Company registration number 06799634 (England and Wales)
KRONE UK LTD
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JULY 2024
KRONE UK LTD
COMPANY INFORMATION
Directors
Dr M J Oliver
Dr D Frink
Mr M J Eying
Company number
06799634
Registered office
Unit 2, Peckfield Business
Phoenix Avenue
Micklefield
Leeds
LS25 4DY
Auditors
Henton & Co LLP
Northgate
118 North Street
Leeds
West Yorkshire
LS2 7PN
KRONE UK LTD
CONTENTS
Page
Strategic report
3
Directors' report
1 - 2
Independent auditor's report
4 - 6
Statement of comprehensive income
7
Balance sheet
8
Statement of changes in equity
9
Notes to the financial statements
11 - 22
KRONE UK LTD
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 JULY 2024
- 1 -
The directors present their annual report and financial statements for the year ended 31 July 2024.
Principal activities
The principal activity of the company is the wholesaling of agricultural machinery and parts through its dealer network.
Results and dividends
The results for the year are set out on page 7.
No ordinary dividends were paid. The directors do not recommend payment of a final dividend.
Directors
The directors who held office during the year and up to the date of signature of the financial statements were as follows:
Dr M J Oliver
Dr D Frink
Mr M J Eying
Financial instruments
Objectives and policies
The company has a risk governance framework to establish processes for identifying, evaluation and managing key risks. Furthermore, risk management principles are embedded within management practices and are part of the business strategy and objective setting process. The company's system of internal control is an essential and integral part of its risk management process and is reviewed regularly throughout the year. Actual performance is regularly monitored against the company's business plan.
Price risk, credit risk, liquidity risk and cash flow risk
Price risk arises on financial instruments because of changes in, for example, commodity prices or exchange rates. The company purchases goods for resale from other members of its group at a fixed exchange rate that is reviewed from time to time and is therefore not exposed to significant price risk.
Credit risk is the risk that one party to a financial instrument will cause a financial loss for that party by failing to discharge an obligation. Group policies are aimed at minimising such losses, and require that deferred terms are only granted to customers who demonstrate an appropriate payment history and satisfy credit worthiness procedures.
Liquidity risk is the risk that an entity will encounter difficulty in meeting obligations associated with financial liabilities. The company's liquidity risk is managed by maintaining a flexibility of funding through the use of the group's centralised treasury arrangements.
Cash flow risk is the risk of exposure to variability in cash flows that is attributable to a particular risk associated with a recognised asset or liability such as future interest payments on variability rate debt. The company manages this risk by use of its centralised treasury arrangements.
Future developments
The directors' strategic focus continues to be on the organic development of its existing core business through its dealer network.
Auditor
In accordance with the company's articles, a resolution proposing that Hentons be reappointed as auditor of the company will be put at a General Meeting.
KRONE UK LTD
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2024
- 2 -
Statement of directors' responsibilities
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 company and of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to:
select suitable accounting policies and then apply them consistently;
make judgements and accounting estimates that are reasonable and prudent;
prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.
The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company’s transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
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 company’s auditor 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 company’s auditor is aware of that information.
Medium-sized companies exemption
This report has been prepared in accordance with the provisions applicable to companies entitled to the medium-sized companies exemption.
On behalf of the board
Dr M J Oliver
Director
21 October 2024
KRONE UK LTD
STRATEGIC REPORT
FOR THE YEAR ENDED 31 JULY 2024
- 3 -
The directors present the strategic report for the year ended 31 July 2024.
Fair review of the business
The business has seen some challenges in this year due to a significant decrease in market volumes. Turnover for the company is below expectations as a result of this. Turnover for the next financial year is expected to increase as the market shows sign of recovery.
Total operating profit decreased for the year primarily due to the reduction in turnover but was mitigated by careful cost management in the difficult market conditions.
Financial results are in line with expectations and the directors are of the opinion that the state of the company’s affairs as at the balance sheet date was satisfactory.
