| REGISTERED NUMBER: 11545782 (England and Wales) |
| KENTON BLACK GROUP LIMITED |
| GROUP STRATEGIC REPORT, |
| REPORT OF THE DIRECTORS AND |
| CONSOLIDATED FINANCIAL STATEMENTS |
| FOR THE YEAR ENDED 31 AUGUST 2024 |
| REGISTERED NUMBER: 11545782 (England and Wales) |
| KENTON BLACK GROUP LIMITED |
| GROUP STRATEGIC REPORT, |
| REPORT OF THE DIRECTORS AND |
| CONSOLIDATED FINANCIAL STATEMENTS |
| FOR THE YEAR ENDED 31 AUGUST 2024 |
| KENTON BLACK GROUP LIMITED (REGISTERED NUMBER: 11545782) |
| CONTENTS OF THE CONSOLIDATED FINANCIAL STATEMENTS |
| FOR THE YEAR ENDED 31 AUGUST 2024 |
| Page |
| Company Information | 1 |
| Group Strategic Report | 2 |
| Report of the Directors | 3 |
| Report of the Independent Auditors | 5 |
| Consolidated Income Statement | 8 |
| Consolidated Other Comprehensive Income | 9 |
| Consolidated Statement of Financial Position | 10 |
| Company Statement of Financial Position | 11 |
| Consolidated Statement of Changes in Equity | 12 |
| Company Statement of Changes in Equity | 13 |
| Consolidated Statement of Cash Flows | 14 |
| Notes to the Consolidated Statement of Cash Flows | 15 |
| Notes to the Consolidated Financial Statements | 17 |
| KENTON BLACK GROUP LIMITED |
| COMPANY INFORMATION |
| FOR THE YEAR ENDED 31 AUGUST 2024 |
| DIRECTORS: |
| REGISTERED OFFICE: |
| REGISTERED NUMBER: |
| AUDITORS: |
| Chartered Accountants and Statutory Auditor |
| 15-17 Church Street |
| Stourbridge |
| West Midlands |
| DY8 1LU |
| KENTON BLACK GROUP LIMITED (REGISTERED NUMBER: 11545782) |
| GROUP STRATEGIC REPORT |
| FOR THE YEAR ENDED 31 AUGUST 2024 |
| The directors present their strategic report of the company and the group for the year ended 31 August 2024. |
| REVIEW OF BUSINESS |
| The results for the year, as shown in the income statement, show gross profit of £4.1m (2023 - £4.2m), gross margin of 18.5% (2023 - 19.2%) and profit before tax of £297k (2023 - £16k). The results reflect the market challenges impacting the construction sector and the investment undertaken by the group in new technologies, learning and development and staff. The directors consider that the investment in 2024 provides the group with a strong foundation for organic growth in 2025. |
| FUTURE DEVELOPMENTS |
| The group continues to invest in its core areas whilst also pushing into new markets both in the UK and internationally. The directors see this as diversification of risk and an opportunity for growth. |
| PRINCIPAL RISKS AND UNCERTAINTIES |
| The group uses various financial instruments including loans and various other items such as debtors and creditors that arise from its operations. The main purpose of these financial instruments is to raise finance for the group's operations. |
| The existence of these financial instruments exposes the group to several financial risks, which are covered in more detail below. The directors review and agree policies for managing these risks. These policies have remained unchanged from the previous year. |
| Economic Risk |
| The core construction business is heavily reliant on both UK and global economic factors. The stronger the industry, the increase in requirement for recruitment services. |
| Credit Risk |
| Rising material and labour costs combined with interest rate increases and repayment of COVID loans are putting a huge strain on cash flow for many businesses, especially in the construction sector. The risk of customers defaulting on debt is a concern, along with the availability of credit insurance which has been tightened significantly. |
| All customers are subject to credit verification procedures. Trade debtors are monitored on an ongoing basis and we also continue to insure our debt against default. |
| Interest Rate Risk |
| The group finances its operations through a combination of retained profits, bank loans, an invoice discounting facility and finance leases and hire purchase contracts. The group exposure to interest rate fluctuations on its borrowings is managed by the use of both fixed and variable rates. |
| Liquidity Risk |
| The group seeks to manage financial risk by ensuring liquidity is available to meet foreseeable needs and to invest cash assets safely and effectively. Short term flexibility is achieved by an invoice discounting facility. |
| ON BEHALF OF THE BOARD: |
| KENTON BLACK GROUP LIMITED (REGISTERED NUMBER: 11545782) |
| REPORT OF THE DIRECTORS |
| FOR THE YEAR ENDED 31 AUGUST 2024 |
