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Registered number:
(FORMERLY KNOWN AS KNIGHT HARWOOD GROUP LIMITED)
FOR THE YEAR ENDED 31 DECEMBER 2024
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KHG LIMITED
COMPANY INFORMATION
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KHG LIMITED
CONTENTS
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KHG LIMITED
GROUP STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2024
2024 has been another successful year for Knight Harwood, despite ongoing global economic uncertainty and an increase in contractor insolvency, we are pleased to report that the business remains in a positive position. Turnover and profit levels have remained in line with previous years, demonstrating a consistent approach to project size and a focus on collaborative procurement routes. Looking ahead to 2025, we are forecasting controlled growth in turnover as our strong reputation and focus on project delivery have generated opportunities with existing and new clients.
Knight Harwood’s culture and focus is to deliver a first-class product and service, and this attitude has continued to strengthen our reputation and contribute to our success. Our approach is to always work closely with clients, consultants and our supply chain to achieve a successful outcome for all stakeholders including the shareholders of the business.
The financial highlights include the following:
• Turnover - £140.2m (2023 - £156.9m) • Net profit after tax - £4.1m (2023 - £3.2m) • Net assets - £32.8m (2023 - £27.9m) • Cash position - £30.9m (2023 - £29.5m)
In the commercial office sector, we were delighted to secure new projects with repeat clients the Howard De Walden Estate, Great Portland Estates and Hines, alongside our live scheme for Chanel, constructing their new global headquarters in Mayfair. During the year we have completed the final phase of Fredericks Place for the Mercers, which has concluded 4-years of work over three independent projects. Over the next 12-months we see our reputation in the commercial refurbishment and fit-out sectors remaining strong, supported by a healthy pipeline of opportunities already being monitored.
We recognise that the London office market is evolving, with a growing emphasis on creating distinctive spaces that attract the best tenants and a shift towards a ‘retrofit first’ approach by local authorities and developers. With our extensive experience in the sector, we are well positioned to meet the increasing demand for central London retrofit projects. Our proven expertise in structural refurbishment and fit-out work further strengthens our capacity to deliver in this growing market. The residential sector continues to be a key and extremely positive part of our portfolio. We are delivering a variety of schemes for private clients, both in and out of London. Notably, we are constructing two exceptional family homes in the Chiltern Hills near Henley and Burnham in Buckinghamshire. In central London, we are also onsite delivering a large luxury penthouse over two floors within the Chelsea Barracks development and also a 41 unit luxury residential scheme for our repeat clients, Derwent London and Native Land. Our Special Works division, who undertake projects from £1-4m, are currently overseeing two smaller private residential schemes, each below £3m each in value. The leisure and hospitality market remained an active sector for us, with on-going projects such as the refurbishment of The Hurlingham Club in Putney, a private members club set to handover in early 2025. We have also been appointed as the construction partner for the All-England Lawn Tennis Club to construct their new debentures lounge and bar in Court 1, which starts onsite after the 2025 Wimbledon Championship.
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KHG LIMITED
GROUP STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
We are fortunate to have an extremely talented and dedicated team, and maintaining this level of expertise, loyalty and commitment is a priority that demands constant focus. We want to support all our staff to fulfil their own potential and ambitions. Our goal is to create a professional, collaborative environment, one that not only drives business success but also instills pride in our staff, who are integral to the journey. The quality of leadership within the business, including directors and our senior management team, continues to strengthen year after year as we grow together in experience. We have every confidence that we have the right, dynamic team in place.
During the course of 2024 we have welcomed a new director to the board, with Charlie Everett being promoted to the position of Finance Director. John Knight has also moved into the position of Chairman and our long-standing director Oliver Driscoll is working closely with him leading the operation of the business as Managing Director. These positive changes at board level have strengthened our operations, ensuring continuity of strong and established leadership into the future. We are proud of the growing success of our apprenticeship and graduate training programmes, which has seen four new starters in 2024. These trainees undertake our structured training programme, which offers a breadth of on job training, personal development, structured training and chartership support. Our hope is that these young individuals will build their careers with Knight Harwood and become leaders of the future. The role we play in the community Knight Harwood is conscious of the importance of the role we play in the community and our impact on the environment. Our objective is to embrace sustainable design, with innovative construction approaches and solutions. Their application occurs at several levels within our business, starting with the way in which our projects are physically managed through to sustainable construction methods and building services installations, often required by our clients and their professional teams as a statement of our joint commitment to the environment. At a local community level, our objective is to minimise any disruption and, if possible, to improve or enhance the positive impact that our projects may have on local residents, businesses and other stakeholders. In 2024 we have undertaken a range of social value initiatives with the local community, which include volunteering at local food banks, tree planting, and interaction with local schools and colleges. Streamlined carbon reporting and energy saving scheme initiatives Knight Harwood operates an Integrated Health, Safety and Environmental Management System with supporting policies accredited under ISO 14001 (Environmental Management) and ISO 45001 (Occupational Health and Safety Management), both audited by BSI. Board directors are directly responsible for each of these elements, and we employ an external advisor to support our IMS (Integrated Management System) team with internal auditing ensuring our conformity to these standards.
