REGISTERED NUMBER: 01635620 (England and Wales) |
GROUP STRATEGIC REPORT, |
REPORT OF THE DIRECTORS AND |
CONSOLIDATED FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 30 SEPTEMBER 2022 |
FOR |
KERMANDINE LIMITED |
REGISTERED NUMBER: 01635620 (England and Wales) |
GROUP STRATEGIC REPORT, |
REPORT OF THE DIRECTORS AND |
CONSOLIDATED FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 30 SEPTEMBER 2022 |
FOR |
KERMANDINE LIMITED |
KERMANDINE LIMITED (REGISTERED NUMBER: 01635620) |
CONTENTS OF THE CONSOLIDATED FINANCIAL STATEMENTS |
for the Year Ended 30 September 2022 |
Page |
Company Information | 1 |
Group Strategic Report | 2 |
Report of the Directors | 4 |
Report of the Independent Auditors | 5 |
Consolidated Income Statement | 9 |
Consolidated Other Comprehensive Income | 10 |
Consolidated Statement of Financial Position | 11 |
Company Statement of Financial Position | 12 |
Consolidated Statement of Changes in Equity | 13 |
Company Statement of Changes in Equity | 14 |
Consolidated Statement of Cash Flows | 15 |
Notes to the Consolidated Statement of Cash Flows | 16 |
Notes to the Consolidated Financial Statements | 17 |
KERMANDINE LIMITED |
COMPANY INFORMATION |
for the Year Ended 30 September 2022 |
DIRECTORS: |
SECRETARY: |
REGISTERED OFFICE: |
REGISTERED NUMBER: |
AUDITORS: |
Statutory Auditor |
Chartered Accountants |
Douglas Bank House |
Wigan Lane |
Wigan |
Lancashire |
WN1 2TB |
BANKERS: | National Westminster Bank plc |
4 Standishgate |
Wigan |
Lancashire |
WN1 2TB |
SOLICITORS: |
1 Scott Place |
2 Hardman Square |
Manchester |
M3 3AA |
KERMANDINE LIMITED (REGISTERED NUMBER: 01635620) |
GROUP STRATEGIC REPORT |
for the Year Ended 30 September 2022 |
The directors present their strategic report of the company and the group for the year ended 30 September 2022. |
The principal activities of the group in the year under review were that of the manufacture and sale of caravan holiday homes, the receipt of income from property and investments, and the provision of management services. |
REVIEW OF BUSINESS |
During the year the group produced a profit before taxation of £6,315,806 (2021: £4,826,806). Turnover increased over the previous year finishing at £39,524,681 (2021 - £32,146,949). Forecasts for the next twelve months anticipates continuing profitability. |
The majority of the group's trading activity is the manufacture and sale of caravan holiday homes and this has continued to operate profitably during the year, despite disruption of its production lines and deliveries to customers due to failures in the supply chain attributable to global material shortages and the aftermath of the Covid-19 pandemic and Brexit which disrupted the product lines and put planned despatch dates back. The board are, however, cautiously optimistic for a return to more normal operational conditions in the year ahead. |
The group is committed to substantial investment in product design and innovation to underpin it's reputation and competitive position in the marketplace. |
The group's secondary income stream derives from management of its commercial property portfolio which has continued to produce a consistent net income from lettings to non related but well established businesses, all of which suffered some measure of disruption associated with the continuing Covid-19 emergency. Nevertheless all of our tenants have maintained their rental commitments and are looking forward to improved trading conditions in the year ahead. |
The group's key performance indicators during the year were as follows:- |
2022 | 2021 |
£'000 | £'000 |
Sales | 39,525 | 32,147 |
Gross margin | 10,802 | 8,723 |
Occupancy ratio | 98.9% | 98.9% |
EBITDA | 6,741 | 5,176 |
Net assets | 26,585 | 24,273 |
The board and senior management also monitor operational efficiency and utilisation of resources by reference to other financial and non-financial performance indicators in such areas as sales, production, procurement, customer service, quality assurance, health and safety and overheads. |
PRINCIPAL RISKS AND UNCERTAINTIES |
The major part of the group's income is dependant on the continuing commercial success of its manufacturing subsidiary. The directors manage this risk by constantly monitoring the financial and operational performance of its subsidiary and the trends and competitive conditions in the market within which it operates. |
The group operates in a competitive market but reduces this risk by maintaining close relationships with customers and suppliers and developing award winning products. Ongoing investment and commitment to a process of continual improvement and development ensures that our product range is continually being updated and maintains it's market leading appeal. |
Credit risk is managed by strict evaluation and assessment protocols and rigorous collection procedures. |
KERMANDINE LIMITED (REGISTERED NUMBER: 01635620) |
GROUP STRATEGIC REPORT |
for the Year Ended 30 September 2022 |
STRATEGIC REPORT (CONT'D...) |
Cashflow and liquidity risk is closely monitored by The Directors to ensure all current and future obligations are adequately funded. |
Commercial Relationships |
The group's commercial property income arises from leases to unconnected commercial enterprises and is dependant on the continued success of their business activities. The group manages the risks involved by maintaining regular communication with tenants to keep abreast of their business performance, future plans and developments. |
FUTURE DEVELOPMENTS |