| The directors present their report with the financial statements of the company and the group for the year ended 31 August 2024. |
| PRINCIPAL ACTIVITY |
| The principal activity of the group in the year under review was that of recruitment consultancy. |
| DIVIDENDS |
| The total distribution of dividends for the year ended 31 August 2024 will be £ 179,232 . |
| DIRECTORS |
| The directors shown below have held office during the whole of the period from 1 September 2023 to the date of this report. |
| Other changes in directors holding office are as follows: |
| STATEMENT OF DIRECTORS' RESPONSIBILITIES |
| The directors are responsible for preparing the Group Strategic Report, the Report of the Directors 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 the group and of the profit or loss of the group 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; |
| - | 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 and the group's transactions and disclose with reasonable accuracy at any time the financial position of the company and the group 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 the group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. |
| STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS |
| So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the group's auditors are unaware, and each director has taken all the steps that he ought to have taken as a director in order to make himself aware of any relevant audit information and to establish that the group's auditors are aware of that information. |
| KENTON BLACK GROUP LIMITED (REGISTERED NUMBER: 11545782) |
| REPORT OF THE DIRECTORS |
| FOR THE YEAR ENDED 31 AUGUST 2024 |
| AUDITORS |
| The auditors, Folkes Worton LLP, were appointed on 12 October 2023 and will be proposed for re-appointment at the forthcoming Annual General Meeting. |
| ON BEHALF OF THE BOARD: |
| REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
| KENTON BLACK GROUP LIMITED |
| Opinion |
| We have audited the financial statements of Kenton Black Group Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 August 2024 which comprise the Consolidated Income Statement, Consolidated Other Comprehensive Income, Consolidated Statement of Financial Position, Company Statement of Financial Position, Consolidated Statement of Changes in Equity, Company Statement of Changes in Equity, Consolidated Statement of Cash Flows and Notes to the Consolidated Statement of Cash Flows, Notes to the Financial Statements, including a summary of 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 group's and of the parent company affairs as at 31 August 2024 and of the group's 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. |
| Basis for opinion |
| We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the group 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 group's and the parent 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. |
| Other information |
| The directors are responsible for the other information. The other information comprises the information in the Group Strategic Report and the Report of the Directors, but does not include the financial statements and our Report of the Auditors thereon. |
| 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. |
| In connection with our audit of the financial statements, 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 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. |
| REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
| KENTON BLACK GROUP LIMITED |
| Opinions on other matters prescribed by the Companies Act 2006 |
| In our opinion, based on the work undertaken in the course of the audit: |
| - | the information given in the Group Strategic Report and the Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and |
| - | the Group Strategic Report and the Report of the Directors 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 group and the parent company and its environment obtained in the course of the audit, we have not identified material misstatements in the Group Strategic Report or the Report of the Directors. |
| We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion: |
| - | adequate accounting records have not been kept by the parent company, or returns adequate for our audit have not been received from branches not visited by us; or |