Our team continue to promote a positive culture in relation to the environment and sustainability, minimising the impact of our business operations. Our projects are predominantly delivered under sustainable construction schemes including BREEAM, LEED, WELL, NABERS and SKA. In addition to the BREEAM accredited professionals within the business, we supplement this with the input of independent sustainability consultants ensuring both our own and our clients’ aspirations are achieved in terms of environmental, social, and corporate governance.
All Knight Harwood projects register with the Considerate Constructors Scheme (CCS) and use BRE SmartWaste to monitor waste and environmental performance. During 2024, 99% of our total waste was recycled and 1% sent to landfill. We strive to improve this statistic with increased use of 3D modelling, pre-fabrication to reduce wastage, and using closed loop recycled materials. This in turn improves quality and reduces health and safety risk on our projects. Other site initiatives include sustainable procurement plans, UK sourcing and local community engagement.
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KHG LIMITED
GROUP STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
In 2024 our Green Team continued to develop sustainability initiatives for our sites and head office. These included the use of closed loop materials that can be efficiently recycled. We are actively engaging with our supply chain to source recycled materials and identify procurement routes to reuse construction resources. This has focused on reusing steelwork, however we are expanding this initiative to include raised floor tiles and luminaires which can be repurposed and refurbished. We are supporting initiatives that create less waste and are more efficient with resources and materials including the circular economy and material reuse.
Good progress has been made on the development of our bespoke Environmental Social Governance (ESG) to provide a clear and credible strategy demonstrating our current emissions and publishing our reduction measures and targets. Our ESG and CRP will report against our fuel consumption, purchased energy and our emissions from travel, transportation and waste.
The business’ greenhouse gas emissions and energy consumption in 2024 were as follows:
Activity Emissions resulting from the purchase of electricity by the business for its own use, including the purposes of transport were 83,117 kWh (CO2 equivalent 18,700 kgCO2e). The UK Grid conversion factor is 0.22499 kgCO2 saved for each kWh produced from a carbon free source. The factor is based on the carbon emissions generated by the current UK power stations per kWh generated. This factor includes other greenhouse gases such as methane and nitrous oxide which are converted to their carbon dioxide equivalents, so the value is really kgCO2 eq. per kWh.
Our intensity ratio is 0.12. This ratio is based on Tons of CO2e per total £m sales revenue.
Tonnes CO2e = 16,988 kgCO2e / 1000
Tonnes CO2e = 17.0
Intensity Ratio = Tonnes CO2e / 2022 £m sales revenue
Intensity Ratio = 17.0 Tonnes CO2e / £140.2m
Intensity Ratio = 0.12
Market conditions and forecasts
Looking ahead we remain optimistic about the future. By the end of 2024, we had secured £111m turnover for 2025, and this figure has since increased to £140m. Our focus is now shifting toward securing turnover for 2026, with several promising opportunities in the pipeline. These include projects with prestigious organisations such as The Royal Academy of Arts, Dream Games and Great Portland Estates alongside a range of exciting private residential developments.
Section 172 Statement
In accordance with Section 172 of the Companies Act 2006, the directors of Knight Harwood Limited have a duty to act in best faith in a way that promotes the success of the company for the benefit of its shareholders, while having regard to the interests of other stakeholders. This includes, but is not limited to, employees, customers, suppliers, the community, and the environment. Below is a summary of how the directors have discharged their duties under Section 172 during the period under review. Promoting the success of the Company The directors recognise that the long-term success of the company is built upon a foundation of strong financial performance, high-quality project delivery, employee well-being and maintaining excellent relationships with its supply chain and other key stakeholders. In this context, the board has made decisions that aim to maximise the sustainable value of the company, balancing the immediate needs with our long-term objectives.
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KHG LIMITED
GROUP STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
Key Stakeholders
Shareholders: As the principal stakeholders, the directors meet regularly and continually strive to deliver sustainable returns to shareholders by maintaining strong financial discipline, developing new business opportunities, and ensuring the company operates efficiently. Employees: Our staff are absolutely paramount to our operations, and we continue to invest in training, personal development, and workplace safety. The directors have implemented a culture which fosters a positive work environment, promotes diversity and inclusion, and encourages employee engagement. We continually review the remuneration and benefits offered to our staff to ensure a competitive package is provided. Customers: The company’s clients are essential to its ongoing success. The directors have consistently prioritised the delivery of high-quality projects, exceeding customer expectations, and ensuring health and safety standards are adhered to and continually improved. Suppliers and Business Partners: We maintain strong relationships with our suppliers and business partners. The directors regularly review procurement practices to ensure fair terms and compliance. In addition, we actively engage with suppliers to collaborate on innovative solutions that help improve efficiency and reduce any impact on the environment. We are proud to report under the ‘Business Payment Practices and Performance’ that 94% of payments were made within 30 days, demonstrating our commitment to supporting our supply chain with timely and reliable payment. Community and Environment: The directors are committed to ensuring that the company operates responsibly within the communities in which we work. Our projects are designed not only to meet the needs of our clients but also to leave a positive, lasting impact on the local areas. The company’s construction projects often provide significant benefits to the communities in which we work, including creating employment opportunities, enhancing public spaces, and promoting local economic growth. Environmental sustainability also remains a core focus. We incorporate eco-friendly design and construction methods that reduce our projects' environmental footprint, further enhancing the long-term benefits for the community and its surroundings. Board Decisions and Long-Term Strategy In making decisions throughout the year, the directors have balanced the interests of all stakeholders while focusing on the long-term sustainability of the business. Significant decisions, such as investments in new technology, staff resource, and important construction projects, have all been made with careful consideration of their impact on financial performance, stakeholder relationships, and corporate social responsibility. We continue to align our operations with evolving industry standards and maintain a proactive approach to addressing risks and opportunities, particularly in relation to the increasingly prevalent environmental, social, and governance (ESG) factors. The directors are satisfied that they have acted in good faith and have considered the interests of all relevant stakeholders, in line with their obligations under Section 172 of the Companies Act 2006.
