Company registration number 02316429 (England and Wales)
KESTREL GUARDS LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 APRIL 2024
KESTREL GUARDS LIMITED
COMPANY INFORMATION
Director
Mr J A E Matthews
Secretary
Mr J A E Matthews
Company number
02316429
Registered office
3 Yeoman Business Park
Test Lane
Nursling
Southampton
Hampshire
United Kingdom
SO16 9JX
Auditor
HJS Accountants Limited
Tagus House
9 Ocean Way
Southampton
Hampshire
United Kingdom
SO14 3TJ
KESTREL GUARDS LIMITED
CONTENTS
Page
Strategic report
1 - 2
Director's report
3
Director's responsibilities statement
4
Independent auditor's report
5 - 7
Statement of comprehensive income
8
Balance sheet
9 - 10
Statement of changes in equity
11
Statement of cash flows
12
Notes to the financial statements
13 - 25
KESTREL GUARDS LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 30 APRIL 2024
- 1 -

The director presents the strategic report for the year ended 30 April 2024.

Review of the business

The principal activities of the Company are set out in the directors’ report on page 3.

 

The head office is situated in Nursling, Southampton, after relocating from Totton in the previous year. The Company also has offices in Wimborne, Cornwall, Exeter, Winchester and Regis in Portsmouth.

 

The year commencing May 2023 continued with similar growth to that seen throughout 2021 to 2023. The Company continued to be impacted from the national increase in employment costs which were implemented to mitigate the rising cost of living for employees. However, Kestrel Guards has continued to remain profitable and true to its core values and agenda of corporate social responsibility.

 

The Company’s financial performance continues to see robust growth over the previous financial year. Company turnover has increased to £12.5m from £10.9m up to April 2023, a 15% increase over the previous year. Final operating profit for the year ended 2024 was £215,797 compared to £214,148 in 2023.

Principal risks and uncertainties

As with any business, Kestrel Guards faces risks and uncertainties in the course of its operations. It is only by timely identification and effective management of these risks that we are able to deliver our strategy and grow the business.

 

The company must adhere to the laws, standards and regulations specific to the industry and is therefore:

 

•    Assessed and Certified to ISO 9001 Quality Management Systems by the National Security Inspectorate     (NSI) for Security Guarding, Mobile Patrols, Key Holding and Alarm Response

•    Inspected to NSI Gold Standard (British Standard BS7499, BS7858, BS7984 and BS10800) by the     National Security Inspectorate (NSI)

•    A recognised Investor-in-People by the Department of Trade and Industry

•    An SIA Approved Contractor

•    A member of the International Professional Security Association (IPSA)

•    Achilles UVDB Qualified (Supplier Number: 86712)

•    Assessed Cyber Essentials Plus

 

Health and Safety receives the highest priority within the company which pro-actively provides training to all its staff to work efficiently in a safe and secure environment. The company has achieved H&S accreditation as a Safe Contractor by National Britannia, an Approved Contractor by SM-MS Contractor Plus Scheme and is accredited by CHAS (Contractors Health and Safety Assessment Scheme) due to its attention to detail, compliance with legislation and its enthusiasm to improve every aspect of safety in the work place.

Development and performance

Gross profit margins throughout 2024 have decreased compared with 2023 from 17.38% to 16.58%.

 

Labour costs continue to dominate the business expenses. Direct wages and agency costs, as a percentage of Turnover, have increased from 81.7% to 82.69% since 2023.

 

Overhead expenses for 2024, as a percentage of Turnover, have decreased from 15.4% to 14.85% since 2023.

Key performance indicators

Given the straightforward nature of the business, the director is of the opinion that an analysis using KPI's is not necessary for an understanding of the development, performance or position of the company.

 

 

 

 

KESTREL GUARDS LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
- 2 -
Financial instruments and risk management

The Company continues to make use of its factoring facility for cashflow purposes.

 

The director continues to monitor growth through quarterly management accounts and regularly reviews customer pricing strategies to accommodate for economical changes affecting the business sector.

On behalf of the board

Mr J A E Matthews
Director
29 January 2025
KESTREL GUARDS LIMITED
DIRECTOR'S REPORT
FOR THE YEAR ENDED 30 APRIL 2024
- 3 -

The director presents his annual report and financial statements for the year ended 30 April 2024.

Principal activities

The principal activity of the company in the year under review was that of the provision of security guard services.

