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Registered number: 02924037 KNOX & WELLS HOLDINGS LIMITED ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024
KNOX & WELLS HOLDINGS LIMITED COMPANY INFORMATION
Directors | G O Leach
| H M Leach
Registered number | 02924037
Registered office | Creswell House
| Fieldway
| Heath
| Cardiff
| CF14 4UH
Independent auditor | MHA
| MHA House
| Charter Court
| Phoenix Way
| Swansea Enterprise Park
| Swansea
| SA7 9FS
KNOX & WELLS HOLDINGS LIMITED CONTENTS
| Page
Group strategic report | 1
Directors' report | 2 - 3
Independent auditor's report | 4 - 7
Consolidated statement of comprehensive income | 8
Consolidated balance sheet | 9 - 10
Company balance sheet | 11 - 12
Consolidated statement of changes in equity | 13
Company statement of changes in equity | 14
Consolidated statement of cash flows | 15 - 16
Consolidated analysis of net debt | 17
Notes to the financial statements | 18 - 40
KNOX & WELLS HOLDINGS LIMITED GROUP STRATEGIC REPORT FOR THE YEAR ENDED 31 DECEMBER 2024
Introduction
The directors present their strategic report of the company and the group for the year ended 31 December 2024.
Business review
The group's trading results for the financial year are shown in the Income Statement. The directors were please with the performance of the business during the year. 2024 was a challenging year in the construction industry, with margins remaining extremely competitive. The group has reported a strong operational performance. The group is in a healthy financial position with good liquidity, a strong net positive cash position, and both net assets and net current assets at the balance sheet date.
Principal risks and uncertainties
The management of the business and execution of the group's strategy are subject to a number of risks. The key business risks and uncertainties affecting the group are considered to relate to competition from competitors and employee retention. The group manages these risks by providing value added services to its customers, having fast response times to customer queries and maintaining strong relationships with its customers and employees.
Financial key performance indicators
The key performance indicators for the group are as follows:
|  | 2024 | 2023
|  | £'000 | £'000
| Turnover | 25,894 | 35,272
| Gross Margin | 3,700 | 4,127
| Operating Profit | 1,066 | 655
| Net Current Assets | 6,304 | 5,382
This report was approved by the board on 19 September 2025 and signed on its behalf.
H M Leach Director
Page 1
KNOX & WELLS HOLDINGS 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.
Directors' responsibilities statement
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. Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland'. Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the Company and the Group and of the profit or loss of the Group for that period. 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; ∙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.
Principal activity
The principal activity of the group in the year under review was that of a holding company of a group primarily trading in the building contracting industry with some ancillary property development, investment and trading activities. The parent company undertakes property investment activities.
Results and dividends
The profit for the year, after taxation, amounted to £984,474 (2023 - £647,126). Dividends totaling £0 (2023- £745,000) were proposed at the year end.
Directors
The directors who served during the year were:
G O Leach
H M Leach
Future developments
The directors are optimistic about the company future developments and prospects. Page 2
KNOX & WELLS HOLDINGS LIMITED DIRECTORS' REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2024
Matters covered in the Group strategic report
Included in the group's strategic report is a review of the business and description of the principal risks and uncertainties facing the group.
Disclosure of information to auditor
Each of the persons who are directors at the time when this Directors' report is approved has confirmed that: ∙so far as the director is aware, there is no relevant audit information of which the Company and the Group's auditor is unaware, and ∙the director has taken all the steps that ought to have been taken as a director in order to be aware of any relevant audit information and to establish that the Company and the Group's auditor is aware of that information.
Post balance sheet events
There have been no significant events affecting the Group since the year end.
Auditor
The auditor, MHA, previously traded through the legal entity Macintyre Hudson LLP. In response to regulatory changes, Macintyre Hudson LLP ceased to hold an audit registration with the engagement transitioning to MHA Audit Services LLP. The auditor, MHA, will be proposed for reappointment in accordance with section 485 of the Companies Act 2006. This report was approved by the board on 19 September 2025 and signed on its behalf.
H M Leach Director
Page 3
KNOX & WELLS HOLDINGS LIMITED INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF KNOX & WELLS HOLDINGS LIMITED
Opinion
We have audited the financial statements of Knox & Wells Holdings Limited (the 'parent Company') and its subsidiaries (the 'Group') for the year ended 31 December 2024, which comprise the Consolidated statement of comprehensive income, 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 our opinion the financial statements: ∙give a true and fair view of the state of the Group's and of the parent Company's affairs as at 31 December 2024 and of the Group's profit 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 Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the Group 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.
Conclusions relating to going concern
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 Group's or the parent 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. Page 4
KNOX & WELLS HOLDINGS LIMITED INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF KNOX & WELLS HOLDINGS LIMITED (CONTINUED)
Other information
The other information comprises the information included in the Annual Report other than the financial statements and our Auditor's 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.
Opinion 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 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.
Matters on which we are required to report by exception
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. We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion: ∙adequate accounting records have not been kept by the parent Company, or returns adequate for our audit have not been received from branches not visited by us; or ∙the parent Company financial statements are not in agreement with the accounting records and returns; or ∙certain disclosures of directors' remuneration specified by law are not made; or ∙we have not received all the information and explanations we require for our audit. Page 5
KNOX & WELLS HOLDINGS LIMITED INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF KNOX & WELLS HOLDINGS LIMITED (CONTINUED)
Responsibilities of directors
As explained more fully in the Directors' responsibilities statement set out on page 2, the directors are 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 directors determine is 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 directors are responsible for assessing the Group's and the parent 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 directors either intend to liquidate the Group or the parent Company or to cease operations, or have no realistic alternative but to do so.
