Acorah Software Products - Accounts Production 15.0.600 false true 31 December 2022 1 January 2022 true No description of principal activity 1 January 2023 31 December 2023 31 December 2023 02943065 Mr James Brown Mr Kevan Brown Ms Ella Brown true iso4217:GBP iso4217:EUR iso4217:USD xbrli:shares xbrli:pure xbrli:pure 02943065 2022-12-31 02943065 2023-12-31 02943065 2023-01-01 2023-12-31 02943065 frs-core:CurrentFinancialInstruments 2023-12-31 02943065 frs-core:FurnitureFittings 2023-12-31 02943065 frs-core:FurnitureFittings 2023-01-01 2023-12-31 02943065 frs-core:FurnitureFittings 2022-12-31 02943065 frs-core:NetGoodwill 2023-12-31 02943065 frs-core:NetGoodwill 2023-01-01 2023-12-31 02943065 frs-core:NetGoodwill 2022-12-31 02943065 frs-core:LandBuildings frs-core:LeasedAssetsHeldAsLessee 2023-01-01 2023-12-31 02943065 frs-core:LandBuildings frs-core:OwnedOrFreeholdAssets 2023-01-01 2023-12-31 02943065 frs-core:MotorVehicles 2023-12-31 02943065 frs-core:MotorVehicles 2023-01-01 2023-12-31 02943065 frs-core:MotorVehicles 2022-12-31 02943065 frs-core:PlantMachinery 2023-12-31 02943065 frs-core:PlantMachinery 2023-01-01 2023-12-31 02943065 frs-core:PlantMachinery 2022-12-31 02943065 frs-core:ShareCapital 2023-12-31 02943065 frs-core:RetainedEarningsAccumulatedLosses 2023-12-31 02943065 frs-bus:PrivateLimitedCompanyLtd 2023-01-01 2023-12-31 02943065 frs-bus:FullAccounts 2023-01-01 2023-12-31 02943065 frs-bus:SmallEntities 2023-01-01 2023-12-31 02943065 frs-bus:AuditExemptWithAccountantsReport 2023-01-01 2023-12-31 02943065 frs-bus:SmallCompaniesRegimeForAccounts 2023-01-01 2023-12-31 02943065 frs-bus:SmallCompaniesRegimeForDirectorsReport 2023-01-01 2023-12-31 02943065 1 2023-01-01 2023-12-31 02943065 frs-core:CostValuation 2022-12-31 02943065 frs-core:CostValuation 2023-12-31 02943065 frs-core:ProvisionsForImpairmentInvestments 2022-12-31 02943065 frs-core:ProvisionsForImpairmentInvestments 2023-12-31 02943065 frs-bus:Director1 2023-01-01 2023-12-31 02943065 frs-bus:Director2 2023-01-01 2023-12-31 02943065 frs-bus:CompanySecretary1 2023-01-01 2023-12-31 02943065 1 2023-01-01 2023-12-31 02943065 frs-core:CurrentFinancialInstruments 1 2023-12-31 02943065 frs-countries:EnglandWales 2023-01-01 2023-12-31 02943065 2021-12-31 02943065 2022-12-31 02943065 2022-01-01 2022-12-31 02943065 frs-core:CurrentFinancialInstruments 2022-12-31 02943065 frs-core:ShareCapital 2022-12-31 02943065 frs-core:RetainedEarningsAccumulatedLosses 2022-12-31 02943065 1 2022-01-01 2022-12-31 02943065 frs-core:CurrentFinancialInstruments 1 2022-12-31
Registered number: 02943065
KGB Cleaning & Support Services Limited
Directors' Report and
Financial Statements
For The Year Ended 31 December 2023
Contents
Page
Company Information 1
Directors' Report 2—3
Accountant's Report 4
Income Statement 5
Statement of Financial Position 6—7
Notes to the Financial Statements 8—11
Page 1
Company Information
Directors Mr James Brown
Mr Kevan Brown
Secretary Ms Ella Brown
Company Number 02943065
Registered Office 26 Chorley New Road
Bolton
BL1 4AP
Accountants HMA Accountants
26 Chorley New Road
Bolton
BL1 4AP
Page 1
Page 2
Directors' Report
The directors present their report and the financial statements for the year ended 31 December 2023.
