| REGISTERED NUMBER: 11908685 (England and Wales) |
| GROUP STRATEGIC REPORT, |
| REPORT OF THE DIRECTORS AND |
| AUDITED |
| CONSOLIDATED FINANCIAL STATEMENTS |
| FOR THE YEAR ENDED 31ST DECEMBER 2023 |
| FOR |
| SELKENT INVESTMENTS LTD |
| REGISTERED NUMBER: 11908685 (England and Wales) |
| GROUP STRATEGIC REPORT, |
| REPORT OF THE DIRECTORS AND |
| AUDITED |
| CONSOLIDATED FINANCIAL STATEMENTS |
| FOR THE YEAR ENDED 31ST DECEMBER 2023 |
| FOR |
| SELKENT INVESTMENTS LTD |
| SELKENT INVESTMENTS LTD (REGISTERED NUMBER: 11908685) |
| CONTENTS OF THE CONSOLIDATED FINANCIAL STATEMENTS |
| FOR THE YEAR ENDED 31ST DECEMBER 2023 |
| Page |
| Company Information | 1 |
| Group Strategic Report | 2 |
| Report of the Directors | 5 |
| Statement of Directors' Responsibilities | 8 |
| Report of the Independent Auditors | 9 |
| Consolidated Income Statement | 13 |
| Consolidated Other Comprehensive Income | 14 |
| Consolidated Statement of Financial Position | 15 |
| Company Statement of Financial Position | 16 |
| Consolidated Statement of Changes in Equity | 17 |
| Company Statement of Changes in Equity | 18 |
| Consolidated Statement of Cash Flows | 19 |
| Notes to the Consolidated Statement of Cash Flows | 20 |
| Notes to the Consolidated Financial Statements | 21 |
| SELKENT INVESTMENTS LTD |
| COMPANY INFORMATION |
| FOR THE YEAR ENDED 31ST DECEMBER 2023 |
| DIRECTORS: |
| REGISTERED OFFICE: |
| REGISTERED NUMBER: |
| SENIOR STATUTORY AUDITOR: | Matthew Adam Bailey |
| INDEPENDENT AUDITORS: |
| Chartered Certified Accountants |
| Statutory Auditors |
| Newport House |
| Newport Road |
| Stafford |
| Staffordshire |
| ST16 1DA |
| BANKERS: | Lloyds Bank |
| 70-71 Cheapside |
| London |
| EC2V 6EN |
| SOLICITORS: |
| Mercury House |
| Shrewsbury Business Park |
| Shrewsbury |
| SY2 6LG |
| SELKENT INVESTMENTS LTD (REGISTERED NUMBER: 11908685) |
| GROUP STRATEGIC REPORT |
| FOR THE YEAR ENDED 31ST DECEMBER 2023 |
| The directors present their strategic report of the company and the group for the year ended 31st December 2023. |
| REVIEW OF BUSINESS |
| The Directors are pleased with the year's results and the growth achieved with the company's financial position remaining strong with profits up by nearly 16% for the financial year, a testament to the successful revenue generation and cost management efforts. As always, key to our success has been ensuring customer satisfaction remains at the high level of standards we pride ourselves on and what our customers rely on to operate efficiently themselves. |
| The company's liquidity position is strong, with sufficient current assets to meet short-term obligations enabling the company to fulfil its financial commitments and maintain a smooth operation and regular capital expenditure has ensured we continue to improve our operational infrastructure to support the company's growth ambitions. |
| Sustainability and reducing our carbon footprint remain paramount as we deliver on our ambitious growth journey. Selkent continue to fulfil our passion of being a household name on all major construction and infrastructure projects across the UK. |
| KEY PERFORMANCE INDICATORS |
| The directors consider the key performance indicators to be: |
| 2023 | 2022 |
| £ | £ |
| Turnover | 21,648,167 | 20,530,158 |
| Gross profit | 8,039,869 | 7,076,443 |
| Gross profit % | 37.14% | 34.47% |
| EBITDA | 3,390,645 | 3,337,351 |
| EBITDA % | 18.00% | 16.25% |
| Debtor days | 66.72 | 74.58 |
| Creditor days | 53.79 | 69.43 |
| Gearing % | 15.82 | 14.03 |
| PRINCIPAL RISKS AND UNCERTAINTIES |
| The company uses a number of financial instruments which include stock funding, cash, equity and other various items such as trade debtors and trade creditors which arise directly from, its operations. The existence of these financial instruments exposes the company to a number of financial risks, which are described in more detail below. The significant risks arising from the Group's financial instruments are interest rate risk, liquidity risk and credit risk. The directors review and agree policies for the management of each of these risks which are noted below. These policies are consistent with those from the previous year. |
| Interest rate risk |
| The Group utilises a number of traditional funding facilities to manage its working capital position. Management continually monitor their usage to ensure that interest charges are kept to a minimum. |
| International risks |
| International geopolitical risks are increasing in the EU, Russia and China which may adversely affect the UK and these developments are being closely monitored. De-coupling from China in particular and having multiple areas to source high quality products from is seen as key to ensuring we are able to maintain good stock levels and mitigate against issues seen in previous years such as COVID-19 and war. We will therefore be constantly reviewing stock levels and adjusting orders and suppliers accordingly. |
| Liquidity / financial risks |
| The objective in managing liquidity is to ensure that we can continue to meet our financial obligations as they fall due. Our debt-to-equity ratio remains within industry standards, suggesting a balanced capital structure and prudent financial management to ensure we continue to have the ability to meet our short and long-term finance obligations. |
| Whilst price of materials and interest rates which have steadily risen again during the year leading to increased interest payable, our cash position has improved and whilst we regularly offer credit terms to our customers, we will continue to only grant credit to existing customers who continue to satisfy credit worthiness and those that pay to terms. |
| The Group makes efforts to manage the financial risk by the monitoring of cash flow to ensure that the company is able to meet its foreseeable debts as they fall due and to invest any cash assets profitably. |
| Operational risks |
| Mitigating the risk of inadequate or failed internal processes, people and systems is key to achieving any future ambitions. We aim to minimise operational failures through the establishment and subsequent investment in sound systems, controls and audit functions. |
| SELKENT INVESTMENTS LTD (REGISTERED NUMBER: 11908685) |
| GROUP STRATEGIC REPORT |
| FOR THE YEAR ENDED 31ST DECEMBER 2023 |
| Credit risk |
| The Group's principal financial assets are cash and trade debtors. The credit risk associated with cash is limited and therefore the principal credit risk arises from its trade debtors. In order to manage credit risk the directors set limits for customers based on a combination of payment history and third party credit references. These credit limits are reviewed regularly by the directors together with the aged debtors and collection history. |
| Economic climate |
| With interest rates and inflation having been high and the resulting rising cost of living, a wide spectrum of businesses and individuals are still trying to come to grips with the new economic landscape. As we write this report, inflation is settling down to within / close to the Government's target. However, following the recent Autumn Budget, changes in national insurance for employers is adding further pressures to the business that will impact the group from April 2025. We continue to work hand-in-hand with our team, clients and suppliers to ensure they're receiving the appropriate communications to manage and maximise their finances. |
| Suppliers |
| The group operates a purchasing policy which is believed to be fair with our suppliers. We aim to pay invoices on time and conduct our interactions with suppliers in a professional manner. |
| Foreign currency risk |
| The group does not transact in any currencies other than GBP and as such the foreign currency risk is trivial. |
| Our customers - our partners in business |
| The group is proactive in communicating with our customers on a regular basis using various communication methods in a range of methods from face-to-face meetings to social media campaigns. We enhance our service through expert content and case studies supporting them on their business journey. The content is delivered through our website, newsletters, targeted email campaigns, social media and PR. All clients have direct contacts in the group at either director or manager level (or both), becoming an extension of their team and their first point of contact. |
| Manufacturers' supply of new and improved products |
| The Group is reliant on new fastenings, fixings & tool products from its various manufacturer & distribution partners. This exposes the Group to risks in a number of areas as the Group is dependent on its manufacturer/supplier in respect of; availability of new and existing products, quality of new and existing products, pricing of new and existing products. The directors are confident that future new products from its manufacturer partners will continue to be competitively priced and of high quality and therefore consider this "manufacturer risk" minimal. Our manufacturer and distribution partners continue to demonstrate increased investment, development and introduction of innovative products, thus ensuring our product offering remains prominent in the construction supply market. |
