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Registered number: 10526165










KRR BASICO LTD










ANNUAL REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 JULY 2024

 
KRR BASICO LTD
 
 
COMPANY INFORMATION


Directors
Balvinder Kaur Basi 
Colin Singh Basi (appointed 9 August 2023, resigned 31 July 2025)
Aiden Williamson (appointed 1 August 2025)




Registered number
10526165



Registered office
5-7 Station Road
Longfield

Kent

DA3 7QD




Independent auditors
Xeinadin Audit Limited
Statutory Auditors & Chartered Accountants

8th Floor Becket House

36 Old Jewry

London

EC2R 8DD





 
KRR BASICO LTD
 

CONTENTS



Page
Group Strategic Report
1 - 2
Director's Report
3 - 4
Independent Auditors' Report
5 - 8
Consolidated Statement of Comprehensive Income
9
Consolidated Statement of Financial Position
10 - 11
Company Statement of Financial Position
12
Consolidated Statement of Changes in Equity
13
Company Statement of Changes in Equity
14
Consolidated Statement of Cash Flows
15 - 16
Consolidated Analysis of Net Debt
17
Notes to the Financial Statements
18 - 35


 
KRR BASICO LTD
 
 
GROUP STRATEGIC REPORT
FOR THE YEAR ENDED 31 JULY 2024

Introduction
 
The board of directors are happy to provide their strategic report for the year ended 31st July 2024.

Business review
 
The results for the year to 31st July 2024 are as shown in these financial statements. The group has grown during this period, with turnover increasing by 4.82%, gross margin increasing from 26.37% to 33.25% and operating profit increasing by 24.07%. In anticipation of future growth across the group, the business continued to invest in people and processes, which contributed to a post-tax profit being made for the period. Fleet renewal has continued with the group replacing older and less efficient plant, increasing fixed assets by 19.01% during this period. This led to the increased interest payments for the period but will support higher profit margins in the future as capital is repaid.

Principal risks and uncertainties
 
Due to the uncertainty in the financial markets and the stagnant financial forecast for the UK economy, the group has completed varying levels of risk review and is comfortable with its projections for 2025 and 2026.
The group envisages a minimal growth in the construction sector but is confident it has the capacity to manage this. Simultaneously, the group continues to increase its market share in differing sectors of the construction industry by providing turn-key services which help mitigate risk for our client base.
Price risk – The data from 2024 showed prices were stable. The group core spend on fuel and materials were stabile which supported the increase in gross profit for the financial year. Prior year labour shortages have also stabilised giving the group further certainty when price. The forecasted decrease in interest rates will support future asset purchases further strengthening the profitability of the group.
Credit risk - The group has a strong credit rating and the purchase of premium plant equipment at below market rates supports this status. Robust cashflow modelling ensures payments are made on time to suppliers to maintain the credit rating of the business. We do not envisage any issues around credit risk.
Liquidity risk - The group has solid liquidity and respectable payment terms with its client base. The group’s historical investment in plant equipment, which will become unencumbered overtime, safeguards any potential liquidity issues that may arise in the future.
Market risk - The construction sector generally suffered during 2024, and we expect this to continue into 2025. In mitigation, this group offers specialist services to key clients, which to some extent protects it from the uncertainty of the wider construction market. The increase in turnover and gross profit supports the group's pivot into other construction activities.

Page 1

 
KRR BASICO LTD
 

GROUP STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2024

Financial key performance indicators
 
The investment in its management structure has paid dividends with turnover increasing by 4.82% and gross profits increasing to 33.25%. The expanding customer base and pivot into other construction activities places the group in a strong position. Reduced interest payments will support net profitability in future years. 
The group invested in new plant assets whilst liquidating unencumbered assets during the financial year. This increased short and long-term debt positions.
The management team continues to monitor the group's performance specifically looking at utilisation, hire/contract rates and EBITDA. With a steady pipeline of work, the senior management team remain optimistic for the future.

KPI's

2024
2023
Revenue
£18,691,455
£17,831,979
Gross Profit
£6,214,765
£4,702,883
Net Profit
£738,627
£71,338
Net Assets
£6,528,414
£6,672,290
Average Staff Numbers
40
41



This report was approved by the board on 12 August 2025 and signed on its behalf.



Balvinder Kaur Basi
Director

Page 2

 
KRR BASICO LTD
 
 
 
DIRECTOR'S REPORT
FOR THE YEAR ENDED 31 JULY 2024

The director presents his report and the financial statements for the year ended 31 July 2024.

Director's responsibilities statement

The director is responsible for preparing the Group Strategic Report, the Director's Report and the consolidated financial statements in accordance with applicable law and regulations.
 
Company law requires the director to prepare financial statements for each financial year. Under that law the director has elected to prepare the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland'. Under company law the director must not approve the financial statements unless he is satisfied that they give a true and fair view of the state of affairs of the Company and the Group and of the profit or loss of the Group for that period.

