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Registered number: 02657061
Kel-Berg Trailer and Trucks Limited
Strategic Report, Directors' Report and
Financial Statements
For The Year Ended 30 June 2024
Financial Statements
Contents
Page
Strategic Report 1
Directors' Report 2
Independent Auditor's Report 3—5
Profit and Loss Account 6
Balance Sheet 7
Statement of Changes in Equity 8
Statement of Cash Flows 9
Notes to the Statement of Cash Flows 10
Notes to the Financial Statements 11—18
Page 1
Strategic Report
The directors present their strategic report for the year ended 30 June 2024.
Review of the Business
The sales reported for the year are £32,914,287 compared to £48,161,665 for the year ended 30 June 2023. The construction industry has contracted. The company's good performance has given the directors confidence in the resilience of the market and believe this will continue. The directors are continuing to support the strategy in offering the most innovative trailers and related products to the UK market. The investment and development of our facilities in Bicester continues in 2024/25 and it is a key part of our strategy to be well placed in the market in the UK and Ireland. The company generated profits this year of £854,866 compared to £2,407,499 in 2023. The Kel-Berg brand is well accepted in Europe, UK and Ireland and we will continue to build on this success.
Principal Risks and Uncertainties
The directors consider the company's principal risks and uncertainties to be:
  • The reliance on major truck manufacturers' products for our contract hire and we have mitigated this by having supply of all major vehicle brands.
  • The construction industry's activity level has been reliant on low interest rates and now a change to higher interest rates will have an effect on our sales.
Key performance indicators
The company uses many key performance indicators to monitor and assess the company's performance and core activities.
  • Sales
The company monitors sales comparing budgets with actual and benchmarking our progress with the industry information available, and competitors.
  • Units rented
Each year we have the ambition to rent out more vehicles. We monitor monthly units rented and compare with budgeted figures. As with sales our operational tactics are changed if these are under achieved and this year we have seen an under achievement.
  • Gross margin
We try to maintain a consistent margin. However due to market forces this is a critical performance monitoring area. Costs recently have increased due to economic factors affecting currency and consumer buying behaviour. The market is holding stable, but we remain on alert as cost increases are making the market unpredictable. Unfortunately, this affects the margin and the overall profitability of the company.
Other information and explanations
Sales have reduced to £32,914,287 from £48,161,665 reported for the year ended 30 June 2023. The directors have assessed the potential future and anticipate sales to remain stable during the current year ending 30 June 2025.
The directors are pleased with the company's overall performance for the year and early indications are good for the year ended 30 June 2025. We believe that we can experience similar sales going into next year and beyond, but we are still firmly focused on customer satisfaction as this has been key to our success to date.
By order of the board
Ms A Kristensen
Company Secretary
13 December 2024
Page 1
Page 2
Directors' Report
The directors present their report and the financial statements for the year ended 30 June 2024.
Principal Activity
The company's principal activity continues to be that of the retailing of commercial vehicles.
Directors
The directors who held office during the year were as follows:
Mr R Verner
Mr J Larsen
Statement of Directors' Responsibilities
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 United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards, comprising FRS102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland', 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;
  • state whether applicable United Kingdom Accounting Standards, comprising FRS102, have been followed subject to any material departures disclosed and explained in the financial statements;
  • 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.
Statement of Disclosure of Information to Auditors
In the case of each director in office at the date the Directors' Report is approved:
  • so far as the director is aware, there is no relevant audit information of which the company's auditors are unaware; and
  • they have taken all the steps that they ought to have taken as directors in order to make themselves aware of any relevant audit information and to establish that the company's auditors are aware of that information.
Independent Auditors
The auditors, UHY Ross Brooke, have indicated their willingness to continue in office and a resolution concerning their re-appointment will be proposed at the Annual General Meeting.
By order of the board
Ms A Kristensen
Company Secretary
13 December 2024
Page 2
Page 3
Independent Auditor's Report
Opinion
We have audited the financial statements of Kel-Berg Trailer and Trucks Limited for the year ended 30 June 2024 which comprise the Profit and Loss Account, Balance Sheet, Statement of Changes of Equity, Cash Flow Statement and the related notes, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland".
In our opinion the financial statements:
  • give a true and fair view of the state of the company's affairs as at 30 June 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 Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Conclusions Relating to Going Concern
In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the entity's ability to continue as a going concern for a period of at least 12 months from when the financial statements are authorised for issue.
Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.
Other Information
The other information comprises the information included in the annual report, other than the financial statements and our auditor's report thereon. The directors are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
Opinions on Other Matters Prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of the audit:
  • the information given in the Strategic Report and Directors' Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
  • the Strategic Report and Directors' Report have been prepared in accordance with applicable legal requirements.
