N.K. Holdings Limited NI029570 false 2023-05-01 2024-04-30 2024-04-30 2024-04-30 The principal activity of the company is the manufacture and erection of security fencing, galvanising steel products and providing anti-corrosive treatments. The group also holds investment properties for rental return. Digita Accounts Production Advanced 6.30.9574.0 true true true false true false false false false false false false NI029570 2023-05-01 2024-04-30 NI029570 2024-04-30 NI029570 bus:OrdinaryShareClass1 bus:Consolidated 2024-04-30 NI029570 bus:Consolidated 2024-04-30 NI029570 core:CapitalRedemptionReserve 2024-04-30 NI029570 core:CapitalRedemptionReserve bus:Consolidated 2024-04-30 NI029570 core:RetainedEarningsAccumulatedLosses 2024-04-30 NI029570 core:RetainedEarningsAccumulatedLosses bus:Consolidated 2024-04-30 NI029570 core:RevaluationReserve bus:Consolidated 2024-04-30 NI029570 core:ShareCapital 2024-04-30 NI029570 core:ShareCapital bus:Consolidated 2024-04-30 NI029570 core:TotalEquityAttributableToOwnersParentBeforeNon-controllingInterests bus:Consolidated 2024-04-30 NI029570 core:FinanceLeases core:CurrentFinancialInstruments 2024-04-30 NI029570 core:FinanceLeases core:CurrentFinancialInstruments bus:Consolidated 2024-04-30 NI029570 core:FinanceLeases core:Non-currentFinancialInstruments 2024-04-30 NI029570 core:FinanceLeases core:Non-currentFinancialInstruments bus:Consolidated 2024-04-30 NI029570 core:CurrentFinancialInstruments 2024-04-30 NI029570 core:CurrentFinancialInstruments bus:Consolidated 2024-04-30 NI029570 core:CurrentFinancialInstruments core:WithinOneYear 2024-04-30 NI029570 core:CurrentFinancialInstruments core:WithinOneYear bus:Consolidated 2024-04-30 NI029570 core:Non-currentFinancialInstruments 2024-04-30 NI029570 core:Non-currentFinancialInstruments bus:Consolidated 2024-04-30 NI029570 core:Non-currentFinancialInstruments core:AfterOneYear 2024-04-30 NI029570 core:Non-currentFinancialInstruments core:AfterOneYear bus:Consolidated 2024-04-30 NI029570 core:BetweenTwoFiveYears bus:Consolidated 2024-04-30 NI029570 core:WithinOneYear bus:Consolidated 2024-04-30 NI029570 core:ConstructionInProgressAssetsUnderConstruction 2024-04-30 NI029570 core:ConstructionInProgressAssetsUnderConstruction bus:Consolidated 2024-04-30 NI029570 core:FurnitureFittings bus:Consolidated 2024-04-30 NI029570 core:LandBuildings core:OwnedOrFreeholdAssets bus:Consolidated 2024-04-30 NI029570 core:LandBuildings core:ShortLeaseholdAssets bus:Consolidated 2024-04-30 NI029570 core:MotorVehicles bus:Consolidated 2024-04-30 NI029570 core:PlantMachinery bus:Consolidated 2024-04-30 NI029570 bus:FRS102 bus:Consolidated 2023-05-01 2024-04-30 NI029570 bus:Audited bus:Consolidated 2023-05-01 2024-04-30 NI029570 bus:FullAccounts bus:Consolidated 2023-05-01 2024-04-30 NI029570 bus:RegisteredOffice bus:Consolidated 2023-05-01 2024-04-30 NI029570 bus:CompanySecretary1 2023-05-01 2024-04-30 NI029570 bus:Director1 2023-05-01 2024-04-30 NI029570 bus:Director1 bus:Consolidated 2023-05-01 2024-04-30 NI029570 bus:Director2 2023-05-01 2024-04-30 NI029570 bus:Director2 bus:Consolidated 2023-05-01 2024-04-30 NI029570 bus:OrdinaryShareClass1 bus:Consolidated 2023-05-01 2024-04-30 NI029570 bus:Consolidated 2023-05-01 2024-04-30 NI029570 bus:Consolidated 1 2023-05-01 2024-04-30 NI029570 bus:PrivateLimitedCompanyLtd bus:Consolidated 2023-05-01 2024-04-30 NI029570 bus:ConsolidatedGroupCompanyAccounts 2023-05-01 2024-04-30 NI029570 bus:Agent1 bus:Consolidated 2023-05-01 2024-04-30 NI029570 1 2023-05-01 2024-04-30 NI029570 core:CapitalRedemptionReserve 2023-05-01 2024-04-30 NI029570 core:CapitalRedemptionReserve bus:Consolidated 2023-05-01 2024-04-30 NI029570 core:RetainedEarningsAccumulatedLosses 2023-05-01 2024-04-30 NI029570 core:RetainedEarningsAccumulatedLosses bus:Consolidated 2023-05-01 2024-04-30 NI029570 core:RevaluationReserve bus:Consolidated 2023-05-01 2024-04-30 NI029570 core:ShareCapital 2023-05-01 2024-04-30 NI029570 core:ShareCapital bus:Consolidated 2023-05-01 2024-04-30 NI029570 core:TotalEquityAttributableToOwnersParentBeforeNon-controllingInterests bus:Consolidated 2023-05-01 2024-04-30 NI029570 countries:Europe bus:Consolidated 2023-05-01 2024-04-30 NI029570 countries:UnitedKingdom bus:Consolidated 2023-05-01 2024-04-30 NI029570 core:OtherAssetsUnderOperatingLeases bus:Consolidated 2023-05-01 2024-04-30 NI029570 core:PlantEquipmentUnderOperatingLeases bus:Consolidated 2023-05-01 2024-04-30 NI029570 core:AssetsNotYetAvailableForUsePPE bus:Consolidated 2023-05-01 2024-04-30 NI029570 core:ConstructionInProgressAssetsUnderConstruction 2023-05-01 2024-04-30 NI029570 core:ConstructionInProgressAssetsUnderConstruction bus:Consolidated 2023-05-01 2024-04-30 NI029570 core:FurnitureFittings bus:Consolidated 2023-05-01 2024-04-30 NI029570 core:Land bus:Consolidated 2023-05-01 2024-04-30 NI029570 core:LandBuildings bus:Consolidated 2023-05-01 2024-04-30 NI029570 core:LandBuildings core:OwnedOrFreeholdAssets bus:Consolidated 2023-05-01 2024-04-30 NI029570 core:LandBuildings core:ShortLeaseholdAssets bus:Consolidated 2023-05-01 2024-04-30 NI029570 core:LeaseholdImprovements bus:Consolidated 