COMPANY REGISTRATION NUMBER 11267059
KILLIS LIMITED
FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2024
KILLIS LIMITED
COMPANY INFORMATION
Director
Mr T J Killi
Company number
11267059
Registered office
1a Orgreave Road
Dorehouse Industrial Estate
Sheffield
S13 9LQ
Auditor
UHY Hacker Young
6 Broadfield Court
Broadfield Way
Sheffield
S8 0XF
KILLIS LIMITED
CONTENTS
Page
Strategic report
1 - 2
Director's report
3
Director's responsibilities statement
4
Independent auditor's report
5 - 8
Profit and loss account
9
Balance sheet
10
Statement of changes in equity
11
Notes to the financial statements
12 - 23
KILLIS LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 1 -
The director presents the strategic report for the year ended 30 September 2024.
Review of the business
The Company has continued to experience strong growth, with sales reaching £12.5m, an increase from £11.7m in the previous period.
Most significantly, the company has improved its underlying financial performance and financial position: operating profits have grown to £0.7m (2023 - £0.1m) and long term external debt has been reduced by £0.4m, to £1.1m (2023 £1.5m).
Killis has been successful in securing several significant new contracts with blue-chip companies, which will drive healthy organic growth over the next five years. Additionally, we have launched a new trademarked brand, Genius. This innovative brand is set to contribute to consistent growth in both revenue and profitability.
Throughout the year, Killis has also invested considerable efforts in forming new partnerships with highly innovative manufacturers, securing exclusivity for the UK market. A prime example of this is our market-leading position in the supply and service of cleaning robotics, a sector that continues to show substantial growth and increasing popularity year on year.
We have also made the strategic decision to place a greater focus on our consumables division, which we expect to generate sustainable and consistent growth.
Our service department continues to expand, with increased national coverage. Killis is actively working toward becoming the largest independent service provider of cleaning equipment in the UK.
We are confident that these initiatives will drive further growth in both revenue and profits throughout 2024/2025.
Principal risks and uncertainties
The directors consider the principal risks facing the business are as follows: Market / sales risk Markets have suffered two economic shocks, from the global covid pandemic and more recently the effects of the war in Ukraine. Together these factors have resulted in supply chain issues and rising inflation (albeit the worst effects have reduced and inflation has now slowed). There is therefore a risk that as economic growth slows (and possibly reverses) the company will struggle to achieve its growth targets. In mitigation, the company has products whose return on investment is based on saving labour costs which may present opportunities to secure new customers. Finance risk Increased interest rates mean that the cost of servicing that debt has increased. The risk is mitigated by a mixture of fixed and variable interest rates. For now, the Board has not taken out hedging instruments but will continue to review the policy. Exchange rate risk The company has exposure to movements in foreign currency exchange rates from importing products and materials from overseas and through its exports. Whilst some of these provide a natural hedge, the company may still be affected by the more recent movements in currencies. Again, the Board has not taken out hedging instruments but will continue to review the policy. |
KILLIS LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 2 -
Key performance indicators
The Company monitors business financial performance focusing on growing revenues and profitability:
2024 2023
£'000 £'000
Turnover 12,456 11,731
Gross profit 4,778 3,939
Operating profit 766 81
Profit before taxation 579 518
Mr T J Killi
Director
2 April 2025
KILLIS LIMITED
DIRECTOR'S REPORT
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 3 -
The director presents his annual report and financial statements for the year ended 30 September 2024.
Principal activities
The principal activity of the business continued to be the supply of specialist cleaning equipment and janitorial supplies to the cleaning industry, accelerating access to products utilising the latest technology into an otherwise traditional sector.
Director
The director who held office during the year and up to the date of signature of the financial statements was as follows:
Mr T J Killi
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.
On behalf of the board
Mr T J Killi
Director
2 April 2025
KILLIS LIMITED
DIRECTOR'S RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 4 -
The director is responsible for preparing the annual report and the financial statements in accordance with applicable law and regulations.
Company law requires the director to prepare financial statements for each financial year. Under that law the director has 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 director must not approve the financial statements unless he is 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 director is required to:
select suitable accounting policies and then apply them consistently;
make judgements and accounting estimates that are reasonable and prudent;
prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.
The director is 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. He is 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.