 In preparing these financial statements, the director is required to:


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

make judgments and accounting estimates that are reasonable and prudent;

state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements;

prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Group will continue in business.

The director is 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 the Group and to enable him to ensure that the financial statements comply with the Companies Act 2006He is also responsible for safeguarding the assets of the Company and the Group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Principal activity

The principal activities of the group is that of leasing plant and machinery for construction works and also that of providing remediation services within the construction industry.

Results and contributions

The profit for the year, after taxation, amounted to £738,627 (2023 - £71,338).

The directors have recommended a contribution this year of £882,502 (2023 - £2,029,906).

Directors

The directors who served during the year were:

Balvinder Kaur Basi 
Colin Singh Basi , resigned 31 July 2025)

Political contributions

There were no political contributions in the year.

Page 3

 
KRR BASICO LTD
 
 
 
DIRECTOR'S REPORT (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2024

Future developments

There are no future developments affecting the group since the year end.

Qualifying third party indemnity provisions

There are no third party indemnity provisions currently in place.

Disclosure of information to auditors

The director at the time when this Director's Report is approved has confirmed that:
 
so far as  is aware, there is no relevant audit information of which the Company and the Group's auditors are unaware, and

 has taken all the steps that ought to have been taken as a director in order to be aware of any relevant audit information and to establish that the Company and the Group's auditors are aware of that information.

Post balance sheet events

There have been no significant events affecting the Group since the year end.

Auditors

Under section 487(2) of the Companies Act 2006Xeinadin Audit Limited will be deemed to have been reappointed as auditors 28 days after these financial statements were sent to members or 28 days after the latest date prescribed for filing the accounts with the registrar, whichever is earlier.

This report was approved by the board on 12 August 2025 and signed on its behalf.
 





Balvinder Kaur Basi
Director

Page 4

 
KRR BASICO LTD
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF KRR BASICO LTD
 

Opinion


We have audited the financial statements of KRR Basico Ltd (the 'parent Company') and its subsidiaries (the 'Group') for the year ended 31 July 2024, which comprise the Consolidated Statement of Comprehensive Income, the Consolidated Statement of Financial Position, the Company Statement of Financial Position, the Consolidated Statement of Cash Flows, the Consolidated Statement of Changes in Equity, the Company Statement of Changes in Equity and the related notes, including a summary of significant accounting policiesThe financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).


In our opinion the financial statements:


give a true and fair view of the state of the Group's and of the parent Company's affairs as at 31 July 2024 and of the Group's profit for the year then ended;
have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
have been prepared in accordance with the requirements of the Companies Act 2006.


Basis for opinion


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


Conclusions relating to going concern


In auditing the financial statements, we have concluded that the director's 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 or 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 director with respect to going concern are described in the relevant sections of this report.


Page 5

 
KRR BASICO LTD
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF KRR BASICO LTD (CONTINUED)


Other information


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


We have nothing to report in this regard.


Opinion on other matters prescribed by the Companies Act 2006
 

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


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


Matters on which we are required to report by exception
 

In the light of the knowledge and understanding of the 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 Director's Report.


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


adequate accounting records have not been kept 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 director's 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 Director's Responsibilities Statement set out on page 3, the director is 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 director determines is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.


In preparing the financial statements, the director is 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 director either intends to liquidate the Group or the parent Company or to cease operations, or has no realistic alternative but to do so.


Page 6

 
KRR BASICO LTD
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF KRR BASICO LTD (CONTINUED)


Auditors' responsibilities for the audit of the financial statements
 

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an Auditors' Report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these Group financial statements.


Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

Enquiry of management and those charged with governance around actual and potential litigation and claims;
Enquiry of management and those charged with governance to identify any instances of non-compliance with laws and regulations;
Performing audit work over the risk of management override of controls, including testing of journal entries and other adjustments for appropriateness, evaluating the business rationale of significant transactions outside the normal course of business and reviewing accounting estimates for bias.

The potential effect of these laws and regulations on the financial statements varies considerably.

Firstly, the Group is subject to laws and regulations that directly affect the financial statements including financial reporting legislation (including related companies legislation), distributable profits legislation and taxation legislation and we assessed the extent of compliance with these laws and regulations as part of our procedures on the related financial statement items.

Secondly, the Group is subject to many other laws and regulations where the consequence of noncompliance could have a material effect on amounts or disclosures in the financial statements, for instance the imposition of fines or litigation. We identified the following areas as those most likely to have such an effect: health and safety, including data protection laws and employment law compliance for recognising the nature of the Group's activities. Auditing standards limit the required audit procedures to identify non-compliance with these laws and regulations to enquiry of the directors and other management and inspection of regulatory and legal correspondence, if any. Therefore, if a breach of operational regulations is not disclosed to us or evident from relevant correspondence, an audit will not detect that breach.

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

We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our 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 Auditors' Report.