The Directors anticipate that market conditions will remain challenging for the year ahead with economic stability and confidence being a dominant factor. The group has no immediate plans for further property or business acquisitions but retains the ability to respond at short notice should suitable opportunities arise. |
FIXED ASSETS |
The changes in fixed assets, details of which are set out in the notes to the annexed financial statements, arose out of normal business requirements. |
ON BEHALF OF THE BOARD: |
KERMANDINE LIMITED (REGISTERED NUMBER: 01635620) |
REPORT OF THE DIRECTORS |
for the Year Ended 30 September 2022 |
The directors present their report with the financial statements of the company and the group for the year ended 30 September 2022. |
PRINCIPAL ACTIVITY |
the manufacture and sale of caravan holiday homes and residential park homes, the receipt of income from property and investments, and the provision of management services. |
DIVIDENDS |
The total distribution of dividends for the year ended 30 September 2022 will be £ 2,800,000 . |
A final dividend of £2,800,000 (2021 - £960,000) was paid in the year. |
DIRECTORS |
The directors shown below have held office during the whole of the period from 1 October 2021 to the date of this report. |
STATEMENT OF DIRECTORS' RESPONSIBILITIES |
The directors are responsible for preparing the Group Strategic Report, the Report of the Directors 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 the group and of the profit or loss of the group 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 and the group's transactions and disclose with reasonable accuracy at any time the financial position of the company and the group 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 the group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. |
STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS |
So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the group's auditors are unaware, and each director has taken all the steps that he or she ought to have taken as a director in order to make himself or herself aware of any relevant audit information and to establish that the group's auditors are aware of that information. |
ON BEHALF OF THE BOARD: |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
KERMANDINE LIMITED |
Opinion |
We have audited the financial statements of Kermandine Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 30 September 2022 which comprise the Consolidated Income Statement, Consolidated Other Comprehensive Income, Consolidated Statement of Financial Position, Company Statement of Financial Position, Consolidated Statement of Changes in Equity, Company Statement of Changes in Equity, Consolidated Statement of Cash Flows and Notes to the Consolidated Statement of Cash Flows, Notes to the Financial Statements, 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). |
In our opinion the financial statements: |
- | give a true and fair view of the state of the group's and of the parent company affairs as at 30 September 2022 and of the group's 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. |
Basis for opinion |
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 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 group's and 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 directors with respect to going concern are described in the relevant sections of this report. |
Other information |
The directors are responsible for the other information. The other information comprises the information in the Group Strategic Report and the Report of the Directors, but does not include the financial statements and our Report of the Auditors thereon. |
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. |
In connection with our audit of the financial statements, 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 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 the audit: |
- | the information given in the Group Strategic Report and the Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and |
- | the Group Strategic Report and the Report of the Directors have been prepared in accordance with applicable legal requirements. |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
KERMANDINE LIMITED |
Matters on which we are required to report by exception |
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 Report of the Directors. |
We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion: |
- | adequate accounting records have not been kept by the parent company, or returns adequate for our audit have not been received from branches not visited by us; or |
- | the parent company financial statements are not in agreement with the accounting records and returns; or |
- | certain disclosures of directors' 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 Statement of Directors' Responsibilities set out on page four, 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 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 group's and the parent 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 group or the parent company or to cease operations, or have no realistic alternative but to do so. |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
KERMANDINE LIMITED |
Auditors' 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 a Report of the Auditors 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. |
The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below: |
- we identified the laws and regulations applicable to the company through discussions with directors and other management, focusing on those that had a direct effect on the financial statements or that had a fundamental effect on it's operations. Key laws and regulations that we identified included the UK Companies Act, tax legislation, employment legislation and Health and Safety regulations. |
