Company registration number 01821427 (England and Wales)
UNUSUAL INDUSTRIES LIMITED
Annual report and financial statements
For the year ended 31 March 2023
55 L
oudoun Road
St J
ohn's Wood
Lon
don NW8 0DL
UNUSUAL INDUSTRIES LIMITED
COMPANY INFORMATION
Directors
P Jacobi
A Harper
B Rose
Secretary
P Jacobi
Company number
01821427
Registered office
55 Loudoun Road
St John's Wood
London
NW8 0DL
Auditor
MGR Weston Kay LLP
55 Loudoun Road
St John's Wood
London
NW8 0DL
Business address
The Wharf
Litchborough Road
Bugbrooke
Northampton NN7 3QB
Bankers
Lloyds Banking Group
98 Victoria Street
London
SW1E 5JL
UNUSUAL INDUSTRIES LIMITED
CONTENTS
Page
Strategic report
1
Directors' report
2 - 3
Independent auditor's report
4 - 7
Profit and loss account
8
Group statement of comprehensive income
9
Group balance sheet
10
Company balance sheet
11
Group statement of changes in equity
12
Company statement of changes in equity
13
Group statement of cash flows
14
Notes to the financial statements
15 - 27
UNUSUAL INDUSTRIES LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 MARCH 2023
- 1 -
The directors present the strategic report for the year ended 31 March 2023.
Fair review of the business
The group has had a successful year despite a decrease in turnover of 0.2% (2021: increase of 226.0%). The decrease in activity was accompanied by a decrease in direct costs of 6.6% (2021: increase of 136.9%) and an increase in administrative expenses of 12.8% (2021: 13.1%), resulting in net profit after tax of £3,185,436 (2021: £3,003,848). This was a good year for the group reflecting the hard work of the team at Unusual.
Principal risks and uncertainties
The directors consider the main risks faced by the group's business are managing the variation associated with large one-off events together with the associated technical challenges of projects involving the provision of rigging services. The directors are aware of these complexities and have developed sophisticated job planning systems to manage the resources needed for each project and have become recognised experts in this field within the rigging services and event industries.
Development and performance
In the opinion of the directors, the group was in a strong position at the year end having enjoyed a year of good profitability resulting in net assets and shareholders' funds increasing to £18.5m (2022: £15.5m) at the year end.
Key performance indicators
The group's management monitor the performance of the business including reviewing individual contracts, management information incorporating the management accounts, resource and staffing requirements. The main key performance indicators are the gross and net profit margins, as well as the current asset ratio. The gross profit margin increased from 38.3% to 42.2%, the net profit margin increased from 20.6% to 22.3% and the net current asset ratio increased from 3.03 to 3.88.
A Harper
Director
21 August 2023
UNUSUAL INDUSTRIES LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 MARCH 2023
- 2 -
The directors present their annual report and financial statements for the year ended 31 March 2023.
Principal activities
The company is a holding company.
The principal activity of the company is the provision of management and administration services to its subsidiary companies.
The principal activities of the group primarily involves providing services to performing arts and other industries, including the fabrication and installation of rigging in theatres, museums, stadiums, arenas, conference centres and outdoor venues, theatre and stage engineering and specialised metal work.
Results and dividends
The results for the year are set out on page 8.
Ordinary dividends were paid amounting to £172,000. The directors do not recommend payment of a final dividend.
Directors
The directors who held office during the year and up to the date of signature of the financial statements were as follows:
P Jacobi
A Harper
B Rose
Financial instruments
Treasury operations and financial instruments
The group operates a treasury function which is responsible for managing the liquidity and interest risks associated with the group activities.
Liquidity risk
The group manages its cash and borrowing requirements in order to maximise interest income and minimise interest expense, whilst ensuring the company has sufficient liquid resources to meet the operating needs of the businesses.
Credit risk
Investments of cash surpluses, borrowings and derivative instruments are made through banks and companies which must fulfil credit rating criteria approved by the Board.
All customers who wish to trade on credit terms are subject to credit verification procedures. Trade debtors are monitored on an ongoing basis and provision is made for doubtful debts where necessary.
Future developments
The group continues to demonstrate its commitment to the transition to a circular economy, most recently in the planning and design of their new HQ on site at Bugbrooke, in which their decision making has been influenced by the principles of running on renewables, selecting carbon sequestering materials, reusability and designing for disassembly.
