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Registered number: 02924037









KNOX & WELLS HOLDINGS LIMITED









ANNUAL REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2023

 
KNOX & WELLS HOLDINGS LIMITED
 
 
COMPANY INFORMATION


Directors
Guy Owen Leach 
Huw Mostyn Leach 




Registered number
02924037



Registered office
Creswell House
Fieldway

Heath

Cardiff

CF14 4UH




Independent auditors
MHA

Charter Court

Phoenix Way

Swansea Enterprise Park

Swansea

SA7 9FS





 
KNOX & WELLS HOLDINGS LIMITED
 

CONTENTS



Page
Group strategic report
1
Directors' report
2 - 3
Independent auditors' report
4 - 7
Consolidated statement of comprehensive income
8
Consolidated balance sheet
9 - 10
Company balance sheet
11 - 12
Consolidated statement of changes in equity
13 - 14
Company statement of changes in equity
15 - 16
Consolidated statement of cash flows
17 - 18
Consolidated analysis of net debt
19
Notes to the financial statements
20 - 41


 
KNOX & WELLS HOLDINGS LIMITED
 
 
GROUP STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023

Introduction
 
The directors present their strategic report of the company for the year ended 31 December 2023. 

Business review
 
The company's trading results for the financial year are shown in the Income Statement.
The directors were please with the performance of the business during the year. 2023 was a challenging year in the construction industry, with margins remaining extremely competitive. The company has reported a strong operational performance.
The company is in a healthy financial position with good liquidity, a strong net positive cash position, and both net assets and net current assets at the statement of financial position date.

Principal risks and uncertainties
 
The management of the business and execution of the company's strategy are subject to a number of risks.
The key business risks and uncertainties affecting the company are considered to relate to competition from competitors and employee retention. The group manages these risks by providing value added services to its customers, having fast response times to customer queries and maintaining strong relationships with its customers and employees.

Financial key performance indicators
 
The key performance indicators for the company are as follows:

2023
2022
      £'000
      £'000

Turnover

35,272

24,981

Gross Margin

4,127

2,744

Operating Profit

655

1,070

Net Current Assets

5,382

5,804



This report was approved by the board on 28 November 2024 and signed on its behalf.



Huw Mostyn Leach
Director

Page 1

 
KNOX & WELLS HOLDINGS LIMITED
 
 
 
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023

The directors present their report and the financial statements for the year ended 31 December 2023.

Directors' responsibilities statement

The directors are responsible for preparing the Group strategic report, the Directors' report and the consolidated 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 the Group 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 for the Group'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 Group 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 the Group 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 the Group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Principal activity

The principal activity of the group in the year under review was that of a holding company of a group primarily trading in the building contracting industry with some ancillary property development, investment and trading activities. The parent company undertakes property investment activities. 

Results and dividends

The profit for the year, after taxation, amounted to £647,127 (2022 - £1,385,201).

Dividends totalling £745,000 (2022- £550,000) were proposed at the year end.

Directors

The directors who served during the year were:

Guy Owen Leach 
Huw Mostyn Leach 

Future developments

The directors are optimistic about the company future developments and prospects.

Page 2

 
KNOX & WELLS HOLDINGS LIMITED
 
 
 
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023

Matters covered in the Group strategic report

Included in the group's strategic report is a review of the business and description of the principal risks and uncertainties facing the group. 

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 and the Group'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 and the Group's auditors are aware of that information.

Post balance sheet events

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

Auditors

Following a rebranding exercise on 15 May 2023, the trading name of the company's independent auditor changed from MHA to MacIntyre Hudson to MHA.

This report was approved by the board on 28 November 2024 and signed on its behalf.
 





Huw Mostyn Leach
Director

Page 3

 
KNOX & WELLS HOLDINGS LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF KNOX & WELLS HOLDINGS LIMITED
 

Opinion


We have audited the financial statements of KNOX & WELLS HOLDINGS LIMITED (the 'parent Company') and its subsidiaries (the 'Group') for the year ended 31 December 2023, which comprise the Consolidated statement of comprehensive income, the Consolidated balance sheet, the Company balance sheet, the Consolidated statement of cash flows, the Consolidated statement of changes in equity, the Company 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 Group's and of the parent Company's affairs as at 31 December 2023 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 Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the Group 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 Group's or the parent 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 4

 
KNOX & WELLS HOLDINGS LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF KNOX & WELLS HOLDINGS 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 Group 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 Group 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 Group and the parent Company and its environment obtained in the course of the audit, we have not identified material misstatements in the Group 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 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.


Page 5

 
KNOX & WELLS HOLDINGS LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF KNOX & WELLS HOLDINGS LIMITED (CONTINUED)


Responsibilities of directors
 

As explained more fully in the Directors' responsibilities statement set out on page 2, 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 Group's and the parent 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 Group or the parent Company or to cease operations, or have no realistic alternative but to do so.


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 Group financial statements.


