Caseware UK (AP4) 2024.0.164 2024.0.164 2023-12-312023-12-3194782023-01-01falseNo description of principal activityfalsefalsefalse 03081490 2023-01-01 2023-12-31 03081490 2022-01-01 2022-12-31 03081490 2023-12-31 03081490 2022-12-31 03081490 2022-01-01 03081490 1 2023-01-01 2023-12-31 03081490 c:Exceptional 2023-01-01 2023-12-31 03081490 c:Exceptional 2022-01-01 2022-12-31 03081490 d:CompanySecretary1 2023-01-01 2023-12-31 03081490 d:Director1 2023-01-01 2023-12-31 03081490 d:Director2 2023-01-01 2023-12-31 03081490 d:RegisteredOffice 2023-01-01 2023-12-31 03081490 c:Buildings c:LongLeaseholdAssets 2023-01-01 2023-12-31 03081490 c:Buildings c:LongLeaseholdAssets 2023-12-31 03081490 c:Buildings c:LongLeaseholdAssets 2022-12-31 03081490 c:PlantMachinery 2023-01-01 2023-12-31 03081490 c:PlantMachinery 2023-12-31 03081490 c:PlantMachinery 2022-12-31 03081490 c:PlantMachinery c:OwnedOrFreeholdAssets 2023-01-01 2023-12-31 03081490 c:OwnedOrFreeholdAssets 2023-01-01 2023-12-31 03081490 c:PatentsTrademarksLicencesConcessionsSimilar 2023-01-01 2023-12-31 03081490 c:DevelopmentCostsCapitalisedDevelopmentExpenditure 2023-12-31 03081490 c:DevelopmentCostsCapitalisedDevelopmentExpenditure 2022-12-31 03081490 c:Goodwill 2023-01-01 2023-12-31 03081490 c:ComputerSoftware 2023-12-31 03081490 c:ComputerSoftware 2022-12-31 03081490 c:CurrentFinancialInstruments 2023-12-31 03081490 c:CurrentFinancialInstruments 2022-12-31 03081490 c:Non-currentFinancialInstruments 2023-12-31 03081490 c:Non-currentFinancialInstruments 2022-12-31 03081490 c:CurrentFinancialInstruments c:WithinOneYear 2023-12-31 03081490 c:CurrentFinancialInstruments c:WithinOneYear 2022-12-31 03081490 c:Non-currentFinancialInstruments c:AfterOneYear 2023-12-31 03081490 c:Non-currentFinancialInstruments c:AfterOneYear 2022-12-31 03081490 c:ReportableOperatingSegment1 2023-01-01 2023-12-31 03081490 c:ReportableOperatingSegment1 2022-01-01 2022-12-31 03081490 e:UnitedKingdom 2023-01-01 2023-12-31 03081490 e:UnitedKingdom 2022-01-01 2022-12-31 03081490 e:RestEuropeOutsideUK 2023-01-01 2023-12-31 03081490 e:RestEuropeOutsideUK 2022-01-01 2022-12-31 03081490 c:ShareCapital 2023-01-01 2023-12-31 03081490 c:ShareCapital 2023-12-31 03081490 c:ShareCapital 2022-01-01 2022-12-31 03081490 c:ShareCapital 2022-12-31 03081490 c:ShareCapital 2022-01-01 03081490 c:SharePremium 2023-01-01 2023-12-31 03081490 c:SharePremium 2023-12-31 03081490 c:SharePremium 2022-01-01 2022-12-31 03081490 c:SharePremium 2022-12-31 03081490 c:SharePremium 2022-01-01 03081490 c:RetainedEarningsAccumulatedLosses 2023-01-01 2023-12-31 03081490 c:RetainedEarningsAccumulatedLosses 2023-12-31 03081490 c:RetainedEarningsAccumulatedLosses 2022-01-01 2022-12-31 03081490 c:RetainedEarningsAccumulatedLosses 2022-12-31 03081490 c:RetainedEarningsAccumulatedLosses 2022-01-01 03081490 c:FurtherSpecificTypeProvisionContingentLiability1ComponentTotalProvisionsContingentLiabilities 2023-01-01 2023-12-31 03081490 c:FurtherSpecificTypeProvisionContingentLiability1ComponentTotalProvisionsContingentLiabilities 2023-12-31 03081490 c:FurtherSpecificTypeProvisionContingentLiability1ComponentTotalProvisionsContingentLiabilities 2022-12-31 03081490 c:FurtherSpecificTypeProvisionContingentLiability2ComponentTotalProvisionsContingentLiabilities 2023-01-01 2023-12-31 03081490 c:FurtherSpecificTypeProvisionContingentLiability2ComponentTotalProvisionsContingentLiabilities 2023-12-31 03081490 c:FurtherSpecificTypeProvisionContingentLiability2ComponentTotalProvisionsContingentLiabilities 2022-12-31 03081490 d:OrdinaryShareClass1 2023-01-01 2023-12-31 03081490 d:OrdinaryShareClass1 2023-12-31 03081490 d:OrdinaryShareClass1 2022-12-31 03081490 d:FRS102 2023-01-01 2023-12-31 03081490 d:Audited 2023-01-01 2023-12-31 03081490 d:FullAccounts 2023-01-01 2023-12-31 03081490 d:PrivateLimitedCompanyLtd 2023-01-01 2023-12-31 03081490 c:WithinOneYear 2023-12-31 03081490 c:WithinOneYear 2022-12-31 03081490 c:BetweenOneFiveYears 2023-12-31 03081490 c:BetweenOneFiveYears 2022-12-31 03081490 4 2023-01-01 2023-12-31 03081490 c:DevelopmentCostsCapitalisedDevelopmentExpenditure c:OwnedIntangibleAssets 2023-01-01 2023-12-31 03081490 c:ComputerSoftware c:OwnedIntangibleAssets 2023-01-01 2023-12-31 03081490 f:PoundSterling 2023-01-01 2023-12-31 iso4217:GBP xbrli:shares xbrli:pure


