COMPANY REGISTRATION NUMBER 08727492 (ENGLAND AND WALES)
KENAI HOLDINGS LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024
KENAI HOLDINGS LIMITED
COMPANY INFORMATION
Directors
M W Smith
N R Beatson
L J Smith
Company number
08727492
Registered office
Millennium House
Severnlink Distribution Centre
Newhouse Farm Industrial Estate
Mathern, Chepstow
Monmouthshire
NP16 6UN
Auditor
UHY Hacker Young
6 Broadfield Court
Broadfield Way
Sheffield
S8 0XF
KENAI HOLDINGS LIMITED
CONTENTS
Page
Strategic report
1 - 6
Directors' report
7 - 8
Directors' responsibilities statement
9
Independent auditor's report
10 - 13
Profit and loss account
14
Group statement of comprehensive income
15
Group balance sheet
16 - 17
Company balance sheet
18 - 19
Group statement of changes in equity
20
Company statement of changes in equity
21
Group statement of cash flows
22
KENAI HOLDINGS LIMITED
CONTENTS
Company statement of cash flows
23
Notes to the financial statements
24 - 49
KENAI HOLDINGS LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 MARCH 2024
- 1 -

The directors present the strategic report for the year ended 31 March 2024.

 

Review of the business

The UK economy has experienced a period of significant turbulence over the past three to four years, marked by a series of overlapping challenges. These dynamics have directly impacted the construction sector and shaped the broader economic environment in which the Kenai Group operates.

Economic Trends: 2020-2024

Pandemic Disruptions (2020-2021)

The COVID-19 pandemic brought construction activity to a near standstill in 2020, with GDP contracting by 9.3% - the steepest decline on record. Government stimulus measures and pent-up demand led to a strong rebound in 2021, but lingering supply chain disruptions and workforce shortages created persistent pressures.

Inflation and Energy Crisis (2022-2023)

The war in Ukraine and subsequent global energy crisis drove UK inflation to a 40-year high, peaking at 11.1% in October 2022. Rising costs for construction materials such as steel, concrete, and timber squeezed margins across the sector. The Bank of England’s aggressive interest rate hikes, reaching 5.25% by late 2023, further dampened investment in infrastructure and housing.

Evolving Labour Market

Labour shortage, exacerbated by post-Brexit migration policies and an aging workforce, have persisted as a critical challenge. Vacancies in construction remained significantly above pre-pandemic levels, driving up wages and increasing project costs.

Signs of Stabilisation (2024)

While inflation has started to ease, falling to 4.7% in early 2024, the high cost of borrowing continues to constrain investment. GDP growth in 2024 is forecasted at a modest 0.6%, reflecting an economy still grappling with uncertainty but showing signs of gradual recovery.

Recent Construction Sector Outlook

The UK construction sector has displayed resilience in the face of these economic headwinds, but key challenges remain and finds itself at a crossroads in navigating a mix of risks and opportunities. Public sector infrastructure spending, sustainability driven innovation, and adaptive strategies will underpin growth in 2024 and beyond. The Kenai Group is well-positioned to leverage its strengths in operational excellence and market responsiveness to weather the headwinds and capitalise on emerging trends.

Review of the business

Despite these continued challenges the Group has delivered a strong performance again this year, achieving results that significantly exceeded our projected budgets. While Group turnover decreased from £73.16m to £60.15m, our gross profit margin improved to 18.13%, the highest level in the past three years. This reflects the success of our ongoing focus on operational efficiency and controlling prices on our longer-term projects.

The Group’s performance continues to be significantly supported by two of its core businesses, Northern Steel Decking Limited and Studwelders Composite Floor Decks Limited. Together, these businesses contributed £2.3m in profit before tax, showcasing their resilience and ability to perform well in a challenging UK market. Although this represents a reduction compared to the prior year’s £2.8m, the focus remains on their strong operational execution and strategic value within the Group.

 

 

KENAI HOLDINGS LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 2 -

However, two of the Group’s businesses, Met Structures Limited and The Bolted Frame Company Limited, faced continued challenges during the year. Operating in the light gauge steel framing market we saw turnover fall from £27.7m to £19.3m this year, operating just below break-even for the financial year. This performance was adversely affected by an increasingly competitive market driving down margins and high inflation in raw material costs, which have caused some projects to be postponed or cancelled due to market uncertainty.

This sector presents ongoing challenges due to high turnover per project at low percentage returns, and the substantial investment required to build the necessary infrastructure, particularly in design, to establish a foothold. Despite these obstacles, the Group takes pride in the market share achieved within a relatively short timeframe. The Directors remain confident in the sector’s long-term growth potential, continue to invest in R&D activities to drive continuous improvement, and view it as a key component to the Group’s strategy to diversify within the UK construction industry.

On the 8th March 2023 we formed a new Joint Venture (JV) with a long-term business partner to help support the ongoing development opportunities at Gwent Europark in Magor; part of the land which we acquired in 2019. This land acquisition was a strategic step in diversifying the Group’s activities and has delivered significant benefits over the last few years. As part of the JV formation, an internal re-structuring of the Group’s assets and liabilities were undertaken, transferring them from Studwelders Holdings (SWH) into Kenai Holdings, leaving only the remaining land investment in SWH as of 31st March 2023. The JV sale resulted in a £7.0m gain on the revaluation of the fair value of the investment at the date of sale. SWH was then renamed Sullivan Smith Limited on 18th March 2024.

During this financial year, a revaluation of the Magor site was carried out, with one plot of this site still retained 100% within the Group under Red Dot 2 Developments Limited, while other portions of the site are owned under the Joint Ventures of Sullivan Smith Limited and Red Dot 1 Developments Limited. This revaluation has resulted in a reported gain of £3.8m in Kenai Holdings’ accounts alongside further gains of £2.8m gain in Sullivan Smith Limited and £1.7m in Red Dot 1 Developments Limited. Together, these gains have formed a significant portion of the Group’s reported profit before tax for this financial year.

Our 50% joint venture of Construction Metal Forming Limited (CMF) has historically been a major contributor to the Group’s results. However, this year, CMF faced challenges and reported its first (small) loss over the 12 months to March 2024. This was largely attributed to transitional effects following significant investment and increased overheads from the commissioning of our second site. The new management team has indicated that this year represents a period of adjustment and growth as CMF adapts to its expanded capacity. Despite this setback, CMF remains a critical part of the Group’s operations, providing stability and security of supply in a competitive marketplace. As part of our long-term vision, the second site, developed through Red Dot 1 Developments Limited and opened in October 2022, has significantly increased CMF’s production capabilities. While this has had a short-term impact on results, we see substantial opportunities to expand the product range, reduce outsourcing, and maintain the high standards of quality and service that define our core businesses. The Group remains committed to supporting CMF’s development as it continues to align with our strategic goals.

