Company Registration No. 04211722 (England and Wales)
COOLKIT LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024
PM+M Solutions for Business LLP
Chartered Accountants
New Century House
Greenbank Technology Park
Challenge Way
Blackburn
Lancashire
BB1 5QB
COOLKIT LIMITED
COMPANY INFORMATION
Directors
Mr R P Gatty
Mr D Miller
Mr J Gleave
(Appointed 1 July 2024)
Secretary
Miss J A M Czerwonka
Company number
04211722
Registered office
Thornley Avenue
Blackburn
Lancashire
BB1 3HJ
Auditor
PM+M Solutions for Business LLP
New Century House
Greenbank Technology Park
Challenge Way
Blackburn
Lancashire
BB1 5QB
COOLKIT LIMITED
CONTENTS
Page
Strategic report
1 - 4
Directors' report
5 - 6
Independent auditor's report
7 - 10
Statement of comprehensive income
11
Balance sheet
12
Statement of changes in equity
13
Notes to the financial statements
14 - 26
COOLKIT LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 30 JUNE 2024
- 1 -

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

 

Principal Activities

 

CoolKit was established in 2005 by founder and CEO Rupert Gatty. The principal activities of the Company include:

 

 

Review of the business

Now in its twentieth year of trading, CoolKit has long been established as the largest specialist in temperature-controlled light commercial vehicles (LCVs) in the UK – both as a modifier of basic vehicles and as a retailer of converted ones.

Our customer portfolio includes many major companies in asset finance, vehicle rental and fleet leasing as intermediaries on behalf of businesses that are household names in the wholesale, retail and sample delivery of food, pharmaceutical and healthcare products.

Our strategy for the coming years focuses on the following key areas:

Innovation

Whilst broadly recognised for our lightweight panel van conversions, the Company remains committed to innovation, and accordingly, several opportunities for diversification that have arisen this year have been seized upon.

We have responded to interest from major fleet customers in our award-winning lightweight insulated box bodies by investing heavily in the production line for that product - and has seen output grow exponentially when compared with the previous year.

Further, we have acquired sole distribution rights for the UK in respect of a radical new transport refrigeration system with zero greenhouse gas emissions being the principle USP.

 

COOLKIT LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 2 -

Achievements

CoolKit continues to build a strong reputation for quality, reliability, and innovation, and this has been endorsed by a growing and now unrivalled number of accreditations from LCV manufacturers including Ford, Mercedes-Benz, Volkswagen, Renault, MAN, Toyota and Stellantis.

2024 saw CoolKit win the prestigious What Van? Convertor of the Year Award for an unprecedented third time – and win the Medium Sized Business of the Year Award at the Insider Northwest Awards.

These achievements contribute to define CoolKit’s unique value proposition that will see us continue to attract growth in market share in the UK and overseas.

Relocation

In September 2023, we relocated our conversion and body assembly operation from one of our sites in Burnley to premises in Blackburn as the result of a fire in July 2023 that caused considerable disruption.

Whilst unwelcome, the event of fire was an insured risk, and the Directors have noted since that the company’s insurance policy provided adequate cover in relation to increased costs of working including stocks, plant, machinery, premises and business interruption (BI).

With 75,000 square feet of industrial premises on a site extending to four acres, the new Blackburn site is some 50% larger in size than the Burnley premises they succeed, which has facilitated a commensurate increase in capacity alongside opportunities for new product research and development, R&D and product diversification.

Results

Turnover remained inline with previous year at £21.2m, despite significantly reduced operational capacity due to the aforementioned fire. The second half of the financial year saw a turnover annualised runrate of £29.7m.

Operating profit increased to £959k, up from £201k in the previous year, this is net of insurance receipts and associated fire costs, the underlying business continued to grow in profitability and recover from some of the macro factors which impacted 2023.

Principal risks and uncertainties

 

Recruitment: Shortages of suitably skilled labour continue to threaten the growth prospects for the business. We address this by continuing to improve our employee value proposition with an enhanced range of measures. In addition to that, we collaborate with the local institutions of further and higher education – including arrangements for apprentices and T-level students, the shortage is being addressed.

Economic Conditions: The seemingly omnipresent threat of a significant downturn in the economy threatens to stifle customer demand for new vehicles or lead to delays in the purchasing cycle whilst customers evaluate their own prospects more fully. Work to broaden the customer base to reduce over-reliance on an imbalanced customer mix is constant.

