Company registration number 8867616 (England and Wales)
KEYLON INTERIORS LTD
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JANUARY 2024
KEYLON INTERIORS LTD
COMPANY INFORMATION
Directors
Mr K Hunter
Mr J Lowe
Secretary
Creed Tax Advisers Ltd
Company number
8867616
Registered office
Unit 2 Invicta Park
Sandpit Road
Dartford
England
DA1 5BU
Auditor
SCC Chartered Accountants Ltd
17 College Street
Armagh
BT61 9BT
Bankers
Santander
Bridle Road
Bootle
Merseyside
L30 4GB
KEYLON INTERIORS LTD
CONTENTS
Page
Strategic report
1 - 3
Directors' report
4 - 5
Directors' responsibilities statement
6
Independent auditor's report
7 - 8
Profit and loss account
9
Statement of comprehensive income
10
Balance sheet
11
Statement of changes in equity
12
Notes to the financial statements
13 - 22
KEYLON INTERIORS LTD
STRATEGIC REPORT
FOR THE YEAR ENDED 31 JANUARY 2024
- 1 -

The directors present the strategic report for the year ended 31 January 2024.

Fair review of the business

 

Despite unprecedented inflationary pressures the company performance remained positive and consistent with the previous year. Given the market uncertainty the Directors took the strategic decision to temporarily pause growth, however given the strong pipeline of work and contracts in hand they anticipate an increase in revenues in 2024/25 inline with the companies 5 year strategic plan. The emphasis going forward is on the successful delivery of existing contracts, further cementing existing relationships whilst adding further to the secured pipeline by winning projects from additional key target clients. This, in turn, ensures sustainable profitability and cash flow in order to achieve the following years financial targets.

 

Business Outlook

 

At the year end the secured order book was £28.1m. This high level of secured workload enables the business to focus on securing projects which best fit our ongoing growth strategy both in terms of turnover and project size as well as higher margins. The business continues to invest in sourcing, developing and retaining its own personnel, primarily through in house training and development programmes as well as ongoing investment through vocationally recognised professional qualifications. Additionally, high performers have been identified and undertaken / continue to undertake structured executive performance coaching programmes to further development their effective management of people, processes and business resources, further enhancing the business performance and efficiency.

Principal risks and uncertainties

 

As the global economy continues to adjust to the impact of the Ukraine Conflict the principal risks are the unpredictability of materials costs and availability, the uncertainty of the UK economy and its effect on the new build housing market.

 

A number of additional risks are considered and managed in the execution of the business’s strategic objectives, namely;

 

In terms of managing risk and uncertainty, the company is within the ownership of a responsive board which enables the business to be flexible, proactive and to act quickly and decisively where swift decision making is required, alongside making effective medium and long term decisions to manage more visible and industry standard risks in line with the business strategy.

Development and Performance

The Directors believe that performance will improve for the coming year as a result of securing new profitable contracts and through the development and expansion of it’s existing client base.

Financial Performance Indicators

 

             2024

 

Gross Profit Margin     13%

 

Net Profit Margin 5%

 

Shareholders Equity £2,909,584

KEYLON INTERIORS LTD
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2024
- 2 -
Non Financial Performance Indicators

 

 

The business recognises its responsibility to carry out its operations whilst minimising environmental impacts. It is the Directors’ continued aim to comply with all applicable environmental legislation, prevent pollution and reduce waste wherever possible.

 

 

The Directors acknowledge and are acutely aware that the businesses most important resource are our people. Their experience, knowledge and relationships are crucial to the businesses ability to meet and to exceed our clients needs and expectations. Retention of our existing staff and attracting the most talented people within the industry are key to achieving the wider objectives of client base consolidation and growth. In line with the objectives of ensuring staff satisfaction and high levels of retention, the decision was made to introduce a dedicated HR resource which has now been completed.

 

 

Keylon Interiors are committed to achieving and maintaining the highest practicable standards in health and safety management and strives to make its site and office environments safe and comfortable for employees and customers alike.

 

 

Keylon Interiors Limited is committed to remaining an owner managed business and will continue with it’s strategy of prioritising business objectives ahead of shareholders’ interests. Ongoing strong cash generation combined with healthy, sustainable Gross and Net Profit percentages remain overarching objectives enabling the company to sustain sufficient headroom to allow ongoing investment as well as protection should there be any negative changes within it’s principal risks and uncertainties.

