Company registration number 05946437 (England and Wales)
KUUSAKOSKI LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
KUUSAKOSKI LIMITED
COMPANY INFORMATION
Directors
T Kuusakoski
S Goring
M Kuusilehto
Company number
05946437
Registered office
Crown Works
Faraday Road
Sheffield
S9 3XZ
Auditor
BHP LLP
2 Rutland Park
Sheffield
S10 2PD
Bankers
Nordea Bank AB (publ)
6th Floor
5 Aldermanbury Square
London
EC2V 7AZ
KUUSAKOSKI LIMITED
CONTENTS
Page
Strategic report
1 - 4
Directors' report
5 - 6
Independent auditor's report
7 - 9
Statement of comprehensive income
10
Balance sheet
11
Statement of changes in equity
12
Notes to the financial statements
13 - 25
KUUSAKOSKI LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2024
- 1 -
The directors present the strategic report for the year ended 31 December 2024.
Business Review
The principal activity of Kuusakoski Ltd remains that of metal recycling and trading.
The year ending December 2024, closed with sales exceeding £70m, this represented an 11% decrease on the previous year’s results (£80.7m):
| | |
Total Revenue Gross Margin Margin % Sales Volume EBITDA | 71,658 4,654 6.5% 48.2mt 1,764 | |
The total sales volume fell slightly under budget but was an improvement on the previous year’s levels, reaching just over 48.0 thousand tons. Sourcing levels remained strong to support sales levels, despite difficult market conditions, geopolitical challenges and a weaker economic outlook.
Despite continued product demand, the gross margin saw a decline to 6.5% over the period. This was a result of lower material values throughout 2024, changing product demand and increased costs.
Despite reduced revenue during the year, the directors continued to endorse investments in essential processing plant and systems. This supported the company’s sustainability targets and future electrification goals. These investments aim to reduce scope emissions and drive down future processing costs, whilst increasing operational capability and sales flexibility.
KUUSAKOSKI LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 2 -
Principal Risks and Uncertainties
The global industry continued to face myriad risks and uncertainties throughout the year. Ongoing global crises, such as the Ukrainian and Middle Eastern conflicts, also the shifting international and domestic political landscapes impacted the wider industry and consumer confidence. This resulted in unstable energy costs, higher interest rates, and inflation, placing additional uncertainty on the business.
As a result, European Stainless melters initiated production cuts and reduced raw material intake in the event of weaker downstream sales, a consequence of lower demand from the automotive and construction sectors. The net effect being a surplus of recycled raw material throughout Q2/3, driving average material prices lower.
The business remains exposed to movements in the nickel market, which directly affects stainless scrap material values. Nickel, the key element in the production of stainless steel, continued a downward trend throughout 2024, seeing a further 7.7% decline in value and a 7.4% fall in global production. Compared to other base metals across the LME metal complex nickel remained a poor performer, presenting challenging trading conditions for the recycling industry. The latter half of 2024 saw Class 1 nickel swing towards an increasing surplus. Despite a swing in the west towards greener production, a surge in the influx of Indonesian Class 2 nickel, coupled with growing appetite from European consumers to utilize this lower-cost material in their production, did little to ease pressure on the metal. This trend is likely to continue beyond 2024.
Despite this, the UK demand for stainless steel and stainless based products remained somewhat optimistic, allowing Kuusakoski Ltd to retain a leading position in the domestic sector.
The company continues to focus on its product flexibility, added value products, and strong consumer relationships. Kuusakoski ensures quality, service, sustainability, and innovation remain key tenets of its products, distinguishing it from those of its competitors. The directors carefully review both existing and potential market opportunities, with a view to identifying and mitigating risks.
Sales risks
The majority of the company’s products continued to be sold domestically. This strategy continued to yield positive results, albeit lower than the previous year. International investment into a major UK stainless producer looks set to see UK domestic production capacity increase significantly in the future. The directors believe a continued focus on the current sales strategy remains in the best interests of the company with scope for future growth. The reported long-term outlook for both the domestic stainless industry remains positive.
