Caseware UK (AP4) 2023.0.135 2023.0.135 2024-03-312024-03-31truetruetrue2023-04-0130false29truefalsefalse 00297731 2023-04-01 2024-03-31 00297731 2022-04-01 2023-03-31 00297731 2024-03-31 00297731 2023-03-31 00297731 2022-04-01 00297731 1 2023-04-01 2024-03-31 00297731 1 2022-04-01 2023-03-31 00297731 d:Director1 2023-04-01 2024-03-31 00297731 d:Director2 2023-04-01 2024-03-31 00297731 d:Director2 2024-03-31 00297731 d:RegisteredOffice 2023-04-01 2024-03-31 00297731 d:Agent1 2023-04-01 2024-03-31 00297731 e:Buildings 2023-04-01 2024-03-31 00297731 e:Buildings 2024-03-31 00297731 e:Buildings 2023-03-31 00297731 e:Buildings e:OwnedOrFreeholdAssets 2023-04-01 2024-03-31 00297731 e:PlantMachinery 2023-04-01 2024-03-31 00297731 e:PlantMachinery 2024-03-31 00297731 e:PlantMachinery 2023-03-31 00297731 e:PlantMachinery e:OwnedOrFreeholdAssets 2023-04-01 2024-03-31 00297731 e:MotorVehicles 2023-04-01 2024-03-31 00297731 e:MotorVehicles 2024-03-31 00297731 e:MotorVehicles 2023-03-31 00297731 e:MotorVehicles e:OwnedOrFreeholdAssets 2023-04-01 2024-03-31 00297731 e:OfficeEquipment 2023-04-01 2024-03-31 00297731 e:OfficeEquipment 2024-03-31 00297731 e:OfficeEquipment 2023-03-31 00297731 e:OfficeEquipment e:OwnedOrFreeholdAssets 2023-04-01 2024-03-31 00297731 e:ComputerEquipment 2023-04-01 2024-03-31 00297731 e:ComputerEquipment 2024-03-31 00297731 e:ComputerEquipment 2023-03-31 00297731 e:ComputerEquipment e:OwnedOrFreeholdAssets 2023-04-01 2024-03-31 00297731 e:OwnedOrFreeholdAssets 2023-04-01 2024-03-31 00297731 e:CurrentFinancialInstruments 2024-03-31 00297731 e:CurrentFinancialInstruments 2023-03-31 00297731 e:CurrentFinancialInstruments e:WithinOneYear 2024-03-31 00297731 e:CurrentFinancialInstruments e:WithinOneYear 2023-03-31 00297731 f:UnitedKingdom 2023-04-01 2024-03-31 00297731 f:UnitedKingdom 2022-04-01 2023-03-31 00297731 f:RestEuropeOutsideUK 2023-04-01 2024-03-31 00297731 f:RestEuropeOutsideUK 2022-04-01 2023-03-31 00297731 f:RestWorldOutsideUK 2023-04-01 2024-03-31 00297731 f:RestWorldOutsideUK 2022-04-01 2023-03-31 00297731 e:UKTax 2023-04-01 2024-03-31 00297731 e:UKTax 2022-04-01 2023-03-31 00297731 e:ShareCapital 2024-03-31 00297731 e:ShareCapital 2023-03-31 00297731 e:ShareCapital 2022-04-01 00297731 e:SharePremium 2024-03-31 00297731 e:SharePremium 2022-04-01 2023-03-31 00297731 e:SharePremium 2023-03-31 00297731 e:SharePremium 2022-04-01 00297731 e:SharePremium 1 2022-04-01 2023-03-31 00297731 e:CapitalRedemptionReserve 2023-04-01 2024-03-31 00297731 e:CapitalRedemptionReserve 2024-03-31 00297731 e:CapitalRedemptionReserve 2022-04-01 2023-03-31 00297731 e:CapitalRedemptionReserve 2023-03-31 00297731 e:CapitalRedemptionReserve 2022-04-01 00297731 e:CapitalRedemptionReserve 1 2022-04-01 2023-03-31 00297731 e:ForeignCurrencyTranslationReserve 2024-03-31 00297731 e:ForeignCurrencyTranslationReserve 2023-03-31 00297731 e:ForeignCurrencyTranslationReserve 2022-04-01 00297731 e:ForeignCurrencyTranslationReserve 1 2022-04-01 2023-03-31 00297731 e:OtherMiscellaneousReserve 2023-04-01 2024-03-31 00297731 e:OtherMiscellaneousReserve 2024-03-31 00297731 e:OtherMiscellaneousReserve 2022-04-01 2023-03-31 00297731 e:OtherMiscellaneousReserve 2023-03-31 00297731 e:OtherMiscellaneousReserve 2022-04-01 00297731 e:OtherMiscellaneousReserve 1 2022-04-01 2023-03-31 00297731 e:RetainedEarningsAccumulatedLosses 2023-04-01 2024-03-31 00297731 e:RetainedEarningsAccumulatedLosses 2024-03-31 00297731 e:RetainedEarningsAccumulatedLosses 2022-04-01 2023-03-31 00297731 e:RetainedEarningsAccumulatedLosses 2023-03-31 00297731 e:RetainedEarningsAccumulatedLosses 2022-04-01 00297731 e:FinancialAssetsAmortisedCost 2024-03-31 00297731 e:FinancialAssetsAmortisedCost 2023-03-31 00297731 e:FinancialLiabilitiesAmortisedCost 2024-03-31 00297731 e:FinancialLiabilitiesAmortisedCost 2023-03-31 00297731 d:OrdinaryShareClass1 2023-04-01 2024-03-31 00297731 d:OrdinaryShareClass1 2024-03-31 00297731 d:FRS102 2023-04-01 2024-03-31 00297731 d:Audited 2023-04-01 2024-03-31 00297731 d:FullAccounts 2023-04-01 2024-03-31 00297731 d:PrivateLimitedCompanyLtd 2023-04-01 2024-03-31 00297731 e:WithinOneYear 2024-03-31 00297731 e:WithinOneYear 2023-03-31 00297731 e:BetweenOneFiveYears 2024-03-31 00297731 e:BetweenOneFiveYears 2023-03-31 00297731 e:MoreThanFiveYears 2024-03-31 00297731 e:MoreThanFiveYears 2023-03-31 00297731 e:AcceleratedTaxDepreciationDeferredTax 2024-03-31 00297731 e:AcceleratedTaxDepreciationDeferredTax 2023-03-31 00297731 e:RetirementBenefitObligationsDeferredTax 2024-03-31 00297731 e:RetirementBenefitObligationsDeferredTax 2023-03-31 00297731 2 2023-04-01 2024-03-31 00297731 4 2023-04-01 2024-03-31 00297731 8 2023-04-01 2024-03-31 00297731 g:PoundSterling 2023-04-01 2024-03-31 xbrli:shares iso4217:GBP xbrli:pure

