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Registered number: 01272745









KILLGERM GROUP LIMITED









ANNUAL REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2024

 
KILLGERM GROUP LIMITED
 

COMPANY INFORMATION


Directors
Mr P Kitson 
Mr R.B. Broome 
Mrs S.A. Everett 
Mr G Ward 
Mrs D.M. Kelly 
Mr R Harrop 




Company secretary
Mr P Kitson



Registered number
01272745



Registered office
Killgerm Group Ltd
Wakefield Road

Ossett

West Yorkshire

WF5 9AJ




Independent auditors
AAB Audit & Accountancy Limited

Gresham House

5-7 St Pauls Street

Leeds

LS1 2JG




Bankers
HSBC Bank plc
33 Park Row

Leeds

LS1 1LD




Solicitors
Milners Solicitors
2 Riverside Way

Leeds

LS1 4EH





 
KILLGERM GROUP LIMITED
 

CONTENTS



Page
Group strategic report
1 - 2
Directors' report
3 - 4
Independent auditors' report
5 - 8
Consolidated statement of comprehensive income
9
Consolidated balance sheet
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
Notes to the financial statements
15 - 38


 
KILLGERM GROUP LIMITED
 

GROUP STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2024

Principal activities and business review
 
The company is the parent company for the Killgerm Group of companies.  As such its principal activities during the year were the holding of investments in subsidiary companies, the holding of assets for the use of those subsidiary companies and the provision of management services to those subsidiary companies.  The income of the company is derived mainly from management charges and investment income from the Killgerm and PestWest Divisions within the Group.

The principal activities of the subsidiary companies include the formulation and distribution of biocides and other products used within the pest control industry, as well as the manufacture and distribution of electronic fly killers and related accessories.

The Directors are pleased to report that the consolidated profit for the year was £2.84m before tax and £1.96m after tax (2023 profit of £2.36m before tax and £1.60m after tax).

Despite increasing competitive pressures in all markets, complex supply chain challenges, increasing costs and adverse currency movements, the operations within the Group have once again managed to deliver a very healthy increase in turnover. Although costs across the Group had increased quite significantly in the year, the Group continued to protect its customer base and not pass on all of these increases. The outcome in terms of gross profit remained within the boundaries of what the Directors consider to be a good performance and shows a good increase on the previous year. International, national and industry pressures remain challenging and the Group has continued to take steps to minimise costs without compromising the quality of the products or the service that the Group offers.

During 2024, to further support the rapid growth of the new start-up operation, Killgerm France, Killgerm Group assisted in the acquisition of the property (offices & warehouse) used by Killgerm France.


Position of the company's business at the end of the year

The Group is in a sound financial position at the year end, with improved liquidity having increased its net current assets from £16.15m to £17.51m.

Net assets have increased from £21.55m to £22.86m, which has put the Group in a strong position to continue with our planned expansions in the future.

Principal risks and uncertainties
 
As for many companies of our size, the business environment in which the Group operate continues to be challenging. The risks and uncertainties which the Group faces include regulatory changes (which are mitigated by maintaining a broad and dynamic product portfolio), currency fluctuations (which are mitigated by operating in multiple currencies and through targeted currency hedging) and the challenges of expanding into new markets.  With these in mind, the Directors are aware that any plans for the future development of the business may be subject to unforeseen future events outside of our control.  However, the Directors continue to show flexibility and will respond to market conditions and opportunities as they arise. 

Research and development

The Group continues an active programme of research and development, the costs of which are written off to the profit and loss account. The Directors believe that the success of the Group is dependent on the constant review and updating of product lines to satisfy market demands.

Page 1

 
KILLGERM GROUP LIMITED
 

GROUP STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024

Corporate and environmental responsibility

Corporate and Environmental Responsibility remains a major focus of the Group and the company continued to support employees through professional and industry training courses as well as making significant donations to charities involved in environmental health, industry and community improvement schemes and welfare projects for children and young persons.
 
Killgerm Group also recognises that modern slavery and human trafficking are significant global issues presenting a challenge for businesses worldwide. As such, Killgerm Group have a zero-tolerance approach to modern slavery and are committed to acting ethically and with integrity in our business dealings and have a clear policy in place in compliance with the Modern Slavery Act 2015.

Killgerm Group also operates a clear, zero-tolerance approach to tax evasion practices and also regarding bribery & corruption. The Group has in place a corporate Anti-Tax Evasion Policy and an Anti-Bribery & Corruption Policy across Killgerm Group and all subsidiary companies.

Going concern

Over recent years, the Group has seen an increase in cost pressures across its operations and at the same time product availability & lead times from certain suppliers has deteriorated somewhat. Nevertheless, Group companies have adapted to these supply chain challenges and have manged to protect the customer base from significant impacts.

The directors consider their approach to the management of finances as prudent and have a clear focus on cashflow controls. The Group has not needed to seek external assistance for financing, nor has the Group had to make redundancies or furlough employees.

The directors continually monitor the ongoing financial health of the Group and have prepared forward-looking projections for each business within the Group for at least 12 months.

Having regard to the above, the directors believe it appropriate to adopt the going concern basis of accounting in preparing the financial statements.


No policital donations were made.

This report was approved by the board on 13 June 2025 and signed on its behalf.