Principal risks and uncertainties
The company is a wholly owned subsidiary of Krone Agriculture SE and as such is subject to the overall risks of the group; consequently the principal risks and uncertainties facing the company are its interdependence for continued product supply, financial support and information technology (IT) system support.
Key performance indicators
The Group’s key financial and other performance indicators during the year were as follows:
Dr M J Oliver
Director
21 October 2024
KRONE UK LTD
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF KRONE UK LTD
- 4 -
Opinion
We have audited the financial statements of Krone UK Ltd (the 'company') for the year ended 31 July 2024 which comprise the statement of comprehensive income, the balance sheet, the statement of changes in equity, the 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:
give a true and fair view of the state of the company's affairs as at 31 July 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.
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 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.
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:
the information given in the strategic report and the directors' report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
the strategic report and the directors' report have been prepared in accordance with applicable legal requirements.
KRONE UK LTD
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF KRONE UK LTD (CONTINUED)
- 5 -
Matters on which we are required to report by exception
In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the directors' report.
We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:
adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
the financial statements are not in agreement with the accounting records and returns; or
certain disclosures of 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, 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.
Reviewed the nature of the industry and sector, the control environment and business performance for the year.
Identifying the laws and regulations the company operates within and enquiring with management if they are aware of any non compliance issues.
Discussed how and where fraud may occur with all members of the audit engagement team.
In line with all audits under ISAs (UK) we were required to perform tests to respond to the risk of management override. We tested the appropriateness of journal entries, evaluated the judgements made for accounting estimates to assess if any bias, and assessed the rationale behind any significant or unusual transactions.
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.
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.
KRONE UK LTD
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF KRONE UK LTD (CONTINUED)
- 6 -
Chris Howitt
Senior Statutory Auditor
For and on behalf of Hentons
21 October 2024
Chartered Accountants
Statutory Auditor
Northgate
118 North Street
Leeds
West Yorkshire
LS2 7PN
KRONE UK LTD
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 JULY 2024
- 7 -
2024
2023
as restated
Notes
£
£
Turnover
3
23,892,006
33,779,718
Cost of sales
(17,008,780)
(27,423,674)
Gross profit
6,883,226
6,356,044
Distribution costs
(444,657)
(667,006)
Administrative expenses
(4,160,806)
(3,852,650)
Operating profit
4
2,277,763
1,836,388
Interest payable and similar expenses
8
(1,983,120)
(1,423,799)
Profit before taxation
294,643
412,589
Tax on profit
9
(70,318)
(91,095)
Profit for the financial year
224,325
321,494
The profit and loss account has been prepared on the basis that all operations are continuing operations.
KRONE UK LTD
BALANCE SHEET
- 8 -
2024
2023
as restated
Notes
£
£
£
£
Fixed assets
Tangible assets
10
123,420
215,854
Investments
11
100,000
100,000
223,420
315,854
Current assets
Stocks
13
18,290,802
15,800,005
Debtors
14
3,722,367
9,302,008
Cash at bank and in hand
2,023,315
861,469
24,036,484
25,963,482
Creditors: amounts falling due within one year
15
(20,298,026)
(22,523,069)
Net current assets
3,738,458
3,440,413
Total assets less current liabilities
3,961,878
3,756,267
Provisions for liabilities
Deferred tax liability
16
17,520
38,061
(17,520)
(38,061)
Net assets
3,944,358
3,718,206
Capital and reserves
Called up share capital
18
100,000
100,000
Profit and loss reserves
19
3,844,358
3,618,206
Total equity
3,944,358
3,718,206
These financial statements have been prepared in accordance with the provisions relating to medium-sized companies.
