Company registration number 01893754 (England and Wales)
THE KAY GROUP (UK) LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 OCTOBER 2024
THE KAY GROUP (UK) LIMITED
COMPANY INFORMATION
Directors
Mr K A Kay
Mrs J Kay
Mr R S Cox
Mr S L Fielding
Mrs A J Graham
Mr A L Howard
Secretary
Mr S L Fielding
Company number
01893754
Registered office
Intack Self Drive
The Canal Wharf
Lower Audley Street
Blackburn
Lancashire
BB1 1DG
Auditor
JS. Audit Limited
James House
Stonecross Business Park
Yew Tree Way
Warrington
Cheshire
WA3 3JD
THE KAY GROUP (UK) LIMITED
CONTENTS
Page
Strategic report
1 - 5
Directors' report
6 - 7
Directors' responsibilities statement
8
Independent auditor's report
9 - 11
Statement of comprehensive income
12
Balance sheet
13
Statement of changes in equity
14
Notes to the financial statements
15 - 30
THE KAY GROUP (UK) LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 OCTOBER 2024
- 1 -
The directors present the strategic report for the year ended 31 October 2024.
Review of the business
The company continued its main activities of retailing automotive fuel and convenience store operation.
Overall turnover increased by £9.4m. The Grimshaw Park site was closed for a full knockdown and rebuild (to be completed mid 2025) but the new site at Sandyford opened and is performing very strongly. Fuel turnover was over £10m higher but other income streams were flat or slightly down.
Gross Profit increased by 10% over 2023 whilst Expenses continued to be tightly controlled, being only 3% higher than 2023, this was assisted by continued business rates relief for part of the year. Inter-company management charges increased from £6.7m to £7.0m to reflect an increased cost base in the parent company in 2024.
Employee numbers increased to 314, however, staff costs decreased by £1.2m to £5.7m due to a bonus initiative undertaken in 2023.
The company did not hive any further sites into its parent company, The Kay Group (UK Holdings) Ltd this period however the company intends to continue the policy of hiving up sites into the parent whilst distributable reserves allow. We anticipate one or more sites will be hived up during the current period.
After two years of market impairment, Asset Investments had a better year, resulting in a gain of over £1.8m.
The company did not have any formal bank loans during the period, and it continues to fund its investments and developments from cash reserves.
Since the balance sheet date, the company has continued the rebuild of the Grimshaw Park location, which we expect to open mid 2025. The company has additionally completed the buyout of the lease at its Dobshill location, and as of February 2025, that location is now fully owned.
The company revalues its petrol station portfolio on an annual basis. During the year, the portfolio was uplifted by £4.6m. Further details are provided in Note 14.
Principal risks and uncertainties
Financial
At the period end, the company had no formal bank loan facilities, due to the strength of the cash reserves.
Operational
The company's policies, procedures and systems are regularly reviewed to combat any new or altered operational issues and risks.
Personnel
The company expects to retain its key personnel who have the knowledge, skills and expertise. The structure is working well for the company. The company is an equal opportunities employer which often promotes from within.
Reputation
The company has an excellent reputation within the industry; recognised by awards for excellence in recent years. This is borne out in the S172 report.
Regulatory
By virtue of the fact that the company sells some age-restricted products, legislative actions could potentially
adversely affect it. It has clear, rigorous policies, due diligence procedures, and audits; both internal and third-party that assist with ensuring the company does not get exposed to legislative action. These policies are reviewed regularly and a re-write and re-issue of the companys Policies and Procedures was undertaken this year. This is done to ensure the company is not exposed to any new or changed threats.
THE KAY GROUP (UK) LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2024
- 2 -
Key performance indicators
2024 2023 %change
Turnover £227.2m £217.8m +4.3%
Gross Profit £20.9m £19.0m +10.0%
Operating Profit £13.45m £11.26m +19.4%
Total equity £31.89m £16.57m +92.4%
Employees 314 287 +9.4%
Further comments on the above are given in the fair review section.
Other performance indicators
Employee matters
People are the companys primary asset to achieving its business plan and it has established policies for recruitment, training and development. It is committed to achieving excellence in health & safety, welfare and protection of its employees. The company continues to review these policies to ensure they remain relevant
The company has worked hard on its staff-retention and is very proud of the number of employees who have over 20 years service, and the large number who have in excess of 10 years service. The Directors are grateful for the continued support and commitment, as it is pivotal to the success of the company.
Employment with the company is based on the person's ability to work and not on the basis of race, individual characteristics, creed or political opinion.
The company continues to ensure all of its employees are paid more than the minimum wage.
The company was pleased to publish its first Gender Pay Gap report in April 2024, and this is available on the website.