Mr R.B. Broome
Director

Page 2

 
KILLGERM GROUP LIMITED
 

 
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2024

The directors present their report and the financial statements for the year ended 31 December 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 £1,959,804 (2023 - £1,601,021)


Directors

The directors who served during the year were:

Mr P Kitson 
Mr R.B. Broome 
Mrs S.A. Everett 
Mr G Ward 
Mrs D.M. Kelly 
Mr R Harrop 

Greenhouse gas emissions, energy consumption and energy efficiency action

The UK Government’s Streamlined Energy and Carbon Reporting (SECR) policy was implemented on 1st April 2019. Killgerm Group subsidiary companies are exempt as they would not be obliged to report in their own rights under SECR. In acting as a parent company for the subsidiary operations, Killgerm Group Ltd does fall under SECR obligations however the company undertakes a limited range of activities related to finance, IT, marketing and strategy. In future annual reports Killgerm Group will consider and explore the possibilities for voluntarily increasing the reporting in this area.



Page 3

 
KILLGERM GROUP LIMITED
 

 
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 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.

Auditors

The auditorsAAB Audit & Accountancy Limitedwill be proposed for reappointment in accordance with section 485 of the Companies Act 2006.

This report was approved by the board on 13 June 2025 and signed on its behalf.
 





Mr P Kitson
Director

Page 4

 
KILLGERM GROUP LIMITED
 

 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF KILLGERM GROUP LIMITED
 

Opinion


We have audited the financial statements of Killgerm Group Limited (the 'parent Company') and its subsidiaries (the 'Group') for the year ended 31 December 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 December 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.


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.


Page 5

 
KILLGERM GROUP LIMITED
 

 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF KILLGERM GROUP LIMITED (CONTINUED)


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 3, 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 6

 
KILLGERM GROUP LIMITED
 

 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF KILLGERM GROUP 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 UK Taxation legislation. We identified the greatest risk of material impact on the financial statements from irregularities including fraud to be:

Management override of controls to manipulate the company’s key performance indicators to meet targets
Timing 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 judgements made by management in their calculation of accounting estimates for potential management bias
Enquiries of management about litigation and claims and inspection of relevant correspondence
Reviewing legal and professional fees to identify indications of actual or potential litigation, claims and any non-compliance with laws and regulations
Reviewing minutes of meetings of those charged with governance to identify any matters indicating actual or potential fraud
Analytical procedures to identify any unusual or unexpected trends or relationships

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 7

 
KILLGERM GROUP LIMITED
 

 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF KILLGERM GROUP 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.





James Hunt BA (Hons) MA FCA CTA (Senior statutory auditor)
for and on behalf of
AAB Audit & Accountancy Limited
Chartered accountants & statutory auditor
Gresham House
5-7 St Pauls Street
Leeds
LS1 2JG

13 June 2025
Page 8

 
KILLGERM GROUP LIMITED
 

CONSOLIDATED PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 31 DECEMBER 2024

2024
2023
Note
£
£

  

Turnover
 4 
63,693,627
59,147,454

Cost of sales
  
(41,789,229)
(39,028,795)

Gross profit
  
21,904,398
20,118,659

Administrative expenses
  
(18,882,943)
(17,581,169)

Operating profit
 5 
3,021,455
2,537,490

Interest receivable and similar income
 9 
70,708
29,968

Interest payable and similar expenses
 10 
(252,076)
(207,875)

Profit before taxation
  
2,840,087
2,359,583

Tax on profit
 11 
(880,283)
(758,562)

Profit for the financial year
  
1,959,804
1,601,021

  

Foreign currency retranslation
  
(397,339)
(187,527)

Remeasurement of net defined benefit plan
  
(204,000)
(193,000)

Movements on reserve for own shares
  
(50,000)
(3,000)

Other comprehensive income for the year
  
(651,339)
(383,527)

Total comprehensive income for the year
  
1,308,465
1,217,494

  

There were no recognised gains and losses for 2024 or 2023 other than those included in the consolidated profit and loss account.

The notes on pages 15 to 38 form part of these financial statements.

All the activities of the group are from continuing operations.

Page 9

 
KILLGERM GROUP LIMITED
REGISTERED NUMBER: 01272745

CONSOLIDATED BALANCE SHEET
AS AT 31 DECEMBER 2024

2024
2023
Note
£
£

Fixed assets
  

Intangible assets
 12 
585,717
773,868

Tangible assets
 13 
7,646,813
6,590,128

  
8,232,530
7,363,996

Current assets
  

Stocks
 15 
9,382,167
9,513,983

Debtors: amounts falling due within one year
 16 
10,933,785
9,797,851

Cash at bank and in hand
 17 
6,730,812
5,906,673

  
27,046,764
25,218,507

Creditors: amounts falling due within one year
 18 
(9,541,730)
(9,064,546)

Net current assets
  
 
 
17,505,034
 
 
16,153,961

Total assets less current liabilities
  
25,737,564
23,517,957

Creditors: amounts falling due after more than one year
 19 
(2,777,226)
(1,867,775)

Provisions for liabilities
  

Deferred taxation
 21 
(97,276)
(95,585)

  
 
 
(97,276)
 
 
(95,585)

Net assets
  
22,863,062
21,554,597


Capital and reserves
  

Called up share capital 
 22 
120,250
120,250

Foreign exchange reserve
 23 
(37,332)
360,007

Reserve for own shares
 23 
(1,258,000)
(1,208,000)

Profit and loss account
 23 
24,038,144
22,282,340

Equity attributable to owners of the parent Company
  
22,863,062
21,554,597


The financial statements were approved and authorised for issue by the board and were signed on its behalf on 13 June 2025.




