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Registered Number:SC611181














KBM 2018 LIMITED





ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2024

 
KBM 2018 LIMITED
 

COMPANY INFORMATION


Directors
K A Mitchell 
J J Smith 




Registered number
SC611181



Registered office
9 Edindiach Road

Keith

Scotland

Ab55 5JY




Independent auditors
Anderson Anderson & Brown Audit LLP

Kingshill View

Prime Four Business Park

Kingswells

Aberdeen

AB15 8PU





 
KBM 2018 LIMITED
 

CONTENTS



Page
Group strategic report
1
Directors' report
2 - 3
Independent auditors' report
4 - 7
Consolidated statement of comprehensive income
8
Consolidated balance sheet
9 - 10
Company balance sheet
11
Consolidated statement of changes in equity
12
Company statement of changes in equity
13
Consolidated statement of cash flows
14
Consolidated analysis of net debt
15
Notes to the financial statements
16 - 37


 
KBM 2018 LIMITED
 

GROUP STRATEGIC REPORT
FOR THE YEAR ENDED 31 AUGUST 2024

Introduction
 
The principal activity of the company was that of a holding company.  The principal activity of the trading subsidiary, Keith Builders Merchants Limited was that of builders merchants and the sale of kitchens and bathrooms.
The company has two main branches in Keith and Forres and are well placed to service the local area.

Business review
 
The directors are satisfied with the results presented in these financial statements, in what was a challenging year.  Trading performance was strong in the first half of the year, but was impacted towards the end of the year by the increasing inflation rates and general uncertainty around the economy.  

Principal risks and uncertainties
 
The group operates in the North East of Scotland.  Trading levels are impacted by local construction activity, which is heavily impacted by the local economy.  The customer base includes small and medium sized businesses as well as private individuals, and does not rely heavily on one type of customer or any one major customer which reduces market risk.  This therefore lowers the risk of any significant loss of revenue and lowers the risk of bad debts, since there is no reliance upon one single customer.  
The trading levels in the current year have been slightly impacted by global supply chain issues and the increasing inflation which has placed significant pressures on customers. The directors recognise the risks surrounding the supply chain but are not heavily reliant upon any one supplier or region, which reduces this risk.

Financial key performance indicators
 
The directors consider the financial key performance indicators to be turnover as well as gross profit and net profit.  These metrics of business performance are measured by branch as well as on an overall company and group level.

Other key performance indicators
 
Other key performance indicators include staff retention and customer retention.  Keith Builders Merchants, the trading subsidiary, pride themselves on a high level of long standing customers.


This report was approved by the board and signed on its behalf.



................................................
J J Smith
Director

Date: 28 May 2025

Page 1

 
KBM 2018 LIMITED
 
 
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 AUGUST 2024

The directors present their report and the financial statements for the year ended 31 August 2024.

Directors' responsibilities statement

The directors are responsible for preparing the Group strategic report, the Directors' report and the consolidated 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 applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland'. 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 for the Group's financial statements and then apply them consistently;

make judgements and accounting estimates that are reasonable and prudent;

state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements;

prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Group 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 the Group and to enable them to ensure that the financial statements comply with the Companies Act 2006They 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.

Results and dividends

The profit for the year, after taxation, amounted to £249,344 (2023 - £209,559).

During the year the Group paid dividends totaling £145,000 (2023 - £203,675)

Directors

The directors who served during the year were:

K A Mitchell 
J J Smith 

Future developments

The directors look forward to further increasing their presence and growing their kitchen and bathroom offerings.

Page 2

 
KBM 2018 LIMITED
 

DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2024

Disclosure of information to auditors

Each of the persons who are directors at the time when this Directors' report is approved has confirmed that:
 
so far as the director is aware, there is no relevant audit information of which the Company and the Group's auditors are unaware, and

the director has taken all the steps that ought to have been taken as a director in order to be aware of any relevant audit information and to establish that the Company and the Group's auditors are aware of that information.

Post balance sheet events

There have been no significant events affecting the Group since the year end.

Auditors

A resolution to appoint AAB Audit & Accountancy Limited as auditor of the company will be proposed at the next general meeting.

This report was approved by the board and signed on its behalf.
 





................................................
J J Smith
Director

Date: 28 May 2025

Page 3

 
KBM 2018 LIMITED
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF KBM 2018 LIMITED
 

Opinion


We have audited the financial statements of KBM 2018 Limited (the 'parent Company') and its subsidiaries (the 'Group') for the year ended 31 August 2024, which comprise the Consolidated statement of comprehensive income, the Consolidated Balance Sheet, the Company Balance Sheet, the Consolidated Statement of Cash Flows, the Consolidated Statement of Changes in Equity, the Company Statement of Changes in Equity and the related notes, including a summary of significant accounting policiesThe 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's 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 United Kingdom, including the Financial Reporting Council'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 or 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.


Page 4

 
KBM 2018 LIMITED
 

INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF KBM 2018 LIMITED (CONTINUED)

Other information


The other information comprises the information included in the Annual Report other than the financial statements and our Auditors' report thereon. The directors are responsible for the other information contained within the Annual ReportOur 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.