Auditor's 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 an Auditor's 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: - Enquiry of management and those charged with governance around actual, potential or suspected litigation, claims, non-compliance with applicable laws and regulations and fraud; - Review of legal and professional fees for evidence of legal work undertaken or fines/penalties incurred; - Reviewing of financial statements disclosures and testing to supporting documentation to assess compliance with applicable laws and regulations; - Performing audit work over the risk of management override, including testing of journal entries and other adjustments for appropriateness; - Evaluating the business rationale of significant transactions outside the normal course of business; - An assessment of the methodologies used in order to calculate estimates/provisions at the year end for evidence of bias; - We considered where applicable alternative estimation approaches including using (where available) actual post year end outcomes in order to provide assurance over the potential for material misstatement; - Discussions amongst the engagement team in relation to how and where fraud might occur in the financial statements and any potential indicators 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 Auditor's report. Page 6
KNOX & WELLS HOLDINGS LIMITED INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF KNOX & WELLS HOLDINGS LIMITED (CONTINUED)
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 an Auditor's 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. James Dobson BSc (Hons) FCA (Senior statutory auditor) for and on behalf of MHA Statutory Auditor Swansea, United Kingdom 30 September 2025 MHA is the trading name of MHA Audit Services LLP, a limited liability partnership in England and Wales (registered number OC455542). Page 7
KNOX & WELLS HOLDINGS LIMITED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME FOR THE YEAR ENDED 31 DECEMBER 2024
| 2024 | 2023
Note | £ | £
Turnover | 4 | 25,893,843 | 35,271,777
Cost of sales |  | (22,194,003) | (31,145,121)
Gross profit |  | 3,699,840 | 4,126,656
Exceptional distribution costs |  | - | (336,192)
Administrative expenses |  | (2,678,091) | (3,175,345)
Other operating income | 5 | 29,691 | 41,964
Fair value movements |  | 14,567 | (2,244)
Operating profit | 6 | 1,066,007 | 654,839
Income from participating interests |  | 197,717 | 219,498
Income from fixed assets investments |  | 3,943 | 2,799
Interest receivable and similar income | 11 | 84,446 | 105,992
Interest payable and similar expenses | 12 | (33,123) | (41,943)
Profit before taxation |  | 1,318,990 | 941,185
Tax on profit | 13 | (334,516) | (294,059)
Profit for the financial year |  | 984,474 | 647,126
Total comprehensive income for the year |  | 984,474 | 647,126
Profit for the year attributable to: |  |  |
Owners of the parent Company |  | 984,474 | 647,126
|  | 984,474 | 647,126
The notes on pages 18 to 40 form part of these financial statements.
Page 8
KNOX & WELLS HOLDINGS LIMITED REGISTERED NUMBER: 02924037 CONSOLIDATED BALANCE SHEET AS AT 31 DECEMBER 2024
|  | 2024 |  | 2023
Note |  | £ |  | £
Fixed assets |  |  |  |  |
Tangible assets | 16 |  | 596,033 |  | 598,895
Investments | 17 |  | 866,049 |  | 738,364
Investment property | 18 |  | 2,000,000 |  | 2,000,000
|  |  | 3,462,082 |  | 3,337,259
Current assets |  |  |  |  |
Stocks | 19 | 4,127,759 |  | 2,427,850 |
Debtors: amounts falling due within one year | 20 | 7,148,689 |  | 7,581,566 |
Current asset investments | 21 | 1,505,451 |  | 1,458,866 |
Cash at bank and in hand | 22 | 1,701,850 |  | 5,480,525 |
|  | 14,483,749 |  | 16,948,807 |
Creditors: amounts falling due within one year | 23 | (8,179,775) |  | (11,567,284) |
Net current assets |  |  | 6,303,974 |  | 5,381,523
Total assets less current liabilities |  |  | 9,766,056 |  | 8,718,782
Provisions for liabilities |  |  |  |  |
Deferred taxation | 24 | (62,800) |  | - |
|  |  | (62,800) |  | -
Net assets |  |  | 9,703,256 |  | 8,718,782
Capital and reserves |  |  |  |  |
Called up share capital | 25 |  | 1,800 |  | 1,800
Investment property reserve |  |  | - |  | 304,308
Profit and loss account |  |  | 9,701,456 |  | 8,412,674
|  |  | 9,703,256 |  | 8,718,782
Page 9
KNOX & WELLS HOLDINGS LIMITED REGISTERED NUMBER: 02924037 CONSOLIDATED BALANCE SHEET (CONTINUED) AS AT 31 DECEMBER 2024 The financial statements were approved and authorised for issue by the board and were signed on its behalf on 19 September 2025.
H M Leach
Director
The notes on pages 18 to 40 form part of these financial statements. Page 10
KNOX & WELLS HOLDINGS LIMITED REGISTERED NUMBER: 02924037 COMPANY BALANCE SHEET AS AT 31 DECEMBER 2024
|  | 2024 |  | 2023
Note |  | £ |  | £
Fixed assets |  |  |  |  |
Tangible assets | 16 |  | 443,025 |  | 455,104
Investments | 17 |  | 2,260 |  | 2,260
Investment property |  |  | 700,000 |  | 2,000,000
|  |  | 1,145,285 |  | 2,457,364
Current assets |  |  |  |  |
Stocks | 19 | 9,406 |  | 9,406 |
Debtors: amounts falling due within one year | 20 | 4,115,340 |  | 2,814,953 |
Current asset investments | 21 | 200,997 |  | 163,283 |
Cash at bank and in hand | 22 | 253,395 |  | 403,892 |
|  | 4,579,138 |  | 3,391,534 |
Creditors: amounts falling due within one year | 23 | (1,871,833) |  | (2,079,383) |
Net current assets |  |  | 2,707,305 |  | 1,312,151
Total assets less current liabilities |  |  | 3,852,590 |  | 3,769,515
Provisions for liabilities |  |  |  |  |
Deferred taxation |  | (62,800) |  | - |
|  |  | (62,800) |  | -
Net assets |  |  | 3,789,790 |  | 3,769,515
Capital and reserves |  |  |  |  |
Called up share capital | 25 |  | 1,800 |  | 1,800
Investment property reserve |  |  | - |  | 304,308
Profit and loss account brought forward |  | 3,463,407 |  | 3,763,166 |
Profit for the year |  | 20,275 |  | 109,049 |
Other changes in the profit and loss account |  | 304,308 |  | (408,808) |
Profit and loss account carried forward |  |  | 3,787,990 |  | 3,463,407
|  |  | 3,789,790 |  | 3,769,515
Page 11
KNOX & WELLS HOLDINGS LIMITED REGISTERED NUMBER: 02924037 COMPANY BALANCE SHEET (CONTINUED) AS AT 31 DECEMBER 2024 The financial statements were approved and authorised for issue by the board and were signed on its behalf on 19 September 2025.
