REGISTERED NUMBER: 05126436 (England and Wales) |
KAYE ALUMINIUM (HOLDINGS) LIMITED |
GROUP STRATEGIC REPORT, |
REPORT OF THE DIRECTORS AND |
AUDITED |
CONSOLIDATED FINANCIAL STATEMENTS |
FOR THE YEAR ENDED |
31 DECEMBER 2023 |
REGISTERED NUMBER: 05126436 (England and Wales) |
KAYE ALUMINIUM (HOLDINGS) LIMITED |
GROUP STRATEGIC REPORT, |
REPORT OF THE DIRECTORS AND |
AUDITED |
CONSOLIDATED FINANCIAL STATEMENTS |
FOR THE YEAR ENDED |
31 DECEMBER 2023 |
KAYE ALUMINIUM (HOLDINGS) LIMITED (REGISTERED NUMBER: 05126436) |
CONTENTS OF THE CONSOLIDATED FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
Page |
Company Information | 1 |
Group Strategic Report | 2 |
Report of the Directors | 7 |
Report of the Independent Auditors | 9 |
Consolidated Income Statement | 13 |
Consolidated Other Comprehensive Income | 14 |
Consolidated Statement of Financial Position | 15 |
Company Statement of Financial Position | 17 |
Consolidated Statement of Changes in Equity | 18 |
Company Statement of Changes in Equity | 19 |
Consolidated Statement of Cash Flows | 20 |
Notes to the Consolidated Statement of Cash Flows | 21 |
Notes to the Consolidated Financial Statements | 23 |
KAYE ALUMINIUM (HOLDINGS) LIMITED |
COMPANY INFORMATION |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
DIRECTORS: |
SECRETARY: |
REGISTERED OFFICE: |
REGISTERED NUMBER: |
AUDITORS: |
Sidings House |
Sidings Court |
Lakeside |
Doncaster |
South Yorkshire |
DN4 5NU |
KAYE ALUMINIUM (HOLDINGS) LIMITED (REGISTERED NUMBER: 05126436) |
GROUP STRATEGIC REPORT |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
The directors present their strategic report of the Company and the Group for the year ended 31 December 2023. |
PRINCIPAL ACTIVITY AND PLACE OF BUSINESS |
The principal activity of the Group continues to be the production, finishing, and where appropriate the coating of aluminium extrusions to high quality specifications. |
Kaye Aluminium Holdings Limited is a Company incorporated and domiciled in England and Wales and has its registered office at its UK manufacturing facility , based at Ogden Road, Wheatley Hills, Doncaster, South Yorkshire. |
The Kaye Aluminium Holdings Limited Group trades as Exlabesa, a brand owned by the Group. |
KAYE ALUMINIUM (HOLDINGS) LIMITED (REGISTERED NUMBER: 05126436) |
GROUP STRATEGIC REPORT |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
REVIEW OF BUSINESS |
The directors remain satisfied with the Group wide performance, despite difficult trading conditions for energy intensive industries. |
Turnover levels for the Group have decreased in 2023 due to the following factors: |
a) | A fire at the UK factory led to unscheduled press downtime, negatively impacting production and turnover. Insurance proceeds related to this incident have been recognised under Exceptional Items. |
b) | The strengthening of the pound against other trading currencies during the year compared to 2022 has further reduced reported turnover from certain markets. |
c) | The US subsidiary experienced a reduction in turnover due to the temporary shutdown of one press line for upgrades, which is expected to enhance capacity and efficiency in the long term. |
Despite these challenges, the Group has taken proactive steps to mitigate the impact, including leveraging insurance recoveries and focusing on operational improvements. Gross profit increased to £30.3 million (2022: £28.4 million), reflecting improvements in efficiency despite turnover decreasing to £182.1 million (2022: £186.8 million). EBITDA also showed resilience, increasing to £18.3 million (2022: £17.9 million). |
In August 2023, the Group completed the acquisition of several entities in France and Belgium: Flandrialys BV, Flandria Aluminium, Aimé Claeys, Flandria Participations, Alutrade, and Aluminium Systèmes. These acquisitions significantly expand the Group’s presence in key European markets and align with our strategic objectives. The integration of these businesses is expected to create operational synergies and provide opportunities for further growth. |
Additionally, the directors made the strategic decision to close the Moroccan subsidiary, Alu-Stock SARL, in February 2023. This closure was due to the business not meeting performance expectations. The formal liquidation process is ongoing. |
Across the Group, the pressures on margins eased as energy costs began to decrease, however other inflationary pressures remained. Ongoing investments in plant infrastructure and the strategic expansion of the customer base have positioned the Group for recovery and sustained growth. |
Financial Key Performance Indicators |
2023 | 2022 | 2021 |
Turnover | £182,124,239 | £186,782,199 | £152,730,254 |
Gross Profit | £30,284,892 | £28,358,930 | £33,495,535 |
Gross Profit percentage | 16,6% | 15.2% | 21.9% |
EBITDA | £18,472,474 | £17,857,421 | £25,063,061 |
Net Profit before Tax | £18,339,078 | £14,680,475 | £22,353,512 |
Cash at Bank & in Hand | £23,621,487 | £23,748,090 | £22,894,510 |
Net Current Assets | £46,182,773 | £43,026,855 | £36,274,363 |
Net Assets | £86,878,842 | £71,683,032 | £59,177,653 |
Non-financial key performance indicators: |
Staff Retention |
Senior staff retention remains a priority, with the successful appointment of three senior managers to the main Group board post-year-end. All existing senior managers have continued in their roles, highlighting the Group’s strong commitment to nurturing internal talent and providing opportunities for advancement. |
Utlitisation rates of press |
KAYE ALUMINIUM (HOLDINGS) LIMITED (REGISTERED NUMBER: 05126436) |
GROUP STRATEGIC REPORT |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
One of our key non-financial performance indicators worth highlighting is the utilisation rates of our plant facilities. While it's true that these rates decreased in 2023, due to unscheduled press downtime, this was a direct result of the UK factory fire and the press upgrade in the US. These measures, though disruptive in the short term, are expected to enhance production capacity. By increasing our production capacity, we have positioned ourselves to better meet our customers' needs and respond swiftly when the global market for aluminium profiles experiences an upturn. This proactive approach ensures that we can efficiently scale our production without overburdening our equipment during market fluctuations, optimising our ability to capture growth opportunities and adapt to changing market dynamics. Our focus on capacity expansion is a testament to our commitment to long-term sustainability and customer satisfaction. |
Failure and scrappage rates |
The Group continues to see improvements in reducing failure and scrappage rates, driven by investments in state-of-the-art infrastructure. This progress reflects the Group’s commitment to operational efficiency and environmental sustainability. |
PRINCIPAL RISKS AND UNCERTAINTIES |
Sales and Profit Growth Risk: Our group operates in a fiercely competitive marketplace, and we acknowledge that we are not immune to the impacts of global economic fluctuations and adverse exchange rate movements. The ongoing challenges in market conditions pose a potential risk to the realisation of our Group's overarching business plan and future success strategies. In the event of a further deterioration in market conditions, there is an inherent risk to the achievement of our strategic objectives and continued growth trajectory. |
Cost of Materials Price Fluctuations Risk: We recognise that our Group is exposed to the inherent volatility of global market forces affecting the prices of the raw materials we procure. At present, we face the challenge of relatively high raw material costs. This susceptibility to price fluctuations necessitates careful monitoring and management to mitigate potential adverse impacts on our profitability. Our proactive approach to cost control and strategic sourcing is pivotal in mitigating this risk. |
Credit Risk: There exists the potential for credit risk, wherein one party may cause financial losses to another party when fulfilling their obligations. Our Group has implemented stringent policies designed to minimise such losses. We extend credit terms to customers only after a thorough evaluation of their payment history and creditworthiness procedures. Details regarding our group's debtors can be found in note 16 of the financial statements, offering transparency and accountability in our credit risk management efforts. |
