Company Registration Number: 11534723
31 MARCH 2026
KMF GROUP HOLDINGS LIMITED
COMPANY INFORMATION
KMF GROUP HOLDINGS LIMITED
CONTENTS
KMF GROUP HOLDINGS LIMITED
GROUP STRATEGIC REPORT
FOR THE YEAR ENDED 31 MARCH 2026
The directors have pleasure in presenting their report and the financial statements of the Group for the period ended 31 March 2026.
The principal activity of the Company during the period was that of a holding and investment company.
The principal activities of the subsidiaries during the period consisted of:
-The manufacture and fabrication of sheet metal products and precision engineered parts
-The design, manufacture and sale of bicycle components
-A holding and investment property company
The directors aim to present a balanced and comprehensive review of the development and performance of the business during the period and its position at the year end. The review is consistent with the size and non-complex nature of the business and is written in the context of the risks and uncertainties faced.
The market conditions in which the group operates are still extremely challenging due to the global economic climate and the competitive pressures within the industry.
Financial risk
The Group's operations expose it to a variety of financial risks that include the effect of changes in credit, liquidity and interest rate risk. The group has in place a risk management programme that seeks to limit the adverse effects on the financial performance of the group by monitoring levels of debt finance and the related finance costs. The group does not use derivative financial instruments to manage interest rate costs and as such no hedge accounting is applied.
Credit risk
The Group has implemented policies that require appropriate credit checks on customers before sales are made.
Liquidity risk
The directors believe that the group has sufficient funds available to support its activities in the future.
Foreign exchange risk
The Group has in place a risk management programme that seeks to limit the adverse effects on the financial performance of the group with regard to foreign currency exchange rate variance. The Group does not manage its exposure to foreign currency exchange rate variance on its foreign sales portfolio.
Financial risk
The Group's operations expose it to a variety of financial risks that include the effect of changes in credit, liquidity and interest rate risk. The group has in place a risk management programme that seeks to limit the adverse effects on the financial performance of the group by monitoring levels of debt finance and the related finance costs. The group does not use derivative financial instruments to manage interest rate costs and as such no hedge accounting is applied.
Credit risk
The Group has implemented policies that require appropriate credit checks on customers before sales are made.
Liquidity risk
The directors believe that the group has sufficient funds available to support its activities in the future.
Foreign exchange risk
The Group has in place a risk management programme that seeks to limit the adverse effects on the financial performance of the group with regard to foreign currency exchange rate variance. The Group does not manage its exposure to foreign currency exchange rate variance on its foreign sales portfolio.
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KMF GROUP HOLDINGS LIMITED
GROUP STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2026
The key financial performance indicators are those that communicate the financial performance and strength of the group as a whole. These being turnover, gross margin and return on capital employed.
Turnover for the year is £41,060,370 and is in line with expectations. Product mix is constantly changing, depending on the order base, and new products are constantly being developed.
The sales pipeline is strong, with exciting projects at the prototype stage, ensuring the sales outlook for 2026 and beyond is positive.
The gross profit percentage is 31.0% (2025 - 26.9%).
Return on capital employed is 10.9% (2025 - 3.2%) and is calculated by operating profit divided by total assets less current liabilities.
The directors have been seeking to increase turnover, contain operating costs, increase the number of customers, and improve product quality. To achieve these business targets, KMF continues to invest in new machinery and production processes in order to enhance the quality and delivery of customers products and control costs.
The recent inflationary pressure on wages and salaries, and the uncertainty around energy prices have challenged our cost base, and our customer base. We have worked hard to ensure that we are competitive, we have developed systems to control our costs and we should benefit significantly from this going forward.
Shareholders funds as at 31 March 2026 amounted to £15,874,835.
Turnover for the year is £41,060,370 and is in line with expectations. Product mix is constantly changing, depending on the order base, and new products are constantly being developed.
The sales pipeline is strong, with exciting projects at the prototype stage, ensuring the sales outlook for 2026 and beyond is positive.
