IRIS Accounts Production v24.3.2.46 NI055863 Board of Directors Board of Directors 1.7.23 30.6.24 30.6.24 Medium entities 23 22 true false true true false false true false These accounts have been prepared in accordance with the provisions applicable to companies subject to the medium-sized companies regime. Ordinary Share Capital 1.00000 iso4217:GBPiso4217:USDiso4217:EURxbrli:sharesxbrli:pureutr:tonnesutr:kWhNI0558632023-06-30NI0558632024-06-30NI0558632023-07-012024-06-30NI0558632022-06-30NI0558632022-07-012023-06-30NI0558632023-06-30NI055863ns15:NorthernIreland2023-07-012024-06-30NI055863ns14:PoundSterling2023-07-012024-06-30NI055863ns10:Director12023-07-012024-06-30NI055863ns10:Director22023-07-012024-06-30NI055863ns10:PrivateLimitedCompanyLtd2023-07-012024-06-30NI055863ns10:MediumEntities2023-07-012024-06-30NI055863ns10:Audited2023-07-012024-06-30NI055863ns10:Medium-sizedCompaniesRegimeForDirectorsReport2023-07-012024-06-30NI055863ns10:Medium-sizedCompaniesRegimeForAccounts2023-07-012024-06-30NI055863ns10:FullAccounts2023-07-012024-06-30NI055863ns10:OrdinaryShareClass12023-07-012024-06-30NI055863ns10:Director32023-07-012024-06-30NI055863ns10:Director42023-07-012024-06-30NI055863ns10:Director52023-07-012024-06-30NI055863ns10:Director62023-07-012024-06-30NI055863ns10:RegisteredOffice2023-07-012024-06-30NI055863ns5:CurrentFinancialInstruments2024-06-30NI055863ns5:CurrentFinancialInstruments2023-06-30NI055863ns5:Non-currentFinancialInstruments2024-06-30NI055863ns5:Non-currentFinancialInstruments2023-06-30NI055863ns5:ShareCapital2024-06-30NI055863ns5:ShareCapital2023-06-30NI055863ns5:RetainedEarningsAccumulatedLosses2024-06-30NI055863ns5:RetainedEarningsAccumulatedLosses2023-06-30NI055863ns5:ShareCapital2022-06-30NI055863ns5:RetainedEarningsAccumulatedLosses2022-06-30NI055863ns5:RetainedEarningsAccumulatedLosses2022-07-012023-06-30NI055863ns5:RetainedEarningsAccumulatedLosses2023-07-012024-06-30NI05586312023-07-012024-06-30NI05586312023-07-012024-06-30NI05586312022-07-012023-06-30NI055863ns5:HirePurchaseContracts2023-07-012024-06-30NI055863ns5:HirePurchaseContracts2022-07-012023-06-30NI055863ns5:PlantEquipmentOtherAssetsUnderOperatingLeases2023-07-012024-06-30NI055863ns5:PlantEquipmentOtherAssetsUnderOperatingLeases2022-07-012023-06-30NI055863ns5:OwnedAssets2023-07-012024-06-30NI055863ns5:OwnedAssets2022-07-012023-06-30NI055863ns5:PlantMachinery2023-06-30NI055863ns5:FurnitureFittings2023-06-30NI055863ns5:PlantMachinery2023-07-012024-06-30NI055863ns5:FurnitureFittings2023-07-012024-06-30NI055863ns5:PlantMachinery2024-06-30NI055863ns5:FurnitureFittings2024-06-30NI055863ns5:PlantMachinery2023-06-30NI055863ns5:FurnitureFittings2023-06-30NI055863ns5:LeasedAssetsHeldAsLessee2023-07-012024-06-30NI055863ns5:WithinOneYearns5:CurrentFinancialInstruments2024-06-30NI055863ns5:WithinOneYearns5:CurrentFinancialInstruments2023-06-30NI055863ns5:CurrentFinancialInstruments2023-07-012024-06-30NI055863ns5:WithinOneYearns5:CurrentFinancialInstrumentsns5:HirePurchaseContracts2024-06-30NI055863ns5:WithinOneYearns5:CurrentFinancialInstrumentsns5:HirePurchaseContracts2023-06-30NI055863ns5:BetweenOneFiveYearsns5:HirePurchaseContracts2024-06-30NI055863ns5:BetweenOneFiveYearsns5:HirePurchaseContracts2023-06-30NI055863ns5:HirePurchaseContracts2024-06-30NI055863ns5:HirePurchaseContracts2023-06-30NI055863ns5:DeferredTaxation2023-06-30NI055863ns5:DeferredTaxation2024-06-30NI055863ns10:OrdinaryShareClass12024-06-30
REGISTERED NUMBER: NI055863 (Northern Ireland)















