REGISTERED NUMBER: 02255591 (England and Wales)

Strategic Report, Report of the Director and

Financial Statements for the Year Ended 31 December 2024

for

Kammac Limited

Page

Company Information

1

Strategic Report

2

Report of the Director

5

Report of the Independent Auditors

9

Income Statement

13

Other Comprehensive Income

14

Balance Sheet

15

Statement of Changes in Equity

16

Cash Flow Statement

17

Notes to the Cash Flow Statement

18

Notes to the Financial Statements

19

DIRECTOR:

M Nilsson

SECRETARY:

Oakwood Corporate Secratary Limited

REGISTERED OFFICE:

3rd Floor

1 Ashley Road

Altrincham

Cheshire

WA14 2DT

REGISTERED NUMBER:

02255591 (England and Wales)

AUDITORS:

Haines Watts Liverpool Limited

Pacific Chambers

11-13 Victoria Street

Liverpool

Merseyside

L2 5QQ

The director presents his strategic report for the year ended 31 December 2024.

PRINCIPAL ACTIVITY

The principal activities of the company during the year continued to be Warehousing, Distribution, Onsite Logistics and Value-Added Services.

REVIEW OF BUSINESS

In November 2023 Kammac Ltd was sold by its owners to Elanders AB, a Global Logistics Company focused on Supply Chain Solutions and Print & Packaging solutions with over 115 locations across Europe, Americas, and Asia.

Over the course of 2024 the company has experienced a significant decline in sales across all sectors, mainly due to the declining economic environment and the ensuing reduction in customer demand.

The impact of National Minimum Wage increases was also significant. Whilst every effort was made to manage the headcount of the business in line with the changing sales profile, and actual spend year on year was reduced, the increase in NMW increased labour cost as a percentage of turnover by 6% causing substantial erosion to the bottom line.

Declining revenues combined with increasing employment costs and the fixed cost base of the business resulted in the company transitioning from profitability to loss making over 2024. Gross profit decreased by 9% from 2023 to 49.1% (2023: 58.1%). The Operating profit margin of the company was -8.5% (2023: 11.3%). The net profits before taxation decreased by £13.5m over the same period for 2023.

To manage the fixed cost base relative to the declining sales, the decision was taken to close one site in 2024. Further restructuring of both site footprint and personnel has taken place in early 2025 with a view to returning the business to a profitable position over the coming financial year.

Despite the challenges to profitability, the business closed the year with a strong balance sheet and a healthy cash position.

DEVELOPMENT AND PERFORMANCE OF THE BUSINESS

The company success is driven by our strength in working closely with our customers and their individual requirements. This can be delivered with investment in innovation, people, systems, and technology to retain opportunity whilst also assisting in the development of new relationships.

Contracts which are held are regularly reviewed. Costs are continually monitored with bench marking exercises being undertaken on a regular basis to determine best practice and service.

PRINCIPAL RISKS AND UNCERTAINTIES

The business monitors any key risks that could be considered material enough to have an adverse effect on its activities. By reviewing operational and financial performance, The Board and Senior Management are able to identify any such risks. As well as recognising any new challenges, the company also makes sure it keeps ahead of current best practice within its market sector.

The company has invested in a robust compliance team that ensures the business adheres to external rules and internal controls. This minimises environmental, health and safety, quality, social and process risks within the business.

Financial risk management

The company's operations expose it to a variety of financial risks.

Credit risk:

The company mitigates this risk by undertaking credit checks on new and existing customers before sales are made.

Price risk:

Since acquisition, Kammac has continued to take advantage of Group buying power and is committed to investment to increase efficiencies and remain competitive in the marketplace.

Interest rate risk:

The company is only exposed to interest rate fluctuations on loans from group.

Liquidity risk:

The company finances its investments and acquisitions through loans from Elanders AB (publ) and as such the directors consider that the only liquidity risk is that of insolvency at a group level.

Foreign exchange risk:

Minimal transactions are undertaken in foreign currency and so exposure to foreign exchange risk is considered minimal.

SECTION 172(1) STATEMENT

The directors of the group must act collectively and individually with a set of general duties.

