Registration number:
Walkerbridge Limited
for the Year Ended 30 April 2023
Walkerbridge Limited
Contents
Company Information |
|
Strategic Report |
|
Directors' Report |
|
Statement of Directors' Responsibilities |
|
Independent Auditor's Report |
|
Consolidated Profit and Loss Account |
|
Consolidated Statement of Comprehensive Income |
|
Consolidated Balance Sheet |
|
Balance Sheet |
|
Consolidated Statement of Changes in Equity |
|
Statement of Changes in Equity |
|
Consolidated Statement of Cash Flows |
|
Statement of Cash Flows |
Walkerbridge Limited
Company Information
Directors |
Mr H R Pilkington Mr J K Dodgeon |
Registered office |
|
Bankers |
|
Auditors |
|
Walkerbridge Limited
Strategic Report for the Year Ended 30 April 2023
The directors present their strategic report for the year ended 30 April 2023.
Principal activity
The principal activity of the group is that of a holding company. The company owns 100% of the issued share capital of Walkersteel Limited and Walkersteel Engineering Services Limited whose principal activities are that of metal processing and steel stockholding and engineering services for the steel industry respectively. The company also owns 90% of the issued share capital of Flavour Industries Limited whose principal activity is the manufacture of e-cigarette fluids and associated products. The company also owns 32.5% of the voting rights of Walkersteel Laser Services Limited whose principal activity is laser cutting services for the steel industry.
Fair review of the business
Trading conditions in the market as a whole have been far more difficult this year. The gap between the demand of steel and the supply available in the market has now closed meaning that commodity prices have now returned to pre-pandemic levels. The supply of materials has increased due to the lifting of shipping restrictions from the Far East which were imposed as a result of the global Covid-19 pandemic experienced in 2020 and 2021, the effects of which are still felt today.
Overall, the directors and shareholders are happy with the performance of the group and continue to target further manageable organic growth. Capital expenditure has been funded within the period to enhance our operations in line with our growth. Our review is consistent with the size and nature of the business and is written in the context of uncertainties we face. We consider that our key financial performance indicators are those that communicate the financial performance and strength of the group as a whole; being turnover, gross profit, operating profit and return on capital employed.
The group's key financial and other performance indicators during the year were as follows:
Unit |
2023 |
2022 |
|
Turnover |
£ |
21,551,753 |
31,216,348 |
Gross Profit |
£ |
3,170,309 |
6,929,261 |
Operating profit |
£ |
79,101 |
3,723,064 |
Profit before tax |
£ |
1,957 |
3,605,182 |
Shareholders funds |
£ |
4,050,528 |
4,626,529 |
Turnover has decreased by 30.96% with its gross margin reducing from the previous period's 22.19% to 14.71% culminating in an decrease of £3,758,952 at gross profit level.
Operating profit has decreased to £79,101 (0.37%) in comparison to the previous period's £3,273,064 (10.48%) resulting in a profit before tax of £1,957 (2022 – profit of £3,605,182).
Return on capital employed has reduced to 1.57% (2022 - 62.80%). Return on capital employed is calculated as operating profit divided by capital employed. Capital employed is calculated as total assets less current liabilities.
During the year reserves have reduced by £576,001 (2022 - £2,122,705).
Dividends totalling £588,080 (2022 - £1,320,000) were paid to shareholders in the current financial year.
The results of the group are set out in the financial statements.
Walkerbridge Limited
Strategic Report for the Year Ended 30 April 2023
Principal risks and uncertainties
Current principal risks and uncertainties include uncertainty over the UK's economic recovery, the effects of Britain's withdrawal from the European Union and the current situation in Ukraine, not only on our own operations but on the operations of key members of our supply chain. Despite the effects of the Covid-19 pandemic having reduced significantly, we remain conscious that a further spike in cases could once again cause significant disruption to business.
The group undertakes regular reviews of the principal risks facing the business and wherever possible, processes are put into place to monitor and minimise such risks.
Approved and authorised by the
......................................... |
Walkerbridge Limited
Directors' Report for the Year Ended 30 April 2023
The directors present their report and the for the year ended 30 April 2023.
Directors of the group
The directors who held office during the year were as follows:
Financial instruments
Objectives and policies
The group uses a variety of financial instruments including cash, borrowings, and various items such as trade debtors and trade creditors, that arise directly from its operations. The main purpose of these financial instruments is to provide working capital for its operations.
The directors are of the view that the main risks arising from the group’s financial instruments are liquidity risk, cash flow risk, price risk and credit risk. The directors review and agree policies for managing each of these risks and they are summarised below. These policies remain unchanged from previous years.
Price risk, credit risk, liquidity risk and cash flow risk
The group has some moderate exposure to a level of price risk, credit risk, liquidity risk and cash flow risk. The group manages these risks through maintaining and building strong relationships with leading steel suppliers, long term customers and finance partners.
Liquidity risk and cash flow risk
The group seeks to manage these risks by ensuring sufficient liquidity is available to meet foreseeable needs and to invest cash assets safely and profitably.
Price risk
The group is exposed to price risk associated with the commodity price of steel at any given time. These fluctuations in steel prices are reviewed on a regular basis and taken into consideration when placing orders and setting the selling price of the goods and services that it supplies.