KONFLOOR LTD

Strategic Report, Directors' Report and

Financial Statements for the Year Ended 30 June 2024






KONFLOOR LTD (REGISTERED NUMBER: NI055863)






Contents of the Financial Statements
FOR THE YEAR ENDED 30 JUNE 2024




Page

Company Information 1

Strategic Report 2

Directors' Report 4

Independent Auditors' Report 6

Income Statement 10

Statement of Financial Position 11

Statement of Changes in Equity 12

Notes to the Financial Statements 13


KONFLOOR LTD

Company Information
FOR THE YEAR ENDED 30 JUNE 2024







DIRECTORS: Jacqueline O'Reilly
Brendan O'Reilly
Kevin O'Reilly
Siadhal O'Reilly
Philip O'Reilly
Ciara Elmore





REGISTERED OFFICE: Suite D
Armagh Business Park
50 Hamiltonsbawn Road
Armagh
Co. Armagh
BT60 1HW





REGISTERED NUMBER: NI055863 (Northern Ireland)





INDEPENDENT AUDITORS: CavanaghKelly
Chartered Accountants and Statutory Auditors
36-38 Northland Row
Dungannon
Co. Tyrone
BT71 6AP

KONFLOOR LTD (REGISTERED NUMBER: NI055863)

Strategic Report
FOR THE YEAR ENDED 30 JUNE 2024

The directors present their strategic report for the year ended 30 June 2024.

REVIEW OF BUSINESS
The company reported a profit before tax for the financial year of £2,184 (30/6/23: £2,786,940) on a turnover of £12,166,842 (30/6/23: £22,465,052) the company had net assets of £2,581,578 (30/6/23:£2,602,271). An exceptional loss arising from a provision of a significant Related Party debtor considered irrecoverable at year end has had a significant impact on results for the year. The debt had no connection with the core business of the company.

The directors are committed to long-term creation of shareholder value by increasing the company's market share through organic growth. Whilst the incoming year is significantly challenging, results to date suggest the company have been able to perform well despite testing conditions.

Key performance indicators

30/6/24 30/6/23
Turnover 12,166,842 22,465,052
Gross profit 2,784,002 4,376,868
Average number of employees 23 22

PRINCIPAL RISKS AND UNCERTAINTIES
Business operations and execution of the company's strategic plan are subject to several risks and uncertainties:

INFLATIONARY COST PRESSURES
Manufacturers continue to be exposed to pressures created by Brexit, rising energy costs, supply chain disruption and the war in Ukraine. The business remains vigilant to the potential headwinds experienced by all aspects of the project cycle and seeks to mitigate these risks through robust commercial and risk management, on-going dialogue with key stakeholders, including customers and supply chain.

PROJECT TIMING/DELIVERY
Macroeconomic uncertainty and geopolitical tensions may result in delays to the commencement of secured projects. Tendered projects are often complex in nature and delivered oyer a period of many months with significant risks including procurement and delivery aspects. Tender assumptions and the underlying risks inherent in same may not be fully developed or appreciated. Robust internal control mechanisms and supply chain management have been introduced to avoid the pitfalls of substandard performance.

HUMAN RESOURCES
Recruitment, retention and development of key employees is paramount in the current economic climate, and the business continues to invest in employment training and development, together with appropriate incentive and career progression arrangements.

FINANCIAL RISK MANAGEMENT
The company's operations expose it to a variety of financial risks that include foreign exchange risk, price risk, credit risk and interest rate risk.

Given the size of the company, the directors have not delegated the responsibility of monitoring financial risk management to a sub-committee of the board. The policies set by the board of directors are implemented by the company's finance department.