- we enquired of the directors and reviewed correspondence with HMRC for evidence of non-compliance with laws and regulations. We also reviewed controls the directors have in place to ensure compliance. |
We assessed the susceptibility of the company'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. |
- performed analytical procedures to identify any unusual or unexpected relationships; |
- tested journal entries to identify unusual transactions; |
- assessed whether judgements and assumptions made in determining the accounting estimates were indicative of potential bias. |
- we reviewed financial statements disclosures and tested to supporting documentation to assess compliance with relevant laws and regulations discussed above; |
- we enquired of the directors about actual and potential litigation and claims. |
Due to 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 non-detection 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 Report of the Auditors. |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
KERMANDINE LIMITED |
Use of our 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 a Report of the Auditors 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 |
Statutory Auditor |
Chartered Accountants |
Douglas Bank House |
Wigan Lane |
Wigan |
Lancashire |
WN1 2TB |
KERMANDINE LIMITED (REGISTERED NUMBER: 01635620) |
CONSOLIDATED |
INCOME STATEMENT |
for the Year Ended 30 September 2022 |
2022 | 2021 |
Notes | £ | £ | £ | £ |
TURNOVER | 3 | 39,524,681 | 32,146,949 |
Cost of sales | 28,722,992 | 23,424,337 |
GROSS PROFIT | 10,801,689 | 8,722,612 |
Distribution costs | 249,567 | 203,863 |
Administrative expenses | 4,176,885 | 3,697,210 |
4,426,452 | 3,901,073 |
6,375,237 | 4,821,539 |
Other operating income | 50,200 | 55,570 |
OPERATING PROFIT | 5 | 6,425,437 | 4,877,109 |
Interest receivable and similar income | 10,792 | 1,234 |
6,436,229 | 4,878,343 |
Interest payable and similar expenses | 6 | 120,423 | 51,537 |
PROFIT BEFORE TAXATION | 6,315,806 | 4,826,806 |
Tax on profit | 7 | 1,203,902 | 972,409 |
PROFIT FOR THE FINANCIAL YEAR |
Profit attributable to: |
Owners of the parent | 4,054,352 | 3,072,388 |
Non-controlling interests | 1,057,552 | 782,009 |
5,111,904 | 3,854,397 |
KERMANDINE LIMITED (REGISTERED NUMBER: 01635620) |
CONSOLIDATED |
OTHER COMPREHENSIVE INCOME |
for the Year Ended 30 September 2022 |
2022 | 2021 |
Notes | £ | £ |
PROFIT FOR THE YEAR | 5,111,904 | 3,854,397 |
OTHER COMPREHENSIVE INCOME |
Deferred tax on revaluation gain | - | (33,276 | ) |
Income tax relating to other comprehensive income |
- |
- |
OTHER COMPREHENSIVE INCOME FOR THE YEAR, NET OF INCOME TAX |
- |
(33,276 |
) |
TOTAL COMPREHENSIVE INCOME FOR THE YEAR |
5,111,904 |
3,821,121 |
Total comprehensive income attributable to: |
Owners of the parent | 4,054,352 | 3,825,102 |
Non-controlling interests | 1,057,552 | (3,981 | ) |
5,111,904 | 3,821,121 |
KERMANDINE LIMITED (REGISTERED NUMBER: 01635620) |
CONSOLIDATED STATEMENT OF FINANCIAL POSITION |
30 September 2022 |
2022 | 2021 |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Intangible assets | 10 | - | 1,537 |
Tangible assets | 11 | 6,301,731 | 6,236,445 |
Investments | 12 | - | - |
6,301,731 | 6,237,982 |
CURRENT ASSETS |
Stocks | 13 | 6,189,028 | 5,230,044 |
Debtors | 14 | 17,542,806 | 13,423,293 |
Cash at bank and in hand | 6,838,592 | 8,649,182 |
30,570,426 | 27,302,519 |
CREDITORS |
Amounts falling due within one year | 15 | 9,156,421 | 8,049,008 |
NET CURRENT ASSETS | 21,414,005 | 19,253,511 |
TOTAL ASSETS LESS CURRENT LIABILITIES |
27,715,736 |
25,491,493 |
CREDITORS |
Amounts falling due after more than one year |
16 |
(755,105 |
) |
(881,389 |
) |
PROVISIONS FOR LIABILITIES | 19 | (375,541 | ) | (336,918 | ) |
NET ASSETS | 26,585,090 | 24,273,186 |
CAPITAL AND RESERVES |
Called up share capital | 20 | 10,000 | 10,000 |
Revaluation reserve | 21 | 1,865,656 | 1,865,656 |
Capital redemption reserve | 21 | 4,720 | 4,720 |
Non distributable profit and |
loss account | 21 | 1,081,856 | 1,081,856 |
Retained earnings | 21 | 18,546,006 | 17,291,654 |
SHAREHOLDERS' FUNDS | 21,508,238 | 20,253,886 |
NON-CONTROLLING INTERESTS | 22 | 5,076,852 | 4,019,300 |
TOTAL EQUITY | 26,585,090 | 24,273,186 |
The financial statements were approved by the Board of Directors and authorised for issue on 6 June 2023 and were signed on its behalf by: |
Mr K D McAdam - Director |
KERMANDINE LIMITED (REGISTERED NUMBER: 01635620) |
COMPANY STATEMENT OF FINANCIAL POSITION |
30 September 2022 |
2022 | 2021 |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Intangible assets | 10 |
Tangible assets | 11 |
Investments | 12 |
CURRENT ASSETS |
Debtors | 14 |
NET CURRENT ASSETS |
TOTAL ASSETS LESS CURRENT LIABILITIES |
CAPITAL AND RESERVES |
Called up share capital | 20 |
Retained earnings | 21 |
SHAREHOLDERS' FUNDS |
Company's profit for the financial year | - | 960,000 |
The financial statements were approved by the Board of Directors and authorised for issue on |
KERMANDINE LIMITED (REGISTERED NUMBER: 01635620) |
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY |
for the Year Ended 30 September 2022 |
Called up | Capital |
share | Retained | Revaluation | redemption |
capital | earnings | reserve | reserve |
£ | £ | £ | £ |
Balance at 1 October 2020 | 10,000 | 15,162,295 | 1,898,932 | 4,720 |
Changes in equity |
Dividends | - | (960,000 | ) | - | - |
Total comprehensive income | - | 3,089,359 | (33,276 | ) | - |
Balance at 30 September 2021 | 10,000 | 17,291,654 | 1,865,656 | 4,720 |
Changes in equity |
Dividends | - | (2,800,000 | ) | - | - |
Total comprehensive income | - | 4,054,352 | - | - |