Opinion 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 Directors' report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
the Group strategic report and the Directors' report have been prepared in accordance with applicable legal requirements.


Matters on which we are required to report by exception
 

In the light of the knowledge and understanding of the 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 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 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 Directors' responsibilities statement set out on page 2, 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 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.


Page 5

 
KBM 2018 LIMITED
 

INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF KBM 2018 LIMITED (CONTINUED)

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 an Auditors' 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 Group 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 obtained an understanding of the legal and regulatory frameworks within which the company operates, focusing on those laws and regulations that have a direct effect on the determination of material amounts and disclosures in the financial statements. The laws and regulations we considered in this context were the Companies Act 2006 and Taxation legislation.
We identified the greatest risk of material impact on the financial statement from irregularities including fraud to be:

Management override of controls to manipulate the group's key performance indicators to meet targets
Timing and completeness of revenue recognition
Management judgement applied in calculating provisions
Compliance with relevant laws and regulations which directly impact the financial statements and those that the company needs to comply with for the purpose of trading

Our audit procedures to respond to these risks included:

Testing of journal entries and other adjustments for appropriateness
Evaluating the business rationale of significant transactions outside the normal course of business
Reviewing a sample of sales and purchases around the year end to ensure income and costs have been recorded accurately in the correct period
Reviewing a sample of sales and purchase transactions
Reviewing judgements made by management in their calculation of accounting estimates for potential management bias
Reviewing legal and professional fees to identify indications of actual or potential litigation, claims and any non-compliance with laws and regulations


Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.


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 Auditors' report.


Page 6

 
KBM 2018 LIMITED
 

INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF KBM 2018 LIMITED (CONTINUED)

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 2006Our 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 Auditors' 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.





Derek Mair (Senior statutory auditor)
  
for and on behalf of
Anderson Anderson & Brown Audit LLP
 
Statutory Auditor
  
Kingshill View
Prime Four Business Park
Kingswells
Aberdeen
AB15 8PU

28 May 2025
Page 7

 
KBM 2018 LIMITED
 

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 AUGUST 2024

2024
2023
Note
£
£

  

Turnover
 4 
10,290,283
10,399,018

Cost of sales
  
(8,320,732)
(8,717,824)

Gross profit
  
1,969,551
1,681,194

Administrative expenses
  
(2,677,447)
(2,535,785)

Other operating income
 5 
1,139,035
1,190,001

Operating profit
 6 
431,139
335,410

Interest payable and similar expenses
 10 
(46,411)
(42,183)

Profit before taxation
  
384,728
293,227

Tax on profit
 11 
(135,384)
(83,668)

Profit for the financial year
  
249,344
209,559

Profit for the year attributable to:
  

Owners of the parent Company
  
249,344
209,559

  
249,344
209,559

There was no other comprehensive income for 2024 (2023:£NIL).

The notes on pages 16 to 37 form part of these financial statements.

Page 8

 
KBM 2018 LIMITED
REGISTERED NUMBER:SC611181

CONSOLIDATED BALANCE SHEET
AS AT 31 AUGUST 2024

2024
2023
Note
£
£

Fixed assets
  

Intangible assets
 13 
97,436
177,179

Tangible assets
 14 
356,166
527,455

Investments
 15 
900
900

Investment property
 16 
1,020,000
1,020,000

  
1,474,502
1,725,534

Current assets
  

Stocks
 17 
1,379,931
1,540,569

Debtors: amounts falling due within one year
 18 
1,572,384
1,414,007

Cash at bank and in hand
 19 
1,079,199
493,304

  
4,031,514
3,447,880

Creditors: amounts falling due within one year
 20 
(3,421,918)
(3,004,031)

Net current assets
  
 
 
609,596
 
 
443,849

Total assets less current liabilities
  
2,084,098
2,169,383

Creditors: amounts falling due after more than one year
 21 
(360,101)
(510,232)

Provisions for liabilities
  

Deferred taxation
 25 
(59,606)
(99,104)

  
 
 
(59,606)
 
 
(99,104)

Net assets
  
1,664,391
1,560,047


Capital and reserves
  

Called up share capital 
 26 
10
10

Profit and loss account
 27 
1,664,381
1,560,037

  
1,664,391
1,560,047


Page 9

 
KBM 2018 LIMITED
REGISTERED NUMBER:SC611181

CONSOLIDATED BALANCE SHEET (CONTINUED)
AS AT 31 AUGUST 2024

The financial statements were approved and authorised for issue by the board and were signed on its behalf by: 




................................................
J J Smith
Director

Date: 28 May 2025

The notes on pages 16 to 37 form part of these financial statements.

