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Registered number:
For the Year Ended
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FRANK KEY GROUP LIMITED
Company Information
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FRANK KEY GROUP LIMITED
Contents
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FRANK KEY GROUP LIMITED
Strategic report
For the Year Ended 31 December 2024
The directors present their strategic report for the year ended 31 December 2024.
Within this report the directors aim to present a balanced and comprehensive review of the development and performance of the business during the year and its position at the year end. 2024 represented a challenging year for the company and the wider Frank Key Group. Despite the adverse economic conditions, the company continues to have a strong balance sheet and is operating efficiently.
The wider sector struggled in 2024, with volumes falling, as well as deflation in both the purchase and selling prices of building materials. Supply exceeded demand, leading to significant downward pressure on sales and gross margins. Different areas of group performed to differing degrees, with general trade building supplies and tool hire struggling, but retail and online trading showing some growth. General price inflation remained, leading to increases across the majority of our overheads during the year, with the impact of reducing overall profitability. During the year, we completed a rebuild of our main, head office location. This has future-proofed the location and created a first-class site to facilitate future growth, accommodating the needs of the modern builder and DIY customer. This size of this investment (approaching £3m in total) has had a material impact on this year’s financial statements, impacting the balance sheet, reserves and net profit achieved.
The Group has a strong balance sheet and a settled management team. As with other businesses in our sector, any uncertainty will come from external influences, but all indications are that the construction sector activity (specifically the RMI sector and private housing developments) will recover at some point in the future, but as yet we continue to see expectations of sector growth pushed back into the future.
Product supply has been stable during the year, with supply outstripping demand. However, this presents a risk that should demand recover, manufacturers and suppliers of building materials may have reduced their capacities and may struggle to supply the quantity of products required. This could lead to shortages of product, at a time when the sector begins to recover. The main risk we foresee is around customer demand and their purchasing power, our customers confidence has been impacted by government fiscal policies and the continued impact of the rising cost of living will potentially reduce demand within the private RMI sector. Similarly, at a business level, uncertainty delays larger housing projects, at a time when housing targets are increasing (but are unlikely to be met). Uncertainty does present its own risks, mainly with predicting required capacity and credit control, but the Group continues to remain cautious and controlled in looking to exploit opportunities. Group borrowings remain well within our affordability and strong cash flow ensure they are easily serviceable, even if activity were to fall.
We consider that our key financial performance indicators are those that communicate the financial performance and position of the Company as a whole, these being net profit, return on capital employed, current ratio and gearing. With the formation of Frank Key Holdings Limited as the company’s parent, consolidation takes place there, so it is not considered relevant to provide ratios in these accounts.
As the Company is no longer the ultimate parent of the Group and does not trade in its own right, the profit and loss figures are not overly important. The Company still directly holds the shares of the trading subsidiaries and holds some external finance for the trading Group, which continues to be paid down.
Page 1
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FRANK KEY GROUP LIMITED
Strategic report (continued)
For the Year Ended 31 December 2024
This report was approved by the board and signed on its behalf.
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FRANK KEY GROUP 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 judgments 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 loss for the year, after taxation, amounted to £37,004 (2023 - profit £NIL).
During the year dividends of £nil (2023: £nil) were paid to shareholders.
The directors who served during the year were:
The Group will continue to look to grow organically through its existing branch base, building on the success of recent years. We have invested heavily this year and 2025 will have the focus to extract positive value from this. We will look to invest in driving improved efficiencies, but with the current uncertainty in the economy, we will exercise caution in these strategic decisions.
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FRANK KEY GROUP LIMITED
Directors' report (continued)
For the Year Ended 31 December 2024
The auditors, PKF Smith Cooper Audit 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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FRANK KEY GROUP LIMITED
Independent auditors' report to the members of Frank Key Group Limited
We have audited the financial statements of Frank Key Group 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.
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.
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FRANK KEY GROUP LIMITED
Independent auditors' report to the members of Frank Key Group Limited (continued)
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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FRANK KEY GROUP LIMITED
Independent auditors' report to the members of Frank Key Group 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:
Based on our understanding of the Company and industry, we identify the key laws and regulations affecting the Company. We identified that the principal risk of fraud or non-compliance with laws and regulations related to:
∙management bias in respect of accounting estimates and judgements made;
∙management override of control;
∙posting of unusual journals or transactions.
