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Kettlewell Colours Limited

Annual Report and Financial Statements
Year Ended 31 January 2024

Registration number: 05108080

 

Kettlewell Colours Limited

Contents

Company Information

1

Directors' Report

2 to 3

Statement of Directors' Responsibilities

4

Independent Auditor's Report

5 to 7

Income Statement

8

Statement of Comprehensive Income

9

Statement of Financial Position

10 to 11

Statement of Changes in Equity

12

Notes to the Financial Statements

13 to 28

 

Kettlewell Colours Limited

Company Information

Directors

Mrs M J Nicholson

Mr H T Bergs

Mrs K A Whitworth

Mr B L M Barnett

Mr J Williams

Mr S G Mackenzie

Mr N R Whitworth

Ms A Fadeeva

Mr T Sarucan

Registered office

Units 2 & 2a Indian Queens Industrial Estate
Indian Queens
St Columb
Cornwall
TR9 6TF

Auditors

PKF Francis Clark
Statutory Auditor
Melville Building East
Unit 18, 23 Royal William Yard
Plymouth
Devon
PL1 3GW

 

Kettlewell Colours Limited

Directors' Report for the Year Ended 31 January 2024

The Directors present their report and the financial statements for the year ended 31 January 2024. The prior period was from 1 May 2022 to 31 January 2023.

This report has been prepared in accordance with the special provisions of section 381 of the Companies Act 2006 relating to small companies. The Directors have taken exemption under this regime not to disclose the strategic report.

Directors' of the Company

The Directors, who held office during the year, were as follows:

Mrs M J Nicholson

Mr H T Bergs

Mrs K A Whitworth

Mr L E Harlow (ceased 22 May 2023)

Mr B L M Barnett

Mr J Williams

Mr S G Mackenzie

Mr N R Whitworth

Ms A Fadeeva (appointed 22 May 2023)

Mr T Sarucan (appointed 30 January 2024)

Principal activity

The principal activity of the Company is online clothing retail sales.

Dividends

The Directors do not recommend the payment of a dividend. The profit for the year will be taken to reserves.

Political contributions
The Company made no political donations or incurred no political expenditure during the year.

Charitable donations
During the year the Company made no significant charitable donations.

Going concern

Based on projections and forecasts prepared at Group and Company level the board considers the Company a going concern and therefore have continued to adopt the going concern basis. The Company has a current and overall net asset base at year end.

Disclosure of information to the auditors

Each Director has taken steps that they ought to have taken as a Director in order to make themselves aware of any relevant audit information and to establish that the Company's auditor is aware of that information. The Directors confirm that there is no relevant information that they know of and of which they know the auditor is unaware.

Small companies provision statement

This report has been prepared in accordance with the small companies regime under the Companies Act 2006.

 

Kettlewell Colours Limited

Directors' Report for the Year Ended 31 January 2024

Approved by the Board on 28 October 2024 and signed on its behalf by:
 

.........................................
Mr J Williams
Director

 

Kettlewell Colours Limited

Statement of Directors' Responsibilities

The Directors acknowledge their responsibilities for preparing the Annual Report and the financial statements in accordance with applicable law and regulations.

Company law requires the Directors to prepare financial statements for each financial year. Under that law the Directors have elected to prepare the financial statements in accordance with United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including FRS 101 'Reduced Disclosure Framework' ('FRS 101'). Under Company law the Directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the Company and of the profit or loss of the Company for that period. In preparing these financial statements, the Directors are required to:

select suitable accounting policies and apply them consistently;

make judgements and accounting estimates that are reasonable and prudent;

state whether FRS 101 has been followed, subject to any material departures disclosed and explained in the financial statements; and

prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Company will continue in business.

The Directors are responsible for keeping adequate accounting records that are sufficient to show and explain the Company's transactions and disclose with reasonable accuracy at any time the financial position of the Company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the Company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

 

Kettlewell Colours Limited

Independent Auditor's Report to the Members of Kettlewell Colours Limited

Opinion

We have audited the financial statements of Kettlewell Colours Limited (the 'Company') for the year ended 31 January 2024, which comprise the Income Statement, Statement of Comprehensive Income, Statement of Financial Position, Statement of Changes in Equity, and 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 (United Kingdom Generally Accepted Accounting Practice), including FRS 101 'Reduced Disclosure Framework', in accordance with the provisions applicable to companies subject to the small companies regime.

