REGISTERED NUMBER: |
STRATEGIC REPORT, REPORT OF THE DIRECTORS AND |
AUDITED FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 31 DECEMBER 2024 |
FOR |
K2 SOLAR MOUNTING SOLUTIONS LIMITED |
REGISTERED NUMBER: |
STRATEGIC REPORT, REPORT OF THE DIRECTORS AND |
AUDITED FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 31 DECEMBER 2024 |
FOR |
K2 SOLAR MOUNTING SOLUTIONS LIMITED |
K2 SOLAR MOUNTING SOLUTIONS LIMITED (REGISTERED NUMBER: 07688136) |
CONTENTS OF THE FINANCIAL STATEMENTS |
for the year ended 31 DECEMBER 2024 |
Page |
Company Information | 1 |
Strategic Report | 2 |
Report of the Directors | 6 |
Report of the Independent Auditors | 7 |
Income Statement | 11 |
Other Comprehensive Income | 12 |
Balance Sheet | 13 |
Statement of Changes in Equity | 14 |
Cash Flow Statement | 15 |
Notes to the Cash Flow Statement | 16 |
Notes to the Financial Statements | 17 |
K2 SOLAR MOUNTING SOLUTIONS LIMITED |
COMPANY INFORMATION |
for the year ended 31 DECEMBER 2024 |
DIRECTORS: |
SECRETARY: |
REGISTERED OFFICE: |
REGISTERED NUMBER: |
AUDITORS: |
Chartered Accountants and Statutory Auditors |
1 High Street |
Thatcham |
Berks |
RG19 3JG |
K2 SOLAR MOUNTING SOLUTIONS LIMITED (REGISTERED NUMBER: 07688136) |
STRATEGIC REPORT |
for the year ended 31 DECEMBER 2024 |
The directors present their strategic report for the year ended 31 December 2024. |
REVIEW OF BUSINESS |
The company focuses on the re-sale of mounting equipment for solar rooftop PV in the UK & Irish markets. We are adding value with local technical expertise and with providing planning services using a range of in-house digital tools. The revenue of the company however is raised solely from the sale of products. Besides profitability the other Key Performance Indicator is market share. |
2022 | 2023 | 2024 |
Market Size (in MegaWatt for Rooftop Solar UK/IE) |
800 |
990 |
1100 |
Revenue (in 1,000 £) | 13,483 | 18,556 | 13,506 |
Market Share (in %) | ~28% | ~34% | ~29% |
The company continues to trade strongly despite the ongoing impacts of macroeconomic uncertainty in the UK and the high interest rates which dampen the willingness to invest in solar. Consistently high energy cost however does drive the solar market to be relatively stable. |
The directors are pleased to see continued growth in line with the market growth, however with our recent investments on local product adaptation and a new training facility for customers, the directors however aim to grow 10% above market growth in the future and to constantly achieve a >30% market share to maintain our strong |
position. |
2023 was an exceptional year as the company was able to profit from supply and availability issues by most of our competitors in the first 6 months of that year. |
Having focused on rooftop solar installations for many years, a new ground mount solar product developed by headquarters will pose an opportunity to gain revenue from previously untapped market segments. It is currently too early to say if this product can be successful in this very price sensitive and highly competitive ground mount market segment. |
K2 SOLAR MOUNTING SOLUTIONS LIMITED (REGISTERED NUMBER: 07688136) |
STRATEGIC REPORT |
for the year ended 31 DECEMBER 2024 |
PRINCIPAL RISKS AND UNCERTAINTIES |
Risk | Impact on Company | Mitigation |
Brexit costs and restraints (ongoing) | Brexit has caused increased cost and complexity for importing and exporting its goods to and from the EU. |
The company appointed and got specifically trained 2 staff to deal and cope with the additional complexities. Since Brexit came in already a few years ago any additional costs which came with it are now priced in and don’t pose a risk anymore. |
High interest rates and macroeconomic uncertainty in UK |
There is still a level of macroeconomic uncertainty including sustained higher interest rates as well as cost and wage inflation. This has an impact on levels of customer demand (mainly the domestic market segment), risk of non-payment and a rise in our own operational costs also in relation to our supply chain. |
We are actively monitoring the situation. Our main supplier is our European headquarters, and the company thus has a reduced exposure. Further contingency measures in place to manage this risk include a widening of the supplier base (UK/India) and working with those suppliers to build long-term relationships and obtain the best possible prices. We are furthermore forward contracting with suppliers thus fixing pricing for a minimum of 3 months but normally for 6 months. |
Since we are in the market since 2011 | the company has a loyal customer base which somewhat reduces its exposure to temporary downturns in trade. |
The company has also introduced | enhanced credit review processes to mitigate the risk of non-payments. |