Competition: The growing competitive landscape within the temperature-controlled vehicle market threatens to impact our market share, but by continuing to innovate whilst remaining true to our unique value proposition, we expect to continue to attract adequate business to achieve our growth expectations.

Supply chain: Pricing and currency volatility in conjunction with extended lead times for certain products, most notably vans and chassis-cabs, remains a threat. But by maintaining close relationships with van manufacturers (OEMs) this risk can be mitigated.

Regulation: A number of stage two converters and body builders have rendered themselves insolvent as one of the outcomes of delayed product type approvals. This risk is mitigated by maintaining a strong focus on emerging vehicle types and revisions (extensions) and by maintaining a close dialogue with our industry regulator.

 

COOLKIT LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 3 -

Future Developments

 

Looking ahead, CoolKit Limited remains focused on building on its successes and addressing the challenges of an ever-evolving market. The key priorities for the financial year 2024/25 include:

We are confident that our strategic direction will lead to continued growth and success in the coming years.

Sustainability information statement

CoolKit Limited is committed to sustainability and corporate responsibility.

Environment

We take a proactive approach to minimize the environmental impact of our operations, focusing on energy-efficient production processes and the development of environmentally friendly products.

For the fifteenth consecutive year, CoolKit continues to uphold its ISO14001:2015 standard - aiming to reduce environmental impact, to promote a culture of sustainability and to ensure compliance with increasingly complex waste management legislation.

A substantial new product initiative is the transport refrigeration product known as pbx - for which CoolKit has won the UK distribution rights. By using organic refrigerant this product eliminates the threat of GHG (greenhouse gas) emissions from LCV transport refrigeration systems for the first time. It is therefore the perfect complement to the growing mix of vehicles that generate zero tailpipe emissions and its potential for early adoption by customers concerned about their fleet emissions cannot be underestimated.

Social

CoolKit has become a significant employer in the East Lancashire towns of Blackburn and Burnley, employing 152 persons at the time of writing of this report.

Accordingly, we take very seriously its obligation to provide the highest standards in terms of environment, health and safety, welfare and opportunities for staff - appointing for the first time this year a Head of people.

CoolKit regularly embarks upon initiatives to raise money for local good causes and to engage at executive level with the local institutions of further and higher education.

Governance

During the year, the Company has continued to enhance its Board of Directors with the new appointments of an operations director and a sales director.

This has been done with a view to consolidating expertise in areas where there were previously gaps in skills and experience, to focus on strategic growth planning, and to ensure that the company is operating both legally and ethically – whilst also upholding the highest standards in terms of transparency and accountability.

COOLKIT LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 4 -

Conclusion

The financial year 2023/24 has been a successful one for CoolKit Limited, with strong financial results and significant progress in achieving our strategic objectives.

As we continue to innovate and adapt to market demands, we are well-positioned to maintain our leadership in the temperature-controlled LCV sector.

We are committed to delivering long-term value for all our stakeholders including our customers, staff, society, suppliers and shareholders, and we look forward to another successful year ahead.

On behalf of the board

Mr R P Gatty
Director
26 March 2025
COOLKIT LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 30 JUNE 2024
- 5 -

The directors present their annual report and financial statements for the year ended 30 June 2024.

Principal activities

The principal activities of the company continue to be the manufacture, distribution and maintenance of transport refrigeration systems including light commercial vehicle (LCV) insulation and conversions.

Results and dividends

The results for the year are set out on page 10.

Ordinary dividends were paid amounting to £250,000. The directors do not recommend payment of a final dividend.

Directors

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

Mr R P Gatty
Mr D Miller
Mr J Gleave
(Appointed 1 July 2024)
Miss J A M Czerwonka
(Appointed 1 May 2024 and resigned 13 October 2024)
Statement of directors' responsibilities

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

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

In preparing these financial statements, the directors are required to:

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

Statement of disclosure to auditor

So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the company’s auditor is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the company’s auditor is aware of that information.

Medium-sized companies exemption

This report has been prepared in accordance with the provisions applicable to companies entitled to the medium-sized companies exemption.

COOLKIT LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 6 -
On behalf of the board
Mr R P Gatty
Director
26 March 2025
COOLKIT LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBER OF COOLKIT LIMITED
- 7 -
Opinion

We have audited the financial statements of Coolkit Limited (the 'company') for the year ended 30 June 2024 which comprise the statement of comprehensive income, the balance sheet, the statement of changes in equity and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

Basis for opinion

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

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

 

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

 

Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.