| Employee and contractor interests |
| We value our workforce as our greatest asset and as a result, we regularly review our working practices and remuneration approach to ensure we not only attract great talent but that the working environment is conducive to well-balanced working relationships and good work-life balance, as the directors consider this to be the highest priority for sustaining the continued long term success of the business. In this regard additional business staff have been on boarded in the last few years to manage and support the following for the Group: |
| a) the development and growth of the team, |
| b) the change of premises to improve hybrid working and employee wellbeing, and |
| c) foster the Group's business relationships with suppliers, customers and other stakeholders. |
| Economic outlook |
| The success of the business is reliant on consumer spending which fuels the construction industry. Any economic downturn, resulting in a reduction of consumer spending power, will have a direct impact on the income achieved by the company. In response to this risk, senior management aims to keep abreast of economic conditions. In cases of severe economic downturn, marketing and pricing strategies are modified to reflect the new market conditions. |
| Directors' statement of compliance with duty to promote the success of the Group |
| The directors are aware of their responsibilities pursuant to section 172 of the Companies Act 2006. In order to promote the success of the business for all stakeholders and for the long term the directors regularly review internal external stakeholder relationships and the impact that the activities of the business have on these stakeholders |
| Long-term success |
| We are committed to the long-term success of the Selkent Group. All of our strategic decisions take into account the impact on the Groups' financial performance, sustainable growth of shareholder value and enhancing the products we have to offer to our business partners within the construction industry. |
| Future developments |
| The group continues to invest in its team, technology, processes and expansion plans via both organic and acquisitive means if necessary. |
| SELKENT INVESTMENTS LTD (REGISTERED NUMBER: 11908685) |
| GROUP STRATEGIC REPORT |
| FOR THE YEAR ENDED 31ST DECEMBER 2023 |
| Engagement with stakeholders |
| We actively engage with our stakeholders to understand their concerns and expectations. This includes shareholders, employees, contractors, customers, suppliers, and the wider construction supply chain community. This engagement informs our decision-making process and helps us balance competing interests. As a result of these activities, the directors believe that they have demonstrated compliance with their legal duty under s.172 of the Companies Act 2006. |
| Statement of disclosure to auditor |
| So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the auditor of the company is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the auditor of the company is aware of that information. |
| Post balance sheet review |
| The post balance sheet review reveals a financially healthy position and continued revenue growth into 2024 suggesting a strong foundation for future growth and investment. Continued monitoring of financial indicators and proactive financial management will be crucial to sustain and enhance this favourable position, particularly as we see some customers struggle with being locked into fixed price contracts as inflation, raw material prices and interest rates continue to rise.The directors continue to constantly pay extremely close attention to cashflow projections and are happy with the continued improving outlook and therefore consider it appropriate to continue on a going concern basis. |
| ON BEHALF OF THE BOARD: |
| SELKENT INVESTMENTS LTD (REGISTERED NUMBER: 11908685) |
| REPORT OF THE DIRECTORS |
| FOR THE YEAR ENDED 31ST DECEMBER 2023 |
| The directors present their report with the financial statements of the company and the group for the year ended 31st December 2023. |
| PRINCIPAL ACTIVITY |
| a Group Ultimate Holding company. |
| DIVIDENDS |
| The total distribution of dividends for the year ended 31st December 2023 will be £ 1,094,400 . |
| FUTURE DEVELOPMENTS |
| Please refer to the strategic report for activities and the likely future developments of the company and a discussion of the risks and uncertainties. |
| DIRECTORS |
| The directors shown below have held office during the whole of the period from 1st January 2023 to the date of this report. |
| EVENTS AFTER THE END OF THE REPORTING PERIOD |
| There are no significant events to report. |
| DISCLOSURE OF INFORMATION IN THE STRATEGIC REPORT |
| The directors have opted to disclose the company's results and its financial risk management objectives and policies within the strategic report as they consider these items to be of sufficient strategic importance to the financial statements. |
| GREENHOUSE GAS EMISSIONS AND ENERGY CONSUMPTION |
| The group has not consumed more than 40,000 kWh of energy in this reporting period. Therefore, the group qualifies as a low energy user under these regulations and is not required to report on its emissions, energy consumption or energy efficiency activities. |
| GOING CONCERN |
| At the time of approving the financial statements, the directors have a reasonable expectation that the group has adequate resources to continue In operational existence for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements. |
| The directors of the group have reported a record profit for the period. The group continues to be cash generative and continues to meet its obligations as they fall due. |
| STRATEGIC REPORT |
| The group has chosen in accordance with Companies Act 2006, s. 414C(11) to set out in the group's strategic report information required by Large and Medium-sized Companies and Groups (Accounts and Reports) Regulations 2008, Sch. 7 to be contained in the directors' report. It has done so in respect of discussion of engagement with employees, and the need to foster the company's business relationships with suppliers, clients and other stakeholders |
| DE-GROUPING OF SUBSIDIARY |
| Accounting policy |
| During the financial year, Selkent Holdings Limited was de-grouped and transferred to connected parties. The de-grouping was undertaken based on the special rights applicable to certain shareholders within the De-Grouped Subsidiary, as outlined in Clause 19.9(a) and Clause 19.9(b) of the respective company articles. |
| Impact of de-grouping |
| The de-grouping was structured to ensure that the transfer of ownership did not result in a material loss to the group, as the appreciation of the property was always considered a non-group equity item. Additionally, the transfer of the preference debt (£1,515,000) ensured that no transfer of value occurred as the debt was now outside of the Group and no longer payable. |
| SELKENT INVESTMENTS LTD (REGISTERED NUMBER: 11908685) |
| REPORT OF THE DIRECTORS |
| FOR THE YEAR ENDED 31ST DECEMBER 2023 |
| ANALYSIS OF SHAREHOLDER ENTITLEMENTS |
| Preference shares (clause 19.9(a)) |
| Entitled to their issue price plus any accrued preferred dividends upon liquidation. |
| At the time of de-grouping, 1,515,481 preference shares were issued. |
| The preference share value remains limited to its face value and does not include participation in capital growth. |
| P shares (clause 19.9(b)) |
| Upon liquidation, entitled to the market value of the property minus its initial property value (£1,600,000 per the articles) or the sale proceeds minus the initial property value. Based on revaluations, the property was worth £3,173,500, implying that "P" shares had an capital entitlement of £1,573,500. |
| Matters to note |
| The actual cost of the property to the Group was originally £1,623,500. This value differs from that of the company articles. |
| De-grouping valuation summary |
| Category | De-Group Value | True Value |
| Property Value | £3,173,500 | £3,173,500 |
| Less: Initial Property Value | (£1,600,000) | (£1,623,500) |
| Net Entitlement | £1,573,500 | £1,550,000 |
| Preference Shares | £1,515,481 | £1,515,481 |
| Total Value | £3,088,981 | £3,065,481 |
| On the day of the De-Grouping (13th April 23) the net assets of the Selkent Holdings Limited were £3,413,018. As this value exceeded the capital entitlement of the shares the directors agreed that they would repay a sum of £347,537 to Selkent Investments Limited. As such the asset has been classified as a "Related Party" debtor within the financial statements. |
| Net assets transferred | (£3,413,018) |
| Less |
| Due from related party | £ 347,537 |
| Deemed net transfer | (£3,065,481) |
| Directors confirmation |
| The directors, in consultation with their tax advisors, confirm that the de-grouping has been executed in compliance with FRS 102 and that there has been no material loss to the group. The transaction reflects the equitable transfer of shareholder entitlements and maintains the integrity of the financial statements. |