| - | the parent company 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 Statement of Directors' Responsibilities set out on page three, 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 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 group's and the parent 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 group or the parent company or to cease operations, or have no realistic alternative but to do so. |
| REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
| KENTON BLACK GROUP LIMITED |
| Auditors' responsibilities for the audit of the financial statements |
| Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue a Report of the Auditors that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements. |
| Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below. |
| We gained an understanding of the legal and regulatory framework applicable to the group and company and the industries in which they operate, and considered the risk of acts by the group and company that were contrary to applicable laws and regulations, including fraud. We designed audit procedures to respond to the risk, recognising that the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentations, or through collusion. |
| We focused on laws and regulations which could give rise to a material misstatement in the financial statements, including, but not limited to, the Companies Act 2006 and UK tax legislation. Our tests included agreeing statement disclosures to underlying supporting documentation and enquiries with management. There are inherent limitations in the audit procedures described above and, the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we would be to become aware of it. We did not identify any key audit matters relating to irregularities, including fraud. As in all our audits, we also addressed the risk of management override of internal controls, including testing journals and evaluating whether there was evidence of bias by the directors that represented a risk of material misstatement due to fraud. |
| A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Auditors. |
| Use of our report |
| This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 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 a Report of the Auditors 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. |
| for and on behalf of |
| Chartered Accountants and Statutory Auditor |
| 15-17 Church Street |
| Stourbridge |
| West Midlands |
| DY8 1LU |
| KENTON BLACK GROUP LIMITED (REGISTERED NUMBER: 11545782) |
| CONSOLIDATED INCOME STATEMENT |
| FOR THE YEAR ENDED 31 AUGUST 2024 |
| 2024 | 2023 |
| Notes | £ | £ |
| TURNOVER | 22,157,407 | 21,846,037 |
| Cost of sales | 18,063,725 | 17,645,232 |
| GROSS PROFIT | 4,093,682 | 4,200,805 |
| Administrative expenses | 3,585,120 | 4,009,169 |
| OPERATING PROFIT | 4 | 508,562 | 191,636 |
| Interest payable and similar expenses | 5 | 211,898 | 175,328 |
| PROFIT BEFORE TAXATION | 296,664 | 16,308 |
| Tax on profit | 6 | 72,595 | 8,726 |
| PROFIT FOR THE FINANCIAL YEAR |
| Profit attributable to: |
| Owners of the parent | 196,455 | 7,582 |
| Non-controlling interests | 27,614 | - |
| 224,069 | 7,582 |
| KENTON BLACK GROUP LIMITED (REGISTERED NUMBER: 11545782) |
| CONSOLIDATED OTHER COMPREHENSIVE INCOME |
| FOR THE YEAR ENDED 31 AUGUST 2024 |
| 2024 | 2023 |
| Notes | £ | £ |
| PROFIT FOR THE YEAR | 224,069 | 7,582 |
| OTHER COMPREHENSIVE INCOME | - | - |
| TOTAL COMPREHENSIVE INCOME FOR THE YEAR |
224,069 |
7,582 |
| Total comprehensive income attributable to: |
| Owners of the parent | 196,455 | 7,582 |
| Non-controlling interests | 27,614 | - |
| 224,069 | 7,582 |
| KENTON BLACK GROUP LIMITED (REGISTERED NUMBER: 11545782) |
| CONSOLIDATED STATEMENT OF FINANCIAL POSITION |
| 31 AUGUST 2024 |
| 2024 | 2023 |
| Notes | £ | £ | £ |
| FIXED ASSETS |
| Tangible assets | 9 | 41,157 | 76,349 |
| Investments | 10 | - | - |
| 41,157 | 76,349 |
| CURRENT ASSETS |
| Debtors | 11 | 3,083,402 | 3,666,075 |
| Cash at bank | 202,015 | 444,469 |
| 3,285,417 | 4,110,544 |
| CREDITORS |
| Amounts falling due within one year | 12 | 2,995,657 | 3,808,155 |
| NET CURRENT ASSETS | 289,760 | 302,389 |
| TOTAL ASSETS LESS CURRENT LIABILITIES |
330,917 |
378,738 |
| CREDITORS |
| Amounts falling due after more than one year | 13 | (74,812 | ) | (157,588 | ) |
| PROVISIONS FOR LIABILITIES | 17 | (7,735 | ) | (17,617 | ) |
| NET ASSETS | 248,370 | 203,533 |
| CAPITAL AND RESERVES |
| Called up share capital | 18 | 228 | 228 |
| Retained earnings | 19 | 220,403 | 203,180 |
| SHAREHOLDERS' FUNDS | 220,631 | 203,408 |
| NON-CONTROLLING INTERESTS | 20 | 27,739 | 125 |
| TOTAL EQUITY | 248,370 | 203,533 |