Balance at 30 September 2022 | 10,000 | 18,546,006 | 1,865,656 | 4,720 |
Non |
distributable |
profit |
and loss | Non-controlling | Total |
account | Total | interests | equity |
£ | £ | £ | £ |
Balance at 1 October 2020 | 1,098,827 | 18,174,774 | 4,023,281 | 22,198,055 |
Changes in equity |
Dividends | - | (960,000 | ) | - | (960,000 | ) |
Total comprehensive income | (16,971 | ) | 3,039,112 | (3,981 | ) | 3,035,131 |
Balance at 30 September 2021 | 1,081,856 | 20,253,886 | 4,019,300 | 24,273,186 |
Changes in equity |
Dividends | - | (2,800,000 | ) | - | (2,800,000 | ) |
Total comprehensive income | - | 4,054,352 | 1,057,552 | 5,111,904 |
Balance at 30 September 2022 | 1,081,856 | 21,508,238 | 5,076,852 | 26,585,090 |
KERMANDINE LIMITED (REGISTERED NUMBER: 01635620) |
COMPANY STATEMENT OF CHANGES IN EQUITY |
for the Year Ended 30 September 2022 |
Called up |
share | Retained | Total |
capital | earnings | equity |
£ | £ | £ |
Balance at 1 October 2020 |
Changes in equity |
Dividends | - | ( |
) | ( |
) |
Total comprehensive income | - |
Balance at 30 September 2021 |
Changes in equity |
Balance at 30 September 2022 |
KERMANDINE LIMITED (REGISTERED NUMBER: 01635620) |
CONSOLIDATED STATEMENT OF CASH FLOWS |
for the Year Ended 30 September 2022 |
2022 | 2021 |
Notes | £ | £ |
Cash flows from operating activities |
Cash generated from operations | 1 | 2,575,088 | 4,676,258 |
Interest paid | (120,423 | ) | (51,537 | ) |
Tax paid | (970,556 | ) | (867,567 | ) |
Net cash from operating activities | 1,484,109 | 3,757,154 |
Cash flows from investing activities |
Purchase of tangible fixed assets | (379,359 | ) | (508,892 | ) |
Sale of tangible fixed assets | - | 18,916 |
Interest received | 10,792 | 1,234 |
Net cash from investing activities | (368,567 | ) | (488,742 | ) |
Cash flows from financing activities |
Repayment of bank loan in year | (126,284 | ) | (5,134,123 | ) |
Amount introduced by directors | 152 | 36 |
Equity dividends paid | (2,800,000 | ) | (960,000 | ) |
Dividends paid to minority interests | - | (785,990 | ) |
Net cash from financing activities | (2,926,132 | ) | (6,880,077 | ) |
Decrease in cash and cash equivalents | (1,810,590 | ) | (3,611,665 | ) |
Cash and cash equivalents at beginning of year |
2 |
8,649,182 |
12,260,847 |
Cash and cash equivalents at end of year | 2 | 6,838,592 | 8,649,182 |
KERMANDINE LIMITED (REGISTERED NUMBER: 01635620) |
NOTES TO THE CONSOLIDATED STATEMENT OF CASH FLOWS |
for the Year Ended 30 September 2022 |
1. | RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS |
2022 | 2021 |
£ | £ |
Profit before taxation | 6,315,806 | 4,826,806 |
Depreciation charges | 313,796 | 298,577 |
Loss/(profit) on disposal of fixed assets | 1,814 | (9 | ) |
Finance costs | 120,423 | 51,537 |
Finance income | (10,792 | ) | (1,234 | ) |
6,741,047 | 5,175,677 |
Increase in stocks | (958,984 | ) | (2,158,303 | ) |
Increase in trade and other debtors | (4,119,513 | ) | (1,523,233 | ) |
Increase in trade and other creditors | 912,538 | 3,182,117 |
Cash generated from operations | 2,575,088 | 4,676,258 |
2. | CASH AND CASH EQUIVALENTS |
The amounts disclosed on the Statement of Cash Flows in respect of cash and cash equivalents are in respect of these Statement of Financial Position amounts: |
Year ended 30 September 2022 |
30/9/22 | 1/10/21 |
£ | £ |
Cash and cash equivalents | 6,838,592 | 8,649,182 |
Year ended 30 September 2021 |
30/9/21 | 1/10/20 |
£ | £ |
Cash and cash equivalents | 8,649,182 | 12,260,847 |
3. | ANALYSIS OF CHANGES IN NET FUNDS |
At 1/10/21 | Cash flow | At 30/9/22 |
£ | £ | £ |
Net cash |
Cash at bank and in hand | 8,649,182 | (1,810,590 | ) | 6,838,592 |
8,649,182 | (1,810,590 | ) | 6,838,592 |
Debt |
Debts falling due within 1 year | (123,750 | ) | - | (123,750 | ) |
Debts falling due after 1 year | (881,389 | ) | 126,284 | (755,105 | ) |
(1,005,139 | ) | 126,284 | (878,855 | ) |
Total | 7,644,043 | (1,684,306 | ) | 5,959,737 |
KERMANDINE LIMITED (REGISTERED NUMBER: 01635620) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS |
for the Year Ended 30 September 2022 |
1. | STATUTORY INFORMATION |
Kermandine Limited is a |
2. | ACCOUNTING POLICIES |
Basis of preparing the financial statements |
Basis of consolidation |
The group financial statements consolidate the financial statements of Kermandine Limited and its subsidiary undertakings Pemberton Caravans Limited, Pemberton Park and Leisure Homes Limited, Cresta Caravan Co Limited and N & E Houses Limited for the year to 30 September 2022 using the acquisition method. The results of subsidiary undertakings are included from the date of acquisition. |
Cresta Caravan Co Limited and N&E Houses Limited have not been audited as they are considered immaterial to the group by virtue of s405 Companies Act 2006. |
The consolidated financial statements include the results of the activities described in the Strategic Report, all of which are continuing. |
The company acts as a holding company for its subsidiaries. |
Significant judgements and estimates |
Preparation of the financial statements requires management to make significant judgements and estimates. The items in the financial statements where these judgements and estimates have been made include: |
a) Useful economic lives |
The useful economic lives of tangible fixed assets are assessed on an annual basis on the latest available information. Management believe that the useful economic lives being used currently are still appropriate. |
b) Warranty provision |
The warranty provision is estimated using information and assessments by experienced management. The basis on which this is calculated is set out in the accounting policies for provisions for liabilities. |