Page 7

 
KRR BASICO LTD
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF KRR BASICO LTD (CONTINUED)


Use of our report
 

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





Paul Laxton FCCA (Senior Statutory Auditor)
  
for and on behalf of
Xeinadin Audit Limited
 
Statutory Auditors & Chartered Accountants
  
8th Floor Becket House
36 Old Jewry
London
EC2R 8DD

13 August 2025
Page 8

 
KRR BASICO LTD
 
 
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 JULY 2024

As restated
2024
2023
Note
£
£

  

Turnover
  
18,691,455
17,831,979

Cost of sales
  
(12,476,690)
(13,129,096)

Gross profit
  
6,214,765
4,702,883

Administrative expenses
  
(4,554,234)
(3,364,502)

Operating profit
  
1,660,531
1,338,381

Interest payable and similar expenses
  
(1,139,680)
(552,740)

Profit before taxation
  
520,851
785,641

Tax on profit
  
217,776
(714,303)

Profit for the financial year
  
738,627
71,338

Profit for the year attributable to:
  

Owners of the parent Company
  
738,627
71,338

  
738,627
71,338

There were no recognised gains and losses for 2024 or 2023 other than those included in the consolidated statement of comprehensive income.

There was no other comprehensive income for 2024 (2023:£NIL).

The notes on pages 18 to 35 form part of these financial statements.

Page 9

 
KRR BASICO LTD
REGISTERED NUMBER: 10526165

CONSOLIDATED STATEMENT OF FINANCIAL POSITION
AS AT 31 JULY 2024

As restated
2024
2023
Note
£
£

Fixed assets
  

Tangible assets
 12 
19,989,430
16,795,658

  
19,989,430
16,795,658

Current assets
  

Stocks
 14 
1,758,757
518,737

Debtors: amounts falling due within one year
 15 
3,858,249
2,517,279

Cash at bank and in hand
  
121,109
195,975

  
5,738,115
3,231,991

Creditors: amounts falling due within one year
 16 
(8,059,162)
(5,111,694)

Net current liabilities
  
 
 
(2,321,047)
 
 
(1,879,703)

Total assets less current liabilities
  
17,668,383
14,915,955

Creditors: amounts falling due after more than one year
 17 
(10,205,323)
(7,091,243)

Provisions for liabilities
  

Deferred taxation
 19 
(934,646)
(1,152,422)

  
 
 
(934,646)
 
 
(1,152,422)

  
6,528,414
6,672,290

Net assets
  
6,528,414
6,672,290


Capital and reserves
  

Called up share capital 
 20 
136
136

Merger reserve
 21 
198
198

Profit and loss account
 21 
6,528,080
6,671,956

Equity attributable to owners of the parent Company
  
6,528,414
6,672,290

  
6,528,414
6,672,290


Page 10

 
KRR BASICO LTD
REGISTERED NUMBER: 10526165
    
CONSOLIDATED STATEMENT OF FINANCIAL POSITION (CONTINUED)
AS AT 31 JULY 2024

The financial statements were approved and authorised for issue by the board and were signed on its behalf on 12 August 2025.




Balvinder Kaur Basi
Director

The notes on pages 18 to 35 form part of these financial statements.

Page 11

 
KRR BASICO LTD
REGISTERED NUMBER: 10526165

COMPANY STATEMENT OF FINANCIAL POSITION
AS AT 31 JULY 2024

2024
2023
Note
£
£

Fixed assets
  

Investments
 13 
201
201

  
201
201

Current assets
  

Debtors: amounts falling due within one year
 15 
133
3,114

Cash at bank and in hand
  
1,349
4,460

  
1,482
7,574

Creditors: amounts falling due within one year
 16 
-
(18,072)

Net current assets/(liabilities)
  
 
 
1,482
 
 
(10,498)

Total assets less current liabilities
  
1,683
(10,297)

  

  

  
1,683
(10,297)

Net assets/(liabilities)
  
1,683
(10,297)


Capital and reserves
  

Called up share capital 
 20 
136
136

Merger reserve
 21 
198
198

Profit and loss account brought forward
 21 
(10,631)
-

Profit for the year
 21 
894,483
2,019,275

Contributions paid

 11 

(882,503)
(2,029,906)

Profit and loss account carried forward
  
1,349
(10,631)

  
1,683
(10,297)


The financial statements were approved and authorised for issue by the board and were signed on its behalf on 12 August 2025.


Balvinder Kaur Basi
Director

The notes on pages 18 to 35 form part of these financial statements.