FOREIGN EXCHANGE RISK
The company is exposed to some foreign exchange risk in the normal course of business, principally on sales recorded in Euros and borrowing denominated in Euros. While the company has not used complex financial instruments to date to hedge foreign exchange exposure; this position is kept constantly under review.


KONFLOOR LTD (REGISTERED NUMBER: NI055863)

Strategic Report
FOR THE YEAR ENDED 30 JUNE 2024

PRICE RISK
The company are exposed to commodity price risk as a result of its operations. However, given the size of the company's operations, the costs of managing exposure to commodity price risk exceed any potential benefits. The directors will revisit the appropriateness of this policy should the company's operations change in size or nature.

CREDIT RISK
The company has implemented policies that require appropriate credit checks on potential customers before sales are made. The amount of exposure to individual customers is subject to a limit, which is reassessed regularly by the board.

INTEREST RATE RISK
The company have both interest bearing assets and interest bearing liabilities. Interest bearing assets include cash balances, which earn interest at a variable rate. Interest bearing liabilities relate to shareholder loans, bank overdrafts and loans and obligations under hire purchase and finance lease agreements, which bear interest at market rates.

ENVIRONMENT
The company recognise their corporate responsibility to carry out their operations whilst minimizing the environmental impacts. The directors' continued aim is to comply with all applicable environmental legislation, prevent pollution and reduce waste wherever possible.

HEALTH AND SAFETY
The company are committed to achieving the highest practicable standards in health and safety management and strive to make all sites and offices safe environments for employees and customers alike.

HUMAN RESOURCES/EMPLOYEES
The most important resource of the company are the people employed: their knowledge and experience is crucial to meeting customer requirements. In this current economic climate, it is vitally important that the retention of key staff is achieved. The group and company continue to invest in employment training and development and have introduced appropriate incentive and career progression
arrangements.

ON BEHALF OF THE BOARD:





Jacqueline O'Reilly - Director


25 February 2025

KONFLOOR LTD (REGISTERED NUMBER: NI055863)

Directors' Report
FOR THE YEAR ENDED 30 JUNE 2024

The directors present their report with the financial statements of the Company for the year ended 30 June 2024.

PRINCIPAL ACTIVITY
The principal activity of the Company in the year under review was that of design and installation of specialist industrial flooring.

DIVIDENDS
No dividends will be distributed for the year ended 30 June 2024.

DIRECTORS
The directors shown below have held office during the whole of the period from 1 July 2023 to the date of this report.

Jacqueline O'Reilly
Brendan O'Reilly
Kevin O'Reilly
Siadhal O'Reilly
Philip O'Reilly
Ciara Elmore

POLITICAL DONATIONS AND EXPENDITURE
The Company made no political donations or incurred any political expenditure during the current or prior year.

DIRECTORS' RESPONSIBILITIES STATEMENT
The directors are responsible for preparing the Strategic Report, the Directors' 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), 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 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 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 Company's auditors are aware of that information.

KONFLOOR LTD (REGISTERED NUMBER: NI055863)

Directors' Report
FOR THE YEAR ENDED 30 JUNE 2024


AUDITORS
The auditors, CavanaghKelly, have indicated their willingness to continue in office in accordance with the provision of Section 485 of the Companies Act 2006.

ON BEHALF OF THE BOARD:





Jacqueline O'Reilly - Director


25 February 2025

Independent Auditors' Report to the Members of
Konfloor Ltd

Opinion
We have audited the financial statements of Konfloor Ltd (the 'Company') for the year ended 30 June 2024 which comprise the Income Statement, Statement of Financial Position, Statement of Changes in Equity and 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 30 June 2024 and of its loss 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 Directors' Report, but does not include the financial statements and our Auditors' Report 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 Directors' Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
- the Strategic Report and the Directors' Report have been prepared in accordance with applicable legal requirements.

Independent Auditors' Report to the Members of
Konfloor Ltd


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 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 Directors' Responsibilities Statement set out on page four, 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.

Independent Auditors' Report to the Members of
Konfloor Ltd


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 an Auditors' 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.

