REGISTERED NUMBER: 00543552 (England and Wales)

Financial Statements for the Year Ended 31 December 2024

for

Kee Process Limited

Page

Company Information

1

Balance Sheet

2

Notes to the Financial Statements

3

DIRECTORS:

R I Smith

L O Barwick-Smith

SECRETARY:

L O Barwick-Smith

REGISTERED OFFICE:

College Road North

Aston Clinton

Aylesbury

Buckinghamshire

HP22 5EZ

REGISTERED NUMBER:

00543552 (England and Wales)

AUDITORS:

DUX Advisory Limited

Chartered Accountants and

Statutory Auditors

Kennel Club House

Gatehouse Way

Aylesbury

Buckinghamshire

HP19 8DB

FIXED ASSETS

Tangible assets

4

1,167,248

1,194,546

CURRENT ASSETS

Stocks

730,593

445,951

Debtors

5

916,099

704,826

Investments

6

927,567

-

Cash at bank and in hand

1,562,167

2,023,881

4,136,426

3,174,658

CREDITORS

Amounts falling due within one year

7

1,604,287

1,276,592

NET CURRENT ASSETS

2,532,139

1,898,066

TOTAL ASSETS LESS CURRENT LIABILITIES

3,699,387

3,092,612

PENSION LIABILITY

12

(12,254,000

)

(13,713,000

)

NET LIABILITIES

(8,554,613

)

(10,620,388

)

CAPITAL AND RESERVES

Called up share capital

9

8,000

8,000

Share premium

14,900

14,900

Revaluation reserve

10

383,761

383,761

Fair value reserve

10

10,003,000

8,193,000

Retained earnings

(18,964,274

)

(19,220,049

)

SHAREHOLDERS' FUNDS

(8,554,613

)

(10,620,388

)

The financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime.

In accordance with Section 444 of the Companies Act 2006, the Income Statement has not been delivered.

The financial statements were approved by the Board of Directors and authorised for issue on 21 August 2025 and were signed on its behalf by:

R I Smith - Director

1.	STATUTORY INFORMATION

Kee Process 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 Company Information page.

2.	ACCOUNTING POLICIES

Basis of preparing the financial statements

These financial statements have been prepared in accordance with Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" including the provisions of Section 1A "Small Entities" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention.

The accounts have been prepared on a going concern basis. The accounts are presented in £ sterling and are rounded to the nearest £.

Going concern

The company has a significant liability in respect of the defined benefit pension scheme as at 31 December 2024 of £12,254,000 (2023: £13,713,000). This liability is calculated in accordance with the requirements of Financial Reporting Standard 102. Annual contributions are paid in accordance with the advice of the Scheme Actuary and the payments are included in the company's financial forecasts.

In September 2013 the Scheme Trustees and the company, with the guidance of the Scheme Actuary, prepared an updated Schedule of Scheme Conditions and an updated Recovery Plan. This has been agreed by the Pensions Regulator. The Recovery Plan requires minimum contributions payments to be made each calendar year up to and including December 2047. The directors consider this Recovery Plan shows a fair estimate of the Scheme deficit on the company and the amount which the company will be required to fund in future years.

Significant judgements and estimates

In preparing the financial statements it is necessary to make certain judgements, estimates and assumptions that affect the amounts recognised in the financial statements. These assumptions are reassessed annually as part of the financial statement preparation process.

The critical judgments that the directors have made in the process of applying the company's accounting policies that have the most significant effect on the statutory financial statements are discussed below:

i. Depreciation of fixed assets

The company establishes depreciation policies to write off assets over their useful economic life.

ii. Recoverability of Debtors

The company establishes a provision for debtors that are estimated not to be recoverable. When assessing recoverability, the directors have considered factors such as the ageing of debtors, past experience of recoverability and the credit profile of individual or groups of customers.

i.i.i. Impairment of Stocks

The company assesses stocks for impairment at each reporting date.

Turnover

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

Turnover is measured at the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. Turnover from the sale of goods is recognised when goods have been delivered to customers such that risks and rewards of ownership have transferred to them. Turnover from the rendering of services is recognised by reference to the stage of completion of the contract. The stage of completion of a contract is measured by comparing the costs incurred for work performed to date to the total estimated contract costs.

Tangible fixed assets

Tangible fixed assets are initially recognised at cost and subsequently measured at cost less accumulated depreciation and impairment. Where parts of an item of tangible fixed assets have different useful lives, they are accounted for as a separate item of tangible fixed assets.

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

Freehold buildings

2% on cost

Plant and machinery

10%-20% on cost

Fixtures and fittings

20% on cost

Motor vehicles

20% on cost

Stocks

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

At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of inventories over its estimated selling prices less costs to complete the sale is recognised as an impairment loss. Reversals of impairment losses are also recognised in the profit or loss.