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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 or 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 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 company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.
Auditor's Responsibilities for the Audit of the Financial Statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below: 
  • the nature of the industry and sector, control environment and business performance including the company's remuneration policy, bonus levels and performance targets;
  • the company's own assessment, including assessments made by key management, of the risks that irregularities may occur either as a result of fraud or error;
  • any matters we identified having reviewed the company's policies and procedures relating to:
- identifying, evaluating and complying with laws and regulations and whether they were aware of any instances of non-compliance;
- detecting and responding to the risks of fraud and whether they have knowledge of any actual, suspected or alleged fraud; and
- the internal controls established to mitigate risks of fraud or non-compliance with laws and regulations;
  • the matters discussed amongst the engagement team.
As a result of these procedures, we considered the opportunities and incentives that may exist within the organisation for fraud and identified the greatest potential for fraud in the areas in which management is required to exercise significant judgement, such as revenue recognition. In common with all audits under ISAs (UK), we are also required to perform specific procedures to respond to the risk of management override.
We also obtained an understanding of the legal and regulatory framework that the company operates in, focusing on provisions of those laws and regulations that had a direct effect on the determination of material amounts and disclosures in the financial statements. The key laws and regulations we considered in this context were the Companies Act, tax legislation and environmental regulations.
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 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 an error, as fraud involves the 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 www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.
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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 2006. Our audit work has been undertaken so that we might state to the company's members those matters that we are required to state to them in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's members as a body, for our audit work, for this report, or for the opinions we have formed.
Caroline Webster (Senior Statutory Auditor)
for and on behalf of UHY Ross Brooke , Statutory Auditor
15 December 2024
UHY Ross Brooke
Suite I, Windrush Court
Abingdon Business Park
Abingdon
Oxfordshire
OX14 1SY
Page 5
Page 6
Profit and Loss Account
2024 2023
Notes £ £
TURNOVER 3 32,914,287 48,161,665
Cost of sales (30,613,427 ) (43,991,194 )
GROSS PROFIT 2,300,860 4,170,471
Administrative expenses (1,239,661 ) (1,185,982 )
OPERATING PROFIT 4 1,061,199 2,984,489
Profit on disposal of fixed assets 4,461 -
Other interest receivable and similar income 9 68,182 69,587
Interest payable and similar charges 10 (571 ) (3,049 )
PROFIT BEFORE TAXATION 1,133,271 3,051,027
Tax on Profit 11 (278,405 ) (643,528 )
PROFIT AFTER TAXATION BEING PROFIT FOR THE FINANCIAL YEAR 854,866 2,407,499
The notes on pages 10 to 18 form part of these financial statements.
Page 6
Page 7
Balance Sheet
Registered number: 02657061
2024 2023
Notes £ £ £ £
FIXED ASSETS
Tangible Assets 12 299,550 363,362
Investments 13 5,020 20
304,570 363,382
CURRENT ASSETS
Stocks 14 4,035,551 6,481,486
Debtors 15 4,050,434 5,059,742
Cash at bank and in hand 3,993,055 1,826,093
12,079,040 13,367,321
Creditors: Amounts Falling Due Within One Year 16 (1,782,431 ) (3,961,805 )
NET CURRENT ASSETS (LIABILITIES) 10,296,609 9,405,516
TOTAL ASSETS LESS CURRENT LIABILITIES 10,601,179 9,768,898
PROVISIONS FOR LIABILITIES
Deferred Taxation 17 (66,170 ) (88,755 )
NET ASSETS 10,535,009 9,680,143
CAPITAL AND RESERVES
Called up share capital 19 2 2
Profit and Loss Account 10,535,007 9,680,141
SHAREHOLDERS' FUNDS 10,535,009 9,680,143
On behalf of the board
Mr J Larsen
Director
13 December 2024
The notes on pages 10 to 18 form part of these financial statements.
