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REGISTERED NUMBER: 01456314 (England and Wales)













Group Strategic Report,

Report of the Directors and

Consolidated Financial Statements

for the Year Ended 31 December 2024

for

Kelston Sparkes Holdings Limited

Kelston Sparkes Holdings Limited (Registered number: 01456314)






Contents of the Consolidated Financial Statements
for the Year Ended 31 December 2024




Page

Company Information 1

Group Strategic Report 2

Report of the Directors 3

Statement of Directors' Responsibilities 4

Report of the Independent Auditors 5

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 Cash Flow Statement 14

Notes to the Consolidated Cash Flow Statement 15

Notes to the Consolidated Financial Statements 16


Kelston Sparkes Holdings Limited

Company Information
for the Year Ended 31 December 2024







DIRECTORS: A K Sparkes
R Stark
K D Stark
D Swann



SECRETARY: R Stark



REGISTERED OFFICE: Bromley
Stanton Drew
Bristol
Somerset
BS39 4DE



REGISTERED NUMBER: 01456314 (England and Wales)



SENIOR STATUTORY AUDITOR: Michael Cook BSc FCA



AUDITORS: A C Mole LLP
Chartered Accountants
& Statutory Auditor
Stafford House
Blackbrook Park Avenue
Taunton
Somerset
TA1 2PX

Kelston Sparkes Holdings Limited (Registered number: 01456314)

Group Strategic Report
for the Year Ended 31 December 2024

The directors present their strategic report of the company and the group for the year ended 31 December 2024.

REVIEW OF BUSINESS
The results for the year and financial position of the company are shown in the annexed financial statements.

The group undertakes comprehensive business planning to define long term strategic objectives and goals. Annual budgets and operational plans are prepared utilising financial Key Performance Indicators ("KPI's"). Business performance, measured by KPI's (including monitoring of actual results against budget targets) and bank balances, is reported to the directors on a monthly basis.

The turnover for the group for the year was £64,785,611 (2023 - £33,686,122) and the gross profit margin achieved was 22.5% (2023 - 19.4%).

The group has continued its growth over the past few years and has seen an increase in turnover and gross profit margin from all companies within the group. Some very large contracts this year with extremely high levels of material and subcontractors provision has driven the increase in turnover. Crucially, this growth has been achieved without sacrificing our gross profit margin. 2025 will see the turnover of the group fall back but margins are predicted to be maintained.

The Directors anticipate that the group will continue to trade profitably for the forthcoming year.

PRINCIPAL RISKS AND UNCERTAINTIES
As with any business, Kelston Sparkes Holdings Limited faces a number of risks and uncertainties in the course of its day to day operations. By effectively identifying and managing these risks their effects can be mitigated.

The principal risk to the company and the group is a deterioration in demand from the UK Construction Industry. Any deterioration in economic conditions may significantly decrease demand which could have a material effect on revenues, margins, profits and debt levels.

The Directors also constantly monitor the state of receivables, as this remains a key factor in protecting the company and group's cash flow in the short and medium term.

FUTURE DEVELOPMENTS
The directors will continue to monitor costs closely in order to maintain profitability, whilst not compromising on quality and service. The directors will also continue to diversify into new products and markets when appropriate.

ON BEHALF OF THE BOARD:





R Stark - Director


30 July 2025

Kelston Sparkes Holdings Limited (Registered number: 01456314)

Report of the Directors
for the Year Ended 31 December 2024

The directors present their report with the financial statements of the company and the group for the year ended 31 December 2024.

DIVIDENDS
The total distribution of dividends for the year ended 31 December 2024 will be £ 585,000 .

DIRECTORS
The directors shown below have held office during the whole of the period from 1 January 2024 to the date of this report.

A K Sparkes
R Stark
K D Stark
D Swann

FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES
The directors are responsible for monitoring financial risk. Appropriate policies have been developed and implemented to identify, evaluate and manage the key risks.

a) Price risk - The company is exposed to price risk as a result of its operations. Due to the economic climate the company has to quote competitive prices to win work. The directors are aware of the risks in selling and providing services at low margins and as the trading environment improves the directors will consider improving margins.

b) Credit risk - The company has implemented policies that require appropriate credit checks on customers before contracts are entered into. The credit given to customers is subject to limits which are determined and reassessed by the directors.

c) Liquidity risk - The company is reliant upon the continued support of its bankers. Budgets and cash flow projections are prepared and regularly monitored to ensure that the company operates within these facilities.

d) Interest rate cash flow risk - The company has a bank overdraft facility which is repayable on demand. The interest charged on the overdraft is at a competitive rate of interest.

e) Economic risk - The company's performance is directly impacted by the economic environment. In order to manage this risk the company strives to deliver competitively priced services. The company is actively concentrating on improving efficiency and reducing costs.

GOING CONCERN
The group meets its day-to-day working capital requirements through its bank facilities and borrowings. The group forecasts and projections, taking account of reasonably possible changes in trading conditions, show the group should be able to operate within the level of its current bank facilities and borrowings.

The Directors therefore continue to adopt the going concern basis in preparing the financial statements.

STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS
So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the group's auditors are unaware, and each director has taken all the steps that he ought to have taken as a director in order to make himself aware of any relevant audit information and to establish that the group's auditors are aware of that information.

AUDITORS
The auditors, A C Mole LLP, will be proposed for re-appointment at the forthcoming Annual General Meeting.

ON BEHALF OF THE BOARD:





R Stark - Director


30 July 2025

Kelston Sparkes Holdings Limited (Registered number: 01456314)

Statement of Directors' Responsibilities
for the Year Ended 31 December 2024

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 United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards) and applicable law, including Financial Reporting Standard 102 Reduced Disclosure Framework (FRS 102).

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;
- state whether applicable United Kingdom Accounting Standards, including FRS 102, have been followed,
subject to any material departures disclosed and explained in the financial statements;
- notify the company's shareholders in writing about the use of disclosure exemptions, if any, of FRS 102 used in
the preparation of financial statements; 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.