KEYLON INTERIORS LTD
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2024
- 3 -
Directors Statement of Compliance with duty to promote the success of the company

 

The Directors of Keylon Interiors Limited, in line with their duties under s172 of the Companies Act 2006, act in a way they consider, in good faith, would be most likely to promote the success of the Company for the benefit of its members as a whole. In doing so, the Directors consider a range of matters when making decisions for the long term. Key decisions and matters that are of strategic importance to the Company are appropriately informed by s172 factors. The success of the Company is dependent on the support of all stakeholders. Working with stakeholders that share our values is important to us, towards shared long-term goals for sustainable success. The Board and senior leadership team make decisions with a long-term view in mind and with the highest of standards of conduct in line with our policies. Reports across all areas of the business are regularly made available to the Board to allow key decisions to be made with proper consideration and to assess the impact of decisions on stakeholders.

 

 

We have built a strong service orientated relationship with our key clients and the Directors maintain strong communications with their customers through both on, and off-site meetings. These meetings enable critical two way dialogue and the early identification and swift resolution of any issues or concerns – thereby further reinforcing those relationships and the value of the business to our clients which the Directors recognise as being key to the continued success of the business. Furthermore, these relationships provide Keylon’s Directors with early visibility of strategic pipeline and project opportunities.

 

 

The employees of Keylon are the most valuable resource of the company and are at the heart of everything the company does. Following the COVID-19 pandemic and the resultant hybrid system of working the business considered the impacts and benefits of remote working and consulted extensively with their staff in structuring a planned approach to hybrid working, achieving a balance between flexible working and collaboration within a central operational hub. This has enabled our staff to benefit from the best possible hoe/ life balance.

 

 

The Board recognises that our suppliers are integral to the success of the business and it is therefore essential that we build strong relationships in an ethical manner whilst meeting stringent quality, performance and delivery requirements. The Directors are experienced in supplier relationship management and procurement and maintain strong communication with our supply chain. Over a period of time the business has developed extremely good relationships with industry leading manufacturers and distributors and recognises the benefits arising from these relationships. The Company ensures that we pay suppliers in line with commercially agreed payment terms.

 

 

 

We recognise the important role that our company plays in the local community. Social value principles are at the heart of the business, with a focus on creating opportunities in local employment and improving our environmental credentials. The Company has appointed relevant expert advisors to ensure that the Board are aware of, and the Company aims to meet, all relevant obligations in regard to laws and regulations whilst identifying potential opportunities for, and risks to the business.

 

On behalf of the board

Mr K Hunter
Director
31 October 2024
KEYLON INTERIORS LTD
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 JANUARY 2024
- 4 -

The directors present their annual report and financial statements for the year ended 31 January 2024.

Principal activities

 

The principal activity of the company is that of Construction Specialist Sub-Contractor, namely SFS, Drylining & Decorations. There has been no significant change in these activities during the year.

Results and dividends

The results for the year are set out on page 9.

Ordinary dividends were paid amounting to £600,000 (2023; £700,000). The directors do not recommend payment of a further dividend.

Directors

The directors who held office during the year and up to the date of signature of the financial statements were as follows:

Mr K Hunter
Mr J Lowe
Research and development

Despite upward cost pressures the business has continued to make significant investment into the development of value engineering and buildability solutions working alongside key clients and consultants to arrive at resolutions to often complex and multi-faceted blockers. Additionally we have continued to invest in the further development of digital quality management and project management systems.

Future developments

The company operates predominantly in the Greater London and South East of England new-build market. While the Directors anticipate that regulatory reforms and planning timelines may influence market dynamics, the business remains optimistic about growth across a number of complementary sectors, which are expected to balance any potential market slowdown. Key areas of opportunity include:

 

 

With a secured order book, as detailed in the Strategic Report, the business remains focused on securing high-value, high-quality projects that align with strategic priorities and offer improved margins.

Auditor

SCC Chartered Accountants Ltd were appointed as auditor to the company and in accordance with section 485 of the Companies Act 2006, a resolution proposing that they be re-appointed will be put at a General Meeting.