Results and dividends

The results for the year are set out on page 8.

Ordinary dividends were paid amounting to £90,000. The director does not recommend payment of a final dividend.

Director

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

Mr J A E Matthews
Auditor

In accordance with the company's articles, a resolution proposing that HJS Accountants Limited be reappointed as auditor of the company will be put at a General Meeting.

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.

Employees

The company's policy is to recruit disabled workers for those vacancies that they are able to fill. All necessary assistance with initial training courses is given. Once employed, a career plan is developed so as to ensure suitable opportunities for each disabled person. Arrangements are made, wherever possible, for retraining employees who become disabled, to enable them to perform work identified as appropriate to their aptitudes and abilities.

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
Mr J A E Matthews
Director
29 January 2025
KESTREL GUARDS LIMITED
DIRECTOR'S RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 30 APRIL 2024
- 4 -

The director is responsible for preparing the annual report and the financial statements in accordance with applicable law and regulations.

 

Company law requires the director to prepare financial statements for each financial year. Under that law the director has 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 director must not approve the financial statements unless he is 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 director is required to:

 

 

The director is 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. He is 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.

KESTREL GUARDS LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF KESTREL GUARDS LIMITED
- 5 -
Opinion

We have audited the financial statements of Kestrel Guards Limited (the 'company') for the year ended 30 April 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:

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the director's 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 director with respect to going concern are described in the relevant sections of this report.

Other information

The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The director is 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:

KESTREL GUARDS LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF KESTREL GUARDS LIMITED
- 6 -
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 director's 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 director

As explained more fully in the director's responsibilities statement, the director is 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 director determines 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 director is 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 director either intends to liquidate the company or to cease operations, or has 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.

Capability of the audit in detecting irregularities, including fraud

The capability of the audit in detecting irregularities, including fraud. 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 industry, we identified that the principal risks of non-compliance with laws and regulations related to breaches of UK regulatory principles, such as those governed by the relevant security authorities within the UK. We also considered the laws and regulations which have a direct impact on the financial statements such as the Companies Act 2006.

 

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 management bias in accounting estimates and judgemental areas of the financial statements.

 

Audit procedures performed by the audit engagement team included:

 

KESTREL GUARDS LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF KESTREL GUARDS LIMITED
- 7 -

There are inherent limitations in the audit procedures described above. We are less likely to become aware of instances of non-compliance with laws and regulations that are not closely related to events and transactions reflected in the financial statements. 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 though 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.

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.

Angela Trainor (Senior Statutory Auditor)
For and on behalf of HJS Accountants Limited
29 January 2025
Chartered Accountants and Statutory Auditor
Tagus House
9 Ocean Way
Southampton
Hampshire
United Kingdom
SO14 3TJ
KESTREL GUARDS LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 30 APRIL 2024
- 8 -
2024
2023
Notes
£
£
Turnover
3
12,460,192
10,904,251
Cost of sales
(10,394,064)
(9,009,325)
Gross profit
2,066,128
1,894,926
Administrative expenses
(1,850,331)
(1,681,378)
Other operating income
-
0
600
Operating profit
4
215,797
214,148
Interest receivable and similar income
7
74,052
2,011
Interest payable and similar expenses
8
(782)
(997)
Amounts written off investments
9
(108,005)
-
Profit before taxation
181,062
215,162
Tax on profit
10
(67,640)
(42,570)
Profit for the financial year
113,422
172,592

The profit and loss account has been prepared on the basis that all operations are continuing operations.

KESTREL GUARDS LIMITED
BALANCE SHEET
AS AT
30 APRIL 2024
30 April 2024
- 9 -
2024
2023
Notes
£
£
£
£
Fixed assets
Intangible assets
12
569
1,743
Tangible assets
13
424,786
418,034
Investments
14
104,300
212,305
529,655
632,082
Current assets
Stocks
16
10,604
9,826
Debtors
17
2,738,764
2,681,438
Cash at bank and in hand
214,464
97,896
2,963,832
2,789,160
Creditors: amounts falling due within one year
18
(2,499,516)
(2,450,693)
Net current assets
464,316
338,467
Net assets
993,971
970,549
Capital and reserves
Called up share capital
21
10,000
10,000
Profit and loss reserves
983,971
960,549
Total equity
993,971
970,549
KESTREL GUARDS LIMITED
BALANCE SHEET (CONTINUED)
AS AT
30 APRIL 2024
30 April 2024
- 10 -

These financial statements have been prepared in accordance with the provisions relating to medium-sized companies.