Environmental
The company recognises it sells products which can be seen to be harmful to the environment. It invests heavily in its storage and monitoring systems to ensure risk to the environment is negligible. There has been significant capital spend during the year to maintain and improve some of the fuel storage systems, and we have a rolling plan to improve more in the next two years.
It has reduced its carbon footprint by installing energy saving equipment in most of its outlets; reducing its Carbon Footprint by an estimate of 30% compared with previous technologies.
Rainwater harvesting is installed in all new developments and the company has installed Stage 2 Vapour Recovery at the majority of its locations, which greatly reduces the fuel vapours released into the atmosphere. The parent company files a SECR report in respect of the companys environmental commitments and has also published an ESOS report in 2025.
The company has installed solar panels in all-bar-one of its service stations. We have invested more than £1.8m into the project and redeuctions in electricity usage from the grid are 20%-25%.
The company has also invested more than £130k into monitoring equipment to help us operate our devices and machinery to a more optimum level. This gives further savings of around 5%-8%.
The company is now looking into battery technologies to enhance these savings and carbon efficiencies further still.
THE KAY GROUP (UK) LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2024
- 3 -
Section 172 statement
Strategy of the Company and Its Core Values
The Kay Group (UK) Ltd is an award winning company for design, innovation, and customer service.
It is the company’s strategy to expand through new to industry developments with branded retailing partners and a commitment to give superior customer service from all our outlets through: intensive training; staff presentation in a bespoke uniform; service station services/facilities; promotional activities with pride and; professionalism and efficiency 24 hours a day, 7 days a week.
Our recognised national branded suppliers for fuels are with Shell, BP and Texaco along with Londis and Costa Express, supported by quality locally sourced craft produce and value promotional goods to retail from our shops.
In addition, we have internal retailer partners, Greggs, and Subway. Most businesses operate these brands under a franchise agreement; however, we agree for the internal partners to operate themselves as the experts to maximise customer satisfaction and returning numbers.
As in recent years, the company now further invests in developing Costa Drive-Thrus adjacent to the main business, again to attract customers to its core business activities and we have a standalone EV charging planning application next to our Castlewood, Sutton-in-Ashfield location.
Employees
The company has dedicated senior staff for the recruitment and training of all employees, along with an initial induction and training programme followed up with an ongoing training programme, only to be signed off if we are satisfied of proficiency. The Kay Group updated all of its policies, procedures, health, safety and risk assessment policies during the year and retrained all staff who were then signed off with new training records.
Each member of our front line staff is furnished with a bespoke quality uniform and the management of the business dress professionally in suits. The company is recognised by the Chair of our industry body as leaders in staff presentation.
Every site is visited by the board members several times a month who engage with all staff members, including cleaners who vitally present the first set of standards the customers see, the forecourt.
The company pays at least the minimum of the higher recognised rate of the ”Real Living Wage” with most exceeding this level to all age groups.
All employees, after five years’ service, benefit from an annual service loyalty bonus paid prior to the festive season.
All management are party to on a bonus structure which is based on success, with an average achievement rate of around 75%.
THE KAY GROUP (UK) LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2024
- 4 -
Customers, Suppliers and Institutions
The company actively promotes customer retention through its services, facilities and its front line staff supported with Oil Company promotional activity.
For new locations, the company has created a very cost effective three tier customer retention promotional activity through fuel discount vouchers to redeem on their next fill up, which when acted on, our competitors do not react to it.
As well as our recognised national branded partners, on occasions the company uses smaller suppliers, who prior to trading with, are fully checked out as bona-fide companies, VAT registered and for duty goods, we secure copies of permits, licences, and passport details of the principals. All companies are checked to comply with the Modern Slavery Act and GDPR.
The board of directors are very proactive with the company’s bankers, insurance company, all regulatory bodies, neighbours and the police through regular contact and meetings, including meetings on various business trading locations and presentations.
Environmental & Social Responsibility
Our insurers AXA completed an on-site audit of all the company’s business activities in 2019 including: building design, safety of its staff, customers/visitors, environmental policies, security and liaison with local bodies and the Police with the standards set as – Excellent.
Local Police enforcement are presented, personally on most occasions, with the company's Security, Crime Prevention, Health & Safety and Neighbour Relations policies which receive commendations.
The company’s infrastructure is highly invested in as a company to an exceptional industry standard including carbon reduction initiatives; fuel tanks with stage 2 vapour recovery to avoid vapour venting to the atmosphere; real time tank monitoring to avoid any leaks to ground and; rainwater harvesting to reuse through its car washing activity.
The company contracts external companies to carry out legal spot check audits and should there be any failings the staff are retrained immediately. Mystery motorists conduct checks which include staff friendliness and we are also subject to checks in respect of those provided by supplying companies such as the National Lottery and our main supplier of e-cigarettes sending in their own audit team.