Statement of disclosure to auditor

So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the company’s auditor is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the company’s auditor is aware of that information.

Medium-sized companies exemption

This report has been prepared in accordance with the provisions applicable to companies entitled to the medium-sized companies exemption.

KEYLON INTERIORS LTD
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2024
- 5 -
On behalf of the board
Mr K Hunter
Director
31 October 2024
KEYLON INTERIORS LTD
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 31 JANUARY 2024
- 6 -

The directors are responsible 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 Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). 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:

 

 

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.

KEYLON INTERIORS LTD
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBER OF KEYLON INTERIORS LTD
- 7 -
Opinion

We have audited the financial statements of Keylon Interiors Ltd (the 'company') for the year ended 31 January 2024 which comprise the profit and loss account, the statement of comprehensive income, the balance sheet, the statement of changes in equity and notes to the financial statements, including 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:

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's 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 [entity]'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 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. The directors are responsible for the other information contained within the annual report. 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. 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 course of 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 our audit:

KEYLON INTERIORS LTD
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBER OF KEYLON INTERIORS LTD (CONTINUED)
- 8 -
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 directors' report.

 

We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:

Responsibilities of directors

As explained more fully in the directors' responsibilities statement, 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's 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.

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

The purpose of our audit work and to whom we owe our responsibilities

This report is made solely to the company's member 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 member those matters we are required to state to the member 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 member, for our audit work, for this report, or for the opinions we have formed.

Sean G. Cavanagh (Senior Statutory Auditor)
for and on behalf of SCC Chartered Accountants Ltd
31 October 2024
Chartered Accountants
Statutory Auditor
17 College Street
BT61 9BT
KEYLON INTERIORS LTD
PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 31 JANUARY 2024
- 9 -
2024
2023
Notes
£
£
Turnover
3
20,393,317
21,043,553
Cost of sales
(17,696,050)
(18,351,212)
Gross profit
2,697,267
2,692,341
Administrative expenses
(1,572,082)
(1,436,601)
Other operating income
-
0
6,163
Operating profit
7
1,125,185
1,261,903
Interest payable and similar expenses
8
(47,423)
(32,316)
Profit before taxation
1,077,762
1,229,587
Tax on profit
10
(268,792)
123,494
Profit for the financial year
808,970
1,353,081

The profit and loss account has been prepared on the basis that all operations are continuing operations.

KEYLON INTERIORS LTD
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 JANUARY 2024
- 10 -
2024
2023
£
£
Profit for the year
808,970
1,353,081
Other comprehensive income
-
-
Total comprehensive income for the year
808,970
1,353,081
KEYLON INTERIORS LTD
BALANCE SHEET
AS AT
31 JANUARY 2024
31 January 2024
- 11 -
2024
2023
Notes
£
£
£
£
Fixed assets
Tangible assets
11
9,987
18,127
Current assets
Debtors
12
5,627,017
5,525,134
Cash at bank and in hand
917,014
1,864,973
6,544,031
7,390,107
Creditors: amounts falling due within one year
13
(3,373,991)
(4,269,090)
Net current assets
3,170,040
3,121,017
Total assets less current liabilities
3,180,027
3,139,144
Creditors: amounts falling due after more than one year
14
(270,443)
(438,530)
Net assets
2,909,584
2,700,614
Capital and reserves
Called up share capital
18
2
2
Profit and loss reserves
2,909,582
2,700,612
Total equity
2,909,584
2,700,614

These financial statements have been prepared in accordance with the provisions relating to medium-sized companies.

The financial statements were approved by the board of directors and authorised for issue on 31 October 2024 and are signed on its behalf by:
Mr K  Hunter
Director
Company registration number 8867616 (England and Wales)
KEYLON INTERIORS LTD
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 JANUARY 2024
- 12 -
Share capital
Profit and loss reserves
Total
Notes
£
£
£
Balance at 1 February 2022
2
2,047,531
2,047,533
Year ended 31 January 2023:
Profit and total comprehensive income for the year
-
1,353,081
1,353,081
Dividends
9
-
(700,000)
(700,000)
Balance at 31 January 2023
2
2,700,612
2,700,614
Year ended 31 January 2024:
Profit and total comprehensive income for the year
-
808,970
808,970
Dividends
9
-
(600,000)
(600,000)
Balance at 31 January 2024
2
2,909,582
2,909,584
KEYLON INTERIORS LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JANUARY 2024
- 13 -
1
Accounting policies
Company information

Keylon Interiors Ltd is a private company limited by shares incorporated in England and Wales. The registered office is Unit 2 Invicta Park, Sandpit Road, Dartford, England, DA1 5BU.