The financial statements were approved and signed by the director and authorised for issue on 29 January 2025
Mr J A E Matthews
Director
Company registration number 02316429 (England and Wales)
KESTREL GUARDS LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 APRIL 2024
- 11 -
Share capital
Profit and loss reserves
Total
Notes
£
£
£
Balance at 1 May 2022
10,000
907,957
917,957
Year ended 30 April 2023:
Profit and total comprehensive income
-
172,592
172,592
Dividends
11
-
(120,000)
(120,000)
Balance at 30 April 2023
10,000
960,549
970,549
Year ended 30 April 2024:
Profit and total comprehensive income
-
113,422
113,422
Dividends
11
-
(90,000)
(90,000)
Balance at 30 April 2024
10,000
983,971
993,971
KESTREL GUARDS LIMITED
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 30 APRIL 2024
- 12 -
2024
2023
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
25
121,240
173,959
Interest paid
(782)
(997)
Income taxes refunded/(paid)
31,537
(1,288)
Net cash inflow from operating activities
151,995
171,674
Investing activities
Purchase of tangible fixed assets
(15,857)
(54,647)
Proceeds from disposal of subsidiaries
108,005
-
0
Proceeds from disposal of investments
(108,005)
10,000
Repayment of loans
(3,622)
-
0
Interest received
1,668
2,011
Dividends received
72,384
-
0
Net cash generated from/(used in) investing activities
54,573
(42,636)
Financing activities
Dividends paid
(90,000)
(120,000)
Net cash used in financing activities
(90,000)
(120,000)
Net increase in cash and cash equivalents
116,568
9,038
Cash and cash equivalents at beginning of year
97,896
88,858
Cash and cash equivalents at end of year
214,464
97,896
KESTREL GUARDS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 APRIL 2024
- 13 -
1
Accounting policies
Company information

Kestrel Guards Limited is a private company limited by shares incorporated in England and Wales. The registered office is 3 Yeoman Business Park, Test Lane, Nursling, Southampton, Hampshire, United Kingdom, SO16 9JX.

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.

1.2
Going concern

Atruet the time of approving the financial statements, the director has a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Thus the director continues to adopt the going concern basis of accounting in preparing the financial statements.

1.3
Turnover

Turnover represents amounts receivable for services net of VAT and trade discounts, except in respect of service contracts where turnover is recognised when the company obtains the right to consideration.

Revenue from contracts for the provision of professional services is recognised by reference to the stage of completion when the stage of completion, costs incurred and costs to complete can be estimated reliably. The stage of completion is calculated by comparing costs incurred, mainly in relation to contractual hourly staff rates and materials, as a proportion of total costs. Where the outcome cannot be estimated reliably, revenue is recognised only to the extent of the expenses recognised that are recoverable.

 

Revenue from contracts for maintenance visits and key holding is recognised when received and invoices are raised in respect of services provided.

1.4
Intangible fixed assets - goodwill

Goodwill, being the amount paid in connection with a business acquisition during 1996, was fully written down by 2007.

1.5
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
20% Straight line
KESTREL GUARDS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
1
Accounting policies
(Continued)
- 14 -
1.6
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 improvements
nil
Plant and machinery
25% on reducing balance
Fixtures, fittings & equipment
27.5% on reducing balance
Motor vehicles
25% on 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 credited or charged to profit or loss.

1.7
Fixed asset investments

Investments, including interests in subsidiaries, associates and jointly controlled entities, 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.

1.8
Impairment of fixed assets

At each reporting period end date, the company 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.

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.

1.9
Stocks

Stocks 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.

KESTREL GUARDS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
1
Accounting policies
(Continued)
- 15 -

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.

1.10
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.

1.11
Financial instruments

The company only enters into basic financial instrument transactions.

 

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.

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 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.

KESTREL GUARDS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
1
Accounting policies
(Continued)
- 16 -
Classification of financial liabilities

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

Basic financial liabilities

Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future receipts 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.

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.

1.12
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.

1.13
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.

KESTREL GUARDS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
1
Accounting policies
(Continued)
- 17 -
Deferred tax

Deferred taxation is provided in full in respect of taxation deferred by timing differences between the treatment of certain items for taxation and accounting purposes. The deferred tax balance has not been discounted. Deferred tax assets are recognised only to the extent that the directors consider that it is more likely than not that there will be suitable taxable profits from with the future reversal of the underlying timing differences can be deducted.