Page 12

 
KRR BASICO LTD
 

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 JULY 2024


Called up share capital
Merger reserve
Profit and loss account
Total equity

£
£
£
£


At 1 August 2022 (as previously stated)
103
198
9,127,521
9,127,822

Prior year adjustment - correction of error
-
-
(496,997)
(496,997)


At 1 August 2022 (as restated)
103
198
8,630,524
8,630,825


Comprehensive income for the year

Profit for the year
-
-
71,338
71,338


Contributions by and distributions to owners

Contributions paid
-
-
(2,029,906)
(2,029,906)

Shares issued during the year
33
-
-
33


Total transactions with owners
33
-
(2,029,906)
(2,029,873)



At 1 August 2023 (as restated)
136
198
6,677,166
6,677,500

Prior year adjustment - correction of error
-
-
(5,210)
(5,210)


At 1 August 2023 (as restated)
136
198
6,671,956
6,672,290


Comprehensive income for the year

Profit for the year
-
-
738,627
738,627


Contributions by and distributions to owners

Contributions paid
-
-
(882,503)
(882,503)


Total transactions with owners
-
-
(882,503)
(882,503)


At 31 July 2024
136
198
6,528,080
6,528,414


The notes on pages 18 to 35 form part of these financial statements.

Page 13

 
KRR BASICO LTD
 

COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 JULY 2024


Called up share capital
Merger reserve
Profit and loss account
Total equity

£
£
£
£


At 1 August 2022
103
198
-
301


Comprehensive income for the year

Profit for the year
-
-
2,019,275
2,019,275


Contributions by and distributions to owners

Contributions paid
-
-
(2,029,906)
(2,029,906)

Shares issued during the year
33
-
-
33


Total transactions with owners
33
-
(2,029,906)
(2,029,873)



At 1 August 2023
136
198
(10,631)
(10,297)


Comprehensive income for the year

Profit for the year
-
-
894,483
894,483


Contributions by and distributions to owners

Contributions paid
-
-
(882,503)
(882,503)


Total transactions with owners
-
-
(882,503)
(882,503)


At 31 July 2024
136
198
1,349
1,683


The notes on pages 18 to 35 form part of these financial statements.

Page 14

 
KRR BASICO LTD
 

CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 JULY 2024

As restated
2024
2023
£
£

Cash flows from operating activities

Profit for the financial year
738,627
71,338

Adjustments for:

Depreciation of tangible assets
3,040,054
3,101,682

Loss/(profit) on disposal of tangible assets
373,613
(333,255)

Interest paid
1,139,680
552,740

Taxation charge
(217,776)
714,303

(Increase)/decrease in stocks
(1,240,020)
401,100

(Increase)/decrease in debtors
(1,340,971)
1,353,268

Increase/(decrease) in creditors
1,030,722
(2,593,204)

Net cash generated from operating activities

3,523,929
3,267,972


Cash flows from investing activities

Purchase of tangible fixed assets
(11,017,197)
(6,638,781)

Sale of tangible fixed assets
4,409,757
2,458,448

HP interest paid
(1,108,787)
(517,550)

Net cash from investing activities

(7,716,227)
(4,697,883)

Cash flows from financing activities

Issue of ordinary shares
-
33

Repayment of/new finance leases
4,932,484
2,378,639

Contributions paid
(882,503)
(2,029,906)

Interest paid
(30,893)
(35,190)

Net cash used in financing activities
4,019,088
313,576

Net (decrease) in cash and cash equivalents
(173,210)
(1,116,335)
Page 15

 
KRR BASICO LTD
 

CONSOLIDATED STATEMENT OF CASH FLOWS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2024

As restated

2024
2023

£
£



Cash and cash equivalents at beginning of year
195,975
1,312,310

Cash and cash equivalents at the end of year
22,765
195,975


Cash and cash equivalents at the end of year comprise:

Cash at bank and in hand
121,109
195,975

Bank overdrafts
(98,344)
-

22,765
195,975


The notes on pages 18 to 35 form part of these financial statements.

Page 16

 
KRR BASICO LTD
 

CONSOLIDATED ANALYSIS OF NET DEBT
FOR THE YEAR ENDED 31 JULY 2024





Restated at 1 August 2023
Cash flows
New finance leases
At 31 July 2024
£

£

£

£

Cash at bank and in hand

195,975

(74,866)

-

121,109

Bank overdrafts

-

(98,344)

-

(98,344)

Finance leases

(10,770,972)

-

(4,932,484)

(15,703,456)


(10,574,997)
(173,210)
(4,932,484)
(15,680,691)

The notes on pages 18 to 35 form part of these financial statements.

Page 17

 
KRR BASICO LTD
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JULY 2024

1.


General information

The company is a private company limited by shares, registered in England. The address of the registered office, and principal place of business is 5-7 Station Road, Longfield, Kent, DA3 7QD.

2.Accounting policies

 
2.1

Basis of preparation of financial statements

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

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

The Company has taken advantage of the exemption allowed under section 408 of the Companies Act 2006 and has not presented its own Statement of Comprehensive Income in these financial statements.

The following principal accounting policies have been applied:

 
2.2

Basis of consolidation

The consolidated financial statements present the results of the Company and its own subsidiaries ("the Group") as if they form a single entity. Intercompany transactions and balances between group companies are therefore eliminated in full.
The consolidated financial statements incorporate the results of business combinations using the purchase method. In the Statement of Financial Position, the acquiree's identifiable assets, liabilities and contingent liabilities are initially recognised at their fair values at the acquisition date. The results of acquired operations are included in the Consolidated Statement of Comprehensive Income from the date on which control is obtained. They are deconsolidated from the date control ceases.