c) Valuation of Investment properties |
The value of the investment properties is considered annually by the directors. The current values are considered to be appropriate by management. |
d) Uninsured claims |
The uninsured claims provision is estimated by the directors based on their experience and information provided by their legal advisors. The current value of the provision is considered to be the best estimate of the obligation. |
KERMANDINE LIMITED (REGISTERED NUMBER: 01635620) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
for the Year Ended 30 September 2022 |
2. | ACCOUNTING POLICIES - continued |
Turnover |
Turnover comprises the invoice value of goods, rental income and related services provided by the group, net of value added tax and trade discounts, and arose wholly in the United Kingdom and Europe. |
The whole of the turnover is attributable to the group's principal activities. |
The group recognises revenue from the sale of goods when the significant risks and rewards of ownership has transferred to the buyer, which is usually at the point when the customer has taken delivery and legal title has passed. |
Rental and related services income is recognised in the income statement on a straight line basis over the lease term. |
Goodwill |
Goodwill on consolidation is being amortised over its estimated useful life of ten years. Acquisitions of subsidiaries and businesses are accounted for using the purchase method. The cost of the business combination is measured at the aggregate of the fair values (at the date of exchange) of assets given, liabilities incurred or assumed, and equity instruments issued by the group in exchange for control of the acquiree plus costs directly attributable to the business combination. |
Any excess of the cost of the business combination over the acquirer's interest in the net fair value of the identifiable assets and liabilities is recognised as goodwill. |
In the company's financial statements goodwill, being the amount paid in connection with the acquisition of a business in 2009, has been fully amortised. |
Intangible assets |
Intangible assets are initially measured at cost. After initial recognition, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses. |
KERMANDINE LIMITED (REGISTERED NUMBER: 01635620) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
for the Year Ended 30 September 2022 |
2. | ACCOUNTING POLICIES - continued |
Tangible fixed assets |
Depreciation is provided at the following annual rates in order to write off the cost less estimated residual value of each asset over its estimated useful life. |
Freehold property | - | 2% on cost |
Fixed plant & improvements to property | - | 15% on reducing balance |
Plant and machinery | - | 20% on reducing balance |
Fixtures & fittings | - | 25% on cost |
Motor vehicles | - | 33% on reducing balance |
Computer equipment | - | 33% on cost and 15% on reducing balance |
Tangible fixed assets are either stated at cost or professional valuation, less depreciation and any impairment. |
Impairment of assets |
At each reporting date assets are reviewed to determine whether there is any indication that those assets have suffered an impairment loss. If there is an indication of possible impairment, the recoverable amount of any affected asset is estimated and compared with its carrying amount. If the estimated recoverable amount is lower, the carrying amount is reduced to its estimated recoverable amount, and an impairment loss is recognised immediately in profit or loss. |
Where an impairment loss subsequently reverses, the carrying amount of the asset is increased to the revised estimate of its recoverable amount, to the extent that the increased carrying amount does not exceed the carrying amount that would have been determined (net of depreciation) had no impairment loss been recognised for the asset in prior years. A reversal of an impairment loss is recognised as income immediately. |
Investment property |
Investment property is shown at the most recent valuation. Any aggregate surplus or deficit arising from changes in fair value are recognised in the statement of comprehensive income. |
Government income |
The company has claimed monies from HMRC as part of the Government furlough scheme. This is recognised immediately the benefit becomes due. |
Stocks, work in progress and finished goods |
Stocks are valued at the lower of cost and estimated selling price less costs to complete and sell. |
Work in progress and finished goods are valued at cost plus an appropriate proportion of fixed and variable overheads. Provision is made for any foreseeable losses where appropriate. No element of profit is included in the valuation of work in progress or finished goods. |
Revenue is recognised from the sale of goods when the company has transferred the significant risks and rewards of ownership to the customer. |
Taxation |
Taxation for the year comprises current and deferred tax. Tax is recognised in the Consolidated 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 statement of financial position date. |
KERMANDINE LIMITED (REGISTERED NUMBER: 01635620) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
for the Year Ended 30 September 2022 |
2. | ACCOUNTING POLICIES - continued |
Deferred taxation |
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the statement of financial position 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 statement of financial position 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. |
Short term employee benefits |