| Prior year adjustment |
| On 13 April 2023, Selkent Holdings Limited was transferred out of the Group. During this process, it was identified that the directors had previously disclosed a fair value gain of £1,255,500 on a property as equity attributed to the Selkent Investment Shareholders. However, in accordance with the Company Articles, this appreciation was in fact assigned to the "P" shareholders of Selkent Holdings Limited. |
| A prior period adjustment has been made to rectify this misclassification in equity reporting. This adjustment accurately reflects the correct assignment of the property's appreciation as per the governance structure of the Company. The correction does not impact the profit and loss account. |
| Deferred taxation reversal |
| As stated above, a prior period adjustment was made to reflect the correct allocation of the fair value appreciation of property within Selkent Holdings Limited. |
| As a result of this correction, any taxation liability arising from the appreciation is now the responsibility of the "P" shareholders rather than the Group. Consequently, the deferred taxation provision previously made in respect of this liability has been reversed in the 2023 financial statements. The total provision as at 31 December 2022 was £294,500, and this adjustment ensures that the accounts accurately reflect the governance structure outlined in the Company Articles. |
| The directors have confirmed that this correction does not impact the profit and loss account but ensures compliance with the correct financial reporting principles. |
| 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. |
| SELKENT INVESTMENTS LTD (REGISTERED NUMBER: 11908685) |
| REPORT OF THE DIRECTORS |
| FOR THE YEAR ENDED 31ST DECEMBER 2023 |
| AUDITORS |
| The auditors, Howards Limited, will be proposed for re-appointment at the forthcoming Annual General Meeting. |
| ON BEHALF OF THE BOARD: |
| SELKENT INVESTMENTS LTD (REGISTERED NUMBER: 11908685) |
| STATEMENT OF DIRECTORS' RESPONSIBILITIES |
| FOR THE YEAR ENDED 31ST DECEMBER 2023 |
| 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. |
| REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
| SELKENT INVESTMENTS LTD |
| Opinion |
| We have audited the financial statements of Selkent Investments Ltd (the 'parent company') and its subsidiaries (the 'group') for the year ended 31st December 2023 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 31st December 2023 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. |
| Key audit matters |
| Tax planning undertaken by the Group |
| We draw attention to the fact that the Group has undertaken various tax planning strategies during the financial year. Our audit procedures were designed to obtain reasonable assurance regarding the financial statements as a whole and did not extend to assessing the appropriateness, effectiveness, or compliance of these tax planning strategies with applicable tax laws and regulations. |
| Accordingly, we express no opinion on the validity or potential outcomes of these strategies. |
| REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
| SELKENT INVESTMENTS LTD |
| Other information |
| The directors are responsible for the other information. The other information comprises the information in the Group Strategic Report, the Report of the Directors and the Statement of Directors' Responsibilities, 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. |
| The other information comprises the information included in the financial statements other than the financial statements and our auditors' report thereon. |
| The directors are responsible for the other information contained within the financial statements. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. |
| Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. |
| We have nothing to report in this regard. |
| Opinions on other matters prescribed by the Companies Act 2006 |
| In our opinion, based on the work undertaken in the course of 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 Directors' Responsibilities Statement set out on page seven, 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. |
| During the year the Group undertook various Group tax planning strategies with a view to benefit the Group as a whole. The directors acknowledge that it is not the auditors responsibility to pass comment or to giver an opinion on the tax planning that was undertook under the instruction of the directors. |
| In preparing the financial statements, the directors are responsible for assessing the Group'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 to cease operations, or have no realistic alternative but to do so. |
| REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
| SELKENT INVESTMENTS LTD |
| Auditors' responsibilities for the audit of the financial statements |
| Our objectives are to obtain reasonable assurance about whether the group financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. |
| Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements. |
| 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. |
| As part of our planning process: |
| - We enquired of management the systems and controls the group has in place, the areas of the financial statements that are mostly susceptible to the risk of irregularities and fraud, and whether there was any known, suspected or alleged fraud. The group did not inform us of any known, suspected or alleged fraud. |
| - We obtained an understanding of the legal and regulatory frameworks applicable to the group. We determined that the following were most relevant: FRS 102, Companies Act 2006 & the Health and Safety at Work etc Act 1974. |
| - We considered the incentives and opportunities that exist in the group, including the extent of management bias, which present a potential for irregularities and fraud to be perpetuated, and tailored our risk assessment accordingly. |
| - Using our knowledge of the group, together with the discussions held with the group at the planning stage, we formed a conclusion on the risk of misstatement due to irregularities including fraud and tailored our procedures according to this risk assessment. |
| The key procedures we undertook to detect irregularities including fraud during the course of the audit included: |
| - The group is subject to many laws and regulations where the consequences of non-compliance could have a material effect on amounts or disclosures in the financial statements. We identified the following laws and regulations as the most likely to have a material effect if non-compliance were to occur; financial reporting legislation, Companies Act legislation, and tax legislation: |
| - These audit procedures were designed to provide reasonable assurance that the financial statements were free from fraud or error. The risk of not detecting a materiel misstatement due to fraud is higher than the risk of not detecting one resulting from error and detecting irregularities that result from fraud is inherently more difficult than detecting those that result from error, as fraud may involve collusion, deliberate concealment, forgery or intentional misrepresentations. Also, the further removed non-compliance with laws and regulations is from events and transactions reflected in the financial statements, the less likely we would become aware of it; |
| - Identifying and testing journal entries and the overall accounting records, in particular those that were significant and unusual. |
| - Reviewing the financial statement disclosures and determining whether accounting policies have been appropriately applied |
| - Reviewing and challenging the assumptions and judgements used by management in their significant accounting estimates, in particular in relation to doubtful debt provisions, inventory valuations & depreciation methods. |
| - Assessing the extent of compliance, or lack of, with the relevant laws and regulations. |
| - Testing key revenue lines, in particular cut-off, for evidence of management bias. |
| - Performing a physical verification of key assets and stock items (including testing of the stock system). |
| - Obtaining third-party confirmation of material bank and loan balances. |
| - Documenting and verifying all significant related party balances and transactions. |
| - Reviewing documentation such as the company board minutes, correspondence with solicitors, for discussions of irregularities including fraud. |
| Owing to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material misstatements in the financial statements even though we have properly planned and performed our audit in accordance with auditing standards. The primary responsibility for the prevention and detection of irregularities and fraud rests with the directors. |
| A further description of our responsibilities is available on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report. |
| REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
| SELKENT INVESTMENTS LTD |
| 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 Certified Accountants |
