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Registered number:
FOR THE YEAR ENDED 31 DECEMBER 2024
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AKV CLADDING PRODUCTS LIMITED
COMPANY INFORMATION
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AKV CLADDING PRODUCTS LIMITED
CONTENTS
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AKV CLADDING PRODUCTS LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2024
The directors present their report and the financial statements for the year ended 31 December 2024.
The directors are responsible for preparing the strategic report, the directors' report and the financial statements in accordance with applicable law and regulations.
In preparing these financial statements, the directors are required to:
∙select suitable accounting policies for the company's financial statements and then apply them consistently;
∙make judgements and accounting estimates that are reasonable and prudent;
∙prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.
The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company's transactions and disclose with reasonable accuracy at any time the financial position of the company and to enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
The profit for the year, after taxation, amounted to £965,235 (2023 - £1,786,702).
During the year a dividend of £1,500,000 was paid.
The directors who served during the year were:
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AKV CLADDING PRODUCTS LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
The board have continued to make significant investments into activities which meet the definition of Research and Development. The board believes this investment is essential to improve standards across the industry as well as improving the range of products and services offered to customers.
The board considers that the R&D projects worked on during the period represent significant advances in technology and experimental development. The R&D work involves developing technologies that enable companies to benefit from the capability these technologies deliver in terms of increased operational efficiency and security Investment into innovative technology and products, in conjunction with further process improvement will continue in order to maximise the performance of the company, and of its customers.
The business review, principal risks and uncertainties and financial key performance indicators are included in the strategic report.
The auditors, Waltons Business Advisers Limited, will be proposed for reappointment in accordance with section 485 of the Companies Act 2006.
This report was approved by the board and signed on its behalf.
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AKV CLADDING PRODUCTS LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2024
The board are pleased to report the results for the year ended 31 December 2024, which represent trade within an increasingly competitive market. Despite these risks, the directors are happy to report that company has maintained an acceptable gross margin, although this has reduced to 26.5% from 27.8%. Turnover has also reduced 11.6% from £16.3m to £14.4m.
Credit risk has continued to be monitored closely, and the directors are happy to accept the level of credit risk exposure. Efforts are made to mitigate this risk through the operation of a credit insurance policy which is reviewed regularly. The directors ensure that written limits are never exceeded. Directors strive to improve relationships with customers and suppliers, rather than just maintaining them. The directors are happy to report that no significant issues arose during the year, and relationships have been maintained. Interest rate risk assessments were carried out at the start of 2024, and the decision was made to settle significant debt that attracted variable rates of interest. This has had no significant detrimental effect of group reserves of cash, given the levels that were in hand at the year end. In the interest of succession, the directors felt that following a number of successful years trade and in recognition of their hard work over a challenging period, that an MBO would be offered to the current senior management team. The directors are delighted to announce that as a result of this offering, AKV Group Limited has welcomed five additional members to the board, while retaining two existing members. Each appointment brings with it significant relevant experience, with each member serving a minimum period of more than ten years. The board feel that this offering will enable to continue to trade in the same manner as before and would like to assure all stakeholders that the dynamic of the company has not, and will not change. Significant efforts have been made to stress test the budgeted management information and forecasts over the next 5 years, and this coupled with the ongoing support of the exiting party, the board feel that the company is not adversely financially affected by the transaction. The transaction has been internally funded and no external debt has been relied upon, meaning that AKV can continue to focus its attention on maintaining and improving customer service and stakeholder relationships.
Various business risks have been discussed within the Business Review, however the directors consider that the level of demand of cladding and cladding products, along with increased competitive pressure, are considered to be the key risks faced by the group.
As with any company, trade receivables are exposed to credit risk. The board feels that given the use of credit insurance and credit reviews these risks are managed to an acceptable level. The general reserves are large enough to cover any current risk.