 

 

 

 

KENAI HOLDINGS LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 3 -

The Group is also proud of the charitable work it supports, with £152,860 donated to charitable causes during this financial year. These contributions reflect our commitment to making a positive impact beyond our core business operations and supporting the communities in which we operate

A summary of results are as follows:

 

 

2024

 

2023

 

2022

 

2021

 

 

£

 

£

 

£

 

£

Turnover

 

60,146,820

 

73,155,070

 

79,866,509

 

45,612,462

Gross Profit

 

10,901,691

 

11,210,228

 

9,648,835

 

9,021,006

GP%

 

18.13%

 

15.32%

 

12.08%

 

19.78%

PBT

 

8,687,735

 

11,948,425

 

5,204,519

 

4,245,605

PBT%

 

14.44%

 

16.33%

 

6.52%

 

9.31%

Outlook for FY2025

The directors remain mindful of the ongoing challenges facing both the UK’s general economic landscape and the UK construction sector which continues to present notable challenges, requiring us to sharpen our focus on efficiency, innovation and market positioning. We consider the Group well positioned to navigate these challenges through a combination of strategic focus, operational agility, and a commitment to excellence. While market conditions are expected to test the resilience of the construction sector, we take pride in our continued ability to adapt to the challenges ahead of us. Our commitment to quality remains unwavering and we take pride in our mission statement: “Only through first quality and service can we become the customers’ first choice.”

Looking ahead, even as we reflect on the continued challenges within the UK and Ireland across the business sectors we operate in, we remain optimistic about the Group’s performance over the year ahead. Our experiences over recent years, coupled with our ability to adapt and persevere, our strong balance sheet, robust order book, minimal debt, and the unity of our core management teams, give us confidence in our ability to overcome any challenges we may face. Additionally, the Group’s broader diversification of core activities has further strengthened our resilience, enabling us to adapt and thrive in a challenging market.

Principal risks and uncertainties

Core risks and uncertainties

The business' activities expose it to a variety of financial risks. Risk management is governed by the Group’s operational policies, which are subject to periodic review by the board of directors.

 

The business' principal financial instruments comprise bank balances, trade debtors, trade creditors, loans to the business and finance lease agreements. The main purpose of these instruments is to finance the business' operations.

 

Price and Innovation Risk:

The Group operates in highly competitive markets. Significant product innovation, technical advances or the intensification of price competition could adversely affect the results of the Group. The Kenai Group invests in significant training of its staff to ensure that the Group is well placed to provide a choice for customers, to ensure they remain aware of their options and are satisfied with the level of service the Group provides. The Group also continually works to streamline its cost base to ensure that it remains competitive.

KENAI HOLDINGS LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 4 -

Credit Risk:

Managing cash flow and credit risk continues to be an ongoing priority and as such the Group has well established policies and procedures that require appropriate credit checks on potential customers before orders are accepted. The Group maintains a policy of obtaining credit insurance where possible, and the amount of exposure to any individual customer is subject to that insurance limit which is reassessed at least annually.

The amounts presented in the balance sheet for Trade debtors are net of allowances made for doubtful debtors.

Liquidity Risk:

Effective management of cash and working capital are a key ongoing priority, and the Group has strong cash reserves as well as an intercompany facility that should be sufficient to ensure funds are always available to fund its operations as well as to take advantage of any opportunities that may arise.

In respect of bank balances, liquidity is managed by maintaining a balance between continuity of funding, flexibility, and maximising returns. All of the Group’s cash balances are held in such a way that achieves a competitive rate of interest.

Health and Safety:

Management maintains a close review on the latest health and safety regulations and are committed to updating procedures accordingly. The responsibility for safety at work rests upon the senior management teams and the Group ensures all policies and procedures are properly communicated and adhered to at all levels. Regular training is provided to ensure all staff understand their need to take proper care for their own and others’ health and safety.

Employees:

We are an equal opportunities employer and are committed to encouraging diversity and eliminating discrimination in both our role as an employer and as a provider of services. The Group’s reputation is dependent on the quality, effectiveness, and skill base of its employees. We aim to create a culture that respects and values each other’s differences, which promotes dignity, equality, and diversity and that encourages individuals to develop and maximise their true potential. We are committed, wherever practicable, to achieving and maintaining a workforce that broadly reflects the communities in which we operate.

Employment of disabled persons:

It is the policy that disabled persons shall be considered for employment, career development and promotion based on their aptitude and abilities in common with all employees.

Employee involvement:

The Directors recognise the importance of good communication and relations with employees and management is encouraged to adopt employee consultations.

 

KENAI HOLDINGS LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 5 -

Section 172 Statement:

The Directors of Kenai Holdings Limited acknowledge their duty to promote the success of the company for the benefit of its members as a whole, as required under section 172 of the Companies Act 2006. In doing so, they have regard to the interests of the company’s stakeholders, including employees, customers, suppliers, and the communities in which the company operates, as well as the impact of the company’s activities on the environment.

Stakeholder Engagement

Employees: The Directors recognise that employees are vital to the success of the group. Regular communication is maintained through meetings, internal memos and group discussions, ensuring transparency and fostering a collaborative culture. During the year, initiatives were undertaken to support employee well-being, professional development, and diversity and inclusion.

Customers: The group’s commitment to providing high-quality products and services has been central to maintaining strong relationships with customers. Feedback mechanisms, including surveys and regular reviews, have been implemented to understand and respond to customer needs effectively.

Suppliers: The company works closely with its supply chain partners to build long-term relationships based on mutual trust and sustainability. Ethical sourcing policies and regular audits ensure compliance with the group’s standards and support for shared goals.

Community: The group actively engages with the communities in which it operates, supporting local initiatives and contributing to community development projects. This year, the company partnered with local charities to promote social and economic development.

Decision-Making and Long-Term Impact

The Directors have taken steps to ensure that their decisions consider long-term implications and align with the Group’s strategic objectives. This approach includes evaluating potential risks and opportunities in the context of market trends, economic conditions, and regulatory changes within the construction industry. Key decisions during the year included investments in sustainable technologies, measures to reduce the Group’s carbon footprint, and progress towards attaining ISO 14001 across the Group companies.

Environmental, Social, and Governance (ESG) Considerations

The Board is committed to integrating ESG principles into the company’s operations. This year, the group enhanced its environmental initiatives by improving waste management processes, increasing energy efficiency, prioritising the use of sustainable materials in construction projects, as part of our ISO 14001 initiatives. Social and governance practices were also reviewed to ensure adherence to the highest standards of ethical conduct and corporate governance.

KENAI HOLDINGS LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 6 -

Looking Ahead

The Directors remain focused on driving sustainable growth while upholding their responsibilities under section 172. They will continue to engage with stakeholders, foster innovation, and adapt to the evolving needs of the markets in which we trade, ensuring the group’s success for the benefit of all its stakeholders. This is not simply limited to its shareholders but includes its employees, customers, key supply chain partners as well as responsibility to the environment.

On behalf of the board

N R Beatson
Director
19 December 2024
KENAI HOLDINGS LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 MARCH 2024
- 7 -

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

Principal activities

The principal activity of the company and group continued to be that of the supply and installation of composite steel floor decking systems. In addition the group designs, details, supplies and installs light gauge structural steel frames for the construction industry.

Results and dividends

The results for the year are set out on page 14.

Ordinary dividends were paid amounting to £250,000. The directors do not recommend payment of a further dividend.

Directors

The directors who held office during the year and up to the date of signature of the financial statements were as follows:

M W Smith
N R Beatson
L J Smith
Auditor

The auditor, UHY Hacker Young, is deemed to be reappointed under section 487(2) of the Companies Act 2006.