Registered number: 00297731










KILFROST LIMITED










ANNUAL REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2024

 
KILFROST LIMITED
 
 
COMPANY INFORMATION


Directors
Mr G Lydiate 
Miss J L Halbert (appointed 14 August 2023)




Registered number
00297731



Registered office
Albion Works

Haltwhistle

Northumberland

NE49 0HJ




Independent auditors
Ryecroft Glenton
Chartered Accountants & Statutory Auditor

32 Portland Terrace

Newcastle upon Tyne

NE2 1QP




Bankers
Nat West Bank plc

16 Northumberland Street

Newcastle upon Tyne

NE1 7EL




Solicitors
Womble Bond Dickinson (UK) LLP
The Spark

Draymans Way

Newcastle upon Tyne

NE4 5DE





 
KILFROST LIMITED
 

CONTENTS



Page
Strategic Report
 
1 - 2
Directors' Report
 
3 - 4
Independent Auditors' Report
 
5 - 8
Statement of Comprehensive Income
 
9
Balance Sheet
 
10 - 11
Statement of Changes in Equity
 
12
Notes to the Financial Statements
 
13 - 33

 
KILFROST LIMITED
 
 
STRATEGIC REPORT
FOR THE YEAR ENDED 31 MARCH 2024

Introduction
 
Kilfrost has entered its 92nd year as a chemical company. Its legacy in Aircraft De-icing Fluids (ADF) is the foundation which all new products are based on. As such it continues to lead the way in product development. Its Speciality Fluids (SFD) continues to make inroads into the Market. 

Business review
 
The past 12 months we noted for an average winter. This meant lower, than average, use of ADF. At the same time the cost of our major raw material (MPG) remained consistant. However, due our contractual pricing mechanisms we remained profitable.
In SFD we continued to make further inroads into Scandinavia which is becoming a core market. For the USA we continue to move ahead but further work needs to be done on Sales and Marketing.
In summary Kilfrost had a sound trading year and is in a strong position for the next phase of growth. 

Principal risks and uncertainties
 
The principal risks and uncertainties facing the Company are broadly grouped as market, competitive, legislative and financial risk.
-  Market risks
The market for our ADF products is highly seasonal and significantly variable, depending on weather conditions. We aim to mitigate this risk going forward through further continuing development and growth in our Speciality Fluids Division.
-  Competitive risks
The Company operates in a global market and services customers either directly or by way of licence agreements in more than 50 countries. These customers select suppliers and products based on a combination of factors including price, delivery, quality and reputation. The Company has a wide range of customers with no individual customer accounting for a significant proportion of the entire business with many customers having dealt with the Company for a number of decades. The Kilfrost brand is well respected in the global marketplace and viewed as a leader in its field. However, our main market is the UK where we account for a large percentage of that space.
-  Legislative risks
The Company is governed by a wide range of legislation, particularly in the supply of fluids to the aircraft industry. The Company takes great care to keep up to date with all new initiatives to ensure that it can maintain its position at the forefront of the industry. 
 
Page 1

 
KILFROST LIMITED
 

STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024


-  Financial risks
The Company's main areas of financial risks are credit, foreign currency and liquidity risks.
The Company's policy is to minimise credit risk by ensuring that credit terms are only granted to customers who demonstrate an appropriate history and credit position. Credit insurance is held with Atradius.
The Company manages foreign currency risk through transacting business in only three currencies, namely Sterling, Euro and US Dollars. Each currency is managed by matching income and expenditure whenever possible.
Liquidity risk is the risk that an entity will encounter difficulty in meeting obligations associated with financial liabilities. The Company aims to mitigate liquidity risk by managing cash generation from its activities on a regular basis, utilising appropriate credit facilities for working capital and longer-term investments.
Our Speciality Fluids products are going into a steady mature market dominated by a few key players. Our aim is to show a new innovative way of servicing this market by showing better performance and safety without compromise on either.
Financially the business has sufficient liquidity to cover at least the next 12 months trading after the accounts are finalised. 

Financial key performance indicators
 
The Company's key financial performance indicators for the year were:



2024
2023
£'000
£'000
Turnover

15,376

25,515
 
Operating profit

3,752

4,252
 
Profit / (loss) for the year after taxation

2,323

2,785
 
Shareholders' funds

7,217

6,367
 


This report was approved by the board on 8 November 2024 and signed on its behalf.






