Registered number:
For the Year Ended
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KVS Group (UK) Limited
Company Information
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KVS Group (UK) Limited
Contents
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KVS Group (UK) Limited
Group Strategic Report
For the Year Ended 30 June 2024
The directors present their group Strategic Report for the year ended 30 June 2024. The directors, in preparing this Strategic Report, have complied with s414C of the Companies Act 2006.
KVS Group (UK) Limited (the "Company") is the parent of a group (the "Group") that includes Warmflow Engineering Co. Limited, KVS Properties Limited and Warmflow Limited.
The Company is principally engaged in the holding of a trading group, the letting of investment properties and other group trading. The principal activity of the Group is the manufacture of domestic heating appliances. The results for the year and the financial position of the Group at the year end were considered satisfactory by the directors who expect to improve the position in the foreseeable future.
At the date of this report the directors are confident that the Group can continue to demonstrate its’ resilience and navigate these challenging times satisfactorily. At the balance sheet date, the Group had net assets of £35,707,342 (2023: £34,596,117) and continued to generate a profit. The directors have prepared budgets and cashflow forecasts to demonstrate this.
As a result, the directors continue to prepare the financial statements on a going concern basis as they are satisfied that the Group has the ability to meet its liabilities as and when they fall due for a period of not less than 12 months from the date of this report.
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KVS Group (UK) Limited
Group Strategic Report (continued)
For the Year Ended 30 June 2024
The key business risk and uncertainties affecting the Group are considered to relate to competition from both national and independent manufacturers, employee retention and product liability. Due to the Group's reputation, standing and position in the market place, the directors are of the opinion that the risks and uncertainties facing the Group can be adequately managed.
Financial risk management The Group's operations expose it to a variety of financial risks that include the effects of changes in foreign exchange risk, credit risk, liquidity risk and interest rate risk. The Group has in place a risk management programme that seeks to limit the adverse effects on the financial performance of the Group by monitoring levels of debt finance and the related finance costs. Given the size of the Group, 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 Group's finance department. Price risk The Group is exposed to commodity price risk as a result of its operations. However, given the size of the Group'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 group's operations change in size or nature. The Group has no exposure to equity securities price risk as it holds no listed or other equity investments. Foreign exchange risk While the greater part of the Group's revenues and expenses are denominated in sterling, the Group is exposed to some foreign exchange risk in the normal course of business, principally on sales in euros. The Group keeps under review the option to use financial instruments to hedge foreign exchange exposure. Credit risk The Group 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.
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KVS Group (UK) Limited
Group Strategic Report (continued)
For the Year Ended 30 June 2024
The directors consider turnover, gross profit percentage, net profit percentage, stock levels and cash position to be the key measures of financial performance. Turnover increased during the year to £21,600,656 (2023: £20,574,859), gross profit percentage decreased to 40.0% from 42.1% in the prior year, stock levels as at 30 June 2024 amounted to £5,441,465 (2023: £6,886,583) and cash at year end remained positive at £6,908,047 (2023: £2,832,123). The Group monitors these indicators on an annual and monthly basis.
In addition, the directors monitor the return on key property assets held by the Company in respect of rental returns and the return on other key assets held by the Group.
Environment
The Group recognises its’ corporate responsibility to carry out its’ operations whilst minimalising 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 group and company is committed to achieving the highest practicable standards in health and safety management and strives to make all sites and offices safe environments for employees and customers alike. Human resources The group’s most important resource is its people; their knowledge and experience is crucial to meeting customer requirements. Retention of key staff is critical, and the company has invested increasingly in employment training and development and has introduced appropriate incentive and career progression arrangements. Employees Applications for employment by disabled persons are always fully considered, bearing in mind the respective aptitudes and abilities of the applicant concerned. In the event of members of staff becoming disabled every effort is made to ensure that their employment with the group continues and the appropriate training is arranged. It is the policy of the group that the training, career development and promotion of a disabled person should, as far as possible, be identical to that of a person who does not suffer from a disability. Consultation with employees or their representative has continued at all levels, with the aim of ensuring their views are taken into account when decisions are made that are likely to affect their interests and that all employees are aware of the financial and economic performance of the group.