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.

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.

This company is a qualifying entity for the purposes of FRS 102, being a member of a group where the parent of that group prepares publicly available consolidated financial statements, including this company, which are intended to give a true and fair view of the assets, liabilities, financial position and profit or loss of the group. The company has therefore taken advantage of exemptions from the following disclosure requirements:

 

 

The financial statements of the company are consolidated in the financial statements of Keylon Group Ltd (10514459). These consolidated financial statements are available from its registered office, Unit 2 Invicta Park, Sandpit Road, Dartford, England, DA1 5BU.

1.2
Going concern

Atruet 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.

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.

 

 

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.

Revenue from contracts for the provision of professional services is recognised by reference to the stage of completion when the stage of completion, costs incurred and costs to complete can be estimated reliably. The stage of completion is calculated by comparing costs incurred, mainly in relation to contractual hourly staff rates and materials, as a proportion of total costs. Where the outcome cannot be estimated reliably, revenue is recognised only to the extent of the expenses recognised that it is probable will be recovered.

KEYLON INTERIORS LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2024
1
Accounting policies
(Continued)
- 14 -
1.4
Tangible fixed assets

Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.

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

Fixtures and fittings
33% SL

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 period 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). 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.

1.6
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.

1.7
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.

KEYLON INTERIORS LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2024
1
Accounting policies
(Continued)
- 15 -
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.

Other financial assets

Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.

Impairment of financial assets

Financial assets, other than those held at fair value through profit and loss, 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.

 

If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.

Derecognition of financial assets

Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the company transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.

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 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 and Other Creditors

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.

KEYLON INTERIORS LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2024
1
Accounting policies
(Continued)
- 16 -
Other financial liabilities

Derivatives, including interest rate swaps and forward foreign exchange contracts, are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in profit or loss in finance costs or finance income as appropriate, unless hedge accounting is applied and the hedge is a cash flow hedge.

 

Debt instruments that do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured at fair value through profit or loss. Debt instruments may be designated as being measured at fair value through profit or loss to eliminate or reduce an accounting mismatch or if the instruments are measured and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy.

Derecognition of financial liabilities

Financial liabilities are derecognised when the company’s contractual obligations expire or are discharged or cancelled.

1.8
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.

Deferred tax

Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.

 

The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset when the company has a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.

1.9
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.

KEYLON INTERIORS LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2024
1
Accounting policies
(Continued)
- 17 -
1.10
Retirement benefits

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

1.11
Leases

Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leases asset are consumed.

1.12
Government grants

Government grants are recognised at the fair value of the asset received 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.

1.13
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.

1.14

Dividends

Equity dividends are recognised when they become legally payable. Interim equity dividends are recognised when paid. Final equity dividends are recognised when approved by the shareholders at an annual general meeting.

2
Judgements and key sources of estimation uncertainty

In the application of the company’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

 

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

3
Turnover and other revenue
2024
2023
£
£
Other revenue
Grants received
-
6,163
KEYLON INTERIORS LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2024
- 18 -
4
Auditor's remuneration
2024
2023
Fees payable to the company's auditor and associates:
£
£
For audit services
Audit of the financial statements of the company
9,000
9,000
5
Employees

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

2024
2023
Number
Number
Directors
2
2
Front line Staff
9
9
Admin Staff
14
15
Total
25
26

Their aggregate remuneration comprised:

2024
2023
£
£
Wages and salaries
1,320,346
1,422,850
Social security costs
136,467
64,273
Pension costs
21,898
16,340
1,478,711
1,503,463
6
Directors' remuneration
2024
2023
£
£
Remuneration for qualifying services
24,000
24,000
7
Operating profit
2024
2023
Operating profit for the year is stated after charging/(crediting):
£
£
Government grants
-
(6,163)
Depreciation of owned tangible fixed assets
9,313
9,313
Operating lease charges
85,726
92,321
KEYLON INTERIORS LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2024
- 19 -
8
Interest payable and similar expenses
2024
2023
£
£
Interest on bank overdrafts and loans
47,423
32,316
9
Dividends
2024
2023
2024
2023
Per share
Per share
Total
Total
£
£
£
£
Ordinary Shares
Final paid
300,000
350,000
600,000
700,000
10
Taxation
2024
2023
£
£
Current tax
UK corporation tax on profits for the current period
268,792
(123,494)