Registered number: 03081490












KNAUF CEILING SOLUTIONS LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

 

KNAUF CEILING SOLUTIONS LIMITED

CONTENTS



Page
Company information
 
1
Strategic report
 
2 - 3
Directors' report
 
4
Directors' responsibilities statement
 
5
Independent auditors' report
 
6 - 9
Profit and loss account
 
10
Balance sheet
 
11
Statement of changes in equity
 
12
Notes to the financial statements
 
13 - 30

 

KNAUF CEILING SOLUTIONS LIMITED
 
COMPANY INFORMATION


Directors
M A Laikin 
W M Willis-Jones 




Company secretary
M J Bignell



Registered number
03081490



Registered office
Harman House
Ground Floor

1 George Street

Uxbridge

Middlesex

UB8 1QQ




Independent auditors
Blick Rothenberg Audit LLP
Chartered Accountants & Statutory Auditor

16 Great Queen Street

Covent Garden

London

WC2B 5AH




Page 1

 

KNAUF CEILING SOLUTIONS LIMITED
 
STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023

Introduction
 
The directors present their strategic report for the year ended 31 December 2023. The principal activity of the company during the year was the manufacture and sale of metal ceiling tiles.

Business review
 
During the year ended 31 December 2023 a review was conducted to assess the total Knauf Ceiling Solutions metal ceiling tiles manufacturing capacity relative to the demand of metal ceiling tiles and the closure of the Stafford manufacturing facility was considered. Following a consultation with all relevant parties it was concluded in the second half of 2023 that manufacturing at the Stafford plant would cease in October 2023. Sales by Knauf Ceiling Solutions Limited of metal ceiling tiles and other modular ceiling products will continue, but with products previously manufactured at the Stafford manufacturing site being sourced from other Knauf group facilities. Whilst the closure of the plant is disappointing and sadly had a personal impact on the former staff, this action was necessary to return the company to profitability.
The results for the year are set out on page 8 and include several one-off provisions booked to recognise  liabilities (onerous lease provision, redundancy provision and other provisions) arising from the decision  to close the plant.  In addition, as a result of the decision to close the plant it was necessary to write down the value of a number of assets to zero or to their realisable value and this has been reflected in the financial statements.
The closure activities have continued into 2024, and trading conditions continue to be challenging but there is an expectation that performance of the business will improve in the next few years as the leases over the manufacturing sites terminate in 2025 and the focus is shifted away from manufacturing.
The company has made a loss for the financial year after taxation of £7.9 million (2022: £5.2 million).
The balance sheet as at 31 December 2023 shows a deficit of £14.0 million (2022: £6.1 million).

Page 2

 

KNAUF CEILING SOLUTIONS LIMITED

STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023

Principal risks and uncertainties
 
From the perspective of the company, the principal risks and uncertainties are integrated with the principal risk of Gebr. Knauf KG, the company’s ultimate parent company, and are not managed separately. Accordingly, the principal risks and uncertainties of Gebr. Knauf KG, which include those of the company, are discussed in the directors’ report of Gebr. Knauf KG’s financial statements. The overall economic environment and competition within the UK and European markets are the key risks to the company. The company mitigates these risks by remaining agile in order to respond to and adapt to changes in the economic environment, providing value added services to its customers, having fast response times not only in supplying products but in handling all customer queries, and by maintaining strong relationships with customers.  Given the size of the Company, the directors have not delegated the responsibility of monitoring financial risk and the policies set by the Board of directors are implemented to determine where it would be appropriate to use financial instruments to manage financial risks. These include:
Commodity price risk
The directors closely monitor the relevant markets and take appropriate action to manage the risk, including buying forward where considered appropriate. The Company has no exposure to equity securities price risk as it holds no listed or other equity investments.
Credit risk
The Company has implemented policies that require appropriate credit checks on potential customers before sales are made. Credit insurance is held for all customers.
Liquidity risk
The company has an overdraft facility with the Knauf Group this provides funds when the company experiences a shortfall in funding.
Risk of inflation
Inflationary pressures have already led to increases in prices of our products. Raw material and energy prices have continued to increase further and the Board has already taken steps to mitigate the impact on the business and its customers by controlling costs.

Financial key performance indicators
 
The company’s operations are managed on a group basis. For this reason, the company’s directors believe that analysis using key performance indicators for the company is not necessary or appropriate for an understanding of the development, performance or position of the business of the company. 
The key performance indicator used to monitor the performance is turnover, which increased by 17%.

Other key performance indicators
 
The directors are mindful of environmental issues and have sought to minimise the impact of the company's activities on the environment.


This report was approved by the board and signed on its behalf.



M A Laikin
Director

Date: 8 April 2025
Page 3

 

KNAUF CEILING SOLUTIONS LIMITED

DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023

The directors present their report and the financial statements for the year ended 31 December 2023.

