Company registration number 04010126 (England and Wales)
K M C I LIMITED
FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 29 DECEMBER 2024
PAGES FOR FILING WITH REGISTRAR
K M C I LIMITED
CONTENTS
Page
Directors' responsibilities statement
1
Balance sheet
2
Notes to the financial statements
3 - 9
K M C I LIMITED
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE PERIOD ENDED 29 DECEMBER 2024
- 1 -
The directors are responsible for preparing the annual 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 United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law, the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and 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 and then apply them consistently;
make judgements and accounting estimates that are reasonable and prudent; and
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 enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
K M C I LIMITED
BALANCE SHEET
AS AT
29 DECEMBER 2024
29 December 2024
- 2 -
29 December 2024
31 Deecmber 2023
Notes
£
£
£
£
Current assets
Stocks
6
20,610
80,703
Debtors
7
60,129
98,103
Cash at bank and in hand
118,508
8,599
199,247
187,405
Creditors: amounts falling due within one year
8
(41,496)
(50,893)
Net current assets
157,751
136,512
Capital and reserves
Called up share capital
49,001
49,001
Profit and loss reserves
108,750
87,511
Total equity
157,751
136,512
These financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime.
The directors of the company have elected not to include a copy of the profit and loss account within the financial statements.
The directors of the company have elected not to include a copy of the profit and loss account within the financial statements.true
The financial statements were approved by the board of directors and authorised for issue on 18 July 2025 and are signed on its behalf by:
JMA Fendek
Director
Company registration number 04010126 (England and Wales)
K M C I LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 29 DECEMBER 2024
- 3 -
1
Accounting policies
Company information
K M C I Limited is a private company limited by shares incorporated in England and Wales. The registered office is Fountain Street, Fenton, Stoke on Trent, Staffordshire, ST4 2HB.
1.1
Reporting period
The financial statements have been prepared for the period of 364 days, from 1 January 2024 to 29 December 2024. The comparative figures relate to the preceding accounting period of 364 days, from 2 January 2022 to 31 December 2023.
1.2
Accounting convention
These financial statements have been prepared 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 financial statements have been prepared under the historical cost convention.
The principal accounting policies adopted are set out below.
1.3
Going concern
Forecasts are prepared up to 31 July 2026 taking account of possible changes in trading performance. The directors, having assessed the forecasts and information available have determined it appropriate to adopt the going concern basis of accounting in preparing the annual financial statements. If in the event of any potential decrease in trade, the Company, can utilise group funds to manage cashflows. As a result, the directors have obtained support letters from the parent company to confirm this support will be provided.true
It is noted that the Group facilities are monitored by the parent of the group, James Kent (Consolidated) Limited, who act as a treasury function to the Company. The group meets its day-to-day working capital requirements through an invoice discounting facility together with its existing cash reserves and banking facilities including an available overdraft which is renewed annually in July. Management do not foresee any reason the overdraft would not be renewed going forward. The company is able to utilise these Group facilities for support as required.
1.4
Turnover
Turnover is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business, and is shown net of VAT and other sales related taxes. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.
Sale of colour and pigments
Turnover is recognised when it and the associated costs can be measured reliably, future economic benefits are probable, and the risks and rewards of ownership have been transferred to the customer. Sales of colour and pigments are recognised when goods are delivered and legal title has passed and the company has no continuing managerial involvement associated with ownership or effective controls of the goods sold. This is generally when goods have been checked and accepted by the customer.
The nature, timing of satisfaction of performance obligations and significant payment terms of the company's major sources of revenue are as follows:
K M C I LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 29 DECEMBER 2024
1
Accounting policies
(Continued)
- 4 -
Sale of colour and pigments
Turnover is recognised when it and the associated costs can be measured reliably, future economic benefits are probable, and the risks and rewards of ownership have been transferred to the customer. Sales of colour and pigments are recognised when goods are delivered and legal title has passed and the Company has no continuing managerial involvement associated with ownership or effective control of the goods sold. This is generally when goods have been checked and accepted by the customer.
1.5
Intangible fixed assets - goodwill
Goodwill is capitalised and written off evenly over 5-10 years as in the opinion of the directors, this represents the period over which the goodwill is expected to give rise to economic benefits. Amortisation is included within Administration expenses.
1.6
Tangible fixed assets
Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.
Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:
Plant and equipment
10%
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 profit or loss.
1.7
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.
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 profit or loss. Reversals of impairment losses are also recognised in profit or loss.
1.8
Cash and cash equivalents
Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.
1.9
Financial instruments
The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the company's balance sheet when the company 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.
K M C I LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 29 DECEMBER 2024
1
Accounting policies
(Continued)
- 5 -
Basic financial assets
Basic financial assets, which include 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.
Classification of financial liabilities
Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.