In our opinion the financial statements:

give a true and fair view of the state of the Company's affairs as at 31 January 2024 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 auditor 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 Directors use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the Company's ability to continue as a going concern for a period of at least twelve months from when the original financial statements were authorised for issue.

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

Other information

The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report 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 there is a material misstatement in the financial statements or a material misstatement of the other information. 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.

 

Kettlewell Colours Limited

Independent Auditor's Report to the Members of Kettlewell Colours Limited

Opinion on other matter 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 Directors' Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and

the Directors' Report has been prepared in accordance with applicable legal requirements.

Matters on which we are required to report by exception

In the light of our knowledge and understanding of the Company and its environment obtained in the course of the audit, we have not identified material misstatements in the Directors' Report.

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 Directors’ remuneration specified by law are not made; or

we have not received all the information and explanations we require for our audit; or

the Directors were not entitled to prepare the financial statements in accordance with the small companies regime and take advantage of the small companies' exemptions in preparing the Directors' Report and from the requirement to prepare a Strategic Report.

Responsibilities of Directors

As explained more fully in the Statement of Directors' Responsibilities, set out on page 4, the Directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the Directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the Directors are responsible for assessing the Company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the Directors either intend to liquidate the Company or to cease operations, or have no realistic alternative but to do so.

Auditor 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 an auditor’s report 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.

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:

 

Kettlewell Colours Limited

Independent Auditor's Report to the Members of Kettlewell Colours Limited

We considered those laws and regulations that have a direct impact on the preparation of the financial statements, including, but not limited to the reporting framework (FRS101 and Companies Act 2006) and the relevant tax compliance regulations in the UK.

As part of our planning procedures, we assessed the risk of any non-compliance with laws and regulations on the entity’s ability to continue operating and the risk of material misstatement to the accounts. Based on this understanding we designed our audit procedures to identify non-compliance with such laws and regulations. Our procedures involved the following:
• Reviewing legal and professional costs to identify legal costs in respect of non compliance;
• Making enquiries with management whether there have been any known instances, allegations or suspicions of fraud or non-compliance with laws and regulations;
• Review of tax compliance; and
• Reviewing board minutes where available.

We evaluated management’s incentives and opportunities for fraudulent manipulation of the financial statements (including the risk of override of controls), and determined that the principal risks were related to fraudulent financial reporting. Our procedures involved the following;
• Substantive testing of sales occurrence;
• Reviewing nominal journal entries for reasonableness;
• Reviewing significant accounting estimates for bias; and
• Reviewing inventories for evidence of impairment.

Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements. This risk increases the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements as we are less likely to become aware of instances of non-compliance. The risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment, collusion, omission or misrepresentation.

A further description of our responsibilities is available on the Financial Reporting Council’s website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.

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 an auditor’s report 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.

......................................
James Barrett (Senior Statutory Auditor)
For and on behalf of PKF Francis Clark, Statutory Auditor

Melville Building East
Unit 18, 23 Royal William Yard
Plymouth
Devon
PL1 3GW

29 October 2024

 

Kettlewell Colours Limited

Income Statement

Year Ended 31 January 2024

Note

2024
£

9 month period
2023
£

Turnover

4

8,633,396

6,233,340

Cost of sales

 

(2,470,793)

(1,833,098)

Gross profit

 

6,162,603

4,400,242

Distribution costs

 

(1,094,490)

(767,570)

Administrative expenses

 

(3,703,177)

(2,554,586)

Operating profit

5

1,364,936

1,078,086

Interest receivable and similar income

6

401,550

2,721

Interest payable and similar expenses

7

(3,177)

(3,042)

 

398,373

(321)

Profit before tax

 

1,763,309

1,077,765

Tax on profit

11

(85,674)

(121,692)

Profit for the year

 

1,677,635

956,073

The above results were derived from continuing operations.