Results and dividends

The loss for the year, after taxation, amounted to £7,898 thousand (2022 - loss £5,223 thousand).

Directors

The directors who served during the year were:

M A Laikin 
W M Willis-Jones 

Matters covered in the strategic Report

As permitted by s414c(11) of the Companies Act 2006, the directors have elected to disclose information, required to be in the directors' report by Schedule 7 of the 'Large and Medium-sized Companies and Groups (Accounts and Reports) Regulations 2008', in the strategic report.

Disclosure of information to auditors

Each of the persons who are directors at the time when this directors' report is approved has confirmed that:
 
so far as the director is aware, there is no relevant audit information of which the company's auditors are unaware, and

the director has taken all the steps that ought to have been taken as a director in order to be aware of any relevant audit information and to establish that the company's auditors are aware of that information.

Post balance sheet events

On 9 October 2024 the company issued 1 additional ordinary share of £1 at a premium of £10,899,999.

Auditors

The auditorsBlick Rothenberg Audit LLPwill be proposed for reappointment in accordance with section 485 of the Companies Act 2006.

This report was approved by the board and signed on its behalf.
 





M A Laikin
Director

Date: 8 April 2025
Page 4

 

KNAUF CEILING SOLUTIONS LIMITED
 
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 31 DECEMBER 2023

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 applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), 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 for the company's financial statements and then apply them consistently;

make judgments and accounting estimates that are reasonable and prudent;

state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements;

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 to enable them to ensure that the financial statements comply with the Companies Act 2006They 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.

Page 5

 

KNAUF CEILING SOLUTIONS LIMITED

INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF KNAUF CEILING SOLUTIONS LIMITED
 FOR THE YEAR ENDED 31 DECEMBER 2023

Opinion


We have audited the financial statements of Knauf Ceiling Solutions Limited (the 'company') for the year ended 31 December 2023, which comprise the profit and loss account, the balance sheet, the statement of changes in equity and the related notes, including a summary of significant accounting policiesThe financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).


In our opinion the financial statements:


give a true and fair view of the state of the company's affairs as at 31 December 2023 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 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.


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.


Page 6

 

KNAUF CEILING SOLUTIONS LIMITED

INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF KNAUF CEILING SOLUTIONS LIMITED (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023

Other information


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 reportOur 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.


Opinion 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.


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:


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 5, 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.


Page 7

 

KNAUF CEILING SOLUTIONS LIMITED

INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF KNAUF CEILING SOLUTIONS LIMITED (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023

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.


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:
 
the engagement partner ensured that the engagement team collectively had the appropriate competence, capabilities and skills to identify or recognise non-compliance with applicable laws and regulations;
we identified the laws and regulations applicable to the company through discussions with directors and other management, and from our commercial knowledge and experience of the sector;
we focused on specific laws and regulations which we considered may have a direct material effect on the financial statements or the operations of the company, including the Companies Act 2006, taxation
legislation and data protection, anti-bribery, employment, environmental and health and safety legislation;
we assessed the extent of compliance with the laws and regulations identified above through making enquiries of management and inspecting legal correspondence; and
identified laws and regulations were communicated within the audit team regularly and the team remained alert to instances of non-compliance throughout the audit
 
We assessed the susceptibility of the company’s financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by:
making enquiries of management as to where they considered there was susceptibility to fraud, their knowledge of actual, suspected and alleged fraud; and
considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations.

To address the risk of fraud through management bias and override of controls, we:
performed analytical procedures to identify any unusual or unexpected relationships;
tested a sample of journal entries to identify unusual transactions;
assessed whether judgements and assumptions made in determining the accounting estimates set out in note 3 were indicative of potential bias; and
investigated the rationale behind significant or unusual transactions.

In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures
which included, but were not limited to:
agreeing financial statement disclosures to underlying supporting documentation;
reading the minutes of meetings of those charged with governance;
enquiring of management as to actual and potential litigation and claims; and
reviewing correspondence with HM Revenue and Customs, relevant regulators, and the company’s legal advisors.

There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards require that we identify non-compliance with laws and regulations through enquiry of the directors and other management and the inspection of regulatory and legal correspondence, if any, as well as any additional procedures deemed necessary. 

Page 8

 

KNAUF CEILING SOLUTIONS LIMITED

INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF KNAUF CEILING SOLUTIONS LIMITED (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023

Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion.


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.


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 2006Our 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.





Nils Schmidt-Soltau FCA (senior statutory auditor)
  
for and on behalf of
Blick Rothenberg Audit LLP
 
Chartered Accountants
Statutory Auditor
  
16 Great Queen Street
Covent Garden
London
WC2B 5AH

8 April 2025
Page 9

 

KNAUF CEILING SOLUTIONS LIMITED
 
PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 31 DECEMBER 2023

2023
2022
Note
£000
£000

  

Turnover
 4 
18,017
15,404

Cost of sales
  
(14,372)
(12,686)

Exceptional cost of sales
 12 
(655)
-

Gross profit
  
2,990
2,718

Administrative expenses
  
(11,285)
(10,037)

Exceptional administrative expenses
 12 
(1,151)
-

Other operating income
 5 
2,341
2,445

Operating loss
 6 
(7,105)
(4,874)

Interest receivable and similar income
 9 
-
(18)

Interest payable and similar expenses
 10 
(793)
(331)

Loss before tax
  
(7,898)
(5,223)

Tax on loss
 11 
-
-

Loss for the financial year
  
(7,898)
(5,223)

There are no items of other comprehensive income for 2023 or 2022 other than the loss for the yearAs a result, no separate Statement of Comprehensive Income has been presented.