| Statutory Auditors |
| Newport House |
| Newport Road |
| Stafford |
| Staffordshire |
| ST16 1DA |
| SELKENT INVESTMENTS LTD (REGISTERED NUMBER: 11908685) |
| CONSOLIDATED |
| INCOME STATEMENT |
| FOR THE YEAR ENDED 31ST DECEMBER 2023 |
| 2023 | 2022 |
| Notes | £ | £ |
| TURNOVER | 3 | 21,648,167 | 20,530,158 |
| Cost of sales | 13,608,298 | 13,453,715 |
| GROSS PROFIT | 8,039,869 | 7,076,443 |
| Administrative expenses | 4,471,704 | 4,103,704 |
| 3,568,165 | 2,972,739 |
| Other operating income | 73,736 | 135,896 |
| OPERATING PROFIT | 5 | 3,641,901 | 3,108,635 |
| Interest receivable and similar income | 1,006 | 2,206 |
| 3,642,907 | 3,110,841 |
| Interest payable and similar expenses | 6 | 249,846 | 177,887 |
| PROFIT BEFORE TAXATION | 3,393,061 | 2,932,954 |
| Tax on profit | 7 | 861,080 | 286,171 |
| PROFIT FOR THE FINANCIAL YEAR |
| Profit attributable to: |
| Owners of the parent | 2,531,981 | 2,645,966 |
| Non-controlling interests | - | 817 |
| 2,531,981 | 2,646,783 |
| SELKENT INVESTMENTS LTD (REGISTERED NUMBER: 11908685) |
| CONSOLIDATED |
| OTHER COMPREHENSIVE INCOME |
| FOR THE YEAR ENDED 31ST DECEMBER 2023 |
| 2023 | 2022 |
| Notes | £ | £ |
| PROFIT FOR THE YEAR | 2,531,981 | 2,646,783 |
| OTHER COMPREHENSIVE INCOME |
| Transfer to minority shareholders | - | (1,255,500 | ) |
| Income tax relating to other comprehensive income |
- |
- |
| OTHER COMPREHENSIVE INCOME FOR THE YEAR, NET OF INCOME TAX |
- |
(1,255,500 |
) |
| TOTAL COMPREHENSIVE INCOME FOR THE YEAR |
2,531,981 |
1,391,283 |
| Total comprehensive income attributable to: |
| Owners of the parent | 3,798,876 | 1,391,283 |
| Non-controlling interests | (1,266,895 | ) | - |
| 2,531,981 | 1,391,283 |
| SELKENT INVESTMENTS LTD (REGISTERED NUMBER: 11908685) |
| CONSOLIDATED STATEMENT OF FINANCIAL POSITION |
| 31ST DECEMBER 2023 |
| 2023 | 2022 |
| Notes | £ | £ | £ |
| FIXED ASSETS |
| Intangible assets | 11 | - | - |
| Tangible assets | 12 | 912,623 | 902,802 |
| Investments | 13 | - | - |
| Investment property | 14 | 4,985,000 | 8,158,500 |
| 5,897,623 | 9,061,302 |
| CURRENT ASSETS |
| Stocks | 15 | 2,657,533 | 2,390,931 |
| Debtors | 16 | 4,586,132 | 4,945,807 |
| Prepayments and accrued income | 263,403 | 170,431 |
| Cash at bank | 800,135 | 764,884 |
| 8,307,203 | 8,272,053 |
| CREDITORS |
| Amounts falling due within one year | 17 | 3,645,502 | 4,948,567 |
| NET CURRENT ASSETS | 4,661,701 | 3,323,486 |
| TOTAL ASSETS LESS CURRENT LIABILITIES |
10,559,324 |
12,384,788 |
| CREDITORS |
| Amounts falling due after more than one year |
18 |
(3,390,446 |
) |
(3,722,355 |
) |
| PROVISIONS FOR LIABILITIES | 23 | (240,969 | ) | (468,984 | ) |
| ACCRUALS AND DEFERRED INCOME | 24 | (145,728 | ) | (66,473 | ) |
| NET ASSETS | 6,782,181 | 8,126,976 |
| CAPITAL AND RESERVES |
| Called up share capital | 25 | 1,009 | 1,516,490 |
| Fair value reserve | 26 | 1,088,053 | 1,175,098 |
| Capital redemption reserve | 26 | 1,009 | - |
| Retained earnings | 26 | 5,692,110 | 4,168,493 |
| SHAREHOLDERS' FUNDS | 6,782,181 | 6,860,081 |
| NON-CONTROLLING INTERESTS | 27 | - | 1,266,895 |
| TOTAL EQUITY | 6,782,181 | 8,126,976 |
| The financial statements were approved by the Board of Directors and authorised for issue on 13th June 2025 and were signed on its behalf by: |
| J A Bushnell - Director |
| SELKENT INVESTMENTS LTD (REGISTERED NUMBER: 11908685) |
| COMPANY STATEMENT OF FINANCIAL POSITION |
| 31ST DECEMBER 2023 |
| 2023 | 2022 |
| Notes | £ | £ | £ |
| FIXED ASSETS |
| Intangible assets | 11 |
| Tangible assets | 12 |
| Investments | 13 |
| Investment property | 14 |
| CURRENT ASSETS |
| Debtors | 16 |
| Cash at bank |
| CREDITORS |
| Amounts falling due within one year | 17 |
| NET CURRENT LIABILITIES | ( |
) | ( |
) |
| TOTAL ASSETS LESS CURRENT LIABILITIES |
| CREDITORS |
| Amounts falling due after more than one year |
18 |
( |
) |
( |
) |
| PROVISIONS FOR LIABILITIES | 23 | ( |
) | ( |
) |
| ACCRUALS AND DEFERRED INCOME | 24 | ( |
) | ( |
) |
| NET ASSETS |
| CAPITAL AND RESERVES |
| Called up share capital | 25 |
| Fair value reserve |
| Capital redemption reserve |
| Retained earnings |
| SHAREHOLDERS' FUNDS |
| Company's profit for the financial year | 1,179,598 | 942,130 |
| The financial statements were approved by the Board of Directors and authorised for issue on |
| SELKENT INVESTMENTS LTD (REGISTERED NUMBER: 11908685) |
| CONSOLIDATED STATEMENT OF CHANGES IN EQUITY |
| FOR THE YEAR ENDED 31ST DECEMBER 2023 |
| Called up | Fair |
| share | Retained | value |
| capital | earnings | reserve |
| £ | £ | £ |
| Balance at 1st January 2022 | 1,516,490 | 2,383,934 | 2,430,598 |
| As restated | 1,516,490 | 2,383,934 | 2,430,598 |
| Changes in equity |
| Dividends | - | (861,407 | ) | - |
| Total comprehensive income | - | 2,645,966 | (1,255,500 | ) |
| Balance at 31st December 2022 | 1,516,490 | 4,168,493 | 1,175,098 |
| Changes in equity |
| Deferred tax | - | 87,045 | (87,045 | ) |
| Reduction in share capital | (1,515,481 | ) | - | - |
| Dividends | - | (1,094,400 | ) | - |
| Total comprehensive income | - | 2,530,972 | - |
| Balance at 31st December 2023 | 1,009 | 5,692,110 | 1,088,053 |
| Capital |
| redemption | Non-controlling | Total |
| reserve | Total | interests | equity |
| £ | £ | £ | £ |
| Balance at 1st January 2022 | - | 6,331,022 | 10,578 | 6,341,600 |
| Prior year adjustment | - | - | 1,255,500 | 1,255,500 |
| As restated | - | 6,331,022 | 1,266,078 | 7,597,100 |
| Changes in equity |
| Attributable to non- |
| controlling interest | - | - | 817 | 817 |
| Dividends | - | (861,407 | ) | - | (861,407 | ) |
| Total comprehensive income | - | 1,390,466 | - | 1,390,466 |
| Balance at 31st December 2022 | - | 6,860,081 | 1,266,895 | 8,126,976 |
| Changes in equity |
| Reduction in share capital | - | (1,515,481 | ) | - | (1,515,481 | ) |
| Dividends | - | (1,094,400 | ) | - | (1,094,400 | ) |
| Total comprehensive income | 1,009 | 2,531,981 | (1,266,895 | ) | 1,265,086 |
| Balance at 31st December 2023 | 1,009 | 6,782,181 | - | 6,782,181 |
| SELKENT INVESTMENTS LTD (REGISTERED NUMBER: 11908685) |
| COMPANY STATEMENT OF CHANGES IN EQUITY |
| FOR THE YEAR ENDED 31ST DECEMBER 2023 |
| Called up | Fair | Capital |
| share | Retained | value | redemption | Total |
| capital | earnings | reserve | reserve | equity |
| £ | £ | £ | £ | £ |
| Balance at 1st January 2022 |
| Changes in equity |
| Dividends | - | ( |
) | - | - | ( |
) |
| Total comprehensive income | - |
| Balance at 31st December 2022 |
| Changes in equity |
| Deferred tax | - | 87,045 | (87,045 | ) | - | - |
| Dividends | - | ( |
) | - | - | ( |
) |
| Total comprehensive income | - |
| Balance at 31st December 2023 |
| SELKENT INVESTMENTS LTD (REGISTERED NUMBER: 11908685) |
| CONSOLIDATED STATEMENT OF CASH FLOWS |
| FOR THE YEAR ENDED 31ST DECEMBER 2023 |
| 2023 | 2022 |
| Notes | £ | £ |
| Cash flows from operating activities |
| Cash generated from operations | 1 | 2,393,157 | 2,313,128 |
| Interest paid | (227,114 | ) | (160,346 | ) |
| Interest element of hire purchase and finance lease rental payments paid |
(22,732 |
) |
(17,541 |
) |
| Government grants | - | 5,000 |
| Tax paid | (889,171 | ) | (209,450 | ) |
| Net cash from operating activities | 1,254,140 | 1,930,791 |
| Cash flows from investing activities |
| Purchase of tangible fixed assets | (430,871 | ) | (353,333 | ) |
| Sale of tangible fixed assets | 158,917 | 83,994 |
| Interest received | 1,006 | 2,206 |
| Net cash from investing activities | (270,948 | ) | (267,133 | ) |
| Cash flows from financing activities |
| Loan repayments in year | (152,675 | ) | (154,865 | ) |
| Capital repayments in year | (10,569 | ) | 22,908 |
| Amount introduced by directors | 538,171 | 245,146 |
| Amount withdrawn by directors | (228,468 | ) | (635,906 | ) |
| Equity dividends paid | (1,094,400 | ) | (861,407 | ) |
| Net cash from financing activities | (947,941 | ) | (1,384,124 | ) |
| Increase in cash and cash equivalents | 35,251 | 279,534 |
| Cash and cash equivalents at beginning of year |
2 |
764,884 |
485,350 |
| Cash and cash equivalents at end of year | 2 | 800,135 | 764,884 |
| SELKENT INVESTMENTS LTD (REGISTERED NUMBER: 11908685) |
| NOTES TO THE CONSOLIDATED STATEMENT OF CASH FLOWS |
| FOR THE YEAR ENDED 31ST DECEMBER 2023 |
| 1. | RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS |
| 2023 | 2022 |
| £ | £ |
| Profit before taxation | 3,393,061 | 2,932,954 |
| Depreciation charges | 310,548 | 278,280 |
| Profit on disposal of fixed assets | (48,416 | ) | (53,976 | ) |
| Government grants | - | (5,000 | ) |
| Finance costs | 249,846 | 177,887 |
| Finance income | (1,006 | ) | (2,206 | ) |
| 3,904,033 | 3,327,939 |
| Increase in stocks | (266,602 | ) | (766,853 | ) |
| Increase in trade and other debtors | (205,237 | ) | (1,185,181 | ) |
| (Decrease)/increase in trade and other creditors | (1,039,037 | ) | 937,223 |
| Cash generated from operations | 2,393,157 | 2,313,128 |
| 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 31st December 2023 |
| 31.12.23 | 1.1.23 |
| £ | £ |
| Cash and cash equivalents | 800,135 | 764,884 |
| Year ended 31st December 2022 |
| 31.12.22 | 1.1.22 |
| £ | £ |