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:
- Enquiry of management and those charged with governance around actual, potential or suspected litigation,
claims, non-compliance with applicable laws and regulations and fraud.
- Review of legal and professional fees for evidence of legal work undertaken or fines/penalties incurred.
- Reviewing of financial statements disclosures and testing to supporting documentation to assess compliance
with applicable laws and regulations.
- Performing audit work over the risk of management override, including testing of journal entries and other
adjustments for appropriateness. 
- Evaluating the business rationale of significant transactions outside the normal course of business. 
- An assessment of the methodologies used in order to calculate estimates/provisions at the year end for
evidence of bias. 
- We considered where applicable alternative estimation approaches including using (where available) actual
post year end outcomes in order to provide assurance over the potential for material misstatement.
- Discussions amongst the engagement team in relation to how and where fraud might occur in the financial
statements and any potential indicators of fraud.


Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.


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.


Page 6

 
KNOX & WELLS HOLDINGS LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF KNOX & WELLS HOLDINGS LIMITED (CONTINUED)


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.





Brian Garland BSc ACA (Senior statutory auditor)
  
for and on behalf of
MHA
 
Swansea, United Kingdom

2 December 2024


MHA is the trading name of MacIntyre Hudson LLP, a limited liability partnership in England and Wales (registered number OC312313).

Page 7

 
KNOX & WELLS HOLDINGS LIMITED
 
 
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2023


2023
2022
Note
£
£

  

Turnover
 4 
35,271,777
24,981,345

Cost of sales
  
(31,145,121)
(22,237,578)

Gross profit
  
4,126,656
2,743,767

Deficit on revaluation of property
  
(336,192)
-

Administrative expenses
  
(3,175,344)
(2,112,664)

Other operating income
 5 
41,964
427,739

Fair value movements
  
(2,244)
11,239

Operating profit
  
654,840
1,070,081

Share of operating profit in joint ventures
  
219,498
489,364

Income from fixed assets investments
  
2,799
2,187

Interest receivable and similar income
 11 
105,992
35,376

Share of interest payable in joint ventures
  
(41,943)
(47,618)

Profit before tax
  
941,186
1,549,390

Tax on profit
 13 
(294,059)
(164,189)

Profit for the financial year
  
647,127
1,385,201

Other comprehensive income for the year
  

Total comprehensive income for the year
  
647,127
1,385,201

Profit for the year attributable to:
  

Owners of the parent company
  
647,127
1,385,201

  
647,127
1,385,201

Total comprehensive income attributable to:
  

The notes on pages 20 to 41 form part of these financial statements.

Page 8

 
KNOX & WELLS HOLDINGS LIMITED
REGISTERED NUMBER: 02924037

CONSOLIDATED BALANCE SHEET
AS AT 31 DECEMBER 2023

2023
2022
Note
£
£

Fixed assets
  

Tangible assets
 16 
598,895
643,098

Investments
 17 
738,364
560,809

Investment property
 18 
2,000,000
2,336,192

  
3,337,259
3,540,099

Current assets
  

Stocks
 19 
2,427,850
2,518,738

Debtors: amounts falling due within one year
 20 
7,581,566
8,057,292

Current asset investments
 21 
1,458,866
1,148,502

Cash at bank and in hand
 22 
5,480,525
2,312,998

  
16,948,807
14,037,530

Creditors: amounts falling due within one year
 23 
(11,567,284)
(8,233,641)

Net current assets
  
 
 
5,381,523
 
 
5,803,889

Total assets less current liabilities
  
8,718,782
9,343,988

Creditors: amounts falling due after more than one year
 24 
-
(527,333)

  

Net assets
  
8,718,782
8,816,655


Capital and reserves
  

Called up share capital 
 26 
1,800
1,800

Investment property reserve
  
304,308
640,500

Profit And Loss Account
  
8,412,674
8,174,355

  
8,718,782
8,816,655


Page 9

 
KNOX & WELLS HOLDINGS LIMITED
REGISTERED NUMBER: 02924037
    
CONSOLIDATED BALANCE SHEET (CONTINUED)
AS AT 31 DECEMBER 2023

The financial statements were approved and authorised for issue by the board and were signed on its behalf on 28 November 2024.




Huw Mostyn Leach
Director

The notes on pages 20 to 41 form part of these financial statements.

Page 10

 
KNOX & WELLS HOLDINGS LIMITED
REGISTERED NUMBER: 02924037

COMPANY BALANCE SHEET
AS AT 31 DECEMBER 2023

2023
2022
Note
£
£

Fixed assets
  

Tangible assets
 16 
455,104
467,183

Investments
 17 
2,260
2,260

Investment property
  
2,000,000
2,336,192

  
2,457,364
2,805,635

Current assets
  

Stocks
 19 
9,406
9,406

Debtors: amounts falling due within one year
 20 
2,814,953
2,836,005

Current asset investments
 21 
163,283
125,369

Cash at bank and in hand
 22 
403,892
352,684

  
3,391,534
3,323,464

Creditors: amounts falling due within one year
 23 
(2,079,383)
(1,723,634)

Net current assets
  
 
 