Credit risk
The group’s principal financial assets are cash and trade debtors. The principal credit risk arises from its trade debtors.
Disclosure of information to the auditor
Each director has taken steps that they ought to have taken as a director in order to make themselves aware of any relevant audit information and to establish that the company's auditor is aware of that information. The directors confirm that there is no relevant information that they know of and of which they know the auditor is unaware.
Approved and authorised by the
......................................... |
Walkerbridge Limited
Statement of Directors' Responsibilities
The directors acknowledge their responsibilities 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 the 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 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 financial statements; and |
• |
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 group's and the company's transactions and disclose with reasonable accuracy at any time the financial position of the group and the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the group and the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
Walkerbridge Limited
Independent Auditor's Report to the Members of Walkerbridge Limited
Opinion
We have audited the financial statements of Walkerbridge Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 30 April 2023, which comprise the Consolidated Profit and Loss Account, Consolidated Statement of Comprehensive Income, Consolidated Balance Sheet, Balance Sheet, Consolidated Statement of Changes in Equity, Statement of Changes in Equity, Consolidated Statement of Cash Flows, Statement of Cash Flows, and 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 the parent company's affairs as at 30 April 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. |
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 auditor 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 director's 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 ability to continue as a going concern for a period of at least twelve months from when the original financial statements were 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.
In our evaluation of the directors’ conclusions, we considered the inherent risks to the company’s business model, including the impact of Brexit and the current Covid-19 global pandemic, and analysed how these risks might impact the company’s financial resources and ability to continue to adopt the going concern basis of accounting for a period of twelve months from the date when the financial statements are authorised for use. Our evaluation concluded that these risks were not significant enough for us to perform additional audit procedures.
Walkerbridge Limited
Independent Auditor's Report to the Members of Walkerbridge Limited
Other information
The directors are responsible for the other information. The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report 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 there is a material misstatement in the financial statements or a material misstatement of the other information. 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.
Opinion on other matter 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 Strategic Report and Directors' Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and |
• |
the Strategic Report and Directors' Report have been prepared in accordance with applicable legal requirements. |
Matters on which we are required to report by exception
In the light of our knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic Report and the Directors' Report.
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 5], the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.
In preparing the financial statements, the directors are responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.
Walkerbridge Limited
Independent Auditor's Report to the Members of Walkerbridge Limited
Auditor 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.
Extent to which the audit was considered capable of detective irregularities, including fraud
We identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and then design and perform audit procedures responsive to those risks, including obtaining audit evidence that is sufficient and appropriate to provide a basis for our opinion.
In identifying and addressing risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, our procedures included the following:
• |
We obtained an understanding of laws and regulations that affect the group, focusing on those that had a direct effect on on the financial statements or that had a fundamental effect on its operations. Key laws and regulations that we identified included the UK Companies Act, tax legislation, health and safety regulations, occupational health and employment legislation. |
• |
We enquired of the directors, reviewed correspondence with HMRC and enquired with the directors in order to gain evidence of non-compliance with relevant laws and regulations. We also reviewed controls the directors have in place to ensure compliance. |
• |
We gained an understanding of the controls that the directors have in place to prevent and detect for fraud. We enquired about any instances of fraud that have taken place in the accounting period. |
• |
The risk of fraud and non-compliance with laws and regulations was discussed with the audit team and tests were planned and performed to address these risks. |
• |
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 claims. |
• |
We performed analytical procedures to identify any unusual or unexpected relationships that might indicate risks of material misstatement due to fraud. |
• |
In addressing the risk of fraud due to management override of internal controls we tested the appropriateness of journal entries and assessed whether the judgements made in making accounting estimates were indicative of a potential bias. |
Due to the 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.
Walkerbridge Limited
Independent Auditor's Report to the Members of Walkerbridge Limited
A further description of our responsibilities is available on the Financial Reporting Council’s website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.
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 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.
......................................
For and on behalf of
10-12 Wellington Street
(St Johns)
Lancashire
BB1 8AG
Walkerbridge Limited
Consolidated Profit and Loss Account for the Year Ended 30 April 2023
Note |
Total |
Total |
|
Turnover |
|
|
|
Cost of sales |
( |
( |
|
Gross profit |
|
|
|
Administrative expenses |
( |
( |
|
Other operating income |
- |
|
|
Operating profit |
|
|
|
Gain on financial assets at fair value through profit and loss |
- |
|
|
Interest payable and similar expenses |
( |
( |
|
(136,800) |
285,416 |
||
Share of profit of equity accounted investees |
|
|
|
Profit before tax |
|
|
|
Tax on profit |
|
( |
|
Profit for the financial year |
|
|
|
Profit/(loss) attributable to: |
|||
Owners of the company |
|
|
|
Minority interests |
- |
|
|
|
|
The group has no recognised gains or losses for the year other than the results above.
