Company registration number 01873421 (England and Wales)
K W BELL GROUP LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2024
K W BELL GROUP LIMITED
COMPANY INFORMATION
DIRECTORS
Jason Bell
Peter Bell
Stephen Jelf
COMPANY NUMBER
01873421
REGISTERED OFFICE
Whimsey Industrial Estate
Cinderford
Gloucestershire
GL14 3JA
AUDITOR
Kilsby & Williams LLP
Cedar House
Hazell Drive
Newport
Gwent
NP10 8FY
K W BELL GROUP LIMITED
CONTENTS
Page
Strategic report
1 - 3
Directors' report
4 - 5
Independent auditor's report
6 - 10
Profit and loss account
11
Balance sheet
12 - 13
Statement of changes in equity
14
Statement of cash flows
15
Notes to the financial statements
16 - 30
K W BELL GROUP LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 MAY 2024
- 1 -
The directors present the strategic report for the year ended 31 May 2024.
REVIEW OF THE BUSINESS
The company operates as house builders and is one of the leading privately owned housing development companies in the region. The company has developments in its core base areas of Gloucestershire and Herefordshire. The company is also engaged in the management of a public house, restaurant and accommodation.
The company's objective is to build on the reputation gained for placing considerable emphasis on quality and individuality on their developments, accomplished by employing a core of skilled tradesmen on all sites, thereby achieving properties that withstand the test of time.
The company also aspires to respond sensitively to the environment by incorporating state of the art building materials to ensure that properties are constructed with maximum echo-friendliness in mind. Every effort is then made to provide external finishes which reflect local architectural features.
STRATEGY
The company's success is dependent on the building of quality housing within the marketplace, long standing experienced management and skilled workforce and the reputation built up by the company over the years.
PRINCIPAL RISKS & UNCERTAINTIES
There is a large degree of turmoil in the UK and World economies at the time of producing these financial statements. Recent changes of government in both UK and US, and other European countries continues, will continue to leave uncertainty in both market conditions and regulatory frameworks. The housing market also continues to be very subdued. Borrowing costs remain higher than most businesses and households have historically been used to, with no likely fall back to these previous levels. There is also the continued shortfall in skilled labour. The UK planning system is extremely protracted with recent political comments on easing the system not being apparent as yet. However, sensible management of the company’s land purchase programme, along with very prudent management of the company’s cash position, sees the company still flourishing whilst others are struggling, with the 31 May 2024 results being in the realms if the best we have had. The company will continue to actively mitigate and manage risks with its strong and experienced management team, as it has done for many years.
RESULTS, PERFORMANCE AND BUSINESS ENVIRONMENT
The results for the financial period under review are set out on page 11.
The period ended 31 May 2024 was another very successful year for K W Bell Group Limited. The company's profit before tax of £4,514,762 is only very marginally lower than our previous best results, which is exceptional considering the market conditions and headwinds facing the business. The board is extremely pleased with these results.
K W BELL GROUP LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2024
- 2 -
KEY PERFORMANCE INDICATORS (KPI'S)
The directors monitor the performance of the company's sales levels and profitability, both of which are shown below. The directors are of the opinion that further analysis using KPI's is not necessary for an understanding of the development, performance or position of the business.
The directors believe that the main business indicators are turnover, gross margin, EBITDA and cash generation. Performance of the company was as follows:
Year Ended
Year Ended
31 May 2024
31 May 2023
£'000
£'000
House Building
Turnover
21,832
20,622
Gross profit (%)
29
27
Houses sold
48
47
EBITDA
4543
3,921
Total cash generated from all operations
1,895
(1,636)
Public House, Restaurant & Accommodation
2024
2023
£'000
£'000
Turnover
1,057
968
Gross profit (%)
26
24
The house building operations reported main business indicators which were up in all areas on the previous year. This has been achieved by the continued efforts of the stable and experienced management team and workforce. The company has continued to actively source new land during the year and held land & work in progress representing 165 plots at its year end, with a further 65 plots being purchased in the months following the year end, all with no external development funding requirements.