H M Leach
Director
The notes on pages 18 to 40 form part of these financial statements. Page 12

|  | KNOX & WELLS HOLDINGS LIMITED |
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY FOR THE YEAR ENDED 31 DECEMBER 2024
|  | Called up share capital | Investment property revaluation reserve | Profit and loss account | Total equity
|  | £ | £ | £ | £
| At 1 January 2023 | 1,800 | 640,500 | 8,174,356 | 8,816,656
| Comprehensive income for the year |  |  |  |
| Profit for the year | - | - | 647,126 | 647,126
| Transfer between reserves | - | (336,192) | 336,192 | -
| Dividends: Equity capital | - | - | (745,000) | (745,000)
| At 1 January 2024 | 1,800 | 304,308 | 8,412,674 | 8,718,782
| Profit for the year | - | - | 984,474 | 984,474
| Transfer between reserves | - | (304,308) | 304,308 | -
| At 31 December 2024 | 1,800 | - | 9,701,456 | 9,703,256
| The notes on pages 18 to 40 form part of these financial statements.
Page 13

|  | KNOX & WELLS HOLDINGS LIMITED |
COMPANY STATEMENT OF CHANGES IN EQUITY FOR THE YEAR ENDED 31 DECEMBER 2024
|  | Called up share capital | Investment property revaluation reserve | Profit and loss account | Total equity
|  | £ | £ | £ | £
| At 1 January 2023 | 1,800 | 640,500 | 3,763,166 | 4,405,466
| Comprehensive income for the year |  |  |  |
| Profit for the year | - | - | 109,049 | 109,049
| Transfer between reserves | - | (336,192) | 336,192 | -
| Dividends: Equity capital | - | - | (745,000) | (745,000)
| At 1 January 2024 | 1,800 | 304,308 | 3,463,407 | 3,769,515
| Comprehensive income for the year |  |  |  |
| Profit for the year | - | - | 20,275 | 20,275
| Transfer between reserves | - | (304,308) | 304,308 | -
| At 31 December 2024 | 1,800 | - | 3,787,990 | 3,789,790
| The notes on pages 18 to 40 form part of these financial statements.
Page 14

KNOX & WELLS HOLDINGS LIMITED CONSOLIDATED STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 DECEMBER 2024
|  |  | 2024 | 2023
|  |  | £ | £
Cash flows from operating activities |  |
Profit for the financial year | 1,318,990 | 941,185
Adjustments for: |  |
Depreciation of tangible assets | 50,687 | 50,662
Deficit on revaluation | - | 336,192
Loss on disposal of tangible assets | (2,275) | 7,200
Interest paid | 33,123 | 41,943
Interest received | (84,446) | (108,791)
Decrease in stocks | 205,460 | 90,888
(Increase)/decrease in debtors | (2,041,290) | 475,726
(Decrease)/increase in creditors | (3,332,611) | 3,362,250
Increase in provisions | 62,800 | -
Net fair value (gains)/losses recognised in P&L | (14,567) | 2,244
Share of operating (loss) in joint ventures | (127,685) | (219,498)
Corporation tax (paid) | (393,006) | (167,666)
Net cash generated from operating activities | (4,324,820) | 4,812,335
Cash flows from investing activities |  |
Purchase of tangible fixed assets | (1,348,225) | (13,659)
Sale of tangible fixed assets | 2,675 | -
Sale of investment properties | 1,300,000 | -
Purchase of current asset investments | - | (315,407)
Purchase of unlisted and other investments | (23,147) | -
Sale of unlisted and other investments | 1,318,730 | -
Interest received | 84,446 | 108,791
Dividends received | 3,943 | 2,799
Fair value adjustment in listed shares | (27,090) | -
Net cash from investing activities | 1,311,332 | (217,476)
Page 15
KNOX & WELLS HOLDINGS LIMITED CONSOLIDATED STATEMENT OF CASH FLOWS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2024
|  | 2024 | 2023
|  | £ | £
Cash flows from financing activities |  |
Repayment of loans | - | (1,027,333)
Dividends paid | - | (400,000)
Interest paid | (33,123) | -
Net cash used in financing activities | (33,123) | (1,427,333)
Net (decrease)/increase in cash and cash equivalents | (3,046,611) | 3,167,526
Cash and cash equivalents at beginning of year | 5,480,524 | 2,312,998
Cash and cash equivalents at the end of year | 2,433,913 | 5,480,524
Cash and cash equivalents at the end of year comprise: |  |
Cash at bank and in hand | 2,433,913 | 5,480,524
| 2,433,913 | 5,480,524
The notes on pages 18 to 40 form part of these financial statements.
