REGISTERED NUMBER: |
Unaudited financial statements for the year ended 31st July 2024 |
For |
Kaizen Furniture Makers Limited |
REGISTERED NUMBER: |
Unaudited financial statements for the year ended 31st July 2024 |
For |
Kaizen Furniture Makers Limited |
Kaizen Furniture Makers Limited (Registered number: 02945685) |
Contents of the financial statements |
For The Year Ended 31st July 2024 |
Page |
Balance sheet | 1 |
Notes to the financial statements | 3 |
Kaizen Furniture Makers Limited (Registered number: 02945685) |
Balance sheet |
31st July 2024 |
2024 | 2023 |
Notes | £ | £ | £ | £ |
Fixed assets |
Tangible assets | 4 |
Current assets |
Stocks |
Debtors | 5 |
Cash in hand |
Creditors |
Amounts falling due within one year | 6 |
Net current assets |
Total assets less current liabilities |
Creditors |
Amounts falling due after more than one year | 7 | ( |
) | ( |
) |
Provisions for liabilities | ( |
) | ( |
) |
Net assets |
Capital and reserves |
Called up share capital |
Profit and loss account |
The directors acknowledge their responsibilities for: |
(a) | ensuring that the company keeps accounting records which comply with Sections 386 and 387 of the Companies Act 2006 and |
(b) | preparing financial statements which give a true and fair view of the state of affairs of the company as at the end of each financial year and of its profit or loss for each financial year in accordance with the requirements of Sections 394 and 395 and which otherwise comply with the requirements of the Companies Act 2006 relating to financial statements, so far as applicable to the company. |
Kaizen Furniture Makers Limited (Registered number: 02945685) |
Balance sheet - continued |
31st July 2024 |
The financial statements were approved by the Board of Directors and authorised for issue on |
Kaizen Furniture Makers Limited (Registered number: 02945685) |
Notes to the financial statements |
For The Year Ended 31st July 2024 |
1. | Statutory information |
Kaizen Furniture Makers Limited is a private company, limited by shares, registered in England and Wales. The company registration number is 02945685 and the registered office is The Mint Shed, Great Myles Farm, Ongar Road ,Ongar, Essex, CM15 0LB. |
2. | Accounting policies |
Basis of preparing the financial statements |
Accounting estimates and judgements |
In the preparation of these financial statements the directors have made certain judgements and estimates that impact the measurement of various assets and liabilities , and the value of transactions recorded in the financial statements. |
Typically FRS 102 requires management to estimate the total expected costs on a long term contract and form valuations on the stage of contract completion in order to determine both the turnover and profit to be recognised in an accounting period. These estimates and judgements are reviewed and benchmarked against independent certification of the valuation of completed works, the progress of work against contractual timelines and total costs incurred as a percentage of total estimated costs of completion. |
Management regularly review and evaluate the estimates being made to ensure they are consistent and appropriate. |
Turnover |
Turnover is measured at the fair value of the consideration received or receivable, net of discounts |
and value added taxes. Turnover includes revenue earned from the sale of goods and from the |
rendering of services. Turnover from the sale of goods is recognised when the significant risks |
and rewards of ownership of the goods have transferred to the buyer. Turnover from the rendering |
of services is recognised by reference to the stage of completion of the contract. The stage of |
completion of a contract is measured by comparing the costs incurred for work performed to date |
to the total estimated contract costs. |
Kaizen Furniture Makers Limited (Registered number: 02945685) |
Notes to the financial statements - continued |
For The Year Ended 31st July 2024 |
2. | Accounting policies - continued |
Tangible fixed assets |
Tangible fixed assets are measured at cost less accumulated depreciation and any accumulated |
impairment losses. Depreciation is provided on all tangible fixed assets, other than freehold land, |
at rates calculated to write off the cost, less estimated residual value, of each asset evenly over its |
expected useful life, as follows: |
Leasehold Improvements | Over the lease term |
Assets held under finance leases | 6.67%-33.33% straight line |
Computer equipment | 33.33% straight line |
Fixtures, fittings and equipment | 20% reducing balance |
Debtors |
Short and long term debtors are measured at transaction price (which is usually the invoice price), less any impairment losses for bad and doubtful debts. |
Amounts recoverable on long term contracts represent the gross billed amount for work performed to date, inclusive of any contract retentions withheld. They are measured at cost plus profit recognised to date, less any progress billings and any provision for foreseeable losses. |