Mr G Lydiate
Director
Page 2

 
KILFROST LIMITED
 
 
 
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 MARCH 2024

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

Principal activity

The Company's principal activity during the period was that of the manufacture of anti-icing and de-icing fluids, predominantly for the aircraft market.

Results and dividends

The profit for the year, after taxation, amounted to £2,323,000 (2023 - £2,785,000).

Directors

The directors who served during the year were:

Mr G Lydiate 
Miss J L Halbert (appointed 14 August 2023)

Directors' responsibilities statement

The directors are responsible for preparing the Strategic Report, the Directors' 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 applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland'. Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the Company and of the profit or loss of the Company for that period.

 In preparing these financial statements, the directors are required to:


select suitable accounting policies for the Company's financial statements and then apply them consistently;

make judgments and accounting estimates that are reasonable and prudent;

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

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the Company's transactions and disclose with reasonable accuracy at any time the financial position of the Company and to enable them to ensure that the financial statements comply with the Companies Act 2006They 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.

Environmental matters

The Company will seek to minimise adverse impacts on the environment from its activities, whilst continuing to address health, safety and economic issues. The Company has complied with all applicable legislation and regulations.

Future developments

The business will continue to look at how to further diversify over the coming years. 

Page 3

 
KILFROST LIMITED
 
 
 
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024

Research and development activities

The R&D team continue to invest in research and development activities in respect of both SFD and ADF with patents currently being applied for. Costs charged during the year amounted to £307,000 (2023 : £329,000).

Going concern

The director has performed an assessment of the Company’s ability to continue trading as a going concern by reference to trading forecasts and financing requirements for a period, in excess of 15 months from the date of approval of these financial statements. The director is satisfied that the going concern basis of preparation for these financial statements is appropriate.
In assessing the Company’s ability to continue trading as a going concern for the next 15 months the director has examined all of the potential uncertainties which surround the business and the only significant uncertainty is the weather. This uncertainty is mitigated by the present structure of the business.
The director has considered these uncertainties and believes that there is sufficient financial headroom available for the forthcoming 15 months to mitigate the associated risks.
The direction of the business is set with a combination of continued R&D activity, ADF activity in the British Isles and invigorated activities in the Speciality Fluids Division. 

Disclosure of information to auditors

Each of the persons who are directors at the time when this Directors' Report is approved has confirmed that:
 
so far as the director is aware, there is no relevant audit information of which the Company's auditors are unaware, and

the director has taken all the steps that ought to have been taken as a director in order to be aware of any relevant audit information and to establish that the Company's auditors are aware of that information.

Post balance sheet events

The Kilfrost Limited Retirement Benefits Scheme (The Pension Scheme) was subject to a by-in by Just. This ended any further financial commitment to the scheme. The 'buyout' process is now underway and next years report will reflect this in the Balance Sheet.

Auditors

The auditorsRyecroft Glentonwill be proposed for reappointment in accordance with section 485 of the Companies Act 2006.

This report was approved by the board on 8 November 2024 and signed on its behalf.
 





Mr G Lydiate
Director

Page 4

 
KILFROST LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF KILFROST LIMITED
 

Opinion


We have audited the financial statements of Kilfrost Limited (the 'Company') for the year ended 31 March 2024, which comprise the Statement of Comprehensive Income, the Balance Sheet, the Statement of Changes in Equity and the related notes, including a summary of significant accounting policiesThe 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 Company's affairs as at 31 March 2024 and of its profit for the year then ended;
have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
have been prepared in accordance with the requirements of the Companies Act 2006.


Basis for opinion


We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' 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 United Kingdom, including the Financial Reporting Council's Ethical Standard and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.


Conclusions relating to going concern


In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.


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


Page 5

 
KILFROST LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF KILFROST LIMITED (CONTINUED)


Other information


The other information comprises the information included in the Annual Report other than the financial statements and our Auditors' Report thereon. The directors are responsible for the other information contained within the Annual ReportOur 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.


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


adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
the financial statements are not in agreement with the accounting records and returns; or
certain disclosures of directors' remuneration specified by law are not made; or
we have not received all the information and explanations we require for our audit.


Responsibilities of directors
 

As explained more fully in the Directors' Responsibilities Statement set out on page 3, 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.


Page 6

 
KILFROST LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF KILFROST LIMITED (CONTINUED)


Auditors' 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 Auditors' 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 the audit was considered capable of detecting irregularities including fraud
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

• the responsible individual ensured that the engagement team collectively had the appropriate                                competence, capabilities and skills to identify or recognise non-compliance with applicable laws and    regulations;
• we identified the laws and regulations applicable to the Company through discussions with directors and   other management, and from our commercial knowledge and experience of the sector in which the    company operates;
• we focused on specific laws and regulations which we considered may have a direct material effect on    the financial statements or the operations of the Company, including the Companies Act 2006 and    taxation legislation;
• we assessed the extent of compliance with the laws and regulations identified above through making    enquiries of management and inspecting legal correspondence (if relevant); and
• we ensured that the identified laws and regulations were communicated within the audit team regularly    and the team remained alert to instances of non-compliance throughout the audit. 
We assessed the susceptibility of the Company's financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by:  
• making enquiries of management as to where they considered there was susceptibility to fraud and      their knowledge of actual, suspected and alleged fraud; and
• considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and    regulations.
To address the risk of fraud through management bias and override of controls, we:  
• performed analytical procedures to identify any unusual or unexpected relationships;
• tested journal entries to identify unusual transactions; and
• assessed whether judgements and assumptions made in determining the accounting estimates were    indicative of potential bias. 
 