Report of the Independent Auditors to the Members of
Kelston Sparkes Holdings Limited

Opinion
We have audited the financial statements of Kelston Sparkes Holdings Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 December 2024 which comprise the Consolidated Statement of Comprehensive Income, Consolidated Balance Sheet, Company Balance Sheet, Consolidated Statement of Changes in Equity, Company Statement of Changes in Equity, Consolidated Cash Flow Statement and Notes to the Consolidated Cash Flow Statement, Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).

In our opinion the revised financial statements:
- give a true and fair view, seen as at the date the original financial statements were approved, of the state of the group's and of the parent company affairs as at 31 December 2020 and of the group's profit for the year then ended;
- have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice seen as at the date the original financial statements were approved; and
- have been prepared in accordance with the requirements of the Companies Act 2006 as they have effect under the Companies (Revision of Defective Accounts and Reports) Regulations 2008.

Basis for opinion
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the group in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern
In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the group's and the parent company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

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

Other information
The directors are responsible for the other information. The other information comprises the information in the Group Strategic Report, the Report of the Directors and the Statement of Directors' Responsibilities, but does not include the financial statements and our Report of the Auditors thereon.

Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of the audit:
- the information given in the Group Strategic Report and the Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and
- the Group Strategic Report and the Report of the Directors have been prepared in accordance with applicable legal requirements.

Report of the Independent Auditors to the Members of
Kelston Sparkes Holdings Limited


Matters on which we are required to report by exception
In the light of the knowledge and understanding of the group and the parent company and its environment obtained in the course of the audit, we have not identified material misstatements in the Group Strategic Report or the Report of the Directors.

We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion:
- adequate accounting records have not been kept by the parent company, or returns adequate for our audit have not been received from branches not visited by us; or
- the parent company financial statements are not in agreement with the accounting records and returns; or
- certain disclosures of directors' remuneration specified by law are not made; or
- we have not received all the information and explanations we require for our audit.

Responsibilities of directors
As explained more fully in the Statement of Directors' Responsibilities set out on page four, 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 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.

Report of the Independent Auditors to the Members of
Kelston Sparkes Holdings Limited


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 a Report of the Auditors 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.

The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

Identifying and assessing potential risks of material misstatement due to irregularities.

We considered the following when identifying and assessing risks of material misstatement due to irregularities, including fraud and non-compliance with laws and regulations;

- the legal and regulatory framework within which the business operates
- the nature of the industry in which the business operates
- the control environment and internal controls established to mitigate such risks
- the results of our enquiries of management about their own identification and assessment of risks of irregularities
- discussions within the audit engagement team and with the group auditors about where fraud might occur.

Laws and regulations which are considered to be significant to the entity include those relating to the construction industry, the requirements of the financial reporting framework FRS 102, the Companies Act 2006 and UK tax legislation. In addition we considered other laws and regulations which may not directly impact the financial statements but may impact on the operations of the company, such as the changes arising following Brexit.

As a result of these procedures we concluded that the greatest potential for material misstatements due to fraud arose in respect of sales being overstated. In common with all audits under International Auditing Standards we also concluded that a risk in relation to the potential for management override of controls existed.

Audit responses to the risks identified

We undertook audit procedures to respond to the risks identified, and designed our audit testing to respond to these risks. The additional procedures we undertook included the following:

- Gaining an understanding of the company's procedures for ensuring compliance with laws and regulations.
- Substantive and additional testing of provisions on work in progress
- Controls testing over sales together with additional substantive procedures to agree to third party certificates.
- Testing the appropriateness of journal entries and other adjustments
- Considering whether accounting estimates were indicative of potential bias
- Considering any transactions which arose outside the normal course of business
- Making enquiries of management
- Corroborating our enquiries through the review of Board Minutes and review of correspondence.

We also communicated relevant identified laws and regulations and potential fraud risks to all engagement team members. We remained alert to any indications of fraud or non-compliance with laws and regulations throughout the audit.

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 Report of the Auditors.

Report of the Independent Auditors to the Members of
Kelston Sparkes Holdings Limited


Use of our report
This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in a Report of the Auditors and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's members as a body, for our audit work, for this report, or for the opinions we have formed.




Michael Cook BSc FCA (Senior Statutory Auditor)
for and on behalf of A C Mole LLP
Chartered Accountants
& Statutory Auditor
Stafford House
Blackbrook Park Avenue
Taunton
Somerset
TA1 2PX

31 July 2025

Kelston Sparkes Holdings Limited (Registered number: 01456314)

Consolidated Statement of Comprehensive Income
for the Year Ended 31 December 2024

2024 2023
Notes £    £   

TURNOVER 4 64,785,611 33,686,122

Cost of sales 50,330,760 27,135,767
GROSS PROFIT 14,454,851 6,550,355

Administrative expenses 4,741,663 3,211,071
OPERATING PROFIT 6 9,713,188 3,339,284

Interest receivable and similar income 33,497 444
9,746,685 3,339,728

Interest payable and similar expenses 7 917,373 682,314
PROFIT BEFORE TAXATION 8,829,312 2,657,414

Tax on profit 8 1,986,341 722,292
PROFIT FOR THE FINANCIAL YEAR 6,842,971 1,935,122

OTHER COMPREHENSIVE INCOME - -
TOTAL COMPREHENSIVE INCOME FOR
THE YEAR

6,842,971

1,935,122

Profit attributable to:
Owners of the parent 6,843,016 1,935,141
Non-controlling interests (45 ) (19 )
6,842,971 1,935,122

Total comprehensive income attributable to:
Owners of the parent 6,843,016 1,935,141
Non-controlling interests (45 ) (19 )
6,842,971 1,935,122

Kelston Sparkes Holdings Limited (Registered number: 01456314)

Consolidated Balance Sheet
31 December 2024

2024 2023
Notes £    £    £   
FIXED ASSETS
Intangible assets 11 560,147 588,046
Tangible assets 12 31,648,002 27,198,296
Investments 13 - -
Investment property 14 1,845,000 1,845,000
34,053,149 29,631,342