Explanation as to what extent the audit was considered capable of detecting irregularities, including fraud

Irregularities, including fraud, are instances of non-compliance with laws and regulations. The objectives of our audit in respect of fraud are to assess the risk of material misstatement due to fraud, design and implement appropriate responses to those assessed risks and to respond appropriately to instances of fraud or suspected fraud identified during the course of our audit. However, the primary responsibility for the prevention and detection of fraud rests with management and those charged with governance of the company.

In identifying and assessing risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, our procedures included the following:

- We obtained understanding of the legal and regulatory requirements applicable to the company’s financial statements and considered the most significant are the Companies Act 2006, Financial Reporting Standards (FRS102) and UK taxation legislation;
- We have assessed the risk of material misstatement of the financial statements, including risk of material misstatement due to fraud and how it might occur by holding discussions with management and those charged with governance;
- We enquired of management and those charged with governance as to any known instances of non-compliance or suspected non-compliance with laws and regulations;
- Understanding the internal controls established to mitigate risks related to fraud or non-compliance with laws and regulations; and
- Discussions amongst the audit engagement team regarding how fraud might occur in the financial statements and any potential indicators of fraud. As part of this discussion we identified the following potential areas where fraud may occur: timing of revenue recognition and management override.

The audit response to risks identified included:

- Reviewing the financial statements disclosures and testing to supporting documentation to assess compliance with the relevant laws and regulations above;
- Performing analytical procedures to identify any unusual or unexpected relationships that may indicate risk of material misstatement due to fraud;
- 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 reasonable and evaluating the business rationale of any significant transactions that are unusual or outside the normal course of business.

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 Auditors' Report.

Independent Auditors' Report to the Members of
Konfloor Ltd


Use of our report
This report is made solely to the Company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the Company's members those matters we are required to state to them in an Auditors' Report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the Company and the Company's members as a body, for our audit work, for this report, or for the opinions we have formed.




Mr. Ryan Falls (F.C.A.) (Senior Statutory Auditor)
for and on behalf of CavanaghKelly
Chartered Accountants and Statutory Auditors
36-38 Northland Row
Dungannon
Co. Tyrone
BT71 6AP

25 February 2025

KONFLOOR LTD (REGISTERED NUMBER: NI055863)

Income Statement
FOR THE YEAR ENDED 30 JUNE 2024

30/6/24 30/6/23
Notes £ £

REVENUE 5 12,166,842 22,465,052

Cost of sales (9,382,840 ) (18,088,184 )
GROSS PROFIT 2,784,002 4,376,868

Administrative expenses (1,744,945 ) (1,262,414 )
1,039,057 3,114,454

Exceptional item 7 (997,003 ) (300,000 )
42,054 2,814,454

Finance income 440 1,827
42,494 2,816,281

Finance costs 8 (40,310 ) (29,341 )
PROFIT BEFORE TAXATION 9 2,184 2,786,940

Tax on profit 10 (23,327 ) (567,557 )
(LOSS)/PROFIT FOR THE
FINANCIAL YEAR

(21,143

)

2,219,383

OTHER COMPREHENSIVE INCOME - -
TOTAL COMPREHENSIVE INCOME
FOR THE YEAR

(21,143

)

2,219,383

KONFLOOR LTD (REGISTERED NUMBER: NI055863)

Statement of Financial Position
30 JUNE 2024

30/6/24 30/6/23
Notes £ £
NON-CURRENT ASSETS
Property, plant and equipment 11 616,567 708,116

CURRENT ASSETS
Inventories 12 193,464 299,516
Receivables: amounts falling due within
one year

13

11,591,042

14,737,313
Debtors: amounts falling due after
more than one year

13

-

808,809
Investments 14 882 882
Cash at bank and in hand 2,354,798 1,563,629
14,140,186 17,410,149
PAYABLES
Amounts falling due within one year 15 (11,281,792 ) (14,386,670 )
NET CURRENT ASSETS 2,858,394 3,023,479
TOTAL ASSETS LESS CURRENT
LIABILITIES

3,474,961

3,731,595

PAYABLES
Amounts falling due after more than
one year

16

(278,586

)

(417,981

)

PROVISIONS FOR LIABILITIES 19 (614,797 ) (710,893 )
NET ASSETS 2,581,578 2,602,721

CAPITAL AND RESERVES
Called up share capital 20 120 120
Retained earnings 2,581,458 2,602,601
SHAREHOLDERS' FUNDS 2,581,578 2,602,721