Mr P Kitson
Mr R.B. Broome
Director
Director

The notes on pages 15 to 38 form part of these financial statements.

Page 10

 
KILLGERM GROUP LIMITED
REGISTERED NUMBER: 01272745

COMPANY BALANCE SHEET
AS AT 31 DECEMBER 2024

2024
2023
Note
£
£

Fixed assets
  

Intangible assets
 12 
66,045
71,269

Tangible assets
 13 
3,690,618
3,697,346

Investments
 14 
2,989,180
2,249,573

  
6,745,843
6,018,188

Current assets
  

Debtors: amounts falling due within one year
 16 
4,320,191
2,639,674

Cash at bank and in hand
 17 
3,489,092
3,319,503

  
7,809,283
5,959,177

Creditors: amounts falling due within one year
 18 
(1,194,911)
(449,414)

Net current assets
  
 
 
6,614,372
 
 
5,509,763

Total assets less current liabilities
  
13,360,215
11,527,951

  

Creditors: amounts falling due after more than one year
 19 
(2,211,517)
(1,184,274)

  

Net assets
  
11,148,698
10,343,677


Capital and reserves
  

Called up share capital 
 22 
120,250
120,250

Reserve for own shares
 23 
(1,258,000)
(1,208,000)

Profit and loss account carried forward
  
12,286,448
11,431,427

  
11,148,698
10,343,677


The profit for the financial year of the parent company was £1,059,021 (2023: £355,040).
The financial statements were approved and authorised for issue by the board and were signed on its behalf on 13 June 2025.


Mr P Kitson
Mr R.B. Broome
Director
Director

The notes on pages 15 to 38 form part of these financial statements.

Page 11

 
KILLGERM GROUP LIMITED
 

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


Called up share capital
Foreign exchange reserve
Reserve   for   own shares
Profit and loss account
Equity attributable to owners of parent Company
Total equity

£
£
£
£
£
£


At 1 January 2023
120,250
547,534
(1,205,000)
20,874,319
20,337,103
20,337,103


Comprehensive income for the year

Profit for the year
-
-
-
1,601,021
1,601,021
1,601,021

Foreign currency retranslation
-
(187,527)
-
-
(187,527)
(187,527)

Actuarial losses on pension scheme
-
-
-
(193,000)
(193,000)
(193,000)

Movement on reserve for own shares
-
-
(3,000)
-
(3,000)
(3,000)
Total comprehensive income for the year
-
(187,527)
(3,000)
1,408,021
1,217,494
1,217,494



At 1 January 2024
120,250
360,007
(1,208,000)
22,282,340
21,554,597
21,554,597


Comprehensive income for the year

Profit for the year
-
-
-
1,959,804
1,959,804
1,959,804

Foreign currency retranslation
-
(397,339)
-
-
(397,339)
(397,339)

Actuarial losses on pension scheme
-
-
-
(204,000)
(204,000)
(204,000)

Movement on reserve for own shares
-
-
(50,000)
-
(50,000)
(50,000)
Total comprehensive income for the year
-
(397,339)
(50,000)
1,755,804
1,308,465
1,308,465


At 31 December 2024
120,250
(37,332)
(1,258,000)
24,038,144
22,863,062
22,863,062


The notes on pages 15 to 38 form part of these financial statements.

Page 12

 
KILLGERM GROUP LIMITED
 

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


Called up share capital
Reserve for own shares
Profit and loss account
Total equity

£
£
£
£


At 1 January 2023
120,250
(1,205,000)
11,269,387
10,184,637


Comprehensive income for the year

Profit for the year
-
-
355,040
355,040

Actuarial losses on pension scheme
-
-
(193,000)
(193,000)

Movement on reserve for own shares
-
(3,000)
-
(3,000)
Total comprehensive income for the year
-
(3,000)
162,040
159,040



At 1 January 2024
120,250
(1,208,000)
11,431,427
10,343,677


Comprehensive income for the year

Profit for the year
-
-
1,059,021
1,059,021

Actuarial losses on pension scheme
-
-
(204,000)
(204,000)

Movement on reserve for own shares
-
(50,000)
-
(50,000)
Total comprehensive income for the year
-
(50,000)
855,021
805,021


At 31 December 2024
120,250
(1,258,000)
12,286,448
11,148,698


The notes on pages 15 to 38 form part of these financial statements.

Page 13

 
KILLGERM GROUP LIMITED
 

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

2024
2023
£
£

Cash flows from operating activities

Profit for the financial year
1,959,804
1,601,021

Adjustments for:

Amortisation of intangible assets
167,544
172,031

Depreciation of tangible assets
505,446
488,774

Gain/Loss on disposal of fixed assets
(10,720)
(9,647)

Defined benefit pension plan employer contribution
(160,000)
(155,000)

Taxation charge
880,283
758,562

Decrease/(increase) in stocks
131,816
(113,666)

(Increase) in debtors
(1,159,737)
(2,724,930)

Increase in creditors
286,159
1,824,160

Corporation tax (paid)
(678,184)
(687,573)

Net cash generated from operating activities

1,922,411
1,153,732


Cash flows from investing activities

Purchase of intangible fixed assets
(21,567)
-

Purchase of tangible fixed assets
(1,773,764)
(324,642)

Sale of tangible fixed assets
8,103
28,567

Net cash from investing activities

(1,787,228)
(296,075)