Other information

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

 

We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

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

COOLKIT LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBER OF COOLKIT LIMITED (CONTINUED)
- 8 -
Matters on which we are required to report by exception

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

 

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

Responsibilities of directors

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

Auditor's responsibilities for the audit of the financial statements

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

Extent to which the audit was considered capable of detecting irregularities, including fraud

 

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.

 

We identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and then design and perform audit procedures responsive to those risks, including obtaining audit evidence that is sufficient and appropriate to provide a basis for our opinion.

COOLKIT LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBER OF COOLKIT LIMITED (CONTINUED)
- 9 -

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:

 

 

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 commercial income, posting of unusual journals and complex transactions; and manipulating the Company's performance profit measures and other key performance indicators to meet remuneration targets and externally communicated targets. 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 UK Companies Act, employment law, health and safety regulations, pensions legislation and tax legislation.

Audit response to risks identified

Our procedures to respond to risks identified included the following:

 

Owing to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material misstatements in the financial statements, even though we have properly planned and performed our audit in accordance with auditing standards. For example, the further removed non-compliance with laws and regulations (irregularities) is from the events and transactions reflected in the financial statements, the less likely the inherently limited procedures required by auditing standards would identify it. In addition, as with any audit, there remained a higher risk of non-detection of irregularities, as these may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal controls. We are not responsible for preventing non-compliance and cannot be expected to detect non-compliance with all laws and regulations.

COOLKIT LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBER OF COOLKIT LIMITED (CONTINUED)
- 10 -

A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.

Use of our report

This report is made solely to the company's member 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 member those matters we are required to state to the member in an auditor's 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 member, for our audit work, for this report, or for the opinions we have formed.

Daniel Bowles FCCA (Senior Statutory Auditor)
For and on behalf of PM+M Solutions for Business LLP, Statutory Auditor
Chartered Accountants
New Century House
Greenbank Technology Park
Challenge Way
Blackburn
Lancashire
BB1 5QB
26 March 2025
COOLKIT LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 30 JUNE 2024
- 11 -
2024
2023
Notes
£
£
Turnover
3
21,202,826
21,366,456
Cost of sales
(19,493,420)
(18,498,352)
Gross profit
1,709,406
2,868,104
Administrative expenses
(5,516,504)
(2,697,962)
Other operating income
4,766,475
30,939
Operating profit
5
959,377
201,081
Interest receivable and similar income
8
841
203
Interest payable and similar expenses
9
(31,516)
(27,200)
Profit before taxation
928,702
174,084
Tax on profit
10
(254,620)
(42,777)
Profit for the financial year
674,082
131,307

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

COOLKIT LIMITED
BALANCE SHEET
AS AT
30 JUNE 2024
30 June 2024
- 12 -
2024
2023
Notes
£
£
£
£
Fixed assets
Intangible assets
12
20,536
18,672
Tangible assets
13
974,784
528,250
995,320
546,922
Current assets
Stocks
14
3,181,919
1,857,199
Debtors
15
4,802,541
3,222,772
Cash at bank and in hand
1,272,072
1,162,933
9,256,532
6,242,904
Creditors: amounts falling due within one year
16
(8,023,554)
(5,227,624)
Net current assets
1,232,978
1,015,280
Total assets less current liabilities
2,228,298
1,562,202
Creditors: amounts falling due after more than one year
17
(293,947)
(144,897)
Provisions for liabilities
Deferred tax liability
20
187,279
94,315
(187,279)
(94,315)
Net assets
1,747,072
1,322,990
Capital and reserves
Called up share capital
22
200
200
Profit and loss reserves
1,746,872
1,322,790
Total equity
1,747,072
1,322,990

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

The financial statements were approved by the board of directors and authorised for issue on 26 March 2025 and are signed on its behalf by:
Mr R P Gatty
Director
Company registration number 04211722 (England and Wales)
COOLKIT LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 JUNE 2024
- 13 -
Share capital
Profit and loss reserves
Total
Notes
£
£
£
Balance at 1 July 2022
200
1,566,483
1,566,683
Year ended 30 June 2023:
Profit and total comprehensive income
-
131,307
131,307
Dividends
11
-
(375,000)
(375,000)
Balance at 30 June 2023
200
1,322,790
1,322,990
Year ended 30 June 2024:
Profit and total comprehensive income
-
674,082
674,082
Dividends
11
-
(250,000)
(250,000)
Balance at 30 June 2024
200
1,746,872
1,747,072
COOLKIT LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024
- 14 -
1
Accounting policies
Company information

Coolkit Limited is a private company limited by shares incorporated in England and Wales. The registered office is Thornley Avenue, Blackburn, Lancashire, BB1 3HJ.