 
2.3

Revenue

The group has two revenue streams:
Leasing of plant & machinery
Revenue from the lease of plant and machinery is recognised when the item has been leased, based on the number of days it is used for.
Rendering of services
Revenue from the rendering of services is recognised upon the stage of completion of the job.

 
2.4

Operating leases: the Group as lessee

Rentals paid under operating leases are charged to profit or loss on a straight-line basis over the lease term.

Benefits received and receivable as an incentive to sign an operating lease are recognised on a straight-line basis over the lease term, unless another systematic basis is representative of the time pattern of the lessee's benefit from the use of the leased asset.

Page 18

 
KRR BASICO LTD
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JULY 2024

2.Accounting policies (continued)

 
2.5

Finance costs

Finance costs are charged to profit or loss over the term of the debt using the effective interest method so that the amount charged is at a constant rate on the carrying amount. Issue costs are initially recognised as a reduction in the proceeds of the associated capital instrument.

 
2.6

Borrowing costs

All borrowing costs are recognised in profit or loss in the year in which they are incurred.

 
2.7

Pensions

Defined contribution pension plan

The Group operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the Group pays fixed contributions into a separate entity. Once the contributions have been paid the Group has no further payment obligations.

The contributions are recognised as an expense in profit or loss when they fall due. Amounts not paid are shown in accruals as a liability in the Statement of Financial Position. The assets of the plan are held separately from the Group in independently administered funds.

 
2.8

Current and deferred taxation

The tax expense for the year comprises current and deferred tax. Tax is recognised in profit or loss except that a charge attributable to an item of income and expense recognised as other comprehensive income or to an item recognised directly in equity is also recognised in other comprehensive income or directly in equity respectively.

The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the reporting date in the countries where the Company and the Group operate and generate income.

Deferred tax balances are recognised in respect of all timing differences that have originated but not reversed by the reporting date, except that:
The recognition of deferred tax assets is limited to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits;
Any deferred tax balances are reversed if and when all conditions for retaining associated tax allowances have been met; and
Where they relate to timing differences in respect of interests in subsidiaries, associates, branches and joint ventures and the Group can control the reversal of the timing differences and such reversal is not considered probable in the foreseeable future.

Deferred tax balances are not recognised in respect of permanent differences except in respect of business combinations, when deferred tax is recognised on the differences between the fair values of assets acquired and the future tax deductions available for them and the differences between the fair values of liabilities acquired and the amount that will be assessed for tax. Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the reporting date.


Page 19

 
KRR BASICO LTD
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JULY 2024

2.Accounting policies (continued)

 
2.9

Tangible fixed assets

Tangible fixed assets under the cost model are stated at historical cost less accumulated depreciation and any accumulated impairment losses. Historical cost includes expenditure that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management.

At each reporting date the Group assesses whether there is any indication of impairment. If such indication exists, the recoverable amount of the asset is determined which is the higher of its fair value less costs to sell and its value in use. An impairment loss is recognised where the carrying amount exceeds the recoverable amount.

Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, using the straight-line method.

Depreciation is provided on the following basis:

Short-term leasehold property
-
10%
Straight line
Plant and machinery
-
12%
Straight line
Motor vehicles
-
12%
Straight line
Fixtures and fittings
-
12%
Straight line
Computer equipment
-
12%
Straight line

The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.

Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in profit or loss.

 
2.10

Valuation of investments

Investments in subsidiaries are measured at cost less accumulated impairment.

 
2.11

Stocks

Stocks are stated at the lower of cost and net realisable value, being the estimated selling price less costs to complete and sell. Cost is based on the cost of purchase on a first in, first out basis. Work in progress and finished goods include labour and attributable overheads.

At each reporting date, stocks are assessed for impairment. If stock is impaired, the carrying amount is reduced to its selling price less costs to complete and sell. The impairment loss is recognised immediately in profit or loss.

 
2.12

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 the effective interest method, less any impairment.

Page 20

 
KRR BASICO LTD
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JULY 2024

2.Accounting policies (continued)

 
2.13

Creditors

Short-term creditors are measured at the transaction price. Other financial liabilities are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method.

 
2.14

Hire purchase and finance leases

Assets held under finance leases are recognised in the statement of financial position as assets and liabilities at the lower of the fair value of assets and the present value of the minimum lease payments, which is determined at the inception of the lease term. Any initial direct cost of the lease are added to the amount recognised as an asset.
Lease payments are apportioned between the finance charges and reduction of the outstanding lease liability using the effective interest method. Finance charges are allocated to each period so as to produce a constant rate of interest on the remaining balance of the liability.

 
2.15

Provisions for liabilities

Provisions are recognised when an event has taken place that gives rise to a legal or constructive obligation, a transfer of economic benefits is probable and a reliable estimate can be made.
Provisions are measured as the best estimate of the amount required to settle the obligation, taking into account the related risks and uncertainties.
 