 

Kettlewell Colours Limited

Statement of Comprehensive Income

Year Ended 31 January 2024

2024
£

2023
£

Profit for the year

1,677,635

956,073

Total comprehensive income for the year

1,677,635

956,073

 

Kettlewell Colours Limited

Statement of Financial Position

31 January 2024

Note

31 January
2024
£

31 January
2023
£

Assets

Non-current assets

 

Property, plant and equipment

13

162,415

83,086

Right of use assets

14

39,209

86,259

Intangible assets

12

55,974

14,849

Trade and other receivables

16

5,577,086

5,577,086

 

5,834,684

5,761,280

Current assets

 

Inventories

15

985,286

976,992

Trade and other receivables

16

2,053,625

107,406

Cash and cash equivalents

17

608,845

1,051,550

 

3,647,756

2,135,948

Total assets

 

9,482,440

7,897,228

Equity and liabilities

Equity

 

Called up share capital

20

2

2

Retained earnings

 

8,608,699

6,931,064

 

8,608,701

6,931,066

Non-current liabilities

 

Long term lease liabilities

19

-

43,834

Deferred tax liabilities

11

26,435

21,556

 

26,435

65,390

Current liabilities

 

Trade and other payables

18

710,615

796,605

Current portion of long term lease liabilities

19

43,834

51,323

Income tax liability

 

85,298

52,844

Deferred income

 

7,557

-

 

847,304

900,772

Total liabilities

 

873,739

966,162

Total equity and liabilities

 

9,482,440

7,897,228

 

Kettlewell Colours Limited

Statement of Financial Position

31 January 2024

These accounts have been prepared in accordance with the provisions applicable to companies subject to the small companies regime.

Approved by the Board and authorised for use on 28 October 2024 and signed on its behalf by:

.........................................

Mr J Williams

Director

Company registration number: 05108080

 

Kettlewell Colours Limited

Statement of Changes in Equity

Year Ended 31 January 2024

Share capital
£

Retained earnings
£

Total
£

At 1 February 2023

2

6,931,064

6,931,066

Profit for the year

-

1,677,635

1,677,635

Total comprehensive income

-

1,677,635

1,677,635

At 31 January 2024

2

8,608,699

8,608,701


 

Share capital
£

Retained earnings
£

Total
£

At 1 May 2022

2

5,974,991

5,974,993

Profit for the year

-

956,073

956,073

Total comprehensive income

-

956,073

956,073

At 31 January 2023

2

6,931,064

6,931,066

 

Kettlewell Colours Limited

Notes to the Financial Statements

Year Ended 31 January 2024

1

General information

The Company is a private company limited by share capital, incorporated and domiciled in England and Wales.

The address of its registered office is:
Units 2 & 2a Indian Queens Industrial Estate
Indian Queens
St Columb
Cornwall
TR9 6TF

The principal place of business is:
Goldenhaye Industrial Estate
Chard
TA20 4BN

2

Accounting policies

Summary of significant accounting policies and key accounting estimates

The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.

Basis of preparation
These financial statements were prepared in accordance with Financial Reporting Standard 101 Reduced Disclosure Framework.

Summary of disclosure exemptions
The Company has taken advantage of the following disclosure exemptions:
(1) Cash flow statement
(2) Key management personnel remuneration
(3) Transactions with parent company and wholly owned subsidiaries
(4) Applicable financial instrument and fair value disclosure
(5) Impact of new IFRS standards that have been issued but are not yet effective.
 

Going concern

The Directors have carefully considered the Company’s financial position, liquidity and future cash-flow requirements. Accordingly based on the forecasts the Directors have prepared for the Company and Group, they have a reasonable expectation that the Company has adequate resources to continue in operational existence for the foreseeable future and they believe it is appropriate to apply the going concern basis of accounting in preparing the financial statements. The Group remain profitable as a whole and there has been reassurances received from the Directors of the Group companies that support would be forthcoming if needed by the Company.

Changes in accounting policy

None of the standards, interpretations and amendments effective for the first time from 1 February 2023 have had a material effect on the financial statements.

