The directors present the strategic report for the year ended 31 December 2024.
The Group was unable to increase its turnover in comparison to the previous year. This was considered to be disappointing but with jobs where the Group was the preferred contractor being cancelled and ongoing delays impacting on commencement on several secured contracts it was felt to be inevitable. However, despite this, Gross Profit was increased from the previous year.
The directors believe the result for the year to be disappointing but not unexpected given the difficulties faced within the construction industry as well as the wider economy.
The directors are expecting to see improvements in trading during 2025 albeit the same issues are repeating from previous years. Since the date of the Balance sheet we have six schemes where we are preferred contractor / limited PCSAs in place, along with smaller schemes that have either started already or are expected to start. This leaves the Group with a healthy order book covering the latter part of 2025 and throughout 2026. New opportunities continue to present themselves on a regular basis.
The directors believe the performance indicators noted below give a brief overview of the company's position.
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| 2024 | 2023 | 2022 |
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Turnover |
| £40.3m | £41.6m | £42.7m |
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Turnover increase/(decrease) |
| (£1.3)m | (£1.1)m | £3.4m |
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Turnover increase/(decrease) % |
| (3.1)% | (2.6)% | 8.7% |
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Gross profit |
| £6.0m | £5.8m | £6.1m |
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Gross profit % |
| 14.9% | 13.9% | 14.3% |
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Current ratio |
| 1.08:1 | 1.07:1 | 1.06:1 |
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Debtor days |
| 55 | 54 | 56 |
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Projects started |
| 3 | 5 | 5 |
The Group continues to maintain a comfortable excess of current assets over current liabilities, with good cash flow and working capital management and no reliance on external finance arrangements. Debtor days are consistent with expectations in the construction industry.
We continue through our Passivhaus journey, completing our first three schemes and achieving Passive House Certification, with three more still on site making six in total, which continues to extend the experience in this area. The directors are confident this experience together with two award winning schemes (one a multi award winner) is providing the Group with a competitive edge in a market that is expanding and will help maintain a stable position over the next few years.
Business Risk
The directors consider that the Groups principal business risk is failing to win new contracts which will generate sufficient profits. The Group has a number of sources for new work and a healthy order book featuring new clients and repeat business for existing clients.
The Group also faces the normal risks which exist for building contractors, such as site health and safety. These risks are not judged to be of a material nature as the Group has good health and safety procedures and is adequately insured.
As with all companies which have a defined benefit pension scheme, the Group has an ongoing level of risk associated with the funding the scheme which is continually under review with the Group's advisors.
Liquidity Risk
The Group manages its cash and borrowing requirements in order to maximise interest income and minimise interest expense, whilst ensuring the company has sufficient liquid resources to meet the operating needs of the business.
Credit Risk
The Group places its cash with creditworthy institutions and performs ongoing credit evaluations of its debtors' financial position. New customers who wish to enter into contracts with the company are subject to credit verification procedures and relevant guarantees and undertakings are sought where appropriate. Trade debtors are reviewed on a regular basis and provision is made for doubtful debts when necessary.
The carrying amount of cash and debtors represent the maximum credit risk that the Group is exposed to.
On behalf of the board
The directors present their annual report and financial statements for the year ended 31 December 2024.
The results for the year are set out on page 8.
No ordinary dividends were paid. The directors do not recommend payment of a further dividend.
The directors who held office during the year and up to the date of signature of the financial statements were as follows:
The group is involved in a variety of research and development projects across a number of its sites, as it seeks to improve efficiencies and health and safety across the construction industry.
In accordance with the company's articles, a resolution proposing that Henton & Co LLP be reappointed as auditor of the group will be put at a General Meeting.
This report has been prepared in accordance with the provisions applicable to companies entitled to the medium-sized companies exemption.
We have audited the financial statements of Kind Management Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 December 2024 which comprise the group statement of comprehensive income, the group balance sheet, the company balance sheet, the group statement of changes in equity, the company statement of changes in equity, the group statement of cash flows and notes to the financial statements, including 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).
Basis for 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 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
Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of our audit:
The information given in the strategic report and the directors' report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
The strategic report and the directors' report have been prepared in accordance with applicable legal requirements.
The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.
We identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and then design and perform audit procedures responsive to those risks, including obtaining audit evidence that is sufficient and appropriate to provide a basis for our opinion.