These duties are detailed in section 172 of the UK Companies Act 2006. The directors and the group are committed to ensuring that in all business dealings they have regards to:

1) The likely consequences of any long-term decisions made by directors and how these are decided

The KAMMAC board reviewed the company's strategy, as disclosed in the strategic repot, during the year and concluded that it remains appropriate to support the long-term success of the company.

The annual budgeting process supports short-term planning, which forms part of the overall company strategy. Performance of the company is monitored on a weekly and monthly basis against the annual budget, with decision making cognisant of the budget and overall long-term strategy which is geared towards further growth.

2) The interest of the company's employees and how these are engaged in the business each year

Our people are very important to achieving success as a business and are a core component of our business model. We endeavour to recruit high quality, skilled people and give them the opportunity to be successful with the business.

KAMMAC supports local employment at all our respective operational sites, and we have several initiatives in place to train and develop people, including a 'Warehouse to wheels' driver training programme. KAMMAC also supports staff through our apprenticeship scheme.

There is an active programme for employee engagement that runs each year, and we have also introduced an in-house quality excellence programme that aims to further enhance the skills of our people and promote a high-performance culture.

The Board has ultimate responsibility for ensuring that the company's decisions consider the interests of our employees.

3) The details of business relationships with customers and suppliers and other key stakeholders and how the directors ensure needs of these are met

Managing the company's relationships with suppliers and customer is critical in ensuring that KAMMAC delivers on its strategy. Management at all levels are dedicated to ensuring that we maintain an ongoing, expedient and always available dialogue with customers and suppliers.

4) The impact of the company's trading on the local community and the general environmental impact of the trade

KAMMAC seeks to have a positive impact on communities in which it operates by ensuring that all staff act with integrity and respect.

KAMMAC seeks to minimise the environmental impact of our operations. Further details are provided in the Energy and Carbon report contained within the financial statements.

5) Details of how the directors maintain the company's reputation and high standards of conduct

KAMMAC regularly reviews and updates, where appropriate, its business conduct and ethics policies, and ensures that these are positively communicated to employees, customers and suppliers. Appropriate training is provided to relevant employees on a regular basis to reinforce the Company policies, which includes specific anti-bribery, Modern slavery and equal opportunities policies. KAMMAC's business ethics and conduct policies are approved by the board and are communicated to all relevant stakeholders.

6) Details of how the directors ensure the need to act fairly between all members

KAMMAC always seeks to ensure that its communications are transparent, honest, and fair, and that Its actions are in accordance with the company's stated strategic aims to promote long-term success for the company.

CORPORATE AND SOCIAL RESPONSIBILITY

The company recognises its responsibilities in terms of equality and human rights towards its employees and individuals involved with the company. To these ends a high priority is given to ethical considerations in supplier and employee selection and partnership. The company has well established codes in respect of employee welfare and respect for the community. The company is aware of its environmental responsibilities, and operates best practices to fulfil these.

POST BALANCE SHEET EVENTS

Product volumes across the board for warehousing, value added services and transport are expected to be consistent heading into 2025. An activity to rationalise warehouse space and increase utilised capacity is underway to maximise both utilisation and profit generation.

The business always endeavours to identify any potential risks to activities, and adapt the workplace if required for its employees and processes, to enable continuity.

The business will continue to make key strategic decisions based on the constant changes which are presented.

ON BEHALF OF THE BOARD:

M Nilsson - Director

16 April 2025

The director presents his report with the financial statements of the company for the year ended 31 December 2024.

DIVIDENDS

No dividends will be distributed for the year ended 31 December 2024.

DIRECTORS

Mr M Nilsson

Mr G Carabini (appointed 18 March 2024)

A Wikner - resigned 1 May 2024

G Carabini ceased to be a director after 31 December 2024 but prior to the date of this report.

STREAMLINED ENERGY AND CARBON REPORTING

In line with the Streamlined Energy and Carbon Reporting legislation, the company is required to report its energy consumption and greenhouse gas emissions arising in the UK. All scope 1 & 2 sources of energy and emissions have been disclosed as well as mandatory scope 3 sources of energy and emissions.

In comparison with our previous financial period, our overall energy consumption has decreased by 19.5% or 6,203 MWh, and our total (market based) greenhouse gas emissions have decreased by 40% or 2,730 tCO2e. Most sites are now supplied by renewable electricity and there has been a significant increase in HVO Fuel consumption and reduction in diesel.