Auditor
The auditors, MGR Weston Kay LLP, are deemed to be reappointed under section 487(2) of the Companies Act 2006.
UNUSUAL INDUSTRIES LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 3 -
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 group and company, 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;
state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the ;
prepare the on the going concern basis unless it is inappropriate to presume that the group and company will continue in business.
The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the group’s and company’s transactions and disclose with reasonable accuracy at any time the financial position of the group and 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 group and 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 auditor of the company 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 auditor of the company is aware of that information.
On behalf of the board
A Harper
Director
21 August 2023
UNUSUAL INDUSTRIES LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF UNUSUAL INDUSTRIES LIMITED
- 4 -
Opinion
We have audited the financial statements of Unusual Industries Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 March 2023 which comprise the group profit and loss account, the group statement of comprehensive income, the group balance sheet, the company balance sheet, the group statement of changes in equity, the company statement of changes in equity, the group statement of cash flows 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 group's and the parent company's affairs as at 31 March 2023 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.
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 group and parent 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 group's and 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.
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.
UNUSUAL INDUSTRIES LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF UNUSUAL INDUSTRIES LIMITED
- 5 -
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 their 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 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 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 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 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.
UNUSUAL INDUSTRIES LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF UNUSUAL INDUSTRIES LIMITED
- 6 -
Explanation as to what extent 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, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:
As part of our planning of the audit work required, we obtained an understanding of the legal and regulatory frameworks that are applicable to the entity via enquiries of the company's management, carrying out analytical procedures, holding discussions amongst the engagement team and using our knowledge of the sector. We determined that the most significant laws and regulations were relating to:
We also considered those laws and regulations that have a direct impact on the preparation of the financial statements such as FRS102 and the Companies Act 2006.
Based on the results of our risk assessment we designed our audit procedures to identify instances of non-compliance with the laws and regulations and the fraud risks identified. This included enquiries of management to understand their policies and procedures for compliance with those regulations and we completed the following tests:
Obtained an understanding of relevant controls;
Reviewed the company's risks assessments, procedures, health and safety policies and communications with employees;
Checked a sample of documentation;
Reviewed records for evidence of complaints or litigation; and
Reviewed correspondence with HMRC.
We also assessed the risk of material misstatement in relation to fraud in respect of the following:
Based on the results of our risk assessment we designed audit procedures to identify and address material misstatements in relation to fraud. This included the risk of management bias and the risk of making inappropriate accounting entries.
No significant issues were identified during our testing.
There are inherent limitations in the audit procedures described above and the primary responsibility for the prevention and detection of irregularities, including fraud, rests with management. As with any audit, there remained a risk of non-detection of irregularities, as these may involve collusions, forgery, intentional omissions, misrepresentations or the override of internal controls.
UNUSUAL INDUSTRIES LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF UNUSUAL INDUSTRIES LIMITED
- 7 -
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 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 members as a body, for our audit work, for this report, or for the opinions we have formed.
Sarah Yardley BSc ACA (Senior Statuory Auditor)
For and on behalf of MGR Weston Kay LLP
Chartered Accountants
Statutory Auditor
55 Loudoun Road
St John's Wood
London
NW8 0DL
21 August 2023
UNUSUAL INDUSTRIES LIMITED
GROUP PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 31 MARCH 2023
- 8 -
2023
2022
Notes
£
£
Turnover
3
18,025,808
18,055,674
Cost of sales
(10,413,574)
(11,145,983)
Gross profit
7,612,234
6,909,691
Administrative expenses
(3,681,832)
(3,264,634)
Other operating income
-
52,696
Operating profit
4
3,930,402
3,697,753
Interest receivable and similar income
8
118,068
34,242
Interest payable and similar expenses
9
(21,349)
(19,745)
Profit before taxation
4,027,121
3,712,250
Tax on profit
10
(841,685)
(708,402)
Profit for the financial year
3,185,436
3,003,848
UNUSUAL INDUSTRIES LIMITED
GROUP STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 MARCH 2023
- 9 -
2023
2022
£
£
Profit for the year
3,185,436
3,003,848
Other comprehensive income
-
-
Total comprehensive income for the year
3,185,436
3,003,848
Total comprehensive income for the year is all attributable to the owners of the parent company.
