Company Registration No. 10017661 (England and Wales)
KINGSTON MODULAR SYSTEMS LIMITED
ANNUAL REPORT
AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2024
Fawley Judge & Easton
Chartered Certified Accountants
1 Parliament Street
Hull
HU1 2AS
KINGSTON MODULAR SYSTEMS LIMITED
COMPANY INFORMATION
Directors
Mr K Robinson
Mr C Galbraith
Mr J S Bradshaw
Company number
10017661
Registered office
45b Stockholm Road
Sutton Fields Industrial Estate
Hull
East Yorkshire
England
HU7 0XW
Auditor
Fawley Judge & Easton
Chartered Certified Accountants
1 Parliament Street
Hull
East Yorkshire
HU1 2AS
KINGSTON MODULAR SYSTEMS LIMITED
CONTENTS
Page
Strategic report
1
Directors' report
2
Directors' responsibilities statement
3
Independent auditor's report
4 - 6
Profit and loss account
7
Statement of comprehensive income
8
Balance sheet
9
Statement of changes in equity
10
Statement of cash flows
11
Notes to the financial statements
12 - 22
KINGSTON MODULAR SYSTEMS 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 is engaged in the design and manufacture of bespoke off-site modular buildings and luxury park & leisure homes. These activities operate from a factory & offices based in Hull, serving clients across the United Kingdom.

 

A decline in demand from October 2023, particularly in the leisure sector, significantly affected the business resulting in the reduction in turnover and losses for the year. The directors took action to reduce costs and secure the pipeline of new projects. Business picked up toward the year-end and into the new financial year with demand returning closer to expected levels.

Principal risks and uncertainties

The directors consider the key business risks and uncertainties to be managing key client relationships and ongoing economic challenges including falling demand in both leisure and modular sectors. The directors continue to implement plans and actions to reduce and mitigate these risks.

Key performance indicators

The directors consider gross margin and profit before tax, comparing actual against targets in both instances, as key measures of success and control. In addition, delivery of projects on time, in full and error free to client expectations as a further key indicator.

On behalf of the board

Mr J S Bradshaw
Director
13 February 2025
KINGSTON MODULAR SYSTEMS LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 MAY 2024
- 2 -

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

Principal activities

The principle activity of the company in the year under review was the design and manufacture of bespoke off-site modular buildings and luxury park & leisure homes.

Results and dividends

The results for the year are set out on page 7.

No ordinary dividends were paid. The directors do not recommend payment of a final dividend.

Directors

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

Mr K Robinson
Mr C Galbraith
Mr J S Bradshaw
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.

On behalf of the board
Mr J S Bradshaw
Director
13 February 2025
KINGSTON MODULAR SYSTEMS LIMITED
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 31 MAY 2024
- 3 -

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

 

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

 

 

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

KINGSTON MODULAR SYSTEMS LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBER OF KINGSTON MODULAR SYSTEMS LIMITED
- 4 -
Opinion

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

In our opinion the financial statements:

Basis for opinion

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

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the 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.

Other information

The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The directors are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

 

We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

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

KINGSTON MODULAR SYSTEMS LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBER OF KINGSTON MODULAR SYSTEMS LIMITED
- 5 -
Matters on which we are required to report by exception

In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the directors' report.

 

We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:

Responsibilities of directors

As explained more fully in the directors' responsibilities statement, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the directors are responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.

Auditor's responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.

Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was focused on specific laws and regulations which we considered may have a direct material effect on the financial statements or the operations of the company, including the Companies Act 2006, legislation, data protection, anti-bribery, employment, environmental and health and safety legislation. An understanding of these laws and regulations and the extent of compliance was obtained through discussion with management and inspecting legal and regulatory correspondence.

 

We assessed the susceptibility of the company's financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by making enquiries of management and considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations.

 

To address the risk of fraud through management bias and override of controls, we:

 

 

In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to:

 

KINGSTON MODULAR SYSTEMS LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBER OF KINGSTON MODULAR SYSTEMS LIMITED
- 6 -

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.