2023-05-01 2024-04-30 NI029570 core:MotorVehicles bus:Consolidated 2023-05-01 2024-04-30 NI029570 core:PlantMachinery bus:Consolidated 2023-05-01 2024-04-30 NI029570 core:Subsidiary1 2023-05-01 2024-04-30 NI029570 core:Subsidiary1 1 2023-05-01 2024-04-30 NI029570 core:Subsidiary1 countries:NorthernIreland 2023-05-01 2024-04-30 NI029570 core:Subsidiary2 2023-05-01 2024-04-30 NI029570 core:Subsidiary2 1 2023-05-01 2024-04-30 NI029570 core:Subsidiary2 countries:NorthernIreland 2023-05-01 2024-04-30 NI029570 core:Subsidiary3 2023-05-01 2024-04-30 NI029570 core:Subsidiary3 1 2023-05-01 2024-04-30 NI029570 core:Subsidiary3 countries:EnglandWales 2023-05-01 2024-04-30 NI029570 core:Subsidiary4 2023-05-01 2024-04-30 NI029570 core:Subsidiary4 1 2023-05-01 2024-04-30 NI029570 core:Subsidiary4 countries:AllCountries 2023-05-01 2024-04-30 NI029570 core:Subsidiary5 2023-05-01 2024-04-30 NI029570 core:Subsidiary5 1 2023-05-01 2024-04-30 NI029570 core:Subsidiary5 countries:NorthernIreland 2023-05-01 2024-04-30 NI029570 core:Subsidiary6 2023-05-01 2024-04-30 NI029570 core:Subsidiary6 1 2023-05-01 2024-04-30 NI029570 core:Subsidiary6 countries:NorthernIreland 2023-05-01 2024-04-30 NI029570 core:UKTax bus:Consolidated 2023-05-01 2024-04-30 NI029570 countries:AllCountries bus:Consolidated 2023-05-01 2024-04-30 NI029570 2023-04-30 NI029570 bus:Consolidated 2023-04-30 NI029570 core:CapitalRedemptionReserve 2023-04-30 NI029570 core:CapitalRedemptionReserve bus:Consolidated 2023-04-30 NI029570 core:RetainedEarningsAccumulatedLosses 2023-04-30 NI029570 core:RetainedEarningsAccumulatedLosses bus:Consolidated 2023-04-30 NI029570 core:RevaluationReserve bus:Consolidated 2023-04-30 NI029570 core:ShareCapital 2023-04-30 NI029570 core:ShareCapital bus:Consolidated 2023-04-30 NI029570 core:TotalEquityAttributableToOwnersParentBeforeNon-controllingInterests bus:Consolidated 2023-04-30 NI029570 core:ConstructionInProgressAssetsUnderConstruction bus:Consolidated 2023-04-30 NI029570 core:FurnitureFittings bus:Consolidated 2023-04-30 NI029570 core:LandBuildings core:OwnedOrFreeholdAssets bus:Consolidated 2023-04-30 NI029570 core:LandBuildings core:ShortLeaseholdAssets bus:Consolidated 2023-04-30 NI029570 core:MotorVehicles bus:Consolidated 2023-04-30 NI029570 core:PlantMachinery bus:Consolidated 2023-04-30 NI029570 2022-05-01 2023-04-30 NI029570 2023-04-30 NI029570 bus:OrdinaryShareClass1 bus:Consolidated 2023-04-30 NI029570 bus:Consolidated 2023-04-30 NI029570 core:FinanceLeases core:CurrentFinancialInstruments 2023-04-30 NI029570 core:FinanceLeases core:CurrentFinancialInstruments bus:Consolidated 2023-04-30 NI029570 core:FinanceLeases core:Non-currentFinancialInstruments 2023-04-30 NI029570 core:FinanceLeases core:Non-currentFinancialInstruments bus:Consolidated 2023-04-30 NI029570 core:CurrentFinancialInstruments 2023-04-30 NI029570 core:CurrentFinancialInstruments bus:Consolidated 2023-04-30 NI029570 core:CurrentFinancialInstruments core:WithinOneYear 2023-04-30 NI029570 core:CurrentFinancialInstruments core:WithinOneYear bus:Consolidated 2023-04-30 NI029570 core:Non-currentFinancialInstruments 2023-04-30 NI029570 core:Non-currentFinancialInstruments bus:Consolidated 2023-04-30 NI029570 core:Non-currentFinancialInstruments core:AfterOneYear 2023-04-30 NI029570 core:Non-currentFinancialInstruments core:AfterOneYear bus:Consolidated 2023-04-30 NI029570 core:BetweenTwoFiveYears bus:Consolidated 2023-04-30 NI029570 core:WithinOneYear bus:Consolidated 2023-04-30 NI029570 core:ConstructionInProgressAssetsUnderConstruction bus:Consolidated 2023-04-30 NI029570 core:FurnitureFittings bus:Consolidated 2023-04-30 NI029570 core:LandBuildings core:OwnedOrFreeholdAssets bus:Consolidated 2023-04-30 NI029570 core:LandBuildings core:ShortLeaseholdAssets bus:Consolidated 2023-04-30 NI029570 core:MotorVehicles bus:Consolidated 2023-04-30 NI029570 core:PlantMachinery bus:Consolidated 2023-04-30 NI029570 bus:Consolidated 2022-05-01 2023-04-30 NI029570 bus:Consolidated 1 2022-05-01 2023-04-30 NI029570 1 2022-05-01 2023-04-30 NI029570 core:CapitalRedemptionReserve 2022-05-01 2023-04-30 NI029570 core:RetainedEarningsAccumulatedLosses 2022-05-01 2023-04-30 NI029570 core:ShareCapital 2022-05-01 2023-04-30 NI029570 countries:Europe bus:Consolidated 2022-05-01 2023-04-30 NI029570 countries:UnitedKingdom bus:Consolidated 2022-05-01 2023-04-30 NI029570 core:OtherAssetsUnderOperatingLeases bus:Consolidated 2022-05-01 2023-04-30 NI029570 core:PlantEquipmentUnderOperatingLeases bus:Consolidated 2022-05-01 2023-04-30 NI029570 core:Subsidiary1 1 2022-05-01 2023-04-30 NI029570 core:Subsidiary2 1 2022-05-01 2023-04-30 NI029570 core:Subsidiary3 1 2022-05-01 2023-04-30 NI029570 core:Subsidiary4 1 2022-05-01 2023-04-30 NI029570 core:Subsidiary5 1 2022-05-01 2023-04-30 NI029570 core:Subsidiary6 1 2022-05-01 2023-04-30 NI029570 core:UKTax bus:Consolidated 2022-05-01 2023-04-30 NI029570 2022-04-30 NI029570 bus:Consolidated 2022-04-30 NI029570 core:CapitalRedemptionReserve 2022-04-30 NI029570 core:RetainedEarningsAccumulatedLosses 2022-04-30 NI029570 core:ShareCapital 2022-04-30 iso4217:GBP xbrli:pure xbrli:shares