The directors took responsive action throughout 2024 to manage stocks and respond to difficult market conditions and demand. Continuous monitoring of the trade, working closely with industry bodies and industry press allowed identification of market trends, mitigating risks and identifying new opportunities.
Supply chain
Ongoing global conflicts, such as the Red Sea crisis, continued to place an increased risk of supply chain disruption. Along with wider geopolitical economic instability, this had the potential to impact customer demand and margins. Instability in the energy sector, rising energy costs and high raw material prices, continued to impact operations throughout 2024.
2024 saw a focused drive towards cheaper suppliers of consumables, production and plant efficiencies throughout all areas of the business. This remained under constant review throughout the year. Responsive action was taken to ensure the company worked closely with new and long-standing suppliers and customers, to ensure supply chain disruption was minimized wherever possible. Positive steps were made throughout the year with a view to business stability, security and continued supply of raw material.
KUUSAKOSKI LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 3 -
QEHS risks
The company strives to keep quality risks to a minimum. As such, the company’s management controls are constantly reviewed and improved. Additionally, the company is regularly audited to ensure management and quality systems comply with the company’s ISO 9001 accreditation.
The management of environmental issues at Kuusakoski is based on continuously developing operations and minimizing adverse environmental impacts. Our operations are guided by site-specific environmental management systems that comply with international standards. Environmental management systems are a key part of our site management system and the functionality of our sites. Compliance is monitored through internal and external audits. Our principle is that all sites with significant environmental aspects have management systems in accordance with company and local standards. The environmental impacts arising from the handling and processing of recycled materials were well controlled throughout 2024.
Due to the nature of the business, health and safety risks remain comparatively high when compared to other industry sectors. 2024 saw the company increase its focus on its health and safety commitments as a responsible employer, with investment in new digital systems to support QEHS. Adherence to group QEHS KPI’s, further investment in site health and safety, coupled with robust and progressive training programs for all operatives, continue to form the basis of safeguarding the company’s duty of care.
Key Performance Indicators
The directors closely monitor both the material margin and direct overhead, as key performance indicators. Whilst the material margin fell, the direct overhead remained satisfactory throughout the year. The company’s QEHS responsibilities are also stringently recorded and form additional KPI’s, again remaining satisfactory throughout 2024.
Future Developments
The directors anticipate the business environment will continue to be increasingly competitive. They believe that the company is in a stable financial position and that the risks that have been identified are being well managed. With a careful focus on efficiency improvements and diversity in its product range, as well as continuing to review the state of the market and the activities of competitors, the directors are confident in the company's ability to maintain and build on this position.
Financial Instruments
The company has a normal level of exposure to price, credit, liquidity and cash flow risks arising from trading activities which are largely conducted in sterling. The company does not enter into formally designated hedging arrangements at a local level. All financial activity is closely monitored by the directors and group financial departments.
KUUSAKOSKI LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 4 -
Sustainability information statement
2024 saw Kuusakoski continue its journey of Sustainable development through electrification & process efficiency.
Early 2024 saw delivery on our pledge to convert to solely renewable energy. Our site is now powered from Solar, Wind and Hydro only, cutting our company emissions significantly in our energy intensive operation.
In collaboration with our customers, we have worked hard to enhance our process monitoring, resulting in more energy efficient processing whilst increasing product density. As a result, we have delivered on increased stowage on freight, whilst reducing the energy required by our customer within the melt process.
We are delighted to strengthen our collaborations further with our customers in offering Closed-Loop movement of recycled Stainless products, thus reducing logistical third-party movements and handling.
Following on from the successful implementation of our first all-electric Tele-Handler in 2023, we were delighted to take delivery of our second all-electric truck early in 2024, lowering our Carbon footprint further.
During the year we were delighted to have signed an agreement with the River Stewardship Company, to work in close partnership in keeping our waterways and natural habitats clean and thriving. As part of this partnership, we have been pleased to donate equipment whilst working together to learn about each other's operations to enhance future collaboration.
We are pleased that all Senior Management now drive all-electric vehicles, as we actively promote clean green zero emissions in both our business and personal core values. The installation of additional electric car charging stations for the use of visitors further promotes this drive.