Walkerbridge Limited
Consolidated Statement of Comprehensive Income for the Year Ended 30 April 2023
2023 |
2022 |
|
Profit for the year |
|
|
Total comprehensive income for the year |
|
|
Total comprehensive income attributable to: |
||
Owners of the company |
|
|
Minority interests |
- |
|
|
|
Walkerbridge Limited
(Registration number: 08623257)
Consolidated Balance Sheet as at 30 April 2023
Note |
2023 |
2022 |
|
Fixed assets |
|||
Tangible assets |
|
|
|
Investment property |
|
|
|
Investments |
|
|
|
|
|
||
Current assets |
|||
Stocks |
|
|
|
Debtors |
|
|
|
Cash at bank and in hand |
|
|
|
|
|
||
Creditors: Amounts falling due within one year |
( |
( |
|
Net current assets |
|
|
|
Total assets less current liabilities |
|
|
|
Creditors: Amounts falling due after more than one year |
( |
( |
|
Provisions for liabilities |
( |
( |
|
Net assets |
|
|
|
Capital and reserves |
|||
Called up share capital |
108,887 |
108,887 |
|
Retained earnings |
3,941,641 |
4,517,642 |
|
Equity attributable to owners of the company |
4,050,528 |
4,626,529 |
|
Shareholders' funds |
4,050,528 |
4,626,529 |
Approved and authorised by the
......................................... |
......................................... |
Walkerbridge Limited
(Registration number: 08623257)
Balance Sheet as at 30 April 2023
Note |
2023 |
2022 |
|
Fixed assets |
|||
Tangible assets |
|
- |
|
Investment property |
|
|
|
Investments |
|
|
|
|
|
||
Current assets |
|||
Stocks |
- |
|
|
Debtors |
|
|
|
Cash at bank and in hand |
|
|
|
|
|
||
Creditors: Amounts falling due within one year |
( |
( |
|
Net current liabilities |
( |
( |
|
Total assets less current liabilities |
|
|
|
Creditors: Amounts falling due after more than one year |
( |
( |
|
Provisions for liabilities |
( |
( |
|
Net assets |
|
|
|
Capital and reserves |
|||
Called up share capital |
108,887 |
108,887 |
|
Retained earnings |
550,632 |
1,123,760 |
|
Shareholders' funds |
659,519 |
1,232,647 |
The company made a profit after tax for the financial year of £14,952 (2022 - profit of £1,758,028).
Approved and authorised by the
......................................... |
......................................... |
Walkerbridge Limited
Consolidated Statement of Changes in Equity for the Year Ended 30 April 2023
Equity attributable to the parent company
Share capital |
Profit and loss account |
Total |
Total equity |
|
At 1 May 2022 |
|
|
|
|
Profit for the year |
- |
|
|
|
Total comprehensive income |
- |
|
|
|
Dividends |
- |
( |
( |
( |
At 30 April 2023 |
|
|
|
|
Share capital |
Retained earnings |
Total |
Non- controlling interests |
Total equity |
|
At 1 May 2021 |
|
|
|
|
|
Profit for the year |
- |
|
|
|
|
Dividends |
- |
( |
( |
- |
( |
Decrease in ownership interests in subsidiaries that do not result in a loss of control |
- |
- |
- |
( |
( |
At 30 April 2022 |
|
|
|
- |
|
Walkerbridge Limited
Statement of Changes in Equity for the Year Ended 30 April 2023
Share capital |
Profit and loss account |
Total |
|
At 1 May 2022 |
|
|
|
Profit for the year |
- |
|
|
Total comprehensive income |
- |
|
|
Dividends |
- |
( |
( |
At 30 April 2023 |
|
|
|
Share capital |
Retained earnings |
Total |
|
At 1 May 2021 |
|
|
|
Profit for the year |
- |
|
|
Dividends |
- |
( |
( |
At 30 April 2022 |
|
|
|
Walkerbridge Limited
Consolidated Statement of Cash Flows for the Year Ended 30 April 2023
Note |
2023 |
2022 |
|
Cash flows from operating activities |
|||
Profit for the year |
|
|
|
Adjustments to cash flows from non-cash items |
|||
Depreciation and amortisation |
|
|
|
Changes in fair value of investment property |
- |
( |
|
Profit on disposal of tangible assets |
( |
( |
|
Profit from disposals of subsidiary undertakings |
- |
( |
|
Finance costs |
|
|
|
Share of profit/loss of equity accounted investees |
( |
( |
|
Income tax expense |
( |
|
|
|
|
||
Working capital adjustments |
|||
Decrease/(increase) in stocks |
|
( |
|
Decrease/(increase) in trade debtors |
|
( |
|
(Decrease)/increase in trade creditors |
( |
|
|
Cash generated from operations |
|
|
|
Income taxes paid |
( |
( |
|
Net cash flow from operating activities |
|
|
|
Cash flows from investing activities |
|||
Acquisitions of tangible assets |
( |
( |
|
Proceeds from sale of tangible assets |
|
|
|
Acquisition of investment properties |
( |
- |
|
Acquisition of investments in joint ventures and associates |
( |
- |
|
Net cash flows from investing activities |
( |
( |
|
Cash flows from financing activities |
|||
Interest paid |
( |
( |
|
Repayment of bank borrowing |
( |
( |
|
Proceeds from other borrowing draw downs |
- |
|
|
Payments to finance lease creditors |
( |
( |
|
Dividends paid |
( |
( |
|
Net cash flows from financing activities |
( |
( |
|
Net decrease in cash and cash equivalents |
( |
( |
|
Cash and cash equivalents at 1 May |
( |
( |
|
Cash and cash equivalents at 30 April |
(3,683,485) |
(3,431,729) |
Walkerbridge Limited
Statement of Cash Flows for the Year Ended 30 April 2023
Note |
2023 |
2022 |
|
Cash flows from operating activities |
|||
Profit for the year |
|
|
|
Adjustments to cash flows from non-cash items |
|||
Depreciation and amortisation |
|
- |
|
Changes in fair value of investment property |
- |
( |
|
Profit from disposals of investments |
- |
( |
|
Finance income |
- |
( |
|
Finance costs |
|
|
|
Income tax expense |
( |
|
|
|
|
||
Working capital adjustments |
|||
Decrease in stocks |
|
|
|
Decrease/(increase) in trade debtors |
|
( |
|
Increase in trade creditors |
|
|
|
Cash generated from operations |
|
( |
|
Income taxes (paid)/received |
( |
|
|
Net cash flow from operating activities |
|
( |
|
Cash flows from investing activities |
|||
Interest received |
- |
|
|
Acquisition of subsidiaries |
( |
- |
|
Proceeds from sale of investments |
- |
|
|