The financial statements were approved by the Board of Directors and authorised for issue on 25 February 2025 and were signed on its behalf by:




Jacqueline O'Reilly - Director



Brendan O'Reilly - Director


KONFLOOR LTD (REGISTERED NUMBER: NI055863)

Statement of Changes in Equity
FOR THE YEAR ENDED 30 JUNE 2024

Called up
share Retained Total
capital earnings equity
£ £ £
Balance at 1 July 2022 120 383,218 383,338

Changes in equity
Total comprehensive income - 2,219,383 2,219,383
Balance at 30 June 2023 120 2,602,601 2,602,721

Changes in equity
Total comprehensive income - (21,143 ) (21,143 )
Balance at 30 June 2024 120 2,581,458 2,581,578

KONFLOOR LTD (REGISTERED NUMBER: NI055863)

Notes to the Financial Statements
FOR THE YEAR ENDED 30 JUNE 2024

1. STATUTORY INFORMATION

Konfloor Ltd is a private company, limited by shares, registered within the United Kingdom. The company's registered number and registered office address can be found on the Company Information page.

2. STATEMENT OF COMPLIANCE

These financial statements have been prepared in accordance with Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" and the Companies Act 2006.

3. ACCOUNTING POLICIES

Basis of preparing the financial statements
The financial statements have been prepared under the historical cost convention, on a going concern basis.

The preparation of financial statements requires the use of certain critical accounting estimates. It
also requires management to exercise its judgement in the process of applying the company accounting policies.

The following accounting policies have been applied consistently throughout the year.

Financial Reporting Standard 102 - reduced disclosure exemptions

The entity satisfies the criteria of being a qualifying entity as defined in FRS 102. Its financial statements are consolidated into the financial statements of Konstruction Services Ltd which can be obtained from Companies House.

The company has taken advantage of the following exemptions:

- from disclosing related party transactions that are wholly within the same group under
paragraph 33.1 of the provisions of FRS102, on the grounds that at 30 June 2024 the
company was a wholly owned subsidiary of Konstruction Services Ltd;
- from preparing a Statement of cash flows on the basis that it is a qualifying entity and its
cash flows are included in the cash flow statement in the consolidated financial statements of
its parent company;
- from the financial instrument disclosures required under FRS 102 paragraphs 11.41(b) to
11.48(c) and 12.26 to 12.29, as the information is provided in the consolidated financial
statement disclosures; and

-
from disclosing the company's key management personnel compensation as
required by FRS 102 paragraph 33.7.


Revenue
Revenue comprises the invoice value of goods and services supplied by the company, exclusive of trade discounts and value added tax. The policies adopted for the recognition of revenue are as follows:

Construction contracts

When the outcome of a construction contract can be estimated reliably, contract costs and turnover are recognised by reference to the stage of completion at the balance sheet date.

Where the outcome cannot be measured reliably, contract costs are recognised as an expense in the period in which they are incurred and contract turnover is recognised to the extent of costs incurred that it is probable will be recoverable.

When it is probable that contract costs will exceed the total contract turnover, the expected loss is recognised as an expense immediately, with a corresponding provision.

KONFLOOR LTD (REGISTERED NUMBER: NI055863)

Notes to the Financial Statements - continued
FOR THE YEAR ENDED 30 JUNE 2024

3. ACCOUNTING POLICIES - continued

Property, plant and equipment
Property, Plant and Equipment under the cost model are stated at historical cost less accumulated depreciation and any accumulated impairment losses. Historical cost includes expenditure that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management.

The company adds to the carrying amount of an item of fixed assets the cost of replacing part of such an item when that cost is incurred, if the replacement part is expected to provide incremental future benefits to the company. The carrying amount of the replaced part is derecognised. Repairs and maintenance are charged to the Income Statement during the period in which they are incurred.

Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives. The estimated useful lives range as follows:

Plant and Machinery- 20% straight line
Fixtures and Fittings- 20% reducing balance

The asset's residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or there is an indication of a significant change since the last reporting date.

Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised within the Income Statement.