KAYE ALUMINIUM (HOLDINGS) LIMITED (REGISTERED NUMBER: 05126436) |
GROUP STRATEGIC REPORT |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
SECTION 172(1) STATEMENT |
This Section 172 Statement has been prepared by the Board of Directors of Kaye Aluminium (Holdings) Limited, a leading aluminium extrusion business with operations in the United Kingdom, Poland, Morocco, and the United States. As a responsible and sustainable corporate entity, we recognise the importance of the Companies Act 2006, which requires directors to have regard to various factors when promoting the success of the Group. This statement outlines how we have considered these factors in the course of our decision-making and operations during the financial year ending 31 December 2023. |
Promoting the Success of the Company: |
The Board's primary duty is to promote the success of the Group for the benefit of its shareholders, while also considering the interests of other stakeholders. To achieve this, we have taken into account various factors as stipulated in Section 172 of the Companies Act 2006. |
Interests of Shareholders: |
Our first responsibility is to our shareholders. We have consistently worked towards maximising shareholder value through prudent financial management, strategic investments, and efforts to increase profitability. Our financial performance in a difficult trading environment demonstrates our commitment to this duty. |
Interests of Employees: |
The Group employs a dedicated and skilled workforce of 387 staff across its locations in the UK, Poland, Morocco, the US, France and Belgium. We recognise the importance of our employees in the success of our business and have strived to create a safe, inclusive, and supportive work environment. We have invested in employee training, health and safety programs, and initiatives to enhance job satisfaction. |
Interests of Customers: |
Our business relies on maintaining strong relationships with our customers. We are committed to delivering high-quality aluminium extrusion products and providing excellent customer service. We actively seek feedback from our customers to continuously improve our offerings and meet their evolving needs. |
Interests of Suppliers: |
We value our relationships with suppliers and understand that their reliability and quality directly impact our operations. We work closely with our suppliers to maintain mutually beneficial partnerships, fostering innovation, and ensuring supply chain resilience. |
Impact on the Community and the Environment: |
The Group is committed to operating responsibly and minimising our environmental footprint. We have implemented sustainability initiatives to reduce energy consumption, waste generation, and emissions. |
Compliance with Legal and Ethical Standards: |
We have maintained rigorous compliance with all relevant legal and ethical standards in all our operating regions. This includes adhering to local employment laws, environmental regulations, and international trade agreements. We are committed to conducting our business with integrity and transparency. |
Long-term Success: |
Our focus extends beyond short-term financial gains. We have a clear long-term strategy that encompasses sustainable growth, innovation, and adapting to changing market dynamics. We consider the long-term interests of our stakeholders when making strategic decisions. |
Conclusion |
In conclusion, Kaye Aluminium Holdings Limited and Group recognises and embraces its responsibilities under Section 172 of the Companies Act 2006. We are committed to promoting the success of the while Company and Group considering the interests of our shareholders, employees, customers, suppliers, communities, and the environment. Our operations in the UK, Poland, Morocco France, Belgium, and the US reflect our dedication to responsible corporate governance and sustainable business practices. We will continue to review and adapt our approach to ensure we meet the evolving needs of our stakeholders while driving long-term success. |
KAYE ALUMINIUM (HOLDINGS) LIMITED (REGISTERED NUMBER: 05126436) |
GROUP STRATEGIC REPORT |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
LIQUIDITY/ CASHFLOW |
Our Directors and Senior Management team diligently monitor the group's cash flow on a regular basis, ensuring that we maintain a robust liquidity position. As of the most recent assessment, our group holds substantial cash reserves, £23.6 million, which serve as a financial cushion to mitigate any unforeseen liquidity challenges. |
These reserves enable us to meet our short-term obligations promptly, provide for working capital needs, and capitalise on strategic opportunities as they arise. In addition to closely monitoring our cash position, we continue to assess and refine our liquidity risk management strategies to align with the evolving financial landscape. |
Our proactive approach to liquidity risk management ensures that we are well-prepared to navigate potential financial uncertainties, safeguarding the stability and continuity of our business operations. As part of our commitment to sound financial stewardship, we remain vigilant in monitoring, assessing, and adapting our liquidity management practices to uphold the financial health and resilience of the Group.. |
EMPLOYEES |
The group continues to seek to recruit good quality staff and to adopt progressive policies of internal and external training so as to maximise their performance. |
FUTURE DEVELOPMENTS |
The Board anticipates building upon the impressive historical growth and profitability achieved by the Group. We remain dedicated to seeking new investment opportunities that will further enhance the strength and resilience of our business. |
The Group has successfully expanded into the French and Belgian markets through the acquisition of the Flandrialys BV Group of companies in August 2023. We are focused on upgrading the infrastructure of these newly acquired businesses to align them with the Group’s operational standards and to maximise synergies. |
Additionally, the Group has acquired a new premises in the UK to relocate Exlabesa Building Systems. This relocation will provide greater capacity for the expansion of the UK extrusion business, enabling the Group to better meet growing customer demand and enhance its market position. |
UKRAINE CONFLICT |
The ongoing conflict in Ukraine has had a significant impact on our Group, particularly with regard to global inflation and the escalation of energy costs. As an energy-intensive manufacturing operation, our business heavily relies on a stable and affordable energy supply. The disruption in energy markets due to geopolitical tensions has led to a notable increase in energy costs, directly affecting our production costs. Additionally, the ripple effect of this conflict has contributed to global inflationary pressures, further challenging our ability to maintain competitive pricing and overall profitability. |
ON BEHALF OF THE BOARD: |
KAYE ALUMINIUM (HOLDINGS) LIMITED (REGISTERED NUMBER: 05126436) |
REPORT OF THE DIRECTORS |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
The directors present their report with the financial statements of the Company and the Group for the year ended 31 December 2023. |
DIVIDENDS |
No dividends will be distributed for the year ended 31 December 2023. |
EVENTS SINCE THE END OF THE YEAR |
Information relating to events since the end of the year is given in the notes to the financial statements. |
DIRECTORS |
The directors shown below have held office during the whole of the period from 1 January 2023 to the date of this report. |
Other changes in directors holding office are as follows: |
Maria Dolores Marino Gonzales acted as non-executive director throughout the year. |
GOING CONCERN |
The Company and Group has considerable financial resources , as consequence the Directors believe that the Group is well placed to manage its business risks successfully. |
DISABLED EMPLOYEES |
The Company gives full consideration to applications for employment from disabled persons where the requirements of the job can adequately fulfilled by a handicapped or disabled person. |
Where existing employes become disabled, it is the Company's policy wherever practicable to provide continuing employment under normal terms and conditions, and to provide training and career development and promotion to disabled employees wherever appropriate. |