Page 10

 
KBM 2018 LIMITED
REGISTERED NUMBER:SC611181

COMPANY BALANCE SHEET
AS AT 31 AUGUST 2024

2024
2023
Note
£
£

Fixed assets
  

Tangible assets
 14 
6,245
-

Investments
 15 
5,335,000
2,273,160

Investment Property
 16 
1,020,000
-

  
6,361,245
2,273,160

Current assets
  

Debtors: amounts falling due within one year
 18 
11
3,801

Cash at bank and in hand
 19 
365,156
292,552

  
365,167
296,353

Creditors: amounts falling due within one year
 20 
(3,062,541)
(2,149,551)

Net current liabilities
  
 
 
(2,697,374)
 
 
(1,853,198)

Total assets less current liabilities
  
3,663,871
419,962

  

Creditors: amounts falling due after more than one year
 21 
(330,000)
(418,816)

  

Net assets
  
3,333,871
1,146


Capital and reserves
  

Called up share capital 
 26 
10
10

Profit and loss account brought forward
  
1,136
20,892

Profit for the year
  
3,477,725
80,244

Other changes in the profit and loss account

  

(145,000)
(100,000)

Profit and loss account carried forward
  
3,333,861
1,136

  
3,333,871
1,146


The financial statements were approved and authorised for issue by the board and were signed on its behalf by: 




................................................
J J Smith
Director

Date: 28 May 2025

The notes on pages 16 to 37 form part of these financial statements.

Page 11

 
KBM 2018 LIMITED
 

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 AUGUST 2024


Called up share capital
Profit and loss account
Equity attributable to owners of parent Company
Total equity

£
£
£
£


At 1 September 2022
10
1,554,153
1,554,163
1,554,163



Profit for the year
-
209,559
209,559
209,559

Dividends: Equity capital
-
(203,675)
(203,675)
(203,675)



At 1 September 2023
10
1,560,037
1,560,047
1,560,047



Profit for the year
-
249,344
249,344
249,344

Dividends: Equity capital
-
(145,000)
(145,000)
(145,000)


At 31 August 2024
10
1,664,381
1,664,391
1,664,391


The notes on pages 16 to 37 form part of these financial statements.

Page 12

 
KBM 2018 LIMITED
 

COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 AUGUST 2024


Called up share capital
Profit and loss account
Total equity

£
£
£


At 1 September 2022
10
20,892
20,902



Profit for the year
-
80,244
80,244

Dividends: Equity capital
-
(100,000)
(100,000)



At 1 September 2023
10
1,136
1,146



Profit for the year
-
3,477,725
3,477,725


Contributions by and distributions to owners

Dividends: Equity capital
-
(145,000)
(145,000)


At 31 August 2024
10
3,333,861
3,333,871


The notes on pages 16 to 37 form part of these financial statements.

Page 13

 
KBM 2018 LIMITED
 

CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 AUGUST 2024

2024
2023
£
£

Cash flows from operating activities

Profit for the financial year
249,344
209,559

Adjustments for:

Amortisation of intangible assets
79,743
26,183

Depreciation of tangible assets
184,392
176,984

Loss on disposal of tangible assets
(10,733)
-

Interest paid
46,411
42,183

Taxation charge
174,882
84,664

Decrease in stocks
160,638
305,641

(Increase)/decrease in debtors
(158,377)
10,301

Increase in creditors
87,254
52,154

Corporation tax (paid)
(112,850)
(212,589)

Net cash generated from operating activities

700,704
695,080


Cash flows from investing activities

Purchase of tangible fixed assets
(25,786)
(157,276)

Sale of tangible fixed assets
1,950
34,283

HP interest paid
(9,362)
(8,223)

Net cash from investing activities

(33,198)
(131,216)

Cash flows from financing activities

Repayment of loans
(194,585)
(145,768)

Repayment of/new finance leases
(94,261)
21,081

Dividends paid
(145,000)
(103,675)

Interest paid
(37,049)
(33,960)

Preference share payments
-
(115,000)

Net cash used in financing activities
(470,895)
(377,322)

Net increase in cash and cash equivalents
196,611
186,542

Cash and cash equivalents at beginning of year
78,513
(108,029)

Cash and cash equivalents at the end of year
275,124
78,513


Cash and cash equivalents at the end of year comprise:

Cash at bank and in hand
1,079,199
493,304

Bank overdrafts
(804,075)
(414,791)

275,124
78,513



Page 14

 
KBM 2018 LIMITED
 

CONSOLIDATED ANALYSIS OF NET DEBT (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2024

CONSOLIDATED ANALYSIS OF NET DEBT
FOR THE YEAR ENDED 31 AUGUST 2024




At 1 September 2023
Cash flows
At 31 August 2024
£

£

£

Cash at bank and in hand

493,304

585,895

1,079,199

Invoice financing

(414,791)

(389,284)

(804,075)

Debt due after 1 year

(418,816)

48,816

(370,000)

Debt due within 1 year

(145,769)

145,769

-

Finance leases

(185,676)

94,261

(91,415)


(671,748)
485,457
(186,291)

The notes on pages 16 to 37 form part of these financial statements.

Page 15

 
KBM 2018 LIMITED
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2024

1.


General information

KBM 2018 Limited is a private company limited by shares, incorporated in the United Kingdom.  The registered office is 8 Edindiach Road, Keith, Scotland, AB55 5JY.

2.Accounting policies

 
2.1

Basis of preparation of financial statements

The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and the Companies Act 2006.

The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires Group management to exercise judgement in applying the Group's accounting policies (see note 3).

The Company has taken advantage of the exemption allowed under section 408 of the Companies Act 2006 and has not presented its own Statement of comprehensive income in these financial statements.