New entrants to the market | A decline of some previously strong solar markets in neighboring countries on the continent led to more European and foreign manufacturers to now also sell in the UK despite the trade barriers put in place by Brexit. Some foreign manufacturers offer lower selling prices and therefore gain some market share initially. |
With solar, in particular, being now the cheapest way of generating electricity and the fact that electricity demand will only rise over the next years or decades. The decline in some solar markets will be a temporary one and the industry experts expect solar markets to recover shortly, then easing the pressures of competitors trying to gain foothold outside their home markets. |
Having already set up local UK | production of about 40% of our high-value components (Aluminium rails) not only has cost advantages, but also an added value of a lower carbon footprint. |
K2 SOLAR MOUNTING SOLUTIONS LIMITED (REGISTERED NUMBER: 07688136) |
STRATEGIC REPORT |
for the year ended 31 DECEMBER 2024 |
Our local buffer stockholding / our | local technical support and more and more country-specific product adaptations require a financial and long-term commitment only very few of the new entrants are prepared to match. The majority of clients and ultimate PV-system owners (landlords) do appreciate our product quality, value for money, peace of mind and convenience over low cost/higher risk. |
Our structural simulation software and | digital services are superior to alternatives of our competitors. Driven by our HQ we will further invest heavily in improvements and new features (e.g. AI roof detection) and we will remain the market leader with this. |
Looming trade war and tariffs US/EU/UK |
The new US administration will use trade tariffs to enforce their ‘America First’ approach. |
Should the US impose tariffs on imports of Canadian/Mexican alloy, Canada and Mexico will look elsewhere to sell their commodities, which can lead to an oversupply for example in Europe thus has the potential to bring down the cost of the raw materials the company predominantly uses for its products. |
As the company does not export to the | US nor imports from the US any imposed tariffs here won’t affect the company. |
Ongoing conflict in Ukraine & Russian Sanctions |
Sanctions on Russian steel and alloy had and will carry on having an impact on commodity prices of raw materials. |
Upstream suppliers moved to raw materials from other countries, and we were able to absorb the higher costs not least because our European competitors are in the same boat. This issue poses no real risk anymore. |
Price wars due to Chinese products flooding the market |
The price war is felt more in the high-value solar panel, battery and inverter segment not so much in the mounting systems sector. All in all, these price wars do bring down the overall cost of solar which is benefitting the solar market. |
Chinese competitors can ship cheaper product only by the container load but do very rarely commit to one market with local expertise/stock-holding. Current financial circumstances and cash flow constraints hold back most wholesalers to stock up on Chinese products and prefer lower stocks and appreciate suppliers to rather dropship orders from a supplier’s warehouse. |
K2 SOLAR MOUNTING SOLUTIONS LIMITED (REGISTERED NUMBER: 07688136) |
STRATEGIC REPORT |
for the year ended 31 DECEMBER 2024 |
FUTURE DEVELOPMENT |
The directors of the company anticipate the business environment will remain competitive. They believe that the company is in a good and stable financial position and that identified risks can and are being managed well. With the focus on the product adaptation for local market requirements, the intensifying investment by our HQ in our already market-leading software and digital services, the expansion of our local offering of training clients on our products and systems in our new K2 academy and last but not least our unrivalled short response times from request to delivery, the directors are confident in the company’s ability to maintain and build on this position with cautious expectations above market growth. |
FINANCIAL INSTRUMENTS |
The company has a normal level of exposure to price, credit, liquidity and cash flow risks arising from trading activities which are largely conducted in £ Sterling. The only foreign currency transactions are being covered by currency contracts within the larger group thus minimize the exposure to exchange rate volatility. The company does not enter into any formally designated hedging arrangements. |
RESEARCH AND DEVELOPMENT |