Registration number: NI029570

N.K. Holdings Limited

Annual Report and Consolidated Financial Statements

for the Year Ended 30 April 2024

 

N.K. Holdings Limited

Contents

Company Information

1

Strategic Report

2

Directors' Report

3

Independent Auditor's Report

4 to 6

Group Profit and Loss Account

7

Group Statement of Comprehensive Income

8

Group Balance Sheet

9

Company Balance Sheet

10

Group Statement of Changes in Equity

11

Company Statement of Changes in Equity

12

Group Statement of Cash Flows

13

Company Statement of Cash Flows

14

Notes to the Financial Statements

15 to 32

 

N.K. Holdings Limited

Company Information

Directors

Paul Davidson

Allan Davidson

Company secretary

Simon Ferguson

Registered office

40 Trailcock Road
Carrickfergus
County Antrim
BT38 7NU

Solicitors

Millar McCall Wylie
Imperial House
Donegall Square East
Belfast
County Antrim
BT1 5HD

Bankers

Danske Bank
North Business Centre
1-2 Broadway
Ballymena
County Antrim
BT43 7AA

Auditors

RBCA Limited
Linenhall Exchange
26 Linenhall Street
Belfast
BT2 8BG

Company number

NI029570

 

N.K. Holdings Limited

Strategic Report for the Year Ended 30 April 2024

The directors present their strategic report for the year ended 30 April 2024.

Principal activity

The principal activities of the group during the year were the manufacture and erection of security fencing, galvanising steel products and providing anti-corrosive treatments. The group also holds investment properties for rental return.

Fair review of the business

The directors aim to present a balanced and comprehensive review of the development and performance of the group during the year and its position as at 30 April 2024. The review is consistent with the size and nature of the business and is written in the context of the risks and uncertainties it faces.

As for many businesses of its size, the business environment in which the group operates remains challenging, the fencing market in Ireland and the United Kingdom is highly competitive.

The directors continue to identify opportunities to increase turnover, and continue to monitor and reduce costs where possible. The directors anticipate higher volumes of trade into 2025, and are hopeful of maintaining market share.

Principal risks and uncertainties

The key risks and uncertainties affecting the group are considered to relate to competition from other businesses, employee retention, product availability and the general downturn in customer spending due to the current economic climate.

In these circumstances, the directors work closely with suppliers, customers, staff and financial institutions to carefully manage the business.

Financial key performance indicators

The directors consider that the key performance indicators are those that communicate the financial performance and strength of the group as a whole, these being turnover, gross margin, operating profit and net assets.

There has been an increase in turnover of 6.3% from £19.36m to £20.53m. However, the gross profit margin has decreased from 35.82% in 2023 to 29.46%.

The group had an operating profit for the year of £1,497k compared to an operating profit of £2,339k in 2023.

The net assets have decreased from £11.51m in 2023 to £11.28m, this after a dividend payment of £990k.

Approved by the Board on 19 November 2024 and signed on its behalf by:

.........................................
Paul Davidson
Director

.........................................
Allan Davidson
Director

 
     
 

N.K. Holdings Limited

Directors' Report for the Year Ended 30 April 2024

The directors present their report and the for the year ended 30 April 2024.

Directors of the group

The directors who held office during the year were as follows:

Paul Davidson

Allan Davidson

Auditor

The auditor, RBCA Limited, was deemed appointed under section 487 (2) of the Companies Act 2006.

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 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 group and the parent company and of the profit or loss of the group 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 applicable UK Accounting Standards have 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 group will continue in business.

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the group's and the parent company's transactions and disclose with reasonable accuracy at any time the financial position of the group and the parent 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 group and the parent company, and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Disclosure of information to the auditor

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 group'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.

Approved by the Board on 19 November 2024 and signed on its behalf by:

.........................................
Paul Davidson
Director

.........................................
Allan Davidson
Director

 
     
 

N.K. Holdings Limited

Independent Auditor's Report to the Members of N.K. Holdings Limited

Opinion

We have audited the financial statements of N.K. Holdings Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 30 April 2024, which comprise the Group Profit and Loss Account, Group Statement of Comprehensive Income, Group Balance Sheet, Company Balance Sheet, Group Statement of Changes in Equity, Company Statement of Changes in Equity, Group Statement of Cash Flows, Company Statement of Cash Flows, 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, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

give a true and fair view of the state of the group's and the parent company's affairs as at 30 April 2024 and of the group's 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 group and the parent 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 group's and the parent 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 directors are responsible for the 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.

 

N.K. Holdings Limited

Independent Auditor's Report to the Members of N.K. Holdings Limited

We have nothing to report in this regard.

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 Strategic Report and Directors' Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and

the Strategic Report and Directors' Report have 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 group and the parent company and their environment obtained in the course of the audit, we have not identified material misstatements in the Strategic Report and 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 by the parent company, or returns adequate for our audit have not been received from branches not visited by us; or

the parent company 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.

Responsibilities of directors

As explained more fully in the Directors' Report, 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.