The following principal accounting policies have been applied:

 
2.2

Basis of consolidation

The consolidated financial statements present the results of the Company and its own subsidiaries ("the Group") as if they form a single entity. Intercompany transactions and balances between group companies are therefore eliminated in full.
The consolidated financial statements incorporate the results of business combinations using the purchase method. In the Balance sheet, the acquiree's identifiable assets, liabilities and contingent liabilities are initially recognised at their fair values at the acquisition date. The results of acquired operations are included in the Consolidated statement of comprehensive income from the date on which control is obtained. They are deconsolidated from the date control ceases.

 
2.3

Going concern

The directors, having made due and careful enquiry, are of the opinion that the company and group have adequate working capital to execute its operations over the next 12 months.  The directors, therefore, have made an informed judgement, at the time of approving the financial statements, that there is a reasonable expectation that the company and group have adequate resources to continue in operational existence for the foreseeable future.
As a result, the directors have continued to adopt the going concern basis of accounting in preparing the annual financial statements.

Page 16

 
KBM 2018 LIMITED
 

NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2024

2.Accounting policies (continued)

 
2.4

Revenue

Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Group and the revenue can be reliably measured. Revenue is measured as the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. The following criteria must also be met before revenue is recognised:

Sale of goods

Revenue from the sale of goods is recognised when all of the following conditions are satisfied:
the Group has transferred the significant risks and rewards of ownership to the buyer;
the Group retains neither continuing managerial involvement to the degree usually associated with ownership nor effective control over the goods sold;
the amount of revenue can be measured reliably;
it is probable that the Group will receive the consideration due under the transaction; and
the costs incurred or to be incurred in respect of the transaction can be measured reliably.

 
2.5

Operating leases: the Group as lessee

Rentals paid under operating leases are charged to profit or loss on a straight-line basis over the lease term.

Benefits received and receivable as an incentive to sign an operating lease are recognised on a straight-line basis over the lease term, unless another systematic basis is representative of the time pattern of the lessee's benefit from the use of the leased asset.

 
2.6

Government grants

Grants are accounted under the accruals model as permitted by FRS 102. Grants relating to expenditure on tangible fixed assets are credited to profit or loss at the same rate as the depreciation on the assets to which the grant relates. The deferred element of grants is included in creditors as deferred income.
Grants of a revenue nature are recognised in the Consolidated statement of comprehensive income in the same period as the related expenditure.

 
2.7

Finance costs

Finance costs are charged to profit or loss over the term of the debt using the effective interest method so that the amount charged is at a constant rate on the carrying amount. Issue costs are initially recognised as a reduction in the proceeds of the associated capital instrument.

 
2.8

Borrowing costs

All borrowing costs are recognised in profit or loss in the year in which they are incurred.

Page 17

 
KBM 2018 LIMITED
 

NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2024

2.Accounting policies (continued)

 
2.9

Pensions

The Group contributes to a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the Group pays fixed contributions into a separate entity. Once the contributions have been paid the Group has no further payment obligations.
The contributions are recognised as an expense in profit or loss when they fall due. Amounts not paid are shown in accruals as a liability in the Balance sheet. The assets of the plan are held separately from the Group in independently administered funds

 
2.10

Current and deferred taxation

The tax expense for the year comprises current and deferred tax. Tax is recognised in profit or loss except that a charge attributable to an item of income and expense recognised as other comprehensive income or to an item recognised directly in equity is also recognised in other comprehensive income or directly in equity respectively.

The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the balance sheet date in the countries where the Company and the Group operate and generate income.

Deferred tax balances are recognised in respect of all timing differences that have originated but not reversed by the balance sheet date, except that:
The recognition of deferred tax assets is limited to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits;
Any deferred tax balances are reversed if and when all conditions for retaining associated tax allowances have been met; and
Where they relate to timing differences in respect of interests in subsidiaries, associates, branches and joint ventures and the Group can control the reversal of the timing differences and such reversal is not considered probable in the foreseeable future.

Deferred tax balances are not recognised in respect of permanent differences except in respect of business combinations, when deferred tax is recognised on the differences between the fair values of assets acquired and the future tax deductions available for them and the differences between the fair values of liabilities acquired and the amount that will be assessed for tax. Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the balance sheet date.


Page 18

 
KBM 2018 LIMITED
 

NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2024

2.Accounting policies (continued)

 
2.11

Intangible assets

Goodwill
Goodwill represents the difference between amounts paid on the cost of a business combination and the acquirer’s interest in the fair value of the Group's share of its identifiable assets and liabilities of the acquiree at the date of acquisition. Subsequent to initial recognition, goodwill is measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is amortised on a straight-line basis to the Consolidated statement of comprehensive income over its useful economic life of 10 years.
Other intangible assets
Intangible assets are initially recognised at cost. After recognition, under the cost model, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses.
All intangible assets are considered to have a finite useful life. If a reliable estimate of the useful life cannot be made, the useful life shall not exceed ten years.  Computer software costs are amortised to the profit and loss account over 3 years on a straight line basis.

 
2.12

Tangible fixed assets

Tangible fixed assets under the cost model are stated at historical cost less accumulated depreciation and any accumulated impairment losses. Historical cost includes expenditure that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management.

