THE KITCHEN WORKS (NORTH EAST) LIMITED


Directors	Mr C Chrystal
	Mr G Latimer


Registered Address	Millburn House Hexham Business Park
	Burn Lane
	Hexham
	NE46 3RU


Place of Business	Unit C, Euro House
	Armstrong Street
	Team Valley Trading Estate
	Gateshead
	NE11 0RQ


Registered Number	04639685 (England and Wales)

Notes to the Financial Statements
for the year ended 31 March 2025

1.	Accounting policies

	Statutory information
	The company is a private company limited by shares and registered in England and Wales. The company's registered number and registered office address can be found on the Company Information page.

	Basis of preparation
	The financial statements have been prepared under the historical cost convention on a going concern basis unless otherwise specified within these accounting policies and in accordance with Section 1A of Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and the Companies Act 2006.

	Functional and presentation currency
	The financial statements are presented in sterling and this is the functional currency of the company.

	Turnover policy
	Turnover is measured at the fair value of the consideration received or receivable, net of discounts and value added taxes. Turnover includes revenue earned from the sale of goods and/or the rendering of services. Turnover from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have transferred to the buyer. Turnover from the rendering of services is recognised by reference to the stage of completion of the contract. The stage of completion of a contract is measured by comparing the costs incurred for work performed to date to the total estimated contract costs.

Turnover policy

Turnover is measured at the fair value of the consideration received or receivable, net of discounts and value added taxes. Turnover includes revenue earned from the sale of goods and/or the rendering of services.

Turnover from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have transferred to the buyer. 

Turnover from the rendering of services is recognised by reference to the stage of completion of the contract. The stage of completion of a contract is measured by comparing the costs incurred for work performed to date to the total estimated contract costs.

	Defined contribution pension plan
	The company operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the company pays fixed contributions into a separate entity. Once the contributions have been paid the company has no further obligation. Contributions to defined contribution plans are expensed in the period to which they relate. Amounts not paid are shown in other creditors in the Statement of Financial Position. The assets of the plan are held separately from the company in independently administered funds.

Defined contribution pension plan

The company operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the company pays fixed contributions into a separate entity. Once the contributions have been paid the company has no further obligation. 

Contributions to defined contribution plans are expensed in the period to which they relate.  Amounts not paid are shown in other creditors in the Statement of Financial Position.  The assets of the plan are held separately from the company in independently administered funds.

	Current taxation
	Current tax is recognised on taxable profit for the current and past periods. Current tax is measured at the amounts of tax expected to pay or recover using the tax rates and laws that have been enacted or substantively enacted at the reporting date.

	Deferred tax
	Deferred tax is recognised in respect of all timing differences between the recognition of income and expenses in the financial statements and their inclusion in tax assessments. Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Deferred tax is measured using the tax rates and laws that have been enacted or substantively enacted by the reporting date and that are expected to apply to the reversal of the timing difference, except for revalued land and investment property where the tax rate that applies to the sale of the asset is used. Current and deferred tax assets and liabilities are not discounted.

Deferred tax

Deferred tax is recognised in respect of all timing differences between the recognition of income and expenses in the financial statements and their inclusion in tax assessments. Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. 

Deferred tax is measured using the tax rates and laws that have been enacted or substantively enacted by the reporting date and that are expected to apply to the reversal of the timing difference, except for revalued land and investment property where the tax rate that applies to the sale of the asset is used. Current and deferred tax assets and liabilities are not discounted.

	Intangible assets
	Intangible assets are initially recognised at cost. After recognition, under the cost model, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses.

	Tangible fixed assets and depreciation
	Tangible fixed assets are stated at cost or valuation less depreciation. 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 disposal are determined by comparing the proceeds with the carrying amount and are recognised in the Income Statement Depreciation is provided on all tangible fixed assets as follows:

Tangible fixed assets and depreciation

Tangible fixed assets are stated at cost or valuation less depreciation. 