Acquisitions of tangible assets |
( |
- |
|
Acquisition of investment properties |
( |
- |
|
Net cash flows from investing activities |
( |
|
|
Cash flows from financing activities |
|||
Interest paid |
( |
( |
|
Proceeds from bank borrowing draw downs |
( |
- |
|
Repayment of bank borrowing |
- |
( |
|
Dividends paid |
( |
( |
|
Net cash flows from financing activities |
( |
( |
|
Net (decrease)/increase in cash and cash equivalents |
( |
|
|
Cash and cash equivalents at 1 May |
|
|
|
Cash and cash equivalents at 30 April |
32,367 |
81,006 |
Walkerbridge Limited
Notes to the Financial Statements for the Year Ended 30 April 2023
General information |
The company is a private company limited by share capital, incorporated in England and Wales.
The address of its registered office is:
England
These financial statements were authorised for issue by the
Accounting policies |
Summary of significant accounting policies and key accounting estimates
The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.
Statement of compliance
These financial statements for the year ended 30th April 2023 of Walkerbridge Limited are prepared in accordance with Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' and the Companies Act 2006.
Basis of preparation
These financial statements have been prepared using the historical cost convention except that as disclosed in the accounting policies certain items are shown at fair value.
These financial statements are presented in sterling which is the functional currency of the company and group, rounded to the nearest pound.
Basis of consolidation
The consolidated financial statements consolidate the financial statements of the company and its subsidiary undertakings drawn up to 30 April 2023.
A subsidiary is an entity controlled by the company. Control is achieved where the company has the power to govern the financial and operating policies of an entity so as to obtain benefits from its activities.
The results of subsidiaries acquired or disposed of during the year are included in the Profit and Loss Account from the effective date of acquisition or up to the effective date of disposal, as appropriate. Where necessary, adjustments are made to the financial statements of subsidiaries to bring their accounting policies into line with those used by the group.
The purchase method of accounting is used to account for business combinations that result in the acquisition of subsidiaries by the group. The cost of a business combination is measured as the fair value of the assets given, equity instruments issued and liabilities incurred or assumed at the date of exchange, plus costs directly attributable to the business combination. Identifiable assets acquired and liabilities and contingent liabilities assumed in a business combination are measured initially at their fair values at the acquisition date. Any excess of the cost of the business combination over the acquirer’s interest in the net fair value of the identifiable assets, liabilities and contingent liabilities recognised is recorded as goodwill.
Walkerbridge Limited
Notes to the Financial Statements for the Year Ended 30 April 2023
Inter-company transactions, balances and unrealised gains on transactions between the company and its subsidiaries, which are related parties, are eliminated in full.
Intra-group losses are also eliminated but may indicate an impairment that requires recognition in the consolidated financial statements.
Accounting policies of subsidiaries have been changed where necessary to ensure consistency with the policies adopted by the group. Non-controlling interests in the net assets of consolidated subsidiaries are identified separately from the group’s equity therein. Non-controlling interests consist of the amount of those interests at the date of the original business combination and the non-controlling shareholder’s share of changes in equity since the date of the combination.
Judgements
In 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 considered to be relevant. Actual results may vary 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 revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods. |
In the opinion of the directors there are no critical accounting judgements that require further disclosure. |
Accounting estimates and assumptions are made concerning the future and, by their nature, will rarely equal the related actual outcome. The key assumptions and other sources of estimation uncertainty that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are as follows: |
- The group's investment property is carried at fair value determined by the directors. This fair value is based on a valuation carried out by qualified professionals carried out no more than three years ago. |
- Tangible fixed assets are depreciated over their estimated useful lives taking into account residual values, where appropriate. The actual lives of the assets and residual values are assessed annually and may vary depending on a number of factors. In re-assessing asset lives, factors such as technological innovation, product life cycles and maintenance are taken into account. Residual value assessments consider issues such as future market conditions, the remaining life of the asset and projected disposal values. |
- Determination of the recoverability of trade debtors. A specific provision is made against certain debts where in the opinion of the debt is not fully recoverable. |
Revenue recognition
Turnover comprises the fair value of the consideration received or receivable for the sale of goods and provision of services in the ordinary course of the group’s activities. Turnover is shown net of sales/value added tax, returns, rebates and discounts and after eliminating sales within the group.