Page 16
KNOX & WELLS HOLDINGS LIMITED CONSOLIDATED ANALYSIS OF NET DEBT FOR THE YEAR ENDED 31 DECEMBER 2024
| At 1 January 2024 | Cash flows | Other non-cash changes | At 31 December 2024
| £ | £ | £ | £
Cash at bank and in hand | 5,480,525 | (3,778,675) | - | 1,701,850
Debt due within 1 year | (745,000) | 745,000 | - | -
Liquid investments | 163,283 | - | 37,714 | 200,997
| 4,898,808 | (3,033,675) | 37,714 | 1,902,847
The notes on pages 18 to 40 form part of these financial statements.
Page 17
KNOX & WELLS HOLDINGS LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024
1. | General information
Knox & Wells Holdings 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 below:.
| Registered number | 02924037
| Registered office address | Creswell House Fieldway Heath Cardiff CF14 4UH
The presentation currency of the financial statements is the Pound Sterling (£). Monetary amounts in these financial statements are rounded to the nearest £. 2.Accounting policies
| 2.1 | Basis of preparation of financial statements
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 Group management to exercise judgment in applying the Group's accounting policies (see note 3). The Company has taken advantage of the exemption allowed under section 408 of the Companies Act 2006 and has not presented its own Statement of comprehensive income in these financial statements. The following principal accounting policies have been applied:
| 2.2 | Basis of consolidation
The consolidated financial statements present the results of the Company and its own subsidiaries ("the Group") as if they form a single entity. Intercompany transactions and balances between group companies are therefore eliminated in full. The consolidated financial statements incorporate the results of business combinations using the purchase method. In the Balance sheet, the acquiree's identifiable assets, liabilities and contingent liabilities are initially recognised at their fair values at the acquisition date. The results of acquired operations are included in the Consolidated statement of comprehensive income from the date on which control is obtained. They are deconsolidated from the date control ceases. In accordance with the transitional exemption available in FRS 102, the Group has chosen not to retrospectively apply the standard to business combinations that occurred before the date of transition to FRS 102, being 01 January 2014. Page 18
KNOX & WELLS HOLDINGS LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024 2.Accounting policies (continued)
| 2.3 | Going concern
The financial statements have been prepared on a going concern basis which assumes that the company and the group will continue in operational existence for the foreseeable future. The directors have reviewed the balance sheet, the likely future cash flows of the business and have considered the facilities that are in place at the date of signing the report. At the time of approving the financial statements, the directors have a reasonable expectation that the company and the group have adequate resources in place to continue in operational existence for the foreseeable future, and therefore they continue to adopt the going concern basis in preparing the financial statements.
| 2.4 | Related party exemption
The company has taken advantage of an exemption, under the terms of the Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland', not to disclose related party transactions with wholly owned subsidiaries within the group.
| 2.5 | Revenue
Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Group and the revenue can be reliably measured. Revenue is measured as the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. The following criteria must also be met before revenue is recognised: Rendering of services Revenue from a contract to provide services is recognised in the period in which the services are provided in accordance with the stage of completion of the contract when all of the following conditions are satisfied: ∙the amount of revenue can be measured reliably; ∙it is probable that the Group will receive the consideration due under the contract; ∙the stage of completion of the contract at the end of the reporting period can be measured reliably; and ∙the costs incurred and the costs to complete the contract can be measured reliably. Revenue includes rental income which is recognised in the period to which it relates, in accordance with tenant lease agreements.
| 2.6 | Amounts recoverable on contracts
Amounts recoverable on long-term contracts, which are included in debtors, are stated at the net sales value of the work done less amounts received as progress payments on account. Excess progress payments are included in creditors as payments on account. Cumulative costs incurred net of amounts transferred to cost of sales, less provision for contingencies and anticipated future losses on contracts, are included as long-term contract balances in stock. Turnover is determined by reference to the value of work carried out to date. Turnover is determined by reference to the value of work carried out to date. A provision is made for all losses expected to arise on completion of contracts at the balance sheet date. Page 19
KNOX & WELLS HOLDINGS LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024 2.Accounting policies (continued)
| 2.7 | Interest income
Interest income is recognised in profit or loss using the effective interest method.
| 2.8 | Finance costs
Finance costs are charged to profit or loss over the term of the debt using the effective interest method so that the amount charged is at a constant rate on the carrying amount. Issue costs are initially recognised as a reduction in the proceeds of the associated capital instrument.
| 2.9 | Pensions
Defined contribution pension plan The Group operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the Group pays fixed contributions into a separate entity. Once the contributions have been paid the Group has no further payment obligations. The contributions are recognised as an expense in profit or loss when they fall due. Amounts not paid are shown in accruals as a liability in the Balance sheet. The assets of the plan are held separately from the Group in independently administered funds.
| 2.10 | Current and deferred taxation
The tax expense for the year comprises current and deferred tax. Tax is recognised in profit or loss except that a charge attributable to an item of income and expense recognised as other comprehensive income or to an item recognised directly in equity is also recognised in other comprehensive income or directly in equity respectively. The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the balance sheet date in the countries where the Company and the Group operate and generate income. Deferred tax balances are recognised in respect of all timing differences that have originated but not reversed by the balance sheet date, except that: ∙The recognition of deferred tax assets is limited to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits; ∙Any deferred tax balances are reversed if and when all conditions for retaining associated tax allowances have been met; and ∙Where they relate to timing differences in respect of interests in subsidiaries, associates, branches and joint ventures and the Group can control the reversal of the timing differences and such reversal is not considered probable in the foreseeable future. Deferred tax balances are not recognised in respect of permanent differences except in respect of business combinations, when deferred tax is recognised on the differences between the fair values of assets acquired and the future tax deductions available for them and the differences between the fair values of liabilities acquired and the amount that will be assessed for tax. Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the balance sheet date. Page 20
KNOX & WELLS HOLDINGS LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024 2.Accounting policies (continued)
| 2.11 | Exceptional items
Exceptional items are transactions that fall within the ordinary activities of the Group but are presented separately due to their size or incidence.