KAYE ALUMINIUM (HOLDINGS) LIMITED (REGISTERED NUMBER: 05126436) |
REPORT OF THE DIRECTORS |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
STATEMENT OF DIRECTORS' RESPONSIBILITIES |
The directors are responsible for preparing the Group Strategic Report, the Report of the Directors and the financial statements in accordance with applicable law and regulations. |
Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law), including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'. Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the Company and the Group and of the profit or loss of the Group for that period. In preparing these financial statements, the directors are required to: |
- | select suitable accounting policies and then apply them consistently; |
- | make judgements and accounting estimates that are reasonable and prudent; |
- | state whether applicable accounting standards have been followed, subject to any material departures disclosed and explained in the financial statements; |
- | prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Company will continue in business. |
The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the Company's and the Group's transactions and disclose with reasonable accuracy at any time the financial position of the Company and the Group and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the Company and the Group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. |
STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS |
So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the Group's auditors are unaware, and each director has taken all the steps that he or she ought to have taken as a director in order to make himself or herself aware of any relevant audit information and to establish that the Group's auditors are aware of that information. |
AUDITORS |
The auditors, Xeinadin Audit Limited, will be proposed for re-appointment at the forthcoming Annual General Meeting. |
ON BEHALF OF THE BOARD: |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
KAYE ALUMINIUM (HOLDINGS) LIMITED |
Opinion |
We have audited the financial statements of Kaye Aluminium (Holdings) Limited (the 'Parent Company') and its subsidiaries (the 'Group') for the year ended 31 December 2023 which comprise the Consolidated Income Statement, Consolidated Other Comprehensive Income, Consolidated Statement of Financial Position, Company Statement of Financial Position, Consolidated Statement of Changes in Equity, Company Statement of Changes in Equity, Consolidated Statement of Cash Flows and Notes to the Consolidated Statement of Cash Flows, Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, 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 Group's and of the Parent Company affairs as at 31 December 2023 and of the Group's profit for the year then ended; |
- | have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and |
- | have been prepared in accordance with the requirements of the Companies Act 2006. |
Basis for opinion |
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the Group in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. |
Conclusions relating to going concern |
In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate. |
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the group's and the parent company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue. |
Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report. |
Other information |
The directors are responsible for the other information. The other information comprises the information in the Group Strategic Report and the Report of the Directors, but does not include the financial statements and our Report of the Auditors thereon. |
Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. |
In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard. |
Opinions on other matters prescribed by the Companies Act 2006 |
In our opinion, based on the work undertaken in the course of the audit: |
- | the information given in the Group Strategic Report and the Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and |
- | the Group Strategic Report and the Report of the Directors have been prepared in accordance with applicable legal requirements. |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
KAYE ALUMINIUM (HOLDINGS) LIMITED |
Matters on which we are required to report by exception |
In the light of the knowledge and understanding of the group and the parent company and its environment obtained in the course of the audit, we have not identified material misstatements in the Group Strategic Report or the Report of the Directors. |
We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion: |
- | adequate accounting records have not been kept by the parent company, or returns adequate for our audit have not been received from branches not visited by us; or |
- | the parent company financial statements are not in agreement with the accounting records and returns; or |
- | certain disclosures of directors' remuneration specified by law are not made; or |
- | we have not received all the information and explanations we require for our audit. |
Responsibilities of directors |
As explained more fully in the Statement of Directors' Responsibilities set out on page eight, 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 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 group's and the parent company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the group or the parent company or to cease operations, or have no realistic alternative but to do so. |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
KAYE ALUMINIUM (HOLDINGS) LIMITED |
Auditors' 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 a Report of the Auditors that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements. |
The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below: |
Based on our understanding of the Company and Group, we identified that the principal risks of non-compliance with laws and regulations related to corporation tax legislation and we considered the extent to which non-compliance might have a material effect on the financial statements. |
As part of this assessment we considered both quantitative and qualitative factors. We also considered those laws and regulations that have a direct impact on the preparation of the financial statements, such as the Companies Act 2006 and FRS 102. |
We evaluated management's incentives and opportunities for fraudulent manipulation of the financial statements which included the risk of management override of controls. We determined that the principal risks were related to posting inappropriate journal entries, omitting, advancing or delaying recognition of events and transactions that have occurred during or after the reporting period, and potential management bias in the determination of accounting estimates or judgements to manipulate results. |
Audit procedures performed by the engagement team include: |
- | Enquiring of and obtaining written representation from management in relation to known or suspected instances of non-compliance with laws and regulations and fraud; |
- | Enquiring of entity staff in tax and compliance functions to identify any instances of non-compliance with laws and regulations; |
- | Evaluation of management's controls designed to prevent and detect irregularities; |
- | Review of board meeting minutes and meetings of those charged with governance; |
- | Identifying and, where relevant, testing journal entries posted by senior management or with unusual combinations; |
- | Assessing and evaluating the business rationale of significant transactions outside the normal course of business; |
- | Reviewing financial statement disclosures and testing to supporting documentation to assess compliance with applicable laws and regulations; |
- | Review of correspondence with regulators in so far as they are related to the financial statements; |
- | Incorporating elements of unpredictability into the nature, timing and/or extent of audit procedures performed. |
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. 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 misrepresentation, or through collusion. |
A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Auditors. |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
KAYE ALUMINIUM (HOLDINGS) LIMITED |