The gross profit percentage is 31.0% (2025 - 26.9%).
Return on capital employed is 10.9% (2025 - 3.2%) and is calculated by operating profit divided by total assets less current liabilities.
The directors have been seeking to increase turnover, contain operating costs, increase the number of customers, and improve product quality. To achieve these business targets, KMF continues to invest in new machinery and production processes in order to enhance the quality and delivery of customers products and control costs.
The recent inflationary pressure on wages and salaries, and the uncertainty around energy prices have challenged our cost base, and our customer base. We have worked hard to ensure that we are competitive, we have developed systems to control our costs and we should benefit significantly from this going forward.
Shareholders funds as at 31 March 2026 amounted to £15,874,835.
The directors and management team are committed to a culture of continuous improvement and recognise that continued investment in facilities, equipment, technology and people are crucial to enable the group to continue to deliver the exceptional level of service that it is renowned for.
As part of the Group's continued growth strategy, the group has continued to invest in its overseas manufacturing facility, and utilised the skills of the UK Company. The directors are confident that the overseas operation will deliver consistent profits during the course of 2026/27, as the benefit of operational leverage will continue.
Executive board meetings are held monthly, with full board meetings held three times a year. Actual performance is compared to budget at these meetings and significant variances are investigated. The management of working capital is also reviewed at these meetings.
With the risks and uncertainties of the current economic climate, the directors are aware that any plans for the future development of the business may be subject to unforeseen future events outside of their control.
As part of the Group's continued growth strategy, the group has continued to invest in its overseas manufacturing facility, and utilised the skills of the UK Company. The directors are confident that the overseas operation will deliver consistent profits during the course of 2026/27, as the benefit of operational leverage will continue.
Executive board meetings are held monthly, with full board meetings held three times a year. Actual performance is compared to budget at these meetings and significant variances are investigated. The management of working capital is also reviewed at these meetings.
With the risks and uncertainties of the current economic climate, the directors are aware that any plans for the future development of the business may be subject to unforeseen future events outside of their control.
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KMF GROUP HOLDINGS LIMITED
GROUP STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2026
The directors consider, both individually and together, that they have acted in the way they consider in good faith, would be most likely to promote the success of the Company and the Group for the benefit of its members as a whole (having regard to the stakeholders and matters set out in S172 of the Act) in the decisions taken during the year.
- Our plans are designed to have long term beneficial impact on the Group and to contribute to its success by providing our customers with high-quality products. We achieve these objectives by continuing to monitor market trends, by investing in people and focusing on improving our customer service, along with continued focus on bringing new products and services to market that generate value for our customers, employees and stakeholders.
- Our employees are fundamental to the delivery of our plans. We aim to be a responsible and attractive employer in our approach to the pay and benefits our employees receive and the opportunities they have to grow their careers. The directors are committed to employees' health, wellbeing and training engaging with specialists for external training and providing in-house sessions where required.
- Our plans are formed by engagement with our suppliers and customers, enabling us to gain an in depth understanding of their needs and priorities. We aim to act responsibly and fairly in how we engage with all stakeholders.
- We consider the impact of the Group's operations on the community and environment. We aim to employ local people and utilise the services of local companies as far as is possible.
- As directors, our intention is to behave responsibly and ensure that management operates the business in a responsible manner, operating within the high standards of business conduct and good governance expected for a business such as ours, and in doing so, will contribute positively to the delivery of our plans.
- As directors, our intention is to behave responsibly towards our shareholders and treat them fairly and equally so that they too may benefit from the successful delivery of our plans.
- Our plans are designed to have long term beneficial impact on the Group and to contribute to its success by providing our customers with high-quality products. We achieve these objectives by continuing to monitor market trends, by investing in people and focusing on improving our customer service, along with continued focus on bringing new products and services to market that generate value for our customers, employees and stakeholders.