FUTURE DEVELOPMENTS
The period since the company's year-end has been a very difficult one for the UK, with a great deal of uncertainty and upheaval. This does not make for a good environment for the company’s sector. However, the company very strong and stable management team, coupled with ample plot stock and cash reserves, with no external development funding, is allowing the company to weather the storm very well. The company's proven business strategies and strength gives it the perfect opportunity to take advantage of opportunities that arise during these difficult economic periods. It has also notably increased its secured land bank since year end, leaving it in an excellent position to flourish when market conditions do improve.
K W BELL GROUP LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2024
- 3 -
Peter Bell
Jason Bell
DIRECTOR
DIRECTOR
30 January 2025
30 January 2025
K W BELL GROUP LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 MAY 2024
- 4 -
The directors present their annual report and financial statements for the year ended 31 May 2024.
PRINCIPAL ACTIVITIES
The principal activity of the company continued to be that of the construction of domestic buildings.
RESULTS AND DIVIDENDS
The results for the year are set out on page 11.
Particulars of recommended dividends are detailed in note 11 to the financial statements.
DIRECTORS
The directors who held office during the year and up to the date of signature of the financial statements were as follows:
Jason Bell
Peter Bell
Keith Bell
(Deceased 20 March 2024)
Stephen Jelf
FUTURE DEVELOPMENTS
Expected future developments of the company and group are outlined within the strategic report on pages 2 to 3 of the financial statements.
STATEMENT OF DIRECTORS' RESPONSIBILITIES
The directors are responsible for preparing the annual report and the financial statements in accordance with applicable law and regulations.
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.
DISCLOSURE OF INFORMATION IN THE STRATEGIC REPORT
In accordance with section 414C(11) of the Companies Act 2006 (Strategic Report and Directors' Report) Regulations 2013 we set out in the company's strategic report information required by schedule 7 of the Large and Medium-sized Companies and Groups (Accounts and Reports) Regulations 2008.
MEDIUM-SIZED COMPANIES EXEMPTION
This report has been prepared in accordance with the provisions applicable to companies entitled to the medium-sized companies exemption.
K W BELL GROUP LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2024
- 5 -
On behalf of the board
Jason Bell
Peter Bell
DIRECTOR
DIRECTOR
30 January 2025
K W BELL GROUP LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF K W BELL GROUP LIMITED
- 6 -
Opinion
We have audited the financial statements of K W Bell Group Limited (the 'company') for the year ended 31 May 2024 which comprise the profit and loss account, 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 May 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.
K W BELL GROUP LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF K W BELL GROUP LIMITED (CONTINUED)
- 7 -
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.
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.
K W BELL GROUP LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF K W BELL GROUP LIMITED (CONTINUED)
- 8 -
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.
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:
We gained an understanding of the legal and regulatory framework applicable to the company and the industry in which it operates, and considered the risk of acts by the company that were contrary to applicable laws and regulations, including fraud. We designed audit procedures to respond to the risk, recognising that 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.
We focussed on laws and regulations which could give rise to a material misstatement in the financial statements, including, but not limited to, the Companies Act 2006 and UK tax legislation. Our tests included agreeing the financial statement disclosures to underlying supporting documentation, enquiries with management and enquiries of legal counsel. There are inherent limitations in the audit procedures described above and, the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we would become aware of it. We did not identify any key audit matters relating to irregularities, including fraud. As in all our audits, we also addressed the risk of management override of internal controls, including testing journals and evaluating whether there was evidence of bias by the directors that represented a risk of material misstatement due to fraud.
K W BELL GROUP LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF K W BELL GROUP LIMITED (CONTINUED)
- 9 -
As part of an audit in accordance with ISAs (UK), we exercise professional judgment and maintain professional scepticism throughout the audit. We also:
•
Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
•
Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the internal control.
•
Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the directors.
•
Conclude on the appropriateness of the directors' use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the company's ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor's report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor's report. However, future events or conditions may cause the company to cease to continue as a going concern.