The group recognises revenue when:
The amount of revenue can be reliably measured;
it is probable that future economic benefits will flow to the entity;
and specific criteria have been met for each of the group's activities.
Walkerbridge Limited
Notes to the Financial Statements for the Year Ended 30 April 2023
Government grants
Government grants are recognised at the fair value of the asset received when there is a reasonable assurance that the grant conditions will be received.
The government grant is released to the profit and loss account in line with the depreciation of the associated asset.
The company has received a revenue grant in the form of the Job Retention Scheme in respect of furloughed staff. Revenue grants are credited to the profit and loss account so as to match them with the expenditure to which they relate.
Foreign currency transactions and balances
Tax
The tax expense for the period comprises current and deferred tax. Tax is recognised in profit or loss, except that a change attributable to an item of income or expense recognised as other comprehensive income is also recognised directly in other comprehensive income.
The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the reporting date in the countries where the group operates and generates taxable income.
Deferred tax is recognised in respect of all timing differences between taxable profits and profits reported in the consolidated financial statements.
Unrelieved tax losses and other deferred tax assets are recognised when it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits.
Deferred tax is measured using the tax rates and laws that have been enacted or substantively enacted by the reporting date and that are expected to apply to the reversal of the timing difference.
Tangible assets
Tangible assets are stated in the balance sheet at cost, less any subsequent accumulated depreciation and subsequent accumulated impairment losses.
The cost of tangible assets includes directly attributable incremental costs incurred in their acquisition and installation.
Depreciation
Depreciation is charged so as to write off the cost of assets, other than land and properties under construction over their estimated useful lives, as follows:
Asset class |
Depreciation method and rate |
Other property, plant and equipment |
Between 6.67% and 33% straight line |
Motor vehicles |
25% straight line |
Walkerbridge Limited
Notes to the Financial Statements for the Year Ended 30 April 2023
Investment property
Business combinations
Business combinations are accounted for using the purchase method. The consideration for each acquisition is measured at the aggregate of the fair values at acquisition date of assets given, liabilities incurred or assumed, and equity instruments issued by the group in exchange for control of the acquired, plus any costs directly attributable to the business combination. When a business combination agreement provides for an adjustment to the cost of the combination contingent on future events, the group includes the estimated amount of that adjustment in the cost of the combination at the acquisition date if the adjustment is probable and can be measured reliably.
Goodwill
Goodwill arising on the acquisition of an entity represents the excess of the cost of acquisition over the group’s interest in the net fair value of the identifiable assets, liabilities and contingent liabilities of the entity recognised at the date of acquisition. Goodwill is initially recognised as an asset at cost and is subsequently measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is held in the currency of the acquired entity and revalued to the closing rate at each reporting period date. Goodwill is amortised over its useful life, which shall not exceed ten years if a reliable estimate of the useful life cannot be made.
Amortisation
Amortisation is provided on intangible assets so as to write off the cost, less any estimated residual value, over their useful life as follows:
Asset class |
Amortisation method and rate |
Goodwill |
over 5 years straightline |
Investments
Investments in equity shares which are publicly traded or where the fair value can be measured reliably are initially measured at fair value, with changes in fair value recognised in profit or loss. Investments in equity shares which are not publicly traded and where fair value cannot be measured reliably are measured at cost less impairment.
Interest income on debt securities, where applicable, is recognised in income using the effective interest method. Dividends on equity securities are recognised in income when receivable.
Cash and cash equivalents
Cash and cash equivalents comprise cash on hand and call deposits, and other short-term highly liquid investments that are readily convertible to a known amount of cash and are subject to an insignificant risk of change in value.
Trade debtors
Trade debtors are amounts due from customers for merchandise sold or services performed in the ordinary course of business.
Trade debtors are recognised initially at the transaction price. They are subsequently measured at amortised cost using the effective interest method, less provision for impairment. A provision for the impairment of trade debtors is established when there is objective evidence that the group will not be able to collect all amounts due according to the original terms of the receivables.
Walkerbridge Limited
Notes to the Financial Statements for the Year Ended 30 April 2023
Stock
Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost is determined using the first-in, first-out (FIFO) method.
The cost of finished goods and work in progress comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the inventories to their present location and condition. At each reporting date, stocks are assessed for impairment. If stocks are impaired, the carrying amount is reduced to its selling price less costs to complete and sell; the impairment loss is recognised immediately in profit or loss.
Trade creditors
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Accounts payable are classified as current liabilities if the group does not have an unconditional right, at the end of the reporting period, to defer settlement of the creditor for at least twelve months after the reporting date. If there is an unconditional right to defer settlement for at least twelve months after the reporting date, they are presented as non-current liabilities.