1.1
Accounting convention

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

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

The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.

This company is a qualifying entity for the purposes of FRS 102, being a member of a group where the parent of that group prepares publicly available consolidated financial statements, including this company, which are intended to give a true and fair view of the assets, liabilities, financial position and profit or loss of the group. The company has therefore taken advantage of exemptions from the following disclosure requirements:

 

 

The financial statements of the company are consolidated in the financial statements of Fields House Group Limited. These consolidated financial statements are available from its registered office Kenyon House, Thornely Avenue, Blackburn, Lancashire, BB1 3HJ.

1.2
Going concern

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

1.3
Turnover

Turnover is measured at the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes.

Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer. Revenue is recognised when goods sold under a contract are complete and made available for the customer.

1.4
Intangible fixed assets other than goodwill

Intangible assets acquired separately from a business are recognised at cost and are subsequently measured at cost less accumulated amortisation and accumulated impairment losses.

 

Intangible assets acquired on business combinations are recognised separately from goodwill at the acquisition date where it is probable that the expected future economic benefits that are attributable to the asset will flow to the entity and the fair value of the asset can be measured reliably; the intangible asset arises from contractual or other legal rights; and the intangible asset is separable from the entity.

COOLKIT LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
1
Accounting policies
(Continued)
- 15 -

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

Software
10% straight line
1.5
Tangible fixed assets

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

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

Improvements to property
10% straight line
Plant and equipment
10% - 20% straight line
Motor vehicles
25% straight line

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

1.6
Stocks

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

1.7
Financial instruments

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

 

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

 

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

Basic financial assets

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

Other financial assets

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

COOLKIT LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
1
Accounting policies
(Continued)
- 16 -
Impairment of financial assets

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

 

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

 

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

Derecognition of financial assets

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

Classification of financial liabilities

Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.

Basic financial liabilities

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

Other financial liabilities

Derivatives, including interest rate swaps and forward foreign exchange contracts, are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in profit or loss in finance costs or finance income as appropriate, unless hedge accounting is applied and the hedge is a cash flow hedge.

 

Debt instruments that do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured at fair value through profit or loss. Debt instruments may be designated as being measured at fair value through profit or loss to eliminate or reduce an accounting mismatch or if the instruments are measured and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy.

Derecognition of financial liabilities

Financial liabilities are derecognised when the company’s contractual obligations expire or are discharged or cancelled.

1.8
Taxation

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

COOLKIT LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
1
Accounting policies
(Continued)
- 17 -
Current tax

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

Deferred tax

Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.

 

The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset when the company has a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.

1.9
Employee benefits

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

 

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

1.10
Retirement benefits

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

1.11
Leases

Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessees. All other leases are classified as operating leases.

 

Assets held under finance leases are recognised as assets at the lower of the assets fair value at the date of inception and the present value of the minimum lease payments. The related liability is included in the balance sheet as a finance lease obligation. Lease payments are treated as consisting of capital and interest elements. The interest is charged to profit or loss so as to produce a constant periodic rate of interest on the remaining balance of the liability.

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

COOLKIT LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
1
Accounting policies
(Continued)
- 18 -
1.12
Government grants

Government grants are recognised at the fair value of the asset received or receivable when there is reasonable assurance that the grant conditions will be met and the grants will be received.

 

A grant that specifies performance conditions is recognised in income when the performance conditions are met. Where a grant does not specify performance conditions it is recognised in income when the proceeds are received or receivable. A grant received before the recognition criteria are satisfied is recognised as a liability.

2
Judgements and key sources of estimation uncertainty

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

 

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

Key sources of estimation uncertainty
Work in progress valuation

Where applicable, stock include direct labour costs and overheads incurred in bringing the stock to their present location and condition. Labour and overhead absorption rates are calculated in accordance with management's allocation of relevant costs and estimated normal capacity of the production facilities.

3
Turnover and other revenue
2024
2023
£
£
Turnover analysed by geographical market
United Kindom
21,141,089
21,366,456
Europe
59,062
-
USA
2,675
-
21,202,826
21,366,456
2024
2023
£
£
Other revenue
Interest income
841
203
Commissions received
2,457
14,292
Grants received
15,000
15,000

All turnover relates to the company's principal activity and arose within the United Kingdom.