| The financial statements were approved by the Board of Directors and authorised for issue on 27 May 2025 and were signed on its behalf by: |
| Mr A J Crabtree - Director |
| KENTON BLACK GROUP LIMITED (REGISTERED NUMBER: 11545782) |
| COMPANY STATEMENT OF FINANCIAL POSITION |
| 31 AUGUST 2024 |
| 2024 | 2023 |
| Notes | £ | £ | £ |
| FIXED ASSETS |
| Tangible assets | 9 |
| Investments | 10 |
| CURRENT ASSETS |
| Debtors | 11 |
| CREDITORS |
| Amounts falling due within one year | 12 |
| NET CURRENT ASSETS/(LIABILITIES) | ( |
) |
| TOTAL ASSETS LESS CURRENT LIABILITIES |
| CAPITAL AND RESERVES |
| Called up share capital | 18 |
| Retained earnings | 19 |
| SHAREHOLDERS' FUNDS |
| Company's profit for the financial year | 243,070 | 205,232 |
| The financial statements were approved by the Board of Directors and authorised for issue on |
| KENTON BLACK GROUP LIMITED (REGISTERED NUMBER: 11545782) |
| CONSOLIDATED STATEMENT OF CHANGES IN EQUITY |
| FOR THE YEAR ENDED 31 AUGUST 2024 |
| Called up |
| share | Retained | Non-controlling | Total |
| capital | earnings | Total | interests | equity |
| £ | £ | £ | £ | £ |
| Balance at 1 September 2022 | 228 | 400,830 | 401,058 | 100 | 401,158 |
| Changes in equity |
| Increase in share capital | - | - | - | 25 | 25 |
| Dividends | - | (205,232 | ) | (205,232 | ) | - | (205,232 | ) |
| Total comprehensive income | - | 7,582 | 7,582 | - | 7,582 |
| Balance at 31 August 2023 | 228 | 203,180 | 203,408 | 125 | 203,533 |
| Changes in equity |
| Dividends | - | (179,232 | ) | (179,232 | ) | - | (179,232 | ) |
| Total comprehensive income | - | 196,455 | 196,455 | 27,614 | 224,069 |
| Balance at 31 August 2024 | 228 | 220,403 | 220,631 | 27,739 | 248,370 |
| KENTON BLACK GROUP LIMITED (REGISTERED NUMBER: 11545782) |
| COMPANY STATEMENT OF CHANGES IN EQUITY |
| FOR THE YEAR ENDED 31 AUGUST 2024 |
| Called up |
| share | Retained | Total |
| capital | earnings | equity |
| £ | £ | £ |
| Balance at 1 September 2022 |
| Changes in equity |
| Dividends | - | ( |
) | ( |
) |
| Total comprehensive income | - |
| Balance at 31 August 2023 |
| Changes in equity |
| Dividends | - | ( |
) | ( |
) |
| Total comprehensive income | - |
| Balance at 31 August 2024 |
| KENTON BLACK GROUP LIMITED (REGISTERED NUMBER: 11545782) |
| CONSOLIDATED STATEMENT OF CASH FLOWS |
| FOR THE YEAR ENDED 31 AUGUST 2024 |
| 2024 | 2023 |
| Notes | £ | £ |
| Cash flows from operating activities |
| Cash generated from operations | 1 | 286,399 | 870,748 |
| Interest paid | (210,239 | ) | (174,050 | ) |
| Interest element of hire purchase payments paid |
(1,659 |
) |
(1,278 |
) |
| Tax paid | (5,097 | ) | (94,656 | ) |
| Net cash from operating activities | 69,404 | 600,764 |
| Cash flows from investing activities |
| Purchase of tangible fixed assets | (9,419 | ) | (11,654 | ) |
| Net cash from investing activities | (9,419 | ) | (11,654 | ) |
| Cash flows from financing activities |
| Loan repayments in year | (80,000 | ) | (80,000 | ) |
| Capital repayments in year | (2,427 | ) | (1,446 | ) |
| Amount introduced by directors | 7,632 | 16,125 |
| Amount withdrawn by directors | (48,412 | ) | - |
| Equity dividends paid | (179,232 | ) | (205,232 | ) |
| Net cash from financing activities | (302,439 | ) | (270,553 | ) |
| (Decrease)/increase in cash and cash equivalents | (242,454 | ) | 318,557 |
| Cash and cash equivalents at beginning of year |
2 |
444,469 |
125,912 |
| Cash and cash equivalents at end of year | 2 | 202,015 | 444,469 |
| KENTON BLACK GROUP LIMITED (REGISTERED NUMBER: 11545782) |
| NOTES TO THE CONSOLIDATED STATEMENT OF CASH FLOWS |
| FOR THE YEAR ENDED 31 AUGUST 2024 |
| 1. | RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS |
| 2024 | 2023 |
| £ | £ |
| Profit before taxation | 296,664 | 16,308 |
| Depreciation charges | 21,712 | 23,719 |
| Loss on disposal of fixed assets | 22,899 | - |
| Finance costs | 211,898 | 175,328 |
| 553,173 | 215,355 |
| Decrease in trade and other debtors | 623,453 | 913,867 |
| Decrease in trade and other creditors | (890,227 | ) | (258,474 | ) |
| Cash generated from operations | 286,399 | 870,748 |
| 2. | CASH AND CASH EQUIVALENTS |
| The amounts disclosed on the Statement of Cash Flows in respect of cash and cash equivalents are in respect of these Statement of Financial Position amounts: |
| Year ended 31 August 2024 |
| 31/8/24 | 1/9/23 |
| £ | £ |
| Cash and cash equivalents | 202,015 | 444,469 |
| Year ended 31 August 2023 |
| 31/8/23 | 1/9/22 |