Notable energy efficiency actions in the past 12 months:

-

Renewable electricity contracts at over 75% of sites.

-

Zero waste to landfill.

-

Mission 2020: Zero Emissions Road Map published.

-

Over 85% of employees are now part of the Go Green Team.

Source of Energy & Emissions

Energy Consumption(MWh)

GHG Emissions(tCO2e)

2024

2023

2024

2023

Combustion of Natural Gas

427.96

610.77

78.27

111.73

Combustion of Fuel in Company Vehicles

26,855.80

33,320.48

6,419.07

7,966.15

Combustion of HVO Fuel

497.78

5.86

-

0.02

Other Activities inc. Process & Fugitive

-

515.61

Scope 1 Total

27,781.54

33,937.11

6,497.35

8,593.51

Generation of Purchased Electricity

4,019.55

4,067.47

832.25-690.8

842.27

Scope 2 Total

4,019.55

4,067.47

141.38

842.27

Grand Total

31,801.10

38,004.58

6,638.72

9,435.78

Intensity per £m Turnover

600.02

473.50

125.26

117.56

METHODOLOGY

CONVERSION FACTORS

All conversion factors and fuel properties used in this disclosure have been taken from the 2024 “UK Government Greenhouse Gas Conversion Factors for Company Reporting” published by the Department for Energy Security & Net Zero (DESNZ) and the Department for Environment, Food & Rural Affairs (DEFRA). All greenhouse gas emissions have been expressed in terms of their carbon dioxide equivalence. A full list of conversion factors can be viewed overleaf.

Fuel

Conversion

Factor

Electricity: UK

kg CO2e/kWh

0.20707

Natural gas (Standard UK grid)

kg CO2e/kWh (Gross CV)

0.18293

Diesel: litres

kg CO2e/Litre

2.51206

kg CO2e/kWh (Gross CV)

0.23908

HVO Fuel: litres

kg CO2e/litre

0.03558

Refrigerant: R410A

kg CO2e/kg

1,924

Refrigerant: R32

kg CO2e/kg

677

UTILITIES

Where possible, energy consumption expressed in kilowatt-hours has been taken from suppliers' invoices. During 2024 Kammac began a renewable REGO backed electricity contract at a number of the sites and the emissions have been adjusted accordingly.

TRANSPORT

Diesel and HVO Fuels delivered to site were used during the period. The conversion factors for forecourt blends have been used to calculate greenhouse gas emissions and underlying energy use.

OTHER FUELS & EMISSIONS

Two types of refrigerant have been identified for 2024 - R410A and R32.

STATEMENT OF DIRECTOR'S RESPONSIBILITIES

The director is responsible for preparing the Strategic Report, the Report of the Director and the 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 United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). 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 of the profit or loss of the company for that period. In preparing these financial statements, the director is required to:

-	select suitable accounting policies and then apply them consistently;

-	make judgements and accounting estimates that are reasonable and prudent;

-	state whether applicable 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 company 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 enable him to ensure that the financial statements comply with the Companies Act 2006. He is also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS

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

AUDITORS

The auditors, Haines Watts Liverpool Limited, will be proposed for re-appointment at the forthcoming Annual General Meeting.

ON BEHALF OF THE BOARD:

M Nilsson - Director

16 April 2025

Opinion

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

In our opinion the financial statements:

-	give a true and fair view of the state of the company's affairs as at 31 December 2024 and of its loss 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 company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the 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 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.

Other information

The director is responsible for the other information. The other information comprises the information in the Strategic Report and the Report of the Director, but does not include the financial statements and our Report of the Auditors thereon.

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

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

Opinions on other matters prescribed by the Companies Act 2006

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

-	the information given in the Strategic Report and the Report of the Director for the financial year for which the financial statements are prepared is consistent with the financial statements; and

-	the Strategic Report and the Report of the Director 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 company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic Report or the Report of the Director.

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

-	adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or

-	the 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 director

As explained more fully in the Statement of Director's Responsibilities set out on page seven, 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 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 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 company or to cease operations, or has no realistic alternative but to do so.

Auditors' responsibilities for the audit of the financial statements

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

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

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.