UNUSUAL INDUSTRIES LIMITED
GROUP BALANCE SHEET
AS AT
31 MARCH 2023
31 March 2023
- 10 -
2023
2022
Notes
£
£
£
£
Fixed assets
Goodwill
12
108,241
132,747
Tangible assets
13
6,626,759
6,487,040
6,735,000
6,619,787
Current assets
Stocks
16
277,199
318,373
Debtors
17
3,577,231
3,380,061
Cash at bank and in hand
12,948,051
10,372,895
16,802,481
14,071,329
Creditors: amounts falling due within one year
18
(4,331,989)
(4,646,036)
Net current assets
12,470,492
9,425,293
Total assets less current liabilities
19,205,492
16,045,080
Creditors: amounts falling due after more than one year
19
(176,876)
(163,507)
Provisions for liabilities
Deferred tax liability
21
564,501
430,894
(564,501)
(430,894)
Net assets
18,464,115
15,450,679
Capital and reserves
Called up share capital
23
100,000
100,000
Other reserves
149,800
149,800
Profit and loss reserves
18,214,315
15,200,879
Total equity
18,464,115
15,450,679
The financial statements were approved by the board of directors and authorised for issue on 21 August 2023 and are signed on its behalf by:
21 August 2023
A Harper
Director
UNUSUAL INDUSTRIES LIMITED
COMPANY BALANCE SHEET
AS AT 31 MARCH 2023
31 March 2023
- 11 -
2023
2022
Notes
£
£
£
£
Fixed assets
Tangible assets
13
2,985,070
2,821,222
Investments
14
1,410,005
1,410,005
4,395,075
4,231,227
Current assets
Debtors
17
303,614
256,711
Cash at bank and in hand
3,650,033
1,444,490
3,953,647
1,701,201
Creditors: amounts falling due within one year
18
(1,227,445)
(700,150)
Net current assets
2,726,202
1,001,051
Total assets less current liabilities
7,121,277
5,232,278
Provisions for liabilities
21
(8,796)
(2,988)
Net assets
7,112,481
5,229,290
Capital and reserves
Called up share capital
23
100,000
100,000
Profit and loss reserves
7,012,481
5,129,290
Total equity
7,112,481
5,229,290
As permitted by s408 Companies Act 2006, the company has not presented its own profit and loss account and related notes. The company’s profit for the year was £2,055,191 (2022 - £1,038,340 ).
The financial statements were approved by the board of directors and authorised for issue on 21 August 2023 and are signed on its behalf by:
21 August 2023
A Harper
Director
Company Registration No. 01821427
UNUSUAL INDUSTRIES LIMITED
GROUP STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 MARCH 2023
- 12 -
Share capital
Other reserves
Profit and loss reserves
Total
Notes
£
£
£
£
Balance at 1 April 2021
100,000
149,800
12,197,032
12,446,832
Year ended 31 March 2022:
Profit and total comprehensive income for the year
-
-
3,003,848
3,003,848
Balance at 31 March 2022
100,000
149,800
15,200,879
15,450,679
Year ended 31 March 2023:
Profit and total comprehensive income for the year
-
-
3,185,436
3,185,436
Dividends
11
-
-
(172,000)
(172,000)
Balance at 31 March 2023
100,000
149,800
18,214,315
18,464,115
UNUSUAL INDUSTRIES LIMITED
COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 MARCH 2023
- 13 -
Share capital
Profit and loss reserves
Total
Notes
£
£
£
Balance at 1 April 2021
100,000
4,090,950
4,190,950
Year ended 31 March 2022:
Profit and total comprehensive income for the year
-
1,038,340
1,038,340
Balance at 31 March 2022
100,000
5,129,290
5,229,290
Year ended 31 March 2023:
Profit and total comprehensive income for the year
-
2,055,191
2,055,191
Dividends
11
-
(172,000)
(172,000)
Balance at 31 March 2023
100,000
7,012,481
7,112,481
UNUSUAL INDUSTRIES LIMITED
GROUP STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 MARCH 2023
- 14 -
2023
2022
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
27
4,083,008
4,620,450
Interest paid
(21,349)
(19,745)
Income taxes (paid)/refunded
(644,236)
11,011
Net cash inflow from operating activities
3,417,423
4,611,716
Investing activities
Purchase of tangible fixed assets
(748,741)
(963,900)
Proceeds on disposal of tangible fixed assets
135,300
48,349
Interest received
118,068
34,242
Net cash used in investing activities
(495,373)
(881,309)
Financing activities
Payment of finance leases obligations
(174,894)
(226,228)
Dividends paid to equity shareholders
(172,000)
-
Net cash used in financing activities
(346,894)
(226,228)
Net increase in cash and cash equivalents
2,575,156
3,504,179
Cash and cash equivalents at beginning of year
10,372,895
6,868,716
Cash and cash equivalents at end of year
12,948,051
10,372,895
UNUSUAL INDUSTRIES LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023
- 15 -
1
Accounting policies
Company information
Unusual Industries Limited (“the company”) is a private limited company domiciled and incorporated in England and Wales. The registered office is 55 Loudoun Road, St John's Wood, London, NW8 0DL.