Page 7

 
KILFROST LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF KILFROST LIMITED (CONTINUED)



In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to:  
• agreeing financial statement disclosures to underlying supporting documentation;
• reading the minutes of meetings of those charged with governance;
• enquiring of management as to actual and potential litigation and claims; and
• reviewing correspondence with HMRC, and the Company’s legal advisers where available.
There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the directors and other management and the inspection of regulatory and legal correspondence, if any. 
Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion. 


A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our Auditors' Report.


Use of our report
 

This report is made solely to the Company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006Our audit work has been undertaken so that we might state to the Company's members those matters we are required to state to them in an Auditors' Report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the Company and the Company's members, as a body, for our audit work, for this report, or for the opinions we have formed.





Jon Routledge (Senior Statutory Auditor)
  
for and on behalf of
Ryecroft Glenton
 
Chartered Accountants
Statutory Auditor
  
32 Portland Terrace
Newcastle upon Tyne
NE2 1QP

8 November 2024
Page 8

 
KILFROST LIMITED
 
 
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 MARCH 2024

2024
2023
Note
£000
£000

  

Turnover
 4 
15,376
25,515

Cost of sales
  
(9,654)
(19,184)

Gross profit
  
5,722
6,331

Administrative expenses
  
(2,790)
(2,987)

Other operating income
 5 
820
908

Operating profit
 6 
3,752
4,252

Exceptional items : provision against group intercompany loans
 10 
(766)
(903)

Interest receivable and similar income
 11 
49
-

Interest payable and similar expenses
 12 
(36)
(53)

Profit before tax
  
2,999
3,296

Tax on profit
 13 
(676)
(511)

Profit for the financial year
  
2,323
2,785

Other comprehensive income for the year
  

Actuarial gains on defined benefit pension scheme
 25 
27
386

Other comprehensive income for the year
  
27
386

Total comprehensive income for the year
  
2,350
3,171

There were no recognised gains and losses for 2024 or 2023 other than those included in the statement of comprehensive income.

The notes on pages 13 to 33 form part of these financial statements.

Page 9

 
KILFROST LIMITED
REGISTERED NUMBER: 00297731

BALANCE SHEET
AS AT 31 MARCH 2024

2024
2023
Note
£000
£000

Fixed assets
  

Tangible assets
 15 
853
712

  
853
712

Current assets
  

Stocks
 16 
3,083
2,394

Debtors: amounts falling due within one year
 17 
2,486
5,239

Cash at bank and in hand
 18 
4,614
4,467

  
10,183
12,100

Creditors: amounts falling due within one year
 19 
(3,886)
(6,153)

Net current assets
  
 
 
6,297
 
 
5,947

Total assets less current liabilities
  
7,150
6,659

Provisions for liabilities
  

Deferred tax
 21 
(153)
-

  
 
 
(153)
 
 
-

Pension asset / (liability)
  
220
(292)

Net assets
  
7,217
6,367


Capital and reserves
  

Called up share capital 
 22 
19
19

Capital redemption reserve
 23 
29
29

Other reserves
 23 
1
1

Profit and loss account
 23 
7,168
6,318

  
7,217
6,367


Page 10

 
KILFROST LIMITED
REGISTERED NUMBER: 00297731
    
BALANCE SHEET (CONTINUED)
AS AT 31 MARCH 2024

The financial statements were approved and authorised for issue by the board and were signed on its behalf on 8 November 2024.




Mr G Lydiate
Director

The notes on pages 13 to 33 form part of these financial statements.

Page 11
 

 
KILFROST LIMITED


 

STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 MARCH 2024



Called up share capital
Share premium account
Capital redemption reserve
Capital contribution
Other reserves
Profit and loss account
Total equity


£000
£000
£000
£000
£000
£000
£000



At 1 April 2022
19
921
29
1,508
1
718
3,196





Profit for the year
-
-
-
-
-
2,785
2,785


Actuarial gains on pension scheme
-
-
-
-
-
386
386


Transfer to/from profit and loss account
-
-
-
-
-
2,429
2,429


Transfer between other reserves
-
(921)
-
(1,508)
-
-
(2,429)





At 1 April 2023
19
-
29
-
1
6,318
6,367





Profit for the year
-
-
-
-
-
2,323
2,323


Actuarial gains on pension scheme
-
-
-
-
-
27
27



Contributions by and distributions to owners


Dividends: Equity capital
-
-
-
-
-
(1,500)
(1,500)



At 31 March 2024
19
-
29
-
1
7,168
7,217



The notes on pages 13 to 33 form part of these financial statements.

Page 12
 
KILFROST LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024

1.


General information

The Company is a private limited company, which is incorporated and registered in England (no. 00297731). The address of the registered office is Albion Works, Haltwhistle, Northumberland, NE49 0HJ. The principal activity of the Company during the period was that of the manufacture of anti-icing and de-icing fluids, predominantly for the aircraft market.

2.Accounting policies

 
2.1

Basis of preparation of financial statements

The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and the Companies Act 2006.

The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires management to exercise judgment in applying the Company's accounting policies (see note 3).

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 £'000.

The following principal accounting policies have been applied:

 
2.2

Financial Reporting Standard 102 - reduced disclosure exemptions

The Company has taken advantage of the following disclosure exemptions in preparing these financial statements, as permitted by the FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland":
the requirements of Section 7 Statement of Cash Flows;
the requirements of Section 3 Financial Statement Presentation paragraph 3.17(d);
the requirements of Section 33 Related Party Disclosures paragraph 33.7.

This information is included in the consolidated financial statements of Kilfrost Group Limited as at 31 March 2024 and these financial statements may be obtained from Companies House, Cardiff.