CURRENT ASSETS
Stocks 15 237,977 298,336
Debtors: amounts falling due within one year 16 14,097,216 8,961,088
Cash at bank and in hand 6,658,695 2,228,819
20,993,888 11,488,243
CREDITORS
Amounts falling due within one year 17 16,473,221 13,146,040
NET CURRENT ASSETS/(LIABILITIES) 4,520,667 (1,657,797 )
TOTAL ASSETS LESS CURRENT
LIABILITIES

38,573,816

27,973,545

CREDITORS
Amounts falling due after more than one
year

18

(12,539,409

)

(10,183,450

)

PROVISIONS FOR LIABILITIES 23 (5,620,910 ) (3,634,569 )
NET ASSETS 20,413,497 14,155,526

CAPITAL AND RESERVES
Called up share capital 24 3,952,100 3,952,100
Revaluation reserve 25 865,096 865,096
Retained earnings 25 15,595,912 9,337,896
SHAREHOLDERS' FUNDS 20,413,108 14,155,092

NON-CONTROLLING INTERESTS 26 389 434
TOTAL EQUITY 20,413,497 14,155,526

The financial statements were approved by the Board of Directors and authorised for issue on 30 July 2025 and were signed on its behalf by:




R Stark - Director



K D Stark - Director


Kelston Sparkes Holdings Limited (Registered number: 01456314)

Company Balance Sheet
31 December 2024

2024 2023
Notes £    £    £   
FIXED ASSETS
Intangible assets 11 - -
Tangible assets 12 4,575,554 3,630,000
Investments 13 4,228,201 4,228,201
Investment property 14 1,845,000 1,845,000
10,648,755 9,703,201

CURRENT ASSETS
Debtors: amounts falling due within one year 16 255 10,250
Debtors: amounts falling due after more than
one year

16

865,110

643,751
Cash at bank 7,262 36,782
872,627 690,783
CREDITORS
Amounts falling due within one year 17 80,059 76,850
NET CURRENT ASSETS 792,568 613,933
TOTAL ASSETS LESS CURRENT
LIABILITIES

11,441,323

10,317,134

CREDITORS
Amounts falling due after more than one
year

18

(6,267,957

)

(5,170,577

)

PROVISIONS FOR LIABILITIES 23 (288,366 ) (288,366 )
NET ASSETS 4,885,000 4,858,191

CAPITAL AND RESERVES
Called up share capital 24 3,952,100 3,952,100
Revaluation reserve 25 865,096 865,096
Retained earnings 25 67,804 40,995
SHAREHOLDERS' FUNDS 4,885,000 4,858,191

Company's profit for the financial year 26,809 25,394

The financial statements were approved by the Board of Directors and authorised for issue on 30 July 2025 and were signed on its behalf by:




R Stark - Director



K D Stark - Director


Kelston Sparkes Holdings Limited (Registered number: 01456314)

Consolidated Statement of Changes in Equity
for the Year Ended 31 December 2024

Called up
share Retained Revaluation
capital earnings reserve
£    £    £   
Balance at 1 January 2023 3,952,100 7,746,255 865,096

Changes in equity
Dividends - (343,500 ) -
Total comprehensive income - 1,935,141 -
Balance at 31 December 2023 3,952,100 9,337,896 865,096

Changes in equity
Dividends - (585,000 ) -
Total comprehensive income - 6,843,016 -
Balance at 31 December 2024 3,952,100 15,595,912 865,096
Non-controlling Total
Total interests equity
£    £    £   
Balance at 1 January 2023 12,563,451 453 12,563,904

Changes in equity
Dividends (343,500 ) - (343,500 )
Total comprehensive income 1,935,141 (19 ) 1,935,122
Balance at 31 December 2023 14,155,092 434 14,155,526

Changes in equity
Dividends (585,000 ) - (585,000 )
Total comprehensive income 6,843,016 (45 ) 6,842,971
Balance at 31 December 2024 20,413,108 389 20,413,497

Kelston Sparkes Holdings Limited (Registered number: 01456314)

Company Statement of Changes in Equity
for the Year Ended 31 December 2024

Called up
share Retained Revaluation Total
capital earnings reserve equity
£    £    £    £   
Balance at 1 January 2023 3,952,100 15,601 865,096 4,832,797

Changes in equity
Total comprehensive income - 25,394 - 25,394
Balance at 31 December 2023 3,952,100 40,995 865,096 4,858,191

Changes in equity
Total comprehensive income - 26,809 - 26,809
Balance at 31 December 2024 3,952,100 67,804 865,096 4,885,000

Kelston Sparkes Holdings Limited (Registered number: 01456314)

Consolidated Cash Flow Statement
for the Year Ended 31 December 2024

2024 2023
Notes £    £   
Cash flows from operating activities
Cash generated from operations 1 12,202,613 8,003,574
Net cash from operating activities 12,202,613 8,003,574

Cash flows from investing activities
Purchase of tangible fixed assets (2,461,607 ) (521,295 )
Sale of tangible fixed assets 2,500,913 2,039,608
Interest received 33,497 444
Net cash from investing activities 72,803 1,518,757

Cash flows from financing activities
Loan repayments in year (124,448 ) (118,040 )
Hire purchase repayments in year (6,135,956 ) (6,447,458 )
Amount introduced by directors - (507,366 )
Amount withdrawn by directors (82,763 ) -
Movement in debt factoring account - (394,250 )
Interest paid (132,379 ) (147,686 )
Interest on hire purchase payments (784,994 ) (534,628 )
Equity dividends paid (585,000 ) (343,500 )
Net cash from financing activities (7,845,540 ) (8,492,928 )

Increase in cash and cash equivalents 4,429,876 1,029,403
Cash and cash equivalents at beginning
of year

2

2,228,819

1,199,416

Cash and cash equivalents at end of year 2 6,658,695 2,228,819

Kelston Sparkes Holdings Limited (Registered number: 01456314)

Notes to the Consolidated Cash Flow Statement
for the Year Ended 31 December 2024

1. RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS

2024 2023
£    £   
Profit before taxation 8,829,312 2,657,414
Depreciation charges 4,392,453 4,116,991
Profit on disposal of fixed assets (162,939 ) (264,892 )
Amounts recoverable on contracts (2,668,101 ) (214,401 )
Impairment 350,000 -
Finance costs 917,373 682,314
Finance income (33,497 ) (444 )
11,624,601 6,976,982
Decrease/(increase) in stocks 60,359 (16,290 )
Increase in trade and other debtors (2,468,027 ) (1,280,437 )
Increase in trade and other creditors 2,985,680 2,323,319
Cash generated from operations 12,202,613 8,003,574

2. CASH AND CASH EQUIVALENTS

The amounts disclosed on the Cash Flow Statement in respect of cash and cash equivalents are in respect of these Balance Sheet amounts:

Year ended 31 December 2024
31.12.24 1.1.24
£    £   
Cash and cash equivalents 6,658,695 2,228,819
Year ended 31 December 2023
31.12.23 1.1.23
£    £   
Cash and cash equivalents 2,228,819 1,199,416


3. ANALYSIS OF CHANGES IN NET DEBT

Other
non-cash
At 1.1.24 Cash flow changes At 31.12.24
£    £    £    £   
Net cash
Cash at bank
and in hand 2,228,819 4,429,876 6,658,695
2,228,819 4,429,876 6,658,695
Debt
Finance leases (14,013,840 ) 6,135,956 (9,040,627 ) (16,918,511 )
Debts falling due
within 1 year (124,674 ) 124,448 (136,376 ) (136,602 )
Debts falling due
after 1 year (1,450,672 ) - 136,376 (1,314,296 )
(15,589,186 ) 6,260,404 (9,040,627 ) (18,369,409 )
Total (13,360,367 ) 10,690,280 (9,040,627 ) (11,710,714 )

Kelston Sparkes Holdings Limited (Registered number: 01456314)

Notes to the Consolidated Financial Statements
for the Year Ended 31 December 2024

1. STATUTORY INFORMATION

Kelston Sparkes Holdings Limited is a private company, limited by shares , registered in England and Wales. The company's registered number and registered office address can be found on the General Information page.

The presentation currency of the financial statements is the Pound Sterling (£).


The company is engaged in renting and leasing of property and is a parent company.

2. STATEMENT OF COMPLIANCE

These financial statements have been prepared in accordance with UK accounting standards, including Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" ("FRS 102") and the Companies Act 2006.

3. ACCOUNTING POLICIES

Basis of preparation
These financial statements are prepared on a going concern basis, under the historical cost convention, as modified by certain financial assets and liabilities measured at fair value through profit or loss.

Going Concern
The group meets its day-to-day working capital requirements through its bank facilities and borrowings. The group forecasts and projections, taking account of possible changes in trading conditions, show the group should be able to operate within the level of its current bank facilities and borrowings.

The Directors therefore continue to adopt the going concern basis in preparing the financial statements.

Basis of consolidation
The consolidated financial statements incorporate the results of Kelston Sparkes Holdings Limited and all of its subsidiary undertakings for the year. All financial statements are made up to 31 December 2024.

Related party exemption
The Group and 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.

Transactions between group entities which have been eliminated on consolidation are not disclosed with the financial statements.

Turnover
Turnover is measured at the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes.

(i) Property rental
Revenue is recognised in the accounting period in which the rental relates.

(ii) Rental of machinery and equipment
Revenue is recognised when the rental of machinery and equipment has been provided to the customer.

(iii) Long-term contracts
Revenue is recognised in-line with monthly valuations for individual contracts. The overall profit margin on each contract is reviewed and where necessary, a cost accrual provided to bring the actual profit margin recognised in turnover to date in line with overall profit margin the for the contact.

(iv) Provision of training services
Revenue is recognised in the accounting period in which the training services have been provided.

(v) Sale of vehicles
Revenue is recognised when the significant risks and rewards of ownership have been transferred to the buyer which generally occurs when the vehicle has been delivered to the customer and title has passed.

Goodwill
Goodwill, being purchased goodwill acquired in 2014, is carried at cost less accumulated amortisation and impairment losses, if any. Amortisation is calculated on a straight-line basis over the useful economic life of 20 years.

Kelston Sparkes Holdings Limited (Registered number: 01456314)

Notes to the Consolidated Financial Statements - continued
for the Year Ended 31 December 2024

3. ACCOUNTING POLICIES - continued

Tangible fixed assets
Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life or, if held under a finance lease, over the lease term, whichever is the shorter.

Major Plant (Excluding Crushers)- 11% on straight line for first 5 years and then 12.5% on reducing balance
thereafter
Major Plant (Crushers) - 16.66% on straight line for first 5 years and then 12.5% on reducing
balance thereafter
Dumper Trucks - 11% on straight line for first 5 years and then 12.5% on reducing balance
thereafter
Sundry Plant (Excluding GPS)- 12.5% on reducing balance
Sundry Plant (GPS Equipment)- 33.3% on straight line
Motor Vehicles- 25% and 20% on reducing balance

Freehold property is included at valuation, all other fixed assets are included at cost.

The freehold property from which the group operates has been revalued and is not depreciated as it is considered that the residual value of the property is in excess of its cost and therefore, in accordance with FRS 102, there is no depreciable amount. Annual impairment reviews are undertaken in respect of this property to ensure its carrying value can be supported.

Investment property
Investment property is shown at most recent valuation. Any aggregate surplus or deficit arising from changes in fair value is recognised in profit or loss.

Stocks
Stocks are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items.

Stocks comprise consumables.

Taxation
The taxation expense for the period comprises current and deferred tax recognised in the reporting period. Tax is recognised in the income statement, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. In this case tax is also recognised in other comprehensive income or directly into equity respectively.

i) Current tax
Current tax is the amount of income tax payable in respect of the taxable profit for the year or prior years. Tax is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the balance sheet date.

ii) Deferred tax
Deferred tax arises from timing differences that are differences between taxable profits and total comprehensive income as stated in the financial statements. These timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in the financial statements.