The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

We identified areas of laws and regulations that could reasonably be expected to have a material effect on the financial statements from our sector experience through discussion with the directors and other management (as required by auditing standards);

We had regard to laws and regulations in areas that directly affect the financial statements including financial reporting and taxation legislation. We considered that extent of compliance with those laws and regulations as part of our procedures on the related financial statement items;

 

N.K. Holdings Limited

Independent Auditor's Report to the Members of N.K. Holdings Limited

With the exception of any known or possible non-compliance, and as required by auditing standards, our work in respect of these was limited to enquiry of the directors;

We communicated applicable laws and regulations throughout our audit team and remained alert to any indications of non-compliance throughout the audit;

We addressed the risk of fraud through management override of controls, by testing the appropriateness of journal entries, and other adjustments; assessing whether the judgements made in making accounting estimates are indicative of a potential basis; and evaluating the business rationale of any significant transactions that are unusual or outside the normal course of
business; and

Our audit procedures were designed to respond to risks of material misstatement in the financial statements, recognising that 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 by, for example, forgery, misrepresentations or through collusion. There are inherent limitations in the audit procedures performed and the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we are to become aware of it.

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 parent 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 parent 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 parent company and the parent company’s members as a body, for our audit work, for this report, or for the opinions we have formed.

......................................
Brian Stewart (Senior Statutory Auditor)
For and on behalf of RBCA Limited, Statutory Auditor

Linenhall Exchange
26 Linenhall Street
Belfast
BT2 8BG

19 November 2024

 

N.K. Holdings Limited

Group Profit and Loss Account for the Year Ended 30 April 2024

Note

2024
£

2023
£

Turnover

3

20,530,236

19,361,612

Cost of sales

 

(14,482,816)

(12,426,789)

Gross profit

 

6,047,420

6,934,823

Administrative expenses

 

(4,613,194)

(4,563,006)

Other operating income/(expenses)

 

63,254

(33,043)

Operating profit

4

1,497,480

2,338,774

Other interest receivable and similar income

5

3,502

2,340

Interest payable and similar expenses

6

(154,873)

(155,622)

   

(151,371)

(153,282)

Profit before tax

 

1,346,109

2,185,492

Tax on profit

10

(589,900)

(412,363)

Profit for the financial year

 

756,209

1,773,129

Profit attributable to:

 

Owners of the company

 

756,209

1,773,129

 

N.K. Holdings Limited

Group Statement of Comprehensive Income for the Year Ended 30 April 2024

2024
£

2023
£

Profit for the year

756,209

1,773,129

Foreign currency translation losses

(211)

(420)

Total comprehensive income for the year

755,998

1,772,709

Total comprehensive income attributable to:

Owners of the company

755,998

1,772,709

 

N.K. Holdings Limited

(Registration number: NI029570)
Group Balance Sheet as at 30 April 2024

Note

2024
£

2023
£

Fixed assets

 

Tangible assets

11

7,664,727

6,246,263

Investment property

12

2,990,231

2,694,940

 

10,654,958

8,941,203

Current assets

 

Stocks

14

3,527,396

2,237,444

Debtors

15

4,353,911

5,394,348

Cash at bank and in hand

 

1,403,076

2,171,165

 

9,284,383

9,802,957

Creditors: Amounts falling due within one year

16

(5,659,394)

(4,746,582)

Net current assets

 

3,624,989

5,056,375

Total assets less current liabilities

 

14,279,947

13,997,578

Creditors: Amounts falling due after more than one year

16

(2,133,395)

(1,880,564)

Provisions for liabilities

(869,336)

(605,796)

Net assets

 

11,277,216

11,511,218

Capital and reserves

 

Called up share capital

18

50,667

50,667

Capital redemption reserve

19

49,333

49,333

Revaluation reserve

19

1,603,223

1,603,223

Retained earnings

19

9,573,993

9,807,995

Equity attributable to owners of the company

 

11,277,216

11,511,218

Shareholders' funds

 

11,277,216

11,511,218

Approved and authorised by the Board on 19 November 2024 and signed on its behalf by:
 

.........................................
Paul Davidson
Director

.........................................
Allan Davidson
Director

 
     
 

N.K. Holdings Limited

(Registration number: NI029570)
Company Balance Sheet as at 30 April 2024

Note

2024
£

2023
£

Fixed assets

 

Tangible assets

11

1,170,367

-

Investment property

12

7,770,260

7,474,969

Investments

13

585,797

585,697

 

9,526,424

8,060,666

Current assets

 

Debtors

15

6,644,960

1,736,581

Cash at bank and in hand

 

137,002

391,989

 

6,781,962

2,128,570

Creditors: Amounts falling due within one year

16

(2,416,849)

(588,497)

Net current assets

 

4,365,113

1,540,073

Total assets less current liabilities

 

13,891,537

9,600,739

Creditors: Amounts falling due after more than one year

16

(634,780)

(277,497)

Provisions for liabilities

-

(89,953)

Net assets

 

13,256,757

9,233,289

Capital and reserves

 

Called up share capital

18

50,667

50,667

Capital redemption reserve

7,000

7,000

Retained earnings

13,199,090

9,175,622

Shareholders' funds

 

13,256,757

9,233,289

The company made a profit after tax for the financial year of £5,013,468 (2023: £1,727,243).

Approved and authorised by the Board on 19 November 2024 and signed on its behalf by:
 

.........................................
Paul Davidson
Director

.........................................
Allan Davidson
Director

 
     
 

N.K. Holdings Limited

Group Statement of Changes in Equity for the Year Ended 30 April 2024
Equity attributable to the parent company

Share capital
£

Capital redemption reserve
£

Revaluation reserve
£

Retained earnings
£

Total
£

Total equity
£

At 1 May 2023

50,667

49,333

1,603,223

9,807,995

11,511,218

11,511,218

Profit for the year

-

-

-

756,209

756,209

756,209

Other comprehensive income

-

-

-

(211)

(211)

(211)

Total comprehensive income

-

-

-

755,998

755,998

755,998

Dividends

-

-

-

(990,000)

(990,000)

(990,000)

At 30 April 2024

50,667

49,333

1,603,223

9,573,993

11,277,216

11,277,216

 

N.K. Holdings Limited

Company Statement of Changes in Equity for the Year Ended 30 April 2024

Share capital
£

Capital redemption reserve
£

Retained earnings
£

Total
£

At 1 May 2023

50,667

7,000

9,175,622

9,233,289

Profit for the year

-

-

5,013,468

5,013,468

Dividends

-

-

(990,000)

(990,000)