The group operates a defined contribution pension scheme. Contributions payable for the year are charged to the profit and loss account in the period to which they relate. |
Short term employee benefits are recognised as an expense in the period in which they are incurred. |
Financial instruments |
The group only holds basic financial instruments, as defined under Section 11 of FRS102. |
Trade and other debtors are initially recognised at the transaction price and thereafter stated at amortised cost using the effective interest method, less impairment losses for bad and doubtful debts except where the effect of discounting would be immaterial. In such cases, the receivables are stated at cost less impairment losses for bad and doubtful debts. |
Short term financial liabilities, including trade and other creditors are measured at transaction price. Financial liabilities that have no stated interest rate and are payable within one year shall be measured at the undiscounted amount due, those payable after one year should be measured at amortised cost, using the effective interest rate method. |
Cash and cash equivalents |
Cash and cash equivalents comprise cash at bank and in hand. |
Interest bearing borrowings |
Interest bearing borrowings are recognised initially at fair value less attributable transaction costs. Subsequent to initial recognition, interest bearing borrowings are stated at amortised cost with any difference between the amount initially recognised and redemption value being recognised in the statement of comprehensive income over the period of the borrowings, together with any interest and fees payable, using the effective interest method. |
Investments in subsidiaries |
The consolidated financial statements incorporate the financial statements of the company and entities controlled by the group (its subsidiaries) using accounting policies consistent with these of the parent. All intra group transactions, balances, income and expenses are eliminated in full on consolidation. |
Investments in subsidiaries are accounted for at cost less impairment in the individual financial statements. |
KERMANDINE LIMITED (REGISTERED NUMBER: 01635620) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
for the Year Ended 30 September 2022 |
2. | ACCOUNTING POLICIES - continued |
Provisions for liabilities |
Warranty provisions are recognised when the company has a present obligation (legal or constructive) as a result of a past event, it is probable that the company will be required to settle the obligation, and a reliable estimate can be made of the amount of the obligation. |
The amount recognised as a provision is the best estimate of the consideration required to settle the present obligation at the end of the reporting period, taking into account the risks and uncertainties surrounding the obligation. |
Where the effect of the time value of money is material, the amount expected to be required to settle the obligation is recognised at present value using a pre-tax discount rate. The unwinding of the discount is recognised as a finance cost in profit or loss in the period it arises. |
3. | TURNOVER |
The turnover and profit before taxation are attributable to the one principal activity of the group. |
All of the group's turnover is within the EU. |
4. | EMPLOYEES AND DIRECTORS |
2022 | 2021 |
£ | £ |
Wages and salaries | 6,697,482 | 6,075,358 |
Social security costs | 568,660 | 526,887 |
Other pension costs | 133,698 | 127,086 |
7,399,840 | 6,729,331 |
The average number of employees during the year was as follows: |
2022 | 2021 |
Management | 1 | 1 |
Administration | 33 | 33 |
Production | 215 | 200 |
2022 | 2021 |
£ | £ |
Directors' remuneration | 28,000 | 28,000 |
5. | OPERATING PROFIT |
The operating profit is stated after charging/(crediting): |
2022 | 2021 |
£ | £ |
Depreciation - owned assets | 312,259 | 296,010 |
Loss/(profit) on disposal of fixed assets | 1,814 | (9 | ) |
Goodwill amortisation | 1,537 | 2,567 |
Auditors' remuneration | 24,926 | 23,475 |
Property income | (190,585 | ) | (209,098 | ) |
KERMANDINE LIMITED (REGISTERED NUMBER: 01635620) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
for the Year Ended 30 September 2022 |
6. | INTEREST PAYABLE AND SIMILAR EXPENSES |
2022 | 2021 |
£ | £ |
Bank interest | 76 | 22 |
Bank loan interest | 24,557 | 22,163 |
Dealer stock financing charge | 95,790 | 29,352 |
120,423 | 51,537 |
7. | TAXATION |
Analysis of the tax charge |
The tax charge on the profit for the year was as follows: |
2022 | 2021 |
£ | £ |
Current tax: |
UK corporation tax | 1,138,157 | 880,228 |
Over provision in previous years | 27,122 | - |
Total current tax | 1,165,279 | 880,228 |
Deferred tax | 38,623 | 92,181 |
Tax on profit | 1,203,902 | 972,409 |
Reconciliation of total tax charge included in profit and loss |
The tax assessed for the year is higher than the standard rate of corporation tax in the UK. The difference is explained below: |
2022 | 2021 |
£ | £ |
Profit before tax | 6,315,806 | 4,826,806 |
Profit multiplied by the standard rate of corporation tax in the UK of 19 % (2021 - 19 %) |
1,200,003 |
917,093 |
Effects of: |
Expenses not deductible for tax purposes | 1,195 | 1,198 |
Fixed asset differences | (33,689 | ) | 3,942 |
Remeasurement of deferred tax for changes in tax rates | 9,269 | 50,176 |
Overprovision from prior periods | 27,122 | - |
Roundings | 2 | - |
Total tax charge | 1,203,902 | 972,409 |
Tax effects relating to effects of other comprehensive income |
There were no tax effects for the year ended 30 September 2022. |
2021 |
Gross | Tax | Net |
£ | £ | £ |
Deferred tax on revaluation gain | (33,276 | ) | - | (33,276 | ) |
KERMANDINE LIMITED (REGISTERED NUMBER: 01635620) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