Investment property rented to other group entities and accounted for under the cost model is stated at historical cost less accumulated depreciation and any accumulated impairment losses.

At each reporting date the Group assesses whether there is any indication of impairment. If such indication exists, the recoverable amount of the asset is determined which is the higher of its fair value less costs to sell and its value in use. An impairment loss is recognised where the carrying amount exceeds the recoverable amount.

The Group adds to the carrying amount of an item of fixed assets the cost of replacing part of such an item when that cost is incurred, if the replacement part is expected to provide incremental future benefits to the Group. The carrying amount of the replaced part is derecognised. Repairs and maintenance are charged to profit or loss during the period in which they are incurred.

Page 19

 
KBM 2018 LIMITED
 

NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2024

2.Accounting policies (continued)


2.12
Tangible fixed assets (continued)

Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, using the straight-line method.

Depreciation is provided on the following basis:

Freehold property
-
2% straight line
Plant and machinery
-
10%-25% straight line
Motor vehicles
-
10%-25% straight line
Fixtures and fittings
-
15%-33% straight line

The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.

Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in profit or loss.

 
2.13

Investment property

Investment property is carried at fair value determined annually by external valuers and derived from the current market rents and investment property yields for comparable real estate, adjusted if necessary for any difference in the nature, location or condition of the specific asset. No depreciation is provided. Changes in fair value are recognised in profit or loss.

 
2.14

Valuation of investments

Investments in subsidiaries are measured at cost less accumulated impairment.

Investments in unlisted Group shares, whose market value can be reliably determined, are remeasured to market value at each balance sheet date. Gains and losses on remeasurement are recognised in the Consolidated statement of comprehensive income for the period. Where market value cannot be reliably determined, such investments are stated at historic cost less impairment.

 
2.15

Stocks

Stocks are stated at the lower of cost and net realisable value, being the estimated selling price less costs to complete and sell. Cost is based on the cost of purchase on a first in, first out basis. Work in progress and finished goods include labour and attributable overheads.

At each balance sheet date, stocks are assessed for impairment. If stock is impaired, the carrying amount is reduced to its selling price less costs to complete and sell. The impairment loss is recognised immediately in profit or loss.

 
2.16

Debtors

Short-term debtors are measured at transaction price, less any impairment. Loans receivable are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method, less any impairment.

Page 20

 
KBM 2018 LIMITED
 

NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2024

2.Accounting policies (continued)

 
2.17

Cash and cash equivalents

Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours. Cash equivalents are highly liquid investments that mature in no more than three months from the date of acquisition and that are readily convertible to known amounts of cash with insignificant risk of change in value.

In the Consolidated statement of cash flows, cash and cash equivalents are shown net of bank overdrafts that are repayable on demand and form an integral part of the Group's cash management.

 
2.18

Creditors

Short-term creditors are measured at the transaction price. Other financial liabilities, including bank loans, are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method.

 
2.19

Provisions for liabilities

Provisions are recognised when an event has taken place that gives rise to a legal or constructive obligation, a transfer of economic benefits is probable and a reliable estimate can be made.
Provisions are measured as the best estimate of the amount required to settle the obligation, taking into account the related risks and uncertainties.
 
Increases in provisions are generally charged as an expense to profit or loss.

Page 21

 
KBM 2018 LIMITED
 

NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2024

2.Accounting policies (continued)

 
2.20

Financial instruments

The Group has elected to apply the provisions of Section 11 “Basic Financial Instruments” of FRS 102 to all of its financial instruments.

The Group has elected to apply the recognition and measurement provisions of IFRS 9 Financial Instruments (as adopted by the UK Endorsement Board) with the disclosure requirements of Sections 11 and 12 and the other presentation requirements of FRS 102.

Financial instruments are recognised in the Group's Balance sheet when the Group 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 trade and other debtors, cash and bank balances, are initially measured at their transaction price (adjusted for transaction costs except in the initial measurement of financial assets that are subsequently measured at fair value through profit and loss) and are subsequently carried at their amortised cost using the effective interest method, less any provision for impairment, 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.

Discounting is omitted where the effect of discounting is immaterial. The Group's cash and cash equivalents, trade and most other debtors due with the operating cycle fall into this category of financial instruments.

Other financial assets

Other financial assets, which includes investments in equity instruments which are not classified as subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the recognised transaction price. Such assets are subsequently measured at fair value with the changes in fair value being recognised in the profit or loss. Where other financial assets are not publicly traded, hence their fair value cannot be measured reliably, they are measured at cost less impairment.

Impairment of financial assets

At the end of each reporting period financial assets measured at amortised cost are assessed for objective evidence of impairment. 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. 

Financial assets are impaired when events, subsequent to their initial recognition, indicate the estimated future cash flows derived from the financial asset(s) have been adversely impacted. The impairment loss will be the difference between the current carrying amount and the present value of the future cash flows at the asset(s) original effective interest rate.

If there is a favourable change in relation to the events surrounding the impairment loss then the impairment can be reviewed for possible reversal. The reversal will not cause the current carrying amount to exceed the original carrying amount had the impairment not been recognised. The impairment reversal is recognised in the profit or loss.