Jonathan Leathley (Senior Statutory Auditor)
For and on behalf of Fawley Judge & Easton
13 February 2025
Chartered Certified Accountants
Statutory Auditor
1 Parliament Street
Hull
East Yorkshire
HU1 2AS
KINGSTON MODULAR SYSTEMS LIMITED
PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 31 MAY 2024
- 7 -
2024
2023
Notes
£
£
Turnover
3
12,580,648
17,171,374
Cost of sales
(10,532,536)
(14,753,041)
Gross profit
2,048,112
2,418,333
Administrative expenses
(2,492,175)
(2,225,264)
Operating (loss)/profit
4
(444,063)
193,069
Interest payable and similar expenses
7
(119,366)
(115,700)
(Loss)/profit before taxation
(563,429)
77,369
Tax on (loss)/profit
8
-
0
29,196
(Loss)/profit for the financial year
(563,429)
106,565

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

KINGSTON MODULAR SYSTEMS LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 MAY 2024
- 8 -
2024
2023
£
£
(Loss)/profit for the year
(563,429)
106,565
Other comprehensive income
-
-
Total comprehensive income for the year
(563,429)
106,565
KINGSTON MODULAR SYSTEMS LIMITED
BALANCE SHEET
AS AT 31 MAY 2024
31 May 2024
- 9 -
2024
2023
Notes
£
£
£
£
Fixed assets
Tangible assets
9
464,237
452,237
Current assets
Stocks
10
1,206,526
1,472,807
Debtors
11
1,754,813
1,578,921
Cash at bank and in hand
187,301
585,403
3,148,640
3,637,131
Creditors: amounts falling due within one year
12
(2,548,581)
(2,734,932)
Net current assets
600,059
902,199
Total assets less current liabilities
1,064,296
1,354,436
Creditors: amounts falling due after more than one year
13
(322,787)
(49,498)
Net assets
741,509
1,304,938
Capital and reserves
Called up share capital
17
10,000
10,000
Profit and loss reserves
731,509
1,294,938
Total equity
741,509
1,304,938

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

The financial statements were approved by the board of directors and authorised for issue on 13 February 2025 and are signed on its behalf by:
Mr J S Bradshaw
Director
Company registration number 10017661 (England and Wales)
KINGSTON MODULAR SYSTEMS LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 MAY 2024
- 10 -
Share capital
Profit and loss reserves
Total
£
£
£
Balance at 1 June 2022
10,000
1,188,373
1,198,373
Year ended 31 May 2023:
Profit and total comprehensive income for the year
-
106,565
106,565
Balance at 31 May 2023
10,000
1,294,938
1,304,938
Year ended 31 May 2024:
Loss and total comprehensive income for the year
-
(563,429)
(563,429)
Balance at 31 May 2024
10,000
731,509
741,509
KINGSTON MODULAR SYSTEMS LIMITED
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 MAY 2024
- 11 -
2024
2023
Notes
£
£
£
£
Cash flows from operating activities
Cash (absorbed by)/generated from operations
19
(509,794)
690,254
Interest paid
(119,366)
(115,700)
Income taxes refunded/(paid)
29,196
(32,885)
Net cash (outflow)/inflow from operating activities
(599,964)
541,669
Investing activities
Purchase of tangible fixed assets
(126,399)
(216,067)
Impairment of tangible fixed assets
(197,798)
-
0
Net cash used in investing activities
(324,197)
(216,067)
Financing activities
Repayment of borrowings
20,000
-
0
Repayment of bank loans
233,333
(30,000)
Payment of finance leases obligations
46,091
(19,856)
Net cash generated from/(used in) financing activities
299,424
(49,856)
Net (decrease)/increase in cash and cash equivalents
(624,737)
275,746
Cash and cash equivalents at beginning of year
372,345
96,599
Cash and cash equivalents at end of year
(252,392)
372,345
Relating to:
Cash at bank and in hand
187,301
585,403
Bank overdrafts included in creditors payable within one year
(439,693)
(213,058)
KINGSTON MODULAR SYSTEMS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2024
- 12 -
1
Accounting policies
Company information

Kingston Modular Systems Limited is a private company limited by shares incorporated in England and Wales. The registered office is 45b Stockholm Road, Sutton Fields Industrial Estate, Hull, East Yorkshire, England, HU7 0XW.