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 a Report of the Auditors 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. |
for and on behalf of |
Sidings House |
Sidings Court |
Lakeside |
Doncaster |
South Yorkshire |
DN4 5NU |
KAYE ALUMINIUM (HOLDINGS) LIMITED (REGISTERED NUMBER: 05126436) |
CONSOLIDATED |
INCOME STATEMENT |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
2023 | 2022 |
Notes | £ | £ | £ | £ |
TURNOVER | 3 | 182,124,239 | 186,782,199 |
Cost of sales | 151,839,347 | 158,423,269 |
GROSS PROFIT | 30,284,892 | 28,358,930 |
Distribution costs | 1,821,282 | 3,515,218 |
Administrative expenses | 13,912,607 | 10,624,175 |
15,733,889 | 14,139,393 |
14,551,003 | 14,219,537 |
Other operating income | 304,023 | 459,698 |
OPERATING PROFIT | 5 | 14,855,026 | 14,679,235 |
Exceptional item | 7 | 3,389,761 | - |
Redundancy costs | 7 | (8,826 | ) | - |
18,235,961 | 14,679,235 |
Interest receivable and similar income | 8 | 315,477 | 73,867 |
18,551,438 | 14,753,102 |
Interest payable and similar expenses | 9 | 212,360 | 72,627 |
PROFIT BEFORE TAXATION | 18,339,078 | 14,680,475 |
Tax on profit | 10 | 3,796,649 | 3,358,534 |
PROFIT FOR THE FINANCIAL YEAR |
Profit attributable to: |
Owners of the parent | 14,080,200 | 11,156,929 |
Non-controlling interests | 462,229 | 165,012 |
14,542,429 | 11,321,941 |
KAYE ALUMINIUM (HOLDINGS) LIMITED (REGISTERED NUMBER: 05126436) |
CONSOLIDATED |
OTHER COMPREHENSIVE INCOME |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
2023 | 2022 |
Notes | £ | £ |
PROFIT FOR THE YEAR | 14,542,429 | 11,321,941 |
OTHER COMPREHENSIVE INCOME |
Retranslation of foreign subsidiaries | 893,519 | 1,183,438 |
Income tax relating to other comprehensive income |
- |
- |
OTHER COMPREHENSIVE INCOME FOR THE YEAR, NET OF INCOME TAX |
893,519 |
1,183,438 |
TOTAL COMPREHENSIVE INCOME FOR THE YEAR |
15,435,948 |
12,505,379 |
Total comprehensive income attributable to: |
Owners of the parent | 14,973,719 | 12,340,367 |
Non-controlling interests | 462,229 | 165,012 |
15,435,948 | 12,505,379 |
KAYE ALUMINIUM (HOLDINGS) LIMITED (REGISTERED NUMBER: 05126436) |
CONSOLIDATED STATEMENT OF FINANCIAL POSITION |
31 DECEMBER 2023 |
2023 | 2022 |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Intangible assets | 12 | 4,761,244 | 243,196 |
Tangible assets | 13 | 43,359,625 | 28,966,877 |
Investments | 14 | 105,208 | 105,208 |
48,226,077 | 29,315,281 |
CURRENT ASSETS |
Stocks | 15 | 20,844,844 | 16,355,482 |
Debtors | 16 | 36,502,652 | 27,252,329 |
Cash at bank and in hand | 23,621,487 | 23,748,090 |
80,968,983 | 67,355,901 |
CREDITORS |
Amounts falling due within one year | 17 | 34,786,210 | 24,329,046 |
NET CURRENT ASSETS | 46,182,773 | 43,026,855 |
TOTAL ASSETS LESS CURRENT LIABILITIES |
94,408,850 |
72,342,136 |
CREDITORS |
Amounts falling due after more than one year |
18 |
(3,120,975 |
) |
- |
PROVISIONS FOR LIABILITIES | 21 | (4,409,033 | ) | (659,104 | ) |
NET ASSETS | 86,878,842 | 71,683,032 |
KAYE ALUMINIUM (HOLDINGS) LIMITED (REGISTERED NUMBER: 05126436) |
CONSOLIDATED STATEMENT OF FINANCIAL POSITION - continued |
31 DECEMBER 2023 |
2023 | 2022 |
Notes | £ | £ | £ | £ |
CAPITAL AND RESERVES |
Called up share capital | 22 | 25 | 25 |
Share premium | 23 | 41,840 | 41,840 |
Other reserves | 23 | 563,206 | 2,167,005 |
Retained earnings | 23 | 85,272,004 | 68,694,486 |
SHAREHOLDERS' FUNDS | 85,877,075 | 70,903,356 |
NON-CONTROLLING INTERESTS | 24 | 1,001,767 | 779,676 |
TOTAL EQUITY | 86,878,842 | 71,683,032 |
The financial statements were approved by the Board of Directors and authorised for issue on 4 February 2025 and were signed on its behalf by: |
Mr Felipe Quinta Marino - Director | Mr Francisco Quinta Marino - Director |
Mr Fernando Quinta Marino - Director |
KAYE ALUMINIUM (HOLDINGS) LIMITED (REGISTERED NUMBER: 05126436) |
COMPANY STATEMENT OF FINANCIAL POSITION |
31 DECEMBER 2023 |
2023 | 2022 |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Intangible assets | 12 |
Tangible assets | 13 |
Investments | 14 |
CURRENT ASSETS |
Debtors | 16 |
Cash at bank |
CREDITORS |
Amounts falling due within one year | 17 |
NET CURRENT ASSETS |
TOTAL ASSETS LESS CURRENT LIABILITIES |
CAPITAL AND RESERVES |
Called up share capital | 22 |
Share premium | 23 |
Retained earnings | 23 |
SHAREHOLDERS' FUNDS |
Company's profit for the financial year | 16,437,584 | 98,021 |
The financial statements were approved by the Board of Directors and authorised for issue on |
KAYE ALUMINIUM (HOLDINGS) LIMITED (REGISTERED NUMBER: 05126436) |
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
Called up |
share | Retained | Share |
capital | earnings | premium |
£ | £ | £ |
Balance at 1 January 2022 | 25 | 56,354,119 | 41,840 |
Changes in equity |
Total comprehensive income | - | 12,340,367 | - |
Balance at 31 December 2022 | 25 | 68,694,486 | 41,840 |
Changes in equity |
Total comprehensive income | - | 16,577,518 | - |
Balance at 31 December 2023 | 25 | 85,272,004 | 41,840 |
Other | Non-controlling | Total |
reserves | Total | interests | equity |
£ | £ | £ | £ |
Balance at 1 January 2022 | 2,167,005 | 58,562,989 | 614,664 | 59,177,653 |
Changes in equity |
Total comprehensive income | - | 12,340,367 | 165,012 | 12,505,379 |
Balance at 31 December 2022 | 2,167,005 | 70,903,356 | 779,676 | 71,683,032 |
Changes in equity |
Dividends | - | - | (240,138 | ) | (240,138 | ) |
Total comprehensive income | (1,603,799 | ) | 14,973,719 | 462,229 | 15,435,948 |
Balance at 31 December 2023 | 563,206 | 85,877,075 | 1,001,767 | 86,878,842 |
KAYE ALUMINIUM (HOLDINGS) LIMITED (REGISTERED NUMBER: 05126436) |
COMPANY STATEMENT OF CHANGES IN EQUITY |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
Called up |
share | Retained | Share | Total |
capital | earnings | premium | equity |
£ | £ | £ | £ |
Balance at 1 January 2022 |
Changes in equity |
Total comprehensive income | - | - |
Balance at 31 December 2022 |
Changes in equity |
Total comprehensive income | - | - |
Balance at 31 December 2023 |
KAYE ALUMINIUM (HOLDINGS) LIMITED (REGISTERED NUMBER: 05126436) |
CONSOLIDATED STATEMENT OF CASH FLOWS |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
2023 | 2022 |
Notes | £ | £ |
Cash flows from operating activities |
Cash generated from operations | 1 | 24,374,270 | 13,365,263 |
Interest paid | (212,360 | ) | (72,627 | ) |
Tax paid | (4,032,959 | ) | (3,498,901 | ) |
Net cash from operating activities | 20,128,951 | 9,793,735 |
Cash flows from investing activities |
Purchase of intangible fixed assets | (8,526 | ) | (35,558 | ) |
Purchase of tangible fixed assets | (8,165,302 | ) | (9,131,790 | ) |
Purchase of fixed asset investments | - | (105,208 | ) |
Sale of tangible fixed assets | 21,357 | - |
Sale of fixed asset investments | - | 113,295 |
Cash outflow on acquisition of subsidiar | (11,817,140 | ) | - |
Interest received | 315,477 | 73,867 |
Net cash from investing activities | (19,654,134 | ) | (9,085,394 | ) |
Cash flows from financing activities |
Net Loan advances/(repayments) | (614,647 | ) | (262,139 | ) |
Net movement of invoice finance | (4,135 | ) | (49,269 | ) |
Amount introduced by directors | - | 24,822 |
Amount withdrawn by directors | (21,022 | ) | - |
Net cash from financing activities | (639,804 | ) | (286,586 | ) |
(Decrease)/increase in cash and cash equivalents | (164,987 | ) | 421,755 |
Cash and cash equivalents at beginning of year |
2 |
23,748,090 |
22,894,510 |
Effect of foreign exchange rate changes | 38,384 | 431,825 |
Cash and cash equivalents at end of year | 2 | 23,621,487 | 23,748,090 |
KAYE ALUMINIUM (HOLDINGS) LIMITED (REGISTERED NUMBER: 05126436) |
NOTES TO THE CONSOLIDATED STATEMENT OF CASH FLOWS |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
1. | RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS |
2023 | 2022 |
£ | £ |
Profit before taxation | 18,339,078 | 14,680,475 |
Depreciation charges | 3,301,971 | 2,414,052 |
Loss on disposal of fixed assets | 94,756 | 726,051 |
Loss on revaluation of fixed assets | - | 38,831 |
Foreign exchange rate adjustments | 253,977 | 623,940 |
Retirement benefits provisions | - | 71,955 |
Finance costs | 212,360 | 72,627 |
Finance income | (315,477 | ) | (73,867 | ) |
21,886,665 | 18,554,064 |
Decrease in stocks | 1,418,121 | 7,741,418 |
Increase in trade and other debtors | (456,580 | ) | (4,221,682 | ) |
Increase/(decrease) in trade and other creditors | 1,526,064 | (8,708,537 | ) |
Cash generated from operations | 24,374,270 | 13,365,263 |
2. | CASH AND CASH EQUIVALENTS |