Loans and other financial assets are initially recognised at transaction price including any transaction costs and subsequently measured at amortised cost determined using the effective interest method, less any impairment losses for bad and doubtful debts. |
Creditors |
Short term creditors are measured at transaction price (which is usually the invoice price). Loans |
and other financial liabilities are initially recognised at transaction price net of any transaction costs |
and subsequently measured at amortised cost determined using the effective interest method. |
Included in creditors are loans and finance made available through the Coronavirus Business Interruption Loan scheme ("CBILS").This scheme was a government initiative to support all small and medium-sized businesses adversely affected by the Coronavirus pandemic, and provides the lender with a guarantee for 80% of qualifying loans. |
Stocks -wip on long term contracts |
WIP on long term contracts relates to recoverable costs incurred in respect of future activity on a contract, and includes costs such as materials . |
Kaizen Furniture Makers Limited (Registered number: 02945685) |
Notes to the financial statements - continued |
For The Year Ended 31st July 2024 |
2. | Accounting policies - continued |
Taxation |
A current tax liability is recognised for the tax payable on the taxable profit of the current and past |
periods. A current tax asset is recognised in respect of a tax loss that can be carried back to |
recover tax paid in a previous period. |
Deferred tax is recognised in respect of all timing differences between the recognition of income and expenses in the financial statements and their inclusion in tax assessments. 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. |
The carrying amount of deferred tax assets is reviewed and assessed each reporting period and adjusted where necessary to the reflect the extent of asset recovery against future taxable profits. |
Deferred tax is measured using the tax rates and laws that have been enacted or substantively enacted by the reporting date and that are expected to apply to the reversal of the timing difference, except for revalued land and investment property where the tax rate that applies to the sale of the asset is used. Current and deferred tax assets and liabilities arenot discounted. |
Provisions |
Provisions (ie liabilities of uncertain timing or amount) are recognised when there is an obligation |
at the reporting date as a result of a past event, it is probable that economic benefit will be |
transferred to settle the obligation and the amount of the obligation can be estimated reliably. |
Onerous contract provisions are recognised when there are unavoidable costs of meeting the |
obligations specified by a contract and those costs exceed the economic benefits expected to |
be received under it. These unavoidable costs reflect either the net cost of exiting from the |
contract, or the cost of fulfilling it. |
Foreign currency translation |
Transactions in foreign currencies are initially recognised at the rate of exchange ruling at the date |
of the transaction. At the end of each reporting period foreign currency monetary items are |
translated at the closing rate of exchange. Non-monetary items that are measured at historical |
cost are translated at the rate ruling at the date of the transaction. All differences are charged to |
profit or loss. |
Leased assets |
A lease is classified as a finance lease if it transfers substantially all the risks and rewards |
incidental to ownership. All other leases are classified as operating leases. |
The rights of use and obligations under finance leases are initially recognised as assets and liabilities at amounts equal to the fair value of the leased assets or, if lower, the present value of the minimum lease payments. |
Minimum lease payments are apportioned between the finance charge and the reduction in the outstanding liability using the effective interest rate method. The finance charge is allocated to each period during the lease so as to produce a constant periodic rate of interest on |
the remaining balance of the liability. |
Leased assets are depreciated in accordance with the |
company's policy for tangible fixed assets. If there is no reasonable certainty that ownership will be |
obtained at the end of the lease term, the asset is depreciated over the lower of the lease term |
and its useful life. Operating lease payments are recognised as an expense on a straight line basis |
over the lease term. |
Kaizen Furniture Makers Limited (Registered number: 02945685) |
Notes to the financial statements - continued |
For The Year Ended 31st July 2024 |
2. | Accounting policies - continued |
Pensions |
