Caseware UK (AP4) 2024.0.164 2024.0.164 2024-09-302024-09-30truetruefalse1032023-10-01false93truefalse 01531993 2023-10-01 2024-09-30 01531993 2022-10-01 2023-09-30 01531993 2024-09-30 01531993 2023-09-30 01531993 2022-10-01 01531993 4 2023-10-01 2024-09-30 01531993 4 2022-10-01 2023-09-30 01531993 d:CompanySecretary1 2023-10-01 2024-09-30 01531993 d:Director1 2023-10-01 2024-09-30 01531993 d:Director2 2023-10-01 2024-09-30 01531993 d:Director3 2023-10-01 2024-09-30 01531993 d:RegisteredOffice 2023-10-01 2024-09-30 01531993 e:Buildings 2023-10-01 2024-09-30 01531993 e:PlantMachinery 2023-10-01 2024-09-30 01531993 e:PlantMachinery 2024-09-30 01531993 e:PlantMachinery 2023-09-30 01531993 e:PlantMachinery e:OwnedOrFreeholdAssets 2023-10-01 2024-09-30 01531993 e:MotorVehicles 2023-10-01 2024-09-30 01531993 e:MotorVehicles 2024-09-30 01531993 e:MotorVehicles 2023-09-30 01531993 e:MotorVehicles e:OwnedOrFreeholdAssets 2023-10-01 2024-09-30 01531993 e:FurnitureFittings 2023-10-01 2024-09-30 01531993 e:FurnitureFittings 2024-09-30 01531993 e:FurnitureFittings 2023-09-30 01531993 e:FurnitureFittings e:OwnedOrFreeholdAssets 2023-10-01 2024-09-30 01531993 e:OwnedOrFreeholdAssets 2023-10-01 2024-09-30 01531993 e:CurrentFinancialInstruments 2024-09-30 01531993 e:CurrentFinancialInstruments 2023-09-30 01531993 e:Non-currentFinancialInstruments 2024-09-30 01531993 e:Non-currentFinancialInstruments 2023-09-30 01531993 e:CurrentFinancialInstruments e:WithinOneYear 2024-09-30 01531993 e:CurrentFinancialInstruments e:WithinOneYear 2023-09-30 01531993 e:Non-currentFinancialInstruments e:AfterOneYear 2024-09-30 01531993 e:Non-currentFinancialInstruments e:AfterOneYear 2023-09-30 01531993 e:ReportableOperatingSegment1 2023-10-01 2024-09-30 01531993 e:ReportableOperatingSegment1 2022-10-01 2023-09-30 01531993 e:ReportableOperatingSegment2 2023-10-01 2024-09-30 01531993 e:ReportableOperatingSegment2 2022-10-01 2023-09-30 01531993 e:UKTax 2023-10-01 2024-09-30 01531993 e:UKTax 2022-10-01 2023-09-30 01531993 e:ShareCapital 2023-10-01 2024-09-30 01531993 e:ShareCapital 2024-09-30 01531993 e:ShareCapital 2022-10-01 2023-09-30 01531993 e:ShareCapital 2023-09-30 01531993 e:ShareCapital 2022-10-01 01531993 e:RetainedEarningsAccumulatedLosses 2023-10-01 2024-09-30 01531993 e:RetainedEarningsAccumulatedLosses 2024-09-30 01531993 e:RetainedEarningsAccumulatedLosses 2022-10-01 2023-09-30 01531993 e:RetainedEarningsAccumulatedLosses 2023-09-30 01531993 e:RetainedEarningsAccumulatedLosses 2022-10-01 01531993 e:AcceleratedTaxDepreciationDeferredTax 2024-09-30 01531993 e:AcceleratedTaxDepreciationDeferredTax 2023-09-30 01531993 e:TaxLossesCarry-forwardsDeferredTax 2024-09-30 01531993 e:TaxLossesCarry-forwardsDeferredTax 2023-09-30 01531993 e:RetirementBenefitObligationsDeferredTax 2024-09-30 01531993 e:RetirementBenefitObligationsDeferredTax 2023-09-30 01531993 d:OrdinaryShareClass1 2023-10-01 2024-09-30 01531993 d:OrdinaryShareClass1 2024-09-30 01531993 d:OrdinaryShareClass1 2023-09-30 01531993 d:OrdinaryShareClass2 2023-10-01 2024-09-30 01531993 d:OrdinaryShareClass2 2024-09-30 01531993 d:OrdinaryShareClass2 2023-09-30 01531993 d:OrdinaryShareClass3 2023-10-01 2024-09-30 01531993 d:OrdinaryShareClass3 2024-09-30 01531993 d:OrdinaryShareClass3 2023-09-30 01531993 d:FRS102 2023-10-01 2024-09-30 01531993 d:Audited 2023-10-01 2024-09-30 01531993 d:FullAccounts 2023-10-01 2024-09-30 01531993 d:PrivateLimitedCompanyLtd 2023-10-01 2024-09-30 01531993 e:Subsidiary1 2023-10-01 2024-09-30 01531993 e:Subsidiary1 1 2023-10-01 2024-09-30 01531993 e:Subsidiary2 2023-10-01 2024-09-30 01531993 e:Subsidiary2 1 2023-10-01 2024-09-30 01531993 e:HirePurchaseContracts e:WithinOneYear 2024-09-30 01531993 e:HirePurchaseContracts e:WithinOneYear 2023-09-30 01531993 e:HirePurchaseContracts e:BetweenOneFiveYears 2024-09-30 01531993 e:HirePurchaseContracts e:BetweenOneFiveYears 2023-09-30 01531993 f:PoundSterling 2023-10-01 2024-09-30 xbrli:shares iso4217:GBP xbrli:pure

