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REGISTERED NUMBER: 00747250










Unaudited Financial Statements

for the Year Ended 31 January 2024

for

Kossway Automatics Limited

Kossway Automatics Limited (Registered number: 00747250)






Contents of the Financial Statements
for the Year Ended 31 January 2024




Page

Company Information 1

Balance Sheet 2

Notes to the Financial Statements 4


Kossway Automatics Limited

Company Information
for the Year Ended 31 January 2024







DIRECTORS: Paul Conway
Gerald Koss
Joanna Conway
Joshua Conway
Daniel Conway





REGISTERED OFFICE: 8 The Ridgeway Trading Estate
Iver
Buckinghamshire
SL09HJ





REGISTERED NUMBER: 00747250





ACCOUNTANTS: Ramon Lee Ltd
93 Tabernacle Street
London
EC2A 4BA

Kossway Automatics Limited (Registered number: 00747250)

Balance Sheet
31 January 2024

2024 2023
Notes £    £   
FIXED ASSETS
Intangible assets 4 1 8,000
Tangible assets 5 1,431,655 896,114
1,431,656 904,114

CURRENT ASSETS
Stocks 6 26,596 24,899
Debtors 7 1,904,093 1,850,800
Cash at bank 863,144 580,697
2,793,833 2,456,396
CREDITORS
Amounts falling due within one year 8 (867,895 ) (902,815 )
NET CURRENT ASSETS 1,925,938 1,553,581
TOTAL ASSETS LESS CURRENT
LIABILITIES

3,357,594

2,457,695

CREDITORS
Amounts falling due after more than one year 9 (15,420 ) (25,676 )
NET ASSETS 3,342,174 2,432,019

CAPITAL AND RESERVES
Called up share capital 10 69,190 69,190
Retained earnings 3,272,984 2,362,829
SHAREHOLDERS' FUNDS 3,342,174 2,432,019

The company is entitled to exemption from audit under Section 477 of the Companies Act 2006 for the year ended 31 January 2024.

The members have not required the company to obtain an audit of its financial statements for the year ended 31 January 2024 in accordance with Section 476 of the Companies Act 2006.

The directors acknowledge their responsibilities for:
(a)ensuring that the company keeps accounting records which comply with Sections 386 and 387 of the Companies Act 2006 and
(b)preparing financial statements which give a true and fair view of the state of affairs of the company as at the end of each financial year and of its profit or loss for each financial year in accordance with the requirements of Sections 394 and 395 and which otherwise comply with the requirements of the Companies Act 2006 relating to financial statements, so far as applicable to the company.

Kossway Automatics Limited (Registered number: 00747250)

Balance Sheet - continued
31 January 2024


The financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime.

In accordance with Section 444 of the Companies Act 2006, the Profit and Loss Account has not been delivered.

The financial statements were approved by the Board of Directors and authorised for issue on 18 September 2024 and were signed on its behalf by:





Paul Conway - Director


Kossway Automatics Limited (Registered number: 00747250)

Notes to the Financial Statements
for the Year Ended 31 January 2024

1. STATUTORY INFORMATION

Kossway Automatics Limited is a private company, limited by shares , registered in Not specified/Other. 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 FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) including the provisions of Section 1A "Small Entities"and the requirements of the Companies Act 2006.

The financial statements are prepared in sterling , which is the functional currency of the company.
Monetary amounts in these financial statements are rounded to the nearest £.

The financial statements have been prepared on the historical cost convention, modified to include certain financial instruments at fair value. The principal accounting policies adopted are set out below.


GOING CONCERN
A t the time of approving the financial statements , the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.

TURNOVER
Turnover is measured at the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes for the goods sold in the normal course of business.

INTANGIBLE FIXED ASSETS - GOODWILL
Goodwill represents the excess of the cost of acquisition of unincorporated businesses over the fair value of net assets acquired. It is initially recognised as an asset at cost and is subsequently measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is considered to have a finite useful life and is amortised on a systematic basis over its expected life, which is 5 years.