1,312,151
 
 
1,599,830

Total assets less current liabilities
  
3,769,515
4,405,465

  

  

Net assets excluding pension asset
  
3,769,515
4,405,465

Net assets
  
3,769,515
4,405,465


Capital and reserves
  

Called up share capital 
 26 
1,800
1,800

Investment property reserve
  
304,308
640,500

Profit and loss account brought forward
  
3,763,165
3,679,463

Profit for the year
  
109,050
633,702

Other changes in the profit and loss account

  

(408,808)
(550,000)

Profit and loss account carried forward
  
3,463,407
3,763,165

  
3,769,515
4,405,465


Page 11

 
KNOX & WELLS HOLDINGS LIMITED
REGISTERED NUMBER: 02924037
    
COMPANY BALANCE SHEET (CONTINUED)
AS AT 31 DECEMBER 2023

The financial statements were approved and authorised for issue by the board and were signed on its behalf on 28 November 2024.


Huw Mostyn Leach
Director

The notes on pages 20 to 41 form part of these financial statements.

Page 12

 

 
KNOX & WELLS HOLDINGS LIMITED


 

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2023



Called up share capital
Investment property revaluation reserve
Profit and loss account
Total equity


£
£
£
£


At 1 January 2023
1,800
640,500
8,174,355
8,816,655



Comprehensive income for the year


Profit for the year

-
-
647,127
647,127



Other comprehensive income for the year
-
-
-
-



Total comprehensive income for the year
-
-
647,127
647,127



Contributions by and distributions to owners


Dividends: Equity capital
-
-
(745,000)
(745,000)


Transfer to/from profit and loss account
-
-
336,192
336,192


Transfer between other reserves
-
(336,192)
-
(336,192)



Total transactions with owners
-
(336,192)
(408,808)
(745,000)



At 31 December 2023
1,800
304,308
8,412,674
8,718,782



The notes on pages 20 to 41 form part of these financial statements.

Page 13

 

 
KNOX & WELLS HOLDINGS LIMITED


 

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2022



Called up share capital
Investment property revaluation reserve
Profit and loss account
Total equity


£
£
£
£


At 1 January 2022
1,800
640,500
7,339,154
7,981,454



Comprehensive income for the year


Profit for the year

-
-
1,385,201
1,385,201



Other comprehensive income for the year
-
-
-
-



Total comprehensive income for the year
-
-
1,385,201
1,385,201



Contributions by and distributions to owners


Dividends: Equity capital
-
-
(550,000)
(550,000)



Total transactions with owners
-
-
(550,000)
(550,000)



At 31 December 2022
1,800
640,500
8,174,355
8,816,655



The notes on pages 20 to 41 form part of these financial statements.

Page 14

 
KNOX & WELLS HOLDINGS LIMITED
 

COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2023


Called up share capital
Investment property revaluation reserve
Profit and loss account
Total equity

£
£
£
£

At 1 January 2023
1,800
640,500
3,763,165
4,405,465


Comprehensive income for the year

Profit for the year

-
-
109,050
109,050


Other comprehensive income for the year
-
-
-
-


Total comprehensive income for the year
-
-
109,050
109,050


Contributions by and distributions to owners

Dividends: Equity capital
-
-
(745,000)
(745,000)

Transfer to/from profit and loss account
-
-
336,192
336,192

Transfer between other reserves
-
(336,192)
-
(336,192)


Total transactions with owners
-
(336,192)
(408,808)
(745,000)


At 31 December 2023
1,800
304,308
3,463,407
3,769,515


The notes on pages 20 to 41 form part of these financial statements.

Page 15

 
KNOX & WELLS HOLDINGS LIMITED
 

COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2022


Called up share capital
Investment property revaluation reserve
Profit and loss account
Total equity

£
£
£
£

At 1 January 2022
1,800
640,500
3,679,463
4,321,763


Comprehensive income for the year

Profit for the year

-
-
633,702
633,702


Other comprehensive income for the year
-
-
-
-


Total comprehensive income for the year
-
-
633,702
633,702


Contributions by and distributions to owners

Dividends: Equity capital
-
-
(550,000)
(550,000)


Total transactions with owners
-
-
(550,000)
(550,000)


At 31 December 2022
1,800
640,500
3,763,165
4,405,465


The notes on pages 20 to 41 form part of these financial statements.