Trade creditors are recognised initially at the transaction price and subsequently measured at amortised cost using the effective interest method.
Borrowings
Interest-bearing borrowings are initially recorded at fair value, net of transaction costs. Interest-bearing borrowings are subsequently carried at amortised cost, with the difference between the proceeds, net of transaction costs, and the amount due on redemption being recognised as a charge to the profit and loss account over the period of the relevant borrowing.
Interest expense is recognised on the basis of the effective interest method and is included in interest payable and similar charges.
Borrowings are classified as current liabilities unless the group has an unconditional right to defer settlement of the liability for at least twelve months after the reporting date.
Leases
Leases in which substantially all the risks and rewards of ownership are retained by the lessor are classified as operating leases. Payments made under operating leases are charged to profit or loss on a straight-line basis over the period of the lease.
Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessee.
Assets held under finance leases are recognised at the lower of their fair value at inception of the lease and the present value of the minimum lease payments. These assets are depreciated on a straight-line basis over the shorter of the useful life of the asset and the lease term. The corresponding liability to the lessor is included in the balance sheet as a finance lease obligation.
Lease payments are apportioned between finance costs in the profit and loss account and reduction of the lease obligation so as to achieve a constant periodic rate of interest on the remaining balance of the liability.
Share capital
Ordinary shares are classified as equity. Equity instruments are measured at the fair value of the cash or other resources received or receivable, net of the direct costs of issuing the equity instruments. If payment is deferred and the time value of money is material, the initial measurement is on a present value basis.
Walkerbridge Limited
Notes to the Financial Statements for the Year Ended 30 April 2023
Dividends
Dividend distribution to the group’s shareholders is recognised as a liability in the financial statements in the reporting period in which the dividends are declared.
Defined contribution pension obligation
A defined contribution plan is a pension plan under which fixed contributions are paid into a pension fund and the group has no legal or constructive obligation to pay further contributions even if the fund does not hold sufficient assets to pay all employees the benefits relating to employee service in the current and prior periods.
Contributions to defined contribution plans are recognised as employee benefit expense when they are due. If contribution payments exceed the contribution due for service, the excess is recognised as a prepayment.
Employee benefits
The cost of any unused holiday entitlement is recognised in the period in which employees' services are received.
Turnover |
The analysis of the group's turnover for the year from continuing operations is as follows:
2023 |
2022 |
|
Sale of goods |
|
|
Rendering of services |
|
|
Rental income from investment property |
|
|
|
|
Other operating income |
The analysis of the group's other operating income for the year is as follows:
2023 |
2022 |
|
Government grants |
- |
|
Other gains and losses |
The analysis of the group's other gains and losses for the year is as follows:
2023 |
2022 |
|
Gain on disposal of property, plant and equipment |
|
|
Gain from disposals of investments |
- |
|
12,412 |
69,215 |
Walkerbridge Limited
Notes to the Financial Statements for the Year Ended 30 April 2023
Operating profit |
Arrived at after charging/(crediting)
2023 |
2022 |
|
Depreciation expense |
|
|
Operating lease expense - plant and machinery |
|
|
Profit on disposal of property, plant and equipment |
( |
( |
Interest payable and similar expenses |
2023 |
2022 |
|
Interest on bank overdrafts and borrowings |
|
|
Interest on obligations under finance leases and hire purchase contracts |
|
|
Interest expense on other finance liabilities |
|
|
Other finance costs |
|
|
|
|
Staff costs |
The aggregate payroll costs (including directors' remuneration) were as follows:
2023 |
2022 |
|
Wages and salaries |
|
|
Social security costs |
|
|
Pension costs, defined contribution scheme |
|
|
Other employee expense |
|
|
|
|
The average number of persons employed by the group (including directors) during the year, analysed by category was as follows:
2023 |
2022 |
|
Administration and support |
|
|
Other departments |
|
|
|
|
Walkerbridge Limited
Notes to the Financial Statements for the Year Ended 30 April 2023
Directors' remuneration |
The directors' remuneration for the year was as follows:
2023 |
2022 |
|
Remuneration |
|
|
Contributions paid to money purchase schemes |
|
|
210,902 |
328,546 |
During the year the number of directors who were receiving benefits and share incentives was as follows:
2023 |
2022 |
|
Accruing benefits under money purchase pension scheme |
|
|
Auditors' remuneration |
2023 |
2022 |
|
Audit of these financial statements |
22,600 |
22,600 |
Other fees to auditors |
||
All other assurance services |
|
|
Taxation |
Tax charged/(credited) in the income statement
2023 |
2022 |
|
Current taxation |
||
UK corporation tax |
( |
|
UK corporation tax adjustment to prior periods |
( |
( |
(16,022) |
18,783 |
|
Deferred taxation |
||
Arising from origination and reversal of timing differences |
|
|
Tax (receipt)/expense in the income statement |
( |
|
Walkerbridge Limited
Notes to the Financial Statements for the Year Ended 30 April 2023
The tax on profit before tax for the year is lower than the standard rate of corporation tax in the UK (2022 - lower than the standard rate of corporation tax in the UK) of
The differences are reconciled below:
2023 |
2022 |
|
Profit before tax |
|
|
Corporation tax at standard rate |
|
|
Effect of tax losses |
( |
( |
Deferred tax expense from unrecognised tax loss or credit |
- |
|
Increase/(decrease) in UK and foreign current tax from adjustment for prior periods |
|
( |
Tax increase from effect of capital allowances and depreciation |
|
- |
Other tax effects for reconciliation between accounting profit and tax expense (income) |
|
|
Total tax (credit)/charge |
( |
|
The group has estimated losses of £1,449,740 (2022 - £1,726,588) available to carry forward against future trading profits.