Registered number: 01531993










K J SERVICES LIMITED










ANNUAL REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30 SEPTEMBER 2024

 
K J SERVICES LIMITED
 
 
COMPANY INFORMATION


Directors
William Keith Thomas 
William Spencer Thomas 
William Jay Thomas 




Company secretary
William Keith Thomas



Registered number
01531993



Registered office
Capital Valley Industrial Park
Rhymney

Gwent

NP22 5PT




Independent auditors
MHA

MHA House

Charter Court

Swansea Enterprise Park

Swansea

SA7 9FS





 
K J SERVICES LIMITED
 

CONTENTS



Page
Strategic report
1 - 3
Directors' report
4 - 5
Independent auditors' report
6 - 9
Statement of comprehensive income
10
Balance sheet
11
Statement of changes in equity
12
Notes to the financial statements
13 - 29


 
K J SERVICES LIMITED
 
 
STRATEGIC REPORT
FOR THE YEAR ENDED 30 SEPTEMBER 2024

The directors present their strategic report for the year ended 30 September 2024.

Business review
 
The company's trading results for the financial year are shown in the Statement of comprehensive income.
At 30 September 2024 the company held investments in two wholly owned subsidiaries; K J Minerals Ltd and K J Equipment Limited (formerly K J Rental Ltd). K J Rental Ltd changed the company name to K J Equipment Limited on 19 July 2023. 
The strategy of the business is to increase its market share by focusing on strong customer service.
The company enjoys a number of competitive advantages including strong brand recognition in its heartland trading region, where it consistently achieves a strong market share; a well established reputation for price competitiveness; a knowledgeable and enthusiastic workforce, and a strong customer focus throughout the business.
The directors expect that trading will remain competitive throughout FY 2025.
The directors enter FY 2025 with a strong balance sheet. Based on the post year end trading performance to date, the directors have a reasonable expectation that the business will continue to operate for the foreseeable future.