| 2.12 | Tangible fixed assets
Tangible fixed assets under the cost model are stated at historical cost less accumulated depreciation and any accumulated impairment losses. Historical cost includes expenditure that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management. Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, using the straight-line method. Depreciation is provided on the following basis:
|  |  |  | Freehold property | - | 2% | on cost
|  |  |  | Plant and machinery | - | 25% | straight line
|  |  |  | Motor vehicles | - | 25% | reducing balance
The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date. Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in profit or loss.
| 2.13 | Investment properties
Investment properties are shown at most recent valuation. Any aggregate surplus or deficit arising from changes in fair value is recognised in profit or loss.
| 2.14 | Valuation of investments
Investments in subsidiaries are measured at cost less accumulated impairment. Investments in unlisted Group shares, whose market value can be reliably determined, are remeasured to market value at each balance sheet date. Gains and losses on remeasurement are recognised in the Consolidated statement of comprehensive income for the period. Where market value cannot be reliably determined, such investments are stated at historic cost less impairment. Investments in listed company shares are remeasured to market value at each balance sheet date. Gains and losses on remeasurement are recognised in profit or loss for the period. Page 21
KNOX & WELLS HOLDINGS LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024 2.Accounting policies (continued)
| 2.15 | Associates and joint ventures
An entity is treated as a joint venture where the Group is a party to a contractual agreement with one or more parties from outside the Group to undertake an economic activity that is subject to joint control. An entity is treated as an associated undertaking where the Group exercises significant influence in that it has the power to participate in the operating and financial policy decisions. In the consolidated accounts, interests in associated undertakings are accounted for using the equity method of accounting. Under this method an equity investment is initially recognised at the transaction price (including transaction costs) and is subsequently adjusted to reflect the investors share of the profit or loss, other comprehensive income and equity of the associate. The Consolidated statement of comprehensive income includes the Group's share of the operating results, interest, pre-tax results and attributable taxation of such undertakings applying accounting policies consistent with those of the Group. In the Consolidated balance sheet, the interests in associated undertakings are shown as the Group's share of the identifiable net assets, including any unamortised premium paid on acquisition. Any premium on acquisition is dealt with in accordance with the goodwill policy.
| 2.16 | Stocks
Stocks are stated at the lower of cost and net realisable value, being the estimated selling price less costs to complete and sell. 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 are assessed for impairment. If stock 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.
| 2.17 | Long-term contract work in progress
Long-term contract work in progress represents costs incurred on contracts, net of amounts transferred to cost of sales in respect of work recorded as turnover, less foreseeable losses and payments on account not matched with turnover. Turnover is determined by reference to the value of work carried out to date. Provision is made for all losses expected to arise in completion of contracts at the balance sheet date. Claims against customers for extensions to time or for additional work carried out and not contracted for are only added to valuations when certified by the architect or if not certified, when cash is received.
| 2.18 | Debtors
Short-term debtors are measured at transaction price, less any impairment. Loans receivable are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method, less any impairment. Page 22
KNOX & WELLS HOLDINGS LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024 2.Accounting policies (continued)
| 2.19 | Cash and cash equivalents
Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours. Cash equivalents are highly liquid investments that mature in no more than three months from the date of acquisition and that are readily convertible to known amounts of cash with insignificant risk of change in value. In the Consolidated statement of cash flows, cash and cash equivalents are shown net of bank overdrafts that are repayable on demand and form an integral part of the Group's cash management.
| 2.20 | Creditors
Short-term creditors are measured at the transaction price. Other financial liabilities, including bank loans, are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method.
| 2.21 | Provisions for liabilities
Provisions are recognised when an event has taken place that gives rise to a legal or constructive obligation, a transfer of economic benefits is probable and a reliable estimate can be made. Provisions are measured as the best estimate of the amount required to settle the obligation, taking into account the related risks and uncertainties. Deferred tax liabilities are also presented within provisions but are measured in accordance with the accounting policy on taxation. Increases in provisions are generally charged as an expense to profit or loss.
| 2.22 | Financial instruments
The Group has elected to apply the provisions of Section 11 “Basic Financial Instruments” of FRS 102 to all of its financial instruments. The Group has elected to apply the recognition and measurement provisions of IFRS 9 Financial Instruments (as adopted by the UK Endorsement Board) with the disclosure requirements of Sections 11 and 12 and the other presentation requirements of FRS 102. Financial instruments are recognised in the Group's Balance sheet when the Group becomes party to the contractual provisions of the instrument. Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously. Basic financial assets Basic financial assets, which include trade and other debtors, cash and bank balances, are initially measured at their transaction price (adjusted for transaction costs except in the initial measurement of financial assets that are subsequently measured at fair value through profit and loss) and are subsequently carried at their amortised cost using the effective interest method, less any provision for impairment, unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Page 23
KNOX & WELLS HOLDINGS LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024 2.Accounting policies (continued)
| 2.22 | Financial instruments (continued)
Discounting is omitted where the effect of discounting is immaterial. The Group's cash and cash equivalents, trade and most other debtors due with the operating cycle fall into this category of financial instruments. Other financial assets Other financial assets, which includes investments in equity instruments which are not classified as subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the recognised transaction price. Such assets are subsequently measured at fair value with the changes in fair value being recognised in the profit or loss. Where other financial assets are not publicly traded, hence their fair value cannot be measured reliably, they are measured at cost less impairment. Impairment of financial assets At the end of each reporting period financial assets measured at amortised cost are assessed for objective evidence of impairment. If an asset is impaired the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss. The impairment loss will be the difference between the current carrying amount and the present value of the future cash flows at the asset(s) original effective interest rate. If there is a favourable change in relation to the events surrounding the impairment loss then the impairment can be reviewed for possible reversal. The reversal will not cause the current carrying amount to exceed the original carrying amount had the impairment not been recognised. The impairment reversal is recognised in the profit or loss. Basic financial liabilities Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the Group after the deduction of all its liabilities. Basic financial liabilities, which include trade and other creditors, bank loans, other loans and loans due to fellow group companies are initially measured at their transaction price (adjusting for transaction costs except in the initial measurement of financial liabilities that are subsequently measured at fair value through profit and loss). When this constitutes a financing transaction, whereby the debt instrument is measured at the present value of the future payments discounted at a market rate of interest, discounting is omitted where the effect of discounting is immaterial. Debt instruments are subsequently carried at their amortised cost using the effective interest rate method. Trade creditors are obligations to pay for goods and services that have been acquired in the ordinary course of business from suppliers. Trade creditors are classified as current liabilities if the payment is due within one year. If not, they represent non-current liabilities. Trade creditors are initially recognised at their transaction price and subsequently are measured at amortised cost using the effective interest method. Discounting is omitted where the effect of discounting is immaterial. Page 24
KNOX & WELLS HOLDINGS LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024 2.Accounting policies (continued)
| 2.23 | Dividends
Equity dividends are recognised when they become legally payable. Interim equity dividends are recognised when paid. Final equity dividends are recognised when approved by the shareholders at an annual general meeting.
