Company registration number 01017850 (England and Wales)
KS BRANDS LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 28 FEBRUARY 2023
KS BRANDS LIMITED
COMPANY INFORMATION
Directors
R J Mulchand
S R Mulchand
Secretary
C Price
Company number
01017850
Registered office
Laltex House
Leigh Commerce Park
Greenfold Way
Leigh
Lancashire
United Kingdom
WN7 3XH
Auditor
Azets Audit Services
Ship Canal House
98 King Street
Manchester
M2 4WU
Bankers
HSBC Bank PLC
17th Floor
Landmark
St Peter's Square
1 Oxford Street
Manchester
United Kingdom
M1 4PB
Barclays Bank plc
1st floor
3 Hardman Street
Spinningfields
Manchester
United Kingdom
M3 3HF
KS BRANDS LIMITED
CONTENTS
Page
Strategic report
1
Directors' report
2
Independent auditor's report
3 - 5
Statement of income and retained earnings
6
Balance sheet
7
Notes to the financial statements
8 - 16
KS BRANDS LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 28 FEBRUARY 2023
- 1 -
The directors present the strategic report for the year ended 28 February 2023.
Business review and key performance indicators
The directors are satisfied with the operating results for the year given the competitive environment in which it operates.
The Company has continued to focus on developing its relationships with both clients and suppliers, alongside introducing new products which have contributed to the results summarised below.
The Company’s trading revenue increased to £24.84m (2022: £16.58m).
The figures referred to above are considered to be one of the key financial measures upon which the business is monitored and controlled by the directors.
The reported results for the year include fair value gains and losses in respect of forward exchange contracts, the effects of which are shown below the operating profit on the face of the profit and loss account.
In preparing the financial statements, strategic report and directors’ report, the board have fully considered points a – f as set out in s172 of the Companies Act 2006.
Principal risks and uncertainties
Financial Risk Management
The main risks arising are currency exchange risk and credit risk. The directors have reviewed and agreed policies for managing each of these risks.
Currency Exchange Risk
The Company seeks to manage currency exchange risk through a mixture of hedging instruments and regular reviews by the directors.
Credit Risk
The Company’s financial assets include amounts due from its customers. This potential risk is managed by our experienced team members and mitigated by the use of credit insurance where applicable.
Year end position
The Company’s overall position at year-end reflects the financial strength of the business, which is considered by the directors to be well positioned for the future.
The directors would like to acknowledge and give thanks for the incredible hard work and dedication of it’s loyal team members during this financial period.
By order of the board
R J Mulchand
Director
28 November 2023
KS BRANDS LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 28 FEBRUARY 2023
- 2 -
The directors present their annual report and financial statements for the year ended 28 February 2023.
Principal activities
The principal activity of the company continued to be the the purchase and sale of consumer goods.
Results and dividends
The results for the year are set out on page 6.
Ordinary dividends were declared amounting to £1,500,000. The directors do not recommend payment of a further dividend.
Directors
The directors who held office during the year and up to the date of signature of the financial statements were as follows:
R J Mulchand
S R Mulchand
Statement of directors' responsibilities
The directors are responsible for preparing the annual report and the 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 United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). 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 of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to:
select suitable accounting policies and then apply them consistently;
make judgements 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 company 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 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 hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
Statement of disclosure to auditor
So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the company’s auditor is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the company’s auditor is aware of that information.
By order of the board
C Price
Secretary
28 November 2023
KS BRANDS LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBER OF KS BRANDS LIMITED
- 3 -
Opinion
We have audited the financial statements of KS Brands Limited (the 'company') for the year ended 28 February 2023 which comprise the statement of income and retained earnings, the balance sheet and notes to the financial statements, including 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 company's affairs as at 28 February 2023 and of its 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.
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 company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’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 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.
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.
Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of our audit:
the information given in the 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 strategic report and the directors' report have been prepared in accordance with applicable legal requirements.