Page 1

 
K J SERVICES LIMITED
 

STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024

Principal risks and uncertainties
 
The management of the business and the execution of the company's strategy is subject to a number of risks. The key business risks can be summarised as follows:
Competition Risk
The market in which the company operates is subject to intense competition. The impact of such competition could impact on margins.
Mitigation
The company continues to invest heavily in its range of stock, providing customers with a wide choice of equipment for resale and hire. This coupled with a strong focus on customer services, results in a high level of repeat business.
People Risk
The business could be impacted by the loss of key individuals.
Mitigation
The business looks to increase staff engagement through (1) regular opportunities to give feedback and to influence future business developments and (2) training and progression opportunities.
Price Risk
The company is not exposed to any commodity price risks.
Credit Risk
The company's financial assets are cash and trade debtors. The company's credit risk is primarily attributable to its trade debtors which are presented in the balance sheet net of allowances for doubtful debts. The company has implemented policies that require appropriate credit checks on potential customers before sales are made.
Liquidity Risk
The company actively maintains a mixture of long term and short term debt finance that is designed to ensure that the company has sufficient funds for operations and planned expansions.
Interest Rate Cashflow Risk
The company has both interest bearing assets and liabilities. Interest bearing assets comprise only cash balances, which earn interest at floating rates. The company has a policy of maintaining debt at floating rates. The directors will revisit the appropriateness of the policy should the company's operation change in size or nature.
 

Page 2

 
K J SERVICES LIMITED
 

STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024

Financial key performance indicators
 
The company's key performance indicators (KPI's) are summarised below:

Year ended 30 September 2024
Year  ended 30 September 2023
      £'000
      £'000

Turnover

20,984

18,961

Profit before Tax

2,144

1,401

Net Current Assets

8,317

6,457

Cash at Bank

3,221

1,932

Net Assets

21,251

19,438





This report was approved by the board on 27 June 2025 and signed on its behalf.



William Spencer Thomas
Director

Page 3

 
K J SERVICES LIMITED
 
 
 
DIRECTORS' REPORT
FOR THE YEAR ENDED 30 SEPTEMBER 2024

The directors present their report and the financial statements for the year ended 30 September 2024.

Directors' responsibilities statement

The directors are responsible for preparing the Strategic report, the Directors' report and the financial statements in accordance with applicable law and regulations.
 
Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with 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 of the profit or loss of the Company for that period.

 In preparing these financial statements, the directors are required to:


select suitable accounting policies for the Company's financial statements and then apply them consistently;

make judgments 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 transactions and disclose with reasonable accuracy at any time the financial position of the Company 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 hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Principal activity

The principal activity of the company in the year under review was that of the purchase, sale, hire and repair of heavy plant and equipment.

Results and dividends

The profit for the year, after taxation, amounted to £1,962,895 (2023 - £761,851).

The total distribution of dividends for the year ended 30 September 2024 will be £150,000 (2023 - £289,826).

Directors

The directors who served during the year were:

William Keith Thomas 
William Spencer Thomas 
William Jay Thomas 

Disclosure in the strategic report 
Included in the company's stategic report is a review of the business and a description of the principal risks and uncertainties facing the company.

Page 4

 
K J SERVICES LIMITED
 
 
 
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 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'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's auditors are aware of that information.

Auditors

The auditor, MHA, previously traded through the legal entity MacIntyre Hudson LLP. In response to regulatory changes, MacIntyre Hudson LLP ceased to hold an audit registration with the engagement transitioning to MHA Audit Services LLP.

MHA will be proposed for reappointment in accordance with section 485 of the Companies Act 2006.

This report was approved by the board on 27 June 2025 and signed on its behalf.
 





William Spencer Thomas
Director

Page 5

 
K J SERVICES LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF K J SERVICES LIMITED
 

Opinion


We have audited the financial statements of K J Services Limited (the 'Company') for the year ended 30 September 2024, which comprise the Statement of comprehensive income, the Balance sheet, the 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 Company's affairs as at 30 September 2024 and of its profit for the year then ended;
have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
have been prepared in accordance with the requirements of the Companies Act 2006.


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 Company 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 Company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.


Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.


Page 6

 
K J SERVICES LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF K J SERVICES LIMITED (CONTINUED)


Other information


The other information comprises the information included in the Annual Report other than the financial statements and our Auditors' report thereon. The directors are responsible for the other information contained within the Annual ReportOur opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.


We have nothing to report in this regard.


Opinion on other matters prescribed by the Companies Act 2006
 

In our opinion, based on the work undertaken in the course of the audit:


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


Matters on which we are required to report by exception
 

In the light of the knowledge and understanding of the Company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic report or the Directors' report.