Deferred tax
Group
Deferred tax assets and liabilities
2023 |
Asset |
Liability |
Accelerated capital allowances |
- |
|
Fair value adjustment on investment property |
- |
|
Deferred tax asset |
|
- |
|
|
2022 |
Asset |
Liability |
Accelerated capital allowances |
- |
|
Fair value adjustment on investment property |
- |
|
Deferred tax asset |
|
- |
|
|
Walkerbridge Limited
Notes to the Financial Statements for the Year Ended 30 April 2023
Intangible assets |
Group
Goodwill |
Total |
|
Cost or valuation |
||
At 1 May 2022 |
|
|
At 30 April 2023 |
|
|
Amortisation |
||
At 1 May 2022 |
|
|
At 30 April 2023 |
|
|
Carrying amount |
||
At 30 April 2023 |
- |
- |
Tangible assets |
Group
Motor vehicles |
Assets under construction |
Other tangible assets |
Total |
|
Cost or valuation |
||||
At 1 May 2022 |
|
|
|
|
Additions |
|
- |
|
|
Disposals |
- |
- |
( |
( |
Transfers |
- |
- |
( |
( |
At 30 April 2023 |
|
|
|
|
Depreciation |
||||
At 1 May 2022 |
|
- |
|
|
Charge for the year |
|
- |
|
|
Eliminated on disposal |
- |
- |
( |
( |
At 30 April 2023 |
|
- |
|
|
Carrying amount |
||||
At 30 April 2023 |
|
|
|
|
At 30 April 2022 |
- |
|
|
|
Walkerbridge Limited
Notes to the Financial Statements for the Year Ended 30 April 2023
Assets held under finance leases and hire purchase contracts
The net carrying amount of tangible assets includes the following amounts in respect of assets held under finance leases and hire purchase contracts:
2023 |
2022 |
|
Other property, plant and equipment |
19,704 |
347,286 |
Company
Motor vehicles |
Other tangible assets |
Total |
|
Cost or valuation |
|||
At 1 May 2022 |
|
- |
|
Additions |
- |
|
|
At 30 April 2023 |
|
|
|
Depreciation |
|||
At 1 May 2022 |
|
- |
|
Charge for the year |
- |
|
|
At 30 April 2023 |
|
|
|
Carrying amount |
|||
At 30 April 2023 |
- |
|
|
Investment properties |
Group
2023 |
|
At 1 May 2020 |
|
Additions |
|
Transfers to and from inventories |
|
At 30 April 2021 |
|
The group's investment property is included in the accounts at a fair value determined by the directors.
Had this asset been measured on a historical cost basis, the carrying amount would have been £1,557,149 (2022 - £1,358,887).
There has been no valuation of investment property by an independent valuer.
Walkerbridge Limited
Notes to the Financial Statements for the Year Ended 30 April 2023
Company
2023 |
|
At 1 May 2020 |
|
Additions |
|
At 30 April 2021 |
|
The company's investment property is included in the accounts at a fair value determined by the directors.
Had this asset been measured on a historical cost basis, the carrying amount would have been £1,557,149 (2022 - £1,358,887).
There has been no valuation of investment property by an independent valuer.
Investments |
Group
Details of undertakings
Details of the investments (including principal place of business of unincorporated entities) in which the group holds 20% or more of the nominal value of any class of share capital are as follows:
Undertaking |
Registered office |
Holding |
Proportion of voting rights and shares held |
|
2023 |
2022 |
|||
Joint ventures |
||||
|
Walkersteel Limited
|
Ordinary Shares |
|
|
England |
The principal activity of Walkersteel Laser Services Limited is that of laser related services for the steel industry.