Page 16

 
KNOX & WELLS HOLDINGS LIMITED
 

CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2023

2023
2022
£
£

Cash flows from operating activities

Profit before tax for the financial year
941,186
1,549,390

Adjustments for:

Depreciation of tangible assets
50,662
52,412

Deficit on revaluation
336,192
-

Loss on disposal of tangible assets
7,200
26,062

Bank loan interest
-
41,951

Interest paid
41,943
47,618

Interest received
(108,791)
(37,563)

Decrease in stocks
90,888
197,475

Decrease/(increase) in debtors
475,726
(2,328,417)

Increase in creditors
3,362,249
1,219,025

Net fair value losses/(gains) recognised in P&L
2,244
(11,239)

Share of operating (loss) in joint ventures
(219,498)
(489,364)

Corporation tax (paid)
(167,666)
(51,397)

Net cash generated from operating activities

4,812,335
215,953


Cash flows from investing activities

Purchase of tangible fixed assets
(13,659)
(35,848)

Sale of investment properties
-
298,938

Purchase of current asset investments
(315,407)
(248,670)

Interest received
108,791
35,376

Dividends received
2,799
2,187

Net cash from investing activities

(217,476)
51,983

Cash flows from financing activities

New secured loans
-
300,726

Repayment of loans
(1,027,333)
-

Dividends paid
(400,000)
(300,000)

Net cash used in financing activities
(1,427,333)
726

Net increase in cash and cash equivalents
3,167,526
268,662

Cash and cash equivalents at beginning of year
2,312,998
2,044,336

Cash and cash equivalents at the end of year
5,480,524
2,312,998


Cash and cash equivalents at the end of year comprise:
Page 17

 
KNOX & WELLS HOLDINGS LIMITED
 

CONSOLIDATED STATEMENT OF CASH FLOWS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023


2023
2022

£
£


Cash at bank and in hand
5,480,524
2,312,998

5,480,524
2,312,998


The notes on pages 20 to 41 form part of these financial statements.

Page 18

 
KNOX & WELLS HOLDINGS LIMITED
 

CONSOLIDATED ANALYSIS OF NET DEBT
FOR THE YEAR ENDED 31 DECEMBER 2023




At 1 January 2023
Cash flows
At 31 December 2023
£

£

£

Cash at bank and in hand

2,312,998

3,167,526

5,480,524

Debt due after 1 year

(527,333)

527,333

-

Debt due within 1 year

(500,000)

(245,000)

(745,000)

Liquid investments

125,369

37,914

163,283


1,411,034
3,487,773
4,898,807

The notes on pages 20 to 41 form part of these financial statements.

Page 19

 
KNOX & WELLS HOLDINGS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

1.


General information

Knox & Wells Holdings Limited is a private company, limited by shares, registered in England and Wales. The company's registered number and registered office address as found on the General Information page are 02924037 and Creswell House, Fieldway, Heath, Cardiff, CF14 4UH. 
The presentation currency of the financial statements is the Pound Sterling (£).
Monetary amounts in these financial statements are rounded to the nearest £.

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 Group management to exercise judgment in applying the Group's accounting policies (see note 3).

The Company has taken advantage of the exemption allowed under section 408 of the Companies Act 2006 and has not presented its own Statement of comprehensive income in these financial statements.

The following principal accounting policies have been applied:

 
2.2

Basis of consolidation

The consolidated financial statements present the results of the Company and its own subsidiaries ("the Group") as if they form a single entity. Intercompany transactions and balances between group companies are therefore eliminated in full.
The consolidated financial statements incorporate the results of business combinations using the purchase method. In the Balance sheet, the acquiree's identifiable assets, liabilities and contingent liabilities are initially recognised at their fair values at the acquisition date. The results of acquired operations are included in the Consolidated statement of comprehensive income from the date on which control is obtained. They are deconsolidated from the date control ceases.
In accordance with the transitional exemption available in FRS 102, the Group has chosen not to retrospectively apply the standard to business combinations that occurred before the date of transition to FRS 102, being 01 January 2014.

 
2.3

Going concern

The financial statements have been prepared on a going concern basis which assumes that the company and the group will continue in operational existence for the foreseeable future. The directors have reviewed the balance sheet, the likely future cash flows of the business and have considered the facilities that are in place at the date of signing the report. At the time of approving the financial statements, the directors have a reasonable expectation that the company and the group have adequate resources in place to continue in operational existence for the foreseeable future.

Page 20

 
KNOX & WELLS HOLDINGS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

2.Accounting policies (continued)

  
2.4

Related party exemption

The company has taken advantage of an exemption, under the terms of the Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland', not to disclose related party transactions with wholly owned subsidiaries within the group. 

 
2.5

Revenue

Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Group 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:

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 Group 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.

Revenue includes rental income which is recognised in the period to which it relates, in accordance with tenant lease agreements. 

  
2.6

Amounts recoverable on contracts

Amounts recoverable on long-term contracts, which are included in debtors, are stated at the net sales value of the work done less amounts received as progress payments on account. Excess progress payments are included in creditors as payments on account. Cumulative costs incurred net of amounts transferred to cost of sales, less provision for contingencies and anticipated future losses on contracts, are included as long-term contract balances in stock. Turnover is determined by reference to the value of work carried out to date. Turnover is determined by reference to the value of work carried out to date. A provision is made for all losses expected to arise on completion of contracts at the balance sheet date. 

 
2.7

Interest income

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

 
2.8

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.

Page 21

 
KNOX & WELLS HOLDINGS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

2.Accounting policies (continued)

 
2.9

Borrowing costs

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

 
2.10

Pensions

Defined contribution pension plan

The Group operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the Group pays fixed contributions into a separate entity. Once the contributions have been paid the Group has no further payment obligations.