The financial statements were approved by the board of directors and authorised for issue on 21 October 2024 and are signed on its behalf by:
Dr M J Oliver
Director
Company registration number 06799634 (England and Wales)
KRONE UK LTD
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 JULY 2024
- 9 -
Share capital
Profit and loss reserves
Total
£
£
£
Balance at 1 August 2022
100,000
3,296,712
3,396,712
Year ended 31 July 2023:
Profit and total comprehensive income
-
321,494
321,494
Balance at 31 July 2023
100,000
3,618,206
3,718,206
Year ended 31 July 2024:
Profit and total comprehensive income
-
224,325
224,325
Balance at 31 July 2024
100,000
3,844,358
3,944,358
KRONE UK LTD
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 JULY 2024
- 10 -
2024
2023
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
21
3,207,558
535,008
Interest paid
(1,983,120)
(1,423,799)
Income taxes paid
(83,849)
(155,526)
Net cash inflow/(outflow) from operating activities
1,140,589
(1,044,317)
Investing activities
Purchase of tangible fixed assets
(1,993)
(89,850)
Proceeds from disposal of tangible fixed assets
23,250
16,000
Net cash generated from/(used in) investing activities
21,257
(73,850)
Net increase/(decrease) in cash and cash equivalents
1,161,846
(1,118,167)
Cash and cash equivalents at beginning of year
861,469
1,979,636
Cash and cash equivalents at end of year
2,023,315
861,469
KRONE UK LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JULY 2024
- 11 -
1
Accounting policies
Company information
Krone UK Ltd is a private company limited by shares incorporated in England and Wales, registered number 06799634. The registered office is Unit 2, Peckfield Business, Phoenix Avenue, Micklefield, Leeds, LS25 4DY.
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. The principal accounting policies adopted are set out below.
The company has taken advantage of the exemption under section 400 of the Companies Act 2006 not to prepare consolidated accounts. The financial statements present information about the company as an individual entity and not about its group.
Krone UK Ltd is a wholly owned subsidiary of Krone Agriculture SE and the results of Krone UK Ltd are included in the consolidated financial statements of Bernard Krone Holdings SE & Co. KG which are available from https://www.bundesanzeiger.de.
1.2
Going concern
Atruet the time of approving the financial statements, the directors have a reasonable expectation that the company 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.
1.3
Turnover
Turnover is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business, and is shown net of VAT and other sales related taxes. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.
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.
1.4
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:
Leasehold land and buildings
In accordance with the lease
Plant and equipment
20% straight line
Fixtures and fittings
20% straight line
Motor vehicles
20% straight line
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 credited or charged to profit or loss.
KRONE UK LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2024
1
Accounting policies
(Continued)
- 12 -
1.5
Fixed asset investments
Interests in subsidiaries are initially measured at cost and subsequently measured at cost less any accumulated impairment losses. The investments are assessed for impairment at each reporting date and any impairment losses or reversals of impairment losses are recognised immediately in profit or loss.
A subsidiary is an entity controlled by the company. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.
1.6
Impairment of fixed assets
At each reporting period end date, the company reviews the carrying amounts of its tangible 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.
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.
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.
1.7
Stocks
Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell.
In determining the cost of used machine inventories, the actual amount paid and payable to date for each item is used. For new inventories, cost is based on the first-in first-out principle and is assigned by using the weighted average method.
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.
1.8
Cash and cash equivalents
Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks and other short-term liquid investments with original maturities of three months or less.
1.9
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 balance sheet 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.
KRONE UK LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2024
1
Accounting policies
(Continued)
- 13 -
Basic financial assets
Basic financial assets, which include debtors and cash and bank balances, are measured at transaction price. 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 company 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 company after deducting all of its liabilities.
Basic financial liabilities
Basic financial liabilities, including creditors, bank loans and loans from fellow group companies, are recognised at transaction price.
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.
KRONE UK LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2024
1
Accounting policies
(Continued)
- 14 -
Other financial liabilities
Derivatives, including interest rate swaps and forward foreign exchange contracts, are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in profit or loss in finance costs or finance income as appropriate, unless hedge accounting is applied and the hedge is a cash flow hedge.
Debt instruments that do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured at fair value through profit or loss. Debt instruments may be designated as being measured at fair value through profit or loss to eliminate or reduce an accounting mismatch or if the instruments are measured and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy.
Derecognition of financial liabilities
Financial liabilities are derecognised when the company’s contractual obligations expire or are discharged or cancelled.
1.10
Equity instruments
Equity instruments issued by the company 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 company.
