

At 1.1.23 Cash flow At 31.12.23
£    £    £   
Net cash
Cash at bank 2,325,535 655,515 2,981,050
2,325,535 655,515 2,981,050
Debt
Finance leases (101,098 ) 14,455 (86,643 )
Debts falling due within 1 year (5,000 ) 5,000 -
Debts falling due after 1 year (37,130 ) 37,130 -
(143,228 ) 56,585 (86,643 )
Total 2,182,307 712,100 2,894,407

K C Group Shipping Limited (Registered number: SC110547)

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

1. STATUTORY INFORMATION

K C Group Shipping 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 Company 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.

Significant judgements and estimates
Estimates and judgements are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. Although these estimates are based on management's best knowledge of the amount, events or actions, actual results ultimately may differ from those estimates.

Turnover
Turnover is measured at the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes.

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.
Fixtures and fittings - 10% on cost
Motor vehicles - 25% on cost
Computer equipment - 25% on cost

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

K C Group Shipping Limited (Registered number: SC110547)

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

2. 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 company operates a defined contribution pension scheme. Contributions payable to the company's pension scheme are charged to profit or loss in the period to which they relate.

Debtors
Short term debtors are measured at transaction price, less any impairment.

Cash and cash equivalents

Cash is represented by cash in hand and deposits with financial instruments repayable without penalty on notice of not more than 24 hours. Cash equivalents are highly liquid investments that mature in no more than three month from the date of acquisition and that are readily convertible to known amounts of cash with insignificant risk of change in value.

Creditors

Short term creditors are measured at the transaction price. Other financial liabilities, including bank loans, are measured initially at the fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method.

3. TURNOVER

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

An analysis of turnover by geographical market is given below:

2023 2022
£    £   
United Kingdom 9,442,873 17,084,190
Europe 758,854 1,053,596
Rest of the world 1,036,880 2,441,743
11,238,607 20,579,529

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

K C Group Shipping Limited (Registered number: SC110547)

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

4. EMPLOYEES AND DIRECTORS - continued

The average number of employees during the year was as follows:
2023 2022

Directors 1 1
Administration 30 28
31 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 35,281
Depreciation - assets on hire purchase contracts 16,953 16,954
Auditors' remuneration 6,000 6,600
Foreign exchange differences 2,495 (144,922 )

6. INTEREST PAYABLE AND SIMILAR EXPENSES
2023 2022
£    £   
Interest paid 2,077 3,360
Loan 468 1,114
Hire purchase 5,106 5,003
Other interest 3,913 -
11,564 9,477

K C Group Shipping Limited (Registered number: SC110547)

Notes to the 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 216,893 206,289
Prior year underprovision 6,622 -
Total current tax 223,515 206,289

Deferred tax 4,501 1,700
Tax on profit 228,016 207,989

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:

2023 2022
£    £   
Profit before tax 853,847 1,714,464
Profit multiplied by the standard rate of corporation tax in the UK of 23.520%
(2022 - 19%)

200,825

325,748

Effects of:
Expenses not deductible for tax purposes 8,977 7,876
Capital allowances in excess of depreciation - (2,843 )
Depreciation in excess of capital allowances 12,436 -
R&D Claim - (122,194 )
Group relief (850 ) (598 )
Prior year underprovision 6,622 -
Rounding 6 -
Total tax charge 228,016 207,989

8. DIVIDENDS
2023 2022
£    £   
Ordinary shares of £1 each
Interim 515,000 1,250,000

K C Group Shipping Limited (Registered number: SC110547)

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

9. TANGIBLE FIXED ASSETS
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

10. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
2023 2022
£    £   
Trade debtors 1,346,662 2,032,945
Amounts owed by group undertakings 288,157 396,103
Other debtors - 36,423
Tax - 236,978
VAT 22,717 28,401
Prepayments & accrued income 29,629 45,118
1,687,165 2,775,968

K C Group Shipping Limited (Registered number: SC110547)

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

11. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
2023 2022
£    £   
Bank loans and overdrafts (see note 13) - 5,000
Hire purchase contracts (see note 14) 14,455 14,558
Trade creditors 647,335 996,972
Amounts owed to group undertakings 141,934 23,917
Tax 189,378 328,482
Social security and other taxes 79,281 117,313
Other creditors 537,943 59,331
Sundry creditors 1,411 1,411
Accrued expenses 898,772 1,402,560
2,510,509 2,949,544

12. CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR
2023 2022
£    £   
Bank loans (see note 13) - 37,130
Hire purchase contracts (see note 14) 72,188 86,540
72,188 123,670

13. LOANS

An analysis of the maturity of loans is given below:

2023 2022
£    £   
Amounts falling due within one year or on demand:
Bank loans - 5,000

Amounts falling due between two and five years:
Bank loans - 2-5 years - 37,130

K C Group Shipping Limited (Registered number: SC110547)

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

14. LEASING AGREEMENTS

Minimum lease payments fall due as follows:

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

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

15. SECURED DEBTS

The following secured debts are included within creditors:

2023 2022
£    £   
Hire purchase contracts 86,643 101,098

16. PROVISIONS FOR LIABILITIES
2023 2022
£    £   
Deferred tax 56,949 52,448

K C Group Shipping Limited (Registered number: SC110547)

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

16. PROVISIONS FOR LIABILITIES - continued

Deferred
tax
£   
Balance at 1 January 2023 52,448
Accelerated capital allowances 4,501
Balance at 31 December 2023 56,949

17. CALLED UP SHARE CAPITAL

Allotted, issued and fully paid:
Number: Class: Nominal 2023 2022
value: £    £   
5,000 Ordinary £1 5,000 5,000

18. RESERVES
Capital
Retained redemption
earnings reserve Totals
£    £    £   

At 1 January 2023 2,246,072 5,000 2,251,072
Profit for the year 625,831 625,831
Dividends (515,000 ) (515,000 )
At 31 December 2023 2,356,903 5,000 2,361,903

19. PENSION COMMITMENTS

The company operates a defined contribution pension scheme. the assets of the scheme are held separately from those of the company in an independently administered fund. The pension charge amounted to £50,317 (2022: £96,615).

20. ULTIMATE PARENT COMPANY

KC Holdings (Scotland) Limited is regarded by the director as being the company's ultimate parent company.

K C Holdings (Scotland) Limited, a company registered in Scotland, prepares group financial statements which can be obtained from South Suite, 5 Seaward Place, Glasgow, G41 1HH.

21. RELATED PARTY DISCLOSURES

During the year the company issued management fees to companies over which the director of the company had significant influence. These totalled £360,200 (2022 - £481,000).

As at 31 December 2023 the company owed a total of £565,897 (2022 - £121,326) to other companies over which the director of the company had significant influence.

The director has authority and responsibility for planning, directing and controlling the activities of the company and is considered to be key personnel. Total remuneration in respect of key personnel is £120,065 (£217,132).