The contributions are recognised as an expense in profit or loss 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 Group in independently administered funds.

 
2.11

Taxation

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 and the Group operate and generate 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;
Any deferred tax balances are reversed if and when all conditions for retaining associated tax allowances have been met; and
Where they relate to timing differences in respect of interests in subsidiaries, associates, branches and joint ventures and the Group can control the reversal of the timing differences and such reversal is not considered probable in the foreseeable future.

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.

 
2.12

Exceptional items

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

Page 22

 
KNOX & WELLS HOLDINGS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

2.Accounting policies (continued)

 
2.13

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%
on cost
Plant and machinery
-
25%
straight line
Motor vehicles
-
25%
reducing balance

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.

  
2.14

Investment properties

Investment properties are shown at most recent valuation. Any aggregate surplus or deficit arising from changes in fair value is recognised in profir or loss. 

 
2.15

Valuation of investments

Investments in subsidiaries are measured at cost less accumulated impairment.

Investments in unlisted Group shares, whose market value can be reliably determined, are remeasured to market value at each balance sheet date. Gains and losses on remeasurement are recognised in the Consolidated statement of comprehensive income for the period. Where market value cannot be reliably determined, such investments are stated at historic cost less impairment.

Investments in listed company shares are remeasured to market value at each balance sheet date. Gains and losses on remeasurement are recognised in profit or loss for the period.

Page 23

 
KNOX & WELLS HOLDINGS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

2.Accounting policies (continued)

 
2.16

Associates and joint ventures

An entity is treated as a joint venture where the Group is a party to a contractual agreement with one or more parties from outside the Group to undertake an economic activity that is subject to joint control.

An entity is treated as an associated undertaking where the Group exercises significant influence in that it has the power to participate in the operating and financial policy decisions.
In the consolidated accounts, interests in associated undertakings are accounted for using the equity method of accounting. Under this method an equity investment is initially recognised at the transaction price (including transaction costs) and is subsequently adjusted to reflect the investors share of the profit or loss, other comprehensive income and equity of the associate. The Consolidated statement of comprehensive income includes the Group's share of the operating results, interest, pre-tax results and attributable taxation of such undertakings applying accounting policies consistent with those of the Group. In the Consolidated balance sheet, the interests in associated undertakings are shown as the Group's share of the identifiable net assets, including any unamortised premium paid on acquisition.
Any premium on acquisition is dealt with in accordance with the goodwill policy.

 
2.17

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.

  
2.18

Long-term contract work in progress

Long-term contract work in progress represents costs incurred on contracts, net of amounts transferred to cost of sales in respect of work recorded as turnover, less foreseeable losses and payments on account not matched with turnover. Turnover is determined by reference to the value of work carried out to date. 

Provision is made for all losses expected to arise in completion of contracts at the balance sheet date.

Claims against customers for extensions to time or for additional work carried out and not contracted for are only added to valuations when certified by the architect or if not certified, when cash is received. 

 
2.19

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.

Page 24

 
KNOX & WELLS HOLDINGS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

2.Accounting policies (continued)

 
2.20

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.

In the Consolidated statement of cash flows, cash and cash equivalents are shown net of bank overdrafts that are repayable on demand and form an integral part of the Group's cash management.

 
2.21

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.

 
2.22

Financial instruments

The Group has elected to apply the provisions of Section 11 “Basic Financial Instruments” of FRS 102 to all of its financial instruments.

The Group has elected to apply the recognition and measurement provisions of IFRS 9 Financial Instruments (as adopted by the UK Endorsement Board) with the disclosure requirements of Sections 11 and 12 and the other presentation requirements of FRS 102.

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

Basic financial assets

Basic financial assets, which include trade and other receivables, cash and bank balances, are initially measured at their transaction price including transaction costs and are subsequently carried at their amortised cost using the effective interest method, less any provision for impairment, 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.

Discounting is omitted where the effect of discounting is immaterial. The Group's cash and cash equivalents, trade and most other receivables due with the operating cycle fall into this category of financial instruments.

Other financial assets

Other financial assets, which includes investments in equity instruments which are not classified as subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the recognised transaction price. Such assets are subsequently measured at fair value with the changes in fair value being recognised in the profit or loss. Where other financial assets are not publicly traded, hence their fair value cannot be measured reliably, they are measured at cost less impairment.

Page 25

 
KNOX & WELLS HOLDINGS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

2.Accounting policies (continued)


2.22
Financial instruments (continued)

Impairment of financial assets

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

Financial assets are impaired when events, subsequent to their initial recognition, indicate the estimated future cash flows derived from the financial asset(s) have been adversely impacted. The impairment loss will be the difference between the current carrying amount and the present value of the future cash flows at the asset(s) original effective interest rate.

If there is a favourable change in relation to the events surrounding the impairment loss then the impairment can be reviewed for possible reversal. The reversal will not cause the current carrying amount to exceed the original carrying amount had the impairment not been recognised. The impairment reversal is recognised in the profit or loss.