We assessed the susceptibility of the company's financial statements to material misstatement, including how fraud might occur. Audit procedures performed by the company engagement team included:

-

Identifying and assessing the design effectiveness of controls management has in place to prevent

and detect fraud;

-

Understanding how those charged with governance considered and addressed the potential for

override of controls or other inappropriate influence over the financial reporting process;

-

Reviewing financial statements disclosures and testing to supporting documentation to assess

compliance with applicable law and regulations;

-

Challenging assumptions and judgements made by management in its significant accounting

estimates, in particular:

-

Depreciation of fixed assets - we carried out a review and recalculation of depreciation

of fixed assets , and reviewed the estimates of useful economic lives of assets,

-

Provisions for dilapidation - we have reviewed the dilapidation provision for inclusion in the accounts.

-

Tax provisions - we carried out a review and recalculation of tax provisions to assess its

appropriateness for inclusion within the financial statements;

-

Prepayments- we carried out a review and recalculation of prepayments to assess its

appropriateness for inclusion within the financial statements;

-

Accruals - we carried out a review and recalculation of accruals to assess its appropriateness for

inclusion within the financial statements;

-

Accrued Income - we reviewed and recalculated the accrued income to assess its appropriateness

for inclusion within the financial statements;

-

Identifying and testing journal entries, in particular any journal entries posted with unusual account

combinations.

Our audit did not identify any significant matters relating to the detection of irregularities including fraud.

However, despite the audit being planned and conducted in accordance with ISAs (UK) there remains an unavoidable risk that material misstatements in the financial statements may not be detected owing to inherent limitations of the audit, and that by their very nature, any such instances of fraud or irregularity likely involve collusion, forgery, intentional misrepresentations, or the override of internal controls.

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Auditors.

Use of our report

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

Michael Forshaw (Senior Statutory Auditor)

for and on behalf of Haines Watts Liverpool Limited

Pacific Chambers

11-13 Victoria Street

Liverpool

Merseyside

L2 5QQ

16 April 2025

TURNOVER

3

53,097,321

79,886,922

Cost of sales

27,031,259

33,500,491

GROSS PROFIT

26,066,062

46,386,431

Administrative expenses

30,576,508

37,672,677

OPERATING (LOSS)/PROFIT

5

(4,510,446

)

8,713,754

Income from shares in group undertakings

-

364,077

(4,510,446

)

9,077,831

Interest payable and similar expenses

7

27,262

66,403

(LOSS)/PROFIT BEFORE TAXATION

(4,537,708

)

9,011,428

Tax on (loss)/profit

8

(1,109,631

)

2,142,591

(LOSS)/PROFIT FOR THE FINANCIAL YEAR

(3,428,077

)

6,868,837

(LOSS)/PROFIT FOR THE YEAR

(3,428,077

)

6,868,837

OTHER COMPREHENSIVE INCOME

-

-

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

(3,428,077

)

6,868,837

FIXED ASSETS

Tangible assets

9

6,487,906

7,783,118

CURRENT ASSETS

Stocks

10

123,534

139,676

Debtors

11

23,620,253

27,371,794

Cash at bank and in hand

1,337,117

4,132,867

25,080,904

31,644,337

CREDITORS

Amounts falling due within one year

12

12,595,085

11,621,972

NET CURRENT ASSETS

12,485,819

20,022,365

TOTAL ASSETS LESS CURRENT LIABILITIES

18,973,725

27,805,483

CREDITORS

Amounts falling due after more than one year

13

(6,061,654

)

(10,501,038

)

PROVISIONS FOR LIABILITIES

16

(839,268

)

(1,803,565

)

NET ASSETS

12,072,803

15,500,880

CAPITAL AND RESERVES

Called up share capital

17

271,833

271,833

Share premium

18

627,742

627,742

Retained earnings

18

11,173,228

14,601,305

SHAREHOLDERS' FUNDS

12,072,803

15,500,880

The financial statements were approved by the director and authorised for issue on 16 April 2025 and were signed by:

M Nilsson - Director

Called up

share

Retained

Share

Total

capital

earnings

premium

equity

£

£

£

£

Balance at 1 January 2023

271,833

7,732,468

627,742

8,632,043

Changes in equity

Total comprehensive income

-

6,868,837

-

6,868,837

Balance at 31 December 2023

271,833

14,601,305

627,742

15,500,880

Changes in equity

Total comprehensive income

-

(3,428,077

)