Income & Expenses
The finance director produces a very effective profit flash each week along with expected fuel margins for the following week.
Contact is made to all sites seven days a week to ensure service levels and identify any equipment or stocking level concerns.
Each month extremely detailed P&L management accounts are produced for the board and senior management to scrutinise.
The board meets at the end of each month to assess all of its business activities including; detailed financial review of income and expenses with action points agreed, business threats, opportunities, external serve legal audits, mystery motorist tests, expansion plans in progress and all health and safety issues.
Conclusion
The Kay Group’s continued financial improvement is a testimony to the company’s business acumen, business development plans, expansion with retailing partners and overall stewardship.
THE KAY GROUP (UK) LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2024
- 5 -
Mr S L Fielding
Secretary
3 April 2025
THE KAY GROUP (UK) LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 OCTOBER 2024
- 6 -
The directors present their annual report and financial statements for the year ended 31 October 2024.
Principal activities
The principal activity of the company continued to be that of retailing automotive fuel and convenience store operation.
Results and dividends
The results for the year are set out on page 12.
No ordinary dividends were paid. 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 K A Kay
Mrs J Kay
Mr R S Cox
Mr S L Fielding
Mrs A J Graham
Mr A L Howard
Disabled persons
Applications for employment by disabled persons are always fully considered, bearing in mind the aptitudes of the applicant concerned. In the event of members of staff becoming disabled, every effort is made to ensure that their employment within the company continues and that the appropriate training is arranged. It is the policy of the company that the training, career development and promotion of disabled persons should, as far as possible, be identical to that of other employees.
Employee involvement
The company's policy is to consult and discuss with employees, through unions, staff councils and at meetings, matters likely to affect employees' interests.
Information about matters of concern to employees is given through information bulletins and reports which seek to achieve a common awareness on the part of all employees of the financial and economic factors affecting the company's performance.
Auditor
JS. Audit Limited were appointed as auditor to the company and in accordance with section 485 of the Companies Act 2006, a resolution proposing that they be re-appointed will be put at a General Meeting.
Energy and carbon report
The energy and carbon reporting disclosures for the company are included within The Kay Group (UK Holdings) Limited strategic report as the company has taken the subsidiary exemption and therefore is not obliged to include the information in this report.
Strategic report
The company has chosen in accordance with Companies Act 2006, s.414C(11) to set out in the company's strategic report information required by Large and Medium-sized Companies and Groups (Accounts and Reports) Regulations 2008, Sch. 7 to be contained in the directors' report, including future developments information, employee engagement statement and stakeholder engagement statement (incorporated within the section 172 statement) and principal risks and uncertainties.
THE KAY GROUP (UK) LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2024
- 7 -
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.
By order of the board
Mr S L Fielding
Mr K A Kay
Secretary
Director
3 April 2025
THE KAY GROUP (UK) LIMITED
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 31 OCTOBER 2024
- 8 -
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:
select suitable accounting policies and then apply them consistently;
make judgements 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; and
prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.
The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company’s transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
THE KAY GROUP (UK) LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF THE KAY GROUP (UK) LIMITED
- 9 -
Opinion
We have audited the financial statements of The Kay Group (UK) Limited (the 'company') for the year ended 31 October 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:
give a true and fair view of the state of the company's affairs as at 31 October 2024 and of its profit 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.
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.
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:
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.
THE KAY GROUP (UK) LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF THE KAY GROUP (UK) LIMITED (CONTINUED)
- 10 -
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 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 included within the directors' report, 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.
The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.
Irregularities and 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.
Based on our understanding of the company and sector, we identified that the principal risks of non-compliance with laws and regulations related to, but were not limited to, the Companies Act 2006, UK tax, employment, pension and health and safety legislation and we considered the extent to which non-compliance might have a material effect on the financial statements. We also considered those laws and regulations that have a direct impact on the preparation of the financial statements such as the Companies Act 2006.
We evaluated management’s incentives and opportunities for fraudulent manipulation of the financial statements (including the risk of override of controls) and determined that the principal risks were related to management bias in accounting estimates and judgements and the risk of fraud in revenue recognition.
Our procedures to respond to risks identified included the following:
reviewing the financial statement disclosures and testing to supporting documentation to assess compliance with provisions of relevant laws and regulations described as having a direct effect on the financial statements;
enquiring of management about actual and potential litigation and claims, their policies and procedures to prevent and detect fraud as well as whether they have knowledge of any actual, suspected or alleged fraud;
THE KAY GROUP (UK) LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF THE KAY GROUP (UK) LIMITED (CONTINUED)
- 11 -
performing analytical procedures to identify any unusual or unexpected relationships that may indicate risks of material misstatement due to fraud;
obtaining an understanding of provisions and holding discussions with management to understand the basis of recognition or non-recognition of tax provisions;
reviewing lease agreements for investment properties and performing revenue cut off testing;
reviewing and assessing the basis of valuation for investment properties;
reviewing the basis of valuation for stock and reviewing post year end activity to determine the net realisable value; and
in addressing the risk of fraud through management override of controls: testing the appropriateness of journal entries; assessing whether the accounting estimates, judgements and decisions made by management are indicative of a potential bias; and evaluating the business rationale of any significant transactions that are unusual or outside the normal course of business.