The notes on pages 13 to 30 form part of these financial statements.

Page 10


 
REGISTERED NUMBER:03081490
KNAUF CEILING SOLUTIONS LIMITED

BALANCE SHEET
AS AT 31 DECEMBER 2023

2023
2022
Note
£000
£000

Fixed assets
  

Intangible assets
 13 
444
753

Tangible assets
 14 
788
2,171

  
1,232
2,924

Current assets
  

Stocks
 15 
1,171
1,609

Debtors: amounts falling due within one year
 16 
3,204
4,746

Cash at bank and in hand
  
5
5

  
4,380
6,360

Creditors: amounts falling due within one year
 17 
(18,609)
(12,012)

Net current liabilities
  
 
 
(14,229)
 
 
(5,652)

Total assets less current liabilities
  
(12,997)
(2,728)

Creditors: amounts falling due after more than one year
 18 
-
(2,800)

Provisions for liabilities
  

Other provisions
 19 
(1,048)
(619)

  
 
 
(1,048)
 
 
(619)

Net liabilities
  
(14,045)
(6,147)


Capital and reserves
  

Called up share capital 
 20 
5,991
5,991

Share premium account
 21 
6,713
6,713

Profit and loss account
 21 
(26,749)
(18,851)

  
(14,045)
(6,147)


The financial statements were approved and authorised for issue by the board and were signed on its behalf by: 




M A Laikin
Director

Date: 8 April 2025

The notes on pages 13 to 30 form part of these financial statements.
Page 11

 

KNAUF CEILING SOLUTIONS LIMITED

STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2023


Called up share capital
Share premium account
Profit and loss account
Total equity

£000
£000
£000
£000


At 1 January 2022
5,991
6,713
(13,628)
(924)


Comprehensive income for the year

Loss for the year
-
-
(5,223)
(5,223)
Total comprehensive income for the year
-
-
(5,223)
(5,223)



At 1 January 2023
5,991
6,713
(18,851)
(6,147)


Comprehensive income for the year

Loss for the year
-
-
(7,898)
(7,898)
Total comprehensive income for the year
-
-
(7,898)
(7,898)


At 31 December 2023
5,991
6,713
(26,749)
(14,045)


The notes on pages 13 to 30 form part of these financial statements.
Page 12

 

KNAUF CEILING SOLUTIONS LIMITED

NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

1.


General information

Knauf Ceiling Solutions Limited manufactures and sells metal ceiling tiles.
The company is a private company limited by shares and incorporated in England and Wales. The address of its registered office and principal place of business is Harman House 2nd Floor, 1 George Street, Uxbridge, Middlesex, UB8 1QQ.
The financial statements are presented in Sterling (£), which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £'000.

2.Accounting policies

 
2.1

Basis of preparation of financial statements

The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and the Companies Act 2006.

The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires management to exercise judgment in applying the company's accounting policies (see note 3).

The company’s ultimate parent undertaking, Gebr. Knauf KG. includes the company in its consolidated financial statements. In these financial statements, the company is considered to be a qualifying entity (for the purposes of this FRS) and has applied the exemptions available under FRS 102 in respect of the following disclosures:
• Reconciliation of the number of shares outstanding from the beginning to end of the period;
• Cash Flow Statement and related notes; and
• Key Management Personnel compensation.
As the consolidated financial statements of Gebr. Knauf KG. include the disclosures equivalent to those required by FRS 102, the company has also taken the exemption available in respect of the following disclosures:
• Certain disclosures required by FRS 102.26 Share Based Payments; and,
• Certain disclosures required by FRS 102.11 Basic Financial Instruments and FRS 102.12 Other Financial Instrument Issues in respect of financial instruments not falling within the fair value accounting rules of paragraph 36(4) of schedule 1.

The following principal accounting policies have been applied:

 
2.2

Going concern

The financial statements have been prepared on a going concern basis notwithstanding the fact that the company has a deficiency on shareholder’s funds at the end of the year. The directors consider this basis to be appropriate as they have received assurances of the continued support of the company’s parent undertaking.
After making enquiries, including from the diretors of the parent undertaking and review of the financial information of the parent undertaking, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence and meet its liabilities as they fall due for the foreseeable future, being a period of at least twelve months from the date these financial statements were approved.
Accordingly, they continue to adopt the going concern basis in preparing the financial statements.

Page 13

 

KNAUF CEILING SOLUTIONS LIMITED

NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

2.Accounting policies (continued)

 
2.3

Revenue

Revenue is recognised to the extent that it is probable that the economic benefits will flow to the company and the revenue can be reliably measured. Revenue is measured as the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. The following criteria must also be met before revenue is recognised:

Sale of goods

Revenue from the sale of goods is recognised when all of the following conditions are satisfied:
the company has transferred the significant risks and rewards of ownership to the buyer;
the company retains neither continuing managerial involvement to the degree usually associated with ownership nor effective control over the goods sold;
the amount of revenue can be measured reliably;
it is probable that the company will receive the consideration due under the transaction; and
the costs incurred or to be incurred in respect of the transaction can be measured reliably.