Increases in provisions are generally charged as an expense to profit or loss.

 
2.16

Financial instruments

The Group has elected to apply the provisions of Section 11 “Basic Financial Instruments” of FRS 102 to all of its financial instruments.

Financial instruments are recognised in the Group's Statement of Financial Position when the Group becomes party to the contractual provisions of the instrument.

Basic financial assets

Basic financial assets, which include trade and other debtors, cash and bank balances, are initially measured at their transaction price (adjusted for transaction costs except in the initial measurement of financial assets that are subsequently measured at fair value through profit and loss) and are subsequently carried at their amortised cost using the effective interest method, less any provision for impairment, 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.

Discounting is omitted where the effect of discounting is immaterial. The Group's cash and cash equivalents, trade and most other debtors due with the operating cycle fall into this category of financial instruments. 
 
Page 21

 
KRR BASICO LTD
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JULY 2024

2.Accounting policies (continued)


2.16
Financial instruments (continued)


Other financial assets

Other financial assets, which includes investments in equity instruments which are not classified as subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the recognised transaction price. Such assets are subsequently measured at fair value with the changes in fair value being recognised in the profit or loss. Where other financial assets are not publicly traded, hence their fair value cannot be measured reliably, they are measured at cost less impairment.

Impairment of financial assets

At the end of each reporting period financial assets measured at amortised cost are assessed for objective evidence of impairment. If an asset is impaired the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss. 

Financial assets are impaired when events, subsequent to their initial recognition, indicate the estimated future cash flows derived from the financial asset(s) have been adversely impacted. The impairment loss will be the difference between the current carrying amount and the present value of the future cash flows at the asset(s) original effective interest rate.

If there is a favourable change in relation to the events surrounding the impairment loss then the impairment can be reviewed for possible reversal. The reversal will not cause the current carrying amount to exceed the original carrying amount had the impairment not been recognised. The impairment reversal is recognised in the profit or loss.

Basic 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 Group after the deduction of all its liabilities.

Basic financial liabilities, which include trade and other creditors, bank loans, other loans and loans due to fellow group companies are initially measured at their transaction price (adjusting for transaction costs except in the initial measurement of financial liabilities that are subsequently measured at fair value through profit and loss). When this constitutes a financing transaction, whereby the debt instrument is measured at the present value of the future payments discounted at a market rate of interest, discounting is omitted where the effect of discounting is immaterial.

Debt instruments are subsequently carried at their amortised cost using the effective interest rate method.

Trade creditors are obligations to pay for goods and services that have been acquired in the ordinary course of business from suppliers. Trade creditors are classified as current liabilities if the payment is due within one year. If not, they represent non-current liabilities. Trade creditors are initially recognised at their transaction price and subsequently are measured at amortised cost using the effective interest method. Discounting is omitted where the effect of discounting is immaterial.
 
Page 22

 
KRR BASICO LTD
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JULY 2024

2.Accounting policies (continued)


2.16
Financial instruments (continued)


Derecognition of financial liabilities

Financial liabilities are derecognised when the Group's contractual obligations expire or are discharged or cancelled.

 
2.17

Contributions

Equity contributions are recognised when they become legally payable. Final equity contributions are recognised when approved by the shareholders at an annual general meeting.


3.


Judgments in applying accounting policies and key sources of estimation uncertainty

Depreciation
The annual depreciation charge for tangible assets is sensitive due to the material nature of the value of
fixed assets. The depreciation rates are reviewed annually to ensure they are appropriate for the type of
asset. Assets are reviewed for impairment on an annual basis.


4.


Turnover

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


2024
2023
£
£

Leasing of plant & machinery
18,691,455
17,831,979

18,691,455
17,831,979


2024
2023
£
£

United Kingdom
18,691,455
17,831,979

18,691,455
17,831,979


All turnover arose within the United Kingdom.

Page 23

 
KRR BASICO LTD
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JULY 2024

5.


Operating profit

The operating profit is stated after charging:

2024
2023
£
£

Loss/(profit) on disposal of tangible assets
373,613
(333,255)

Other operating lease rentals
1,153,564
919,706


6.


Auditors' remuneration

During the year, the Group obtained the following services from the Company's auditors:


2024
2023
£
£

Fees payable to the Company's auditors for the audit of the consolidated and parent Company's financial statements
20,000
24,000

Page 24

 
KRR BASICO LTD
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JULY 2024

7.


Employees

Staff costs, including director's remuneration, were as follows:


Group
Group
2024
2023
£
£


Wages and salaries
2,175,167
1,810,848

Social security costs
252,046
189,480

Cost of defined contribution scheme
81,023
63,197

2,508,236
2,063,525


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



Group
Group
Company
Company
        2024
        2023
        2024
        2023
            No.
            No.
            No.
            No.









Administrative staff
4
4
-
-



Operations staff
23
24
-
-



Management staff
8
8
2
2



Construction staff
1
1
-
-



Marketing staff
1
1
-
-



Sales staff
3
3
-
-

40
41
2
2


8.