We also communicated relevant identified laws and regulations and potential fraud risks to all engagement team members and remained alert to any indications of fraud or non-compliance with laws and regulations throughout the audit.
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 also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the directors and other management and the inspection of regulatory and legal correspondence, if any. 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 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.
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 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 members as a body, for our audit work, for this report, or for the opinions we have formed.
Christopher Moss BSc F.C.A. (Senior Statutory Auditor)
For and on behalf of JS. Audit Limited, Statutory Auditor
Chartered Accountants
James House
Stonecross Business Park
Yew Tree Way
Warrington
Cheshire
WA3 3JD
18 April 2025
THE KAY GROUP (UK) LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 OCTOBER 2024
- 12 -
2024
2023
as restated
Notes
£
£
Turnover
3
227,218,353
217,851,079
Cost of sales
(206,299,067)
(198,854,156)
Gross profit
20,919,286
18,996,923
Administrative expenses
(8,638,487)
(8,397,098)
Other operating income
1,173,260
657,767
Operating profit
4
13,454,059
11,257,592
Interest receivable and similar income
8
176,375
Other gains and losses
9
1,847,432
(638,746)
Profit before taxation
15,301,491
10,795,221
Tax on profit
10
(3,395,612)
(2,587,107)
Profit for the financial year
11,905,879
8,208,114
Other comprehensive income
Revaluation of tangible fixed assets
4,556,021
831,099
Tax relating to other comprehensive income
(1,139,005)
903,526
Total comprehensive income for the year
15,322,895
9,942,739
THE KAY GROUP (UK) LIMITED
BALANCE SHEET
AS AT
31 OCTOBER 2024
31 October 2024
- 13 -
2024
2023
as restated
Notes
£
£
£
£
Fixed assets
Goodwill
13
129,511
162,011
Tangible assets
14
19,713,505
11,852,388
Investment property
15
1,410,878
1,410,878
Investments
16
10,639,493
8,792,061
31,893,387
22,217,338
Current assets
Stocks
17
3,878,681
3,982,300
Debtors
18
4,875,804
3,492,815
Cash at bank and in hand
12,995,370
13,068,063
21,749,855
20,543,178
Creditors: amounts falling due within one year
19
(18,850,326)
(24,805,588)
Net current assets/(liabilities)
2,899,529
(4,262,410)
Total assets less current liabilities
34,792,916
17,954,928
Provisions for liabilities
Deferred tax liability
20
2,904,862
1,389,769
(2,904,862)
(1,389,769)
Net assets
31,888,054
16,565,159
Capital and reserves
Called up share capital
22
111
111
Revaluation reserve
23
4,551,347
1,134,331
Capital redemption reserve
24
3
3
Profit and loss reserves
25
27,336,593
15,430,714
Total equity
31,888,054
16,565,159
The financial statements were approved by the board of directors and authorised for issue on 3 April 2025 and are signed on its behalf by:
Mr K A Kay
Director
Company registration number 01893754 (England and Wales)
THE KAY GROUP (UK) LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 OCTOBER 2024
- 14 -
Share capital
Revaluation reserve
Capital redemption reserve
Profit and loss reserves
Total
Notes
£
£
£
£
£
Balance at 1 November 2022
111
4,192,391
3
12,253,919
16,446,424
Year ended 31 October 2023:
Profit for the year
-
-
-
8,208,114
8,208,114
Other comprehensive income:
Revaluation of tangible fixed assets as restated
-
831,099
-
-
831,099
Tax relating to other comprehensive income as restated
-
903,526
-
903,526
Total comprehensive income as restated
-
1,734,625
-
8,208,114
9,942,739
Dividends
11
-
-
-
(9,824,004)
(9,824,004)
Transfers
-
(4,792,685)
-
4,792,685
-
Balance at 31 October 2023
111
1,134,331
3
15,430,714
16,565,159
Year ended 31 October 2024:
Profit
-
-
-
11,905,879
11,905,879
Other comprehensive income:
Revaluation of tangible fixed assets
-
4,556,021
-
-
4,556,021
Tax relating to other comprehensive income
-
(1,139,005)
-
(1,139,005)
Total comprehensive income
-
3,417,016
-
11,905,879
15,322,895
Balance at 31 October 2024
111
4,551,347
3
27,336,593
31,888,054
THE KAY GROUP (UK) LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 OCTOBER 2024
- 15 -
1
Accounting policies
Company information
The Kay Group (UK) Limited is a private company limited by shares incorporated in England and Wales. The registered office is Intack Self Drive, The Canal Wharf, Lower Audley Street, Blackburn, Lancashire, BB1 1DG.