At 30 April 2024

50,667

7,000

13,199,090

13,256,757

Share capital
£

Capital redemption reserve
£

Retained earnings
£

Total
£

At 1 May 2022

50,667

7,000

8,188,379

8,246,046

Profit for the year

-

-

1,727,243

1,727,243

Dividends

-

-

(740,000)

(740,000)

At 30 April 2023

50,667

7,000

9,175,622

9,233,289

 

N.K. Holdings Limited

Group Statement of Cash Flows for the Year Ended 30 April 2024

Note

2024
£

2023
£

Cash flows from operating activities

Profit for the year

 

756,209

1,773,129

Adjustments to cash flows from non-cash items

 

Depreciation and amortisation

4

1,007,243

920,605

Profit on disposal of tangible assets

(153,905)

(387,808)

Loss from sales of investment properties

-

65,578

Finance income

(3,502)

(2,340)

Finance costs

154,873

155,622

Income tax expense

10

589,900

412,363

 

2,350,818

2,937,149

Working capital adjustments

 

(Increase)/decrease in stocks

14

(1,289,952)

49,813

Decrease/(increase) in debtors

15

1,040,437

(37,762)

Increase/(decrease) in creditors

16

647,918

(216,885)

Decrease in deferred income, including government grants

 

(51)

(63)

Cash generated from operations

 

2,749,170

2,732,252

Income taxes paid

10

(160,300)

(339,258)

Net cash flow from operating activities

 

2,588,870

2,392,994

Cash flows from investing activities

 

Interest received

3,502

2,340

Acquisitions of tangible assets

(2,577,158)

(733,144)

Proceeds from sale of tangible assets

 

305,356

918,926

Acquisition of investment properties

(297,009)

(1,107,266)

Proceeds from sale of investment properties

 

1,718

1

Loans made

 

-

(500,000)

Net cash flows from investing activities

 

(2,563,591)

(1,419,143)

Cash flows from financing activities

 

Interest paid

(154,874)

(158,244)

Proceeds from bank borrowing draw downs

 

500,000

475,000

Repayment of bank borrowing

 

(269,815)

(215,895)

Payments to finance lease creditors

 

121,321

(534,375)

Dividends paid

(990,000)

(740,000)

Net cash flows from financing activities

 

(793,368)

(1,173,514)

Net decrease in cash and cash equivalents

 

(768,089)

(199,663)

Cash and cash equivalents at 1 May

 

2,171,165

2,370,828

Cash and cash equivalents at 30 April

 

1,403,076

2,171,165

 

N.K. Holdings Limited

Company Statement of Cash Flows for the Year Ended 30 April 2024

Note

2024
£

2023
£

Cash flows from operating activities

Profit for the year

 

5,013,468

1,727,243

Adjustments to cash flows from non-cash items

 

Profit from sales of investment properties

-

(297,341)

Finance income

(4,801,152)

(1,226,191)

Finance costs

32,420

5,330

Income tax expense

10

71,020

82,338

 

315,756

291,379

Working capital adjustments

 

Increase in debtors

15

(4,908,379)

(701,338)

Increase in creditors

16

1,610,258

208,980

Cash generated from operations

 

(2,982,365)

(200,979)

Income taxes paid

10

(37,747)

(97,228)

Net cash flow from operating activities

 

(3,020,112)

(298,207)

Cash flows from investing activities

 

Interest received

1,152

1,191

Acquisitions of tangible assets

(1,170,367)

-

Acquisition of investment properties

(297,009)

(1,107,266)

Proceeds from sale of investment properties

 

1,718

858,664

Loans made

 

-

(500,000)

Dividend income

4,800,000

1,225,000

Net cash flows from investing activities

 

3,335,494

477,589

Cash flows from financing activities

 

Interest paid

(32,420)

(5,330)

Proceeds from bank borrowing draw downs

 

500,000

325,000

Repayment of bank borrowing

 

(47,949)

(19,159)

Dividends paid

(990,000)

(740,000)

Net cash flows from financing activities

 

(570,369)

(439,489)

Net decrease in cash and cash equivalents

 

(254,987)

(260,107)

Cash and cash equivalents at 1 May

 

391,989

652,096

Cash and cash equivalents at 30 April

 

137,002

391,989

 

N.K. Holdings Limited

Notes to the Financial Statements for the Year Ended 30 April 2024

1

General information

The company is a private company limited by share capital, incorporated in Northern Ireland.

The address of its registered office is:
40 Trailcock Road
Carrickfergus
County Antrim
BT38 7NU
Northern Ireland

These financial statements were authorised for issue by the Board on 19 November 2024.

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.

Statement of compliance

These financial statements were prepared in accordance with Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland and the Companies Act 2006'.

The financial statements are prepared in sterling. Monetary amounts in these financial statements are rounded to the nearest £. The company operates with two functional currencies, sterling and euro.

Basis of preparation

These financial statements have been prepared using the historical cost convention except that as disclosed in the accounting policies certain items are shown at fair value.

 

N.K. Holdings Limited

Notes to the Financial Statements for the Year Ended 30 April 2024

Basis of consolidation

The consolidated financial statements consolidate the financial statements of the company and its subsidiary undertakings drawn up to 30 April 2024.

A subsidiary is an entity controlled by the company. Control is achieved where the company has the power to govern the financial and operating policies of an entity so as to obtain benefits from its activities.

The results of subsidiaries acquired or disposed of during the year are included in the Profit and Loss Account from the effective date of acquisition or up to the effective date of disposal, as appropriate. Where necessary, adjustments are made to the financial statements of subsidiaries to bring their accounting policies into line with those used by the group.

The purchase method of accounting is used to account for business combinations that result in the acquisition of subsidiaries by the group. The cost of a business combination is measured as the fair value of the assets given, equity instruments issued and liabilities incurred or assumed at the date of exchange, plus costs directly attributable to the business combination. Identifiable assets acquired and liabilities and contingent liabilities assumed in a business combination are measured initially at their fair values at the acquisition date. Any excess of the cost of the business combination over the acquirer’s interest in the net fair value of the identifiable assets, liabilities and contingent liabilities recognised is recorded as goodwill.

Inter-company transactions, balances and unrealised gains on transactions between the company and its subsidiaries, which are related parties, are eliminated in full.

Intra-group losses are also eliminated but may indicate an impairment that requires recognition in the consolidated financial statements.