1.14
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.

1.15
Retirement benefits

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

1.16
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.

2
Judgements and key sources of estimation uncertainty

In the application of the company’s accounting policies, the director is 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 and other revenue

An analysis of the company's turnover is as follows:

2024
2023
£
£
Turnover analysed by class of business
Guarding
12,411,300
10,904,251
Alarm maintenance
48,892
-
12,460,192
10,904,251
KESTREL GUARDS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
3
Turnover and other revenue
(Continued)
- 18 -
2024
2023
£
£
Turnover analysed by geographical market
United Kingdom
12,460,192
10,904,251
2024
2023
£
£
Other revenue
Interest income
1,668
2,011
Dividends received
72,384
-
4
Operating profit
2024
2023
Operating profit for the year is stated after charging:
£
£
Fees payable to the company's auditor for the audit of the company's financial statements
8,330
7,800
Depreciation of owned tangible fixed assets
9,105
9,102
Amortisation of intangible assets
1,174
1,174
Operating lease charges
69,414
72,698
5
Employees

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

2024
2023
Number
Number
182
182

Their aggregate remuneration comprised:

2024
2023
£
£
Wages and salaries
5,517,538
4,913,922
Social security costs
567,281
497,399
Pension costs
101,577
111,761
6,186,396
5,523,082
KESTREL GUARDS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
- 19 -
6
Director's remuneration
2024
2023
£
£
Remuneration for qualifying services
44,861
46,726
Company pension contributions to defined contribution schemes
4,448
6,672
49,309
53,398
7
Interest receivable and similar income
2024
2023
£
£
Interest income
Other interest income
1,668
2,011
Income from fixed asset investments
Income from shares in group undertakings
72,384
-
0
Total income
74,052
2,011
8
Interest payable and similar expenses
2024
2023
£
£
Other finance costs:
Other interest
782
997
9
Amounts written off investments
2024
2023
£
£
Amounts written off investments held at fair value
(108,005)
-
10
Taxation
2024
2023
£
£
Current tax
UK corporation tax on profits for the current period
64,829
42,753
Deferred tax
Origination and reversal of timing differences
2,811
(183)
Total tax charge
67,640
42,570
KESTREL GUARDS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
10
Taxation
(Continued)
- 20 -

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
181,062
215,162
Expected tax charge based on the standard rate of corporation tax in the UK of 25.00% (2023: 25.00%)
45,266
53,791
Tax effect of expenses that are not deductible in determining taxable profit
43,519
13,886
Effect of change in corporation tax rate
-
0
(12,076)
Permanent capital allowances in excess of depreciation
(5,524)
(15,417)
Deferred tax adjustments in respect of prior years
2,811
(183)
Dividend income
(18,096)
-
0
Pension liability movement
(336)
2,569
Taxation charge for the year
67,640
42,570
11
Dividends
2024
2023
£
£
Interim paid
90,000
120,000
12
Intangible fixed assets
Goodwill
Software
Total
£
£
£
Cost
At 1 May 2023 and 30 April 2024
35,913
5,872
41,785
Amortisation and impairment
At 1 May 2023
35,913
4,129
40,042
Amortisation charged for the year
-
0
1,174
1,174
At 30 April 2024
35,913
5,303
41,216
Carrying amount
At 30 April 2024
-
0
569
569
At 30 April 2023
-
0
1,743
1,743
KESTREL GUARDS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
- 21 -
13
Tangible fixed assets
Leasehold improvements
Plant and machinery
Fixtures, fittings & equipment
Motor vehicles
Total
£
£
£
£
£
Cost
At 1 May 2023
391,108
23,293
25,745
132,504
572,650
Additions
1,750
-
0
8,707
5,400
15,857
At 30 April 2024
392,858
23,293
34,452
137,904
588,507
Depreciation and impairment
At 1 May 2023
-
0
14,326
19,238
121,052
154,616
Depreciation charged in the year
-
0
2,242
3,550
3,313
9,105
At 30 April 2024
-
0
16,568
22,788
124,365
163,721
Carrying amount
At 30 April 2024
392,858
6,725
11,664
13,539
424,786
At 30 April 2023
391,108
8,967
6,507
11,452
418,034
14
Fixed asset investments
2024
2023
Notes
£
£
Investments in subsidiaries
15
-
0
108,005
Unlisted investments
104,300
104,300
104,300
212,305
Movements in fixed asset investments
Shares in subsidiaries
Other investments
Total
£
£
£
Cost or valuation
At 1 May 2023
108,005
104,300
212,305
Valuation changes
(108,005)
-
(108,005)
At 30 April 2024
-
104,300
104,300
Carrying amount
At 30 April 2024
-
104,300
104,300
At 30 April 2023
108,005
104,300
212,305

At 30 April 2023 the company's 100% owned subsidiary ceased to trade and all trading activities were transferred to Kestrel Guards Limited.