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, modified to include the revaluation of land and buildings and investment properties held at fair value. 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 company has taken advantage of the exemption under section 400 of the Companies Act 2006 not to prepare consolidated accounts. The financial statements present information about the company as an individual entity and not about its group.
The Kay Group (UK) Limited is a wholly owned subsidiary of The Kay Group (UK Holdings) Limited and the results of The Kay Group (UK) Limited are included in the consolidated financial statements of The Kay Group (UK Holdings) Limited which are available from First Floor, Grimshaw Park Service Station, Grimshaw Park, Blackburn, Lancashire, BB3 3AG.
1.2
Going concern
The directors are satisfied that the company has the financial strength as a going concern. The directors are taking all reasonable steps to efficiently manage cash flow, to reduce costs and to plan appropriate commercial actions to take during this period of commercial instability across the UK economy. The directors have prepared cash flow forecasts for the period up to October 2026 covering the group of which this company is a member and considered possible sensitivities. These provide a basis on which the directors consider it appropriate to prepare the financial statements on a going concern basis. A letter confirming mutual financial support between The Kay Group (UK Holdings) Limited, The Kay Group (UK) Limited and Intack Self Drive Limited has been put in place as the forecasts have been prepared on a group basis.true
1.3
Turnover
Turnover represents the invoiced amount of goods sold and services provided less returns and allowances, excluding value added tax.
Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer (usually at the point of delivery), the amount of revenue can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the entity and the costs incurred or to be incurred in respect of the transaction can be measured reliably. This is usually at the point of delivery.
THE KAY GROUP (UK) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2024
1
Accounting policies
(Continued)
- 16 -
1.4
Intangible fixed assets - goodwill
Goodwill represents the excess of the cost of acquisition of unincorporated businesses over the fair value of net assets acquired. It is initially recognised as an asset at cost and is subsequently measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is considered to have a finite useful life and is amortised on a systematic basis over its expected life, which is 20 years.
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:
Land and buildings
2% straight line
Plant and equipment
10% - 25% straight line
Assets under construction
Not depreciated until the asset is brought into use
Freehold land is not depreciated.
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.
Properties whose fair value can be measured reliably are held under the revaluation model and are carried at a revalued amount, being their fair value at the date of valuation less any subsequent accumulated depreciation and subsequent accumulated impairment losses. The fair value of the land and buildings is usually considered to be their market value.
Revaluation gains and losses are recognised in other comprehensive income and accumulated in equity, except to the extent that a revaluation gain reverses a revaluation loss previously recognised in profit or loss or a revaluation loss exceeds the accumulated revaluation gains recognised in equity; such gains and losses are recognised in profit or loss.
1.6
Investment property
Investment property, which is property held to earn rentals and/or for capital appreciation, is initially recognised at cost, which includes the purchase cost and any directly attributable expenditure. Subsequently it is measured at fair value at the reporting end date. Changes in fair value are recognised in profit or loss.
1.7
Fixed asset investments
Interests in subsidiaries are initially measured at cost and subsequently measured at cost less any accumulated impairment losses. The investments are assessed for impairment at each reporting date and any impairment losses or reversals of impairment losses are recognised immediately in profit or loss.
A subsidiary is an entity controlled by the company. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.
Listed investments are initially measured at transaction price excluding transaction costs, and are subsequently measured at fair value at each reporting date. Changes in fair value are recognised in profit or loss. Transaction costs are expensed to profit or loss as incurred.
THE KAY GROUP (UK) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2024
1
Accounting policies
(Continued)
- 17 -
1.8
Impairment of fixed assets
At each reporting period end date, the company reviews the carrying amounts of its tangible and intangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.
Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.
If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.
1.9
Stocks
Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell.
Stocks held for distribution at no or nominal consideration are measured at the lower of cost and replacement cost, adjusted where applicable for any loss of service potential.
At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.
1.10
Cash and cash equivalents
Cash and cash equivalents are basic financial assets and include cash in hand and deposits held at call with banks.
1.11
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.
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.
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.
THE KAY GROUP (UK) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2024
1
Accounting policies
(Continued)
- 18 -
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
Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, are initially recognised at transaction price.
Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.
Derecognition of financial liabilities
Financial liabilities are derecognised when the company’s contractual obligations expire or are discharged or cancelled.
1.12
Equity instruments
Equity instruments issued by the company are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.