1.1
Accounting convention

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

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

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

1.2
Going concern

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

1.3
Turnover

Turnover is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business, and is shown net of VAT and other sales related taxes. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.

 

When cash inflows are deferred and represent a financing arrangement, the fair value of the consideration is the present value of the future receipts. The difference between the fair value of the consideration and the nominal amount received is recognised as interest income.

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

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

1.4
Tangible fixed assets

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

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

Leasehold improvements
10% on a straight line basis
Plant and equipment
15% on a straight line basis
Fixtures and fittings
25% on a straight line basis
Motor vehicles
20% on a straight line basis
KINGSTON MODULAR SYSTEMS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2024
1
Accounting policies
(Continued)
- 13 -

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

1.5
Impairment of fixed assets

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

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

 

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

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

1.6
Stocks

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

 

Stocks held for distribution at no or nominal consideration are measured at the lower of cost and replacement cost, adjusted where applicable for any loss of service potential.

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

1.7
Cash and cash equivalents

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

KINGSTON MODULAR SYSTEMS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2024
1
Accounting policies
(Continued)
- 14 -
1.8
Financial instruments

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

 

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

 

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

Basic financial assets

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

Other financial assets

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

Impairment of financial assets

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

 

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

 

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

Derecognition of financial assets

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

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.

KINGSTON MODULAR SYSTEMS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2024
1
Accounting policies
(Continued)
- 15 -
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.

1.9
Equity instruments

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

1.10
Derivatives

Derivatives are initially recognised at fair value at the date a derivative contract is entered into and are subsequently remeasured to fair value at each reporting end date. The resulting gain or loss is recognised in profit or loss immediately unless the derivative is designated and effective as a hedging instrument, in which event the timing of the recognition in profit or loss depends on the nature of the hedge relationship.

 

A derivative with a positive fair value is recognised as a financial asset, whereas a derivative with a negative fair value is recognised as a financial liability.

1.11
Taxation

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

Current tax

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

KINGSTON MODULAR SYSTEMS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2024
1
Accounting policies
(Continued)
- 16 -
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.

1.12
Employee benefits

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

 

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

 

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

1.13
Retirement benefits

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

1.14
Leases

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

1.15
Foreign exchange

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

2
Judgements and key sources of estimation uncertainty

In the application of the company’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

 

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

KINGSTON MODULAR SYSTEMS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2024
- 17 -
3
Turnover

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

2024
2023
£
£
Turnover analysed by class of business
Modular buildings and lodges
12,580,648
17,171,374
2024
2023
£
£
Turnover analysed by geographical market
UK
12,580,648
17,171,374
4
Operating (loss)/profit
2024
2023
Operating (loss)/profit for the year is stated after charging:
£
£
Fees payable to the company's auditor for the audit of the company's financial statements
6,000
6,000
Depreciation of owned tangible fixed assets
96,317
61,987
Operating lease charges
150,400
144,000
5
Employees

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

2024
2023
Number
Number
87
90

Their aggregate remuneration comprised:

2024
2023
£
£
Wages and salaries
3,120,732
3,344,908
Social security costs
304,029
347,652
Pension costs
58,207
62,468
3,483,968
3,755,028
KINGSTON MODULAR SYSTEMS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2024
- 18 -
6
Directors' remuneration
2024
2023
£
£
Remuneration for qualifying services
286,096
289,156
Company pension contributions to defined contribution schemes
1,321
1,321
287,417
290,477
Remuneration disclosed above include the following amounts paid to the highest paid director:
2024
2023
£
£
Remuneration for qualifying services
105,600
113,733
Company pension contributions to defined contribution schemes
1,321
1,321
7
Interest payable and similar expenses
2024
2023
£
£
Interest on financial liabilities measured at amortised cost:
Interest on invoice finance arrangements
99,984
100,551
Other interest on financial liabilities
11,763
6,661
111,747
107,212
Other finance costs:
Interest on finance leases and hire purchase contracts
2,620
522
Other interest
4,999
7,966
119,366
115,700
8
Taxation
2024
2023
£
£
Current tax
UK corporation tax on profits for the current period
-
0
16,696
Adjustments in respect of prior periods
-
0
(45,892)
Total current tax
-
0
(29,196)
KINGSTON MODULAR SYSTEMS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2024
8
Taxation
(Continued)
- 19 -