At the end of 2024, we engaged with an energy consulting company to conduct a full Energy Audit for our site, aimed at delivering additional cost saving initiatives. We look forward to this being conducted early in 2025.
S Goring
Director
18 March 2025
KUUSAKOSKI LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2024
- 5 -
The directors present their annual report and financial statements for the year ended 31 December 2024.
Principal activities
The principal activity of the company is that of metal merchants.
Results and dividends
The results for the year are set out on page 10.
Ordinary dividends were paid amounting to £1,281,000. The directors recommend payment of a final dividend amounting to £840,000.
Directors
The directors who held office during the year and up to the date of signature of the financial statements were as follows:
T Kuusakoski
S Goring
M Kuusilehto
Auditor
The auditor, BHP LLP, are deemed to be reappointed under section 487(2) of the Companies Act 2006.
Statement of directors' responsibilities
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; 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.
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.
Medium-sized companies exemption
This report has been prepared in accordance with the provisions applicable to companies entitled to the medium-sized companies exemption.
KUUSAKOSKI LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 6 -
On behalf of the board
S Goring
Director
18 March 2025
KUUSAKOSKI LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF KUUSAKOSKI LIMITED
- 7 -
Opinion
We have audited the financial statements of Kuusakoski Limited (the 'company') for the year ended 31 December 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 December 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.
KUUSAKOSKI LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF KUUSAKOSKI LIMITED (CONTINUED)
- 8 -
Matters on which we are required to report by exception
In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the directors' report.
We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:
adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
the financial statements are not in agreement with the accounting records and returns; or
certain disclosures of directors' remuneration specified by law are not made; or
we have not received all the information and explanations we require for our audit.
Responsibilities of directors
As explained more fully in the directors' responsibilities statement, 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.
Extent to which the audit was considered capable of detecting irregularities, including fraud
Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was as follows:
the engagement partner ensured that the engagement team collectively had the appropriate competence, capabilities and skills to identify or recognise non-compliance with applicable laws and regulations;
we identified the laws and regulations applicable to the company through discussions with directors, and from our commercial knowledge and experience of the sector;
we focused on specific laws and regulations which we considered may have a direct material effect on the financial statements or the operations of the company, including legislation such as the Companies Act 2006, taxation legislation, data protection, anti-bribery, employment, environmental and health and safety legislation;
we assessed the extent of compliance with the laws and regulations identified above through making enquiries of management and inspecting legal correspondence; and
identified laws and regulations were communicated within the audit team regularly and the team remained alert to instances of non-compliance throughout the audit.
KUUSAKOSKI LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF KUUSAKOSKI LIMITED (CONTINUED)
- 9 -
We assessed the susceptibility of the company’s financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by:
making enquiries of management as to where they considered there was susceptibility to fraud, their knowledge of actual, suspected and alleged fraud;
considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations;
To address the risk of fraud through management bias and override of controls, we:
performed analytical procedures to identify any unusual or unexpected relationships;
tested journal entries to identify unusual transactions;
assessed whether judgements and assumptions made in determining the accounting estimates were indicative of potential bias;
investigated the rationale behind significant or unusual transactions; and
In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to:
agreeing financial statement disclosures to underlying supporting documentation;
enquiring of management as to actual and potential litigation and claims;
reviewing correspondence with HMRC
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.
Paul Winwood (Senior Statutory Auditor)
For and on behalf of BHP LLP, Statutory Auditor
Chartered Accountants
2 Rutland Park
Sheffield
S10 2PD
18 March 2025
KUUSAKOSKI LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2024
- 10 -
2024
2023
Notes
£
£
Turnover
3
71,658,140
80,700,283
Cost of sales
(67,003,727)
(74,515,382)
Gross profit
4,654,413
6,184,901
Administrative expenses
(3,381,231)
(3,619,142)
Operating profit
4
1,273,182
2,565,759
Interest receivable and similar income
8
88,756
94,115
Interest payable and similar expenses
9
(803,769)
(1,118,064)
Amounts written off investments
10
-
(10)
Profit before taxation
558,169
1,541,800
Tax on profit
11
(71,727)
(362,889)
Profit for the financial year
486,442
1,178,911
The profit and loss account has been prepared on the basis that all operations are continuing operations.