Aggregate financial information of joint ventures
2023 |
2022 |
|
Group's share of profit or loss in joint ventures |
|
|
Walkerbridge Limited
Notes to the Financial Statements for the Year Ended 30 April 2023
Company
2023 |
2022 |
|
Investments in subsidiaries |
|
|
Investments in joint ventures |
|
|
|
|
Subsidiaries |
£ |
Cost or valuation |
|
At 1 May 2022 |
|
Additions |
|
At 30 April 2023 |
|
Carrying amount |
|
At 30 April 2023 |
|
At 30 April 2022 |
|
Details of undertakings
Details of the investments (including principal place of business of unincorporated entities) in which the company holds 20% or more of the nominal value of any class of share capital are as follows:
Undertaking |
Registered office |
Holding |
Proportion of voting rights and shares held |
||||
2023 |
2022 |
||||||
Subsidiary undertakings |
|||||||
|
Walker House
England |
|
|
|
|||
|
Walker House
England |
|
|
|
|||
|
Walker House
England and Wales |
|
|
|
Walkerbridge Limited
Notes to the Financial Statements for the Year Ended 30 April 2023
Subsidiary undertakings |
Walkersteel Limited The principal activity of Walkersteel Limited is |
Walkersteel Engineering Limited The principal activity of Walkersteel Engineering Limited is |
Flavour Industries Ltd The principal activity of Flavour Industries Ltd is |
Stocks |
Group |
Company |
|||
2023 |
2022 |
2023 |
2022 |
|
Raw materials and consumables |
|
|
- |
- |
Work in progress |
|
|
- |
- |
Other inventories |
|
|
- |
|
|
|
- |
|
Debtors |
Details of non-current trade and other debtors
Group
£Nil (2022 - £27,800) of the deferred tax asset is classified as non current.
The majority of the trade debtors are financed under an invoice discounting arrangement with the Royal Bank of Scotland plc.
Group |
Company |
||||
Current |
Note |
2023 |
2022 |
2023 |
2022 |
Trade debtors |
|
|
|
|
|
Amounts owed by related parties |
- |
- |
|
|
|
Other debtors |
|
|
|
|
|
Prepayments |
|
|
|
- |
|
Deferred tax assets |
|
|
- |
- |
|
Income tax asset |
|
|
|
- |
|
|
|
|
|
Walkerbridge Limited
Notes to the Financial Statements for the Year Ended 30 April 2023
Cash and cash equivalents |
Group |
Company |
|||
2023 |
2022 |
2023 |
2022 |
|
Cash on hand |
- |
|
- |
- |
Cash at bank |
|
|
|
|
|
|
|
|
|
Bank overdrafts |
( |
( |
- |
- |
Cash and cash equivalents in statement of cash flows |
(3,683,485) |
(3,431,729) |
32,367 |
81,006 |
Included within bank overdrafts is an amount due to The Royal Bank of Scotland plc under an invoice discounting facility amounting to £3,938,349 (2022 - £3,733,136) which is secured by fixed and floating charges over the assets of the company.
Creditors |
Group |
Company |
||||
Note |
2023 |
2022 |
2023 |
2022 |
|
Due within one year |
|||||
Loans and borrowings |
|
|
|
|
|
Trade creditors |
|
|
|
|
|
Amounts due to related parties |
- |
- |
|
|
|
Social security and other taxes |
|
|
|
|
|
Outstanding defined contribution pension costs |
- |
|
- |
- |
|
Other payables |
|
|
|
|
|
Accruals |
|
|
|
|
|
Income tax liability |
- |
61,891 |
- |
28,469 |
|
|
|
|
|
||
Due after one year |
|||||
Loans and borrowings |
|
|
|
|
Pension and other schemes |
Defined contribution pension scheme
The group operates a defined contribution pension scheme. The pension cost charge for the year represents contributions payable by the group to the scheme and amounted to £
Contributions totalling £Nil (2022 - £
Walkerbridge Limited
Notes to the Financial Statements for the Year Ended 30 April 2023
Share capital |
Allotted, called up and fully paid shares
2023 |
2022 |
|||
No. |
£ |
No. |
£ |
|
|
|
108,877 |
|
108,877 |
|
|
10 |
|
10 |
|
|
|
|
Loans and borrowings |
Group |
Company |
|||
2023 |
2022 |
2023 |
2022 |
|
Non-current loans and borrowings |
||||
Bank borrowings |
|
|
|
|
Obligations under finance leases and hire purchase contracts |
- |
|
- |
- |
|
|
|
|
Group |
Company |
|||
2023 |
2022 |
2023 |
2022 |
|
Current loans and borrowings |
||||
Bank borrowings |
|
|
|
|
Bank overdrafts |
|
|
- |
- |
Obligations under finance leases and hire purchase contracts |
|
|
- |
- |
|
|
|
|
Included within bank overdrafts is an amount due to The Royal Bank of Scotland plc under an invoice discounting facility amounting to £3,938,349 (2021 - £3,733,136) which is secured by fixed and floating charges over the assets of the company.
Obligations under finance leases and hire purchase contracts are secured on the assets to which they relate.
Group
Bank borrowings
The bank loan - mortgage borrowings are secured by way of a legal charge on a property known as Walker House, Bridge Street, Accrington, BB2 4PL and also over all assets of the company. |
Walkerbridge Limited
Notes to the Financial Statements for the Year Ended 30 April 2023
Related party transactions |
Group
Transactions with directors |
2023 |
At 1 May 2022 |
Advances to director |
Repayments by director |
At 30 April 2023 |
Mr H R Pilkington |
||||
Director's loan account |
|
|
( |
|
Mr J K Dodgeon |
||||
Director's loan account |
|
|
( |
|
2022 |
At 1 May 2021 |
Repayments by director |
At 30 April 2022 |
Mr H R Pilkington |
|||
Director's loan account |
|
( |
|
Mr J K Dodgeon |
|||
Director's loan account |
|
( |
|
No fixed repayment terms were in force and no interest was charged.