We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:


adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
the financial statements are not in agreement with the accounting records and returns; or
certain disclosures of directors' remuneration specified by law are not made; or
we have not received all the information and explanations we require for our audit.


Responsibilities of directors
 

As explained more fully in the Directors' responsibilities statement set out on page 4, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.


In preparing the financial statements, the directors are responsible for assessing the Company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the Company or to cease operations, or have no realistic alternative but to do so.


Page 7

 
K J SERVICES LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF K J SERVICES 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 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:
•Enquiry of management and those charged with governance around actual and potential litigation and claims, non-compliance with laws and regulations; 
•Enquiry of management around any instances of potential or actual fraud; 
•Review of legal and professional fees for evidence of legal work undertaken and/or fines/penalties incurred
•Performing audit work over the risk of management override of controls, including testing of journal entries and other adjustments for appropriateness, evaluating the business rationale of significant transactions outside the normal course of business and reviewing accounting estimates for bias;
•Evaluating the business rationale of significant transactions outside the normal course of business and reviewing accounting estimates for bias; 
•Performing substantive tests of detail around the completeness of income within the financial system;
•Reviewing financial statement disclosures and testing to supporting documentation to assess compliance with applicable laws and regulations.


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


A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our Auditors' report.


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.


Page 8

 
K J SERVICES LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF K J SERVICES LIMITED (CONTINUED)





Brian Garland BA ACA (Senior statutory auditor)
  
for and on behalf of
MHA
 
Statutory Auditor
Swansea, United Kingdom

MHA is the trading name of MHA Audit Services LLP, a limited liability partnership in England and Wales (registered number OC455542) 
Date:    
27 June 2025
Page 9

 
K J SERVICES LIMITED
 
 
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 30 SEPTEMBER 2024

2024
2023
Note
£
£

  

Turnover
 4 
20,984,189
18,961,192

Cost of sales
  
(16,464,010)
(14,992,370)

Gross profit
  
4,520,179
3,968,822

Administrative expenses
  
(2,444,212)
(2,411,939)

Other operating income
 5 
285,563
272,446

Operating profit
 6 
2,361,530
1,829,329

Interest payable and similar expenses
 9 
(217,487)
(428,332)

Profit before tax
  
2,144,043
1,400,997

Tax on profit
 10 
(181,148)
(639,146)

Profit for the financial year
  
1,962,895
761,851

Other comprehensive income for the year
  

Total comprehensive income for the year
  
1,962,895
761,851

The notes on pages 13 to 29 form part of these financial statements.

Page 10

 
K J SERVICES LIMITED
REGISTERED NUMBER: 01531993

BALANCE SHEET
AS AT 30 SEPTEMBER 2024

2024
2023
Note
£
£

Fixed assets
  

Tangible assets
 12 
19,115,699
20,369,877

Investments
 13 
252
252

  
19,115,951
20,370,129

Current assets
  

Stocks
 14 
3,080,328
3,208,038

Debtors: amounts falling due within one year
 15 
9,063,541
8,009,849

Cash at bank and in hand
  
3,221,206
1,931,803

  
15,365,075
13,149,690

Creditors: amounts falling due within one year
 16 
(7,048,155)
(6,692,337)

Net current assets
  
 
 
8,316,920
 
 
6,457,353

Total assets less current liabilities
  
27,432,871
26,827,482

Creditors: amounts falling due after more than one year
 17 
(2,587,266)
(4,817,589)

Provisions for liabilities
  

Deferred tax
 20 
(3,594,313)
(2,571,496)

  
 
 
(3,594,313)
 
 
(2,571,496)

Net assets
  
21,251,292
19,438,397


Capital and reserves
  

Called up share capital 
 21 
175,000
175,000

Profit and loss account
 22 
21,076,292
19,263,397

  
21,251,292
19,438,397


The financial statements were approved and authorised for issue by the board and were signed on its behalf on 27 June 2025.




William Spencer Thomas
Director

The notes on pages 13 to 29 form part of these financial statements.