The amounts disclosed on the Statement of Cash Flows in respect of cash and cash equivalents are in respect of these Statement of Financial Position amounts: |
Year ended 31 December 2023 |
31.12.23 | 1.1.23 |
£ | £ |
Cash and cash equivalents | 23,621,487 | 23,748,090 |
Year ended 31 December 2022 |
31.12.22 | 1.1.22 |
£ | £ |
Cash and cash equivalents | 23,748,090 | 22,894,510 |
KAYE ALUMINIUM (HOLDINGS) LIMITED (REGISTERED NUMBER: 05126436) |
NOTES TO THE CONSOLIDATED STATEMENT OF CASH FLOWS |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
3. | ANALYSIS OF CHANGES IN NET FUNDS |
On |
At 1.1.23 | Cash flow | acquisition | At 31.12.23 |
£ | £ | £ | £ |
Net cash |
Cash at bank |
and in hand | 23,748,090 | (126,603 | ) | - | 23,621,487 |
23,748,090 | (126,603 | ) | - | 23,621,487 |
Debt |
Debts falling due |
within 1 year | (455,280 | ) | (1,250,237 | ) | 575,871 | (1,129,646 | ) |
Debts falling due |
after 1 year | - | (4,354,118 | ) | 2,533,630 | (1,820,488 | ) |
(455,280 | ) | (5,604,355 | ) | 3,109,501 | (2,950,134 | ) |
Total | 23,292,810 | (5,730,958 | ) | 3,109,501 | 20,671,353 |
KAYE ALUMINIUM (HOLDINGS) LIMITED (REGISTERED NUMBER: 05126436) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
1. | STATUTORY INFORMATION |
Kaye Aluminium (Holdings) Limited is a |
2. | ACCOUNTING POLICIES |
Basis of preparing the financial statements |
Going concern |
The Financial Statements have been prepared on a going concern basis which the directors consider to be appropriate. The Company and Group has considerable financial resources, as a consequence the directors believe that the Group is well placed to manage it business risks successfully. |
Basis of consolidation |
The Financial Statements consolidate the results of Kaye Aluminium (Holdings) Limited and all its subsidiary undertakings. Subsidiaries are all entities over which the group has control. The group controls an when the group is exposed to, or has the rights to, variable returns from its involvement with the entity and has the ability to affect those returns through its power over the entity. |
Subsidiaries are fully consolidated from the date on which control is transferred to the group. |
The consolidation stops from the date that control ceases. |
The consolidation is based on uniform accounting policies across all group companies in all material respects, and elimination of intra-group transactions. |
Any goodwill arising on consolidation is written off against on a straight line basis over the useful economic life of the asset, which is 10 years. A provision is made for any impairment. |
All group undertakings included in the consolidated financial statements have 31 December accounting period ends, with the exception of Flandrialys BV which has an accounting period end of 30 June. Management have drawn up interim accounts to 31 December for Flandrialys BV which have been included in the consolidation |
Entities acquired during the year are consolidated using the acquisition method. |
KAYE ALUMINIUM (HOLDINGS) LIMITED (REGISTERED NUMBER: 05126436) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
2. | ACCOUNTING POLICIES - continued |
Significant judgements and estimates |
The Group prepares its consolidated financial statements in accordance with FRS102, the application of which often requires judgements to be made by management when formulating the group's financial position and results. The directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates. |
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised if the revision affects only that period, or in the period of the review and future periods if the revision affects both current and future periods. |
Critical accounting estimates and assumptions. |
Investment impairment - In the Company’s individual accounts, investments in subsidiaries are measured at cost less provision for permanent diminution in value. |
The carrying value of investments are reviewed annually for impairment. Impairment losses provided for any diminution in value are recognised in the Income Statement. |
Any investment impairment is dependent upon assumptions which could change in the next financial year and could have a material effect on the carrying value of assets and liabilities at the Balance Sheet date. |
Depreciation of fixed assets - The directors assess depreciation rates based on their collective experience and the manufacturer specifications of the assets. The directors take into consideration the historical performance of similar assets, both within the company and industry standards. Historical data is used to determine the expected patterns of asset usage and wear and tear. |
It is important to note that estimating the useful economic life of assets inherently involves a degree of uncertainty due to the variables mentioned above. While every effort is made to make informed and reasonable estimates, future events and circumstances may differ from these estimates. |
Valuation of closing stocks - The valuation of closing finished goods stocks is a critical accounting estimate as it directly impacts the Company's/Group's reported assets, cost of goods sold, and ultimately, its profitability. The directors assess the valuation of closing finished goods stocks based on their standard cost price. This estimate is performed annually and incorporates the following key components material price, labour costs and overheads. |
It is important to note that the valuation of closing finished goods stocks involves a degree of uncertainty. Fluctuations in input costs, production efficiency, and other factors may lead to deviations from the standard cost estimates. |
The following principal accounting policies have been applied consistently throughout the period: |
KAYE ALUMINIUM (HOLDINGS) LIMITED (REGISTERED NUMBER: 05126436) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
2. | ACCOUNTING POLICIES - continued |
Turnover |
Turnover is measured at the fair value of the consideration received or receivable, net of discounts, rebates and value added taxes. Turnover includes revenue earned from the sale of goods. |
Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer (usually on dispatch of the goods), the amount of revenue can be measured reliably, it is probable that economic benefits associated with the transaction will flow to the Group and the costs incurred or to be incurred in respect of the transaction can be measured reliably. |
Where payments are received from customers in advance of goods provided, the amounts are recorded as deferred income and included as part of creditors due within one year. |
Intangible assets |
Intangible assets are initially measured at cost. After initial recognition, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses. |
Amortisation of intangible fixed assets is charged to administration expenses in the Consolidated Income Statement. |
Tangible fixed assets |
Tangible fixed assets are stated at cost or valuation, net of depreciation and any provision for impairment. |
Depreciation |
Depreciation is provided on all tangible fixed assets, other than investment properties and freehold land, at |
rates calculated to write off the cost or valuation, less estimated residual value, of each asset over its expected useful life, as follows: |
Freehold buildings 50 years straight line. |
Plant and machinery between 15% and 25% reducing balance basis. |
Fixtures and fittings 25% reducing balance basis. |
Motor vehicles 25% straight line basis. |
Residual value represents the estimated amount which would currently be obtained from disposal of an asset, after deducting estimated costs of disposal, if the asset were already of the age and in the condition expected at the end of its useful life. |
Stocks |
Stocks and work in progress are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items. |
Cost is calculated using the first-in, first-out method and includes all purchase, transport, and handling costs in bringing stocks to their present location and condition. |
Financial instruments |
Financial assets and liabilities are recognised when the Group becomes party to the contractual provisions of the relevant instrument. All of the Group's financial instruments are cash or basic debt instruments, comprising trade receivables and payables, other receivables and payables and a related party loan. Such financial instruments are measured initially at the transaction price and subsequently at amortised cost. Financial instruments are considered for objective evidence of impairment at the end of each reporting period and any impairment is recognised in profit or loss. |