Financial liabilities

Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instruments any contract that evidences a residual interest in the assets of the Group after the deduction of all its liabilities.

Basic financial liabilities, which include trade and other payables, bank loans, other loans and loans due to fellow group companies are initially measured at their transaction price after transaction costs. When this constitutes a financing transaction, whereby the debt instrument is measured at the present value of the future receipts discounted at a market rate of interest. Discounting is omitted where the effect of discounting is immaterial.

Debt instruments are subsequently carried at their amortised cost using the effective interest rate method.

Trade payables are obligations to pay for goods and services that have been acquired in the ordinary course of business from suppliers. Trade payables are classified as current liabilities if the payment is due within one year. If not, they represent non-current liabilities. Trade payables are initially recognised at their transaction price and subsequently are measured at amortised cost using the effective interest method. Discounting is omitted where the effect of discounting is immaterial.

 
2.23

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.

Page 26

 
KNOX & WELLS HOLDINGS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

3.


Judgements in applying accounting policies and key sources of estimation uncertainty

In the application of the group's accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amounts of assets and liabilities that are not readily apparent from other sources. The estimates and assicated assumptions are based on historical experience and other factors that are considered to be relevant.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period which the estimate is revised where the revision affects only that period, or in the period of revision and future period where the revision affects both current and future periods. The following items are those that management consider to have the most significant effect on the financial statements : 

Construction contracts: Recognition of turnover and profit on construction contracts requires management judgement regarding the anticipated final outcome of individual contracts and of the proportion of works completed at the balance sheet date. Management undertake detailed reviews in order to exercise judgement over the outcome of each contract. The age and recoverability of debtors and amounts recoverable on contracts are reviewed regularly by management and provisions made where appropriate. 


4.


Turnover

An analysis of turnover by class of business is as follows:


2023
2022
£
£

Building contracting and rents receivable
35,271,777
24,981,345

35,271,777
24,981,345



.


2023
2022
        £
        £
Building contracting

34,952,606

24,662,819
 
Rents receivable

319,171

318,527
 

35,271,777

24,981,346
 

All turnover arose within the United Kingdom. 

Page 27

 
KNOX & WELLS HOLDINGS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

5.


Other operating income

2023
2022
£
£

Sundry income
41,964
427,739

41,964
427,739



6.


Operating profit

The operating profit is stated after charging:

2023
2022
£
£

Hire of plant and equipment
607,406
212,394

Page 28

 
KNOX & WELLS HOLDINGS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

7.


Auditors' remuneration

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


2023
2022
£
£

Fees payable to the Company's auditors for the audit of the consolidated and parent Company's financial statements
7,075
5,000

Fees payable to the Company's auditors in respect of:

Taxation compliance services
550
450

Page 29

 
KNOX & WELLS HOLDINGS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

8.

Employees

          Group                             2023
           Group                             2022
        £
        £
Wages and salaries

3,464,763

2,485,674
 
Social security costs

294,037

271,547
 
Cost of defined contribution scheme

608,259

272,238
 

4,367,059

3,029,459
 


.

Group

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

2023
2022
        £
        £
Directors

6

5
 
Building and construction

52

50
 
Administration

5

5
 

63

60
 


9.


Directors' remuneration





.

Group

2023
2022
        £
        £
Directors' emoluments

381,133

374,345
 
Company contributions to defined contribution pension scheme

26,329

80,009
 

407,462

454,354
 

During the year retirement benefits were accruing to 6 directors (2022 - 3) in respect of defined contribution pension schemes.

Page 30

 
KNOX & WELLS HOLDINGS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

10.


Income from investments

2023
2022
£
£





Dividends received from investments
(2,799)
(2,187)

(2,799)
(2,187)



11.


Interest receivable

2023
2022
£
£


Interest receivable from related companies
5,626
20,526

Other interest receivable
100,366
14,850

105,992
35,376


12.


Interest payable and similar expenses

2023
2022
£
£


Share of interest payable in joint ventures
41,943
47,618

41,943
47,618


13.


Taxation


2023
2022
£
£

Corporation tax


Current tax on profits for the year
293,908
167,466

Adjustments in respect of previous periods
151
(3,277)


294,059
164,189


Total current tax
294,059
164,189
Page 31

 
KNOX & WELLS HOLDINGS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
 
13.Taxation (continued)


Factors affecting tax charge for the year

The tax assessed for the year is higher than (2022 - lower than) the standard rate of corporation tax in the UK of 23.52% (2022 - 19%). The differences are explained below:

2023
2022
£
£


Profit on ordinary activities before tax
941,186
1,549,390


Profit on ordinary activities multiplied by standard rate of corporation tax in the UK of 23.52% (2022 - 19%)
221,367
294,384

Effects of:


Expenses not deductible for tax purposes, other than goodwill amortisation and impairment
948
12,408

Capital allowances for year in excess of depreciation
-
6,024

Adjustments to tax charge in respect of prior periods
151
(3,276)

Non-taxable income
-
(159,626)

Chargeable losses
(79,074)
-

Fixed asset differences
2,587
-

Other differences leading to an increase (decrease) in the tax charge
148,080
14,275

Total tax charge for the year
294,059
164,189


Factors that may affect future tax charges

There were no factors that may affect future tax charges.