- 5 -
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF
KILLIS LIMITED
Opinion
We have audited the financial statements of Killis Limited (the 'company') for the year ended 30 September 2024 which comprise the profit and loss account, 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 30 September 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 director's 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 director with respect to going concern are described in the relevant sections of this report.
- 6 -
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF
KILLIS LIMITED CONTINUED
The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The director is 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 director's report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
the strategic report and the director's 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 and the director's 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 director's remuneration specified by law are not made; or
we have not received all the information and explanations we require for our audit; or
the director was not entitled to prepare the financial statements in accordance with the small companies regime and take advantage of the small companies' exemption in preparing the director's report.
- 7 -
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF
KILLIS LIMITED CONTINUED
Responsibilities of director
As explained more fully in the director's responsibilities statement, the director is 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 director determines 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 director is 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 director either intends to liquidate the company or to cease operations, or has 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.
- 8 -
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF
KILLIS LIMITED CONTINUED
- Enquiry of management, those charged with governance around actual and potential litigation and claims.
- Reviewing financial statement disclosures and testing to supporting documentation to assess compliance with applicable laws and regulations.
- Auditing the risk of management override of controls, including through testing journal entries and other adjustments for appropriateness, and evaluating the business rationale of significant transactions outside the normal course of business.
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.
Andrew Hulse (Senior Statutory Auditor)
For and on behalf of UHY Hacker Young
Chartered Accountants
Statutory Auditor
KILLIS LIMITED
PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 9 -
2024
2023
Notes
£
£
Turnover
12,456,113
11,730,695
Cost of sales
(7,677,397)
(7,792,076)
Gross profit
4,778,716
3,938,619
Administrative expenses
(4,013,212)
(3,858,007)
Operating profit
765,504
80,612
Interest receivable and similar income
184
171
Interest payable and similar expenses
(186,402)
(136,648)
Amounts written off financial liabilities
3
-
573,619
Profit before taxation
579,286
517,754
Tax on profit
(205,030)
6,288
Profit for the financial year
374,256
524,042
KILLIS LIMITED
BALANCE SHEET
AS AT 30 SEPTEMBER 2024
30 September 2024
- 10 -
2024
2023
Notes
£
£
£
£
Fixed assets
Tangible assets
6
2,215,812
2,325,512
Current assets
Stocks
3,187,654
2,969,131
Debtors
7
2,374,646
2,704,630
Cash at bank and in hand
92,306
123,823
5,654,606
5,797,584
Creditors: amounts falling due within one year
8
(5,027,254)
(5,170,651)
Net current assets
627,352
626,933
Total assets less current liabilities
2,843,164
2,952,445
Creditors: amounts falling due after more than one year
9
(1,083,854)
(1,497,382)
Provisions for liabilities
(213,047)
(165,300)
Net assets
1,546,263
1,289,763
Capital and reserves
Called up share capital
10
100
100
Profit and loss reserves
1,546,163
1,289,663
Total equity
1,546,263
1,289,763
These financial statements have been prepared in accordance with the provisions relating to medium-sized companies.
The financial statements were approved and signed by the director and authorised for issue on 2 April 2025
Mr T J Killi
Director
Company registration number 11267059 (England and Wales)
KILLIS LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 11 -
Share capital
Profit and loss reserves
Total
Notes
£
£
£
Year ended 30 September 2023:
Profit and total comprehensive income for the year
-
524,042
524,042
Dividends
-
(125,691)
(125,691)
Balance at 30 September 2023
100
1,289,663
1,289,763
Year ended 30 September 2024:
Profit and total comprehensive income for the year
-
374,256
374,256
Dividends
-
(117,756)
(117,756)
Balance at 30 September 2024
100
1,546,163
1,546,263
KILLIS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 12 -
1
Accounting policies
Company information
Killis Limited is a private company limited by shares incorporated in England and Wales. The registered office is 1a Orgreave Road, Dorehouse Industrial Estate, Sheffield, S13 9LQ.
1.1
Accounting convention
These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.
The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.
The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.
1.2
Going concern
The Company made an operating profit in the year of £0.7m and has net assets of £1.5m. true
In considering the adoption of the going concern basis, the directors have prepared forecasts for the period to 30 September 2026. The sales reflect underlying turnover and a strong pipeline. Whilst new larger customers have been secured in recent years, the company continues its policy to not include any such figures in the forecasts.