Director's remuneration



The highest paid director received remuneration of £153,770 (2023 - £115,669).

The value of the Group's contributions paid to a defined contribution pension scheme in respect of the highest paid director amounted to £1,321 (2023 - £1,399).

Page 25

 
KRR BASICO LTD
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JULY 2024

9.


Interest payable and similar expenses

As restated
2024
2023
£
£


Bank interest payable
30,893
35,190

Finance leases and hire purchase contracts
1,108,787
517,550

1,139,680
552,740


10.


Taxation


2024
2023
£
£



Total current tax
-
-

Deferred tax


Origination and reversal of timing differences
(217,776)
714,303

Total deferred tax
(217,776)
714,303


(217,776)
714,303
Page 26

 
KRR BASICO LTD
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JULY 2024
 
10.Taxation (continued)


Factors affecting tax charge for the year

The tax assessed for the year is lower than (2023 - higher than) the standard rate of corporation tax in the UK of 25% (2023 - 25%). The differences are explained below:

2024
2023
£
£


Profit on ordinary activities before tax
520,851
785,641


Profit on ordinary activities multiplied by standard rate of corporation tax in the UK of 25% (2023 - 25%)
130,213
196,410

Effects of:


Expenses not deductible for tax purposes, other than goodwill amortisation and impairment
12,279
18,715

Capital allowances for year in excess of depreciation
(1,867,991)
(1,218,195)

Utilisation of tax losses
-
(204,268)

Adjustments to tax charge in respect of prior periods
(125,552)
1,303

Short-term timing difference leading to an increase (decrease) in taxation
(217,776)
714,303

Book profit on chargeable assets
134,354
83,314

Unrelieved tax losses carried forward
1,716,697
1,122,721

Total tax charge for the year
(217,776)
714,303


Factors that may affect future tax charges

There were no factors that may affect future tax charges.


11.


Contributions

2024
2023
£
£


Contributions paid in the year
882,503
2,029,906

882,503
2,029,906


12.


Tangible fixed assets

Group





Page 27

 
KRR BASICO LTD
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JULY 2024

           12.Tangible fixed assets (continued)


Short-term leasehold property
Plant and machinery
Motor vehicles
Fixtures and fittings
Computer equipment

£
£
£
£
£



Cost or valuation


At 1 August 2023
18,283
23,515,751
2,924,966
103,348
-


Additions
-
10,676,216
331,511
-
9,470


Disposals
-
(10,085,363)
(233,130)
-
-


Transfers between classes
-
(30,000)
30,000
-
-



At 31 July 2024

18,283
24,076,604
3,053,347
103,348
9,470



Depreciation


At 1 August 2023
914
8,770,030
914,125
81,621
-


Charge for the year on owned assets
1,828
2,624,987
402,804
9,531
905


Disposals
-
(5,395,572)
(139,551)
-
-


Transfers between classes
-
(64,043)
64,043
-
-



At 31 July 2024

2,742
5,935,402
1,241,421
91,152
905



Net book value



At 31 July 2024
15,541
18,141,202
1,811,926
12,196
8,565



At 31 July 2023
17,369
14,745,721
2,010,841
21,727
-
Page 28

 
KRR BASICO LTD
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JULY 2024

           12.Tangible fixed assets (continued)


Total

£



Cost or valuation


At 1 August 2023
26,562,348


Additions
11,017,197


Disposals
(10,318,493)


Transfers between classes
-



At 31 July 2024

27,261,052



Depreciation


At 1 August 2023
9,766,690


Charge for the year on owned assets
3,040,055


Disposals
(5,535,123)


Transfers between classes
-



At 31 July 2024

7,271,622



Net book value



At 31 July 2024
19,989,430



At 31 July 2023
16,795,658




The net book value of land and buildings may be further analysed as follows:


2024
2023
£
£

Short leasehold
15,541
17,369

15,541
17,369


Page 29

 
KRR BASICO LTD
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JULY 2024

           12.Tangible fixed assets (continued)

The net book value of assets held under finance leases or hire purchase contracts, included above, are as follows:


2024
2023
£
£



Plant and machinery
18,141,202
14,745,721

Motor vehicles
1,811,926
2,010,841

19,953,128
16,756,562


13.


Fixed asset investments

Company





Investments in subsidiary companies

£



Cost or valuation


At 1 August 2023
201



At 31 July 2024
201





Subsidiary undertakings


The following were subsidiary undertakings of the Company:

Name

Registered office

Class of shares

Holding

KKB Plant Services Limited
Alpha House, Culpeper Close, Medway City Estate, Rochester, Kent, ME2 4HU
Ordinary
100%
KKB Fleet Services Limited
As above
Ordinary
100%
KKB Remediation Limited
As above
Ordinary
100%
KKB Recycled Roadways Limited
As above
Ordinary
100%

Page 30

 
KRR BASICO LTD
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JULY 2024
Subsidiary undertakings (continued)

The aggregate of the share capital and reserves as at 31 July 2024 and the profit or loss for the year ended on that date for the subsidiary undertakings were as follows:

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

KKB Plant Services Limited
2,912,884
32,959

KKB Fleet Services Limited
790,832
162,278

KKB Remediation Limited
2,823,218
552,412

KKB Recycled Roadways Limited
1
-


14.