KS BRANDS LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBER OF KS BRANDS LIMITED
- 4 -
Matters on which we are required to report by exception
In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the 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, or returns adequate for our audit have not been received from branches not visited by us; or
the financial statements are not in agreement with the accounting records and returns; or
certain disclosures of remuneration specified by law are not made; or
we have not received all the information and explanations we require for our audit.
Responsibilities of directors
As explained more fully in the directors' responsibilities statement, 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 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 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 financial statements.
A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.
KS BRANDS LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBER OF KS BRANDS LIMITED
- 5 -
Extent to which the audit was considered capable of detecting irregularities, including fraud
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above and on the Financial Reporting Council’s website, to detect material misstatements in respect of irregularities, including fraud.
We obtain and update our understanding of the entity, its activities, its control environment, and likely future developments, including in relation to the legal and regulatory framework applicable and how the entity is complying with that framework. Based on this understanding, we identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. This includes consideration of the risk of acts by the entity that were contrary to applicable laws and regulations, including fraud.
In response to the risk of irregularities and non-compliance with laws and regulations, including fraud, we designed procedures which included:
Enquiry of management and those charged with governance around actual and potential litigation and claims as well as actual, suspected and alleged fraud;
Assessing the extent of compliance with the laws and regulations considered to have a direct material effect on the financial statements or the operations of the company through enquiry and inspection;
Reviewing financial statement disclosures and testing to supporting documentation to assess compliance with applicable laws and regulations;
Performing audit work over the risk of management bias and override of controls, including testing of journal entries and other adjustments for appropriateness, evaluating the business rationale of significant transactions outside the normal course of business and reviewing accounting estimates for indicators of potential bias.
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 of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
This report is made solely to the company’s shareholder, 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 shareholder 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 shareholder, for our audit work, for this report, or for the opinions we have formed.
Graham Rigby
Senior Statutory Auditor
For and on behalf of Azets Audit Services
28 November 2023
Chartered Accountants
Statutory Auditor
Ship Canal House
98 King Street
Manchester
M2 4WU
KS BRANDS LIMITED
STATEMENT OF INCOME AND RETAINED EARNINGS
FOR THE YEAR ENDED 28 FEBRUARY 2023
- 6 -
2023
2022
Notes
£
£
Turnover
3
24,848,026
16,587,003
Cost of sales
(12,378,823)
(9,490,585)
Gross profit
12,469,203
7,096,418
Distribution costs
(1,308,843)
(863,244)
Administrative expenses
(6,526,222)
(3,854,015)
Other operating income
15,849
Operating profit
4
4,634,138
2,395,008
Interest receivable and similar income
34,644
1,383
Amounts written off investments
(684)
-
Profit before exceptional items
4,668,098
2,396,391
Exceptional gains and losses on foreign exchange derivatives
(9,612)
94,199
Profit before taxation
4,658,486
2,490,590
Tax on profit
6
(782,016)
(469,758)
Profit for the financial year
3,876,470
2,020,832
Retained earnings brought forward
6,555,872
6,035,040
Dividends
7
(1,500,000)
(1,500,000)
Retained earnings carried forward
8,932,342
6,555,872
The profit and loss account has been prepared on the basis that all operations are continuing operations.