Contributions to defined contribution plans are expensed in the period to which they relate. |
Equity settled share based payments |
The company operate an approved enterprise management incentive (EMI) scheme that allows key employees to acquire shares in the Company .The fair value of the employee services, received in exchange for the grant of shares, is measured at the grant date and is recognised as an expense with a corresponding increase in equity. The charge is calculated by the actual market value of the shares at grant of option, or where possible the underlying fair market value at the reporting date, and is expensed to the income statement over the vesting period of the option. |
3. | Employees and directors |
The average number of employees during the year was |
4. | Tangible fixed assets |
Fixtures |
Leasehold | and | Computer |
improvements | fittings | equipment | Totals |
£ | £ | £ | £ |
Cost |
At 1st August 2023 |
Additions |
At 31st July 2024 |
Depreciation |
At 1st August 2023 |
Charge for year |
At 31st July 2024 |
Net book value |
At 31st July 2024 |
At 31st July 2023 |
5. | Debtors |
2024 | 2023 |
£ | £ |
Amounts falling due within one year: |
Trade debtors |
Corporation Tax | 76,143 | 59,751 |
Other debtors |
Amounts recoverable on long |
term contracts | 591,821 | 29,927 |
Kaizen Furniture Makers Limited (Registered number: 02945685) |
Notes to the financial statements - continued |
For The Year Ended 31st July 2024 |
5. | Debtors - continued |
2024 | 2023 |
£ | £ |
Amounts falling due after more than one year: |
Amounts recoverable on long |
term contracts | 99,874 | 193,042 |
Aggregate amounts |
6. | Creditors: amounts falling due within one year |
2024 | 2023 |
£ | £ |
Trade creditors |
Obligations under finance |
leases/hire purchase contracts | 7,117 | 20,481 |
Other tax and social security |
Other creditors |
Other loans payable | 60,797 | 57,784 |
Advance payments on long |
term contracts | 434,237 | 283,917 |
7. | Creditors: amounts falling due after more than one year |
2024 | 2023 |
£ | £ |
Obligations under finance |
lease/hire purchase contracts |
Other loans Payable |
8. | Pension commitments |
The company makes pension contributions to a defined contribution pension scheme on behalf of the directors and employees. Under these arrangements , the company made defined contributions totalling £135,272 (2023: £55,011). The assets of the scheme are held separately from those of the company and are independently administered. |
Kaizen Furniture Makers Limited (Registered number: 02945685) |
Notes to the financial statements - continued |
For The Year Ended 31st July 2024 |
9. | Finance lease obligations |
Included within Creditors falling due within and after one year (note 7 and 8) are obligations under finance leases/hire purchase contracts that are wholly repayable within five years. |
2024 | 2023 |
£ | £ |
Obligations under Finance Leases and Hire Purchase contracts |
7,117 | 27,598 |
Amounts falling due; |
Within one year | 7,117 | 20,481 |
Within two to five years | - | 7,117 |
7,117 | 27,598 |
10. | Borrowings |
Included within Creditors falling due within and after one year (note 7 and 8) are other loans that are wholly repayable within five years |
2024 | 2023 |
£ | £ |
Loans wholly repayable within five years |
Corona virus business interruption loan (5% Apr - 60 month term) | 73,522 | 129,126 |
Other Loan (3.8% interest- 60 month term) | 1,239 | 3,419 |
74,761 | 132,545 |
Within one year | 59,688 | 57,784 |
Within two to five years | 15,073 | 74,761 |
74,761 | 132,545 |
11. | Operating lease commitments |
2024 | 2023 |
£ | £ |
Total future minimum payments under non-cancellable operating |
leases | 393,845 | 431,486 |
Amounts falling due; |
Within one year | 96,595 | 81,140 |
Within two to five years | 294,966 | 345,270 |
After five years | 2,284 | - |
393,845 | 431,486 |
Kaizen Furniture Makers Limited (Registered number: 02945685) |
Notes to the financial statements - continued |
For The Year Ended 31st July 2024 |
12. | Controlling party |
13. | Approved enterprise management incentive (emi ) scheme |
An Approved EMI Scheme was introduced on 29/06/2019 to encourage key employees to take a long term interest in the company's future. The share options were offered on the basis that the individual remains in employment of the company for 5 years from the grant date of the shares.The share options issued can only be exercised and their value realised in an exit event ie. a management buyout or trade sale of the business. |
On 28/02/2021 and 30/06/2022 the Company issued further tranches of EMI Share options through the scheme to further incentivise key employees, those attaching the same conditions as the 29/06/2019 scheme offering. |
During the year ended 31 July 2024, the company recognised a cumulative expense of £21,613 (2023: £11,962) in respect of the employee services received since the grant date . |