| £ | £ |
| Cash and cash equivalents | 444,469 | 125,912 |
| KENTON BLACK GROUP LIMITED (REGISTERED NUMBER: 11545782) |
| NOTES TO THE CONSOLIDATED STATEMENT OF CASH FLOWS |
| FOR THE YEAR ENDED 31 AUGUST 2024 |
| 3. | ANALYSIS OF CHANGES IN NET FUNDS |
| At 1/9/23 | Cash flow | At 31/8/24 |
| £ | £ | £ |
| Net cash |
| Cash at bank and in hand | 444,469 | (242,454 | ) | 202,015 |
| 444,469 | (242,454 | ) | 202,015 |
| Debt |
| Finance leases | (13,348 | ) | 2,427 | (10,921 | ) |
| Debts falling due within 1 year | (80,000 | ) | - | (80,000 | ) |
| Debts falling due after 1 year | (146,667 | ) | 80,000 | (66,667 | ) |
| (240,015 | ) | 82,427 | (157,588 | ) |
| Total | 204,454 | (160,027 | ) | 44,427 |
| KENTON BLACK GROUP LIMITED (REGISTERED NUMBER: 11545782) |
| NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS |
| FOR THE YEAR ENDED 31 AUGUST 2024 |
| 1. | STATUTORY INFORMATION |
| Kenton Black Group Limited is a |
| 2. | ACCOUNTING POLICIES |
| Basis of preparing the financial statements |
| Basis of consolidation |
| The consolidated financial statements incorporate those of Kenton Black Group Limited and all of its subsidiaries (entities that the group controls through its power to govern the financial and operating policies so as to obtain economic benefits). Subsidiaries acquired during the year are consolidated using the purchase method. Results are incorporated from the date that control passes. |
| All financial statements are made up to 31 August and all accounting policies are consistent across the parent and its subsidiaries. |
| All intra-group transactions, balances and unrealised gains on transactions between group companies are eliminated on consolidation. |
| Turnover |
| Turnover is recognised at the fair value of the consideration received or receivable for services provided in the normal course of business and is shown net of value added tax. |
| Revenue from the supply of services is recognised when: |
| - the amount of the 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. |
| Tangible fixed assets |
| Tangible fixed assets are initially measured at cost. After initial recognition, tangible fixed assets are measured at cost less any accumulated depreciation and any accumulated impairment losses. |
| Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life or, if held under a finance lease, over the lease term, whichever is the shorter. |
| Fixtures and fittings | - | 25% on reducing balance |
| Motor vehicles | - | 20% on cost |
| Office equipment | - | 25% on reducing balance |
| The gain or loss arising on the disposal of an asset is determined as the difference between the disposal proceeds and the carrying value of the asset and is credited or charged to profit or loss. |
| KENTON BLACK GROUP LIMITED (REGISTERED NUMBER: 11545782) |
| NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
| FOR THE YEAR ENDED 31 AUGUST 2024 |
| 2. | ACCOUNTING POLICIES - continued |
| Financial instruments |
| Financial instruments are recognised in the group's statement of financial position when the group becomes party to the contractual provisions of the instrument. |
| Financial assets and liabilities are offset, with the net amounts being 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 |
| Trade and other debtors, including accrued income, which are receivable within one year and which do not constitute a financing transaction are initially measured at the transaction price and are subsequently measured at amortised cost, being the transaction price less any amounts settled and any impairment losses. |
| Basic financial liabilities |
| Basic financial liabilities, including trade and other creditors, are initially measured 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. Debt instruments are subsequently carried at amortised cost using the effective interest rate method. |
| Equity instruments |
| Equity instruments issued by the group 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. |
| 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. |
| Taxation |
| Taxation for the year comprises current and deferred tax. Tax is recognised in the Consolidated Income Statement, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. |
| Current or deferred taxation assets and liabilities are not discounted. |
| Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the statement of financial position date. |
| Deferred tax |
| Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the statement of financial position date. |
| Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference. |
| Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. |
| KENTON BLACK GROUP LIMITED (REGISTERED NUMBER: 11545782) |
| NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
| FOR THE YEAR ENDED 31 AUGUST 2024 |
| 2. | ACCOUNTING POLICIES - continued |
| Hire purchase and leasing commitments |
| Assets obtained under hire purchase contracts or finance leases are capitalised in the balance sheet. Those held under hire purchase contracts are depreciated over their estimated useful lives. Those held under finance leases are depreciated over their estimated useful lives or the lease term, whichever is the shorter. |
| The interest element of these obligations is charged to profit or loss over the relevant period. The capital element of the future payments is treated as a liability. |
| Rentals paid under operating leases are charged to profit or loss on a straight line basis over the period of the lease. |
| Pension costs and other post-retirement benefits |
| The group operates a defined contribution pension scheme. Contributions payable to the group's pension scheme are charged to profit or loss in the period to which they relate. |
| Impairment and non-financial assets |
| At each reporting end date, the group reviews the carrying amounts of its 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 group estimates the recoverable amount of the cash-generating unit to which the asset belongs. |
| 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 fixed assets. |
| The cost of any unused holiday entitlement is recognised in the period in which the services of the employee are received. |
| Termination benefits are recognised immediately as an expense when the group is demonstrably committed to terminate the employment of an employee or to provide termination benefits. |
| 3. | EMPLOYEES AND DIRECTORS |
| 2024 | 2023 |
| £ | £ |
| Wages and salaries | 2,358,323 | 2,752,027 |
| Social security costs | 268,995 | 309,045 |
| Other pension costs | 145,655 | 71,272 |
| 2,772,973 | 3,132,344 |
| The average number of employees during the year was as follows: |
| 2024 | 2023 |
| Directors and administration | 9 | 14 |
| Sales | 39 | 46 |
| KENTON BLACK GROUP LIMITED (REGISTERED NUMBER: 11545782) |
| NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
| FOR THE YEAR ENDED 31 AUGUST 2024 |
| 3. | EMPLOYEES AND DIRECTORS - continued |
| 2024 | 2023 |
| £ | £ |
| Directors' remuneration | 25,000 | 25,000 |
| Directors' pension contributions to money purchase schemes | 1,000 | 750 |
| 4. | OPERATING PROFIT |
| The operating profit is stated after charging: |
| 2024 | 2023 |
| £ | £ |
| Other operating leases | 180,862 | 211,580 |
| Depreciation - owned assets | 18,413 | 21,520 |
| Depreciation - assets on hire purchase contracts | 3,299 | 2,199 |
| Loss on disposal of fixed assets | 22,899 | - |
| Auditors' remuneration | 14,000 | 14,000 |
| Auditors' remuneration for non audit work | 4,000 | 4,000 |
| Foreign exchange differences | 972 | - |
| 5. | INTEREST PAYABLE AND SIMILAR EXPENSES |
| 2024 | 2023 |
| £ | £ |
| Bank loan interest | 13,489 | 14,701 |
| Invoice finance charges | 196,750 | 159,349 |
| Hire purchase interest | 1,659 | 1,278 |
| 211,898 | 175,328 |
| 6. | TAXATION |
| Analysis of the tax charge |
| The tax charge on the profit for the year was as follows: |
| 2024 | 2023 |
| £ | £ |
| Current tax: |
| UK corporation tax | 82,477 | 5,097 |
| Deferred tax | (9,882 | ) | 3,629 |
| Tax on profit | 72,595 | 8,726 |
| KENTON BLACK GROUP LIMITED (REGISTERED NUMBER: 11545782) |
| NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
| FOR THE YEAR ENDED 31 AUGUST 2024 |
| 6. | TAXATION - continued |
| Reconciliation of total tax charge included in profit and loss |
| The tax assessed for the year is lower than the standard rate of corporation tax in the UK. The difference is explained below: |
| 2024 | 2023 |
| £ | £ |
| Profit before tax | 296,664 | 16,308 |
| Profit multiplied by the standard rate of corporation tax in the UK of 25 % (2023 - 19 %) |
74,166 |
3,099 |
| Effects of: |
| Expenses not deductible for tax purposes | 122 | 2,862 |
| Capital allowances in excess of depreciation | - | (329 | ) |
| Utilisation of tax losses | (1,693 | ) | - |
| Adjustments to tax charge in respect of previous periods | - | (1,134 | ) |
| Change in rate of deferred taxation | - | 4,228 |
| Total tax charge | 72,595 | 8,726 |