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 disposal are determined by comparing the proceeds with the carrying amount and are recognised in the Income Statement

Depreciation is provided on all tangible fixed assets as follows:


	Reducing balance (%)	Straight line (years)
Land and buildings	-	50
Plant and machinery	20	3
Fixtures and fittings	25	-

	Finance leases and hire purchase contracts
	Assets held under finance leases which are leases where substantially all the risks and rewards of ownership of the asset have passed to the company, and hire purchase contracts are capitalised in the Statement of Financial Position. They are depreciated over the shorter of their useful lives or the term of the lease. All other lease arrangements are classified as an operating lease Payments made under operating leases are charged to the Income Statement on a straight line basis over the lease term.

Finance leases and hire purchase contracts

Assets held under finance leases which are leases where substantially all the risks and rewards of ownership of the asset have passed to the company, and hire purchase contracts are capitalised in the Statement of Financial Position. They are depreciated over the shorter of their useful lives or the term of the lease. All other lease arrangements are classified as an operating lease

Payments made under operating leases are charged to the Income Statement on a straight line basis over the lease term.

	Stocks and work in progress
	Stocks are valued at the lower of cost and estimated selling price (less any associated costs to enable such sales to complete). At each date of Statement of Financial Position, 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 the Income Statement. Work in progress is valued on the basis of direct costs plus attributable overheads based on normal level of activity. Provision is made for any foreseeable losses where appropriate. No element of profit is included in the valuation of work in progress.

Stocks and work in progress

Stocks are valued at the lower of cost and estimated selling price (less any associated costs to enable such sales to complete). 

At each date of Statement of Financial Position, 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 the Income Statement.

Work in progress is valued on the basis of direct costs plus attributable overheads based on normal level of activity. Provision is made for any foreseeable losses where appropriate. No element of profit is included in the valuation of work in progress.

	Trade and other debtors
	Short term debtors are measured at transaction price (which is usually the invoice price), less any impairment losses for bad and doubtful debts. Loans and other financial assets are initially recognised at transaction price including any transaction costs and subsequently measured at amortised cost determined using the effective interest method, less any impairment losses for bad and doubtful debts.

Trade and other debtors

Short term debtors are measured at transaction price (which is usually the invoice price), less any impairment losses for bad and doubtful debts. Loans and other financial assets are initially recognised at transaction price including any transaction costs and subsequently measured at amortised cost determined using the effective interest method, less any impairment losses for bad and doubtful debts.

	Trade and other creditors
	Short term creditors are measured at transaction price (which is usually the invoice price). Loans and other financial liabilities are initially recognised at transaction price net of any transaction costs and subsequently measured at amortised cost determined using the effective interest method.

2.	Average number of employees


		2025		2024
	Average number of employees during the year	38		35

3.	Intangible assets
	Intangible assets are not permitted to have an indefinite life and must be amortised over their estimated useful life. The estimated useful life of goodwill has been set at 20 years and the asset will be amortized on a straight line basis over that period.

	Goodwill	Total
	£	£
Cost or valuation
At 01 April 24	371,000	371,000
At 31 March 25	371,000	371,000
Amortisation and impairment
At 01 April 24	352,450	352,450
Charge for year	18,550	18,550
At 31 March 25	371,000	371,000
Net book value
At 31 March 25	-	-
At 31 March 24	18,550	18,550

4.	Tangible fixed assets

	Land & buildings	Plant & machinery	Vehicles	Total
	£	£	£	£
Cost or valuation
At 01 April 24	3,504	1,349,801	216,575	1,569,880
Additions	-	159,254	-	159,254
Disposals	-	(116,623)	(12,960)	(129,583)
At 31 March 25	3,504	1,392,432	203,615	1,599,551
Depreciation and impairment
At 01 April 24	239	857,201	94,820	952,260
Charge for year	70	113,948	30,160	144,178
On disposals	-	(49,797)	(11,844)	(61,641)
At 31 March 25	309	921,352	113,136	1,034,797
Net book value
At 31 March 25	3,195	471,080	90,479	564,754
At 31 March 24	3,265	492,600	121,755	617,620

