Company registration number 04196954 (England and Wales)
KCLS LIMITED
FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2024
PAGES FOR FILING WITH REGISTRAR
KCLS LIMITED
CONTENTS
Page
Balance sheet
1
Notes to the financial statements
2 - 8
KCLS LIMITED
BALANCE SHEET
AS AT 31 AUGUST 2024
31 August 2024
- 1 -
2024
2023
Notes
£
£
£
£
Fixed assets
Intangible assets
4
103,000
268,000
Tangible assets
5
34,019
27,965
137,019
295,965
Current assets
Stocks
5,850
5,850
Debtors
6
1,711,023
1,593,686
Cash at bank and in hand
1,437,176
1,418,203
3,154,049
3,017,739
Creditors: amounts falling due within one year
7
(2,900,394)
(2,772,449)
Net current assets
253,655
245,290
Total assets less current liabilities
390,674
541,255
Creditors: amounts falling due after more than one year
-
0
(94,000)
Provisions for liabilities
(5,832)
-
0
Net assets
384,842
447,255
Capital and reserves
Called up share capital
8
220
220
Profit and loss reserves
384,622
447,035
Total equity
384,842
447,255

The directors of the company have elected not to include a copy of the profit and loss account within the financial statements.true

These financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime.

The financial statements were approved by the board of directors and authorised for issue on 19 November 2024 and are signed on its behalf by:
Mr F T L Brown
Mr S J Jevons
Director
Director
Company registration number 04196954 (England and Wales)
KCLS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2024
- 2 -
1
Accounting policies
Company information

KCLS Limited is a private company limited by shares incorporated in England and Wales. The registered office is Diddington Farmhouse, Diddington Lane, Meriden, West Midlands, United Kingdom, CV7 7HQ.

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 as applicable to companies subject to the small companies regime. The disclosure requirements of section 1A of FRS 102 have been applied other than where additional disclosure is required to show a true and fair view.

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

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

The company has taken advantage of the exemption under section 399 of the Companies Act 2006 not to prepare consolidated accounts, on the basis that the group of which this is the parent qualifies as a small group. The financial statements present information about the company as an individual entity and not about its group.

1.2
Turnover

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

 

Turnover includes revenue earned from the sale of cleaning products and from the rendering of services. Turnover from the sale of cleaning products is recognised when the significant risks and rewards of ownership of the goods have transferred to the buyer. Turnover from the rendering of services is recognised by reference to the stage of completion of the contract. The stage of completion of a contract is measured by comparing the costs incurred for work performed to date to the total estimated contract costs.

1.3
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 lives as follows:

 

Acquired in year ended 31 August                Estimated useful life

 

2002                            20 years

2008                            3.5 years

2017                            3 years

2022                            3 years

 

Provision is made for any impairment, with impairment losses charged to the profit and loss account in the period in which they arise.

KCLS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2024
1
Accounting policies
(Continued)
- 3 -
1.4
Intangible fixed assets other than goodwill

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

 

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

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

Trade acquisition
3 Years on cost

Provision is made for any impairment, with impairment losses charged to the profit and loss account in the period in which they arise.

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:

Plant and equipment
10% on cost
Fixtures and fittings
15% on reducing balance
Computers
25% on cost
Motor vehicles
25% on reducing balance

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

1.6
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.

KCLS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2024
1
Accounting policies
(Continued)
- 4 -

Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.

1.7
Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell, after making due allowance for obsolete and slow moving items.

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.

1.8
Cash and cash equivalents

Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

1.9
Financial instruments

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

 

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

 

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

Basic financial assets

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

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.

KCLS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2024
1
Accounting policies
(Continued)
- 5 -
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 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. Financial liabilities classified as payable within one year are not amortised.

 

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

 

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

1.10
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.

1.11
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.

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.

1.12
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.

 

Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

KCLS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2024
1
Accounting policies
(Continued)
- 6 -
1.13
Retirement benefits

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

1.14
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 leases asset are consumed.

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.