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AKV CLADDING PRODUCTS LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
The board monitors company performance using a range of indicators, some of the most significant of which
are as follows:- Key performance indicators 2024 2023 2022 2021 2020 Sales growth -11.6% -9.1% 9.0% 48.3% -11.6% Gross margin growth/(reduction) -15.6% -9.2% 9.5% 66.6% -10.2% Gross profit % 26.5% 27.8% 27.8% 27.7% 24.7%
This report was approved by the board and signed on its behalf.
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AKV CLADDING PRODUCTS LIMITED
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF AKV CLADDING PRODUCTS LIMITED
We have audited the financial statements of AKV Cladding Products Limited (the 'company') for the year ended 31 December 2024, which comprise the statement of comprehensive income, the balance sheet, the statement of changes in equity and the related notes, 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).
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 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.
In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.
Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.
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AKV CLADDING PRODUCTS LIMITED
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF AKV CLADDING PRODUCTS LIMITED (CONTINUED)
The other information comprises the information included in the Annual Report other than the financial statements and our auditors' report thereon. The directors are responsible for the other information contained within the Annual Report. 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. 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.
In our opinion, based on the work undertaken in the course of the audit:
∙the information given in the strategic report and the directors' report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
∙the strategic report and the directors' report have been prepared in accordance with applicable legal requirements.
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 directors' report.
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AKV CLADDING PRODUCTS LIMITED
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF AKV CLADDING PRODUCTS LIMITED (CONTINUED)
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 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:
We gained an understanding of the legal and regulatory framework applicable to the company and the area in which it operates, and considered the risk of acts by the company that were contrary to applicable laws and regulations, including fraud. We designed audit procedures to respond to the risk, recognising that the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentations, or through collusion. We focussed on laws and regulations which could give rise to a material misstatement in the financial statements, including, but not limited to, the Companies Act 2006 and UK tax legislation. Our tests included agreeing the financial statement disclosures to underlying supporting documentation and enquiries with management. There are inherent limitations in the audit procedures described above and, the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we would become aware of it. We did not identify any key audit matters relating to irregularities, including fraud. As in all our audits, we also addressed the risk of management override of internal controls, including testing journals, review of provisions and evaluating whether there was evidence of bias by the directors that represented a risk of material misstatement due to fraud. We identified the greatest potential for fraud in the following areas: existence and timing of recognition of income and the posting of unusual journals. We discussed these risks with management and designed audit procedures to test the timing and existence of revenue. We reviewed journals posted during the year and around the year end and around the year to look for potential “window dressing”.
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.
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AKV CLADDING PRODUCTS LIMITED
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF AKV CLADDING PRODUCTS LIMITED (CONTINUED)
This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in an 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.
for and on behalf of
Chartered Accountants
Statutory Auditors
Maritime House
Harbour Walk
The Marina
Teesside
TS24 0UX
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AKV CLADDING PRODUCTS LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2024
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AKV CLADDING PRODUCTS LIMITED
REGISTERED NUMBER: 07683788
BALANCE SHEET
AS AT 31 DECEMBER 2024
The financial statements were approved and authorised for issue by the board and were signed on its behalf on
The notes on pages 12 to 25 form part of these financial statements.
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AKV CLADDING PRODUCTS LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2024
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2023
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AKV CLADDING PRODUCTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
The company is a private company, limited by share capital, incorporated in England and Wales and its registered office is:
Unit 3 Hackworth Industrial Park Shildon DL4 1HF The ultimate parent company is AKV Group Ltd.
2.ACCOUNTING POLICIES
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 management to exercise judgement in applying the company's accounting policies.
The following principal accounting policies have been applied:
The company has taken advantage of the following disclosure exemptions in preparing these financial statements, as permitted by the FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland":
∙the requirements of Section 7 Statement of Cash Flows;
∙the requirements of Section 3 Financial Statement Presentation paragraph 3.17(d).
This information is included in the consolidated financial statements of AKV Group Ltd as at 31 December 2024 and these financial statements may be obtained from Companies House.