| Cash and cash equivalents | 764,884 | 485,350 |
| 3. | ANALYSIS OF CHANGES IN NET DEBT |
| At 1.1.23 | Cash flow | At 31.12.23 |
| £ | £ | £ |
| Net cash |
| Cash at bank | 764,884 | 35,251 | 800,135 |
| 764,884 | 35,251 | 800,135 |
| Debt |
| Hire purchase and finance leases | (563,509 | ) | 10,569 | (552,940 | ) |
| Debts falling due within 1 year | (160,073 | ) | 7,399 | (152,674 | ) |
| Debts falling due after 1 year | (1,682,555 | ) | 145,276 | (1,537,279 | ) |
| (2,406,137 | ) | 163,244 | (2,242,893 | ) |
| Total | (1,641,253 | ) | 198,495 | (1,442,758 | ) |
| SELKENT INVESTMENTS LTD (REGISTERED NUMBER: 11908685) |
| NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS |
| FOR THE YEAR ENDED 31ST DECEMBER 2023 |
| 1. | STATUTORY INFORMATION |
| Selkent Investments Limited is a private company, limited by shares, registered in England and Wales. The company's registered number is 11908685 and the registered office address is Riverside House, Kangley Bridge Road, Sydenham, London, SE26 5DA. |
| The principal activity of the company is that of holding investments and the principal activity of the group is that of the supply of fastenings, fixings and tools to the construction and civil engineering sectors. |
| 2. | ACCOUNTING POLICIES |
| Basis of preparing the 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. |
| The functional and presentational currency of the group is GBP (£). |
| Basis of consolidation |
| The consolidated financial statements present the results of the company and it's 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 Statement of Financial Position, 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 Profit and Loss Account from the date on which control is obtained. They are deconsolidated from the date control ceases. |
| Significant judgements and estimates |
| In determining and applying accounting policies, judgement is often required in respect of items where the choice of specific policy, accounting estimate or assumption to be followed could materially affect the reported results or net asset position of the company; it may later be determined that a different choice would have been more appropriate. Management considers that certain accounting estimates and assumptions relating to revenue, taxation, tangible fixed assets, provisions and contingent liabilities and accruals are its critical accounting estimates. |
| Turnover and revenue recognition |
| Turnover is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business, and is shown net of VAT and other sales related taxes. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates. |
| Revenue is only recognised when the risks and rewards of ownership are transferred to the customer at an amount that reflects the consideration to which the Group expects to be entitled in exchange for those goods. For the sale of services, revenue is recognised when the service has been completed. |
| Where customers have a right to return purchased goods in exchange for a refund, a liability for returns is recognised within other payables and is based on historic trends and offset against revenue and cost of sales in the period in which the sale was made. |
| Other income |
| Other income is generally composed primarily of external rental income and profits and losses on disposal of assets. |
| Rental income from operating leases is recognised on a straight line basis over the term of the relevant lease. Initial direct costs incurred in negotiating and arranging an operating lease are capitalised and then depreciated on a straight line basis over the lease term. |
| Interest income is recognised when it is probable that the economic benefits will flow to the Group and the amount of revenue can be measured reliably. Interest income is accrued on a time basis, by reference to the principal outstanding and at the effective interest rate applicable, which is the rate that exactly discounts estimated future cash receipts through the expected life of the financial asset to that asset's net carrying amount on initial recognition. |
| SELKENT INVESTMENTS LTD (REGISTERED NUMBER: 11908685) |
| NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
| FOR THE YEAR ENDED 31ST DECEMBER 2023 |
| 2. | ACCOUNTING POLICIES - continued |
| Tangible fixed assets |
| Plant and machinery | - |
| Fixtures and fittings | - |
| Motor vehicles | - |
| Computer equipment | - |
| Investment property |
| Investment property is shown at most recent valuation. Any aggregate surplus or deficit arising from changes in fair value is recognised in profit or loss. |
| Stocks |
| Stock is valued at the lower of cost and net realisable value. Cost is determined on a first in first out basis. Net realisable value represents estimated selling price less costs to complete and sell. Provision is made for slow moving, obsolete or damaged stock where the net realisable value is less than cost. |
| Financial instruments |
| The company only enters into basic financial instruments transactions that result in the recognition of financial assets and liabilities like trade and other accounts receivable and payable, loans from banks and other third parties, loans to related parties and investments in non-puttable ordinary shares. |
| Financial assets that are measured at cost and amortised cost are assessed at the end of each reporting period for objective evidence of impairment. If objective evidence of impairment is found, an impairment loss is recognised in profit or loss. |
| For financial assets measured at amortised cost, the impairment loss is measured as the difference between an asset's carrying amount and the present value of estimated cash flows discounted at the asset's original effective interest rate. If a financial asset has a variable interest rate, the discount rate for measuring any impairment loss is the current effective interest rate determined under the contract. |
| For financial assets measured at cost less impairment, the impairment loss is measured as the difference between an asset's carrying amount and the best estimate, which is an approximation, of the amount that the company would receive for the asset if it were to be sold at the reporting date. |
| Financial assets and liabilities are offset and the net amount reported in the statement of financial position when there is an 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. |
| 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. |
| SELKENT INVESTMENTS LTD (REGISTERED NUMBER: 11908685) |
| NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
| FOR THE YEAR ENDED 31ST DECEMBER 2023 |
| 2. | ACCOUNTING POLICIES - continued |
| Foreign currencies |
| Assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the statement of financial position date. Transactions in foreign currencies are translated into sterling at the rate of exchange ruling at the date of transaction. Exchange differences are taken into account in arriving at the operating result. |
| Hire purchase and leasing commitments |
| 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. |
| 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. |
| Provisions |
| Provisions are recognised when the group has a legal or constructive obligation at the reporting date as a result of a past event, it is probable that the group will be required to settle the obligation and the amount of the obligation can be reliably estimated. Provisions are recognised at the best estimate of the amount required to settle the obligation at the reporting date. |
| Impairment of non-financial assets |
| At each reporting date non-financial assets not carried at fair value, like goodwill and tangible fixed assets, are reviewed to determine whether there is an indication that an asset may be impaired. If there is an indication of possible impairment, the recoverable amount of any asset or group of related assets, which is the higher of value in use and the fair value less cost to sell, is estimated and compared with its carrying amount. If the recoverable amount is lower, the carrying amount of the asset is reduced to its recoverable amount and an impairment loss is recognised immediately in profit or loss. |
| Inventories are also assessed for impairment at each reporting date. The carrying amount of each item of inventory, or group of similar items, is compared with its selling price less costs to complete and sell. If an item of inventory or group of similar items is impaired, its carrying amount is reduced to selling price less costs to complete and sell, and an impairment loss is recognised immediately in profit or loss. |
| If an impairment loss is subsequently reversed, the carrying amount of the asset or group of related assets is increased to the revised estimate of its recoverable amount, but not to exceed the amount that would have been determined had no impairment loss been recognised for the asset or group of related assets in prior periods. A reversal of an impairment loss is recognised immediately in profit or loss. |
| Impairment of tangible assets |