Accounting policies of subsidiaries have been changed where necessary to ensure consistency with the policies adopted by the group. Non-controlling interests in the net assets of consolidated subsidiaries are identified separately from the group’s equity therein. Non-controlling interests consist of the amount of those interests at the date of the original business combination and the non-controlling shareholder’s share of changes in equity since the date of the combination.

Going concern

At the time of approving the financial statements, the directors have a reasonable expectation that the group 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.

Judgements

In the application of the group’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.

 

N.K. Holdings Limited

Notes to the Financial Statements for the Year Ended 30 April 2024

Key sources of estimation uncertainty

The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are as follows.

Fixed assets
The annual depreciation charge on fixed assets depends primarily on the estimated lives of each type of asset and estimates of residual values. The directors regularly review these asset lives and change them as necessary to reflect current thinking on remaining lives in light of prospective economic utilisation and physical condition of the assets concerned. Changes in asset lives can have a significant impact on depreciation and amortisation charges for the period. Detail of the useful lives is included in the accounting policies.

Investment property
Fair value is determined annually and derived from the current market rents and investment property yields for comparable real estate. Valuation involves some estimation uncertainty but is based on periodic advice from independent expert valuers.

Stocks
At each balance sheet date the group's stocks are assessed for impairment. If stock is impaired, the carrying amount is reduced to its selling price less costs to complete and sell. The assessment of the selling price of such stock involves some estimation uncertainty.

Debtors
Short term debtors are measured at transaction price, less any impairment. Impairment of such debtors involves some estimation uncertainty.

Taxation
Judgements are made in relation to the calculation of certain aspects of the year end tax provisions and the respective tax charge. The management used external professional advice to support the year end provisions.
 

Revenue recognition

Turnover comprises the fair value of the consideration received or receivable for the sale of goods and provision of services in the ordinary course of the group’s activities. Turnover is shown net of sales/value added tax, returns, rebates and discounts and after eliminating sales within the group.

The group recognises revenue when:
1. The amount of revenue can be reliably measured;
2. It is probable that future economic benefits will flow to the entity; and
3. specific criteria have been met for each of the group's activities.

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.

Rental income is recognised evenly over the period of the tenancy agreement.

 

N.K. Holdings Limited

Notes to the Financial Statements for the Year Ended 30 April 2024

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 rate on the date when the fair value is re-measured.

Non-monetary items measured in terms of historical cost in a foreign currency are not retranslated.

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.

Tangible assets

Tangible assets are stated in the company balance sheet at cost, less any subsequent accumulated depreciation and subsequent accumulated impairment losses.

The cost of tangible assets includes directly attributable incremental costs incurred in their acquisition and installation.

 

N.K. Holdings Limited

Notes to the Financial Statements for the Year Ended 30 April 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

Freehold land

Not depreciated

Freehold buildings

5% per annum straight line

Leasehold improvements

10% per annum straight line

Plant and equipment

10%-25% per annum straight line

Fixtures and fittings

15%-20% per annum straight line

Motor vehicles

25% per annum straight line

Assets under construction

Not depreciated

Investment property

Investment property is carried at fair value, derived from the current market prices for comparable real estate determined annually by external valuers. The valuers use observable market prices, adjusted if necessary for any difference in the nature, location or condition of the specific asset. Changes in fair value are recognised in profit or loss.

Business combinations

Business combinations are accounted for using the purchase method. The consideration for each acquisition is measured at the aggregate of the fair values at acquisition date of assets given, liabilities incurred or assumed, and equity instruments issued by the group in exchange for control of the acquired, plus any costs directly attributable to the business combination. When a business combination agreement provides for an adjustment to the cost of the combination contingent on future events, the group includes the estimated amount of that adjustment in the cost of the combination at the acquisition date if the adjustment is probable and can be measured reliably.

Investments

Investments in equity shares which are publicly traded or where the fair value can be measured reliably are initially measured at fair value, with changes in fair value recognised in profit or loss. Investments in equity shares which are not publicly traded and where fair value cannot be measured reliably are measured at cost less impairment.

Interest income on debt securities, where applicable, is recognised in income using the effective interest method. Dividends on equity securities are recognised in income when receivable.

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 change in value.

Trade debtors

Trade debtors are amounts due from customers for merchandise sold or services performed in the ordinary course of business.

Trade debtors 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 debtors is established when there is objective evidence that the group will not be able to collect all amounts due according to the original terms of the receivables.

 

N.K. Holdings Limited

Notes to the Financial Statements for the Year Ended 30 April 2024

Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost is determined using the first-in, first-out (FIFO) method. The cost of finished goods and work in progress comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the inventories to their present location and condition.

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

At each reporting date, stocks are assessed for impairment. If stocks are 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.

Trade creditors

Trade creditors 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 the group does not have an unconditional right, at the end of the reporting period, to defer settlement of the creditor for at least twelve months after the reporting date. If there is an unconditional right to defer settlement for at least twelve months after the reporting date, they are presented as non-current liabilities.

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

Borrowings

Interest-bearing borrowings are initially recorded at fair value, net of transaction costs. Interest-bearing borrowings are subsequently carried at amortised cost, with the difference between the proceeds, net of transaction costs, and the amount due on redemption being recognised as a charge to the profit and loss account over the period of the relevant borrowing.

Interest expense is recognised on the basis of the effective interest method and is included in interest payable and similar charges.

Borrowings are classified as current liabilities unless the group has an unconditional right to defer settlement of the liability for at least twelve months after the reporting date.

Leases

Leases in which substantially all the risks and rewards of ownership are retained by the lessor are classified as operating leases. Payments made under operating leases are charged to profit or loss on a straight-line basis over the period of the lease.

Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessee.

Assets held under finance leases are recognised at the lower of their fair value at inception of the lease and the present value of the minimum lease payments. These assets are depreciated on a straight-line basis over the shorter of the useful life of the asset and the lease term. The corresponding liability to the lessor is included in the company balance sheet as a finance lease obligation.

Lease payments are apportioned between finance costs in the profit and loss account and reduction of the lease obligation so as to achieve a constant periodic rate of interest on the remaining balance of the liability.

 

N.K. Holdings Limited

Notes to the Financial Statements for the Year Ended 30 April 2024

Financial instruments
The group 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 group's balance sheet when the group becomes party to the contractual provisions of the instrument.

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

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

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 group 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 group 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 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.