Energy and carbon report

The energy and carbon summary covers Scope 1 and Scope 2 emissions for the year ended 31st March 2024 in respect of all group companies, and the equity share of emissions in joint venture entities. The footprint is calculated in accordance with the Greenhouse Gas (GHG) Protocol. All conversions are per the conversion factors issued by the Department for Business, Energy and Industrial Strategy (BEIS).

2024
2023
Energy consumption
kWh
kWh
Aggregate of energy consumption in the year
3,735,207
4,003,485
KENAI HOLDINGS LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 8 -
2024
2023
Emissions of CO2 equivalent
metric tonnes
metric tonnes
Scope 1 - direct emissions
- Gas combustion
11.69
12.67
- Fuel consumed for owned transport
615.12
646.12
- Fuel consumed for site tools and mobile equipment
71.82
83.82
- Process emissions
51.63
85.17
750.26
827.78
Scope 2 - indirect emissions
- Electricity purchased
110.36
94.14
Scope 3 - other indirect emissions
- Fuel consumed for transport not owned by the group
-
-
Total gross emissions
860.62
921.92
Intensity ratio
Tonnes CO2e per £m of turnover
10.77
9.92
Quantification and reporting methodology

The group has followed the 2019 HM Government Environmental Reporting Guidelines. The group has also used the GHG Reporting Protocol – Corporate Standard and have used the 2023 UK Government’s Conversion Factors for Company Reporting

Intensity measurement

The chosen intensity measurement ratio is calculated using the industry standard of CO2e per £1m turnover, and the turnover included in that calculation includes the equity share of joint venture turnover for fair comparison.

Statement of disclosure to auditor

So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the auditor of the company is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the auditor of the company is aware of that information.

On behalf of the board
N R Beatson
Director
19 December 2024
KENAI HOLDINGS LIMITED
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 31 MARCH 2024
- 9 -

The directors are responsible for preparing the Annual Report and the financial statements in accordance with applicable law and regulations.

 

Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the group and company, and of the profit or loss of the group for that period. In preparing these financial statements, the directors are required to:

 

 

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the group’s and company’s transactions and disclose with reasonable accuracy at any time the financial position of the group and company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the group and company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

KENAI HOLDINGS LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF KENAI HOLDINGS LIMITED
- 10 -
Opinion

We have audited the financial statements of Kenai Holdings Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 March 2024 which comprise the group profit and loss account, the group statement of comprehensive income, the group balance sheet, the company balance sheet, the group statement of changes in equity, the company statement of changes in equity, the group statement of cash flows, the company statement of cash flows and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

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 group and parent company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

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

 

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the group's and 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.

KENAI HOLDINGS LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF KENAI HOLDINGS LIMITED
- 11 -

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. 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.

Opinions on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of our audit:

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 their 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:

Responsibilities of directors

As explained more fully in the directors' responsibilities statement, 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 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 parent company or to cease operations, or have no realistic alternative but to do so.

KENAI HOLDINGS LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF KENAI HOLDINGS LIMITED
- 12 -
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.

 

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.

 

Based on our understanding of the company and the industry in which it operates, we identified that the principal risks of non-compliance with laws and regulations related to the acts by the company, which were contrary to applicable laws and regulations including fraud, and we considered the extent to which non-compliance might have a material effect on the financial statements. We also considered those laws and regulations that have a direct impact on the preparation of the financial statements. We evaluated management's incentives and opportunities for fraudulent manipulation of the financial statements (including the risk of override of controls), and determined that the principal risks were related to recognition of revenue and profit.

 

Audit procedures performed included; review of journals, testing of cut off, testing of the validity of long term contract balances, testing the validity of development balances, review of the bad debt provisions, testing the validity of trade debtors, and testing creditors for understatement. The directors' rationale behind the recognition of revenue was reviewed to confirm the accounting treatment was relevant and appropriate.

 

There are inherent limitations in the audit procedures described above. Also, the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentations, or through collusion.

A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.

KENAI HOLDINGS LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF KENAI HOLDINGS LIMITED
- 13 -

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 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.

Michael Mealing (Senior Statutory Auditor)
For and on behalf of UHY Hacker Young
19 December 2024
Chartered Accountants
Statutory Auditor
6 Broadfield Court
Broadfield Way
Sheffield
S8 0XF
KENAI HOLDINGS LIMITED
GROUP PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 31 MARCH 2024
- 14 -
2024
2023
Notes
£
£
Turnover
3
60,146,820
73,155,070
Cost of sales
(49,245,129)
(61,944,842)
Gross profit
10,901,691
11,210,228
Administrative expenses
(9,383,033)
(8,857,125)
Other operating income
15,179
7,883,063
Operating profit
4
1,533,837
10,236,166
Share of profits of joint ventures
3,008,395
727,885
Interest receivable and similar income
8
389,212
147,321
Interest payable and similar expenses
9
(46,782)
(42,249)
Fair value gains and losses on investment properties
14
3,803,073
-
0
Profit/(loss) on disposal of operations
- Part disposal of interest in group undertaking
-
879,302
Profit before taxation
8,687,735
11,948,425
Tax on profit
10
(1,520,056)
(2,470,676)
Profit for the financial year
7,167,679
9,477,749
Profit for the financial year is attributable to:
- Owners of the parent company
7,168,758
9,478,376
- Non-controlling interests
(1,079)
(627)
7,167,679
9,477,749
KENAI HOLDINGS LIMITED
GROUP STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 MARCH 2024
- 15 -
2024
2023
£
£
Profit for the year
7,167,679
9,477,749
Other comprehensive income
Revaluation of tangible fixed assets
30,039
-
0
Total comprehensive income for the year
7,197,718
9,477,749
Total comprehensive income for the year is attributable to:
- Owners of the parent company
7,198,797
9,478,376
- Non-controlling interests
(1,079)
(627)
7,197,718
9,477,749
KENAI HOLDINGS LIMITED
GROUP BALANCE SHEET
AS AT
31 MARCH 2024
31 March 2024
- 16 -
2024
2023
Notes
£
£
£
£
Fixed assets
Goodwill
12
112,859
195,797
Other intangible assets
12
59,856
71,069
Total intangible assets
172,715
266,866
Tangible assets
13
5,581,467
7,893,215
Investment property
14
6,800,000
-
0
Investments
15
13,520,394
10,642,954
26,074,576
18,803,035
Current assets
Stocks
18
1,082,036
2,875,861
Debtors
19
15,844,882
12,467,356
Cash at bank and in hand
11,692,581
16,987,134
28,619,499
32,330,351
Creditors: amounts falling due within one year
20
(12,963,175)
(17,273,501)
Net current assets
15,656,324
15,056,850
Total assets less current liabilities
41,730,900
33,859,885
Creditors: amounts falling due after more than one year
21
(929,368)
(1,091,093)
Provisions for liabilities
Deferred tax liability
24
1,231,623
146,601
(1,231,623)
(146,601)
Net assets
39,569,909
32,622,191
Capital and reserves
Called up share capital
26
360
360
Revaluation reserve
30,039
-
0
Profit and loss reserves
39,541,216
32,622,458
Equity attributable to owners of the parent company
39,571,615
32,622,818
Non-controlling interests
(1,706)
(627)
39,569,909
32,622,191
KENAI HOLDINGS LIMITED
GROUP BALANCE SHEET (CONTINUED)
AS AT
31 MARCH 2024
31 March 2024
- 17 -
The financial statements were approved by the board of directors and authorised for issue on 19 December 2024 and are signed on its behalf by:
19 December 2024
N R Beatson
Director
Company registration number 08727492 (England and Wales)
KENAI HOLDINGS LIMITED
COMPANY BALANCE SHEET
AS AT 31 MARCH 2024
31 March 2024
- 18 -
2024
2023
Notes
£
£
£
£
Fixed assets
Tangible assets
13
675,372
293,945
Investments
15
120
120
675,492
294,065
Current assets
Stocks
18
431,953
431,953
Debtors
19
13,994,059
11,351,338
Cash at bank and in hand
2,487,238
4,039,031
16,913,250
15,822,322
Creditors: amounts falling due within one year
20
(236,766)
(723,092)
Net current assets
16,676,484
15,099,230
Total assets less current liabilities
17,351,976
15,393,295
Creditors: amounts falling due after more than one year
21
(246,581)
(368,060)
Provisions for liabilities
Deferred tax liability
24
96,000
-
0
(96,000)
-
Net assets
17,009,395
15,025,235
Capital and reserves
Called up share capital
26
360
360
Profit and loss reserves
17,009,035
15,024,875
Total equity
17,009,395
15,025,235