In identifying and assessing risks of material misstatement in respect of irregularities, including fraud, and non-compliance with laws and regulations, our procedures included the following: enquiring of management concerning the group's and the company's policies with regards identifying, evaluating and complying with laws and regulations and whether they were aware of any instances of non-compliance; enquiring of management concerning the group's and the company's policies detecting and responding to the risks of fraud and whether they have knowledge of any actual, suspected or alleged fraud; enquiring of management concerning the group's and the company's policies in relation to the internal controls established to mitigate risks related to fraud or non- compliance with laws and regulations; discussing among the engagement team where fraud might occur in the financial statements and any potential indicators of fraud; and obtaining an understanding of the legal and regulatory framework that the group and the company operate in and focusing on those laws and regulations that had a direct effect on the financial statements or that had a fundamental effect on the operations of the group and the company. The key laws and regulations we considered in this context included the UK Companies Act 2006, Financial Reporting Standard 102 and applicable tax legislation.
Audit procedures undertaken in response to the potential risks relating to irregularities (which include fraud and non-compliance with laws and regulations) comprised of: enquiries of management and those charged with governance concerning compliance with such laws and regulations and any actual or potential litigation or claims; inspection of minutes and relevant legal correspondence; testing the appropriateness of journal entries; and the performance of analytical review to identify unexpected movements in account balances which may be indicative of fraud.
No instances of material non-compliance were identified. However, the likelihood of detecting irregularities, including fraud, is limited by the inherent difficulty in detecting irregularities, the effectiveness of the entity's controls, and the nature, timing and extent of the audit procedures performed. Irregularities that result from fraud might be inherently more difficult to detect than irregularities that result from error. As explained above, there is an unavoidable risk that material misstatements may not be detected, even though the audit has been planned and performed in accordance with ISAs (UK).
A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.
Use of our report
This report is made solely to the company’s members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 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 an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company’s members as a body, for our audit work, for this report, or for the opinions we have formed.
As permitted by s408 Companies Act 2006, the company has not presented its own profit and loss account and related notes. The company’s loss for the year was £45 (2023 - £6,656 profit).
These financial statements have been prepared in accordance with the provisions relating to medium-sized companies.
Kind Management Limited (“the company”) is a private limited company domiciled and incorporated in England and Wales. The registered office is Bridge House, 530 High Road, Leytonstone, London, E11 3EQ.
The group consists of Kind Management Limited and all of its subsidiaries.
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.
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.
The company is a qualifying entity for the purposes of FRS 102, being a member of a group where the parent of that group prepares publicly available consolidated financial statements, including this company, which are intended to give a true and fair view of the assets, liabilities, financial position and profit or loss of the group. The company has therefore taken advantage of exemptions from the following disclosure requirements for parent company information presented within the consolidated financial statements:
Section 7 ‘Statement of Cash Flows’: Presentation of a statement of cash flow and related notes and disclosures;
Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instrument Issues: Interest income/expense and net gains/losses for financial instruments not measured at fair value; basis of determining fair values; details of collateral, loan defaults or breaches, details of hedges, hedging fair value changes recognised in profit or loss and in other comprehensive income;
Section 33 ‘Related Party Disclosures’
The consolidated group financial statements consist of the financial statements of the parent company Kind Management Limited together with all entities controlled by the parent company (its subsidiaries) and the group’s share of its interests in joint ventures and associates.
All financial statements are made up to 31 December 2024. Where necessary, adjustments are made to the financial statements of subsidiaries to bring the accounting policies used into line with those used by other members of the group.
All intra-group transactions, balances and unrealised gains on transactions between group companies are eliminated on consolidation. Unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred.
Subsidiaries are consolidated in the group’s financial statements from the date that control commences until the date that control ceases.
The directors have a reasonable expectation that the group will have adequate resources to continue in operational existence for the foreseeable future. The directors consider that the group will be able to generate and maintain sufficient levels of cash in order to meet its liabilities as they fall due for a period of at least twelve months from the date when the financial statements were authorised for issue. The group therefore continues to adopt the going concern basis in preparing its financial statements.
Turnover is measured at the fair value of the consideration received from the value of long-term contract work completed, and is stated net of discounts and value added tax.
The group recognises turnover when the risks and rewards of ownership have transferred to the buyer, usually on the completion of a contract, when the amount of revenue can be measured reliably and it is probable that economic benefits associated to the transaction will flow to the entity.