- Our employees are fundamental to the delivery of our plans. We aim to be a responsible and attractive employer in our approach to the pay and benefits our employees receive and the opportunities they have to grow their careers. The directors are committed to employees' health, wellbeing and training engaging with specialists for external training and providing in-house sessions where required.
- Our plans are formed by engagement with our suppliers and customers, enabling us to gain an in depth understanding of their needs and priorities. We aim to act responsibly and fairly in how we engage with all stakeholders.
- We consider the impact of the Group's operations on the community and environment. We aim to employ local people and utilise the services of local companies as far as is possible.
- As directors, our intention is to behave responsibly and ensure that management operates the business in a responsible manner, operating within the high standards of business conduct and good governance expected for a business such as ours, and in doing so, will contribute positively to the delivery of our plans.
- As directors, our intention is to behave responsibly towards our shareholders and treat them fairly and equally so that they too may benefit from the successful delivery of our plans.
This report was approved by the board and signed on its behalf.
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KMF GROUP HOLDINGS LIMITED
DIRECTOR'S REPORT
FOR THE YEAR ENDED 31 MARCH 2026
The director presents his report and the financial statements for the year ended 31 March 2026.
The director is responsible for preparing the Group strategic report, the Director's report and the consolidated financial statements in accordance with applicable law and regulations.
In preparing these financial statements, the director is required to:
∙select suitable accounting policies for the Group's financial statements and then apply them consistently;
∙make judgements 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 director is 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 him to ensure that the financial statements comply with the Companies Act 2006. He is 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 £1,211,703 (2025 - £112,129).
The directors have not recommended a final dividend.
The directors who served during the year were:
The directors are not expecting to make any significant changes in the nature of the business in the near future.
During the year, the policy of providing employees with information about the group has been continued through internal media methods in which employees have also been encouraged to present their suggestions and views on the Group's performance. Regular meetings are held between local management and employees to allow a free flow of information and ideas.
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KMF GROUP HOLDINGS LIMITED
DIRECTOR'S REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2026
The directors believe in building long term, strong and sustainable relationships with our customers and suppliers. This approach has enabled us to win long term contracts of supply with our customers.
The Group actively plays a part within the local community as it aims to employ local people and utilise the services of local companies as far as is possible. The directors are committed to employees' health, wellbeing and training engaging with specialists for external training and providing in-house sessions for team leaders and managers during working time.
The Group actively plays a part within the local community as it aims to employ local people and utilise the services of local companies as far as is possible. The directors are committed to employees' health, wellbeing and training engaging with specialists for external training and providing in-house sessions for team leaders and managers during working time.
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KMF GROUP HOLDINGS LIMITED
DIRECTOR'S REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2026
This section includes our mandatory reporting of greenhouse gas emissions for the year 1 April 2025 to 31 March 2026, the latest annual period for which the data is available, and is pursuant to the Companies Act 2006 (Strategic Report and Directors' Report) Regulations 2013.
The Group consumes electricity, gas and transport equivalents for its own offices and factory use. Consumption figures have been computed from utility bills provided by energy providers.
The Group consumes electricity, gas and transport equivalents for its own offices and factory use. Consumption figures have been computed from utility bills provided by energy providers.
The transport energy consumption in litres and carbon footprint in kgCO2e for the year ending 31 March 2026 is disclosed as follows:
The energy consumption in kWh and carbon footprint in kgCO2e for the year ending 31 March 2026 is disclosed as follows:
Total (kgCO2e) = 1,398,909 (2025 - 1,697,363)
We have selected an emissions intensity ratio of 'kgCO2e per £m of revenue' as, in our view, this provides the best comparative measure over time:-
2026 Intensity Ratio - 34kgCO2e per £m of revenue
2025 Intensity Ratio - 39kgCO2e per £m of revenue
The above data refers to energy consumed by KMF Precision Sheet Metal Limited. Energy consumed by other members of the Group are deemed negligible in comparison and therefore disclosure is not deemed necessary.