COOLKIT LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 19 -
4
Exceptional items
2024
2023
£
£
Income
Exceptional item - Other operating income
4,741,518
-
Expenditure
Exceptional item - Admin costs (incl in Admin range)
1,976,984
-

During the year the company had a fire in its main manufacturing property which suffered significant damage.

 

The exceptional income in the year reflects insurance proceeds received in relation to the business interruption claim.

 

The exceptional costs incurred in the year relate to costs incurred as a result of the fire which will not be repeated in future years. These costs include £1.1m to replace destroyed vehicles and £600k to replace consumable stock and items which would be fitted into vehicles.

5
Operating profit
2024
2023
Operating profit for the year is stated after charging/(crediting):
£
£
Exchange (gains)/losses
(6,885)
2,718
Research and development costs
1,266
1,964
Government grants
(15,000)
(15,000)
Fees payable to the company's auditor for the audit of the company's financial statements
30,000
21,000
Depreciation of owned tangible fixed assets
55,100
97,839
Depreciation of tangible fixed assets held under finance leases
23,442
6,591
Profit on disposal of tangible fixed assets
(161,830)
-
0
Amortisation of intangible assets
49
-
0
Operating lease charges
376,008
252,059
6
Employees

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

2024
2023
Number
Number
Directors
3
3
Production
88
78
Admin
23
21
Total
114
102
COOLKIT LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
6
Employees
(Continued)
- 20 -

Their aggregate remuneration comprised:

2024
2023
£
£
Wages and salaries
3,945,041
3,280,052
Social security costs
394,085
308,126
Pension costs
136,994
165,869
4,476,120
3,754,047
7
Directors' remuneration
2024
2023
£
£
Remuneration for qualifying services
112,114
52,125
Company pension contributions to defined contribution schemes
57,059
70,925
169,173
123,050
8
Interest receivable and similar income
2024
2023
£
£
Interest income
Interest on bank deposits
841
203
9
Interest payable and similar expenses
2024
2023
£
£
Interest on bank overdrafts and loans
15,201
26,220
Interest on finance leases and hire purchase contracts
16,315
980
31,516
27,200
10
Taxation
2024
2023
£
£
Current tax
UK corporation tax on profits for the current period
156,383
31,216
Adjustments in respect of prior periods
5,273
-
0
Total current tax
161,656
31,216
COOLKIT LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
10
Taxation
2024
2023
£
£
(Continued)
- 21 -
Deferred tax
Origination and reversal of timing differences
98,214
11,561
Adjustment in respect of prior periods
(5,250)
-
0
Total deferred tax
92,964
11,561
Total tax charge
254,620
42,777

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

2024
2023
£
£
Profit before taxation
928,702
174,084
Expected tax charge based on the standard rate of corporation tax in the UK of 25.00% (2023: 20.50%)
232,176
35,687
Tax effect of expenses that are not deductible in determining taxable profit
3,847
2,591
Adjustments in respect of prior years
5,273
-
0
Effect of change in corporation tax rate
-
0
2,082
Group relief
(1,980)
-
0
Permanent capital allowances in excess of depreciation
20,555
2,417
Deferred tax adjustments in respect of prior years
(5,251)
-
0
Taxation charge for the year
254,620
42,777
11
Dividends
2024
2023
£
£
Interim paid
250,000
375,000
COOLKIT LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 22 -
12
Intangible fixed assets
Software
£
Cost
At 1 July 2023
18,672
Additions
1,913
At 30 June 2024
20,585
Amortisation and impairment
At 1 July 2023
-
0
Amortisation charged for the year
49
At 30 June 2024
49
Carrying amount
At 30 June 2024
20,536
At 30 June 2023
18,672

More information on impairment movements in the year is given in note .

13
Tangible fixed assets
Improvements to property
Plant and equipment
Motor vehicles
Total
£
£
£
£
Cost
At 1 July 2023
247,100
761,136
120,361
1,128,597
Additions
252,834
585,382
130,443
968,659
Disposals
(153,116)
(762,499)
(94,000)
(1,009,615)
At 30 June 2024
346,818
584,019
156,804
1,087,641
Depreciation and impairment
At 1 July 2023
25,664
519,158
55,525
600,347
Depreciation charged in the year
22,136
47,666
8,740
78,542
Eliminated in respect of disposals
(16,266)
(511,266)
(38,500)
(566,032)
At 30 June 2024
31,534
55,558
25,765
112,857
Carrying amount
At 30 June 2024
315,284
528,461
131,039
974,784
At 30 June 2023
221,436
241,978
64,836
528,250
COOLKIT LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
13
Tangible fixed assets
(Continued)
- 23 -

The net carrying value of tangible fixed assets includes the following in respect of assets held under finance leases or hire purchase contracts.