Page 13

 
KILFROST LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024

2.Accounting policies (continued)

 
2.3

Going concern

The Company financial statements are prepared on a going concern basis.
The directors have performed an assessment of the Company’s ability to continue trading as a going concern by reference to trading forecasts and financing requirements for a period, in excess of 15 months from the date of approval of these financial statements. The directors are satisfied that the going concern basis of preparation for these financial statements is appropriate.
In assessing the Company’s ability to continue trading as a going concern for the next 15 months the directors have examined all of the potential uncertainties which surround the business and the only significant uncertainty is the weather. This uncertainty is mitigated by the present structure of the business.
The directors have considered these uncertainties and believes that there is sufficient financial headroom available for the forthcoming 15 months to mitigate the associated risks.
The direction of the business is set with a combination of continued R&D activity, ADF activity in the British Isles and invigorated activities in the Speciality Fluids Division. 

 
2.4

Revenue

Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Company and the revenue can be reliably measured. Revenue is measured as the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. The following criteria must also be met before revenue is recognised:

Sale of goods

Revenue from the sale of goods is recognised when all of the following conditions are satisfied:
the Company has transferred the significant risks and rewards of ownership to the buyer;
the Company retains neither continuing managerial involvement to the degree usually associated with ownership nor effective control over the goods sold;
the amount of revenue can be measured reliably;
it is probable that the Company will receive the consideration due under the transaction; and
the costs incurred or to be incurred in respect of the transaction can be measured reliably.

Rendering of services

Revenue from a contract to provide services is recognised in the period in which the services are provided in accordance with the stage of completion of the contract when all of the following conditions are satisfied:
the amount of revenue can be measured reliably;
it is probable that the Company will receive the consideration due under the contract;
the stage of completion of the contract at the end of the reporting period can be measured reliably; and
the costs incurred and the costs to complete the contract can be measured reliably.

Page 14

 
KILFROST LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024

2.Accounting policies (continued)

 
2.5

Tangible fixed assets

Tangible fixed assets under the cost model are stated at historical cost less accumulated depreciation and any accumulated impairment losses. Historical cost includes expenditure that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management.

Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, using the straight-line method.

Depreciation is provided on the following basis:

Freehold property
-
2% straight line basis
Plant and machinery
-
5-35% straight line basis
Computer equipment
-
33% straight line basis

The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.

Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in profit or loss.

 
2.6

Stocks

Stocks are stated at the lower of cost and net realisable value, being the estimated selling price less costs to complete and sell. Cost is based on the cost of purchase on a first in, first out basis. Work in progress and finished goods include labour and attributable overheads.
At each Balance Sheet date, 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 impairment loss is recognised immediately in profit or loss.

 
2.7

Debtors

Short-term debtors are measured at transaction price, less any impairment. Loans receivable are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method, less any impairment.

 
2.8

Cash and cash equivalents

Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours. Cash equivalents are highly liquid investments that mature in no more than three months from the date of acquisition and that are readily convertible to known amounts of cash with insignificant risk of change in value.

Page 15

 
KILFROST LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024

2.Accounting policies (continued)

 
2.9

Financial instruments

The Company only enters into basic financial instruments transactions that result in the recognition of financial assets and liabilities such as trade and other debtors and creditors and loans from related parties.
Debt instruments (other than those wholly repayable or receivable within one year), including accounts receivable and payable, are initially measured at present value of the future cash flows and subsequently at amortised cost using the effective interest method. Debt instruments that are payable or receivable within one year, typically trade debtors and creditors, are measured, initially and subsequently, at the undiscounted amount of the cash or other consideration expected to be paid or received.
Financial assets that are measured at cost and amortised cost are assessed at the end of each reporting period for objective evidence of impairment. If objective evidence of impairment is found, an impairment loss is recognised in the Statement of Comprehensive Income.
For financial assets measured at amortised cost, the impairment loss is measured as the difference between an asset's carrying amount and the present value of estimated cash flows discounted at the asset's original effective interest rate.
For financial assets measured at cost less impairment, the impairment loss is measured as the difference between an asset's carrying amount and best estimate, which is an approximation of the amount that the Company would receive for the asset if it were to be sold at the balance sheet date.
Financial assets and liabilities are offset and the net amount reported in the Balance Sheet when there is an 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.

 
2.10

Creditors

Short-term creditors are measured at the transaction price. Other financial liabilities, including bank loans, are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method.

 
2.11

Government grants

Grants are accounted under the accruals model as permitted by FRS 102. Grants relating to expenditure on tangible fixed assets are credited to profit or loss at the same rate as the depreciation on the assets to which the grant relates. The deferred element of grants is included in creditors as deferred income.
Grants of a revenue nature are recognised in the Statement of Comprehensive Income in the same period as the related expenditure.

Page 16

 
KILFROST LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024

2.Accounting policies (continued)

 
2.12

Foreign currency translation

Functional and presentation currency

The Company's functional and presentational currency is GBP.

Transactions and balances

Foreign currency transactions are translated into the functional currency using the spot exchange rates at the dates of the transactions.

At each period end foreign currency monetary items are translated using the closing rate. Non-monetary items measured at historical cost are translated using the exchange rate at the date of the transaction and non-monetary items measured at fair value are measured using the exchange rate when fair value was determined.

 
2.13

Finance costs

Finance costs are charged to profit or loss over the term of the debt using the effective interest method so that the amount charged is at a constant rate on the carrying amount. Issue costs are initially recognised as a reduction in the proceeds of the associated capital instrument.

 
2.14

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.

 
2.15

Operating leases: the Company as lessee

Rentals paid under operating leases are charged to profit or loss on a straight-line basis over the lease term.