 
2.4

Foreign currency translation

Functional and presentation currency

The company's functional and presentational currency is GBP.

Transactions and balances

Foreign currency transactions are translated into the functional currency using the spot exchange rates at the dates of the transactions.

At each period end foreign currency monetary items are translated using the closing rate. Non-monetary items measured at historical cost are translated using the exchange rate at the date of the transaction and non-monetary items measured at fair value are measured using the exchange rate when fair value was determined.

Foreign exchange gains and losses resulting from the settlement of transactions and from the translation at period-end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognised in profit or loss except when deferred in other comprehensive income as qualifying cash flow hedges.

Foreign exchange gains and losses that relate to borrowings and cash and cash equivalents are presented in the profit and loss account within 'finance income or costs'. All other foreign exchange gains and losses are presented in profit or loss within 'other operating income'.

Page 14

 

KNAUF CEILING SOLUTIONS LIMITED

NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

2.Accounting policies (continued)

 
2.5

Operating leases: the company as lessee

Rentals paid under operating leases are charged to profit or loss on a straight-line basis over the lease term.

Benefits received and receivable as an incentive to sign an operating lease are recognised on a straight-line basis over the lease term, unless another systematic basis is representative of the time pattern of the lessee's benefit from the use of the leased asset.

Temporary rent concessions occurring as a direct consequence of the COVID-19 pandemic have been recognised on a systematic basis over the periods that the change in lease payments is intended to compensate. This is conditional on:

the change in lease payments resulting in revised consideration for the lease that is less than the consideration for the lease immediately preceding the change;
any reduction in lease payments affecting only payments originally due on or before 30 June 2023;
there being no significant change to other terms and conditions of the lease.

 
2.6

Finance costs

Finance costs are charged to profit or loss 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. 

 
2.7

Pensions

Defined contribution pension plan

The company operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the company pays fixed contributions into a separate entity. Once the contributions have been paid the company has no further payment obligations.

The contributions are recognised as an expense in profit or loss when they fall due. Amounts not paid are shown in accruals as a liability in the balance sheet. The assets of the plan are held separately from the company in independently administered funds.

Page 15

 

KNAUF CEILING SOLUTIONS LIMITED

NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

2.Accounting policies (continued)

 
2.8

Taxation

The tax expense for the year comprises current and deferred tax. Tax is recognised in the profit and loss account, except that a charge attributable to an item of income and expense recognised as other comprehensive income or to an item recognised directly in equity is also recognised in other comprehensive income or directly in equity respectively.
Current tax is the amount of income tax payable in respect of taxable profit for the year or prior years.
The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the balance sheet date in the countries where the company operates and generates income.

Deferred tax arises from timing differences that are differences between taxable profits and total comprehensive income as stated in the financial statements. These timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in the financial statements.
Deferred tax balances are recognised in respect of all timing differences that have originated but not reversed by the balance sheet date, except that:
 
The recognition of deferred tax assets is limited to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits; and
Any deferred tax balances are reversed if and when all conditions for retaining associated tax allowances have been met.

Deferred tax balances are not recognised in respect of permanent differences except in respect of business combinations, when deferred tax is recognised on the differences between the fair values of assets acquired and the future tax deductions available for them and the differences between the fair values of liabilities acquired and the amount that will be assessed for tax. Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the balance sheet date.

 
2.9

Exceptional items

Exceptional items are transactions that fall within the ordinary activities of the company but are presented separately due to their size or incidence.

 
2.10

Intangible assets

Intangible assets are initially recognised at cost. After recognition, under the cost model, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses.

At each reporting date the company assesses whether there is any indication of impairment. If such indication exists, the recoverable amount of the asset is determined which is the higher of its fair value less costs to sell and its value in use. An impairment loss is recognised where the carrying amount exceeds the recoverable amount.

All intangible assets are considered to have a finite useful life. If a reliable estimate of the useful life cannot be made, the useful life shall not exceed ten years.

 The estimated useful lives range as follows:

Computer software
-
3
years
Customer list
-
5
years

Page 16

 

KNAUF CEILING SOLUTIONS LIMITED

NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

2.Accounting policies (continued)

 
2.11

Tangible fixed assets

Tangible fixed assets 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.

Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, using the straight-line method.

Depreciation is provided on the following basis:

Leasehold improvements
-
life of lease
Plant and machinery
-
10 - 15 years

The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if 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 in profit or loss.

  
2.12

Impairment of fixed assets and goodwill

Assets that are subject to depreciation or amortisation are assessed at each balance sheet date to determine whether there is any indication that the assets are impaired. Where there is any indication that an asset may be impaired, the carrying value of the asset (or cash-generating unit to which the asset has been allocated) is tested for impairment. An impairment loss is recognised for the amount by which the asset's carrying amount exceeds its recoverable amount. The recoverable amount is the higher of an asset's (or CGU's) fair value less costs to sell and value in use. For the purposes of assessing impairment, assets are grouped at the lowest levels for which there are separately identifiable cash flows (CGUs). Non-financial assets that have been previously impaired are reviewed at each balance sheet date to assess whether there is any indication that the impairment losses recognised in prior periods may no longer exist or may have decreased.