3
Employees

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

2024
2023
Number
Number
Total
803
787
4
Intangible fixed assets
Goodwill
Trade acquisition
Total
£
£
£
Cost
At 1 September 2023 and 31 August 2024
1,269,368
42,122
1,311,490
Amortisation and impairment
At 1 September 2023
1,001,368
42,122
1,043,490
Amortisation charged for the year
165,000
-
0
165,000
At 31 August 2024
1,166,368
42,122
1,208,490
Carrying amount
At 31 August 2024
103,000
-
0
103,000
At 31 August 2023
268,000
-
0
268,000
KCLS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2024
- 7 -
5
Tangible fixed assets
Plant and equipment
Fixtures and fittings
Computers
Motor vehicles
Total
£
£
£
£
£
Cost
At 1 September 2023
559
37,362
41,402
21,443
100,766
Additions
-
0
-
0
14,624
4,500
19,124
Disposals
-
0
-
0
(20,650)
(5,765)
(26,415)
At 31 August 2024
559
37,362
35,376
20,178
93,475
Depreciation and impairment
At 1 September 2023
392
26,712
37,325
8,372
72,801
Depreciation charged in the year
56
1,598
4,612
2,840
9,106
Eliminated in respect of disposals
-
0
-
0
(20,650)
(1,801)
(22,451)
At 31 August 2024
448
28,310
21,287
9,411
59,456
Carrying amount
At 31 August 2024
111
9,052
14,089
10,767
34,019
At 31 August 2023
167
10,650
4,077
13,071
27,965
6
Debtors
2024
2023
Amounts falling due within one year:
£
£
Trade debtors
1,671,791
1,561,057
Other debtors
1,472
1,459
Prepayments and accrued income
22,909
14,772
1,696,172
1,577,288
2024
2023
Amounts falling due after more than one year:
£
£
Other debtors
14,851
16,398
Total debtors
1,711,023
1,593,686
KCLS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2024
- 8 -
7
Creditors: amounts falling due within one year
2024
2023
£
£
Bank loans
97,841
140,501
Trade creditors
232,773
266,733
Corporation tax
337,446
233,355
Other taxation and social security
594,686
556,799
Deferred income
777,042
751,503
Other creditors
749,315
740,197
Accruals
111,291
83,361
2,900,394
2,772,449
8
Called up share capital
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
200
200
200
200
Ordinary A shares of £1 each
6
6
6
6
Ordinary B shares of £1 each
4
4
4
4
Ordinary C shares of £1 each
8
8
8
8
Ordinary D shares of £1 each
2
2
2
2
220
220
220
220
9
Audit report information

As the income statement has been omitted from the filing copy of the financial statements, the following information in relation to the audit report on the statutory financial statements is provided in accordance with s444(5B) of the Companies Act 2006:

The auditor's report was unqualified.

Senior Statutory Auditor:
Paul Mannion FCCA, FCA
Statutory Auditor:
BK Plus Audit Limited
Date of audit report:
19 November 2024
10
Operating lease commitments
Lessee