| Property, plant and equipment are reviewed for impairment if events or changes in circumstances indicate that the carrying amount may not be recoverable. Any impairment in value is charged to the income statement in the period in which it occurs. |
| Employee benefits |
| The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets. |
| The cost of any unused holiday entitlement is recognised in the period in which the employee's services are received. |
| Termination benefits are recognised immediately as an expense when the, company is demonstrably committed to terminate the employment of an employee or to provide termination benefits. |
| SELKENT INVESTMENTS LTD (REGISTERED NUMBER: 11908685) |
| NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
| FOR THE YEAR ENDED 31ST DECEMBER 2023 |
| 2. | ACCOUNTING POLICIES - continued |
| Leased assets |
| Where assets are financed by leasing agreements which give rights approximating to ownership, the assets are treated as if they had been purchased outright. The amount capitalised is the lower of the fair value or the present value of the minimum lease payments during the lease term at the inception of the lease. The assets are depreciated over the shorter of the lease term or their useful life. Obligations relating to finance leases, net of finance charges in respect of future periods, are included, as appropriate, under borrowings due within or after one year. The finance charge element of rentals is charged to finance costs in the income statement over the lease term. |
| All other leases are operating leases and the rental payments are generally charged to the income statement in the period to which the payments relate, except for those leases which incorporate fixed minimum rental uplift clauses. |
| Leases which contain fixed minimum rental uplifts are charged to the income statement on a straight line basis over the lease term. |
| Incentives received or paid to enter into lease agreements are released to the income statement on a straight line basis over the lease term. |
| Trade receivables |
| Trade receivables are initially recognised at fair value and are subsequently measured at amortised cost less any provision for bad and doubtful debts. |
| Classification of financial liabilities |
| Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the group after deducting all of its liabilities. |
| Trade payables are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade payables are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method. |
| Rebates |
| Rebates received from suppliers mainly comprise volume related rebates on the purchase of inventories. Contractual volume related rebates are accrued as units are purchased based on the percentage rebate applicable to forecast total purchases over the rebate period, where it is probable the rebates will be received and the amounts can be estimated. |
| 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. |
| Minority interests in consolidated financial statements |
| Recognition and Measurement: |
| Minority interests represent the portion of equity in a subsidiary that is not attributable to the parent company. They are recognised in the consolidated financial statements as a separate component of equity. |
| - Minority interests are measured at their proportionate share of the subsidiary's net assets at the acquisition date. |
| - Any subsequent changes in the subsidiary's equity, including retained earnings, are allocated to both the parent and minority interests based on their respective ownership percentages. |
| Presentation in Financial Statements: |
| - Minority interests are presented separately within the equity section of the consolidated balance sheet. |
| - In the consolidated income statement, the share of profit or loss attributable to minority interests is disclosed separately after the group's net profit. |
| Transactions with Minority Shareholders: |
| - Changes in the parent's ownership interest in a subsidiary that do not result in a loss of control are accounted for as equity transactions. |
| - If the parent acquires additional shares from minority shareholders, the difference between the purchase price and the carrying amount of the minority interest is recognised directly in equity. |
| - If the parent disposes of a portion of its interest but retains control, the gain or loss is recognised in equity rather than in profit or loss. |
| SELKENT INVESTMENTS LTD (REGISTERED NUMBER: 11908685) |
| NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
| FOR THE YEAR ENDED 31ST DECEMBER 2023 |
| 2. | ACCOUNTING POLICIES - continued |
| Losses Attributable to Minority Interests: |
| - If a subsidiary incurs losses, these are allocated to both the parent and minority interests based on their ownership percentages. |
| - If minority interests' share of losses exceeds their equity investment, the excess losses may be allocated to the parent unless there is a binding obligation for minority shareholders to cover their share. |
| Disposal of a subsidiary |
| Recognition and Measurement |
| When a subsidiary is transferred out of the group, the parent company derecognises the subsidiary's assets, liabilities, and any related non-controlling interests from the consolidated financial statements. |
| The gain or loss on disposal is calculated as the difference between: |
| - The fair value of consideration received. |
| - The carrying amount of the subsidiary's net assets at the date of disposal. |
| - Any cumulative foreign exchange translation adjustments related to the subsidiary. |
| Presentation in Financial Statements |
| - The results of the subsidiary are included in the consolidated income statement up to the date of disposal. |
| - The gain or loss on disposal is presented separately in the income statement under discontinued operations (if applicable). |
| - The subsidiary's assets and liabilities are removed from the consolidated balance sheet. |
| Accounting Treatment for Partial Disposal |
| - If the parent loses control but retains an equity interest, the remaining investment is reclassified as an associate or financial asset. |
| - If the parent retains control, the transaction is treated as an equity transaction, with no gain or loss recognised. |
| Disclosure Requirements |
| The financial statements must disclose: |
| - The nature and reason for the disposal. |
| - The financial impact of the disposal, including the gain or loss recognised. |
| - The treatment of any remaining interest in the former subsidiary. |
| The Group Directors believe this policy aligns with IFRS 10 (Consolidated Financial Statements) and IFRS 3 (Business Combinations), ensuring transparency in financial reporting. |
| Going concern |
| In assessing the going concern basis of preparing the financial statements, the Directors considered the Company's Business activities, financial position and financial risk management objectives and policies. The Group achieved a record profit before tax of £3,393k (2022 - £2,933k) and had a year-end net asset position of £6,488k (2022 - £7,832k). The net current asset position at year end totalled £4,662k (2023: £3,323k). |
| The Group's forecasts and projections, taking account of reasonably possible changes in trading performance and the economic challenges from increase inflation and interest rates, and considering the treasury arrangements and cash flows, show that the Group will be funded with continued profitability, accumulated reserves and without additional financial support or borrowings, and can operate for at least twelve months from the date of approval of the financial statements. |
| As a result, the Group continues to adopt the going concern basis in preparing the financial statements. |
| 3. | TURNOVER |
| The turnover and profit before taxation are attributable to the one principal activity of the group. |
| An analysis of turnover by class of business is given below: |
| 2023 | 2022 |
| £ | £ |
| Sale of goods | 21,648,167 | 20,530,158 |
| 21,648,167 | 20,530,158 |
| SELKENT INVESTMENTS LTD (REGISTERED NUMBER: 11908685) |
| NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
| FOR THE YEAR ENDED 31ST DECEMBER 2023 |
| 3. | TURNOVER - continued |
| An analysis of turnover by geographical market is given below: |
| 2023 | 2022 |
| £ | £ |
| United Kingdom | 21,648,167 | 20,530,158 |
| 21,648,167 | 20,530,158 |
| 4. | EMPLOYEES AND DIRECTORS |
| 2023 | 2022 |
| £ | £ |
| Wages and salaries | 3,221,828 | 2,897,278 |
| Social security costs | 377,020 | 348,667 |
| Other pension costs | 45,506 | 41,942 |
| 3,644,354 | 3,287,887 |
| The average number of employees during the year was as follows: |
| 2023 | 2022 |
| Executives | 4 | 4 |
| Administration and sales | 37 | 39 |
| Warehouse and logistics | 34 | 31 |
| The average number of employees by undertakings that were proportionately consolidated during the year was 73 (2022 - 74 ) . |
| 2023 | 2022 |
| £ | £ |
| Directors' remuneration | 106,839 | 172,388 |
| 5. | OPERATING PROFIT |
| The operating profit is stated after charging/(crediting): |
| 2023 | 2022 |
| £ | £ |
| Hire of plant and machinery | 72,642 | 55,450 |
| Other operating leases | - | 901 |
| Depreciation - owned assets | 310,549 | 285,701 |