Page 32

 
KNOX & WELLS HOLDINGS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

14.


Dividends

2023
2022
£
£


Dividends
745,000
550,000

745,000
550,000


15.


Parent company profit for the year

The Company has taken advantage of the exemption allowed under section 408 of the Companies Act 2006 and has not presented its own Statement of comprehensive income in these financial statements. The profit after tax of the parent Company for the year was £109,050 (2022 - £633,702).


16.


Tangible fixed assets

Group






Freehold property
Plant and machinery
Motor vehicles
Total

£
£
£
£



Cost or valuation


At 1 January 2023
550,000
569,338
462,739
1,582,077


Additions
-
13,659
-
13,659


Disposals
-
-
(48,055)
(48,055)



At 31 December 2023

550,000
582,997
414,684
1,547,681



Depreciation


At 1 January 2023
99,000
488,014
351,965
938,979


Charge for the year on owned assets
11,000
12,338
27,324
50,662


Disposals
-
-
(40,855)
(40,855)



At 31 December 2023

110,000
500,352
338,434
948,786



Net book value



At 31 December 2023
440,000
82,645
76,250
598,895



At 31 December 2022
451,000
81,324
110,774
643,098

Page 33

 
KNOX & WELLS HOLDINGS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

           16.Tangible fixed assets (continued)


Company






Freehold property
Plant and machinery
Total

£
£
£

Cost or valuation


At 1 January 2023
550,000
31,061
581,061



At 31 December 2023

550,000
31,061
581,061



Depreciation


At 1 January 2023
99,000
14,878
113,878


Charge for the year on owned assets
11,000
1,079
12,079



At 31 December 2023

110,000
15,957
125,957



Net book value



At 31 December 2023
440,000
15,104
455,104



At 31 December 2022
451,000
16,183
467,183





The net book value of land and buildings may be further analysed as follows:


2023
2022
£
£

Freehold
440,000
451,000

440,000
451,000


The historical cost of the freehold property is £506,500 (2022 - £506,500). If the property had not been re-valued the net book value would be £235,199 as at 31 December 2023 (2022 - £245,329). 

Page 34

 
KNOX & WELLS HOLDINGS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

17.


Fixed asset investments

Group





Listed investments
Investment in joint ventures
Total

£
£
£



Cost or valuation


At 1 January 2023
36,550
524,259
560,809


Share of profit/(loss)
-
177,555
177,555



At 31 December 2023
36,550
701,814
738,364




Company





Investments in subsidiary companies
Investment in joint ventures
Total

£
£
£



Cost or valuation


At 1 January 2023
2,200
60
2,260



At 31 December 2023
2,200
60
2,260





Subsidiary undertakings


The following were subsidiary undertakings of the Company:

Name

Registered office

Principal activity

Class of shares

Holding

Knox & Wells Limited
Cresswell House, Field Way, Cardiff, South Glamorgan, CF14 4UH
Building Contractors
Ordinary
100%
K & W Property Trading Limited
Cresswell House, Field Way, Cardiff, South Glamorgan, CF14 4UH
Property development and investment
Ordinary
100%
K & W Bloodstock Limited
Cresswell House, Field Way, Cardiff, South Glamorgan, CF14 4UH
Trading and investment in bloodstock
Ordinary
100%

Page 35

 
KNOX & WELLS HOLDINGS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
Subsidiary undertakings (continued)

The aggregate of the share capital and reserves as at 31 December 2023 and the profit or loss for the year ended on that date for the subsidiary undertakings were as follows:

Name
Aggregate of share capital and reserves
Profit/(Loss)
£
£

Knox & Wells Limited
3,453,969
363,036

K & W Property Trading Limited
(164,823)
25,036

K & W Bloodstock Limited
960,565
272,448


Joint ventures


The following were joint ventures of the Company:


Name

Registered office

Principal activity

Holding

K & W Developments Limited
Cresswell House, Field Way, Cardiff, South Glamorgan, CF14 4UH
Property Trading, development and investment
50%
K & W Developments (Wales) Ltd
Cresswell House, Field Way, Cardiff, South Glamorgan, CF14 4UH
Property development and trading
50%

Knox and Wells Holdings Limited 50% interest in K & W Developments (Wales) Ltd is held via its 50% shareholding in K & W Developments Limited.


.

K&W Developments Limited

2023
        £
Aggregate of share capital and reserves

1,931,517

Profit/(Loss)

358,133



.

K&W Developments (Wales) Ltd

2023
        £
Aggregate of share capital and reserves

(2,068,707)

Profit/(Loss)

(3,023)


Page 36

 
KNOX & WELLS HOLDINGS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

18.