Page 7
Page 8
Statement of Changes in Equity
Share Capital Profit and Loss Account Total
£ £ £
As at 1 July 2022 2 13,019,055 13,019,057
Profit for the year and total comprehensive income - 2,407,499 2,407,499
Dividends paid - (5,746,413) (5,746,413)
As at 30 June 2023 and 1 July 2023 2 9,680,141 9,680,143
Profit for the year and total comprehensive income - 854,866 854,866
As at 30 June 2024 2 10,535,007 10,535,009
Page 8
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Statement of Cash Flows
2024 2023
Notes £ £
Cash flows from operating activities
Net cash generated from operations 1 2,779,923 1,453,376
Interest paid (571 ) (3,049 )
Tax paid (643,997 ) (588,394 )
Net cash generated from operating activities 2,135,355 861,933
Cash flows from investing activities
Purchase of tangible assets (39,075 ) (15,709 )
Proceeds from disposal of tangible assets 7,500 -
Purchase of other fixed asset investments (5,000 ) -
Interest received 68,182 69,587
Net cash generated from investing activities 31,607 53,878
Cash flows from financing activities
Equity dividends paid - (5,746,413 )
Increase/(decrease) in cash and cash equivalents 2,166,962 (4,830,602 )
Cash and cash equivalents at beginning of year 2 1,826,093 6,656,695
Cash and cash equivalents at end of year 2 3,993,055 1,826,093
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Notes to the Statement of Cash Flows
1. Reconciliation of profit for the financial year to cash generated from operations
2024 2023
£ £
Profit for the financial year 854,866 2,407,499
Adjustments for:
Tax on profit 278,405 643,528
Interest expense 571 3,049
Interest income (68,182 ) (69,587 )
Depreciation of tangible assets 99,848 121,118
Profit on disposal of tangible assets (4,461) -
Movements in working capital:
Decrease/(increase) in stocks 2,445,935 (614,751 )
Decrease/(increase) in trade and other debtors 1,009,308 (434,423 )
Decrease in trade and other creditors (1,836,367 ) (603,057 )
Net cash generated from operations 2,779,923 1,453,376
2. Cash and cash equivalents
Cash and cash equivalents, as stated in the Statement of Cash Flows, relates to the following items in the Balance Sheet:
2024 2023
£ £
Cash at bank and in hand 3,993,055 1,826,093
3. Analysis of changes in net funds
As at 1 July 2023 Cash flows As at 30 June 2024
£ £ £
Cash at bank and in hand 1,826,093 2,166,962 3,993,055
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Notes to the Financial Statements
1. General Information
Kel-Berg Trailer and Trucks Limited is a private company, limited by shares, incorporated in England & Wales, registered number 02657061 . The registered office is Kel-Berg House, Middleton Stoney Road, Weston-on-the-Green, Bicester, Oxfordshire, OX25 3TH.
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 "The Financial Reporting Standard applicable in the UK and Republic of Ireland'' and the Companies Act 2006.
2.2. Going Concern Disclosure
The directors have not identified any material uncertainties related to events or conditions that may cast significant doubt about the company's ability to continue as a going concern.
2.3. Significant judgements and estimations
In the application of the company's accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.
Critical judgements
The following judgements (apart from those involving estimates) have had the most significant effect on amounts recognised in the financial statements.
Taxation
Determining income tax provisions involves judgements on the tax treatment of certain transactions. Deferred tax is recognised on accelerated capital allowances where a temporary difference occurs due to the estimated useful economic life of qualifying plant and machinery. The carry value of both current and deferred tax can be seen on note 11 and 18.
Useful economic life of tangible fixed assets
The annual depreciation charge of tangible assets is sensitive to changes in the estimated useful economic life and residual values of recognised assets. These estimates are annually reviewed for an  amendment in the adopted policy in the assets that are typically exposed to technological advancement, future investments, changes to economic utilisation, and the physical condition of the asset. See note 12 for the carrying value of these assets and note 2.5 for the adopted useful economic life of each class of asset.
2.4. 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.
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2.5. 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 10% reducing balance
Plant & Machinery 25% reducing balance
Motor Vehicles 25% reducing balance
Fixtures & Fittings 25% reducing balance
Computer Equipment 25% reducing balance
2.6. Investments
Interests in subsidiaries, associates and jointly controlled entities are initially measured at cost and subsequently measured at cost less accumulated impairment losses. The investments are assessed for impairment at each reporting date and any impairment losses or reversals of impairment losses are recognised immedialty in profit or loss.
An associate is an entity, being neither a subsidiary nor a joint venture, in which the company holds a long term interest and where the company has significant influence. The company considers that it has significant influence where it has the power to participate in the financial and operating decisions of the associates.
2.7. Stocks and Work in Progress
Stocks and work in progress are valued at the lower of cost and net realisable value after making due allowance for obsolete and slow-moving stocks.
Cost is determined using the first-in, first-out method. Cost includes all direct costs and an appropriate proportion of fixed and variable overheads.
Work in progress is reflected in the accounts on a contract by contract basis by recording turnover and related costs as contract activity progresses.