Cash flows from financing activities

New secured loans
1,242,200
-

Repayment of loans
(224,605)
(34,078)

Repayment of/new finance leases
22,782
(31,066)

(Gain)/loss on foreign currency retranslation of debt
(232,730)
(102,449)

Net interest expense on defined benefit pension plan
44,000
38,000

Purchase of own shares
(50,000)
(3,000)

Net cash used in financing activities
801,647
(132,593)

Net increase in cash and cash equivalents
936,830
725,064

Cash and cash equivalents at beginning of year
3,626,545
2,901,481

Cash and cash equivalents at the end of year
4,563,375
3,626,545


Cash and cash equivalents at the end of year comprise:

Cash at bank and in hand
6,730,812
5,906,673

Bank overdrafts
(2,167,437)
(2,280,128)

4,563,375
3,626,545


The notes on pages 15 to 38 form part of these financial statements.

Page 14

 
KILLGERM GROUP LIMITED
 

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

1.


General information

The company is a private limited company, which is incorporated and registered in England (company number 02794829). The address of the registered office is Wakefield Road, Ossett, West Yorkshire, WF5 9AJ.
The principal activities of the group are the formulation and distribution of biocides and other products used within the pest control industry and the manufacture and distribution of electronic fly killers and related accessories.

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 financial statements are prepared in stering, which is the functional currency of the entity.

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.

Parent Company disclosure exemptions

In preparing the separate financial statements of the parent Company, advantage has been taken of the following disclosure exemptions available in FRS 102:
No Statement of cash flows has been presented for the parent Company;
Disclosures in respect of the parent Company's financial instruments have not been presented as equivalent disclosures have been provided in respect of the Company as a whole; and

The following principal accounting policies have been applied:

 
2.2

Financial Reporting Standard 102 - reduced disclosure exemptions

The Parent Company has taken advantage of the following disclosure exemptions in preparing these financial statements, as permitted by the FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland":
the requirements of Section 7 Statement of Cash Flows;
the requirements of Section 3 Financial Statement Presentation paragraph 3.17(d);
the requirements of Section 11 Financial Instruments paragraphs 11.42, 11.44 to 11.45, 11.47, 11.48(a)(iii), 11.48(a)(iv), 11.48(b) and 11.48(c);
the requirements of Section 12 Other Financial Instruments paragraphs 12.26 to 12.27, 12.29(a), 12.29(b) and 12.29A;
the requirements of Section 26 Share-based Payment paragraphs 26.18(b), 26.19 to 26.21 and 26.23.

This information is included in the consolidated financial statements of Killgerm Group Limited as at 31 December 2024 and these financial statements may be obtained from the registered office.

Page 15

 
KILLGERM GROUP LIMITED
 

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

2.Accounting policies (continued)

 
2.3

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.
In accordance with the transitional exemption available in FRS 102, the Group has chosen not to retrospectively apply the standard to business combinations that occurred before the date of transition to FRS 102, being 31 December 2015.

 
2.4

Going concern

The directors continually monitor the ongoing financial health of the Group and have prepared forward-looking projections for each business within the Group for at least 12 months from the sign off date.

Having regard to the above, the directors believe it appropiate to adopt the going concern basis of accounting in preparing the financial statements. 

 
2.5

Foreign currency translation

Functional and presentation currency

The Company's functional and presentational currency is GBP.

Transactions and balances

Foreign currency transactions are translated into the functional currency using the spot exchange rates at the dates of the transactions.

At each period end foreign currency monetary items are translated using the closing rate. Non-monetary items measured at historical cost are translated using the exchange rate at the date of the transaction and non-monetary items measured at fair value are measured using the exchange rate when fair value was determined. Any gains or losses are recognised in the profit and loss account.

On consolidation, the results of overseas operations are translated into Sterling at rates approximating to those ruling when the transactions took place. All assets and liabilities of overseas operations are translated at the rate ruling at the reporting date. Exchange differences arising on translating the opening net assets at opening rate and the results of overseas operations at actual rate are recognised in other comprehensive income.

Page 16

 
KILLGERM GROUP LIMITED
 

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

2.Accounting policies (continued)

 
2.6

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.

Rendering of services

Revenue from a contract to provide services is recognised in the period in which the services are provided in accordance with the stage of completion of the contract when all of the following conditions are satisfied:
the amount of revenue can be measured reliably;
it is probable that the Group will receive the consideration due under the contract;
the stage of completion of the contract at the end of the reporting period can be measured reliably; and
the costs incurred and the costs to complete the contract can be measured reliably.

 
2.7

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.

 
2.8

Leased assets: the Group as lessee

Assets obtained under hire purchase contracts and finance leases are capitalised as tangible fixed assets. Assets acquired by finance lease are depreciated over the shorter of the lease term and their useful lives. Assets acquired by hire purchase are depreciated over their useful lives. Finance leases are those where substantially all of the benefits and risks of ownership are assumed by the company. Obligations under such agreements are included in creditors net of the finance charge allocated to future periods. The finance element of the rental payment is charged to profit or loss so as to produce a constant periodic rate of charge on the net obligation outstanding in each period.

 
2.9

Research and development

Research and development expenditure is written off in the period in which it is incurred. 

Page 17

 
KILLGERM GROUP LIMITED
 

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

2.Accounting policies (continued)

 
2.10

Pensions

Defined contribution pension plan

The Group operates 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.