| Profit on disposal of fixed assets | (48,416 | ) | (53,976 | ) |
| Negative goodwill amortisation | - | (7,421 | ) |
| Auditors' remuneration | 15,500 | 14,000 |
| 6. | INTEREST PAYABLE AND SIMILAR EXPENSES |
| 2023 | 2022 |
| £ | £ |
| Bank loan interest | 117,458 | 73,151 |
| Loan interest | 109,656 | 87,195 |
| Hire purchase | 22,732 | 17,541 |
| 249,846 | 177,887 |
| SELKENT INVESTMENTS LTD (REGISTERED NUMBER: 11908685) |
| NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
| FOR THE YEAR ENDED 31ST DECEMBER 2023 |
| 7. | TAXATION |
| Analysis of the tax charge |
| The tax charge on the profit for the year was as follows: |
| 2023 | 2022 |
| £ | £ |
| Current tax: |
| UK corporation tax | 794,595 | 540,420 |
| Prior year adjustment | - | (9,518 | ) |
| Total current tax | 794,595 | 530,902 |
| Deferred tax | 66,485 | (244,731 | ) |
| Tax on profit | 861,080 | 286,171 |
| Reconciliation of total tax charge included in profit and loss |
| The tax assessed for the year is higher than the standard rate of corporation tax in the UK. The difference is explained below: |
| 2023 | 2022 |
| £ | £ |
| Profit before tax | 3,393,061 | 2,932,954 |
| Profit multiplied by the standard rate of corporation tax in the UK of 25 % (2022 - 19 %) |
848,265 |
557,261 |
| Effects of: |
| Expenses not deductible for tax purposes | 76,930 | 4,417 |
| Income not taxable for tax purposes | (62,650 | ) | (10,255 | ) |
| Capital allowances in excess of depreciation | (12,437 | ) | (11,003 | ) |
| Adjustments to tax charge in respect of previous periods | - | (9,518 | ) |
| Adjustment to tax charge in respect of rate change during current year | (55,513 | ) | - |
| Deferred tax adjustment | 66,485 | (244,731 | ) |
| Total tax charge | 861,080 | 286,171 |
| Tax effects relating to effects of other comprehensive income |
| There were no tax effects for the year ended 31st December 2023. |
| 2022 |
| Gross | Tax | Net |
| £ | £ | £ |
| Transfer to minority shareholders | (1,255,500 | ) | - | (1,255,500 | ) |
| 8. | 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. |
| SELKENT INVESTMENTS LTD (REGISTERED NUMBER: 11908685) |
| NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
| FOR THE YEAR ENDED 31ST DECEMBER 2023 |
| 9. | DIVIDENDS |
| 2023 | 2022 |
| as restated |
| £ | £ |
| B shares of £1 each |
| Interim | 66,000 | 138,997 |
| C shares of £1 each |
| Interim | 171,000 | 118,005 |
| D shares of £1 each |
| Interim | 66,000 | 51,329 |
| E shares of £1 each |
| Interim | 183,000 | 120,663 |
| F shares of £1 each |
| Interim | 66,000 | 50,663 |
| G shares of £1 each |
| Interim | 171,000 | 112,329 |
| H shares of £1 each |
| Interim | 66,000 | 55,600 |
| S2 shares of £1 each |
| Interim | - | 684 |
| W2 share of £1 |
| Interim | - | 692 |
| A shares of £1 each |
| Interim | 305,400 | 192,329 |
| W4 share of £1 |
| Interim | - | 1,800 |
| W6 share of £1 |
| Interim | - | 3,716 |
| W7 share of £1 |
| Interim | - | 100 |
| W8 share of £1 |
| Interim | - | 14,500 |
| 1,094,400 | 861,407 |
| 10. | PRIOR YEAR ADJUSTMENT |
| On 13 April 2023, Selkent Holdings Limited was transferred out of the Group. During this process, it was identified that the directors had previously disclosed a fair value gain of £1,255,500 on a property as equity attributed to the Selkent Investment Shareholders. However, in accordance with the Company Articles, this appreciation was in fact assigned to the "P" shareholders of Selkent Holdings Limited. |
| A prior period adjustment has been made to rectify this misclassification in equity reporting. This adjustment accurately reflects the correct assignment of the property's appreciation as per the governance structure of the Company. The correction does not impact the profit and loss account. |
| Deferred taxation reversal |
| As stated above, a prior period adjustment was made to reflect the correct allocation of the fair value appreciation of property within Selkent Holdings Limited. |
| As a result of this correction, any taxation liability arising from the appreciation is now the responsibility of the "P" shareholders rather than the Group. Consequently, the deferred taxation provision previously made in respect of this liability has been reversed in the 2023 financial statements. The total provision as at 31 December 2022 was £294,500, and this adjustment ensures that the accounts accurately reflect the governance structure outlined in the Company Articles. |
| The directors have confirmed that this correction does not impact the profit and loss account but ensures compliance with the correct financial reporting principles. |
| SELKENT INVESTMENTS LTD (REGISTERED NUMBER: 11908685) |
| NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
| FOR THE YEAR ENDED 31ST DECEMBER 2023 |
| 11. | INTANGIBLE FIXED ASSETS |
| Group |
| Negative |
| Goodwill | goodwill | Totals |
| £ | £ | £ |
| COST |
| At 1st January 2023 | 70,000 | (37,103 | ) | 32,897 |
| Disposals | - | 37,103 | 37,103 |
| At 31st December 2023 | 70,000 | - | 70,000 |
| AMORTISATION |
| At 1st January 2023 | 70,000 | (37,103 | ) | 32,897 |
| Eliminated on disposal | - | 37,103 | 37,103 |
| At 31st December 2023 | 70,000 | - | 70,000 |
| NET BOOK VALUE |
| At 31st December 2023 | - | - | - |
| At 31st December 2022 | - | - | - |
| 12. | TANGIBLE FIXED ASSETS |
| Group |
| Fixtures |
| Plant and | and | Motor | Computer |
| machinery | fittings | vehicles | equipment | Totals |
| £ | £ | £ | £ | £ |
| COST |
| At 1st January 2023 | 453,933 | 252,808 | 941,062 | 144,192 | 1,791,995 |
| Additions | - | 2,922 | 406,453 | 21,496 | 430,871 |
| Disposals | - | - | (241,207 | ) | - | (241,207 | ) |
| At 31st December 2023 | 453,933 | 255,730 | 1,106,308 | 165,688 | 1,981,659 |
| DEPRECIATION |
| At 1st January 2023 | 249,209 | 162,300 | 385,747 | 91,937 | 889,193 |
| Charge for year | 55,435 | 34,509 | 197,417 | 23,188 | 310,549 |
| Eliminated on disposal | - | - | (130,706 | ) | - | (130,706 | ) |
| At 31st December 2023 | 304,644 | 196,809 | 452,458 | 115,125 | 1,069,036 |
| NET BOOK VALUE |
| At 31st December 2023 | 149,289 | 58,921 | 653,850 | 50,563 | 912,623 |
| At 31st December 2022 | 204,724 | 90,508 | 555,315 | 52,255 | 902,802 |
| SELKENT INVESTMENTS LTD (REGISTERED NUMBER: 11908685) |
| NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
| FOR THE YEAR ENDED 31ST DECEMBER 2023 |
| 12. | TANGIBLE FIXED ASSETS - continued |
| Company |
| Plant and |
| machinery |
| £ |
| COST |
| At 1st January 2023 |
| and 31st December 2023 |
| DEPRECIATION |
| At 1st January 2023 |
| Charge for year |
| At 31st December 2023 |
| NET BOOK VALUE |
| At 31st December 2023 |
| At 31st December 2022 |
| 13. | FIXED ASSET INVESTMENTS |
| Company |
| Shares in |
| group |
| undertaking |
| £ |
| COST |
| At 1st January 2023 |
| Additions |
| Disposals | ( |
) |
| At 31st December 2023 |
| NET BOOK VALUE |
| At 31st December 2023 |
| At 31st December 2022 |
| 14. | INVESTMENT PROPERTY |
| Group |
| Total |
| £ |
| FAIR VALUE |
| At 1st January 2023 | 8,158,500 |
| Disposals | (3,173,500 | ) |
| At 31st December 2023 | 4,985,000 |
| NET BOOK VALUE |
| At 31st December 2023 | 4,985,000 |
| At 31st December 2022 | 8,158,500 |
| SELKENT INVESTMENTS LTD (REGISTERED NUMBER: 11908685) |
| NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
| FOR THE YEAR ENDED 31ST DECEMBER 2023 |
| 14. | INVESTMENT PROPERTY - continued |
| Group |
| If Investment Property had not been revalued it would have been included at the following historical cost: |
| Cost: £3,534,262 |
| Aggregate Depreciation: £nil |
| The properties at Unit 1 and Unit 2 Riverside House, Kangley Bridge Road, London, SE26 5DA were valued by Stephen Hall of Stiles Harold Williams on 15th December 2021. The directors consider this valuation to still be appropriate. |
| Company |
| Total |
| £ |
| FAIR VALUE |
| At 1st January 2023 |
| and 31st December 2023 |
| NET BOOK VALUE |
| At 31st December 2023 |
| At 31st December 2022 |
| If Investment Property had not been revalued it would have been included at the following historical cost: |
| Cost: £3,534,262 |
| Aggregate Depreciation: £nil |
| The properties at Unit 1 and Unit 2 Riverside House, Kangley Bridge Road, London, SE26 5DA were valued by Stephen Hall of Stiles Harold Williams on 15th December 2021. The directors consider this valuation to still be appropriate. |
| 15. | STOCKS |
| Group |
| 2023 | 2022 |
| £ | £ |
| Stocks | 2,657,533 | 2,390,931 |
| Stock represents finished goods. |
| 16. | DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
| Group | Company |
| 2023 | 2022 | 2023 | 2022 |
| £ | £ | £ | £ |
| Trade debtors | 3,957,343 | 4,195,178 |
| Other debtors | 150,395 | 146,832 |
| Related party debtor | 346,537 | - | - | - |
| Directors' current accounts | 131,857 | 603,797 | - | - |
| 4,586,132 | 4,945,807 |
| SELKENT INVESTMENTS LTD (REGISTERED NUMBER: 11908685) |
| NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
| FOR THE YEAR ENDED 31ST DECEMBER 2023 |
| 17. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
| Group | Company |
| 2023 | 2022 | 2023 | 2022 |
| £ | £ | £ | £ |
| Bank loans and overdrafts (see note 19) | 152,674 | 160,073 |