Basic financial liabilities
Basic financial liabilities, including creditors, bank loans and loans from fellow group companies and preference shares that are classified as debt, 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.
Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.
1.10
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.
1.11
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 profit and loss account 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.
K M C I LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 29 DECEMBER 2024
1
Accounting policies
(Continued)
- 6 -
Deferred tax
Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.
The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset when the company has a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.
1.12
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.
1.13
Leases
As lessee
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.
1.14
The cumulative profit and loss net of distributions to owners.
1.15
Dividends are recognised as liabilities once they are no longer at the discretion of the company.
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.
K M C I LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 29 DECEMBER 2024
- 7 -
3
Employees
2024
2023
Number
Number
Total
6
6
The number of directors employed by the Company in the year is 6 (31 January 2023:6). Directors were remunerated by other group companies. The employees utilised by the company during the period were employed under contract by James Kent (Ceramic Materials) Limited and the cost of these employees were recharged to the Company during the period.
4
Intangible fixed assets
Goodwill
£
Cost
At 1 January 2024 and 29 December 2024
95,000
Amortisation and impairment
At 1 January 2024 and 29 December 2024
95,000
Carrying amount
At 29 December 2024
At 31 December 2023
5
Tangible fixed assets
Plant and machinery etc
£
Cost
At 1 January 2024 and 29 December 2024
71,187
Depreciation and impairment
At 1 January 2024 and 29 December 2024
71,187
Carrying amount
At 29 December 2024
At 31 December 2023
K M C I LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 29 DECEMBER 2024
- 8 -
6
Stocks
2024
2023
£
£
Stocks
20,610
80,703
7
Debtors
2024
2023
Amounts falling due within one year:
£
£
Trade debtors
32,955
50,215
Corporation tax recoverable
30
Amounts owed by group undertakings
25,863
46,261
58,818
96,506
2024
2023
Amounts falling due after more than one year:
£
£
Deferred tax asset (note )
1,311
1,597
Total debtors
60,129
98,103
8
Creditors: amounts falling due within one year
2024
2023
£
£
Amounts due to invoice discounter
8,985
Trade creditors
7,809
Amounts owed to group undertakings
19,766
28,867
Corporation tax
13,458
Other taxation and social security
8,272
5,227
Other creditors
5
41,496
50,893
9
Audit report information
As the income statement has been omitted from the filing copy of the financial statements, the following information in relation to the audit report on the statutory financial statements is provided in accordance with s444(5B) of the Companies Act 2006.
The auditor's report is unqualified and includes the following:
K M C I LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 29 DECEMBER 2024
9
Audit report information
(Continued)
- 9 -
Opinion
In our opinion the financial statements:
give a true and fair view of the state of the company's affairs as at 29 December 2024 and of its profit for the Period 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.
Senior Statutory Auditor:
Karen Staley FCA BSc (Hons)
Statutory Auditor:
Geens Limited
Date of audit report:
18 July 2025
10
Financial commitments, guarantees and contingent liabilities
All Group Companies are members of a VAT group. At 29 December 2024 the VAT exposure of the VAT group excluding that of the Company was £nil (31 December 2023: £76,536).
The National Westminster Bank Plc holds an unscheduled mortgage debenture incorporating a fixed and floating charge over all current and future assets of the Company.
The Company has signed a cross guarantee to secure the bank indebtedness with National Westminster Bank Plc of James Kent (Ceramic Materials) Limited, Cera Dynamics Limited, James Kent Consolidated Limited, James Kent Group Limited, P.E. Hines Limited and Martin Colour Company Limited.
HSBC Bank plc hold a debenture dated 18 August 2010 over the assets of the Company and also has a charge over contract monies.
HSBC Invoice Finance (UK) Limited hold a fixed and floating charge on all the assets of the Company dated 10 November 2010.
The Company has a signed unlimited multilateral guarantee dated 22 June 2011 and a legal assignment over contract monies dated 14 November 2023. These are given by James Kent (Ceramic Materials) Limited, Martin Colour Company Limited, Cera Dynamics Limited, James Kent Consolidated Limited, James Kent Group Limited, P.E. Hines Limited and KMCI Limited with HSBC Bank plc.
At the period end the exposure of the group is £640,750 (31 December 2023: £701,547) to the above charges and guarantees.
11
Parent company
The Company is a wholly owned subsidiary of James Kent Consolidated Limited, a Company incorporated in the United Kingdom. Its registered address is Fountain Street, Fenton, Stoke-on Trent, Staffordshire, ST4 2HB.
James Kent Consolidated Limited is the ultimate parent undertaking and is the largest and smallest group for which consolidated accounts, including K M C I, are prepared.
The consolidated financial statements of James Kent Consolidated Limited are available to the public from Companies House, Maindy, Cardiff, CF12 3UZ.