3. | Judgements in applying accounting policies and key sources of estimation uncertainty
In the application of the group's accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amounts 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. The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period which the estimate is revised where the revision affects only that period, or in the period of revision and future period where the revision affects both current and future periods. The following items are those that management consider to have the most significant effect on the financial statements : Construction contracts: Recognition of turnover and profit on construction contracts requires management judgement regarding the anticipated final outcome of individual contracts and of the proportion of works completed at the balance sheet date. Management undertake detailed reviews in order to exercise judgement over the outcome of each contract. The age and recoverability of debtors and amounts recoverable on contracts are reviewed regularly by management and provisions made where appropriate.
4. | Turnover
| An analysis of turnover by class of business is as follows:
|  |  |  |  | 2024 | 2023
|  |  |  |  | £ | £
| Building contracting and rents receivable | 25,893,843 | 35,271,777
|  | 25,893,843 | 35,271,777
Page 25
KNOX & WELLS HOLDINGS LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024
. |
|  | 2024 | 2023
|  | £ | £
| Building contracting | 25,677,852 | 34,952,606
| Rents receivable | 153,558 | 319,171
|  | 25,831,410 | 35,271,777
| All turnover arose within the United Kingdom.
5. | Other operating income
|  |  |  |  | 2024 | 2023
|  |  |  |  | £ | £
| Sundry income | 29,691 | 41,964
|  | 29,691 | 41,964
6. | Operating profit
| The operating profit is stated after charging:
|  |  |  |  | 2024 | 2023
|  |  |  |  | £ | £
| Hire of plant and equipment | 418,600 | 607,406
Page 26
KNOX & WELLS HOLDINGS LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024
7. | Auditor's remuneration
| During the year, the Group obtained the following services from the Company's auditor:
|  |  |  |  | 2024 | 2023
|  |  |  |  | £ | £
| Fees payable to the Company's auditor for the audit of the consolidated and parent Company's financial statements | 13,805 | 7,075
| Fees payable to the Company's auditor in respect of: |  |
| Tax compliance services | 2,500 | 550
| All non-audit services not included above | 3,250 | -
Page 27
KNOX & WELLS HOLDINGS LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024
8. | Employees
| Staff costs, including directors' remuneration, were as follows:
|  | Group | Group
|  | 2024 | 2023
|  | £ | £
| Wages and salaries | 3,153,665 | 3,464,763
| Social security costs | 381,786 | 294,037
| Cost of defined contribution scheme | 310,156 | 608,259
|  | 3,845,607 | 4,367,059
| The average monthly number of employees, including the directors, during the year was as follows:
|  |  | 2024 | 2023
|  |  | No. | No.
|  | Directors | 2 | 2
|  | Building & construction | 54 | 52
|  | Administrative | 10 | 9
|  |  | 66 | 63
9. | Directors' remuneration
|  | Group 2024 | Group 2023
|  | £ | £
| Directors' emoluments | 734,379 | 381,133
| Company contributions to defined contribution pension schemes | 24,420 | 26,329
|  | 758,799 | 407,462
| Group During the year retirement benefits were accruing to 7 directors (2023 - 6) in respect of defined contribution pension schemes.
Page 28
KNOX & WELLS HOLDINGS LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024
10. | Income from investments
|  |  |  |  | 2024 | 2023
|  |  |  |  | £ | £
| Dividends received from investments | (3,943) | (2,799)
|  | (3,943) | (2,799)
11. | Interest receivable
|  |  |  |  | 2024 | 2023
|  |  |  |  | £ | £
| Interest receivable from related companies | 5,126 | 5,626
| Other interest receivable | 79,320 | 100,366
|  | 84,446 | 105,992
12. | Interest payable and similar expenses
|  |  |  |  | 2024 | 2023
|  |  |  |  | £ | £
| Share of interest payable in joint ventures | 33,123 | 41,943
|  | 33,123 | 41,943
Page 29
KNOX & WELLS HOLDINGS LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024
13. | Taxation
|  |  |  |  | 2024 | 2023
|  |  |  |  | £ | £
| Corporation tax |  |
| Current tax on profits for the year | 235,369 | 293,908
| Adjustments in respect of previous periods | (562) | 151
| Tax on joint venture | 36,909 | -
|  | 271,716 | 294,059
| Total current tax | 271,716 | 294,059
| Deferred tax |  |
| Origination and reversal of timing differences | 62,800 | -
| Total deferred tax | 62,800 | -
|  | 334,516 | 294,059
Page 30
KNOX & WELLS HOLDINGS LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024 13.Taxation (continued)
| Factors affecting tax charge for the year
| The tax assessed for the year is higher than (2023 - higher than) the standard rate of corporation tax in the UK of 25% (2023 - 23.52%). The differences are explained below:
|  |  |  |  | 2024 | 2023
|  |  |  |  | £ | £
| Profit on ordinary activities before tax | 1,318,990 | 941,185
| Profit on ordinary activities multiplied by standard rate of corporation tax in the UK of 25% (2023 - 23.52%) | 329,748 | 221,367
| Effects of: |  |
| Expenses not deductible for tax purposes, other than goodwill amortisation and impairment | 62,895 | 948
| Income not taxable for tax purposes | (53,395) | -
| Capital gains tax differences | (5,169) | -
| Adjustments to tax charge in respect of prior periods | (562) | 151
| Other timing differences leading to an increase (decrease) in taxation | 62,800 | -
| Chargeable losses | - | (79,074)
| Fixed asset differences | 12,104 | 2,587
| Adjustments on Joint venture income | (4,240) | -
| Exempt distributions | (986) | -
| Other differences leading to an increase (decrease) in the tax charge | (68,679) | 148,080
| Total tax charge for the year | 334,516 | 294,059
| Factors that may affect future tax charges
There were no factors that may affect future tax charges.