Defined benefit plans

The Group operates a defined benefit pension scheme for employees. The assets of the scheme are held separately from those of the company. 

Pension scheme liabilities are measured on an actuarial basis using a projected unit method and are discounted to their present value at such a rate that properly reflects the time value of money and the charachteristics of those liabilities. 

Pension scheme assets are valued at market value at the balance sheet date.

The pension scheme deficit is recognised in full on the balance sheet as a liabiltiy. The directors have taken the decision to not recognise any pension scheme surplus on the balance sheet. The surplus not recognised is included in the actuarial gain for the year.

The deferred tax relating to the defined benefit asset/liability is offset against the defined benefit asset/liability and not included within other deferred tax assets or liabilities. 

The movement upon the pension scheme surplus or deficit for the year is analysed between current service costs and finance income/charges which are recognised in the profit and loss account and the actuarial valuation gains/losses which are recognised in other comprehensive income. 

Page 18

 
KILLGERM GROUP LIMITED
 

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

2.Accounting policies (continued)

 
2.11

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.


 
2.12

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.

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.

At each reporting date the company 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.

All intangible assets are considered to have a finite useful life.

 The estimated useful lives range as follows:

Goodwill
-
over 2 to 20 years on a straight line basis
Intellectual Property
-
over 5 to 10 years on a straight line basis

For impairment testing of goodwill, the goodwill acquired in a business combination is, from the acquisition date, allocated to each of the cash-generating units that are expected to benefit from the synergies of the combination, irrespective of whether other assets or liabilities of the company are assigned to those units.

Page 19

 
KILLGERM GROUP LIMITED
 

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

2.Accounting policies (continued)

 
2.13

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.

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.

Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives.

Depreciation is provided on the following basis:

Freehold property
-
2% on a straight line basis
Long-term leasehold property
-
10% on a straight line basis or over the length of the lease, if lower
Freehold land
-
not depreciated
Plant and machinery
-
5% - 20% on a straight line basis
Motor vehicles
-
25% on a reducing balance basis
Fixtures, fittings and equipment
-
10% - 50% on a straight line basis

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.

 
2.14

Valuation of investments

Investments in subsidiaries are measured at cost less accumulated 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.

 
2.17

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.

Page 20

 
KILLGERM GROUP LIMITED
 

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

2.Accounting policies (continued)

 
2.18

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.

 
2.19

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.

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.

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.

Basic 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 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
Page 21

 
KILLGERM GROUP LIMITED
 

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

2.Accounting policies (continued)


2.19
Financial instruments (continued)

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.


3.


Judgements in applying accounting policies and key sources of estimation uncertainty

The preparation of the 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 for revenues and expenses during the year. However, the nature of estimation means that the actual outcomes could differ from those estimates. Details of these judgements are set out in the accounting policies.


4.


Turnover

Turnover arises from:


2024
2023
£
£

Sale of goods
63,693,627
59,147,454


Analysis of turnover by country of destination:

2024
2023
£
£

United Kingdom
20,567,515
18,868,557

Overseas
43,126,112
40,278,897

63,693,627
59,147,454



5.


Operating profit

The operating profit is stated after charging:

2024
2023
£
£

Amortisation of intangible assets
167,544
172,033

Depreciation of tangible assets
505,309
488,794

Gain on disposal of tangible assets
12,437
(9,647)

Exchange differences
212,485
45,981

Impairment of trade debtors
8,372
8,915

Page 22

 
KILLGERM GROUP LIMITED
 

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

6.


Auditors' remuneration

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


2024
2023
£
£

Fees payable to the Company's auditors and their associates for the audit of the consolidated and parent Company's financial statements
76,855
69,770

Fees payable to the Company's auditors and their associates in respect of:

All non-audit services not included above
21,410
20,780


7.


Employees

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


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


Wages and salaries
9,340,289
8,934,442
1,729,386
1,621,061

Social security costs
1,247,823
1,204,375
187,937
184,900

Cost of defined contribution scheme
740,331
650,741
235,446
146,486

11,328,443
10,789,558
2,152,769
1,952,447


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


        2024
        2023
            No.
            No.







Adminstration and management
158
158



Operations and warehouse
68
71

226
229

Page 23

 
KILLGERM GROUP LIMITED
 

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

8.


Directors' remuneration

2024
2023
£
£

Directors' emoluments
636,259
626,255

Group contributions to defined contribution pension schemes
57,572
55,156

693,831
681,411


During the year retirement benefits were accruing to 3 directors (2023 - 3) in respect of defined contribution pension schemes.

The highest paid director received remuneration of £247,343 (2023 - £229,519).

The value of the Group's contributions paid to a defined contribution pension scheme in respect of the highest paid director amounted to £17,196 (2023 - £16,377).


9.


Interest receivable

2024
2023
£
£


Interest on cash and cash equivalents
70,708
29,968


10.


Interest payable and similar expenses

2024
2023
£
£


Bank interest payable
289,131
242,247

Finance leases and hire purchase contracts
6,945
3,628

Net finance costs in respect of defined benefit pension plans
(44,000)
(38,000)

252,076
207,875

Page 24

 
KILLGERM GROUP LIMITED
 

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

11.