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

2024
2023
£
£
(Loss)/profit before taxation
(563,429)
77,369
Expected tax (credit)/charge based on the standard rate of corporation tax in the UK of 19.00% (2023: 19.00%)
(107,052)
14,700
Unutilised tax losses carried forward
118,101
-
0
Adjustments in respect of prior years
-
0
(45,892)
Permanent capital allowances in excess of depreciation
(11,049)
1,996
Taxation charge/(credit) for the year
-
(29,196)
9
Tangible fixed assets
Leasehold improvements
Plant and equipment
Fixtures and fittings
Motor vehicles
Total
£
£
£
£
£
Cost
At 1 June 2023
344,376
127,785
131,648
86,560
690,369
Additions
17,156
14,560
8,203
86,480
126,399
Disposals
-
0
(17,500)
-
0
(24,990)
(42,490)
At 31 May 2024
361,532
124,845
139,851
148,050
774,278
Depreciation and impairment
At 1 June 2023
70,622
47,320
86,056
34,134
238,132
Depreciation charged in the year
34,428
19,077
19,128
23,684
96,317
Eliminated in respect of disposals
-
0
(8,979)
-
0
(15,429)
(24,408)
At 31 May 2024
105,050
57,418
105,184
42,389
310,041
Carrying amount
At 31 May 2024
256,482
67,427
34,667
105,661
464,237
At 31 May 2023
273,754
80,465
45,592
52,426
452,237
KINGSTON MODULAR SYSTEMS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2024
- 20 -
10
Stocks
2024
2023
£
£
Raw materials and consumables
482,976
572,104
Work in progress
350,216
773,085
Finished goods and goods for resale
373,334
127,618
1,206,526
1,472,807
11
Debtors
2024
2023
Amounts falling due within one year:
£
£
Trade debtors
1,139,912
1,045,241
Corporation tax recoverable
-
0
45,892
Other debtors
526,774
411,941
Prepayments and accrued income
88,127
75,847
1,754,813
1,578,921
12
Creditors: amounts falling due within one year
2024
2023
Notes
£
£
Bank loans and overdrafts
14
439,693
213,058
Obligations under finance leases
15
21,246
15,111
Other borrowings
14
50,000
30,000
Trade creditors
1,482,868
1,798,364
Corporation tax
-
0
16,696
Other taxation and social security
65,888
65,845
Other creditors
235,359
15,964
Accruals and deferred income
253,527
579,894
2,548,581
2,734,932
13
Creditors: amounts falling due after more than one year
2024
2023
Notes
£
£
Bank loans and overdrafts
14
275,833
42,500
Obligations under finance leases
15
46,954
6,998
322,787
49,498
KINGSTON MODULAR SYSTEMS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2024
- 21 -
14
Loans and overdrafts
2024
2023
£
£
Bank loans
275,833
42,500
Bank overdrafts
439,693
213,058
Other loans
50,000
30,000
765,526
285,558
Payable within one year
489,693
243,058
Payable after one year
275,833
42,500

The long-term loans are secured by way of a debenture.

15
Finance lease obligations
2024
2023
Future minimum lease payments due under finance leases:
£
£
Within one year
21,246
15,111
In two to five years
46,954
6,998
68,200
22,109

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. The average lease term is 2 years. All leases are on a fixed repayment basis and no arrangements have been entered into for contingent rental payments.

16
Retirement benefit schemes
2024
2023
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
58,207
62,468

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.