1.13
Taxation
The tax expense represents the sum of the tax currently payable and deferred tax.
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.
THE KAY GROUP (UK) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2024
1
Accounting policies
(Continued)
- 19 -
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.
1.14
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.
1.15
Retirement benefits
For defined contribution schemes the amount charged to profit or loss is the contributions payable in the year. Differences between contributions payable in the year and contributions actually paid are shown as either accruals or prepayments.
1.16
Leases
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 leased asset are consumed.
Rental income from operating leases is recognised on a straight line basis over the term of the relevant lease. Initial direct costs incurred in negotiating and arranging an operating lease are added to the carrying amount of the leased asset and recognised on a straight line basis over the lease term.
1.17
The prior year comparatives have been restated to correctly reflect the revaluation of the land and buildings that took place in The Kay Group (UK) Limited during the year ended 31 October 2023. The impact of this on the prior year comparatives has been to reduce the value of land and buildings by £1,916,756 and to reduce the related deferred tax provision by £479,189. The adjustments to the comparatives have been accounted for within other comprehensive income and have reduced the revaluation reserve brought forward by £1,437,567.
THE KAY GROUP (UK) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2024
- 20 -
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.
A degree of estimation is involved surrounding land and buildings that are held at valuation. The valuations as at 31 October 2024 are estimated by the Directors, based upon current market evidence and performance data for the sites, and with reference to historical independent valuations, of which a sample were updated at 31 October 2020. Recently developed properties are held at valuation, based on cost and experience of similar sites which have been subject to professional valuation. The key inputs in the valuation include maintainable earnings and earnings multiples.
There is also judgement surrounding the investment property, that is held at fair value. The valuations as at 31 October 2024 are estimated by the Directors.
An element of judgement has been applied in determining useful economic lives and the allocation of the cost of sites between land and buildings within fixed assets when applying valuation changes.
3
Turnover and other revenue
2024
2023
£
£
Turnover analysed by class of business
Retail of fuel and convenience goods
227,218,353
217,851,079
2024
2023
£
£
Turnover analysed by geographical market
United Kingdom
227,218,353
217,851,079
2024
2023
£
£
Other revenue
Interest income
-
1,375
Dividends received
-
175,000
Rent received
1,089,260
556,130
Sundry income
84,000
84,000
THE KAY GROUP (UK) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2024
- 21 -
4
Operating profit
2024
2023
Operating profit for the year is stated after charging:
£
£
Depreciation of owned tangible fixed assets
489,639
676,712
Impairment of owned tangible fixed assets
22,867
Amortisation of intangible assets
32,500
32,500
Operating lease charges
150,000
150,000
5
Auditor's remuneration
2024
2023
Fees payable to the company's auditor and associates:
£
£
For audit services
Audit of the financial statements of the company
21,000
28,800
For other services
Taxation compliance services
3,000
7,475
All other non-audit services
6,000
10,600
9,000
18,075
6
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2024
2023
Number
Number
Senior management
4
4
Service station operatives
310
283
Total
314
287
Their aggregate remuneration comprised:
2024
2023
£
£
Wages and salaries
5,341,508
6,574,101
Social security costs
298,972
246,565
Pension costs
77,647
117,317
5,718,127
6,937,983
7
Directors' remuneration
The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 4 (2023 - 4).
THE KAY GROUP (UK) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2024
7
Directors' remuneration
(Continued)
- 22 -
During the year, the directors received remuneration of £1,710,495 (2023: £1,475,842) and pension contributions of £5,177 (2023: £5,119).
The highest paid director received remuneration of £736,020 (2023: £628,700) and pension contributions of £1,321 (2023: £1,321).
Amounts included above are recharged from the parent company and are not included in the wages and salaries costs disclosure in note 6.