| 7. | INDIVIDUAL INCOME STATEMENT |
| As permitted by Section 408 of the Companies Act 2006, the Income Statement of the parent company is not presented as part of these financial statements. |
| 8. | DIVIDENDS |
| 2024 | 2023 |
| £ | £ |
| Ordinary A shares of 1p each |
| Interim dividends paid | 179,232 | 92,616 |
| Ordinary B shares of 1p each |
| Interim dividends paid | - | 20,000 |
| Ordinary C shares of 1p each |
| Interim dividends paid | - | 46,308 |
| Ordinary E shares of 1p each |
| Interim dividends paid | - | 23,154 |
| Ordinary F shares of 1p each |
| Interim dividends paid | - | 23,154 |
| 179,232 | 205,232 |
| KENTON BLACK GROUP LIMITED (REGISTERED NUMBER: 11545782) |
| NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
| FOR THE YEAR ENDED 31 AUGUST 2024 |
| 9. | TANGIBLE FIXED ASSETS |
| Group |
| Fixtures |
| and | Motor | Office |
| fittings | vehicles | equipment | Totals |
| £ | £ | £ | £ |
| COST |
| At 1 September 2023 | 162,792 | 16,495 | 68,131 | 247,418 |
| Additions | 5,118 | - | 4,301 | 9,419 |
| Disposals | (150,636 | ) | - | - | (150,636 | ) |
| At 31 August 2024 | 17,274 | 16,495 | 72,432 | 106,201 |
| DEPRECIATION |
| At 1 September 2023 | 128,042 | 2,199 | 40,828 | 171,069 |
| Charge for year | 9,611 | 3,299 | 8,802 | 21,712 |
| Eliminated on disposal | (127,737 | ) | - | - | (127,737 | ) |
| At 31 August 2024 | 9,916 | 5,498 | 49,630 | 65,044 |
| NET BOOK VALUE |
| At 31 August 2024 | 7,358 | 10,997 | 22,802 | 41,157 |
| At 31 August 2023 | 34,750 | 14,296 | 27,303 | 76,349 |
| Fixed assets, included in the above, which are held under hire purchase contracts are as follows: |
| Motor |
| vehicles |
| £ |
| COST |
| At 1 September 2023 |
| and 31 August 2024 | 16,495 |
| DEPRECIATION |
| At 1 September 2023 | 2,199 |
| Charge for year | 3,299 |
| At 31 August 2024 | 5,498 |
| NET BOOK VALUE |
| At 31 August 2024 | 10,997 |
| At 31 August 2023 | 14,296 |
| KENTON BLACK GROUP LIMITED (REGISTERED NUMBER: 11545782) |
| NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
| FOR THE YEAR ENDED 31 AUGUST 2024 |
| 10. | FIXED ASSET INVESTMENTS |
| Company |
| Shares in |
| group |
| undertakings |
| £ |
| COST |
| At 1 September 2023 |
| and 31 August 2024 |
| NET BOOK VALUE |
| At 31 August 2024 |
| At 31 August 2023 |
| 11. | DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
| Group | Company |
| 2024 | 2023 | 2024 | 2023 |
| £ | £ | £ | £ |
| Trade debtors | 2,633,323 | 3,456,166 |
| Amounts owed by group undertakings | - | - |
| Other debtors | 82,297 | 65,397 |
| Staff loan | 79,000 | 38,600 | - | - |
| Directors' loan accounts | 72,487 | 31,707 | - | - |
| Prepayments and accrued income | 216,295 | 74,205 |
| 3,083,402 | 3,666,075 |
| 12. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
| Group | Company |
| 2024 | 2023 | 2024 | 2023 |
| £ | £ | £ | £ |
| Bank loans and overdrafts (see note 14) | 80,000 | 80,000 |
| Hire purchase contracts (see note 15) | 2,776 | 2,427 |
| Trade creditors | 221,787 | 481,883 |
| Amounts owed to group undertakings | - | - |
| Tax | 82,477 | 5,097 |
| Social security and other taxes | 184,432 | 363,727 |
| Other creditors | 25,243 | 18,304 |
| Invoice discounting account | 2,123,739 | 2,315,285 | - | - |
| Accruals | 275,203 | 541,432 |
| 2,995,657 | 3,808,155 |
| KENTON BLACK GROUP LIMITED (REGISTERED NUMBER: 11545782) |
| NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
| FOR THE YEAR ENDED 31 AUGUST 2024 |
| 13. | CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR |
| Group |
| 2024 | 2023 |
| £ | £ |
| Bank loans (see note 14) | 66,667 | 146,667 |
| Hire purchase contracts (see note 15) | 8,145 | 10,921 |
| 74,812 | 157,588 |
| 14. | LOANS |
| An analysis of the maturity of loans is given below: |
| Group |
| 2024 | 2023 |
| £ | £ |
| Amounts falling due within one year or on | demand: |
| Bank loans | 80,000 | 80,000 |
| Amounts falling due between one and two | years: |
| Bank loans | 66,667 | 80,000 |
| Amounts falling due between two and five | years: |
| Bank loans | - | 66,667 |
| KENTON BLACK GROUP LIMITED (REGISTERED NUMBER: 11545782) |
| NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
| FOR THE YEAR ENDED 31 AUGUST 2024 |
| 15. | LEASING AGREEMENTS |
| Minimum lease payments fall due as follows: |
| Group |
| Hire purchase contracts |
| 2024 | 2023 |
| £ | £ |
| Gross obligations repayable: |
| Within one year | 4,086 | 4,086 |
| Between one and five years | 9,545 | 13,621 |
| 13,631 | 17,707 |
| Finance charges repayable: |