KESTREL GUARDS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
- 22 -
15
Subsidiaries

Details of the company's subsidiaries at 30 April 2024 are as follows:

Name of undertaking
Registered office
Class of
% Held
shares held
Direct
Active Eye Security Systems Limited
England
Ordinary
100.00
16
Stocks
2024
2023
£
£
Finished goods and goods for resale
10,604
9,826
17
Debtors
2024
2023
Amounts falling due within one year:
£
£
Trade debtors
1,455,556
1,585,918
Corporation tax recoverable
1,600
42,449
Other debtors
1,149,679
920,020
Prepayments
118,782
117,093
2,725,617
2,665,480
2024
2023
Amounts falling due after more than one year:
£
£
Deferred tax asset (note 19)
13,147
15,958
Total debtors
2,738,764
2,681,438
18
Creditors: amounts falling due within one year
2024
2023
£
£
Trade creditors
465,468
579,985
Amounts owed to group undertakings
2,971
55,747
Corporation tax
98,270
42,753
Other taxation and social security
502,555
421,482
Other creditors
1,038,176
1,029,158
Accruals and deferred income
392,076
321,568
2,499,516
2,450,693
KESTREL GUARDS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
18
Creditors: amounts falling due within one year
(Continued)
- 23 -

The aggregate amount of creditors due within one year of which security has been given total to £931,659(2023: £933,577). The security comprises a fixed and floating charge over the assets of the company.

 

The amount of debts factored and still owing at the balance sheet date totalled £1,302,774 (2023: £1,430,765).

 

There is a fixed and floating charge covering all the property or undertaking of the company in respect of a property purchased by a related party. The charge also contains a negative pledge.

19
Deferred taxation

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

Assets
Assets
2024
2023
Balances:
£
£
Accelerated capital allowances
13,147
15,958
2024
Movements in the year:
£
Asset at 1 May 2023
(15,958)
Other
2,811
Asset at 30 April 2024
(13,147)

The deferred tax asset set out above is expected to reverse within 12 months and relates to the utilisation of tax losses against future expected profits of the same period.

20
Retirement benefit schemes
2024
2023
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
101,577
111,761

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.

21
Share capital
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary of £1 each
10,000
10,000
10,000
10,000
KESTREL GUARDS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
- 24 -
22
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
647,984
369,591
23
Related party transactions
Remuneration of key management personnel

The remuneration of key management personnel is as follows:

2024
2023
£
£
Aggregate compensation
83,303
88,935

The following interest-free amounts were outstanding at the reporting end date:

2024
2023
Amounts due to related parties
£
£
Entities over which the entity has control, joint control or significant influence
2,971
55,747
Key management personnel
-
10,139
Other related parties
155,097
140,556

The following amounts were outstanding at the reporting end date:

2024
2023
Amounts due from related parties
£
£
Entity under common control
302,620
247,055
Key management personnel
3,622
-
24
Ultimate controlling party

The company has no controlling party.

KESTREL GUARDS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
- 25 -
25
Cash generated from operations
2024
2023
£
£
Profit for the year after tax
113,422
172,592
Adjustments for:
Taxation charged
67,640
42,570
Finance costs
782
997
Investment income
(74,052)
(2,011)
Amortisation and impairment of intangible assets
1,174
1,174
Depreciation and impairment of tangible fixed assets
9,105
9,102
Other gains and losses
108,005
-
Movements in working capital:
Increase in stocks
(778)
(6,404)
Increase in debtors
(97,364)
(202,897)
(Decrease)/increase in creditors
(6,694)
158,836
Cash generated from operations
121,240
173,959
26
Analysis of changes in net funds
1 May 2023
Cash flows
30 April 2024
£
£
£
Cash at bank and in hand
97,896
116,568
214,464
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