 
2.13

Impairment of fixed assets and goodwill

Assets that are subject to depreciation or amortisation are assessed at each balance sheet date to determine whether there is any indication that the assets are impaired. Where there is any indication that an asset may be impaired, the carrying value of the asset (or cash-generating unit to which the asset has been allocated) is tested for impairment. An impairment loss is recognised for the amount by which the asset's carrying amount exceeds its recoverable amount. The recoverable amount is the higher of an asset's (or CGU's) fair value less costs to sell and value in use. For the purposes of assessing impairment, assets are grouped at the lowest levels for which there are separately identifiable cash flows (CGUs). Non-financial assets that have been previously impaired are reviewed at each balance sheet date to assess whether there is any indication that the impairment losses recognised in prior periods may no longer exist or may have decreased.

Page 17

 

KNAUF CEILING SOLUTIONS LIMITED

NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

2.Accounting policies (continued)

 
2.14

Stocks

Stocks are stated at the lower of cost and net realisable value, being the estimated selling price less costs to complete and sell. Cost is based on the cost of purchase on a weighted average basis. Work in progress and finished goods include labour and attributable overheads.

At each balance sheet date, stocks are assessed for impairment. If stock is impaired, the carrying amount is reduced to its selling price less costs to complete and sell. The impairment loss is recognised immediately in profit or loss.


2.15

Financial instruments

The company has elected to apply Sections 11 and 12 of FRS 102 in respect of financial instruments.

Financial assets and financial liabilities are recognised when the company becomes party to the contractual provisions of the instrument. 

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. 
 
The component parts of compound instruments issued by the company are classified separately as financial liabilities and equity in accordance with the substance of the contractual arrangement. On initial recognition the financial liability component is recorded at its fair value. The fair value of the liability component is estimated using the prevailing market interest rate for a similar instrument without equity features. The equity component is determined by deducting the amount of the liability component from the fair value of the compound instrument as a whole. This is recognised in equity and not subsequently remeasured.
 
The company’s policies for its major classes of financial assets and financial liabilities are set out below. 

Financial assets
Basic financial assets, including trade and other debtors, cash and bank balances, intercompany working capital balances, and intercompany financing 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 for a similar debt instrument. Financing transactions are those in which payment is deferred beyond normal business terms or is financed at a rate of interest that is not a market rate.

Such assets are subsequently carried at amortised cost using the effective interest method, less any impairment.

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, which excludes transaction costs for those financial assets that are subsequently measured at fair value through profit and loss. 
Such financial assets are subsequently measured at fair value through profit or loss, where they are publicly traded, or fair value can be measured reliably, for example by using a valuation technique. Where fair value cannot be measured reliably, the financial asset is measured at cost less impairment. 
 
Page 18

 

KNAUF CEILING SOLUTIONS LIMITED

NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

2.Accounting policies (continued)


Financial instruments (continued)



Financial instruments (continued)

Financial liabilities

Basic financial liabilities, including trade and other creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, 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 payments discounted at a market rate of interest for a similar debt instrument. Financing transactions are those in which payment is deferred beyond normal business terms or is financed at a rate of interest that is not a market rate.

Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

Derivative contracts 
Derivatives contracts, including interest rate swaps and foreign exchange forward contracts, are not basic financial instruments. 
Derivatives contracts 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 interest payable and similar expenses or interest receivable and similar income as appropriate. 
 
Derivative contracts 
The company enters into floating to fixed interest rate swaps to manage its exposure to cash flow risk on its variable rate debt instruments. These derivatives are measured at fair value at each reporting date. To the extent the hedge is effective, movements in fair value are recognised in other comprehensive income and presented in a separate cash flow hedge reserve. Any ineffectiveness is recognised in the profit and loss account for the year within interest payable and similar expenses.
 
Impairment of financial assets
Financial assets measured at cost and amortised cost are assessed at the end of each reporting period for objective evidence of impairment. If objective evidence of impairment is found, an impairment loss is recognised in the profit and loss account. 

For financial assets measured at cost less impairment, the impairment loss is measured as the difference between the asset's carrying amount and the best estimate of the amount the company would receive for the asset if it were to be sold at the reporting date. 

For financial assets measured at amortised cost, the impairment loss is measured as the difference between the asset's carrying amount and the present value of estimated cash flows discounted at the asset's original effective interest rate. If the financial asset has a variable interest rate, the discount rate for measuring any impairment loss is the current effective interest rate determined under the contract.

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.

Page 19

 

KNAUF CEILING SOLUTIONS LIMITED

NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

2.Accounting policies (continued)


Financial instruments (continued)



Financial instruments (continued)

Derecognition of financial assets and financial liabilities
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. 
 
If a transfer does not result in derecognition because the company has retained significant risks and rewards of ownership of the transferred asset, the company continues to recognise the transferred asset in its entirety and recognises a financial liability for the consideration received. The asset and liability are not offset. In subsequent periods, the company recognises any income on the transferred asset and any expense incurred on the financial liability. 
 
Financial liabilities are derecognised when the liability is extinguished, that is when the contractual obligation is discharged, cancelled or expires.

Offsetting of financial assets and financial liabilities
Financial assets and liabilities are offset and the net amount reported in the balance sheet when there is an 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.

 
2.16

Cash

Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours. Cash equivalents are highly liquid investments that mature in no more than three months from the date of acquisition and that are readily convertible to known amounts of cash with insignificant risk of change in value.

 
2.17

Provisions for liabilities

Provisions are recognised when an event has taken place that gives rise to a legal or constructive obligation, a transfer of economic benefits is probable and a reliable estimate can be made.
Provisions are measured as the best estimate of the amount required to settle the obligation, taking into account the related risks and uncertainties.
 