14. | Dividends
|  |  |  |  | 2024 | 2023
|  |  |  |  | £ | £
| Dividends | - | 745,000
|  | - | 745,000
Page 31
KNOX & WELLS HOLDINGS LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024
15. | Parent company profit for the year
The Company has taken advantage of the exemption allowed under section 408 of the Companies Act 2006 and has not presented its own Statement of comprehensive income in these financial statements. The profit after tax of the parent Company for the year was £20,275 (2023 - £109,049).
16. | Tangible fixed assets
| Group
|  | Freehold property | Plant and machinery | Motor vehicles | Total
|  | £ | £ | £ | £
| Cost or valuation |  |  |  |
| At 1 January 2024 | 550,000 | 582,997 | 414,684 | 1,547,681
| Additions | - | 6,882 | 41,343 | 48,225
| Disposals | - | - | (75,119) | (75,119)
| At 31 December 2024 | 550,000 | 589,879 | 380,908 | 1,520,787
| Depreciation |  |  |  |
| At 1 January 2024 | 110,000 | 500,352 | 338,434 | 948,786
| Charge for the year on owned assets | 11,000 | 12,919 | 26,768 | 50,687
| Disposals | - | - | (74,719) | (74,719)
| At 31 December 2024 | 121,000 | 513,271 | 290,483 | 924,754
| Net book value |  |  |  |
| At 31 December 2024 | 429,000 | 76,608 | 90,425 | 596,033
| At 31 December 2023 | 440,000 | 82,645 | 76,250 | 598,895
Page 32
KNOX & WELLS HOLDINGS LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024 16.Tangible fixed assets (continued)
| Company
|  | Freehold property | Plant and machinery | Total
|  | £ | £ | £
| Cost or valuation |  |  |
| At 1 January 2024 | 550,000 | 31,061 | 581,061
| At 31 December 2024 | 550,000 | 31,061 | 581,061
| Depreciation |  |  |
| At 1 January 2024 | 110,000 | 15,957 | 125,957
| Charge for the year on owned assets | 11,000 | 1,079 | 12,079
| At 31 December 2024 | 121,000 | 17,036 | 138,036
| Net book value |  |  |
| At 31 December 2024 | 429,000 | 14,025 | 443,025
| At 31 December 2023 | 440,000 | 15,104 | 455,104
| The net book value of land and buildings may be further analysed as follows:
|  |  |  |  | 2024 | 2023
|  |  |  |  | £ | £
| Freehold | 429,000 | 440,000
|  | 429,000 | 440,000
| The historical cost of the freehold property is £506,500 (2023 - £506,500). If the property had not been valued the net book value would be £225,069 as at 31 December 2024 (2023 - £235,199).
Page 33
KNOX & WELLS HOLDINGS LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024
17. | Fixed asset investments
| Group
|  | Listed investments | Investment in joint ventures | Total
|  | £ | £ | £
| Cost or valuation |  |  |
| At 1 January 2024 | 36,550 | 701,814 | 738,364
| Share of profit/(loss) | - | 127,685 | 127,685
| At 31 December 2024 | 36,550 | 829,499 | 866,049
| Company
|  | Investments in subsidiary companies | Investment in joint ventures | Total
|  | £ | £ | £
| Cost or valuation |  |  |
| At 1 January 2024 | 2,200 | 60 | 2,260
| At 31 December 2024 | 2,200 | 60 | 2,260
| Subsidiary undertakings
| The following were subsidiary undertakings of the Company:
| Name | Registered office | Principal activity | Class of shares | Holding
| Knox & Wells Limited | Creswell House, Field Way, Cardiff, CF14 4UH | Building Contractors | Ordinary | 100%
| K & W Property Trading Limited | Creswell House, Field Way, Cardiff, CF14 4UH | Property development and investment | Ordinary | 100%
| K & W Bloodstock Limited | Creswell House, Field Way, Cardiff, CF14 4UH | Trading and investment in bloodstock | Ordinary | 100%
| QS Cardiff Properties Limited | Creswell House Field Way, Heath, Cardiff, CF14 4UH | Buying and selling real estate | Ordinary | 100%
Page 34
KNOX & WELLS HOLDINGS LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024 Subsidiary undertakings (continued)
| The aggregate of the share capital and reserves as at 31 December 2024 and the profit or loss for the year ended on that date for the subsidiary undertakings were as follows:
| Name | Aggregate of share capital and reserves | Profit/(Loss)
|  | £ | £
| Knox & Wells Limited | 4,210,785 | 756,816
| K & W Property Trading Limited | (133,377) | 31,445
| K & W Bloodstock Limited | 960,032 | (533)
| QS Cardiff Properties Limited | 48,845 | 48,785
| Joint ventures
| The following were joint ventures of the Company:
| Name | Registered office | Principal activity | Holding
| K & W Developments Limited | Cresswell House, Field Way, Cardiff, South Glamorgan, CF14 4UH | Property Trading, development and investment | 50%
| K & W Developments (Wales) Ltd | Cresswell House, Field Way, Cardiff, South Glamorgan, CF14 4UH | Property development and trading | 50%
| Knox and Wells Holdings Limited 50% interest in K & W Developments (Wales) Ltd is held via its 50% shareholding in K & W Developments Limited.