KAYE ALUMINIUM (HOLDINGS) LIMITED (REGISTERED NUMBER: 05126436) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
2. | ACCOUNTING POLICIES - continued |
Taxation |
Taxation for the year comprises current and deferred tax. Tax is recognised in the Consolidated Income Statement, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. |
Current or deferred taxation assets and liabilities are not discounted. |
Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the statement of financial position date. |
Deferred tax |
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the statement of financial position date. |
Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference. |
Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. |
Foreign currencies |
(a) Functional and presentation currency |
Items included in the financial statements of each of the group's entities are measured using the currency th of the primary economic environment in which the entity operates ("the functional currency"). The consolidated financial statements are presented in Pounds Sterling ("£" or "Sterling"), which is the group's presentation currency and rounded to the nearest £1. |
(b) Transactions and balances |
Assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the statement of financial position date. Transactions in foreign currencies are translated into sterling at the rate of exchange ruling at the date of transaction. Exchange differences are taken into account in arriving at the operating result |
(c) Group companies |
The results and financial position of all the group entities (none of which has the currency of a hyper-inflationary economy) that have a functional currency different from the presentation currency are translated into the presentation currency as follows: |
i | assets and liabilities for each statement of financial position presented are translated at the closing rate at the year end; |
ii | income and expenses for each income statement are translated at average exchange rates; and |
iii | all resulting exchange differences are recognised in other comprehensive income. |
Hire purchase and leasing commitments |
Rentals paid under operating leases are charged to profit or loss on a straight line basis over the period of the lease. |
KAYE ALUMINIUM (HOLDINGS) LIMITED (REGISTERED NUMBER: 05126436) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
2. | ACCOUNTING POLICIES - continued |
Pension costs and other post-retirement benefits |
Defined contribution plans and other long term employee benefits. |
Subsidiaries within the group operate defined contribution plans. |
A defined contribution plan is a post-employment benefit plan under which the company pays fixed contributions into a separate entity and will have no legal or constructive obligation to pay further amounts. Obligations for contributions to defined contribution pension plans are charged to the profit or loss in the period during which services are rendered by employees. |
3. | TURNOVER |
The turnover and profit before taxation are attributable to the one principal activity of the Group. |
An analysis of turnover by geographical market is given below: |
2023 | 2022 |
£ | £ |
United Kingdom | 25,354,599 | 30,606,733 |
Europe | 89,495,574 | 70,263,860 |
US | 42,909,111 | 64,319,383 |
Rest of the world | 24,364,955 | 21,592,223 |
182,124,239 | 186,782,199 |
Flandria Aluminium SAS contributed £15,341,580 of post acquisition european turnover. |
4. | EMPLOYEES AND DIRECTORS |
2023 | 2022 |
£ | £ |
Wages and salaries | 11,537,277 | 8,676,738 |
Social security costs | 898,855 | 786,535 |
12,436,132 | 9,463,273 |
The average monthly number of employees during the year was: |
2023 | 2022 |
Production | 79 | 186 |
Administration and sales | 308 | 86 |
387 | 272 |
The average monthly number of employees employed in the UK during the year was: |
2023 | 2022 |
UK based employees and directors | 76 | 68 |
KAYE ALUMINIUM (HOLDINGS) LIMITED (REGISTERED NUMBER: 05126436) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
2023 | 2022 |
£ | £ |
Directors' remuneration | 175,842 | 127,731 |
Directors' pension contributions to money purchase schemes | 1,146 | - |
The number of directors to whom retirement benefits were accruing was as follows: |
Money purchase schemes | 1 | - |
5. | OPERATING PROFIT |
The operating profit is stated after charging: |
2023 | 2022 |
£ | £ |
Hire of plant and machinery | 275,027 | 177,748 |
Depreciation - owned assets | 3,107,204 | 2,378,268 |
Loss on disposal of fixed assets | 94,756 | 726,051 |
Goodwill amortisation | 156,805 | - |
Patents and licences amortisation | 37,962 | 35,784 |
Foreign exchange differences | 215,027 | 685,983 |
6. | AUDITORS' REMUNERATION |
2023 | 2022 |
£ | £ |
Fees payable to the Company's auditors and their associates for the audit of the Company's financial statements |
33,095 |
28,940 |
Fees payable to the Company's auditors and their associates for other | services to the group: |
The auditing of accounts of any associate of the company | 21,020 | 18,665 |
Auditors' remuneration for non audit work | 1,793 | 2,400 |
Taxation compliance services | 3,745 | 3,500 |
Other non- audit services | 2,231 | 7,455 |
7. | EXCEPTIONAL ITEMS |
2023 | 2022 |
£ | £ |
Exceptional item | 3,389,761 | - |
Redundancy costs | (8,826 | ) | - |
3,380,935 | - |
Proceeds relate to losses incurred by Exlabesa Extrusions (Doncaster) Limited in the year due to unscheduled downtime. |
Redundancy costs relate to the cessation of Alu Stock SARL. |
KAYE ALUMINIUM (HOLDINGS) LIMITED (REGISTERED NUMBER: 05126436) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
8. | INTEREST RECEIVABLE AND SIMILAR INCOME |
2023 | 2022 |
£ | £ |
Deposit account interest | 297,399 | 73,867 |
HMRC interest | 18,078 | - |
315,477 | 73,867 |
9. | INTEREST PAYABLE AND SIMILAR EXPENSES |
2023 | 2022 |
£ | £ |
Bank interest | 163,653 | 25,084 |
Bank loan interest | 9,757 | 1,654 |
Invoice discounting charges & |
interest | - | 1,401 |
Other interest | 38,950 | 44,488 |
212,360 | 72,627 |
10. | TAXATION |
Analysis of the tax charge |
The tax charge on the profit for the year was as follows: |
2023 | 2022 |
£ | £ |
Current tax: |
UK corporation tax | 1,116,868 | 760,552 |
Underprovision in earlier year | - | (48,506 | ) |
Foreign tax | 2,332,511 | 1,494,487 |
Overprovision of Tax | (129 | ) | - |
Total current tax | 3,449,250 | 2,206,533 |
Deferred tax: |
Deferred tax | 338,666 | 1,152,001 |
Underprov in earlier period | 8,733 | - |
Total deferred tax | 347,399 | 1,152,001 |
Tax on profit | 3,796,649 | 3,358,534 |
KAYE ALUMINIUM (HOLDINGS) LIMITED (REGISTERED NUMBER: 05126436) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
10. | TAXATION - continued |
Reconciliation of total tax charge included in profit and loss |
The tax assessed for the year is lower than the standard rate of corporation tax in the UK. The difference is explained below: |
2023 | 2022 |
£ | £ |
Profit before tax | 18,339,078 | 14,680,475 |
Profit multiplied by the standard rate of corporation tax in the UK of 23.521 % (2022 - 19 %) |
4,313,535 |
2,789,290 |
Effects of: |
Expenses not deductible for tax purposes | 288,248 | 3,328 |
Utilisation of tax losses | (76,187 | ) | - |
Changes in the rate of corporation tax, foreign tax rates and tax losses | (983,708 | ) | 413,086 |
Change in UK deferred tax rates | 4,040 | 158,838 |
Timing differences | (178 | ) | (202 | ) |
Foreign withholding taxes | 242,782 | - |
Enhanced capital allowances | (616 | ) | (2,574 | ) |
Indexation allowances applicable to gains | - | (3,232 | ) |
Underprovision in earlier years | 8,733 | - |
Total tax charge | 3,796,649 | 3,358,534 |
Tax effects relating to effects of other comprehensive income |
2023 |
Gross | Tax | Net |
£ | £ | £ |
Retranslation of foreign subsidiaries | 893,519 | - | 893,519 |
2022 |
Gross | Tax | Net |
£ | £ | £ |
Retranslation of foreign subsidiaries | 1,183,438 | - | 1,183,438 |
11. | INDIVIDUAL INCOME STATEMENT |
As permitted by Section 408 of the Companies Act 2006, the Income Statement of the parent company is not presented as part of these financial statements. |
KAYE ALUMINIUM (HOLDINGS) LIMITED (REGISTERED NUMBER: 05126436) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
12. | INTANGIBLE FIXED ASSETS |