KUUSAKOSKI LIMITED
BALANCE SHEET
AS AT 31 DECEMBER 2024
31 December 2024
- 11 -
2024
2023
Notes
£
£
£
£
Fixed assets
Tangible assets
14
2,185,261
2,271,479
Current assets
Stocks
15
5,826,720
4,013,921
Debtors
16
667,378
360,086
Cash at bank and in hand
3,076,317
5,577,819
9,570,415
9,951,826
Creditors: amounts falling due within one year
17
(4,167,487)
(3,915,599)
Net current assets
5,402,928
6,036,227
Total assets less current liabilities
7,588,189
8,307,706
Creditors: amounts falling due after more than one year
18
(75,041)
Provisions for liabilities
Deferred tax liability
20
337,000
337,000
(337,000)
(337,000)
Net assets
7,176,148
7,970,706
Capital and reserves
Called up share capital
22
800,000
800,000
Profit and loss reserves
6,376,148
7,170,706
Total equity
7,176,148
7,970,706
These financial statements have been prepared in accordance with the provisions relating to medium-sized companies.
The financial statements were approved by the board of directors and authorised for issue on 18 March 2025 and are signed on its behalf by:
S Goring
M Kuusilehto
Director
Director
Company registration number 05946437 (England and Wales)
KUUSAKOSKI LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2024
- 12 -
Share capital
Profit and loss reserves
Total
Notes
£
£
£
Balance at 1 January 2023
800,000
7,761,795
8,561,795
Year ended 31 December 2023:
Profit and total comprehensive income
-
1,178,911
1,178,911
Dividends
12
-
(1,770,000)
(1,770,000)
Balance at 31 December 2023
800,000
7,170,706
7,970,706
Year ended 31 December 2024:
Profit and total comprehensive income
-
486,442
486,442
Dividends
12
-
(1,281,000)
(1,281,000)
Balance at 31 December 2024
800,000
6,376,148
7,176,148
KUUSAKOSKI LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
- 13 -
1
Accounting policies
Company information
Kuusakoski Limited is a private company limited by shares incorporated in England and Wales. The registered office is Crown Works, Faraday Road, Sheffield, S9 3XZ.
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.
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:
Section 7 ‘Statement of Cash Flows’: Presentation of a statement of cash flow and related notes and disclosures;
Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instrument Issues: Interest income/expense and net gains/losses for financial instruments not measured at fair value; basis of determining fair values; details of collateral, loan defaults or breaches, details of hedges, hedging fair value changes recognised in profit or loss and in other comprehensive income;
Section 26 ‘Share based Payment’: Share-based payment expense charged to profit or loss, reconciliation of opening and closing number and weighted average exercise price of share options, how the fair value of options granted was measured, measurement and carrying amount of liabilities for cash-settled share-based payments, explanation of modifications to arrangements;
Section 33 ‘Related Party Disclosures’: Compensation for key management personnel.
Kuusakoski Limited is a wholly owned subsidiary of Kuusakoski Group Oy and the results of Kuusakoski Limited are included in the consolidated financial statements of Kuusakoski Group Oy which are available from Metsanneidonkuja 10, 02130 Espoo, Finland.
1.2
Going concern
Atruet the time of approving the financial statements, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. In making this assessment, the directors have considered the company's relationship with key customers and suppliers, working capital requirements and potential risks to the business as set out in the Strategic Report. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.
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.
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.
KUUSAKOSKI LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
1
Accounting policies
(Continued)
- 14 -
1.4
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 Freehold
6.66% straight line
Plant and machinery
25% reducing balance
Fixtures, fittings & equipment
15% reducing balance
Motor vehicles
25% 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.
1.5
Impairment of fixed assets
At each reporting period end date, the company reviews the carrying amounts of its tangible 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.
1.6
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.
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.
1.7
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.
1.8
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.