. | K&W Developments Limited
|  | 2024 | 2023
|  | £ | £
| Aggregate of share capital and reserves | 2,188,680 | 1,931,517
| Profit | 257,162 | 358,133
. | K&W Developments (Wales) Ltd
|  | 2024 | 2023
|  | £ | £
| Aggregate of share capital and reserves | (2,070,497) | (2,068,707)
| Loss | (1,790) | (3,023)
Page 35
KNOX & WELLS HOLDINGS LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024
18. | Investment property
| Group
|  | Investment property
|  | £
| Valuation |
| At 1 January 2024 | 2,000,000
| Additions at cost | 1,300,000
| Disposals | (1,300,000)
| At 31 December 2024 | 2,000,000
The 2024 valuations were made by independent valuation, on an open market value for existing use basis.
| If the Investment properties had been accounted for under the historic cost accounting rules, the properties would have been measured as follows:
|  |  |  |  | 2024
|  |  |  |  | £
| Historic cost | 700,000
|  | 700,000
| Company
|  | Freehold investment property
|  | £
| Valuation |
| At 1 January 2024 | 2,000,000
| Disposals | (1,300,000)
| At 31 December 2024 | 700,000
The 2024 valuations were made by independent valuation, on an open market value for existing use basis. Page 36
KNOX & WELLS HOLDINGS LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024
19. | Stocks
|  | Group | Group | Company | Company
|  | 2024 | 2023 | 2024 | 2023
|  | £ | £ | £ | £
| Stocks | 4,127,759 | 2,427,850 | 9,406 | 9,406
|  | 4,127,759 | 2,427,850 | 9,406 | 9,406
20. | Debtors
|  | Group | Group | Company | Company
|  | 2024 | 2023 | 2024 | 2023
|  | £ | £ | £ | £
| Trade debtors | 5,257,793 | 5,868,929 | 25,887 | 25,500
| Amounts owed by group undertakings | - | - | 2,696,109 | 1,396,109
| Amounts owed by joint ventures and associated undertakings | 1,780,037 | 1,594,925 | 1,368,747 | 1,368,747
| Other debtors | 42,615 | 65,215 | 24,597 | 24,597
| Prepayments and accrued income | 68,244 | 52,497 | - | -
|  | 7,148,689 | 7,581,566 | 4,115,340 | 2,814,953
21. | Current asset investments
|  | Group | Group | Company | Company
|  | 2024 | 2023 | 2024 | 2023
|  | £ | £ | £ | £
| Other investments | 1,304,454 | 1,295,583 | - | -
| Listed investments | 200,997 | 163,283 | 200,997 | 163,283
|  | 1,505,451 | 1,458,866 | 200,997 | 163,283
| Market value of listed investments at 31 December 2024 held by the group and the company is £200,997 (2023 - £163,283). Listed investments are carried at fair value.
Page 37
KNOX & WELLS HOLDINGS LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024
22. | Cash and cash equivalents
|  | Group | Group | Company | Company
|  | 2024 | 2023 | 2024 | 2023
|  | £ | £ | £ | £
| Cash at bank and in hand | 1,701,850 | 5,480,525 | 253,395 | 403,892
|  | 1,701,850 | 5,480,525 | 253,395 | 403,892
23. | Creditors: Amounts falling due within one year
|  | Group | Group | Company | Company
|  | 2024 | 2023 | 2024 | 2023
|  | £ | £ | £ | £
| Trade creditors | 6,677,126 | 7,939,885 | - | -
| Amounts owed to group companies | - | - | 1,803,614 | 1,241,798
| Corporation tax | 235,369 | 293,859 | 30,058 | 48,047
| Other taxation and social security | 607,946 | 1,363,268 | 1,501 | 7,878
| Other creditors | 167,095 | 946,552 | - | 745,000
| Accruals and deferred income | 492,239 | 1,023,720 | 36,660 | 36,660
|  | 8,179,775 | 11,567,284 | 1,871,833 | 2,079,383
24. | Deferred taxation
| Group
|  | 2024
|  | £
| Charged to profit or loss | (62,800)
| At end of year | (62,800)
Page 38
KNOX & WELLS HOLDINGS LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024 24.Deferred taxation (continued)
| Company
|  | 2024
|  | £
| Charged to profit or loss | (62,800)
| At end of year | (62,800)
|  | Group | Company
|  | 2024 | 2024
|  | £ | £
| Accelerated capital allowances | (62,800) | (62,800)
|  | (62,800) | (62,800)
Page 39
KNOX & WELLS HOLDINGS LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024
25. | Share capital
|  |  |  |  | 2024 | 2023
|  |  |  |  | £ | £
|  | Allotted, called up and fully paid |  |
|  | 1,800 (2023 - 1,800) Ordinary shares of £1.00 each | 1,800 | 1,800
26. | Pension commitments
The subsidiary company Knox & Wells Limited, operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the subsidiary company in an independently administered fund. The pension charge represents contributions payable by the company to the pension fund and amounted to £305,613 (2023 - £608,258).
27. | Controlling party
The directors do not consider there to be a ultimate controlling party.
Page 40