We focussed on those areas that could give rise to a material misstatement in the Company financial statements. Our procedures included, but were not limited to:
∙enquiry of management and those charged with governance around actual and potential litigation and claims, including instances of non-compliance with laws and regulations and fraud;
∙reviewing legal expenditure in the year to identify instances of non-compliance with laws and regulations and fraud;
∙reviewing financial statement disclosures and testing to supporting documentation to assess compliance with applicable 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.
It is the primary responsibility of management, with the oversight of those charged with governance, to ensure that the entity's operations are conducted in accordance with the provisions of laws and regulations and for the prevention and detection of fraud.
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.
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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FRANK KEY GROUP LIMITED
Independent auditors' report to the members of Frank Key Group 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
Statutory Auditors
2 Lace Market Square
Nottingham
NG1 1PB
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FRANK KEY GROUP LIMITED
Statement of comprehensive income
For the Year Ended 31 December 2024
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FRANK KEY GROUP LIMITED
Registered number: 06371399
Balance sheet
As at
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 19 form part of these financial statements.
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FRANK KEY GROUP LIMITED
Statement of changes in equity
For the Year Ended 31 December 2024
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FRANK KEY GROUP LIMITED
Notes to the financial statements
For the Year Ended 31 December 2024
Frank Key Group Limited is a private company limited by shares incorporated in England, United Kingdom. The address of the registered office and the company registration number are given in the Company Information page of these financial statements. The nature of the company's operations and principal activities are given in the Director's Report.
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 judgment in applying the Company's accounting policies (see note 3).
The financial statements are prepared in Sterling which is the functional currency of the company and have been rounded to the nearest £1.
The significant accounting policies in the preparation of these financial statements are set out below. These policies have been consistently applied to all years presented unless otherwise stated.
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);
∙the requirements of Section 33 Related Party Disclosures paragraph 33.7.
This information is included in the consolidated financial statements of Frank Key Holdings Limited as at 31 December 2024 and these financial statements may be obtained from Companies House.
The Company is a parent company that is also a subsidiary included in the consolidated financial statements of a larger group by a parent undertaking established under the law of any part of the United Kingdom and is therefore exempt from the requirement to prepare consolidated financial statements under section 400 of the Companies Act 2006.
The company has net current liabilities at the balance sheet date. In the absence of other funding, the company may in the short term be dependent on the continued support of its subsidiary undertaking, Frank Key (Nottingham) Limited. The directors of Frank Key (Nottingham) Limited have agreed to support the company to meet its liabilities as they fall due, for a period of at least twelve months from the date of approval of these financial statements.
The directors therefore consider it appropriate that the financial statements are prepared on the going concern basis.
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FRANK KEY GROUP LIMITED
Notes to the financial statements
For the Year Ended 31 December 2024
2.Accounting policies (continued)
Rent receivable Rental income is recognised as rent falls due under the terms of the lease. Rentals payable and receivable under operating leases are charged to the Statement of Comprehensive Income on a straight line basis over the period of the lease.
Tangible fixed assets are stated at cost or valuation less accumulated depreciation and accumulated impairment losses. Cost includes costs directly attributable to making the asset capable of operating as intended.
Depreciation is provided on all tangible fixed assets, at rates calculated to write off the cost, less estimated residual value, of each asset on a systematic basis over its expected useful life.
Depreciation is provided on the following basis:
The directors consider the residual value of the freehold property is at least equal to their net book value and therefore depreciation is not charged in the profit and loss account.
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FRANK KEY GROUP LIMITED
Notes to the financial statements
For the Year Ended 31 December 2024
2.Accounting policies (continued)
Revaluation of freehold and investment property The Company carries its freehold property and investment property at fair value, with changes in fair value being recognised in the statement of other comprehensive income and profit and loss. Some of the freehold property and investment property have not been revalued in the year on the basis that the directors do not consider carrying value to be materially different to the fair value.
The whole of the turnover is attributable rent receivable.
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FRANK KEY GROUP LIMITED
Notes to the financial statements
For the Year Ended 31 December 2024
There were no factors that may affect future tax charges.
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FRANK KEY GROUP LIMITED
Notes to the financial statements
For the Year Ended 31 December 2024
Page 16
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FRANK KEY GROUP LIMITED
Notes to the financial statements
For the Year Ended 31 December 2024
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FRANK KEY GROUP LIMITED
Notes to the financial statements
For the Year Ended 31 December 2024
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FRANK KEY GROUP LIMITED
Notes to the financial statements
For the Year Ended 31 December 2024
Profit and loss account
The company is controlled by its parent undertaking, Frank Key Holdings Limited.
The ultimate controlling parties are Mr R M and Mrs S E Sansom by virtue of their shareholding.
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