8
Interest receivable and similar income
2024
2023
£
£
Interest income
Other interest income
1,375
Income from fixed asset investments
Income from shares in group undertakings
175,000
Total income
176,375
9
Amounts written off investments
2024
2023
£
£
Fair value gains/(losses) on financial instruments
Gain/(loss) on financial assets held at fair value through profit or loss
1,847,432
(463,746)
Other gains/(losses)
Other gains and losses
-
(175,000)
1,847,432
(638,746)
10
Taxation
2024
2023
£
£
Current tax
UK corporation tax on profits for the current period
3,209,875
2,346,950
Adjustments in respect of prior periods
(190,351)
(82,636)
Total current tax
3,019,524
2,264,314
Deferred tax
Origination and reversal of timing differences
166,978
233,173
Adjustment in respect of prior periods
209,110
89,620
Total deferred tax
376,088
322,793
Total tax charge
3,395,612
2,587,107
THE KAY GROUP (UK) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2024
10
Taxation
(Continued)
- 23 -
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
15,301,491
10,795,221
Expected tax charge based on the standard rate of corporation tax in the UK of 25.00% (2023: 22.52%)
3,825,373
2,431,084
Tax effect of expenses that are not deductible in determining taxable profit
542
145,138
Tax effect of income not taxable in determining taxable profit
(442,038)
(1,576)
Adjustments in respect of prior years
(190,351)
(82,636)
Group relief
(39,406)
Other permanent differences
(6,844)
21,937
Deferred tax adjustments in respect of prior years
209,110
89,620
Remeasurement of deferred tax for changes in tax rates
23,113
Additional deduction for land remediation expenditure
(180)
(167)
Chargeable gains
1,139,005
Deferred tax charged directly to other comprehensive income
(1,139,005)
Taxation charge for the year
3,395,612
2,587,107
In addition to the amount charged to the profit and loss account, the following amounts relating to tax have been recognised directly in other comprehensive income:
2024
2023
as restated
£
£
Deferred tax arising on:
Revaluation of property
1,139,005
(903,526)
11
Dividends
2024
2023
£
£
Final paid
9,824,004
THE KAY GROUP (UK) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2024
- 24 -
12
Impairments
Impairment tests have been carried out where appropriate and the following impairment losses have been recognised in profit or loss:
2024
2023
Notes
£
£
In respect of:
Property, plant and equipment
14
22,867
Fixed asset investments
16
-
175,000
Recognised in:
Administrative expenses
-
22,867
Amounts written off investments
-
175,000
The impairment losses in respect of financial assets are recognised in other gains and losses in the profit and loss account.
13
Intangible fixed assets
Goodwill
£
Cost
At 1 November 2023 and 31 October 2024
649,483
Amortisation and impairment
At 1 November 2023
487,472
Amortisation charged for the year
32,500
At 31 October 2024
519,972
Carrying amount
At 31 October 2024
129,511
At 31 October 2023
162,011
THE KAY GROUP (UK) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2024
- 25 -
14
Tangible fixed assets
Land and buildings
Assets under construction
Plant and equipment
Total
as restated
as restated
£
£
£
£
Cost or valuation
At 1 November 2023
8,440,446
1,481,544
3,624,119
13,546,109
Additions
890,996
2,297,727
606,012
3,794,735
Revaluation
4,376,274
4,376,274
Transfers
1,492,929
(2,165,132)
672,203
At 31 October 2024
15,200,645
1,614,139
4,902,334
21,717,118
Depreciation and impairment
At 1 November 2023
90,204
2,103
1,601,414
1,693,721
Depreciation charged in the year
87,440
402,199
489,639
Revaluation
(179,747)
(179,747)
Transfers
2,103
(2,103)
At 31 October 2024
2,003,613
2,003,613
Carrying amount
At 31 October 2024
15,200,645
1,614,139
2,898,721
19,713,505
At 31 October 2023
8,350,242
1,479,441
2,022,705
11,852,388
The fair value of land and buildings has been arrived at by the Directors as at 31 October 2024, based upon current market evidence and performance data for the sites, and with reference to historical independent valuations, of which a sample were updated at 31 October 2020. The independent valuers were Chartered Surveyors and valued the assets in accordance with the Guidance Notes of the Royal Institution of Chartered Surveyors.
Included within land and buildings is a property held under a short lease. The value of this property at year end was £4,068,000 (2023: £2,669,426).
More information on impairment movements in the year is given in note 12.
The following assets are carried at valuation. If the assets were measured using the cost model, the carrying amounts would be as follows:
Land and buildings
2024
2023
£
£
Cost
4,617,997
3,727,001
Accumulated depreciation
(490,034)
(402,594)
Carrying value
4,127,963
3,324,407
THE KAY GROUP (UK) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2024
- 26 -
15
Investment property
2024
£
Fair value
At 1 November 2023 and 31 October 2024
1,410,878
The fair value of the investment property has been determined by the directors as at 31 October 2024, based on valuations made by the directors on a fair value basis by reference to market evidence of transaction prices for similar properties and the trading performance of the properties.
16
Fixed asset investments
2024
2023
£
£
Listed investments
10,639,493
8,792,061
Listed investments carrying amount
10,639,493
8,792,061
Listed investments relate to funds comprising stocks and shares held in companies listed in the UK and overseas markets. These are valued at the closing market price at the balance sheet date.