Review of the Business
Turnover for the year was £1.3m (2022 - £2.3m} generating a profit of £76,087 (2022 - £168,713).
The reduction in turnover primarily relates to the termination of long term contracts which we were unable to successfully secure/re-tender due to high level of competition and reduced opportunities in the market as a result from the impact of Covid-19. However, we have maintained a very lean business model to counter these losses so our bottom line was not heavily impacted.
Principal risks and uncertainties
The director remains alert to the risks prevalent in a commercial environment and continues to take steps to minimize or mitigate these risks.
As contracts come to an end and faced with the uncertainties in the market, we have adopted strategies to reduce the risks in managing and delivering cleaning services to our clients. Our focus has remained in providing excellent services and retaining profitable clients.
Position of the company at year end
All financial performance indicators were in line with expectations and reflect the company's activities during the year.
We anticipated a reduction in turnover as long term contracts came to termination. Efforts were made throughout the year to counter these by bidding for new contracts which we have found very challenging.
Key performance indicators
The director continues to use both financial and non-financial key performance indicators to manage the business. The business maintains a strong management information function which is focussed on regular and accurate reporting. Such reporting sees particular focus on project margins and profitability.
Labour costs remain the business' highest running cost. We have developed MIS/KPI in line with the requirements of operations to have visible and up to date information for directors/managers to ensure we are in line with expectations and we benchmark ourselves with such information. Any deviations recorded prompt the business to take remedial actions where we could allocate our manpower resources effectively.
Future Developments
The business remains focussed having reorganized and reviewed its cost structure. We do not foresee a significant increase in turnover growth in 2024, reflecting the tough current economic conditions and our policy to only take on new contracts which will give us an acceptable return.
The business will be seeking other avenues to generate revenues. The business will consider the prospect of acquisition and service line diversification in maintaining growth beyond 2024.
Directors
The directors who held office during the year were as follows:
Mr James Brown
Mr Kevan Brown
 
Employment of disabled persons
Applications from disabled employees are always considered, bearing in mind the suitability of the applicant for the position concerned. Where an employee becomes disabled, the company will make every effort to retain them in their existing role.
Engagement with employees
The company's policy is to consult and discuss with employees matters likely to affect employees' interests. This seeks to achieve a common awareness on the part of all employees of the financial and economic factors affecting the company's performance.
Disclosure in the strategic report
...CONTINUED
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Directors - continued
In accordance with section 414C(11) of the Companies Act 2006 (Strategic Report and Directors' Report) Regulations 2013 the company has set out in the strategic report information required by schedule 7 of the Large and Medium-sized Companies and Groups (Accounts and Reports) Regulations 2008.
Statement of Directors' Responsibilities
The directors are responsible for preparing 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 United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing the financial statements the directors are required to: 
  • select suitable accounting policies 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 enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
The directors are responsible for the maintenance and integrity of the corporate and financial information included on the company's website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.
Small Company Rules
This report has been prepared in accordance with the special provisions relating to companies subject to the small companies regime within Part 15 of the Companies Act 2006.
On behalf of the board
Mr James Brown
Director
19/11/2024
Page 3
Page 4
Accountant's Report
In accordance with the engagement letter dated 21 June 2022, and in order to assist you to fulfil your duties under the Companies Act 2006, we have compiled the financial statements of the company from the accounting records and information and explanations you have given to us.
This report is made to the directors in accordance with the terms of our engagement. Our work has been undertaken to prepare for approval by the directors the financial statements that we have been engaged to compile, to report to the directors that we have done so, and to state those matters that we have agreed to state to them in this 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 directors for our work or for this report.
You have acknowledged on the statement of financial position as at year ended 31 December 2023 your duty to ensure that the company has kept proper accounting records and to prepare financial statements that give a true and fair view under the Companies Act 2006. You consider that the company is exempt from the statutory requirement for an audit for the year.