Deferred tax is recognised on all timing differences at the balance sheet date, except for certain exceptions. Unrelieved tax losses and other deferred tax assets are only recognised when it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits.

Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the period end and that are expected to apply to the reversal of the timing difference.

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 using the sum of digits method. The capital element of the future payments is treated as a liability.

Kelston Sparkes Holdings Limited (Registered number: 01456314)

Notes to the Consolidated Financial Statements - continued
for the Year Ended 31 December 2024

3. ACCOUNTING POLICIES - continued

Pension costs and other post-retirement benefits
The Group and the company operate a defined contribution pension scheme for its employees. A defined contribution plan is a pension plan under which the company pays fixed contributions to a separate entity. Once the contributions have been paid the company has no further payment obligations. The contributions are recognised as an expense when they fall due. Amounts not paid are shown in accruals in the balance sheet. The assets of the plan are held separately from the company in independently administered funds.

Investments - company
Investments in subsidiary companies are held at cost less accumulated impairment losses.

Cash and cash equivalents
Cash and cash equivalents includes cash in hand, that are readily convertible to cash with insignificant risk of change in value and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

Financial instruments
i) Financial assets
Basic financial assets, including trade and other receivables and cash and bank balances are initially recognised at transaction price and subsequently measured at amortised cost.

At the balance sheet date financial assets are assessed for evidence of impairment. If an asset is impaired the impairment loss is recognised in the income statement.

ii) Financial liabilities
Basic financial liabilities, including trade and other payables and bank loans, are initially recognised at transaction price and subsequently measured at amortised cost.

Related party transactions
The Group discloses transactions with related parties which are not wholly owned within the Group. Where appropriate, transactions of a similar nature are aggregated unless, in the opinion of the directors, separate disclosure is necessary to understand the effect of the transactions on the Group financial statements.

Minority interest
Equity minority interests represent the share of profits or losses on ordinary activities attributable to the interests of equity shareholders in subsidiaries which are not wholly owned by the group.

Critical accounting policies and estimation uncertainty
Estimates and judgements are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.

The company makes estimates and assumptions concerning the future. The resulting accounting estimates will, by definition, seldom equal the related actual results. Having given due consideration to the estimates and assumptions that form part of the carrying amount of assets and liabilities within the financial statements, the directors are of the opinion that the only material judgements or estimates relate to the annual depreciation charge and deferred taxation.

(i) Useful economic lives of tangible assets

The annual depreciation charge for tangible assets is sensitive to changes in the estimates of useful economic lives and residual values of the assets. The useful economic lives and residual values are reviewed annually. They are amended when necessary to reflect current estimates, based on technological advancement, future investments, economic utilisation and the physical condition of the assets. See note 12 for the carrying amount of the property plant and equipment and note 3 for the useful economic lives for each class of assets.

(ii) Cost accrual in respect of long term contracts: £3,500,000 (2013: £1,750,000)

Management forecast total contract profit margins based on their experience of the industry, the specific contract, and contract performance to date. Where appropriate, contract performance after the balance sheet date is also taken into account. However, contracts may span a number of years, and actual profit margins could be materially different to those forecast.

(iii) Deferred Taxation

Management estimation is required to determine the amount of deferred tax assets that can be recognised, based upon likely timing and level of future taxable profits together with an assessment of the effect of future tax planning strategies. Further details are contained in note 8.

Kelston Sparkes Holdings Limited (Registered number: 01456314)

Notes to the Consolidated Financial Statements - continued
for the Year Ended 31 December 2024

4. TURNOVER

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

An analysis of turnover by class of business is given below:

2024 2023
£    £   
Renting of equipment 13,395,014 12,683,317
Earth moving contracts 50,932,391 20,517,164
Training 242,799 270,204
Rental income 215,407 215,437
64,785,611 33,686,122

5. EMPLOYEES AND DIRECTORS

2024 2023
£ £

Wages and salaries 8,261,587 7,298,771
Social security 876,443 762,532
Pension costs 405,757 298,373
9,543,787 8,359,676

The average monthly number of employees during the year was as follows:
2024 2023

Administration 43 34
Site personnel 150 135
193 169


Key management compensation
Key management includes the directors and members of senior management. The compensation paid to key management for employee services totalled £1,625,458 (2023 - £967,040).

2024 2023
£    £   
Directors' remuneration 280,441 278,713
Directors' pension contributions to money purchase schemes 241,447 155,362

The number of directors to whom retirement benefits were accruing was as follows:

Money purchase schemes 6 6

Information regarding the highest paid director is as follows:
2024 2023
£    £   
Emoluments etc 94,235 94,235
Pension contributions to money purchase schemes 61,321 56,487

Kelston Sparkes Holdings Limited (Registered number: 01456314)

Notes to the Consolidated Financial Statements - continued
for the Year Ended 31 December 2024

6. OPERATING PROFIT

The operating profit is stated after charging/(crediting):

2024 2023
£    £   
Depreciation - owned assets 1,072,194 964,925
Depreciation - assets on hire purchase contracts 3,292,360 3,124,167
Profit on disposal of fixed assets (162,939 ) (264,892 )
Goodwill amortisation 27,899 27,899
Auditors' remuneration of group 27,225 19,000
Auditors' remuneration taxation compliance services 7,790 6,000
Auditors' remuneration non-audit services 16,819 19,210
Hire of plant and machinery 758,638 622,665
Impairment of assets - owned and on hire purchase 350,000 -

7. INTEREST PAYABLE AND SIMILAR EXPENSES
2024 2023
£    £   
Bank loan interest 105,945 105,675
HMRC interest (2 ) 5
Directors loan interest 26,436 42,006
Hire purchase 784,994 534,628
917,373 682,314

8. TAXATION

Analysis of the tax charge
The tax charge on the profit for the year was as follows:
2024 2023
£    £   
Deferred tax 1,986,341 722,292
Tax on profit 1,986,341 722,292

Reconciliation of total tax charge included in profit and loss
The tax assessed for the year is lower than the standard rate of corporation tax in the UK. The difference is explained below:

2024 2023
£    £   
Profit before tax 8,829,312 2,657,414
Profit multiplied by the standard rate of corporation tax in the UK of 25 %
(2023 - 23.500 %)

2,207,328

624,492

Effects of:
Expenses not deductible for tax purposes 30,622 54,462
Utilisation of tax losses (58,391 ) -
- previous year
in previous year to 25%
Re-measurement of deferred tax - change in rate - 18,249
Loss carried forward expected to reverse - 25,089
Loss carried forward - Understated in previous period (193,218 ) -
credit

understated in previous year
allowance
Total tax charge 1,986,341 722,292

Kelston Sparkes Holdings Limited (Registered number: 01456314)

Notes to the Consolidated Financial Statements - continued
for the Year Ended 31 December 2024

9. INDIVIDUAL STATEMENT OF COMPREHENSIVE INCOME

As permitted by Section 408 of the Companies Act 2006, the Statement of Comprehensive Income of the parent company is not presented as part of these financial statements.


10. DIVIDENDS

2024 2023
£ £

'A' Ordinary Shares of £1 each - Interim 300,000 160,000
'B' Ordinary Shares of £1 each - Interim 50,000 63,500
'C' Ordinary Shares of £1 each - Interim 85,000 40,000
'D' Ordinary Shares of £1 each - Interim 150,000 80,000
585,000 343,500

The above dividends have been paid on the 'A', 'B', 'C' and 'D' Ordinary Shares issued in Kelston Sparkes (Group) Limited which are not owned by Kelston Sparkes Holdings Limited.

11. INTANGIBLE FIXED ASSETS

Group
Goodwill
£   
COST
At 1 January 2024
and 31 December 2024 857,730
AMORTISATION
At 1 January 2024 269,684
Amortisation for year 27,899
At 31 December 2024 297,583
NET BOOK VALUE
At 31 December 2024 560,147
At 31 December 2023 588,046

Kelston Sparkes Holdings Limited (Registered number: 01456314)

Notes to the Consolidated Financial Statements - continued
for the Year Ended 31 December 2024

12. TANGIBLE FIXED ASSETS

Group
Freehold Major Dumper
property plant trucks
£    £    £   
COST
At 1 January 2024 3,630,000 24,133,466 13,936,606
Additions 945,554 4,507,060 4,639,002
Disposals - (2,786,813 ) (3,290,304 )
At 31 December 2024 4,575,554 25,853,713 15,285,304
DEPRECIATION
At 1 January 2024 - 10,374,309 6,408,930
Charge for year - 2,402,723 1,291,287
Eliminated on disposal - (1,931,378 ) (1,931,880 )
Impairments - 60,000 290,000
At 31 December 2024 - 10,905,654 6,058,337
NET BOOK VALUE
At 31 December 2024 4,575,554 14,948,059 9,226,967
At 31 December 2023 3,630,000 13,759,157 7,527,676

Sundry Motor
plant vehicles Totals
£    £    £   
COST
At 1 January 2024 1,181,260 2,951,369 45,832,701
Additions 415,716 994,902 11,502,234
Disposals (234,113 ) (281,923 ) (6,593,153 )
At 31 December 2024 1,362,863 3,664,348 50,741,782
DEPRECIATION
At 1 January 2024 725,439 1,125,727 18,634,405
Charge for year 205,544 465,000 4,364,554
Eliminated on disposal (231,977 ) (159,944 ) (4,255,179 )
Impairments - - 350,000
At 31 December 2024 699,006 1,430,783 19,093,780
NET BOOK VALUE
At 31 December 2024 663,857 2,233,565 31,648,002
At 31 December 2023 455,821 1,825,642 27,198,296

Kelston Sparkes Holdings Limited (Registered number: 01456314)

Notes to the Consolidated Financial Statements - continued
for the Year Ended 31 December 2024

12. TANGIBLE FIXED ASSETS - continued

Group

Fixed assets, included in the above, which are held under hire purchase contracts are as follows:
Major Dumper Sundry Motor
plant trucks plant vehicles Totals
£    £    £    £    £   
COST
At 1 January 2024 14,509,779 10,140,427 326,260 2,154,118 27,130,584
Additions 3,807,059 4,099,001 250,000 884,567 9,040,627
Disposals - (1,572,118 ) - (90,640 ) (1,662,758 )
Transfer to ownership (3,800,311 ) - (164,400 ) (147,818 ) (4,112,529 )
At 31 December 2024 14,516,527 12,667,310 411,860 2,800,227 30,395,924
DEPRECIATION
At 1 January 2024 4,899,404 3,314,241 163,773 577,350 8,954,768
Charge for year 1,810,247 960,898 120,378 400,837 3,292,360
Eliminated on disposal - (781,362 ) - (38,522 ) (819,884 )
Transfer to ownership (1,105,683 ) (813,592 ) (126,401 ) (91,744 ) (2,137,420 )
At 31 December 2024 5,603,968 2,680,185 157,750 847,921 9,289,824
NET BOOK VALUE
At 31 December 2024 8,912,559 9,987,125 254,110 1,952,306 21,106,100
At 31 December 2023 9,610,375 6,826,186 162,487 1,576,768 18,175,816

Company
Freehold
property
£   
COST OR VALUATION
At 1 January 2024 3,630,000
Additions 945,554
At 31 December 2024 4,575,554
NET BOOK VALUE
At 31 December 2024 4,575,554
At 31 December 2023 3,630,000

The freehold property owned by the company was independently valued by Colliers International Valuation UK LLP on 11 August 2021.