Financial liabilities

Page 22

 
KBM 2018 LIMITED
 

NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2024

2.Accounting policies (continued)


2.20
Financial instruments (continued)

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 Group after the deduction of all its liabilities.

Basic financial liabilities, which include trade and other creditors, bank loans, other loans and loans due to fellow group companies are initially measured at their transaction price (adjusting for transaction costs except in the initial measurement of financial liabilities that are subsequently measured at fair value through profit and loss). When this constitutes a financing transaction, whereby the debt instrument is measured at the present value of the future payments discounted at a market rate of interest, discounting is omitted where the effect of discounting is immaterial.

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

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

Other financial instruments

Derivatives, including forward exchange contracts, futures contracts and interest rate swaps, are not classified as basic financial instruments. These are initially recognised at fair value on the date the derivative contract is entered into, with costs being charged to the profit or loss. They are subsequently measured at fair value with changes in the profit or loss.

Debt instruments that do not meet the conditions as set out in FRS 102 paragraph 11.9 are subsequently measured at fair value through the profit or loss. This recognition and measurement would also apply to financial instruments where the performance is evaluated on a fair value basis as with a documented risk management or investment strategy.

Derecognition of financial assets

Financial assets are derecognised when their contractual right to future cash flow expire, or are settled, or when the Group transfers the asset and substantially all the risks and rewards of ownership to another party. If significant risks and rewards of ownership are retained after the transfer to another party, then the Group will continue to recognise the value of the portion of the risks and rewards retained.

Derecognition of financial liabilities

Financial liabilities are derecognised when the Group's contractual obligations expire or are discharged or cancelled.

 
2.21

Dividends

Equity dividends are recognised when they become legally payable. Interim equity dividends are recognised when paid. Final equity dividends are recognised when approved by the shareholders at an annual general meeting.

Page 23

 
KBM 2018 LIMITED
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2024

3.


Judgements in applying accounting policies and key sources of estimation uncertainty

The preparation of financial statements requires management to make judgements, estimates and assumptions that affect the amounts reported for assets and liabilities as at the balance sheet date and the amounts reported during the year for revenue and costs. However, the nature of estimation means that actual outcomes could differ from those estimates. Estimates and judgements 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 following judgements and estimates have had the most significant impact on amounts recognised in the financial statements:
Stock valuation
Management use their judgement to determine whether the value of stock held is appropriately held at cost, or whether it requires impairment to bring down the value to the net realisable value.  
Useful economic lives of tangible assets
The annual depreciation charge for tangible assets is sensitive to changes in the useful economic lives and residual values of the assets. Useful lives and residual values are reassessed annually by management to ensure appropriate. They are assessed where necessary to reflect current estimates based on economic utilisation and physical condition.
Goodwill
Management establishes a reliable estimate of the useful life of goodwill and intangible assets arising from business combinations.  This estimate is based on a variety of factors such as the expected use of the acquired business, the expected useful life of the cash generating units to which the goodwill is attributed.


4.


Turnover

An analysis of turnover by class of business is as follows:


2024
2023
£
£

Sale of goods
10,290,283
10,399,018

10,290,283
10,399,018


Analysis of turnover by country of destination:

2024
2023
£
£

United Kingdom
10,290,283
10,399,018

10,290,283
10,399,018


Page 24

 
KBM 2018 LIMITED
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2024

5.


Other operating income

2024
2023
£
£

Other operating income
1,139,035
1,190,001

1,139,035
1,190,001



6.


Operating profit

The operating profit is stated after charging:

2024
2023
£
£

Gain/(loss) on sale of tangible assets
10,734
12,917

Other operating lease rentals
(202,666)
(212,207)


7.


Auditors' remuneration

During the year, the Group obtained the following services from the Company's auditors:


2024
2023
£
£

Fees payable to the Company's auditors for the audit of the consolidated and parent Company's financial statements
20,000
22,000


8.


Employees

Staff costs, including directors' remuneration, were as follows:


Group
Group
2024
2023
£
£


Wages and salaries
1,213,787
1,391,072

Social security costs
104,439
95,677

Cost of defined contribution scheme
185,100
56,852

1,503,326
1,543,601


The average monthly number of employees, including the directors, during the year was as follows:


        2024
        2023
            No.
            No.







Management and administration
42
41

The Company has no employees other than the directors, who did not receive any remuneration (2023 - £NIL)
Page 25

 
KBM 2018 LIMITED
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2024

9.


Directors' remuneration

2024
2023
£
£

Directors' emoluments
190,725
183,107

Group contributions to defined contribution pension schemes
73,291
4,841

264,016
187,948


During the year retirement benefits were accruing to 2 directors (2023 - 2) in respect of defined contribution pension schemes.


10.


Interest payable and similar expenses

2024
2023
£
£


Other loan interest payable
37,049
33,960

Finance leases and hire purchase contracts
9,362
8,223

46,411
42,183


11.