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

2024
2023
£
£
122,916
153,636
2024-08-312023-09-01falsefalsefalse19 November 2024CCH SoftwareCCH Accounts Production 2025.100No description of principal activityMr F T L BrownMr S J JevonsC M Jevons041969542023-09-012024-08-31041969542024-08-31041969542023-08-3104196954core:NetGoodwill2024-08-3104196954core:Non-standardIntangibleAssetClass1ComponentIntangibleAssetsOtherThanGoodwill2024-08-3104196954core:NetGoodwill2023-08-3104196954core:Non-standardIntangibleAssetClass1ComponentIntangibleAssetsOtherThanGoodwill2023-08-3104196954core:PlantMachinery2024-08-3104196954core:FurnitureFittings2024-08-3104196954core:ComputerEquipment2024-08-3104196954core:MotorVehicles2024-08-3104196954core:PlantMachinery2023-08-3104196954core:FurnitureFittings2023-08-3104196954core:ComputerEquipment2023-08-3104196954core:MotorVehicles2023-08-3104196954core:CurrentFinancialInstrumentscore:WithinOneYear2024-08-3104196954core:CurrentFinancialInstrumentscore:WithinOneYear2023-08-3104196954core:Non-currentFinancialInstrumentscore:AfterOneYear2024-08-3104196954core:Non-currentFinancialInstrumentscore:AfterOneYear2023-08-3104196954core:CurrentFinancialInstruments2024-08-3104196954core:CurrentFinancialInstruments2023-08-3104196954core:ShareCapital2024-08-3104196954core:ShareCapital2023-08-3104196954core:RetainedEarningsAccumulatedLosses2024-08-3104196954core:RetainedEarningsAccumulatedLosses2023-08-3104196954core:ShareCapitalOrdinaryShareClass12024-08-3104196954core:ShareCapitalOrdinaryShareClass12023-08-3104196954core:ShareCapitalOrdinaryShareClass22024-08-3104196954core:ShareCapitalOrdinaryShareClass22023-08-3104196954core:ShareCapitalOrdinaryShareClass32024-08-3104196954core:ShareCapitalOrdinaryShareClass32023-08-3104196954core:ShareCapitalOrdinaryShareClass42024-08-3104196954core:ShareCapitalOrdinaryShareClass42023-08-3104196954core:ShareCapitalOrdinaryShareClass52024-08-3104196954core:ShareCapitalOrdinaryShareClass52023-08-3104196954core:ShareCapitalOrdinaryShares2024-08-3104196954core:ShareCapitalOrdinaryShares2023-08-3104196954bus:Director12023-09-012024-08-3104196954bus:Director22023-09-012024-08-3104196954core:Goodwill2023-09-012024-08-3104196954core:IntangibleAssetsOtherThanGoodwill2023-09-012024-08-3104196954core:Non-standardIntangibleAssetClass1ComponentIntangibleAssetsOtherThanGoodwill2023-09-012024-08-3104196954core:PlantMachinery2023-09-012024-08-3104196954core:FurnitureFittings2023-09-012024-08-3104196954core:ComputerEquipment2023-09-012024-08-3104196954core:MotorVehicles2023-09-012024-08-31041969542022-09-012023-08-3104196954core:NetGoodwill2023-08-3104196954core:Non-standardIntangibleAssetClass1ComponentIntangibleAssetsOtherThanGoodwill2023-08-31041969542023-08-3104196954core:NetGoodwill2023-09-012024-08-3104196954core:PlantMachinery2023-08-3104196954core:FurnitureFittings2023-08-3104196954core:ComputerEquipment2023-08-3104196954core:MotorVehicles2023-08-3104196954core:Non-currentFinancialInstruments2024-08-3104196954core:Non-currentFinancialInstruments2023-08-3104196954bus:OrdinaryShareClass12023-09-012024-08-3104196954bus:OrdinaryShareClass22023-09-012024-08-3104196954bus:OrdinaryShareClass32023-09-012024-08-3104196954bus:OrdinaryShareClass52023-09-012024-08-3104196954bus:OrdinaryShareClass42023-09-012024-08-3104196954bus:OrdinaryShareClass12024-08-3104196954bus:OrdinaryShareClass12023-08-3104196954bus:OrdinaryShareClass22024-08-3104196954bus:OrdinaryShareClass22023-08-3104196954bus:OrdinaryShareClass32024-08-3104196954bus:OrdinaryShareClass32023-08-3104196954bus:OrdinaryShareClass42024-08-3104196954bus:OrdinaryShareClass42023-08-3104196954bus:OrdinaryShareClass52024-08-3104196954bus:OrdinaryShareClass52023-08-3104196954bus:AllOrdinaryShares2024-08-3104196954bus:AllOrdinaryShares2023-08-3104196954bus:PrivateLimitedCompanyLtd2023-09-012024-08-3104196954bus:SmallCompaniesRegimeForAccounts2023-09-012024-08-3104196954bus:FRS1022023-09-012024-08-3104196954bus:Audited2023-09-012024-08-3104196954bus:CompanySecretary12023-09-012024-08-3104196954bus:FullAccounts2023-09-012024-08-31xbrli:purexbrli:sharesiso4217:GBP