At the end of each reporting period stocks are assessed for impairment. If an item of stock is impaired, the identified stock is reduced to its selling price less costs to complete and sell and an impairment charge is recognised in the profit and loss account. Where a reversal of the impairment is required the impairment charge is reversed, up to the original impairment loss, and is recognised as a credit in the profit and loss account.
2.8. Cash and Cash Equivalents
Cash and cash equivalents are basic financial assets and include cash in hand and deposits held at call with banks, other short-term highly liquid investments that mature in no more than three months from the date of acquisition and are readily convertible to a known amount of cash with insignificant risk of change in value, and bank overdrafts.
2.9. Financial Instruments
The company has elected to apply the provisions of Section 11 'Basic Financial Instruments' and Section 12 'Other Financial Instruments Issues' of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the company's statement of financial position when the company becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
Basic financial assets
Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs.
Other financial assets
Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.
Impairment of financial assets
Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.
...CONTINUED
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2.9. Financial Instruments - continued
Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset's original effective interest rate. The impairment loss is recognised in profit or loss
Classification of financial liabilities
Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.
Basic financial liabilities
Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, are initially recognised at transaction price.
Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method, if due after one year.
2.10. Foreign Currencies
Monetary assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the balance sheet date. Transactions in foreign currencies are translated into sterling at the rate ruling on the date of the transaction. Exchange differences are taken into account in arriving at the operating profit.
2.11. Taxation
Income tax expense represents the sum of the tax currently payable and deferred tax.
The tax currently payable is based on taxable profit for the year. Taxable profit differs from profit as reported in the statement of comprehensive income because of items of income or expense that are taxable or deductible in other years and items that are never taxable or deductible. The company's liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the end of the reporting period.
Deferred tax is recognised on timing differences between the carrying amounts of assets and liabilities in the financial statements and the corresponding tax bases used in the computation of taxable profit. Deferred tax liabilities are generally recognised for all taxable timing differences. Deferred tax assets are generally recognised for all deductible temporary differences to the extent that it is probable that taxable profits will be available against which those deductible timing differences can be utilised. The carrying amount of deferred tax assets is reviewed at the end of each reporting period and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered.
Deferred tax assets and liabilities are measured at the tax rates that are expected to apply in the period in which the liability is settled or the asset realised, based on tax rates (and tax laws) that have been enacted or substantively enacted by the end of the reporting period. Deferred tax liabilities are presented within provisions for liabilities and deferred tax assets within debtors. The measurement of deferred tax liabilities and assets reflect the tax consequences that would follow from the manner in which the Company expects, at the end of the reporting period, to recover or settle the carrying amount of its assets and liabilities.
Current or deferred tax for the year is recognised in profit or loss, except when they related to items that are recognised in other comprehensive income or directly in equity, in which case, the current and deferred tax is also recognised in other comprehensive income or directly in equity respectively.
3. Turnover
Analysis of turnover by geographical market is as follows:
2024 2023
£ £
United Kingdom 31,831,346 46,895,239
Europe 1,082,941 1,266,426
32,914,287 48,161,665
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4. Operating Profit
The operating profit is stated after charging:
2024 2023
£ £
Depreciation of tangible fixed assets 99,848 121,118
5. Auditor's Remuneration
Remuneration received by the company's auditors and their associates during the year was as follows:
2024 2023
£ £
Audit Services
Audit of the company's financial statements 15,800 17,500
6. Staff Costs
Staff costs, including directors' remuneration, were as follows:
2024 2023
£ £
Wages and salaries 965,123 905,830
Social security costs 102,061 93,383
Other pension costs 23,553 22,088
1,090,737 1,021,301
7. Average Number of Employees
Average number of employees, including directors, during the year was as follows:
2024 2023
Office and administration 4 4