Taxation


2024
2023
£
£

Corporation tax


Current tax on profits for the year
152,709
137,926

Adjustments in respect of previous periods
20,168
-

Foreign tax


Foreign tax on income for the year
705,715
614,745

Total current tax
878,592
752,671

Deferred tax


Origination and reversal of timing differences
1,691
5,891


Tax on profit
880,283
758,562

Factors affecting tax charge for the year

The tax assessed for the year is higher than (2023 - higher than) the standard rate of corporation tax in the UK of 25% (2023 - 23.5%). The differences are explained below:

2024
2023
£
£


Profit on ordinary activities before tax
2,840,087
2,359,583


Profit on ordinary activities multiplied by standard rate of corporation tax in the UK of 25% (2023 - 23.5%)
710,022
554,502

Effects of:


Expenses not deductible for tax purposes, other than goodwill amortisation and impairment
60,203
212,033

Differences in tax rates on overseas earnings
137,067
43,711

Adjustments to tax charge in respect of prior periods
20,168
-

Adjustment in research and development tax credit leading to an increase (decrease) in the tax charge
(35,000)
(39,750)

Deferred tax current year movement
1,691
5,891

Deferred tax not recognised
(13,868)
(17,825)

Total tax charge for the year
880,283
758,562


Factors that may affect future tax charges

There are no factors that may affect future tax charges. 

Page 25

 
KILLGERM GROUP LIMITED
 

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

12.


Intangible assets

Group





Patents, designs & trademarks
Goodwill
Total

£
£
£



Cost


At 1 January 2024
859,110
1,907,458
2,766,568


Additions
21,567
-
21,567


Foreign exchange movement
-
(73,589)
(73,589)



At 31 December 2024

880,677
1,833,869
2,714,546



Amortisation


At 1 January 2024
787,841
1,204,859
1,992,700


Charge for the year on owned assets
26,791
140,753
167,544


Foreign exchange movement
-
(31,415)
(31,415)



At 31 December 2024

814,632
1,314,197
2,128,829



Net book value



At 31 December 2024
66,045
519,672
585,717



At 31 December 2023
71,269
702,599
773,868



Page 26

 
KILLGERM GROUP LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
 
           12.Intangible assets (continued)

Company




Patents, designs & trademarks
Goodwill
Total

£
£
£



Cost


At 1 January 2024
859,110
200,000
1,059,110


Additions
21,567
-
21,567



At 31 December 2024

880,677
200,000
1,080,677



Amortisation


At 1 January 2024
787,841
200,000
987,841


Charge for the year
26,791
-
26,791



At 31 December 2024

814,632
200,000
1,014,632



Net book value



At 31 December 2024
66,045
-
66,045



At 31 December 2023
71,269
-
71,269

The above Intellectual Property costs relate to the registration and related legal costs of patents, registered designs and trademarks owned by the Group.
Page 27

 
KILLGERM GROUP LIMITED
 

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

13.


Tangible fixed assets

Group






Land and buildings
Plant and machinery
Motor vehicles
Fixtures, fittings and equipment
Total

£
£
£
£
£



Cost or valuation


At 1 January 2024
7,275,471
1,383,336
244,013
2,226,375
11,129,195


Additions
1,305,785
131,526
3,164
282,221
1,722,696


Disposals
-
(17,334)
-
-
(17,334)


Exchange adjustments
(183,189)
62,752
82
1,952
(118,403)



At 31 December 2024

8,398,067
1,560,280
247,259
2,510,548
12,716,154



Depreciation


At 1 January 2024
1,740,449
1,026,486
89,925
1,682,207
4,539,067


Charge for the year on owned assets
129,979
91,289
32,355
251,823
505,446


Disposals
-
(17,334)
-
-
(17,334)


Exchange adjustments
(40,516)
63,301
1,970
17,407
42,162



At 31 December 2024

1,829,912
1,163,742
124,250
1,951,437
5,069,341



Net book value



At 31 December 2024
6,568,155
396,538
123,009
559,111
7,646,813



At 31 December 2023
5,535,022
356,850
154,088
544,168
6,590,128

The net book value of assets held under finance leases or hire purchase contracts, included above, are as follows:


2024
2023
£
£



Furniture, fittings and equipment
106,993
45,176

Page 28

 
KILLGERM GROUP LIMITED
 

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

           13.Tangible fixed assets (continued)


Company






Land and buildings
Plant and machinery
Fixtures, fittings and equipment
Total

£
£
£
£

Cost or valuation


At 1 January 2024
3,937,444
1,018,179
1,480,107
6,435,730


Additions
-
38,392
240,913
279,305



At 31 December 2024

3,937,444
1,056,571
1,721,020
6,715,035



Depreciation


At 1 January 2024
772,799
778,040
1,187,545
2,738,384


Charge for the year on owned assets
61,773
41,386
182,874
286,033



At 31 December 2024

834,572
819,426
1,370,419
3,024,417



Net book value



At 31 December 2024
3,102,872
237,145
350,601
3,690,618



At 31 December 2023
3,164,645
240,139
292,562
3,697,346






The net book value of assets held under finance leases or hire purchase contracts, included above, are as follows:


2024
2023
£
£



Furniture, fittings and equipment
106,993
45,176

Page 29

 
KILLGERM GROUP LIMITED
 

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

14.