KS BRANDS LIMITED
BALANCE SHEET
AS AT
28 FEBRUARY 2023
28 February 2023
- 7 -
2023
2022
Notes
£
£
£
£
Fixed assets
Tangible assets
8
1,142,158
697,585
Investments
9
684
1,142,158
698,269
Current assets
Stocks
10
7,611,991
5,884,232
Debtors
11
3,370,242
2,421,629
Cash at bank and in hand
5,416,248
4,989,319
16,398,481
13,295,180
Creditors: amounts falling due within one year
12
(8,200,463)
(7,138,314)
Net current assets
8,198,018
6,156,866
Total assets less current liabilities
9,340,176
6,855,135
Provisions for liabilities
Deferred tax liability
13
242,834
134,263
(242,834)
(134,263)
Net assets
9,097,342
6,720,872
Capital and reserves
Called up share capital
15
165,000
165,000
Profit and loss reserves
8,932,342
6,555,872
Total equity
9,097,342
6,720,872
The financial statements were approved by the board of directors and authorised for issue on 28 November 2023 and are signed on its behalf by:
R J Mulchand
Director
Company Registration No. 01017850
KS BRANDS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 28 FEBRUARY 2023
- 8 -
1
Accounting policies
Company information
KS Brands Limited is a private company limited by shares incorporated in England and Wales. The registered office is Laltex House, Leigh Commerce Park, Greenfold Way, Leigh, Lancashire, United Kingdom, WN7 3XH.
1.1
Accounting convention
These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.
The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.
The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.
This company is a qualifying entity for the purposes of FRS 102, being a member of a group where the parent of that group prepares publicly available consolidated financial statements, including this company, which are intended to give a true and fair view of the assets, liabilities, financial position and profit or loss of the group. The company has therefore taken advantage of exemptions from the following disclosure requirements:
Section 4 ‘Statement of Financial Position’ – Reconciliation of the opening and closing number of shares;
Section 7 ‘Statement of Cash Flows’ – Presentation of a statement of cash flow and related notes and disclosures;
Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instrument Issues’ – Carrying amounts, interest income/expense and net gains/losses for each category of financial instrument; basis of determining fair values; details of collateral, loan defaults or breaches, details of hedges, hedging fair value changes recognised in profit or loss and in other comprehensive income;
Section 26 ‘Share based Payment’ – Share-based payment expense charged to profit or loss, reconciliation of opening and closing number and weighted average exercise price of share options, how the fair value of options granted was measured, measurement and carrying amount of liabilities for cash-settled share-based payments, explanation of modifications to arrangements;
Section 33 ‘Related Party Disclosures’ – Compensation for key management personnel.
The financial statements of the company are consolidated in the financial statements of Laltex & Co Limited. These consolidated financial statements are available from its registered office, Laltex House, Leigh Commerce Park, Greenfold Way, Leigh, Lancashire, WN7 3XH.
1.2
Going concern
Atruet the time of approving the financial statements, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.
1.3
Turnover
Turnover is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business, and is shown net of VAT and other sales related taxes. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.
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.
KS BRANDS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 28 FEBRUARY 2023
1
Accounting policies
(Continued)
- 9 -
1.4
Tangible fixed assets
Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.
Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:
Plant and equipment
25% straight line
Fixtures and fittings
15% straight line
Motor vehicles
25% reducing balance
The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is credited or charged to profit or loss.
1.5
Stocks
Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition.
At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.
1.6
Cash at bank and in hand
Cash at bank and in hand are basic financial assets and include cash in hand and deposits held at call with banks.
1.7
Financial instruments
The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the company's balance sheet when the company 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 debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method. Financial assets classified as receivable within one year are not amortised.
Impairment of financial assets
Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.
Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. 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.
KS BRANDS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 28 FEBRUARY 2023
1
Accounting policies
(Continued)
- 10 -
Derecognition of financial assets
Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the company transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.
Classification of 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 company after deducting all of its liabilities.
Basic financial liabilities
Basic financial liabilities, including creditors, are initially recognised at transaction price unless the arrangement constitutes a financing transaction. Financial liabilities classified as payable within one year are not amortised.
Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.
Other financial liabilities
Derivatives, including forward foreign exchange contracts, are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in profit or loss.
Derecognition of financial liabilities
Financial liabilities are derecognised when the company’s contractual obligations expire or are discharged or cancelled.
1.8
Equity instruments
Equity instruments issued by the company are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.
1.9
Taxation
The tax expense represents the sum of the tax currently payable and deferred tax.
Current tax
The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.