for the Year Ended 30 September 2022 |
8. | INDIVIDUAL INCOME STATEMENT |
As permitted by Section 408 of the Companies Act, the parent company has taken advantage of the exemption to produce its own income statement and has also adopted the disclosure exemption to present a statement of cash flows and related notes. |
9. | DIVIDENDS |
2022 | 2021 |
£ | £ |
Final | 2,800,000 | 960,000 |
10. | INTANGIBLE FIXED ASSETS |
Group |
Goodwill |
£ |
COST |
At 1 October 2021 |
and 30 September 2022 | 125,677 |
AMORTISATION |
At 1 October 2021 | 124,140 |
Amortisation for year | 1,537 |
At 30 September 2022 | 125,677 |
NET BOOK VALUE |
At 30 September 2022 | - |
At 30 September 2021 | 1,537 |
Company |
Goodwill |
£ |
COST |
At 1 October 2021 |
and 30 September 2022 |
AMORTISATION |
At 1 October 2021 |
and 30 September 2022 |
NET BOOK VALUE |
At 30 September 2022 |
At 30 September 2021 |
KERMANDINE LIMITED (REGISTERED NUMBER: 01635620) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
for the Year Ended 30 September 2022 |
11. | TANGIBLE FIXED ASSETS |
Group |
Fixed |
plant & |
improvements |
Freehold | Investment | to |
property | properties | Land | property |
£ | £ | £ | £ |
COST OR VALUATION |
At 1 October 2021 | 3,767,862 | 1,530,101 | 45,579 | 708,498 |
Additions | - | 24,490 | - | - |
Disposals | - | - | - | - |
At 30 September 2022 | 3,767,862 | 1,554,591 | 45,579 | 708,498 |
DEPRECIATION |
At 1 October 2021 | 150,714 | (48,060 | ) | - | 488,486 |
Charge for year | 75,357 | - | - | 33,002 |
Eliminated on disposal | - | - | - | - |
At 30 September 2022 | 226,071 | (48,060 | ) | - | 521,488 |
NET BOOK VALUE |
At 30 September 2022 | 3,541,791 | 1,602,651 | 45,579 | 187,010 |
At 30 September 2021 | 3,617,148 | 1,578,161 | 45,579 | 220,012 |
Fixtures |
Plant and | and | Motor | Computer |
machinery | fittings | vehicles | equipment | Totals |
£ | £ | £ | £ | £ |
COST OR VALUATION |
At 1 October 2021 | 2,256,409 | 46,575 | 409,966 | 122,188 | 8,887,178 |
Additions | 303,566 | 7,228 | 18,495 | 25,580 | 379,359 |
Disposals | (146,765 | ) | (4,590 | ) | - | - | (151,355 | ) |
At 30 September 2022 | 2,413,210 | 49,213 | 428,461 | 147,768 | 9,115,182 |
DEPRECIATION |
At 1 October 2021 | 1,661,641 | 38,401 | 249,503 | 110,048 | 2,650,733 |
Charge for year | 132,221 | 3,204 | 58,467 | 10,008 | 312,259 |
Eliminated on disposal | (145,124 | ) | (4,417 | ) | - | - | (149,541 | ) |
At 30 September 2022 | 1,648,738 | 37,188 | 307,970 | 120,056 | 2,813,451 |
NET BOOK VALUE |
At 30 September 2022 | 764,472 | 12,025 | 120,491 | 27,712 | 6,301,731 |
At 30 September 2021 | 594,768 | 8,174 | 160,463 | 12,140 | 6,236,445 |
KERMANDINE LIMITED (REGISTERED NUMBER: 01635620) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
for the Year Ended 30 September 2022 |
11. | TANGIBLE FIXED ASSETS - continued |
Group |
Cost or valuation at 30 September 2022 is represented by: |
Fixed |
plant & |
improvements |
Freehold | Investment | to |
property | properties | Land | property |
£ | £ | £ | £ |
Valuation in 2003 | - | 547,954 | - | - |
Valuation in 2010 | 759,330 | 236,000 | - | - |
Valuation in 2014 | 115,546 | 82,853 | - | - |
Valuation in 2019 | 259,318 | 237,677 | - | - |
Cost | 2,633,668 | 450,107 | 45,579 | 708,498 |
3,767,862 | 1,554,591 | 45,579 | 708,498 |
Fixtures |
Plant and | and | Motor | Computer |
machinery | fittings | vehicles | equipment | Totals |
£ | £ | £ | £ | £ |
Valuation in 2003 | - | - | - | - | 547,954 |
Valuation in 2010 | - | - | - | - | 995,330 |
Valuation in 2014 | - | - | - | - | 198,399 |
Valuation in 2019 | - | - | - | - | 496,995 |
Cost | 2,413,210 | 49,213 | 428,461 | 147,768 | 6,876,504 |
2,413,210 | 49,213 | 428,461 | 147,768 | 9,115,182 |
If freehold property had not been revalued they would have been included at the following historical cost: |
2022 | 2021 |
£ | £ |
Cost | 2,633,668 | 2,633,668 |
Aggregate depreciation | 674,859 | 622,186 |
The freehold and investment properties were revalued in September 2019 by John D Morgan BSc (HONS) MSc MRICS from Mason Owen Property Consultants. The directors reviewed the valuations and decided that they are not materially different from the amounts already being carried in the balance sheet. |
KERMANDINE LIMITED (REGISTERED NUMBER: 01635620) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
for the Year Ended 30 September 2022 |
12. | FIXED ASSET INVESTMENTS |
Company |
Unlisted |
investments |
£ |
COST |
At 1 October 2021 |
and 30 September 2022 |
NET BOOK VALUE |
At 30 September 2022 |
At 30 September 2021 |
The group or the company's investments at the Statement of Financial Position date in the share capital of companies include the following: |
Subsidiary |
Subsidiary |
Principal Activity |
% Holding |
Direct/Indirect Holding |
Pemberton Caravans Limited | Property investment company | 100% | Direct |
Pemberton Park and Leisure Homes Limited |
Sale & manufacture of caravan holiday homes |
77.45% |
Indirect |
Cresta Caravan Co. Limited | Dormant | 100% | Indirect |
N & E Houses Limited | Dormant | 100% | Indirect |
13. | STOCKS |
Group |
2022 | 2021 |
£ | £ |
Raw materials | 3,217,522 | 2,623,156 |
Work-in-progress | 473,750 | 407,727 |
Finished goods | 2,497,756 | 2,199,161 |
6,189,028 | 5,230,044 |
14. | DEBTORS |
Group | Company |
2022 | 2021 | 2022 | 2021 |
£ | £ | £ | £ |
Amounts falling due within one year: |
Trade debtors | 16,391,689 | 12,212,802 |
Other debtors | 806,527 | 991,540 |
Prepayments | 344,590 | 218,951 |
17,542,806 | 13,423,293 |
KERMANDINE LIMITED (REGISTERED NUMBER: 01635620) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
for the Year Ended 30 September 2022 |