Increases in provisions are generally charged as an expense to profit or loss.

Page 20

 

KNAUF CEILING SOLUTIONS LIMITED

NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

3.


Judgments in applying accounting policies and key sources of estimation uncertainty

In the preparation of the financial statements, it is necessary for the management of the company to make judgements, estimates and assumptions that may affect the application of accounting policies and the reported amounts of assets and liabilities, and income and expenses. The estimates and associated assumptions are based on historical experience and various other factors that are believed to be reasonable under the circumstances. Actual results may differ from these estimates. The key areas requiring the use of estimates and judgements which may significantly affect the financial statements are considered to be:
Stock provision
The Company designs, manufactures and sells products which are subject to changing technological advances. As a result it is necessary to consider the recoverability of the cost of inventory and the associated provisioning required. When calculating the inventory provision, management considers the nature and condition of the inventory, as well as applying assumptions around anticipated saleability of finished goods and future usage of raw materials. See note 13 for the net carrying amount of the inventory and associated provision.
Dilapidation provision
The company has recognised a provision for dilapidations. The judgements, estimates and associated assumptions necessary to calculate these provisions are based on historical experience and specialist input.


4.


Turnover

An analysis of turnover by class of business is as follows:


2023
2022
£000
£000

Sale of goods
18,017
15,404


Analysis of turnover by country of destination:

2023
2022
£000
£000

United Kingdom
16,630
13,543

Rest of Europe
1,387
1,861

18,017
15,404



5.


Other operating income

2023
2022
£000
£000

Intercompany service fee
2,341
2,445


Page 21

 

KNAUF CEILING SOLUTIONS LIMITED

NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

6.


Operating loss

The operating loss is stated after charging:

2023
2022
£000
£000

Exchange differences
162
160

Operating lease rentals
882
609

Depreciation of tangible fixed assets
661
759

Amortisation of intangible fixed assets
307
307

Impairment on tabgible fixed assets
722
-

Fees payable to the company's auditor for the audit of the company
100
87

Difference on foreign exchange
242
241


7.


Employees

Staff costs, including directors' remuneration, were as follows:


2023
2022
£000
£000

Wages and salaries
4,526
5,355

Social security costs
501
503

Cost of defined contribution scheme
250
256

5,277
6,114


The average monthly number of employees, including the directors, during the year was as follows:


        2023
        2022
            No.
            No.







Management and administration
45
58



Production
33
36

78
94

Page 22

 

KNAUF CEILING SOLUTIONS LIMITED

NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

8.


Directors' remuneration

2023
2022
£000
£000

Directors' emoluments
353
636

Company contributions to defined contribution pension schemes
50
42

403
678


During the year retirement benefits were accruing to 2 directors (2022 - 2) in respect of defined contribution pension schemes.

The highest paid director received remuneration of £182 thousand (2022 - £382 thousand).

The value of the company's contributions paid to a defined contribution pension scheme in respect of the highest paid director amounted to £37 thousand (2022 - £42 thousand).


9.


Interest receivable

2023
2022
£000
£000


Interest receivable from group companies
-
(18)


10.


Interest payable and similar expenses

2023
2022
£000
£000


Loans from group undertakings
793
331


11.


Taxation


2023
2022
£000
£000



Total current tax
-
-

Deferred tax

Total deferred tax
-
-


Tax on loss
-
-
Page 23

 

KNAUF CEILING SOLUTIONS LIMITED

NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
 
11.Taxation (continued)


Factors affecting tax charge for the year

The tax assessed for the year is higher than (2022 - higher than) the standard rate of corporation tax in the UK of 23.5% (2022 - 19%). The differences are explained below:

2023
2022
£000
£000


Loss on ordinary activities before tax
(7,898)
(5,224)


Loss on ordinary activities multiplied by standard rate of corporation tax in the UK of 23.5% (2022 - 19%)
(1,856)
(968)

Effects of:


Expenses not deductible for tax purposes, other than goodwill amortisation and impairment
6
-

Capital allowances
277
6

Adjustments to tax charge in respect of prior periods
-
521

Short-term timing difference leading to an increase (decrease) in taxation
-
441

Group relief
1,573
-

Total tax charge for the year
-
-


Factors that may affect future tax charges

In the Spring Budget 2021, the UK Government announced that from 1 April 2023 the corporation tax rate would increase to 25% for companies with profits of over £250,000. A small profits rate will also be introduced for companies with profits of £50,000 or less so that they will continue to pay corporation tax at 19%. From this date companies with profits between £50,000 and £250,000 will pay tax at the main rate reduced by a marginal relief providing a gradual increase in the effective corporation tax rate. This new law was substantively enacted on 24 May 2021.
For the financial year ended 31 December 2023, the weighted average tax rate for current tax was 23.5%.


12.


Exceptional items

2023
2022
£000
£000


Redundancy costs (included in cost of sales)
655
-

Impairment of fixed assets (included in administrative expenses)
722
-

Onerous lease provision (included in administrative expenses)
429
-

1,806
-

Page 24

 

KNAUF CEILING SOLUTIONS LIMITED

NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

13.


Intangible assets




Customer list
Computer software
Total

£000
£000
£000



Cost


At 1 January 2023
726
486
1,212



At 31 December 2023

726
486
1,212



Amortisation


At 1 January 2023
218
243
461


Charge for the year
145
162
307



At 31 December 2023

363
405
768



Net book value



At 31 December 2023
363
81
444



At 31 December 2022
508
243
751



Page 25

 

KNAUF CEILING SOLUTIONS LIMITED

NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

14.