Reducing carbon emissions
The Group takes its responsibility to energy consumption and climate control very seriously and therefore takes steps to monitor and control usage with a commitment to reduce consumption.
During the year we have continued to assess and monitor our energy use and, where practicable, we have implemented measures to reduce the environmental impact of our activities.
Within our manufacturing facilities and offices we have also introduced various measures to reduce energy consumption. We continue to replace old equipment with newer, more efficient units.
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KMF GROUP HOLDINGS LIMITED
DIRECTOR'S REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2026
Information is not shown in the directors' report because it is shown in the strategic report under s414C(11). The strategic report includes a business review, principal risks and uncertainties and financial key performance indicators.
There have been no significant events affecting the Group since the year end.
Under section 487(2) of the Companies Act 2006, Armstrong Watson Audit Limited will be deemed to have been reappointed as auditors 28 days after these financial statements were sent to members or 28 days after the latest date prescribed for filing the accounts with the registrar, whichever is earlier.
This report was approved by the board and signed on its behalf.
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KMF GROUP HOLDINGS LIMITED
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF KMF GROUP HOLDINGS LIMITED
We have audited the financial statements of KMF Group Holdings Limited (the 'parent Company') and its subsidiaries (the 'Group') for the year ended 31 March 2026, which comprise the Consolidated statement of comprehensive income, the Consolidated statement of financial position, the Company statement of financial position, 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).
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the 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.
In auditing the financial statements, we have concluded that the director's 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 director with respect to going concern are described in the relevant sections of this report.
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KMF GROUP HOLDINGS LIMITED
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF KMF GROUP HOLDINGS LIMITED (CONTINUED)
The other information comprises the information included in the Annual Report other than the financial statements and our Auditors' report thereon. The director is 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 Director's 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 Director's 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 Director's report.
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KMF GROUP HOLDINGS LIMITED
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF KMF GROUP HOLDINGS 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 review of appropriate industry knowledge;
• we assessed the extent of compliance with the laws and regulations identified above through making enquiries of management; 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 Group’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; and
• considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations.
To address the risk of fraud through management bias and override of controls, we:
• performed analytical procedures as a risk assessment tool to identify any unusual or unexpected relationships;
• tested journal entries to identify unusual transactions; and tested the operating effectiveness of key controls over purchase cycles on a sample basis.
• reviewed the application of accounting policies with focus on those with heightened estimation uncertainty.
In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to:
• agreeing financial statement disclosures to underlying supporting documentation; and
• enquiring of management as to actual and potential litigation and claims.
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KMF GROUP HOLDINGS LIMITED
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF KMF GROUP HOLDINGS LIMITED (CONTINUED)
Due to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material misstatements in the financial statements, even though we have properly planned and performed our audit in accordance with auditing standards. For example, as with any audit, there remained a higher risk of nondetection of irregularities, as these may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal controls. We are not responsible for preventing fraud or non-compliance with laws and regulations and cannot be expected to detect all fraud and non-compliance with laws and regulations.
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.
This report is made solely to the Company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the Company's members those matters we are required to state to them in an Auditors' report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the Company and the Company's members, as a body, for our audit work, for this report, or for the opinions we have formed.
for and on behalf of
Chartered Accountants & Statutory Auditors
Skipton
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KMF GROUP HOLDINGS LIMITED
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 MARCH 2026
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KMF GROUP HOLDINGS LIMITED
REGISTERED NUMBER: 11534723
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
AS AT 31 MARCH 2026
The financial statements were approved and authorised for issue by the board and were signed on its behalf by:
The notes on pages 19 to 41 form part of these financial statements.
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KMF GROUP HOLDINGS LIMITED
REGISTERED NUMBER: 11534723
COMPANY STATEMENT OF FINANCIAL POSITION
AS AT 31 MARCH 2026
The financial statements were approved and authorised for issue by the board and were signed on its behalf by:
The notes on pages 19 to 41 form part of these financial statements.
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