Page 11

 
K J SERVICES LIMITED
 

STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 SEPTEMBER 2024


Called up share capital
Profit and loss account
Total equity

£
£
£


At 1 October 2022
175,000
18,791,372
18,966,372


Comprehensive income for the year

Profit for the year
-
761,851
761,851
Total comprehensive income for the year
-
761,851
761,851


Contributions by and distributions to owners

Dividends: Equity capital
-
(289,826)
(289,826)


Total transactions with owners
-
(289,826)
(289,826)



At 1 October 2023
175,000
19,263,397
19,438,397


Comprehensive income for the year

Profit for the year
-
1,962,895
1,962,895
Total comprehensive income for the year
-
1,962,895
1,962,895


Contributions by and distributions to owners

Dividends: Equity capital
-
(150,000)
(150,000)


Total transactions with owners
-
(150,000)
(150,000)


At 30 September 2024
175,000
21,076,292
21,251,292


The notes on pages 13 to 29 form part of these financial statements.

Page 12

 
K J SERVICES LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2024

1.


General information

K.J. Services Limited is a private company, limited by shares, registered in England and Wales. The company's registered number is 01531993 and registered office address is Capital Valley Industrial Park, Rhymney, Gwent, NP22 5PT.
The presentation currency of the financial statements is the Pound Sterling (£).
Monetary amounts in these financial statements are rounded to the nearest (£).

2.Accounting policies

 
2.1

Basis of preparation of financial statements

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

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

The following principal accounting policies have been applied:

 
2.2

Financial Reporting Standard 102 - reduced disclosure exemptions

The 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).

This information is included in the consolidated financial statements of K.J Services Holdings Limited as at 30th September 2024 and these financial statements may be obtained from the Registrar of Companies House, Crown Way, Maindy, CF14 3UZ.

 
2.3

Preparation of consolidated financial statements

The Company is a parent company that is also a subsidiary included in the consolidated financial statements of a larger group by a parent undertaking established under the law of any part of the United Kingdom and is therefore exempt from the requirement to prepare consolidated financial statements under section 400 of the Companies Act 2006.

Page 13

 
K J SERVICES LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2024

2.Accounting policies (continued)

 
2.4

Going concern

The financial statements have been prepared on a going concern basis which assumes that the company will continue in operational existence for the foreseeable future.
The directors have reviewed the balance sheet, the likely future cash flows of the business and has considered the facilities that are in place at the date of signing the report. The directors anticipate that trading will remain competitive in the forthcoming financial year.
At the date of approving the financial statements, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for foreseeable future.

 
2.5

Revenue

Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Company 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 Company has transferred the significant risks and rewards of ownership to the buyer;
the Company 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 Company 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 Company 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.

Page 14

 
K J SERVICES LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2024

2.Accounting policies (continued)

 
2.6

Pensions

Defined contribution pension plan

The Company operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the Company pays fixed contributions into a separate entity. Once the contributions have been paid the Company 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 Company in independently administered funds.

 
2.7

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 operates and generates 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; and
Any deferred tax balances are reversed if and when all conditions for retaining associated tax allowances have been met.

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.


 
2.8

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 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.

Page 15

 
K J SERVICES LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2024

2.Accounting policies (continued)


2.8
Tangible fixed assets (continued)

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 cost
Plant and machinery
-
15%
on reducing balance
Motor vehicles
-
25%
on reducing balance
Fixtures and fittings
-
25%
on reducing balance

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.

  
2.9

Impairment of fixed assets

At each reporting period end date, the company reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.
The carrying amount of the investments accounted for using the equity method is tested for impairment as a single asset. Any goodwill included in the carrying amount of the investment is not tested separately for impairment.
Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.
If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.
Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss sequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as revaluation increase.

Page 16

 
K J SERVICES LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2024

2.Accounting policies (continued)

  
2.10

Investments in subsidiaries

Investments in subsidiary undertakings are recognised at cost less impairment.

 
2.11

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.

 
2.12

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.

 
2.13

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.

