Kelvin kbb Limited - Accounts to registrar (filleted) - small 23.2.5

REGISTERED NUMBER: SC096647 (Scotland)

Unaudited Financial Statements for the Year Ended 30 June 2023

for

Kelvin kbb Limited

Page

Company Information

1

Balance Sheet

2

Notes to the Financial Statements

4

DIRECTORS:

R S Easton

J T M Martin

A K Rhodes

M J Mcluckie

SECRETARY:

A K Rhodes

REGISTERED OFFICE:

2 Hunt Hill

Cumbernauld

Glasgow

G68 9LF

REGISTERED NUMBER:

SC096647 (Scotland)

ACCOUNTANTS:

Douglas Home & Co Ltd

Chartered Accountants

47-49 The Square

Kelso

Roxburghshire

TD5 7HW

BANKERS:

Virgin Money

St Vincent Street Branch

14 Bothwell Street

Glasgow

G1 6QY

FIXED ASSETS

Property, plant and equipment

4

304,305

139,803

CURRENT ASSETS

Inventories

490,000

500,000

Debtors

5

994,477

887,332

Cash at bank

62,545

30,074

1,547,022

1,417,406

CREDITORS

Amounts falling due within one year

6

1,503,848

1,981,865

NET CURRENT ASSETS/(LIABILITIES)

43,174

(564,459

)

TOTAL ASSETS LESS CURRENT LIABILITIES

347,479

(424,656

)

CREDITORS

Amounts falling due after more than one year

7

255,567

6,730,335

NET ASSETS/(LIABILITIES)

91,912

(7,154,991

)

CAPITAL AND RESERVES

Called up share capital

100,000

102,104

Capital redemption reserve

3,604

1,500

Retained earnings

(11,692

)

(7,258,595

)

SHAREHOLDERS' FUNDS

91,912

(7,154,991

)

The company is entitled to exemption from audit under Section 477 of the Companies Act 2006 for the year ended 30 June 2023.

The members have not required the company to obtain an audit of its financial statements for the year ended 30 June 2023 in accordance with Section 476 of the Companies Act 2006.

The directors acknowledge their responsibilities for:

(a)	ensuring that the company keeps accounting records which comply with Sections 386 and 387 of the Companies Act 2006 and

(b)

preparing financial statements which give a true and fair view of the state of affairs of the company as at the end of each financial year and of its profit or loss for each financial year in accordance with the requirements of Sections 394 and 395 and which otherwise comply with the requirements of the Companies Act 2006 relating to financial statements, so far as applicable to the company.

The financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime.

In accordance with Section 444 of the Companies Act 2006, the Income Statement has not been delivered.

The financial statements were approved by the Board of Directors and authorised for issue on 21 October 2023 and were signed on its behalf by:

R S Easton - Director

1.	STATUTORY INFORMATION

Kelvin kbb Limited is a private company, limited by shares , registered in Scotland. The company's registered number and registered office address can be found on the Company Information page.

The presentation currency of the financial statements is the Pound Sterling (£).

2.	ACCOUNTING POLICIES

Basis of preparing the financial statements

These financial statements have been prepared in accordance with Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" including the provisions of Section 1A "Small Entities" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention.

Going concern

In assessing the basis of preparation of the financial statements, the directors have undertaken a rigorous assessment of going concern, considering financial forecasts and utilising scenario analysis to test the adequacy of the Company's liquidity. These include multiple downside scenarios that demonstrate the Company's resilience. The directors have also given consideration to the following factors:

-

We enjoy long-term contracts with our regional and national house builder customers. These supply agreements stretch over 12 months into the future, at any given time, and this is reflected in our forecasts.

-

Our customers are in the business of developing strategically acquired land into homes for the nation, the demand for which outstrips supply.

-

All of Kelvin's products contribute a gross contribution to overheads and all of Kelvin's customers contribute a gross contribution to overheads.

-

We have factored into the forecasts the current inflationary market conditions with the UK economy.

-

Our forecast has assumed that the business will continue to develop its digital platform enabling the business to service new markets and reduce exposure to the contract channel.

At the time of preparation, the forecast identified a number of scenarios where additional funding may be required dependent on future trading performance.

The Company has identified additional funding support as necessary to meet any further amounts that may be required to support the business in the 12 months from signing the accounts. The Directors are confident that the sufficient cash reserves will be available should they be required.

Significant judgements and estimates

The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the amounts reported for assets and liabilities as at the balance sheet date and the amounts reported for revenues and expenses during the year. However, the nature of estimation means that actual outcomes could differ from those estimates.

Revenue recognition

Revenue is recognised to the extent that the company obtains the right to consideration in exchange for its performance. Revenue is measured at the fair value of the consideration received, excluding discounts, rebates, VAT and other sales taxes or duty.

The following criteria must also be met before revenue is recognised:

Sale of goods

Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer, usually on dispatch of the goods, the amount of revenue can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the entity and the costs incurred or to be incurred in respect of the transaction can be measured reliably.

Tangible fixed assets

Tangible assets are stated at cost less accumulated depreciation and accumulated impairment losses. Such cost includes the cost of replacing parts of the tangible assets directly attributable to making the asset capable of operating as intended.

Depreciation is provided on all tangible assets, at rates calculated to write off the cost, less estimated residual value, of each asset on a systematic basis over its expected useful life as follows:

Plant and machinery

- 3 to 10 years

The carrying values of tangible fixed assets are reviewed for impairment when events or changes in circumstances indicate the carrying value may not be recoverable.