KUUSAKOSKI LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
1
Accounting policies
(Continued)
- 15 -
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.
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.
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.
KUUSAKOSKI LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
1
Accounting policies
(Continued)
- 16 -
Basic financial liabilities
Basic financial liabilities, including creditors and loans from fellow group companies, 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 through 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.
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.
Derecognition of financial liabilities
Financial liabilities are derecognised when the company’s contractual obligations expire or are discharged or cancelled.
1.9
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.
1.10
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.
KUUSAKOSKI LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
1
Accounting policies
(Continued)
- 17 -
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.
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.
1.11
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.
1.12
Retirement benefits
The pension costs charged in the financial statements represent the contributions payable by the company during the year.
1.13
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.
1.14
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.
KUUSAKOSKI LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 18 -
2
Judgements and key sources of estimation uncertainty
The preparation of financial information required management to make judgements, estimates and assumptions that affect the application of accounting policies and the reported amounts of assets and liabilities, income and expenses. Judgements and estimates are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. The resulting estimates may differ from the related actual results.
There are no key judgements, estimated or assumptions that have been made by the directors in the preparation of these financial statements.
3
Turnover and other revenue
An analysis of the company's turnover is as follows:
2024
2023
£
£
Turnover analysed by class of business
Derived from the principal activity
71,658,140
80,700,283
2024
2023
£
£
Turnover analysed by geographical market
UK
71,157,024
80,646,110
Europe
501,116
54,173
71,658,140
80,700,283
2024
2023
£
£
Other revenue
Interest income
88,756
94,115
4
Operating profit
2024
2023
Operating profit for the year is stated after charging/(crediting):
£
£
Exchange losses
110,918
95,836
Depreciation of owned tangible fixed assets
482,344
570,708
Depreciation of tangible fixed assets held under finance leases
8,270
-
Profit on disposal of tangible fixed assets
-
(24,078)
Operating lease charges
193,132
123,616
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
20,850
19,825
KUUSAKOSKI LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 19 -
6
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2024
2023
Number
Number
Administration
8
8
Production
21
20
Total
29
28
Their aggregate remuneration comprised:
2024
2023
£
£
Wages and salaries
1,513,635
1,641,267
Social security costs
168,550
185,736
Pension costs
108,853
91,462
1,791,038
1,918,465
7
Directors' remuneration
2024
2023
£
£
Remuneration for qualifying services
200,343
305,804
Company pension contributions to defined contribution schemes
21,930
-
222,273
305,804
Remuneration disclosed above include the following amounts paid to the highest paid director:
2024
2023
£
£
Remuneration for qualifying services
200,343
305,804
Company pension contributions to defined contribution schemes
21,930
-
8
Interest receivable and similar income
2024
2023
£
£
Interest income
Interest on bank deposits
88,756
94,115
KUUSAKOSKI LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 20 -
9
Interest payable and similar expenses
2024
2023
£
£
Interest on invoice finance arrangements
334,388
1,118,064
Interest on finance leases and hire purchase contracts
699
-
Other interest
468,682
803,769
1,118,064
10
Amounts written off investments
2024
2023
£
£
Other gains and losses
-
(10)
11
Taxation
2024
2023
£
£
Current tax
UK corporation tax on profits for the current period
137,598
397,517
Adjustments in respect of prior periods
(65,871)
(2,628)
Total current tax
71,727
394,889
Deferred tax
Origination and reversal of timing differences
(32,000)
Total tax charge
71,727
362,889
KUUSAKOSKI LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
11
Taxation
(Continued)
- 21 -
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
558,169
1,541,800
Expected tax charge based on the standard rate of corporation tax in the UK of 25.00% (2023: 23.52%)
139,542
362,631
Tax effect of expenses that are not deductible in determining taxable profit
953
1,034
Change in unrecognised deferred tax assets
19
Adjustments in respect of prior years
(65,871)
(2,628)
Effect of change in corporation tax rate
9
Permanent capital allowances in excess of depreciation
5,423
Other permanent differences
216
3,719
Other tax adjustments
(8,536)
Effect of changes in deferred tax rates
(1,895)
Taxation charge for the year
71,727
362,889
12
Dividends
2024
2023
£
£
Final paid
1,281,000
1,770,000
The proposed final dividend for the year ended 31 December 2024 is:
2024
2023
Per share
Total
Total
£
£
£
Ordinary shares
10.50
840,000
The proposed final dividend is subject to approval by shareholders and has not been included as a liability in these financial statements.