The Company has taken advantage of the optional exemption available on transition to FRS 102 which allows lease incentives on leases entered into before the date of transition to the standard 01 October 2013 to continue to be charged over the period to the first market rent review rather than the term of the lease.

Page 17

 
KILFROST LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024

2.Accounting policies (continued)

  
2.16

Pensions

Defined contribution pension plan
The Company operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the Company pays fixed contributions into a separate entity. Once the contributions have been paid the Company has no further payment obligations.
The contributions are recognised as an expense in the Statement of Comprehensive Income when they fall due. Amounts not paid are shown in accruals as a liability in the Balance Sheet. The assets of the plan are held separately from the Company in independently administered funds.
Defined benefit pension plan
The Company operates a defined benefit plan for certain employees. A defined benefit plan defines the pension benefit that the employee will receive on retirement, usually dependent upon several factors including but not limited to age, length of service and remuneration. A defined benefit plan is a pension plan that is not a defined contribution plan.
The asset/liability recognised in the Balance Sheet in respect of the defined benefit plan is the present value of the defined benefit obligation at the end of the Balance Sheet date less the fair value of plan assets at the Balance Sheet date (if any) out of which the obligations are to be settled.
The defined benefit obligation is calculated using the projected unit credit method. Annually the Company engages independent actuaries to calculate the obligation. The present value is determined by discounting the estimated future payments using market yields on high quality corporate bonds that are denominated in sterling and that have terms approximating to the estimated period of the future payments ('discount rate').
The fair value of plan assets is measured in accordance with the FRS 102 fair value hierarchy and in accordance with the Company's policy for similarly held assets. This includes the use of appropriate valuation techniques.
Actuarial gains and losses arising from experience adjustments and changes in actuarial assumptions are charged or credited to other comprehensive income. These amounts together with the return on plan assets, less amounts included in net interest, are disclosed as 'Remeasurement of net defined benefit liability'.
The cost of the defined benefit plan, recognised in profit or loss as employee costs, except where included in the cost of an asset, comprises:
a) the increase in net pension benefit liability arising from employee service during the period; and
b) the cost of plan introductions, benefit changes, curtailments and settlements.
The net interest cost is calculated by applying the discount rate to the net balance of the defined benefit obligation and the fair value of plan assets. This cost is recognised in profit or loss as a 'finance expense'.

Page 18

 
KILFROST LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024

2.Accounting policies (continued)

 
2.17

Onerous leases

Where the unavoidable costs of a lease exceed the economic benefit expected to be received from it, a provision is made for the present value of the obligations under the lease.

 
2.18

Interest income

Interest income is recognised in profit or loss using the effective interest method.

 
2.19

Borrowing costs

All borrowing costs are recognised in profit or loss in the year in which they are incurred.

 
2.20

Provisions for liabilities

Provisions are recognised when an event has taken place that gives rise to a legal or constructive obligation, a transfer of economic benefits is probable and a reliable estimate can be made.
Provisions are measured as the best estimate of the amount required to settle the obligation, taking into account the related risks and uncertainties.
 
Increases in provisions are generally charged as an expense to profit or loss.

 
2.21

Current and deferred taxation

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

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

Deferred tax balances are recognised in respect of all timing differences that have originated but not reversed by the balance sheet date, except that:
The recognition of deferred tax assets is limited to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits; and
Any deferred tax balances are reversed if and when all conditions for retaining associated tax allowances have been met.

Deferred tax balances are not recognised in respect of permanent differences except in respect of business combinations, when deferred tax is recognised on the differences between the fair values of assets acquired and the future tax deductions available for them and the differences between the fair values of liabilities acquired and the amount that will be assessed for tax. Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the balance sheet date.

Page 19

 
KILFROST LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024

2.Accounting policies (continued)

 
2.22

Exceptional items

Exceptional items are transactions that fall within the ordinary activities of the Company but are presented separately due to their size or incidence.

 
2.23

Research and development

In the research phase of an internal project it is not possible to demonstrate that the project will generate future economic benefits and hence all expenditure on research shall be recognised as an expense when it is incurred. Intangible assets are recognised from the development phase of a project if and only if certain specific criteria are met in order to demonstrate the asset will generate probable future economic benefits and that its cost can be reliably measured. The capitalised development costs are subsequently amortised on a straight-line basis over their useful economic lives, which range from 3 to 6 years.
If it is not possible to distinguish between the research phase and the development phase of an internal project, the expenditure is treated as if it were all incurred in the research phase only.


3.


Judgements in applying accounting policies and key sources of estimation uncertainty

Significant judgements are required in relation to the assumptions for the valuation of the pension scheme surplus or deficit including discount rates, interest rates, mortality rates, and inflation. The directors receive independent external advice from actuarial consultants in arriving at the scheme assumptions which are outlined in Note 25 of the financial statements. 


4.


Turnover

The whole of the turnover is attributable to net invoiced sales of goods excluding value added tax and relates to the continuing principal activity of the Company. An analysis of turnover by geographical market is given below:

Analysis of turnover by country of destination:

2024
2023
£000
£000

United Kingdom
11,244
19,258

Rest of Europe
3,594
5,545

Rest of the world
538
712

15,376
25,515


Page 20

 
KILFROST LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024

5.


Other operating income

2024
2023
£000
£000

Royalty receivable
820
908

820
908



6.


Operating profit

The operating profit is stated after charging:

2024
2023
£000
£000

Exchange differences
(16)
73

Other operating lease rentals
2
2


7.