-

(3,428,077

)

Balance at 31 December 2024

271,833

11,173,228

627,742

12,072,803

Cash flows from operating activities

Cash generated from operations

1

(353,506

)

6,338,831

Interest paid

(19,728

)

(54,164

)

Interest element of hire purchase payments paid

(7,534

)

(12,239

)

Tax paid

(1,007,059

)

(1,432,204

)

Net cash from operating activities

(1,387,827

)

4,840,224

Cash flows from investing activities

Purchase of tangible fixed assets

(1,379,783

)

(2,770,227

)

Sale of tangible fixed assets

108,954

176,456

Sale of fixed asset investments

-

2

Dividends received

-

364,077

Net cash from investing activities

(1,270,829

)

(2,229,692

)

Cash flows from financing activities

Capital repayments in year

(137,094

)

(200,661

)

Net cash from financing activities

(137,094

)

(200,661

)

(Decrease)/increase in cash and cash equivalents

(2,795,750

)

2,409,871

Cash and cash equivalents at beginning of year

2

4,132,867

1,722,996

Cash and cash equivalents at end of year

2

1,337,117

4,132,867

1.	RECONCILIATION OF (LOSS)/PROFIT BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS

31.12.24

31.12.23

£

£

(Loss)/profit before taxation

(4,537,708

)

9,011,428

Depreciation charges

2,478,981

2,500,090

Loss on disposal of fixed assets

87,060

113,646

Foreign exchange losses

470

-

Exceptional items

(1,245,975

)

-

Finance costs

27,262

66,403

Finance income

-

(364,077

)

(3,189,910

)

11,327,490

Decrease/(increase) in stocks

16,142

(42,750

)

Decrease in trade and other debtors

4,328,629

2,918,060

Decrease in trade and other creditors

(1,508,367

)

(7,863,969

)

Cash generated from operations

(353,506

)

6,338,831

2.	CASH AND CASH EQUIVALENTS

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

Year ended 31 December 2024

31.12.24

1.1.24

£

£

Cash and cash equivalents

1,337,117

4,132,867

Year ended 31 December 2023

31.12.23

1.1.23

£

£

Cash and cash equivalents

4,132,867

1,722,996

3.	ANALYSIS OF CHANGES IN NET FUNDS

At 1.1.24

Cash flow

At 31.12.24

£

£

£

Net cash

Cash at bank and in hand

4,132,867

(2,795,750

)

1,337,117

4,132,867

(2,795,750

)

1,337,117

Debt

Finance leases

(302,490

)

137,094

(165,396

)

(302,490

)

137,094

(165,396

)

Total

3,830,377

(2,658,656

)

1,171,721

1.	STATUTORY INFORMATION

Kammac 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" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention.

Financial Reporting Standard 102 - reduced disclosure exemptions

The company has taken advantage of the following disclosure exemption in preparing these financial statements, as permitted by FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland":

•

the requirements of paragraphs 11.42, 11.44, 11.45, 11.47, 11.48(a)(iii), 11.48(a)(iv), 11.48(b) and 11.48(c).

Critical accounting judgements and key sources of estimation uncertainty

In the application of the company's accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revision 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.

Turnover

Turnover is measured at the fair value of the consideration received or receivable and represents amounts receivable for goods supplied and services rendered, in the normal course of business, and is shown net of Value Added Tax and other sales related taxes. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.

The main turnover streams of the company are warehousing, distribution, onsite logistics and value added services.

Tangible fixed assets

Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life.

Tangible fixed assets are initially measured at cost and subsequently measured at cost, net of depreciation and any impairment losses.

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

Plant and machinery

10% - 20% straight line

Fixtures and fittings

20% straight line

Motor vehicles

8% - 33% straight line

Short leasehold

straight line over the life of the lease

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is credited or charged to the profit or loss.

Depreciation is charged to administration expenses in the statement of comprehensive income.

Stocks

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

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

Financial instruments

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

Basic financial liabilities, including trade, group and other creditors are initially recognised at transaction price, unless the arrangement constitutes a financing transaction, where the debt instrument is measured at present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

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.