Group |
Patents |
and |
Goodwill | licences | Totals |
£ | £ | £ |
COST |
At 1 January 2023 | 53,866 | 397,721 | 451,587 |
Additions | 4,704,159 | 8,526 | 4,712,685 |
Recognition on acquisition | - | 130 | 130 |
At 31 December 2023 | 4,758,025 | 406,377 | 5,164,402 |
AMORTISATION |
At 1 January 2023 | 53,866 | 154,525 | 208,391 |
Amortisation for year | 156,805 | 37,962 | 194,767 |
At 31 December 2023 | 210,671 | 192,487 | 403,158 |
NET BOOK VALUE |
At 31 December 2023 | 4,547,354 | 213,890 | 4,761,244 |
At 31 December 2022 | - | 243,196 | 243,196 |
13. | TANGIBLE FIXED ASSETS |
Group |
Assets |
Freehold | under | Plant and |
property | construction | machinery |
£ | £ | £ |
COST |
At 1 January 2023 | 11,084,418 | 5,811,428 | 29,054,218 |
Additions | 80,528 | 1,831,193 | 6,265,189 |
Disposals | (18,082 | ) | - | (1,416,364 | ) |
Recongnised on acquisition | 3,733,935 | 34,189 | 4,791,432 |
Reclassification/transfer | (178,449 | ) | (54,458 | ) | 493,316 |
At 31 December 2023 | 14,702,350 | 7,622,352 | 39,187,791 |
DEPRECIATION |
At 1 January 2023 | 3,381,656 | - | 14,506,225 |
Charge for year | 363,965 | - | 2,519,905 |
Eliminated on disposal | (1,060 | ) | - | (1,329,243 | ) |
At 31 December 2023 | 3,744,561 | - | 15,696,887 |
NET BOOK VALUE |
At 31 December 2023 | 10,957,789 | 7,622,352 | 23,490,904 |
At 31 December 2022 | 7,702,762 | 5,811,428 | 14,547,993 |
KAYE ALUMINIUM (HOLDINGS) LIMITED (REGISTERED NUMBER: 05126436) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
13. | TANGIBLE FIXED ASSETS - continued |
Group |
Fixtures |
and | Motor | Computer |
fittings | vehicles | equipment | Totals |
£ | £ | £ | £ |
COST |
At 1 January 2023 | 824,409 | 814,924 | 82,014 | 47,671,411 |
Additions | 84,863 | 141,956 | 21,982 | 8,425,711 |
Disposals | (73,386 | ) | (72,024 | ) | - | (1,579,856 | ) |
Recongnised on acquisition | 21,319 | 263,683 | 85,387 | 8,929,945 |
Reclassification/transfer | - | - | - | 260,409 |
At 31 December 2023 | 857,205 | 1,148,539 | 189,383 | 63,707,620 |
DEPRECIATION |
At 1 January 2023 | 321,259 | 441,593 | 53,801 | 18,704,534 |
Charge for year | 39,751 | 147,994 | 35,589 | 3,107,204 |
Eliminated on disposal | (66,165 | ) | (67,275 | ) | - | (1,463,743 | ) |
At 31 December 2023 | 294,845 | 522,312 | 89,390 | 20,347,995 |
NET BOOK VALUE |
At 31 December 2023 | 562,360 | 626,227 | 99,993 | 43,359,625 |
At 31 December 2022 | 503,150 | 373,331 | 28,213 | 28,966,877 |
14. | FIXED ASSET INVESTMENTS |
Group |
Unlisted |
investments |
£ |
COST |
At 1 January 2023 |
and 31 December 2023 | 105,208 |
NET BOOK VALUE |
At 31 December 2023 | 105,208 |
At 31 December 2022 | 105,208 |
KAYE ALUMINIUM (HOLDINGS) LIMITED (REGISTERED NUMBER: 05126436) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
14. | FIXED ASSET INVESTMENTS - continued |
Company |
Shares in |
group | Unlisted |
undertakings | investments | Totals |
£ | £ | £ |
COST |
At 1 January 2023 | 9,575,448 |
Additions | 19,214,164 |
At 31 December 2023 | 28,789,612 |
NET BOOK VALUE |
At 31 December 2023 | 28,789,612 |
At 31 December 2022 | 9,575,448 |
The Group or the Company's investments at the Statement of Financial Position date in the share capital of companies include the following: |
Subsidiaries |
Registered office: Ogden Road, Wheatley Hills, Doncaster, South Yorkshire, DN2 4SG |
Nature of business: |
% |
Class of shares: | holding |
Exlabesa Extrusions (Doncaster) Limited was formerly known as Kaye Aluminium Limited. |
Registered office: R. N. Tanger,Rabat, Asilah, Morocco |
Nature of business: |
% |
Class of shares: | holding |
Registered office: Ul. Porcelitowa 4, 49-130 Tulowice, Poland |
Nature of business: |
% |
Class of shares: | holding |
Exlabesa Extrusion Opole was formerly known as Kaye Aluminium Opole Sp.Z.O.O |
Registered office: R. N. Tanger,Rabat, Asilah, Morocco |
Nature of business: |
% |
Class of shares: | holding |
KAYE ALUMINIUM (HOLDINGS) LIMITED (REGISTERED NUMBER: 05126436) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
14. | FIXED ASSET INVESTMENTS - continued |
Registered office: 250 Southwell Blvd, Tifton, GA 31794, United States |
Nature of business: |
% |
Class of shares: | holding |
Exlabesa Extrusion Tifton Inc was formerly known as Tifton Aluminum Extrusions Inc. |
Registered office: Ogden Road, Wheatley Hills, Doncaster, South Yorkshire, DN2 4SG |
Nature of business: |
% |
Class of shares: | holding |
Registered office: Ogden Road, Wheatley Hills, Doncaster, South Yorkshire, DN2 4SG |
Nature of business: |
% |
Class of shares: | holding |
Registered office: 40 Route De Deulemont, 59560 Warneton, France |
Nature of business: |
% |
Class of shares: | holding |
Registered office: Pegasuslaan 5, 1831 Machelen (Brab.), Belgium |
Nature of business: |
% |
Class of shares: | holding |
Registered office: 40 Route de Deulemont, 59560 Warneton, France |
Nature of business: |
% |
Class of shares: | holding |
Registered office: 40 Route Deulemont, 59560 Warneton, France |
Nature of business: |
% |
Class of shares: | holding |
KAYE ALUMINIUM (HOLDINGS) LIMITED (REGISTERED NUMBER: 05126436) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
14. | FIXED ASSET INVESTMENTS - continued |
Registered office: 40 Route de Deulemont, 59560 Warneton, France |
Nature of business: |
% |
Class of shares: | holding |
Registered office: 42 Route de Deulemont, 59560 Warneton, France |
Nature of business: |
% |
Class of shares: | holding |
Registered office: Steenweg Op Waasten(Waa) 367, 7780 Comines, Belgium |
Nature of business: |
% |
Class of shares: | holding |
* denotes an indirect investment |
Included in unlisted investments is £105,208 in respect of a 13% share holding in Exlabesa Extrusions Coimbra, a Company registered in Portugal. |
15. | STOCKS |
Group |
2023 | 2022 |
£ | £ |
Raw materials | 13,081,039 | 10,691,620 |
Work-in-progress | 1,383,092 | 850,847 |
Finished goods | 6,380,713 | 4,813,015 |
20,844,844 | 16,355,482 |
The directors believe there to be no material difference between the replacement cost and the carrying value of the stock. |
KAYE ALUMINIUM (HOLDINGS) LIMITED (REGISTERED NUMBER: 05126436) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
16. | DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
Group | Company |
2023 | 2022 | 2023 | 2022 |
£ | £ | £ | £ |
Trade debtors | 25,646,192 | 21,695,642 |
Amounts owed by group undertakings | - | - |
Other debtors | 9,869,198 | 5,114,142 |
Tax | 447,411 | 63,683 |
VAT | - | - |
Prepayments and accrued income | 539,851 | 378,862 |
36,502,652 | 27,252,329 |
17. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
Group | Company |
2023 | 2022 | 2023 | 2022 |
£ | £ | £ | £ |
Bank loans and overdrafts (see note 19) | 1,129,646 | - |
Other loans (see note 19) | - | 455,280 |
Trade creditors | 26,805,073 | 19,536,618 |
Tax | 546,805 | 476,360 |
Social security and other taxes | 3,388,775 | 2,752,216 |
Other creditors | 2,178,413 | 613,651 |
Invoice discounting facility | - | 4,135 | - | - |
Directors' current accounts | 8,578 | 29,600 | 9,528 | 30,549 |
Accruals and deferred income | 728,920 | 461,186 |
34,786,210 | 24,329,046 |
18. | CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR |
Group |
2023 | 2022 |
£ | £ |
Bank loans (see note 19) | 1,820,488 | - |
Other creditors | 1,300,487 | - |
3,120,975 | - |
KAYE ALUMINIUM (HOLDINGS) LIMITED (REGISTERED NUMBER: 05126436) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
19. | LOANS |
An analysis of the maturity of loans is given below: |
Group |
2023 | 2022 |
£ | £ |
Amounts falling due within one year or on | demand: |
Bank loans | 1,129,646 | - |
Other loans | - | 455,280 |
1,129,646 | 455,280 |
Amounts falling due between one and two | years: |
Bank loans | 1,820,488 | - |
20. | SECURED DEBTS |
The following secured debts are included within creditors: |
Group |
2023 | 2022 |
£ | £ |
Bank loans | 2,950,134 | - |
Other loans | - | 455,280 |
2,950,134 | 455,280 |
Security has been offered over balances included in the group accounts, by the following subsidiary companies: |
Kaye Aluminium Tanger |
The loan facility and invoice finance facilities in the Moroccan subsidiary were repaid in the year, security held has subsequently released. |
Flandrialys BV & Flandria Aluminium |
The loan facility in the French and Belgium subsidiary undertakings totalling £2,950,134 are secured over the assets of the entities. The total security offered by the Flandrialys BV group of companies was £19,889,395. |