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 group's contractual obligations expire or are discharged or cancelled.

 

N.K. Holdings Limited

Notes to the Financial Statements for the Year Ended 30 April 2024

Financial instruments
The group 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 group's balance sheet when the group becomes party to the contractual provisions of the instrument.

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

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

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 group 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 group 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 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.

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 group's contractual obligations expire or are discharged or cancelled.

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.

Dividends

Dividend distribution to the group’s shareholders is recognised as a liability in the financial statements in the reporting period in which the dividends are declared.

Defined contribution pension obligation

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

Contributions to defined contribution plans are recognised as employee benefit expense when they are due. If contribution payments exceed the contribution due for service, the excess is recognised as a prepayment.

 

N.K. Holdings Limited

Notes to the Financial Statements for the Year Ended 30 April 2024

3

Turnover

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

2024
£

2023
£

Fencing, galvanising and anti-corrosive treatments

20,384,792

19,257,264

Rental income from investment property

145,444

104,348

20,530,236

19,361,612

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

2024
£

2023
£

UK

16,690,425

16,018,922

Europe

3,839,811

3,342,690

20,530,236

19,361,612

4

Operating profit

Operating profit for the year is stated after charging/(crediting)

2024
£

2023
£

Foreign exchange gains

(73,385)

(146,492)

Depreciation expense

1,007,394

920,605

Profit on disposal of property, plant and equipment

(153,905)

(387,808)

Loss on disposal of investment property

-

65,578

Operating lease expense - plant and machinery

23,319

20,219

5

Other interest receivable and similar income

2024
£

2023
£

Interest income on bank deposits

3,502

2,340

6

Interest payable and similar expenses

2024
£

2023
£

Interest on bank overdrafts and loans

96,565

102,261

Interest on obligations under finance leases and hire purchase contracts

58,308

53,361

154,873

155,622

 

N.K. Holdings Limited

Notes to the Financial Statements for the Year Ended 30 April 2024

7

Staff costs

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

2024
£

2023
£

Wages and salaries

6,067,325

5,724,335

Pension costs, defined contribution scheme

147,266

128,194

Other employee expense

142,867

31,276

6,357,458

5,883,805

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

2024
No.

2023
No.

Production

117

113

Administration and support

47

47

Distribution

4

4

Directors

2

2

170

166

8

Directors' remuneration

The directors' remuneration for the year was as follows:

2024
£

2023
£

Remuneration

626,173

412,061

9

Auditors' remuneration

2024

2023

£

£

Audit of the financial statements of the group and company

5,000

11,830

Audit of the financial statements of the company's subsidiaries

27,250

30,440

32,250

42,270

 

N.K. Holdings Limited

Notes to the Financial Statements for the Year Ended 30 April 2024

10

Taxation

2024
£

2023
£

Current taxation

UK corporation tax

236,407

294,210

Deferred taxation

Arising from origination and reversal of timing differences

353,493

118,153

Tax expense in the profit and loss account

589,900

412,363

The tax on profit before tax for the year is the same as the standard rate of corporation tax in the UK of 25% (2023 - 25%).

The differences are reconciled below:

2024
£

2023
£

Profit before tax

1,346,109

2,185,492

Corporation tax at standard rate

336,527

546,373

Adjustments in respect of prior years

-

(19,583)

Tax increase from effect of capital allowances and depreciation

36,232

-

Effect of change in corporation tax rate

-

(91,663)

Tax effect of expenses that are not deductible in determining taxable profit

(1,039,401)

(53,903)

Unutilised tax losses carried forward

63,397

1,143

Tax decrease arising from group relief

(62,097)

-

Effect of foreign tax rates

-

7

Deferred tax asset movement

-

328

Adjustment on consolidation

1,255,242

29,661

Total tax charge

589,900

412,363

 

N.K. Holdings Limited

Notes to the Financial Statements for the Year Ended 30 April 2024

11

Tangible assets

Group

Freehold land and buildings
£

Leasehold improvements
£

Assets under construction
 £

Plant and equipment
£

Fixtures and fittings
£

Motor vehicles
 £

Total
£

Cost or valuation

At 1 May 2023

3,422,620

1,106,917

-

7,474,179

541,601

207,317

12,752,634

Additions

470,260

-

1,170,367

833,428

27,274

75,829

2,577,158

Disposals

(1,210)

-

-

(846,155)

(25,402)

(88,795)

(961,562)

At 30 April 2024

3,891,670

1,106,917

1,170,367

7,461,452

543,473

194,351

14,368,230

Depreciation

At 1 May 2023

1,232,761

307,104

-

4,435,855

397,214

133,437

6,506,371

Charge for the year

221,730

101,261

-

598,725

50,056

35,471

1,007,243

Eliminated on disposal

(847)

-

-

(695,707)

(24,762)

(88,795)

(810,111)

At 30 April 2024

1,453,644

408,365

-

4,338,873

422,508

80,113

6,703,503

Carrying amount

At 30 April 2024

2,438,026

698,552

1,170,367

3,122,579

120,965

114,238

7,664,727

At 30 April 2023

2,189,859

799,813

-

3,038,323

144,388

73,880

6,246,263

 

N.K. Holdings Limited

Notes to the Financial Statements for the Year Ended 30 April 2024

Assets held under finance leases and hire purchase contracts

The net carrying amount of tangible assets includes the following amounts in respect of assets held under finance leases and hire purchase contracts:

2024
£

2023
£

Plant and equipment

1,023,912

1,027,431

Motor vehicles

69,494

1,667

1,093,406

1,029,098

Company

Assets under construction
 £

Total
£

Cost or valuation

Additions

1,170,367

1,170,367

At 30 April 2024

1,170,367

1,170,367

Carrying amount

At 30 April 2024

1,170,367

1,170,367

12

Investment properties

Group

2024
£

At 1 May

2,694,940

Additions

297,009

Disposals

(1,718)

At 30 April

2,990,231

There has been no valuation of investment properties by an independent valuer.

Company

2024
£

At 1 May

7,474,969

Additions

297,009

Disposals

(1,718)

At 30 April

7,770,260

There has been no valuation of investment properties by an independent valuer.

If investment properties were stated on an historical cost basis rather than a fair value basis, the carrying amounts would have been included in the group as £2,458,895 (2023: £2,163,604) and in the company as £5,569,201 (2023: £5,273,910).