The group consists of Unusual Industries Limited and all of its subsidiaries.
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 consolidated financial statements incorporate those of Unusual Industries Limited and all of its subsidiaries (ie entities that the group controls through its power to govern the financial and operating policies so as to obtain economic benefits). Subsidiaries acquired during the year are consolidated using the purchase method. Their results are incorporated from the date that control passes.
All financial statements are made up to 31 March 2023. Where necessary, adjustments are made to the financial statements of subsidiaries to bring the accounting policies used into line with those used by other members of the group.
All intra-group transactions, balances and unrealised gains on transactions between group companies are eliminated on consolidation. Unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred.
Entities in which the group holds an interest and which are jointly controlled by the group and one or more other venturers under a contractual arrangement are treated as joint ventures. In the group financial statements, joint ventures are accounted for using the equity method.
1.2
Going concern
At the time of approving the financial statements, the directors have a reasonable expectation that the group 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 represents the invoiced value of all services supplied by the group based on the date the work is undertaken net of value added tax.
Turnover on equipment sales is recognised on delivery date.
Profit is recognised on long-term contracts, if the final outcome can be assessed with reasonable certainty, by including in the profit and loss account turnover and related costs as contract activity progresses. Turnover is calculated as that proportion of total contract value which costs to date bear, compared with the total expected costs for that contract.
1.4
Intangible fixed assets - goodwill
Goodwill represents the excess of the cost of acquisition of a business over the fair value of net assets acquired. It is initially recognised as an asset at cost and is subsequently measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is considered to have a finite useful life and is amortised on a systematic basis over its expected life, which is 10 years.
UNUSUAL INDUSTRIES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
1
Accounting policies
(Continued)
- 16 -
1.5
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:
Land and buildings - Freehold
None
Plant and machinery
15% reducing balance
Fixtures, fittings & equipment
15% to 33 1/3% reducing balance
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 recognised in the profit and loss account.
1.6
Impairment of fixed assets
At each reporting period end date, the group reviews the carrying amounts of its tangible and intangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any).
1.7
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.
1.8
Cash and cash equivalents
Cash and cash equivalents include cash in hand, deposits held at call with banks and bank overdrafts.
1.9
Financial instruments
The group 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 group's balance sheet when the group becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset and 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.
1.10
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 group’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.
UNUSUAL INDUSTRIES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
1
Accounting policies
(Continued)
- 17 -
Deferred tax
Deferred tax is provided in full in respect of taxation deferred by timing differences between the treatment of certain items for taxation and accounting purposes. The deferred tax balance has not been discounted.
1.11
Employee benefits
The costs of short-term employee benefits are recognised as a liability and an expense.
Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment or to provide termination benefits.
1.12
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
1.13
Leases
Leases are classified as hire purchase whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessees. All other leases are classified as operating leases.
Assets held under hire purchase are recognised as assets at the lower of the assets fair value at the date of inception and the present value of the minimum lease payments. The related liability is included in the balance sheet as a hire purchase obligation. Lease payments are treated as consisting of capital and interest elements. The interest is charged to the profit and loss account so as to produce a constant periodic rate of interest on the remaining balance of the liability.
Rentals payable under operating leases, including any lease incentives received are charges to income on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the lease asset are consumed.
1.14
Government grants
Government grants are recognised at the fair value of the asset received or receivable when there is reasonable assurance that the grant conditions will be met and the grants will be received.
A grant that specifies performance conditions is recognised in income when the performance conditions are met. Where a grant does not specify performance conditions it is recognised in income when the proceeds are received or receivable. A grant received before the recognition criteria are satisfied is recognised as a liability.