This report was approved by the board on 29 September 2025 and signed on its behalf.
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KHG 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 Group strategic report, the Directors' report and the consolidated 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 Group's financial statements and then apply them consistently;
∙make judgments and accounting estimates that are reasonable and prudent;
∙state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements;
∙prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Group will continue in business.
The 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 the Group 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 the Group 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 £4,130,648 (2023 - £3,150,016).
The directors do not recommend the payment of a final dividend.
The directors who served during the year were:
After the year end the following directors were appointed: D Miller (appointed 1 February 2025) P Howe (appointed 1 February 2025)
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KHG LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
Research and development activities
The Group carries out certain research and development activities in the normal course of its business.
The significant events affecting the Group after the year end have been disclosed in note 27 of these financial statements.
After the year end Barnes Roffe LLP resigned as auditors due to the transfer of its audit business and its
successor Barnes Roffe Audit Limited was appointed by the directors under s485 Companies Act 2006.
This report was approved by the board on
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KHG LIMITED
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF KHG LIMITED
We have audited the financial statements of KHG Limited (the 'parent Company') and its subsidiaries (the 'Group') for the year ended 31 December 2024, which comprise the Consolidated statement of income and retained earnings, the Consolidated Balance Sheet, the Company Balance Sheet, the Consolidated Statement of Cash Flows, the Consolidated Statement of Changes in Equity, the Company Statement of Changes in Equity and the related notes, including a summary of significant accounting 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 auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the group financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the group’s 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
Emphasis of matter – Parent company basis of preparation other than going concern
We draw attention to accounting policy 2.3 in the financial statements which explains that following a reorganisation, the Company ceased to be the parent of Knight Harwood Limited and no longer conducts any business operations. Therefore, the directors do not consider it appropriate to use the going concern basis in the preparation of the parent company accounts. Our opinion is not modified in respect of this matter.
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KHG LIMITED
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF KHG 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 Group 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 Group 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 Group and the parent Company and its environment obtained in the course of the audit, we have not identified material misstatements in the Group strategic report or the Directors' report.
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KHG LIMITED
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF KHG 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 Group financial statements.
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:
Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was as follows:
∙the engagement partner ensured that the engagement team collectively had the appropriate competence, capabilities and skills to identify or recognise non-compliance with applicable laws and regulations;
∙we identified the laws and regulations applicable to the company through discussions with directors and other management, and from our commercial knowledge and experience of the relevant sector;
∙we focused on specific laws and regulations which we considered may have a direct material effect on the financial statements or the operations of the company, including the Companies Act 2006 and ISO standards;
∙we assessed the extent of compliance with the laws and regulations identified above through making enquiries of management and inspecting legal correspondence; and
∙identified laws and regulations were communicated within the audit team regularly and the team remained alert to instances of non-compliance throughout the audit.
We assessed the susceptibility of the company's financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by:
∙making enquiries of management as to where they considered there was susceptibility to fraud, their knowledge of actual, suspected and alleged fraud;
∙considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations;
∙performed analytical procedures to identify any unusual or unexpected relationships;
∙tested journal entries to identify unusual transactions;
∙assessed whether judgements and assumptions made in determining the accounting estimates were indicative of potential bias; and
∙investigated the rationale behind significant or unusal transactions.
The areas that we identified as being susceptible to misstatement through fraud were:
∙Management bias in the estimates and judgements made; and
∙Management override of controls.
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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KHG LIMITED
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF KHG 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 Auditor
Leytonstone House
3 Hanbury Drive
London
E11 1GA
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KHG LIMITED
CONSOLIDATED STATEMENT OF INCOME AND RETAINED EARNINGS
FOR THE YEAR ENDED 31 DECEMBER 2024
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KHG LIMITED
REGISTERED NUMBER: 13697180
CONSOLIDATED 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 18 to 37 form part of these financial statements.
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KHG LIMITED
REGISTERED NUMBER: 13697180
COMPANY 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 18 to 37 form part of these financial statements.
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