This report was approved by the board on 25 October 2024 and signed on its behalf.
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KVS Group (UK) Limited
Directors' Report
For the Year Ended 30 June 2024
The directors present their report and the financial statements for the year ended 30 June 2024.
The directors are responsible for preparing the Group Strategic Report, the Directors' Report and the consolidated financial statements in accordance with applicable law and regulations.
In preparing these financial statements, the directors are required to:
∙select suitable accounting policies for the Group's financial statements and then apply them consistently;
∙make judgments 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 Group 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 the Group and to 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 the Group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
The profit for the year, after taxation and minority interests, amounted to £1,594,943 (2023: £3,952,430).
During the year dividends of £225,000 were paid (2023: £365,000).
The directors who served during the year were:
The directors anticipate that any future developments would relate to the principal business activities.
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KVS Group (UK) Limited
Directors' Report (continued)
For the Year Ended 30 June 2024
The Group is strongly committed to research and development activities in order to secure and enhance its position in the market.
Notwithstanding the ongoing challenges following the completion of the Brexit transition and the implementation of the Northern Ireland Protocol there have been no significant events affecting the Group since the year end.
The auditors, Sumer Auditco NI Limited, will be proposed for reappointment in accordance with section 485 of the Companies Act 2006.
This report was approved by the board on
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KVS Group (UK) Limited
Independent Auditors' Report to the Members of KVS Group (UK) Limited
We have audited the financial statements of KVS Group (UK) Limited (the 'parent Company') and its subsidiaries (the 'Group') for the year ended 30 June 2024, which comprise the Consolidated Statement of Comprehensive Income, the Consolidated Balance Sheet, the Company Balance Sheet, the Consolidated Statement of Cash Flows, the Consolidated Statement of Changes in Equity, the Company Statement of Changes in Equity and the related notes, 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).
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 Group in accordance with the ethical requirements that are relevant to our audit of the financial statements in the United Kingdom, including the Financial Reporting Council'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.
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 Group's or the parent 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.
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KVS Group (UK) Limited
Independent Auditors' Report to the Members of KVS Group (UK) Limited (continued)
The other information comprises the information included in the Annual Report other than the financial statements and our Auditors' 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.
In our opinion, based on the work undertaken in the course of the audit:
∙the information given in the Group 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 Group Strategic Report and the Directors' Report have been prepared in accordance with applicable legal requirements.
In the light of the knowledge and understanding of the Group and the parent Company and its environment obtained in the course of the audit, we have not identified material misstatements in the Group Strategic Report or the Directors' Report.
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KVS Group (UK) Limited
Independent Auditors' Report to the Members of KVS Group (UK) Limited (continued)
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 Group financial statements.
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 gained an understanding of the legal and regulatory framework applicable to the Company and the industry in which they operate, and considered the risk of acts by the Company that were contrary to applicable laws and regulations, including fraud. We considered the opportunities and incentives that may exist within the Company for fraud and identified the greatest potential for fraud in the following areas: management override of controls and fraud risk relating to revenue. We designed audit procedures to respond to these risks, recognising that the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentations, or through collusion. Our audit procedures included: enquiries of management about their own identification and assessment of risks of irregularities, testing the design and implementation of controls relating to the risks, sample testing of journals posted during the year, revenue cut off testing and agreeing a sample of revenue items to dispatch documentation and rental agreements. Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.
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.
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KVS Group (UK) Limited
Independent Auditors' Report to the Members of KVS Group (UK) Limited (continued)
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.
for and on behalf of
Statutory Auditors
Glendinning House
6 Murray Street
Co. Antrim
BT1 6DN
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KVS Group (UK) Limited
Consolidated Statement of Comprehensive Income
For the Year Ended 30 June 2024
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KVS Group (UK) Limited
Registered number: NI046773
Consolidated Balance Sheet
As at
The financial statements were approved and authorised for issue by the board and were signed on its behalf on 25 October 2024.
The notes on pages 17 to 35 form part of these financial statements.
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KVS Group (UK) Limited
Registered number: NI046773
Company Balance Sheet
As at
The financial statements were approved and authorised for issue by the board and were signed on its behalf on
The notes on pages 17 to 35 form part of these financial statements.
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