Cost or valuation at 31 December 2024 is represented by:

Freehold
property
£   
Valuation in 2021 554,079
Cost 4,021,475
4,575,554

Kelston Sparkes Holdings Limited (Registered number: 01456314)

Notes to the Consolidated Financial Statements - continued
for the Year Ended 31 December 2024

13. FIXED ASSET INVESTMENTS

Company
Shares in
group
undertakings
£   
COST
At 1 January 2024
and 31 December 2024 4,228,201
NET BOOK VALUE
At 31 December 2024 4,228,201
At 31 December 2023 4,228,201

The group or the company's investments at the Balance Sheet date in the share capital of companies include the following:

Subsidiaries

Kelston Sparkes (Group) Limited
Registered office: England
Nature of business: Plant Hire and Earthmoving
%
Class of shares: holding
Ordinary 99.99
2024 2023
£    £   
Aggregate capital and reserves 5,976,375 6,847,381
Loss for the year (286,006 ) (275,116 )

Kelston Sparkes Contractors Limited
Registered office: England
Nature of business: Earthmoving contractors
%
Class of shares: holding
Ordinary 100.00
2024 2023
£    £   
Aggregate capital and reserves 12,791,962 6,312,067
Profit for the year 6,479,895 2,011,123

KSG Training Services Limited
Registered office: England
Nature of business: Training Services
%
Class of shares: holding
Ordinary 100.00
2024 2023
£    £   
Aggregate capital and reserves 62,626 73,663
(Loss)/profit for the year (11,037 ) 22,652

Kelston Sparkes Holdings Limited (Registered number: 01456314)

Notes to the Consolidated Financial Statements - continued
for the Year Ended 31 December 2024

13. FIXED ASSET INVESTMENTS - continued

KSG Vehicle Solutions Limited
Registered office: England
Nature of business: Vehicle Hire Company
%
Class of shares: holding
Ordinary 100.00
2024 2023
£    £   
Aggregate capital and reserves 439,838 304,681
Profit for the year 135,157 123,456

Kelston Sparkes Quarry Services Limited
Registered office: England
Nature of business: Rent & Lease of Machinery & Equipment
%
Class of shares: holding
Ordinary 100.00
2024 2023
£    £   
Aggregate capital and reserves 468,176 (2,264 )
Profit/(loss) for the year 465,912 (2,364 )

The shares in Kelston Sparkes Quarry Services Limited were acquired on its incorporation on 7 February 2023.


14. INVESTMENT PROPERTY

Group
Total
£   
FAIR VALUE
At 1 January 2024
and 31 December 2024 1,845,000
NET BOOK VALUE
At 31 December 2024 1,845,000
At 31 December 2023 1,845,000

Fair value at 31 December 2024 is represented by:
£   
Valuation in 2018 323,121
Valuation in 2019 46,431
Valuation in 2020 229,831
Cost 1,245,617
1,845,000

Company
Total
£   
FAIR VALUE
At 1 January 2024
and 31 December 2024 1,845,000
NET BOOK VALUE
At 31 December 2024 1,845,000
At 31 December 2023 1,845,000

Kelston Sparkes Holdings Limited (Registered number: 01456314)

Notes to the Consolidated Financial Statements - continued
for the Year Ended 31 December 2024

14. INVESTMENT PROPERTY - continued

Company

The investment property owned by the company was independently valued on an existing use basis by Colliers International Valuation UK LLP on 11 August 2021. The valuation was £1,845,000 subject to the existing lease.

Fair value at 31 December 2024 is represented by:
£   
Valuation in 2018 323,121
Valuation in 2019 46,431
Valuation in 2020 229,831
Cost 1,245,617
1,845,000

15. STOCKS

Group
2024 2023
£    £   
Stocks 237,977 298,336

16. DEBTORS

Group Company
2024 2023 2024 2023
£    £    £    £   
Amounts falling due within one year:
Trade debtors 8,397,082 6,070,141 255 10,250
Amounts recoverable on contract 5,388,216 2,720,115 - -
Other debtors 311,918 170,832 - -
14,097,216 8,961,088 255 10,250

Amounts falling due after more than one year:
Amounts owed by group undertakings - - 865,110 643,751

Aggregate amounts 14,097,216 8,961,088 865,365 654,001

Company
A formal agreement is in place to charge interest at a commercial market rate of 2.25% above Bank of England base rate on inter-company loan balances. Inter-company loans are not repayable on demand and therefore are treated as falling due in more than one year.

17. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

Group Company
2024 2023 2024 2023
£    £    £    £   
Bank loans and overdrafts (see note 19) 136,602 124,674 - -
Hire purchase contracts (see note 20) 5,705,176 5,376,686 - -
Trade creditors 4,584,669 3,023,626 8,411 -
Social security and other taxes 235,127 211,167 - -
VAT 144,838 568,422 7,567 10,770
Other creditors 936,509 1,055,503 64,081 66,080
Interest free loan < 1 year - 27,581 - -
Accruals and deferred income 4,730,300 2,758,381 - -
16,473,221 13,146,040 80,059 76,850

Kelston Sparkes Holdings Limited (Registered number: 01456314)

Notes to the Consolidated Financial Statements - continued
for the Year Ended 31 December 2024

18. CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR

Group Company
2024 2023 2024 2023
£    £    £    £   
Bank loans (see note 19) 1,314,296 1,450,672 - -
Hire purchase contracts (see note 20) 11,213,335 8,637,154 - -
Amounts owed to group undertakings - - 6,267,957 5,170,577
Interest free loan 1 - 2 years - 1,083 - -
Directors' loan accounts 11,778 94,541 - -
12,539,409 10,183,450 6,267,957 5,170,577

Company
A formal agreement is in place to charge interest at a commercial market rate of 2.25% above Bank of England base rate on inter-company loan balances. Inter-company loans are not repayable on demand and therefore are treated as falling due in more than one year.

19. LOANS

An analysis of the maturity of loans is given below:

Group
2024 2023
£    £   
Amounts falling due within one year or on demand:
Bank loans 136,602 124,674
Amounts falling due between one and two years:
Bank loans - 1-2 years 145,968 133,886
Amounts falling due between two and five years:
Bank loans - 2-5 years 500,745 463,995
Amounts falling due in more than five years:
Repayable by instalments
Bank loans more 5 yr by instal 667,583 852,791

The short term overdraft carries interest at the rate of 2.79% above base rate.

The bank loan was drawn down in April 2018. The loan carries interest at the rate of 1.9% above HSBC Bank plc's base rate and is repayable in 180 monthly instalments. The loan is repayable by April 2033.