 

N.K. Holdings Limited

Notes to the Financial Statements for the Year Ended 30 April 2024

13

Investments

Company

2024
£

2023
£

Investments in subsidiaries

585,797

585,697

Subsidiaries

£

Fair value

At 1 May 2023

585,797

At 30 April 2024

585,797

Details of undertakings

Details of the investments (including principal place of business of unincorporated entities) in which the company holds 20% or more of the nominal value of any class of share capital are as follows:

Undertaking

Registered office

Holding

Proportion of voting rights and shares held

2024

2023

Subsidiary undertakings

N.K Fencing Limited

40 Trailcock Road, Carrickfergus, Co. Antrim,
BT38 7NU

Northern Ireland

Ordinary Shares

100%

100%

N.K. Coatings Limited

4 Michelin Road, Mallusk,
Co. Antrim, BT36 4PT

Northern Ireland

Ordinary Shares

100%

100%

Flexquote Limited

Invision House, Wilbury Way, Hitchin, Hertfordshire,
SG4 0TY

England and Wales

Ordinary Shares

100%

100%

N.K. Fencing Limited (Ireland)

6 Kylemore Business Park, Kylemore Way, Dublin,
D08 ND00

Republic of Ireland

Ordinary Shares

100%

100%

N.K. Aluminium Coatings Limited

12 Michelin Road, Mallusk,
Co, Antrim, BT36 4PT

Northern Ireland

Ordinary Shares

100%

100%

N.K. Sporthorses Limited

20 Old Ballyclare Road, Templepatrick, Ballyclare,
Co. Antrim, BT39 0BJ

Northern Ireland

Ordinary Shares

100%

0%

 

N.K. Holdings Limited

Notes to the Financial Statements for the Year Ended 30 April 2024

14

Stocks

 

Group

Company

2024
£

2023
£

2024
£

2023
£

Biological assets

1,410,000

-

-

-

Other inventories

2,117,396

2,237,444

-

-

3,527,396

2,237,444

-

-

15

Debtors

 

Group

Company

Current

2024
£

2023
£

2024
£

2023
£

Trade debtors

3,444,435

3,913,070

13,915

-

Amounts owed by group undertakings

-

-

6,259,107

905,800

Prepayments and accrued income

409,972

460,991

-

-

Other debtors

499,504

1,020,287

371,938

830,781

 

4,353,911

5,394,348

6,644,960

1,736,581

16

Creditors

   

Group

Company

Note

2024
£

2023
£

2024
£

2023
£

Due within one year

 

Loans and borrowings

20

684,351

585,727

131,418

36,649

Trade creditors

 

1,456,184

2,296,795

35,664

71,055

Amounts due to group undertakings

-

-

-

4,909

Corporation tax

10

336,198

169,927

202,595

79,269

Other taxation and social security

 

422,630

405,311

8,788

5,357

Accruals and deferred income

 

674,009

850,102

18,846

31,986

Other creditors

 

2,086,022

438,720

2,019,539

359,272

 

5,659,394

4,746,582

2,416,850

588,497

Due after one year

 

Loans and borrowings

20

2,132,909

1,880,027

634,780

277,497

Government grants

 

486

537

-

-

 

2,133,395

1,880,564

634,780

277,497

 

N.K. Holdings Limited

Notes to the Financial Statements for the Year Ended 30 April 2024

17

Pension and other schemes

Defined contribution pension scheme

The group operates a defined contribution pension scheme. The pension charge for the year represents contributions payable by the group to the scheme and amounted to £147,266 (2023 - £128,194).

Contributions totalling £591 (2023 - £Nil) were payable to the scheme at the end of the year and are included in creditors.

18

Share capital

Allotted, called up and fully paid shares

2024

2023

No.

£

No.

£

Ordinary shares of £1 each

50,667

50,667

50,667

50,667

       

19

Reserves

Revaluation Reserve

Group

The revaluation reserve of £1,603,223 (2023 - £1,603,223) arose on revaluation of land and buildings on first time adoption of FRS 102.

Capital redemption reserve

Group and Company
The capital redemption reserve arose on the purchase of own shares.

Profit and loss account

Group
The profit and loss account represents the retained earnings of the group and includes non-distributable reserves of £445,803 (2023 - £445,803).

Company
The profit and loss account represents the retained earnings of the company and includes non-distributable reserves of £2,115,497 (2023 - £2,115,497).

 

N.K. Holdings Limited

Notes to the Financial Statements for the Year Ended 30 April 2024

20

Loans and borrowings

Non-current loans and borrowings

 

Group

Company

2024
£

2023
£

2024
£

2023
£

Bank borrowings

1,542,868

1,406,870

634,780

277,497

Finance lease liabilities

590,041

473,157

-

-

2,132,909

1,880,027

634,780

277,497

Current loans and borrowings

 

Group

Company

2024
£

2023
£

2024
£

2023
£

Bank borrowings

345,654

251,467

131,418

36,649

Finance lease liabilities

338,697

334,260

-

-

684,351

585,727

131,418

36,649

Bank loans are secured by a floating charge over the assets and undertakings of the group, a fixed charge over the book debts of the group and by legal mortgages over the group's premises.

Obligations under finance leases are secured on the assets to which they relate.

Bank loans includes five loans repayable by monthly and quarterly instalments at interest rates of between 6% and 8.85%.

21

Obligations under leases and hire purchase contracts

Group

Operating leases

At the reporting end date the group had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:

2024
£

2023
£

Not later than one year

66,720

34,374

Later than one year and not later than five years

149,665

35,636

216,385

70,010

 

N.K. Holdings Limited

Notes to the Financial Statements for the Year Ended 30 April 2024

22

Directors' transactions

Dividends totalling £990,000 (2023 - £740,000) were paid in the year in respect of shares held by the company's directors.

At 1 May 2023 the balance due from the group to a director was £160,386. The amount due from the group at the year end to this director was £1,202,345. No interest was charged on the outstanding balance.

At 1 May 2023 the balance due from the group to a director was £158,800. The amount due from the group at the year end to this director was £2,437,982. No interest was charged on the outstanding balance.

An interest free loan of £500,000 advanced by the company to its directors in the prior year was repaid in full by October 2023.

23

Controlling party

The ultimate controlling party is considered to be Mr A Davidson who is the majority shareholder of the issued share capital.