•
Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation.
We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.
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.
K W BELL GROUP LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF K W BELL GROUP LIMITED (CONTINUED)
- 10 -
Simon Tee
Senior Statutory Auditor
For and on behalf of
Kilsby & Williams LLP
Chartered accountants & statutory auditor
Cedar House
Hazell Drive
Newport
Gwent
NP10 8FY
3 February 2025
K W BELL GROUP LIMITED
PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 31 MAY 2024
- 11 -
2024
2023
Notes
£
£
TURNOVER
3
22,888,631
21,589,776
Cost of sales
(16,205,215)
(15,722,436)
GROSS PROFIT
6,683,416
5,867,340
Administrative expenses
(2,562,309)
(2,417,502)
Other operating income
229,596
236,075
OPERATING PROFIT
4
4,350,703
3,685,913
Interest receivable and similar income
8
182,730
13,686
Interest payable and similar expenses
9
(18,671)
(10,365)
PROFIT BEFORE TAXATION
4,514,762
3,689,234
Tax on profit
10
(1,200,494)
(494,839)
PROFIT FOR THE FINANCIAL YEAR
3,314,268
3,194,395
All activities of the company are from continuing operations.
The company has no other recognised items of income and expenses other than the results for the year as set out above.
K W BELL GROUP LIMITED
BALANCE SHEET
AS AT 31 MAY 2024
31 May 2024
- 12 -
2024
2023
Notes
£
£
FIXED ASSETS
Tangible assets
12
1,744,417
1,795,698
Investments
13
2
2
1,744,419
1,795,700
CURRENT ASSETS
Stocks
14
20,713,112
19,987,075
Debtors
15
551,377
415,938
Cash at bank and in hand
5,981,250
4,085,950
27,245,739
24,488,963
CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
16
(4,513,241)
(4,675,233)
NET CURRENT ASSETS
22,732,498
19,813,730
TOTAL ASSETS LESS CURRENT LIABILITIES
24,476,917
21,609,430
CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR
17
(352,077)
(314,840)
PROVISIONS FOR LIABILITIES
Deferred tax liability
19
(195,772)
(179,270)
NET ASSETS
23,929,068
21,115,320
CAPITAL AND RESERVES
Called up share capital
21
129,000
129,000
Capital redemption reserve
21,000
21,000
Profit and loss reserves
23,779,068
20,965,320
TOTAL EQUITY
23,929,068
21,115,320
These financial statements have been prepared in accordance with the provisions relating to medium-sized companies.
K W BELL GROUP LIMITED
BALANCE SHEET (CONTINUED)
AS AT 31 MAY 2024
31 May 2024
- 13 -
The financial statements were approved by the board of directors and authorised for issue on 30 January 2025 and are signed on its behalf by:
Jason Bell
Peter Bell
Director
Director
Company registration number 01873421 (England and Wales)
K W BELL GROUP LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 MAY 2024
- 14 -
Share capital
Capital redemption reserve
Profit and loss reserves
Total
Notes
£
£
£
£
BALANCE AT 1 JUNE 2022
129,000
21,000
19,267,325
19,417,325
YEAR ENDED 31 MAY 2023:
Profit and total comprehensive income
-
-
3,194,395
3,194,395
Dividends
11
-
-
(1,496,400)
(1,496,400)
BALANCE AT 31 MAY 2023
129,000
21,000
20,965,320
21,115,320
YEAR ENDED 31 MAY 2024:
Profit and total comprehensive income
-
-
3,314,268
3,314,268
Dividends
11
-
-
(500,520)
(500,520)
BALANCE AT 31 MAY 2024
129,000
21,000
23,779,068
23,929,068
K W BELL GROUP LIMITED
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 MAY 2024
- 15 -
2024
2023
Notes
£
£
CASH FLOWS FROM OPERATING ACTIVITIES
Profit for the year after tax
3,314,268
3,194,395
Adjustments for:
Taxation charged
1,200,494
494,839
Finance costs
18,671
10,365
Investment income
(182,730)
(13,686)
Gain on disposal of tangible fixed assets
(48,662)
(16,175)
Depreciation and impairment of tangible fixed assets
267,999
264,969
Movements in working capital:
Increase in stocks
(726,037)
(1,294,593)
(Increase)/decrease in debtors
(135,439)
19,913
Decrease in creditors
(452,231)
(2,045,955)
Cash generated from operations
3,256,333
614,072
Interest paid
(18,671)
(10,365)
Income taxes paid
(850,000)
(543,203)
Net cash inflow from operating activities
2,387,662
60,504
INVESTING ACTIVITIES
Purchase of tangible fixed assets
(246,975)
(328,875)
Proceeds from disposal of tangible fixed assets
78,919
34,324
Interest received
182,730
13,686
Net cash generated from/(used in) investing activities
14,674
(280,865)
FINANCING ACTIVITIES
Payment of finance leases obligations
(6,515)
81,189
Dividends paid
(500,520)
