Company registration number 06893809 (England and Wales)
KELPACK HIRE LIMITED
FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JANUARY 2024
PAGES FOR FILING WITH REGISTRAR
KELPACK HIRE LIMITED
CONTENTS
Page
Balance sheet
1
Notes to the financial statements
2 - 8
KELPACK HIRE LIMITED
BALANCE SHEET
AS AT
31 JANUARY 2024
31 January 2024
- 1 -
2024
2023
Notes
£
£
£
£
Fixed assets
Tangible assets
3
604,839
769,316
Current assets
Stocks
73,212
75,979
Debtors
4
55,411
66,864
Cash at bank and in hand
162,622
191,215
291,245
334,058
Creditors: amounts falling due within one year
5
(183,379)
(178,333)
Net current assets
107,866
155,725
Total assets less current liabilities
712,705
925,041
Provisions for liabilities
(114,881)
(147,749)
Net assets
597,824
777,292
Capital and reserves
Called up share capital
6
100
100
Profit and loss reserves
597,724
777,192
Total equity
597,824
777,292

The directors of the company have elected not to include a copy of the profit and loss account within the financial statements.true

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

The financial statements were approved by the board of directors and authorised for issue on 28 October 2024 and are signed on its behalf by:
Mr D R Hamer
Mr D J Brash
Director
Director
Company registration number 06893809 (England and Wales)
KELPACK HIRE LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JANUARY 2024
- 2 -
1
Accounting policies
Company information

Kelpack Hire Limited is a private company limited by shares incorporated in England and Wales. The registered office is 2 Rough Hey Road, Grimsargh, Preston, PR2 5AR.

1.1
Accounting convention

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”) and the requirements of the Companies Act 2006 as applicable to companies subject to the small companies regime. The disclosure requirements of section 1A of FRS 102 have been applied other than where additional disclosure is required to show a true and fair view.

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 under the historical cost convention. The principal accounting policies adopted are set out below.

1.2
Going concern

At the time of signing these financial statements the directors are continuing to respond to the business challenges currently being faced because of the current economic climate. The Board is meeting regularly, and the management team are reviewing operational, HR and financial impacts on a regular basis and are taking appropriate corrective actions to protect the business, whilst the finance team continue to monitor cash flow closely.true

 

It is expected with the challenges within the current economy, that the rental businesses will develop and increase both in contacts and revenue. In return this will help the manufacturing division as opportunities for new work arise.

 

Considering the measures implemented and following a review of the company's financial position, the directors are satisfied that the company will have adequate resources to continue to operate for the foreseeable future. As such the directors have concluded that it remains appropriate to prepare these financial statements on the going concern basis.

1.3
Turnover

Turnover is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business , and is shown net of VAT and other sales related taxes . The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.

 

When cash inflows are deferred and represent a financing arrangement, the fair value of the consideration is the present value of the future receipts. The difference between the fair value of the consideration and the nominal amount received is recognised as interest income.

 

Rental income is recognised on a straight line basis over the rental period. Turnover also includes the sale of ex-rental stock and rechargeable maintenance.

Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer (usually on dispatch of the goods), the amount of revenue can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the entity and the costs incurred or to be incurred in respect of the transaction can be measured reliably.

KELPACK HIRE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2024
1
Accounting policies
(Continued)
- 3 -
1.4
Tangible fixed assets

Tangible fixed assets are initially measured at cost and subsequently measured at cost, net of depreciation and any 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:

Plant and machinery
Straight line over 6 years

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.

1.5
Impairment of fixed assets

At each reporting end date, the company reviews the carrying amounts of its tangible 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).

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 is estimated to be less than its carrying amount, the carrying amount of the asset is reduced to its recoverable amount. An impairment loss is recognised immediately in the profit or loss account.

1.6
Stocks

Stock is valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items.

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 the profit or loss account.

1.7
Cash and cash equivalents

Cash at bank and in hand are basic financial assets and include deposits held at call with banks.

1.8
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.

KELPACK HIRE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2024
1
Accounting policies
(Continued)
- 4 -
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.

Impairment of financial assets

Financial assets are assessed for indicators of impairment at each reporting end date.