5.	Stocks

	2025	2024
	£	£
Raw materials and consumables	82,500	82,500
Work in progress	110,000	110,000
Total	192,500	192,500

6.	Debtors: amounts due within one year

	2025	2024
	£	£
Trade debtors / trade receivables	151,720	121,326
Other debtors	22,109	10,928
Prepayments and accrued income	35,463	14,257
Total	209,292	146,511

7.	Creditors: amounts due within one year

	2025	2024
	£	£
Trade creditors / trade payables	368,998	396,312
Bank borrowings and overdrafts	25,000	25,000
Taxation and social security	154,664	86,674
Finance lease and HP contracts	157,049	161,174
Other creditors	9,054	3,143
Accrued liabilities and deferred income	5,451	5,047
Total	720,216	677,350


	The hire purchase liabilities are secured over the assets concerned.

8.	Creditors: amounts due after one year

	2025	2024
	£	£
Bank borrowings and overdrafts	4,167	29,167
Other creditors	241,589	298,258
Total	245,756	327,425


	The hire purchase liabilities of £241,589 (2024 - £298,258) are included in other creditors and are secured over the assets concerned.

9.	Provisions for liabilities
	Provisions are made where an event has taken place that gives the company a legal or constructive obligation that probably requires settlement by a transfer of economic benefit, and a reliable estimate of the settlement can be made.

	2025	2024
	£	£
Net deferred tax liability (asset)	138,000	151,000
Total	138,000	151,000

10.	Pension commitments
	The company operates a defined contributions pension scheme. The assets of the scheme are held separately from those of the Company in an independently administered fund.

11.	Other commitments
	At 31 March 2025 the company had future minimum lease payments under non-cancellable operating leases of £31,343 (2024: £28,890).

12.	Directors advances, credits and guarantees
	On 1 April 2024 the company owed a director £1,221. During the period this director was advanced a further £9,632 and made no repayments. As at 31 March 2025 this director owed the company £8,411. No interest was charged on this loan. The loan is unsecured and repayable upon demand. On 1 April 2024 the company owed a director £1,922. During the period this director was advanced a further £9,692 and made no repayments. As at 31 March 2025 this director owed the company £7,770. No interest was charged on this loan. The loan is unsecured and repayable upon demand.

12.

Directors advances, credits and guarantees

On 1 April 2024 the company owed a director £1,221. During the period this director was advanced a further £9,632 and made no repayments. As at 31 March 2025 this director owed the company £8,411. No interest was charged on this loan. The loan is unsecured and repayable upon demand.

On 1 April 2024 the company owed a director £1,922. During the period this director was advanced a further £9,692 and made no repayments. As at 31 March 2025 this director owed the company £7,770. No interest was charged on this loan. The loan is unsecured and repayable upon demand.

13.	Related party transactions
	Bank loans are secured by personal guarantees from the directors totalling £45,000 each. The directors are joint partners in a trading partnership. During the year the company rented business premises from the trading partnership for £25,000 (2024 - £27,000).

	Notes	2025		2024
		£	£	£	£
Fixed assets
Intangible assets	3		-		18,550
Tangible assets	4		564,754		617,620
			564,754		636,170
Current assets
Stocks	5	192,500		192,500
Debtors	6	209,292		146,511
Cash at bank and on hand		138,893		297,712
		540,685		636,723
Creditors amounts falling due within one year	7	(720,216)		(677,350)
Net current assets (liabilities)			(179,531)		(40,627)
Total assets less current liabilities			385,223		595,543
Creditors amounts falling due after one year	8		(245,756)		(327,425)
Provisions for liabilities	9		(138,000)		(151,000)
Net assets			1,467		117,118
Capital and reserves
Called up share capital			104		104
Share premium			882		882
Profit and loss account			481		116,132
Shareholders' funds			1,467		117,118