(1,496,400)
Net cash used in financing activities
(507,035)
(1,415,211)
NET INCREASE/(DECREASE) IN CASH AND CASH EQUIVALENTS
1,895,300
(1,635,573)
Cash and cash equivalents at beginning of year
4,085,950
5,721,523
CASH AND CASH EQUIVALENTS AT END OF YEAR
5,981,250
4,085,950
K W BELL GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2024
- 16 -
1
ACCOUNTING POLICIES
Company information
K W Bell Group Limited is a private company limited by shares incorporated in England and Wales. The registered office is Whimsey Industrial Estate, Cinderford, Gloucestershire, GL14 3JA.
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 accounts have been prepared on the going concern basis under the historical cost convention.
The preparation of financial statements requires the use of certain critical accounting estimates. It also requires management to exercise its judgement in the process of applying the company accounting policies. The areas involving a higher degree of judgement or complexity, or areas where assumptions and estimates are significant to the financial statements are disclosed below.
The financial statements are prepared in sterling, which is the functional currency of the entity.
The company has taken advantage of the exemption under section 402 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.
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
Revenue is recognised in the income statement when control is transferred to the customer. this is deemed to be when title of the property passes to the customer on legal completion and the performance obligation associated with the sale is completed.
Revenue in respect of the sale of residential properties, whether under the Government's Help to Buy scheme or not, is recognised at the fair value of the consideration received or receivable on legal completion.
Revenue from the rendering of services is measured by reference to the stage of completion of the service transaction at the end of the reporting period provided that the outcome can be reliably estimated. When the outcome cannot be reliably estimated, revenue is recognised only to the extent that it is probable the expenses recognised will be recovered.
K W BELL GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2024
1
ACCOUNTING POLICIES
(Continued)
- 17 -
1.4
Research and development expenditure
Research expenditure is written off against profits in the year in which it is incurred. Identifiable development expenditure is capitalised to the extent that the technical, commercial and financial feasibility can be demonstrated.
1.5
Tangible fixed assets
Tangible assets are initially recorded at cost, and subsequently stated at cost less any accumulated depreciation and impairment losses. Any tangible assets carried at revalued amounts are recorded at the fair value at the date of revaluation less any subsequent accumulated depreciation and subsequent accumulated impairment losses.
An increase in carrying amount of an asset as a result of a revaluation, is recognised in other comprehensive income and accumulated in equity, except to the extent it reverses a revaluation decrease of the same asset previously recognised in profit or loss. A decrease in the carrying amount of an asset as a result of revaluation, is recognised in other comprehensive income to the extent of any previously recognised revaluation increase accumulated in equity in respect of that asset. Where a revaluation decrease exceeds the accumulated revaluation gains accumulated in equity in respect of that asset, the excess shall be recognised in profit or loss.
Finance leases and hire purchase contracts
Assets held under finance leases and hire purchase contracts are recognised in the balance sheet as assets and liabilities atthe lower of the fair value of the assets and the present value of the minimum lease payments, which is determined at the inception of the lease term. Any initial direct costs of the lease are added to the amount recognised as an asset
Lease payments are apportioned between the finance charges and reduction of the outstanding lease liability using the effective interest method. Finance charges are allocated to each period so as to produce a constant rate of interest on the remaining balance of the liability.