 

Kettlewell Colours Limited

Notes to the Financial Statements

Year Ended 31 January 2024

Revenue recognition

Recognition

The Company earns revenue from the sale of goods. Turnover comprises the fair value of the consideration received or receivable for the sale of goods in the ordinary course of the Company's activities. Turnover is shown net of value added tax, returns, rebates and discounts.

Revenue is recognised at point of dispatch for sale of goods. There are no contracts whose performance obligations are satisfied over time. Contracts with customers do not contain a financing component or any element of variable consideration. The Company does not offer an option to purchase a warranty. This revenue is recognised in the accounting period when control of the product has been transferred, at an amount that reflects the consideration to which the entity expects to be entitled in exchange for fulfilling its performance obligations to customers.

Foreign currency transactions and balances

Transactions in foreign currencies are initially recorded at the functional currency rate prevailing at the date of the transaction. Monetary assets and liabilities denominated in foreign currencies are retranslated into the respective functional currency of the entity at the rates prevailing on the reporting period date. Non-monetary items carried at fair value that are denominated in foreign currencies are retranslated at the rates prevailing on the initial transaction dates. Non-monetary items measured in terms of historical cost in a foreign currency are not retranslated.

Tax

The tax expense for the period comprises current and deferred tax. Tax is recognised in profit or loss, except that a change attributable to an item of income or expense recognised as other comprehensive income is also recognised directly in other comprehensive income.

The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the reporting date in the countries where the Company operates and generates taxable income.

Deferred income tax is recognised on temporary differences arising between the tax bases of assets and liabilities and their carrying amounts in the financial statements and on unused tax losses or tax credits in the Company. Deferred income tax is determined using tax rates and laws that have been enacted or substantively enacted by the reporting date.

The carrying amount of deferred tax assets are reviewed at each reporting date and a valuation allowance is set up against deferred tax assets so that the net carrying amount equals the highest amount that is more likely than not to be recovered based on current or future taxable profit.

Property, plant and equipment

Property, plant and equipment is stated in the statement of financial position at cost, less any subsequent accumulated depreciation and subsequent accumulated impairment losses.

The cost of property, plant and equipment includes directly attributable incremental costs incurred in their acquisition and installation.

 

Kettlewell Colours Limited

Notes to the Financial Statements

Year Ended 31 January 2024

Depreciation

Depreciation is charged so as to write off the cost of assets, other than land and properties under construction over their estimated useful lives, as follows:

Asset class

Depreciation method and rate

Leasehold land and buildings

10-20% straight line

Furniture, fittings and equipment

20-33% straight line

Other property, plant and equipment

20% straight line

Right-of-use asset
Right-of-use assets consist of a lease for a property under IFRS 16. These assets are depreciated over the shorter of the lease term and the useful life of the underlying asset. Depreciation starts at the commencement date of the lease and has been charged at 14% straight line.

Intangible assets

Website development costs are stated in the balance sheet at cost, less any subsequent accumulated amortisation and subsequent accumulated impairment losses.

Amortisation

Amortisation is provided on intangible assets so as to write off the cost, less any estimated residual value, over their expected useful economic life as follows:

Asset class

Amortisation method and rate

Website and software development

33% straight line

Cash and cash equivalents

Cash and cash equivalents comprise cash on hand and call deposits, and other short-term highly liquid investments that are readily convertible to a known amount of cash and are subject to an insignificant risk of changes in value.

Trade receivables

Trade receivables are amounts due from customers for goods sold in the ordinary course of business. If collection is expected in one year or less (or in the normal operating cycle of the business if longer), they are classified as current assets. If not, they are presented as non-current assets.

Trade receivables are recognised initially at the transaction price. They are subsequently measured at amortised cost using the effective interest method, less provision for impairment. A provision for the impairment of trade receivables is established when there is objective evidence that the Company will not be able to collect all amounts due according to the original terms of the receivables.

Inventories

Inventories are stated at the lower of cost and net realisable value. Cost is determined using the first-in, first-out (FIFO) method.

The cost of finished goods and work in progress comprises direct materials. At each reporting date, inventories are assessed for impairment. If inventory is impaired, the carrying amount is reduced to its selling price less costs to complete and sell; the impairment loss is recognised immediately in profit or loss.