Over the period of the forecasts the business is profitable and cash generative and remains within its existing borrowing facilities.
In addition, the Company has improved it financial position, with external long term debt having reduced by £0.4m (falling from £1.5m to £1.1m). At the same time, new funding has been secured, providing additional finance of £1m.
On this basis the Directors are confident that they can meet their debts as they fall due and have prepared the accounts on the going concern basis.
1.3
Turnover
Turnover is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business, and is shown net of VAT and other sales related taxes. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.
When cash inflows are deferred and represent a financing arrangement, the fair value of the consideration is the present value of the future receipts. The difference between the fair value of the consideration and the nominal amount received is recognised as interest income.
KILLIS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
1
Accounting policies
(Continued)
- 13 -
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 on dispatch of the goods), 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.
Revenue from contracts for the provision of professional services is recognised by reference to the stage of completion when the stage of completion, costs incurred and costs to complete can be estimated reliably. The stage of completion is calculated by comparing costs incurred, mainly in relation to contractual hourly staff rates and materials, as a proportion of total costs. Where the outcome cannot be estimated reliably, revenue is recognised only to the extent of the expenses recognised that it is probable will be recovered.
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 5 years
For the purposes of impairment testing, goodwill is allocated to the cash-generating units expected to benefit from the acquisition. Cash-generating units to which goodwill has been allocated are tested for impairment at least annually, or more frequently when there is an indication that the unit may be impaired. If the recoverable amount of the cash-generating unit is less than the carrying amount of the unit, the impairment loss is allocated first to reduce the carrying amount of any goodwill allocated to the unit and then to the other assets of the unit pro-rata on the basis of the carrying amount of each asset in the unit.
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
4% Straight line
Plant and machinery
25% Straight line
Computer equipment
20% Straight line
Motor vehicles
25% Reducing balance
Hire equipment
20% Straight line
The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is credited or charged to profit or loss.
KILLIS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
1
Accounting policies
(Continued)
- 14 -
Freehold properties are held at current market value, based on an independent valuation, and being the estimated amount for which an asset or liability should exchange on the valuation date between a willing buyer and a willing seller in an arm’s length transaction after proper marketing and where the parties have each acted knowledgeably, prudently and without compulsion, with the valuation benchmarked to transactions in similar properties. The changes in value is reported directly in the income statement.
Assets in the course of construction are not depreciated.
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.
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. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition.
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.
KILLIS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
1
Accounting policies
(Continued)
- 15 -
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.
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.
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.
KILLIS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
1
Accounting policies
(Continued)
- 16 -
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 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.
Other financial liabilities
Derivatives, including interest rate swaps and forward foreign exchange contracts, are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in profit or loss in finance costs or finance income as appropriate, unless hedge accounting is applied and the hedge is a cash flow hedge.
Debt instruments that do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured at fair value through profit or loss. Debt instruments may be designated as being measured at fair value though profit or loss to eliminate or reduce an accounting mismatch or if the instruments are measured and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy.
Derecognition of financial liabilities
Financial liabilities are derecognised when the company’s contractual obligations expire or are discharged or cancelled.
KILLIS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
1
Accounting policies
(Continued)
- 17 -
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.
1.13
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
KILLIS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
1
Accounting policies
(Continued)
- 18 -
1.14
Leases
Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessees. All other leases are classified as operating leases.
Assets held under finance leases are recognised as assets at the lower of the assets fair value at the date of inception and the present value of the minimum lease payments. The related liability is included in the balance sheet as a finance lease obligation. Lease payments are treated as consisting of capital and interest elements. The interest is charged to profit or loss so as to produce a constant periodic rate of interest on the remaining balance of the liability.
Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leases asset are consumed.
1.15
Foreign exchange
Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation in the period are included in profit or loss.
2
Change in accounting policy
During the year the Company adopted a policy of revaluation for freehold property.
3
Judgements and key sources of estimation uncertainty
In the application of the company’s accounting policies, the director is 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.