Auditors' remuneration

During the year, the Company obtained the following services from the Company's auditors:


2024
2023
£000
£000

Fees payable to the Company's auditors for the audit of the Company's financial statements
18
17

The Company has taken advantage of the exemption not to disclose amounts paid for non-audit services as these are disclosed in the consolidated accounts of the parent Company.

Page 21

 
KILFROST LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024

8.


Employees

Staff costs were as follows:


2024
2023
£000
£000

Wages and salaries
1,242
1,122

Social security costs
131
126

Cost of defined contribution scheme
125
431

1,498
1,679


The average monthly number of employees, including the directors, during the year was as follows:


        2024
        2023
            No.
            No.







Production
13
13



Research and development
7
7



Sales and administration
10
9

30
29


9.


Directors' remuneration

The directors of the Company who served during the year were also directors of the holding company and fellow subsidiaries. The directors received total remuneration for the year of £499,000 (2023 : £386,000). The directors do not believe that it is practicable to apportion this amount between services as directors of the Company and where applicable, the services as directors of the holding and fellow subsidiary companies.




The highest paid director received remuneration of £397,000 (2023 - £386,000).


10.


Exceptional items

2024
2023
£000
£000

Provision against group intercompany loan - Kilfrost Group Limited
766
903





Page 22

 
KILFROST LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024

11.


Interest receivable

2024
2023
£000
£000


Other interest receivable
49
-

49
-


12.


Interest payable and similar expenses

2024
2023
£000
£000


Bank interest payable
6
5

Other interest payable
30
48

36
53


13.


Taxation


2024
2023
£000
£000

Corporation tax


Current tax on profits for the year
481
547

Adjustments in respect of previous periods
35
-


516
547


Total current tax
516
547

Deferred tax


Origination and reversal of timing differences
160
(36)

Total deferred tax
160
(36)


Taxation on profit on ordinary activities
676
511
Page 23

 
KILFROST LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024
 
13.Taxation (continued)


Factors affecting tax charge for the year

The tax assessed for the year is lower than (2023 - lower than) the standard rate of corporation tax in the UK of 25% (2023 - 19%). The differences are explained below:

2024
2023
£000
£000


Profit on ordinary activities before tax
2,999
3,296


Profit on ordinary activities multiplied by standard rate of corporation tax in the UK of 25% (2023 - 19%)
750
626

Effects of:


Expenses not deductible for tax purposes, other than goodwill amortisation and impairment
192
174

Capital allowances for year in excess of depreciation
-
(1)

Adjustments to tax charge in respect of prior periods
35
-

Increase or decrease in pension fund prepayment leading to an increase (decrease) in tax
-
13

Other timing differences leading to an increase (decrease) in taxation
-
(9)

Adjustment in research and development tax credit leading to an increase (decrease) in the tax charge
(66)
(117)

Other differences leading to an increase (decrease) in the tax charge
(2)
3

Group relief
-
(10)

Transfer pricing adjustments
(233)
(168)

Total tax charge for the year
676
511


Factors that may affect future tax charges

There were no factors that may affect future tax charges.


14.


Dividends

2024
2023
£000
£000


Dividends
1,500
-

1,500
-
Page 24
 


 
KILFROST LIMITED


 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024


15.


Tangible fixed assets






Freehold property
Plant and machinery
Motor vehicles
Office equipment
Computer equipment
Total

£000
£000
£000
£000
£000
£000



Cost


At 1 April 2023
1,041
2,399
-
52
100
3,592


Additions
-
158
42
10
-
210



At 31 March 2024

1,041
2,557
42
62
100
3,802



Depreciation


At 1 April 2023
379
2,356
-
45
100
2,880


Charge for the year on owned assets
20
39
5
5
-
69



At 31 March 2024

399
2,395
5
50
100
2,949



Net book value



At 31 March 2024
642
162
37
12
-
853



At 31 March 2023
662
43
-
7
-
712

Page 25
 
KILFROST LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024

16.


Stocks

2024
2023
£000
£000

Raw materials and consumables
2,460
1,765

Finished goods and goods for resale
623
629

3,083
2,394



17.


Debtors

2024
2023
£000
£000


Trade debtors excluding factored debts
78
279

Factored debts
1,998
4,388

Other debtors
250
411

Prepayments and accrued income
160
154

Deferred taxation
-
7

2,486
5,239






Proceeds of factored debts and stock financing was secured at the year end by way of a fixed and floating charge over certain of the Company's assets. 


18.


Cash and cash equivalents

2024
2023
£000
£000

Cash at bank and in hand
4,614
4,467

4,614
4,467


Page 26

 
KILFROST LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024

19.


Creditors: Amounts falling due within one year

2024
2023
£000
£000

Other loans
-
500

Trade creditors
968
2,057

Amounts owed to group undertakings
2,440
1,980

Corporation tax
94
182

Other taxation and social security
112
547

Other creditors
45
271

Accruals and deferred income
227
616

3,886
6,153


Included within other loans is £Nil (2023 : £500,000) being shareholder loans which are unsecured, interest free and are contractually repayable on demand. The shareholder loans are included in other loans.
Proceeds of factored debts and stock financing was secured at the year end by way of a fixed and floating charge over certain of the Company's assets. 


20.


Financial instruments

2024
2023
£000
£000

Financial assets


Financial assets that are debt instruments measured at amortised cost
2,326
5,078


Financial liabilities


Financial liabilities measured at amortised cost
(3,680)
(5,194)


Financial assets measured at amortised cost comprise trade debtors, amounts owed by group undertakings and other debtors.


Financial liabilities measured at amortised cost comprise shareholder loans, trade creditors, amounts owed to group undertakings, certain other creditors and accruals and deferred income.
Page 27

 
KILFROST LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024

21.