As permitted by s408 Companies Act 2006, the company has not presented its own profit and loss account and related notes. The company’s profit for the year was £2,234,160 (2023 - £13,157,798 profit).

KENAI HOLDINGS LIMITED
COMPANY BALANCE SHEET (CONTINUED)
AS AT 31 MARCH 2024
31 March 2024
- 19 -
The financial statements were approved by the board of directors and authorised for issue on 19 December 2024 and are signed on its behalf by:
19 December 2024
N R Beatson
Director
Company registration number 08727492 (England and Wales)
KENAI HOLDINGS LIMITED
GROUP STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 MARCH 2024
- 20 -
Share capital
Revaluation reserve
Capital redemption reserve
Profit and loss reserves
Total controlling interest
Non-controlling interest
Total
Notes
£
£
£
£
£
£
£
Balance at 1 April 2022
360
-
0
160
23,644,082
23,644,602
-
23,644,602
Year ended 31 March 2023:
Profit and total comprehensive income
-
-
-
9,478,376
9,478,376
(627)
9,477,749
Dividends
11
-
-
-
(500,000)
(500,000)
-
(500,000)
Other movements
-
-
(160)
-
(160)
-
(160)
Balance at 31 March 2023
360
-
0
-
0
32,622,458
32,622,818
(627)
32,622,191
Year ended 31 March 2024:
Profit for the year
-
-
-
7,168,758
7,168,758
(1,079)
7,167,679
Other comprehensive income:
Revaluation of tangible fixed assets
-
30,039
-
-
30,039
-
30,039
Total comprehensive income
-
30,039
-
7,168,758
7,198,797
(1,079)
7,197,718
Dividends
11
-
-
-
(250,000)
(250,000)
-
(250,000)
Balance at 31 March 2024
360
30,039
-
0
39,541,216
39,571,615
(1,706)
39,569,909
KENAI HOLDINGS LIMITED
COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 MARCH 2024
- 21 -
Share capital
Profit and loss reserves
Total
Notes
£
£
£
Balance at 1 April 2022
360
2,367,077
2,367,437
Year ended 31 March 2023:
Profit and total comprehensive income for the year
-
13,157,798
13,157,798
Dividends
11
-
(500,000)
(500,000)
Balance at 31 March 2023
360
15,024,875
15,025,235
Year ended 31 March 2024:
Profit and total comprehensive income
-
2,234,160
2,234,160
Dividends
11
-
(250,000)
(250,000)
Balance at 31 March 2024
360
17,009,035
17,009,395
KENAI HOLDINGS LIMITED
GROUP STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 MARCH 2024
- 22 -
2024
2023
Notes
£
£
£
£
Cash flows from operating activities
Cash (absorbed by)/generated from operations
33
(3,307,001)
10,569,226
Interest paid
(46,782)
(42,249)
Income taxes paid
(618,529)
(1,099,767)
Net cash (outflow)/inflow from operating activities
(3,972,312)
9,427,210
Investing activities
Purchase of intangible assets
(2,875)
(4,338)
Purchase of tangible fixed assets
(1,027,351)
(1,817,106)
Proceeds on disposal of tangible fixed assets
52,438
4,571
Interest received
170,098
239,771
Other investment income received
88,159
-
Net cash used in investing activities
(719,531)
(1,577,102)
Financing activities
Proceeds from borrowings
-
2,438,461
Repayment of borrowings
(307,692)
(342,952)
Repayment of bank loans
(22,332)
(1,046,868)
Payment of finance leases obligations
(22,686)
(10,184)
Dividends paid to equity shareholders
(250,000)
(500,000)
Net cash (used in)/generated from financing activities
(602,710)
538,457
Net (decrease)/increase in cash and cash equivalents
(5,294,553)
8,388,565
Cash and cash equivalents at beginning of year
16,987,134
8,598,569
Cash and cash equivalents at end of year
11,692,581
16,987,134
KENAI HOLDINGS LIMITED
COMPANY STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 MARCH 2024
- 23 -
2024
2023
Notes
£
£
£
£
Cash flows from operating activities
Cash absorbed by operations
34
(3,748,311)
(10,586,087)
Interest paid
(6,660)
(5,664)
Income taxes paid
(49,986)
(37,155)
Net cash outflow from operating activities
(3,804,957)
(10,628,906)
Investing activities
Proceeds from disposal of business
-
0
6,871,199
Purchase of tangible fixed assets
(517,010)
(83,237)
Proceeds from disposal of tangible fixed assets
31,432
4,000
Proceeds from disposal of subsidiaries
-
0
240
Proceeds from disposal of joint ventures
-
0
(120)
Interest received
38,673
-
0
Dividends received
2,600,000
6,284,321
Other income received from investments
350,069
33,078
Net cash generated from investing activities
2,503,164
13,109,481
Financing activities
Proceeds from borrowings
-
0
1,500,000
Dividends paid to equity shareholders
(250,000)
(500,000)
Net cash (used in)/generated from financing activities
(250,000)
1,000,000
Net (decrease)/increase in cash and cash equivalents
(1,551,793)
3,480,575
Cash and cash equivalents at beginning of year
4,039,031
558,456
Cash and cash equivalents at end of year
2,487,238
4,039,031
KENAI HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024
- 24 -
1
Accounting policies
Company information

Kenai Holdings Limited (“the company”) is a private limited company domiciled and incorporated in England and Wales. The registered office is Millennium House, Severnlink Distribution Centre, Newhouse Farm Industrial Estate, Mathern, Chepstow, Monmouthshire, NP16 6UN.

 

The group consists of Kenai Holdings Limited and all of its subsidiaries.

1.1
Accounting convention

These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.

The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.

The financial statements have been prepared under the historical cost convention, [modified to include the revaluation of freehold properties and to include investment properties and certain financial instruments at fair value]. The principal accounting policies adopted are set out below.