Depreciation
Depreciation is calculated so as to write off the cost or valuation of an asset, less its residual value, over the useful economic life of that asset as follows:
Freehold land and buildings
2% straight line
Leasehold land and buildings
4% straight line
Fixtures and fittings
10-25% straight line and 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 credited or charged to profit or loss.
No depreciation is provided on freehold land.
K W BELL GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2024
1
ACCOUNTING POLICIES
(Continued)
- 18 -
1.6
Fixed asset investments
Fixed asset investments are initially recorded at cost and subsequently stated at cost less any accumulated impairment losses.
The company has taken advantage of the exemption under section 402 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.
1.7
Impairment of fixed assets
A review for indicators of impairment is carried out at each reporting date, with the recoverable amount being estimated where such indicators exist. Where the carrying value exceeds the recoverable amount, the asset is impaired accordingly. Prior impairments are also reviewed for possible reversal at each reporting date.
For the purposes of impairment testing, when it is not possible to estimate the recoverable amount of an individual asset, an estimate is made of the recoverable amount of the cash-generating unit to which the asset belongs. The cash-generating unit is the smallest identifiable group of assets that includes the asset and generates cash inflows that largely independent of the cash inflows from other assets or group of assets.
1.8
Stocks
Stocks are measured at the lower of cost and estimated selling price less costs to complete and sell. Cost includes all costs of purchase, costs of conversion and other costs incurred in bringing the stock to its present location and condition.
1.9
Financial instruments
Financial instruments are classified and accounted for, according to the substance of the contractual arrangement, as either financial assets, financial liabilities or equity instruments. 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 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.
K W BELL GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2024
1
ACCOUNTING POLICIES
(Continued)
- 19 -
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.
K W BELL GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2024
1
ACCOUNTING POLICIES
(Continued)
- 20 -
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 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.
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
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.
K W BELL GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2024
1
ACCOUNTING POLICIES
(Continued)
- 21 -
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.
1.11
Retirement benefits
Contributions to defined contribution plans are recognised as an expense in the period in which the related service is provided. Prepaid contributions are recognised as an asset to the extent that the prepayment will lead to a reduction in future payments or a cash refund.
When contributions are not expected to be settled wholly within 12 months of the end of the reporting date in which the employees render the related service, the liability is measured on a discounted present value basis. The unwinding of the discount is recognised as a finance cost in profit or loss in the period in which it arises.
1.12
Leases
Lease payments are recognised as an expense over the lease term on a straight-line basis. The aggregate benefit of lease incentives is recognised as a reduction to expense over the lease term, on a straight-line basis.
2
JUDGEMENTS AND KEY SOURCES OF ESTIMATION UNCERTAINTY
The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the amounts reported. These estimates and judgements are continually reviewed and are based on experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.
K W BELL GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2024
2
JUDGEMENTS AND KEY SOURCES OF ESTIMATION UNCERTAINTY
(Continued)
- 22 -
Key sources of estimation uncertainty
Accounting estimates and assumptions are made concerning the future and, by their nature, will rarely equal the related actual outcome. The key assumptions and other sources of estimation uncertainty that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are as follows:
Useful economic life of tangible fixed assets
The annual depreciation charge for tangible fixed assets is sensitive to changes in the estimated useful economic lives and residual values of the assets. The useful economic lives and residual values are re-assessed annually. They are amended when necessary to reflect current estimates, based on technological advancement, future investments, economic utilisation and the physical condition of the assets.
Provisions
Provisions are included against amounts recoverable on contracts and potentially irrecoverable retentions. These provisions require management's best estimate based on a review of expected contract profitability and the future liquidity of contractors.