 

Kettlewell Colours Limited

Notes to the Financial Statements

Year Ended 31 January 2024

Trade payables

Trade payables are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Accounts payable are classified as current liabilities if payment is due within one year or less (or in the normal operating cycle of the business if longer). If not, they are presented as non-current liabilities.

Trade payables are recognised initially at the transaction price and subsequently measured at amortised cost using the effective interest method.

Provisions

Provisions are recognised when the Company has a present obligation (legal or constructive) as a result of a past event, it is probable that the Company will be required to settle that obligation and a reliable estimate can be made of the amount of the obligation.

Provisions are measured at the Directors’ best estimate of the expenditure required to settle the obligation at the reporting date and are discounted to present value where the effect is material.

Leases

At inception of the contract, the Company assesses whether a contract is, or contains, a lease. It recognises a right-of-use asset and a corresponding lease liability with respect to all lease arrangements in which it is the lessee. The right-of-use assets and the lease liabilities are presented as separate line items in the statement of financial position.

The lease liability is initially measured at the present value of the lease payments that are not paid at the commencement date, discounted by using the rate implicit in the lease. If this rate cannot be readily determined, the Company uses its incremental borrowing rate. It is subsequently measured by increasing the carrying amount to reflect interest on the lease liability (using the effective interest method) and by reducing the carrying amount to reflect the lease payments made.

The right-of-use assets comprise the initial measurement of the corresponding lease liability, plus lease payments made on or before the commencement day, less any lease incentives received and plus any initial direct costs. They are subsequently measured at cost less accumulated depreciation and impairment losses.

Share capital

Ordinary shares are classified as equity. Equity instruments are measured at the fair value of the cash or other resources received or receivable, net of the direct costs of issuing the equity instruments. If payment is deferred and the time value of money is material, the initial measurement is on a present value basis.

Defined contribution pension obligation

A defined contribution plan is a pension plan under which fixed contributions are paid into a separate entity and has no legal or constructive obligations to pay further contributions if the fund does not hold sufficient assets to pay all employees the benefits relating to employee service in the current and prior periods.

 

Kettlewell Colours Limited

Notes to the Financial Statements

Year Ended 31 January 2024

Financial instruments

Initial recognition

Financial assets and financial liabilities comprise all assets and liabilities reflected in the statement of financial position, although excluding property, plant and equipment, investment properties, intangible assets, deferred tax assets, prepayments, deferred tax liabilities and employee benefits plan.

The Company recognises financial assets and financial liabilities in the statement of financial position when, and only when, the Company becomes party to the contractual provisions of the financial instrument.

Financial assets are initially recognised at fair value. Financial liabilities are initially recognised at fair value, representing the proceeds received net of premiums, discounts and transaction costs that are directly attributable to the financial liability.

Subsequent to initial measurement, financial assets and financial liabilities are measured at either amortised cost or fair value.

Derecognition

Financial assets

The Company derecognises a financial asset when:
- the contractual rights to the cash flows from the financial asset expire;
- it transfers the right to receive the contractual cash flows in a transaction in which substantially all of the risks and rewards of ownership of the financial asset are transferred; or
- the Company neither transfers nor retains substantially all of the risks and rewards of ownership and it does not retain control of the financial asset.

On derecognition of a financial asset, the difference between the carrying amount of the asset and the
sum of the consideration received is recognised as a gain or loss in the profit or loss.

Financial liabilities

The Company derecognises a financial liability when its contractual obligations are discharged, cancelled, or expire.

Accounting estimates and assumptions

Fair value of financial assets and liabilities

Where the fair value of financial assets and liabilities cannot be derived from active markets, they are determined using a variety of valuation techniques that include the use of mathematical models. The input to these models is derived from observable markets where available, but where this is not feasible, a degree of judgement is required in determining assumptions used in the models. Changes in assumptions used in the models could affect the reported fair value of financial assets and liabilities.