Manufacturing 18 17
Management 2 2
24 23
8. Directors' remuneration
2024 2023
£ £
Emoluments 72,500 70,000
Company contributions to money purchase pension schemes 2,150 2,100
74,650 72,100
9. Interest Receivable and Similar Income
2024 2023
£ £
Interest on short term deposits 68,182 69,587
68,182 69,587
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10. Interest Payable and Similar Charges
2024 2023
£ £
Bank loans and overdrafts 571 3,049
571 3,049
11. Tax on Profit
The tax charge on the profit for the year was as follows:
Tax Rate 2024 2023
2024 2023 £ £
Current tax
UK Corporation Tax 25.0% 20.4% 299,146 642,153
Prior period adjustment 1,844 -
300,990 642,153
Deferred Tax
Origination and reversal of timing differences (22,585 ) 1,375
Total tax charge for the period 278,405 643,528
The actual charge for the year can be reconciled to the expected charge for the year based on the profit and the standard rate of corporation tax as follows:
2024 2023
£ £
Profit before tax 1,133,271 3,051,027
Tax on profit at 25% (UK standard rate) 283,318 622,410
Goodwill/depreciation not allowed for tax 24,962 24,708
Expenses not deductible for tax purposes (1,115 ) 1,169
Capital allowances (8,019 ) (5,987 )
Short term timing differences - (147 )
Prior period adjustment 1,844 -
Deferred tax from unrecognised tax loss or credit (22,585 ) 1,375
Total tax charge for the period 278,405 643,528
12. Tangible Assets
Land & Property
Freehold Plant & Machinery Motor Vehicles Fixtures & Fittings Total
£ £ £ £ £
Cost
As at 1 July 2023 791 1,406,571 87,207 126,496 1,621,065
Additions - 3,575 35,500 - 39,075
Disposals - - (12,800 ) - (12,800 )
As at 30 June 2024 791 1,410,146 109,907 126,496 1,647,340
...CONTINUED
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Depreciation
As at 1 July 2023 791 1,064,930 68,861 123,121 1,257,703
Provided during the period - 86,303 12,702 843 99,848
Disposals - - (9,761 ) - (9,761 )
As at 30 June 2024 791 1,151,233 71,802 123,964 1,347,790
Net Book Value
As at 30 June 2024 - 258,913 38,105 2,532 299,550
As at 1 July 2023 - 341,641 18,346 3,375 363,362
13. Investments
Listed
£
Cost
As at 1 July 2023 20
Additions 5,000
As at 30 June 2024 5,020
Provision
As at 1 July 2023 -
As at 30 June 2024 -
Net Book Value
As at 30 June 2024 5,020
As at 1 July 2023 20
14. Stocks
2024 2023
£ £
Finished goods 4,035,551 6,481,486
15. Debtors
2024 2023
£ £
Due within one year
Trade debtors 1,256,948 2,064,975
Prepayments and accrued income 30,545 147,997
VAT - 227,386
Amounts owed by other participating interests 2,762,941 2,619,384
4,050,434 5,059,742
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16. Creditors: Amounts Falling Due Within One Year
2024 2023
£ £
Trade creditors 770,068 1,159,960
Corporation tax 299,146 642,153
Other taxes and social security 44,394 31,735
VAT 462,329 -
Net wages 9,610 11,170
Other creditors - 160,000
Accruals and deferred income 31,681 50,494
Amounts owed to related parties 165,203 1,906,293
1,782,431 3,961,805
17. Deferred Taxation
The provision for deferred tax is made up as follows:
2024 2023
£ £
Other timing differences 66,170 88,755
18. Provisions for Liabilities
Deferred Tax Total
£ £
As at 1 July 2023 88,755 88,755
Reversals (22,585 ) (22,585)
Balance at 30 June 2024 66,170 66,170
19. Share Capital
2024 2023
Allotted, called up and fully paid £ £
1 Ordinary Shares of £ 2.00 each 2 2
20. Other Commitments
The total of future minimum lease payments under non-cancellable operating leases are as following:
2024 2023
£ £
Not later than one year 150,000 150,000
150,000 150,000
21. Pension Commitments
The company operates a defined contribution pension scheme. The assets of the scheme are held separately from those of the company in an independently administered fund.
During the year the charge to profit or loss in respect of defined contribution schemes was £23,553 (2023: £22,088).
At the balance sheet date contributions of £3,881 (2023: £4,894) were due to the fund and are included in creditors.
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22. Dividends
2024 2023
£ £
On equity shares:
Final dividend paid - 5,746,413
- 5,746,413
23. Related Party Disclosures
During the year the company enterered into the following transactions with related parties: sales of goods £773,296 (2023 £272,984) and commissions paid £998,042 (2023 £1,332,445).  
It also paid rent of £150,000 (2023 £198,000) to a connected company.  The rent enabled the company to occupy Kel-Berg House, its registered address.  
During the year the company recharged interest of £66,927 (2023 £67,894) to a connected company.
At the year end the company was owed £2,762,941 (2023 £2,619,384) by and owed £165,203 (2023 £1,906,293) to related parties.
At the reporting date outstanding balances between various connected UK companies and overseas based companies that carry out specific complimentary services to complete the company's business activities, all were conducted under normal market conditions charging interest of 2.6% and 4%. These entities are all owned by those with control and have been referred to as other related parties in these financial statements.
24. Controlling Parties
The company's ultimate controlling party is Mr J K Larsen by virtue of his interest in the share capital of the company.
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