The company is currently undertaking research and development to improve its product portfolio for local market requirements. Uncommon for the solar industry the company also started a very promising collaboration with a roofing material manufacturer (e.g. SIKA/Sarnafil) to develop perfectly adapted, mutually approved mounting solutions with extended warranties for building owners thus reaching new customer groups beyond the usual solar installers and wholesalers. Ongoing, Headquarters is intensifying investment in research and development of its digital tools & software which also benefit the company. |
ON BEHALF OF THE BOARD: |
K2 SOLAR MOUNTING SOLUTIONS LIMITED (REGISTERED NUMBER: 07688136) |
REPORT OF THE DIRECTORS |
for the year ended 31 DECEMBER 2024 |
The directors present their report with the financial statements of the company for the year ended 31 December 2024. |
PRINCIPAL ACTIVITY |
The principal activity of the company in the year under review was that of wholesale of solar mounting products to commercial customers. |
DIVIDENDS |
No dividends will be distributed for the year ended 31 December 2024. |
DIRECTORS |
The directors shown below have held office during the whole of the period from 1 January 2024 to the date of this report. |
STATEMENT OF DIRECTORS' RESPONSIBILITIES |
The directors are responsible for preparing the 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). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to: |
- | select suitable accounting policies and then apply them consistently; |
- | make judgements and accounting estimates that are reasonable and prudent; |
- | prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business. |
The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company's transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. |
STATEMENT 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 company's auditors are unaware, and each director has taken all the steps that he ought to have taken as a director in order to make himself aware of any relevant audit information and to establish that the company's auditors are aware of that information. |
AUDITORS |
The auditors, C B Heslop & Company 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 |
K2 SOLAR MOUNTING SOLUTIONS LIMITED |
Opinion |
We have audited the financial statements of K2 Solar Mounting Solutions Limited (the 'company') for the year ended 31 December 2024 which comprise the Income Statement, Other Comprehensive Income, Balance Sheet, Statement of Changes in Equity, Cash Flow Statement and Notes to the Cash Flow Statement, 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 company's affairs as at 31 December 2024 and of its profit for the year then ended; |
- | have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and |
- | have been prepared in accordance with the requirements of the Companies Act 2006. |
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 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 directors are responsible for the other information. The other information comprises the information in the 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 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 Strategic Report and the Report of the Directors have been prepared in accordance with applicable legal requirements. |
In the previous accounting period the directors of the company took advantage of audit exemption under s. 477 of the Companies Act 2006. Therefore the prior period financial statements were not subject to audit. |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
K2 SOLAR MOUNTING SOLUTIONS LIMITED |
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 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, or returns adequate for our audit have not been received from branches not visited by us; or |
- | the financial statements are not in agreement with the accounting records and returns; or |
- | certain disclosures of 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 six, 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 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. |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
K2 SOLAR MOUNTING SOLUTIONS 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: |
Identifying and assessing potential risks related to irregularities |
In identifying and assessing risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, we have considered the following: |
- the nature of the industry, control environment and business performance |
- management's comments about their own identification and assessment of the risks of irregularities; |
We also considered any matters we identified after reviewing the Company's policies and procedures relating to: |
- identifying, evaluating and complying with laws and regulations and whether they were aware of any instances of noncompliance; |