 
2.14

Financial instruments

Financial assets and financial liabilities are recognised when the company becomes a party to the contractual provisions of the instrument.
Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.

  
2.15

Financial assets and liabilities

All financial assets and liabilities are initially measured at transaction price (including transaction costs), except for those financial assets classified as at fair value through profit or loss, which are initially measured at fair value (which is normally the transaction price excluding transaction costs), unless the arrangement constitutes a financing transaction. If an arrangement constitutes a finance transaction, the financial asset or financial liability is measured at the present value of the future payments discounted at a market rate of interest for a similar debt instrument.
Debt instruments that are classified as payable or receivable within one year are measured at the undiscounted amount of the cash or other consideration expected to be paid or received, net of impairment.

Page 17

 
K J SERVICES LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2024

2.Accounting policies (continued)

  
2.16

Basic financial assets

Basic financial assets, which include trade debtors and cash and bank balances, are initially measured at transaction price, (including transaction costs) and are subsequently carried at amortised cost using the effective interest method, unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.

  
2.17

Basic financial liabilities

Basic financial liabilities, including trade creditors are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

  
2.18

Derecognition of financial assets

Financial assets are derecognised when and only when the contractual rights to the cash flows from the financial asset expire or are settled, the company transfers to another party substantially all of the risks and rewards of ownership of the financial asset, or the company, despite having retained some significant risks and rewards of ownership, has transferred control of the asset to another party and the other party has the practical ability to sell the asset in its entirety to an unrelated third party and is able to exercise that ability unilaterally and without needing to impose additional restrictions on the transfer.

  
2.19

Derecognition of financial liabilities

Financial liabilities are derecognised only when the obligation specified in the contract is discharged, cancelled or expires.

  
2.20

Foreign currencies

Assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the balance sheet 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.

  
2.21

Hire purchase and leasing commitments

Assets obtained under hire purchase contracts or finance leases are capitalised in the balance sheet. Those held under hire purchase contracts are depreciated over their estimated useful lives. Those held under finance leases are depreciated over their estimated useful lives or the lease term, whichever is the shorter.
The interest element of these obligations is charged to profit or loss over the relevant period. The capital element of the future payments is treated as a liability.
Rentals paid under operating leases are charged to profit or loss on a straight line basis over the period of the lease.

Page 18

 
K J SERVICES LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2024

2.Accounting policies (continued)

  
2.22

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.

  
2.23

Staff loyalty bonus

The company operates a loyalty bonus in relation to certain staff. The amount charged against profits represents the contributions which will become payable under the scheme in respect of the accounting period.

  
2.24

Equity instruments

Equity instruments issued by the company are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.

 
2.25

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.

  
2.26

Related party exemption

The company has taken advantage of exemption, under the terms of Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland,' not to disclose related party transactions with wholly owned subsidiaries within the group. 

Page 19

 
K J SERVICES LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2024

3.


Judgments in applying accounting policies and key sources of estimation uncertainty

In the application of the company's accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future period where the revision affects both current and future periods.
The following judgements (apart from those involving estimates) have had the most significant effect on amounts recognised in the financial statements.
Useful economic lives of tangible assets
The annual depreciation charge for tangible assets is sensitive to changes in the estimated useful economic lives and residual values of the assets. The useful economic lives and residual values are reassessed annually. The depreciation charges set are based upon historical experience with similar assets. They are amended when necessary to reflect current estimates taking into account the physical condition and potential obsolescence of the assets.
Stock provisions
Stocks are valued at lower of cost and net realisable value. Net realisable value, includes, where necessary, provisions for slow-moving and obsolete stocks. Calculation of these provisions require judgements to be made, which include forecast consumer trend, the economic environment and stock loss trends.
Bad and doubtful debts
The company makes an estimate of the recoverable value of trade and other debtors. When assessing impairment of trade debt, management considers factors including the ageing profile of the debt and the probability of its recovery. A provision is made for debts that are expected to be non-recoverable. However, as the recoverability of debt is contingent, the provision is considered to be a critical judgement area.


4.


Turnover

The turnover and profit before taxation are attributable to the one principal activity of the company.