Long-term contracts
Profit on long-term contracts is taken as the work is carried out if the final outcome can be assessed with reasonable certainty. The profit included is calculated on a prudent basis to reflect the proportion of the work carried out at the year end, by recording turnover and related costs as contract activity progresses. Turnover is calculated on a cost completion basis. Full provision is made for losses on all contracts in the year in which they are first foreseen.
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 recognised in the profit and loss account.
A subsidiary is an entity controlled by the group. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.
The group only enters into basic financial instrument transactions that result in the recognition of financial assets and liabilities like trade debtors, trade creditors and other debtors and creditors, loans from banks and other third parties and loans to related parties.
Debt instruments like loans and other accounts receivable and payable are initially measured at present value of the future payments and subsequently at amortised cost using the effective interest method; Debt instruments that are payable or receivable within one year, typically trade payables or receivables, are measured, initially and subsequently, at the undiscounted amount of the cash or other consideration expected to be paid or received. However if the arrangements of a short-term instrument constitute a financing transaction, like the payment of a trade debt deferred beyond normal business terms or financed at a rate of interest that is not a market rate or in case of an outright short-term loan not at market rate, the financial asset or liability is measured, initially and subsequently, at the present value of the future payments discounted at a market rate of interest for a similar debt instrument.
Financial assets that are measured at cost and amortised cost are assessed at the end of each reporting period for objective evidence of impairment. If objective evidence of impairment is found, an impairment loss is recognised in the income statement.
For financial assets measured at amortised cost, the impairment loss is measured as the difference between an asset's carrying amount and the present value of estimated cash flows discounted at the asset's original effective interest rate. If a financial asset has a variable interest rate, the discount rate for measuring any impairment loss is the current effective interest rate determined under the contract.
For financial assets measured at cost less impairment, the impairment loss is measured as the difference between an asset's carrying amount and the best estimate, which is an approximation, of the amount that the group would receive for the asset if it were to be sold at the reporting date.
Financial assets and liabilities are offset and the net amount reported in the statement of financial position when there is an 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.
Taxation expense for the period comprises current and deferred tax recognised in the reporting period. Tax is recognised in the profit and loss account, 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 in equity respectively. Current or deferred taxation assets and liabilities are not discounted.
Current tax is the amount of corporation 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 period end.
The directors periodically evaluate the position taken in tax returns with respect to situations in which applicable tax regulation is subject to interpretation. They establish provisions where appropriate on the basis of amounts expected to be paid to the tax authorities.
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 the periods different from those in which they are recognised in the financial statements.
Deferred tax is recognised on all timing differences at the reporting 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 differences.
Kind & Co. (Builders) Limited, the subsidiary undertaking, participates in two pension schemes:
- a defined contribution scheme (the "stakeholder" scheme)
- a defined benefit scheme (the "multi-employer" scheme) which is accounted for in the group's
financial statements as a defined contribution scheme in accordance with FRS 102: Section 28 -
Employee Benefits
The assets of each scheme are held separately from those of the company.
Contributions payable to the "stakeholder" scheme for the year are charged in the profit and loss account in the period to which they relate.
Contributions to the "multi-employer" scheme are paid as recommended by the scheme's actuary and are charged to the profit and loss account in the period they are paid. When the scheme is in deficit the participating employer companies recognise a liability for payments due under the recovery plan.
The company also makes contributions to the personal pensions of certain directors and employees.
Leases that do not transfer all the risks and rewards of ownership are classified as operating leases. Rentals applicable to operating leases where substantially all of the benefits of ownership remain with the lessor are charged to profit and loss account on a straight line basis over the term of the lease.
Debtors
Short term debtors are measured at transaction price, less any impairment. Loans receivable are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using effective interest method, less any impairment.
Creditors
Short term creditors are measured at the transaction price. Other financial liabilities, including bank loans, are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method.
Employee Ownership Trust
The Kind Management Employee Ownership Trust holds shares in Kind Management Limited for the benefit of all employees of the group. The trust was set up in accordance with the requirements of Section 37 to the Finance Act 2014 as an "Employee Ownership Trust" (EOT) and consequently is not required to consolidate its figures into the financial statements of Kind Management Limited.
The cost of operating the EOT are included in the profit and loss account of the parent and group company accounts.
In the application of the group’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.
The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are as follows.