We have not been instructed to carry out an audit of the financial statements. For this reason, we have not verified the accuracy or completeness of the accounting records or information and explanations you have given to us and we do not, therefore, express any opinion on the financial statements.
Signed
19/11/2024
HMA Accountants
26 Chorley New Road
Bolton
BL1 4AP
Page 4
Page 5
Income Statement
2023 2022
Notes £ £
TURNOVER 1,337,247 2,300,235
Cost of sales (884,132 ) (1,700,794 )
GROSS PROFIT 453,115 599,441
Administrative expenses (362,554 ) (465,166 )
Other operating income - 60,000
OPERATING PROFIT 90,561 194,275
Interest payable and similar charges 4 (14,474 ) (25,562 )
PROFIT FOR THE FINANCIAL YEAR 76,087 168,713
The notes on pages 8 to 11 form part of these financial statements.
Page 5
Page 6
Statement of Financial Position
2023 2022
Notes £ £ £ £
FIXED ASSETS
Investments 7 3 3
3 3
CURRENT ASSETS
Debtors 8 3,961,503 3,960,203
Cash at bank and in hand 16,981 5,310
3,978,484 3,965,513
Creditors: Amounts Falling Due Within One Year 9 (335,906 ) (399,022 )
NET CURRENT ASSETS (LIABILITIES) 3,642,578 3,566,491
TOTAL ASSETS LESS CURRENT LIABILITIES 3,642,581 3,566,494
PROVISIONS FOR LIABILITIES
Provisions For Charges (281,700 ) (281,700 )
NET ASSETS 3,360,881 3,284,794
CAPITAL AND RESERVES
Called up share capital 10 10,000 10,000
Income Statement 3,350,881 3,274,794
SHAREHOLDERS' FUNDS 3,360,881 3,284,794
Page 6
Page 7
For the year ending 31 December 2023 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.
The members have not required the company to obtain an audit in accordance with section 476 of the Companies Act 2006.
The directors acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and the preparation of accounts.
These accounts have been prepared in accordance with the provisions applicable to companies subject to the small companies' regime.
On behalf of the board
Mr James Brown
Director
19/11/2024
The notes on pages 8 to 11 form part of these financial statements.
Page 7
Page 8
Notes to the Financial Statements
1. General Information
KGB Cleaning & Support Services Limited is a private company, limited by shares, incorporated in England & Wales, registered number 02943065 . The registered office is 26 Chorley New Road, Bolton, BL1 4AP.
2. Accounting Policies
2.1. Basis of Preparation of Financial Statements
The financial statements have been prepared under the historical cost convention and in accordance with Financial Reporting Standard 102 section 1A Small Entities "The Financial Reporting Standard applicable in the UK and Republic of Ireland" and the Companies Act 2006.
2.2. Turnover
Turnover is measured at the fair value of the consideration received or receivable, net of discounts and value added taxes. Turnover includes revenue earned from the sale of goods and from the rendering of services. Turnover is reduced for estimated customer returns, rebates and other similar allowances.
Sale of goods
Turnover from the sale of goods is recognised when the significant risks and rewards of ownership of the goods has transferred to the buyer. This is usually at the point that the customer has signed for the delivery of the goods.
Rendering of services
Turnover from the rendering of services is recognised by reference to the stage of completion of the contract. The stage of completion of a contract is measured by comparing the costs incurred for work performed to date to the total estimated contract costs. Turnover is only recognised to the extent of recoverable expenses when the outcome of a contract cannot be estimated reliably.
2.3. Intangible Fixed Assets and Amortisation - Goodwill
Goodwill is the difference between amounts paid on the acquisition of a business and the fair value of the separable net assets. It is amortised to income statement over its estimated economic life of three years.