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


2024
2023
£
£

Hire sales
18,081,049
15,460,295

Spares and repair sales
2,903,140
3,500,897

20,984,189
18,961,192


Page 20

 
K J SERVICES LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2024

5.


Other operating income

2024
2023
£
£

Sundry receipts
285,563
272,446

285,563
272,446



6.


Operating profit

The operating profit is stated after charging:

2024
2023
£
£

Hire of plant and machinery
964,723
266,458

Depreciation - owned assets
1,970,201
2,597,695

Depreciation - assets on hire purchase contracts
1,237,686
459,145

Loss on disposal of fixed assets
267,364
345,808

Auditors remuneration
22,000
21,500


7.


Employees

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


2024
2023
£
£

Wages and salaries
6,134,991
5,068,673

Social security costs
655,703
587,783

Other pension costs
195,444
289,216

6,986,138
5,945,672


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


        2024
        2023
            No.
            No.







Operational
84
76



Administrative
19
17

103
93

Page 21

 
K J SERVICES LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2024

8.


Directors' remuneration

2024
2023
£
£

Directors' emoluments
136,370
139,334

Company contributions to defined contribution pension schemes
59,880
150,000

196,250
289,334


During the year retirement benefits were accruing to 1 director (2023 - 1) in respect of defined contribution pension schemes.


9.


Interest payable and similar expenses

2024
2023
£
£


Hire purchase
217,487
428,332

217,487
428,332


10.


Taxation


2024
2023
£
£



Current tax
(841,670)
-

Deferred tax
1,022,818
639,146


181,148
639,146


Total current and deferred tax
181,148
639,146
Page 22

 
K J SERVICES LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2024
 
10.Taxation (continued)


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 - 22.01%). The differences are explained below:

2024
2023
£
£


Profit on ordinary activities before tax
1,894,043
1,400,997


Profit on ordinary activities multiplied by standard rate of corporation tax in the UK of 25% (2023 - 22.01%)
536,011
308,359

Effects of:


Expenses not deductible for tax purposes, other than goodwill amortisation and impairment
12,974
3,281

Capital allowances for year in excess of depreciation
-
(114,982)

Income not taxable for tax purposes
-
(7,926)

Adjustment in research and development tax credit leading to an increase (decrease) in the tax charge
(841,670)
-

Rate changes and timing differences
473,833
450,414

Total tax charge for the year
181,148
639,146


11.


Dividends

2024
2023
£
£


Dividends
150,000
289,826

150,000
289,826

Page 23

 
K J SERVICES LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2024

12.


Tangible fixed assets





Plant and machinery
Motor vehicles
Fixtures and fittings
Total

£
£
£
£



Cost or valuation


At 1 October 2023
34,698,808
1,274,466
554,896
36,528,170


Additions
2,361,983
317,118
100,984
2,780,085


Disposals
(2,000,573)
(244,733)
-
(2,245,306)



At 30 September 2024

35,060,218
1,346,851
655,880
37,062,949



Depreciation


At 1 October 2023
15,341,280
639,837
177,176
16,158,293


Charge for the year on owned assets
2,926,870
177,628
103,389
3,207,887


Disposals
(1,268,110)
(150,820)
-
(1,418,930)



At 30 September 2024

17,000,040
666,645
280,565
17,947,250



Net book value



At 30 September 2024
18,060,178
680,206
375,315
19,115,699



At 30 September 2023
19,357,528
634,628
377,721
20,369,877

The net book value of tangible fixed assets includes £7,268,808 (2023: £8,885,307) in respect of assets held under hire purchase contracts.


13.


Fixed asset investments





Shares in group undertaking

£



Cost or valuation


At 1 October 2023
252



At 30 September 2024
252




Page 24

 
K J SERVICES LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2024

Subsidiary undertakings


The following were subsidiary undertakings of the Company:

Name

Registered office

Class of shares

Holding

K J Minerals Ltd
Capital Valley Industrial Park, Rhymney, Gwent, NP22 5PT
Ordinary
100%
K J Equipment Limited
Unit 2/4 Capital Valley Industrial Park, Rhymney, Gwent, NP22 5PT
Ordinary
100%

The aggregate of the share capital and reserves as at 30 September 2024 and the profit or loss for the year ended on that date for the subsidiary undertakings were as follows:

Name
Aggregate of share capital and reserves
Profit/(Loss)
£
£

K J Minerals Ltd
1,272,249
-

K J Equipment Limited
(168,506)
(168,507)


14.