1.15
Foreign exchange
Monetary assets and liabilities denominated in foreign currencies are translated into sterling at the rates of exchange ruling at the balance sheet date. Transactions in foreign currencies are recorded at the rate ruling at the date of the transaction. All differences are taken to profit and loss account.
2
Judgements and key sources of estimation uncertainty
In the application of the group’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.
UNUSUAL INDUSTRIES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 18 -
3
Turnover and other revenue
In the opinion of the directors it would be seriously prejudicial to the company's interest if turnover by class and geographical area is disclosed.
4
Operating profit
2023
2022
£
£
Operating profit for the year is stated after charging/(crediting):
Exchange losses
26,787
12,779
Government grants
-
(52,696)
Depreciation of owned tangible fixed assets
559,235
527,378
Depreciation of tangible fixed assets held under finance leases
162,684
161,377
Profit on disposal of tangible fixed assets
(28,657)
(5,618)
Amortisation of intangible assets
24,506
24,506
Operating lease charges
3,376
9,943
5
Auditor's remuneration
2023
2022
Fees payable to the company's auditor and associates:
£
£
For audit services
Audit of the financial statements of the group and company
15,000
12,500
Audit of the financial statements of the company's subsidiaries
30,300
32,425
45,300
44,925
For other services
All other non-audit services
34,596
31,700
6
Employees
The average monthly number of persons (including directors) employed by the group and company during the year was:
Group
Company
2023
2022
2023
2022
Number
Number
Number
Number
Administration staff
29
28
14
15
Production staff
60
54
-
-
89
82
14
15
UNUSUAL INDUSTRIES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
6
Employees
(Continued)
- 19 -
Their aggregate remuneration comprised:
Group
Company
2023
2022
2023
2022
£
£
£
£
Wages and salaries
3,999,248
3,401,896
613,639
494,028
Social security costs
441,297
361,554
70,143
55,645
Pension costs
383,855
380,384
121,217
126,098
4,824,400
4,143,834
804,999
675,771
7
Directors' remuneration
2023
2022
£
£
Remuneration for qualifying services
234,680
226,307
Company pension contributions to defined contribution schemes
100,642
99,600
335,322
325,907
The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 3 (2022 - 3).
Remuneration disclosed above includes the following amounts paid to the highest paid director:
2023
2022
£
£
Remuneration for qualifying services
106,534
104,196
Company pension contributions to defined contribution schemes
28,146
36,150
8
Interest receivable and similar income
2023
2022
£
£
Interest income
Interest on bank deposits
118,068
34,190
Other interest income
-
52
Total income
118,068
34,242
UNUSUAL INDUSTRIES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 20 -
9
Interest payable and similar expenses
2023
2022
£
£
Interest on hire purchase contracts
21,349
19,745
10
Taxation
2023
2022
£
£
Current tax
UK corporation tax on profits for the current period
706,484
591,834
Adjustments in respect of prior periods
1,594
(3)
Total current tax
708,078
591,831
Deferred tax
Origination and reversal of timing differences
133,607
116,571
Total tax charge
841,685
708,402
The charge for the year can be reconciled to the profit per the profit and loss account as follows:
2023
2022
£
£
Profit before taxation
4,027,121
3,712,250
Expected tax charge based on the standard rate of corporation tax in the UK of 19.00% (2022: 19.00%)
765,153
705,328
Tax effect of expenses that are not deductible in determining taxable profit
111,579
136,351
Gains not taxable
(5,445)
(1,068)
Unutilised tax losses carried forward
2,634
Group relief
(2,430)
Under/(over) provided in prior years
1,594
Capital allowances
(162,373)
(251,414)
Deferred tax - origination and reversal of timing differences
133,607
116,571
Taxation charge
841,685
708,402
11
Dividends
2023
2022
£
£
Interim paid
172,000
-
UNUSUAL INDUSTRIES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 21 -
12
Intangible fixed assets
Group
Goodwill
Development Costs
Total
£
£
£
Cost
At 1 April 2022 and 31 March 2023
245,067
11,720
256,787
Amortisation and impairment
At 1 April 2022
112,320
11,720
124,040
Amortisation charged for the year
24,506
24,506
At 31 March 2023
136,826
11,720
148,546
Carrying amount
At 31 March 2023
108,241
108,241
At 31 March 2022
132,747
132,747
The company had no intangible fixed assets at 31 March 2023 or 31 March 2022.