1.2
Business combinations

In the parent company financial statements, the cost of a business combination is the fair value at the acquisition date of the assets given, equity instruments issued and liabilities incurred or assumed, plus costs directly attributable to the business combination. The excess of the cost of a business combination over the fair value of the identifiable assets, liabilities and contingent liabilities acquired is recognised as goodwill. The cost of the combination includes the estimated amount of contingent consideration that is probable and can be measured reliably, and is adjusted for changes in contingent consideration after the acquisition date. Provisional fair values recognised for business combinations in previous periods are adjusted retrospectively for final fair values determined in the 12 months following the acquisition date. Investments in subsidiaries, joint ventures and associates are accounted for at cost less impairment.

 

Deferred tax is recognised on differences between the value of assets (other than goodwill) and liabilities recognised in a business combination accounted for using the purchase method and the amounts that can be deducted or assessed for tax, considering the manner in which the carrying amount of the asset or liability is expected to be recovered or settled. The deferred tax recognised is adjusted against goodwill or negative goodwill.

KENAI HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
1
Accounting policies
(Continued)
- 25 -
1.3
Basis of consolidation

The consolidated financial statements incorporate those of Kenai Holdings Limited and all of its subsidiaries (ie entities that the group controls through its power to govern the financial and operating policies so as to obtain economic benefits). Subsidiaries acquired during the year are consolidated using the purchase method. Their results are incorporated from the date that control passes.

 

All financial statements are made up to 31 March 2024. Where necessary, adjustments are made to the financial statements of subsidiaries to bring the accounting policies used into line with those used by other members of the group.

 

All intra-group transactions, balances and unrealised gains on transactions between group companies are eliminated on consolidation. Unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred.

Entities in which the group holds an interest and which are jointly controlled by the group and one or more other venturers under a contractual arrangement are treated as joint ventures. Entities other than subsidiary undertakings or joint ventures, in which the group has a participating interest and over whose operating and financial policies the group exercises a significant influence, are treated as associates.

Investments in joint ventures and associates are carried in the group balance sheet at cost plus post-acquisition changes in the group’s share of the net assets of the entity, less any impairment in value. The carrying values of investments in joint ventures and associates include acquired goodwill.

 

If the group’s share of losses in a joint venture or associate equals or exceeds its investment in the joint venture or associate, the group does not recognise further losses unless it has incurred obligations to do so or has made payments on behalf of the joint venture or associate.

 

Unrealised gains arising from transactions with joint ventures and associates are eliminated to the extent of the group’s interest in the entity.

1.4
Going concern

At the time of approving the financial statements, the directors have a reasonable expectation that the group has adequate resources to continue in operational existence for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.

1.5
Turnover

Turnover represents amounts chargeable, net of value added tax in respect of the manufacture and sale of steel floor decks, buildings and other construction products and the provision of floor decking installation and other construction services for customers. This includes amounts invoiced and applied for by the year end and takes into account any work done and not yet billed to customers at the balance sheet date.

Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer (usually on dispatch of the goods), the amount of revenue can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the entity and the costs incurred or to be incurred in respect of the transaction can be measured reliably.

KENAI HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
1
Accounting policies
(Continued)
- 26 -
1.6
Intangible fixed assets - goodwill

Goodwill represents the excess of the cost of acquisition of a business over the fair value of net assets acquired. It is initially recognised as an asset at cost and is subsequently measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is considered to have a finite useful life and is amortised on a systematic basis over its expected life.

1.7
Intangible fixed assets other than goodwill

Intangible assets acquired separately from a business are recognised at cost and are subsequently measured at cost less accumulated amortisation and accumulated impairment losses.

 

Intangible assets acquired on business combinations are recognised separately from goodwill at the acquisition date where it is probable that the expected future economic benefits that are attributable to the asset will flow to the entity and the fair value of the asset can be measured reliably; the intangible asset arises from contractual or other legal rights; and the intangible asset is separable from the entity.

Amortisation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

Software
10% straight line
1.8
Tangible fixed assets

Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.

Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

Freehold land and buildings
2% straight line
Leasehold land and buildings
2% straight line
Plant and equipment
25% straight line
Fixtures and fittings
10% to 33% straight line
Computers
10% to 33% straight line and 10% to 60% reducing balance
Motor vehicles
25% reducing balance

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in the profit and loss account.

1.9
Investment property

Investment property, which is property held to earn rentals and/or for capital appreciation, is initially recognised at cost, which includes the purchase cost and any directly attributable expenditure. Subsequently it is measured at fair value at the reporting end date. Changes in fair value are recognised in profit or loss.

KENAI HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
1
Accounting policies
(Continued)
- 27 -
1.10
Fixed asset investments

Equity investments are measured at fair value through profit or loss, except for those equity investments that are not publicly traded and whose fair value cannot otherwise be measured reliably, which are recognised at cost less impairment until a reliable measure of fair value becomes available.

 

In the parent company financial statements, investments in subsidiaries, associates and jointly controlled entities are initially measured at cost and subsequently measured at cost less any accumulated impairment losses.

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

Entities in which the group has a long term interest and shares control under a contractual arrangement are classified as jointly controlled entities.

1.11
Impairment of fixed assets

At each reporting period end date, the group reviews the carrying amounts of its tangible and intangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.

 

The carrying amount of the investments accounted for using the equity method is tested for impairment as a single asset. Any goodwill included in the carrying amount of the investment is not tested separately for impairment.

Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.

 

If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.

Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.

KENAI HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
1
Accounting policies
(Continued)
- 28 -
1.12
Stocks

Stocks and work in progress are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition.

At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.

1.13
Construction contracts

Where the outcome of a construction contract can be estimated reliably, revenue and costs are recognised by reference to the stage of completion of the contract activity at the reporting end date. Variations in contract work, claims and incentive payments are included to the extent that the amount can be measured reliably and its receipt is considered probable.

 

When it is probable that total contract costs will exceed total contract turnover, the expected loss is recognised as an expense immediately.

 

Where the outcome of a construction contract cannot be estimated reliably, contract revenue is recognised to the extent of contract costs incurred where it is probable that they will be recoverable. Contract costs are recognised as expenses in the period in which they are incurred. When costs incurred in securing a contract are recognised as an expense in the period in which they are incurred, they are not included in contract costs if the contract is obtained in a subsequent period.

The “percentage of completion method” is used to determine the appropriate amount to recognise in a given period.

1.14
Cash and cash equivalents

Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

1.15
Financial instruments

The group has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.

 

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

 

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

KENAI HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
1
Accounting policies
(Continued)
- 29 -
Basic financial assets

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

Other financial assets

Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.

Impairment of financial assets

Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.

 

Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.

 

If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.

Derecognition of financial assets

Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the group transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.

Classification of financial liabilities

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

KENAI HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
1
Accounting policies
(Continued)
- 30 -
Basic financial liabilities

Basic financial liabilities, including creditors, bank loans and loans from fellow group companies, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

 

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

 

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

Derecognition of financial liabilities

Financial liabilities are derecognised when the group's contractual obligations expire or are discharged or cancelled.

1.16
Equity instruments

Equity instruments issued by the group are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the group.

1.17
Taxation

The tax expense represents the sum of the tax currently payable and deferred tax.

Current tax

The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The group’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.

KENAI HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
1
Accounting policies
(Continued)
- 31 -
Deferred tax

Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.

 

The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset if, and only if, there is a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.

1.18
Employee benefits

The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.

 

The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.