For the purposes of impairment testing, goodwill is allocated to the cash-generating units expected to benefit from the acquisition. Cash-generating units to which goodwill has been allocated are tested for impairment at least annually, or more frequently when there is an indication that the unit may be impaired. If the recoverable amount of the cash-generating unit is less than the carrying amount of the unit, the impairment loss is allocated first to reduce the carrying amount of any goodwill allocated to the unit and then to the other assets of the unit pro-rata on the basis of the carrying amount of each asset in the unit.

Kossway Automatics Limited (Registered number: 00747250)

Notes to the Financial Statements - continued
for the Year Ended 31 January 2024

2. ACCOUNTING POLICIES - continued

TANGIBLE FIXED ASSETS
Tangible fixed assets are initially measured at cost (or deemed cost) and subsequently measured at cost, net of accumulated depreciation and any accumulated impairment losses.

Depreciation is recognised so as to write off the cost of assets less their residual values over their useful lives on the following bases:

Land and buildings Freehold 2% on cost
Land and buildings Leasehold 2% on cost
Plant and machinery between 2 and 6 years
Fixtures, fittings & equipment 15% on cost
Motor vehicles 20% on cost

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is credited or charged to profit or loss .

FIXED ASSETS INVESTMENTS
Fixed asset investments are initially measured at cost and subsequently measured at valuation, net of impairment losses.

IMPAIRMENT OF FIXED ASSETS
At each reporting period end date, the company reviews the carrying amounts of its tangible and intangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.

Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.

If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.

Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.

Kossway Automatics Limited (Registered number: 00747250)

Notes to the Financial Statements - continued
for the Year Ended 31 January 2024

2. ACCOUNTING POLICIES - continued

STOCKS
Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition.

Stocks held for distribution at no or nominal consideration are measured at the lower of replacement cost and cost, adjusted where applicable for any loss of service potential.

At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.

FINANCIAL INSTRUMENTS
The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.

Financial instruments are recognised in the company's balance sheet when the company becomes party to the contractual provisions of the instrument.

Financial assets and liabilities are offset , with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

BASIC FINANCIAL ASSETS
Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.

CLASSIFICATION OF FINANCIAL LIABILITIES
Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.

BASIC FINANCIAL LIABILITIES
Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payment ts discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.


Kossway Automatics Limited (Registered number: 00747250)

Notes to the Financial Statements - continued
for the Year Ended 31 January 2024

2. ACCOUNTING POLICIES - continued
TAXATION
Taxation for the year comprises current and deferred tax. Tax is recognised in the Profit and Loss Account, 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.

CASH AND CASH EQUIVALENTS
Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

EMPLOYEE BENEFITS
The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.

The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.

Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

RETIREMENT BENEFITS
The company operates defined contribution scheme s for the benefit of its employees. Contributions payable are charged to the profit and loss account in the year they are payable.

GOVERNMENT GRANTS
Government grants are recognised at the fair value of the asset receive d or receivable when there is reasonable assurance that the grant conditions will be met and the grants will be received.

A grant that specifies performance conditions is recognised in income when the performance conditions are met . Where a grant does not specify performance conditions it is recognised in income when the proceeds are received or receivable . A grant received before the recognition criteria are satisfied is recognised as a liability.

3. EMPLOYEES AND DIRECTORS

The average number of employees during the year was 66 (2023 - 69 ) .