Movements in fixed asset investments
Shares in group undertakings
Other investments
Total
£
£
£
Cost or valuation
At 1 November 2023
175,000
8,792,061
8,967,061
Valuation changes
-
1,847,432
1,847,432
Disposals
(175,000)
-
(175,000)
At 31 October 2024
-
10,639,493
10,639,493
Impairment
At 1 November 2023 & 31 October 2024
175,000
-
175,000
Disposals
(175,000)
-
(175,000)
At 31 October 2024
-
-
Carrying amount
At 31 October 2024
-
10,639,493
10,639,493
At 31 October 2023
-
8,792,061
8,792,061
THE KAY GROUP (UK) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2024
- 27 -
17
Stocks
2024
2023
£
£
Finished goods and goods for resale
3,878,681
3,982,300
18
Debtors
2024
2023
Amounts falling due within one year:
£
£
Trade debtors
2,601,697
3,014,406
Corporation tax recoverable
226,885
124,200
Amounts owed by group undertakings
1,587,576
Other debtors
459,438
322,334
Prepayments and accrued income
208
31,875
4,875,804
3,492,815
The amounts owed by group undertakings includes an amount of £1,600,000 (2023: £150,000 creditor) in relation to cash utilised from an interest bearing bank account in the name of The Kay Group (UK) Limited by Intack Self Drive Limited, a fellow subsidiary of The Kay Group (UK Holdings) Limited. The prior year creditor arose as a result of cash held on deposit on behalf of Intack Self Drive Limited in this account.
19
Creditors: amounts falling due within one year
2024
2023
£
£
Trade creditors
15,743,489
17,934,070
Amounts owed to group undertakings
648,923
4,870,310
Taxation and social security
883,449
581,438
Other creditors
430,994
329,861
Accruals and deferred income
1,143,471
1,089,909
18,850,326
24,805,588
The company has fixed and floating charges in favour of National Westminster PLC and Valero Energy Limited.
THE KAY GROUP (UK) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2024
- 28 -
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
1,317,585
941,497
Revaluations
1,588,650
449,645
Short term timing differences
(1,373)
(1,373)
2,904,862
1,389,769
2024
Movements in the year:
£
Liability at 1 November 2023
1,389,769
Charge to profit or loss
376,088
Charge to other comprehensive income
1,139,005
Liability at 31 October 2024
2,904,862
21
Retirement benefit schemes
2024
2023
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
77,647
117,317
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.
Included in creditors at year end were contributions totalling £14,734 (2023: £13,019) payable to the scheme.
22
Share capital
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary Class A of 1p each
10,000
10,000
100
100
Ordinary Class B of 1p each
608
608
7
7
Ordinary Class C of 1p each
428
428
4
4
11,036
11,036
111
111
THE KAY GROUP (UK) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2024
22
Share capital
(Continued)
- 29 -
The Ordinary A shares have full voting and dividend rights.
The Ordinary B shares have no voting rights, and have dividend rights subject to rights of other classes of shares.
The Ordinary C shares have no voting rights, and have dividend rights subject to rights of other classes of shares.
23
Revaluation reserve
The cumulative revaluation gains and losses in respect of land and buildings, except revaluation gains and losses recognised in profit and loss.
24
Capital redemption reserve
The nominal value of shares repurchased and still held at the end of the reporting period.
25
Profit and loss reserves
Cumulative profits and losses net of distributions to owners.
26
Operating lease commitments
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
50,959
150,000
Between two and five years
50,959
50,959
200,959
Lessor
The operating leases represent leases of 36 sites (2023: 34 sites) to third parties. The leases are negotiated over terms of 1 year to 15 years, varying lease to lease, and rentals are fixed for the duration of the lease. There are options in place for either party to extend the lease terms.
The company have a call option over land currently being leased which is exercisable by February 2025.
At the reporting end date the company had contracted with tenants for the following minimum lease payments:
2024
2023
£
£
Within one year
925,458
900,227
Between two and five years
3,253,218
3,115,679
In over five years
3,673,734
3,902,521
7,852,410
7,918,427
THE KAY GROUP (UK) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2024
- 30 -
27
Capital commitments
Amounts contracted for but not provided in the financial statements:
2024
2023
£
£
Acquisition of tangible fixed assets
-
2,800,000
The company had capital commitments relating to the development of new sites of £nil (2023: £2,800,000) at the year end.
28
Related party transactions
The company has taken advantage of the exemption with section 33 of FRS 102, from disclosing transactions with group companies.
29
Directors' transactions
During the year the Directors bought fuel and goods on a commercial basis from the company. These amounts were not separately recorded in the financial statements as the directors consider the amounts to be immaterial.
30
Ultimate controlling party
The companies immediate and ultimate parent is The Kay Group (UK Holdings) Limited, who own 100% of the company's share capital. The ultimate controlling party was Mr K A Kay and Mrs J Kay, who control the majority of the ultimate parent's issued ordinary share capital.
The Kay Group (UK Holdings) Limited is the only undertaking preparing consolidated accounts including the financial statements of the company. Group accounts can be obtained from Companies House, Crown Way, Cardiff, CF14 3UZ.
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