1.11
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 company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.
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 when the company has 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.
KRONE UK LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2024
1
Accounting policies
(Continued)
- 15 -
1.12
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.
1.13
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
1.14
Leases
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 leases asset are consumed.
1.15
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 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.
3
Turnover
An analysis of the company's turnover is as follows:
2024
2023
£
£
Turnover analysed by class of business
Machines and parts
23,790,762
33,674,805
Merchandise
101,243
104,913
23,892,006
33,779,718
Analysis per statutory database
23,892,005
33,779,718
Statutory database analysis does not agree to the trial balance by:
1
-
KRONE UK LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2024
3
Turnover
(Continued)
- 16 -
2024
2023
£
£
Turnover analysed by geographical market
United Kingdom
23,892,005
33,779,718
Analysis per statutory database
23,892,005
33,779,718
Statutory database analysis does not agree to the trial balance by:
1
-
4
Operating profit
2024
2023
Operating profit for the year is stated after charging/(crediting):
£
£
Depreciation of owned tangible fixed assets
68,507
81,871
Loss/(profit) on disposal of tangible fixed assets
2,670
(16,000)
Operating lease charges
378,198
301,286
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 company
23,474
23,944
For other services
All other non-audit services
3,192
2,231
6
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2024
2023
Number
Number
Total
37
39
Their aggregate remuneration comprised:
2024
2023
£
£
Wages and salaries
1,867,797
1,760,872
Social security costs
224,177
194,293
Pension costs
100,778
97,539
2,192,752
2,052,704
KRONE UK LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2024
- 17 -
7
Directors' remuneration
2024
2023
£
£
Remuneration for qualifying services
154,373
148,365
Company pension contributions to defined contribution schemes
21,624
20,594
175,997
168,959
The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 1 (2023 - 1).
8
Interest payable and similar expenses
2024
2023
£
£
Interest on financial liabilities measured at amortised cost:
Interest payable to group undertakings
595,048
104,859
Other interest on financial liabilities
1,388,072
1,318,940
1,983,120
1,423,799
9
Taxation
2024
2023
£
£
Current tax
UK corporation tax on profits for the current period
93,940
86,930
Adjustments in respect of prior periods
(3,081)
Total current tax
90,859
86,930
Deferred tax
Origination and reversal of timing differences
(20,541)
4,165
Total tax charge
70,318
91,095
KRONE UK LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2024
9
Taxation
(Continued)
- 18 -
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
294,643
412,589
Expected tax charge based on the standard rate of corporation tax in the UK of 25.00% (2023: 19.00%)
73,661
78,392
Tax effect of expenses that are not deductible in determining taxable profit
4,502
347
Adjustments in respect of prior years
(3,081)
Permanent capital allowances in excess of depreciation
15,777
8,191
Deferred tax adjustments
(20,541)
4,165
Taxation charge for the year
70,318
91,095
10
Tangible fixed assets
Leasehold land and buildings
Plant and equipment
Fixtures and fittings
Motor vehicles
Total
£
£
£
£
£
Cost
At 1 August 2023
162,332
320,992
379,628
218,466
1,081,418
Additions
1,993
1,993
Disposals
(43,200)
(43,200)
At 31 July 2024
162,332
320,992
381,621
175,266
1,040,211
Depreciation and impairment
At 1 August 2023
161,140
314,206
294,435
95,783
865,564
Depreciation charged in the year
1,192
6,402
30,612
30,301
68,507
Eliminated in respect of disposals
(17,280)
(17,280)
At 31 July 2024
162,332
320,608
325,047
108,804
916,791
Carrying amount
At 31 July 2024
384
56,574
66,462
123,420
At 31 July 2023
1,192
6,786
85,193
122,683
215,854
11
Fixed asset investments
2024
2023
Notes
£
£
Investments in subsidiaries
12
100,000
100,000
KRONE UK LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2024
- 19 -
12
Subsidiaries
These financial statements are separate company financial statements for Krone Forage Solutions Limited.