| Within one year | 1,310 | 1,659 |
| Between one and five years | 1,400 | 2,700 |
| 2,710 | 4,359 |
| Net obligations repayable: |
| Within one year | 2,776 | 2,427 |
| Between one and five years | 8,145 | 10,921 |
| 10,921 | 13,348 |
| Group |
| Non-cancellable operating | leases |
| 2024 | 2023 |
| £ | £ |
| Within one year | 45,078 | 94,449 |
| Between one and five years | 8,700 | 49,228 |
| 53,778 | 143,677 |
| KENTON BLACK GROUP LIMITED (REGISTERED NUMBER: 11545782) |
| NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
| FOR THE YEAR ENDED 31 AUGUST 2024 |
| 16. | SECURED DEBTS |
| The following secured debts are included within creditors: |
| Group |
| 2024 | 2023 |
| £ | £ |
| Bank loans | 146,667 | 226,667 |
| Hire purchase contracts | 10,921 | 13,348 |
| Invoice discounting account | 2,123,739 | 2,315,285 |
| 2,281,327 | 2,555,300 |
| Bank borrowing is secured on fixed and floating charges over all property or undertaking of the group. |
| Hire purchase liabilities are secured on the assets acquired thereunder. |
| The invoice discounting account is secured on fixed and floating charges over all property or undertaking of the group. |
| 17. | PROVISIONS FOR LIABILITIES |
| Group |
| 2024 | 2023 |
| £ | £ |
| Deferred tax |
| Accelerated capital allowances | 10,290 | 19,088 |
| Other timing differences | (2,555 | ) | (1,471 | ) |
| 7,735 | 17,617 |
| Group |
| Deferred |
| tax |
| £ |
| Balance at 1 September 2023 | 17,617 |
| Credit to Income Statement during year | (9,882 | ) |
| Balance at 31 August 2024 | 7,735 |
| KENTON BLACK GROUP LIMITED (REGISTERED NUMBER: 11545782) |
| NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
| FOR THE YEAR ENDED 31 AUGUST 2024 |
| 18. | CALLED UP SHARE CAPITAL |
| Allotted, issued and fully paid: |
| Number: | Class: | Nominal | 2024 | 2023 |
| value: | £ | £ |
| Ordinary A | 1p | 177 | 177 |
| Ordinary B | 1p | 15 | 15 |
| Ordinary C | 1p | 12 | 12 |
| Ordinary E | 1p | 12 | 12 |
| Ordinary F | 1p | 12 | 12 |
| 228 | 228 |
| 19. | RESERVES |
| Group |
| Retained |
| earnings |
| £ |
| At 1 September 2023 | 203,180 |
| Profit for the year | 196,455 |
| Dividends | (179,232 | ) |
| At 31 August 2024 | 220,403 |
| Company |
| Retained |
| earnings |
| £ |
| Profit for the year |
| Dividends | ( |
) |
| At 31 August 2024 |
| 20. | NON-CONTROLLING INTERESTS |
| Non-controlling interests arise from Ordinary B shares being held by parties external to the group in: |
| - Kenton Black Northern Limited, |
| - Kenton Black Finance Limited, |
| - Kenton Black International Limited, |
| - Kenton Black Science & Engineering Limited, and |
| - Kenton Black SC Limited. |
| Movements in the value of minority holdings are detailed in the Consolidated Statement of Changes in Equity on page 12 of these financial statements. |
| KENTON BLACK GROUP LIMITED (REGISTERED NUMBER: 11545782) |
| NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
| FOR THE YEAR ENDED 31 AUGUST 2024 |
| 21. | DIRECTORS' ADVANCES, CREDITS AND GUARANTEES |
| The following advances and credits to directors subsisted during the years ended 31 August 2024 and 31 August 2023: |
| 2024 | 2023 |
| £ | £ |
| A J Crabtree |
| Balance outstanding at start of year | 23,442 | 33,983 |
| Amounts advanced | 16,836 | 7,226 |
| Amounts repaid | (7,432 | ) | (17,767 | ) |
| Amounts written off | - | - |
| Amounts waived | - | - |
| Balance outstanding at end of year | 32,846 | 23,442 |
| N Fox |
| Balance outstanding at start of year | 8,265 | 13,849 |
| Amounts advanced | 31,376 | 8,862 |
| Amounts repaid | - | (14,446 | ) |
| Amounts written off | - | - |
| Amounts waived | - | - |
| Balance outstanding at end of year | 39,641 | 8,265 |
| 22. | RELATED PARTY DISCLOSURES |
| Mr A. Crabtree and Mr N. Fox, both of whom are directors of the company, each hold an interest in Chunk Payroll Limited. Chunk Payroll Limited provided operatives to the group for deployment on temporary assignments. During the year the group was charged £9,495,525 (2023 £6,799,755) in respect of these operatives. |
| Remuneration paid to directors of subsidiary companies who are not directors of Kenton Black Group Limited amounted to: |
| 2024 | 2023 |
| £ | £ |
| Directors' salaries | 811,790 | - |
| Employer's national insurance on directors' salaries | 98,387 | - |
| Directors' pension contributions | 55,463 | - |
| 23. | ULTIMATE CONTROLLING PARTY |
| No individual is able to exercise sole control over the company or the group. |