Financial instruments

The company has elected to apply the provisions of Section 11 'Basic Financial Instruments' and Section 12 'Other Financial Instruments issues' of FRS 102 to all of its financial instruments

Financial instruments are recognised in the company's balance sheet when the company becomes party to the contractual provisions of the instrument.

Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability.

Basic financial assets

Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financial transaction, where the transaction is measured at present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.

Trade debtors, loans and other receivables that have fixed or determinable payments that are not quoted in an active market are classified as 'loans and receivables'. Loans and receivables are measured at amortised cost using the effective interest method, less any impairment.

Interest is recognised by applying the effective interest rate, except for short-term receivables when the recognition of interest would be immaterial. The effective interest method is a method of calculating the amortised cost of a debt instrument and of allocating the interest income over the relevant period. The effective interest rate is the rate that exactly discounts estimated future cash receipts through the expected life of the debt instrument to the net carrying amount on initial recognition.

Classification of financial liabilities

Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the asset of the company after deducing all of its liabilities.

Basic financial liabilities

Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value if payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

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

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

Taxation

Taxation for the year comprises current and deferred tax. 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.

Current or deferred taxation assets and liabilities are not discounted.

Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date.

Deferred tax

Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date.

Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference.

Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits.

Foreign currencies

Assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the balance sheet date. Transactions in foreign currencies are translated into sterling at the rate of exchange ruling at the date of transaction. Exchange differences are taken into account in arriving at the operating result.

Hire purchase and leasing commitments

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

Assets held under finance leases and hire purchase contracts are capitlalised and depreciated over their useful lives. The corresponding lease or hire purchase obligation is treated in the balance sheet as a liability. The interest element of rental obligations is charged to the profit and loss account over the period of the lease at a constant proportion of the outstanding balance of capital payments

Pension costs and other post-retirement benefits

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

The cost of providing benefits under defined benefit plans is determined separately for each plan using the projected unit credit method, and is based on actuarial advice.

The change in the net defined benefit liability arising from employee service during the year is recognised as an employee cost.The cost of plan introductions, benefit changes, settlements and curtailments are recognised as an expense in measuring profit or loss in the period in which they arise.

The net interest element is determined by multiplying the net defined benefit liability by the discount rate, taking into account any changes in the net defined benefit liability during the period as a result of contribution and benefit payments. The net interest is recognised in profit or loss as other finance revenue or cost.

Remeasurement changes comprise actuarial gains and losses, the effect of the asset ceiling and the return on the net defined benefit liability excluding amounts included in net interest. These are recognised immediately in other comprehensive income in the period in which they occur and are not reclassified to profit and loss in subsequent periods.

The net defined benefit pension asset or liability in the balance sheet comprises the total for each plan of the present value of the defined benefit obligation (using a discount rate based on high quality corporate bonds), less the fair value of plan assets out of which the obligations are to be settled directly. Fair value is based on market price information, and in the case of quoted securities is the published bid price. The value of a net pension benefit asset is limited to the amount that may be recovered either through reduced contributions or agreed refunds from the scheme.

Cash and cash equivalents

Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-terms liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

3.	EMPLOYEES AND DIRECTORS

The average number of employees during the year was 27 (2023 - 26 ) .

4.	TANGIBLE FIXED ASSETS

Plant and

Land and

machinery

buildings

etc

Totals

£

£

£

COST

At 1 January 2024

and 31 December 2024

1,300,554

917,801

2,218,355

DEPRECIATION

At 1 January 2024

179,750

844,059

1,023,809

Charge for year

14,000

13,298

27,298

At 31 December 2024

193,750

857,357

1,051,107

NET BOOK VALUE

At 31 December 2024

1,106,804

60,444

1,167,248

At 31 December 2023

1,120,804

73,742

1,194,546

Included in the cost of land and buildings is freehold land of £600,554 (2023: £600,554) which is not depreciated.

The company applied the transitional arrangements of section 35 of FRS102 and used a previous valuation as deemed cost of land and buildings freehold. The valuation was carried out by Philip Mawby BSc (Hons) MRICS of Duncan Bailey Kennedy Commercial Property Consultants as at 2 September 2011.

On an historical cost basis, land and buildings would be included at cost of £993,554 (2023: 993,554) and accumulated depreciation of £185,000 (2023: £ 177,000).

5.

DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

31.12.24

31.12.23

£

£

Trade debtors

549,238

502,402

Amounts owed by group undertakings

15,298

-

Other debtors

351,563

202,424

916,099

704,826

6.	CURRENT ASSET INVESTMENTS

31.12.24

31.12.23

£

£

Unlisted investments

927,567

-

7.

CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

31.12.24

31.12.23

£

£

Trade creditors

135,251

252,027

Amounts owed to group undertakings

-

13,301

Taxation and social security

142,313

97,934

Other creditors

1,326,723

913,330

1,604,287

1,276,592

8.	SECURED DEBTS

Legal charges, both fixed and floating, are registered at Companies House by Lloyds Bank PLC in relation to a security over cash deposits held.

9.	CALLED UP SHARE CAPITAL

Allotted, issued and fully paid:

Number:

Class:

Nominal

31.12.24

31.12.23

value:

£

£

4,000

Ordinary A shares

1

4,000

4,000

4,000

Ordinary B shares - non voting

1

4,000

4,000

8,000

8,000

10.

RESERVES

Fair

Revaluation

value

reserve

reserve

Totals

£

£

£

At 1 January 2024

383,761

8,193,000

8,576,761

Actuarial gain on defined

benefit pension plan

-

1,810,000

1,810,000

At 31 December 2024

383,761

10,003,000

10,386,761

The fair value reserve contains actuarial gains on the defined benefit pension plan over the years. Historically actuarial movements have been accounted for within retained earnings.

11.	DISCLOSURE UNDER SECTION 444(5B) OF THE COMPANIES ACT 2006

The Report of the Auditors was unqualified.

Bianca Permal (Senior Statutory Auditor)

for and on behalf of DUX Advisory Limited

12.	EMPLOYEE BENEFIT OBLIGATIONS

The amounts recognised in the balance sheet are as follows:

Defined benefit

pension plans

31.12.24

31.12.23

£

£

Present value of funded obligations

(24,715,000

)

(27,708,000

)

Fair value of plan assets

12,461,000

13,995,000

(12,254,000

)

(13,713,000

)

Present value of unfunded obligations

-

-

Deficit

(12,254,000

)

(13,713,000

)

Net liability

(12,254,000

)

(13,713,000

)

The amounts recognised in profit or loss are as follows:

Defined benefit

pension plans

31.12.24

31.12.23

£

£

Current service cost

-

-

Net interest from net defined benefit asset/liability

651,000

635,000

Past service cost

-

-

651,000

635,000

Actual return on plan assets

(232,000

)

484,000

Changes in the present value of the defined benefit obligation are as follows:

Defined benefit

pension plans

31.12.24

31.12.23

£

£

Opening defined benefit obligation

27,708,000

27,532,000

Interest cost

1,291,000

1,352,000

Actuarial losses/(gains)

(2,682,000

)

347,000

Benefits paid

(1,602,000

)

(1,523,000

)

24,715,000

27,708,000

Changes in the fair value of scheme assets are as follows:

Defined benefit

pension plans

31.12.24

31.12.23

£

£

Opening fair value of scheme assets

13,995,000

14,884,000

Contributions by employer

300,000

150,000

Expected return

640,000

717,000

Actuarial gains/(losses)

(872,000

)

(233,000

)

Benefits paid

(1,602,000

)

(1,523,000

)

12,461,000

13,995,000

The amounts recognised in other comprehensive income are as follows:

Defined benefit

pension plans

31.12.24

31.12.23

£

£

Actuarial gains/(losses)

1,810,000

(580,000

)

1,810,000

(580,000

)

The major categories of scheme assets as amounts of total scheme assets are as follows:

Defined benefit

pension plans

31.12.24

31.12.23

£

£

Cash and cash equivalents

272,000

268,000

Equity instruments

4,609,000

4,983,000

Debt instruments

6,119,000

7,155,000

Real estate

889,000

1,014,000

Other

572,000

575,000

12,461,000

13,995,000

Principal actuarial assumptions at the balance sheet date (expressed as weighted averages):

31.12.24

31.12.23

Discount rate

5.50%

4.80%

13.	DIRECTORS' ADVANCES, CREDITS AND GUARANTEES

The following advances and credits to a director subsisted during the years ended 31 December 2024 and 31 December 2023:

31.12.24

31.12.23

£

£

M I R Smith

Balance outstanding at start of year

806

806

Amounts repaid

(806

)

-

Amounts written off

-

-

Amounts waived

-

-

Balance outstanding at end of year

-

806

14.	RELATED PARTY DISCLOSURES

The company supplies operation, administrative and management services to an associated company, KEE Services Limited. One director of KEE Process Limited is a director of KEE Services Limited. The total value of these services during the year was £150,000 (2023: £132,000). Also during the year the company made sales to KEE Services Limited of £516,290 (2023: £456,319) and made purchases from KEE Services Limited of £59,671 (2023: £110,129).

At 31 December 2024, the balance due from KEE Services Limited amounted from £15,298 (2023: £13,301 due to KEE Services Limited)

One of the directors of KEE Process Limited is also a Trustee of the KEE Group Pension Scheme. The administrative costs of the pension scheme are borne by the company.

15.	ULTIMATE CONTROLLING PARTY

M I R Smith and Ms L J Smith are jointly the ultimate controlling party of the company.