- detecting and responding to the risks of fraud and whether they have knowledge of any actual, suspected or alleged fraud; |
- the internal controls established to mitigate risks of fraud or non-compliance with laws and regulations; |
- the matters discussed among the audit engagement team regarding how and where fraud might occur in the financial statements and any potential indicators of fraud. |
As a result of these procedures, we considered the opportunities and incentives that may exist within the organisation for fraud and identified the greatest potential for fraud in the following areas: timing of recognition of revenue and related party transactions. In common with all audits under ISAs (UK), we are also required to perform specific procedures to respond to the risk of management override. |
We also obtained an understanding of the legal and regulatory frameworks that the Company operates in, focusing on provisions of those laws and regulations that had a direct effect on the determination of material amounts and disclosures in the financial statements. The key laws and regulations we considered in this context included Group's ongoing compliance with the UK Companies Act, pensions legislation and tax legislation. |
In addition, we considered provisions of other laws and regulations that do not have a direct effect on the financial statements but compliance with which may be fundamental to the Company's ability to operate or to avoid a material penalty |
Audit response to risks identified |
As a result of performing the above, we identified revenue recognition and related party transactions as key audit matters related to the potential risk of fraud..Our response to the identification of these main risks was to carry out audit procedures and test appropriate samples of transactions included in those areas. |
In addition to the above, our procedures to respond to risks identified included the following: |
- reviewing the disclosures in the financial statements and testing to supporting documentation to assess compliance with relevant laws and regulations; |
- enquiring of management concerning actual and potential litigation and claims; |
- performing analytical procedures to identify any unusual or unexpected relationships that may indicate risks of material misstatement due to fraud; |
- reading minutes of meetings of those charged with governance and reviewing correspondence with HMRC; and |
- in addressing the risk of fraud through management override of controls, testing the appropriateness of journal entries and other adjustments; assessing whether the judgements made in making accounting estimates are indicative of a potential bias; and enquiring about any significant transactions that are unusual or outside the normal course of business. |
We also communicated relevant identified laws and regulations and potential fraud risks to all engagement team members, and remained alert to any indications of fraud or non-compliance with laws and regulations throughout the audit. |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
K2 SOLAR MOUNTING SOLUTIONS LIMITED |
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. |
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 |
Chartered Accountants and Statutory Auditors |
1 High Street |
Thatcham |
Berks |
RG19 3JG |
K2 SOLAR MOUNTING SOLUTIONS LIMITED (REGISTERED NUMBER: 07688136) |
INCOME STATEMENT |
for the year ended 31 DECEMBER 2024 |
31.12.24 | 31.12.23 |
Notes | £ | £ |
TURNOVER |
Cost of sales |
GROSS PROFIT |
Administrative expenses |
1,843,356 | 4,042,361 |
Other operating income |
OPERATING PROFIT | 4 |
Interest receivable and similar income |
1,843,596 | 4,269,597 |
Interest payable and similar expenses | 5 |
PROFIT BEFORE TAXATION |
Tax on profit | 6 |
PROFIT FOR THE FINANCIAL YEAR |
K2 SOLAR MOUNTING SOLUTIONS LIMITED (REGISTERED NUMBER: 07688136) |
OTHER COMPREHENSIVE INCOME |
for the year ended 31 DECEMBER 2024 |
31.12.24 | 31.12.23 |
Notes | £ | £ |
PROFIT FOR THE YEAR |
OTHER COMPREHENSIVE INCOME | - | - |
TOTAL COMPREHENSIVE INCOME FOR THE YEAR |
K2 SOLAR MOUNTING SOLUTIONS LIMITED (REGISTERED NUMBER: 07688136) |
BALANCE SHEET |
31 DECEMBER 2024 |
31.12.24 | 31.12.23 |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Intangible assets | 7 |
Tangible assets | 8 |
CURRENT ASSETS |
Stocks | 9 |
Debtors | 10 |
Cash at bank and in hand |
CREDITORS |
Amounts falling due within one year | 11 |
NET CURRENT ASSETS |
TOTAL ASSETS LESS CURRENT LIABILITIES |
PROVISIONS FOR LIABILITIES | 13 |
NET ASSETS |
CAPITAL AND RESERVES |
Called up share capital | 14 |
Retained earnings | 15 |
SHAREHOLDERS' FUNDS |
The financial statements were approved by the Board of Directors and authorised for issue on |
K2 SOLAR MOUNTING SOLUTIONS LIMITED (REGISTERED NUMBER: 07688136) |