KUUSAKOSKI LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 22 -
13
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:
Fixed asset investments
-
10
Recognised in:
Amounts written off investments
-
10
The impairment losses in respect of financial assets are recognised in other gains and losses in the profit and loss account.
14
Tangible fixed assets
Land and buildings Freehold
Plant and machinery
Fixtures, fittings & equipment
Motor vehicles
Total
£
£
£
£
£
Cost
At 1 January 2024
1,240,549
4,236,072
81,299
1,988
5,559,908
Additions
298,523
6,625
99,248
404,396
At 31 December 2024
1,240,549
4,534,595
87,924
101,236
5,964,304
Depreciation and impairment
At 1 January 2024
582,880
2,636,605
66,956
1,988
3,288,429
Depreciation charged in the year
21,996
458,742
1,606
8,270
490,614
At 31 December 2024
604,876
3,095,347
68,562
10,258
3,779,043
Carrying amount
At 31 December 2024
635,673
1,439,248
19,362
90,978
2,185,261
At 31 December 2023
657,669
1,599,467
14,343
2,271,479
The net carrying value of tangible fixed assets includes the following in respect of assets held under finance leases or hire purchase contracts.
2024
2023
£
£
Motor vehicles
90,978
KUUSAKOSKI LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 23 -
15
Stocks
2024
2023
£
£
Raw materials and consumables
5,826,720
4,013,921
16
Debtors
2024
2023
Amounts falling due within one year:
£
£
Trade debtors
391,487
284,136
Corporation tax recoverable
196,000
Other debtors
555
555
Prepayments and accrued income
79,336
75,395
667,378
360,086
17
Creditors: amounts falling due within one year
2024
2023
Notes
£
£
Obligations under finance leases
19
14,234
Trade creditors
3,578,605
2,765,013
Amounts owed to group undertakings
99,762
77,173
Corporation tax
94,001
Other taxation and social security
214,617
393,903
Other creditors
17,155
Accruals and deferred income
243,114
585,509
4,167,487
3,915,599
18
Creditors: amounts falling due after more than one year
2024
2023
Notes
£
£
Obligations under finance leases
19
75,041
19
Finance lease obligations
2024
2023
Future minimum lease payments due under finance leases:
£
£
Within one year
14,234
In two to five years
75,041
89,275
KUUSAKOSKI LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
19
Finance lease obligations
(Continued)
- 24 -
Finance lease payments represent rentals payable by the company for certain items of motor vehicles. Leases include purchase options at the end of the lease period, and no restrictions are placed on the use of the assets. The average lease term is 4 years. All leases are on a fixed repayment basis and no arrangements have been entered into for contingent rental payments.
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:
£
£
ACAs
337,000
337,000
There were no deferred tax movements in the year.
21
Retirement benefit schemes
2024
2023
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
108,853
91,462
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.
22
Share capital
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £10 each
80,000
80,000
800,000
800,000
23
Operating lease commitments
Lessee
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
149,297
80,061
Between two and five years
243,113
228,346
392,410
308,407
KUUSAKOSKI LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 25 -
24
Capital commitments
Amounts contracted for but not provided in the financial statements:
2024
2023
£
£
Acquisition of tangible fixed assets
10,000
292,163
25
Related party transactions
Transactions with related parties
The company has taken advantage of the exemption contained in FRS 102 para 33.1A not to disclose transactions with group companies.
26
Ultimate controlling party
The immediate and ultimate parent undertaking and controlling party is Kuusakoski Group Oy, a company registered in Finland which prepares group financial statements.
The registered office of Kuusakoski Group Oy is Metsanneidonkuja 10, 02130 Espoo, Finland.
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