21. | PROVISIONS FOR LIABILITIES |
Group |
2023 | 2022 |
£ | £ |
Deferred tax | 4,068,728 | 587,149 |
Other provisions | 340,305 | 71,955 |
Aggregate amounts | 4,409,033 | 659,104 |
KAYE ALUMINIUM (HOLDINGS) LIMITED (REGISTERED NUMBER: 05126436) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
21. | PROVISIONS FOR LIABILITIES - continued |
Group |
Deferred | Other |
tax | provisions |
£ | £ |
Balance at 1 January 2023 | 587,149 | 71,955 |
Provided during year | 583,470 | 246,171 |
Utilised during year | - | (104,378 | ) |
Recongnised at acquisition | 2,889,376 | 126,557 |
Underprovision in earlier year | 8,733 | - |
Balance at 31 December 2023 | 4,068,728 | 340,305 |
Deferred Tax |
UK subsidiaries have recognised deferred tax liabilities totalling £718,233 (2022: £641,260) has been recognised in respect of accelerated capital allowances at 25% the substantively enacted tax rate at the date of approval. |
US subsidiaries have recognised deferred tax assets totalling £486,613 (2022: £844,610) in respect of operating losses carried forwarded losses, which are expected to be realised in the 2024 accounting period. |
The US subsidiary has also recognised deferred tax liabilities totalling £1,092,185 (2022:£1,198,732) in respect of temporary timing differences. |
Deferred tax assets totalling £355,106 (2022:£408,232) arising as a result of enhanced trading losses in Exlabesa Extrusions Opole SP ZOO due to the participation in the EC Special Economic Zone. |
Flandria Aluminium SAS recognised deferred tax liabilities totalling £3,100,029 has been recognised in respect of accelerated capital allowances at the substantively enacted tax rate in France at the date of approval. |
Retirement Benefits |
A provision has been made for post retirement benefits in Poland. Polish law requires the employer to provide a further one month's salary to retiring employees. The calculation is at the present value at the Balance Sheet date totalling £89,213 (2023 £71,955). |
Other Provisions |
Flandria Aluminium SAS recognised provisions for litigation and other risks totalling £251,092. |
22. | CALLED UP SHARE CAPITAL |
Allotted and issued: |
Number: | Class: | Nominal | 2023 | 2022 |
value: | £ | £ |
Share capital 2 | 0.01 | 25 | 25 |
Each share ranks parri passu in respect of rights to vote, receive dividends and distributions upon wind up. |
KAYE ALUMINIUM (HOLDINGS) LIMITED (REGISTERED NUMBER: 05126436) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
23. | RESERVES |
Group |
Retained | Share | Other |
earnings | premium | reserves | Totals |
£ | £ | £ | £ |
At 1 January 2023 | 68,694,486 | 41,840 | 2,167,005 | 70,903,331 |
Profit for the year | 14,080,200 | 14,080,200 |
Closing exchange rate |
adjustment | 893,519 | - | - | 893,519 |
Transfer between reserves | 1,603,799 | - | (1,603,799 | ) | - |
At 31 December 2023 | 85,272,004 | 41,840 | 563,206 | 85,877,050 |
Company |
Retained | Share |
earnings | premium | Totals |
£ | £ | £ |
At 1 January 2023 | 19,836,730 |
Profit for the year |
At 31 December 2023 | 36,274,314 |
Other reserves in the consolidated financial statements represent a non-distributable reserve arising on an issue of bonus shares out of post-acquisition profits in Exlabesa Extrusion Opole SP. Z.O.O. in 2012, and the creation of a non-distributable supplementary capital reserve in 2013 in that same company, and also in Exlabesa Building Systems Opole SP. Z.O.O. in 2014. |
24. | NON-CONTROLLING INTERESTS |
Minority interests represent a 12.92% holding in the issued ordinary share capital of Kaye Aluminium Tanger S.A.R.L. |
25. | PENSION COMMITMENTS |
The Group operates defined contribution schemes for all qualifying employees in the United Kingdom. The assets of the schemes are held separately from those of the Group in independently administered funds. The contributions payable by the Group charge to profit or loss amounted to £43,494 (2022: £37,892). Contributions totalling £Nil (2022: £Nil) were payable to the fund at the year end and are included in creditors. |
26. | CAPITAL COMMITMENTS |
2023 | 2022 |
£ | £ |
Contracted but not provided for in the |
financial statements | 2,517,580 | 6,207,982 |
Capital commitments at the year end totalling £2,517,580 (2022: £,6,207,982) relate to the installation and commissioning of a new press line within the US subsidiary undertaking. |
KAYE ALUMINIUM (HOLDINGS) LIMITED (REGISTERED NUMBER: 05126436) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
27. | RELATED PARTY DISCLOSURES |
The company has taken advantage of exemption, under the terms of Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland', not to disclose related party transactions with wholly owned subsidiaries within the group. |
Transactions between group entities which have been eliminated on consolidation are not disclosed within the financial statements. |
(i) Directors' loan accounts |
At the year end the group a balance was due to the directors of £8,578 (2022: 29,600). The loans are interest free and have no formal repayment date. |
(ii) Other transactions with directors |
During the year the group was charged £552,515 (2022: £552,515) for management services from companies outside of the Group in which certain directors have an interest. |
Entities where the Directors have an interest or have Directors in common |
2023 | 2022 |
£ | £ |
Sales | 6,806,873 | 4,733,628 |
Purchases | 1,370,482 | 1,460,480 |
Management charges received | 70,640 | - |
- | 2,019,750 |
Amount due from related party | 637,158 | 5,325,077 |
Amount due to related party | 1,107,406 | 149,406 |
Companies that are controlled by certain directors and shareholders of Kaye Aluminium (Holdings) Limited. |
During the year, a total of key management personnel compensation of £ 744,553 (2022 - £ 755,196 ) was paid. |
28. | POST BALANCE SHEET EVENTS |
On 9 February 2024, Exlabesa Building Systems Limited acquired freehold land and buildings totalling £2,493,000 |
On the same day a newly incorporated subsidiary undertaking Shaw Lane Bakery Limited acquired connected buildings as an investment for total consideration of £607,000. |
The aforementioned acquisitions were funded by group working capital. |
29. | ULTIMATE CONTROLLING PARTY |
The group was controlled by its directors by virtue of their combined 100% holding in the issued ordinary share capital of Kaye Aluminium (Holdings) Limited. |
KAYE ALUMINIUM (HOLDINGS) LIMITED (REGISTERED NUMBER: 05126436) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
30. | BUSINESS COMBINATIONS |
The following business combination was undertaken during the accounting period: |
Acquisition of Flandrialys BV |
On 28 August 2023 Kaye Aluminium France SAS acquired the entire share capital of Flandrialys BV and consequently its subsidiary undertakings Flandria Participations, Flandria Aluminium, Alu Trade and Amye Claeys. |
Recognised amounts of identifiable assets acquired and liabilities assumed |
Fair value |
Book value | adjustment | Fair value |
£ | £ | £ |
FIXED ASSETS |
Intangible | 130 | - | 130 |
Tangible | 6,164,000 | 2,765,945 | 8,929,945 |
6,164,130 | 2,765,945 | 8,930,075 |
CURRENT ASSETS |
Stocks | 6,262,309 | (354,826 | ) | 5,907,483 |
Debtors | 8,356,288 | 53,727 | 8,410,015 |
Cash at bank and in hand | 7,908,891 | - | 7,908,891 |
22,527,488 | (301,099 | ) | 22,226,389 |
CREDITORS |
Trade creditors | 5,046,785 | - | 5,046,785 |
Taxation | 572,187 | 84,994 | 657,181 |
Hire purchase contracts | 575,871 | - | 575,871 |
Other creditors and accruals | 1,737,616 | - | 1,737,616 |
NET CURRENT ASSETS | 7,932,459 | 84,994 | 8,017,453 |
TOTAL ASSETS LESS CURRENT LIABILITIES |
20,759,159 |
2,379,852 |
23,139,011 |
CREDITORS |
Amounts falling due after more than one year | 2,533,630 | - | 2,533,630 |
PROVISIONS FOR LIABILITIES | 5,852,023 | (2,836,090 | ) | 3,015,933 |
TOTAL IDENTIFIABLE NET ASSETS | 12,373,506 | 5,215,942 | 17,589,448 |
Goodwill | 4,704,160 |
TOTAL PURCHASE CONSIDERATION | 22,293,608 |
Consideration |
Cash | 18,756,403 |
Deferred consideration | 2,567,577 |
Directly attributable costs | 969,628 |
TOTAL PURCHASE CONSIDERATION | 22,293,608 |
KAYE ALUMINIUM (HOLDINGS) LIMITED (REGISTERED NUMBER: 05126436) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
CASH OUTFLOW ON ACQUISITION |
Purchase consideration settled in cash | 18,756,403 |
Directly attributable costs | 969,628 |
Cash and cash equivalents acquired | (7,908,891 | ) |
NET CASH OUTFLOW ON ACQUISITION | 11,817,140 |