 

Kettlewell Colours Limited

Notes to the Financial Statements

Year Ended 31 January 2024

3

Critical accounting judgements and key sources of estimation uncertainty

Sales return provision
The Company recognises a provision for estimated sales returns as at the year end. This is informed by the historic pattern of returns and the actual returns received between the balance sheet date and the date of approval of the financial statements. The carrying value of the provision at year end is £65,930 (2023 - £117,562).

Stock provision
The Directors judge whether any impairment is required of the year end inventories balance on a line by line basis. This is informed by both historical sales and actual sales between the balance sheet date and the date of approval of the financial statements. The carrying value of the provision at year end is £nil (2023 - £nil).

Right of use asset and liability
The lease liability and right of use asset is initially measured at the present value of the lease payments that are not paid at the commencement date, discounted by using the rate implicit in the lease. If this rate cannot be readily determined, the Company uses its incremental borrowing rate. The discount rate is a key accounting estimate due to the fact that a small difference in the discount rate used will have a significant impact on the present value of the lease liability and right of use asset initially recognised and the subsequent finance charges.

4

Turnover

The analysis of the Company's turnover for the year from continuing operations is as follows:

2024
£

2023
£

Sale of goods

8,633,396

6,233,340

The analysis of the Company's turnover for the year by market is as follows:

2024
£

2023
£

UK

5,498,262

3,867,536

Europe

216,482

-

Rest of world

2,918,652

2,365,804

8,633,396

6,233,340

 

Kettlewell Colours Limited

Notes to the Financial Statements

Year Ended 31 January 2024

5

Operating profit

Arrived at after charging/(crediting)

2024
£

2023
£

Depreciation expense

87,990

82,448

Amortisation expense

17,947

6,435

Foreign exchange losses

48,640

26,200

6

Interest receivable and similar income

2024
£

2023
£

Interest income on bank deposits

-

2,721

Interest on Group loans

401,550

-

401,550

2,721

7

Interest payable and similar expenses

2024
£

2023
£

Interest on bank overdrafts and borrowings

1,900

270

Interest on right of use liabilities

1,277

2,772

3,177

3,042

 

Kettlewell Colours Limited

Notes to the Financial Statements

Year Ended 31 January 2024

8

Staff costs

The aggregate payroll costs (including Directors' remuneration) were as follows:

2024
£

2023
£

Wages and salaries

1,091,256

642,858

Social security costs

99,001

63,958

Pension costs, defined contribution scheme

19,517

11,704

1,209,774

718,520


 

The average number of persons employed by the Company (including Directors) during the year, analysed by category was as follows:

2024
No.

2023
No.

Administration and support

17

16

Sales

1

-

Marketing

3

2

Distribution

22

17

43

35

9

Directors' remuneration

The Directors' remuneration for the year was as follows:

2024
£

2023
£

Remuneration

90,000

72,628

10

Auditors' remuneration

2024
£

2023
£

Audit of the financial statements

15,450

8,000


 

 

Kettlewell Colours Limited

Notes to the Financial Statements

Year Ended 31 January 2024

11

Income tax

Tax charged/(credited) in the profit and loss account

2024
£

2023
£

Current taxation

UK corporation tax

80,795

131,235

Deferred taxation

Arising from origination and reversal of temporary differences

4,879

(9,543)

Tax expense in the profit and loss account

85,674

121,692

The tax on profit before tax for the year is lower than the standard rate of corporation tax in the UK (2023 - lower than the standard rate of corporation tax in the UK) of 24.03% (2023 - 19%).

The differences are reconciled below:

2024
£

2023
£

Profit before tax

1,763,309

1,077,765

Corporation tax at standard rate

423,725

204,775

Increase from effect of expenses not deductible in determining taxable profit/(loss)

434

-

Decrease arising from Group relief tax reconciliation

(338,674)

(29,430)

Deferred tax expense/(credit) relating to changes in tax rates or laws

189

(2,211)

Increase from effect of tax incentives

-

(349)

Other tax effects for reconciliation between accounting profit and tax income

-

(51,093)

Total tax charge

85,674

121,692

Deferred tax

Deferred tax assets and liabilities

At 31 January 2024

Asset
£

Liability
£

Net deferred tax
£

Accelerated tax depreciation

-

27,013

27,013

Provisions

(578)

