KMT BUILDING SOLUTIONS LIMITED


Directors	Mr K Taylor
	Mrs M J Taylor


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


Registered Number	10593002 (England and Wales)

Notes to the Financial Statements
for the year ended 31 January 2026

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.

	Operating leases
	Where, substantially, all the risks and rewards of ownership of the asset do not transfer from the lessor to the company, the lease is treated as an operating lease. Rentals payable under operating leases are charged to the Income Statement on a straight-line basis over the period of the lease. Where the company is a lessor, rental income from operating leases is credited to the Income Statement on a straight-line basis over the lease term.

Operating leases

Where, substantially, all the risks and rewards of ownership of the asset do not transfer from the lessor to the company, the lease is treated as an operating lease. Rentals payable under operating leases are charged to the Income Statement on a straight-line basis over the period of the lease.

Where the company is a lessor, rental income from operating leases is credited to the Income Statement on a straight-line basis over the lease term.

	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.

	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 (%)
	Plant and machinery	25
	Vehicles	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.

	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.

	Government grants or assistance
	Grants are accounted under the accruals model as permitted by FRS 102. Grants relating to expenditure on tangible fixed assets are credited to the Income Statement at the same rate as the depreciation on the assets to which the grant relates. The deferred element of grants is included in creditors as deferred income. Grants of a revenue nature are recognised in the Income Statement in the same period as the related expenditure.

Government grants or assistance

Grants are accounted under the accruals model as permitted by FRS 102. Grants relating to expenditure on tangible fixed assets are credited to the Income Statement at the same rate as the depreciation on the assets to which the grant relates. The deferred element of grants is included in creditors as deferred income. 

Grants of a revenue nature are recognised in the Income Statement in the same period as the related expenditure.

2.	Average number of employees


		2026		2025
	Average number of employees during the year	2		2

3.	Tangible fixed assets

	Plant & machinery	Vehicles	Total
	£	£	£
Cost or valuation
At 01 February 25	63,659	37,532	101,191
Additions	2,400	-	2,400
At 31 January 26	66,059	37,532	103,591
Depreciation and impairment
At 01 February 25	44,595	19,681	64,276
Charge for year	5,366	4,463	9,829
At 31 January 26	49,961	24,144	74,105
Net book value
At 31 January 26	16,098	13,388	29,486
At 31 January 25	19,064	17,851	36,915

4.	Stocks

	2026	2025
	£	£
Work in progress	30,000	82,500
Total	30,000	82,500

5.	Debtors: amounts due within one year

	2026	2025
	£	£
Trade debtors / trade receivables	1,283	20,382
Other debtors	18,645	35,519
Total	19,928	55,901

6.	Creditors: amounts due within one year

	2026	2025
	£	£
Trade creditors / trade payables	20,453	34,605
Bank borrowings and overdrafts	18,253	33,277
Taxation and social security	11,440	11,918
Finance lease and HP contracts	4,383	7,558
Other creditors	5,019	68,256
Accrued liabilities and deferred income	878	814
Total	60,426	156,428

7.	Creditors: amounts due after one year

	2026	2025
	£	£
Bank borrowings and overdrafts	-	3,864
Other creditors	3,003	7,387
Total	3,003	11,251


	Finance lease and hire purchase contracts amounting to £3,003 (2025 - £7,387) are included within other creditors and are secured by the asset to which they relate.

8.	Provisions for liabilities

	2026	2025
	£	£
Net deferred tax liability (asset)	7,300	9,200
Total	7,300	9,200

9.	Operating lease commitments
	At 31 January 2026 the company had future minimum lease payments under non-cancellable operating leases of £58,990 (2025 - £45,474).

10.	Directors advances, credits and guarantees
	On 1 February 2025 the company owed the directors £68,256. During the period the directors were advanced £128,591 and repaid £57,358. As at 31 January 2026 the directors owed the company £2,977. Interest of £57 has been charged on this loan using HM Revenue and Customs official rate for beneficial loan arrangements. The loan is unsecured and repayable upon demand.

11.	Related party transactions
	At the balance sheet date the company owed £5,019 (2025 - £Nil) to Morpeth Business Hub Limited, a company in which one of the directors of KMT Building Solutions Limited is a director and shareholder.

	Notes	2026		2025
		£	£	£	£
Fixed assets
Tangible assets	3		29,486		36,915
			29,486		36,915
Current assets
Stocks	4	30,000		82,500
Debtors	5	19,928		55,901
Cash at bank and on hand		14,376		6,017
		64,304		144,418
Creditors amounts falling due within one year	6	(60,426)		(156,428)
Net current assets (liabilities)			3,878		(12,010)
Total assets less current liabilities			33,364		24,905
Creditors amounts falling due after one year	7		(3,003)		(11,251)
Provisions for liabilities	8		(7,300)		(9,200)
Net assets			23,061		4,454
Capital and reserves
Called up share capital			2		2
Profit and loss account			23,059		4,452
Shareholders' funds			23,061		4,454