KILLIS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 19 -
4
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2024
2023
Number
Number
Total
67
63
5
Intangible fixed assets
Goodwill
£
Cost
At 1 October 2023 and 30 September 2024
5,000
Amortisation and impairment
At 1 October 2023 and 30 September 2024
5,000
Carrying amount
At 30 September 2024
At 30 September 2023
KILLIS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 20 -
6
Tangible fixed assets
Land and buildings
Plant and machinery etc
Hire equipment
Total
£
£
£
£
Cost or valuation
At 1 October 2023
1,359,221
791,779
802,765
2,953,765
Additions
185,642
10,157
46,227
242,026
Disposals
(28,620)
(303,869)
(332,489)
Revaluation
55,137
55,137
At 30 September 2024
1,600,000
773,316
545,123
2,918,439
Depreciation and impairment
At 1 October 2023
121,338
319,351
187,564
628,253
Depreciation charged in the year
60,379
123,990
139,229
323,598
Eliminated in respect of disposals
(12,633)
(97,541)
(110,174)
Revaluation
(139,050)
(139,050)
At 30 September 2024
42,667
430,708
229,252
702,627
Carrying amount
At 30 September 2024
1,557,333
342,608
315,871
2,215,812
At 30 September 2023
1,237,883
472,428
615,201
2,325,512
Land and buildings with a carrying amount of £1.6m (and an original cost of £1.545m, depreciation of £0.14m and a carrying value of £1.4m) were revalued in the year by independent valuers not connected with the company on the basis of market value. The valuation conforms to International Valuation Standards and was based on current market value.
2024
2023
£
£
Cost
1,544,863
1,359,221
Accumulated depreciation
(139,050)
(121,338)
Carrying value
1,405,813
1,237,883
Hire equipment is supplied to customers under short term fixed rate agreements.
KILLIS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 21 -
7
Debtors
2024
2023
Amounts falling due within one year:
£
£
Trade debtors
1,802,953
2,003,694
Amounts owed by group undertakings
3,824
Other debtors
567,869
700,936
2,374,646
2,704,630
8
Creditors: amounts falling due within one year
2024
2023
£
£
Bank loans and overdrafts
179,949
161,118
Trade creditors
2,199,541
2,334,143
Amounts owed to group undertakings
44,415
Corporation tax
158,850
25,379
Other taxation and social security
349,444
250,908
Other creditors
2,095,055
2,399,103
5,027,254
5,170,651
Borrowings are secured by fixed and floating charges over the assets of the company.
Bank loans and overdrafts include:
A mortgage of £63,007 (2023 - £56,468) which is secured against the related freehold land and buildings;
CBILs loans of £54,622 (2023 - £48,957); and
Other loans of £60,983 (2023 - £55,693).
Other creditors includes:
Net obligations under finance leases and hire purchase contracts of £248,608 (2023 - £218,412) which are secured by fixed charges on the assets concerned;
Other loans of £672,943 (2023 - £1,339,985) secured on trade debtors; and
An interest free related party loan from a shareholder of the parent company of £250,397 (2023 - £168,828), of which £50,000 falls due after more than one year.
KILLIS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 22 -
9
Creditors: amounts falling due after more than one year
2024
2023
£
£
Bank loans and overdrafts
801,584
979,072
Other creditors
282,270
518,310
1,083,854
1,497,382
Bank loans and overdrafts includes:
A mortgage of £598,970 (2023 - £660,853) which is secured against the related freehold land and buildings;
The CBILs loan of £66,329 (2023 - £120,951); and
Other loans of £136,285 (2023 - £197,268).
Other creditors includes net obligations under finance lease and hire purchase contracts of £282,270 (2023 - £518,310) which are secured by fixed charges on the assets concerned, and a portion of the shareholder loan referred to in note 8 of £50,000 (2023 - £nil).
10
Called up share capital
2024
2023
£
£
Ordinary share capital
Issued and fully paid
95 Ordinary shares of £1 each
95
95
5 Ordinary B shares of £1 each
5
5
100
100
11
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
£
£
15,284
135,677
12
Parent company
KILLIS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
12
Parent company
(Continued)
- 23 -
The company’s immediate and ultimate parent undertaking is TL Killis & Sons Limited, whose registered office and principal place of business is 6 Orgreave Road, Dorehouse Industrial Estate, Sheffield, United Kingdom, S13 9LQ
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