Taxation


2024
2023
£
£

Corporation tax


Current tax on profits for the year
175,776
95,637

Adjustments in respect of previous periods
(894)
-


174,882
95,637


Total current tax
174,882
95,637

Deferred tax


Origination and reversal of timing differences
(40,554)
(11,969)

Adjustments in respect of prior periods
1,056
-

Total deferred tax
(39,498)
(11,969)


Tax on profit
135,384
83,668
Page 26

 
KBM 2018 LIMITED
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2024
 
11.Taxation (continued)


Factors affecting tax charge for the year

The tax assessed for the year is higher than (2023 - lower than) the standard rate of corporation tax in the UK of 25% (2023 - 19%). The differences are explained below:

2024
2023
£
£


Profit on ordinary activities before tax
384,728
293,227


Profit on ordinary activities multiplied by standard rate of corporation tax in the UK of 25% (2023 - 19%)
96,182
114,561

Effects of:


Expenses not deductible for tax purposes
56,147
15,356

Capital allowances for year in excess of depreciation
16,062
(2,375)

Remeasurement - change in rates of deferred tax
1,056
(1,610)

Movement in deferred tax not recognised
(389)
(414)

Non-taxable income
(39,030)
-

Chargeable gains
6,250
-

Group Relief
-
(8,495)

Under/(over) provided in prior year
-
(1,068)

Adjustments in respect of prior years
(894)
(14)

Exempt AGBH distributions
-
(32,273)

Total tax charge for the year
135,384
83,668


12.


Dividends

2024
2023
£
£


Dividends paid
145,000
203,675

145,000
203,675

Page 27

 
KBM 2018 LIMITED
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2024

13.


Intangible assets

Group and Company





Goodwill

£



Cost


At 1 September 2023
261,826



At 31 August 2024

261,826



Amortisation


At 1 September 2023
84,647


Charge for the year on owned assets
79,743



At 31 August 2024

164,390



Net book value



At 31 August 2024
97,436



At 31 August 2023
177,179



Page 28

 
KBM 2018 LIMITED
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2024

14.


Tangible fixed assets

Group






Freehold property
Plant and machinery
Motor vehicles
Fixtures and fittings
Total

£
£
£
£
£



Cost or valuation


At 1 September 2023
82,215
136,213
1,015,954
215,688
1,450,070


Additions
-
-
5,951
19,835
25,786


Disposals
-
-
(18,000)
(21,822)
(39,822)



At 31 August 2024

82,215
136,213
1,003,905
213,701
1,436,034



Depreciation


At 1 September 2023
36,173
136,213
599,233
150,996
922,615


Charge for the year on owned assets
1,644
-
166,100
16,648
184,392


Disposals
-
-
(18,000)
(9,139)
(27,139)



At 31 August 2024

37,817
136,213
747,333
158,505
1,079,868



Net book value



At 31 August 2024
44,398
-
256,572
55,196
356,166



At 31 August 2023
46,042
-
416,721
64,692
527,455


The net book value of motor vehicles held under hire purchase contracts is £164,751 (2023 - £347,042).  

Page 29

 
KBM 2018 LIMITED
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2024

           14.Tangible fixed assets (continued)


Company






Plant and machinery
Fixtures and fittings
Total

£
£
£

Cost or valuation


Transfers intra group
136,213
50,605
186,818



At 31 August 2024

136,213
50,605
186,818



Depreciation


Charge for the year on owned assets
-
1,102
1,102


Transfers intra group
136,213
43,258
179,471



At 31 August 2024

136,213
44,360
180,573



Net book value



At 31 August 2024
-
6,245
6,245



At 31 August 2023
-
-
-






Page 30

 
KBM 2018 LIMITED
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2024

15.


Fixed asset investments

Group





Unlisted investments

£



Cost or valuation


At 1 September 2023
900



At 31 August 2024
900






Net book value



At 31 August 2024
900



At 31 August 2023
900

These investments represent minority interests in unlisted merchant buying groups and in the opinion of the directors, their value at cost in the financial statements is a fair reflection of their worth.

Company





Investments in subsidiary companies

£



Cost or valuation


At 1 September 2023
2,273,160


Additions
3,061,840



At 31 August 2024
5,335,000






Net book value



At 31 August 2024
5,335,000



At 31 August 2023
2,273,160

Page 31

 
KBM 2018 LIMITED
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2024

Subsidiary undertakings


The following were subsidiary undertakings of the Company:

Name

Registered office

Class of shares

Holding

Edithfield Holdings Ltd.
9 Edindiach Road, Keith, AB55 5JY
Ordinary
100%
Keith Builders Merchants Limited
9 Edindiach Road, Keith, AB55 5JY
Ordinary
100%


16.


Investment property

Group


Freehold investment property

£



Valuation


At 1 September 2023
1,020,000



At 31 August 2024
1,020,000

The 2024 valuations were made by the Directors, on an open market value for existing use basis.






Company





Freehold investment property

£



Valuation


Transfers intra group
1,020,000



At 31 August 2024
1,020,000

The 2024 valuations were made by the Directors, on an open market value for existing use basis.


Page 32

 
KBM 2018 LIMITED
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2024

17.


Stocks

Group
Group
2024
2023
£
£

Finished goods and goods for resale
1,379,931
1,540,569

1,379,931
1,540,569


The difference between purchase price or production cost of stocks and their replacement cost is not material.


18.