 

Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

1.19
Retirement benefits

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

1.20
Leases

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

 

Assets held under finance leases are recognised as assets at the lower of the assets fair value at the date of inception and the present value of the minimum lease payments. The related liability is included in the balance sheet as a finance lease obligation. Lease payments are treated as consisting of capital and interest elements. The interest is charged to profit or loss so as to produce a constant periodic rate of interest on the remaining balance of the liability.

Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leased asset are consumed.

Rental income from operating leases is recognised on a straight line basis over the term of the relevant lease. Initial direct costs incurred in negotiating and arranging an operating lease are added to the carrying amount of the leased asset and recognised on a straight line basis over the lease term.

KENAI HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
1
Accounting policies
(Continued)
- 32 -
1.21
Government grants

Government grants are recognised at the fair value of the asset received or receivable when there is reasonable assurance that the grant conditions will be met and the grants will be received.

 

A grant that specifies performance conditions is recognised in income when the performance conditions are met. Where a grant does not specify performance conditions it is recognised in income when the proceeds are received or receivable. A grant received before the recognition criteria are satisfied is recognised as a liability.

1.22
Foreign exchange

Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation in the period are included in profit or loss.

2
Judgements 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 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.

Key sources of estimation uncertainty

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

Depreciation

The depreciation charges depend on the directors' estimation of the useful economic lives of the company's assets and residual values. The directors have used depreciation rates and methods which they estimate result in depreciation charges which write off the cost less estimated residual value over the useful economic life of the asset.

Long term contracts

The directors estimate the degree of completion, expected further costs and foreseeable losses with regards to long term contracts.

Revaluation of fixed assets

In applying the Company's accounting policy for the valuation of fixed assets the directors have used an expert to provide an appropriate annual valuation of the helicopters. This valuation involves an estimate of the market value of the helicopters and is subject to significant inherent uncertainties.

KENAI HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 33 -
3
Turnover
2024
2023
£
£
Turnover analysed by geographical market
United Kingdom & the Channel Islands
59,023,140
71,553,831
Europe
1,082,492
1,444,963
Rest of World
41,188
156,276
60,146,820
73,155,070
4
Operating profit
2024
2023
£
£
Operating profit for the year is stated after charging/(crediting):
Exchange (gains)/losses
(6,298)
10
Government grants
(11,129)
(22,372)
Depreciation of owned tangible fixed assets
424,857
373,894
Depreciation of tangible fixed assets held under finance leases
2,158
-
(Profit)/loss on disposal of tangible fixed assets
(1,003)
2,271
Amortisation of intangible assets
97,026
96,491
Operating lease charges
697,346
607,571
5
Auditor's remuneration
2024
2023
Fees payable to the company's auditor and associates:
£
£
For audit services
Audit of the financial statements of the group and company
11,400
10,500
Audit of the financial statements of the company's subsidiaries
30,844
51,746
42,244
62,246
KENAI HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 34 -
6
Employees

The average monthly number of persons (including directors) employed by the group and company during the year was:

Group
Company
2024
2023
2024
2023
Number
Number
Number
Number
Management
27
27
3
3
Administration & clerical
67
67
-
-
Production
77
90
-
-
Total
171
184
3
3

Their aggregate remuneration comprised:

Group
Company
2024
2023
2024
2023
£
£
£
£
Wages and salaries
7,383,975
7,782,702
30,000
20,000
Social security costs
682,162
756,656
7,645
7,265
Pension costs
441,086
497,015
-
0
-
0
8,507,223
9,036,373
37,645
27,265
7
Directors' remuneration
2024
2023
£
£
Remuneration for qualifying services
179,378
172,360
Company pension contributions to defined contribution schemes
30,000
35,000
209,378
207,360
KENAI HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 35 -
8
Interest receivable and similar income
2024
2023
£
£
Interest income
Interest on bank deposits
164,843
60,516
Other interest income
5,255
70,266
Total interest revenue
170,098
130,782
Income from fixed asset investments
Income from participating interests - joint ventures
219,114
16,539
Total income
389,212
147,321
2024
2023
Investment income includes the following:
£
£
Interest on financial assets not measured at fair value through profit or loss
164,843
60,516
9
Interest payable and similar expenses
2024
2023
£
£
Interest on financial liabilities measured at amortised cost:
Interest on bank overdrafts and loans
34,483
17,127
Other interest on financial liabilities
4,300
23,263
38,783
40,390
Other finance costs:
Interest on finance leases and hire purchase contracts
4,301
1,859
Other interest
3,698
-
Total finance costs
46,782
42,249
10
Taxation
2024
2023
£
£
Current tax
UK corporation tax on profits for the current period
616,750
774,433
Adjustments in respect of prior periods
(181,716)
(25,098)
Total current tax
435,034
749,335
KENAI HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
10
Taxation
2024
2023
£
£
(Continued)
- 36 -
Deferred tax
Origination and reversal of timing differences
134,254
1,721,341
Revaluations
950,768
-
0
Total deferred tax
1,085,022
1,721,341
Total tax charge
1,520,056
2,470,676

The actual charge for the year can be reconciled to the expected charge for the year based on the profit or loss and the standard rate of tax as follows:

2024
2023
£
£
Profit before taxation
8,687,735
11,948,425
Expected tax charge based on the standard rate of corporation tax in the UK of 25.00% (2023: 19.00%)
2,171,934
2,270,201
Tax effect of expenses that are not deductible in determining taxable profit
60,672
(1,291,520)
Gains not taxable
-
0
(1,305,527)
Tax effect of utilisation of tax losses not previously recognised
1,012
(188)
Unutilised tax losses carried forward
78,735
80,676
Effect of change in corporation tax rate
-
(1,992)
Group relief
(6,369)
-
0
Permanent capital allowances in excess of depreciation
32,619
2,186
Depreciation on assets not qualifying for tax allowances
-
0
2,373
Effect of revaluations of investments
-
0
1,754,604
Other permanent differences
8,857
-
0
Under/(over) provided in prior years
(181,716)
(25,099)
Deferred tax adjustments in respect of prior years
(6,126)
(8,187)
Deferred tax not provided
9,396
(11,254)
Consolidation adjustments
(648,958)
1,018,064
Deferred tax adjustments for prior years
-
0
(699)
Enhanced capital allowances
-
(12,962)
Taxation charge
1,520,056
2,470,676
KENAI HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 37 -
11
Dividends
2024
2023
Recognised as distributions to equity holders:
£
£
Interim paid
250,000
500,000
12
Intangible fixed assets
Group
Goodwill
Software
Total
£
£
£
Cost
At 1 April 2023
1,636,883
120,611
1,757,494
Additions
-
0
2,875
2,875
At 31 March 2024
1,636,883
123,486
1,760,369
Amortisation and impairment
At 1 April 2023
1,441,086
49,542
1,490,628
Amortisation charged for the year
82,938
14,088
97,026
At 31 March 2024
1,524,024
63,630
1,587,654
Carrying amount
At 31 March 2024
112,859
59,856
172,715
At 31 March 2023
195,797
71,069
266,866
The company had no intangible fixed assets at 31 March 2024 or 31 March 2023.
KENAI HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 38 -
13
Tangible fixed assets
Group
Freehold land and buildings
Leasehold land and buildings
Plant and equipment
Fixtures and fittings
Computers
Motor vehicles
Total
£
£
£
£
£
£
£
Cost
At 1 April 2023
2,996,927
1,466,103
3,645,060
739,258
61,986
1,338,763
10,248,097
Additions
-
0
29,310
706,098
89,459
2,594
306,129
1,133,590
Disposals
-
0
(7,547)
(60,335)
(9,887)
-
0
(45,141)
(122,910)
Revaluation
-
0
-
0
30,039
-
0
-
0
-
0
30,039
Transfers
(2,996,927)
-
0
-
0
-
0
-
0
-
0
(2,996,927)
At 31 March 2024
-
0
1,487,866
4,320,862
818,830
64,580
1,599,751
8,291,889
Depreciation and impairment
At 1 April 2023
-
0
157,497
700,125
511,163
42,814
943,283
2,354,882
Depreciation charged in the year
-
0
29,543
188,544
82,824
7,224
118,880
427,015
Eliminated in respect of disposals
-
0
(1,513)
(42,804)
(7,098)
-
0
(20,060)
(71,475)
At 31 March 2024
-
0
185,527
845,865
586,889
50,038
1,042,103
2,710,422
Carrying amount
At 31 March 2024
-
0
1,302,339
3,474,997
231,941
14,542
557,648
5,581,467
At 31 March 2023
2,996,927
1,308,606
2,944,935
228,095
19,172
395,480
7,893,215
KENAI HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 39 -
Company
Leasehold land and buildings
Plant and equipment
Fixtures and fittings
Motor vehicles
Total
£
£
£
£
£
Cost
At 1 April 2023
61,492
60,768
18,728
225,589
366,577
Additions
-
0
387,900
5,691
123,419
517,010
Disposals
-
0
-
0
(1,220)
(34,008)
(35,228)
At 31 March 2024
61,492
448,668
23,199
315,000
848,359
Depreciation and impairment
At 1 April 2023
8,848
11,269
5,081
47,434
72,632
Depreciation charged in the year
8,873
55,538
5,382
41,094
110,887
Eliminated in respect of disposals
-
0
-
0
(591)
(9,941)
(10,532)
At 31 March 2024
17,721
66,807
9,872
78,587
172,987
Carrying amount
At 31 March 2024
43,771
381,861
13,327
236,413
675,372
At 31 March 2023
52,644
49,499
13,647
178,155
293,945
14
Investment property
Group
Company
2024
2024
£
£
Fair value
At 1 April 2023
-
-
Transfers to held for sale
2,996,927
-
Net gains or losses through fair value adjustments
3,803,073
-
At 31 March 2024
6,800,000
-

The directors are of the opinion that the market value of the investment property at the balance sheet date is £6,800,000.

The carrying value of land and buildings comprises:

Group
Company
2024
2023
2024
2023
£
£
£
£
Freehold
6,800,000
-
-
-
KENAI HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 40 -
15
Fixed asset investments
Group
Company
2024
2023
2024
2023
Notes
£
£
£
£
Investments in joint ventures
17
13,520,394
10,642,954
120
120
Movements in fixed asset investments
Group
Shares in joint ventures
£
Cost or valuation
At 1 April 2023
10,642,954
Share of profit from joint ventures
2,877,440
At 31 March 2024
13,520,394
Carrying amount
At 31 March 2024
13,520,394
At 31 March 2023
10,642,954
Movements in fixed asset investments
Company
Shares in joint ventures
£
Cost or valuation
At 1 April 2023 and 31 March 2024
120
Carrying amount
At 31 March 2024
120
At 31 March 2023
120
16
Subsidiaries

Details of the company's subsidiaries at 31 March 2024 are as follows:

KENAI HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
16
Subsidiaries
(Continued)
- 41 -
Name of undertaking
Registered office
Nature of business
Class of
% Held
shares held
Direct
Northern Steel Decking Limited
As per parent company
Install composite floor decking and concrete slabs
Ordinary
100
Northern Steel Decking Installations Limited
As per parent company
Dormant
Ordinary
100
Studwelders Composite Floor Decks Limited
As per parent company
Install composite floor decking and concrete slabs
Ordinary
100
The Bolted Frame Company Limited
As per parent company
Assembly of steel frames for construction
Ordinary
90
Met Structures Limited
As per parent company
Steel framing design, supply and installation
Ordinary
90
Construction Metal Sales Limited
As per parent company
Distributing construction metal products
Ordinary
100
Whirlybirds Helicopters Limited
As per parent company
Aviation
Ordinary
100
Red Dot 2 Developments Limited
As per parent company
Development company
Ordinary
100
Brother Bear Farm Limited
As per parent company
Farming
Ordinary
100
Speedy Deck Limited
As per parent company
Dormant
Ordinary
100
The aggregate capital and reserves and the result for the year of the subsidiaries noted above was as follows:
Name of undertaking
Capital and Reserves
Profit/(Loss)
£
£
Northern Steel Decking Limited
3,413,741
980,066
Northern Steel Decking Installations Limited
1,000
-
Studwelders Composite Floor Decks Limited
2,562,694
807,304
The Bolted Frame Company Limited
(1,317,352)
(235,213)
Met Structures Limited
1,189,308
224,313
Construction Metal Sales Limited
312,601
71,160
Whirlybirds Helicopters Limited
(460,909)
(95,573)
Red Dot 2 Developments Limited
3,303,511
2,986,496
Brother Bear Farm Limited
28,223
7,729
Speedy Deck Limited
2,155
(31)
KENAI HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
16
Subsidiaries
(Continued)
- 42 -

The following subsidiaries are exempt from the requirements of the Companies Act relating to the audit of the individual accounts by virtue of guarantee that has been given by Kenai Holdings Ltd:-

 

Company

 

 

Registered Number

 

 

 

 

 

Speedy Deck Ltd

08370013

Red Dot 2 Development Ltd

12238645

Whirlybirds Helicopters Ltd

05693205

Brother Bear Farm Ltd

12238665

 

17
Joint ventures

Details of joint ventures at 31 March 2024 are as follows:

Name of undertaking
Registered office
Nature of business
Interest
% Held
held
Direct
Construction Metal Forming Limited
As per parent company
Manufacture of building products
Ordinary shares
50
Red Dot 1 Developments Limited
As per parent company
Development of building projects
Ordinary shares
50
Sullivan Smith Ltd
As per parent company
Development company
Ordinary shares
50
18
Stocks
Group
Company
2024
2023
2024
2023
£
£
£
£
Raw materials and consumables
14,481
27,842
-
-
Work in progress
431,953
431,953
431,953
431,953
Stocks
635,602
2,416,066
-
0
-
0
1,082,036
2,875,861
431,953
431,953
KENAI HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 43 -
19
Debtors
Group
Company
2024
2023
2024
2023
Amounts falling due within one year:
£
£
£
£
Trade debtors
2,397,400
2,167,193
-
0
-
0
Gross amounts owed by contract customers
5,448,560
4,135,405
-
0
-
0
Unpaid share capital
222
222
-
0
-
0
Amounts owed by group undertakings
-
-
7,269,648
6,767,149
Amounts owed by undertakings in which the company has a participating interest
6,128,747
2,630,779
6,128,148
2,626,005
Other debtors
1,233,673
2,043,841
293,159
915,000
Prepayments and accrued income
636,280
1,489,916
303,104
1,043,184
15,844,882
12,467,356
13,994,059
11,351,338
20
Creditors: amounts falling due within one year
Group
Company
2024
2023
2024
2023
Notes
£
£
£
£
Bank loans and overdrafts
22
21,648
22,927
-
0
-
0
Obligations under finance leases
23
36,934
11,111
-
0
-
0
Other borrowings
22
76,923
307,692
-
0
-
0
Payments received on account
1,011,322
2,310,043
-
0
-
0
Trade creditors
6,503,589
7,548,328
13,140
16,854
Amounts owed to group undertakings
-
0
-
0
1,173
18,569
Amounts owed to undertakings in which the group has a participating interest
2,784,190
2,613,300
-
0
-
0
Corporation tax payable
250,821
434,316
-
0
49,661
Other taxation and social security
755,055
731,470
3,824
8,096
Other creditors
248,845
2,062,188
178,989
568,887
Accruals and deferred income
1,273,848
1,232,126
39,640
61,025
12,963,175
17,273,501
236,766
723,092

Included within other creditors is a loan of £nil (2023 - £428,681). The loan is interest free and is repayable on demand. M Smith (Director) has provided a guarantee for the loan.