2.4. Tangible Fixed Assets and Depreciation
Tangible fixed assets are measured at cost less accumulated depreciation and any accumulated impairment losses. Depreciation is provided at rates calculated to write off the cost of the fixed assets, less their estimated residual value, over their expected useful lives on the following bases:
Freehold -
Leasehold -
Plant & Machinery straight line over 3 years
Motor Vehicles 25% reducing balance
Fixtures & Fittings 25% reducing balance
2.5. Leasing and Hire Purchase Contracts
Assets obtained under finance leases are capitalised as tangible fixed assets. Assets acquired under finance leases are depreciated over the shorter of the lease term and their useful lives. Assets acquired under hire purchase contracts are depreciated over their useful lives. Finance leases are those where substantially all of the benefits and risks of ownership are assumed by the company. Obligations under such agreements are included in the creditors net of the finance charge allocated to future periods. The finance element of the rental payment is charged to the income statement so as to produce a constant periodic rate of charge on the net obligation outstanding in each period.

Rentals applicable to operating leases where substantially all of the benefits and risks of ownership remain with the lessor are charged to income statement as incurred.
2.6. Financial Instruments
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 entity after deducting all of its financial liabilities.
2.7. Pensions
The company operates a defined pension contribution scheme. Contributions are charged to the Income Statement as they become payable in accordance with the rules of the scheme.
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3. Average Number of Employees
Average number of employees, including directors, during the year was:
2023 2022
Office and administration 7 7
Operations staff 109 142
116 149
5. Intangible Assets
Goodwill
£
Cost
As at 1 January 2023 144,000
As at 31 December 2023 144,000
Amortisation
As at 1 January 2023 144,000
As at 31 December 2023 144,000
Net Book Value
As at 31 December 2023 -
As at 1 January 2023 -
6. Tangible Assets
Plant & Machinery Motor Vehicles Fixtures & Fittings Total
£ £ £ £
Cost
As at 1 January 2023 569,296 68,865 26,200 664,361
As at 31 December 2023 569,296 68,865 26,200 664,361
Depreciation
As at 1 January 2023 569,296 68,865 26,200 664,361
As at 31 December 2023 569,296 68,865 26,200 664,361
Net Book Value
As at 31 December 2023 - - - -
As at 1 January 2023 - - - -
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7. Investments
Other
£
Cost
As at 1 January 2023 3
As at 31 December 2023 3
Provision
As at 1 January 2023 -
As at 31 December 2023 -
Net Book Value
As at 31 December 2023 3
As at 1 January 2023 3
8. Debtors
2023 2022
£ £
Due within one year
Trade debtors 155,257 176,514
Provision for credit notes - (90,000 )
Prepayments and accrued income 20,497 26,768
Other debtors 174,855 199,855
Other debtors TW 112,789 104,961
Deferred tax current asset 6,694 6,694
Amounts owed by group undertakings 3,491,411 3,535,411
3,961,503 3,960,203
9. Creditors: Amounts Falling Due Within One Year
2023 2022
£ £
Trade creditors 70,428 74,006
Bank loans and overdrafts - 45,222
Other taxes and social security 14,287 13,323
VAT 47,874 44,367
Net wages 66,677 66,794
Other creditors 26,374 4,836
Accruals and deferred income 110,266 150,474
335,906 399,022
10. Share Capital
2023 2022
£ £
Allotted, Called up and fully paid 10,000 10,000
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11. Related Party Transactions
During the year the company was under the ultimate control of Mr K Brown the majority shareholder of KGB Holdings Limited.

As a wholly owned subsidiary undertaking of KGB Holdings Limited, the company has taken advantage of the exemption contained in Section 33 paragraph 33. 1A of FRS 102 and has therfore not disclosed transactions or balances with entities which form part of the group.
12. Ultimate Parent Undertaking and Controlling Party
During the year the company was under the ultimate control of Mr K Brown the majority shareholder of KGB Holdings Limited.

As a wholly owned subsidiary undertaking of KGB Holdings Limited, the Company has taken advantage of the exemption contained in Section 33 paragraph 33.1A of FRS 102 and has therefore not disclosed transactions or balances with entities which form part of the group.

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