Fixed asset investments

Company





Investments in subsidiary companies

£



Cost or valuation


At 1 January 2024
2,457,393


Additions
743,863


Disposals
(4,256)



At 31 December 2024

3,197,000



Impairment


At 1 January 2024
207,820



At 31 December 2024

207,820



Net book value



At 31 December 2024
2,989,180



At 31 December 2023
2,249,573



Page 30

 
KILLGERM GROUP LIMITED
 

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

Subsidiary undertakings


The following were subsidiary undertakings of the Company:

Name

Class of shares

Holding

Killgerm Chemicals Ltd
Ordinary
100%
Pestwest Electronics Ltd
Ordinary
100%
Albatross Marketing Ltd
Ordinary
100%
Pestwest Environmental Ltd
Ordinary
100%
Travelwise Business Travel Management Ltd
Ordinary
100%
Killgerm Ireland Ltd
Ordinary
100%
Killgerm SA
Ordinary
100%
Killgerm Benelux NV
Ordinary
100%
Killgerm GmbH
Ordinary
100%
Travelwise Leisure Ltd
Ordinary
100%
Killgerm USA Inc
Ordinary
100%
Pestwest USA LLC
Ordinary
100%
Killgerm Holdings LLC
Ordinary
100%
Killgerm Schweiz GmbH
Ordinary
100%
Killgerm Polska Sp z.o.o
Ordinary
100%
Shenzhen Pestwest Trading Co Limited
Ordinary
100%
Killgerm Nederland B.V
Ordinary
100%
Pestwest Australia Pty Ltd
Ordinary
100%
Killgerm Scandinavia AB
Ordinary
100%
Killgerm France SAS
Ordinary
100%

The principal activities of the subsidiary companies include the formulation and distribution of biocides and other products used within the pest control industry and the manufacture and distribution of electronic fly killers and related accessories. During the year Killgerm Portugal Lda, a dormant entity, was dissolved for nil proceeds. 

15.


Stocks

Group
Group
2024
2023
£
£

Raw materials and finished goods
9,382,167
9,513,983



16.


Debtors

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


Trade debtors
7,016,827
6,039,448
6,076
36,802

Amounts owed by group undertakings
-
-
3,973,547
2,010,100

Amounts owed by joint ventures and associated undertakings
27,782
1,151
27,782
1,151

Other debtors
2,906,904
2,103,897
49,060
109,971

Prepayments and accrued income
959,781
1,566,669
263,726
453,620

Tax recoverable
22,491
86,686
-
28,030

10,933,785
9,797,851
4,320,191
2,639,674


Page 31

 
KILLGERM GROUP LIMITED
 

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

17.


Cash and cash equivalents

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

Cash at bank and in hand
6,730,812
5,906,673
3,489,092
3,319,503

Less: bank overdrafts
(2,167,437)
(2,280,128)
-
-

4,563,375
3,626,545
3,489,092
3,319,503



18.


Creditors: Amounts falling due within one year

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

Bank overdrafts
2,167,437
2,280,128
-
-

Bank loans
244,414
194,128
204,257
150,866

Trade creditors
3,659,826
3,340,968
46,375
54,645

Amounts owed to group undertakings
-
-
654,987
13,275

Corporation tax
464,769
339,946
-
-

Other taxation and social security
258,483
246,729
151,795
136,252

Obligations under finance lease and hire purchase contracts
37,317
24,362
29,614
14,410

Other creditors
90,720
36,324
58,651
9,815

Accruals and deferred income
2,618,764
2,601,961
49,232
70,151

9,541,730
9,064,546
1,194,911
449,414


HSBC bank borrowings are secured by debentures including a fixed charge over all current and future assets of the parent company. The bank also has a legal right of set-off incorporated in an unlimited multilateral guarantee with the parent Company and UK fellow subsidiaries.

Page 32

 
KILLGERM GROUP LIMITED
 

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

19.


Creditors: Amounts falling due after more than one year

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

Bank loans
2,691,309
1,776,844
2,153,820
1,147,857

Net obligations under finance leases and hire purchase contracts
85,917
72,416
57,697
36,417

Other creditors
-
18,515
-
-

2,777,226
1,867,775
2,211,517
1,184,274



Included within creditors are five bank loans totalling £2,893,000 (2023 - £1,822,000) with an amount of £1,587,000 (2023 - £853,000) due for repayment after more than five years. These loans are secured against the assets to which they relate.
Loan 1 is repayable in monthly instalments of capital and interest with an interest rate of 1.85% above base rate. The balance due for repayment on this loan after more than five years is £36,000 (2023 - £86,000).
Loan 2 is repayable in monthly instalments of capital and interest with an interest rate of 1.85% above base rate. The balance due for repayment on this loan after more than five years is £16,000 (2023 - £102,000).
Loan 3 is repayable in monthly instalments of capital and interest with an interest rate of 2.00% above base rate. The balance due for repayment on this loan after more than five years is £252,000 (2023 - £317,000).
Loan 4 is repayable in quarterly instalments of capital and interest with an interest rate of 3.20% above the Bank Bill Swap Bid Rate (BBSY). The balance due for repayment on this loan after more than five years is £377,000 (2023 - £348,000. 
Loan 5 is repayable in monthly instalments of captial and interest with an interest rate of 1.85% above base rate. The balance due for repayment on this loan after more than five years is £906,000. 


20.


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
42,958
26,711
35,256
16,759

Between 1-5 years
91,141
74,444
62,921
38,445

Less: future finance charges
(10,866)
(4,377)
(10,866)
(4,377)

123,233
96,778
87,311
50,827

Page 33

 
KILLGERM GROUP LIMITED
 

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

21.