Tangible fixed assets





Leasehold improvements
Plant and machinery
Total

£000
£000
£000



Cost or valuation


At 1 January 2023
956
9,909
10,865



At 31 December 2023

956
9,909
10,865



Depreciation


At 1 January 2023
956
7,738
8,694


Charge for the year
-
661
661


Impairment charge
-
722
722



At 31 December 2023

956
9,121
10,077



Net book value



At 31 December 2023
-
788
788



At 31 December 2022
-
2,170
2,170

Items of plant and machinery were impaired given the the decision to close the manufacturing business taken during the year.

Page 26

 

KNAUF CEILING SOLUTIONS LIMITED

NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

15.


Stocks

2023
2022
£000
£000

Raw materials and consumables
226
338

Work in progress (goods to be sold)
-
8

Finished goods and goods for resale
945
1,263

1,171
1,609


The carrying value of stocks is stated net of an impairment provision of £374,000 (2022 - £270,000).

Page 27

 

KNAUF CEILING SOLUTIONS LIMITED

NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

16.


Debtors

2023
2022
£000
£000


Trade debtors
2,710
2,994

Amounts owed by group undertakings
164
599

Other debtors
154
457

Prepayments and accrued income
176
696

3,204
4,746


Amounts owed by group undertakings are unsecured, interest bearing and are repayable on demand.


17.


Creditors: Amounts falling due within one year

2023
2022
£000
£000

Loans from group undertakings
7,300
4,500

Trade creditors
191
776

Amounts owed to group undertakings
8,386
4,484

Other taxation and social security
544
319

Other creditors
30
220

Accruals and deferred income
2,158
1,713

18,609
12,012


Loans from group undertakings comprises a loan in the amount of £4,500,000 and a separate loan in the amount of £2,800,000. The £4,500,000 loan extends automatically for successive twelve month periods on the loan due date (31 January) unless either party gives written notice not to renew the loan within 30 days of this date. It bears interest of LIBOR plus 2.40%. The £2,800,000 loan is due for repayment by 30 April 2024 and bears interest of LIBOR plus 2.65%.
The amounts owed to group undertakings are unsecured, interest free and are repayable on demand.


18.


Creditors: Amounts falling due after more than one year

2023
2022
£000
£000

Loan from group undertaking
-
2,800


Loan from group undertakings as at 31 December 2022 relates to a loan due for repayment by 30 April 2024 which as at 31 December 2023 is included in amounts falling due within one year. It bears interest of LIBOR plus 2.65%.

Page 28

 

KNAUF CEILING SOLUTIONS LIMITED

NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

19.


Provisions


Dilapidations provision
Onerous lease provision
Total

£000
£000
£000





At 1 January 2023
619
-
619


Charged to profit or loss
-
429
429



At 31 December 2023
619
429
1,048

A dilapidations provision has been recognised for the estimated future costs to restore the company's various leased properties (in Stafford, Uxbridge and Peterlee) to their original condition when the leases end.
An onerous lease provision has been recognised for the future operating lease costs in respect of the company's manufacturing site given the the decision to close the manufacturing business taken in the year ended 31 December 2023.


20.


Share capital

2023
2022
£000
£000
Allotted, called up and fully paid



5,990,555 (2022 - 5,990,555) Ordinary shares of £1.00 each
5,991
5,991


The holders of ordinary shares are entitled to receive dividends as declared from time to time and are entitled to one vote per share at meetings of the Company. 


21.


Reserves

Share premium account

The share premium reserve includes any premiums received on issue of share capital. Any transaction costs associated with the issuing of shares are deducted from share premium.

Profit and loss account

The profit and loss account includes all current and prior period retained profits and losses.


22.


Pension commitments

The company participates in a Group Personal Pension scheme. The pension cost charge for the period in respect of the scheme represents contributions payable by the company to the group scheme and amounted to £250,000 (2022: £256,000). 
There were no outstanding or prepaid contributions at either the beginning or the end of the financial year.

Page 29

 

KNAUF CEILING SOLUTIONS LIMITED

NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

23.


Commitments under operating leases

At 31 December 2023 the company had future minimum lease payments due under non-cancellable operating leases for each of the following periods:

2023
2022
£000
£000


Not later than 1 year
557
534

Later than 1 year and not later than 5 years
688
1,142

1,245
1,676


24.


Related party transactions

The company has taken advantage of the exemption contained in FRS 102 section 33 "Related Party Disclosures"  from disclosing transactions with entities which are a wholly owned part of the group.


25.


Post balance sheet events

On 9 October 2024 the company issued 1 additional ordinary share of £1 at a premium of £10,899,999.


26.


Ultimate parent undertaking and controlling party

The immediate parent undertaking is Armstrong (U.K.) Investments, a company incorporated in England and Wales. The ultimate parent company is Gebr. Knauf KG, a company incorporated in Germany. 
The parent undertaking of the smallest and the largest group of undertakings for which group financial statements are drawn up and of which the company is a member of is Gebr. Knauf KG, whose registered office is at Am Bahnhof 7, 97346 Iphofen, Germany. Copies of these group financial statements are available to the public from its registered office.
In the opinion of the directors, the ultimate controlling party is Gebr. Knauf KG.

 
Page 30