The directors have made key assumptions regarding the stage of completion, future costs to complete and recoverability of costs of long term contracts.
The directors make estimates of the recoverable value of trade and other debtors. When assessing the impairment of trade and other debtors, the factors considered include the current credit rating of the debtor, the ageing profile of debtors and historical experience.
The turnover and profit before taxation are attributable to the one principal activity of the group. The turnover has all arisen in the United Kingdom.
The average monthly number of persons (including directors) employed by the group and company during the year was:
Their aggregate remuneration comprised:
Further details about the company's pension commitments, including contributions paid under the recovery plan for the multi-employer defined benefit scheme, are included in notes 23 and 24 to the financial statements.
Included within the other pension costs charge are:
The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 1 (2023 - 2).
The actual charge for the year can be reconciled to the expected charge for the year based on the profit or loss and the standard rate of tax as follows:
Details of the company's subsidiaries at 31 December 2024 are as follows:
Trade debtors includes £1,317,019 (2023: £1,271,714) which is recoverable after more than one year.
The following are the major deferred tax liabilities and assets recognised by the group and company, and movements thereon:
The subsidiary is subject to the normal post-sales contingencies attaching to building contractors.
At the reporting end date the group had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:
The following amounts were outstanding at the reporting end date:
The following amounts were outstanding at the reporting end date:
The Kind & Co (Holdings) Limited 1972 Pension and Life Assurance Scheme (the "Scheme") is a multi-employer defined benefit scheme. Kind & Co (Builders) Limited is the Scheme's principal employer and Kind & Co. (Holdings) Limited is the other associated employer. The scheme's trustees and members approved the cessation of further accruals to members' benefits with effect from 30th November 2007.
The assets of the Scheme are held under trust within a non-segregated fund. It has not been possible for the assets of the Scheme to be allocated to each participating employer company on a reasonable and consistent basis.
In accordance with paragraph 28.11 of FRS 102 Section 28 - Employee Benefits, each employer should account for its contributions to the Scheme as if it were a defined contribution scheme and disclose any available information about the surplus or deficit.
Contributions to the Scheme are determined on the basis of triennial actuarial valuations carried out by an independent, qualified actuary. The Scheme funding levels are assessed by measuring the extent to which the scheme's assets are sufficient to meet the members' accrued benefits on two separate bases:
Ongoing Basis - assumes the scheme will continue in existence for the indefinite future, and commutation of pensions will be financially neutral, i.e. that the option of taking cash at retirement will be worth the same as the alternative pension.
Solvency Basis - assumes the scheme is terminated and benefits are purchased from an insurance company.
Full actuarial valuation
The results of the most recent full actuarial valuation of the scheme, carried out as at 31st March 2023 under Rule 19 (2) of the Trust Deed and Rules dated 25 June 2001 and Section 224 of the Pensions Act 2004, were as follows:
|
| Ongoing basis |
| Solvency basis |
|
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|
Present value of the scheme's liabilities |
| £6,221,000 |
| £7,503,000 |
Market value of the scheme's assets |
| £6,412,000 |
| £6,420,000 |
|
|
|
|
|
Surplus/(deficit) |
| £191,000 |
| (£1,083,000) |
|
|
|
|
|
Funding level (March 2023 valuation) |
| 103% |
| 86% |
|
|
|
|
|
Funding level (March 2020 valuation) |
| 92% |
| 62% |
The following actuarial assumptions were applied to the current/(previous) valuation:
Discount rate before and after retirement |
| 4.10% per annum (2.00%) |
RPI inflation |
| 3.26% per annum (2.76%) |
CPI inflation |
| -0.70% per annum (2.06%) |
Pension increases in deferment |
| -0.70% per annum (2.06%) |
Pension increases in payment |
|
|
Pre April 1988 |
| 0.00% per annum (0.00%) |
Between April 1988 and April 1997 |
| 2.17% per annum (1.87%) |
Between April 1997 and April 2005 |
| 3.16% per annum (2.73%) |
Post April 2005 |
| 2.20% per annum (2.03%) |
Assumptions relating to pre and post retirement mortality are in accordance with published actuarial tables.
The expenses of running the Scheme, including any contributions due, are to be met by the participating employer companies.
The most recent actuarial valuation indicated that the scheme's assets are expected to be sufficient to meet the benefits which have accrued to members and there is no longer a requirement to provide for the contributions agreed as payable by the participating employer companies.