Work in progress
Work in progress is stated at the lower of cost and net realisable value. Cost includes all costs incurred in bringing each contract to its present stage, plus an element of profit attributable to the current stage of completion. Net realisable value is based on estimated contract price less any further costs expected to be incurred to completion.

KONFLOOR LTD (REGISTERED NUMBER: NI055863)

Notes to the Financial Statements - continued
FOR THE YEAR ENDED 30 JUNE 2024

3. ACCOUNTING POLICIES - continued

Financial instruments
The company have chosen to adopt Sections 11 and 12 of FRS 102 in respect of financial instruments.

(i) Financial assets

Basic financial assets, including trade and other receivables, cash and bank balances and amounts owed by related parties are initially recognised at transaction price, 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. Such assets are subsequently carried at amortised cost using the effective interest method.

At the end of each reporting period financial assets measured at amortised cost are assessed for objective evidence of impairment. 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 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.

Financial assets are derecognised when (a) the contractual rights to the cash flows from the asset expire or are settled, or (b) substantially all the risks and rewards of the ownership of the asset are transferred to another party or (c) despite having retained some significant risks and rewards of ownership, control of the asset has been transferred to another party who has the practical ability to unilaterally sell the asset to an unrelated third party without imposing additional restrictions.

(ii) Financial liabilities

Basic financial liabilities, including trade and other payables, bank loans and overdrafts and amounts owed to related parties are initially recognised at transaction price, unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future receipts discounted at a market rate of interest. Debt instruments are subsequently carried at amortised cost, using the effective interest rate method. Fees paid on the establishment of loan facilities are recognised as transaction costs of the loan to the extent that it is probable that some or all of the facility will be drawn down. In this case, the fee is deferred until the draw-down occurs. To the extent there is no evidence that it is probable that some or all of the facility will be drawn down, the fee is capitalised as a pre-payment for liquidity services and amortised over the period of the facility to which it relates.

Trade payables are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Accounts 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 payables are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

Financial liabilities are derecognised when the liability is extinguished, that is when the contractual obligation is discharged, cancelled or expires.

(iii) Offsetting

Financial assets and liabilities are offset and 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.


KONFLOOR LTD (REGISTERED NUMBER: NI055863)

Notes to the Financial Statements - continued
FOR THE YEAR ENDED 30 JUNE 2024

3. ACCOUNTING POLICIES - continued
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 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. Current tax represents the amount expected to be paid or recovered in respect of taxable profits for the year and is calculated using the tax rates and laws that have been enacted or substantially enacted at 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
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.

Hire purchase and leasing commitments
Property, plant and equipment held under Hire Purchase and leasing arrangement which transfer
substantially all the risks and rewards of ownership to the company are capitalised and included in
the Statement of Financial Position at their cost or valuation, less depreciation. The corresponding
commitments are recorded as liabilities. Payments in respect of these obligations are treated as
consisting of capital and interest elements, with interest charged to the Income Statement.

Pension costs and other post-retirement benefits
The company operates a defined contribution pension scheme. The assets of the scheme are held separately from those of the company in an independently administered fund. Contributions payable to the company's pension scheme are charged to profit or loss in the period to which they relate.

Finance costs
Finance costs are charged to the Income statement and retained earnings over the term of the debt using the effective interest method so that the amount charged is at a constant rate on the carrying amount.

Cash and cash equivalents
Cash and cash equivalents includes cash in hand and deposits held at call with banks.

KONFLOOR LTD (REGISTERED NUMBER: NI055863)

Notes to the Financial Statements - continued
FOR THE YEAR ENDED 30 JUNE 2024

3. ACCOUNTING POLICIES - continued

Share capital
Ordinary shares are classified as equity. Incremental costs directly attributable to the issue of new ordinary shares or options are shown in equity as a deduction, net of tax, from the proceeds.

Distributions to equity holders
Dividends and other distributions to the Company's shareholders are recognised as a liability in the financial statements in the period in which the dividends and other distributions are approved by the Company's shareholders. These amounts are recognised in the statement of changes in equity.

Exceptional Item
Exceptional items are disclosed separately in the financial statements where it is necessary to do so to provide further understanding of the financial performance of the company. They are items that are material either because of their size or their nature, or that are nonrecurring are considered as exceptional items are presented within the line items to which they are best related.