Deferred taxation




2024
2023


£000

£000






At beginning of year
7
(30)


Charged to profit or loss
(160)
37



At end of year
(153)
7

The deferred taxation balance is made up as follows:

2024
2023
£000
£000


Accelerated capital allowances
(185)
(146)

Pension deficit
32
153

(153)
7


22.


Share capital

2024
2023
£000
£000
Allotted, called up and fully paid



19,106 Ordinary shares of £1.00 each
19
19


Page 28

 
KILFROST LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024

23.


Reserves

Capital redemption reserve

This reserve records the nominal value of shares repurchased by the Company.

Other reserves

This reserve records the total value of capital reserves.
Capital contribution
This reserve records the total value of capital contributions made by the shareholders of the Company.
On 22 March 2023 the board approved the transfer of the realisable capital contribution reserve to the profit and loss reserve.

Profit and loss account

This reserve includes all current and prior period retained profits and losses and net of distributions to shareholders.


24.


Capital commitments


At 31 March 2024 the Company had capital commitments as follows:

2024
2023
£000
£000


Contracted for but not provided in these financial statements
240
65

240
65

Page 29

 
KILFROST LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024

25.


Pension commitments

The Company operates a Defined Benefit Pension Scheme.

The Company operates a defined benefit scheme in the UK which is now closed to future accrual and new entrants. The last full actuarial valuation of this scheme was carried out by a qualified independent actuary on 31 July 2022. The calculations below are based on the actuarial valuation as at 31 July 2022 and allowing for movements to 31 March 2024.
During the year, £146,000 was paid by the employer as agreed deficit funding (2023 : £146,000). Management contributed a further £350,000 to the scheme clearing the remaining deficit in advance of a buy-in to a insurer policy.
The directors acknowledge their responsibilities for ensuring that actuarial assumptions are suitably updated to reflect changing economic conditions and they confirm that the assumptions at 31 March 2024 have been carefully reviewed with the actuary.
The pension scheme has not invested in the Company itself.



Reconciliation of present value of plan liabilities:


2024
2023
£000
£000

Reconciliation of present value of plan liabilities


At the beginning of the year
715
1,426

Interest cost
34
40

Actuarial gains
(42)
(419)

Settlement payments from plan assets
-
(651)

Loss on settlements
-
319

At the end of the year
707
715

Page 30

 
KILFROST LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024
 
25.Pension commitments (continued)


Reconciliation of present value of plan assets:


2024
2023
£000
£000


At the beginning of the year
423
933

Interest income
23
28

Actuarial losses
(15)
(33)

Contributions
496
146

Settlement payments from plan assets
-
(651)

At the end of the year
927
423


Composition of plan assets:


2024
2023
£000
£000


Cash
836
333

Other
91
90

Total plan assets
927
423

2024
2023
£000
£000


Fair value of plan assets
927
423

Present value of plan liabilities
(707)
(715)

Net pension scheme asset / (liability)
220
(292)


The amounts recognised in profit or loss are as follows:

2024
2023
£000
£000


Interest cost
11
12

Loss on settlements
-
319

Total
11
331


Page 31

 
KILFROST LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024
 
25.Pension commitments (continued)

The Company plans to fund the Defined Benefit Pension Scheme to enable the buy-in to a insurer policy.
This will fulfil it's obligations to the scheme's beneficiaries and the Company and Trustee's responsibilities.
It is estimated that a further £552,000 will be required to conclude the buy-in transaction. 
In addition the Company will fund an estimated £365,000 to continue to meet the Trustees' expenses for actuarial and legal costs until the wind-up of the Pension scheme.




Principal actuarial assumptions at the balance sheet date (expressed as weighted averages):

2024
2023
%
%
Discount rate


4.9

4.8
 
Future salary increases


3.2

3.2
 
Future pension increases


2.5

2.5
 
Mortality rates



 
- for a male aged 65 now


20.9

21.1
 
- at 65 for a male aged 45 now


22.2

22.4
 
- for a female aged 65 now


22.7

22.9
 
- at 65 for a female member aged 45 now


24.2

24.4
 







Page 32

 
KILFROST LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024

26.


Commitments under operating leases

At 31 March 2024 the Company had future minimum lease payments due under non-cancellable operating leases for each of the following periods:

2024
2023
£000
£000


Not later than 1 year
21
22

Later than 1 year and not later than 5 years
63
74

Later than 5 years
-
10

84
106


27.


Related party transactions

The Company is a member of a group headed by Kilfrost Group Limited. Transactions with wholly owned group undertakings are not disclosed as the Company has taken advantage of the exemption available under Financial Reporting Standard 102 on the grounds that the Company is a wholly owned subsidiary of Kilfrost Group Limited.
Included within other loans is £Nil (2023 : £500,000) due to The Estate of Ms J Halbert, a former shareholder in the company's parent undertaking Kilfrost Group Limited. These amounts are unsecured, interest free and are contractually repayable on demand.
Key management personnel
The Company has elected to take advantage of the key management personnel compensation exemption under FRS 102 paragraphs 1.12(e) and 33.7.


28.


Controlling party

The Company's parent undertaking is Kilfrost Group Limited, the address of the registered office is Albion Works, Haltwhistle, Northumberland, NE49 0HJ. Kilfrost Group Limited is the parent of the only group to which Kilfrost Limited belongs and for which financial statements are drawn up. In the opinion of the directors, Kilfrost Group Limited has outright control of the Company though no individual shareholder has outright control of Kilfrost Group Limited. Copies of Kilfrost Group Limited financial statements can be obtained from Companies House, Cardiff.

 
Page 33