Stocks

Group
Group
2024
2023
£
£

Raw materials, consumables and work in progress
1,758,757
518,737

1,758,757
518,737



15.


Debtors

Group

Group
As restated
Company

Company
As restated
2024
2023
2024
2023
£
£
£
£


Trade debtors
1,875,265
1,261,058
-
-

Other debtors
1,900,529
1,192,991
133
3,114

Prepayments and accrued income
82,455
63,230
-
-

3,858,249
2,517,279
133
3,114


Page 31

 
KRR BASICO LTD
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JULY 2024

16.


Creditors: Amounts falling due within one year

Group

Group
As restated
Company

Company
As restated
2024
2023
2024
2023
£
£
£
£

Bank overdrafts
98,344
-
-
-

Trade creditors
2,108,675
1,031,650
-
18,072

Other taxation and social security
107,608
79,982
-
-

Obligations under finance lease and hire purchase contracts
5,498,133
3,679,729
-
-

Other creditors
161,359
152,066
-
-

Accruals and deferred income
85,043
168,267
-
-

8,059,162
5,111,694
-
18,072


The finance leases are secured against the asset themselves. Interest is charged at a fix rate throughout the term of the lease.


17.


Creditors: Amounts falling due after more than one year

Group

Group
As restated
2024
2023
£
£

Net obligations under finance leases and hire purchase contracts
10,205,323
7,091,243

10,205,323
7,091,243


The finance leases are secured against the asset themselves. Interest is charged at a fix rate throughout the term of the lease.



Page 32

 
KRR BASICO LTD
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JULY 2024

18.


Hire purchase and finance leases


Minimum lease payments under hire purchase fall due as follows:

Group

Group
As restated
2024
2023
£
£

Within one year
5,498,133
3,679,729

Between 1-5 years
10,205,323
7,091,243

15,703,456
10,770,972

The finance leases are secured against the asset themselves. Interest is charged at a fix rate throughout the term of the lease.


19.


Deferred taxation


Group



2024


£






At beginning of year
1,152,422


Charged to profit or loss
(151,037)


Utilised in year
(66,739)



At end of year
934,646

Company


2024






At end of year
-
The provision for deferred taxation is made up as follows:

Group
Group
2024
2023
£
£

Accelerated capital allowances
4,196,318
1,971,693

Tax losses carried forward
(3,261,672)
(819,271)

934,646
1,152,422

Page 33

 
KRR BASICO LTD
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JULY 2024

20.


Share capital

2024
2023
£
£
Allotted, called up and fully paid



103 (2023 - 103) Ordinary shares of £1.00 each
103
103
22 (2023 - 22) A Ordinary shares of £1.00 each
22
22
11 (2023 - 11) B Ordinary shares of £1.00 each
11
11

136

136



21.


Reserves

Merger Reserve

The merger reserve represents the difference between the nominal value of the shares issued and the investment acquired.

Profit and loss account

Includes all current and prior period retained profit and losses and current year's profit.


22.


Prior year adjustment

The prior year adjustment has resulted in an increase of creditors of £262,693 and a decrease in reserves of £262,693 for the year ended 31st July 2023, relating to hire purchase to reflect the correct nature of the hire purchase interest charged.
Furthermore, other debtors have been adjusted to present the true nature of this amount in relation to the year ended 31st July 2022, which has given rise to a prior year adjustment. The prior year adjustment has resulted in a decrease of other debtors of £239,514 and a decrease in reserves of £239,514 for the year ended 31st July 2023.


23.


Pension commitments

The amount recognised in the profit or loss as an expense in relation to defined contribution plans was £81,023 (2023: £63,197).

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KRR BASICO LTD
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JULY 2024

24.


Commitments under operating leases

At 31 July 2024 the Group and the Company had future minimum lease payments due under non-cancellable operating leases for each of the following periods:


Group
Group
2024
2023
£
£

Not later than 1 year
196,000
45,000

196,000
45,000

Operating lease commitments are due to KKB Prop Co Limited - a connected party. See note 26, Related party transactions.


25.


Related party transactions

The company has identified the following transactions which fail to be disclosed under terms of FRS 102 ' Related Party Transactions'.
At the year end, KKB Propco Limited owed the group £242,134 (2023: £245,165), which is included in the other debtors.
At the year end, Recycled Roadways Limited owed the group £1,116,248 (2023: £604,443), which is included in other debtors. 
Both KKB Propco Limited and Recycled Roadways Limited are deemed to be related parties due to having a common ultimate controlling party


26.


Controlling party

The ultimate controlling party is KRR Basico Trustee Limited, a company registered in England and Wales.

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