-

(578)

(578)

27,013

26,435


 

 

Kettlewell Colours Limited

Notes to the Financial Statements

Year Ended 31 January 2024

At 31 January 2023

Asset
£

Liability
£

Net deferred tax
£

Accelerated tax depreciation

-

21,891

21,891

Provisions

(335)

-

(335)

(335)

21,891

21,556

12

Intangible assets

Website and software development costs
£

Total
£

Cost or valuation

At 1 May 2022

93,976

93,976

At 31 January 2023

93,976

93,976

At 1 February 2023

93,976

93,976

Additions

59,072

59,072

At 31 January 2024

153,048

153,048

Amortisation

At 1 May 2022

72,692

72,692

Amortisation charge

6,435

6,435

At 31 January 2023

79,127

79,127

At 1 February 2023

79,127

79,127

Amortisation charge

17,947

17,947

At 31 January 2024

97,074

97,074

Carrying amount

At 31 January 2024

55,974

55,974

At 31 January 2023

14,849

14,849

At 1 May 2022

21,284

21,284

Amortisation is presented in administrative expenses.

 

Kettlewell Colours Limited

Notes to the Financial Statements

Year Ended 31 January 2024

13

Property, plant and equipment

Leasehold land and buildings
£

Furniture, fittings and equipment
£

Other Property, plant and equipment
£

Total
£

Cost or valuation

At 1 May 2022

189,112

94,007

7,195

290,314

Additions

432

5,833

-

6,265

At 31 January 2023

189,544

99,840

7,195

296,579

At 1 February 2023

189,544

99,840

7,195

296,579

Additions

87,569

26,125

6,575

120,269

At 31 January 2024

277,113

125,965

13,770

416,848

Depreciation

At 1 May 2022

96,352

77,925

3,819

178,096

Charge for period

24,109

10,433

855

35,397

At 31 January 2023

120,461

88,358

4,674

213,493

At 1 February 2023

120,461

88,358

4,674

213,493

Charge for the year

29,893

9,627

1,420

40,940

At 31 January 2024

150,354

97,985

6,094

254,433

Carrying amount

At 31 January 2024

126,759

27,980

7,676

162,415

At 31 January 2023

69,083

11,482

2,521

83,086

At 1 May 2022

92,760

16,082

3,376

112,218

 

Kettlewell Colours Limited

Notes to the Financial Statements

Year Ended 31 January 2024

14

Right of use assets

Property
£

Total
£

Cost or valuation

At 1 May 2022

329,351

329,351

At 31 January 2023

329,351

329,351

At 1 February 2023

329,351

329,351

At 31 January 2024

329,351

329,351

Depreciation

At 1 May 2022

196,042

196,042

Charge for period

47,050

47,050

At 31 January 2023

243,092

243,092

At 1 February 2023

243,092

243,092

Charge for the year

47,050

47,050

At 31 January 2024

290,142

290,142

Carrying amount

At 31 January 2024

39,209

39,209

At 31 January 2023

86,259

86,259

15

Inventories

31 January
2024
£

31 January
2023
£

Finished goods and goods for resale

985,286

976,992

The cost of Inventories recognised as an expense in the year amounted to £2,468,701 (2023 - £1,681,404). This is included within cost of sales.

The inventories provision remained at £Nil (2023 - £Nil).

 

Kettlewell Colours Limited

Notes to the Financial Statements

Year Ended 31 January 2024

16

Trade and other receivables

Trade and other receivables falling due within one year

31 January
2024
£

31 January
2023
£

Trade receivables

99,938

21,525

Receivables from related parties

1,781,770

977

Prepayments

167,864

83,666

Other receivables

4,053

1,238

2,053,625

107,406


 

Trade and other receivables falling due after more than one year

31 January
2024
£

31 January
2023
£

Loans to related parties

5,577,086

5,577,086

The majority of customers pay for goods in advance. The average credit period on sale of goods to trade customers is 30 days. No interest is charged on outstanding trade receivables. The Company does not hold any collateral. The carrying amount of trade and other receivables approximates the fair value.