17
Share capital
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary of £1 each
10,000
10,000
10,000
10,000
KINGSTON MODULAR SYSTEMS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2024
- 22 -
18
Operating lease commitments
Lessee

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

2024
2023
£
£
Within one year
132,000
118,000
Between two and five years
110,000
236,000
242,000
354,000
19
Cash (absorbed by)/generated from operations
2024
2023
£
£
(Loss)/profit for the year after tax
(563,429)
106,565
Adjustments for:
Taxation charged/(credited)
-
0
(29,196)
Finance costs
119,366
115,700
Depreciation and impairment of tangible fixed assets
312,197
61,987
Movements in working capital:
Decrease/(increase) in stocks
266,281
(6,192)
(Increase)/decrease in debtors
(221,784)
761,209
Decrease in creditors
(422,425)
(327,485)
Cash (absorbed by)/generated from operations
(509,794)
682,588
20
Analysis of changes in net funds/(debt)
1 June 2023
Cash flows
31 May 2024
£
£
£
Cash at bank and in hand
585,403
(398,102)
187,301
Bank overdrafts
(213,058)
(226,635)
(439,693)
372,345
(624,737)
(252,392)
Borrowings excluding overdrafts
(72,500)
(253,333)
(325,833)
Obligations under finance leases
(22,109)
(46,091)
(68,200)
277,736
(924,161)
(646,425)
KINGSTON MODULAR SYSTEMS LIMITED
MANAGEMENT INFORMATION
FOR THE YEAR ENDED 31 MAY 2024
2024-05-312023-06-01falseCCH SoftwareCCH Accounts Production 2024.100Mr K RobinsonMr C GalbraithMr J S Bradshawfalsetrue100176612023-06-012024-05-3110017661bus:Director12023-06-012024-05-3110017661bus:Director22023-06-012024-05-3110017661bus:Director32023-06-012024-05-3110017661bus:RegisteredOffice2023-06-012024-05-31100176612024-05-31100176612022-06-012023-05-3110017661core:RetainedEarningsAccumulatedLosses2022-06-012023-05-3110017661core:RetainedEarningsAccumulatedLosses2023-06-012024-05-31100176612023-05-3110017661core:LeaseholdImprovements2024-05-3110017661core:PlantMachinery2024-05-3110017661core:FurnitureFittings2024-05-3110017661core:MotorVehicles2024-05-3110017661core:LeaseholdImprovements2023-05-3110017661core:PlantMachinery2023-05-3110017661core:FurnitureFittings2023-05-3110017661core:MotorVehicles2023-05-3110017661core:CurrentFinancialInstrumentscore:WithinOneYear2024-05-3110017661core:CurrentFinancialInstrumentscore:WithinOneYear2023-05-3110017661core:Non-currentFinancialInstrumentscore:AfterOneYear2024-05-3110017661core:Non-currentFinancialInstrumentscore:AfterOneYear2023-05-3110017661core:CurrentFinancialInstruments2024-05-3110017661core:CurrentFinancialInstruments2023-05-3110017661core:Non-currentFinancialInstruments2024-05-3110017661core:Non-currentFinancialInstruments2023-05-3110017661core:ShareCapital2024-05-3110017661core:ShareCapital2023-05-3110017661core:RetainedEarningsAccumulatedLosses2024-05-3110017661core:RetainedEarningsAccumulatedLosses2023-05-3110017661core:ShareCapital2022-05-3110017661core:RetainedEarningsAccumulatedLosses2022-05-31100176612022-05-311001766112023-06-012024-05-311001766112022-06-012023-05-31100176612023-05-3110017661core:WithinOneYear2024-05-3110017661core:WithinOneYear2023-05-3110017661core:LeaseholdImprovements2023-06-012024-05-3110017661core:PlantMachinery2023-06-012024-05-3110017661core:FurnitureFittings2023-06-012024-05-3110017661core:MotorVehicles2023-06-012024-05-3110017661core:UKTax2023-06-012024-05-3110017661core:UKTax2022-06-012023-05-3110017661core:LeaseholdImprovements2023-05-3110017661core:PlantMachinery2023-05-3110017661core:FurnitureFittings2023-05-3110017661core:MotorVehicles2023-05-3110017661core:BetweenTwoFiveYears2024-05-3110017661core:BetweenTwoFiveYears2023-05-3110017661bus:PrivateLimitedCompanyLtd2023-06-012024-05-3110017661bus:FRS1022023-06-012024-05-3110017661bus:Audited2023-06-012024-05-3110017661bus:FullAccounts2023-06-012024-05-31xbrli:purexbrli:sharesiso4217:GBP