14. | DEBTORS - continued |
Group | Company |
2022 | 2021 | 2022 | 2021 |
£ | £ | £ | £ |
Amounts falling due after more than one | year: |
Amounts owed by group undertakings | - | - |
Aggregate amounts | 17,542,806 | 13,423,293 |
15. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
Group |
2022 | 2021 |
£ | £ |
Bank loans and overdrafts (see note 17) | 123,750 | 123,750 |
Trade creditors | 5,572,627 | 5,307,299 |
Corporation tax | 681,328 | 486,605 |
Social security and other taxes | 256,681 | 200,434 |
Other creditors | 289,937 | 282,902 |
Directors' loan accounts | 719 | 567 |
Accruals and deferred income | 2,231,379 | 1,647,451 |
9,156,421 | 8,049,008 |
16. | CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR |
Group |
2022 | 2021 |
£ | £ |
Bank loans (see note 17) | 755,105 | 881,389 |
KERMANDINE LIMITED (REGISTERED NUMBER: 01635620) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
for the Year Ended 30 September 2022 |
17. | LOANS |
An analysis of the maturity of loans is given below: |
Group |
2022 | 2021 |
£ | £ |
Amounts falling due within one year or on | demand: |
Bank loans | 123,750 | 123,750 |
Amounts falling due between one and two | years: |
Bank loans | 123,750 | 123,750 |
Amounts falling due between two and five | years: |
Bank loans | 371,250 | 371,250 |
Amounts falling due in more than five years: |
Repayable by instalments |
Bank loans | 260,105 | 386,389 |
The bank loan facility held within Pemberton Caravans Limited is renewed monthly under the terms of the loan agreement, with interest charged at 1.95% above LIBOR each month. The facility expires in December 2029. |
18. | SECURED DEBTS |
The following secured debts are included within creditors: |
Group |
2022 | 2021 |
£ | £ |
Bank loans | 878,855 | 1,005,139 |
The bank loans are secured by way of a fixed charge against specific property and fixed and floating charges over certain assets. |
19. | PROVISIONS FOR LIABILITIES |
Group |
2022 | 2021 |
£ | £ |
Deferred tax |
Deferred tax | 166,181 | 127,558 |
Capital gains | 209,360 | 209,360 |
375,541 | 336,918 |
KERMANDINE LIMITED (REGISTERED NUMBER: 01635620) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
for the Year Ended 30 September 2022 |
19. | PROVISIONS FOR LIABILITIES - continued |
Group |
Deferred |
tax |
£ |
Balance at 1 October 2021 | 336,918 |
Charge to Income Statement during year | 38,623 |
Balance at 30 September 2022 | 375,541 |
20. | CALLED UP SHARE CAPITAL |
Allotted and issued: |
Number: | Class: | Nominal | 2022 | 2021 |
value: | £ | £ |
Ordinary | £1 | 10,000 | 10,000 |
At the balance sheet date, only 10p per share had been called up. |
The holders of ordinary shares are entitled to one vote per share at meetings of the company and are entitled to receive dividends as declared from time to time, or any other distribution including a distribution arising from a winding up of the company. |
21. | RESERVES |
Group |
Non |
distributable |
Capital | profit |
Retained | Revaluation | redemption | and loss |
earnings | reserve | reserve | account | Totals |
£ | £ | £ | £ | £ |
At 1 October 2021 | 17,291,654 | 1,865,656 | 4,720 | 1,081,856 | 20,243,886 |
Profit for the year | 4,054,352 | - | - | - | 4,054,352 |
Dividends | (2,800,000 | ) | - | - | - | (2,800,000 | ) |
At 30 September 2022 | 18,546,006 | 1,865,656 | 4,720 | 1,081,856 | 21,498,238 |
Company |
Retained |
earnings |
£ |
At 1 October 2021 |
Profit for the year |
At 30 September 2022 |
KERMANDINE LIMITED (REGISTERED NUMBER: 01635620) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
for the Year Ended 30 September 2022 |
21. | RESERVES - continued |
Retained earnings includes all current and prior retained profits and losses. |
The revaluation reserve relates to the revaluation amount of freehold property. |
Non distributable profit and loss relates to the revaluation amount of investment properties. |
The capital redemption reserve includes the nominal value of redeemable preference shares repurchased by the company. |
22. | NON-CONTROLLING INTERESTS |
Minority interests represent a holding of 22.55% in Pemberton Park and Leisure Homes Limited. |
23. | PENSION COMMITMENTS |
The group operates a defined contribution pension scheme for certain senior management and other eligible employees. The assets of the scheme are held separately from those of the group in independently administered funds. Contributions paid during the year amount to £133,698 (2021 - £127,086) and at the year end contributions of £32,567 (2021 - £29,279) remained outstanding. |
24. | CAPITAL COMMITMENTS |
2022 | 2021 |
£ | £ |
Contracted but not provided for in the |
financial statements | 293,593 | - |
25. | RELATED PARTY DISCLOSURES |
The company has taken advantage of exemption, under the terms of Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland', not to disclose related party transactions with wholly owned subsidiaries within the group. |
Transactions between group entities which have been eliminated on consolidation are not disclosed within the financial statements. |
During the year the following transactions were entered into with the following related parties: |
A management charge of £186,000 (2021: £151,000) was charged by a shareholder. |
Dividends to directors of £1,400,000 (2021: £480,000) were paid in the year. |
Dividends to other shareholders of £1,400,000 (2021: £480,000) were paid in the year. |
26. | ULTIMATE CONTROLLING PARTY |
Alphacrete International Limited and Mr K McAdam own shares directly and indirectly in the group. However, practically Mr K D McAdam is responsible for the day to day operating decisions of the group and is therefore the ultimate controlling party. |