Details of the company's subsidiaries at 31 July 2024 are as follows:
Name of undertaking
Registered office
Class of
% Held
shares held
Direct
Krone Forage Solutions Limited
UK
Ordinary
100.00
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)
£
£
Krone Forage Solutions Limited
(276,327)
58,969
13
Stocks
2024
2023
£
£
Finished goods and goods for resale
18,290,802
15,800,005
14
Debtors
2024
2023
Amounts falling due within one year:
£
£
Trade debtors
2,441,458
7,961,557
Amounts owed by group undertakings
1,000,000
1,000,000
Other debtors
77,577
25,981
Prepayments and accrued income
203,332
314,470
3,722,367
9,302,008
15
Creditors: amounts falling due within one year
2024
2023
£
£
Trade creditors
504,244
269,847
Amounts owed to group undertakings
18,712,907
20,828,628
Corporation tax
93,940
86,930
Other taxation and social security
499,319
637,232
Other creditors
(1,651)
Accruals and deferred income
487,616
702,083
20,298,026
22,523,069
KRONE UK LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2024
- 20 -
16
Deferred taxation
Deferred tax assets and liabilities are offset where the company has a legally enforceable right to do so. The following is the analysis of the deferred tax balances (after offset) for financial reporting purposes:
Liabilities
Liabilities
2024
2023
Balances:
£
£
Accelerated capital allowances
17,520
38,061
2024
Movements in the year:
£
Liability at 1 August 2023
38,061
Credit to profit or loss
(20,541)
Liability at 31 July 2024
17,520
17
Retirement benefit schemes
2024
2023
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
100,778
97,539
The company operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the company in an independently administered fund.
18
Share capital
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
100,000
100,000
100,000
100,000
There are no restrictions on the distribution of dividends and repayment of capital.
19
Reserves
Profit and loss reserves
The profit and loss account includes all current and prior period retained profits and losses.
KRONE UK LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2024
- 21 -
20
Operating lease commitments
Lessee
At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:
2024
2023
£
£
Within one year
257,308
329,218
Between two and five years
656,812
144,264
914,120
473,482
21
Cash generated from operations
2024
2023
£
£
Profit for the year after tax
224,325
321,494
Adjustments for:
Taxation charged
70,318
91,095
Finance costs
1,983,120
1,423,799
Loss/(gain) on disposal of tangible fixed assets
2,670
(16,000)
Depreciation and impairment of tangible fixed assets
70,334
83,698
Movements in working capital:
(Increase) in stocks
(2,490,797)
(4,717,002)
Decrease/(increase) in debtors
5,579,641
(1,334,825)
(Decrease)/increase in creditors
(2,232,053)
4,682,749
Cash generated from operations
3,207,558
535,008
22
Controlling party
The company's immediate parent is Krone Agriculture SE, incorporated in Germany.
The ultimate parent company is Bernard Krone Holding SE & Co. KG, incorporated in Germany.
The ultimate controlling party is Bernard Krone Familienstiftung.
Relationship between entity and parents
The parent of the smallest and largest group in which these financial statements are consolidated is Bernard Krone Holding SE & Co. KG, incorporated in Germany.
The address of Bernard Krone Holding SE & Co. KG is Heinrich-Krone-Strasse 10, D-48480, Spelle, Germany.
These financial statements are available upon request from www.ebundesanzeiger.de.
KRONE UK LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2024
- 22 -
23
Analysis of changes in net funds
1 August 2023
Cash flows
31 July 2024
£
£
£
Cash at bank and in hand
861,469
1,161,846
2,023,315
24
Prior period adjustment
Reconciliation of changes in equity
1 August
31 July
2022
2023
£
£
Adjustments to prior year
Adjustment to agree retained earnings
-
1,827
Total adjustments
-
1,827
Equity as previously reported
3,394,885
3,618,206
Equity as adjusted
3,394,885
3,620,033
Reconciliation of changes in profit for the previous financial period
2023
£
Adjustments to prior year
Adjustment to retained earnings
(1,827)
Total adjustments
(1,827)
Profit as previously reported
323,321
Profit as adjusted
321,494
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