13
Tangible fixed assets
Group
Land and buildings - Freehold
Plant and machinery
Fixtures, fittings & equipment
Motor vehicles
Total
£
£
£
£
£
Cost
At 1 April 2022
3,263,505
9,672,960
434,132
963,534
14,334,131
Additions
73,254
438,570
55,308
401,149
968,281
Disposals
(82,707)
(202,187)
(284,894)
At 31 March 2023
3,336,759
10,028,823
489,440
1,162,496
15,017,518
Depreciation and impairment
At 1 April 2022
7,097,615
325,212
424,264
7,847,091
Depreciation charged in the year
468,968
48,378
204,573
721,919
Eliminated in respect of disposals
(73,093)
(105,158)
(178,251)
At 31 March 2023
7,493,490
373,590
523,679
8,390,759
Carrying amount
At 31 March 2023
3,336,759
2,535,333
115,850
638,817
6,626,759
At 31 March 2022
3,263,505
2,575,345
108,920
539,270
6,487,040
UNUSUAL INDUSTRIES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
13
Tangible fixed assets
(Continued)
- 22 -
Company
Land and buildings - Freehold
Fixtures, fittings & equipment
Motor vehicles
Total
£
£
£
£
Cost
At 1 April 2022
2,690,505
414,325
72,503
3,177,333
Additions
73,254
55,308
135,082
263,644
Disposals
(31,438)
(31,438)
At 31 March 2023
2,763,759
469,633
176,147
3,409,539
Depreciation and impairment
At 1 April 2022
324,353
31,758
356,111
Depreciation charged in the year
48,378
41,471
89,849
Eliminated in respect of disposals
(21,491)
(21,491)
At 31 March 2023
372,731
51,738
424,469
Carrying amount
At 31 March 2023
2,763,759
96,902
124,409
2,985,070
At 31 March 2022
2,690,505
89,972
40,745
2,821,222
The net carrying value of tangible fixed assets includes the following in respect of assets held under hire purchase contracts and finance leases.
Group
Company
2023
2022
2023
2022
£
£
£
£
Plant and machinery
189,774
177,284
Motor vehicles
387,583
371,805
577,357
549,089
-
-
No depreciation has been recorded on the properties as the Directors consider the market value of the buildings to exceed their cost. This is reasonable given our knowledge of the current property market and the nature of the properties
14
Fixed asset investments
Group
Company
2023
2022
2023
2022
Notes
£
£
£
£
Investments in subsidiaries
15
1,410,005
1,410,005
UNUSUAL INDUSTRIES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
14
Fixed asset investments
(Continued)
- 23 -
Movements in fixed asset investments
Company
Shares in subsidiaries
£
Cost or valuation
At 1 April 2022 and 31 March 2023
1,410,005
Carrying amount
At 31 March 2023
1,410,005
At 31 March 2022
1,410,005
15
Subsidiaries
Details of the company's subsidiaries at 31 March 2023 are as follows:
Name of undertaking and country of
Nature of business
Class of
% Held
incorporation or residency
shareholding
Direct
Indirect
Rope Assemblies Limited
England and Wales
Manufacture and sale of lifting assemblies
Ordinary
100.00
-
Unusual Automation Limited
England and Wales
Non-trading
Ordinary
100.00
-
Unusual Engineering Limited
England and Wales
Non-trading
Ordinary
100.00
-
Unusual Entertainments Limited
England and Wales
Non-trading
Ordinary
100.00
-
Unusual Manufacturing Limited
England and Wales
Non-trading
Ordinary
100.00
-
Unusual Rigging Limited
England and Wales
Venue installation and engineering of rigging
Ordinary
100.00
-
Unusual Services Limited
England and Wales
Provide event management and on site services
Ordinary
100.00
-
Zenavail Limited
England and Wales
Non-trading
Ordinary
100.00
-
16
Stocks
Group
Company
2023
2022
2023
2022
£
£
£
£
Finished goods and goods for resale
277,199
318,373
UNUSUAL INDUSTRIES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 24 -
17
Debtors
Group
Company
2023
2022
2023
2022
Amounts falling due within one year:
£
£
£
£
Trade debtors
2,438,078
2,778,826
Corporation tax recoverable
177,792
Amounts owed by group undertakings
-
-
4,200
3,600
Prepayments and accrued income
1,139,153
423,443
299,414
253,111
3,577,231
3,380,061
303,614
256,711
18
Creditors: amounts falling due within one year
Group
Company
2023
2022
2023
2022
Notes
£
£
£
£
Obligations under hire purchase
20
191,179
159,902
Trade creditors
967,194