Deferred taxation


Group



2024


£






At beginning of year
(95,585)


Utilised in year
(1,691)



At end of year
(97,276)

Company




At beginning of year - none in Company
-



At end of year
-

The provision for deferred taxation is made up as follows:

Group
Group
2024
2023
£
£

Accelerated capital allowances
97,276
95,585


22.


Share capital

2024
2023
£
£
Allotted, called up and fully paid



120,250 (2023 - 120,250) Ordinary shares shares of £1.00 each
120,250
120,250



23.


Reserves

Translation reserve - This reserve records foreign currency movements arising on consolidation

Reserve for own shares - This reserve records contributions made by the Group to the Killgerm Employee Benefit Trust.

Profit and loss account - This reserve records retained earnings and accumulated losses. 

Page 34

 
KILLGERM GROUP LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
24.


Analysis of net debt




At 1 January 2024
Cash flows
At 31 December 2024
£

£

£

Cash at bank and in hand

5,906,673

824,139

6,730,812

Bank overdrafts

(2,280,128)

112,691

(2,167,437)

Debt due after 1 year

(1,776,844)

(914,465)

(2,691,309)

Debt due within 1 year

(412,446)

24,967

(387,479)

Finance leases

(96,778)

(26,456)

(123,234)


1,340,477
20,876
1,361,353


25.


Pension commitments

Defined contribution
The amount recognised in profit or loss as an expense in relation to defined contribution plans was £740,331 (2023: £650,741).
Defined benefit

The Group operates a defined benefit pension scheme.

The assets of the scheme are held seperately from those of the group. The contributions to the scheme are determined by a qualified actuary on the basis of triennial valuations using projected unit method. The most recent actuarial valuation was as at 30 September 2023. The main assumptions are the rate of interest and the salary increase.
Since 20 September 2007 the scheme has been closed to future accrual and all active members transferred out of the scheme in December 2008. The actuarial value of the scheme's assets at 30 September 2023 was £2,923,000 representing 110% of the benefits that had accrued to members, after allowing for expected future increases in earnings. There was therefore a surplus on a current funding level basis of £267,000. 
 


Reconciliation of present value of plan liabilities:


2024
2023
£
£

Reconciliation of present value of plan liabilities


At the beginning of the year
2,150,000
2,103,000

Interest cost
100,000
103,000

Actuarial (gains)/losses
65,000
10,000

Benefits paid
(153,000)
(66,000)

At the end of the year
2,162,000
2,150,000


Page 35

 
KILLGERM GROUP LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
 
25.Pension commitments (continued)


Reconciliation of present value of plan assets:


2024
2023
£
£


At the beginning of the year
3,005,000
2,773,000

Interest income
144,000
141,000

Expected return on scheme assets
(588,000)
2,000

Contributions
160,000
155,000

Benefits paid
(153,000)
(66,000)

Derecognition of surplus
(406,000)
(855,000)

At the end of the year
2,162,000
2,150,000

Note defined benefit assets are not recognised. 


Composition of plan assets:


2024
2023
£
£


Cash and cash equivalents
745,000
601,000

Equity instruments
396,000
696,000

Debt instruments
817,000
1,186,000

Other
610,000
522,000

Total plan assets
2,568,000
3,005,000

2024
2023
£
£


Fair value of plan assets
2,162,000
2,150,000

Present value of plan liabilities
(2,162,000)
(2,150,000)

Net pension scheme liability
-
-

Page 36

 
KILLGERM GROUP LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
 
25.Pension commitments (continued)


The amounts recognised in profit or loss are as follows:

2024
2023
£
£


Net interest (expense)/income
44,000
38,000


The Group expects to contribute £nil to its defined benefit pension scheme in 2025.





Principal actuarial assumptions at the balance sheet date (expressed as weighted averages):

2024
2023
%
%
Discount rate


5.50

4.80
 
Future pension increases


3.50

3.50
 
Expected rate of increase in healthcare costs


2.70

2.60
 
Inflation assumption


3.10

3.00
 
Mortality rates



 
- for a male aged 65 now


20.4

20.3
 
- at 65 for a male aged 45 now


21.7

21.5
 
- for a female aged 65 now


22.9

22.2
 
- at 65 for a female member aged 45 now


24.4

23.7
 






26.


Commitments under operating leases

At 31 December 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
Company
Company
2024
2023
2024
2023
£
£
£
£

Not later than 1 year
278,065
193,898
35,901
61,845

Later than 1 year and not later than 5 years
798,990
218,817
26,215
24,263

Later than 5 years
767,352
-
-
-

1,844,407
412,715
62,116
86,108

Page 37

 
KILLGERM GROUP LIMITED
 

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

27.


Transactions with directors

A director had a loan from the company during the year. The balance at 31 December 2024 was £35,000 (2023 - £35,000) and this is included in debtors. The maximum balance outstanding during the year was £35,000 (2023 - £35,000) and the loan is interest free.


28.


Related party transactions

The company was under the control of The Trustees of the Killgerm Employee Benefit Trust throughout the year.
During the year the company made payments totalling £48,000 (2023 - £45,000) on behalf of the Killgerm Employee Benefit Trust to Mr G Ward in his capacity as a trustee. Mr G Ward is also a director of Killgerm Group Limited.
Advantage has been taken of the exemption under FRS102 Section 33 "Related Party Disclosures" not to disclose transactions with entities that are part of the Killgerm Group or associates and joint ventures of other Killgerm companies, on the grounds that the company is preparing consolidated accounts and the company holds all the voting rights of the companies it controls.

Page 38