 

Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.

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 trade creditors and loans from fellow group companies 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 payments 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.

1.9
Equity instruments

Equity instruments issued by the company are recorded at the proceeds received. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.

1.10
Taxation

The tax expense represents the sum of the tax currently payable and deferred tax.

Current tax

The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.

KELPACK HIRE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2024
1
Accounting policies
(Continued)
- 5 -
Deferred tax

Deferred taxation is provided in full in respect of taxation deferred by timing differences between the treatment of certain items for taxation and accounting purposes. The deferred tax balance has not been discounted.

 

Deferred tax assets are only provided to the extent it is expected that there will be future taxable profits against which the asset will be relieved.

1.11
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.

1.12
Foreign exchange

Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation in the period are included in profit or loss.

2
Employees

The average monthly number of persons (including directors) employed by the company during the year was:

2024
2023
Number
Number
Total
-
0
-
0
KELPACK HIRE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2024
- 6 -
3
Tangible fixed assets
Plant and machinery etc
£
Cost
At 1 February 2023
2,154,434
Additions
71,461
Disposals
(147,712)
At 31 January 2024
2,078,183
Depreciation and impairment
At 1 February 2023
1,385,118
Depreciation charged in the year
215,970
Eliminated in respect of disposals
(127,744)
At 31 January 2024
1,473,344
Carrying amount
At 31 January 2024
604,839
At 31 January 2023
769,316
4
Debtors
2024
2023
Amounts falling due within one year:
£
£
Trade debtors
51,734
55,353
Other debtors
3,677
11,511
55,411
66,864
5
Creditors: amounts falling due within one year
2024
2023
£
£
Trade creditors
4,840
5,020
Amounts owed to group undertakings
46,350
124,567
Taxation and social security
113,941
42,246
Other creditors
18,248
6,500
183,379
178,333
KELPACK HIRE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2024
- 7 -
6
Called up share capital
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
100
100
100
100
7
Audit report information

As the income statement has been omitted from the filing copy of the financial statements, the following information in relation to the audit report on the statutory financial statements is provided in accordance with s444(5B) of the Companies Act 2006:

The auditor's report was unqualified.

Senior Statutory Auditor:
Lee Van Houplines FCA
Statutory Auditor:
MHA
8
Financial commitments, guarantees and contingent liabilities

The company has entered into an unlimited Inter-Company Guarantee dated 18 June 2021 (the “Agreement”), which is held as security for the Group bank facilities. Each participating related company (Pakawaste Limited, Pakawaste Engineering Services Limited, System Rental UK Limited and Kelpack Hire Limited) has provided a guarantee to Clydesdale Bank Plc. Under the terms of the Agreement, Clydesdale Bank Plc is authorised to allow set-off for interest purposes and in certain circumstances to seize credit balances and apply them in reduction of liabilities including debit balances within the Composite Accounting System. The maximum potential liability arising under this guarantee at the year end was £nil (202: £nil).

 

The Group bank facilities are also secured by debentures in all of the above participating companies.

9
Related party transactions
Transactions with related parties

During the year the company entered into the following transactions with related parties:

Category
Description of
Income
Expenditure
transaction
2024
2023
2024
2023
£
£
£
£
Entities with control, joint control or significant influence over the company
Dividends paid
-
0
-
0
391,500
-
0
Other related parties
Dividends paid
-
0
-
0
21,750
-
0
Other information

In accordance with FRS 102 Section 1AC.35, exemption has been taken from disclosing any transactions with the parent and fellow subsidiary undertakings.

KELPACK HIRE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2024
- 8 -
10
Directors' transactions

Dividends totalling £21,750 (2023 - £0) were paid in the year in respect of shares held by the company's directors.

11
Parent company

The immediate and ultimate parent company is Brask and Cece Holdings Limited, a company registered in England and Wales. The registered office of Brask and Cece Holdings Limited is 2 Rough Hey Road, Grimsargh, Preston, PR2 5AR.

The largest and smallest group in which the results of the company are consolidated is that headed by Brask and Cece Holdings Limited. The consolidated financial statements of this group are available to the public and may be obtained from Companies House, Cardiff or its registered office.

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