Investment property

Group


Freehold investment property

£



Valuation


At 1 January 2023
2,336,192


Surplus on revaluation
(336,192)



At 31 December 2023
2,000,000

The 2023 valuations were made by independent valuation, on an open market value for existing use basis.



If the Investment properties had been accounted for under the historic cost accounting rules, the properties would have been measured as follows:

2023
£


Historic cost
1,739,192

1,739,192

Company





Freehold investment property

£



Valuation


At 1 January 2023
2,336,192


Surplus on revaluation
(336,192)



At 31 December 2023
2,000,000

The 2023 valuations were made by independent valuation, on an open market value for existing use basis.

zaInvestment properties were valued by the directors with reference to independent valuations by third party chartered surveyors. The valuations were made in accordance with the requirements of the RICS Appraisal and Valuation Standards. The valuation was made on the basis of market value assuming that the properties would be sold subject to any existing leases. 

Page 37

 
KNOX & WELLS HOLDINGS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
 
18.Investment property (continued)

2023
2022
£
£

Revaluation reserves


At 1 January 2023
640,500
640,500

Deficit on revaluation
(336,192)
-

At 31 December 2023
304,308
640,500


19.


Stocks

Group
Group
Company
Company
2023
2022
2023
2022
£
£
£
£

Stocks
1,438,647
1,438,651
9,406
9,406

Work in progress
989,203
1,080,087
-
-

2,427,850
2,518,738
9,406
9,406



20.


Debtors

Group
Group
Company
Company
2023
2022
2023
2022
£
£
£
£


Trade debtors
5,875,800
6,232,116
25,500
52,888

Amounts owed by group undertakings
-
-
1,396,109
1,396,109

Amounts owed by joint ventures and associated undertakings
1,594,925
1,716,147
1,368,747
1,368,747

Other debtors
58,344
67,446
24,597
18,261

Prepayments and accrued income
52,497
41,583
-
-

7,581,566
8,057,292
2,814,953
2,836,005


Page 38

 
KNOX & WELLS HOLDINGS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

21.


Current asset investments

Group
Group
Company
Company
2023
2022
2023
2022
£
£
£
£

Other investments
1,295,583
1,023,133
-
-

Listed investments
163,283
125,369
163,283
125,369

1,458,866
1,148,502
163,283
125,369


Market value of listed investments at 31 December 2023 held by the group and the company is £163,283 (2022 - £125,369). Listed investments are carried at fair value. 


22.


Cash and cash equivalents

Group
Group
Company
Company
2023
2022
2023
2022
£
£
£
£

Cash at bank and in hand
5,480,525
2,312,998
403,892
352,684

5,480,525
2,312,998
403,892
352,684



23.


Creditors: Amounts falling due within one year

Group
Group
Company
Company
2023
2022
2023
2022
£
£
£
£

Bank loans
-
500,000
-
-

Trade creditors
7,939,885
5,338,808
-
2

Amounts owed to group companies
-
-
1,241,798
1,221,858

Amounts owed to joint ventures
-
40,896
-
-

Corporation tax
293,859
167,466
48,047
37,492

Other taxation and social security
1,363,268
1,460,075
7,878
10,572

Other creditors
946,552
541,271
745,000
400,000

Accruals and deferred income
1,023,720
185,125
36,660
53,710

11,567,284
8,233,641
2,079,383
1,723,634


Page 39

 
KNOX & WELLS HOLDINGS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

24.


Creditors: Amounts falling due after more than one year

Group
Group
2023
2022
£
£

Bank loans
-
527,333

-
527,333



The following liabilities were secured:
Group
Group
Company
Company
2023
2022
2023
2022
£
£
£
£


Bank loans
-
1,027,333
-
1,027,333

-
1,027,333
-
1,027,333

Details of security provided:

The bank loans were secured by way of a mortgage and collateral warranties over the property to which the loan relates. 

Bank loans were repaid in full during the year. 


25.


Loans


Analysis of the maturity of loans is given below:


Group
Group
2023
2022
£
£

Amounts falling due within one year

Bank loans
-
500,000


-
500,000

Amounts falling due 1-2 years

Bank loans
-
527,333


-
527,333



-
1,027,333


Bank loans were repaid in their entirety during the year. 

Page 40

 
KNOX & WELLS HOLDINGS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

26.


Share capital

2023
2022
£
£
Allotted, called up and fully paid



1,800 (2022 - 1,800) Ordinary shares of £1.00 each
1,800
1,800



27.


Investment property reserve

Group
Group
Company
Company
2023
2022
2023
2022
£
£
£
£


As at 1 January 2023
640,500
640,500
640,500
640,500

Reserve transfer
(336,192)
(336,192)
(336,192)
(336,192)

As at 31 December 2023
304,308
304,308
304,308
304,308


28.


Pension commitments

The subsidiary company Knox & Wells Limited, operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the subsidiary company in an independently administered fund. The pension charge represents contributions payable by the company to the pension fund and amounted to £608,258 (2022 - £272,238). 


29.


Controlling party

The directors do not consider there to be a ultimate controlling party.

 
Page 41