3
TURNOVER
2024
2023
£
£
Turnover analysed by class of business
Construction
21,831,835
20,621,823
Food and beverage
880,446
802,253
Accomodation
176,350
165,700
22,888,631
21,589,776
The turnover is attributable to the UK based activities of the company.
4
OPERATING PROFIT
2024
2023
Operating profit for the year is stated after charging/(crediting):
£
£
Depreciation of owned tangible fixed assets
267,999
264,968
Profit on disposal of tangible fixed assets
(48,662)
(16,175)
Impairment of trade debtors
(53)
2,169
Operating lease charges
73,340
82,016
K W BELL GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2024
- 23 -
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
12,600
12,200
6
EMPLOYEES
The average monthly number of persons (including directors) employed by the company during the year was:
2024
2023
Number
Number
Production staff
21
19
Management staff
22
21
Total
43
40
Their aggregate remuneration comprised:
2024
2023
£
£
Wages and salaries
1,770,432
1,652,097
Pension costs
119,424
76,761
1,889,856
1,728,858
7
DIRECTORS' REMUNERATION
2024
2023
£
£
Remuneration for qualifying services
192,591
163,682
Company pension contributions to defined contribution schemes
50,000
13,750
242,591
177,432
K W BELL GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2024
- 24 -
8
INTEREST RECEIVABLE AND SIMILAR INCOME
2024
2023
£
£
Interest income
Other interest income
182,730
13,686
9
INTEREST PAYABLE AND SIMILAR EXPENSES
2024
2023
£
£
Other finance costs:
Interest on finance leases and hire purchase contracts
16,261
8,869
Other interest
2,410
1,496
18,671
10,365
10
TAXATION
2024
2023
£
£
Current tax
UK corporation tax on profits for the current period
1,117,256
701,489
Adjustments in respect of prior periods
66,736
(240,197)
Total current tax
1,183,992
461,292
Deferred tax
Origination and reversal of timing differences
16,502
33,547
Total tax charge
1,200,494
494,839
K W BELL GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2024
10
TAXATION
(Continued)
- 25 -
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
4,514,762
3,689,234
Expected tax charge based on the standard rate of corporation tax in the UK of 25.00% (2023: 25.00%)
1,128,691
922,309
Tax effect of expenses that are not deductible in determining taxable profit
487
915
Adjustments in respect of prior years
66,736
(240,197)
Depreciation on assets not qualifying for tax allowances
4,580
Effect of capital allowances and depreciation
4,331
Marginal relief / rate differences
(175,254)
25% uplift on super-deduction assets
(17,265)
Taxation charge for the year
1,200,494
494,839
11
DIVIDENDS
2024
2023
£
£
Final paid
500,520
1,496,400
K W BELL GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2024
- 26 -
12
TANGIBLE FIXED ASSETS
Freehold land and buildings
Leasehold land and buildings
Fixtures and fittings
Motor vehicles
Total
£
£
£
£
£
Cost
At 1 June 2023
1,089,407
69,175
553,767
1,664,181
3,376,530
Additions
13,136
36,311
197,528
246,975
Disposals
(614)
(257,075)
(257,689)
At 31 May 2024
1,102,543
69,175
589,464
1,604,634
3,365,816
Depreciation and impairment
At 1 June 2023
311,343
32,442
344,910
892,137
1,580,832
Depreciation charged in the year
19,158
1,639
52,691
194,511
267,999
Eliminated in respect of disposals
(614)
(226,818)
(227,432)
At 31 May 2024
330,501
34,081
396,987
859,830
1,621,399
Carrying amount
At 31 May 2024
772,042
35,094
192,477
744,804
1,744,417
At 31 May 2023
778,064
36,733
208,857
772,044
1,795,698
The net carrying value of tangible fixed assets includes the following in respect of assets held under finance leases or hire purchase contracts.