The loan to related party is due for repayment on 17/11/2032 with interest charged by Kettlewell Colours Limited of 6% per annum.

17

Cash and cash equivalents

31 January
2024
£

31 January
2023
£

Cash at bank

608,845

1,051,550

 

Kettlewell Colours Limited

Notes to the Financial Statements

Year Ended 31 January 2024

18

Trade and other payables

31 January
2024
£

31 January
2023
£

Trade payables

185,936

416,375

Social security and other taxes

209,196

190,459

Outstanding defined contribution pension costs

5,439

3,123

Other payables

224,318

147,333

Accrued expenses

85,726

39,315

710,615

796,605

Trade payables and accruals comprise amounts outstanding for trade purchases and ongoing costs. The average credit period for trade purchases is 30-60 days. No interest is charged on overdue amounts.

Kettlewell Colours Limited have a debenture with HSBC dated 09/01/2023 incorporating a fixed and floating charge over all assets. The floating charge covers all the property or undertaking of the Company. A second fixed charge and floating charge (floating charge covers all the property or undertaking of the Company) dated 23/11/2022 was registered in favour of KSL Holding EHF.

The carrying amount of the trade and other payables approximates the fair value.

19

Leases

Lease liabilities maturity analysis

A maturity analysis of lease liabilities based on undiscounted gross cash flow is reported in the table below:

31 January
2024
£

31 January
2023
£

Less than one year

43,834

52,599

2 years

-

43,834

Total lease liabilities

43,834

96,433

Reconciliation to balance sheet

Reconciliation to amounts presented in balance sheet at present value:

Analysed as

31 January
2024
£

31 January
2023
£

Current lease liabilities

43,834

51,323

Non-current lease liabilities

-

43,834

Interest

-

1,276

Total cash outflow

43,834

96,433

 

Kettlewell Colours Limited

Notes to the Financial Statements

Year Ended 31 January 2024

20

Share capital

Allotted, called up and fully paid shares

 

31 January
2024

31 January
2023

 

No.

£

No.

£

Ordinary shares of £1 each

2

2

2

2

         

Rights, preferences and restrictions

Ordinary share have the following rights, preferences and restrictions:
The holders of ordinary shares are entitled to receive dividends as declared from time to time and are entitled to one vote per share at meetings of the Company. All ordinary shares rank equally with regard to the Company's residual assets.

21

Pension and other schemes

Defined contribution pension scheme

The Company operates a defined contribution pension scheme. The pension cost charge for the year represents contributions payable by the Company to the scheme and amounted to £19,517 (2023 - £11,704).

Contributions totalling £5,439 (2023 - £3,123) were payable to the scheme at the end of the year and are included in trade and other payables.

22

Related party transactions

Summary of transactions with other related parties

Entities under the control of Directors or their close family.
 

Expenditure with and payables to related parties

2024

Other related parties
£

Receipt of services

9,300

The Company has taken advantage of the exemption from disclosing related party transactions with the parent company and other wholly owned subsidiaries.

 

Kettlewell Colours Limited

Notes to the Financial Statements

Year Ended 31 January 2024

23

Parent and ultimate parent undertaking

Relationship between entity and parents

The parent of the largest Group in which these financial statements are consolidated is Refined Brands Limited, incorporated in England and Wales.

The address of Refined Brands Limited is:
Units 2 & 2a Indian Queens Industrial Estate, Indian Queens, St. Columb, England, TR9 6TF

A copy of the accounts of Refined Brands Limited is available on request from the registered address.

24

Application of new and revised standards

The following new and amended Standards and Interpretations have been issued and are effective for the current financial period of the Company. The following changes were in effect from 1 January 2023:

• Disclosure of Accounting policies (Amendments to IAS 1 and IFRS Practice Statement 2)
• Definition of Accounting Estimates (Amendments to IAS 8)
• Deferred Tax related to Assets and Liabilities arising from a Single Transaction (Amendments to IAS 12)
• International Tax Reform-Pillar Two Model Rules (Amendments to IAS 12)
• IFRS 17 Insurance Contracts

There are no other relevant standards or amendments issued that are first effective for the annual period beginning 1 February 2023.