KS BRANDS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 28 FEBRUARY 2023
1
Accounting policies
(Continued)
- 11 -
Deferred tax
Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.
The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset when the company has a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.
1.10
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
1.11
Foreign exchange
The company's functional and presentational currency is GBP.
At each period end foreign currency monetary items are translated using the closing rate. Non-monetary items measured at historical cost are translated using the exchange rate at the date of the transaction and non-monetary items measured at fair value are measured using the exchange rate when fair value was determined.
Foreign exchange gains and losses resulting from the settlement of transactions and from the translation at period-end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognised in the profit and loss account.
Gains and losses on assets and liabilities held in foreign currencies comprise realised and unrealised amounts in respect of currency trading during the year, month on month retranslation of monetary assets and liabilities and the revaluation of open derivative instruments at the balance sheet date; such items are separately disclosed in the statement of income and retained earnings where material.
2
Judgements and key sources of estimation uncertainty
In the application of the company’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount 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. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.
KS BRANDS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 28 FEBRUARY 2023
2
Judgements and key sources of estimation uncertainty
(Continued)
- 12 -
Key sources of estimation uncertainty
The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are as follows.
Provision for doubtful debts
The directors have reviewed the trading balances owing to the company from its customers and made adequate provision for any debts where it is considered probable that the amount will not be recovered. The amounts would have otherwise been recognised in trade debtors.
Provision for slow moving stock
The directors have applied their knowledge of the operations of the business when reviewing the stock listing at the balance sheet and have made appropriate provision for any items deemed to be slow moving or obsolete. The charge to the profit and loss account is recognised in cost of sales.
3
Turnover
The whole of the turnover is attributable to the principal activity.
2023
2022
£
£
Turnover analysed by geographical market
United Kingdom
24,711,476
16,443,966
Rest of Europe
133,210
143,037
Rest of the World
3,340
-
24,848,026
16,587,003
4
Operating profit
2023
2022
Operating profit for the year is stated after charging/(crediting):
£
£
Government grants
-
(15,849)
Non audit fees
1,325
680
Fees payable to the company's auditor for the audit of the company's financial statements
3,375
2,950
Depreciation of owned tangible fixed assets
283,383
190,888
5
Employees
The average monthly number of persons (excluding directors) employed by the company during the year was:
2023
2022
Number
Number
Sales and administrative
86
68
Management
23
7
Total
109
75
KS BRANDS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 28 FEBRUARY 2023
5
Employees
(Continued)
- 13 -
Their aggregate remuneration comprised:
2023
2022
£
£
Wages and salaries
3,084,018
2,130,613
Social security costs
295,555
191,923
Pension costs
69,553
47,036
3,449,126
2,369,572
6
Taxation
2023
2022
£
£
Current tax
UK corporation tax on profits for the current period
757,168
362,283
Adjustments in respect of prior periods
(83,723)
958
Total current tax
673,445
363,241
Deferred tax
Origination and reversal of timing differences
108,571
106,517
Total tax charge
782,016
469,758
The actual charge for the year can be reconciled to the expected charge for the year based on the profit or loss and the standard rate of tax as follows:
2023
2022
£
£
Profit before taxation
4,658,486
2,490,590
Expected tax charge based on the standard rate of corporation tax in the UK of 19.00% (2022: 19.00%)
885,112
473,212
Tax effect of expenses that are not deductible in determining taxable profit
2,537
3,524
Adjustments in respect of prior years
(83,723)
958
Effect of change in corporation tax rate
26,057
25,569
Group relief
(10,386)