 

The Company has a loan from Studwelders SSAS for £367,946 (2023 - £487,817). Interest of 1.15% is being charged on the loan which is repayable by May 2026.

KENAI HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 44 -
21
Creditors: amounts falling due after more than one year
Group
Company
2024
2023
2024
2023
Notes
£
£
£
£
Bank loans and overdrafts
22
182,361
203,414
-
0
-
0
Obligations under finance leases
23
100,426
42,696
-
0
-
0
Other creditors
646,581
844,983
246,581
368,060
929,368
1,091,093
246,581
368,060
22
Loans and overdrafts
Group
Company
2024
2023
2024
2023
£
£
£
£
Bank loans
204,009
226,341
-
0
-
0
Bank overdrafts
-
0
35,533
-
0
-
0
Other loans
76,923
307,692
-
0
-
0
280,932
569,566
-
-
Payable within one year
98,571
366,152
-
0
-
0
Payable after one year
182,361
203,414
-
0
-
0

The long-term loans are secured by fixed and floating charges over the land and properties of the group.

23
Finance lease obligations
Group
Company
2024
2023
2024
2023
£
£
£
£
Future minimum lease payments due under finance leases:
Within one year
43,745
10,185
-
0
-
0
In two to five years
114,962
53,441
-
0
-
0
158,707
63,626
-
-
Less: future finance charges
(21,347)
(9,819)
-
0
-
0
137,360
53,807
-
0
-
0
KENAI HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
23
Finance lease obligations
(Continued)
- 45 -

The hire purchase creditors are secured on the assets to which they relate.

24
Deferred taxation

The following are the major deferred tax liabilities and assets recognised by the group and company, and movements thereon:

Liabilities
Liabilities
2024
2023
Group
£
£
Accelerated capital allowances
296,830
160,340
Revaluations
950,768
-
Retirement benefit obligations
(15,975)
(13,739)
1,231,623
146,601
Liabilities
Liabilities
2024
2023
Company
£
£
Accelerated capital allowances
96,000
-
Group
Company
2024
2024
Movements in the year:
£
£
Liability at 1 April 2023
146,601
-
Charge to profit or loss
1,085,022
96,000
Liability at 31 March 2024
1,231,623
96,000
KENAI HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 46 -
25
Retirement benefit schemes
2024
2023
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
441,086
497,015

A defined contribution pension scheme is operated for all qualifying employees. The assets of the scheme are held separately from those of the group in an independently administered fund.

26
Share capital
Group and company
2024
2023
Ordinary share capital
£
£
Issued and fully paid
360 Ordinary of £1 each
360
360
27
Financial commitments, guarantees and contingent liabilities

The company has given cross guarantees to Barclays Bank plc in respect of the bank debt of its subsidiary undertakings Northern Steel Decking Limited, Northern Steel Decking Installations Limited, Studwelders Composite Floor Decks Limited.

28
Operating lease commitments
Lessee

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

Group
Company
2024
2023
2024
2023
£
£
£
£
Within one year
359,704
255,017
-
-
Between two and five years
287,844
124,833
-
-
647,548
379,850
-
-
KENAI HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 47 -
29
Capital commitments

Amounts contracted for but not provided in the financial statements:

Group
Company
2024
2023
2024
2023
£
£
£
£
Acquisition of tangible fixed assets
673,035
-
673,035
-
30
Related party transactions
Remuneration of key management personnel

The remuneration of key management personnel is as follows.

2024
2023
£
£
Aggregate compensation
1,813,102
2,068,258
31
Directors' transactions

Interest free loans have been granted by the group to its directors as follows:

Description
% Rate
Opening balance
Amounts repaid
Closing balance
£
£
£
Loan
-
7,800
(2,400)
5,400
7,800
(2,400)
5,400
32
Controlling party

The parent company is controlled by one of the directors, M Smith, who owns 91.6% of the issued share capital.

KENAI HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 48 -
33
Cash (absorbed by)/generated from group operations
2024
2023
£
£
Profit for the year after tax
7,167,678
9,477,749
Adjustments for:
Share of results of associates and joint ventures
(3,008,395)
(727,885)
Taxation charged
1,520,056
2,470,676
Finance costs
46,782
42,249
Investment income
(258,257)
(147,321)
(Gain)/loss on disposal of tangible fixed assets
(1,003)
2,271
Gain on disposal of business
-
(879,302)
Fair value gain on investment properties
(3,803,073)
(7,018,418)
Amortisation and impairment of intangible assets
97,026
96,491
Depreciation and impairment of tangible fixed assets
427,015
373,894
Movements in working capital:
Decrease/(increase) in stocks
1,793,825
(1,703,990)
(Increase)/decrease in debtors
(3,379,915)
14,239,760
Decrease in creditors
(3,908,740)
(5,656,948)
Cash (absorbed by)/generated from operations
(3,307,001)
10,569,226
KENAI HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 49 -
34
Cash absorbed by operations - company
2024
2023
£
£
Profit for the year after tax
2,234,160
13,157,798
Adjustments for:
Taxation charged
96,325
25,649
Finance costs
6,660
5,664
Investment income
(2,988,742)
(6,317,399)
Gain on disposal of tangible fixed assets
(6,736)
(4,000)
Gain on disposal of business
-
(6,871,199)
Depreciation and impairment of tangible fixed assets
110,887
76,632
Movements in working capital:
Increase in debtors
(2,642,721)
(3,739,142)
Decrease in creditors
(558,144)
(6,920,090)
Cash absorbed by operations
(3,748,311)
(10,586,087)
35
Analysis of changes in net funds - group
1 April 2023
Cash flows
New finance leases
31 March 2024
£
£
£
£
Cash at bank and in hand
16,987,134
(5,294,553)
-
11,692,581
Borrowings excluding overdrafts
(534,033)
253,101
-
(280,932)
Obligations under finance leases
(53,807)
22,686
(106,239)
(137,360)
16,399,294
(5,018,766)
(106,239)
11,274,289
36
Analysis of changes in net funds - company
1 April 2023
Cash flows
31 March 2024
£
£
£
Cash at bank and in hand
4,039,031
(1,551,793)
2,487,238
2024-03-312023-04-01falseCCH SoftwareCCH Accounts Production 2024.210M W SmithN R BeatsonL J 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