Kelston Sparkes Holdings Limited (Registered number: 01456314)

Notes to the Consolidated Financial Statements - continued
for the Year Ended 31 December 2024

20. LEASING AGREEMENTS

Minimum lease payments fall due as follows:

Group
Hire purchase contracts
2024 2023
£    £   
Gross obligations repayable:
Within one year 6,470,514 5,857,771
Between one and five years 12,158,602 9,165,231
18,629,116 15,023,002

Finance charges repayable:
Within one year 765,338 481,085
Between one and five years 945,267 528,077
1,710,605 1,009,162

Net obligations repayable:
Within one year 5,705,176 5,376,686
Between one and five years 11,213,335 8,637,154
16,918,511 14,013,840

21. SECURED DEBTS

The following secured debts are included within creditors:

Group
2024 2023
£    £   
Bank loans 1,450,898 1,575,346
Hire purchase contracts 16,918,511 14,013,840
18,369,409 15,589,186

Group

The above bank borrowings are secured by HSBC Bank plc with a fixed and floating charge over all the assets and undertakings.

An unlimited composite company guarantee to Kelston Sparkes Holdings Limited, Kelston Sparkes (Group) Limited, Kelston Sparkes Contractors Limited and KSG Training Services Limited is also in place with HSBC Bank plc to secure all liabilities with the Bank that any of these companies may have.

Hire purchase debts are secured over the asset to which they relate.

Kelston Sparkes Holdings Limited (Registered number: 01456314)

Notes to the Consolidated Financial Statements - continued
for the Year Ended 31 December 2024

22. FINANCIAL INSTRUMENTS

Group

The group has the following financial instruments:
Notes 2024 2023
£ £
Financial assets that are debt instruments measured at amortised cost
Trade debtors 16 8,397,082 6,070,141
Amounts recoverable on contracts 16 5,388,216 2,720,115
13,785,298 8,790,256

Financial liabilities measured at amortised cost
Bank loans and overdrafts 17, 18 1,450,898 1,575,346
Trade creditors 17 4,584,669 3,023,626
Hire purchase contracts 17, 18 16,918,511 14,013,840
22,754,078 18,612,812

Company

The company has the following financial instruments:
Notes 2024 2023
£ £
Financial assets that are debt instruments measured at amortised cost
Trade debtors 16 255 10,250
Amounts owed by group undertakings 16 865,110 643,751
865,365 654,001

Financial liabilities measured at amortised cost
Trade creditors 17 8,411 -
Amounts owed to group undertakings 18 6,267,957 5,170,577
6,276,368 5,170,577

23. PROVISIONS FOR LIABILITIES

Group Company
2024 2023 2024 2023
£    £    £    £   
Deferred tax
Accelerated capital allowances 6,496,183 5,023,744 288,366 288,366
Tax losses carried forward (875,273 ) (1,389,175 ) - -
5,620,910 3,634,569 288,366 288,366

Group
Deferred
tax
£   
Balance at 1 January 2024 3,634,569
Provided during year 1,986,341
Balance at 31 December 2024 5,620,910

Kelston Sparkes Holdings Limited (Registered number: 01456314)

Notes to the Consolidated Financial Statements - continued
for the Year Ended 31 December 2024

23. PROVISIONS FOR LIABILITIES - continued

Company
Deferred
tax
£   
Balance at 1 January 2024 288,366
Balance at 31 December 2024 288,366

24. CALLED UP SHARE CAPITAL

Allotted, issued and fully paid:
Number: Class: Nominal 2024 2023
value: £    £   
3,952,100 Ordinary £1 3,952,100 3,952,100

There are no restrictions on the distribution of dividends and the repayment of capital on all classes of ordinary shares.

25. RESERVES

Group
Retained Revaluation
earnings reserve Totals
£    £    £   

At 1 January 2024 9,337,896 865,096 10,202,992
Profit for the year 6,843,016 6,843,016
Dividends (585,000 ) (585,000 )
At 31 December 2024 15,595,912 865,096 16,461,008

Company
Retained Revaluation
earnings reserve Totals
£    £    £   

At 1 January 2024 40,995 865,096 906,091
Profit for the year 26,809 26,809
At 31 December 2024 67,804 865,096 932,900


26. NON-CONTROLLING INTERESTS

The minority interest represents a 0.006% (2023 - 0.006%) interest in Kelston Sparkes (Group) Limited.

27. CONTINGENT LIABILITIES

Company

The company is party to a cross company guarantee to HSBC Bank plc for Kelston Sparkes (Group) Limited, Kelston Sparkes Contractors Limited and KSG Training Services Limited. These companies are controlled by the directors of Kelston Sparkes Holdings Limited.

The company has contingent liabilities at 31 December 2024 amounting to £7,262 (2023 - £36,782) in respect of cash held by the company which may be offset against borrowing facilities granted by the bank to its holding company and fellow subsidiaries.

At 31 December 2024 there were contingent liabilities in respect of loan and overdraft facilities granted to Kelston Sparkes (Group) Limited of £1,450,897 (2023 - £1,575,346).

Kelston Sparkes Holdings Limited (Registered number: 01456314)

Notes to the Consolidated Financial Statements - continued
for the Year Ended 31 December 2024

28. RELATED PARTY DISCLOSURES

During the year, total dividends of £585,000 (2023 - £343,500) were paid to the directors of Kelston Sparkes (Group) Limited.

Entities over which the entity has control, joint control or significant influence
2024 2023
£    £   
Sales 80,000 60,000
Transfers 776,086 (176,566 )
Loan interest payable 401,286 355,255
Amount due to related party 6,267,842 5,170,577

Key management personnel of the entity or its parent (in the aggregate)
2024 2023
£    £   
Loan interest receivable/(payable) 233,564 (42,006 )
Amount due to related party 442,520 758,850

Other related parties
2024 2023
£    £   
Amount due from related party 117,654 117,654
Amount due to related party 7,959 46,966

29. ULTIMATE CONTROLLING PARTY

No one party controls the company and Group.