1,638,656
52,373
86,815
Amounts due to group undertakings
664,590
284,131
Corporation tax payable
477,885
591,835
9,352
5,365
Other taxation and social security
581,867
428,068
452,345
291,205
Other creditors
10,232
7,120
7,120
7,120
Accruals and deferred income
2,103,632
1,820,455
41,665
25,514
4,331,989
4,646,036
1,227,445
700,150
19
Creditors: amounts falling due after more than one year
Group
Company
2023
2022
2023
2022
Notes
£
£
£
£
Obligations under hire purchase
20
176,876
163,507
20
Hire purchase obligations
Group
Company
2023
2022
2023
2022
£
£
£
£
Future minimum lease payments due under hire purchase:
Within one year
191,179
159,903
In two to five years
176,876
163,506
368,055
323,409
-
-
UNUSUAL INDUSTRIES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
20
Hire purchase obligations
(Continued)
- 25 -
Net obligations under hire purchase contracts are secured by fixed charge on the assets concerned.
21
Deferred taxation
Deferred tax assets and liabilities are offset where the group or company has a legally enforceable right to do so. The following is the analysis of the deferred tax balances (after offset) for financial reporting purposes:
Liabilities
Liabilities
2023
2022
Group
£
£
Accelerated Capital Allowances
564,501
430,894
Liabilities
Liabilities
2023
2022
Company
£
£
Accelerated Capital Allowances
8,796
2,988
Group
Company
2023
2023
Movements in the year:
£
£
Liability at 1 April 2022
430,894
2,988
Charge to profit or loss
133,607
5,808
Liability at 31 March 2023
564,501
8,796
The deferred tax balance set out above is not expected to materially change in the next 12 months, other than the reversal of the short term timing differences.
22
Retirement benefit schemes
2023
2022
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
383,855
380,384
The group operates defined contribution pension schemes for all qualifying employees. The assets of the schemes are held separately from those of the company in independently administered funds.
UNUSUAL INDUSTRIES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 26 -
23
Share capital
Group and company
2023
2022
Ordinary share capital
£
£
Issued and fully paid
100,000 Ordinary shares of £1 each
100,000
100,000
24
Operating lease commitments
Lessee
At the reporting end date the group had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:
Group
Company
2023
2022
2023
2022
£
£
£
£
Within one year
-
336
-
-
-
336
-
-
25
Related party transactions
The company has taken advantage of the exemption available in accordance with FRS 102 Section 33 'Related party disclosures' not to disclose transactions entered into between two or more members of a group, with companies which are wholly owned subsidiary undertakings of the group.
At the year end, £7,120 (2022: £7,120) was owed to a director by the group. The loan is unsecured, interest free and repayable on demand.
26
Controlling party
At the date of the approval of the accounts the ultimate controlling party was A Harper.
UNUSUAL INDUSTRIES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 27 -
27
Cash generated from group operations
2023
2022
£
£
Profit for the year after tax
3,185,436
3,003,848
Adjustments for:
Taxation charged
841,685
708,402
Finance costs
21,349
19,745
Investment income
(118,068)
(34,242)
Gain on disposal of tangible fixed assets
(28,657)
(5,618)
Amortisation and impairment of intangible assets
24,506
24,506
Depreciation and impairment of tangible fixed assets
721,919
688,755
Movements in working capital:
Decrease/(increase) in stocks
41,174
(6,019)
Increase in debtors
(374,963)
(1,728,314)
(Decrease)/increase in creditors
(231,373)
1,949,387
Cash generated from operations
4,083,008
4,620,450
28
Analysis of changes in net funds - group
1 April 2022
Cash flows
New finance leases
31 March 2023
£
£
£
£
Cash at bank and in hand
10,372,895
2,575,156
-
12,948,051
Obligations under finance leases
(323,409)
174,894
(219,540)
(368,055)
10,049,486
2,750,050
(219,540)
12,579,996
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