Stocks

2024
2023
£
£

Plant, fuel and consumables
129,284
82,400

Plant for resale
2,951,044
3,125,638

3,080,328
3,208,038



15.


Debtors

2024
2023
£
£


Trade debtors
6,440,349
5,975,763

Amounts owed by group undertakings
925,865
626,103

Amounts owed by related parties
1,256,802
1,006,802

Prepayments and accrued income
440,525
401,181

9,063,541
8,009,849


Page 25

 
K J SERVICES LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2024

16.


Creditors: Amounts falling due within one year

2024
2023
£
£

Trade creditors
2,831,572
2,014,989

Amounts owed to group undertakings
446,413
446,413

Other taxation and social security
729,474
785,770

Obligations under finance lease and hire purchase contracts
2,654,130
3,138,272

Other creditors
51,468
80,127

Accruals and deferred income
335,098
226,766

7,048,155
6,692,337



17.


Creditors: Amounts falling due after more than one year

2024
2023
£
£

Obligations under finance leases and hire purchase contracts
2,587,266
4,817,589

2,587,266
4,817,589



18.


Hire purchase and finance leases


Minimum lease payments under hire purchase fall due as follows:

2024
2023
£
£


Within one year
2,654,130
3,138,272

Between 1-5 years
2,587,264
4,817,588

5,241,394
7,955,860

Finance lease payments represent rentals payable by the company for certain items of plant and machinery. Leases include purchase options at the end of the lease period, and no restrictions are placed on the use of the assets. All leases are on a fixed repayment basis and no arrangements have been entered into for contingent rental payments.

Page 26

 
K J SERVICES LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2024

19.

Secured debts

The following secured debts are included within creditors:





Obligations under hire purchase contracts are secured on the assets to which they relate.


20.


Deferred taxation




2024


£






At beginning of year
(2,571,495)


Charged to other comprehensive income
(1,022,818)



At end of year
(3,594,313)

Page 27

 
K J SERVICES LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2024
 
20.Deferred taxation (continued)

The provision for deferred taxation is made up as follows:

2024
2023
£
£


Accelerated capital allowances
(3,700,561)
(3,518,855)

Losses carried forward
86,248
926,671

Short term timing differences
20,000
20,689

(3,594,313)
(2,571,495)

Page 28

 
K J SERVICES LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2024

21.


Share capital

2024
2023
£
£
Allotted, called up and fully paid



174,998 (2023 - 174,998) Ordinary shares of £1.00 each
174,998
174,998
1 (2023 - 1) 'A' Ordinary share share of £1.00
1
1
1 (2023 - 1) 'B' Ordinary share share of £1.00
1
1

175,000

175,000



22.


Reserves

Retained earnings
        £
At 1 October 2023

19,263,397

Profit for the year

1,962,895

Dividends

(150,000)

At 30 September 2024

21,076,292



23.


Pension commitments

A defined contribution pension scheme is operated for all qualifying employees. The assets of the scheme are held separately from those of the company in an independent administered fund.
The pension cost charge £195,444 (2023 - £289,216) represents contributions payable by the company to the fund. £5,512 (2023 - £5,512) contributions were outstanding at the balance sheet date.


24.


Controlling party

The controlling party is K.J. Services Holdings Limited.
The ultimate controlling party is W S Thomas.

K.J. Services Limited is an intermediate parent company and is included in the consolidated financial statements of K.J. Services Holdings Limited. K.J. Services Holdings Limited is the parent undertaking of the smallest and largest group of undertakings to consolidate these financial statements as at 30 September 2024. Copies of K.J. Services Holdings Limited consolidated financial statements are available from the Registrar of Companies House, Crown Way, Maindy, CF14 3UZ. 

 
Page 29