Kossway Automatics Limited (Registered number: 00747250)

Notes to the Financial Statements - continued
for the Year Ended 31 January 2024

4. INTANGIBLE FIXED ASSETS
Goodwill
£   
COST
At 1 February 2023 137,000
Disposals (30,000 )
At 31 January 2024 107,000
AMORTISATION
At 1 February 2023 129,000
Amortisation for year (22,001 )
At 31 January 2024 106,999
NET BOOK VALUE
At 31 January 2024 1
At 31 January 2023 8,000

5. TANGIBLE FIXED ASSETS
Freehold Long Plant and
property leasehold machinery
£    £    £   
COST
At 1 February 2023 550 111,758 4,993,343
Additions - - 803,614
Disposals - - (526,047 )
At 31 January 2024 550 111,758 5,270,910
DEPRECIATION
At 1 February 2023 - 82,813 4,373,269
Charge for year - 1,157 268,901
Eliminated on disposal - - (511,353 )
At 31 January 2024 - 83,970 4,130,817
NET BOOK VALUE
At 31 January 2024 550 27,788 1,140,093
At 31 January 2023 550 28,945 620,074

Kossway Automatics Limited (Registered number: 00747250)

Notes to the Financial Statements - continued
for the Year Ended 31 January 2024

5. TANGIBLE FIXED ASSETS - continued

Fixtures
and Motor
fittings vehicles Totals
£    £    £   
COST
At 1 February 2023 834,025 791,806 6,731,482
Additions 282 110,348 914,244
Disposals - (110,995 ) (637,042 )
At 31 January 2024 834,307 791,159 7,008,684
DEPRECIATION
At 1 February 2023 825,598 553,688 5,835,368
Charge for year 2,970 90,638 363,666
Eliminated on disposal - (110,652 ) (622,005 )
At 31 January 2024 828,568 533,674 5,577,029
NET BOOK VALUE
At 31 January 2024 5,739 257,485 1,431,655
At 31 January 2023 8,427 238,118 896,114

6. STOCKS
2024 2023
£    £   
Stocks 26,596 24,899

7. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
2024 2023
£    £   
Trade debtors 215,463 255,324
Amounts owed by group undertakings 1,563,353 1,562,352
Other debtors 13,452 7,429
Prepayments and accrued income 104,698 25,695
Tax 7,127 -
1,904,093 1,850,800

Kossway Automatics Limited (Registered number: 00747250)

Notes to the Financial Statements - continued
for the Year Ended 31 January 2024

8. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
2024 2023
£    £   
Bank loans and overdrafts 10,411 10,154
Purchase ledger control accoun 482,243 420,222
Other Creditors - 26,963
Corporation tax payable - 95,590
VAT control account 200,096 192,308
PAYE control account 83,225 72,831
Net Wages 17 -
Accruals and deferred income 91,903 84,747
867,895 902,815

9. CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE
YEAR
2024 2023
£    £   
Bank Loans and Overdraft 15,420 25,676

10. CALLED UP SHARE CAPITAL

Allotted, issued and fully paid:
Number: Class: Nominal 2024 2023
value: £    £   
69,190 Ordinary share capital 1 69,190 69,190

11. ULTIMATE CONTROLLING PARTY

During 2023, certain shareholders of the company sold their shares to Kossway Trustees Limited (Acting in its capacity as a Trustee of the Kossway Employee Ownership Trust) which is now the ultimate controlling party.

The Company is the settler and sponsor of the Kossway Trustees Limited, a private company limited by share capital which was incorporated on 16th November 2022. Since the time of its incorporation, the Kossway Trustees Limited has operated independently of the Company, acting through its members. The Company has no control over the assets and liabilities of the Kossway Trustees Limited and, consequently, the assets and liabilities of the Kossway Trustees Limited are not recognised in the Company accounts. The Company policy is that its contributions to the Kossway Trustees Limited, which are paid out of distributable reserves, are made on a voluntary basis, and are not governed by any form of binding arrangement whatsoever.

On the 16th November 2022, the Trust enters in to a transaction with the shareholders of the company for the purchase of 48,433 ordinary shares, presenting 70% of the issue share capital of the company for a total consideration of £8,575,000. The company settles the Trust with an initial trustee of £10 and subsequently made a voluntary contribution to the Trust in the financial year of £6,912,500.