| Hire purchase contracts and finance leases (see note 20) | 259,783 |
133,719 |
| Trade creditors | 1,831,739 | 2,459,590 |
| Amounts owed to group undertakings | - | - |
| Tax | 445,821 | 540,397 |
| Social security and other taxes | 98,716 | 107,320 |
| VAT | 423,817 | 463,124 | 32,066 | 12,602 |
| Other creditors | 409,661 | 898,816 |
| Directors' current accounts | 23,291 | 185,528 | - | - |
| 3,645,502 | 4,948,567 |
| 18. | CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR |
| Group | Company |
| 2023 | 2022 | 2023 | 2022 |
| £ | £ | £ | £ |
| Bank loans (see note 19) | 1,537,279 | 1,682,555 |
| Hire purchase contracts and finance leases (see note 20) | 293,157 |
429,790 |
| Other creditors | 1,560,010 | 1,610,010 |
| 3,390,446 | 3,722,355 |
| 19. | LOANS |
| An analysis of the maturity of loans is given below: |
| Group |
| 2023 | 2022 |
| £ | £ |
| Amounts falling due within one year or on | demand: |
| Bank loans | 18,348 | 18,913 |
| Bank loan 2 | 54,326 | 61,160 |
| Bank loan 3 | 80,000 | 80,000 |
| 152,674 | 160,073 |
| Amounts falling due between two and five | years: |
| Bank loans - 2-5 years | 1,537,279 | 1,682,555 |
| SELKENT INVESTMENTS LTD (REGISTERED NUMBER: 11908685) |
| NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
| FOR THE YEAR ENDED 31ST DECEMBER 2023 |
| 20. | LEASING AGREEMENTS |
| Minimum lease payments fall due as follows: |
| Group |
| Hire purchase contracts | Finance leases |
| 2023 | 2022 | 2023 | 2022 |
| £ | £ | £ | £ |
| Net obligations repayable: |
| Within one year | 199,502 | 90,008 | 60,281 | 43,711 |
| Between one and five years | 201,965 | 358,273 | 91,192 | 71,517 |
| 401,467 | 448,281 | 151,473 | 115,228 |
| 21. | SECURED DEBTS |
| The following secured debts are included within creditors: |
| Group | Company |
| 2023 | 2022 | 2023 | 2022 |
| £ | £ | £ | £ |
| Hire purchase contracts and finance leases | 552,940 | 563,509 | - | - |
| Bank loans | 1,503,287 | 1,575,962 | - | - |
| Other creditors | 1,400,000 | 1,400,000 | 1,400,000 | 1,400,000 |
| 3,456,227 | 3,539,471 |
| 22. | FINANCIAL INSTRUMENTS |
| 2023 | 2022 |
| £ | £ |
| Financial assets |
| Financial assets measured at fair value through profit and loss | 800,135 | 764,884 |
| Financial assets that are debt instruments measured at amortised cost | 4,107,736 | 4,342,010 |
| 4,907,871 | 5,106,894 |
| Financial liabilities |
| Financial liabilities that are debt instruments measured at amortised cost | 4,212,564 | 7,374,554 |
| 23. | PROVISIONS FOR LIABILITIES |
| Group | Company |
| 2023 | 2022 | 2023 | 2022 |
| £ | £ | £ | £ |
| Deferred tax | 240,969 | 468,984 | 385,670 | 294,262 |
| Group |
| Deferred |
| tax |
| £ |
| Balance at 1st January 2023 | 468,984 |
| Temporary timing differences | 66,485 |
| Prior year adjustment | (294,500 | ) |
| Balance at 31st December 2023 | 240,969 |
| SELKENT INVESTMENTS LTD (REGISTERED NUMBER: 11908685) |
| NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
| FOR THE YEAR ENDED 31ST DECEMBER 2023 |
| 23. | PROVISIONS FOR LIABILITIES - continued |
| Company |
| Deferred |
| tax |
| £ |
| Balance at 1st January 2023 |
| Charge to Income Statement during year |
| Balance at 31st December 2023 |
| 24. | ACCRUALS AND DEFERRED INCOME |
| Group | Company |
| 2023 | 2022 | 2023 | 2022 |
| £ | £ | £ | £ |
| Accruals and deferred income | 145,728 | 66,473 | 2,500 | 2,788 |
| 25. | CALLED UP SHARE CAPITAL |
| Allotted, issued and fully paid: |
| Number: | Class: | Nominal | 2023 | 2022 |
| value: | as restated |
| £ | £ |
| B | £1 | 122 | 122 |
| C | £1 | 123 | 123 |
| D | £1 | 122 | 122 |
| E | £1 | 123 | 123 |
| 122 | F | £1 | 122 | 122 |
| 123 | G | £1 | 123 | 123 |
| 122 | H | £1 | 122 | 122 |
| 10 | S1 | £1 | 10 | 10 |
| 10 | S2 | £1 | 10 | 10 |
| 1 | W1 | £1 | 1 | 1 |
| 1 | W2 | £1 | 1 | 1 |
| 123 | A | £1 | 123 | 123 |
| 1 | W3 | £1 | 1 | 1 |
| 1 | W4 | £1 | 1 | 1 |
| 1 | W5 | £1 | 1 | 1 |
| 1 | W6 | £1 | 1 | 1 |
| 1 | W7 | £1 | 1 | 1 |
| 1 | W8 | £1 | 1 | 1 |
| 1 | W9 | £1 | 1 | 1 |
| 1,009 | 1,009 |
| 26. | RESERVES |
| Group |
| Fair | Capital |
| Retained | value | redemption |
| earnings | reserve | reserve | Totals |
| £ | £ | £ | £ |
| At 1st January 2023 | 4,168,493 | 1,175,098 | - | 5,343,591 |
| Profit for the year | 2,531,981 | 2,531,981 |
| Dividends | (1,094,400 | ) | (1,094,400 | ) |
| Purchase of own shares | (1,009 | ) | - | 1,009 | - |
| Deferred tax | 87,045 | (87,045 | ) | - | - |
| At 31st December 2023 | 5,692,110 | 1,088,053 | 1,009 | 6,781,172 |
| SELKENT INVESTMENTS LTD (REGISTERED NUMBER: 11908685) |
| NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
| FOR THE YEAR ENDED 31ST DECEMBER 2023 |
| 26. | RESERVES - continued |
| Company |
| Fair |
| value |
| reserve |
| £ |
| At 1st January 2023 |
| Deferred tax | (87,045 | ) |
| At 31st December 2023 |
| Capital redemption reserve |
| This reserve comprises of shares purchased by the company. |
| 27. | NON-CONTROLLING INTERESTS |
| On 13 April 2023 Selkent Holdings Limited was de-grouped and transferred to connected parties. |
| Throughout the previous year 1.9% of the share capital in Selkent Holdings Ltd was owned by third parties outside of the group. The non controlling interest recognised in the statement of financial position is the share of post consolidation profits that are due to the non-controlling interest. |
| 28. | RELATED PARTY DISCLOSURES |
| Included within other creditors is a loan of £nil (2022: £500,000) received from Selkent Medical Ltd, a company with common directors. This loan was interest free and was repaid in full during this financial year. |
| Intra-group investment transfer |
| On 13 April 2023, the investment in Selkent Fastenings Limited was transferred from the intermediary holding company Selkent Holdings Limited to the ultimate holding company Selkent Investments Limited. This transfer was at the original cost of £250,600 and was in accordance with the following FRS 102 accounting standards |
| - FRS 102 (Financial Reporting Standard applicable in the UK and Republic of Ireland) mandates that transactions between group entities be recognised at either fair value or cost. |
| - FRS 102, Section 2 (Concepts and Pervasive Principles) establishes that fair value should represent the price that would be received in an orderly transaction under current market conditions. |
| - FRS 102, Section 27 (Impairment of Assets) requires an assessment of recoverable amounts where indicators suggest a prior valuation may have been inaccurate. |
| Key management personnel |
| Key management personnel comprises the directors. Their aggregate remuneration was £243,557 (2022 - £279,199). The highest paid key management personnel received £126,793 (2022 - £73,573). |
| Pension costs in the period in respect of directors totalled £1,522 (2022 - £4,510). |
| Overdrawn directors loan accounts |
| As at the 31st December 2023 there existed overdrawn loan accounts. The balances were as follows :- |
| Mr V Bushnell - £30,977 o/d |
| Mr S Bushnell - £34,649 o/d |
| Mr J Bushnell - £66,231 o/d |
| SELKENT INVESTMENTS LTD (REGISTERED NUMBER: 11908685) |
| NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
| FOR THE YEAR ENDED 31ST DECEMBER 2023 |
| 29. | TRANSACTIONS WITH THE DIRECTORS |
| De-grouping of subsidiary |
| During the financial year, Selkent Holdings Limited was de-grouped and transferred to connected parties. The de-grouping was undertaken based on the special rights applicable to certain shareholders within the De-Grouped Subsidiary, as outlined in Clause 19.9(a) and Clause 19.9(b) of the respective company articles. |
| Impact of de-grouping |
| The de-grouping was structured to ensure that the transfer of ownership did not result in a material loss to the group, as the appreciation of the property was always considered a non-group equity item. Additionally, the transfer of the preference debt (£1,515,000) ensured that no transfer of value occurred as the debt was now outside of the Group and no longer payable. |
| De-grouping valuation summary |
| Category | De-Group Value | True Value |
| Property Value | £3,173,500 | £3,173,500 |
| Less: Initial Property Value | (£1,600,000) | (£1,623,500) |
| Net Entitlement | £1,573,500 | £1,550,000 |
| Preference Shares | £1,515,481 | £1,515,481 |
| Total Value | £3,088,981 | £3,065,481 |
| On the day of the De-Grouping (13 April 2023) the net assets of the Selkent Holdings Limited were £3,413,018. As this value exceeded the capital entitlement of the shares, the directors agreed that they would repay a sum of £347,537 to Selkent Investments Limited. As such the asset has been classified as a "Related Party" debtor within the financial statements of the Group. |
| Net assets transferred | (£3,413,018) |
| Less |
| Due from related party | £ 347,537 |
| Deemed net transfer | (£3,065,481) |
| Directors confirmation |
| The directors, in consultation with their tax advisors, confirm that the de-grouping has been executed in compliance with FRS 102 and that there has been no material loss to the group. The transaction reflects the equitable transfer of shareholder entitlements and maintains the integrity of the financial statements. |