4. CRITICAL ACCOUNTING JUDGEMENTS AND KEY SOURCES OF ESTIMATION UNCERTAINTY

Estimates and judgements are continually evaluated and are based on historical experience and
other factors, including expectations of future events that are believed to be reasonable under the
circumstances.

(a) Critical judgements in applying the company's accounting policies

There are no critical judgements in applying the company's accounting policies.

(b) Critical accounting estimates and assumptions

Warranty Provision
The company offers a warranty for any faulty goods sold. Provision is made for potential claims under warranty for goods which have been returned. Management review the level of sales and thenumber of warranty claims made of a regular basis in order to calculate the provision for future
claims for goods sold.

5. REVENUE

No analysis of turnover is presented as the directors consider such disclosure to be seriously prejudicial to the company's interests.

6. EMPLOYEES AND DIRECTORS

30/6/2430/6/23
£   £   
Wages and salaries1,380,174795,660
Social security costs142,08474,350
Other pension costs20,21714,653
1,542,475884,663

The average number of employees during the year was as follows:

30/6/2430/6/23

Sales and Administration43
Direct1919
2322

KONFLOOR LTD (REGISTERED NUMBER: NI055863)

Notes to the Financial Statements - continued
FOR THE YEAR ENDED 30 JUNE 2024

30/6/24 30/6/23
£    £   
Directors' Remuneration 21,600 19,800

7. EXCEPTIONAL ITEM
30/6/24 30/6/23
£ £
Exceptional item (997,003 ) (300,000 )

The exceptional item in the financial statements relates to the provision of a related party balance amounting to £997,003 (2023:£300,000), recoverability of which is uncertain. This balance was not trade related.

8. FINANCE COSTS
30/6/24 30/6/23
£ £
Factoring interest 10,940 12,631
Hire purchase interest 29,370 16,710
40,310 29,341

9. PROFIT BEFORE TAXATION

The profit is stated after charging:

30/6/24 30/6/23
£ £
Hire of plant and machinery 414,072 785,528
Rent 35,064 28,741
Depreciation - owned assets 91,549 147,257
Auditors' remuneration 12,600 12,000
Foreign exchange differences 27,707 34,937

10. TAXATION

Analysis of the tax charge
The tax charge on the profit for the year was as follows:
30/6/24 30/6/23
£ £
Current tax:
UK corporation tax 46,613 393,015

Deferred tax (23,286 ) 174,542
Tax on profit 23,327 567,557

KONFLOOR LTD (REGISTERED NUMBER: NI055863)

Notes to the Financial Statements - continued
FOR THE YEAR ENDED 30 JUNE 2024

10. TAXATION - continued

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:

30/6/24 30/6/23
£ £
Profit before tax 2,184 2,786,940
Profit multiplied by the standard rate of corporation tax in the UK
of 25% (2023 - 20.500%)

546

571,323

Effects of:
Expenses not deductible for tax purposes 250,086 62,046
Impact of super-deduction - (28,950 )
Impact of rate change - 31,446
Movement in unrecognised deferred tax - (68,308 )
Group Reliefs claimed (227,305 ) -
Total tax charge 23,327 567,557

11. PROPERTY, PLANT AND EQUIPMENT
Fixtures
Plant and and
machinery fittings Totals
£ £ £
COST
At 1 July 2023
and 30 June 2024 864,924 3,865 868,789
DEPRECIATION
At 1 July 2023 159,641 1,032 160,673
Charge for year 90,776 773 91,549
At 30 June 2024 250,417 1,805 252,222
NET BOOK VALUE
At 30 June 2024 614,507 2,060 616,567
At 30 June 2023 705,283 2,833 708,116

The net book value of assets held under finance leases or hire purchase contracts at the year end
was £439,882 (30/6/23: £572,149). The depreciation charged in the year for these assets was £138,825 (30/6/23: £114,321).

