Company registration number 02702974 (England and Wales)
THE KENDON ROPE & TWINE CO LIMITED
UNAUDITED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2025
PAGES FOR FILING WITH REGISTRAR
THE KENDON ROPE & TWINE CO LIMITED
CONTENTS
Page
Balance sheet
1
Notes to the financial statements
2 - 7
THE KENDON ROPE & TWINE CO LIMITED
BALANCE SHEET
AS AT
31 MARCH 2025
31 March 2025
- 1 -
2025
2024
Notes
£
£
£
£
Fixed assets
Tangible assets
5
10,661
3,886
10,661
3,886
Current assets
Stocks
792,896
731,708
Debtors
6
7,220,642
5,969,227
Cash at bank and in hand
119,103
1,481,983
8,132,641
8,182,918
Creditors: amounts falling due within one year
7
(383,865)
(405,814)
Net current assets
7,748,776
7,777,104
Net assets
7,759,437
7,780,990
Capital and reserves
Called up share capital
8
200
200
Profit and loss reserves
7,759,237
7,780,790
Total equity
7,759,437
7,780,990
The directors of the company have elected not to include a copy of the profit and loss account within the financial statements.true
For the financial year ended 31 March 2025 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.
The directors acknowledge their responsibilities for complying with the requirements of the Companies Act 2006 with respect to accounting records and the preparation of financial statements.
The members have not required the company to obtain an audit of its financial statements for the year in question in accordance with section 476.
These financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime.
The financial statements were approved by the board of directors and authorised for issue on 16 July 2025 and are signed on its behalf by:
Mr Alistair Kendon
Director
Company Registration No. 02702974
THE KENDON ROPE & TWINE CO LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2025
- 2 -
1
Accounting policies
Company information
The Kendon Rope & Twine Co Limited is a private company limited by shares incorporated in England and Wales. The registered office is 7 Innova Way, Innova Park, Enfield, London, EN3 7FL.
1.1
Accounting convention
These financial statements have been prepared under historical cost convention and in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006 as applicable to companies subject to the small companies regime. The disclosure requirements of section 1A of FRS 102 have been applied other than where additional disclosure is required to show a true and fair view.
The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.
The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimate. It also requires management to exercise judgment in applying the company's accounting policies. The principal accounting policies adopted are set out below.
1.2
Turnover
Revenue is recognised by the company in respect of goods and services supplied during the year, exclusive of Value Added Tax and trade discounts.
Revenue is recognised when goods are despatched to customers.
1.3
Intangible fixed assets - goodwill
Goodwill represents the excess of the cost of acquisition of unincorporated businesses over the fair value of net assets acquired. It is initially recognised as an asset at cost and is subsequently measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is considered to have a finite useful life and is amortised on a straight line basis over its expected life.
1.4
Tangible fixed assets
Tangible fixed assets are initially measured at cost and subsequently measured at historical cost or valuation, net of depreciation and any 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.
Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives, using the straight-line method:
Plant and equipment
5 years
Fixtures and fittings
5 years
Motor vehicles
4 years
The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is credited or charged to the statement of income and retained earnings.
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.
THE KENDON ROPE & TWINE CO LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2025
1
Accounting policies
(Continued)
- 3 -
1.5
Stocks
Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition, it is based on an average cost basis. Work in progress and finished goods include labour and attributable overheads.
At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks over its estimated selling price less costs to complete and sell is recognised as an impairment loss in the statement of income and retained earnings. Reversals of impairment losses are also recognised in the statement of income and retained earnings.
1.6
Cash and cash equivalents
Cash and cash equivalents are basic financial assets repayable without penalty on notice of not more than 24 hours and include cash in hand, deposits held at call with banks and other short-term liquid investments with original maturities of three months or less, which are readily convertible to known amounts of cash with insignificant risk of change in value.
1.7
Financial instruments
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.
Short term creditors are measured at the transaction price.
1.8
Taxation
The tax expense represents the sum of the tax currently payable and deferred tax.
Current tax
The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the statement of income and retained earnings because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.
1.9
Retirement benefits
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 the statement of income and retained earnings 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 an independent administered funds.
THE KENDON ROPE & TWINE CO LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2025
1
Accounting policies
(Continued)
- 4 -
1.10
Leases
Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leases asset are consumed.
Rental income from operating leases is recognised on a straight line basis over the term of the relevant lease. Initial direct costs incurred in negotiating and arranging an operating lease are added to the carrying amount of the leased asset and recognised on a straight line basis over the lease term.
1.11
Foreign exchange
The company's functional and presentational currency is GBP.
Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation in the period are included in the statement of income and retained earnings.
1.12
Interest income is recognised in the statement of income and retained earnings in the period in which it is earned.
1.13
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.
2
Judgements 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 periods where the revision affects both current and future periods.
Critical judgements
The following judgements (apart from those involving estimates) have had the most significant effect on amounts recognised in the financial statements.
The recoverability of trade debtors has been assessed as at the year end and up until the date of signing these financial statements. Management have based the decision to provide for any amounts based on their judgement of all the available information, and their experience of the specific nature of trade debtors in question.
THE KENDON ROPE & TWINE CO LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2025
- 5 -
3
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2025
2024
Number
Number
Total
16
16
4
Intangible fixed assets
Goodwill
£
Cost
At 1 April 2024 and 31 March 2025
213,000
Amortisation and impairment
At 1 April 2024 and 31 March 2025
213,000
Carrying amount
At 31 March 2025
At 31 March 2024
5
Tangible fixed assets
Plant and machinery etc
£
Cost
At 1 April 2024
257,992
Additions
9,295
Disposals
(4,500)
At 31 March 2025
262,787
Depreciation and impairment
At 1 April 2024
254,106
Depreciation charged in the year
2,520
Eliminated in respect of disposals
(4,500)
At 31 March 2025
252,126
Carrying amount
At 31 March 2025
10,661
At 31 March 2024
3,886
THE KENDON ROPE & TWINE CO LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2025
- 6 -
6
Debtors
2025
2024
Amounts falling due within one year:
£
£
Trade debtors
524,043
646,397
Other debtors
6,696,599
5,322,830
7,220,642
5,969,227
7
Creditors: amounts falling due within one year
2025
2024
£
£
Trade creditors
53,867
40,096
Corporation tax
99,791
159,626
Other taxation and social security
164,017
164,891
Other creditors
66,190
41,201
383,865
405,814
8
Called up share capital
2025
2024
2025
2024
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary A shares of £1 each
90
90
90
90
Ordinary B shares of £1 each
20
20
20
20
Ordinary C shares of £1 each
90
90
90
90
200
200
200
200
THE KENDON ROPE & TWINE CO LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2025
- 7 -
9
Related party transactions
During the year, the company entered into the following transactions with Kendon Packaging Group Plc (KPG) and its subsidiaries, of which A Kendon and F Kendon are directors.
The company paid rent totalling £145,440 (2024: £145,440) and received rent totalling £26,400 (2024: £26,400) from KPG.
The company paid management charges totalling £119,900 (2024: £119,900) to KPG.
The company charged interest on the loan balance owed by KPG of £317,655 (2024: £255,321).
The company made sales to KPG totalling £132,112 (2024: £146,666) and purchases from KPG totalling £249,110 (2024: £133,673).
At the year end, KPG owed the company £6,531,580 (2024: £5,176,895).
At the year end, the company owed £12,092 (2024: £12,092) to AJ Kendon, a director during the year.
10
Parent company
The ultimate controlling parties are considered to be AJ Kendon and L Kendon.