STATEMENT OF CHANGES IN EQUITY |
for the year ended 31 DECEMBER 2024 |
Called up |
share | Retained | Total |
capital | earnings | equity |
£ | £ | £ |
Balance at 1 January 2023 |
Changes in equity |
Total comprehensive income | - |
Balance at 31 December 2023 |
Changes in equity |
Total comprehensive income | - |
Balance at 31 December 2024 |
K2 SOLAR MOUNTING SOLUTIONS LIMITED (REGISTERED NUMBER: 07688136) |
CASH FLOW STATEMENT |
for the year ended 31 DECEMBER 2024 |
31.12.24 | 31.12.23 |
Notes | £ | £ |
Cash flows from operating activities |
Cash generated from operations | 1 |
Interest paid | ( |
) | ( |
) |
Tax paid | ( |
) | ( |
) |
Net cash from operating activities |
Cash flows from investing activities |
Purchase of tangible fixed assets | ( |
) | ( |
) |
Interest received |
Net cash from investing activities | ( |
) | ( |
) |
Cash flows from financing activities |
Amounts due to/from group undertakings | ( |
) | ( |
) |
Net cash from financing activities | ( |
) | ( |
) |
Increase in cash and cash equivalents |
Cash and cash equivalents at beginning of year |
2 |
1,459,248 |
Cash and cash equivalents at end of year | 2 | 5,507,097 | 4,311,264 |
K2 SOLAR MOUNTING SOLUTIONS LIMITED (REGISTERED NUMBER: 07688136) |
NOTES TO THE CASH FLOW STATEMENT |
for the year ended 31 DECEMBER 2024 |
1. | RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS |
31.12.24 | 31.12.23 |
£ | £ |
Profit before taxation |
Depreciation charges |
Loss on disposal of fixed assets |
Finance costs | 468 | 7,050 |
Finance income | (240 | ) | - |
1,864,750 | 4,290,495 |
(Increase)/decrease in stocks | ( |
) |
(Increase)/decrease in trade and other debtors | ( |
) |
Increase/(decrease) in trade and other creditors | ( |
) |
Cash generated from operations |
2. | CASH AND CASH EQUIVALENTS |
The amounts disclosed on the Cash Flow Statement in respect of cash and cash equivalents are in respect of these Balance Sheet amounts: |
Year ended 31 December 2024 |
31.12.24 | 1.1.24 |
£ | £ |
Cash and cash equivalents | 5,507,097 | 4,311,264 |
Year ended 31 December 2023 |
31.12.23 | 1.1.23 |
£ | £ |
Cash and cash equivalents | 4,311,264 | 1,459,248 |
3. | ANALYSIS OF CHANGES IN NET FUNDS |
At 1.1.24 | Cash flow | At 31.12.24 |
£ | £ | £ |
Net cash |
Cash at bank and in hand | 4,311,264 | 1,195,833 | 5,507,097 |
4,311,264 | 5,507,097 |
Total | 4,311,264 | 1,195,833 | 5,507,097 |
K2 SOLAR MOUNTING SOLUTIONS LIMITED (REGISTERED NUMBER: 07688136) |
NOTES TO THE FINANCIAL STATEMENTS |
for the year ended 31 DECEMBER 2024 |
1. | STATUTORY INFORMATION |
K2 Solar Mounting Solutions Limited is a |
2. | ACCOUNTING POLICIES |
Basis of preparing the financial statements |
The presentation and functional currency for the entity is pound sterling. |
Turnover |
Turnover is measured at the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. |
Goodwill |
Goodwill is amortised over its estimate useful life. If there is an indication that there has been a significant change in amortisation rate, useful life or residual value of an intangible asset, the amortisation is revised prospectively to reflect the new estimates. |
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. |
Tangible fixed assets |
Plant and machinery | - |
Fixtures and fittings | - |
Motor vehicles | - |
Stocks |
Stocks are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items. |
They are valued on an average cost basis. |
Taxation |
Taxation for the year comprises current and deferred tax. Tax is recognised in the 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 balance sheet date. |
K2 SOLAR MOUNTING SOLUTIONS LIMITED (REGISTERED NUMBER: 07688136) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
for the year ended 31 DECEMBER 2024 |
2. | ACCOUNTING POLICIES - continued |
Deferred tax |
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet 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 |
Assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the balance sheet 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. |
Pension costs and other post-retirement benefits |
The company operates a defined contribution pension scheme. Contributions payable to the company's pension scheme are charged to profit or loss in the period to which they relate. |
3. | EMPLOYEES AND DIRECTORS |
31.12.24 | 31.12.23 |
£ | £ |
Wages and salaries |
Social security costs |
Other pension costs |
The average number of employees during the year was as follows: |
31.12.24 | 31.12.23 |
Warehouse | 4 | 4 |
Sales and administration | 11 | 11 |
Directors | 2 | 2 |
31.12.24 | 31.12.23 |
£ | £ |
Directors' remuneration |
4. | OPERATING PROFIT |
The operating profit is stated after charging/(crediting): |
31.12.24 | 31.12.23 |
£ | £ |
Depreciation - owned assets |