The actual charge/(credit) for the year can be reconciled to the expected charge for the year based on the profit or loss and the standard rate of tax as follows:

2024
2023
£
£
Profit before taxation
1,077,762
1,229,587
Expected tax charge based on the standard rate of corporation tax in the UK of 24.03% (2023: 19.00%)
258,986
233,622
Tax effect of expenses that are not deductible in determining taxable profit
7,862
-
0
Adjustments in respect of prior years
-
(123,494)
Permanent capital allowances in excess of depreciation
(294)
(4,814)
Depreciation on assets not qualifying for tax allowances
2,238
1,769
Research and development tax credit
-
(230,577)
Taxation charge/(credit) for the year
268,792
(123,494)
KEYLON INTERIORS LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2024
- 20 -
11
Tangible fixed assets
Fixtures and fittings
£
Cost
At 1 February 2023
45,247
Additions
1,173
At 31 January 2024
46,420
Depreciation and impairment
At 1 February 2023
27,120
Depreciation charged in the year
9,313
At 31 January 2024
36,433
Carrying amount
At 31 January 2024
9,987
At 31 January 2023
18,127
12
Debtors
2024
2023
Amounts falling due within one year:
£
£
Trade debtors
4,878,989
4,889,342
Corporation tax recoverable
-
0
15,191
Other debtors
697,875
618,489
Prepayments and accrued income
50,153
2,112
5,627,017
5,525,134
13
Creditors: amounts falling due within one year
2024
2023
Notes
£
£
Bank loans and overdrafts
15
185,567
184,366
Trade creditors
1,633,312
2,443,893
Corporation tax
253,601
-
0
Other taxation and social security
306,714
544,281
Other creditors
802,265
575,697
Accruals and deferred income
192,532
520,853
3,373,991
4,269,090
KEYLON INTERIORS LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2024
- 21 -
14
Creditors: amounts falling due after more than one year
2024
2023
Notes
£
£
Bank loans and overdrafts
15
270,443
438,530
15
Loans and overdrafts
2024
2023
£
£
Bank loans
454,810
622,896
Bank overdrafts
1,200
-
0
456,010
622,896
Payable within one year
185,567
184,366
Payable after one year
270,443
438,530

 

 

16
Post Balance Sheet Events

There have been no significant events affecting the company since the year end.

 

17
Retirement benefit schemes
2024
2023
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
21,898
16,340

The company operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the company in an independently administered fund.

18
Share capital
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary Shares of £1 each
2
2
2
2
19
Directors' Current Account

As at 31 January 2024 the company owed the directors was nil (2023: £68,265 ). This balance is deemed to be interest free, unsecured and payable on demand.

KEYLON INTERIORS LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2024
- 22 -
20
Related party transactions

As at 31 January 2024 there was a related party balance of £802,265 owed to Keylon Group Limited (A company registered in England and Wales, registration number: 10514459).

 

As at 31 January 2024 there was a related party balance of £21,541 owed from Shaw Wood Ltd (A company registered in England and Wales, registration number: 13914114).

 

As at 31 January 2024 there was a related party balance of £141,830 owed from Pines Carpentry Ltd (A company registered in England and Wales, registration number: 11825370).

 

As at 31 January 2024 there was a related party balance of £307,000 owed from JHKL Investments Ltd (A company registered in England and Wales, registration number: 12709655 ).

22
Ultimate controlling party

The company regards Keylon Group Limited as its immediate parent company, a company incorporate in England.

 

The company's ultimate parent undertaking is Keylon Group Limited, a company incorporated in England. The company results are included in the consolidated financial statements of Keylon Group Limited, which is the smallest and largest group of undertakings for which group financial statements are available from Keylon Group Limited Unit 2, Invicta Park, Sandpit Road, Dartford, DA1 5BU.

 

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