12. INVENTORIES
30/6/24 30/6/23
£ £
Inventories 193,464 299,516

KONFLOOR LTD (REGISTERED NUMBER: NI055863)

Notes to the Financial Statements - continued
FOR THE YEAR ENDED 30 JUNE 2024

13. RECEIVABLES
30/6/24 30/6/23
£ £
Amounts falling due within one year:
Trade receivables 3,248,151 8,372,868
Amounts owed by group undertakings 7,348,285 4,728,938
Other receivables 780,787 1,628,026
Corporation Tax 203,416 -
Prepayments and accrued income 10,403 7,481
11,591,042 14,737,313

Amounts falling due after more than one year:
Other debtors - 808,809

Aggregate amounts 11,591,042 15,546,122

Amounts owed by group undertakings are unsecured, interest free and payable on demand.

14. CURRENT ASSET INVESTMENTS
30/6/24 30/6/23
£ £
Unlisted investments 882 882

15. PAYABLES: AMOUNTS FALLING DUE WITHIN ONE YEAR
30/6/24 30/6/23
£ £
Hire purchase contracts (see note 17) 139,391 155,618
Trade payables 1,788,981 7,004,092
Amounts owed to group undertakings 9,216,320 6,717,950
Corporation Tax - 392,986
Social security and other taxes 60,533 43,348
Other payables 1,338 8,828
Accruals and deferred income 75,229 63,848
11,281,792 14,386,670

Amounts owed to group undertakings are unsecured, interest free and payable on demand

16. PAYABLES: AMOUNTS FALLING DUE AFTER ONE YEAR
30/6/24 30/6/23
£ £
Hire purchase contracts (see note 17) 278,586 417,981

17. LEASING AGREEMENTS

Minimum lease payments under hire purchase fall due as follows:

30/6/24 30/6/23
£ £
Net obligations repayable:
Within one year 139,391 155,618
Between one and five years 278,586 417,981
417,977 573,599

Hire purchase and finance leases are secured by the assets to which they relate.

KONFLOOR LTD (REGISTERED NUMBER: NI055863)

Notes to the Financial Statements - continued
FOR THE YEAR ENDED 30 JUNE 2024

18. FINANCIAL INSTRUMENTS

30/6/24 30/6/23
£    £   
Financial assets
Financial assets that are debt instruments measured at
amortised cost


11,377,223

15,538,641
Financial liabilities
Financial liabilities measured at amortised cost 11,499,845 14,368,317


Financial assets measured at amortised cost comprise of trade debtors, other debtors and director's current accounts.

Financial liabilities measured at amortised cost comprise of bank overdraft, trade creditors, other creditors, accruals and obligations under finance lease and hire purchase agreements.

19. PROVISIONS FOR LIABILITIES
30/6/24 30/6/23
£ £
Deferred tax 151,256 174,542
Warranty provision 463,541 536,351
614,797 710,893

Deferred tax
£
Balance at 1 July 2023 174,542
Movement in the Year (23,286 )
Balance at 30 June 2024 151,256

The provision for deferred tax relates to accelerated capital allowances.

The company offers a warranty for any faulty goods sold. Provision is made for potential claims under warranty for goods which have a default. Management review the level of sales and the number of warranty claims made on a regular basis in order to calculate the provision for future claims for goods sold.

20. CALLED UP SHARE CAPITAL

Allotted, issued and fully paid:
Number: Class: Nominal 30/6/24 30/6/23
value: £ £
120 Ordinary Share Capital £1 120 120

21. PENSION COMMITMENTS

The amount recognised in profit or loss as an expense in relation to defined contribution plans was £20,217 (30/6/23: £14,653)

KONFLOOR LTD (REGISTERED NUMBER: NI055863)

Notes to the Financial Statements - continued
FOR THE YEAR ENDED 30 JUNE 2024

22. 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.

At the year end there were amounts owed by relates parties of £200,000 (30/6/23: £1,024,809) as disclosed within note 9. This entity is related by virtue of common ultimate controlling persons.

The exceptional item as detailed in note 7 relates to an irrecoverable debt in respect of a balance outstanding from a party related through common directors.

23. ULTIMATE CONTROLLING PARTY

The ultimate controlling party is Konstruction Contract Services Ltd, a company incorporated in Northern Ireland.

The address of Konstruction Contract Services Ltd is Suite D, Dean Swift Building, Armagh Business Park, 50 Hamiltonsbawn Road, Armagh, BT60 1HW.

The parent of the group in which the results are consolidated is Konstruction Contract Services Ltd.