Loss on disposal of fixed assets |
Auditors' remuneration |
Foreign exchange differences | ( |
) |
K2 SOLAR MOUNTING SOLUTIONS LIMITED (REGISTERED NUMBER: 07688136) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
for the year ended 31 DECEMBER 2024 |
5. | INTEREST PAYABLE AND SIMILAR EXPENSES |
31.12.24 | 31.12.23 |
£ | £ |
Interest payable and similar |
charges |
6. | TAXATION |
Analysis of the tax charge |
The tax charge on the profit for the year was as follows: |
31.12.24 | 31.12.23 |
£ | £ |
Current tax: |
UK corporation tax |
Deferred tax | ( |
) |
Tax on profit |
Reconciliation of total tax charge included in profit and loss |
The tax assessed for the year is higher than the standard rate of corporation tax in the UK. The difference is explained below: |
31.12.24 | 31.12.23 |
£ | £ |
Profit before tax |
Profit multiplied by the standard rate of corporation tax in the UK of (2023 - |
Effects of: |
Expenses not deductible for tax purposes |
Capital allowances in excess of depreciation | - | ( |
) |
Depreciation in excess of capital allowances | - |
Change in UK tax rate | ( |
) |
Deferred tax | ( |
) |
Total tax charge | 461,742 | 1,008,914 |
K2 SOLAR MOUNTING SOLUTIONS LIMITED (REGISTERED NUMBER: 07688136) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
for the year ended 31 DECEMBER 2024 |
7. | INTANGIBLE FIXED ASSETS |
Goodwill |
£ |
COST |
At 1 January 2024 |
and 31 December 2024 |
AMORTISATION |
At 1 January 2024 |
and 31 December 2024 |
NET BOOK VALUE |
At 31 December 2024 |
At 31 December 2023 |
8. | TANGIBLE FIXED ASSETS |
Fixtures |
Short | Plant and | and | Motor |
leasehold | machinery | fittings | vehicles | Totals |
£ | £ | £ | £ | £ |
COST |
At 1 January 2024 |
Additions |
At 31 December 2024 |
DEPRECIATION |
At 1 January 2024 |
Charge for year |
At 31 December 2024 |
NET BOOK VALUE |
At 31 December 2024 |
At 31 December 2023 |
9. | STOCKS |
31.12.24 | 31.12.23 |
£ | £ |
Stocks |
10. | DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
31.12.24 | 31.12.23 |
£ | £ |
Trade debtors |
Amounts owed by group undertakings |
Other debtors |
Tax |
VAT |
Prepayments |
K2 SOLAR MOUNTING SOLUTIONS LIMITED (REGISTERED NUMBER: 07688136) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
for the year ended 31 DECEMBER 2024 |
11. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
31.12.24 | 31.12.23 |
£ | £ |
Trade creditors |
Amounts owed to group undertakings |
Tax |
Social security and other taxes |
VAT | 18,417 | - |
Accrued expenses |
12. | LEASING AGREEMENTS |
Minimum lease payments under non-cancellable operating leases fall due as follows: |
31.12.24 | 31.12.23 |
£ | £ |
Within one year |
Between one and five years |
In more than five years |
Operating lease payments of £170,645 (2023: £171,683) were included as expenses in the year. |
13. | PROVISIONS FOR LIABILITIES |
31.12.24 | 31.12.23 |
£ | £ |
Deferred tax | 22,772 | 24,592 |
Deferred |
tax |
£ |
Balance at 1 January 2024 |
Credit to Income Statement during year | ( |
) |
Balance at 31 December 2024 |
14. | CALLED UP SHARE CAPITAL |
Allotted, issued and fully paid: |
Number: | Class: | Nominal | 31.12.24 | 31.12.23 |
value: | £ | £ |
Ordinary | £250 | 25,000 | 25,000 |
Ordinary shares have full rights in the company with respect to voting, dividends and distributions. |
K2 SOLAR MOUNTING SOLUTIONS LIMITED (REGISTERED NUMBER: 07688136) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
for the year ended 31 DECEMBER 2024 |
15. | RESERVES |
Retained |
earnings |
£ |
At 1 January 2024 |
Profit for the year |
At 31 December 2024 |
16. | PENSION COMMITMENTS |
The company's pension contributions in the year were £16,133 (2023: £16,010). |
17. | RELATED PARTY DISCLOSURES |
During the year sales of £38,935 (2023: £211,621) were made to K2 Systems GmbH, a company in the same group. Costs for purchases of £6,234,817 (2023: £9,192,382 ), management fees of £72,690 (2023: £63,770), marketing of £18,595 (2023: £Nil), other professional fees of £Nil (2023: £39,093) and wages of £80,682 (2023: £77,446 ) were charged from them in the year. At the year end a balance of £14,083 (2023: £50,405) was owed to them. |
During the year sales of £24,932 (2023: £109,351) were made to K2 Solar Mounting Solutions (Pty) Ltd, a company in the same group. At the year end a balance of £18,358 (2023: £Nil) was due from them. |
During the year management fees of £37,154 (2023: £31,523), other professional fees of £Nil (2023: £9,625) and marketing costs of £7,391 (2023: £Nil) were paid to companies related by a common shareholder. |
18. | ULTIMATE CONTROLLING PARTY |
The company is controlled by its parent company K2 Systems Beteiligungen AG, a company incorporated in Switzerland. |
The ultimate parent company is Karakorum AG, a company incorporated in Switzerland. |