Debtors

Group
Group
Company
Company
2024
2023
2024
2023
£
£
£
£


Trade debtors
1,289,572
1,185,447
-
-

Amounts owed by group undertakings
-
-
-
2,790

Other debtors
86,709
68,921
11
11

Prepayments and accrued income
196,103
159,639
-
1,000

1,572,384
1,414,007
11
3,801



19.


Cash and cash equivalents

Group
Group
Company
Company
2024
2023
2024
2023
£
£
£
£

Cash at bank and in hand
1,079,199
493,304
365,156
292,552

Less: invoice financing
(804,075)
(414,791)
-
-

275,124
78,513
365,156
292,552


Page 33

 
KBM 2018 LIMITED
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2024

20.


Creditors: Amounts falling due within one year

Group
Group
Company
Company
2024
2023
2024
2023
£
£
£
£

Invoice financing
804,075
414,791
-
-

Bank loans
40,000
145,769
40,000
145,769

Trade creditors
2,103,527
1,978,711
48,936
17,209

Amounts owed to group undertakings
-
-
2,921,404
1,982,573

Corporation tax
175,776
95,712
38,401
-

Other taxation and social security
138,325
97,061
-
-

Obligations under finance lease and hire purchase contracts
61,314
94,260
-
-

Other creditors
91,778
75,510
-
-

Accruals and deferred income
7,123
102,217
13,800
4,000

3,421,918
3,004,031
3,062,541
2,149,551



21.


Creditors: Amounts falling due after more than one year

Group
Group
Company
Company
2024
2023
2024
2023
£
£
£
£

Bank loans
330,000
418,816
330,000
418,816

Net obligations under finance leases and hire purchase contracts
30,101
91,416
-
-

360,101
510,232
330,000
418,816


There is an unlimited cross company guarantee between Keith Builders Merchants Limited and other companies in the group.  There is also a debenture in favour of the bank.
In September 2019 the company granted a Fixed and Floating Charge over its assets in return for bank
borrowings. A standard security charge was given over the heritable property in favour of a commercial bank.
Obligations under hire purchase contracts are secured over the assets to which they relate.

Page 34

 
KBM 2018 LIMITED
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2024

22.


Loans


Analysis of the maturity of loans is given below:


Group
Group
Company
Company
2024
2023
2024
2023
£
£
£
£

Amounts falling due within one year

Bank loans
40,000
145,769
40,000
145,769


40,000
145,769
40,000
145,769

Amounts falling due 1-2 years

Bank loans
330,000
418,816
330,000
418,816


330,000
418,816
330,000
418,816



370,000
564,585
370,000
564,585



23.


Hire purchase and finance leases


Minimum lease payments under hire purchase fall due as follows:

Group
Group
Company
Company
2024
2023
2024
2023
£
£
£
£

Within one year
-
94,260
-
94,260

Between 1-5 years
-
91,416
-
91,416

-
185,676
-
185,676


24.


Financial instruments

Group
Group
2024
2023
£
£

Financial assets

Financial assets measured at fair value through profit or loss
1,079,199
493,304




Financial assets measured at fair value through profit or loss comprise cash at bank and in hand.

Page 35

 
KBM 2018 LIMITED
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2024

25.


Deferred taxation


Group



2024


£






At beginning of year
(99,104)


Charged to profit or loss
39,498



At end of year
(59,606)

Company


2024





At beginning of year
-



At end of year
-
The provision for deferred taxation is made up as follows:

Group
Group
2024
2023
£
£

Accelerated capital allowances
(59,606)
(99,104)

(59,606)
(99,104)


26.


Share capital

2024
2023
£
£
Allotted, called up and fully paid



950 (2023 - 950) A Ordinary shares of £0.01 each
9.50
9.50
50 (2023 - 50) B Ordinary shares of £0.01 each
0.50
0.50

10.00

10.00


Preference shares do not have any voting rights.  Voting rights in relation to the A Ordinary and B Ordinary rank pari passu.
Preference shareholders are entitled to a cumulative preferential dividend at an annual rate of 6% of the Issue Price per Preference share.  Following payment of the Preferred Dividend, the A shares shall carry an entitlement to dividends in accordance with the Articles of Association.
 

Page 36

 
KBM 2018 LIMITED
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2024

27.


Reserves

Profit and loss account

The profit and loss account represents accumulated profits and losses of the group, less any distributions to shareholders.


28.


Pension commitments

The group contributes to a defined contribution pension scheme.  The assets of the scheme are held separately from those of the group in an independently administered fund.  Pension commitments totalling £6,799 (2023 - £6,745) were outstanding at the balance sheet date and are included in other creditors.


29.


Commitments under operating leases

At 31 August 2024 the Group and the Company had future minimum lease payments due under non-cancellable operating leases for each of the following periods:


Group
Group
2024
2023
£
£

Not later than 1 year
37,028
-

Later than 1 year and not later than 5 years
65,783
-

102,811
-

30.


Related party transactions

The group has taken advantage of section 33 of FRS 102 which allows exemption from disclosure of related party transactions between 100% owned group companies.
During the year there were dividends paid of £145,000 to directors.


31.


Post balance sheet events

There are no post balance sheet events impacting the company or the group.


32.


Controlling party

The company is controlled by the directors.  The ultimate controlling party is J J Smith by virtue of his majority shareholding in the company.

Page 37