Impairment of non-financial assets

The Company perform an impairment test where there are indicators of impairment. If any such indication exists the company estimates the recoverable amount of the asset. If the recoverable amount is less than its carrying amount, the carrying amount of the asset is impaired and it is reduced to its recoverable amount through impairment in profit and loss unless the asset is carried at a revalued amount where the impairment loss of a revalued asset is a revaluation decrease.

An impairment loss recognised for all assets is reversed in a subsequent period if and only if the reasons for the impairment loss have ceased to apply.

Stocks

Stocks are stated at the lower of cost and net realisable value. Cost includes all costs incurred in bringing each product to its present location and condition, as follows:

Raw materials, consumables and goods for resale

-

purchase cost on a first-in, first-out basis

Work in progress and finished goods

-

cost of direct materials and labour plus attributable overheads based on a normal level of activity

Net realisable value is based on estimated selling price less any further costs expected to be incurred to completion and disposal.

Financial instruments

The company only enters into basic financial instruments transactions that result in the recognition of financial assets and liabilities like trade and other accounts receivable and payable, loans from banks and other third parties, loans to related parties and investments in non-puttable ordinary shares.

Debt instruments like loans and other accounts receivable and payable are initially measured at present value of the future payments and subsequently at amortised cost using the effective interest method; Debt instruments that are payable or receivable within one year, typically trade payables or receivables, are measured, initially and subsequently, at the undiscounted amount of the cash or other consideration expected to be paid or received. However if the arrangements of a short-term instrument constitute a financing transaction, like the payment of a trade debt deferred beyond normal business terms or financed at a rate of interest that is not a market rate or in case of an outright short-term loan not at market rate, the financial asset or liability is measured, initially and subsequently, at the present value of the future payments discounted at a market rate of interest for a similar debt instrument.

Taxation

Taxation for the year comprises current and deferred tax. Tax is recognised in the Income Statement, except to the extent that it relates to items recognised in other comprehensive income or directly in equity.

Current or deferred taxation assets and liabilities are not discounted.

Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date.

Deferred tax

Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date.

Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference.

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.

Foreign currencies

Assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the balance sheet date. Transactions in foreign currencies are translated into sterling at the rate of exchange ruling at the date of transaction. Exchange differences are taken into account in arriving at the operating result.

Hire purchase and leasing commitments

At inception the Company assesses agreements that transfer the right to use assets. The assessment considers whether the arrangement is, or contains, a lease based on the substance of the arrangement.

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 balance sheet and are depreciated over the shorter of the lease term and the asset's useful lives. A corresponding liability is recognised for the lower of the fair value of the leased asset and the present value of the minimum lease payments in the balance sheet. Lease payments are apportioned between the reduction of the lease liability and finance charges in the income statement so as to achieve a constant rate of interest on the remaining balance of the liability.

Rentals payable under operating leases are charged in the profit and loss account on a straight line basis over the lease term.

Pension costs and other post-retirement benefits

The company operates a defined contribution pension scheme. Contributions to defined contribution schemes are recognised in the profit and loss account in the period in which they become payable in accordance with the rules of the scheme.

3.	EMPLOYEES AND DIRECTORS

The average number of employees during the year was 85 (2022 - 96 ) .

4.	PROPERTY, PLANT AND EQUIPMENT

Plant and

machinery

etc

£

COST

At 1 July 2022

2,650,808

Additions

228,765

Disposals

(1,107,970

)

At 30 June 2023

1,771,603

DEPRECIATION

At 1 July 2022

2,511,005

Charge for year

48,900

Eliminated on disposal

(1,092,607

)

At 30 June 2023

1,467,298

NET BOOK VALUE

At 30 June 2023

304,305

At 30 June 2022

139,803

Fixed assets, included in the above, which are held under hire purchase contracts are as follows:

Plant and

machinery

etc

£

COST

At 1 July 2022

191,783

Additions

225,000

Transfer to ownership

(159,283

)

At 30 June 2023

257,500

DEPRECIATION

At 1 July 2022

86,173

Charge for year

21,516

Transfer to ownership

(65,035

)

At 30 June 2023

42,654

NET BOOK VALUE

At 30 June 2023

214,846

At 30 June 2022

105,610

5.

DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

30/6/23

30/6/22

£

£

Trade debtors

813,900

757,168

Other debtors

180,577

130,164

994,477

887,332

6.

CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

30/6/23

30/6/22

£

£

Hire purchase contracts (see note 8)

73,874

22,106

Trade creditors

439,945

521,837

Taxation and social security

683,326

874,082

Other creditors

306,703

563,840

1,503,848

1,981,865

7.

CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR

30/6/23

30/6/22

£

£

Hire purchase contracts (see note 8)

139,102

7,335

Other creditors

116,465

6,723,000

255,567

6,730,335

8.	LEASING AGREEMENTS

Minimum lease payments fall due as follows:

Hire purchase contracts

30/6/23

30/6/22

£

£

Net obligations repayable:

Within one year

73,874

22,106

Between one and five years

139,102

7,335

212,976

29,441

Non-cancellable operating

leases

30/6/23

30/6/22

£

£

Within one year

3,300

3,464

Between one and five years

651,037

428,875

654,337

432,339