Enhanced capital allowances
(37,581)
(33,505)
Taxation charge for the year
782,016
469,758
KS BRANDS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 28 FEBRUARY 2023
- 14 -
7
Dividends
2023
2022
£
£
Equity dividends paid
1,500,000
1,500,000
8
Tangible fixed assets
Plant and equipment
Fixtures and fittings
Motor vehicles
Total
£
£
£
£
Cost
At 1 March 2022
1,346,679
1,487
92,613
1,440,779
Additions
686,119
7,238
43,905
737,262
Disposals
(20,626)
(20,626)
At 28 February 2023
2,032,798
8,725
115,892
2,157,415
Depreciation and impairment
At 1 March 2022
715,385
1,321
26,488
743,194
Depreciation charged in the year
264,021
851
18,511
283,383
Eliminated in respect of disposals
(11,320)
(11,320)
At 28 February 2023
979,406
2,172
33,679
1,015,257
Carrying amount
At 28 February 2023
1,053,392
6,553
82,213
1,142,158
At 28 February 2022
631,294
166
66,125
697,585
9
Fixed asset investments
2023
2022
£
£
Unlisted investments
684
10
Stocks
2023
2022
£
£
Finished goods and goods for resale
7,611,991
5,884,232
KS BRANDS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 28 FEBRUARY 2023
- 15 -
11
Debtors
2023
2022
Amounts falling due within one year:
£
£
Trade debtors
3,346,908
2,292,075
Amounts owed by group undertakings
58,706
Amounts owed by related undertakings
-
27,594
Prepayments and accrued income
23,334
43,254
3,370,242
2,421,629
12
Creditors: amounts falling due within one year
2023
2022
£
£
Import loans
566,694
637,557
Trade creditors
3,178,438
2,767,408
Amounts owed to group undertakings
1,856,228
1,999,826
Corporation tax
373,450
362,278
Other taxation and social security
518,564
644,903
Derivative financial instruments
10,284
672
Other creditors
10,945
8,733
Accruals and deferred income
1,685,860
716,937
8,200,463
7,138,314
Import loans are secured by a general pledge over the underlying documents and goods and an unlimited company guarantee given by Laltex & Co Limited, the company's parent undertaking.
13
Deferred taxation
The following are the major deferred tax liabilities and assets recognised by the company and movements thereon:
Liabilities
Liabilities
2023
2022
Balances:
£
£
Accelerated capital allowances
244,124
135,035
Short term timing differnces
(1,290)
(772)
242,834
134,263
KS BRANDS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 28 FEBRUARY 2023
13
Deferred taxation
(Continued)
- 16 -
2023
Movements in the year:
£
Liability at 1 March 2022
134,263
Charge to profit or loss
108,571
Liability at 28 February 2023
242,834
14
Retirement benefit schemes
2023
2022
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
69,553
47,036
The company operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the company in an independently administered fund.
15
Share capital
2023
2022
2023
2022
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
165,000
165,000
165,000
165,000
16
Financial commitments, guarantees and contingent liabilities
The company has given an unlimited cross-guarantee to the group's bankers in respect of the present and future indebtedness of Laltex & Co Limited, KS Brands Limited, Lloytron Limited (previously Lloytron Plc) and RJM International Limited. Present liabilities secured under this cross-guarantee, including bank loans, overdrafts, import loans and bills of exchange are disclosed within the financial statements of each company. In respect of future indebtedness the group's bankers have, in aggregate, provided letters of credit of £211,732 (2022: 933,051) across the four companies.
17
Related parties
In preparing these financial statements, advantage has been taken of the provision under Financial Reporting Standard 102 Section 33, which states that disclosure is not required of transactions with entities which are part of the group headed by Laltex & Co Limited.
During the year the company purchased goods for resale from a related party for £7,377,033 (2022: £3,421,803). At the year end, the company owed £3,119,058 (2022: £1,916,131) to the related party.
The amounts outstanding at the balance sheet date represent normal trade bills and do not include any substantial long term indebtedness.
18
Ultimate controlling party
The ultimate parent company is Laltex & Co Limited, a company registered in England and Wales. Copies of the group financial statements can be obtained from the parent company's registered office, Laltex House, Leigh Commerce Park, Greenfold Way, Leigh, Lancashire, WN7 3XH.
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