Kirkwood Wilson Accountants have overseen the accounts of a remarkable success story in Scarisbrick-based experts in couplings, hoses and connectors, Kee Connections Limited. Under our financial stewardship, they’ve grown from a promising start-up to what is now a multi-national business with an annual turnover of just under £1 million.
Kirkwood Wilson has been acting for Kee Connections, and their founder, Tony Keeley, since the company began trading in 2008. Shrugging off the unsettled financial environment, just two years later they’d outgrown their existing premises and were seeking a financial solution to fund their relocation.
Helping to grow an empire
Kirkwood Wilson Chartered Accountant, Daniel Wilson, explains: “We explored the potential for Tony to invest in commercial premises through a Self Invested Personal Pension (SIPP). Our strategic partners, Acumen Financial Partnership Limited, were able to review Tony’s existing pension policies and transfer them into one consolidated SIPP.
“Tony made an employer’s pension payment in the year, which both reduced the corporation tax payable and increased the overall SIPP value,” adds Daniel.
What this meant, in effect, is that Tony could borrow enough from his SIPP to purchase a considerably larger and more suitable property. “As a result, the commercial rent payable by Kee is corporation tax deductible but still increases Tony’s personal wealth in a tax free environment,” says Daniel.
Sage advice pays off
By 2011, Kee’s turnover had more than tripled. They had settled in to their new premises and were now in need of a more process driven sales and ordering system. Kirkwood Wilson suggested an updated Sage system that saved a significant amount of time and hastened the recruitment process by trimming the need for training.
“Kirkwood Wilson installed the entire updated Sage system at Kee’s new offices,” says Daniel. “We completed all the ensuing training and still provide an all-inclusive Sage support service.”
Cash extraction aids recruitment
Another rise in profits in 2012 resulted in the company becoming cash rich. So Kirkwood Wilson focussed its efforts on cash extraction as a main objective and were able to increase dividend and pension contributions to achieve this goal.
That freed up funds to recruit several more sales staff to grow the business further
Proud of our role in this remarkable expansion
Daniel concludes: “We’ve supported Kee from a start up to a well-established company during five years of significant growth and significantly increased Tony’s personal wealth. He now has a commercial property, within a SIPP, with enough estimated capital to purchase a second property and afford him an excellent standard of living in retirement.
“We’re very proud to have been involved with Kee Connections and their remarkable expansion,” he adds. “We’ve worked with Tony to find solutions that consistently aligned with his aspirations and we continue to offer advice and solutions whenever he needs.”