2024
2023
£
£
Plant and equipment
272,721
-
0
Motor vehicles
93,291
33,336
Improvements to property
22,874
-
388,886
33,336
14
Stocks
2024
2023
£
£
Raw materials and consumables
1,188,904
1,171,571
Work in progress
1,993,015
685,628
3,181,919
1,857,199
15
Debtors
2024
2023
Amounts falling due within one year:
£
£
Trade debtors
3,324,069
1,747,936
Corporation tax recoverable
20,115
14,737
Amounts owed by group undertakings
1,138,300
1,134,921
Other debtors
62,115
45,615
Prepayments and accrued income
257,942
279,563
4,802,541
3,222,772

Amounts owed from group undertakings are interest free and repayable on demand.

COOLKIT LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 24 -
16
Creditors: amounts falling due within one year
2024
2023
Notes
£
£
Bank loans
18
137,601
187,040
Obligations under finance leases
19
71,581
8,100
Trade creditors
3,700,393
2,867,075
Corporation tax
161,656
31,216
Other taxation and social security
148,059
462,532
Other creditors
128,551
111,352
Accruals and deferred income
3,675,713
1,560,309
8,023,554
5,227,624
17
Creditors: amounts falling due after more than one year
2024
2023
Notes
£
£
Bank loans and overdrafts
18
12,689
144,897
Obligations under finance leases
19
281,258
-
0
293,947
144,897
18
Loans and overdrafts
2024
2023
£
£
Bank loans
150,290
331,937
Payable within one year
137,601
187,040
Payable after one year
12,689
144,897

Long term loans are secured by way of fixed charges over the group's freehold property and a debenture incorporating fixed and floating charges over the assets of the company.

19
Finance lease obligations
2024
2023
Future minimum lease payments due under finance leases:
£
£
Within one year
71,581
8,100
In two to five years
77,798
-
0
In over five years
203,460
-
0
352,839
8,100

Hire purchase contracts are secured on the assets to which they relate.

COOLKIT LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 25 -
20
Deferred taxation

The following are the major deferred tax liabilities and assets recognised by the company and movements thereon:

Liabilities
Liabilities
2024
2023
Balances:
£
£
Accelerated capital allowances
187,279
94,315
2024
Movements in the year:
£
Liability at 1 July 2023
94,315
Charge to profit or loss
92,964
Liability at 30 June 2024
187,279
21
Retirement benefit schemes
2024
2023
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
136,994
165,869

The company operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the company in an independently administered fund.

The balance outstanding at the year end amounted to £22,927 (2023 - £17,567).

22
Share capital
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary of £1 each
200
200
200
200
23
Financial commitments, guarantees and contingent liabilities

There is an unlimited multilateral guarantee between Coolkit Limited, Coolkit IP Limited, Farrington PLace Properties Limited and Fields House Group Limited.

 

There is a fixed and floating charge dated 25 February 2020 with Lancashire County Developments (Property) Limited over all the property of the company and undertaking of the company.,

 

There is a fixed and floating charge dated 15 January 2019 with North West Loans Npif Gp Limited over all the property and undertaking of the company.

 

There is a fixed and floating charge dated 27 January 2016 with Lloyds Bank PLC over all the property and undertaking of the company.

COOLKIT LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 26 -
24
Operating lease commitments
Lessee

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

2024
2023
£
£
Within one year
382,622
257,689
Between two and five years
1,146,083
622,388
1,528,705
880,077
25
Contingent Assets

On 6 July 2023 one of the companies factory's in Burnley suffered significant damage in a fire. During the year the company received £4,741,518 as part of the claim. At the balance sheet date the claim for business interruption had not been settled in full and negotiations were still ongoing with the insurance company for the remaining balance. At the balance sheet date the final payment is expected to be £2,100,000.

26
Related party transactions

Coolkit Limited has taken advantage of the exemption in FRS 102 (section 33) 'related party disclosure' not to disclose transactions with other members of the group,

27
Directors' transactions

At the year end there were amounts owed to a director of £73,551 (2023 - £73,476).

28
Ultimate controlling party

The ultimate parent company is Fields House Group Limited, which heads the group of which the company is a member and for which group and financial statements have been prepared. The consolidated financial statements of this company may be obtained from Kenyon House, Thornely Avenue, Blackburn, Lancashire, BB1 3HJ.

 

 

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