2024
2023
£
£
Motor vehicles
744,802
737,879
13
FIXED ASSET INVESTMENTS
2024
2023
Notes
£
£
Investments in subsidiaries
2
2
K W BELL GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2024
- 27 -
14
STOCKS
2024
2023
£
£
Raw materials and consumables
2,871,295
5,222,070
Work in progress
17,841,817
14,765,005
20,713,112
19,987,075
15
DEBTORS
2024
2023
Amounts falling due within one year:
£
£
Trade debtors
75,638
89,125
Other debtors
187,203
52,150
Prepayments and accrued income
288,536
274,663
551,377
415,938
16
CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
2024
2023
Notes
£
£
Obligations under finance leases
18
338,128
381,881
Trade creditors
1,587,023
1,993,494
Amounts owed to group undertakings
415,561
276,984
Corporation tax
405,671
71,679
Other taxation and social security
83,182
64,901
Other creditors
1,409,140
1,552,347
Accruals and deferred income
274,536
333,947
4,513,241
4,675,233
17
CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR
2024
2023
Notes
£
£
Obligations under finance leases
18
352,077
314,840
K W BELL GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2024
- 28 -
18
FINANCE LEASE OBLIGATIONS
2024
2023
Future minimum lease payments due under finance leases:
£
£
Within one year
361,746
397,830
In two to five years
376,669
338,541
738,415
736,371
Less: future finance charges
(48,210)
(39,650)
690,205
696,721
Finance lease payments represent rentals payable by the company for certain items of plant and machinery. Leases include purchase options at the end of the lease period, and no restrictions are placed on the use of the assets. All leases are on a fixed repayment basis and no arrangements have been entered into for contingent rental payments.
19
DEFERRED TAXATION
The following are the major deferred tax liabilities and assets recognised by the company and movements thereon:
Liabilities
Liabilities
2024
2023
Balances:
£
£
Accelerated capital allowances
196,932
180,290
Asset on other timing
(1,160)
(1,020)
195,772
179,270
2024
Movements in the year:
£
Liability at 1 June 2023
179,270
Charge to profit or loss
16,502
Liability at 31 May 2024
195,772
The deferred tax liability set out above is expected to decrease in 2025 and relates to accelerated capital allowances that are expected to mature within the same period.
K W BELL GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2024
- 29 -
20
RETIREMENT BENEFIT SCHEMES
2024
2023
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
69,242
63,011
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 shares of £1 each
129,000
129,000
129,000
129,000
22
RESERVES
Called up share capital - this represents the nominal value of shares that have been issued.
Capital redemption reserve - this reserve records the nominal value of shares repurchased by the company.
Profit and loss account - this includes all current and prior period retained profit and losses,
23
OPERATING LEASE COMMITMENTS
Lessee
The total future minimum lease payments under non-cancellable operating leases are as follows:
2024
2023
£
£
Within one year
18,909
18,909
Between two and five years
14,866
30,542
In over five years
35,200
35,200
68,975
84,651
24
ULTIMATE CONTROLLING PARTY
In the opinion of the directors the company is controlled by Mr P Bell.
K W BELL GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2024
- 30 -
25
CONTINGENCIES
The company has entered into guarantees which at 31 May 2024 totalled £nil.
26
DIRECTORS' ADVANCES, CREDITS AND GUARANTEES
Included in other creditors are the following balances due to directors:
2024
2023
£
£
Directors
962,416
1,084,088
962,416
1,084,088
The director's loan accounts are unsecured, interest free and repayable on demand.
During the year dividends of £500,520 (2023 - £1,496,400) were paid to the directors.
27
ANALYSIS OF CHANGES IN NET FUNDS
1 June 2023
Cash flows
31 May 2024
£
£
£
Cash at bank and in hand
4,085,950
1,895,300
5,981,250
Obligations under finance leases
(696,721)
6,516
(690,205)
3,389,229
1,901,816
5,291,045
28
RELATED PARTY TRANSACTIONS
During the year the company traded with entities controlled by key management. The aggregated totals are below:
- Purchases from related entities £3,931,225 (2023 - £4,755,569)
- Sales to related entities £2,058,244 (2023 - £2,219,097)
- Balance due from related entities £78,170 (2023 - £95,098)
- Balance due to related entities £493,519 (2023 - £334,183)
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