The directors, having made due and careful enquiry and preparing forecasts, are of the opinion that the company has, with the support of the invoice factoring arrangement and significant cash reserves, adequate working capital to execute its operations over the next 12 months.
The directors, therefore, have made an informed judgement, at the time of approving the financial statements, that there is reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. As a result the directors have continued to adopt the going concern basis of accounting in preparing the annual financial statements.
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AKV CLADDING PRODUCTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
2.ACCOUNTING POLICIES (CONTINUED)
Revenue, which represents the sale of industrial roofing and architectural cladding ancilliaries, is recognised to the extent that it is probable that the economic benefits will flow to the company and the revenue can be reliably measured. Revenue is measured as the fair value of the consideration received or receivable, excluding discounts and value added tax. The following criteria must also be met before revenue is recognised:
Revenue from the sale of goods is recognised when all of the following conditions are satisfied:
∙the company has transferred the significant risks and rewards of ownership to the buyer;
∙the company retains neither continuing managerial involvement to the degree usually associated with ownership nor effective control over the goods sold;
∙the amount of revenue can be measured reliably;
∙it is probable that the company will receive the consideration due under the transaction; and
∙the costs incurred or to be incurred in respect of the transaction can be measured reliably.
Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives.
Depreciation is provided on the following basis:
Stocks are stated at the lower of cost and net realisable value. 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 balance sheet date, stocks and work in progress are assessed for impairment. If stock and work in progress 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.
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AKV CLADDING PRODUCTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
2.ACCOUNTING POLICIES (CONTINUED)
The company obtains finance in respect of its trade debtors under an invoice discounting agreement. This is regarded as a financing arrangement only, and the gross amount of the factored trade debtors is included in debtors with any advances received against these debts being included in other creditors.
The company only enters into basic financial instrument transactions that result in the recognition of
financial assets and liabilities like trade and other debtors and creditors, and loans from related parties.
The company only enters into basic financial instrument transactions that result in the recognition of financial assets and liabilities like trade and other debtors and creditors, and loans from related parties.
Provisions are made where an event has taken place that gives the group a legal or constructive obligation that probably requires settlement by a transfer of economic benefit, and a reliable estimate can be made of the amount of the obligation.
Provisions are charged as an expense to profit or loss in the year that the group becomes aware of the obligation, and are measured at the best estimate at the balance sheet date of the expenditure required to settle the obligation, taking into account relevant risks and uncertainties. When payments are eventually made, they are charged to the provision carried in the balance sheet. Increases in provisions are generally charged as an expense to profit or loss.
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AKV CLADDING PRODUCTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
2.ACCOUNTING POLICIES (CONTINUED)
The whole of the turnover is attributable to the design, manufacture, and supply of industrial roofing and architectural cladding ancilliaries.
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AKV CLADDING PRODUCTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
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AKV CLADDING PRODUCTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
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AKV CLADDING PRODUCTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
10.TAXATION (CONTINUED)
There were no factors that may affect future tax charges.
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AKV CLADDING PRODUCTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
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AKV CLADDING PRODUCTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
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AKV CLADDING PRODUCTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
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AKV CLADDING PRODUCTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
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AKV CLADDING PRODUCTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
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AKV CLADDING PRODUCTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
Profit & loss account
A composite guarantee exists between all the group companies to Santander UK plc ("the lender").
In relation to the above obligation, AKV Cladding Products Limited has a debenture over all of its assets and undertakings.
Included within other creditors is an amount of £10,876 (1 January 2024: £24,981) in relation to pension contributions.
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AKV CLADDING PRODUCTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
The ultimate parent company is AKV Group Ltd (address: The Old Forge Site, Hackworth Industrial
Park, Byerley Road, Shildon, Co Durham, DL4 1HF) a company incorporated in England and Wales. The consolidated accounts for the group are publicly available from Companies House, Crown Way, Maindy, Cardiff.
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